SPACETALK LTD — Investor Presentation 2015

May 11, 2015

ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000

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ASX Release MGM Wireless Ltd

12 May 2015

MGM Wireless advises that the attached investor pack will be presented as part of the company’s upcoming Investor Briefing Roadshow.

About MGM Wireless Ltd and Messageyou, LLC

MGM Wireless is recognised in Australia and internationally as a pioneer of socially responsible technology-enabled school communications with a proven track record in designing, developing and successfully commercialising innovative world class technology products.

The company’s patented SMS school communication solutions empower schools to effectively communicate to parents and caregivers using SMS text messaging to improve student attendance, welfare, safety and parent engagement. Measurable benefits for schools include reduced operating costs, increased productivity and improved parent and community engagement, which ultimately improve student learning and social outcomes.

Schools in Australia and New Zealand use Messageyou software in their day to day operations.

For further information contact: MGM Wireless Ltd. - (ASX:MWR) Mark Fortunatow, CEO Mobile: 0421 328 984 Phone: 08 8104 9508 Email: mfortunatow@mgmwireless.com Web: www.mgmwireless.com

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MGM Wireless (ASX:MWR) Investor pack May 11 2015

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MGM Wireless innovates and commercialises disruptive software and technology that:

• increases productivity and reduces operating costs for schools

• improves student welfare & safety and promotes parent engagement

• supports welfare and safety for students and family members

#1

Largest provider of messaging communications solutions to Australian & NZ schools

1,156

Contracted schools

1.6 million

People who use a MGM Wireless product daily

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MGM Wireless ASX: MWR Company Snapshot

Key financial and share data

Key financial and share data
Share price range, financial year to date	$0.85 - $1.60
Shares on issue	8.57 mill
Market capitalisation1	$12.9 mill
Earnings per share (cents)	7.38
Net cash (debt)2	$ 0.91 mill

Major Shareholders
Fortunatow Family	17.1%
Hurd Family	6.8%

1. As at 11 May 2015

2. As at 31 March 2015

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Net profit after tax $’000

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717
658
603
257
203
FY10 FY11 FY12 FY13 FY14
MWR Share price
Financial year to 8 May
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1.60
1.40
1.20
1.00
0.80
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
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Development timeline

MGM Wireless’ growth has been driven by its innovation and marketing of products that exploit disruptive benefits offered by new technology

2001 – 2003

2003+

2010 - 2014 2015+

Beginnings

SMS solutions for schools

Cloud computing & smartphone

Wearables

& Internet of Things

Start-up. Commercialises and grows Develops products which exploit revenue from SMS based cloud computing and MGM Wireless products for school smartphone adoption for new formed, researches attendance management and higher value applications for commercial productivity. schools and parents which drive possibilities in messageyou achieves revenue and margin growth. convergence of national footprint & Messageyou continues to grow wireless and internet leadership. to > 900 schools. technologies. Profitability & strong core cash generating business established.

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Development of products enabled by the evolution of the ‘Internet of Things’ and wearable devices for applications which support safety, communication, and support independent living.

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Financial performance

Track record. Sustained growth in customer base, earnings and cash

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Operational customers Revenue Net profit after tax Net cash/(debt)
$ million $’000 $ ‘000
1088
940 3.02 3.27 717 877
658
808 2.61 603
2.39
698 2.27
575 326
-76
257 -205 -131
203
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
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• Ongoing growth in penetration of schools in Australia and NZ market by established core products

• New products driving profit growth > revenue growth

• Cash balances growing strongly after funding research and development

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School Business overview

MGM Wireless develops and provides schools with technology solutions to support attendance, student safety & welfare & parent engagement.

