EML PAYMENTS LIMITED — AGM Information 2014

Nov 18, 2014

Annual General Meeting November 19, 2014

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1

Important Notice

emerchants refers to the Emerchants Group which contains Emerchants Limited and its wholly owned subsidiaries including Emerchants Payment Solutions Limited.

This document is confidential and is intended only for the use of the person(s) to whom it is presented. It may not be reproduced (in whole or in part) nor may its contents be divulged to any other person without the prior written consent of emerchants. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities. It is an outline of matters for discussion only. Any person receiving this document and wishing to effect a transaction discussed herein, must do so in accordance with applicable law. Any transaction implementing any proposal discussed in this document shall be exclusively upon the terms and subject to the conditions set out in the definitive transaction agreements.

You may not rely upon this document in evaluating the merits of participating in any transaction referred to herein. This document contains selected information and does not purport to be all-inclusive or to contain all of the information that may be relevant to your participation in any such transaction. This document does not constitute and should not be interpreted as either a recommendation or advice, including investment, financial, legal, tax or accounting advice. Any decision with respect to participation in any transaction described herein should be made based solely upon appropriate due diligence of each party.

We believe the information provided herein is reliable, as of the date hereof, but do not warrant its accuracy or completeness. In preparing these materials, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. Without limiting the generality of the foregoing, no audit or review has been undertaken by an independent third party of the financial assumptions, data, results, calculations and forecasts contained, presented or referred to in this document. You should conduct your own independent investigation and assessment as to the validity of the information contained in this document and the economic, financial, regulatory, legal, taxation, stamp duty and accounting implications of that information. Except as required by law, emerchants and its respective directors, officers, employees, agents and consultants make no representation or warranty as to the accuracy or completeness of the information contained in this document, and take no responsibility under any circumstances for any loss or damage suffered as a result of any omission, inadequacy, or inaccuracy in this document.

Nothing in this document contains a commitment from emerchants to issue securities, to provide debt, to arrange any facility, to invest in any way in any transaction described herein or is otherwise imposing any obligation on emerchants. emerchants does not guarantee the performance or return of capital from investments.

None of the Emerchants Group entities noted in this document are authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia).

2014 Emerchants Limited.

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Mission empowering | Your Money

To transform the commercial payment solutions landscape by inspiring companies and their customers to demand more control , more transparency and more flexibility over their money.

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Our Value Proposition

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4

New Re-Loadable Programs in Market

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5

New Re-Loadable Programs Launching in FY15

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FY14 – Major Achievements

• Building a presence in the gambling solutions vertical:

• Ladbrokes

• Sportsbet

• Bet Easy

• Well placed in negotiations with additional corporate bookmakers

• Broadening our sales pipeline

• Signing a landmark agreement with the Queensland Government:

• Long term agreement

• Establishes credibility to bid for additional State and Federal government opportunities

• Position the company to take advantage of economies of scale benefits:

• I.T infrastructure capacity upgrade project

• Internal controls and automation project

• Implementation of a new CRM system

• PCI accreditation

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Trading Update FY15 – Australia

• Existing Business:

• Previously advised flat guidance for non-reloadable versus FY14 but appear on track for 5% growth in FY15

• Reloadable metrics up 182% on Loads, 210% on Transactions and 104% on Stored Value versus PCP as at end Q1FY15

• Consumer Lending Vertical:

• Program with CCIG (Cash Converters Franchisee) in market October 2014

• Partnership with MoneyMe announced with launch in early 2015

• Retail loan distribution commencing Q4FY15

• Gambling Solutions Vertical:

• Ladbrokes EFTPOS and Visa programs in market March and September 2014 respectively

• BetStar and Bookmaker programs in market October 2014

• Sportsbet program launched in market November 18

• In discussions with other corporate bookmakers for launch 2H15

• Cash deposit functionality commencing Q4FY15

• Salary Packaging Vertical:

• No material contract wins to advise at this stage

• Queensland Government

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• Agency engagement process is underway with multiple government agencies

Sportsbet Launch Marketing

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Sportsbet Launch Marketing

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EML Enters Into Multi-Year Agreement with Bet365

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Emerchants is pleased to announce that it has entered into a multi-year agreement with Bet365 for the provision of its prepaid winnings card.

