ASX:MIG Appendix February, 2016 Quarterly Results Capital strategy to build a digital media company of 33 substantial value

Q4 Q1 Q2 Q3 Q4 31 Dec 14 31 Mar 15 30 Jun 15 30 Sep 15 31 Dec 15

Monthly Active Users (MAUs) >10m >14m >19m >24m >32m

Cash Receipts from 570 1,100 2,200 3,700 5,300 Operations (AUD$’000s)

Net Operating Cash flows (3,723) (3,240) (4,208) (4,400) (5,210) (AUD$’000s)

Net Other Cash flows (AUD (265) 339 6,500 9,600 3,200 $’000s)

Cash (AUD$’000s) $5,300 $3,200 $5,400 $10,800 $8,700

Results reflect emphasis on establishing user base momentum to gain critical market share in priority markets followed by growth in cash receipts. Expansion of operating margin is planned for 2H 2016 with the ability to move to profitability possibly thereafter. (A number of other TMT companies are listed in the Appendix.) Listed Comparatives Comparative TMT Companies 5

Name / Code Revenue / market Monthly active Business model / notes capitalisation users / footprint (USD) ComparativeFacebook (US:FB) 17.9bn/290.3bn TMT Companies1.6bn Global business. 1st world monetisation

Twitter (US:TWTR) 2.2bn/10.8bn 320m Global business. 1st world monetisation

Tencent 11.99bn/169.06bn 860m China focus. International investor in TMT. Monetisation primarily through (HK:0700) premium activities such as virtual gifts + games + ecommerce.

Weibo (US:WB) 434m/2.498bn 222m Miniblog. China Focus. Monetisation through advertising.

Daum (KR:35720) 766.1m/4.687bn 57m Korea focussed. Monetisation through premium activities (virtual gifts + games)

Momo 113.1m/1.43bn 73.0m China focussed dating-centric social network. (US:MOMO) Monetisation through premium activities (gifts)

YY.com (US:YY) 680.6m/2.76bn 122m China focussed video chatrooms. Monetisation through premium activities (gifts)

Tian.ge (HK:1980) 88.89m/706.8m 18.6m China focussed video chatrooms. Monetisation through premium activities (gifts)

migme (ASX: 8.89m/111.8m >32m Android first, emerging markets (non-East Asia). MIG) Monetisation through premium activities (gifts, games, ecommerce)

migme is a listed business, with a unique and differentiated social media ecosystem, giving investors exposure to the rise of the Internet to the next 1bn users.

* For the 12 months to December 2015 unaudited. Exchange rate 0.7157 Case Studies 7 Spotlight | Badshah asks fans to be next #PunjabRapstar

@badshahofficial

3,000+ 3,600,000+ 349,000+ 44,100+

Badshah is a popular Indian rapper from Delhi known for his Punjabi and Hindi songs. After hosting a migme live chat, Badshah was inspired to invite his fans to be the next #PunjabRapstar. migme users were asked to submit their lyrics and videos after which Badshah shared a video announcing the winners on his migme and accounts. This was very much to the delight of fans who sent 29,000+ virtual gifts to express their love for Badshah, and their excitement at being potentially endorsed by their idol!

1 2 3 4 5 2 months

Badshah invited fans After the intimate chat Encouraged by the Badshah picked 3 Overall, the contest for to join him in a live with Badshah, fans warm response from winners to endorse on #PunjabRapstar had a chat on migme. continued to show their migme fans, Badshah his migme and reach of 47,000+, with affection to him on their launched ‘the search for Facebook accounts. 3,800+ visitors to Almost 2,000 fans miniblogs by drawing “I the next migme of which 120 visited migme with love Badshah” tattoos. #PunjabRapstar’ with Top winner Mann new users signed up. over 200 fans signed his fans Maan who joined migme up to join the live chat. to follow Badshah said, So far, Badshah migme users submit their “You are my inspiration received 29,000+ gifts . lyrics and videos for and I admire your work, from fans and Badshah, resulting in 16 Badshah.!” - participants, to express qualified entries Mannmaanofficial their admiration Spotlight | Shirin’s first migup with her fans 8

@shireeenz

5,000+ 436,000+ 20.,300+ 1353

Shirin Al-Athrus (@shireeenz) is an incredibly popular teen fashion blogger and hijaber, with a following of many young fans who look up to her. Following a series of successful onboarding events such live chat and follow back, Shirin invited her migme fans for a meet and greet migup, to watch a movie together. She also spread this message to her other social media platforms, asking her fans to follow and join her on migme, where she will in return pick another 110 fans to join her for their first-ever migup. Over a 2-week engagement, Shirin acquired 1,300+ new fans and 48,765 virtual gifts were received. 1 2 3 4 Two weeks

