Preliminary Results Presentation May 2018 Confidential 1 - PowerPoint PPT Presentation

Preliminary Results Presentation May 2018 Confidential 1

Presentation Team Subash Menon Nicholos Hellyer Managing Director Finance Director Nic, is a Chartered Accountant and former Subash co-founded Pelatro in April 2013. investment banker of over 25 years of Prior to Pelatro, Subash was the CEO and experience. Nic spent the majority of Founder of Subex – a company he his banking career at UBS and HSBC, transformed from a systems integrator in advising on a wide range of transactions telecoms hardware to a global leader in including public takeovers, private M&A, telecoms software for business IPOs and other equity fund raisings. Nic has optimisation. Subash also guided Subex also spent time in industry as CFO of Buddi through a successful IPO in 1999 and Limited, and is currently consultant to Opus through seven acquisitions in the UK, US Corporate Finance. and Canada. 2 Confidential 2

Overview ▪ Founded in 2013, Pelatro has developed and deployed its proprietary technology, mViva, to provide precision marketing, particularly for Telcos ▪ IPO in December 2017 raising £3.8 mln for the company, at 62.5p per share ▪ mViva uses Big Data analytics to channel the right offer, to the right customer, at the right time ▪ Pelatro’s precision marketing delivers Telcos up to 5% incremental revenue per year ▪ Existing customer base includes Tier 1 Telcos in developing markets ▪ Profitable, cash generative and strong revenue visibility ▪ Headquartered in the UK, with subsidiaries in US and Singapore and software development in India, employing 60 people ▪ Founding team has track record of execution ▪ Recently signed largest ever contract for $1.7 mln with a Central Asian OpCo of a Western European Telco 3 Confidential 3

Highlights – 2017 ▪ Revenue of $3.15 mln, up 161% (2016: $1.21 mln) ▪ Adjusted EBITDA $2.0 mln (2016: $0.5 mln); PBT $1.8 mln (2016: $0.4 mln) ▪ Adjusted EPS of 8.9c (2016: 2.2c) ▪ Revenue mix: License (72%), Gain Share (15%), Services (5%) and Hardware (8%) ▪ Net cash of $3.1 mln following IPO at year end ▪ Added 4 new customers taking the total to 7 ▪ Acquisition of Software Development Centre in Bangalore, India to bring development and support fully in-house 4 Confidential 4

The Market ▪ In the telecom industry, emerging markets have faced tougher competition, making it necessary for them to be more innovative with marketing initiatives ▪ Developed telecoms markets seen as mature and ex-growth; always looking to increase ARPU to drive top line ▪ Pelatro has developed proprietary technology which is end-to-end, robust, flexible and easy to use ▪ Competitive positioning – chosen by Tier 1 Telcos to replace solutions from IBM, Oracle etc. ▪ Pelatro’s strong position in emerging markets places the Company well to enter new geographies in the developed markets CSPs lag behind other verticals in rolling out comprehensive MCCM capabilities. The market offers good growth opportunities for vendors. There are a small number of CSPs, mostly in emerging markets, which will have 50 different real-time, multichannel campaigns — most are still working with one or two campaigns. Multi Channel Campaign Management Report 2017 Gartner Inc. CSP – Communications Service Provider MCCM – Multi Channel Campaign Management 5 Confidential 5

Telco Market Dynamics Average Revenue Per User (ARPU) Subscriber addition dropping dropping Unique mobile subscriber penetration ( global average ) ARPU Mobile subscriber penetration Subscriber growth (year-on-year) Source: Strategy & Research and Analysis 2017 Source: GSMA Intelligence 2016 6 Confidential 6

Precision Marketing Peter ▪ Marketing to a Segment of One (N=1) ▪ Highly relevant offers ▪ Contextually connected offers ▪ Closed loop marketing Margaret Using data-driven insights to deliver the right message, to the right person, at the right time, through the right channel 7 Confidential 7

