Annual General Meeting 13 March 2017 Agenda } FY2016 Review } HomeSend Move Money Anywhere } eServGlobal Innovative Mobile Financial Technology } Outlook 2 AGM │ March 2017 Dual-listing on Australian Securities Exchange and AIM (London Stock Exchange) 35% Ownership 100% Ownership JOINT VENTURE CORE BUSINESS MasterCard, eServGlobal & BICS Innovative financial technology Global payments hub enables cross- solutions for developing markets. border money transfer between mobile money accounts, payment cards, bank Mobile payments, Recharge, Data accounts or cash outlets from anywhere. Analytics and Consulting. Synergy Sales eServGlobal has two seats on the HomeSend Board: John Conoley, Executive Chairman James Hume, COO 3 AGM │ March 2017 FY2016 Review Summary: FY16 FY15 } EBITDA loss of A$11.0m (€7.3m) compared to Full Year Full Year a prior year EBITDA loss of A$22.8m (€15.2m) A$M A$M } Although a decrease in revenue in the year, Revenue 21.6 25.9 orders were 60% higher than the prior year } Capitalised technology development costs of Cost of sales (15.5) (20.6) A$1.3m (€0.9m) in respect of PayMobile 3.0 mobile money platform. Gross profit 6.1 5.3 } First channel partner signed. Operating Costs (17.1) (28.1) } Cash and cash equivalents at 31 October 2016 of A$9.4m (€6.5m). EBITDA (11.0) (22.9) } Net cash flow used in operating activities decreased from A$15.7m (€10.7m) in FY15 to A$12.0m (€8.0m) in FY16 PAT (21.7) (32.4) } Raised A$26.2m (€17.5m) (net of expenses) through a Placing and Open Offer issuing 374.4 million ordinary shares 4 AGM │ March 2017 HomeSend is a managed service platform which facilitates the moving of money across country borders and between currencies around the world. It has an extensive network of sending and receiving customers who have the ability once connected to the HomeSend hub to reach any other party on the distribution network HomeSend’s Vision To drive the digitalization of money movements by connecting the world in a way that is safe, convenient and cost-effective 5 AGM │ March 2017 HomeSend Strategic evolution A fast-growing ‘start-up’ • A fast-growing ‘start-up’ • •Targeting Targeting MoneyMoney TransferTransfer OperatorsOperators (“MTOs”)(“MTOs”) toto taketake aa commissioncommission fromfrom aa marketmarket ofof overover US$600US$600 billionbillion • •Huge Huge structuralstructural progressprogress –– bankingPayment licence, Institution data license, centre dataupgrades centre and upgrades Up to 2016 &interconnectivity, interconnectivity, integration Security (PCI), with MasterCard integration with Mastercard Send • Connectivity to over 1BN bank accounts, mobile wallets, etc. • AcceleratingAccelerating into a fast-growing into maturea maturing business business • Expanded target market to include bank customers, now in a market of •c.US$22 Expanded trillion* target market to include bank customers, now in a market of • c.US$22Helping disburserstrillion** pay small business and consumers on a global basis 2017 • •Becoming Helping disbursers a standard, pay yet small exciting, business part andof the consumers Mastercard on offera global basis • •Now Now integratedintegrated withwith MCMastercard Send for Send cross for border cross border * Source: http://www.worldbank.org/en/research/brief/migration-and-remittances **Source: BCG Global Payments Model (2014), quoted in SIBOS 2014 session 6 AGM │ March 2017 Focus on three distinct pillars Banks Disbursements Remittances • Wire transfers today are • Sharing economies require • Migrants will send over US slow, expensive, lack mass payments globally $600 billion home this year transparency… • Global outsourcing needs • HomeSend supports: • MC Send is designed to help global payments, e.g. • Banks to move their banks to modernise their freelancers remittance services onto cross border services through • Mastercard Send can mobile and / or expand a single connection support reaching the their reach • Our solution seeks to work consumers and businesses • Integrate Remittances with banks, not displace them that need to be paid - directly into Payroll anywhere on the planet! Programs 7 AGM │ March 2017 Mastercard Send for cross border leverages HomeSend’s platform to expand global reach and capabilities A robust, innovative and cost effective solution that adds value to a Bank’s cross-border services. Single Connection, Predictable Delivery and Transparent Pricing Faster Better Cheaper • Coverage in 80 countries • Amount expected is the amount received • Less expensive for payer • Faster settlement • Consistency enforced by network rules • Competitive FX • Quicker availability of funds • Secure and authenticated • No bene deduct • Predictable timing • Payments expertise • Operational efficiencies • Sending bank controls the pricing and