SPACETALK LTD — Investor Presentation 2018

Jun 4, 2018

==> picture [344 x 37] intentionally omitted <==

==> picture [195 x 70] intentionally omitted <==

==> picture [232 x 391] intentionally omitted <==

MGM Wireless Ltd (ASX:MWR)

“The Phone That’s Best for Kids”

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

==> picture [707 x 398] intentionally omitted <==

MGM Investor Presentation | 4 June 2018

A New Product Category

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

‘30% of all Smartwatch sales will be children aged 5-13’*

==> picture [222 x 391] intentionally omitted <==

‘Smartwatches are on pace to achieve the greatest revenue potential among all wearables through 2021’*

‘Pure smartwatch sales forecasted to grow from 2017: $9.3B to $17.4B (2017–2021)’*

==> picture [198 x 46] intentionally omitted <==

Gartner Research 2017

• https://www.gartner.com/newsroom/id/3790965

MGM Investor Presentation | 4 June 2018

Actual Smartwatch Sales

==> picture [118 x 166] intentionally omitted <==

==> picture [197 x 144] intentionally omitted <==

China Korea 100,000+ pm 350,000 (over 2 years)

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

Potential

==> picture [228 x 198] intentionally omitted <==

Australia 100,000 – 120,000 pa*

*Gartner Research

MGM Investor Presentation | 5 June 2018

Superior, Best of Breed Device

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

==> picture [933 x 445] intentionally omitted <==

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

Build Quality & Privacy & Location
Reliability Security Accuracy
Reception 24hr European GDPR
Battery Compliant
MGM Investor Presentation | 4 June 2018
----- End of picture text -----

The Spacetalk Difference

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

“No access to apps, games, social media and internet was a massive plus and the reason why we purchased Spacetalk. Reception quality with calls is excellent and location tracking is great!” – Brooke (Facebook Review)

MGM Investor Presentation | 4 June 2018

International Mobile Operator Feedback

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

• Unquestionably the Best Kids

• Smartphone Watch on the market

• The first Kids Smartphone Watch to be a commercial success outside China and South Korea

==> picture [226 x 378] intentionally omitted <==

MGM Investor Presentation | 4 June 2018

Corporate Overview

Market Shares on issue capitalisation 11.5M $25.5M

Cash $2.5M

Debt

Nil

Listed

Founded

2003

2001

ASX Code Listing price MWR $N/A Share price Earnings per share $2.20 $(0.08)

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

Top Shareholders*

14.7% 5.49% 3.99% 2.60% 2.41% Fortunatow Hurd Ryanu Gleneagle Yavern Family Family Services Securities Creek (Founder) (Founder Pty Ltd Holdings Estate – deceased)

==> picture [399 x 208] intentionally omitted <==

*As of 1 June 2018 MGM Investor Presentation | 4 June 2018

Established, Profitable

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

17 Year Old Business

==> picture [578 x 328] intentionally omitted <==

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

NET PROFIT NET CASH
AFTER TAX (DEBT)
$’000 $MILLION 2500
1041 1409
1376
1290
1109
717
877
503 15
657
326
2013 2014 2015 2016 2017 Dec-17 2013 2014 2015 2016 2017 Dec-17 May-18
-533
�
Underlying school communication business has established track record of Operating
Profitability and Positive Cashflow fuelling investment in R&D
----- End of picture text -----

• Significant growth in R&D investment over past 3 years impacting earnings after depreciation and amortisation, interest and taxation.

• Zero debt

MGM Investor Presentation | 4 June 2018

Leadership Team

==> picture [91 x 91] intentionally omitted <==

Mark Fortunatow Chief Executive Officer Founder

==> picture [494 x 341] intentionally omitted <==

Leila Henderson Non Executive Director Fellow of Entrepreneurship Flinders University

Amanda Lee National Sales Manager Microsoft, Blackberry and Motorola Senior Sales

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

==> picture [92 x 91] intentionally omitted <==

Paul Cooper General Manager Wearables Nokia, Microsoft

==> picture [92 x 91] intentionally omitted <==

Glen Butler Non Executive Director Pratt Industries – Head USA Operations

==> picture [93 x 93] intentionally omitted <==

Jason Le Director of Digital Marketing GoPro, Walt Disney, Oakley

MGM Investor Presentation | 4 June 2018

School

Communication Solutions

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

==> picture [283 x 408] intentionally omitted <==

MGM Investor Presentation | 4 June 2018

A 17 Year Old Existing Business

1,271 Contracted schools

1

Largest provider of messaging communications solutions to Australian schools

1.6m People use a MGM Wireless product daily

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

MGM Wireless innovates and commercialises disruptive software and technology that:

==> picture [50 x 50] intentionally omitted <==

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

==> picture [50 x 49] intentionally omitted <==

MGM Investor Presentation | 4 June 2018

Key Milestones

2001-2003 2003+ Beginnings SMS Solutions for Schools

Commercialises and grows revenue from SMS based products for school attendance management and productivity.

MGM Wireless is established to research commercial possibilities in convergence of wireless and internet technologies.

messageyou achieves national footprint and is globally recognised as a leader in SMS-based attendance solutions.

2010-2014 Cloud Computing & Smartphone

Develops products for cloud computing and smartphone adoption, driving revenue and margin growth.

Messageyou continues to grow to > 900 schools.

Profitability and core cash-generating business established.

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

2015-2016 2017+ Wearables & Internet of Things

Spacetalk AllMyTribe

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

Launch of Spacetalk watch, GPS tracker and phone all-inone for children.

Launch of AllMyTribe Family Wearables IoT Platform.

