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ANNUAL GENERAL MEETING 27 NOVEMBER 2015 For personal use only

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Page 1: For personal use only - ASX · Museum (San Francisco) and The Broad Museum (Los Angeles) • Kordia Solutions Australia - Australian delivery partner, national network of over 200

ANNUAL GENERAL MEETING27 NOVEMBER 2015

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Page 2: For personal use only - ASX · Museum (San Francisco) and The Broad Museum (Los Angeles) • Kordia Solutions Australia - Australian delivery partner, national network of over 200

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OUR VISIONCreate the best WiFi software

products and sell them to the world

OUR MISSIONConnect customers to consumers

through WiFi experiences

Tomizone is a WiFi software company that powers in-venue digital experiences that drive consumer engagement and revenue across multiple sectors.

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Page 3: For personal use only - ASX · Museum (San Francisco) and The Broad Museum (Los Angeles) • Kordia Solutions Australia - Australian delivery partner, national network of over 200

AGENDA

3

1 - Welcome2 - Chairman’s address3 - Resolutions

• Adoption of remuneration report

• Election of Mr Stephen Gary Simms as Director

• Election of Mr Tarun Parbhu Kanji as Director

• Election of Mr Phillip Joe as Director

• Issue of convertible notes

• Ratification of prior issues of shares and options

• Increase placement cap to provide future issue securities

4 - CEO Address5 - Financials6 - QuestionsF

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2015 AT A GLANCE

840+ million minutes

51%

5+ million unique devices

25%

26+ million sessions

47%

900+ terabytes of data

consumed

56%

Revenue$3.5m

SubscriptionRevenue

22%

30 staff 76%

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Page 5: For personal use only - ASX · Museum (San Francisco) and The Broad Museum (Los Angeles) • Kordia Solutions Australia - Australian delivery partner, national network of over 200

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CEO ADDRESS

1 - Organisation Update

2 - Market Update

3 - Strategic Partnerships

4 - Customer Focus

5 - Continued Innovation

6 - Outlook on 2016

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Page 6: For personal use only - ASX · Museum (San Francisco) and The Broad Museum (Los Angeles) • Kordia Solutions Australia - Australian delivery partner, national network of over 200

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KEY HIGHLIGHTS Tomizone Limited (ASX:TOM) continues to deliver on its strategy

$5.0m raised and re-listing with approximately 30% of acquisition consideration subject to performance hurdles of over NZ$7.5m and NZ$9.5m audited revenue in FY16.

Improve Consumer Engagement

Rapidly increasing consumer engagement over FY15

More people spending more time online through the Tomizone Platform:• Unique device growth: 25% growth YoY in number of unique devices to over 5 million• Session growth: 47% growth YoY in sessions to over 26 million • Minutes used: 51% growth YoY in the number of minutes spent online to over 840 million minutes • Data consumption: 56% growth YoY in data consumed to over 900 terabytes

Transform Revenue Model

Transitioning to subscription model

• Over 22% increase YoY in subscription revenue in dollar terms• Subscription revenue represents 27% of FY15 revenue and continues to grow

Expand Customer Base

Successfully expanding into new geographies and verticals

• New customer deployments in existing markets• Entry into new verticals positioned for growth (e.g. Museums)• Entry into new geographies

Lead Innovation Market leading product innovation continues

• New features and enhancements being released at velocity• Leading-edge development in venue experiences, analytics and location based services • Scalable SaaS platform demonstrated by ease of deployment in new verticals and geographies

Create Strategic Partnerships

Strategic partnerships growing global footprint and capability

• Strategic engagement of partners across geographies shift to channel based distribution and delivery agreements signed with Hire Wire Networks (USA), Kordia Australia, P2 Mobile Technologies (Hong Kong)

• Securing multi-channel distribution and reseller partners globally

Accelerate Operations Operational growth to strategy • Recruitment strategy ahead of schedule with high calibre candidates seeking to join Tomizone • International market exposure running ahead of schedule, consequently commenced of search for new globally

experienced CEO

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15

OPERATIONSTeam growth ahead of schedule and in line with strategy to drive sales,footprint and innovation leadership

A core part is hiring new staff. Since listing the team has grown 76% (17 to 30 staff).

