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ORCODA LIMITED AGM Information 2014

Nov 17, 2014

65482_rns_2014-11-17_fd478a7e-d4c3-4417-bfc5-1b22f7aa240f.pdf

AGM Information

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SmartTrans
Holdings
Limited
(ASX:
SMA)
Bryan
Carr

Managing
Director
&
CEO AGM
2014 18
November
2014

1

SmartTrans
Holdings
Limited

October
2014

1

**SmartTrans’

three
established
businesses**

1.

**China

mobile
&
online
payments
pla@orm**

  • Allows
    companies to
    transact
    and
    process
    payments
    in
    China

  • SMA
    also
    sells
    its
    own
    mobile
    content
    through
    payments
    pla@orm

  • Mobile
    payments
    preferred
    payment
    method
    for
    Chinese
    consumers

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2.

**MarkeEng

&
Sales
of
Mobile
Phone
ApplicaEons
(Apps)**

  • SMA
    sells
    its
    own
    and
    third
    party
    Apps
    directly
    to
    mobile
    subscribers

  • Receives
    a
    royalty,
    and
    also
    revenue
    through
    exisEng
    billing
    pla@orms

  • A
    large
    (over
    US$2.9
    billion*)
    and
    growing
    market
    in
    China

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3.

**Mobile

&
online
LogisEcs
soQware
provider
in
Australia**

  • LogisEcs
    soQware
    to
    opEmise
    goods
    delivery

  • Recurring
    revenue
    from
    long
    term
    contracts

    typically
    3-­‐5
    years

  • Australian
    focus

    opportunity
    to
    integrate
    with
    mobile
    payments
    pla@orm
    in
    China

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*Source:
hJp://www.pocketgamer.biz/asia/data-­‐and-­‐research/58833/18-­‐key-­‐trends-­‐from-­‐the-­‐chinese-­‐mobile-­‐games-­‐market/

SmartTrans
Holdings
Limited

October
2014

2

**2014

Financial
Year
Achievements**

  • 2014
    has
    been
    a
    transformaUve
    year
    for
    SmartTrans

  • Divestment
    of
    non-­‐core
    assets
    (exploraUon
    tenements)
    to
    focus
    on
    core
    business
    divisions

  • Reduced
    company
    cost
    base
    and
    overheads
    -­‐
    $600,000
    in
    ongoing
    costs
    taken
    out
    of
    the
    business

  • Solid
    and
    growing
    revenues
    in
    China
    and
    Australia

    Up
    90%
    for
    the
    year

  • Significant
    increase
    in
    China/Hong
    Kong
    Revenue

  • New
    billing
    agreements
    in
    China
    providing
    access
    to
    ALL
    mobile
    phone
    subscribers
    in
    China

  • New
    products
    and
    services
    launched
    in
    China

  • Blue-­‐chip
    client
    list
    for
    mobile
    and
    web
    logisUcs
    sobware
    business
    in
    Australia
    with
    solid
    recurring

revenue

SmartTrans
Holdings
Limited

October
2014

3

**Mobile

&
online
payments
pla@orm

China
Market**

PAYMENTS

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DISTRIBUTION

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China
Forums Youku

Qihoo
360

Brand
sites

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WeChat Baidu

Product
Review
sites Targeted
Media
Ads

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Celebrity
Endorsement Social
Media
Ads

Uprising
Social
Media

RenRen

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Tencent

Influencer
Outreach

UGC

Kaixin

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Blogger
Reviews Email
Direct
MarkeUng

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Mobile
MarkeUng

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Weibo

SmartTrans
Holdings
Limited

October
2014

4

**Smart rowin idl phone

use
and
export
g g
rap y
in
China**

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**Shipments

of
smartphones
in
China
from
2010
to
2015**

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

103.1%
40000
56.0%
35.2%
32.5%
28.3%
30000
25857
20000
20153
15210
11250
10000
7210
3550
2010
2011
2012
2013
2014
2015
Shipments
of
smartphones
by
(10,000)
Growth
rate
----- End of picture text -----

