Bryan carr agm 14

1 SmartTrans Holdings Limited – October 2014 1

SmartTrans Holdings Limited (ASX: SMA) Bryan Carr – Managing Director & CEO AGM 2014 18 November 2014

SmartTrans Holdings Limited – October 2014 2

SmartTrans’ three established businesses

China mobile & online payments pla@orm •  Allows companies to transact and process payments in China

•  SMA also sells its own mobile content through payments pla@orm

•  Mobile payments preferred payment method for Chinese consumers

MarkeEng & Sales of Mobile Phone ApplicaEons (Apps) • SMA sells its own and third party Apps directly to mobile subscribers

• Receives a royalty, and also revenue through exisEng billing pla@orms

• A large (over US$2.9 billion*) and growing market in China

Mobile & online LogisEcs soQware provider in Australia •  LogisEcs soQware to opEmise goods delivery

•  Recurring revenue from long term contracts – typically 3-‐5 years

•  Australian focus – opportunity to integrate with mobile payments pla@orm in China

1.

2.

3.

*Source: hJp://www.pocketgamer.biz/asia/data-‐and-‐research/58833/18-‐key-‐trends-‐from-‐the-‐chinese-‐mobile-‐games-‐market/

3 SmartTrans Holdings Limited – October 2014

2014 Financial Year Achievements

•  2014 has been a transformaUve year for SmartTrans

•  Divestment of non-‐core assets (exploraUon tenements) to focus on core business divisions

•  Reduced company cost base and overheads -‐ $600,000 in ongoing costs taken out of the business

•  Solid and growing revenues in China and Australia – Up 90% for the year

•  Significant increase in China/Hong Kong Revenue

•  New billing agreements in China providing access to ALL mobile phone subscribers in China

•  New products and services launched in China

•  Blue-‐chip client list for mobile and web logisUcs sobware business in Australia with solid recurring

revenue


Mobile & online payments pla@orm – China Market

PAYMENTS DISTRIBUTION

Brand sites

Celebrity Endorsement

Influencer Outreach

Blogger Reviews

WeChat Targeted Media Ads

Social Media Ads

Email Direct MarkeUng

Uprising Social Media

UGC

Mobile MarkeUng

China Forums

Baidu

RenRen

Kaixin

Weibo

Youku

Product Review sites

Tencent

Qihoo 360


Smartphone use and export growing rapidly in China

Source: www.theguardian.com/technology/2014/jan/13/smartphone-‐explosion-‐2014-‐india-‐us-‐china-‐firefoxos-‐android

Shipments of smartphones in China from 2010 to 2015

7210 15210

25857

2010 2012 2014

Source: Publically available data of iResearch

3550

11250 20153

40000

30000 20000

10000

2011 2013 2015 Shipments of smartphones by (10,000) Growth rate

103.1% 56.0% 35.2% 32.5% 28.3%


Mobile payments growing rapidly in China

0""

50,000""

100,000""

150,000""

200,000""

250,000""

300,000""

Jul+14" Aug+14" Sep+14" Oct+14"

SmartTrans)User)Billings)

User billings are increasing every month – 250,000 in October 2014


China’s Mobile Game App Market

•  SMA markets mobile game apps to customers through social media plalorms and distribuUon partners in China

•  SMA licences and sells mobile game apps developed by China’s mobile game developers

•  SMA can market to a large number of mobile game users in China via exisUng billing agreements

•  SMA’s embedded billing plalorm in game apps also provides addiUonal revenue streams

Mobile subscriber purchases an App for

which SMA receives a royalty

• SMA also processes payment for third party App sellers through its exisUng mobile payments plalorm – another source of revenue


LogisEcs soQware business

Client LogisEcs OperaEon Centre

SMA distribuEon pla@orm sends informaEon to drivers

Delivery informaEon sent to handheld devices

Driver informaEon monitored through logisEcs pla@orm

•  SMA logisUcs sobware used by blue chip companies to opUmise goods delivery and reduce logisUcs costs

