30 June 2020 Annual Report

Revenue $12,420M (Up 85.0%) Operating profit $1,581K (up 138.5%) Profit the period $1,359K, (2019 Loss ($1,041)) Cash at bank $3,169K (2019 $771K) Shareholders funds $13,769K (2019 $6,630k) Review of operations and outlook Following the qualified audit opinion on the financial statements for the year ended 31 March 2019, Enprise Group undertook a review of the methodology and parameters used to support the previous carrying values for its investments in Kilimanjaro Consulting Pty Ltd and iSell Pty Ltd. Advice was sought from independent corporate finance advisors - no adjustment was necessary in relation to Kilimanjaro, however an impairment charge of $0.440m was required for iSell which related to the 31 March 2019 period. On 17 January 2020, Enprise was publicly censured for breaching NZX Listing Rule 3.6.1 by filing its 2019 Annual Report 14 business days late. The Tribunal ordered Enprise to pay a fine of $35,000 and costs of $3,800, in addition to the public censure. The shares were suspended from trading on the NZX for 8.5 days until the annual report was lodged with the NZX. Enprise merged the customers of Enprise Australia Pty Limited into Kilimanjaro. Kilimanjaro in Australia and Enprise Solutions Limited in New Zealand have been organised under a single management structure to become the Enterprise Solutions Division of Enprise Group Limited. The business is now operating as 'One Company, Two Brands'. The Enterprise Solutions division continues to leverage its position as the only MYOB Exo and MYOB Advanced reseller with offices in both New Zealand and Australia, to target trans-Tasman businesses. Enprise is well positioned to take advantage of the trend towards cloud, which has accelerated due to the need to have remote working while still having a stable, well supported, secure and continually developed on-premises offering. On 1 May 2019, Enprise acquired the eight MYOB Advanced customers of Walker Scott. The company has declared a final dividend for the period ended 30 June 2020 of 2.0 cents per share payable on 23 October 2020. Datagate had 91 paying customers up 102% from 31 March 2019 representing annualised recurring revenue of $1.121m, up 138% from 31 March 2019. Datagate has significantly increased its customers in the USA and has recently acquired customers in Europe. The Datagate November 2019 rights issue was 102% over-subscribed, raising $1.01m. Enprise subscribed for its share of the rights issue, however due to the over subscription its ownership has reduced to 33.5%. At the rights issue price of $1.90 per share, Enprise's 1,858,107 shares have a notional value of approximately $3.53m. This compares favourably to the actual carrying value in the Enprise books at 30 June 2020 of $0.628m (after expensing Enprise share of the Datagate losses for the year). We remain confident in the future success of the Datagate business. Effective 1 January 2020, Enprise issued new shares in return for shares in iSell, this transaction increased Enprise's share in iSell to 46.6%. In addition to acquiring 90,000 shares for cash from existing shareholders, Enprise subscribed for A$0.709M and increased its share of iSell to 50.8% which resulted in iSell becoming a subsidiary. iSell has continued development of the cloud product and at 30 June 2020 established a beachhead of 17 customers in the United Kingdom in addition to signing their first customer in the USA. Vadacom Holdings Ltd continued to grow with revenue up $0.5m (up 16.4%) year-on-year as COVID-19 work restrictions helped power demand for its tailored cloud PBX phone systems. As a result of an independent valuation Enprise Group realised a $0.22m increase in the value of its Vadacom investment in the period, to $0.81m. End CA:00363940 For:ENS Type:ANNREP Time:2020-11-25 15:59:05