JCURVE SOLUTIONS LTD — Investor Presentation 2011

Mar 8, 2011

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– INVESTOR PRESENTATION MARCH 2011

Presenter: Mike Fairclough

Stratatel – The Story So Far

– 1997 Perth Office

2008 – Phoneware Pty Ltd Acquisition

• Dividends paid

• 1998 FleetManager v.1

2009 – Resource Systems Pty Ltd Acquisition

– 1999 Sydney Office

• Dividends paid

– 2000 Listed on ASX (IPO)

2010 – 3 x IBM Business Partners Acquisition

• Adelaide Office

2005 – eFleet Acquisition

• Melbourne Office

• Dividends paid

– 2011 Dividend declared (payable May)

– 2006 Vircom Acquisition

– 2007 Softlog Pty Ltd Acquisition

• Brisbane Office

• Maiden profit

• Maiden Dividend declared

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Stratatel – Historic Financials

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12,500,000
10,500,000
8,500,000
6,500,000
4,500,000
2,500,000
500 , 000
2002 2003 2004 2005 2006 2007 2008 2009 2010
-1,500,000
R evenue EBITDA
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Company Highlights To Date

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• Grown from single office (Perth) to Sydney, Melbourne, Brisbane, Adelaide and Perth

• Grown from one product company to multi‐product software and solutions provider

• From cashflow negative (early days) to operating cash flow positive

• Grown recurrent annuity revenue from nil to approx . ~$9m/annum

• proprietary products ~$6.5m

• and IBM software renewals ~$2.5m

• Profitable since 2007

• Commenced paying dividends to shareholders in 2007

• Grew revenue by 32% during GFC

• Integration of multiple acquisitions

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Recognised and Awarded…

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-8

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• Awarded 8[th] fastest growing software reseller in Australia in 2009 – 10 (CRN Magazine)

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• Awarded 25[th] fastest rowin IT com an in Australia in g g p y

• 2009 – 10 (Deloitte)

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• 362[nd] of fastest rowin 500 IT com anies in Asia Pacific g g p

• (2009 – 10)

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So Who Are We Now?

What were we?

A niche provider of a proprietary expense management product , namely FleetManager ®.

So, who are we now?

Stratatel Ltd is a broad based Business to Business software and services company with expertise across a range of solutions that enable better business outcomes.

• Expense Management – FleetManager®, CostManager, follow&go

• Business Intelligence – Cognos^

• ^ ^

• o C o ll a b orat on i Q u c i k r (D ocument M anagement ) , amet me S i (U n ifi e d Communications), Connections^ (Internal Business Networking)

• o Content Management – CMS/Web Applications Design & Build

• Content Management

• Consultancy Of the above and related IT and Business Services Consultancy

• ^ Denotes IBM Proprietary Product

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Half Year Results to 31 December 2010

	PROFIT & LOSS	CASHFLOW SUMMARY
	$ Revenue 7,805,320	$ Operating Inflows 6,695,434
	Cost of Goods Sold (3,096,428) Gross Margin 4,708,892	Operating Outflows (6,528,613) Net Operating Cash Movement 166,821
	Expenses 3,917,803	Dividends ( 205,593)
	EBITDA 333 319 , Corporate Overheads 457,770	I ( 8 60) nvestments 41 ,7 Capital Expenditure ( 74,430)
		Overall Cash Movement ( 531,962)

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Half Year Results to 31 December 2010

SUMMARY BALANCE SHEET

YTD GROSS MARGIN BY PRODUCT

	$
Cash at Bank	1,029,088
i bl Rece va es	3,860,443
Other Current Assets	229,987
Fixed Assets	191 476 ,
Other Assets	7,886,573
Total Assets	13,197,567
Current Liabilities	4,337,279
Long Term Liabilities	467,332
Borrowings	0
Equity	8,392,956
Total Liabilities & Equity	13,197,567

Revenue	$
TEM(FleetManager®)	3,063,021
Softlog (CostManager & Softlog.Enterprise)	923,673
Resource(Software & Services)	3,818,626
Total	7,805,320
G M i ross arg n	$
TEM	2,939,806
Softlog	840,920
Resource	928,166
Total	4,708,892
Gross Margin %	$
TEM	96%
Softlog	91%
Resource	24%
Overall Gross Margin %	60%

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Revenue and Client Analysis

Recurrent Revenue by Calendar Year

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9,000,000
8,000,000
7,000,000
6,000,000
5 000 000, ,
Revenue
4,000,000
3,000,000
2,000,000
1,000,000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010
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NB. Underpins organic sales growth

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Revenue and Client Analysis

Total Revenue Breakdown for Half Year to 31/12/10

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9,000,000
8 000 000, ,
7,000,000
6,000,000
5,000,000
2010
4,000,000
2009
3,000,000
2,000,000
1,000,000
0
TEMS Softlog Resource Total Income
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Overhead Analysis

