CONNEXION MOBILITY LTD — AGM Information 2015

Nov 26, 2015

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Connexion Media Limited Annual General Meeting 27 November 2015

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Disclaimer

Connexion Media Limited (“Connexion”) is an Internet of Things (IoT) ASX listed company, revolutionising smart car technology for the automotive industry. This document contains certain forward-looking statements that involve risks and uncertainties. Although we believe that the expectations reflected in the forward-looking statements are reasonable at this time, we can give no assurance that these expectations will prove to be correct.

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements due to many important factors, risk and uncertainties, future capital needs, general economic uncertainty and other risks detailed from time to time in the Company’s announcements to the ASX.

Copyright: Connexion Media 2015

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Corporate Overview

Connexion Media (ASX: CXZ) is an Internet of Things (IoT) ASX listed company, revolutionising smart car technology for the automotive industry

CXZ has developed two flagship Software as a Service (SaaS) products which deliver cutting edge technology to the automotive industry:

Flex

a cloud based, integrated management system providing high end telematics (fuel efficiencies, safety etc) to small fleet businesses to enable them to manage their entire fleet via a centralised control system

miRoamer

an internet radio and music infotainment service offering over 35,000 stations to consumers around the world

ASX: CONNEXION MARKET DATA (AS AT 23.11.2015) Share price $0.19 Share on issue 84.6 million Options on issue 84.6 million Market Cap $16 million 52 Week High $0.32 52 Week Low $0.14

The Company has secured commercial agreements with leading automotive industry players to roll out its proprietary smart car technology across millions of vehicles in the coming years.

Copyright: Connexion Media 2015

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Investment proposition

• Market leading technology in the high growth automotive IoT space, with internet car services expected to be worth c$35 billion by 2018

• Proprietary technology product portfolio with strong commercial validation from leading global automaker partners, including major US automaker and WEX Australia

• Strong defensibility with ownership of all intellectual property, infrastructure services and know-how

• Robust SaaS commercial model with multiple revenue streams and significant scalability

• Transformational revenue growth, estimated to reach in excess of $20m in FY2017 and $35m in FY2018 from existing blue-chip commercial partnerships

• High activity near-term catalysts to accelerate growth and expand internationally

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– Internet of Things the automotive industry

The Internet of Things

• 25 billion devices all in all by 2020 (Gartner)

Technology developments that connect devices over the internet, allowing everyday objects have network connectivity and inter-device communication.

• –

• Automotive shows fastest growth rate 95% (Gartner)

• Car services estimated to be $35 billion by 2018 (SBD 2012)

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Industrial Security and public safety
Retail Consumer and Home
Transportation
(Vehicles) Energy
Buildings Healthcare and Life sciences
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• Embedded telematics is set for rapid growth to reach 600 million vehicles by 2025

• 52% of cars will be internet connected by 2020; 100% of cars will be internet connected by 2025.

• 5% of all internet connected devices

• This represents , up from 0.1% currently (SBD 2012)

Copyright: Connexion Media 2015

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Flex attractive to largest segment of fleet market

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1.1 million
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• Over 450,000 fleets with over 6 million fleet vehicles currently in the US

• Includes “commercial non fleet” small fleets with between 5 and 14 vehicles, typically owned and maintained by small businesses

• Highly fragmented in this lower end - with no IoT offering

• Flex will initially target the largest sector of the fleet market with its simplified fleet management system

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251 Fleets with
over 1,000 vehicles 0i
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900,000 +
1,683 Fleets with
500-999 vehicles
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600,000 +
4,710 fleets with 100-499 vehicles
250,000 +
12,480 fleets with 15-99 vehicles
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Flex Target Market

‘ Commercial Non- Fleet’ small fleets and private – cars 250 million + addressable market

Represents Flex US market opportunity only.

(Source: US Department of Transport)

Copyright: Connexion Media 2015

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Operational Update

• Strong commercial progress for Flex and miRoamer technologies

• Key distribution contract for Flex with a US automaker giant

• • – Post period, continued commercial contract momentum through WEX Australia September 2015

• • – miRoamer licensing deal with major South American automaker April 2015

• • Over 10 commercial contracts & partnerships for miRoamer making it available in over 50 models of vehicles globally

• • Worldwide miRoamer distribution agreement with Ford for inclusion in its SYNC infotainment system

Copyright: Connexion Media 2015

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Operational Update

• Completion of product development program and investment for Flex including:

• ◦ Capacity expansion increase from 25,000 vehicles to up to one million vehicles

• ◦ Back end infrastructure and ongoing customer support teams in place

• ◦ Launch of Android and iOS apps making Flex available to circa 96% of smart phone users globally

• • Flex is now positioned for rapid revenue acceleration from existing customer contracts

• • New miRoamer cloud-based infrastructure and iOS app development is nearing completion, positioning it as a next generation SaaS product

• • New US subsidiary & key appointment to drive US penetration, ex General Motors executive –

• appointed to head up US operations July 2015

• – Anthill ‘Smart 100’ Award for Flex & miRoamer technologies May 2015

Copyright: Connexion Media 2015

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Financial Highlights

• –

• First product revenues from Flex and miRoamer in June 2015

• Gross revenue increased by 95% to $119k in September quarter, generated from Australian & US customers

