ASX MEDIA RELEASE

29 April 2022

BIRDDOG FULLY FUNDED FOR GROWTH,

GENERATING POSITIVE CASH FLOWS

For personal use only

OPERATIONAL HIGHLIGHTS

  • ● 14 New products launched at NAB Trade Show, April 2022 - six hardware & eight software

    • ○ Most of these products now in market and demonstrating strong adoption

  • ● Successful NAB Trade Show in Las Vegas across 23-27 April 2022

    • ○ Zoom joined BirdDog's booth at the industry's biggest trade show in its only presence at the event, reinforcing BirdDog as a vehicle for its corporate market

    • ○ Two 'NAB Best of Show' product awards - across both hardware and software - reinforcing the Company's innovative skill sets across multi-disciplines and its connectivity mantra

  • ● Eight new hires in the business globally, across sales & marketing roles and engineering

  • ● Strengthening of the Sales team in the core North American market, with three new customer-facing hires inside the last month, additional hires are being targeted in the EU/UK

  • ● Poised for the next phase of strategic growth, with BirdDog's Executive Leadership Team (ELT) focussed on:

    • ○ Driving revenue growth across existing markets and adjacent/new verticals

    • ○ Increasing gross margin contribution from new products

    • ○ Continuous execution on the development of the Company's product roadmap, serving to extend BirdDog's competitive and first mover advantage within its core markets

    • ○ Increasing focus on software sales to new and existing hardware sales

FINANCIAL HIGHLIGHTS

  • ● Revenue for the quarter of A$7.1m (US$5.1m) (unaudited):

    • ○ Seasonally the weakest quarter of each year with northern hemisphere winter breaks and as the industry awaits NAB and latest product enhancements & launches

  • ● Record revenues reported for the nine months to 31 March 2022 of A$31.1m (US$23.1m)

    (unaudited)

  • ● Positive cashflows from operating activities for the March 2022 Quarter:

    • ○ A$446k positive cashflows from operating activities after excluding Interest & Taxes

    • ○ A$527k after excluding Inventory Deposits

  • ● Complete repayment of USD-denominated debt of US$3.68m, leaving a fully undrawn facility of US$4.5m available until 31 December 2022, absent any further extensions

  • ● Fully funded for growth over next two years and beyond, absent (any) strategic acquisitions

  • ● Strong liquidity position of A$24.3m+ as of 31 March 2022, (A$25.3m at today's spot rate)

BirdDog Technology Limited ACN 653 360 448

C/o JM Corporate Services

1

Level 21, 459 Collins Street, Melbourne, VIC 3000

SALES

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In terms of unit sales for BirdDog's hardware portfolio, for the nine months to 31 March 2022 compared to the nine months to 31 March 2021 (pcp - previous corresponding period), as tabulated below, the overall growth was 14.3% pcp. The Converters category achieved 20% growth pcp (excluding the "end of life" BirdDog Studios, which ceased being sold in September 2021), Cameras (5%) and Controllers (11%), with the AV Product category (Wall Plates only at this stage) shipping from December 2021 only.

HARDWARE SKUs SHIPPED

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Converters

Cameras

Controllers

AV

FYTD to 31-Mar-22

FYTD to 31-Mar-21

PRODUCT LAUNCHES

  • Six new hardware products covering BirdDog's Cameras, Converters, AV & Monitor portfolios, to drive incremental revenues across those primary categories:

    • o BirdDog's award-winning ('NAB Trade Show Best Monitor Recorder') Cloud-first Core 5 and Core 7 monitors represent the Company's entry into the 'on-camera' monitor market, specifically designed for live production outlets

    • o Open Gear (Converter) represents BirdDog's first foray into the broadcaster's server rack, with 40k racks globally and 10 'slots' per rack available for the Open Gear card

    • o BirdDog's "pod" - an NDI® to USB Adaptor - is fuelling the Company's push into the new AV market vertical. The pod is a world-leading NDI® to USB Webcam device that accesses any NDI® video and converts to a USB webcam, enabling connection to Zoom (and Microsoft Teams, Google Meet etc) and any conferencing or software application that supports a USB Webcam input

BirdDog Technology Limited ACN 653 360 448

C/o JM Corporate Services

2

Level 21, 459 Collins Street, Melbourne, VIC 3000

  • Eight new software SKUs released, to energise and drive forward the software revenue contribution:

    • o The software-embedded hardware approach is deliberate, promoting BirdDog awareness, with 50,000+ BirdDog hardware units in the field, upgradable remotely

      For personal use only

    • o Developing the Company's software as a service model via the cloud-based infrastructure products, including BirdDog Cloud and Cloud Connect, which is poised to deliver scalable revenue at very healthy margins

  • Feature updates across the entire product portfolio for the 50,000+ existing BirdDog hardware customers, including cloud-native architecture embedded in every BirdDog SKU (both existing and new)

STRATEGIC GROWTH

BirdDog is fully funded for growth as the Company approaches FY23, with a raft of new products and partnerships that see it poised to commence the next exciting phase of growth, underpinned by long-term, strategic forays into:

  • Products

    • o Software-enabled hardware, throughout BirdDog's entire product portfolio/suite

    • o An extensive and brand-new range of AV products - higher margin products

    • o Propelling the accelerated evolution of AV & Broadcast industries with BirdDog's unique technology and IP

  • Partnerships

    • o Strategic partnerships with A-grade global companies, including cloud-native architecture

      • o BirdDog Cloud: BirdDog Silicon 2 enables direct integration with BirdDog Cloud for BirdDog's hardware pieces - with 50,000+ units already in the wild - to expand the Company's software revenues

      • o Cloud Connect: a recurring revenue model with universal device support

FINANCIAL PERFORMANCE

BirdDog recorded revenue in the quarter of A$7.1m (US$5.1m) and A$31.1m (US$23.1m) for the nine months to 31 March 2022, as revenue growth remained strong through Q3 FY22 despite the March quarter consistently being the Company's - and the broader industry's - quietest period, coupled with minimum buying patterns prior to the April NAB Trade Show.

