Quarterly Activities/Appendix 4C Cash Flow Report

• Integration of three acquisitions largely complete
• Data centre consolidation expected in 1HFY25
• Cash balance of $6.8 million, debt free

Sovereign Cloud Holdings Ltd (ASX:SOV) has provided its activity update for the quarter ended 30 September 2024 ('1QFY25'). The key highlights include: 1) The integration of three acquisitions is now largely complete, with data centre consolidation expected to be finished in 1HFY25. 2) The 1QFY25 results include the first full quarter from the acquisitions. 3) The company has a cash balance of $6.8 million and is debt free. During the quarter, the company received customer cash flow receipts of $9.1 million, which was in line with internal expectations. Total net cash outflows from operating activities were approximately $1.6 million, including one-off restructuring costs of $0.3 million. The majority of the integration activities have now been executed, and the company does not expect the same level of one-off costs going forward. The focus is now on improving organic revenue growth while maintaining cost control. The company also received net cash payments of $0.8 million related to completion adjustments for the recent acquisitions.