Investor Presentation November 2016 1 For personal use only - - PowerPoint PPT Presentation

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Investor Presentation

November 2016

For personal use only

DISCLAIMER

Statements and material contained in this Presentation, particularly those regarding possible or assumed future performance or potential growth of the Company, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law none

• f the Company, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault of negligence, for any loss arising

from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness or any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances.

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ASX:FZO

Innovative cyber safety platform provider to consumers, schools & telcos. Targeting a fast growing and underserved market segment. Founded in 2013 by four telco & technology executives. Raised $9.5m to date including $6m IPO in July 2016 (3X oversubscribed). Strong direct to consumer, partner and wholesale business models. Live in AU and USA and in Philippines through wholesale with major telco PLDT. Recently acquired leading school cyber tech Sonar & MyNet. Accelerates commercialisation and provides immediate access to 200,000 users in Australia/USA.

Post TNT deal1 Share price ~20c Shares on issue 61,977,706 67,144,372 Performance shares2 28,000,000 30,999,997 Options3 18,474,709 24,474,709 Market Cap (at 20c) $12,395,541 $13,428,874 Cash (at 30 Sep) $4.8m

1 Assume shareholders agree Sonar/MyNet acquisition 2 Three performance based tranches. Refer IPO prospectus. 3 Advisor, board and performance based employee options.

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The Problem

SEXTING | DIGITAL DEMENTIA | INFOMANIA | BULLYING | STALKING | GROOMING | SCREEN TIME DIGITAL FOOTPRINT | PORN ADDICTION | GAMBLING ADDICTION | SEXUALISATION | IN-APP PURCHASES

45% 4700% 81% 90% 60% 70%

<25%

72k

pre-teens using unsafe social media teen girls feel pressured to share nudes increase in porn web-search after school boys under 16 have visited porn sites girls under 16 have visited porn sites teens believe cyber-bullying is endemic teens get enough sleep boys in Australia with problem gambling

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Fragmented Approaches

COMPLEX | EXPENSIVE | NARROW FEATURES | NOT-INTEGRATED | POOR SUPPORT

Home School Carrier Enterprise

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The Impact

<50% <14%

parents try anything (most give up) kids mobile devices have any controls

US$2Bn

+10% ~2-4%

global parental control software market

• f the potential market captured today

year on year growth

Cyber Safety Sexting

A HUGE AND UNTAPPED MARKET

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Limited reach | Free internet & privacy | Legacy business models

can’t solve it!

The majors

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Our universal solution

SIMPLE | ONE POLICY EVERYWHERE | AFFORDABLE | VALUE ADDING | ADVANCED FEATURES

Family Zone App Family Zone Client Family Zone Box Family Zone FCL FZ Firewall

Smartphones Tablets

Family Zone Mobile

PCs & Macs Filtered Mobile Data Consumer & Small Business Consumer & Business School & Enterprise

Family Zone Cloud Platform An integrated ecosystem of cyber safety & security products serving parents, communities, enterprises and the providers of access. 8

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Integration creates a compelling solution: ✔ Full transparency at school & home ✔ Safe mobile devices on campus ✔ Low cost / parent pays models ✔ Harmonised policies + Cyber Expert ✔ Advanced tech (SSL decryption and more)

✔ Cyber security solution for Education ✔ Owned by Tesserent (ASX:TNT) ✔ Global solution provider ✔ 180 installs live in AU ✔ 47 going live in USA ✔ Circa 200,000 kids online & growing ✔ Digital citizen/welfare functions ✔ Includes tech on FZO roadmap ✔ Schools “influencer” not valued

Acquisition of Sonar MyNet

Business Case

Family Zone consumer

• fferings part of school

security offering Family Zone consumer services recommended to parents Cyber Experts build programmes on the Family Zone platform

Established global distribution

Engagement of Rob Smyth & Nick Conolly

Immediate revenue: +$850k/a & growing

$1m @ 30c placement to Rob Smyth

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Our products

Consumer Education Enterprise

Family subscriptions Cyber Expert subscriptions Services ~ $100pa Services ~ 90% margins Family Zone Box ($89) Subscriptions per user Services - high margin Cost recovery on hardware License fees per server Integrated consumer tech Services ~ 100% margins

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Our products

Consumer, Direct 11 Consumer, Wholesale

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Our products

Education Enterprise

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Points of Difference

Distribution

(Access Partners)

Advanced

(All Features)

Affordable

(Designed for scale)

Eco-System

(Designed to adopt)

TRUSTED | RESPONSIVE | STICKY | SIMPLE

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Strong

(In Access Points)

Simple

(Cloud controlled)

Embedded inside schools & communities

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✔ Wholesale co-branded ✔ Retail bundled offers ✔ Targeting T1 carriers in SEA

~ 400m subscribers

✔ Developed world targets AUS & USA MVNOs

Regional ISPs in USA

Channels

Direct to Consumer Carriers Distributors

✔ Direct & inbound ✔ Affiliates ✔ Schools ✔ Cyber Experts ✔ Retail partners

Enterprise security Telco carrier SME

Access providers

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Scenarios

School scenarios 227 schools 227k families $2.8m $5.5m $8.2m 10% 20% 30% 300 schools 300k families $3.7m $7.3m $10.9m 400 schools 400k families $4.9m $9.7m $14.5m Service revenue at take-up scenarios Philippines scenarios PLDT Fixed 2.4m target homes $0.8m $1.6m $4.0m 1% 2% 5% Smart Mobile 12m target kids $1.8m $3.6m $8.9m

5.5m 100m

Families

45m 147m

Philippines Indonesia

10k 100k

Schools

75k 170k

Addressable Markets

The numbers described above are based on the assumptions stated in the table. These are not a forecast of FZO’s future revenue.

Revenue assumptions: School families: AU$120/yr per Zone; Philippines: AU$1.1/m per Service; 2.5 services per Fixed Zone.

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16 ✔ Launched Aus Jul 2016 ✔ National radio Nov 2016 ✔ Soft live USA Dec 2016 ✔ 12 Cyber Experts ✔ Computer Troubleshooters ✔ School ICT providers ✔ School booklists ✔ MVNO discussions

Progress

✔ 180 school installations in AU ✔ 47 school installations in USA ✔ Access to +200,000 parents ✔ Tesserent global reseller

Consumer Education Partners

Registered Devices

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Progress

Carrier Wholesale

✔ Launching with PLDT Nov 16 ✔ Active discussions in SEA ✔ Supported by Fidelio

Enterprise

✔ Late stage discussions with

major carriers

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The Team

Experienced Global Telecom, Technology & Sales Executives Consulting | Software | Education | Start-up | Retail Distribution

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Tim Levy

Managing Director

Crispin Swan

Executive Director

John Sims

Non Exec Chairman

Phil Warren

Non Exec Director

Rob Smyth VP Sales

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Strategy

✔ Massive, global, growing & untapped market ✔ Consumer model -> momentum ✔ School model -> leverage ✔ Carrier model -> acceleration ✔ Cyber experts -> trust

Team

✔ Relevant experience & personally invested

Value Adds

✔ Content, big data & trade sale 19

Summary

Positioned for acceleration

✔ Generating revenue in AU, USA & Philippines ✔ Wholesale contract with a major T1 telco

In discussions with many others

✔ Embedded in 230 schools ~ 200k families

Leverage for consumer sales Q1 17 Expanding school footprint via resellers

✔ Sales distribution & VP in place ✔ AcquireBPO contact centre live

Globally scalable

✔ Broadest cyber solution in any market

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