For personal use only Investor Presentation AUGUST 2014 For - - PDF document

Investor Presentation

AUGUST 2014

For personal use only

Disclaimer on Presentation

This Presentation is not a prospectus nor an offer for securities in any jurisdiction nor a securities recommendation. The information in this Presentation is an overview and does not contain all information necessary for investment

• decisions. In making investment decisions in connection with any acquisition of securities, investors should rely on

their own examination of the assets and consult their own legal, business and/or fjnancial advisers. The information contained in this Presentation has been prepared in good faith by Applabs Technologies Ltd, however no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness

• r adequacy of any statements, estimates, opinions or other information contained in the Presentation.

To the maximum extent permitted by law, Applabs Technologies Ltd, its Directors, offjcers, employees and agents disclaim liability for any loss or damage which may be suffered by any person through the use or reliance on anything contained in or omitted in this Presentation. Certain information in this Presentation refers to the intentions of Applabs Technologies Ltd, but these are not intended to be forecasts, forward looking statements or statements about future matters for the purpose of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause Applabs Technologies Ltd’s actual results, performance or achievements to differ from those referred to in this Presentation. Accordingly, Applabs Technologies Ltd, its Directors, offjcers, employees and agents do not give any assurance or guarantee that the occurrence of the events referred to in the Presentation will actually occur as contemplated.

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Table of Contents

01 Company Information 1.1 Company Snapshot 1.2 Board of Directors 1.3 Investment Highlights 02 Company Structure 2.1 Business Model 2.2 Company Structure 2.3 Fee for Service Division 2.4 Venture Capital Division 2.5 Internal Product Division 2.6 Peer Comparison 03 Application Market 3.1 Australia’s App Development Market 3.2 Global Market Data 1 2 4 5 6 7 8 9 10 13 16 17 18 19

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company information

01

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Applabs Technologies Ltd. (“Applabs” the “Company”) (ASX:ALA) is the fjrst ASX listed app development and technology venture fund Company. Applabs has three distinct revenue divisions within it: Applabs offers a unique business model of both an app developer and a technology fjnancer, enabling the Company to produce apps for customers as well as the ability to fund, develop and market exciting leading edge new apps

• internally. Applabs is also extremely active in acquiring positions in technology companies with a view to helping them

list on the ASX as stand alone entities.

1.1 Company Snapshot

ASX Code Shares on Issue Options (ALAO) Last Share Price (1 August 2014) Market Capitalisation Net Cash (30 June 2014) Enterprise Value ALA 42,426,971 25,619,920 23c $9,758,203 $5,357,000 $4,401,203

Division

1

App Development or “Fee for Service” Division - Producing bespoke mobile apps for clients. Division

2

Venture Capital Division - Focused on sourcing and investing in technology companies globally Division

3

Internal Development Division - Developing internal technology projects 2

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2014

0.26 0.25 0.24 0.23 0.22 0.21 0.20 0.19 0.18 0.17 0.16 0.15

ALA Trading History

FEB MAR APR MAY JUN JUL AUG

Top 10 shareholders

GROOVING THING PTY LTD MS CHLOE THOMAS STONEY PASTORAL CO PTY LTD MV AGUSTA INVESTMENTS PTY LTD MRS PAOLA DAWE EAGLESHAM NOMINEES PTY LTD MEGATOP NOMINEES PTY LTD MR ROBERT STORRIER DELLOW DR STUART LLOYD PHILLIPS & MRS FIONA JANE PHILLIPS INVESCO NOMINEE PTY LTD

4.125% 1.385% 1.804% 1.996% 1.532% 2.039% 1.343% 1.723% 1.850% 1.515%

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1.2 Board of Directors

Patrick Glovac

(Managing Director)

Mr Glovac holds a Bachelor of Commerce majoring in Finance, Banking & Management through Murdoch University and a Diploma of

• Management. Mr Glovac

had been working as an Investment Advisor since 2003 for Bell Potter Securities Limited focusing

• n High Net Worth

clients & Corporate

• Advisory. During that

time he has advised and funded many ASX listed companies from early stage seed capital through to Initial Public Offering.

