Technology at Play Company Profile 2018 DFNN Inc . Confidential and - - PowerPoint PPT Presentation

DFNN Inc. — Confidential and Proprietary

Company Profile 2018

Technology at Play

DFNN Inc. — Confidential and Proprietary

COMPANY OVERVIEW

DFNN Inc. is a publicly listed company on the Philippine Stock Exchange (Ticker: DFNN). Since 1999, the Company has operated as a leading I.T. solutions provider and systems integrator, enabling its clients to compete in an increasingly technology dependent environment. Backed by its domain expertise in the financial sector, DFNN has competencies in: high volume and secure financial transactions, software/middleware development, I.T. support services, secure platform development, and turnkey implementation.

DFNN Inc. — Confidential and Proprietary

WHAT WE DO

Services we specialize in, include:

Software Design & Development Technology Research & Development Corporate Strategy Advisory M&A Advisory

DFNN Inc. — Confidential and Proprietary

OUR GROUP

DFNN Inc. — Confidential and Proprietary

CORPORATE STRUCTURE

OUR GROUP

DFNN Inc. — Confidential and Proprietary Incorporated in 2004, IEST Inc., is an I.T. solutions provider and a wholly-owned subsidiary of DFNN. As the owner and operator of multiple gaming licenses, IEST provides betting and gaming

• technologies. These licenses allow IEST to create and supply a

proprietary system and technology platform inside partnered gaming outlets. Products under the licenses are Instawin and Xchangebet. Both licenses are valid until 2033 and allow provisions for multiple platforms, computer terminals, and mobile devices. IEST customers include affiliates operating e-casino sites in areas around the Philippines.

Inter-Active Entertainment Solutions Technologies, Inc. (IEST)

OUR GROUP

DFNN Inc. — Confidential and Proprietary

Inter-Active Entertainment Solutions Technologies, Inc. (IEST)

Instawin is the trademark name of the PAGCOR regulated gaming platform utilizing server-based technology over electronic gaming machines (EGMs) providing a collection of captivating games such as: slots, table games (black jack, baccarat and poker) as well as an extensive variety of interactive and fun games. The platform consists of a Cashier Management System (CAMS) and Unified Gaming Lobby (UGL). The CAMS includes cashier module information pertaining to player profiles, cash management, terminal status, and the reporting system. The UGL is the landing page that displays all the games on the Instawin platform and allows players to transfer their credit balance from one game provider to another without cashier intervention. Cashier Management System (CAMS) Unified Gaming Lobby (UGL)

OUR GROUP

DFNN Inc. — Confidential and Proprietary

Inter-Active Entertainment Solutions Technologies, Inc. (IEST)

Software providers under the platform include some of the most reputable in the industry, such as: CYGames, Play’nGO, Playtech, Pragmatic Play, Realtime Gaming, Silvergoose 8 and Spadegaming.

OUR GROUP

DFNN Inc. — Confidential and Proprietary

Inter-Active Entertainment Solutions Technologies, Inc. (IEST)

Xchangebet is the trademark name for IEST’s development and

• peration of a sports betting exchange. It is the first and only betting

exchange license and facility in the Philippines. A bet placed by a customer must be successfully matched with another bet of a different customer for the transaction to take place. Unmatched bets in the system are not considered successful betting transactions. All winnings are automatically credited to the customer’s Xchangebet account. Xchangebet is powered by BetCRIS, one of the largest online sports betting providers in the world.

DFNN Inc. — Confidential and Proprietary

SITEMAP OF E-CASINO OPERATORS

(as of December 31, 2017) 2017

6,640

2016

5,557

2015

1,295

DFNN Inc. — Confidential and Proprietary

2015 2016 2017 H1 2018

Number of Sites 79 191 209 191 Number of EGMs / Terminals 1,295 5,557 6,460 5,659 Gross Bets (Php Million) 4,146 20,081 91,384 45,245 Gross Gaming Revenue* (Php Million) 163 817 3,696 1,809 Gross Gaming Revenue per site (Php Million) 2,063 4,277 17,684 9,471