Further expansion of the team is planned to support further growth:• Targeting to grow to over 50

within the next 12 months• Hires for sales, marketing

and service delivery /support planned forAustralia, USA, South Asia,EMEA

0

5

10

15

20

25

30

5

10

8

72

7

5

3

Pre-listingJune 2015

Post-listingAug 2015

Headcount

FINANCE & ADMIN

PRODUCT & ENGINEERING

SERVICE DELIVERY & SUPPORT

SALES & MARKETING

ORGANISATIONTeam growth to deliver on objectives

Headcount

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$18bn2014

$41.9bn2017

(1) Gartner Report Forecast: Mobile 2010 to 2017, Referhttp://www.gartner.com/newsroom/id/2653121

Global mobile advertising spend (US$Billion)(1)

595%Growth

US$26bn

US$41.9bn

Number of WiFi hotspots between 2014 and 2018(1)

Addressable WiFi market by 2019(2)

Mobile advertising spend by 2017(3)

Source: ABI Research

WiFi

3G/4G

Mob

ile B

road

band

Usa

ge

2013

Usage is growing fast, WiFi is

growing faster

3G/4G 30bnby 2020

4bn WiFi devices globally set to

grow to 30bn by 2020

338min 2018

48m WiFi hotspots in 2014 growing to 338m

in 2018

EXPOSURE TO A RAPIDLY GROWING GLOBAL MARKETTomizone is well positioned to leverage surge in demand for WiFi

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Page 9: For personal use only - ASX · Museum (San Francisco) and The Broad Museum (Los Angeles) • Kordia Solutions Australia - Australian delivery partner, national network of over 200

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STRATEGIC PARTNERSHIPS

Channel Partnerships

Provides distribution channels with similar target customers and leverages their existing customer base and new sales - examples include:

• P2 Mobile Technologies and P2 United - Asian channel partners based in Hong Kong, targeting B2B and government contracts for hardware and software in Asia

• High Wire Networks - over 500 channel partners in North America

Product Partnerships

Accelerates synergistic product development, joint sales development and mutual business referrals. Accelerates reach into new geographies and market verticals - examples include:

• STQRY - mobile story telling and location services software platforms enhanced by Tomizone

Digital Marketing Partnerships

Digital marketing rewards consumers’ participation whilst driving new revenues for Tomizone and its customers - examples include:

• Rokt - digital advertising targeted to individual consumer behaviour and presenting relevant offers• Opentop - digital advertising regarding consumers who participates in competitions, making purchases or joining

newsletters

Delivery and Support partnerships

Provides proven and scalable national service delivery, installation and support networks. Also upsell to their customers - examples include:

• High Wire Networks - over 1,000 network certified engineers covering 95% of US population. Installed Walt Disney Family Museum (San Francisco) and The Broad Museum (Los Angeles)

• Kordia Solutions Australia - Australian delivery partner, national network of over 200 partners and contractors

Communication Partnerships

Provides effective company communications to shareholders and customers• Edelman gives Tomizone leading global communications reach (65 offices around the world) F

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CUSTOMER FOCUS

Diversified Pipeline

• Pipeline of 240+ targeted opportunities at various stages of the sales cycle• Majority of opportunities are with large enterprise organisations• Diversity of vertical coverage reduces risk of reliance on single vertical.• Currently servicing customers in 108 countries

The opportunity pipeline includes a range of major opportunities including:

• Tier 1 airports (Asia & USA)• Retail chains with established brands• Established systems integrators with enterprise customers• Government tenders for metro and precinct WiFi tenders• Selected airlines for airline lounge programmes

Sizing the opportunity

• Tomizone’s top 50 customers currently deliver annualised recurring revenues ranging from between $15,000 to $200,000+.

• Our opportunity pipeline mimics the dynamics of our top 50 customers

EUROPE7.9

MIDDLE EAST7.9

AFRICA7.9

AMERICAS7.9

ANZ/PACIFIC7.9

ASIA7.9

SERVICE PROVIDERS7.9

TRANSPORT7.9

MUSEUMS7.9

ACOMODATION7.9

HEALTHCARE7.9

HOSPITALITY7.9

METRO &CAMPUS

7.9

MULTI VERTICALCHANNELS

7.9

RETAIL7.9

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Page 11: For personal use only - ASX · Museum (San Francisco) and The Broad Museum (Los Angeles) • Kordia Solutions Australia - Australian delivery partner, national network of over 200

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CONTINUED INNOVATION

PortalExperiences Speed Improvements, Core Function Upgrades

Partner Integrations Referral Marketing, Display Advertising

Paid Usage Frictionless payment experience, new payment gateways and options

User Experience Progressive Profiling, Experience Analytics, Simple Access Control

