Investor presentation April 2015
Important notice The information set out in this document and any accompanying management presentation (collectively the Material) has been prepared by 99 Wuxian Limited (ASX : NNW) (99 Wuxian) for the purpose of providing an introduction of 99 Wuxian to interested analysts and investors (Recipient) and for no other purpose. The information in the Material is a summary only and does not purport to be complete or provide all information which is necessary in order to assess whether to acquire CHESS Depositary Interest (CDIs). in 99 Wuxian. It does not constitute an opinion or recommendation with respect to 99 Wuxian and whether a Recipient should invest or recommend an investment in 99 Wuxian. The Material does not constitute an offer for or an invitation to the public to subscribe for CDIs in 99 Wuxian. If an offer is made for subscription for CDIs in 99 Wuxian, such offer will only be made to and capable of acceptance by persons to whom the offer is made and only where the offer has been made in compliance with the laws of the relevant governing jurisdiction in which the offer is received. An investment in 99 Wuxian Limited is subject to investment and other known and unknown risks. This Material does not constitute investment, legal, accounting, regulatory, taxation or other advice and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should undertake their own independent review, investigations and analysis of 99 Wuxian, consider the appropriateness of the information in this Material having regard to their own objectives, financial situation and needs, seek further information if required and seek such advice as the Recipient considers appropriate including legal and taxation advice appropriate to their jurisdiction. 99 Wuxian and its directors, officers, associates and employees and associated companies and businesses (collectively 'the Providers') make no representations or warranties, express or implied, or provide any guarantees regarding the likely investment returns, the performance of CDIs in 99 Wuxian, the suitability of CDIs for any investor, any particular tax treatment or the accuracy, completeness or adequacy of information contained herein or any accompanying management presentation. The Recipient must make and rely on its own assessment of the Material and whether to invest in or recommend investment in 99 Wuxian. The Providers have not independently verified the information and data in or referred to in the Material. Except insofar as liability under any law cannot be excluded, the Providers have no liability to the Recipient or any other person arising in respect of the information contained in this Material or in any way for errors and omissions (including responsibility to any person by reason of negligence). To the maximum extent permitted by law, 99 Wuxian excludes all liability for any loss (including consequential loss or damage), suffered or incurred by the Recipient or any other person, however caused (including negligence) as a result of the use of, or reliance on, this Material. 99 Wuxian is under no obligation to correct, update or revise this Material or anything referred to in this Material which comes to its attention after the date of publication, whether as a result of new circumstances affecting 99 Wuxian or otherwise. Any opinions expressed in this Material are statements of 99 Wuxian as of the date of publication and are subject to change without notice. This Material may contain forward looking statements. These forward looking statements are provided as a general guide and should not be relied upon as an indication or guarantee of future performance. They are by their nature, only predictions and are subject to inherent risks and uncertainty. The Providers do not give any assurance as to their accuracy. These statements are based on current expectations, estimates and projections about 99 Wuxian's business, the industry in which it operates and management’s beliefs and assumptions. Such matters require subjective judgment and analysis and may be based on assumptions which are incorrect. A Recipient should undertake their own independent review to determine the accuracy and robustness of the forward looking statements. 2
99 Wuxian owns and operates an m-commerce platform which is embedded within the mobile applications of China's leading financial institutions. 99 Wuxian aggregates over 300 million high quality consumers and leading merchants providing a wide range of products and services 3
Contents 1. Company overview 1 2. Investment highlights 2 3. Financial performance 3 4. Growth strategy and outlook 4 5. Appendix 5 4
1. Company overview 5
Introduction to 99 Wuxian A leading gateway to Chinese m-commerce • Proprietary m-commerce technology platform embedded within the mobile apps of our business partners • Established relationships with leading Chinese bank, telecommunications and insurance companies • Founded by Handpay in 2011 and listed on ASX in October 2013 +320 million 43 million mobile banking app users registered users 33 million +3,000 transactions in FY2014 virtual and physical goods available 60 155 leading business partners Top-tier merchants RMB 8.2bn / AUD 1.5bn RMB 163.2mm / AUD 29.3mm gross transaction value in FY2014 total revenue in FY2014 Note: RMB translated into AUD at the average rate of AUD/RMB of 5.5634 for the period 1 January 2014 to 31 December 2014. 6
Platform overview CONSUMERS marketplace MERCHANTS Cash Virtual goods Proprietary technology Installed user base Select universe of 155 platfrom embedded of +320mm top-tier merchants Loyalty points within Physical goods the mobile applications of 60 leading Chinese bank, telecommunication & insurance companies BUSINESS PARTNERS MERCHANTS 7
Platform overview (cont’d) 99 Wuxian provides customers with two convenient methods of payment Cash payment Loyalty point redemption • 79% CY2014 gross transaction value 1 • 21% CY2014 gross transaction value 1 • • Payment made via a customers bank account(s) linked to the Payment made via the redemption of loyalty points earned through marketplace business partner loyalty programs • • Marketplace directly accessible in over 320mm mobile banking 4 of our 60 business partners are contracted loyalty points partners application downloads – 99 Wuxian is currently undertaking platform testing with a number • Convenient and flexible for frequent and casual use of other business partners • 99 Wuxian is the only mobile marketplace that allows users to convert online and offline bank loyalty points into online transactions • Top physical goods sold • Top virtual goods sold – Electronics – Mobile top-up – Home decorations – Mobile gaming – Accessories – Electronic coupons – Food products – Travel products – Handbags & suitcases 1. Based on unaudited quarterly management accounts. Loyalty points redemption includes test volumes for un-contracted business partners. 8
Revenue model 99 Wuxian generates revenue through commissions paid by merchants on transactions completed on the platform Revenue flow 1 2 3 4 Customer Bank settles 99 Wuxian 99 Wuxian CASH transacts on with Handpay commission settles PAYMENT 99 Wuxian clearing for deducted with merchant marketplace 99 Wuxian 99 Wuxian pays Handpay service fee 1 2 3 4 Customer 99 Wuxian 99 Wuxian Business partner LOYALTY transacts on settles commission settles POINTS 99 Wuxian with merchant deducted with 99 Wuxian marketplace 9
2. Investment highlights 10
Key investment highlights 1 C OMPELLING I NDUSTRY D YNAMICS 2 M ULTIPLE G ROWTH D RIVERS 3 H IGH B ARRIERS TO E NTRY 4 H IGHLY S CALABLE AND F LEXIBLE T ECHNOLOGY P LATFORM A TTRACTIVE U SER E CONOMICS F ROM Q UALITY C ONSUMERS 5 S TRONG G ROWTH P ROFILE 6 11
Compelling industry dynamics Chinese m-commerce is a massive market opportunity E- commerce is growing rapidly in China… … with m -commerce experiencing outsized growth 2x 59% A$937bn A$227bn e-commerce m-commerce market CAGR growth U.S. A$567bn A$388bn A$36bn U.S. A$339bn 2013A 2017E 2013A 2017E Chinese m-commerce market to grow 6x over the medium term Note: Exchange rate of 6.14 RMB to US$ and 1.29 A$ to US$ 12 Sources iResearch, National Bureau of Statistics, PBOC, management estimates
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