FLEXIROAM LIMITED — Interim / Quarterly Report 2015

Feb 29, 2016

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CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2015 March 1, 2016

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Group Financial Summary
Half year Half year %
31 Dec 2015 31 Dec 2014 Change The increase in sale was
$ $ driven by increase in
corporate sale
Sales 5,978,323 2,175,204 175%
Cost of sales (6,084,986) (1,593,742) 282%
Increase was due to
Gross (loss)/profit (106,663) 581,462 -118%
dramatic increase in
-
Interest received 78,083 NA marketing expenditure to
acquire customers
-
Foreign exchange gains 737,597 NA
Other income 18,210 119,031 -85%
Administration and operating expenses (517,113) (153,197) 238%
-
Research and development (35,493) NA Marketing costs increased
substantially in 2015
Staff cost (446,675) (211,640) 111%
Depreciation and amortisation (1,056,731) (101,783) 938%
Finance expenses (3,580) (4,410) -19% Increase was due to
Impairment of available-for-sale asset (3,400) - NA amortisation of intellectual
property
(Loss)/profit before income tax (1,335,765) 229,463 -682%
Income tax expense - (432) NA
(Loss)/profit for the period (1,335,765) 229,031 -683%
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Revenue Performance

2015 2014 INCREASE/ AUD AUD (DECREASE)

PRODUCT

RETAIL SALES

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78,218
141,844
30,226
367
250,654
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120,090
427,847
32,555
-
580,492
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-35%
-67%
-7%
N/A
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Phasing out existing products to prepare migrating customers to Flexiroam APP and SIM Paste (Launching in 2016)

CORPORATE SALES

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Overseas Sim
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5,727,669
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259%
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TOTAL SALES
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5,978,323
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175%
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Cost of Sales Breakdown

Half year ended 31 Dec 2015

Half year ended 31 Dec 2014

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Commission due Development expenditure
Commission due Development expenditure
$16,049
$92,699
$18,388 $10,305
6% 1%
0.3% 0.2%
Material cost Network cost Material cost Network cost
$60,725 $267,899 $10,064 $1 6 3,355
1% 5% 0.6% 10%
Marketing Marketing
$5,727,669 $1,311,574
94% Marketing cost 82%
increased by
338%
year on year
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Cash Position

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Performance Highlights

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Increase in Sales
Sales increased by 175%
performance of
corresponding period.
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for the half year ended 31
strong
for the half year
for the half year
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Increase in Cost of Sales
December 2015.
Decrease in Profits
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as at 31
aggressive
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corresponding period.
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for
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intellectual property.
personnel expenses. The total
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increase in
workforce stood at 51
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Roadmap Moving forward

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buzz sim).
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Continue to
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to
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VOICE

DATA

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FLEXIROAM X (Sim Paste) FLEXIROAM App
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US$80 billion revenue from Global
in 2017,more than US$35
.
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New Revenue Stream - Data Roaming

US$ 35 Billion in 2017

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Data Voice
47% 49%
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Data
Roaming
A$ 18.9
billion
in 2019 [ 1,3]
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Representing
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Sources:
1 Flexiroam Research Data
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Growth Strategy for 2016

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Substantial growth
in market share
Subscribers
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of
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A$
7.27
million
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Launch
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FLEXIROAM X is a highly scalable new One-time application of Flexiroam X
product, with low barrier of entry and of considerably reduces the possibility of
high global demand, developed to customers switching to other new entrants,
streamline the Flexiroam product line hence assuring Flexiroam of optimum
life-time value from customers
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