After a second live chat, Entertainment sites After the event, Shirin Over a two-week engagement, Shirin wanted to give back Dream and Kompas thanked her fans through Shirin acquired 1,300+ new fans to her superfans by picked up the story in miniblog posts and showered and 48,765 gifts. announcing her first-ever . them with gifts. migup—a movie screening. Subsequently, her fans are quite This story helped to active on migme and are reach an external encouraging other fans to join for audience of of 518,861 further live chats & migups. Fans and as a consequence, are also requesting for more another 478 new fans chances to interact with her in a joined migme. more personal manner. Spotlight | Cinta shares personal loss

@cintaramlan ▪ Case study:

59,900+ 500+ 90+ 22,600+

In March, popular singer Cinta Ramlan’s brother died. She announced it on mig where she is a verified artist - and not directly on any other social media. Over the subsequent fortnight, she also wrote a song in dedication, interacted with the fanbase that she’s built and drawn to mig, and exchanged tens of thousands of virtual gifts too. Her posts on mig were subsequently shared to other social media by her fans, and drew tens of thousands of users from other platforms onto mig.

1 2 3 4 5 1 week

Cinta Ramlan Cinta shared images of mig users empathized Cinta shared a photo of Dedicated a song and announced news of herself laying flowers for with Cinta, sending her herself on the way to a released a music video the death of her her brother. gifts and posting performance despite for her late brother, brother Iwan on mig comments her grief, - ”the show announced on mig must go on” . This post was shared by Cinta received 37,980 mig users to other social gifts from mig users and media platforms 236 times, interacted with those that which brought in 22,724 engaged with her (e.g.. visits to the one post. posted comments, sent her gifts, etc.)

9 Spotlight | Cinta Citata and Mikey (Indonesia)

@citacitata 163,000+ 19,000+ 51,000+

@migpapua 34,000+ 7,600+ 4,300+

In February 2015, a well known singer Cita Citata (@officialcitacitata) made a racially insensitive comment, and popular Indonesian Idol finalist Mikey (@migpapua) responded in migme, where both artists have built a larger follower on migme, compared to their other social media channels. So interactions (e.g.. replies, shares) were higher on migme compared to their other social media channels, and both artists also received virtual gifts of support from their users (over 4,000 gifts over 2 days, to which they get a revenue share). The story was also widely reported in mainstream media across the country.

1 week

1 0 Product Business Model Virtual Gifts 12

Users select from a wide range …that create a consequence for …and generate a revenue shared of virtual goods and gifts both sender and receiver… between the artist and platform

User (Sender)

Experiences: • Public recognition of having sent the item • Higher ranking on Artist inferred leaderboard • Higher status among other fans

Artist (Receiver) migme

Experiences: • Public recognition as having collected the item • Avatar is a product of gifts / investments made Games and Apps 13

Wide range of games and …that interface with the migme …to create revenue shared by apps… platform in three ways… migme, developers and merchants

1. Apps / games coincident to Developer platform value proposition • Photos, news, music, avatar User buys in-game items premium content migme 2. Apps / games one step removed from the platform • Karaoke*, video chat*, e-commerce, LoveByte Merchant 3. Standalone apps / games that User buys virtual goods/ are reported back to mig for gifts social context migme • Games where progress / achievement is shared with friends

* Coming soon E-commerce 14

Low cost selling by bringing online …Generating sales revenue for B2C and shopfront to online user community… C2C sellers and merchant fees for migme

• C2C a proven model in emerging markets: where payments infrastructure and trust are hurdles that impede traditional models

• Lower acquisition costs; brings the ecommerce content directly to users, in a format that is searchable, actionable and easily shared

• Lower marketing costs through a plethora of value-added relationships with artists / entertainers, handset pre-installs, content marketing through in- platform audience engagement ^

^18 December 2016, announcement to acquire assets of Shopdeca. Agreements being executed. Our strategy leverages existing capabilities and user base to drive new MAU, engagement and revenue

Engaging social At scale social Existing E- Our platform with network user base commerce competitive Artists/KOL in key emerging operations and advantages presence and markets! experience! gamification!

Develop a C2C social marketplace , facilitating the marketing and sale of items between Migme users, or sales for external vendors via referral traffic

Develop B2C2C affiliate sales program, where Migme users market products from Vendor Our focus Partners with commissions shared between Migme and the user

Propel product sales of users and partner vendors via Artist / KOL referrals, gamification, curation, user generated content and community formation and conversation

A unique, difficult to replicate and active social commerce channel and marketplace deployed in each of our target emerging markets that drives revenue, MAU growth and user engagement! Social Commerce* 16

Social marketing of new and used items from B2C and C2C sellers, and via KOL Affiliates – on and shareable via migme.

