FLEXIROAM LIMITED — Interim / Quarterly Report 2016

Jul 24, 2016

25 July 2016

Company Announcements Office ASX Limited

FLEXIROAM RESPONDS TO THE INCREASING NEEDS FOR DATA WITH THE LAUNCH OF ITS NEW INNOVATIVE FLEXIROAM X, A PRODUCT WHICH KEEPS TRAVELLERS ONLINE AT AFFORDABLE RATES.

Key Performance Highlights

• Flexiroam Limited (“the Company”) is pleased to announce that its overall subscriber base has shown a steady increase to 822,584 subscribers as at 30 June 2016.

• Sales revenues showed promising increases in the June 2016 quarter evidencing traction gained from the launch campaign of FLEXIROAM X.

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Sales receipts Advertising and marketing Research and development	CURRENT PERIOD PREVIOUS PERIOD % 30 JUNE 2016 31 MARCH 2016 INCREASE
	$A '000 $A '000 862 91 845% 987 204 384% 279 71 293%

Advertising & Marketing

• During the quarter ended 30 June 2016, the Company’s focus was on rolling out FLEXIROAM X.

• In a generally more competitive data market environment, the Company spent A$987,249 in the current period on advertising and promotion to attract new subscribers with the launch of FLEXIROAM X, to capture data roaming market share.

• Promotion Codes which allow subscribers to collect up to 100GB free data were distributed in large quantities to facilitate the Company’s aggressive customer acquisition strategy.

• Strategic partnerships were forged with travel related entities to increase the Company’s subscriber base and expand its geographical reach, by providing free Promotion Codes to partners’ customers.

• The X Agent Campaign is the Company’s latest partnership platform which recruits freelancers to promote and distribute FLEXIROAM X.

• X Agents’ sales contributed over 40% to total sales and user conversions of FLEXIROAM X.

• The Company launched its digital marketing campaign to reach out to over 10 million prospective subscribers and this includes social media video advertisement, digital remarketing, travel media advertising & sponsorships.

Research & Development

• The Company continued its commitment to research and development by increasing its spending in this endeavour by 293% in the current quarter compared to the previous quarter, an effort that led to the launch of FLEXIROAM X.

• Within a month after its launch, the Company recorded the following results for FLEXIROAM X:

• Over 10% of registered users have converted to paying customers;

• facilitated more than 30,000 GB of internet data;

• 98% of subscribers opted for yearly renewal; and

• Australia recorded the highest conversion rate from free to paid subscribers with 40% of the app users signed up for the yearly membership.

Cash Position

• The Company ended the June 2016 quarter with cash reserves of A$5.8 Million.

• The Company will continue to invest in marketing campaigns and research and development on FLEXIROAM X with a view to increasing revenues in a market with an expected high demand for roaming data.

ENDS

ABOUT FLEXIROAM LIMITED

Flexiroam Limited (ASX:FRX) is a new breed telecommunications company that enables travellers to bypass roaming charges around the world. The Company unveiled its flagship data roaming product, FLEXIROAM X which allows users to earn up to 100GB data to be used in 100 countries with plans which last up to 1 year. Flexiroam Limited is an asset light telecommunication company which does not own telecommunication infrastructure yet is able to connect to 580 network operations around the globe enabling its services to have access in over 200 countries and territories.

Flexiroam Limited has saved millions in roaming charges for it’s over 800,000 subscribers through its products which has radically changed the way people connect all over the world. Its partnership with hundreds of travel industry partners including airlines across the Asia Pacific region, has enabled it to establish footholds in the region. The Company was listed on the Australian Securities Exchange (“ASX”) in June 2015 under the code FRX, and is today one of the fastest growing global virtual mobile operator in Asia Pacific.

For more information, please contact:

Flexiroam Limited

Jefrey Ong Managing Director T: +603-20540888 E: investor@flexiroam.com

Investor Relations

Jason Khoo Vice President, Global Business Development T: +61-2-81034843

E: jason@flexiroam.com W : investor.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 June 2016

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
		862 (213) (987) (279) - (297) - 36 (4) - -	862 (213) (987) (279) - (297) - 36 (4) - -
		(882)	(882)

• 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)	(882)	(882)
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 – cash acquired from the acquisition of subsidiary Net investing cash flows 1.14 Total operating and investing cash flows	- - - (7) - - - - - - - (13) 10	- - - (7) - - - - - - - (13) 10
	(10)	(10)
	(892)	(892)
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	- - - (3) - -	- - - (3) - -
	(3)	(3)
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 ofquarter	(895) 6,709 29	(895) 6,709 29
	5,843	5,843

• 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

entities
1.24 Aggregate amount of payments to the parties included in item 1.2 1.25 Aggregate amount of loans to the parties included in item 1.11	Current quarter $A'000
	120
	-

• 1.26 Explanation necessary for an understanding of the transactions

• Director fees and salary; and

• Accounting, company secretarial and office services;

Includes amounts paid to entities associated with the Directors.

Non-cash financing and investing activities

• 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

• 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.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

• 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)	5,843	6,709
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	5,843	6,709

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.

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Sign here: (Director)

Date: 25 July 2016

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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