INVESTOR PRESENTATION Global technology and value-added solutions - PowerPoint PPT Presentation

INVESTOR PRESENTATION Global technology and value-added solutions group that supports electronic payments acceptance in a multi-channel environment

SAFE HARBOR STATEMENT Net Element, Inc. is traded on the NASDAQ Capital Market under the Dcker symbol “NETE” This presentaDon is for discussion purposes only. All prices and rates referenced herein are indicaDve and subject to market condiDons. The material is based upon informaDon that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. The material available in this presentaDon may contain forward-looking statements, which are subject to risks, uncertainDes and assumpDons. In some cases, you can idenDfy these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expect”, “plan”, “anDcipate”, “believe”, “esDmate”, “predict”, “opDmisDc”, “potenDal”, “future” or “conDnue”, the negaDve of these terms and other comparable terminology. Such forward-looking statements are based on current plans, esDmates and expectaDons and are made pursuant to the Private SecuriDes LiDgaDon Reform Act of 1995. Forward-looking statements are based on known and unknown risks, assumpDons, uncertainDes and other factors. The Company’s actual results, performance and achievements may differ materially from any future results, performance, or achievements expressed or implied by such forward- looking statements. We do not assume responsibility for the accuracy or completeness of any forward-looking statement and you should not rely on forward-looking statements as predicDons of future events. We are under no duty to update any of these forward- looking statements to conform them to actual results or revised expectaDons. This presentaDon contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accounDng principles. Such non-GAAP financial measures include: general and administraDve expense before non-cash compensaDon expense. Management uses these non-GAAP financial measures to assess the performance of Net Element’s core business. Net Element believes that these non-GAAP financial measures provide meaningful addiDonal informaDon about Net Element to assist investors in evaluaDng Net Element’s operaDng results. These non-GAAP financial measures should not be considered as a subsDtute for operaDng results determined in accordance with GAAP and may not be comparable to other similarly Dtled measures of other companies. Any investment in Net Element will be subject to certain risks related to the nature of the Company’s business and the structure and operaDons of the Company. Any investment in the Company should be made only with an appreciaDon of the applicable risks, which are described in the Company’s filings with the SEC. www.netelement.com www.netelement.com 2

COMPANY OVERVIEW NET ELEMENT OVERVIEW Net Element, Inc. (NASDAQ: NETE) (“Net Element”) is a global ‣ technology and value-added soluDons group ‣ Provides secure, reliable, easy-to-use and cost-effecDve acceptance, processing, support, authorizaDon and se\lement services for tradiDonal, mobile and alternaDve payments in a mulD-channel environment Fully-integrated payment soluDons incorporaDng fraud ‣ management and tokenizaDon technologies Developing decentralized blockchain ecosystem to act as a ‣ framework for a number of value-added payment services Diversified client base with strong recurring revenues ‣ KEY STATISTICS - 2017 $2.8 154 20+ BILLION MILLION MILLION TOTAL VOLUME TOTAL TRANSACTIONS ONLINE USERS www.netelement.com 3

INVESTMENT HIGHLIGHTS LARGE & GROWING INDUSTRY Large and growing market with favorable economic trends ‣ ‣ The use of non-cash forms of payments including mobile payments has steadily increased over the past then years and conDnues to climb RECURRING REVENUE BUSINESS MODEL Focused on fast growing and highly profitable market segments ‣ ‣ Proved business in the United States with recurring revenues ‣ Diverse, low-risk, recession proved recurring revenue stream ‣ Strong established customer & partner base RESILIENT OPERATING LEVERAGE ‣ Resilient business with strong recurring revenue, diversified customer base and good visibility ‣ Full front and back office operaDons including risk, underwriDng, deployment, acDvaDon, client services, data entry and retenDon ‣ Significant, untapped opportuniDes for expansion and growth PROVEN MANAGEMENT TEAM ‣ Track record of scaling businesses and delivering shareholder value ‣ Proven achievements in new product launch ‣ Proven achievements in new market development ‣ Relentless focus on value creaDon and growth www.netelement.com www.netelement.com 4

