FLEXIROAM LIMITED — Interim / Quarterly Report 2017

Jan 24, 2018

3Q17 - Quarter ended 31st December 2017

Disclaimer

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Flexiroam X Subscriber & User Growth

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Cumulative Subscribers and Users per quarter
↑ 14%
Subscriber
↑ 36%
Growth Compounded
User Growth
Quarterly
Growth Rate
16% ↑
Subscriber
Growth
32% ↑
User Growth
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Subscriber: Number of subscribers who registered on the app. Users: Number of accounts with “Activated” Microchip.

Improving Subscriber to User Conversion Rate

Subscribers to Users Conversion Rates

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By 3Q17, 31% of all subscribers converted to users, with a growth rate of 5% from the previous quarter.

Subscriber User Conversion Rate: Number of cumulative subscribers over number of cumulative users.

Growth in Quarterly Active Users

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Unique Active Users Per Quarters
↑ 21%
Active User
Growth Rate
Compounded
Quarterly
Growth Rate
21%
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Unique Active Users Per Quarters

Active Users Per Quarter: Unique users who has used data within the quarter.

Increasing Transactions

Transactions and Paying Users Per Quarter

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Growth Rate from
2Q17 to 3Q17
62% ↑
Transactions
68% ↑
Paying Users
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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.

Increasing Recurring Customer

Repeat Customers (%)

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Compounded
Quarterly
Growth Rate
30%
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It is a positive sign that the number of repeat customers is growing at the compounded quarterly growth rate of 30%. Increase in repeat customers will generate strong recurring revenue.

Repeat Customers: Total Number of unique repeat customers (purchase at least 1 subsequent data plans) over total number of Flexiroam X users.

Number of Distribution Partners

Flexiroam X distribution partners & subpartners from April till December 2017

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Distribution Partners
↑ 43%
Distribution
Partners
Compounded
Quarterly Growth
Rate for Number
of Partners
33%
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Distribution Partners: Distributors under Flexiroam’s Partner 2.0 program who distribute Flexiroam X globally. Number of Countries with Partners: Unique number of countries with distribution partners.

Distribution Strategy Progress Distribution Strategy Progress

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Total as of Total as of Total as of
1Q17 2Q17 3Q17
FLEXIROAM X
DELIVERED TO 22,313 42,162 59,882
PARTNERS
6% 12% 16%
Activation Activation Activation
Rate Rate Rate
FLEXIROAM X
USERS DERIVED ACTIVATED BY 1,242 5,064 9,665
FROM PARTNERS
57% 44% 51%
Recurring Recurring Recurring
Customer Customer Customer
REPEAT
DERIVED FROM CUSTOMERS 713 2,247 4,914
PARTNERS
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The partnership program as of December 2017 has delivered 59,882 packs to Partners with 16% activation rate. Over 50% of the packs activated by partners became repeat customers who have made a subsequent purchase.

Recurring Revenue from Partners’ Distribution

Value of Transactions from Recurring Customers derived from Partners Distribution efforts Per Quarter

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Average Spending
$69 $90 $109
Per Customer
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Recurring Customers: Number of customers derived from distribution partners who has made a subsequent purchase of data plans within the Quarter. Value of Transactions: The total value of all transactions performed by recurring customers derived from the distributions within the Quarter Average Spending Per Customer: The total value of transactions from the partners program over the number of recurring customers within the Quarter.

Receipts Per Quarter

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↑ 70%
Growth in
Receipts
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The receipts surged in 3Q17 with a quarterly growth of 70% to reach AUD 1,252,000 due to increase in revenue from ongoing marketing campaigns such as the Singles Day sales , Black Friday and Cyber Monday .

Net Cash in Operating Activities

↓25% Net cash outflows in Operating activities

The increase in payment for operating expenses was offset by an increase in receipts from customers. As a result, net cash outflow improved by 25% compared to previous quarter.

Upcoming Innovations: Cognitive Mobile Operator Engine (CogMoE)

Developing a centralized smart decision-making system that cognitively manages components of Flexiroam backend processes which goes as far as designing uniquely personalized data plans according to customers usage behaviour.

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Social Media
Mobile Application
Management Platform
Customer Reach User Behavior
Optimization Analysis
Data Demand Supply
Generate Personalized
Management
Data Plans
CogMoE Mobile Network
Backend System
Partners
Exchange transaction
information Inventory and Distribution
Management
Distribution Partner
Accounting Software
Portal
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Cognitive Decision Making Assistance via CogMoE

Flexiroam database of information to support decision-making process:

20 months Worth of Flexiroam X usage record

31,200 Unique active users

66,000 Gigabyte Of Data Utilized

Data Usage in 134 Destinations Countries

*Data since the launch of Flexiroam X in June 2016

Value derived from automated cognitive decision-making:

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Personalized data
packages
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Based on insights of travel
patterns and usage
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Variable Cost Data
Plans
Based on analysis of
spending patterns
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Automated promotions
Based on predictions of
travel patterns
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Predictive Analysis of Data Demands Based on data consumption patterns

Customer loyalty through personalized experience

Maximize sales opportunity to all customer segments

Improve efficiency in marketing

Increases Corporate Margins

Benefits of developing Cognitive Technology

Existing benefits of cognitive technology according to businesses and market research

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Increase Revenue Improve Customer Promote Brand Create Recurring
Conversion Loyalty Purchases
29% Increase in 35% of Consumer 83% of 44% of customers
Sales1 purchase Customers3 likely to repeat
purchase4
By incorporating Are from Product Expect brands
Recommendation recommendations based to Personalise After a personalized
engines on algorithms Experience according shopping experience
to real time marketing according to survey by
report customer data platform
1. http://rejoiner.com/resources/amazon-recommendations-secret-selling-online/
2. https://www.mckinsey.com/industries/retail/our-insights/how-retailers-can-keep-up-with-consumers
3. http://internetretailing.net/2016/06/retailers-risk-alienating-customers-83-expect-personalised-experience/
4. http://www.marketwired.com/press-release/segment-survey-finds-consumers-will-spend-more-when-their-shopping-experience-is-personalized-2238385.htm
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Summary of 3Q17 performance

The number of subscribers has grown by 14% and number of users grew by 36% compared to the previous quarter. The conversion rate between subscribers and users is at 31% .

There were 17,517 unique active users during the 3 month period. The compounded growth rate in unique active users is 21% per quarter.

There were 15,822 transactions from 11,054 paying users making an average of 1.43 transactions per paying user.

As of December 2017, 59,882 packs were delivered to 187 partners . Over 50% of activated users derived from partnership program have become repeat customers .

The partners program has generated $290,933 from transactions with an average spending of $109 per recurring customer in 3Q17 alone.

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