JCURVE SOLUTIONS LTD — AGM Information 2014

Nov 26, 2014

==> picture [188 x 62] intentionally omitted <==

==> picture [555 x 157] intentionally omitted <==

==> picture [155 x 131] intentionally omitted <==

==> picture [155 x 27] intentionally omitted <==

AGM Presentation November 27 2014

Disclaimer

Some of the statements in this presentation constitute forward looking statements. By their nature forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements herein. These risks, uncertainties or assumptions could adversely affect the outcome and financial effects of the plans and events described herein.

Forward looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue into the future.

This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied upon in connection with any contract or commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the shares in the Company

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Graham Baillie Chairman's Address

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

==> picture [155 x 156] intentionally omitted <==

Mark Thompson CEO Presentation

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Capital Structure

	ASX: As @ date 26/11/2014 or last set of accounts Share Price $0.020 Shares On issue (million) 327.9 Performance Options (million) 35.7 Market Cap ($million) $6.6 52 Week High / Low $0.074 / $0.015

Capital Structure

	Top 5 Shareholders (As @ 31/10/2014) Graham Baillie 83,124,215 Mark Jobling 35,600,000 John Bond 31,198,481 TT Nicholls PTY LTD (Super Ac.) 6,667,012 Tony Simmons 6,380,943 25.4% 10.9% 2.0% 9.5% 1.9%

Capital Structure

($million) 2014 2013 "% Increase YOY" Revenue (Continuing Operations) $11.6 $10.1 13% EBITDA -$1.2 -$1.5 18% NPAT (Continuing Operations) -$1.4 -$2.5 44%	($million) 2014 2013 "% Increase YOY" Revenue (Continuing Operations) $11.6 $10.1 13% EBITDA -$1.2 -$1.5 18% NPAT (Continuing Operations) -$1.4 -$2.5 44%	($million) 2014 2013 "% Increase YOY" Revenue (Continuing Operations) $11.6 $10.1 13% EBITDA -$1.2 -$1.5 18% NPAT (Continuing Operations) -$1.4 -$2.5 44%
EBITDA	-$1.2	-$1.5
NPAT (Continuing Operations)	-$1.4	-$2.5

==> picture [710 x 179] intentionally omitted <==

2013/14 Corporate Overview

==> picture [453 x 25] intentionally omitted <==

----- Start of picture text -----

Highlights
----- End of picture text -----

• Revenue of $11.6 million (up 13% on prior corresponding period)

• Two major acquisitions; JCurve Solutions Pty Ltd on 31 October 2013 and The Full Circle Group on 17 June 2014

• Cash position of $2.8 million as at 30 June 2014

• Underlying breakeven financial performance (excluding one off acquisition and impairment costs)

• Increased R&D investment in software and technology platform to $1.8m Opex

• Re-branding of Stratatel Limited to JCurve Solutions Ltd

• Management and business unit restructure to align with new organisation post acquisition

• Successful secondary market equity raise

• Reported EBITDA from ordinary operations for the period were a loss of $1.2m and NPAT a loss of $1.4m

==> picture [96 x 33] intentionally omitted <==

Financial Performance

Results Announcement to the Markets

==> picture [691 x 212] intentionally omitted <==

----- Start of picture text -----

Percentage increase /
Year end @ Year end @ Revenue $m
(decrease) over previous
30/06/14 $ 30/06/13 $
corresponding period
Revenue from 2.3m JCurve
continuing 11,637,193 10,139,950 13% increase
operations
4.9m JTel
Earnings before
interest, taxation,
3.0m JConnects
depreciation & -1,211523 -1,476,986 18% decrease
amortisation
(EBITDA)
1.4m SA JV
Net loss after tax
(from continuing -1,424,796 -2,536,533 44% decrease Jtel SA JV JConnects JCurve
operations only)
----- End of picture text -----

