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lateralcorp.com We make money by billing digital content and media - directly to the customers mobile phone account. February 2020 Investment Opportunity

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Page 1: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

l a t e r a l c o r p . c o m

We make money by billing digital content and media - directly to the customers mobile phone account.

Feb

ruar

y 20

20

Investment Opportunity

Page 2: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

ThisinvestmentopportunityismadeonlytopersonsresidentinNewZealandtowhomSchedule1totheFinancialMarketsConductAct2013(FMCA)appliesandisnota‘regulatedoffer’offinancialproductsundertheFMCA.Thereisnoproductdisclosurestatement,orotherdisclosuredocumentforthepurposesoftheFMCA,availabletorecipients.Accordingly,therearenotthesamedisclosuresorlevelsofprotectionavailableasunderaregulatedoffer.Noinformationcontainedhereinhasbeenindependentlyauditedorreviewedbyanyindependentthirdparty.Thisinvestorpresentationdoesnotpurporttocontainordisclosealloftheinformationthatmayberequiredtoevaluatetheopportunity.LateralProfilesLimited(LateralorLateralProfilesorCompany)reservestherighttomodifyorterminatetheopportunityatanytime.Thisinvestorpresentationmaycontainforwardlookingstatementsandforecasts.Allstatementscontainedinthispresentationthatarenotclearlyhistoricalinnatureorthatnecessarilydependonfutureeventsareforward-looking,andthewords“forecast”,“anticipate”,“believe”,“expect”,“potential”,“opportunity”,“estimate”,“plan”,andsimilarexpressionsaregenerallyintendedtoidentifyforward-lookingstatements.Forward-lookingstatementsaresubjecttovariousrisksanduncertainties.Nothinginthispresentationisapromiseorrepresentationastothefuture.Statements,estimates,projectionsandforecastsinthispresentationastofuturemattersmayprovetobeincorrect,andtherecipientiscautionednottoplaceunduerelianceonforwardlookingstatements.Recipientsshouldconducttheirowninvestigations,verificationsandassessmentsofthemeritsoftheopportunity,identifytheinformationthattheyrequireandengagetheirownprofessionaladvisers.Circumstancesmaychangeandthecontentsofthispresentationmaybecomeoutdatedasaresult.Lateralundertakesnoobligationtoupdateforwardlookingstatementsifcircumstancesorestimatesoropinionsshouldchange(exceptasrequiredbyapplicablesecuritieslaw).Lateralmayinitsabsolutediscretion,butwithoutbeingunderanyobligationtodoso,updateorsupplementthisinvestorpresentation.Anyfurtherinformationwillbeprovidedsubjecttothesetermsandconditions.NeitherthedeliveryofthisinvestorpresentationnoranyagreementmadeonthebasisthereofshallunderanycircumstancescreateanyimplicationthattherehasbeennochangeintheaffairsofLateralsincethedatethereof.Lateralexpresslydoesnotundertaketoreviewthefinancialconditionoraffairsofitsbusinessduringthelifeoftheopportunityortoadviseanyrecipientofthisinvestorpresentationofanyinformationcomingtoitsattention(exceptasrequiredunderapplicablesecuritieslaw).Exceptinsofarasliabilityunderanylawcannotbeexcluded,neitherLateralnoranyofLaterals’directors,employees,shareholders,subsidiaries,agents,advisers,oranyotherpersonwhomakesanyrepresentationorwarrantyshallhavenoresponsibilityorliabilityarisinginrespectofanyinformationcontainedinthisinvestorpresentationforerrorsoromissionsorfailuretocorrectorupdateanyinformationintheinvestorpresentation(includingresponsibilitytoanypersonbyreasonofnegligence).AnyrepresentationsorwarrantiesofLateraloranyliabilityinconnectionwiththeopportunitywillariseonlyunderandinaccordancewithanylegallybindingsubscriptionagreemententeredintobetweenLateralandaninvestor.Thisinvestorpresentationmaycontainconfidentialinformationandcannotbedisclosedordistributedtoanyonewhowasnottheintendedrecipientofthepresentation.