Pelatro Methodology ▪ Generate a detailed profile for each subscriber by collecting all available data from different data sources within the Telco’s operations ▪ Generate personalised campaigns that will be relevant to each individual subscriber, on the basis of the analysis of profile and behavioral data available ▪ Dispatch campaigns through relevant channels, track response and fulfill rewards ▪ Keep improving the efficacy of the campaigns through machine learning 8 Confidential 8

Proprietary Technology Intelligent N Dimensional Vector search framework Smart Hypercube Based data modelling Nimble In-Memory distributed cache mViva deploys customised and proprietary Big Data technology to deliver end-to-end solution – patent filing in process for IP protection of highlighted technologies 9 Confidential 9

Global Footprint Kazakhstan UK US Bangladesh Morocco Cambodia Bahamas Sudan Singapore Sri Lanka Malaysia Office Locations Customer Locations 10 Confidential 10

Pipeline ▪ Asia – 2 nos. ▪ Africa – 12 nos. ▪ Central & Eastern Europe – 2 nos. ▪ Central and Latin America – 4 nos. 11 Confidential 11

Robi Axiata – Case Study Robi Axiata is the 2 nd largest mobile operator in Bangladesh ▪ Previous providers: UK company, Business Logic Systems (wholly owned by NASDAQ listed Evolving Systems Inc.) could not meet Robi’s requirements. FlyTxt replaced them through a conventional RFP, but could not implement ▪ Robi resorted to a different process and invited various providers (IBM, SAS, Intersec, Lumata, Pelatro and others) to demonstrate a set of use cases. This process was repeated three times as the use cases became more complex and some providers were shortlisted ▪ Those on the final shortlist were thoroughly examined on a number of technical aspects like product architecture, deployment architecture, scalability, high availability, computing environment etc. and Pelatro was chosen for a Proof of Concept (PoC) implementation ▪ Upon successful completion of the PoC, Robi Axiata entered into a contract with Pelatro and paid us the recurring licence fee for 25m subscribers ▪ After a few months, Robi procured a licence for unlimited subscribers 12 Confidential 12

Robi Axiata – Case Study Contd. ▪ Benefits for Robi Axiata ✓ Campaign take up rate doubled ✓ RoI of 8 to 10 months Incremental revenue of US$ 3 mln in the 1 st year (including the ramp up period) going ✓ up to US$ 4 to 5 mln from the 2 nd year onwards ▪ Benefits for Pelatro ✓ Large and well respected network belonging to the Axiata Group as reference, with operations in 8 countries ✓ Contracts won with other Axiata Group opcos like Smart, Cambodia and Dialog, Sri Lanka ✓ Other opcos of the Axiata Group are in discussion with Pelatro ✓ More opcos of the Axiata Group opting for mViva from Pelatro demonstrates their appreciation of mViva and their confidence in Pelatro 13 Confidential 13

Telco Market Opportunity – Medium Term Total : 12 Target Group : 5 Total : 160 Target Group : 105 Total : 34 Target Group : 26 Total : 56 Target Group : 46 Total : 140 North America Target Group : 120 Total : 116 Latin America Target Group : 60 Africa Europe 362 Middle East APAC ▪ Overall market forecast to grow to US$ 2.7Bln in 2019 ▪ CAGR from 2014 to 2019: 19% Source: Markets & Markets 2016 14 Confidential 14

Revenue Models Managed Services Licence Pelatro earns a fixed monthly fee for providing the product Licence: Pelatro licenses the and managing the operations product with additional licence fee based on growth of subscribers in the network Customers: Tele2 Revenue Gain Share Includes on-going maintenance income ranging from 10-15% of the cumulative licence fee and Change Requests Pelatro earns a share of the monthly revenue gain generated by our product – Customers: 10% to 20% All other customers including Tele2 Customers: Bahamas Telecom Sudatel Expresso 15 Confidential 15

Customer Concentration No. of Customers – 3 No. of Customers – 1 2016 2015 No. of Customers – 7 2017 Increasing diversity of customers and regions – reducing customer concentration over time 16 Confidential 16