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SPACETALK LTD Investor Presentation 2012

May 14, 2012

65842_rns_2012-05-14_8c07bda9-0315-4ee0-8858-d041db6807d4.pdf

Investor Presentation

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MGM Wireless Ltd. (ASX:MWR) May 2012

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PAC SCHOOL
records show that
ANDREW CALO
did not arrive at
school today
(27/10/12). Please
provide a reason
by reply SMS.
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Mark Fortunatow CEO & Co-Founder Shaun Collopy Director

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MGM Wireless ASX:MWR

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Market Data Capital Structure
ASX Code: MWR Shares on Issue: 8.0 m
Current Price $0.36 Options Outstanding: 0.48 m unlisted
52 week Share Price Range: $0.15 - $0.36 No. Shareholders: 590
Market Cap $2.9 mill Share Consolidation
Economic Value $3.0 mill 30:1 completed November 2011
Major Shareholders
Fortunatow Family 15.5%
Financial Summary 2010-11 Hurd Family 6.7%
Revenue: $ 2,390 Top 20 hold total 48%
EBITDA $ 565K
Net Profit: $ 257K
EPS(cents) 3.2
Price/Earn. (x) 11.3
Directors
EV/EBITDA (x) 5.3
Mark Fortunatow - Chairman (Founder)
Mark Hurd (Founder)
Debt: $ 300K
Shaun Collopy (non Executive)
Cash (Dec 2011): $ 188K
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Quality Revenues

  • 2-3 year rolling Customer Contracts • Software License Fees

  • message revenues

$ 1.6 million in contracted future income

PAC SCHOOL reminds parents of Intercol Soccer Final against St. Peters Saturday 1:00PM main oval.

Over 700 school customers

  • 3 Government Education Department Contracts:

Western Australia

NSW (Sydney Region) New Zealand

Undisputed Australian Market Leader US exposure

NZ Government contract

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Half Year Results

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$’000 HY 2011 HY 2012 %chg
Revenue: 1,026 1,226 16.4
EBITDA 197 367 86.3
Net Profit: 45 240 433
EBITDA Margin 18.7% 29.9%
Operational Schools 560 753 34.5
Cash Reserves: 191 219 14.7
Shareholder’s Equity 445 887 99.3
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Growth Strategy moving forward

  1. Enhance existing products to:

  2. Drive increased message traffic

  3. Increase Software License Revenues – Product Upgrades

  4. Enter complimentary messaging markets – Childcare & Preschool

  5. Launch new cloud based rollmarking application

  6. Shift from School Pay to Parent Pay model

  7. Launch services in US and other international markets

  8. Acquisitions

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What we do

SMS communication solutions for schools

MGM solutions:

  1. Improve student attendance & safety

  2. Engage parent involvement

  3. Reduce school costs

Approaching 700 school customers

  • 3 Government Education Department Contracts: Western Australia

PAC SCHOOL records show that ANDREW CALO did not arrive at school today (27/10/12). Please provide a reason by reply SMS.

NSW (Sydney Region) New Zealand

Undisputed Australian Market Leader

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Existing MGM business model

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MGM Sales contact School

School Leadership decides suitability for school community and budget

One Parent per family receives SMS

Sales Process

Decision makers are School Leaders & Principal Sales cycle 5 weeks to 3+ years Ultimate Customer - Parents are not involved / informed

Revenue

One off consulting and training fee (if applicable) - $ 1500 - $ 3,500 per school Annual License Fee - $ 3 – 8 per student per year SMS revenue $ 1.40 - $ 2.60 student pa

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New Sales model

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School Leadership 5. School Responds to Parent & MGM request

2. SNC informs School of request

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1. Parents Request on-line

Parents / Family

Members

3. SNC informs MGM sales of request

Directly request service Invite other Family Members to join

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MGM Sales

4. Contact School via Parent request

Shaun Collopy - Director

  • Founded 5 tech companies

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  • Co-Founder - Mobile Messenger (MM)

  • Grew to $150m+ revenue, operations in 5 countries, and consistently profitability

  • Held CEO,CTO and COO roles, growing to 100+ staff,

  • Pioneered entry to US & established MM as the largest Mobile Solutions Provider in the US.

  • BRW 5[th] fastest growing company(2005)

  • Sold a majority share to the worlds largest technology private equity firm (SliverLake) in Oct 2007 for $100m+

  • Remain a Non-Executive Director and significant shareholder.

  • 2011 $300m+ revenues in 42 countries

  • Prior to MM, founded 2 companies & successfully sold both to ASX Listed companies

  • 2009 MGM Director

  • 2011 MGM consultant to assist with launch of School News Channel, strategic projects & partnerships

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New Products Target Consumers (Parents)

1. MGM Web marketing drives Parents to www.schoolnewschannel.com 2. Parents & Family Members watch demos and understand how the product works 3. Parents Request / Activate their service directly on-line themselves.

4. Parents pay for Social SMS services directly on their mobile phone account.

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Safety & Attendance

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School Event Reminders

Separated Parents

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MGM Wireless Holdings Pty. Ltd.

Advertising

Hugh Anderson Concordia College [email protected]

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School News Channel gives MGM access to the consumer market Direct access to Parents & Family Members

SNC creates a better, more effective marketing process

Because Parents directly request the service , its easier and faster to sell to schools Parents strongly influence school decision makers

Applicable for:

All existing school Customers New Schools

All markets - Australian, US and NZ

Products likely to generate:

  • 200% more revenue per user (student)

  • 300% more gross profit per user (student)

  • More Traffic

  • More Users

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MGM Wireless Ltd. (ASX:MWR) May 2012

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