For personal use only MOBILE EMBRACE - Australian ...€¢ President Bharti Airtel India • Managing Director Telstra International 22 years Digital, Marketing and Telecommunications

ASX:MBE

MOBILE EMBRACE

Chris Thorpe, CEO 4 August 2015

2015 Financial Year Results

REACH ENGAGE TRANSACT EMBRACE 1

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CONTENTS

2015 HIGHLIGHTS AND MBE OVERVIEW 1

2

3

4

5

FINANCIAL RESULTS

LEADERSHIP TEAM

GROWTH UPDATE

OUTLOOK

2

REACH ENGAGE TRANSACT EMBRACE

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12015HIGHLIGHTS

& MBE

OVERVIEW

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$33m up 71% (exceeded guidance)

RECORD REVENUE

Up 118% (organic and acquisition)

MARKETING REVENUE

Strong trajectory into FY16

RECORD Q4 - $10.4m

Customer base

grows 30%

AUSTRALIAN

M-PAYMENTS$5.1m up 62% (exceeded guidance)

Underlying EBITDA $9.9m*

RECORD EBITDA

76% of M-Marketing

clients are repeat

CLIENT RETENTION

11% of total m-payments

and growing

Q4 up 54% over Q3

OVERSEAS REVENUE

Singapore

Switzerland

United Kingdom

M-PAYMENTS LAUNCHED

OVERSEASThe Performance Factory

EggMobi

Clipp Investment

ACQUISITIONS

4


HIGHLIGHTS

HIGHLIGHTS & OVERVIEW 2 3 4 5

* Underlying EBITDA excludes increased marketing expenditure and additional headcount for overseas expansion

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WHAT IS MOBILE EMBRACE?REACH ENGAGE TRANSACT EMBRACE

OUR TEAM

70 FTE mobile specialists in

Sydney, Melbourne, Brisbane,

NZ, Singapore, UK and Vietnam

TECHNOLOGY

Global-leading mobile

technology stack

EXPERIENCE

Leaders have 70 years

combined mobile marketing and

mobile payments expertise

GLOBAL MOBILE MARKETING AND PAYMENTS COMPANY (ASX:MBE)

LEADERSHIP

Led by founders (since 2005)

and managers holding

substantial equity in MBE

ADVERTISERSpaying MBE to reach and

transact with customers

CONSUMERSpaying MBE for digital products and

services on their mobile devices


Driving revenue from

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WHAT DO WE DO?



Mobile marketing and

payments enabler and

digital distribution network

Mobile Embrace enables businesses globally to

Reach, Engage, Transact and Embrace

customers via mobiles and tablets

Integrated and award

winning mobile payments

and marketing infrastructure

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FULLY INTEGRATED GLOBAL TECHNOLOGY ASSETS

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REACH

ENGAGE

TRANSACT

EMBRACE

Media Trading Desk

Customer Analytics Platform

Premium Audience Targeting

Customer Acquisition Apps

Rich Media & Gamification

Lead Generation Networks

Agnostic Mobile Payments:

Direct Carrier Billing

Credit Card, Paypal

Product & Customer Platform

Customer Lifetime Value Platform (CLV)

Customers


to

connect

with

utilise

MBE’s

global

assets

Brands

Products

Corporates

Publishers

Ad Agencies

Telcos

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ACHIEVING GLOBAL SCALE IN FY15

REACH

Mobile Embrace’s assets

delivered 4.26 billion

branding impressions on

people’s screens

ENGAGE

56 million targeted

customer engagements

delivered with

MBE assets

TRANSACT

5 million targeted

transactions were

generated globally

EMBRACE

MBE delivers to global

consumers on any

device maximising

customer lifetime value

HIGHLIGHTS & OVERVIEW 2 3 4 5F

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2FINANCIALRESULTS

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FY13

$m

FY14

$m

FY15

$m

Variance

FY14 to FY15

Compound Annual

Growth Rate

Revenue 12.1 19.2 33.0 + 71% 65%

EBITDA 1.1 3.1 5.1 + 62% 115%

Underlying EBITDA N/A N/A 9.9* N/A N/A

NPAT 0.4 2.4 3.0 + 22% 174%

PROFITABLE GROWTH

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1 FINANCIAL RESULTS 3 4 5


* Underlying EBITDA excludes increased marketing expenditure and additional headcount for overseas expansion

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FINANCIAL RESULTS

0

5

10

15

20

25

30

35

FY11 FY12 FY13 FY14 FY15

$m

REVENUE EBITDA

-1

0

1

2

3

4

5

6

FY11 FY12 FY13 FY14 FY15$

m



Exceeded

guidance Exceeded

guidance

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REVENUE GROWTH BY QUARTER

MBE IS DELIVERING GLOBAL SCALE

Enjoying strong momentum into FY16

EXCEEDED Q4 GUIDANCE

by 12%

$9.3m to $10.4m

STRONG REVENUE GROWTH

Up 103% Q4 FY14 to FY15 (organic & acquisition growth)

