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INVESTOR PRESENTATION Global technology and value-added solutions group that supports electronic payments acceptance in a multi-channel environment SAFE HARBOR STATEMENT Net Element, Inc. is traded on the NASDAQ Capital Market under the Dcker


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SLIDE 1

INVESTOR

PRESENTATION

Global technology and value-added solutions group that supports electronic payments acceptance in a multi-channel environment

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SLIDE 2

www.netelement.com

SAFE HARBOR STATEMENT

2 www.netelement.com

Net Element, Inc. is traded on the NASDAQ Capital Market under the Dcker symbol “NETE”

This presentaDon is for discussion purposes only. All prices and rates referenced herein are indicaDve and subject to market condiDons. The material is based upon informaDon that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. The material available in this presentaDon may contain forward-looking statements, which are subject to risks, uncertainDes and assumpDons. In some cases, you can idenDfy these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expect”, “plan”, “anDcipate”, “believe”, “esDmate”, “predict”, “opDmisDc”, “potenDal”, “future” or “conDnue”, the negaDve of these terms and other comparable terminology. Such forward-looking statements are based on current plans, esDmates and expectaDons and are made pursuant to the Private SecuriDes LiDgaDon Reform Act of 1995. Forward-looking statements are based

  • n known and unknown risks, assumpDons, uncertainDes and other factors. The Company’s actual results, performance and

achievements may differ materially from any future results, performance, or achievements expressed or implied by such forward- looking statements. We do not assume responsibility for the accuracy or completeness of any forward-looking statement and you should not rely on forward-looking statements as predicDons of future events. We are under no duty to update any of these forward- looking statements to conform them to actual results or revised expectaDons. This presentaDon contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accounDng principles. Such non-GAAP financial measures include: general and administraDve expense before non-cash compensaDon expense. Management uses these non-GAAP financial measures to assess the performance of Net Element’s core

  • business. Net Element believes that these non-GAAP financial measures provide meaningful addiDonal informaDon about Net Element

to assist investors in evaluaDng Net Element’s operaDng results. These non-GAAP financial measures should not be considered as a subsDtute for operaDng results determined in accordance with GAAP and may not be comparable to other similarly Dtled measures of

  • ther companies.

Any investment in Net Element will be subject to certain risks related to the nature of the Company’s business and the structure and

  • peraDons of the Company. Any investment in the Company should be made only with an appreciaDon of the applicable risks, which are

described in the Company’s filings with the SEC.

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SLIDE 3

www.netelement.com

NET ELEMENT OVERVIEW

  • Net Element, Inc. (NASDAQ: NETE) (“Net Element”) is a global

technology and value-added soluDons group

  • Provides secure, reliable, easy-to-use and cost-effecDve

acceptance, processing, support, authorizaDon and se\lement services for tradiDonal, mobile and alternaDve payments in a mulD-channel environment

  • Fully-integrated payment soluDons incorporaDng fraud

management and tokenizaDon technologies

  • Developing decentralized blockchain ecosystem to act as a

framework for a number of value-added payment services

  • Diversified client base with strong recurring revenues

COMPANY OVERVIEW

TOTAL VOLUME TOTAL TRANSACTIONS ONLINE USERS

$2.8

BILLION

154

MILLION

20+

MILLION

KEY STATISTICS - 2017

3

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SLIDE 4

www.netelement.com

INVESTMENT HIGHLIGHTS

LARGE & GROWING INDUSTRY

  • Large and growing market with favorable economic trends
  • The use of non-cash forms of payments including mobile payments has

steadily increased over the past then years and conDnues to climb RECURRING REVENUE BUSINESS MODEL

  • Focused on fast growing and highly profitable market segments
  • Proved business in the United States with recurring revenues
  • Diverse, low-risk, recession proved recurring revenue stream
  • Strong established customer & partner base

RESILIENT OPERATING LEVERAGE

  • Resilient business with strong recurring revenue, diversified customer

base and good visibility

  • Full front and back office operaDons including risk, underwriDng,

deployment, acDvaDon, client services, data entry and retenDon

  • Significant, untapped opportuniDes for expansion and growth

PROVEN MANAGEMENT TEAM

  • Track record of scaling businesses and delivering shareholder value
  • Proven achievements in new product launch
  • Proven achievements in new market development
  • Relentless focus on value creaDon and growth

4 www.netelement.com

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SLIDE 5

www.netelement.com

COMPANY HIGHLIGHTS

POSITION FOR GROWTH

  • Received $7.55 million insDtuDonal investment to support growth
  • Ensured conDnued compliance with NASDAQ lisDng requirements
  • Launched business unit focused on blockchain technology