Charles Thomas

(Non-Executive Director)

Mr Thomas holds a Bachelor of Commerce from UWA majoring in Corporate Finance. Mr Thomas had been working as an Investment Advisor since 2009 for Bell Potter Securities Limited focusing

• n High Net Worth clients

& Corporate Advisory. Previously he worked for State One Stockbroking for a period of 3 years. During the past 7 years he has advised and funded many ASX listed companies from early stage seed capital through to Initial Public

• Offering. Additionally Mr

Thomas is a Founding Director & major shareholder of D-InkD Pty Ltd, a company offering low cost tattoo removal in

• Australia. Mr Thomas is

also an Executive Director

• f ASX listed Liberty

Resources Ltd (ASX:LBY).

Rocco Tassone

(Non-Executive Director)

Mr Tassone holds a Bachelor of Business with a Double Major in Finance and Economics from Edith Cowan University, together with a Post Graduate Diploma in Applied Finance and Investment from

• Kaplan. Mr Tassone has

extensive experience in equities markets most recently with Bell Potter Securities Limited, where for a period of 8 years, he advised across domestic and international Institutional Sales, High Net Worth individuals and Corporate Advisory. During this time he has advised and funded many ASX listed companies from early stage seed capital through to Initial Public Offering as well as through mergers and acquisitions. Additionally Mr Tassone is also a Founding Director and major shareholder of D-InkD Pty Ltd, as well as Founding Director of online retailer and distributor www. everythingmma.com.au.

Stuart Kidd

(Executive Director)

Mr Kidd has 17 years in graphic design and 14 years experience in developing successful internet applications for the likes of Deutsche Bank, Halifax Bank, UBS, Barclays, Vodafone and Mars Inc., Stuart switched to mobile technology starting up InGenius Labs, taking with him much technical branding and marketing knowledge. Additionally Mr Kidd was an internet broadcasting pioneer, setting up

• ne of the fjrst radio

and nightclub internet broadcasts from London. 4

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Applabs is a technology company whose forward-thinking team works seamlessly in the evolving app development world

1.3 Investment Highlights

Unique business model which provides Applabs with three separate revenue divisions; Fee for Service, Venture Capital and Internal Product Division Established a Delaware based company to fast-track US investments with strategic partner Archimedes Labs http:// www.archimedeslabs.com Experienced and highly motivated Board and Executive team with a proven track record in fast-tracked advancements in micro to mid cap companies Tight capital structure with the top 10 shareholders holding >20% of the issued shares Strong cash position through two over-subscribed capital raisings which is suffjcient to cover operations and implement the signifjcant Company growth strategy Track record of delivery with signifjcant milestones achieved in just over a six month period, including the launch of 100%

• wned Home Open and

several strategic acquisitions in Australia and the United States 5

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company structure

02

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• 1. Fee for Service

Division

Through the Fee for Service Division, The Company has built a team of highly talented and focused graphic designers, illustrators and mobile developers who specialise in iPhone, iPad and Android app development.

• 2. Venture Capital

Division

The Venture Capital Division focuses on strategic acquisitions in technology companies

• globally. Applabs

will generally take an initial position in these companies and then guide them through the next phase of growth. These companies will all have a view to listing as stand alone entities in the future and Applabs can help with this via its positions in ASX shell companies.

• 3. Internal Product

Division

Through the internal development division, Applabs is able to develop cutting-edge mobile applications including Applabs 100% owned real estate portal Home Open.

Building a world-class technology Company by implementing a unique three-pronged strategic business model

2.1 Business Model

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2.2 Company Structure

Applabs Technologies Ltd ASX:ALA

Positiv Flo Pty Ltd Positive Flo Liberty Resources Ltd ASX:LBY

5% 6.4%

Intercept Minerals Ltd ASX:IZM GB Energy Ltd ASX:GBX Applabs Technologies LLC Snaptic

3.14% 3.8% 100% 90%

Home Open

100%

Electronic Pain Assesment Technologies Pty Ltd EPAT

15%

RosterElf Pty Ltd RosterElf

25%

PAY2DAY Solutions INC Pay 2 Day mppAPPS’s Inc xTV just.me 2014 INC Chat Centre Context Plane Inc Context Plane

4.48% 5.75%

>1.25% >1%

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2.3 Fee for Service Division