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0

1

2

3

4

5

6

7

8

9

10

11

FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

$m

Exceeded

guidance

$102M MARKET CAP (ASX:MBE)

$9.5m cash at bank

No debt

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3GROWTHUPDATE

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M-PAYMENTS PERFORMANCE

Key Growth Metrics and Drivers

Q4 International transactions up

54% on Q3

INTERNATIONAL EXPANSION

INFRASTRUCTURE

ORGANIC GROWTH

Australian subscriber base

increased by 31% in FY15

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Improved processes and efficiencies

Powerful technology assets drive

recurring revenues and profits

Technology driving marketing

efficiencies and scale

MEDIA TRADING DESKFor

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GLOBAL M-PAYMENTS TRANSACTIONS

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1 2 GROWTH UPDATE 4 5

Q3FY13 Q4FY13 Q1 FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15

Australia International

GROWING TRANSACTIONAL VOLUMES

Delivering strong annuity revenue and

profit

INTERNATIONAL TRANSACTIONS

10% of total M-Payments transactions

Set for material growth FY16

FY16 FOCUS ON GLOBAL

CUSTOMER ACQUISITION

Model has been proven in multiple

territories in line with stated strategy

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INTERNATIONAL M-PAYMENTS REVENUE

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INTERNATIONAL GROWTH

International revenue has grown to

11% of total M-Payments

UNITED KINGDOM

MBE is now connected across all major

Telcos in UK running in ‘Test and Learn’.

MBE anticipates a market rollout in

1HFY16

SINGAPORE AND SWITZERLAND

Small markets but strategically important

to MBE’s International rollout 0%

2%

4%

6%

8%

10%

12%

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15

International Revenue AUD Percentage of Total Revenue

1 2 GROWTH UPDATE 4 5 F

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M-MARKETING PERFORMANCE

Key Growth Metrics and Drivers

Up 118% in FY15 to $10.9m

(organic and acquisition)

REVENUE

CLIENT BASE

76% of clients are repeat business

Campaigns up 62% Number of

brands up 54%

Premium Publisher Network expanded

reach to more than 65% of Australian’s

Customer acquisition via in-house

networks up by 123%

YIELDTechnology is driving optimum reach,

performance, scale and profitability

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REACH

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MARKETING REVENUE GROWTH

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0

2

4

6

8

10

12

FY12 FY13 FY14 FY15

$m

LEADING MARKET POSITION

in Australia maintained

REVENUE UP 118% (organic and acquisition)

Continues to outpace market growth

KEY METRICS

Continued growth across all key metrics

as mobile marketing sector continues to

gain momentum

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INVESTMENT IN CLIPP

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Simple “Uber like” customer experience for the

$42 billion hospitality industry

Provides a loyalty and marketing platform for

venues to attract and retain customers

Captures previously unavailable on-premise consumer purchase data for the hospitality

industry

Mobile Payment environment increasing speed

of service

MBE provides cost-effective customer scale and speed to market to Clipp


Fully integrated with 13 out of the top 20 POS systems in Australia enabling mass venue scale

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HOW CLIPP WORKSREACH ENGAGE TRANSACT EMBRACE


flash your phonefind a venue set your limitPoint-of-Sale leave like you own

the place

Download Clipp fromUse Promo Code

TRYCLIPP15when opening your first tab

Let us buy you a drink!

Here’s $15 off your first tab

at a Clipp Venue:

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4LEADERSHIP

TEAM

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MBE BUSINESS LEADERSHIP TEAM

SIMON ALLISON

CEO MANAGING DIRECTOR

NEIL WILESCHRIS THORPE

DREW KELTONCFO

21 years Telecommunications and Financial

Markets Experience

• Co-Founder of MBE

• Business leader in telecommunications with

key commercialised innovations

• Industry acknowledged achievements

through multiple business awards

30 years Telecommunications Experience

• Executive Vice President T-Mobile USA

• President Bharti Airtel India

• Managing Director Telstra International

22 years Digital, Marketing and

Telecommunications Experience

• Co-Founder of MBE

• Strategically led multiple businesses from

start-up to success

• Awarded and accredited digital media

innovator and industry expert

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1 2 3 LEADERSHIP TEAM 5


NON-EXEC CHAIRMAN

25 years Finance Experience

• Directorial and Finance rolls in UK, Asia,

New Zealand and Australia

• Formerly CEO Business Services

Leading Edge Group

• Strong background and growth record in

telecommunications and tech sectors

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5OUTLOOK

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BUSINESS SENSITIVITIES

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MARKET

Fluctuation in mobile

advertising spend, business

spend on mobile or consumer

sentiment

Lumpiness that can come from

campaign sales or change in

spending patterns

Forex Hedging Strategies in

place

Cash conservatively managed

TECHNOLOGY

Competitive technologies

Risk that new technologies

emerge that impact competitive

advantage

Carrier support of billing

platforms

Carriers changing their support

for carrier billing of mobile

products and services

DSP’s (Demand Side Platforms)

