Aconex : 2016 AGM Address including Outlook

25 October 2016

Aconex 2016 AGM Address and Outlook

Dear Sir / Madam,

Re: 2016 Annual General Meeting Address and Outlook

Please find attached a copy of the address to shareholders by Chairman Adam Lewis and Managing Director Leigh Jasper at the Annual General Meeting to be held today at 2:00pm in Melbourne.

Anna Gorton Company Secretary

ASX Market Disclosure

25 October 2016

Aconex 2016 AGM Address and Outlook

Chairman's Address

On behalf of my fellow Directors, I am delighted to welcome you all here today, those of you who are long-term shareholders and those who have joined us more recently.

A lot has happened since our last AGM.

Financial year 2016 was one of significant milestones for Aconex. We recorded strong organic growth in revenue and earnings, and saw substantial improvement in both trading volume and liquidity. We continued to drive increasing value to shareholders and just 18 months from our initial public offering, we were added to the S&P / ASX 200 Index.

Throughout the year, we have continued to focus on increasing value to our customers through our leadership of digital innovation in construction. The delivery of new products, the deeper penetration of our core platform, and the leverage of data and insights on our platform have driven competitive advantage for our customers. This will generate further benefits for Aconex and our shareholders into the future.

The acquisition of Conject Holding GmbH consolidated our global market leadership position. We expanded our technology and product capabilities through the acquisition of Worksite and our strategic partnership with the CIMIC Group.

We made measurable progress on our core strategic objectives:

• Leveraging the industry and collaboration network effects to drive new business from both new and existing customers

• Expanding the breadth of the Aconex platform to drive increasing value for customers and users as well as competitive advantage

• Investing in new and existing markets to drive penetration, balancing revenue growth and profitability

We continuously seek opportunities to strengthen the quality and effectiveness of our board of directors to achieve the right mix of industry, international business and governance experience.

One of the key activities for the board is to work closely with the executive team to balance near-term performance and investment in long-term growth opportunities. Given the large opportunity in front of the business, reinvesting a percentage of revenue and profit to drive penetration and geographic growth

is key to our strategy. Realising a return on these investments may take months or years, resulting in a trade-off of profit today for revenue growth tomorrow.

The board and executive team spend considerable time formulating and monitoring the execution of these plans to optimise shareholder outcomes. We also ensure that we remain flexible to take advantage of opportunities that may arise from time-to-time. These may be acquisitions, such as Conject, or market penetration opportunities where we feel it is appropriate to increase or decrease investment in certain geographies or products.

Our FY16 results show that as the business scales globally, revenue growth drives earnings growth, which in turn enhances shareholder value. We are committed to delivering profitable growth over the long term.

As a Board we are constantly seeking to improve shareholder communications and we hope that you will take the opportunity today to engage with us and ask any questions that you may have.

On behalf of the board, I want to thank you for your support and ongoing confidence in our company. I would also like to acknowledge the achievements of the Aconex staff and, together with the Board,

thank them for their contributions to the ongoing success of the business and in particular their efforts in

financial year 16.

I will now hand over to Leigh who will provide you with a deeper insight in to the performance of the business during the 2016 year, and the company's future outlook.

Managing Director's address

Thanks, Adam, and welcome to all Aconex shareholders here today.

Firstly, I will review our strong FY16 results and then provide an overview of our financial model and cash flow before presenting our outlook for the Aconex Group.

FY16 was another exceptional year of strong performance for Aconex. The rapid digitization of construction and infrastructure globally is driving increased demand for Aconex, and we have executed well on our strategic objectives over the last 12 months. This has delivered strong financial results.

Revenue, including Conject, was up 50% for the financial year to $123.4 million. EBITDA was up significantly, 350% to $13.6 million, and we also saw a strong lift in our operating contributions.

Across our regions, ANZ continues to perform well, growing at 35% to $48.8 million, and our international business grew rapidly with total revenues up 61% to $74.6 million.

On a constant currency basis, and excluding Conject, year-over-year growth was 31% for the company.

Revenue growth in FY16 accelerated to 50% year-over-year, continuing the strong growth trends of recent years and a compound annual growth rate of 29% per annum. Importantly, Aconex has grown revenue every year since its founding, through multiple economic cycles and the global financial crisis.

While growing revenue rapidly, Aconex has balanced this with increasing profitability. EBITDA has stepped up significantly over the last few years to $13.6 million at an EBITDA margin of 11%.

Last year Aconex delivered large increases in operating contributions across all of our regions. Our international performance is tracking the trajectory of the ANZ business.

The ANZ region delivered a contribution of $34.5 million, at just over 70% margin.

The Americas had an outstanding year, growing revenue to $21.3 million, at a 45% growth rate. As we continue to invest in the region, and given the large opportunity for top line growth, we do not expect contribution margins to lift significantly in the short term.

Revenue in the EMEA region grew rapidly, through the acquisition of the Conject business, to $40 million. The contribution was $17.4 million at 44% margin. Over time and as the region matures, we expect the EMEA contribution margin to approach that of the Australian business.

The Asia region didn't have quite as strong a year as some of our other markets. It still remains a large longer term opportunity and is under penetrated when compared to other regions. Recently, we have seen increasing momentum in new business generation.

Overall international revenue was up 61% for the financial year ‒ a tremendous growth rate - demonstrating the long term potential we have in this very large, unpenetrated market. International revenue is now more than 60% of total revenue and will step up further next year to around 70% of total revenue.

Our strong results have been driven by the consistent execution of our three-part growth strategy. The first part is to grow the network, the second is to increase customer value and the third is to drive performance.

Our strong network growth was driven by key influential customer wins such as CIMIC; Burns & McDonnell, Bechtel and Fluor in the US; and ExxonMobil in the oil and gas sector. These recognised leaders help us drive significant uptake of Aconex around the world.