CONNEXION MOBILITY LTD — AGM Information 2016

Nov 29, 2016

Enabling the future of the automobile

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AGM Presentation
Connexion Media Limited (ASX:CXZ)
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© 2016 Connexion Media Ltd. All Rights Reserved.

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Enabling the future of the automobile

Disclaimer

Connexion Media Limited (“Connexion”) is an ASX listed technology 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.

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© 2016 Connexion Media Ltd. All Rights Reserved.

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Enabling the future of the automobile
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Enabling the future of the automobile

Who we are & what we do

CONNEXION SUPPLIES SOFTWARE PRODUCTS AND SERVICES TO WEB-CONNECTED VEHICLES.

We currently offer products and services in four categories

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Telematics

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Infotainment

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Data analytics Consulting

Connexion Media is a technology company, listed on the Australian Stock Exchange, specialising in developing and commercialising software apps and services for the web connected car market. Our headquarters are in Melbourne, Australia, with sales offices in Detroit, USA and Cambridge, UK.

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© 2016 Connexion Media Ltd. All Rights Reserved.
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© 2016 Connexion Media Ltd. All Rights Reserved.

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Enabling the future of the automobile

Products and services

Our products and services are well positioned to take advantage of the future convergence of technologies.

Our Products	Telematics	Infotainment	Big data analytics*	Consulting*
			Cloud based infrastructure Customised Reporting Real time data Data enrichment	Consulting for commercialisation of products and services through our strategic partnerships.
	Customised solutions	Content partners	Technology partners	Innovation partnerships
	Innovation layer focused on IoT across all four categories

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• Coming soon

© 2016 Connexion Media Ltd. All Rights Reserved.

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Significant events in our corporate growth

Enabling the future of the automobile

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Successfully Connexion signs miRoamer Ford approves GM Commercial Connexion
lists on ASX agreement with launched in miRoamer app for Link demonstrated presents at Smart
Continental SEAT Leon SYNC platform at CES Cities Innovation
Summit
miRoamer Flex product WEX Australia GM Commercial
launched in Skoda launched at APAC Link launched
contract signed
Fabia vehicles across USA
29 6 4 11 1 5 28 7 4 22
Aug Oct Dec Mar Apr Aug Sep Jan Apr Sep
20 14 2015 2016
24 5 1 9 3 11 23 14 1 7 15 18
Sep Oct Dec Mar Mar May Jul Sep Feb Mar Apr Aug
miRoamer launches Volkswagen Connexion Napster content GM offers free trial
across Volkswagen demonstrates establishes USA agreement signed of Commercial Link
vehicles miRoamer at CES office, recruits
Junior Barrett
miRoamer Android Connexion signs Partnership with Connexion signs Connexion increases Oracle GM accelerates
app approved for content agreement PSA Peugeot major contract with Flex capacity to 1 partnership marketing of
MirrorLink Fast- with Deezer Citroen General Motors for million vehicles announced Commercial Link
track program Commercial Link
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© 2016 Connexion Media Ltd. All Rights Reserved.

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Enabling the future of the automobile

Company changing deal executed with General Motors

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Connexion has executed a milestone deal with General Motors (GM) to develop and support GM’s "Commercial Link" service.

GM to offer Commercial Link to new car buyers as an incentive to drive increased car sales.

Commercial Link is targeting the commercial SME fleet and ownerdriver markets with an addressable market of over 250 million cars in the USA alone.

The agreement provides Connexion with access to an extensive customer network for the rollout of its flagship technology. Available to new vehicle buyers and small fleet owners as a “Software as a Service” subscription.

Subscription based revenue model with customers being billed by Connexion monthly and revenues shared.

A soft roll out of Commercial link commenced as of April 2016.

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Wider roll out to commence in conjunction with the release of the new car models for the year.

© 2016 Connexion Media Ltd. All Rights Reserved.

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Enabling the future of the automobile

• GM has 23% market share of the USA

General Motors at a glance

Every vehicle manufactured in the USA after 2015 has built-in connectivity via the OnStar service.

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• fleet market.

• • Around 10 million vehicles manufactured globally per annum.

• • USA production of 3 million vehicles annually, around 1 million vehicles in Europe, 3.6 million vehicles in China.

• • 4,000+ dealers across the USA. • International brands include Opel, Vauxhall, Holden, Cadillac, Buick, and Chevrolet.

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© 2016 Connexion Media Ltd. All Rights Reserved.

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Enabling the future of the automobile

Consolidation in the sector has begun

The connected car services sector is currently one of the hottest areas in IoT for investment and M&A activity. The velocity and volume of interest in the sector is rapidly increasing, with a number of recent notable acquisitions.

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Fleetmatics (NASDAQ) Fleet telematics for after market Acquired by Verizon for * USD 2.4 Billion (August 2016) Telogis (VC Backed unlisted) Fleet telematics for after market Acquired by Verizon for undisclosed amount (June 2016) Pelagicore (VC Backed unlisted) SmartCar infotainment open source development business. Acquired by Luxsoft (NASDAQ) for *USD 25 Million (September 2016)

*Numbers have been rounded

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© 2016 Connexion Media Ltd. All Rights Reserved.

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Enabling the future of the automobile

FY2016 financial highlights

Connexion achieved significant revenue growth during the 2016 financial year.