COMPANY HIGHLIGHTS POSITION FOR GROWTH Received $7.55 million insDtuDonal investment to support growth ‣ ‣ Ensured conDnued compliance with NASDAQ lisDng requirements 2017 ‣ Launched business unit focused on blockchain technology FOCUS ON VALUE-ADDED RELATIONSHIPS Expanded relaDonships with financial insDtuDons ‣ ‣ Expanded service offerings to over 100 payment methods internaDonally 2016 ‣ Annual revenues increased 35% ACQUISITION OF ONLINE PAYMENT PLATFORM ‣ AcquisiDon of PayOnline, leading online payment plahorm ‣ Expanded PayOnline to selected emerging markets 2015 ‣ Annual revenues increased 89.5% OPERATIONAL OPTIMIZATION ‣ Debt reduced from $31 million to $3 million ‣ G&A reduced from $12 million to $7 million, excluding non-cash items 2014 ‣ $10 million credit facility to implement strategic iniDaDves FOCUS ON MOBILE PAYMENTS AND VALUE-ADDED TECHNOLOGIES ‣ AcquisiDon of Unified Payments ‣ AcquisiDon of ApDto 2013 ‣ Divests of all non-core assets, focuses on financial technologies www.netelement.com www.netelement.com 5

PORTFOLIO OF BRANDS We focus on maximizing opportuniDes for our brands. Our vision is to set the standard for global cross-channel payments acceptance and value-added service offerings with focus on creaDon of unified global transacDon acceptance ecosystem One of the leading providers All the features and No fees. Merchants get of payment acceptance building blocks to make the full purchase price for soluDons in the United States global commerce a reality the transacDon Payment acceptance without Visual POS soluDon includes Enterprise-class borders. Fully-integrated all that the business needs to infrastructure tools for Sales Central online processing plahorm streamline operaDons back-office processing Our technology Allow users to make purchases Seamlessly redefine and development team brings by charging payments to their modernize experience at the ideas to life mobile phone bill POS and behind the scenes www.netelement.com www.netelement.com www.netelement.com 6

MANAGEMENT TEAM EXECUTIVE MANAGEMENT OLEG STEVEN JONATHAN ANDREY DAYAN FIRER WOLBERG NEW KROTOV MARTINEZ Chief ExecuDve Chief Legal Chief Financial Chief Technical Investor Officer, Director Officer Officer Officer RelaDons BUSINESS LINE MANAGEMENT VLAD ALEXANDER SHAWN GIOVANNI CHRISTA SADOVSKIY BORISOV BROWN DI FEBO SHOOK Head of Integrated Head of Online Head of Risk Head of Acquiring Partner Payments SoluDons Management & Compliance Growth BOARD OF DIRECTORS KENES DREW HOWARD JON JAMES RAKISHEV FREEMAN ASH NAJARIAN CAAN Chairman Director Director Director Director Noted global 30+ yrs payments international CNBC cast member accomplished industrialist experience value-added specialist “Hallime Report” actor & director TEAM EXPERIENCE www.netelement.com www.netelement.com 7

REVENUE GROWTH 2013-18 CAGR 26.4% $ 60.4 For the five-year period ending December 31, 2017, $ 54.3 Net Element has executed several complex iniDaDves and conDnued to deliver double digital $ 40.2 percentage year-over-year organic growth $ 21.2 $ 18.7 223% GROWTH 2013 2014 2015 2016 2017 Revenue growth over five-year period ending December 31, 2017 www.netelement.com www.netelement.com www.netelement.com 8 8

RECURRING REVENUE STREAMS We have amassed a broad porholio of value added applicaDons that leverage the growth in payments to create a diverse array of recurring revenues and differenDate us in the marketplace. Recurring service revenue is the primary revenue component for the Company TRANSACTION PROCESSING TRANSACTION SOFTWARE DATA & PROCESSING LICENSE ANALYTICS RECURRING REVENUE Fees charged on per Solware as a license Business Intelligence SOFTWARE DATA & transacDon and (SaaS) model allows tools are priced based on LICENSE ANALYTICS processed volume basis merchants to get point- usage. Percentage is for the payment of-sale solware without charged over volume acceptance services upfront capital processed, analyzed and provided to the merchant expenditure presented www.netelement.com www.netelement.com 9