Use of self service platforms for

purchase/pricing of ad inventory

negatively impacting demand for

mobile advertising

COMPETITORS

New competitive market

entrants

Risk that new competitors enter

market with a similar business

Marketing channels, New

Product and Billing channel

performance

Non-performance of marketing

channels or disinterest in

products by consumers

REGULATION

Regulation

Changes in rules around the

regulation of mobile products and

services

Restrictions in handset

platform access – e.g. Apple’s

current eco system

Handset manufacturers or mobile

platform developers restricting

consumer access to products and

services

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STRATEGIC PRIORITES FY16

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Increase scalability through International

expansion leveraging existing model

Continue to identify synergistic price accretive

acquisition targets through our proven

disciplined investment criteria

Revenue

Disciplined expansion and profitable growth

in-line with stated strategy

Further strengthening technology assets

A key element of MBE’s competitive advantage

1 2 3 4 OUTLOOK

Profit

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SUMMARY AND OUTLOOK

Mobile Embrace is focused on exploiting and growing our leading position

into global markets - delivering wealth for shareholders

Strong balance sheet with $9.5m cash and no debt

International markets are delivering growing revenues with profits on track for FY16

MBE continues to see customer growth from the recent acquisitions directly benefiting

the existing businesses. Further acquisition opportunities will continue to be assessed.

MBE’s business is highly scalable, capital light with significant revenue, margin and free cash flow potential

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Strong growth trajectory into FY16

1 2 3 4 OUTLOOK


MBE is a strategic, profitable and growing digital distribution channel

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DISCLAIMER

• This presentation has been prepared by Mobile Embrace Limited (ABN 24 089 805 416) (MBE). Each recipient of this presentation (Recipient) is deemed to have agreed to accept the qualifications, limitations and disclaimers set out below.

• MBE and its subsidiaries, directors, officers, employees, advisers or representatives (together, Beneficiaries) make no representation or warranty, express or implied, as to the accuracy, reliability or completeness of any information contained in this presentation, including any forecast or prospective information. Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. The historical information in this presentation is, or is based upon, information that has been released to the market. For further information, please see past announcements released by MBE to ASX.

•The forward-looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, the Beneficiaries. Actual future events may vary materially from the forward looking statements and the assumptions on which those statements are based. Given these uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. Similarly, statements about market and industry trends, which are based on interpretations of current market conditions, should be treated with caution. Such statements may cause the actual results or performance of MBE to be materially different from any future results or performance expressed or implied by forward-looking statements. Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Such forward-looking statements speak only as of the date of this presentation.

•MBE disclaims any intent to, and does not promise or undertake to, update publicly any forward-looking statements or any other content of this presentation, whether as a result of new information, future events or results or otherwise.

•This presentation is a general overview only, it does not take into account the individual investment objectives, financial situation or particular needs of any person, and it does not purport to contain all the information that may be required to evaluate an investment in MBE. The information in this presentation is provided personally to the Recipient as a matter of interest only. It does not amount to an express or implied recommendation with respect to any investment in MBE, nor does it constitute investment, legal, tax or other advice. The Recipient, intending investors and their respective advisers, should: (a) conduct their own independent review, investigations and analysis of MBE, and of the information contained or referred to in this presentation; and (b) seek professional advice as to whether an investment in the securities of MBE is appropriate for them, having regard to their personal objectives, risk profile, financial situation and needs.

•Nothing in this presentation is or is to be taken to be a solicitation, offer, invitation or other proposal to subscribe for MBE securities. This presentation does not and will not form part of any contract for the acquisition of MBE securities. The distribution of this presentation in jurisdictions outside Australia may be restricted by law and persons who come into possession of this presentation in such jurisdictions should seek advice on and observe any such restrictions.

•Except insofar as liability under any law cannot be excluded, none of the Beneficiaries shall have any responsibility or liability for any information contained in this presentation or in any other way for errors or omissions (including responsibility to any persons by reason of negligence).

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Documents

For personal use only MOBILE EMBRACE - Australian ...€¢ President Bharti Airtel India • Managing Director Telstra International 22 years Digital, Marketing and Telecommunications