Example B2C Vendor Partners B2C2C Other SNS C2C

SKUs (XML Feed) / Users’ social Referral traffic Referral Traffic Commissions media marketing

Artists/ Chat Miniblog Apps Games KOL

Ecommerce

Eco-system of mobile / social services C2C Social Marketplace

Social sharing Referrals / Bids

SOLD e-commerce platform B2C

*Coming soon Market Opportunity By 2018, we expect our target markets below to 18 comprise ~ 442M Social Media users

Philippines: 65M

India: 265M

Indonesia: 112M

Source: WeAreSocial, migme analysis

Users in these markets require light weight mobile 19 apps due to lower data speeds…

Weighted Average Internet data Weighted Average Mobile Data Speed Weighted Average Penetration of speed 2015 – by Region 2015 – by Region Mobile Broadband 2015 – by Region

12.0 7.0 90%

80% MBPS MBPS 6.0 10.0 70% 5.0 8.0 60%

4.0 50% 6.0 6.6 83% 3.0 6.0 40% 9.7 4.0 30% 2.0 46% 5.5 20% 2.0 1.0 1.8 10% 2.5 16%

0.0 0.0 0% West East Asia S/SE Asia West East Asia S/SE Asia West East Asia S/SE Asia

Internet/mobile data speeds in Emerging S/SE Asia are around one quarter of …while penetration of mobile broadband is speeds in Developed Western economies… one fifth of the take up in the West

Source: WeAreSocial, migme analysis Note: Figures quoted are population weighted averages for regional composites for which data exists. West includes USA, UK, Canada, France, Germany, Italy, Spain, ; East Asia includes China, Japan, and South Korea, S/SE Asia includes , Indonesia, Philippines, , Thailand, , Vietnam

…and lower capability devices such as ‘feature 20 phones’ Lightweight operating systems like Opera Mini …have captured strong market share in designed for slow data and ‘feature emerging markets, including South and phones’….

90 Opera Mini Users by Region, 2013

80 millions

70

60

50

40 78 75

30

48 20 33 § Favoured for its data speeds and 10 19 14 associated savings 10 0 § 150m installs on ‘Feature Phones’ South East Russia and Latin Rest of China § 50m+ users in India and 20m+ and Asia CIS America World users in Indonesia at end-2014 migme target markets

Source: Opera Software, migme analysis

Emerging market users exhibit different usage patterns 21 to Western social media networks…

Transformational

East Asian social networks!

Private Public

North American social networks!

Functional …with clear differences in user preferences for social 22 media interaction

North America East Asia

• Transparent – online and offline • Freedom of identity – one can escape Role of identity identities are congruent their offline identify

• More functional, direct • More emotive, playful Communication style • More limited lexicon of visual • Greater use of visual characters / characters, typically functional shortcuts icons in expression

• Greater sense of ‘personal space’ • Lesser sense of ‘personal space’ online online Social proximity • Lower social proximity between • Higher level of social proximity and individuals and likelihood of engaging likelihood of engaging strangers / strangers / celebrities via social media artists via social media • Abundance of fit-for-purpose • Users limited to typically a single technology, users can connect via device, many have only ever interacted Propensity to mobile multiple devices online via mobile (leapfrog of desktop) connectivity • Less of emphasis for regular social • Social media interaction a core part of media interaction versus offline engaging with community and peers interaction ..and higher propensity to use mobile devices 23

Average mobile phone usage per day – by country

Users in Emerging Asia spend more than 2x hours migme target markets per day using mobile devices compared to the 4 Developed West 3.5 >2x Μ = 3.1 3

Hours / day Μ = 2.4 2.5

2 Μ = 1.4 3.6 3.1 3.1 1.5 2.8 2.9 2.8 2.5 2.5 2.6 1 1.9 2 1.3 1.5 0.5 1.1 1.2

0

Developed West Developed Asia Emerging Asia

Source: TNS Asia Pacific, migme analysis

Evidence suggests S/SE Asian markets tending toward 24 East Asian social network models

Case Study: Rapid ascent of Line in Thailand vs.