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

2013/14 Operating Highlights & Challenges

==> picture [332 x 25] intentionally omitted <==

----- Start of picture text -----

JCurve Highlights
----- End of picture text -----

==> picture [333 x 25] intentionally omitted <==

----- Start of picture text -----

JCurve Challenges
----- End of picture text -----

• New revenue contribution $2.3m

• Accounting only software market very competitive

• 139 new customers added since acquisition

• High SME business closure rate

• High potential for revenue growth

==> picture [332 x 25] intentionally omitted <==

----- Start of picture text -----

JTel Highlights
----- End of picture text -----

==> picture [333 x 25] intentionally omitted <==

----- Start of picture text -----

JTel Challenges
----- End of picture text -----

• South African major telco contract goes to RFP

• 10% growth over previous financial year

• Major white label channel pricing reduced as part of cost reduction strategies and in line with pricing demands from the market

• Acquisition of Full Circle on 17 June 2014

• Major Managed Services Contract secured with Boral

• Exclusive distribution rights for leading data roaming cost reduction app, Wandera

==> picture [332 x 25] intentionally omitted <==

----- Start of picture text -----

JConnects Highlights
----- End of picture text -----

==> picture [333 x 25] intentionally omitted <==

----- Start of picture text -----

JConnects Challenges
----- End of picture text -----

• Reduction in revenue by 29% from IBM license renewals , however at a very low margin therefore immaterial impact to cash flow and P&L.

• Higher utilisation of WA professional services resources across Group

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Looking ahead…

==> picture [708 x 343] intentionally omitted <==

JCS 2014/15 Business Plan

==> picture [332 x 25] intentionally omitted <==

----- Start of picture text -----

Group
----- End of picture text -----

==> picture [333 x 25] intentionally omitted <==

----- Start of picture text -----

JTel/Full Circle
----- End of picture text -----

• Appointed new CEO and CFO

• Complete Full Circle best of breed platform project by June 2015.

• Faster growth through innovation, product development and channels

• Commence migration of customers to a single platform built on Ruby-on-Rails based application

• Committed to delivering a lower overhead and cost base

• Focus on selling Total Lifecycle Management Service offering to both existing and new clients

• Deliver Improved Operational Efficiency and Financial performance

==> picture [333 x 25] intentionally omitted <==

----- Start of picture text -----

JConnects
----- End of picture text -----

==> picture [333 x 25] intentionally omitted <==

----- Start of picture text -----

JCurve
----- End of picture text -----

• Drive uptake of entry level solution via Digital channel

• Exit IBM Reseller business to improve financial performance but retain Professional Services team to support wider Group

• Closer management of Professional Services and product development

• Focus on Accounting and Advisors channel for market penetration

• Restructure Support model to improve retention performance

==> picture [96 x 33] intentionally omitted <==

SaaS Portfolio in the Cloud

==> picture [311 x 25] intentionally omitted <==

----- Start of picture text -----

ERP for growing SMEs
----- End of picture text -----

==> picture [311 x 25] intentionally omitted <==

----- Start of picture text -----

Total Lifecycle Management Service
----- End of picture text -----

• Built on Global #1 in Cloud ERP - NetSuite

• Best of breed software for SME who need more than accounting only.

• Fast growing market

• Solutions for total expense management of the telco contract

• Built on new platform that is modern , scalable and supports rapid development

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Big Software for Small Business

==> picture [708 x 157] intentionally omitted <==

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

What We Do

==> picture [627 x 195] intentionally omitted <==

----- Start of picture text -----

Accounting/ERP software in the Stock & e-
“Cloud” for Small Business Inventory commerce
Data
•
We empower our customers to make timely,
informed and reasoned commercial, operating
and financial decisions by providing them with
the same tools the largest companies in the
world have at their disposal
•
Fits in SME market between accounting only
and mid-market ERP software CRM source Financials
(sales &
•
850k SME business 1-19 employees ANZ & Payroll
marketing)
----- End of picture text -----

• Accessed anywhere, anytime, any device

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

JCurve – A Significant opportunity going forward

==> picture [453 x 25] intentionally omitted <==

----- Start of picture text -----

20 % year on year growth
----- End of picture text -----

• We are playing in a very strong growth environment

• Aim to take market share off incumbents who don’t provide the single growth path that ERP does

==> picture [453 x 24] intentionally omitted <==

----- Start of picture text -----

3 key Go to market strategies
----- End of picture text -----

• Direct Sales into Wholesale and Distribution, Retail , and Franchise verticals with JStore value add.

