FLEXIROAM LIMITED — Interim / Quarterly Report 2016

Oct 29, 2015

30 October 2015 Company Announcements Office ASX Limited

SEPTEMBER 2015 QUARTERLY ACTIVITIES REPORT

Highlights:

• The strategic partnerships with travel agencies in Malaysia and Singapore has ensured robust sales of $3.3 million in the September quarter

• Expanded network in Asia through collaboration with Knowlarity, leveraging cloud based offering in additional markets throughout Asia

• Secured access to key regions in India for expansion of new roaming technology, Roam8

• Flexiroam awarded funding by Malaysian Government to develop mobile application

• Cash of $7.8 million at the end of September

Flexiroam Limited (“the Company”) (ASX:FRX) is pleased to provide an update for the September quarter and announce that its wholly-owned subsidiary Flexiroam Sdn Bhd (“Flexiroam”) continued to make significant improvement in its operating results as it widened its network of strategic partnerships with travel agencies to jointly promote Flexiroam’s products and services.

For the quarter ended 30 September 2015, new travel agencies continued to sign up with Flexiroam to distribute products and services to their travellers, taking the total collaboration to 60 travel agencies. On the sales and marketing front, Flexiroam’s aggressive subscriber acquisition effort had resulted in 20% increase in subscriber base between August and October 2015.

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Increased spending on sales, marketing and promotion, have resulted in increases in sales generated and the strong cashflow has resulted in cash reserves remaining solid.

Knowlarity Collaboration Strengthens Offering

In terms of infrastructure, Flexiroam continued to expand its offering globally via a collaboration with Knowlarity, a leading provider of cloud communications in emerging markets. The agreement with Knowlarity has provided Flexiroam with network access to key regions in India, including Delhi, Mumbai and Bangalore, leveraging Knowlarity’s cloud-based infrastructure and virtual numbers under the terms of the agreement.

The agreement adds considerable value for customers and stakeholders, as it not only enables efficient access for Flexiroam to enter the Indian market but will also greatly increase the value proposition of Roam8 – Flexiroam’s new App.

Awarded Government Funding to Develop Mobile Technology

During the quarter ended 30 September 2015, Flexiroam received a letter of award for grant amounting to RM300,000.00 (~A$100,000) from the Malaysian Communications and Multimedia Commission under the Creative Industry Development Fund. The grant will be used to subsidise the R&D and precommercialisation marketing activities cost for Flexiroam Travel App and will enable local embassies and merchants to broadcast announcements upon a traveller’s arrival to certain countries.

“We are very pleased to be delivering in line with our strategy to expand in Asia-Pacific with a low cost international roaming service and we look forward to considerable opportunities to grow the company as we introduce new products” said Flexiroam’s CEO, Jef Ong.

Corporate

At the end of the September Quarter the Company had cash at bank of $7.8 million.

ENDS

About Flexiroam Sdn Bhd

Flexiroam is a Malaysian-based telecommunications company offering services internationally. Flexiroam provides a range of products allowing customers to remain connected abroad without attracting significant connection fees or tariffs.

Its core products include the FLEXIROAM Roaming Pass and the FLEXIROAM SIM cards, which allow travellers to use their local numbers with unrestricted voice and data access at their destination of choice. To date, over 300,000 people from all over the world have already benefited from combined savings totalling more than A$23 million.

For more information, please contact:

Ash Plaskett Professional Public Relations P +61 2 9818 0929 M +61 4 0135 6664 E ash.plaskett@ppr.com.au

Jef Ong Managing Director P +60 3 2054 0888 M +6016 328 9941 E jef@flexiroam.com

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10

Name of entity
Flexiroam Limited
ABN 27 143 777 397	Quarter ended (“current quarter”)
27 143 777 397	30 September 2015

Consolidated statement of cash flows

	Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for (a) staff costs (b) advertising and marketing (c) research and development (d) leased assets (e) other working capital 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other – government grant received Net operating cash flows	Current quarter $A’000	Year to date (3 months) $A’000
		1,241 (165) (147) - - - (1,573) - 34 (2) - 17	1,241 (165) (147) - - - (1,573) - 34 (2) - 17
		(595)	(595)

• See chapter 19 for defined terms.

Appendix 4C Page 1

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

	Current quarter $A’000	Year to date (3 months) $A’000
1.8 Net operating cash flows (carried forward)	(595)	(595)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.11 Loans repaid to other entities 1.12 Loans repaid by other entities 1.13 Other – convertible notes Net investing cash flows 1.14 Total operating and investing cash flows	- - - (29) - - - - - - (71) - 50	- - - (29) - - - - - - (71) - 50
	(50)	(50)
	(645)	(645)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 Dividends paid 1.20 Other Net financing cash flows	- - - - - -	- - - - - -
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments to item 1.20 1.23 Cash at end of quarter	(645) 8,624 (166)	(645) 8,624 (166)
	7,813	7,813

• See chapter 19 for defined terms.

Appendix 4C Page 2

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

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Current quarter
$A'000
1.24 Aggregate amount of payments to the parties included in item 1.2 205
1.25 Aggregate amount of loans to the parties included in item 1.11 -
1.26 Explanation necessary for an understanding of the transactions
1. Director fees and salary;
2. Accounting, company secretarial and office services;
3. Corporate advisory fees
4. Legal fees; and
5. Reimbursements.
Includes amounts paid to entities associated with the Directors’.
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Non-cash financing and investing activities

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2.1 Details of financing and investing transactions which have had a material effect on
consolidated assets and liabilities but did not involve cash flows
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• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

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Amount available Amount used
$A’000 $A’000
3.1 Loan facilities
- -
3.2 Credit standby arrangements
- -
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• See chapter 19 for defined terms.

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
4.1 Cash on hand and at bank 4.2 Deposits at call 4.3 Bank overdraft 4.4 Other (provide details)	7,813	8,624
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	7,813	8,624

Acquisitions and disposals of business entities

5.1 Name of entity 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets 5.5 Nature of business	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
	-	-
	-	-
	-	-
	-	-
	-	-

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: (Director)

Date: 30[th] October 2015

Print name: Jefrey Ong

• See chapter 19 for defined terms.

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report except for any additional disclosure requirements requested by AASB 107 that are not already itemised in this report.

3. Accounting Standards. ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

• See chapter 19 for defined terms.

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