Announcement PDF H1 FY24 Results 26 February 2024 AI-Media Technologies Limited (ASX: AIM) “ AI-Media’s successful deployment of the best AI technologies, seamlessly integrated into customer workflows, is the essence of our vertically integrated ecosystem. Tony Abrahams H1 FY24 has seen further acceleration by customers on the transition to AI-powered language services. Our technology sales now contribute 63% of total gross profits, delivering a significant improvement in operating cash flow and EBITDA. Co-founder, CEO & Shareholder (~15%) We anticipate H2 FY24 to continue these positive trends as LEXI 3.0 outperforms the much more expensive legacy human workflows. John Bird ” - Tony Abrahams, Co-Founder, CEO Chief Financial Officer 2 AI-Media at a glance AI-Media is the leading captioning, transcription and translation provider globally, with over 9 million minutes a month1 captured on its iCap network Best-in-class technology, providing the only end-to-end live captioning solution in market, from encrypting source data to encoding, captioning, transcription and translation Continued focus on business model transition towards high margin technology revenue (GPM: >80%), overall uplift in H1FY24 gross profit margin to 63% (H1FY23: 60%) and 63% of H1FY24 gross profit now derived from technology Achieved >39% growth in H1FY24 EBITDA to $1.9m, driven by 38% growth in high margin tech revenue ($15.6m), representing 48% of H1FY24 revenue Ongoing focus on growth priorities, including growing the iCap network into new industries and new territories, driving SaaS tech revenue underpinned by LEXI 3.0 and rolling out additional AI-driven LEXI products H1 FY24 highlights Total revenue1 Tech revenue2 LEXI revenue Operating cash flow 10% 38% 54% $3.1m $32.7m $15.6m $5.1m $3.7m (H1FY23: $29.7m) (H1FY23: $11.3m) (H1FY23: $3.3m) (H1FY23: $0.6m) Total gross margin Tech gross profit EBITDA Cash balance3 3% 63% of total $1.9m $11.7m 63% $12.9m 39% $5.3m (H1FY23: 60%) (H1FY23: $9.6m) (H1FY23: $1.4m) (June-23: $17m) 1. H1FY24 and H1FY23 revenue from ordinary activities, excludes interest and other income 2. Includes revenue from Hardware, SaaS & Support with Gross Margins >80% 3. Cash balance as at 31 December 2023 (net of $8.1m final vendor payments from acquisitions) AI-Media update 5 AI-Media's unique ecosystem Industry leading live captioning platform, providing customers with the only fully integrated solution 1 2 3 4 Video Input Encrypted Encoding Real-time Captioning Captioned Video Output Encoders and iCap network used by both customers and competitors Live or recorded video source via broadcasts, events or over-the-top (OTT) content Cloud, virtual, or physical encoders convert audio into digital data that is sent to iCap network Matches captions to video sources and provides encrypted remote access to customer data improving contextual accuracy LEXI converts speech into text to present live captions on any screen or platform, in any language 6 AI solutions embedded into customer workflows World leading captioning network, infrastructure and solutions ü Offered as cloud software or hardware ü Pairs captions to video sources ü Low latency, enabling near-realtime captioning ü Compatible with multiple resolutions ü Scalable encrypted cloud-based network with hourly charging implemented ü Global standard, servicing majority of US broadcasters ü Integrated with AIM and leading 3rd party products & solutions ü Proprietary speech recognition solution ü Enterprise-grade accuracy >98.7% ü Delivers coherent captions using advanced ML and NLP algorithms ü Captions multiple languages 7 Blue chip customers and new wins Trusted by global leaders in broadcasting, government and other sectors Select global customers $5.1 million (H1FY23:$3.3m) in LEXI sales, including from: Sustained growth across iCap and LEXI Increasing iCap usage provides future conversion opportunity to higher margin LEXI solutions iCap network usage (millions of minutes) +19% 41.1 LEXI usage (millions of minutes) 56.2 47.2 +46% 22.9 15.6 7.6 H1FY22 H1FY23 Note: Based on management information H1FY24 H1FY22 H1FY23 H1FY24 9 Rapid increases in AI captioning - LEXI better than humans Massive improvements in AI has for the first time in H1 FY24 delivered better quality through AI than with humans, 3 seconds faster – and it continues to improve further! Bad quality Good quality LEXI 3.0 (6 Months Ago) 98.5% Human LEXI 3.0 Captioning (Today) 98.7% 98.9% AI capabilities and advancement has seen AI outperform human captioning 98 1. 