annual MEETInG 2013 _ 30 ocTobEr 2013 / / aGEnDa / chaIrMans - PowerPoint PPT Presentation

annual MEETInG 2013 _ 30 ocTobEr 2013 / /

aGEnDa / chaIrMan’s rEporT / / a fEw worDs froM ThE DIrEcTors / / chIEf ExEcuTIvE’s rEporT / / cfo rEporT / / orDInary busInEss / / ElEcTIon of ThE DIrEcTors / / appoInTMEnT of ThE auDITors / / coffEE anD TEa /

chaIrMan’s rEporT _ annual MEETInG 2013 / / 30 ocTobEr 2013 GrEG cross boarD chaIrMan

focus for ThE boarD _ lIsTInG/ ExEcuTInG coMplIancE / / our plan / / rEporTInG/ GovErnancE / / KpIs / / 4 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

our MarKET _ Ecommerce is a large, fast saas spending by we expect increased growing market ecommerce is large spending on and growing >> USD one trillion forecast >> Customer conversion >> 19% CAGR >> 16% CAGR >> Marketing Global spEnDInG on sofTwarE by Global onlInE rETaIl sEcTor valuE / / EcoMMErcE provIDErs / / Total software 1,200 20 forecast CAGR: 11% 1,000 Global forecast 15 CAGR: 16% 800 US$ billion US$ billion 600 10 400 5 SaaS forecast 200 CAGR: 19% 0 0 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F United States Rest of the world SaaS Software Other Software 5 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

our sTraTEGy _ annualIsED rEcurrInG rEvEnuE 1 nZ$MIllIon / / Grow shareholder value through increasing 30 annualised recurring revenue (arr) that is: 25 >> High gross margin (77%) >> High retention rate (92%) 20 15 10 5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 PFI 6 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

annual rEsulTs hIGhlIGhTs _ our rEsulTs arE In lInE wITh forEca sT / / >> ARR of $19.26m ($19.16m forecast) >> Total revenue $18.31m ($18.29m forecast) >> Retention rate 92% (91% forecast) >> Loss $2.01m ($2.15m forecast) ExEcuTInG our nEw MarKETs ExcITInG plan, wITh arE showInG proGrEss a focus on proMIsE / / wITh proDucT hIrInG / / DEvElopMEnT / / 7 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

your boarD _ ExIsTInG boarD MEMbErs / / nEw In fEbruary / / ThanK you / / / / GrEG cross / / shaun ryan / / sarah sMITh / / GranT ryan Chairman CEO / / sTEvEn MarDEr / / MaTThEw houTMan / / saM KnowlEs 8 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

chIEf ExEcuTIvE’s rEporT _ shaun ryan wE’rE JusT GETTInG sTarTED 9 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

ovErvIEw / lEaDErshIp TEaM / / whaT wE Do anD ThE valuE our cusToMErs GET / / our MarKET lEaDInG posITIon / / our salEs anD cusToMEr carE MoDEl / / hIrInG proGrEss / / upDaTE on ExIsTInG anD nEw MarKETs / / nEw proDucTs / 10 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

lEaDErshIp TEaM _ / / roD GarrETT / / GEoff brash / / Dr. waynE Munro / / Dr. blaIr cassIDy CFO VP, Business Intelligence CTO and Co-Founder VP, Product Management and Co-Founder / / ED hoffMan / / chrIsTophEr rIlanD / / MIchaEl GranThaM VP, Global Business and VP, Customer Success Operations Manager and Corp. Dev Co-Founder 11 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

slI fIxEs baD sEarch: IMprovEs E-rETaIlErs’ rEvEnuE _ baD sEarch wEbsITE sEarch QuEry rEsulTs NOT an slI clIEnT no panTs In ThE panTs fIrsT rEsulT GooD sEarch wEbsITE sEarch QuEry rEsulTs panTs In ThE slI clIEnT panTs fIrsT rEsulT 12 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

proDucT ranGE _ lEarnInG sEarch sITE chaMpIon lEarnInG navIGaTIon slI MobIlE rIch auTo coMplETE 13 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

