Ann: Appendix 4E and FY20 Annual Financial Report, page-178

The article in today's AFR's Rear Window about how Nearmap reported churn in its FY reporting gives an inkling.

I was so annoyed with the reporting that I emailed the following to the writer 'tom.richardson@copyright link'

Just readyour piece in AFR;s Rear Window about how Nearmap reported churn in its FYreporting.

I mustdeclare I am a long term holder of Nearmap.

That churnby "a small number of large enterprise customers" that caused the churn rate to risefrom 5.5% to 9.6% was due to two specific reasons – a delay in the take-off ofdriverless cars and the case you mention one customer subject to a court injunction in the US. These are extraordinary circumstances outside a normal understanding of churn which I believe relates to customers moving to other suppliers or otherwise unhappy with the product.

As you say “churn is a closely watched metric by professional analysts as it provides insights into the strength of a product offering and how much ability a company may have to lift prices without losing customers.” And “Churn also impacts analysts' calculations over the lifetime value of a subscription portfolio and future profitability. Normalising it to exclude customers lost in the ordinary course of business doesn't make a whole lot of sense then.” I agree.

The problem these so called losses were of prospective customers who wanted to take up the product and were either prevented by a court order or had to delay because of the delay in the take-off of driverless cars.

This havebeen well reported and understood by shareholders who follow the stock.