Location Based Experiences Engaging content tailored by location

DashboardManagement Organisations, Accounts, Zones, Routers

Experiences Theme Management, Packages and Rates

Access Control Users, Groups, Permissions

Reporting Automated monthly business and customer reporting

Usage Analytics Consumers, Devices, Vouchers, Sessions

Location Analytics Footfall, Dwell, Repetition

Behavioural AnalyticsBrowsing, Interests

APIProcess Optimisation Internal systems alignment and efficiency, testing frameworks, significant performance gains for scale

Reporting Custom Reports, CRM Integration

Access Control Synchronization

Big Data Analytics, Insights

Content Integrations and supply agreements, Partnerships

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Sales & Market Delivery• Well placed geographically and continues to build

a robust pipeline of sales opportunities• Continue to grow share in core market verticals,

such as transport, retail and accommodation• Enter new market verticals• Continue to develop in Asia• Secure multi-channel distribution and reseller

partners globally

Team & Target• Continue to grow team to capitalise on

global opportunities• Focussed on exceeding earnout targets of

NZ$7.5m - $9.5m revenue in FY2016

Products & Innovation• Increasing velocity of continued innovation

and rapid development of new features and products

• Continued refinement of Portal, Dashboard and API connectivity which opens the product to more partners and customers

OUTLOOK Investing to build a growing pipeline

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Page 13: For personal use only - ASX · Museum (San Francisco) and The Broad Museum (Los Angeles) • Kordia Solutions Australia - Australian delivery partner, national network of over 200

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FINANCIALS OPERATING PERFORMANCE

Summary Operating PerformanceYear ended 30 June 2015

• Revenue decline due to: • airtime sales revenue declining as Tomizone

migrates to subscription based annuity income inline with Platform strategy

• focus on re-listing diverted existing resources away from sales and delivery during Q2 to Q4

• pre-listing capital constraints stalled sales and delivery expansion

• Margin decrease due to decline in high margin airtime revenue relative to lesser decline in lower margin hardware sales

• Operating Expenses increased 9% as planned headcount costs commenced post-listing

AUD $‘millions 2015 2014

Revenue 3.46 4.78

Direct Costs (1.53) (2.11)

Gross Profit 1.93 2.67

Gross Profit % 56% 56%

Operating Expenses (2.78) (2.56)

Operating EBITDA (0.85) 0.11For

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FINANCIALS ACCOUNTING & ONE-OFF ADJUSTMENTS

2015 and 2014 comparative figures, reflect accounting treatment changes and one-off non-cash entries. First time preparation adopting Australian Accounting Standards & International Financial Reporting Standards

• Reverse acquisition of Tomizone Ltd parent company resultingin reporting a continuation of the business and operations ofTomizone NZ Group

• Revised year end from 31 March to 30 June• Adoption of new accounting policy treatments and alignment to

IFRS guidelinesA number of one-off non-cash costs have been reflected in the Financial Statements:• The share based reverse acquisition for Tomizone parent resulted

in accounting deemed consideration and a net fair value $3.82m inexcess of the $0.54m net tangible assets acquired - this has beenwritten off immediately as a listing expense on acquisition

• $1.21m impairment of Jimojo Business acquisition (May 2013)goodwill intangible

• $0.27m of fair value cost estimate for share based payment ofoptions issued as part of the Tomizone acquisition

• Of $6.6m one-off related costs in 2015, $6.2m related to non-cashentries

AUD $‘millions 2015 2014

Operating EBITDA (0.85) 0.11

Depreciation & amortisationOther non-operating costsImpairment of goodwill intangibleListing expense on acquisitionOther acquisition advisory costsShare based payment costs

(1.05)(0.05)(1.21)(3.82)(0.34)(0.98)

(0.97)0.06

----

Profit / (loss) before income tax & finance costs (8.30) (0.80)

Finance costs (0.80) (0.47)

Profit / (loss) before income tax (9.09) (1.27)

Income tax credit 0.10 (0.06)

Net profit / (loss) after tax (NPAT) (8.99) (1.33)

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FINANCIALS SHIFT TO SUBSCRIPTION REVENUE

Subscription Revenue as a portion of total

FY 2014 FY 2015

• Tomizone progresses in its transition toward a subscription based annuity revenue model away from traditional paid airtime model• Subscription revenues have grown 22% in FY2015• Growing subscription service revenue as a proportion of total revenue from 17% to 27%