• Digital launch targeting SME who have outgrown accounting only software

• Indirect Channel into Accounting and Advisory T2 and T3 firms to penetrate their customer base , currently engaged with 15 firms

• 17% up on revenue year on year

• Revenue on budget

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Total Lifecycle Management Service

==> picture [708 x 158] intentionally omitted <==

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

What We Do

==> picture [40 x 39] intentionally omitted <==

==> picture [40 x 41] intentionally omitted <==

==> picture [617 x 25] intentionally omitted <==

----- Start of picture text -----

Telecommunications Expense Management (TEM)
----- End of picture text -----

==> picture [240 x 229] intentionally omitted <==

• Fills gap in basic carrier bill reporting systems for midmarket, enterprise and government clients

• Also provide sophisticated auditing to reduce spend by up to 26% - keeps carrier honest.

• Automates carrier billing and improves visibility of usage

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

The Opportunity

• Deliver the FCG platform to fill the gap in the Total Lifecycle Management Services market

• Bridge any gaps by partnering with Wandera and others

• Expand Managed Services offering to include services such as Mobile Device Management

• Add to existing portfolio of resellers/partners

• Optus

• IMEI – Telstra reseller

• ITNewcomm - Integrator

• Connecting Up

==> picture [455 x 243] intentionally omitted <==

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Go to market strategy

• One platform two brands

• FCG – SME and Mid Tier

• JTel – Enterprise and Government

• Expand on Channel and Partner Strategy to create new sales channels and provide additional capability to meet the requirements of the Total Lifecycle Management Service

==> picture [707 x 249] intentionally omitted <==

2015 Outlook

2014/15 will be a year of consolidation with the integration of two acquisitions , completion of the FCG platform and focus on taking our products to market via the key channels identified. The business is currently undergoing a restructure under which staff numbers will be reduced by 25% by the end of January. With these changes, and despite the loss of revenue from 2 major customers, operationally we are anticipating a positive EBITDA result for 2014/15 with Revenue in the range of $12m-$13m for the year.

Under Accounting Standards we have an obligation to review the JCurve ERP acquisition for any possible impairment exposure and the results of this will be communicated with our six monthly result.

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Questions

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Board of Directors

==> picture [145 x 149] intentionally omitted <==

==> picture [145 x 149] intentionally omitted <==

Graham Baillie David Franks Executive Chairman Non Executive Director

Bruce Hatchman John Bond Incoming Non Non Executive Director Executive Chairman

==> picture [142 x 149] intentionally omitted <==

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Resolution 1

“That Mr John Bond be re‐elected as a Director of the Company.”

==> picture [211 x 140] intentionally omitted <==

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Resolution 2 RE-ELECTION OF DIRECTOR – MR DAVID FRANKS

==> picture [153 x 152] intentionally omitted <==

“That Mr David Franks be re‐elected as a Director of the Company.”

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Resolution 3 RE-ELECTION OF DIRECTOR – MR DAVID FRANKS

“To adopt the JCS Remuneration Report for the year ended 30 June 2014.”

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Resolution 4 RATIFICATION OF PRIOR ISSUE OF SECURITIES UNDER PLACEMENT

“That for the purposes of ASX Listing Rule 7.4 and for all other purposes, the Shareholders ratify and approve the issue of 50,172,030 Shares for the purposes and on the terms and conditions set out in the Explanatory Statement accompanying the Notice.”

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

Resolution 5 RATIFICATION OF PRIOR ISSUE OF SECURITIES

“That for the purposes of ASX Listing Rule 7.4 and for all other purposes, the Shareholders ratify and approve the issue of 15,178,571 Shares for the purposes and on the terms and conditions set out in the Explanatory Statement accompanying the Notice.”

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==

==> picture [708 x 132] intentionally omitted <==

Thank you for your attendance

==> picture [94 x 31] intentionally omitted <==

==> picture [708 x 7] intentionally omitted <==