Flexiroam : Quarterly Update and Appendix 4C - December 2021

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White label connectivity solutions

Flexiroam has launched a white label offering, where resellers can offer data to their customers, which they market using their own brand. This new initiative is expected to drive a substantial increase in data consumption over time, via third party channels. The three clients signed during Q3, will start to generate cash and revenue on a monthly basis once onboarded late in Q4.

Wave Rewards

In November, Flexiroam signed its first white label data agreement with leading Southeast Asian mPOS service provider Wave Rewards, to provide connectivity across Malaysia, Thailand, Indonesia and China for an initial 5-year term. Wave Rewards will pay Flexiroam a monthly fee for each terminal connected to Flexiroam's network and the contract is projected to provide A$800k of annualised revenue to Flexiroam, once all committed SIMs are rolled out and activated.

BP Mobile

Flexiroam signed a white label eSIM agreement with leading mobile app developer BP Mobile, who will provide data in a bundled offering via their Second Phone Number app, which has 100k monthly active users. Flexiroam will initially provide connectivity for plans that cover the USA, Europe and the Americas and the agreement is expected to provide annual revenue of A$275k, based on BP Mobile's monthly sales forecasts.

Global Wireless Telecom

In December, the Company signed a data reseller agreement to New York based Global Wireless Telecom, who will be reselling data to its customers travelling internationally, from January, with a focus on the China business market. The contract has an initial term of five years, provides exposure to 30k customers based in New York, with one-third traveling to China annually, and is expected to provide up to A$600k of revenue to Flexiroam during FY23.

Travel partnerships to drive customer acquisition

Flexiroam has entered new partnerships and renewed existing partnerships, increasing consumer visibility of Flexiroam Travel products, and driving growth in data consumption.

BIG Rewards

During November, Flexiroam expanded its merchant partnership with AirAsia's BIG Rewards Program to include the Philippines. Flexiroam users across the ASEAN region will receive one BIG Point for every $1 USD spent on Flexiroam products, redeemable at more than 300 merchants. Big Rewards is the region's leading points platform, and the merchant partnership covers 6.7 million active users, across Thailand, the Philippines and Indonesia.

In December, Flexiroam initiated a co-branding campaign with AirAsia Card Indonesia and Thailand, which will see Flexiroam actively promoted to 600k potential travel customers. The initiative will provide Flexiroam members who purchase data using an AirAsia credit or debit card issued by Permata Bank or Bangkok Bank with 20% additional loyalty points as a bonus. The offer will commence on 1 February 2022, and will be jointly promoted by BIG Rewards, Permata Bank and Bangkok Bank to ensure it receives significant market exposure.

Tune Protect

Flexiroam formed its inaugural partnership in the Middle East with Tune Protect EMEIA in November, providing free starter packs for Tune Protect EMEIA's partners & their customers, to be offered within their travel insurance packages. Tune Protect EMEIA is an online digital facilitator of travel and lifestyle products across the middle east region, reaching over 1,000 travel

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partners facilitating more than 500,000 travel products per annum. The partnership adds another important distribution channel for Flexiroam Travel roaming data packs.

Following the quarter end, Flexiroam formed a partnership with Tune Protect Malaysia, where Flexiroam will provide free e-SIMs and 3-day 500MB Global Data Plans to travel insurance customers who purchase the Covid Travel Pass+.

Mastercard

In December, Flexiroam announced that the Global Data Plan partnership with Mastercard has been extended to cover Calendar Year 2022. Under the extended agreement, Flexiroam will receive A$340k upfront for data purchases in February 2022, which are offered to cardholders as a reward. Eligible Mastercard holders at participating Asian banks will continue to be rewarded with data packs from Mastercard, and be eligible to receive a 15% discount on Flexiroam data plan purchases. The program is active in Taiwan, Vietnam, India, Indonesia, Thailand and Hong Kong, with a total of 20 banks added to the program to date.

Korean Air

During the quarter, Korean Air renewed its IoT partnership for a further six months, providing connectivity to 2,840 pilots via eSIM to download flight and weather plans in the cockpit. The renewal provides annualized recurring revenue of A$60k and demonstrates Flexiroam's ability to provide stable connectivity in any part of the world.

First European Internet of Things white label contract signed

In December, Flexiroam launched a new IoT Plug and Play offering, which provides customers with up to 10 years' of connectivity services for a one-time payment. Plug and Play offers 500MB of data for a flat fee of USD $11.50 and is suited to low consumption use cases.

Flexiroam successfully signed its first Plug and Play contract with Netherlands based IoT system integrator Thingsdata in January 2022, with the first purchase of bundled SIM cards and data packs providing A$25k. The deal is Flexiroam's entry into the large European IoT market and helps to showcase the breadth of IoT connectivity applications Flexiroam can power.

World's Best Travel Communication Provider 2021

Flexiroam was awarded the World's Best Travel Communications Provider 2021 in December, at the inaugural World Travel Tech Awards, which recognise, reward and celebrate excellence in travel technology through an annual awards programme.

Successful A$1.5 million capital raising

Flexiroam raised a total of $1.5 million at A$0.04 per share in October, to accelerate growth initiatives, including:

• Developing new eSIM solutions to capture IoT demand;
• Executing on the growing pipeline of Flexiroam Solutions opportunities;
• Hiring sales & engineering resources across Europe; and
• Driving global penetration and substantial revenue expansion in FY23.

The funds were raised from existing major shareholders and sophisticated investors, at an 18% premium to the stock's closing price preceding the raise.

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Continued strong financial performance

The Company delivered revenue of A$1.1 million, a significant increase of 116% on the prior corresponding period (Q3FY21: A$514k) and up 40% compared to the previous quarter (Q3FY22: A$793k). The Q3 revenue result was 6% above the budget of A$1.04 million.

Flexiroam received cash receipts of A$963k, up 166% on the prior corresponding period (Q3FY21: A$363k) and up 42% on the previous quarter (Q2FY22: A$680k), primarily driven by travel retail reflecting ongoing improvements in Digital Marketing.

Total operating cash outflows of A$1.7 million, inclusive of A$100k of one-off costs, were 26% higher than the previous quarter (Q2FY22: A$1.4 million), reflecting the build out of the global team and higher operating costs, as data consumption increased. The Q3 burn rate excluding one off costs amounted to A$613k, which is 11% below the previous quarter (Q2FY22; A$692k).

Payments to Related Parties and their associates during Q3FY22 were comprised of executive director salaries and fees and non-executive director fees of approximately A$141k.

Flexiroam ended the quarter with a strong cash balance of A$2.25 million.

Investor Webinar

Flexiroam CEO Marc Barnett will host an investor webinar regarding the Company's quarterly update on Monday 31st January 2022 at 3:00pm AEDT. The presentation will be followed by a Q&A session.

For those wishing to join the webinar, pre-registration is required by following the link below:

https://us02web.zoom.us/webinar/register/WN_eOLPmiNCQcyAcStrOjYEVQ

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AUTHORISED BY THE BOARD OF DIRECTORS