Important Information for Investors

Page 3: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

•  Considerable investment has already been made into product and platform development and marketing.

•  We have established a substantial presence in Europe, the worlds biggest high-value market.

•  This investment of $300,000 will continue revenue growth in UK and Europe and set the stage for a larger and higher value investment during 2020.

•  We expect large strategic investment and considerable increase in share price in 2020.

$300,000 3.75c per share

Why Invest This is an opportunity to invest during an exciting growth phase of a highly experienced digital and mobile technology company

122Please review the important information for investors on page 22

Page 4: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

222

The problem

•  Media companies and content owners can’t make any money.

•  They have no idea how to monetize content

•  Mobile phone companies are also struggling.

•  They have no idea how they will re-coup the investment in 5G.

•  The result - billions of dollars worth of pain every year in both industries.

Page 5: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

322

The solution

•  We take media and content that is currently not being commercialised

•  We then use the underutilized assets within the mobile networks to both distribute and bill for this content

•  The result – new revenue streams for both

parties

•  Our platform sits between these two parties – doing something they can’t achieve themselves

Page 6: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

•  Lateral has vast experience developing and selling digital products.

•  Revenue comes from selling digital content on

subscription plans, where the payment is billed onto the customers mobile phone account.

•  Our platform manages this entire commercial process from end-to-end.

•  Our products are selling in Europe with rapid growth of recurring subscription billing.

•  Europe is the world’s biggest high-value market

and our platform is an ideal fit for that market.

•  We are positioned for dramatic growth in the next 12 months.

422

Business Overview

Page 7: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

•  Lateral is a pioneer and global leader in the technology that allows a customer to be billed directly onto their mobile phone account.

•  This technology called Direct Carrier Billing (DCB) has been accepted by most countries in Europe.

•  We have extensive experience developing technology for multiple telecom networks and media brands.

•  This expertise enabled us to build a digital platform to revolutionize the way consumers use and pay for digital media and content.

522

Technology Expertise

Page 8: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

Our flagship European product

•  Originally a co-operative development between Lateral and Vodafone.

•  Developed in English and translated to other languages.

•  Successfully growing in UK and moving into other European markets.

•  High quality user experience, attractive design, very rich functionality.

•  Rapid growth and user adoption.

622

Page 9: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

•  The social messaging market is huge.

•  There is a big gap in between dating services and general messaging services like Facebook Messenger.

•  UniqU is a blend of both these product types and effectively fills this gap.

•  A paid subscription service targeted at customers who want discreet online interactions but wish to avoid dating sites.

•  This market happily accepts high subscription prices.

•  The UniqU audience is mature and privacy conscious. 7

22

Where UniqU fits

Page 10: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

822

UniqU wins on price and terms

E-harmony

Match.com

Tinder Gold

UniqU

£39.99 per month

£29.99 per month

£29.99 per month

£4.00 per week

DCB - charging to mobile bill makes this pricing plan possible•  Prices include VAT where applicable (20% in UK) •  Subject to change at any time

Page 11: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

922

The most efficient sign up flow in the market

click on an ad

click to pay

click to confirm

paid and subscribed

DCB payment technology makes this flow possible

Page 12: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

•  We specialise in ’selling’ online

•  Our team works with multiple ad partners including Google, Facebook, Instagram and YouTube.

•  We regularly have 5,000 customer engagements and create 50 sales of UniqU per day in UK alone.

•  During 2020 we will quadruple these numbers.

1022

We are Digital Sales Specialists

Page 13: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

•  Quality product designed and built by Lateral

•  Unique place in high value market

•  Compelling price point for customers

•  Easiest sign up flow in the market

•  Powerful online sales methods

•  Rapid growth in UK

•  Opening in Poland and Spain soon

•  Across Europe in 2020 11

22

In Summary

Page 14: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

1222

we replicate this for other content and media owners.