Situation In 2013, Line entered the Thai market and displaced WhatsApp as the dominant social network service in less than a year

Actions / Critical Success Factors Commentary Offering a ‘transformational’ instead ‘WhatsApp is coming under pressure from a new breed of ‘platform’ messaging apps 1 of purely ‘functional’ social service that go beyond replacing SMS to provide a range of connected services, like games, virtual content, video/voice calling, e-commerce and more.’ High profile, in-country offline ‘It began by raising awareness with a traditional media campaign. That was 2 marketing by experienced local advertisements on billboards, decking out metro trains in its branding, newspaper ads, teams interactive video boards, TV ad spots and other high-profile brand opportunities’ Localised, culturally relevant ‘Line…went hard on the local angle: using celebrities, launch events, more media, and 3 content, marketing and user base/ customized stickers for Thai users’ audience development Preferred delivery of social network ‘In addition to cutting deals with mobile operators — most of which already offered all- 4 service via mobile device you-can-eat packages for WhatsApp and Facebook ’

Result ‘In Thailand, WhatsApp… was beaten by a company that localized better than it could. Once Line began clicking with Thai people, WhatsApp didn’t stand a chance.’ Which create opportunity for different network monetisation models

Initial engagement Deepen engagement Value creation Value capture

Typical East Asian social networks

§ Avatars / customization § Chat § User prepaid credits § Social games § Virtual gifts / goods § Communication (For virtual goods, value § Information § In-game / apps, Value § Blog added services) § Community formation Added Services (VAS)

User funded § Liking/ Sharing § Merchant fees or premium content § Advertising § E-commerce

§ Games / Video § Advertising (Targeted) § Chat § Social games § Content discovery / § Sponsored content § Communication § Information search § User premium § Liking / Sharing § Group formation § Premium services subscription Advertiser funded

Typical North American social networks Competitive landscape and positioning migme provides a full social media experience aimed 27 at emerging internet markets

Our competitive More permanent peer set

More More Asymmetric Symmetric (1 to many) (1 to 1)

Regional / International focus!

1-Country / Domestic focus! More ephemeral Our competitor set: More asymmetric, permanent 28 networks, with regional/international focus

More permanent

Focus of our competitor analysis

More More Asymmetric Symmetric (1 to many) (1 to 1)

Regional / International focus!

More ephemeral Global Landscape 29

migme is the only social network focused purely on South / Southeast Asia

Competed Regions

Market Revenue / South / Logo Name capitalisation MAU (m) West East Asia Global / other (USD, m) Southeast Asia (USD, bn)

Facebook 203 12,500 1,400

Twitter 19 1,400 290

Google+ N/A1 N/A 300

LinkedIn 25 2,200 300

Instagram N/A2 N/A2 300

Pinterest 10 - 123 - 50

Line 8 - 104 650 350

Kakao Talk 75 320 50

migme 0.2 12 32

1. Owned by Google. 2. Owned by Facebook 3. Yet to list, estimated value 4. Yet to list, estimated value. 5. Estimated valuation post merger with DAUM. Source: S&P500, Hang Seng, ASX,, Facebook, LinkedIn, Twitter, Instagram, Line, TechInAsia, TechCrunch, eMarketer, Forbes

Proven & Relevant Business Models 30

Advertiser Logo Name User funded Business model description PROVEN & RELEVANTfunded BUSINESS MODELS Facebook Global focus, monetisation via targeted advertising

Twitter Global focus, monetisation via targeted advertising

Google+ Global focus, monetisation via targeted advertising

Global focus, monetisation via targeted advertising, premium LinkedIn subscription services

Instagram Global focus, pre-monetisation (likely to be advertiser funded)

Pinterest North America focus, monetisation via targeted advertising

East Asia focus, monetisation via users valued interactions and Line virtual goods East Asia focus, monetisation via users valued interactions and Kakao Talk virtual goods South / Southeast Asia focus, monetisation via users valued migme interactions and virtual goods Facebook vs. migme 31

Whilst Facebook may be in emerging markets, they are limited with organic reach and monetisation options for their user – where migme is not.

Emerging Organic Monetisation Markets Reach

Facebook / Developed Western Market - Normal Post - Story - Photo share

User migme / Emerging markets in South and South East Asia - Normal Post - Story - Photo share

migme’s strategy is consistent with DAUM, Dena, Line and other successful East Asian companies, in building platform businesses Western MSNs have not achieved dominance in 32 E Asia; while S/SE Asia is wide open for local players

MAU vs. penetration of social media networks – by region

Major Western countries Major East Asia countries Major S/SE Asia countries

500 500 500 Highest penetration = Highest penetration = Highest penetration = 450 38% 450 22% 450 11% MAU (m) 400 400 400

350 350 350

300 300 300 S/SE Asia markets are 250 250 250 wide open with no social network 200 200 200 penetrating more than 11% of total population 150 150 150

100 100 100

50 50 50

0 0 0 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50%

Penetration of total pop. Penetration of total pop. Penetration of total pop.