Average Net Win Per Terminal Per Day

₱504 ₱795 ₱1,472 ₱1,742

PLATFORM EXPANSION

*Gross bets minus player payout

DFNN Inc. — Confidential and Proprietary Operating under KGI, Fastwin, is the trademark name of the PAGCOR regulated gaming platform utilizing Numbers Games and Casino Virtuals. VIRTUAL SPORTS AND NUMBERS GAMES Suite of fixed odds digit games presented as a series of virtual sports and numbers games. Games include: Roulette, Greyhound Racing, Horse Racing and Motor Racing CASINO VIRTUALS – Casino Virtuals can be played on individual terminals wherein players can join each other’s gaming sessions. – Games include Fan-tan, Sic Bo, Bacarrat and Roulette – Games can also be broadcast through streaming/live feeds.

DFNN Inc. — Confidential and Proprietary

iWave is a subsidiary of DFNN. It is one of the leading I.T. companies that specializes in On-line Transaction Processing (OLTP) and other business process

• utsource applications catering to financial institutions.

In 2018, iWave signed an MOU with CEZA and a Tokyo- listed financial services company, Traders Holdings Co.

• Ltd. This gives iWave the opportunity to be a part of the

first Asian-located Special Economic Zone focused on the continuous development of financial technologies.

Intelligent Wave Philippines, Inc (iWave)

OUR GROUP

DFNN Inc. — Confidential and Proprietary Automated Teller Machine (ATM) services Credit Card Business Online Stock Trading Web-based Remittance Services Manufacturing Business

Intelligent Wave Philippines, Inc (iWave)

iWave offers services such as:

OUR GROUP

DFNN Inc. — Confidential and Proprietary

LuckyU, Inc.

LuckyU is a wholly-owned subsidiary of DFNN. One the country's fastest growing chains of e-game lounges, LuckyU offers a wide range of gaming entertainment to its patrons. As the consumer end

• f DFNN's end-to-end gaming system, it seeks to test the gaming

waters across the country, in various cities and municipalities, and acts as the platform for pilot public testing of new games and

• fferings. It also tests new technologies, hardware innovations and
• ther developments that increase business sustainability and cost

effectivity—all towards providing greater benefits to DFNN's gaming partners. LuckyU gaming sites operate under the brand name WinCity.

OUR GROUP

DFNN Inc. — Confidential and Proprietary DTC hosts DFNN’s 24/7 customer support team which provides Level 1 support for all our partner

• perators. The network operations control center

monitors the entire technology platform. This includes end-to-end services from registration, point of sale systems, until back-end reporting to the regulator. The development team is also located in DTC. They provide continuous enhancements and integration with our game partners.

DFNN Technology Center (DTC)

OUR GROUP

DFNN Inc. — Confidential and Proprietary

Incorporated in 2000 in Singapore, PGI engages in the development and marketing of application software and the provision of internet-based, value-added services, and other related consultancy. PGI is a systems integrator and a gaming content aggregator.

PGI Systems PTE Ltd.

OUR GROUP

DFNN Inc. — Confidential and Proprietary

OUR AFFILIATES

DFNN Inc. — Confidential and Proprietary

Kirschner Games International Inc. (KGI)

OUR AFFILIATES

KGI provides gaming products and opportunities that cover both the local and international gaming markets. Its local products run the gamut of RNG Games, Virtuals, and Live Dealer Content, focused on the “Single-Event, Multi- Player” Format. Games such as Bacarrat, Roulette, Virtual Races and Ball Games are offered in the local Gaming Outlets. Through its Philippine Offshore Gaming Operator (POGO) License, KGI and its partners have the opportunity to tap into

• verseas gaming markets.

DFNN Inc. — Confidential and Proprietary

Kirschner Games International Inc. (KGI)

Kirschner Games International Inc. offers professional service for the Philippines Offshore Gaming Operators. Services include:

Project Management & Online Gaming Solutions Hardware/Software System & Integration Marketing & Distribution

• f Products

System Maintenance & Operations Technical Consultation

OUR AFFILIATES

DFNN Inc. — Confidential and Proprietary

HatchAsia Inc.