TEsTIMonIals _ “These increases are important because Conversion rates 203% they demonstrate the business value that Average order value 18% SLI’s solution ofgers, which delivers an almost immediate ROI” “It’s clear from the results that with Conversion rates 11% SLI’s expert assistance, our site search Revenue per visit 8% now delivers on the promise of making shopping easy and productive for our customers” “We can see that search users are Site revenue 58% from responsible for a greater share of search revenue, so it’s to our advantage to Conversion rates 3.5x make sure that as many customers as higher than non search possible conduct successful searches. SLI gives us the user tools we need to drive this increase, as well as the strong conversion and revenue performance we now enjoy.” 14 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

rEcoGnIsED sITE sEarch lEaDEr _ lEaDInG sITE sEarch provIDErs - Ir 1000 us clIEnTs / / vEnDor 2012 2013 DElIvEry MoDEl Oracle/Endeca 111 113 On premise slI systems 60 73 saas Nextopia 42 44 SaaS Adobe 44 42 SaaS Google 34 37 SaaS GSI Commerce 30 24 Platform Celebros 20 20 SaaS / On premise DemandWare 12 16 SaaS 11 15 Platform Magento 5 12 On premise Apache Solr 12 12 SaaS / On premise EasyAsk 11 10 SaaS / On premise ThanxMedia Source: Internet Retailer, August 2013 15 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

wInnInG wITh larGEr cusToMErs _ billion Dollar customers lakeshore learning case study >> SLI has 17 billion* dollar customers >> Presented at Shop.org Annual Summit >> Added 6 billion dollar companies in last year – 55% increase! >> Since implementing SLI’s flagship LearningSearch, sales +25%, >> New enterprise sales team transactions +16% and time on site focusing on these and larger +20%. clients * Customer’s revenue > US$1b 16 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

slI’s busInEss MoDEl _ subscription-based Increasing specialisation of Growth in revenue from: software as a service our direct sales team: >> Existing markets (saas) recurring revenue >> Market development >> Opportunities in model >> Direct reps new markets >> Enterprise reps >> Existing customers growing and using >> Account Managers additional products / features 17 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

cusToMEr carE MoDEl _ Each customer allocated a customer success Manager cost is built into customer success Manager works with customer and recurring fee client facing engineers YOUR CUSTOMER SUCCESS MANAGER Joe Riney 408-777-6015 joe.riney@sli-systems.com “It’s great to work with a vendor “You guys made it too easy!” “We love the SLI Product!” that’s as responsive as SLI.” happy customers mean compelling long term value potential created >> Higher retention rates with each new customer (approximately 92% by through value) >> High gross margin >> Customers as advocates (77%) coupled with high retention features 18 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

EMployEEs _ 14 % 9 % 26 % 34 % uK sTaff aDMIn salEs us sTaff 9 % proD MGT/MKT 47 % 41 % nZ sTaff EnGInEErInG 5 % 15 % cusToMEr au sTaff sErvIcE currently 131 staff stock options >> All employees >> Aligns employees with shareholders >> 4 year vesting, 1 year cliff, 10 year expiration 19 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

ExIsTInG MarKETs _ uK >> Expanded Sales, Customer Success, and Engineering teams >> Dedicated Marketing us >> Altered office >> 62% of our ARR >> Expanded Sales, Marketing and Customer Success teams >> Expanded office australia >> Expanded sales team >> Dedicated Marketing and established Customer Success team >> Stand alone office in downtown Melbourne 20 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

nEw MarKETs _ Japan >> 1st customer >> Have established partner relationships >> Improving product to meet market demands >> Establishing subsidiary >> Looking to hire our first sales brazil person >> 110% growth >> Good size opportunities >> 4 of top 10 online retailers, >> Japanese engineer hired negotiating with 3 others >> Sizeable market opportunity >> Planning on more sales people >> Brazilian engineers hired 21 / 21 / / ANNUAL GENERAL MEETING 2013 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS / SLI SYSTEMS

nEw proDucTs _ bIllIons of QuErIEs/MonTh / / history of innovative product development 1.0 hiring development engineers 0.8 2 products in beta: >> SLI Live 0.6 >> “New product” (commercially sensitive prior to release) 0.4 largest opportunity for us to outperform >> Close relationship with a growing base 0.2 of happy customers >> Large amount of activity and product data 0 MA Y JUN JUL AUG SEP OCT NOV DEC 22 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS

KEy poInTs _ GrEaT MarKET buIlDInG ouT TEaMs proDucT / / lEaDEr / / Globally / / closE larGE rElaTIonshIp poTEnTIal wITh for fuTurE cusToMErs / / proDucTs / / 23 / 23 / / ANNUAL GENERAL MEETING 2013 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS / SLI SYSTEMS

cfo rEporT _ annual MEETInG 2013 / / 30 ocTobEr 2013 roD GarrETT IT’s only bEEn a MonTh! 24 / / ANNUAL GENERAL MEETING 2013 / / SLI SYSTEMS