2. NER1 Quality Score NER Model measures the accuracy of live captioning and is widely used across various industries, services and regions. The 98% benchmark is used by regulatory oversight authorities around the world, including The Office of Communications in the UK and the Canadian Radio-television and Telecommunications Commission. NER Score based on averages from comparative analysis between 3rd party human captioning services vs LEXI. Samples range across Live sports and Live News. 100 10 H1 FY24 operational updates AIM's growth strategy comprised of four quadrants which will deliver a sustainable and scalable business model Grow LEXI Grow iCap Network Globally • H1 FY24 LEXI usage up 46% on the pcp • H1 FY24 iCap usage up 19% on the pcp • LEXI Revenue up 54% on the pcp • All iCap traffic now being monetised with third party iCap charging implemented in H1 FY24 Grow Channel Partnerships • Greatest success with systems integrators who choose the best of breed technology for customers • Commercial incentives & programs continue to drive resellers to push AIM products into new regions and markets Extend & Enhance LEXI Toolkit • LEXI Recorded successfully launched February 2024 • LEXI Disaster Recovery launch planned for April 2024 11 Further LEXI product development to grow tech revenue Enhancement of AI language solutions accelerate cross-sell and up-sell opportunities Commercialisation benefits Larger addressable market Increase ARPU Diversified and enhanced product offering expanding the customer base and creating new opportunities for growth Launched 2023 Superior value proposition Enhanced functionality and increased number of solutions maximises end-user experience, increasing customer retention Grow cross-sell opportunities AI driven suite of solutions Launched 2022 April 2024 launch at NAB Show Launched Forefront of market trends LEXI Toolkit enhancements and extensions place AI-Media at the centre of AI-driven product development, fostering multi-year customer and partner collaborations Attract new customers New AI products AI advancements Launched Feb 2024 Launched 2019 Leveraging AI advances within the iCap cloud maintains competitive edge over peers 2024 product roadmap goals Strengthening and extending our defensive moat by incorporating the latest advancements in AI and other emerging technologies into a growing toolkit of LEXI solutions with ever wider industry and territory applications Encoding enhancements • • • Full software upgrade to deliver global functionality of encoding audio and captioning display (DVB improvements, ARIB, 2110-43 TTML, all character sets supported) Enable text to speech over iCap for applications like AI dubbing and Speech AI New hardware models including enterprise “puck” encoder Note: Based on management information iCap enhancements LEXI Toolkit enhancements • Upgraded encryption & multifactor authentication • LEXI Disaster Recovery: fully redundant captioning solution • Enhanced software development kit for 3rd party partners • LEXI Recorded: ultra-fast recorded media captioning solution • LEXI Translation UX/UI EEG cloud update • Generative AI topic modelling • Music categorization or recognition • Multiple auto language detection • LEXI Audio Description & LEXI Dubbing solutions • • 99.99% uptime target 13 H1FY24 financials 14 Summary H1FY24 financials Strong results driven by 38% tech revenue growth at margins >80% A$m H1FY24 H1FY23 Variance Growth % 17.1 15.6 18.4 11.3 (1.3) 4.3 (7%) 38% 32.7 29.7 3.0 10% 7.5 8.1 (0.6) (7%) Gross Profit GP margin % 12.9 20.5 63% 9.6 17.7 60% 3.3 2.8 - 35% 16% - Other Income - 0.5 (0.5) - Operating expenses EBITDA EBITDA margin % 18.6 1.9 16.8 1.4 6% 5% 1.8 0.5 - 11% 39% - Operating cashflow Cash and cash equivalents1 3.7 0.6 3.1 547% 11.7 17.0 (5.3) (31%) Services revenue Tech revenue Total revenue Services gross profit Tech gross profit 38% Tech revenue growth , underpinned by scaling of LEXI solutions. 