The Applabs Fee for Service Division’s team specialises in delivering high-quality, forward-thinking mobile apps across iPhone, iPad and Android devices. The division is spearheaded by two outstanding individuals with a wealth

• f experience in Sales and Marketing in the technology and app space:

Chloe Constantinides

COO (Chief Operating Offjcer ) Chloe is a creative, cross-disciplined marketing specialist, with digital know-how and wide-ranging professional experience. Qualifjed and awarded in Communications and Interactive Media, Chloe has had varied levels of input into the successful marketing strategies for companies in advertising, electronics, aviation, events and the not-for-profjt sector. Notable work includes working on a climate change campaign for the United Nations in NYC and more recently marketing VIP airport facilities, successfully welcoming A-list celebrities into Australia. Chloe is also well-versed in HTML, CSS, JavaScript, jQuery and PHP , which gives her a good foundation for understanding and managing technical projects.

Jesse Hill

CBDO (Chief Business Development Offjcer) Jesse has a range of experience that covers both the private and public sectors. Jesse holds an possesses Honours in Psychology from the University of WA, as well as post graduate qualifjcations in Regional and Economic Development. This gave him the opportunity to work under the supervision of the Psychologist for the Fremantle Dockers and Olympic gold medal winning Australian Men’s Hockey team. This experience taught Jesse valuable critical thinking skills and a deep understanding of human behaviour. Jesse spent a number of years working in Economic Development roles for both State and Local Government, before making the move to the private sector where he has spent the last four years managing digital agencies. During this time he has had the

• pportunity to deliver a number of software and mobile

app products for clients such as The West Australian, City of Perth, City to Surf and the Australia Day Skyworks. Chloe and Jesse are supported by some of the brightest stars in the app development and design industry, with extensive experience in developing apps for clients across multiple industries including: business service, consumer products, gaming, events, entertainment, government, real estate, education and health. Through the Fee for Service Division Applabs has established close partnerships with the following clients: Please visit our website www.applabs.com.au to meet the Applabs Fee Service team. 9

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2.4 Venture Capital Division

xTV – (USA)

Since listing the Venture Capital Division, Applabs has acquired and retained equity stakes in several cutting edge technology companies including: www.xtv-inc.com Backed by Microsoft and health care giant UST Gloabal, xTV allows companies to create their own online, real-time TV network. xTV allows users to combine all

• f their streaming media into a branded, real-time and interactive TV network,

giving the power of information back to the users in a controlled and informative single platform. TV is the next evolution of the ‘website’ and xTV is pioneering this evolution. Cisco predicts by 2017 that 70% of all internet traffjc will be video content.

PAY2DAY Solutions – (USA)

www.pay2daysolutions.com PAY2DAY is an easy, subscription-based tool that allows customers to pay bills using SMS technology. The system is capable of reducing average invoice processing costs by as much as 500%. The Company is partnering with Telescope Inc., a cross-channel SaaS platform that manages over 1.5 billion consumer mobile and digital interactions every year for clients including American Idol, NBC Universal, CBS, Scripps, Cricket Wireless and Sprint. The PAY2DAY advisory board includes Senior Executives from industry leaders such as Apple, PayPal and Bank

• f America.

RosterElf – (Australia)

www.rosterelf.com The magically simple 100% cloud based Roster Elf has developed an online staff rostering app which has signifjcant commercial opportunity across a range of businesses globally. The unique app has been designed with the end user, business

• wners and managers in mind. The result is an incredibly smart, simple and fmexible

system that makes rostering effortless. The new Clock On – Clock Off feature is just

• ne of the innovative additions to this already versatile product.

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Electronic Pain Assessment Tool (ePAT) – (Australia)

ePAT is the world’s fjrst 3D facial recognition and emotion app aimed at the detection of pain in adults. ePAT is being developing by Curtin University Professor Jeff Hughes and his team, which also comprises of lecturer Kreshnik Hoti and PhD candidate Mustafa Atee. By automating the facial recognition component, the application will provide an objective way to detect an accurate level of pain in non-communicative people, such as patients with dementia.

Chat Center – (USA)

www.chatcenter.me Part funded by Google Ventures, Chat Center has developed software which allows any user to chat with another user, irrespective of which chat app they

• use. The major problem with current mobile chat app is that it is a fragmented

market and users can only chat with each other if they both use the same app (WhatsApp, Skype, Line etc). Chat Center allows users to chat with each other irrespective of which chat app they use. Therefore a user with WhatsApp is able to chat with a user who has Viber, allowing chat to become universal.