17%

12%Hardware

71%Airtime

27%

11%Hardware

62%Airtime

Recurring Subscription Recurring Subscription

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Page 16: For personal use only - ASX · Museum (San Francisco) and The Broad Museum (Los Angeles) • Kordia Solutions Australia - Australian delivery partner, national network of over 200

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FINANCIALS BALANCE SHEET

FY2015: Year of first time adoption of IFRS, accounting treatment changes, one-off and non-cash entries relating to the IPO and re-listingAccounts reflect continuation of the business and operations of Tomizone NZ Group

• $5m IPO on 22 May providing funding of product innovation and growth. Net cash reserves reflect settlement of costs relating to capital raising, re-listing, and growth in people base

• Operating leases on WiFi hardware deployed treated as finance leases for accounting purposes. Recognised equipment assets, being depreciated, are offset with commensurate interest-bearing borrowing that is amortised over the term of the leases

• Intangibles represent:• Jimojo business software platform and customer base, being

amortised, and• Tomizone lightswitch software platform, being amortised• key driver on F14 is a $1.21m reduction from first time

assessment and decision to fully impair the carrying value of Jimojo goodwill on acquisition (non-cash)

Current and non current interest bearing borrowing reflects various term loans with FE Investments Ltd, payable and repaid over course of year

Negative equity in 2014 balance date results from retrospective posting of accounting treatment changes

AUD $‘millions 2015 2014

Cash and cash equivalents 4.04 0.04

Other current assets 0.37 0.58

Current Assets 4.41 0.62

Property, plant and equipmentGoodwill and other intangiblesDeferred tax and other assetsTotal non current assets

0.622.09

-2.71

0.773.81

-4.58

Total Assets 7.12 5.20

Trade and other payablesInterest-bearing borrowings

2.511.23

2.290.88

Current Liabilities 3.74 3.17

Interest-bearing borrowingsTotal non current liabilities

1.291.54

2.513.08

Total Liabilities 5.28 6.26

Net assets / (Liabilities) 1.84 (1.06)

Total equity 1.84 (1.06)

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Page 17: For personal use only - ASX · Museum (San Francisco) and The Broad Museum (Los Angeles) • Kordia Solutions Australia - Australian delivery partner, national network of over 200

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DISCLAIMER

This presentation has been prepared by Tomizone Limited ACN 000 094 995 (Tomizone). Each recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set out below. None of Tomizone and or its related bodies corporate (as that term is defined in the Corporations Act 2001 (Cth)) and the officers, directors, employees, advisers and agents of those entities (Beneficiaries) make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information contained in this presentation, including any forecast or prospective information.This presentation contains certain “forward-looking statements”. Forward looking statements can generally be identified by the use of forward looking words such as, “expect”, “should”, “could”, “may”, “predict”, “plan”, “will”, “believe”, “forecast”, “estimate”, “target” and other similar expressions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, the Beneficiaries. Actual future events may vary materially from the forward looking statements and the assumptions on which those statements are based. Given these uncertainties, you are cautioned to not place undue reliance on such forward looking statements.Tomizone disclaim any intent or obligation to publicly update any forward looking statements, whether as a result of new information, future events or results or otherwise.Nothing in this presentation is or is to be taken to be an offer, invitation or other proposal to subscribe for shares in Tomizone. This presentation is a general overview only and does not purport to contain all the information that may be required to evaluate an investment in Tomizone. The information in this presentation does not amount to an express or implied recommendation with respect to any investment in Tomizone nor does it constitute financial product advice (nor tax, accounting or legal advice). The recipient, potential investors and their advisers, should:• conduct their own independent review, investigations and analysis of Tomizone and of the information contained or referred to in this presentation; and/or• seek professional advice as to whether an investment in Tomizone is appropriate for them, having regard to their personal objectives, risk profile, financial

situation and needs.To the maximum extent permitted by law, Tomizone and its Beneficiaries do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the presentation or its contents or otherwise arising in connection with it. By receiving this information, you specifically acknowledge and agree that some of the information contained herein has been provided to the Beneficiaries by third parties and that the Beneficiaries accept no responsibility for any inaccuracy, misstatement, misrepresentation or omission, in relation to that information. This document may not be transmitted, copied or distributed, directly or indirectly in the United States or to any US person (as that term is defined in Regulation S under the U.S. Securities Act of 1933, as amended) including any U.S. resident, any partnership or corporation or other entity organised or incorporated under the laws of the U.S. or any state thereof, any trust of which the trustee is a U.S. person or any agency or branch of a foreign entity located in or resident of the United States. The recipient agrees to be bound by these terms.

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