Bet365 is one of the largest Australian corporate bookmakers, with turnover estimated at $1.47bn per annum (Source: Morgan Stanly Research Asia-Pacific, “Australia / UK Wagering: Picking the winning trifecta)

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Key SFUK Customers

• Kleppierre (Spain, Portugal & Italy)

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• Devimo (Belgium)

• • Lend Lease Portfolio

• Land Securities Portfolio

• McArthur Glen Portfolio (6 Countries)

• Corio (Germany)

• • Gentalia (Spain)

• British Land Portfolio

• Regent Street

• Standard Life Portfolio

• BTWShiells Portfolio

• REALM Portfolio

• Pandora

• Etsy

• The Horticultural Trade Association

• • Liverpool Football Club

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Trading Update FY15 – UK and Europe

• Existing Business:

• Re-affirm CY15 guidance as per capital raise presentation:

  • Revenue: A$8.6m

  • EBITDA: A$2.7m

• Shopping Mall Vertical:

• Signed a multi-year agreement with an operator of 8 shopping malls, launching in early 2015 (malls in UK, Ireland, Germany, Belgium, Spain and Italy)

• Pilot program launched with a large shopping mall group in Germany

• Integration Update:

• Positive discussions with multiple E-money issuers willing to act as issuer of our re-loadable cards

• Positive assessment of the compatibility of our solution with the European regulatory framework

• Commenced technical integration discussions to support the launch of re-loadable products

• Commencing sales discussions with customers in key industry verticals

• Working to convert the LOI signed with 666bet.com (online sports betting and casino) into a binding agreement, supporting the launch of services in Q1FY16.

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Performance Metrics – FY15 Trading Update FY14 vs. FY13 and trading update to Q1FY15

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Millions Total dollars loaded onto prepaid platform ($m)
200
168.50m Non-reloadable
180
Reloadable
160
135.30m
140
120
100
80 62.80m
60
31.79m
40
20
-
FY13 FY14 Q1FY14 Q1FY15
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Q1FY14 vs. Q1FY15 Total Dollars Loaded: +98%

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Millions Total number of Active Accounts (m)
1.00
Non-reloadable
0.90
Reloadable
0.80
0.70
0.56m
0.60 0.52m 0.54m 0.52m
0.50
0.40
0.30
0.20
0.10
-
FY13 FY14 Q1FY14 Q1FY15
Sep 14 vs. Sep 15
Number of Active Accounts: +8%
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Performance Metrics – FY15 Trading Update FY14 vs. FY13 and trading update to Q1FY15

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Millions Key Transactions (m)
Millions Stored Value ($m)
45
Non-reloadable Non-reloadable
5.00
4.48m Reloadable 40 Reloadable
3.94m
4.00 35 31.00m
27.38m
30
3.00 25 20.86m 20.23m
20
2.00 1.52m
15
0.96m
10
1.00
5
- -
FY13 FY14 Q1FY14 Q1FY15 FY13 FY14 Q1FY14 Q1FY15
Q1FY14 vs. Q1FY15 Sep 14 vs. Sep 15
Transactions: +58% Stored Value: +53%
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Pro forma* Performance Metrics FY14 vs. FY13 and trading update to August 2014

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Total dollars loaded ($m)
300
253.36m
250
194.14m
200
150
100
69.15m
50 30.29m
0
FY13 FY14 Jul - Aug 13 Jul - Aug 14
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Total Dollars Loaded: +128%
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Total number of Active Accounts (m)
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1.20
1.09m 1.12m
1.02m
0.97m
1.00
0.80
0.60
0.40
0.20
0.00
FY13 FY14 Jul - Aug 13 Jul - Aug 14
Number of Active Accounts: +10%
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• The metrics above include the results of SFUK assuming they were part of the EML consolidated group for the entire period under review. Metrics in GBP have been converted to AUD at the closing exchange rates for each period.

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Pro forma* Performance Metrics FY14 vs. FY13 and trading update to August 2014

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Key Transactions (# m) Store Value ($m)
7.00 60
6.24m
50.66m
6.00 47.80m
50
4.78m
5.00 38.89m
40 35.85m
4.00
30
3.00
2.04m 20
2.00
1.03m
10
1.00
0.00 0
FY13 FY14 Jul - Aug 13 Jul - Aug 14 FY13 FY14 Jul - Aug 13 Jul - Aug 14
Total Transactions: +98% Total Stored Value: +30%
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• The metrics above include the results of SFUK assuming they were part of the EML consolidated group for the entire period under review. Metrics in GBP have been converted to AUD at the closing exchange rates for each period.

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FY15 Objectives – The “Vital Few”

• Close the Store Financial UK acquisition on December 1, 2014

• Significantly propels our revenue and earnings in FY16

• Commence integration work immediately to be in a position to launch re-loadable programs in 1HFY16

• Monetize the Queensland Government agreement

• We have re-established sales momentum and need to sign contracts with additional agencies

• Further establish our presence in the Gambling Solutions vertical

• Establish a presence in the Salary Packaging vertical

• Extend our value proposition through two product development initiatives slated for launch in late FY15

• Cash deposit functionality

• Retail distribution of consumer loans