Positiv Flo – (Australia)

This innovative product offers a fresh approach to the health and fjtness

• industry. The Positive Flo app offers an easy to adopt service and has the

ability to be monetised immediately. The Venture Capital Division looks to reduce investment risk by targeting companies with the following criteria: Backed by investors who are market leaders in their respective industries Strong, experienced and entrepreneurial management Innovative product and idea with the ability to be monetised quickly Sound Advisory Board High probability and suitability for a potential ASX listing

ePAT

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Combining over 30 years of equity market experience, the Applabs Board and its due diligence team have embarked upon an active and innovative investment style. The precision in its decision-making gives Applabs the ability to make calculated, opportunistic investments such as its recent investment in a number of ASX listed shell companies and a verifjcation of its investment style by a recently announced reverse listing of xTV into ASX listed Intercept Minerals (ASX:IZM). Applabs has acquired and retained equity stakes in several ASX listed companies including: Liberty Resources Ltd – (ASX LBY) Intercept Minerals Ltd – (ASX IZM) GB Energy Ltd – (ASX code GBX) Acquired 6.4% shareholding Applabs nominee elected to board Assisting the company in sourcing technology opportunities Acquired 2.7% shareholding (subject to shareholder approval) Subscribed for 25M shares at $0.0002 Successfully introduced xTV transaction Acquired 3.8% shareholding (subject to shareholder approval) Subscribed for 25M shares at $0.002 12

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2.5 Internal Product Division

Applabs has leveraged from the expertise of the design and development team to create an Internal Product Division

• f the Company, which has several cutting edge apps in various stages of development.

The most advanced Internal Product app is the 100% owned Home Open. Home Open is a highly mobile focused real estate portal designed to allow consumers to easily and effjciently fjnd properties to buy or rent. Home Open allows consumers the unique ability to search for properties based on their current location and proximity to homes open for inspection in real- time. Through revolutionary iBeacon technology real estate agents are able to communicate directly with consumers through push notifjcations. The launch of Home Open comes at an opportune time as agents across Australia continue to rally together against the continued cost pressures of the major real estate portals. Home Open is free to download for consumers and free for real estate agents to list properties. Home Open is the only real estate portal outside of the majors or institute backed platforms which is available

• n web, iPhone, iPad, and Android.

Monetisation for Home Open is multi layered through white label sales, advertising, iBeacon sales and agent back-end portal subscription fees. Home Open aims to become the third major real estate portal in Australia.

Home Open

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Proven Track Record

Since listing, Applabs has added signifjcant value to shareholders by delivering substantial milestones ahead of schedule as well as implementing the strategic growth strategy.

Successful re-listing on the ASX

December 2013

Completion of Home Open Application Option to acquire stake in cloud based online staff rostering company Roster Elf

January 2014

Online acquisition of Roster Elf completed

February 2014

Successful capital raising of $3,864,000 to accelerate the development and release of the Home Open application

March 2014

Home Open App signs with Australia’s largest real estate CRM and achieves fjrst iPhone white label sales First iBeacon Technology revealed for Home Open App Partnership with prominent investors Archimedes labs announced to jointly collaborate and fjnance technology start-ups

May 2014

New contract signed with Positiv Flo for health and fjtness industry Home Open App debuts in Top 20 on Apple’s App Store – Real Estate Establishment of US based 100% Applabs Technologies owned subsidiary Partnership secured with strategic Silicon Valley investors, Archimedes Labs Applabs acquires stake in Microsoft backed-xTV Substantial holding in Liberty Resources Limited acquired Investment in Google Ventures funded Chat Center App Home Open signs with last major real estate CRM

June 2014

Applabs invests in World-First Facial Recognition Pain App xTV receives exclusivity offer from Intercept Minerals UST Global announces US$2M investment in xTV Acquires stake in USA subscription based, bill payment PAY2DAY solution