• Well funded through:

• –

• Oversubscribed issue of options raising over $1.2 million Mar and May 2015

• • Successful capital raise of $2 million of convertible notes to domestic and international sophisticated and professional investors - Aug 2015

• –

• Receipt R&D refund of $0.72m October 2015

Copyright: Connexion Media 2015

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Guidance

Projected subscribers

Revenue (AUD)

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200,000
200,000
150,000
100,000
100,000
50,000
50,000
0
FY 2016 FY 2017 FY 2018
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$40 million
$35m
$30 million
$20m
$20 million
$10 million
$3m
$0 million
FY 2016 FY 2017 FY 2018
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Copyright: Connexion Media 2015

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Continued growth

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Growth in staff
60
60
45
30
15
10
0
September 2014 November 2015
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Growth in automotive partners

10 10 8 6 4 2 2 0 September 2014 November 2015

Copyright: Connexion Media 2015

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Strong leadership team Board

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George Parthimos Chief Executive Officer With over 20 years experience developing internet products and networks, George is the founder and CEO of Connexion and miRoamer.

John Conomos

Non-Executive Chairman

Former Chairman and CEO of Toyota Australia. One of the most respected leaders in the Australian automotive industry.

Sean Habgood Non-Executive Director

20 years at Internode (acquired by iiNet ASX:IIN in 2011 for $105m), with strong M&A and technology start-up experience.

Eric Jiang

Executive Director

15 years' experience in the financial services sector, as a corporate consultant and advisor. Substantial listed company experience.

Ashley Kelly

Executive Director

Over 20 years experience advising private and high-net worth individuals on ASX listed securities. Strong ASX listed company experience.

Senior Management Team

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Junior Barrett

Executive Vice President, US Over 14 years of automotive experience at General Motors, identifying and collaborating with key partners to develop vehiclecentric applications.

Tasso Koutsovasilis

Sales & Operations Manager Tasso is a commercial sales pro for technical systems with a focus on improving business results.

Kate Thompson

Project Delivery Manager With over 14 years experience, Kate has worked in a variety of project roles within many organisations.

Graeme Robinson

Technology Manager

Extensive experience in General Management, operations, software development, systems design and architecture.

George Karafotias

Finance & Company Secretary

Qualified accountant. Extensive experience working with a number of ASX listed companies.

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Global corporate footprint

Seattle USA Detroit USA

Cambridge UK Kochi India

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Melbourne: Global HQ
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Copyright: Connexion Media 2015

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Strong commercial validation from leading global automakers

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Vehicles: 7.7 million Vehicles: 6.4 million Vehicles: 6.7 million 8.7% 7.2% 7.5%

Vehicles: 1.1 million 1.3%

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Vehicles: 370,000 0.4%

Vehicles: 1.9 million Vehicles: 1.2 million Vehicles: 2.1 million 2.1% 1.4% 2.4% Includes 2015 production estimates and market share (Source: IHS 2015 production estimates)

Includes 2015 production estimates and market share

Partner cumulative market share

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31%
89 Million
Vehicles
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69%
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• 2015 global vehicle production estimates All numbers have been rounded

Copyright: Connexion Media 2015

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Multi-layered & focused growth strategy

Revenue growth

• Sign further channel partnerships with large automakers • Reseller model to reach subscribers

• White labelling Flex with key distributors & automakers

• Distribution through direct sales & comprehensive marketing campaign

Continue transformation to mature operations

• Grow operational footprint in key geographies to support sales growth

• Expand US and Melbourne operational teams

• Establish a presence in Frankfurt, Germany

• Expand service delivery capabilities in Seattle US and Kochi India to provide ongoing operational and system support to customers

• Grow project delivery functions (project managers, QA teams)

Product development & expansion

• Continuous improvement of existing products, unlocking further value and opportunities

• • Organic product development of new products

• Activate and commercial launch of data analytics product

• M&A and strategic partnerships for co-development of new products

• Innovative partnership programs to support start-ups in the connected car space

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Highly Activity Newsflow pipeline

Highly active newsflow pipeline

• WEX Australia product launch in Dec 2015

• • Completion of capacity expansion for Flex of 2015

• Product launch for Flex based service for US automaker giant in Dec 2015

• • Product launch for miRoamer - via licensing deal with major South American automaker expected to millions of vehicles in South America from 2016

• • Flex trials underway with 8 leading automakers globally in 2016

• • Continued expansion of US and Melbourne operations in 2016

• • – Establish Frankfurt operations to accelerate sales & development in Europe in 2016

• • – Activate and commercial launch Big Data Analytics service new revenue stream in 2016

Copyright: Connexion Media 2015

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Outlook

• Strong revenue growth expected to continue from subscriptions in Australia, US & Europe

• First subscription revenues to commence following Flex-based product launches by WEX and major US automaker partner

• miRoamer licensing revenues to commence from South American partner

• Further partnership opportunities through ongoing Flex technology trials with eight new car manufacturers

Copyright: Connexion Media 2015

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Questions

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Copyright: Connexion Media 2015

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