FOCUS ON VALUE-ADDED RELATIONSHIPS

  • Expanded relaDonships with financial insDtuDons
  • Expanded service offerings to over 100 payment methods internaDonally
  • Annual revenues increased 35%

ACQUISITION OF ONLINE PAYMENT PLATFORM

  • AcquisiDon of PayOnline, leading online payment plahorm
  • Expanded PayOnline to selected emerging markets
  • Annual revenues increased 89.5%

OPERATIONAL OPTIMIZATION

  • Debt reduced from $31 million to $3 million
  • G&A reduced from $12 million to $7 million, excluding non-cash items
  • $10 million credit facility to implement strategic iniDaDves

FOCUS ON MOBILE PAYMENTS AND VALUE-ADDED TECHNOLOGIES

  • AcquisiDon of Unified Payments
  • AcquisiDon of ApDto
  • Divests of all non-core assets, focuses on financial technologies

2017 2016 2015 2014 2013

5 www.netelement.com

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SLIDE 6

www.netelement.com

www.netelement.com

We focus on maximizing opportuniDes for our brands. Our vision is to set the standard for global cross-channel payments acceptance and value-added service offerings with focus on creaDon of unified global transacDon acceptance ecosystem

PORTFOLIO OF BRANDS

www.netelement.com

SalesCentral

One of the leading providers

  • f payment acceptance

soluDons in the United States All the features and building blocks to make global commerce a reality Visual POS soluDon includes all that the business needs to streamline operaDons Seamlessly redefine and modernize experience at the POS and behind the scenes No fees. Merchants get the full purchase price for the transacDon Enterprise-class infrastructure tools for back-office processing Our technology development team brings ideas to life Payment acceptance without

  • borders. Fully-integrated
  • nline processing plahorm

Allow users to make purchases by charging payments to their mobile phone bill

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www.netelement.com

MANAGEMENT TEAM

OLEG FIRER

Chief ExecuDve Officer, Director

STEVEN WOLBERG

Chief Legal Officer

JONATHAN NEW

Chief Financial Officer

ANDREY KROTOV

Chief Technical Officer

DAYAN MARTINEZ

Investor RelaDons

VLAD SADOVSKIY

Head of Integrated Payments

ALEXANDER BORISOV

Head of Online SoluDons

SHAWN BROWN

Head of Risk Management

GIOVANNI DI FEBO

Head of Acquiring & Compliance

CHRISTA SHOOK

Partner Growth

KENES RAKISHEV

Chairman Noted global industrialist

DREW FREEMAN

Director 30+ yrs payments experience

HOWARD ASH

Director international value-added specialist

JON NAJARIAN

Director CNBC cast member “Hallime Report”

JAMES CAAN

Director accomplished actor & director

EXECUTIVE MANAGEMENT TEAM EXPERIENCE

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BUSINESS LINE MANAGEMENT BOARD OF DIRECTORS

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www.netelement.com

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For the five-year period ending December 31, 2017, Net Element has executed several complex iniDaDves and conDnued to deliver double digital percentage year-over-year organic growth

REVENUE GROWTH

223% GROWTH

Revenue growth over five-year period ending December 31, 2017

2013 2014 2015 2016 2017 $ 18.7 $ 21.2 $ 40.2 $ 54.3 $ 60.4

26.4%

2013-18 CAGR

www.netelement.com 8

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SLIDE 9

www.netelement.com

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RECURRING REVENUE STREAMS

We have amassed a broad porholio of value added applicaDons that leverage the growth in payments to create a diverse array of recurring revenues and differenDate us in the marketplace. Recurring service revenue is the primary revenue component for the Company

RECURRING REVENUE TRANSACTION PROCESSING DATA & ANALYTICS SOFTWARE LICENSE

TRANSACTION PROCESSING SOFTWARE LICENSE DATA & ANALYTICS Fees charged on per transacDon and processed volume basis for the payment acceptance services provided to the merchant Solware as a license (SaaS) model allows merchants to get point-

  • f-sale solware without

upfront capital expenditure Business Intelligence tools are priced based on

  • usage. Percentage is

charged over volume processed, analyzed and presented

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SLIDE 10

www.netelement.com

MARKET OVERVIEW

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The global payments industry conDnues to deliver healthy growth, with underlying fundamentals such as transacDon volumes and account balances demonstraDng even greater strength. This scenario also lays the groundwork for significant disrupDon likely to alter the dynamics between financial insDtuDons and fintechs.