BirdDog continued to achieve strong sales across its core Camera and Converter products during Q3 FY22, recording 14.3% pcp growth for hardware units, whilst expanding its product portfolio with new hardware and software offerings and developing new platform technologies.

The revenue contribution by hardware category is illustrated below in US$ million, noting global sales are denominated in US$ and the fluctuations of the AUD to US$ exchange rate impact the revenues and margins as currently reported in the Company's financials:

BirdDog Technology Limited ACN 653 360 448

C/o JM Corporate Services

3

Level 21, 459 Collins Street, Melbourne, VIC 3000

BDT REVENUE - US$M

9 MONTHS TO 31 MARCH 2022

$0.397 , 2% $1.710 , 7% $0.198 , 1%

For personal use only

ConvertersCameras & ControllersAV & AccessoriesChips & BoardsSoftware

CASH FLOW

BirdDog generated positive cash flows from operating activities in Q3 FY22 having emerged from an active last 10 months, which included the completion of its IPO on 20 December 2021 and the doubling of its global headcount from 18 in June 2021 to 35 today, excluding the three NEDs.

Cash inflows from operating activities for Q3 FY22 totalled $31,000 (Q2 FY22: cash outflows of $8.33m). Enhanced cash inflows, excluding net Interest of $62,000 (Q2 FY22: $51,000) and Corporate Income Taxes of $352,000 (Q2 FY22: $NIL), were $446,000 (QY FY22: cash outflows of $8.27m), while cash flows excluding Inventory Deposits came in at $527,000 (Q2 FY22: cash outflows of $1.18m). The importance of Inventory Deposits to BirdDog's business is explained in some detail immediately below within the 'Inventory management' section.

The Company had cash available at the end of the quarter of A$24.3m, being the equivalent of A$25m at the quarterly average USD FX rate of 0.7235, rather than the 31 March 2022 spot rate of 0.7482, noting today's spot rate is 0.7099.

Access to the entirety of the Company's US$4.5m (A$6m) Trade Facility, denominated in US$, with Export Finance Australia remains fully undrawn - with the 31 December 2021 drawn balance of US$3.68m having been repaid on 1 February 2022 - and will continue to be fully available through to the scheduled facility review date of 31 December 2022.

INVENTORY MANAGEMENT

BirdDog's Inventory Deposits are critical to the business and the value of deposits made in each quarter substantively impacts the reported cash flows from operating activities.

In line with the Company's Use of Funds disclosed within the November 2021 Prospectus, BirdDog's focus on building inventory has driven the continued de-risking of its supply-chain challenges that businesses in the industry are currently facing daily and ensured the Company's distribution channel is adequately stocked, particularly following key trade events such as NAB.

BirdDog will continue to place forward-looking, risk mitigating and supply-chain assuring 30% Inventory Deposits with its manufacturing partners, which will continue to be separately

BirdDog Technology Limited ACN 653 360 448

C/o JM Corporate Services

4

Level 21, 459 Collins Street, Melbourne, VIC 3000

identified at item 1.8 of the quarterly Appendix 4Cs. This tactic de-risks BirdDog's supply chain and protects the Company from the more extravagant supply-chain susceptibilities that all global businesses are facing.

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The Company's statutory, quarterly reported working capital position is impacted by timing lags between paying Inventory Deposits, manufacturing the Finished Goods Inventory, its third-party logistics (3PL) receipting the Finished Goods and selling through BirdDog's distribution channel.

ADDITIONAL INFORMATION

The table below illustrates the expenditure comparison against the Company's 'Use of Proceeds' table in the Prospectus dated 18 November 2021:

Use of Proceeds

Year 1 per Prospectus

Actual amount spent to date, since listing

Inventory Build

$11,150,000

$2,095,000

IP Management

$100,000

$27,000

Research & Development

$1,750,000

$504,000

Manufacturing Development

$750,000

$224,000

Regulatory Management

$250,000

$38,000

Marketing Activities

$750,000

$294,000

Working Capital

$3,100,000

$898,000

Expenses of the Offer

$1,920,000

$1,928,000

Total

$19,770,000

$6,008,000

In accordance with Listing Rule 4.7C, payments made to related parties and their associates included in item 6.1 of the Appendix 4C was A$140,000 that comprised Director fees, salary and superannuation for the CEO/Managing Director, Independent Chair and Non-executive directors (NEDs).

BirdDog Technology Limited ACN 653 360 448

C/o JM Corporate Services

5

Level 21, 459 Collins Street, Melbourne, VIC 3000

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BirdDog Technology Ltd. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 02:01:04 UTC.