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Schools
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Using MGM product: 1,156

3 state government contracts

Fed Gov. funded in NT

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MGM Products
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Users
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Parent and caregivers; use school provided MGM solution

Using MGM solution: 1.6 million

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• Cost savings

• • Efficiency

• Student attendance

• Community engagement

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• Attendance
• Engagement Safety
• Welfare
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MGM School Business Model

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MGM Sales contact School

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School Leadership decides

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Parents receive 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) - $ 500 - $ 3,500 per school Annual License Fee - $ 3 – 8 per student per year SMS revenue $ 1.40 - $ 2.60 student pa Systemic Sales can be financially structured differently

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Market share

MGM Wireless is the largest player amongst current adopters, with growth through expansion in school customers and in new products

MGM Wireless’ market share of schools using SMS systems

Schools currently adopting SMS Technology vs total schools

MGM Wireless’ share of addressable market

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Other
Adopted 87%
18%
Unlikely
to adopt
40%
MGM
Wireless, Others Addressable
50% 50% market
MGM
Potential Wireless
adopters, 52% 13%
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Revenue features

Revenue is leveraged to volume and the growing richness of message content and supported by contracts and a ‘sticky’ client base

Revenue contracted forward

Focussed on niche sector with solid customers

• 2-3 year rolling contracts gives recurring nature

• $1.6 million contracted forward as at 1 Jan 2015

• Australian and NZ public and independent schools and early learning centres

• Government contracts: WA, NSW (Sydney region) and NZ, Federal funding in NT

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

“Sticky” customer base with barriers to entry

• MGM Wireless products become part of school infrastructure, deliver savings and welfare outcomes

• Experience and capability in dealing with schools a competitive advantage

Upside from leveraging technology and user relationships with

products

• Upside from rising message traffic, as users adopt more products and access richer content more often

• • Trend to smartphone adoption and applications

• Software licence fees

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Established Flagship Products

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SMS Student Attendance

Communication

• Automated

• ‘Intelligent’

• Market leader

Analytics Engine

• Merges Attendance Records & SMS

• Management Tool for School Leaders

Social Messaging Platform

• Web App

• School Event Reminders, Late Breaking News

• Crisis

• Links MGM products to schools existing databases

New products, utilising cloud and smartphone technology

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Social Messaging Platform

• Upgrade to Outreach

• Cloud & Smartphone App

• SMS File Attachments

• Facebook, Twitter & LinkedIn

• Cloud & Smartphone

• Integrated with messageyou & Outreach+

• Rollmarking App

Parent-Teacher

Interview & School Booking App

• Integrated with Outreach+

• Mobile Platform

Family Locator App

• Wearable interface

• • Family Living

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Growing Message Traffic

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Months offset from May 8 2015

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Growth drivers

Broad based, and driven by advances and adoption of technology

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Student welfare & safety Growth in contracted
Sales growth
Engagement & attendance schools
School efficiency gains
Opportunity to:
New technology • grow revenue
Societal and behavioural Smartphone /watch Growth in volume = • realise efficiency gains
proliferation & use per customer •
changes lift operating margin
Growth in:
• yield per customer
Opportunity created by •
yield per user
technological advances + New products & new •
product mix value
MGM Wireless R & D and markets
Move from school only focus:
product development • wearables
• family safety & welfare
• supporting independent living
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The third wave: Internet of Things and wearable devices Opportunity for MGM Wireless in family safety and supporting independent living

• First product: MGM Pinpoint Family Locator

Wearables: Forecast[1] shipments

• Applies capabilities from MGM Pinpoint for family safety and independent living support

• Released to coincide with Apple Watch release on which it works

• Available internationally via Apple App Store

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135m – 168m
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18 – 19m
2014 2018-19
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1 Berg Insight and CCS Insight estimates

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FY15 First half financial performance

Revenue and profit growing strongly as impact of new products and upgrades is evident

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Revenue by half
NPAT by half
$’000
$’000
1,645
1,538
H2 H1
1,321 406
1,164 363 585
640
2,206
1,485 1,622
1,226 1,284 212
240 252
133
45
FY11 FY12 FY13 FY14 FY15
FY11 FY12 FY13 FY14 FY15
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• •Revenue growth outstripping customer growth as traffic volumes and yield per user rise

• •Cash generation funding ongoing investment in R & D for new products

• •Majority of FY15 earnings in first half.