63% of Gross Profit now coming from technology Gross Margin expansion to 63% achieved in H1FY24 (pcp 60%) EBITDA increase of >39% to $1.9m in H1FY24 reflecting improved performance as technology revenue grows $3.7 million operating cash flow signals sustained tech business performance and scalable growth potential Cash balance $11.7m as at 31 December 2023 net of $8.1m final earn-out payment for EEG and ACS acquisitions paid in H1 FY24 1. Cash and cash equivalents at 31 December 2023 and 30 June 2023 Note: Totals may not add up precisely due to rounding 15 Gross profit composition and margin growth H1FY24 gross profit margin of 63% - increasing from 60% on the pcp Gross Profit ($m) and GP margin (%) Revenue ($m) Tech Tech Services Services 29.7 11.3 32.0 12.7 32.7 15.6 18.4 19.4 17.1 H1FY23 H2FY23 H1FY24 GPM increase reflects scalability of technology 63% 60% 60% 17.7 19.2 9.6 10.6 12.9 8.1 8.5 7.5 H1FY23 H2FY23 H1FY24 20.5 16 Cash flows bridge ($m) Operating CF=$3.7m 17.0 2.4 1.9 0.2 (0.8) (0.7) (0.2) Other non-oper. CF items2 FX 11.7 (8.1) Cash Blnc. 30-Jun-23 Payments 1 rel. to acq. EBITDA Decrease in Increase in Trade Rec. Inventory Other WC mov. Cash Blnc. 31-Dec-23 (1) $8.1m final earn-out payment for EEG and ACS acquisitions paid in H1 FY24 (2) Payments for property, plant and equipment, Payments for Intangibles, Repayment of Lease liabilities Note: Totals may not add up precisely due to rounding 17 Strategy & outlook 18 FY24 growth priorities & outlook Grow LEXI • Complete transition of Services customers to LEXI • Win new customers in established broadcast markets • Introduce LEXI to enterprise customers in new markets and territories Grow iCap Network Globally • Targeting new territories • Expansion into new industries • Improving scalability & resilience of the network Delivering scalability & sustainable profitability Grow Channel Partnerships Extend & Enhance LEXI Toolkit • Systems integrator relationships are especially valuable in new territories and in new enterprise markets for our tech products (including education, corporate, government, churches) • Grow tech revenue contribution from partners • New AI-driven solutions driven by Broadcast customers’ priorities: LEXI DR, LEXI Recorded – launching H2FY24 • LEXI Audio Description (LEXI AD) – launching Sept 2024 19 New product releases extends competitive advantage Encoding Technology, iCap & LEXI Toolkit present clear differentiation that uniquely positions AIM as the only vertically integrated player in market – creating a compelling long-term value proposition Core business in captioning Media & broadcast Company Pre-recorded Captions ü ü ü ü ü ü û Live Automated Captions ü ü ü ü ü ü û Human Curated Dictionaries (ASR) ü ü ü û ü ü û Live Automated Translation ü ü ü ü ü ü û On Prem Encoding Solution ü û û û û û ü Redundant/Failover Caption Solution ü û û û û û û Captioning Network Provider ü û û (Uses AIM iCap) û û (Uses AIM iCap) û ü Captioning Infrastructure Provider ü ü ü û û (Uses AIM encoders) (Uses AIM encoders) û (Uses AIM iCap) û (Uses AIM encoders) Source: Based on company websites 20 Q&A 21 Additional information 22 Profit & loss statement For the half year ended 31 December 2023 31-Dec-23 31-Dec-22 Var ($m) ($m) ($m) Revenue 32.7 29.7 3.0 Cost of sales (12.2) (12.0) (0.2) Gross Profit 20.5 17.7 2.8 Other income - 0.5 (0.5) Operating expenses (18.6) (16.8) (1.8) EBITDA 1.9 1.4 0.5 Depreciation and amortisation (2.2) (2.4) 0.2 EBIT (0.4) (1.1) 0.7 Net interest expense (0.2) (0.4) 0.2 Profit/(loss) before tax (0.5) (1.4) 0.9 Income tax expense (0.7) 0.3 (1.0) Net profit/(loss) after tax (1.2) (1.1) (0.1) GP Margin % 63% 60% - Note: Totals may not add up precisely due to rounding 23 Balance sheet For the half year ended 31 December 2023 31-Dec-23 ($m) 30-Jun-23 ($m) Var ($m) Cash and cash equivalent Trade receivables Other current assets Total current assets Property, plant and equipment Intangibles Other non-current assets Total non-current assets Total assets Trade payables Borrowings Other current liabilities1 Total current liabilities Borrowings Other non-current liabilities Total non-current liabilities Total liabilities 11.7 8.1 3.9 23.7 4.7 56.0 5.8 66.5 90.2 1.0 0.3 12.2 13.5 0.4 2.4 2.8 16.3 17.0 10.5 3.4 31.0 4.5 59.3 6.0 69.8 100.8 0.9 0.2 19.3 20.6 0.2 3.0 3.1 23.7 (5.3) (2.4) 0.5 (7.2) 0.2 (3.3) (0.2) (3.3) (10.5) 0.1 0.1 (7.1) (6.9) 0.2 (0.6) (0.4) (7.3) Net assets Equity 73.9 73.9 77.1 77.1 (3.2) (3.2) Note: Totals may not add up precisely due to rounding 1. $8.1m final earn-out payment for EEG and ACS acquisition paid in H1 FY24. 