FLEXIROAM LIMITED — Interim / Quarterly Report 2020

Oct 30, 2019

31 OCTOBER 2019

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Key Performance

• Cash receipts grew by 14% in Q2 FY 2020 compared to Q2 FY 2019. Total cash sales receipts in Q2 FY 2020 is A$ 2,25 million (Q2 FY 2019: A$ 1,98 million)

• Second quarter FY2020 revenue grew by +152% to A$ 2,93 million compared to the same period last year (Q2 FY2019: A$ 1,16 million).

• Subscribers continued to grow, increasing by 170% from the previous corresponding period.

Continued Growth in Cash Receipts

The Group delivered quarterly cash receipts of A$ 2.25m, an increase of 13% compared to Q1 FY2020 and an increase of 14% compared to the same period last year. Cash payments also increased by 12% compared to the previous quarter, mainly due to: (1) payment to mobile network providers due to higher data utilisation from customers, and (2) purchases of new inventories for business growth. The Group has proven that its strategies to invest in future growth have delivered expected revenue growth in this period.

The Group anticipates the usage growth and consequent cash receipts will continue. During Q2 FY2020, the Group continued to pursue its cost optimisation efforts, ensuring available resources are managed efficiently whilst continuing to plan for global market growth.

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CASH RECEIPTS (In A$’000s)
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Significant Subscribers Growth

NEW SUBSCRIBERS

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Flexiroam’s strategy to accelerate customer acquisition growth through the implementation of collaborative partnerships, and an increase in direct marketing activities has yielded positive results in acquiring new subscribers in 1H of FY2020. During this half-year, coverage was also extended to international travellers of major airlines and all these efforts have resulted in more than 116,000 new subscribers coming onboard which is a 170% increase from the previous corresponding halfyear. The current partnerships with airlines and travel insurance providers provide Flexiroam with access to ‘primed’ customers from a pool of 35 million travellers.

Continued focus on this customer acquisition strategy, along with public relations activities to raise awareness levels of the Group’s products and services in Australia is expected to deliver sustained growth in subscribers over the coming months.

Revenue grew by 152%

The Group delivered a strong performance underpinned by solid revenue growth in the second quarter FY 2020 by 152% compared to the same period last year. The Group generated A$ 2.93 million in revenue (Q2 of FY 2019: A$ 1.16 million).

REVENUE (In A$’000s)

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ABOUT FLEXIROAM LIMITED

FLEXIROAM (ASX: FRX) FLEXIROAM (ASX: FRX) is a global connectivity provider offering data access to travellers across the world. Its service coverage spans across 150 countries with its access to over 580 network operators globally. Flexiroam is affiliated with over 100 travel industry partners including major international airlines to serve customers from over 190 countries and territories.

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

Flexiroam Limited ABN Quarter ended (“current quarter”) 27 143 777 397 30 September 2019

Consolidated statement of cash flows	Consolidated statement of cash flows		Year to date
		Current quarter	(6 months)
		$A’000	$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	2,257	4,260
1.2	Payments for
	(a) research and development	(107)	(202)
	(b) product manufacturing and operating costs	(1,154)	(2,098)
	(c) advertising and marketing	(1,066)	(1,988)
	(d) leased assets	-	-
	(e) staff costs	(224)	(407)
	(f) administration and corporate costs	(149)	(418)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	1
1.5	Interest and other costs of finance paid	(112)	(211)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating activities	(555)	(1,063)
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	(6)	(11)
	(b) businesses (see item 10)	-	-
	(c) investments	-	-
	(d) intellectual property	-	-
	(e) other non-current assets	-	-

• See chapter 19 for defined terms

1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows		Year to date
		Current quarter	(6 months)
		$A’000	$A’000
2.2	Proceeds from disposal of:
	(a) property, plant and equipment	-	-
	(b) businesses (see item 10)	-	-
	(c) investments	-	-
	(d) intellectual property	-	-
	(e) other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing activities	(6)	(11)
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	775
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues of shares,
	convertible notes or options	-	-
3.5	Proceeds from borrowings	40	40
3.6	Repayment of borrowings	(4)	(8)
3.7	Transaction costs related to loans and
	borrowings	-	-
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing activities	36	807
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	quarter/year to date	787	528
4.2	Net cash from / (used in) operating activities (item 1.9 above)	(555)	(1,063)
4.3	Net cash from / (used in) investing activities (item 2.6 above)	(6)	(11)
4.4	Net cash from / (used in) financing activities (item 3.10 above)	36	807
4.5	Effect of movement in exchange rates on cash held	6	7
4.6	Cash and cash equivalents at end of quarter	268	268

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	268	787
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of quarter (should equal item 4.6 above)	268	787

6.	Payments to directors of the entity and their associates	Current quarter
		$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2	105
6.2	Aggregate amount of cash flow from loans to these parties included
	in item 2.3	-
6.3	Include below any explanation necessary to understand the transactions	included in
	items 6.1 and 6.2

Director fees, consultancy fees, and salaries

7. Payments to related entities of the entity and their Current quarter associates $A'000

7.1 Aggregate amount of payments to these parties included in item 1.2 - 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 -

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities	-	-
8.2	Credit standby arrangements	-	-
8.3	Other (please specify)	-	-

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

9.	Estimated cash outflows for next quarter	$A’000
9.1	Research and development		(111)
9.2	Product manufacturing and operating costs		(1,175)
9.3	Advertising and marketing		(1,162)
9.4	Leased assets		-
9.5	Staff costs		(229)
9.6	Administration and corporate costs		(212)
9.7	Other (provide details if material)		-
9.8	Total estimated cash outflows		(2,889)

10.	Acquisitions and disposals of	Acquisitions		Disposals
	business entities
	(items 2.1(b) and 2.2(b) above)
10.1	Name of entity		-		-
10.2	Place of incorporation or registration		-		-
10.3	Consideration for acquisition or disposal		-		-
10.4	Total net assets		-		-
10.5	Nature of business		-		-

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

This statement gives a true and fair view of the matters disclosed.

Sign here: ............................................................ (Director/Company secretary)

31 October 2019 Date: .............................................

Print name: ......................................................... Jefrey Ong

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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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