GRATIFII LIMITED — Interim / Quarterly Report 2018

Apr 29, 2018

ASX ANNOUNCEMENT

30 April 2018

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Quarterly Review for period ended 31 March 2018

• Initial revenues commence under the first phase of multiphase agreement with Vodacom, following the launch of commercialised white-labelled mobile app

• Commencement of initial revenues on schedule for the end of April 2018 under recently signed exclusive technology agreement with the Spur Corporation

• airBux positioned for a CY 2018 launch, with strategic partner discussions advancing with parties in Australia, Singapore and South Africa

Mobecom Limited (ASX: MBM) (Mobecom or the Group) is pleased to provide an update of its trading activities for the quarter ended 31 March 2018 and its Appendix 4C.

Operational Highlights

Vodacom white-labelled application launches, securing initial revenues in March

Under the first phase of a multiphase contract, Vodacom’s white-labelled app launched on 28 February, following its successful implementation by Mobecom. Customers of Vodacom’s loyalty program SwitchedONBenefits are now able to access deals and vouchers directly from the app, which is built on airBux technology.

SwitchedONBenefits currently provides benefits to approximately 2 million members, who subscribe to the loyalty program to receive exclusive deals and vouchers for use at a variety of leading merchants in Africa.

Under its agreement with Vodacom, Mobecom earns licence fees based on the number of active SwitchedONBenefits members who have subscribed to the app. Revenues under the agreement commenced in March 2018, and the full impact of this revenue stream will be better reflected in the next quarter’s results.

Mobecom is currently in advanced discussions with Vodacom to deliver the project’s next phase, which will add transactional capability to the existing mobile service and an additional revenue stream for Mobecom under the agreement.

Commencement of Spur Corporation revenues on schedule for April 2018

Mobecom is in the final stages of implementing its white-labelled mobile app with loyalty and ordering capabilities for one of Spur Corporation’s brand of restaurant franchises, RocoMamas. The app is the first of a number of apps to be delivered to the Spur Corporation under the Master Services Agreement, announced on 30 November 2017. Mobecom is the exclusive provider of customer loyalty technology solutions for all of Spur Corporation’s franchises. The app’s launch and commencement of revenues remain on schedule for the end of April 2018.

Development of Spur Corporation’s remaining franchise brand apps is on-going and are expected to be delivered by 30 June 2018.

airBux launch remains on schedule for 2018

During the quarter, Mobecom executed agreements with Doshii and EOH expanding airBux’s anticipated potential distribution network to over 150,000 payment terminals and 50,000 merchants at launch.

The global legal structure for airBux, being a number of special purpose vehicles ( SPVs ) has now been established, with management actively engaged in multiple discussions to secure strategic partners in Australia, Singapore and South Africa in preparation for a CY 2018 launch. For more information, please refer to Mobecom’s announcement to the ASX on 30 January 2018.

Capital raise

In December 2017, the Company raised $1.2 million (before costs) via a private share placement ( Placement ) to sophisticated investors of which $1.143M was received in the December 2017 quarter and $57K was received in January 2018. For more information, please refer to Mobecom’s announcement to the ASX on 28 December 2017.

Financial Overview

At 31 March 2018, the Group had cash totalling $0.8M which reflects a decrease in cash of $1M since the beginning of the quarter. Cash receipts from trading during the quarter were $600K. Furthermore, the company anticipates the immediate settlement of debtors outstanding at the end of the March 2018 quarter amounting to $641K plus anticipated sales to customers of $226K and recurring sales amounting to $362K in the next quarter totalling $1.2M to add to the cash on hand.

Mobecom continues to closely monitor its cash flows from operating activities. The net cash outflow from operating activities for the March 2018 Quarter was $1M – this represents a significant reduction in the negative cash flow from operating activities by approximately $2.1M (including the effect of the cash inflow from the Research and Development Tax Incentive Rebate), when compared to the negative cash outflow from operating activities of $3.1M reported in the previous quarter.

Corporate Overview

During the quarter, the Board reviewed the Group’s corporate structure to identify dormant controlled entities with no assets and/or liabilities with a view to winding up these entities. As a result:

• Mobecom continued with the process of winding up Waratah Gabon SA as reported in the previous quarter;

• LifeIQ Singapore has been identified as a dormant company (with no assets or liabilities) and it is now in the process of being deregistered with the Singapore Corporate authorities; and

• The name of Waratah Commodities Pty Ltd, a dormant entity in the Group, has been changed to airBux Australia Pty Ltd.

