ASX ANNOUNCEMENT 22 June 2020

Level 1, 16 Gympie Way, Willetton, Western Australia 6155 Australia T +61 8 9259 1592 www.tsnltd.com.au ABN 98 057 335 672

VORTIV BUSINESS UPDATE KEY HIGHLIGHTS:

• Vortiv on track to deliver revenue and profit growth driven by cyber security requirements of Government and financial institutions

• With 72% of Vortiv revenues coming from government and financial institutions, the Company is well positioned to offer its existing clients, solutions to the recent cyber threats. According to Government, a greater spend in cyber security is essential.

• Vortiv’s 25% passive investment in TSI India revised to $5.5 million. EBITDA of $2m, up 11%

VORTIV’S CYBERSECURITY BUSINESS

Vortiv’s cybersecurity business is on track to deliver revenue and profit growth. Strong demand from customers, primarily the government and financial institutions, will enable Vortiv to deliver another quarter of record growth. Revenue in the June 20 quarter is expected to be $3.6 to 3.8 million, while EBIT is expected to be $0.5 to 0.6 million.

Vortiv’s strategy is to continue to pursue the high growth cybersecurity market. To date Vortiv is in a strong

position to benefit from increased market growth driven by cyber security requirements. Vortiv’s focus on both

government and financial institutions, which represent 24% and 48% of the company’s revenue respectively,

proves to be sound as both sectors continue to invest significantly to enhance their cybersecurity technologies,

especially in view of the recent cyber threats. Vortiv, which is on the supplier panel of the federal and all state

governments, expects to benefit from this opportunity.

TSI INDIA VALUATION

Vortiv Limited (ASX:VOR) (Vortiv or the Company) has completed the carrying value review of its 24.89% holding in TSI India for the financial year ended 31 March 2020 (“FY20”).

An independent valuation, completed as part of the Company’s accounting compliance obligations, was completed by a top 6 global accounting firm. The valuation estimated Vortiv’s ~25% holding in TSI India to be between $5.5 million and $8.9 million (mid-point estimate of $7.2 million).

The independent valuation adopted a sum-of-parts methodology, consisting of a discounted cash flow valuation of TSI India’s ATM and other operating businesses, and considering several factors such as:

• Historical performance,

• TSI management projections,

• Local market conditions, and

• Global uncertainty including the potential impacts of the COVID-19 pandemic.

Given the current global conditions, the Board has elected to adopt the lower end valuation estimate of $5.5 million in the Vortiv Balance Sheet for FY20, down from $9.7 million at year ended 31 March 2019 (“FY19”). The revaluation has been reviewed and accepted by Vortiv’s auditors.

TSI India’s Financial Summary

FY20 financial results were adversely impacted by the upgrade of ATMs and the COVID-19 pandemic, but the underlying EBITDA performance benefitted from operational efficiency.

In June 2018, the Reserve Bank of India issued a directive to enhance ATM security measures, requiring ATMs to be upgraded to newer operating systems to address security vulnerabilities. As a result, TSI India invested approximately $28 million in capital expenditure, funded largely by debt, to upgrade its ATMs.

FY20 revenue has been relatively stable at $51.3m, declining 2.1% from FY19 due primarily to downtime from ATM upgrades and COVID-19 lockdown in India since 22 March 2020.

FY20 underlying EBITDA is $2.0m, up +11% from $1.8 million in FY19, after adding back approximately $1 million in one-off ATM logistics costs to decommission and dispose of the old ATMs during the upgrade programme; with the strong underlying performance driven by cost-savings and efficiency measures.

TSI India’s unaudited financial results for FY20 are summarised in Table 1 below (AUD:INR exchange rate of 46.6 as at 31 March 2020):

(A$ million) FY20 FY19 % change

Revenue 51.3 52.4 -2.1%

EBITDA (statutory) 1.0 1.8 -44.4%

One-off costs* 1.0 0 -

Underlying EBITDA * 2.0 1.8 +11.1%

* Removes one-off ATM logistics cost, which consists of $1 million in costs relating to decommissioning and disposal of the old ATMs during the upgrade programme.

TSI India’s financial performance, obligations and the revaluation of its carrying value has no effect on Vortiv’s cash flow and profit after tax.

TSI India Outlook

With the newer ATMs, TSI India expects to benefit from higher ATM up-time as well as lower maintenance and asset replacement costs.

In response to COVID-19 lockdowns, the management team of TSI India continues to implement various operational and financial strategies to counter the business disruption. The Company is pleased to advise that the recent gradual easing of the COVID-19 lockdown has resulted in some recovery in ATM transaction volumes.

More information on TSI India is attached.

Released with the authority of the Board.

For more information: Jeffrey Lai Managing Director jlai@tsiplc.com.au

George Gabriel, CFA Investor Relations investors@bletchleyparkcapital.com.au +61 3 8686 9144

About Vortiv Vortiv Ltd (formerly Transaction Solutions International) is a technology-based company focused on cybersecurity and cloud infrastructure and security. The Company has a 100% ownership of Decipher Works, a Sydney-based cybersecurity specialist that provides consulting and managed services to its loyal client base of financial institutions and large corporations. In addition, Vortiv owns 100% of Cloudten Industries, a cloud and cloud security specialist that assists the government, financial institutions and large corporations migrate, secure and manage their infrastructure in the cloud.

Vortiv also holds a 24.89% interest in TSI India, a company having 400 employees, which has created a scalable operation in the field of e-transactions and payments in India. TSI India owns and manages ATMs for over 30 major banks and offers Bill Payment services to a number of utility companies in India.

Forward Looking Statements Certain statements contained in this document constitute forward looking statements. Such forward-looking statements are based on a number of estimates and assumptions made by the Company and its consultants in light of experience, current conditions and expectations of future developments which the Company believes are appropriate in the current circumstances. These estimates and assumptions while considered reasonable by the Company are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, achievements and performance of the Company to be materially different from the future results and achievements expressed or implied by such forward-looking statements. Forward looking statements include, but are not limited to, statements preceded by words such as “planned”, “expected”, “projected”, “estimated”, “may”, “scheduled”, “intends”, “anticipates”, “believes”, “potential”, “could”, “nominal”, “conceptual” and similar expressions. Investors are cautioned that forward looking information is no guarantee of future performance and accordingly, investors are cautioned not to place undue reliance on these forward-looking statements.

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