Source:
www.theguardian.com/technology/2014/jan/13/smartphone-­‐explosion-­‐2014-­‐india-­‐us-­‐china-­‐firefoxos-­‐android

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Source: Publically
available
data
of
iResearch

SmartTrans
Holdings
Limited

October
2014

5

**Mobile

payments
growing
rapidly
in
China**

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

User
billings
are
increasing
every

month

250,000
in
October
2014
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----- Start of picture text -----

SmartTrans)User)Billings)
300,000""
250,000""
200,000""
150,000""
100,000""
50,000""
0""
Jul+14" Aug+14" Sep+14" Oct+14"
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SmartTrans
Holdings
Limited

October
2014

6

**China’s

Mobile
Game
App
Market**

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Mobile
subscriber
purchases
an
App
for which
SMA
receives
a
royalty

  • SMA
    also
    processes
    payment
    for
    third

  • party
    App
    sellers
    through
    its
    exisUng
    mobile payments
    plalorm

    another
    source
    of revenue

  • SMA
    markets
    mobile
    game
    apps
    to
    customers
    through
    social
    media
    plalorms
    and
    distribuUon
    partners
    in
    China

  • SMA
    licences
    and
    sells
    mobile
    game
    apps
    developed
    by
    China’s
    mobile
    game
    developers

  • SMA
    can
    market
    to
    a
    large
    number
    of
    mobile
    game
    users
    in
    China
    via
    exisUng
    billing
    agreements

  • SMA’s
    embedded
    billing
    plalorm
    in
    game
    apps
    also
    provides
    addiUonal
    revenue
    streams

SmartTrans
Holdings
Limited

October
2014

7

**LogisEcs

soQware
business**

**Client

LogisEcs SMA
distribuEon
pla@orm Delivery
informaEon
sent
to Driver
informaEon
monitored OperaEon
Centre sends
informaEon
to
drivers handheld
devices through
logisEcs
pla@orm**

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  • SMA
    logisUcs
    sobware
    used
    by
    blue
    chip
    companies
    to
    opUmise
    goods
    delivery
    and
    reduce
    logisUcs
    costs

  • Electronic
    Proof-­‐of-­‐Delivery,
    bar
    code
    &
    signature
    record
    keeping,
    cash
    reconciliaUon
    systems

  • Typically
    3-­‐5
    year
    contracts
    with
    circa
    50%
    of
    contract
    value
    billed
    in
    first
    year

    very
    high
    customer
    retenUon

  • Strong
    recurring
    revenue
    streams
    with
    good
    margins

  • Pursuing
    expansion
    in
    Australia
    and
    China

  • integraUon
    with
    billings
    plalorm

SmartTrans
Holdings
Limited

October
2014

8

**In

Summary**

1.
ConEnuing
uptake
by
third
parEes
of
SMA’s
mobile
payments
pla@orm
is
a
key
growth
driver

2.
MarkeEng
and
sales
of
Mobile
Game
Apps
in
China
market
represents
a
significant
opportunity
for
SMA

3.
Growth
in
logisEcs
business
in
Australia
and
China
will
strengthen
recurring
revenue
base

Three
businesses
now
well
established
and
ready
to
deliver
strong
revenue
growth

SmartTrans
Holdings
Limited

October
2014

9

Disclaimer

This
document
does
not,
and
does
not
purport
to,
address
any
or
all
issues
which
are
or
may
be
material
or
of
interest
to
the
Recipient
in
connecUon
with its
own
due
diligence
review
of
the
Company,
the
Business
or
otherwise.
The
Recipient
may
not,
and
by
receiving
this
document
the
Recipient acknowledges
that
it
is
not
enUtled
to
and
agrees
not
to,
rely
on
any
part
of
this
document
(whether
as
to
a
maJer
of
fact,
forecast,
opinion
or
belief)
for any
purpose
whatsoever.