OUR AFFILIATES

Founded in 2000, HatchAsia, was originally organized to be an incubation business for fledgling start up “.com” companies. Up until 2015, HAI was a wholly-owned subsidiary of DFNN. Hatchasia has built a portfolio of projects ranging from strategic consulting, software development, land-based deployment, and back-office process management support. Today, Hatchasia leads as a solutions and services provider to several renowned companies in the Philippines and Southeast Asia.

DFNN Inc. — Confidential and Proprietary

HatchAsia Inc.

OUR AFFILIATES

Through its subsidiaries, HatchAsia operates under the following business segments:

Business Management Outsourcing Financial Technology Gaming Outlet Operations Leasing

– HatchAsia Technology Services, Inc. – HatchAsia I.T. Solutions, Inc. – Pay8 Inc. – Alta Valore Holdings, Inc. – Triple Seven Gaming, Inc. – HatchAsia, Inc. (Parent)

DFNN Inc. — Confidential and Proprietary

FINANCIAL PERFORMANCE

DFNN Inc. — Confidential and Proprietary

FINANCIAL PERFORMANCE

2017 2016 2015

Revenues Commission Income 917,911,475 208,851,923 43,738,986 Sale of Licenses 12,533,685 30,043,537 24,331,959 Services Fees & Software Solutions 31,503,014 20,904,221 58,571,723 961,948,173 259,799,681 126,642,668 Cost of Services (639,489,735) (201,756,784) (95,451,823) Gross Income 322,458,439 58,042,897 31,190,845 General & Admin Expenses (260,050,261) (129,039,215) (91,003,550) Other Income 56,593,214 29,454,538 52,631,585 Loss Before Income Tax 119,001,392 (41,541,780) (7,181,120) Benefit from Income Tax 25,764,235 4,106,661 2,055,570 Income/Loss from Continuing Operations 114,765,627 (37,435,119) (5,125,550) Net Income from a Deemed Disposal of a Subsidiary

• 61,043,185

83,405,203 Net Income 144,765,627 23,608,066 78,279,653

DFNN Inc. — Confidential and Proprietary

DFNN Inc. — Confidential and Proprietary

MANAGEMENT TEAM

DFNN Inc. — Confidential and Proprietary

MANAGEMENT TEAM

Ramon Garcia Jr.

Executive Director & Vice-Chairman

Served as President of Diversified Securities, Inc. from 1994 to 2000. Previously, Mr. Garcia was elected as Governor of the PSE (1996 to 1998, 2000 to 2001). He is the founder and director of Forbes City College Corp. and the co-founder of the Financial and Capital Market Trading Foundation where he serves on the Board of Trustees.

Calvin Lim

President & CEO

Over fifteen years of experience overseeing

• perations in the software development and

gaming industry. Co-founder and former Chief Operating Officer of Nogle Limited, a venture studio for early stage technology start-ups headquartered in Hong Kong.

Dominique Laconico

Chief Operating Officer

President and Founder of Nico Capital Gaming Corporation, a PAGCOR licensed importer and distributor of gaming products since 2007. Former Managing Partner and Country Manager of Manpower Group, a Fortune 500 company and the largest Human Resource company in the U.S. Has a Masters in National Security Administration from the National Defense College of the Philippines (NDCP), and has served as special consultant to the President of the Development Academy of the Philippines (DAP)

DFNN Inc. — Confidential and Proprietary

MANAGEMENT TEAM

Christopher M. Tio

EVP of Business Development

Previously held several positions in PAGCOR namely: Assistant Vice President, VIP Services Unit and Assistant Vice President, Marketing and C a s i n o C u s t o m e r R e l a t i o n s . F o r m e r Undersecretary for Special Concerns for the Presidential Communications Operations Office, Malacañang. Holds substantial experience in business development and consulting.

Ricardo F . Banaag

Chief Technology Officer

Over 30 years of experience in the technology

• industry. Previously served as the country manager
• f Intel Philippines for over 16 years. Before joining

Intel, he also served as country manager for IBM’s Global Network and was responsible for setting up

• ne of the first ISP’s in the Philippines.

