[PPT] - South East Asias Leading e-payments Platform 2006 Annual Results PowerPoint Presentation

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South East Asia’s Leading e-payments Platform

2006 Annual Results Presentation February 2007 Simon Loh, Managing Director

ASX/AIM: EPY

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Disclaimer

The presentation (in this projected form and as verbally presented) (Presentation) is provided on the basis that none of the Company nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Presentation contains prospective financial material which is predictive in nature and may be affected by inaccurate assumptions or by known or unknown risks and uncertainties, and may differ materially from results ultimately achieved. The Presentation contains "forward-looking statements". All statements other than those of historical facts included in the Presentation are forward-looking statements including, without limitation, (i) estimates of future earnings; (ii) estimates of future cash costs; (iii) estimates of future cash flows; and (iv) estimates of future capital

expenditures. Where the Company expresses or implies and expectation or belief as to future events or results,

such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward- looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. The Company does not undertake any obligation to release publicly any revisions to any "forward-looking statement" to reflect events or circumstances after the date of the Presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Presentation and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Presentation nor any information contained in the Presentation or subsequently communicated to any person in connection with the Presentation is, or should be taken as, constituting the giving of investment advice to any person. The Presentation does not relate to any securities which will be registered under the United States Securities Act

f 1933 nor any securities which may be offered or sold in the United States or to a U.S. person unless registered

under the United States Securities Act of 1933 or in a transaction exempt from registration.

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Summary

CY06, strong trading in core markets including Malaysia (prepaid mobile

airtime) and software services

4th quarter affected by flood, normal trading resumed in 1Q07
Optimistic for future

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2006 Financial Results

Headline Numbers 31 Dec '06 (A$m) Comment Gross Revenue Net Revenue 19.73 Strong growth in Malaysia & software services EBITDA 10.27 EBITDA margins over 50% Net Profit Before Tax 7.69 NPAT 7.61 Profit Attributable to Members 6.01 EPS 3.06 DPS 1.36 Maiden Dividend Dividend Payout Ratio** 44.4%

*204,430,568 shares on issue at 31 Dec 06 **unfranked

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How were results reached?

Product Full Year CY06 (A$m) % of Total Airtime 11.789 59.74% Software services 5.450 27.62% Others 2.495 12.64% Total 19.734 100.00%

Revenue breakdown by product:

Prepaid Airtime 59% Software Services 28% Others 13%

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Explanation of Result

Strong organic trading in core markets
Q4 affected by one-offs
Profit attributable to members 20% above IPO forecast (Dec ‘05)
Maiden annual dividend of 1.36 cents per share proposed, payout

ratio of 44%

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Update on Key Drivers

Growth Driver % Comment

1. Mobile phone penetration in core markets

20-30% Low & rising

2. Growth in handsets

20-30% pa Dynamic

3. Physical Cards / Electronic Top Up

80/20 Significant room for further shift

4. New Territories

China/India Further developments in 2007 expected

5. New Products

28% Net Revenue Software & Services

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Key issue for year trading & expectation 07 In Malaysia

Increase new products and services, e.g. act as payment collection

intermediary for non-prepaid airtime business

Widen corporate distribution channels
POS Malaysia
Malaysia ATM network

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Key issue for year trading & expectation 07 in Indonesia

Act as electronic distributor and physical card distributor for prepaid

airtime concurrently

Launch new software services, airtime distribution through SMS, GPRS

and web based reload solutions

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Key issue for year trading & expectation 07 In Pakistan

Steady progress
Significant alliance tie up with new telco (Ufone)
Growth opportunity remains intact

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Strategic Next Steps

China & India remain key priorities
Grow software services through technology including Mobiepay

Malaysia

high margin revenues
facilitate EPY’s entry into new markets
Continued growth & profitability in current markets
increasing mobile agents
new revenue streams

Strategic Next Steps:

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Business Model

Suppliers sell airtime (tickets, etc.) in bulk to EPY
EPY resells airtime (tickets, etc.) at a margin to retail agents
Cash based consumers ‘Top Up’ their airtime (or purchase event tickets) from retail outlets
Retailer receives handling margin using leased terminal
Mobile Top Up replacing scratch cards, driving EBITDA margin growth
15,000 POS terminals & 18,000 mobile agents as at 31 Dec 06

Supplier Retailer Consumer + $92 + $3 + $5

$100

product product product

financial receipts:

product

Intermediary

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Conclusions

Largest provider of prepaid mobile top up airtime in S.E. Asia
Agreements with 13 mobile operators in 4 countries with plans to enter in to new markets

(China, India)

Low risk access to high volume consumer growth in Asian markets
One of South East Asia’s fastest growing ePayment companies
Multiple growth drivers including new markets (India, China) remain intact
Current trading is strong, confident of outlook for the year

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Appendix - Fact Book

1. Long Term Financial Results (‘02 - ‘05) 2. Company information 3. Company History 4. Growth Drivers 5. Increasing mobile penetration 6. Conversion from Scratch Cards to e-payments 7. Technology switch 8. New markets in Asia 9. Opportunities for Growth in Asia 10. Board & management

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Long Term Financial Results

Note that only e-pay Malaysia contributed to ‘02-’05 Revenue & EBITDA

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Company History

1999

e-pay joint venture established in Malaysia with Nasdaq listed Euronet (EENT)

2002/03

Joint ventures with local partners established in Indonesia, Pakistan & Thailand

2004

Becomes prepaid top-up market leader in Malaysia and Pakistan

Nov 2005

Shareholders approve capital raising and name change to e-pay Asia Agrees reverse take over deal with SkyNetGlobal Limited ASX & AIM listed SkyNetGlobal suspend shares

Dec 2005

Raises A$4 million at 20 cents per share Re-lists on ASX & AIM markets (stock code: EPY) Trading on AIM commences 4 Jan 2006

Aug 2006

Purchases 100% of Mobiepay, a European communications technology company

Feb 2007

FY06 results A$6m net profits, dividend 1.36 cents

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Growth Drivers

1. Increasing mobile penetration

Mobile penetration rate low in Asia (20-30%)
Mobile penetration rates increasing (25-40% p.a)

2. Conversion from Scratch Cards to ePayments (c. 20% share)

Delivers higher margins for telcos & significant benefits for retailers

3. Commitment to enter New Markets (China, India)

$3bn market potential

4. Technology switch from fixed terminals to mobile POS

Greater flexibility for consumers
Margin benefits for EPY
Allows rapid, minimal capex, expansion into new markets
5. Alternative delivery channels for distribution
Bill payments, numbered tickets (airline, F1GP)

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(1) Increasing mobile penetration in Asia

9.5% 39.1%

Increase in mobile phone usage (from 9.5% in ‘02 to 39.1% in ‘09e)

Significant capacity for future growth in Asia
80% of mobile users in EPY’s current markets are prepaid users
Cash based economies have cultural aversion to debt & credit cards

Source: Frost & Sullivan Report

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(2) Conversion from Scratch Cards to ePayments

Delivers higher margins for telcos & significant benefits for retailers
Reduced inventory & redundancy

Prepaid Mobile Telephone Revenue by Top Up Channel Indonesia

10 20 30 40 50 60 70 80 90 100 2000 2001 2002 2003 2004 2005 2006f 2007f % Prepaid Revenue Physical Cards ATM Electronic Terminal Other

Prepaid Mobile Telephone Revenue by Top Up Channel Malaysia