Certain
statements
in
this
document
relate
to
the
future.
These
forward
looking
statements
involve
known
and
unknown
risks,
uncertainUes,
assumpUons and
other
important
factors
that
could
cause
the
actual
results,
performance
or
achievements
of
the
Company
and
the
Business
to
be
materially
different from
future
results,
performance
or
achievements
expressed
or
implied
by
such
statements.
Such
forward
looking
statements
are
based
on
numerous assumpUons
regarding
present
and
future
business
strategies
and
the
environment
in
which
the
Company
will
operate
in
the
future.
No
representaUon, assurance
or
guarantee
is
given
that
the
occurrence
of
the
events
expressed
or
implied
in
any
forward
looking
statements
in
this
document
will
actually occur.
The
forward
looking
statements
in
this
document
reflect
views
held
only
at
the
date
of
this
document.

Past
performance
informaUon
given
in
this
document
is
given
for
illustraUve
purposes
only
and
should
not
be
relied
upon
as
(and
is
not)
an
indicaUon
of future
performance.
By
accepUng
this
document,
the
Recipient
agrees
that
it
will
make
and
rely
solely
upon
its
own
due
diligence
invesUgaUons
and enquiries
and
will
not
in
any
way
rely
upon
any
of
the
informaUon
in
this
document
or
use
this
document
for
any
purpose
other
than
as
informaUon
to assist
the
Recipient
and
its
advisers
to
undertake
its
own
due
diligence
invesUgaUons
and
enquiries.

None
of
the
statements,
opinions,
projecUons,
forecasts
or
other
forward-­‐looking
informaUon
contained
in
this
document
have
been
independently verified
and
no
commitment,
representaUon
or
warranty,
express
or
implied,
is
made
in
relaUon
to
their
accuracy,
reasonableness
or
completeness. Furthermore,
where
statements
in
this
document
are
taken
from
or
aJributed
to
sources
created
by
third
parUes,
the
Recipient
should
have
regard
to those
sources
and
rely
on
its
own
enquiries.

SmartTrans
has
prepared
this
document
based
on
informaUon
available
to
it
at
the
Ume
of
preparaUon
and
subject
to
the
qualificaUons
in
this
document. To
the
maximum
extent
permiJed
by
law,
neither
the
Company
nor
any
of
its
respecUve
related
bodies
corporate
or
other
affiliates,
directors,
officers, employees,
representaUves,
agents,
advisors
or
their
respecUve
advisors’
affiliates
or
partners,
directors,
officers,
employees
or
contractors
(each
a Limited
Party
and
together
the
Limited
ParUes)
takes
any
responsibility
for
the
contents
of
this
document
or
any
acUon
taken
by
the
Recipient
or
any other
person
on
the
basis
of
any
informaUon
in
the
document.
The
Limited
ParUes
disclaim
any
obligaUon
or
undertaking
to
disseminate
aber
the
date
of this
document
any
updates
or
revisions
to
any
forward
looking
statements
to
reflect
any
change
in
expectaUons
in
relaUon
to
those
statements
or
any change
in
events,
condiUons
or
circumstances
on
which
any
such
statement
is
based.
To
the
maximum
extent
permiJed
by
law
any
and
all
liability
in respect
of
this
document
and
the
informaUon
contained
within
it
is
expressly
excluded
including
without
limitaUon
any
direct,
indirect
or
consequenUal liability,
expenses,
losses,
damages
or
costs
incurred
by
the
Recipient
or
any
other
person
as
a
result
of
their
receipt
or
use
of
this
document
or
arising from
the
informaUon
in
this
document
being
inaccurate
or
incomplete
in
any
way
for
any
reason,
whether
by
negligence
or
otherwise.
No
Limited
Party makes
any
representaUon
or
warranty,
express
or
implied,
as
to
the
currency,
accuracy,
completeness,
reliability,
fairness
or
correctness
of
the informaUon
contained
in
this
document
or
about
SmartTrans
generally
or
any
opportunity
to
invest
in
SmartTrans
in
the
future.

SmartTrans
Holdings
Limited

October
2014

10

Contact:

Bryan
Carr Managing
Director +61
412
111
968 [email protected]

SmartTrans
Holdings
Limited

October
2014

11