FLEXIROAM LIMITED — Annual Report 2018

Jun 26, 2018

ANNUAL REPORT 2018 Investor Update June 2018 Consolidated Annual Financial Report for the Year ended 31 March 2018

DISCLAIMER

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FLEXIROAM 2018

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78% ↑ 240%↑ 46%↑
Subscribers Users Revenue
GROWTH
Growth from Year ended March 2017 to Year ended March 2018.
InterEX CogMoE
ESim
Data Exchange Smart decision
Embedded SIM
TECHNOLOGY Platform making system
INNOVATION PIPELINE
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GEOGRAPHICAL MAP OF SUBSCRIBERS
40 Countries Top Markets
41 Countries Malaysia
13 Countries
Singapore
Indonesia
United Arab Emirates
Taiwan
19 Countries
2 Countries Subscribers In
11 Countries 126
Countries & Territories
Flexiroam X was launched in June 2016
Subscriber: Number of subscribers who registered on the app.
Total Number of countries with subscribers: Only countries with 10 or more registered users are considered.
Data derived from 1st April 2016 to 31st March 2018
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SUBSCRIBER GROWTH VS USER GROWTH

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Year over Year Growth 78% Subscriber Growth Rate 240% User Growth Rate

Flexiroam X launched in June 2016. From April 2017 till March 2018, a surge in conversion from Subscribers to Unique Users is due to marketing efforts and introduction of low barrier of entry offering to incentivizes first-time customers.

Subscriber: Number of subscribers who registered on the app. Users: Number of accounts with “Activated” Microchip.

ACTIVELY USING CUSTOMER

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Year over Year Growth
196%
Actively Using Customer
Growth Rate
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Optimisation in customer targeting and widening of product offering resulted in increased active users. Frequent multi-destination travellers account for majority of customers who are actively using Flexiroam X services.

Actively Using Customer Per Annum: Unique customers who have used data within the year.

ACTIVELY USING CUSTOMERS BY MONTH

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Overall, a healthy growth in actively using customers over the 12 months from April 2017 till March 2018 as number of users continues to grow with strategic targeting of frequent travellers which have higher retention rates .

Actively Using Customers Per Month: Unique users who have used data within the month.

PAYING USERS AND TRANSACTIONS

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Year over Year Growth

155% Paying User Growth Rate

329% Transaction Growth Rate

2.15 Average Transactions per Paying User

Number of paying users increase rapidly as ongoing promotions to first time customers lower the cost of purchasing a plan. Number of transactions tripled as Flexiroam introduced local data plans along with ongoing promotions for global plans to existing users.

Transactions: Total number of unique purchases by customer per quarter Paying User: Total number of unique paying customer who has made one or more transactions per quarter. For the Year ended 31st March 2017, the data is derived from June 2016 when Flexiroam was launched till March 2017 as Flexiroam X.

REPEAT CUSTOMERS

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Year over Year Growth 192% Percentage of Repeat Customer Growth Rate

Despite growing its user base by 240%, the percentage of repeat customers continue to grow Year over Year almost doubling as Flexiroam introduces more data plans. Increase in repeat customers will see stronger recurring revenue with future purchases expected to grow in following years. Repeat Customers: Total Number of unique repeat customers (purchase at least 1 subsequent data plans) over total number of Flexiroam X users.

CONSUMER REVENUE VS CORPORATE REVENUE

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Flexiroam’s change in strategy from focus on corporate sales to consumer sales generated higher recurring revenues . Currently, over 71% of Flexiroam’s revenue is derived from consumer sales .

STRONG GROWTH IN RECURRING REVENUE

CONSUMER SALES REVENUE BREAKDOWN

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Over 77% of total consumer sales made in the year ended March 2018 are from repeat sales. The year over year growth of 97% in repeat sales proves that the marketing strategies and strategic customer targeting has been effective in generating higher recurring revenue and building a strong repeat customer base.

New purchases: First time purchases made by subscribers to become paying users. Repeat sales: Subsequent purchases made by users. Calculations derived from internal sources before audit.