Operating Expenses

Salaries & wages/other employee costs

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3% 2% 2%
3% Rent & Outgoings
3%
4% Marketing
6% Consultancy fees/Licensing
Accountancy/audit/finance/legals/Insurances
Travelling Expenses
Telephones/internet/equipment
Other Expenses
77%
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Revenue and Client Segment Profile

Top 100 Customers by Market Segment

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2% 5%
13%
34%
6%
12%
8%
11%
5% 4%
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Federal Government State Government Local Government Universities Hospitals & Healthcare Resources & Mining Utilities Financial Services

Corporate Property

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Stratatel’s Unique Offering

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EXPENSE
MANAGEMENT
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Software & Services
Solutions
Proprietary Products
BUSINESS
COLLABORATION Managed Services
INTELLIGENCE
Application Design & Build
Focussed Software &
Service Offerings
CONTENT
CONSULTING
MANAGEMENT
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FleetManager®

• Telecommunications Expense Management System

• Developed by Stratatel

• Annuity business model;

• $xx/mobile/month over pre‐ determined contract term

• Accessed via the web (no hardware/ installation required accessed via secure login

• Typically reduces client telco expenses by up to 40% and reduces admin processing costs by up to 75%

• FAST and demonstrable ROI

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The Business Plan

• Key Strategies to provide quality execution across all areas of business:

• Continue to design and build innovative u rades to ro rietar roducts to pg p p y p

• maintain high product margins and retention

• Continue to develop Managed Services capability across the range of solutions

• Continue to develop a quality consulting capability

• Continue to develop Stratatel’s team to enable improved performance

• Acquisition Activity to continue around “Scale” requirement

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Progress to Objectives (Operations) 2010 – 2011

• Revenue in line with company expectations

• EBITDA down on expectations to 31/12/2010; strong sales pipeline expected for 2[nd] half

• Increase sales & marketing focus on higher margin TEM, software and service projects

• Looking to increase Consulting staff paid utilisation rates

• Client retention processes are working

• Management expectations of an improvement in EBITDA in 2[nd] half

• Payment of Dividends

• ”

• • “G o o T expert a bili ty man if est t h roug h :

• Awards from CRN and Deloitte in Australia in 2009‐10

• ‐

• TEM Best Practice now a 74% reduction in customers mobile phone expenses

• Stratatel present at Lotusphere 2011 in Las Vegas

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So Where Will the Growth Come from?

• Increased sales of FleetManager® and follow&go

• Increased volume and size of software & services projects

• Increased number of consulting engagements; more people on more projects at higher rates

• Synergistic acquisitions

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Progress to Objectives (Corporate)

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• Annualised revenue of $30m – $ 35m by 31/12/11

• In discussions with acquisition targets

• Objective remains achievable within timeframes however, reliant on acquisition

• Equivalent annualised EBITDA of $4m – $5m by 31/12/11 remains achievable however, reliant on acquisition

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Stratatel’s Market Positioning

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2000 – 2008 2009/10 2010‐11/12 The Future Niche proprietary Transition to expanded Emerging software Expert provider of product provider software & services & services provider significant project based capability solutions

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Key Strategies to Position Stratatel in the Market (Critical Success Factors)

• Build on expert Telecommunication Expense Management “Thought Leadership” position in market

• ”

• • B u ild on expert serv ce e i d li very “G o o T pos t on n mar i i i k et

• Improve sales & marketing focus on high margin solutions especially: TEM, BI, Collaboration & Content Management

• Improve sales & marketing capability to secure significant project based solutions work within high presence market segments

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Corporate Directory

DIRECTORS Ian Macliver Chairman Michael Fairclough Managing Director Graham Baillie Non‐Executive Director Geoffrey Lambert Non‐Executive Director OFFICERS Matthew Parry Chief Executive Officer James Butchers Chief Financial Officer Shannon Ca p orn Com p an y Secretar y HEAD OFFICE

Level , 4 22 Atchison Street St Leonards NSW 2065 Tel: +61 2 9467 9200

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Disclaimer

The information contained in this presentation (“Presentation”) has been prepared by Stratatel Limited (“the Company”) and is being delivered for informational purposes only to a limited number of persons to assist them in deciding whether or not they have an interest in investing in the Company. The Presentation has not been independently verified and the information contained within is subject to updating, completion, revision, verification and further amendment. The Presentation does not purport to contain all information that a prospective investor may require. While the information contained herein has been prepared in good faith, neither the Company nor its shareholders, directors, officers, agents, employees, or advisors give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as “Information”) and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising from the use of this Presentation. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.

This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisors. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumption and each recipient should satisfy itself in relation to such matters.

This presentation may contain “forward looking statements”. Where the Company expresses or implies an expectation or belief as to future events or results such expectation or belief is expressed in good faith and believed to have reasonable basis. However, “forward looking statements” are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such “forward looking statements”. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.

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