Development of Schoolstar App for School News and messaging.

Transition School SMS communication to School Star in-app messaging.

MGM Investor Presentation | 4 June 2018

==> picture [102 x 37] intentionally omitted <==

One Platform for Connected Intelligence

==> picture [108 x 30] intentionally omitted <==

==> picture [412 x 444] intentionally omitted <==

==> picture [88 x 109] intentionally omitted <==

==> picture [52 x 44] intentionally omitted <==

==> picture [494 x 341] intentionally omitted <==

MGM Investor Presentation | 4 June 2018

Ready Now for Bricks & Mortar Distribution

==> picture [422 x 407] intentionally omitted <==

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

Designed for Australian Use

• Operates on Telstra’s NextG 3G network.

• Supports 2 critical mobile frequency bands for Australia wide reception.

• Certified for all mandatory Australian regulatory compliance, and (RCM).

MGM Investor Presentation | 4 June 2018

Investment Opportunity

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

==> picture [530 x 340] intentionally omitted <==

MGM Investor Presentation | 4 June 2018

Share Price Drivers

01

02

Internet of Things (IoT)

Established Brand

MGM Wireless is currently the worldleading developer of and provider of software for schools, currently used by over 1,100 schools and 1.6 million parents.

IoT at home is forecast to grow to more than 300 million devices in Australian homes by 2021.

03

Growing Market Share

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

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

04

Technology Advances & Societal Changes

The combination of societal changes has created an opportunity rich environment for MGM Wireless capabilities in innovating & marketing new products.

MGM Investor Presentation | 4 June 2018

Valuation Modeling*

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

Using Nearest Equivalent Valuation – Nuheara (Wireless Headphones) (ASX:NUH)

FY 2019 7,000 unit sales result will generate: $1.7m in extra revenue

$315K in Net Profit

Equivalent NUH Revenue to Market Cap Multiplier 30.85x (

This Assumes MGM has … Market Cap ZERO $2.5m cash $82.8m* Value $Zero Debt to profitable existing School business Share price Current Share Price Current Market Cap $4.33 $2.20 $25.5m

The company is currently unknown to investors Valuation well below peers

For Illustrative Purposes Only. Not a Forecast As of 4 June 2018 MGM Investor Presentation | 4 June 2018

Both Business are Recurring Revenue Models Unique to Wearables

Wearables Monthly $5.99 App Fee (net $4.19) (e.g. 7,000 Watch sales = $352K pa)

==> picture [168 x 305] intentionally omitted <==

==> picture [168 x 305] intentionally omitted <==

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

Schools Annual Software License Fee $ 1.34 m (locked in) + SMS $ 610K = Total Locked in Revenue for FY 2019: $1.95m

MGM Investor Presentation | 4 June 2018

NUHEARA (ASX:NUH)

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

NEAREST EQUIVALENT VALUATION

BOTH Wearables Device Category BOTH Small Cap

BOTH leading technologies at similar price points

BOTH rely on online and bricks & mortar retailers

NUHERA sales (Half-Year Ended 31 December 2017) $1.96m NUHERA net loss

NUHEARA has revenue to market cap multiplier 30.85 x

NUHERA market cap $82.8m

MGM profitable at just 5,000 units MGM existing school business generating $2.5m revenue pa MGM greater leverage to sales uplift

The company is currently unknown to investors Valuation well below peers

MGM Investor Presentation | 4 June 2018

==> picture [295 x 80] intentionally omitted <==

==> picture [494 x 341] intentionally omitted <==

==> picture [195 x 70] intentionally omitted <==

Contact

MGM WIRELESS Mark Fortunatow Chief Executive Officer mfortunatow@mgmwireless.com 08 8104 9508 ABN 93 091 351 530 mgmwireless.com

MGM Investor Presentation | 4 June 2018

==> picture [102 x 37] intentionally omitted <==

==> picture [108 x 30] intentionally omitted <==

This presentation has been prepared by MGM Wireless Limited (the “Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents of this presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters.

No representation or warranty (whether express or implied) is made by the Company or any of its officers, advisers, agents or employees as to the accuracy, completeness or reasonableness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or provided in connection with it, or any omission from this presentation, nor as to the attainability of any estimates, forecasts or projections set out in this presentation.

This presentation is provided expressly on the basis that you will carry out your own independent inquiries into the matters contained in the presentation and make your own independent decisions about the affairs, financial position or prospects of the Company. The Company reserves the right to update, amend or supplement the information at any time in its absolute discretion (without incurring any obligation to do so).

Neither the Company, nor its related bodies corporate, officers, their advisers, agents and employees accept any responsibility or liability to you or to any other person or entity arising out of this presentation including pursuant to the general law (whether for negligence, under statute or otherwise), or under the Australian Securities and Investments Commission Act 2001, Corporations Act 2001, Competition and Consumer Act 2010 or any corresponding provision of any Australian state or territory legislation (or the law of any similar legislation in any other jurisdiction), or similar provision under any applicable law. Any such responsibility or liability is, to the maximum extent permitted by law, expressly disclaimed and excluded.

Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in the Company.

Future matters

This presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of the Company.

Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of the Company may be influenced by a number of factors, many of which are outside the control of the Company. No representation or warranty, express or implied, is made by the Company, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved.

Given the risks and uncertainties that may cause the Company’s actual future results, performance or achievements to be materially different from those expected, planned or intended, recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. The Company does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended. US Disclosure

This document does not constitute any part of any offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of any “US person” as defined in Regulation S under the US Securities Act of 1993 (“Securities Act”). The Company’s shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person.

MGM Investor Presentation | 4 June 2018