Raymundo Martin Escalona

Chief Financial Officer

Executive Vice President of CTBC Bank Philippines Corp since December 2017 and serves as Head of the Institutional Banking Group. Served as Head of Corporate Banking Group at Chinatrust

• Phils. Commercial Bank Corp. Prior to this, he

served as EVP and Corporate & Institutional Bank Head of Australia and New Zealand Bank, Manila branch

DFNN Inc. — Confidential and Proprietary

Antonio A. Lopa

Chairman

P r e s i d e n t o f E q u i t i w o r l d Securities, Inc. (since 1987) and chairman of the board of W o r d t e x t S y s t e m s , I n c . , MANTRASCO, Inc. and WS Pacific Publications Inc. He is also President and Chairman of the Board of Cavite Biofuel Producers, Inc. and various family-owned corporations under the Manlo Group of Companies.

Monico V. Jacob

Former chairman and CEO of P e t r o n C o r p o r a t i o n , t h e Philippine National Oil Company and all of its subsidiaries. Served for three terms as the Governor

• f the PSE.

Roberto F . de Ocampo

Chairman Emeritus

Former Secretary of Finance ( 1 9 9 4 t o 1 9 9 8 ) . H e w a s concurrently a member of the Board of Governors of the World Bank and the Asian Development Bank and an Alternate Governor

• f the International Monetary

Fund.

Jean Henri D. Lhuillier

Currently the President and CEO

• f the Lhuillier Group of
• Companies. He is also the board

chairman of Global Restaurant Concepts and a director of Enderun Colleges, Inc., Falcor Heli Solutions Philippines, Inc., and Intelligent Wave Philippines.

BOARD OF DIRECTORS

DFNN Inc. — Confidential and Proprietary

Marco Antonio

• R. Urera

CEO and President of Vision Te c h n i c a l & M a n a g e m e n t Services, Inc. since 1987 and Vision A&E, Inc. since 2007. Also served as the managing director

• f Home Alert, Inc. since 2002

and President of JW Tea Products, Inc. (Natural Health Products) since 1987.

BOARD OF DIRECTORS

Edwin B. Villanueva

Currently the President of ABV Inc., Chairman of VFL Advisors Inc. and President of CIBI Foundation Inc. He is also an Independent Director and Chairman of the Audit Committee of the CTBC Bank

• Philippines. He is the Treasurer of

DFNN Inc. and Adviser to CDC Holdings Inc. and PhilRatings Inc. He currently holds directorships in the Makati Supermart Group and Testech Inc.

Eric Francis Ongkauko

Currently the President of the OCU Group (since 2003) and OC Ventures Corp. Inc. (since 1995). He is also a Director of Centaur International Pty Ltd. since 2002, Centaur Exim Pte Ltd. (since 2004), Assie Asia Pty. Ltd. (since 1986), San Antonio Marketing I n c , ( s i n c e 1 9 9 7 ) a n d Technofoods Inc. (since 1993).

Elmer B. Serrano

Senior Partner in the Martinez Vergara Gonzalez & Serrano Law O f fi c e . H i s s t r o n g M & A experience spans over two

• decades. He has also been

recognized by Asia Legal 500 in the field of Banking and Finance. He previously served as a senior

• fficer of BDO Unibank, Inc.,

handling investment banking, corporate finance and M&A. !

Treasurer Director and Corporate Secretary

DFNN Inc. — Confidential and Proprietary

BOARD OF DIRECTORS

Brandon Chan

Director representing the interest

• f strategic partner Leisure &

Resorts World Corp. (PSE: LR).

Franchette Acosta

Director representing the interest

• f strategic partner Excel Century

Investment Ltd.

31

DFNN Group

• f Companies

information@dfnn.com 3rd Floor Bonifaco Technology Center 31st St. Cor. 2nd Ave., E-Square Bonifacio Global City, Taguig, Metro Manila, Philippines 1634 Phone: (632) 818-DFNN or 818-3366 Fax: (632) 818-8434