SPACETALK LTD — Investor Presentation 2019

Apr 9, 2019

MGM Wireless Ltd (ASX:MWR)

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Finance News Network Investor Presentation 10 April 2018

Parent Controlled S martwatch, Phone + GPS Children 5-12 years of age

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Key Features

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Opportunity A New Market

New business … unique product to retail; new target market; proven to deliver strong incremental sales

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

‘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 (2017–2121)’

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Gartner Research 2017

The Spacetalk Difference

“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)

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Their Data, Safe and Secure

SPACETALK is the most secure in the market:

o All data is hosted in Australia and the UK

o Encrypted data traffic between AllMyTribe app, servers and SPACETALK

o Two-factor authentication used in pairing process

Our apps, servers and firmware are all developed and hosted locally. Our proprietary ecosystem has passed all European (GDPR compliant) and Australian standards for privacy and data security. SPACETALK also complies with mandatory electrical safety and radio emissions standards.

o Apps, Server software and firmware developed in Australia

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Australian and NZ Bricks & Mortar Distribution

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Partner Advertising Built

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Strong Marketing Support

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UK Expansion Starting this Quarter (Q4FY19)

• UK Market 3x Larger than Australia

• E-commerce launch starts this quarter

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Distribution
Australia, New Zealand and UK
SPACETALK SALES
CUMULATIVE
AU Spacetalk.com 50K
Estimate
JB Hifi, Spark & LEC
UK Bricks & Mortar
40K 10K
UK Spacetalk.com
UK Online
UK Bricks & Mortar Retail
5K
30K
TODAY
Estimate
3K
20K
Estimate
23K
16K
Actual
13K
10K
8.7K
Actual
6.5K
5.5K
4.1K 4.5K
2.7K
Sep-18 Dec-18 Mar-19 Jun-19 Sep-19
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Corporate Overview

Market capitalisation

Shares on issue

39.9m 12.2M $

Cash Debt * $2.4M $1M

Top Shareholders

14.12%

3.54%

2.50%

2.26%

Hurd Family Gleneagle Yavern Creek (Founder Securities Pty Holdings Estate – Ltd deceased)

Fortunatow Family (Founder)

Listed Founded 2003 2001

ASX Code Listing price MWR $N/A Share price Earnings per share * $3.26 $(11.71)

• December 31 2018

Both Businesses have Recurring Revenue Models

Wearables Monthly $5.99 (net $3.60) App Fee

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Recurring App Monthly Revenue - $46K/month*

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Schools Annual Software License Fee $ 1.50m (Forecast FY19)

• SMS $ 640K forecast revenue for FY19

*ASX Release – JAN 19

1H FY19 Half Year Results

• Record Revenue $4.07m, up 158%

• SPACETALK sales up 1,887% from $128K to $2.4m

• Recurring revenue from SPACETALK monthly app subscriptions up 3,631% to $98K

RECORD PERFORMANCE

• Record Gross Profit of $2.95m, up 100%

• Gross Profit Margin 72%

• Underlying EBITDA $550K

• Over 6,200 monthly app subscribers as at Dec 31

• Monthly Recurring Revenue Run Rate $46K/month

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Contact

MGM WIRELESS Megan Coleman Executive Assistant to the CEO mcoleman@mgmwireless.com 0407 215 292 ABN 93 091 351 530 mgmwireless.com

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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.