INCREASING CASH RECEIVED

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Year over Year Growth
39%
Revenue Growth Rate
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Cash received has a year over year growth rate of 39% driven by increase in users and high recurring revenue from the consumer segment. In the year ended 31st March 2018, Flexiroam has received over AUD 3.3 million .

BREAKDOWN IN COSTS

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Year over Year Growth 109% Cost of Sales Growth Rate

The cost of sales has increased due to a higher network cost, increased in purchase of X-microchip to cope with demand and increased commission payout as a higher number of distribution was achieved by partners .

GLOBAL BRAND AWARENESS 2018 Partnerships formed from 1st April 2017 till 31st March 2018

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Airlines Physical Distributors Financial Institutions Airline Staff Unions Airline Pilots Association Scoot Airlines Telemart RHB Securities Singapore KLM Royal Dutch Scoot Tigerair Staff Bluwire UnionPay Airlines Union Korean Air

*Not all partnerships are listed above. For comprehensive list, please visit investor@flexiroam.com

GEOGRAPHIC LOCATIONS OF DISTRIBUTION PARTNERS

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13 Countries 243
16 Partners
Partners &
20 Countries
1 Countries Sub-Partners
192 Partners
15 Partners
From
45
3 Countries Countries
4 Partners
1 Countries
7 Countries
3 Partners
13 Partners
Data derived from 1st April 2017 - 31st March 2018
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PARTNERS DISTRIBUTION PROGRAM PERFORMANCE

Yearly Performance of Partner Distribution Program as of 31st March 2018.

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243 45
Partners & Countries with
Sub-Partners Partners
85,000 16,000
Microchips sold Microchips Activated
7,800
20,000*
Recurring Customers
Paying Transaction
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79%
Partners based in Asia
19%
Of Microchips sold
activated
2.5
Transactions per
recurring customer
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Partners 2.0 Program was launched in April 2017. Data derived from 1st April 2017 - 31st March 2018. Number are rounded off to the nearest thousand. *Numbers are rounded off to the nearest hundred

ONGOING STRATEGIES

STRATEGY

ACTION PLANS

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↑ User Base

Increase Subscriber to User conversion rate by incentivising new customers.

Launch of Flexiroam Xcite pack which offers frequent flyers such as aircrew and business travellers with a free 1GB data pack for 53 countries.

Lower barrier of entry through promotions for first-time customers. Data plans that allow users to purchase any data plans with starter pack.

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↑ Recurring Revenue

Targeting frequent Marketing campaigns flyers who generate specifically targeting higher value of frequent customers transactions & such as aircrew and recurring revenue . business travellers.

Attractive data plans and promotions for data top ups which encourages frequent purchasing.

FUTURE INNOVATIVE STRATEGIES

ESim

CogMoE

InterEx

DESCRIPTION

A system which does not require a physical SIM or microchip to access global data.

Intelligent system which can design personalized plans for customers.

A platform which allows users to buy and sell mobile data .

BENEFITS

• No logistic costs

• ● Inline with technological advancement .

Provide plans according to customers usage habits to encourage customer retention & recurring purchases .

Generate revenue for company through differences in exchange rates.

SUMMARY OF FINANCIAL YEAR 2018

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Increase in subscriber growth by 78% whilst users grow by 240% Year over Year, driven by stronger subscriber to user conversion rate.

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Over 13,000 monthly actively using customers connecting to Flexiroam, driving up data usage and revenue.

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An increase of 155% of paying users from 31st March 2017 to 31st March 2018, with an average of 2.15 transactions per paying user.

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By 31st March 2018, over 35% of Flexiroam users are repeat customers . Over 77% of consumer sales are from repeat sales, this proves that the strategy to focus on driving up repeat sales is effective in generating higher revenue as there is a continuous stream of revenue.

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Flexiroam continues developing innovative technologies such as ESim, CogmoE, and InterEx .

Jefrey Ong Managing Director

Jason Khoo VP, Business & Investor Development, Global +60 16 686-8965 jason@flexiroam.com

Flexiroam Limited ACN 143 777 397

PO Box 3438, Nedlands, Western Australia 6909

79 Broadway, Nedlands, Western Australia 6009 Australia +61281883919 Malaysia +60326318181 Singapore +6531577333

investor@flexiroam.com