AoFrio achieves 18% revenue growth in Q3-2022

A: 21 Arrenway Drive, Rosedale, Auckland 0632, New
Zealand PO Box: 302-533 North Harbour, Auckland 0751,
New Zealand

P: + 64 9 477 4500 E: info@aofrio.com
® is a registered Trademark of AoFrio Ltd.


31 October 2022

Market Announcement
For immediate release




AoFrio achieves 18% revenue growth in Q3-2022.

AoFrio Limited, a leading hardware-enabled, Software as a Service (SaaS) company, also supplying
energy-efficient motors to the global retail food and beverage industry, is pleased to report its trading
results for the three months ending 30 September 2022 (Q3-2022).

• Revenue was NZ$18.1m compared to $15.3m for the same period in 2021 (Q3-2021), an 18.1%
increase.
• Gross Margin was 28.7% (27.8% in Q3-2021).
• EBITDA* was a breakeven result ($0.8m profit in Q3-2021). As expected, this is lower than Q3-2021
due to the increase in headcount to support strong recurring IoT revenue growth.
• The pre-tax result was a loss of $0.8m.
• Cash on 30 September 2022 was $2.7m, and the Company also had $1.0m available under its trade
finance facility.

The Company is maintaining its current guidance. The Company expects annual EBITDA to fall within $3.5 –
$4.5 million, albeit at the lower end of this range due to some customers pushing orders out of Q4-2022 into
Q1-2023.

AoFrio continues to expect three very large revenue months in the last quarter. Revenue is expected to be
around $83m for the year, a 30% increase compared to the 2021 year.

The BNZ is increasing the Company’s trade finance facility from $2.5m to $5.0m. This increase was
requested to provide additional working capital headroom to support revenue growth. We are pleased with
the increasing banking support.

The Board and Senior Management recently completed a strategic review of the business and agreed on
plans to grow revenue within existing and adjacent markets. The early progress on these initiatives is
exciting, and we are mindful that exchange rates and component availability may still impact trading
performance.

AoFrio remains on track to becoming a NZ$100 million revenue company in 2023 which indicates revenue
growth in the 20-30% range. The Company has significant opportunities with its new product range and new
customer targets and expects strong demand in these areas. However, the Company remains cautious
about its base demand, given elevated global macroeconomic risks from rising interest rates that could slow
global growth and affect future revenue.

Greg Balla, AoFrio’s CEO, said, “We continue to make good progress against our growth strategy. For
example, last week we launched our communications platform, which incorporates the launch of our cellular-
enabled product category. The AoFrio Network Pro Communications Hub is a real differentiator in
commercial refrigeration and strongly supports our move to a recurring revenue commercial model.

WT9698


A: 21 Arrenway Drive, Rosedale, Auckland 0632, New
Zealand PO Box: 302-533 North Harbour, Auckland 0751,
New Zealand

P: + 64 9 477 4500 E: info@aofrio.com
® is a registered Trademark of AoFrio Ltd.


“In addition, our new brand identity, AoFrio, has been very well received by the marketplace, and the first
phase of the AoFrio website is now live. Our team has also accelerated new product development as
component swap work has reduced. Proudly, the AoFrio Team has performed outstanding work supporting
the product redesign, as reflected in our third quarter results.”

*EBITDA (i.e., Earnings before interest, taxation, depreciation, amortisation and impairment) is a non-GAAP
earnings figure that equity analysts tend to focus on for comparable company performance analysis. AoFrio
considers it a valuable financial indicator because it avoids the distortions caused by differences in
amortisation and impairment policies.


Contact

Greg Balla Howard Milliner
Chief Executive Officer Chief Financial Officer
Phone + 64 21 938 601 +64 27 587 0455