Outlook

Mobecom continues to focus on securing strategic partners for its airBux SPVs, ahead of a proposed launch in later 2018. Mobecom continues to progress commercial discussions with a number of parties.

Mobecom expects additional revenue inflow from recently signed customers. This additional revenue will be better reflected in Mobecom’s next quarter results as the relevant contracts continue to mature.

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Mobecom remains focussed on finalising the implementation of its white-labelled mobile apps for Spur Corporation’s remaining franchise brands, and, is on schedule to launch its first app for RocoMamas by the end of April. Revenue from the agreement with Spur Corporation is expected to commence by the end of April 2018.

Ends.

For further information, contact:

Media Enquiries Imogen Conyers Media and Capital Partners M: +61 405 191 257 E: imogen.conyers@mcpartners.com.au

Neil Joseph Chief Executive Officer Mobecom Ltd M: +61 2 9922 6988 E: neil.joseph@mobecom.co

About Mobecom Limited

Mobecom Limited (ASX:MBM) is a full-stack customer engagement technology provider that delivers end-to-end technology solutions for businesses to engage with their customers. Its primary offering, airBux, is a digital currency platform that provides ‘liquidity for loyalty’ and is Mobecom’s direct to consumer mobile application offering, with a cloud-based currency at its core. With mobile payment, ordering, booking and local offer capability; the airBux cryptocurrency will be the gateway to a new digital lifestyle rewards program.

Mobecom’s existing B2B offering provides its blue-chip customers based in Australia, Singapore, South Africa, the UK and Europe with technology solutions, built on its airBux proprietary technology, to deliver a complete end-to-end set of customer engagement technology requirements, including both back-end (databases) and front-end technology (design, mobile applications and websites).

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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

Name of entity	Name of entity
Mobecom Limited
ABN 47 125 688 940	Quarter ended (“current quarter”)
47 125 688 940	31 March 2018

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 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	600 - (137) (7) (3) (966) (1,246) - 1 (87) - 825 -	1,184 - (243) (39) (3) (2,545) (3,145) - 1 (103) - 825 -
	(1,020)	(4,068)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments	- - -	(30) - -

• 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	Current quarter $A’000	Year to date (9 months) $A’000
(d) intellectual property (e) other non-current assets (security deposits) 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 Cash and cash equivalents acquired on acquisition of Mobecom Limited 2.6 Net cash from / (used in) investing activities	- 11 - - - - - - - -	- 30 - - - - - - - 5,147
	11	5,147
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 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 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other 3.10 Net cash from / (used in) financing activities	57 - - (71) - (28) - - -	1,200 - - (71) 50 (1,125) (355) - -
	(42)	(301)
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 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	1,862 (1,020) 11 (42)	33 (4,068) 5,147 (301)

• 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	Current quarter $A’000	Year to date (9 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	-	-
	811	811
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (Cash held in Share Offer Trust Account) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)*	811 - - -	719 - - 1,143
	811	1,862

*Note 5.5: In addition, the company anticipates the immediate settlement of debtors outstanding at the end of the March 2018 quarter amounting to $641K plus anticipated sales to customers of $226K and recurring sales amounting to $362K in the next quarter totalling $1.2M to add to the cash on hand.

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	172
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

Total aggregate amount of payments reported in item 6.1 include payments to executive and nonexecutive directors of Mobecom Limited which are comprised of salary, fees and superannuation.

• 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

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	Nil
7.2	Aggregate amount of cash flow from loans to these parties included	Nil
	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 Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities Nil Nil 8.2 Credit standby arrangements Nil Nil 8.3 Other (please specify) Nil Nil 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.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		Nil	Nil
		Nil	Nil
		Nil	Nil

9. Estimated cash outflows for next quarter	$A’000
9.1 Research and development 9.2 Product manufacturing and operating costs 9.3 Advertising and marketing 9.4 Leased assets 9.5 Staff costs 9.6 Administration and corporate costs 9.7 Other (provide details if material) 9.8 Total estimated cash outflows*	- 131 8 3 934 761 -
	1,837

Note 9: It is anticipated that these expected cash outflows will be largely funded by way of debtors receipts of $641K plus anticipated sales to customers of $226K and recurring sales amounting to $362K, totalling $$1.2M. In the event, that receipts from debtors are delayed or sales are lower than anticipated, the Company is able to defer certain budgeted expenditures accordingly.

• 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

10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)	Acquisitions	Disposals
10.1 Name of entity	Not Applicable	Not Applicable
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.

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

Sign here: ............................................................ Date: 30 April 2018 Company secretary

Print name: Anne Adaley

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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