24 Cash flows For the half year ended 31 December 2023 31-Dec-23 ($m) 31-Dec-22 ($m) Var ($m) Receipts from customers (incl. of GST) 38.5 33.9 4.7 Payments to suppliers and employees (incl. of GST) Interest received (34.5) (32.7) (1.8) 0.1 0.0 0.1 Interest and other finance costs paid (0.3) (0.2) (0.1) Income taxes paid (0.2) (0.4) 0.2 Net cash from operating activities 3.7 0.6 3.1 (8.1) (0.4) (7.8) Payments for expenses relating to acquisitions Payments for property, plant and equipment Payment for intangibles (0.3) (0.2) (0.1) (0.2) (0.4) 0.2 Net cash used in investing activities (8.7) (1.0) (7.7) Repayment of lease liabilities (0.1) (0.3) 0.2 Net cash used in financing activities (0.1) (0.3) 0.2 Net increase/(decrease) in cash and cash equivalents (5.1) (0.7) (4.4) Note: Totals may not add up precisely due to rounding 25 Management Strong and qualified management team to drive product development and commercialisation strategy TONY ABRAHAMS DONNA REID JAMES WARD BILL MCLAUGHLIN JOHN BIRD Co-Founder and CEO Chief Operating Officer Chief Sales Officer Chief Product Officer Chief Financial Officer • Tony co-founded AIMedia in 2003. He served as a Director of Northcott Disability Services. • Donna joined AI-Media in March 2021 after five years as the Director of Content Service Operations for Foxtel Media. • James Ward has been with Ai-Media since 2013, driving growth in the APAC region from Sydney, then moving to London in 2018 to lead expansion in EMEA. • Now as Chief Sales Officer, he spear heads AIM’s global growth strategy and execution. • Bill was CTO at EEG and now Chief Product Officer globally at AIMedia. • John recently held the role of CFO and COO of Regeneus, an ASXlisted biotechnology company. • Worked to establish the Oxford Internet Institute in 2001, while attending the University of Oxford as a Rhodes Scholar. • Has more than 20 years’ experience in Human Resources and Operations. • Since 2007, Bill has been with EEG architecting the company’s leading software solutions including iCap, Falcon, LEXI, and Alta. • Previously provided financial and strategic management services to ASX-listed companies. Board Highly skilled and experienced senior leadership team with decades of experience DEANNE WEIR TONY ABRAHAMS ALISON LOAT JOHN MARTIN CHERYL HAYMAN Non-Executive Chair Co-Founder and CEO Non-Executive Director Non-Executive Director Non-Executive Director • Deanne has served as a director of AI-Media since 2010 and became Chair in August 2013. • Tony co-founded AIMedia in 2003. He served as a Director of Northcott Disability Services. • Alison joined the Board in 2018. • John joined the board in 2010 and served as the company’s first Chairman until 2013. • Cheryl joined the board in March 2022 • Previously spent 10 years at ASX listed company Austar United Communications as a senior executive. • Worked to establish the Oxford Internet Institute in 2001, while attending the University of Oxford as a Rhodes Scholar. • Managing Director, Sustainable Investing and Innovation at OPTrust, a Canadian public pension plan, with $23 billion CAD in globally diversified investments. • Served as CEO and director of ASX-listed Babcock & Brown Communities, Primelife and Regeneus. • Held several nonexecutive director roles of ASX-listed companies over the last 15 years. Previously held CMO roles at George Weston Foods, Yum Restaurants International & Unilever. 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Disclaimer: To the maximum extent permitted by law, AI-Media and its officers, directors, employees, agents and advisers: (1) disclaim all responsibility and liability (including, without limitation, any liability arising from fault, negligence or negligent misstatement) for any loss arising from this Presentation or reliance on anything contained in or omitted from it or otherwise arising in connection with this Presentation; (2) disclaim any obligation or undertaking to release any update or revision to the information in this Presentation to reflect any change in expectations or assumptions; and (3) do not make any representation or warranty, express or implied, as to the accuracy, reliability, completeness of the information in this Presentation or that this Presentation contains all material information about AI-Media or that a prospectus investor or purchaser may require in evaluating a possible investment in AI-Media or acquisition of shares, or the likelihood of fulfilment of any forward-looking statement. 28 Further Information: AI-Media Technologies Lisa Jones Company Secretary investorrelations@AI-Media.tv NWR Communications Melanie Singh Investor Relations melanie@nwrcommunications.com.au 29