Expenses grew incrementally, predominantly due to development and commercialisation costs, which have plateaued.

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© 2016 Connexion Media Ltd. All Rights Reserved.

Total revenue up 1157% to $1.295M from $0.103M.

Subscription and customisation revenue up 837% to $572k from $61k. Expenses up 32% to $8.156M from $6.202M, predominantly due to one-off research and development expenses to build enterprise-grade telematics system and increased sales and marketing expenses.

Sales and marketing expenses increased to further drive sales growth: - Marketing expenses up 211% to $265k from $85k - USA operations expenses of $529k from $0 - Exhibit and participation in trade shows across multiple continents

R&D refund up 232% to $2.397M from $0.722M (refund received October 2016).

Resources reduced 30% from 60 to 42, predominantly due to completion of one-off research and development activities and head-count rationalisation . Annualised expenses have reduced since telematics product launch and are expected to remain constant in FY2017.

Telematics services have been architected to handle in excess of 60,000 monthly subscribers without increase in annual core costs.

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Enabling the future of the automobile

Key Numbers (1,000s) – Financial years

	1H/15	2H/15	1H/16	2H/16
Sales	20	40	121	451
R&D Refund	0	0	722	0
Expenses	4,210	1,992	4,092	4,063
Loss Before Tax	4,190	1,910	3,250	3,610

Numbers have been rounded

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© 2016 Connexion Media Ltd. All Rights Reserved.

Sales

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$500,000
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273.7%
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$375,000
$250,000
198.8%
$125,000
97.9%
$ 0
1H/15 2H/15 1H/16 2H/16
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Sales increasing at a significant rate

• Expenses have plateaud in line with ‘go-live’ status of several product lines. Monthly expense ‘burn rate’ is now beginning to reduce.

• R&D expenses are becoming the largest component of overall expenditure and provide for significant grant income

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Developed and implemented operational framework and delivery . policies, processes and procedures

Enabling the future of the automobile

FY2016 operational update

Connexion now has a fully functioning operations framework , which is scalable for future product and revenue growth.

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Implemented Customer Support Centre solution across the range of products.

Established knowledge base repository, covering operational processes and procedures for Technology Development, Customer Delivery, Business . Support and Administration

Implemented global billing system to assist with customer subscription and revenue management.

Implemented industry standard methodologies including SCRUM software development and PRINCE2 project management.

Established a best practice program/project management governance framework to deliver core project initiatives. Completed a reorganisation of the business to focus on product development and commercialisation .

© 2016 Connexion Media Ltd. All Rights Reserved.

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Enabling the future of the automobile

Telematics key performance metrics

Many early key performance metrics collectively across all three telematics products are tracking ahead of expectations.

$15.29 pcm ($183.48 annualised) Average Revenue Per User (ARPU)

62% 82% Average subscription retention rate 2.35 108[] Peak total subscription sign-ups in 24hr period (Nov 2016)

Average Monthly Growth Rate (Month on Month)

Average number of subscriptions per customer account

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NOTE: Averages between Aug – Oct 2016 unless otherwise indicated

© 2016 Connexion Media Ltd. All Rights Reserved.

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Grow revenue and subscriber numbers.

Enabling the future of the automobile

Strategic outlook for FY2017 and beyond

The Company has clearly defined strategic objectives for FY2017 and beyond.

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Grow sales and marketing activities across our core strategic territories (ie. USA, Europe and Australia).

Focus on embedded solutions with automakers and OEMs.

: Sales strategy to focus on four key channels - Business to Business (B2B) - Business to Enterprise (B2E) - Automaker and OEM - Vendor channels (eg. Oracle)

Establish partnerships with companies to help commercialise innovation across established automaker and OEM channels. Position Connexion as a trusted global market innovator in connected car software services. Seek partnerships to establish an Innovation Centre in key strategic locations (eg. Melbourne).

© 2016 Connexion Media Ltd. All Rights Reserved.

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Enabling the future of the automobile

Transformational growth anticipated

With a solid foundation in place, and well-established commercial relationships with a number of major global automakers, Connexion is well placed to achieve transformational growth in the near term.

At least 1 new contract by December 2016, with at least 2 new contracts in CY2017 (automaker and/or territory expansion). Target 50,000 subscribers by CY2017, rising to 100,000 subscribers by CY2018.

Expand sales and marketing activities in Australia and Europe for Flex in CY2017.

Explore China expansion opportunities.

. Seek new business opportunities for consultancy services

Operational readiness for increased customers and revenues. Discussions underway with automakers for Connexion to add additional SaaS services in our product offering.

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© 2016 Connexion Media Ltd. All Rights Reserved.

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Enabling the future of the automobile

Summary

Connexion continues to meet its strategic objectives and consolidate its market position.

• Revenue generating technology business

• Continued growth of our product range with existing global partners

• Key performance metrics continue to grow month on month

• Explore new opportunities to drive revenue and subscriber growth

• Accelerated sales and marketing activities

• Operational readiness for scalable growth across multiple product categories and channels

• Successfully executing our strategic plan to build a profitable technology business

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Enabling the future of the automobile

Questions?

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© 2016 Connexion Media Ltd. All Rights Reserved.

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For more information, please go to: www.connexionltd.com www.miroamer.com www.flexvs.com enquiries@connexionltd.com