the branding 8 AGM │ March 2017 The Expansion Plan 2017 Onwards Accelerating HomeSend will Mastercard continue supporting engagement to reach Money Transfer Targeting two lucrative new segments Mastercard's own Operators to offer 1. Helping banks to modernise their customer base. digital and cash based destinations in over 80 cross-border services countries and are 2. Supporting our customer’s target expanding MTO opportunities in cross-border participation and the disbursements (e.g. sharing destinations we can economy, global outsourcing) offer them 9 AGM │ March 2017 eServGlobal: Innovative Mobile Financial Technology At a glance Installed base by product } 160+ staff } 30+ years experience Mobile Money Electronic Recharge } Global customer footprint Voucher Recharge } Refreshed and growing product Telco portfolio } FY2016 saw the launch of new and complementary products Global footprint within the landscape of digital payments. } ‘Channel-ready’ platform PayMobile 3 Principal offices: } Signed first major channel partnership in FY2016 } Sales Team ‘Restart’ well underway and gaining traction } FY2016 saw increased sales activity with a 60% increase in orders compared to the prior year Legend Office locations 10 Countries with services deployed AGM │ March 2017 eServGlobal Positioning & Competitive Advantage Strong existing Refreshed & growing Channel suitable Partnership with customer base in product suite product & improved HomeSend JV emerging market sales force bringing synergies to core business Built on more than 30yrs eServGlobal’s flagship PayMobile 3.0 is the right The HomeSend JV and experience, eServGlobal PayMobile 3.0 platform technology to support partnership with has an existing presence is now established. sales through channels MasterCard is a key in fast-growing emerging and partners, allowing reference for markets. The company now eServGlobal to access eServGlobal’s core offers a suite of new markets that were business. This brings stable and complementary previously out-of-reach. recurring revenue plus products within the It brings important upsell and cross sell landscape of digital This strategy has been advantages to the core opportunities. payments and proven through the business through transactions. announcement of our referrals and also first major channel through potential shared partnership. projects. 11 AGM │ March 2017 Refreshed and growing product suite DIGITAL WALLET CROSS-BORDER RECHARGE RAPID SERVICES SERVICES PAYMENTS CONNECTION BIG DATA TELCO & BANK CONSULTING ANALYTICS 12 AGM │ March 2017 Our Markets A decade of mobile financial services Mobile financial services first started gaining traction with the launch of mPesa in Kenya in 2006. Mobile money is now available in TWO THIRDS of low and middle- income countries In 2016, mobile money providers processed over US$269Bn in transactions. Source: GSMA MMU, 2016 State of the Industry Report 13 AGM │ March 2017 Our Markets The market continues to evolve and mature and the opportunity remains significant. The shift towards completing simple and secure financial services, both domestically and cross-border via the mobile phone continues at pace. Through its full spectrum technology portfolio, eServGlobal is positioned to lead this transforming market. Source: GSMA MMU, 2016 State of the Industry Report 14 AGM │ March 2017 Zain Cash: Powering mobile money in Iraq Some of the services on offer Zain Cash App Digital Goods QR Code Payment Launched Nov 2016 Enables users to buy e-goods Allows any customer to Already >100,000 downloads and receive them instantly on pay by simply scanning Over 60% of Zain customers their mobile. the code. have smartphones Can be used with iTunes, Xbox, PlayStation, Google Store, Amazon and more 15 AGM │ March 2017 Zain Cash: Powering mobile money in Iraq Aid disbursement for refugees Zain Cash is working with NGOs to provide critical funds to refugees through their digital wallets }ICRC Project: } Registered ~1,000 Refugees, } Disbursed ~1M USD }UNHCR Project: } Registered ~2,000 Refugees, } Disbursing 250,000 – 500,000 USD / month } Expected to register up to 20,000 new individuals in 2017 16 AGM │ March 2017 Zain Cash: Powering mobile money in Iraq Service performance in first 12 months Cash-in Domestic Transfers Top-Up Growth YOY: 25X Growth YOY: 34X Growth YOY: 19X 17 AGM │ March 2017 Summary } Clear signs of the turnaround demonstrated in the FY2016 results. } Key structural changes, cost reductions and cash control together with a refreshed management team point to further turnaround success in FY2017 } HomeSend to breakeven by expanding its bank focus and extending the relationship with Mastercard 18 AGM │ March 2017 Thank you Mastercard Send Mastercard Send is a connection point which allows a