•  Electronic Proof-‐of-‐Delivery, bar code & signature record keeping, cash reconciliaUon systems

•  Typically 3-‐5 year contracts with circa 50% of contract value billed in first year – very high customer retenUon

•  Strong recurring revenue streams with good margins

•  Pursuing expansion in Australia and China + integraUon with billings plalorm


In Summary

3. Growth in logisEcs business in Australia and China will strengthen recurring revenue base

1. ConEnuing uptake by third parEes of SMA’s mobile payments pla@orm is a key growth driver

2. MarkeEng and sales of Mobile Game Apps in China market represents a significant opportunity for SMA

Three businesses now well established and ready to deliver strong revenue growth


This document does not, and does not purport to, address any or all issues which are or may be material or of interest to the Recipient in connecUon with its own due diligence review of the Company, the Business or otherwise. The Recipient may not, and by receiving this document the Recipient acknowledges that it is not enUtled to and agrees not to, rely on any part of this document (whether as to a maJer of fact, forecast, opinion or belief) for any purpose whatsoever. Certain statements in this document relate to the future. These forward looking statements involve known and unknown risks, uncertainUes, assumpUons and other important factors that could cause the actual results, performance or achievements of the Company and the Business to be materially different from future results, performance or achievements expressed or implied by such statements. Such forward looking statements are based on numerous assumpUons regarding present and future business strategies and the environment in which the Company will operate in the future. No representaUon, assurance or guarantee is given that the occurrence of the events expressed or implied in any forward looking statements in this document will actually occur. The forward looking statements in this document reflect views held only at the date of this document. Past performance informaUon given in this document is given for illustraUve purposes only and should not be relied upon as (and is not) an indicaUon of future performance. By accepUng this document, the Recipient agrees that it will make and rely solely upon its own due diligence invesUgaUons and enquiries and will not in any way rely upon any of the informaUon in this document or use this document for any purpose other than as informaUon to assist the Recipient and its advisers to undertake its own due diligence invesUgaUons and enquiries. None of the statements, opinions, projecUons, forecasts or other forward-‐looking informaUon contained in this document have been independently verified and no commitment, representaUon or warranty, express or implied, is made in relaUon to their accuracy, reasonableness or completeness. Furthermore, where statements in this document are taken from or aJributed to sources created by third parUes, the Recipient should have regard to those sources and rely on its own enquiries. SmartTrans has prepared this document based on informaUon available to it at the Ume of preparaUon and subject to the qualificaUons in this document. To the maximum extent permiJed by law, neither the Company nor any of its respecUve related bodies corporate or other affiliates, directors, officers, employees, representaUves, agents, advisors or their respecUve advisors’ affiliates or partners, directors, officers, employees or contractors (each a Limited Party and together the Limited ParUes) takes any responsibility for the contents of this document or any acUon taken by the Recipient or any other person on the basis of any informaUon in the document. The Limited ParUes disclaim any obligaUon or undertaking to disseminate aber the date of this document any updates or revisions to any forward looking statements to reflect any change in expectaUons in relaUon to those statements or any change in events, condiUons or circumstances on which any such statement is based. To the maximum extent permiJed by law any and all liability in respect of this document and the informaUon contained within it is expressly excluded including without limitaUon any direct, indirect or consequenUal liability, expenses, losses, damages or costs incurred by the Recipient or any other person as a result of their receipt or use of this document or arising from the informaUon in this document being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise. No Limited Party makes any representaUon or warranty, express or implied, as to the currency, accuracy, completeness, reliability, fairness or correctness of the informaUon contained in this document or about SmartTrans generally or any opportunity to invest in SmartTrans in the future.

Disclaimer


Contact: Bryan Carr Managing Director +61 412 111 968 [email protected]

Bryan carr agm 14

Investor Relations