July 2014

Roster Elf appoints Applabs to develop iPhone, iPad and Android application

August 2014 14

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As part of the Company’s growth strategy, Applabs intends and continues to: Open a fully staffed Sydney offjce early next year to capture growing demand for apps on the Eastern seaboard Review a number of suitable acquisitions in the app development space Realise gains in a number of holdings via the listing of these companies on the ASX Expand upon its active, innovative and opportunistic investment style Deliver to the market its own innovative products, developed in-house Minimise corporate and administrative costs Reduce investment risk by co-investing with some of the world’s largest enterprises and experienced fjnanciers

The growth plan focuses on evolving the existing revenue model, developing our own apps and also taking strategic equity interest in high quality technology companies Growth Strategy

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2.6 Peer Comparision

Mint Wireless Ltd Bulletproof Group Ltd My ATM Holding Ltd Shoply Ltd Isonea Ltd Icar Asia Ltd Moko.Mobi Ltd Adslot Ltd Mobile Embrace Ltd FatFish Internet Group Ltd Digital CC LTD Applabs Technologies Ltd Online Payment Sytems Cloud Storage Online Security System Online Sales Asthma App “AsthamaSense” Car App/Website in Asia Apps Web and App Design and MobileAdvertising Mobile Advertising and Branding Incubator Bitcoin Miner and Trader App Development and VC Fund 112m 43m 237m 13m 57m 290m 117m 110m 94m 32m 57m $9.75m 9.4m 2.2m 0.5m 3.5m 8.2m 14.6m 16m 3.3m 10m 2.6m 4.8m $5.35m 102m 41m 236.5m 9.5m 48.8m 275.4m 101m 106.7m 84m 29.4m 52.2m $4.4m Company Code Activities Mkt Cap Cash EV Price Move last 12 months 700% + 900% + 1100 + 200% + 300% + 270% + 220% + 400% + 25% + 65% + 15% + MNW BPF MYA SHP ISN ICQ MKB ADJ MBE FFG DCC ALA

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application market

03

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3.1 Australia’s App Development Market

Latest fjgures show Australians have downloaded one billion apps since they became available fjve years ago, including more than 700 million on iPhones, 64 million on iPads and more than 230 million on Android devices. The industry was effectively non-existent around 7 years ago. The industry is estimated to have grown nearly 300-fold, or at an annualised 177.2%, in the past fjve years, to reach $294.5 million in 2012-13. One of the most signifjcant factors for this growth is the rising use of the smartphone not just in Australia, but worldwide, raising the demand for developers as smartphone owners attempted to take advantage of their smartphones as much as possible. (Ibis World)

Business Location

2.5%

SA

5%

WA

5%

ACT

16.3%

QLD

20%

VIC

51.2%

NSW

$294.5m

Revenue

177.2%

Annual Growth 08-13

11.3%

Annual Growth 13-18

$147.3m

Profit

$95.1m

Wages

364

Business 18

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3.2 Global Market Data

Estimated 268 billion apps will be downloaded globally every year by 2017, or about fjve apps per device, as more devices are sold around the world. This equates to an online app market which is expected to be worth $US77 billion by 2017. Mobile app stores saw annual downloads reach 102 billion in 2013, up from 64 billion in 2012. Total revenue in 2013 reached $26 billion, up from $18 billion in 2012. Free apps accounted for 91 per cent of total downloads in 2013 whilst in-app purchases (IAPs) will account for 48 per cent of app store revenue by 2017, up from 11 per cent in 2012.

Free Downloads Paid-for Downloads Total Downloads Free Downloads % 57,331 6,654 63,985 89.6 92,876 9,186 102,062 91.0 127,704 11,105 138,809 92.0 167,054 12,574 179,628 93.0 211,313 13,488 224,801 94.0 253,914 14,778 268,692 94.5

2012 2014 2016 2013 2015 2017

Mobile App Store Downloads, Worldwide, 2010-2016 (Millions of Downloads)

Source: Gartner (September 2013)

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Contact Us

+61 8 9388 9968 patrick@applabs.com.au

Patrick Glovac Charles Thomas

+61 8 9388 9968 charles@applabs.com.au +61 8 9388 9968 rocco@applabs.com.au

Rocco Tassone Stuart Kidd

+61 8 9388 9968 stuart@applabs.com.au +61 2 8288 8602

Media Enquiries

jmm@lccir.com

Jane Morgan

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