Imagine if

Page 15: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

Who Benefits? Every business that owns digital content and media is looking for new ways to make money.

•  News & magazines •  Sports •  TV, video, music •  Games •  Health and diet •  Betting tips •  Financial tips •  Religion •  Education

1322

Lateral can monetise that content

Page 16: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

1422

What we offer media partners

Build it – we turn content and media into engaging mobile sites

Bill it - using our mobile payment systems

Manage it - all operational and compliance issues

Sell it – using our online sales expertise and platform

We can put any digital content onto a mobile

phone

and turn it into

SUBSCRIBERS AND

REVENUE

Page 17: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

1522

•  The future of digital business lies in the ability to sign customers into subscription plans.

•  Lateral specialises in digital subscriptions.

•  Our subscriptions are billed to the customer’s phone account.

•  Generates an ongoing stream of recurring revenue.

•  Builds a base of customers to remarket to.

Australian Broadcasting Corporation 22 Feb 2019

It’s all about subscriptions

Page 18: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

•  Established in UK market

•  Rapid growth of subscribers

•  UniqU translated into Polish and Spanish

•  Live in Poland

•  Seeking approval to launch in multiple countries – Spain, Norway, Holland

•  In discussion with multiple content and media partners

•  Sales reps in UK and mainland Europe

1622

Current status

Page 19: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

•  Continue subscription growth in Europe •  Bring on new subscription partners •  Raise $300,000 growth capital at 3.75c per share

•  Strategic investor to accelerate growth in Europe and take business to next level

•  Targeting $5 million at over 10c per share in 2020 •  Already in discussion with these potential investors

•  Leverage upcoming changes to digital landscape •  Huge opportunities in digital subscriptions •  Seek exit event at over $1 per share

1722

Growth and capital raising strategy:

Page 20: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

European Rollout

United Kingdom 80 million phone accounts

now

Spain and GSA 138 million phone accounts

Q1 2020

Future European region 370 million phone accounts

2020 +

588 million mobile phone accounts - supportive regulation – high GDP - sophisticated market

1822

Page 21: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

1922

The Platform

Viaduct is a one-stop-shop for any business that wants to earn money from digital content and media.

Integrates

•  Marketing

•  Customer Acquisition

•  Billing

•  Content Management

•  Customer Management

•  Partner Management

•  Compliance Management

•  Socialization

•  Messaging

•  Analytics

Page 22: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

Key Performance Data

Revenue Average Gross Revenue Per User per month, net of VAT

CPA Average cost to acquire a customer

Return Lifetime net gross value of a customer vs the cost to acquire the customer

Cost of Service Direct customer support costs like: call center, customer support & training, etc. The information shown here are not prepared and presented in accordance with GAAP. They are indicative numbers presented for the purpose of explaining the core operational metrics used within the business. These numbers are a projection based on early data gathered from the market, for the current products deployed in the UK market. Multiple conditions may affect future actual data.

Indicative Metrics (UK)

Revenue (net VAT)

$26 - $37 per month (NZD) per customer

Recovery months

3 Months taken to recover average Cost Per Customer Acquisition

Return 3+ Average return on investment into customer acquisition

Cost of Service < 10%

2022

Page 23: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

•  The offer is being made to all existing investors and new investors

•  The amount raised is $300,000. The company reserves the right to accept oversubscription of the offer.

•  The minimum investment amount is $5,000

•  There is no maximum amount for eligible investors.

•  Shares are issued and Share Registry is managed by LINK Market Services

•  All investments are subject to the prevailing regulations and laws of New Zealand. The may be circumstances where participation in the offer is refused due to these regulations and laws.

•  For application forms contact Roger Grice: [email protected] 021 749 646

What to do now Details of the offer

Contact Roger Grice 021 749 646

[email protected]

2122

Page 24: Investment Opportunity€¦ · • Considerable investment has already been made into product and platform development and marketing. • We have established a substantial presence

l a t e r a l c o r p . c o m

We make money by billing digital content and media - directly to the customers mobile phone account. THANK YOU