Asia-Pacific EMEA LATAM North America 2013 2014 2015 2016 2021E 0.4 0.4 0.4 0.4 0.5 0.1 0.1 0.1 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.6 0.7 0.7 0.7 1.1 2014 2016 2019E 1,336 1,915 3,418 392 620 1,080 Mobile Payments Online Commerce

28% 30% 32% 34% 36%

Share of total banking, %

CAGR % 2016-21

+8% +4% +9% +6% Payments revenue $ trillions Volume $ billions 1,728 2,535 4,498 1.3 1.4 1.5 1.6 2.2 Source: McKinsey Global Payments Map Source: Sta^sta, TrendForce

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www.netelement.com

www.netelement.com

Extensive network of over 100 independent sales groups and agents, including integrators, value- added resellers, affinity and referral partners boost Company’s merchant growth

CLIENT GROWTH

2013 2014 2015 2016 2017

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Internal Sales Force focused on target verDcally and value-added services External Partners enable rapid scalability and expansion through indirect distribuDon Value-Added Resellers and Integrators focus on technology and synergeDc sales

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www.netelement.com

POWERFUL ECOSYSTEM

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  • Maintain control of their network
  • Acquire new consumers seeking

innovaCve technology under the trusted bank brand

  • EffecCve adverCsing and loyalty

channel

FINANCIAL INSTITUTIONS

  • Enables MNOs to provide full

mobile commerce soluCons including DCB, one-click, PSMS, WAP, A2P/P2A and PIN submit

  • Significant pathway for growing

consumer engagement

  • Allows fricConless commerce on

any device worldwide

  • Cloud-based plaWorm provides

enhanced security

  • Omni-channel giX and loyalty

program allowing consumers to earn points across all devices

CONSUMERS

  • Allows real-Cme engagement

with consumers

  • Maintain control of consumer

relaConship

  • Merchant-branded, white label

soluCon (“Payment as a Service”)

MERCHANTS

POS Solutions Mobile Payments Value-Add Offerings Payment Acceptance Big Data/Analytics

  • |

100+

PAYMENT OPTIONS WITH 1 Integration API 1 Back Office 1 Settlement 1 Dedicated Team

  • w ○

MULTI-CHANNEL PROCESSING

MOBILE NETWORK OPERATORS

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SLIDE 13

www.netelement.com

PREMIER RELATIONSHIPS

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INTERNATIONAL MERCHANTS MOBILE NETWORK OPERATORS FINANCIAL INSTITUTIONS

S

At Net Element we are commi\ed to finding the most innovaDve and impachul strategic partnership ideas, no ma\er where they reside

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SLIDE 14

www.netelement.com

INTEGRATED SOLUTIONS

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Card Processing Electronic Commerce Mobile Commerce Gift Cards Alternative Payments Marketing Security & Risk Management Customer Service Mobile Payments Advisory Bill Payments Business Analytics Reporting Tools

  • Turn-key

Integration Loyalty / Rewards Point of Sale

COMPREHENSIVE SOLUTION SET DISTRIBUTION

INTERNAL SALES FORCE EXTERNAL PARTNERS 1 2

  • Established sales force and market expertise
  • Motivated team leaders
  • Access to proprietary commission platform
  • Contracts to elected partners & distributors

in North America, Europe, CIS and Asia

INTEGRATED TECHNOLOGY PLATFORM

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www.netelement.com

BLOCKCHAIN SOLUTIONS

15 www.netelement.com SIMPLE INTEGRATION

Offers merchants cryptocurrency payments acceptance with secure and simple API

BLOCKCHAIN ECOSYSTEM

Netevia’s “Via Protocol” will empower everyone to create decentralized customized payment products, loyalty programs and more

ACCEPT CRYPTOCURRENCY

Make it easy for the merchant to start accepting cryptocurrency in a multi- channel environment, without having to pay high fees

24/7 SUPPORT

24/7 management and support provides persistent monitoring to keep processing safe and protected

ENCHANCED SECURITY

Security of the protocol lies in the transaction blockchain ensuring safety with distributed ledger

MULTI WALLETS

Payments for users that store private keys both online and in hardware devices

MEMBER OF

(Coming Soon)

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SLIDE 16

www.netelement.com

Global technology and value-added solutions group that supports electronic payments acceptance in a multi-channel environment

investors@netelement.com https://www.linkedin.com/company/net-element/ https://www.facebook.com/netelement https://twitter.com/neteinc +1 (305) 507-8808 www.netelement.com