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Growth Strategy

Growth strategy is simple, based on ongoing commitment to innovation and is funded from existing cash generation

1. Penetration: increase penetration of existing core products to school sector will give solid ongoing base line growth in revenue

2. Traction: in adding higher value product sales to existing core product relationships

3. Innovation: continue to invest in research and development of new products

4. Investment: in systems and resources to support growth that is being realised

5. Leverage leadership: vigilance for opportunities to apply industry leading capabilities in logical, lowrisk extensions to current business base.

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Outlook

1. Current Year

• March quarter sales up 30% on pcp to $0.4 million; March 31 2015 cash balance: $1.1 million

• March 2015 YTD sales up 35% to $2.6 million

• Anticipate record full year revenue and profit result

• Larger investment in R&D

• New product and upgrades to existing product releases to support growth

• Expansion of geographical addressable market with Pinpoint Family Locater for Apple Watch

2. Longer term

• Growth – revenue and profit

• Expand markets beyond schools and Australia

• Expanded products & business models

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In summary

1. MGM Wireless is a world - leading developer and provider of disruptive software for schools

2. A strong half year result has the business on track to record its 5th successive year of profit growth

3. The combination of technology advances and societal changes has created an opportunity-rich environment for MGM Wireless’ capabilities in innovating and marketing new products

4. MGM Wireless anticipates surplus cash generation to continue for the foreseeable future. Surplus cash is after funding of R & D

5. Commitment to R & D and innovation of new products is expected to see product range, and revenue generation continue to grow.

6. Outlook is for baseline organic growth of 5% - 10% pa in revenue and profit is expected from established core business plus potential for additional growth from new products and business expansion.

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Balance Sheet

$’000 unless indicated	31 Dec 2014	30 June 2014	31 Dec 2013
Cash	1606.3	1077.8	1,013.5
Other current assets	1,309.7	1,259.9	932.5
Total current assets	2916.0	2,337.8	1,946.0
Intangibles	1,706.0	1570.4	1063.5
Other non-current assets	186.5	201.5	203.3
Total Non current assets	1,892.4	1,771.9	1,266.8
Total assets	4,808.4	4,109.7	3,212.8
Current borrowings	-	-	-
Other Current liabilities	909.6	852.7	522.9
Total current liabilities	909.6	852.7	522.9
Non-current borrowings	200.0	200.0	200.0
Total Liabilities	1,109.6	1,052.7	722.9
Total equity	3,698.8	3,057.0	2,489.9

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Financial performance Sustained growth in customer base, earnings and cash

$’000 unless indicated	2010	2011	2012	2013	2014 CAGR % pa
Operational Customers(no) 575		698 808 940 1,088 17% Growing penetration of Australian & NZ schools
Revenue 2,271 EBITDA 467 Margin % 20.6 EBIT 243 Net Profit 203		2,390 2,605 3,023 3,267 9% 566 859 1,385 1,155 25% Earnings growth ahead of revenue with increase in value of product mix 23.6 32.9 45.8 35.3 n/a Higher margins from higher value product mix and efficiency 312 631 728 983 42% 257 603 658 717 37% NPAT growth slightly lower due to increase in tax payments
Cash from operating activities 208 (Net debt)/cash (76)		(44) 301 910 1055 50% Cash rising due to business model mix and efficiency of scale (205) (131) 326 877 n/a Cash balances rising after funding R & D, to be reinvested in growth
Earnings per share (cps) 2.8 Dividend (cps) - Return on capital % 116 Return on equity % 102		3.3 7.5 8.1 8.3 31% - - 1.0 1.1 n/a 31 40 29 22 n/a 40 48 31 23 n/a

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MGM Wireless Ltd ABN 93 091 351 530 www.mgmwireless.com

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Contact: Mark Fortunatow Chief Executive Officer mfortunatow@mgmwireless.com 0421 328 984 08 8104 9508