Source: WeAreSocial. migme analysis Note: Western Countries include USA, UK, Canada, Germany, France, Italy, Spain, Australia; East Asia countries include China, Japan, South Korea, Hong Kong, S/SE Asia countries include India, Indonesia, Philippines, Thailand, Vietnam, Malaysia, Singapore. Despite user preferences, S/SE Asia not yet dominated 33 by a Transformative network player

MAU of social media networks – by region

Major Western countries Major East Asia countries Major S/SE Asia countries

500 500 500

450 450 450 MAU (m) 400 400 400

350 350 350

300 300 300

250 250 250

200 200 200

150 150 150

100 100 100

50 50 50

0 0 0 More More More More More More Functional Transformative Functional Transformative Functional Transformative

Source: WeAreSocial, migme analysis Note: Western Countries include USA, UK, Canada, Germany, France, Italy, Spain, Australia; East Asia countries include China, Japan, South Korea, Hong Kong, S/SE Asia countries include India, Indonesia, Philippines, Thailand, Vietnam, Malaysia, Singapore Network effect driven by scale, user social graph, and 34 stored value of user engagements Strength of network effect

Network value Description Low Moderate High

1 ‘Traditional' network effect where Sub-critical (0 – 5%) Critical Mass Dominant market leadership Value of network the more users that are a part of (5 – 10%) (20 – 40%) scale the network, the greater its value

User chat connections (private, 0 - 3 connections 3 – 10 connections 10+ connections 2 synchronous comms.)

User connections to other users 0 - 30 connections 30 - 100 connections 100+ connections (public, asynchronous comms) Value of social graph User connections to content 0 – 10 content likes / shares 10 - 25 content likes / shares 25+ content likes / shares

User connections to artists / 0 – 10 artist / influencer 10 - 25 artist / influencer 25+ artist / influencer influencers followings followings followings

User generated portfolio of Minimal user engagement User hosts self generated Network primary online 3 creative content content on network repository for self generated content

Built reputation or influence Minimal user engagement User has moderate acquired User has high acquired among other users following or recognition as a following or recognition as a Stored value of user network influencer network influencer investment in network Stored valuable user data Minimal user engagement User stores some data on the Network is primary data network

Content relevance via acquired Minimal user engagement Light user engagement and Heavy past engagement, and user info modest degree of content high degree of content targeting targeting Facebook the only other social network in our 35 competitive set offering same bundle of services

Symmetric Asymmetric SNS in migme Artist Communication communication Games Apps Ecommerce competitor set Engagement FB the only other(chat) social(blog) network in our competitive set offering same bundle üof services ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü

Only migme and Facebook, offer a full vista of social services in communication and entertainment in our competitive set migme is unique in being an at scale social network, 36 with the potential to integrate e-commerce

Indonesia, 2010 – 2013: E-commerce players enter Indonesia, 2014 – 2015: New social commerce the market sell via own website, paid advertising platform facilitate sales via social media networks

Coming soon…

Major ecommerce players are predominantly conventional Of the newer social commerce platforms, none are an (‘non social’) online retailers established social network – except for migme Case study: In China, social networks are already 37 evolving into social marketplaces

Case Study: Chinese Social Marketplace Mogujie disrupting e-commerce incumbent Taobao

Mogujie was founded in 2011as a social shopping service. They earned revenue from Situation commissions for referrals to e-commerce websites (including Taobao), and have since evolved into a social marketplace, competing directly with other e-commerce sites

Actions / Critical Success Factors Commentary

1 User centric social features (discovery discussion, sharing) and authentic user generated Higher engagement, higher conversion content from influencers and shoppers increase engagement and conversion

2 As opposed to advertiser funded sales communications on other e-commerce sites, curated Curated Fashion Discovery fashion discovery make shopping experience enjoyable and authentic

Mogujie is mobile first and has achieved the highest ratio level of mobile users to total users 3 Mobile first in Chinese e-commerce. They lead in mobile for higher visit frequencies, impulse buying and greater repeat purchases Mogujie surrounds its fashion marketplace with a social community, chat, user generated 4 Powerful social commerce ecosystem content, and an excusive set of Key Online Influencers – driving user engagement, discussion and sales conversion

Since commencing its own social marketplace in 2013, Mogujie has gained 93m registered Result user accounts, with 47m MAU and 8 million users making purchases in 2014