Flexiroam : Quarterly Update and Appendix 4C - June 2022

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"It is great to have Steve Picton join our Board as a Non-Executive Director of Flexiroam. Steve

is a highly experienced and seasoned executive with over 35 years' of technology and

telecommunications leadership experience, and I look forward to his valued contributions as we rapidly scale. I would also like to recognise the contributions of David Ong, our largest individual shareholder, who stepped down from his role as Non-Executive Director, to pursue other interests. On behalf of the Board, I would like to thank David for his many years of service."

"We are successfully executing on our growth plans and I am very excited about the opportunities

ahead of us. We expect our Solutions revenue to scale up over upcoming quarters as we continue to roll out existing deals and execute on our pipeline of opportunities. While our Product and Engineering Teams committed to ongoing improvement and development of new solutions that can be rolled out globally, our Sales Team is engaged with multiple opportunities, positioning us

well to continue to grow throughout the remainder of FY23."

Sustained growth in operational metrics

Flexiroam continued to deliver improved performance across all key operating metrics during Q1FY23. The user base continued to grow with new monthly subscribers increasing to 16.9k, up 7% on the previous quarter (March 22: 15.8k). Total installs reduced to 59.7k (Q4FY22: 82.9k) as the focus shifted toward iOS users, yielding better conversion metrics. Monthly active paying users increased to 22.9k, up 48% from the previous quarter (March 22: 15.5k). eSIM activations continued to scale up to 5.7k, increasing by 54% compared to the previous quarter (March 22: 3.7k)

Monthly data sold increased to 53.3TB, up 34% from Q4FY22, while data utilised increased to 36.6TB, up 53% from the previous quarter. The increase in new users and data sold is a forward indicator of revenue, while the increase in data utilisation indicates increased travel frequency and active adoption of the Flexiroam product whilst roaming. In Q1, Flexiroam serviced users from 178 countries in 147 destinations.

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Flexiroam Solutions provide connectivity to a range of verticals including mPOS, transport, maritime and other IoT clients. During Q1, the number of cumulative billed IoT devices increased by 31% to 169k (Q4FY22: 129k), as clients signed in Q4FY22 were onboarded. With several new IoT customers signing contracts in Q1, Flexiroam anticipates the number of billed devices to grow beyond 1 million by the end of the financial year.

Travel partnerships

During Q1, Flexiroam signed a partnership with Washington-based Gordian Software, a leading B2B technology platform providing solutions for airlines and online travel agencies to sell ancillary services to travel customers, via API integration. Gordian will be adding Flexiroam as the default ancillary for mobile data services globally, providing exposure to a vast network of potential Travel customers, via partners including Trip.com, lastminute.com, Priceline, Qantas, American Airlines and British Airways.

Flexiroam also managed to secure a deal with South-African insurance provider, Discovery Insure, to offer travel rewards to their customers by pre-purchasing discounted data packages. This allows Discovery Insure to provide an instant and safe network connectivity to their policyholders.

Flexiroam Solutions customer base significantly expanded

Flexiroam's Sales Team established new partnerships to grow the Solutions business during the quarter, entering the Wearable Technology and Maritime verticals. New agreements continue to increase the visibility of Flexiroam's connectivity solutions and will lead to growth in data consumption, cash receipts and recurring revenue over time, as contracts scale.

Wearables vertical

Flexiroam signed its first wearable technology deal with Lutikey LLC, a US based company that manufactures LutiBand Smartwatches for seniors. Under the agreement, Flexiroam will provide IoT connectivity to a minimum of 10,000 LutiBand Smartwatches which allow seniors and people with pre-existing medical conditions to be protected via geo-location, biometrics sensors and interconnections with emergency services, in the case of emergencies. The three-year agreement will provide a minimum annual volume commitment of A$135k which is expected to grow as the number of devices and data consumption increases.

mPOS Connectivity

Flexiroam continued to build its mPOS customer base, extending its existing Malaysian connectivity agreement with Pine Labs to now cover the United Arab Emirates. Pine Labs is a leading merchant commerce business that provides payment acceptance and merchant commerce solutions to customers in India, the Middle East and Southeast Asia. The deal provides monthly recurring revenue, which will increase as additional devices are rolled out.

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As at the end of Q1FY23, Flexiroam has distributed 120k SIMs across mPOS clients with 58k connected devices, contributing 93% of total Solutions revenue. The total number of connected devices is expected to expand through replacements and new device rollouts from existing and new clients across multiple regions.

Maritime Communications

Following the success of its first Maritime Communications deal signed with Nearshore Networks, Flexiroam signed connectivity agreements with Internet 4 Crew and Ship to Shore to build out this vertical.

Internet 4 Crew is a leading provider of prepaid eSIM connectivity plans for workers aboard cruise and working vessels, with customers based principally in Europe, the UK, Mexico and the United States. There is a high demand for Internet 4 Crew products, with over 200,000 eSIM products sold in the last 5 years. Demand is expected to significantly increase with maritime travel picking up as recreational cruises return. Flexiroam will leverage this demand by providing a white-label data reselling solution to Internet 4 Crew for an initial term of one year, with its customers receiving global connectivity while working at sea.

Subsequent to quarter end, Flexiroam secured another maritime communications agreement with Ship to Shore Solutions, a connectivity company providing innovative satellite communications and IT solutions to marine businesses. Ship to Shore will access Flexiroam's network to supply data to superyachts under its management. Data will be accessed by vessels within the UK and Europe, with data being pre-paid to cover the 4 month term and the option to purchase additional data when required.

White label travel connectivity

Following the successful launch of Flexiroam's white label offering in Q3FY22, Simly Store has signed a white label connectivity agreement for a two-year term. Simly Store is a leading provider of prepaid SIM cards for international travelers in Germany, with high demand from its customer base of 80,000 users for US data plans, primarily via eSIM. Flexiroam will power Simly Store's offering with its network switching technology, ensuring customers have reliable and stable connections globally.

Powering International AIDS conference

During the quarter, Flexiroam signed on to provide connectivity to the 24th International AIDS Conference, following its success for the two prior conferences. Flexiroam will provide data connectivity to conference delegates in Africa, South America & Caribbean Islands, Asia Pacific, Europe and North America, for them to participate in the hybrid conference to be hosted in Montreal, Canada.

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Continued strong financial performance

The Company delivered revenue of A$1.60 million, a significant increase of 200% on the prior corresponding period (Q1FY22: A$0.53m) and up 30% compared to the previous quarter (Q4FY22: A$1.23m). This resulted in exceeding the Q1 budget by 11%.

Flexiroam received cash receipts of A$1.73 million up 20% on the previous quarter (Q4FY22: A$1.44m) and up 369% on the prior corresponding period (Q1FY22: A$0.37m). Cash receipts from Solutions increased 1,451% from the prior corresponding period to A$163K, to now make up 9% of total cash receipts.

Payments to Related Parties and their associates during Q1FY23 were comprised of executive director salaries and fees and non-executive director fees of approximately A$135k. Flexiroam ended the quarter with a strong cash balance of A$3.58 million, which supports the Company's strategic growth plans.

Investor Webinar

Flexiroam CEO Marc Barnett will host an investor webinar regarding the Company's quarterly

update on Tuesday, 2nd August 2022 at 3:00pm AEST. 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_FnT3NRv2TqCPlllh53sngw.

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