15 October 2014 ASX Market Announcements Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000

INVESTOR PRESENTATION

Please find attached an Investor Presentation which Emerchants Limited’s (ASX: EML) Managing Director, Tom Cregan, will be presenting to investors at the Merrill Lynch Emerging Stars Conference in Melbourne on 16 October 2014.

-ENDS-

For further information, please contact:

Tom Cregan Managing Director Emerchants Limited Ph +61 (0)488 041 910

About Emerchants Limited

Emerchants is led by Managing Director, Mr Tom Cregan, and is a financial services company that specialises in the pre-paid financial card market. Emerchants is focused on the twin goal of delivering high quality payment systems to its customers and superior returns to its shareholders.

Head Office| Level 2, 26 Commercial Road, Newstead, QLD 4006 Postal| Locked Bag 5, Fortitude Valley, BC, QLD 4006| Phone 07 3607 0100| Free Phone 1300 739 889

Emerchants Limited ACN | 104 757 904

www.emerchants.com.au

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BAML Emerging Stars Conference October 2014

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emerchants refers to the Emerchants Group which contains Emerchants Limited and its wholly owned subsidiaries including Emerchants Payment Solutions Limited.

This document is confidential and is intended only for the use of the person(s) to whom it is presented. It may not be reproduced (in whole or in part) nor may its contents be divulged to any other person without the prior written consent of emerchants. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities. It is an outline of matters for discussion only. Any person receiving this document and wishing to effect a transaction discussed herein, must do so in accordance with applicable law. Any transaction implementing any proposal discussed in this document shall be exclusively upon the terms and subject to the conditions set out in the definitive transaction agreements.

You may not rely upon this document in evaluating the merits of participating in any transaction referred to herein. This document contains selected information and does not purport to be all-inclusive or to contain all of the information that may be relevant to your participation in any such transaction. This document does not constitute and should not be interpreted as either a recommendation or advice, including investment, financial, legal, tax or accounting advice. Any decision with respect to participation in any transaction described herein should be made based solely upon appropriate due diligence of each party.

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2014 Emerchants Limited.

Important Notice

We believe the information provided herein is reliable, as of the date hereof, but do not warrant its accuracy or completeness. In preparing these materials, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. Without limiting the generality of the foregoing, no audit or review has been undertaken by an independent third party of the financial assumptions, data, results, calculations and forecasts contained, presented or referred to in this document. You should conduct your own independent investigation and assessment as to the validity of the information contained in this document and the economic, financial, regulatory, legal, taxation, stamp duty and accounting implications of that information. Except as required by law, emerchants and its respective directors, officers, employees, agents and consultants make no representation or warranty as to the accuracy or completeness of the information contained in this document, and take no responsibility under any circumstances for any loss or damage suffered as a result of any omission, inadequacy, or inaccuracy in this document.

Nothing in this document contains a commitment from emerchants to issue securities, to provide debt, to arrange any facility, to invest in any way in any transaction described herein or is otherwise imposing any obligation on emerchants. emerchants does not guarantee the performance or return of capital from investments.

None of the Emerchants Group entities noted in this document are authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia).

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Mission empowering | Your Money

To transform the commercial payment solutions landscape

by inspiring companies and their customers to demand more control, more transparency and more flexibility over their money.

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Our Value Proposition F

or p

erso

nal u

se o

nly

BPAY / DE out fee

Sources of Revenue Are Balanced

emerchants

software

Australian Payments Network

ADI

Merchant

Cardholder

Cardholder makes a purchase Transaction data

captured and transmitted

Customer info system authorises transaction and adjusts cardholder

account balance

Transaction authorised

Funds released

Merchant is paid

Authorisation is received Merchant settlement details are transmitted to the ADI

Interest earnings

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Card Production

emerchants issues prepaid card

Transaction request sent to emerchants

Transaction Fees

Bill Payments

CAR fee

Set up fee

FX Fees

Interchange Revenue

Load Fees Breakage Dormancy

Fees

35% of Revenues 44% of Revenues

21% of Revenues

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Performance Metrics – FY15 Trading Update FY14 vs. FY13 and trading update to Q1FY15

Q1FY14 vs. Q1FY15 Total Dollars Loaded: +98%

Sep 14 vs. Sep 15 Number of Active Accounts: +8%

-

20

40

60

80

100

120

140

160

180

200

FY13 FY14 Q1FY14 Q1FY15

Millions Total dollars loaded onto prepaid platform ($m)

Non-reloadable

Reloadable

135.30m

168.50m

31.79m

62.80m

-

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

FY13 FY14 Q1FY14 Q1FY15

Millions Total number of Active Accounts (m)

Non-reloadable

Reloadable

0.52m 0.54m 0.52m 0.56m

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Q1FY14 vs. Q1FY15 Transactions: +58%

Sep 14 vs. Sep 15 Stored Value: +53%

Performance Metrics – FY15 Trading Update FY14 vs. FY13 and trading update to Q1FY15

-

5

10

15

20

25

30

35

40

45

FY13 FY14 Q1FY14 Q1FY15

Millions Stored Value ($m)

Non-reloadable

Reloadable

20.86m

27.38m

20.23m

31.00m

-

1.00

2.00

3.00

4.00

5.00

FY13 FY14 Q1FY14 Q1FY15

Millions Key Transactions (m)

Non-reloadable

Reloadable

3.94m

0.96m

4.48m

1.52m

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Trading Update FY15 – Sales Pipeline

• Existing Business: • Previously advised flat guidance for non-reloadable versus FY14 but appear on track for 5-10%

growth in FY15 • Reloadable metrics up 182% on Loads, 210% on Transactions and 104% on Stored Value

versus PCP

• Consumer Lending Vertical: Program with CCIG (Cash Converters Franchisee) launches October 20 Partnership with MoneyMe announced with launch in November Retail loan distribution

Gambling Solutions Vertical:

Ladbrokes EFTPOS and Visa programs in market BetStar and Bookmaker programs to launch mid October Sportsbet and Bet Easy launches delayed until after the Melbourne Cup In discussions with other corporate bookmakers for launch 2H15 Cash load functionality

Salary Packaging Vertical:

No material contract wins to advise at this stage

Queensland Government Agency engagement process is underway with multiple CFO forums commencing October 16

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New Re-Loadable Programs in Market

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New Re-Loadable Programs Launching in FY15

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Financials Statement of Profit and Loss for 12 months ended 30 June 2014

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• Flat revenue growth due to slowdown in gift volumes and set up fees for new programs falling into July 2014, the impact of which would have been revenue growth of 18%.

• Gross profit declined over the prior year by 7% due to the flat line performance of our non-reloadable business and the abovementioned delay in set up fees falling into July 2014.

• Employment related overhead expenses decreased by 7% to $4.89m, mainly due to the Non-executive Directors choosing to forego Director’s fees for the period from March 2013 to June 2014.

• Other overhead expenses increased by 16% mainly attribute to systems infrastructure and incremental software development investment.

('000) 12 months to June 13

12 months to June 14 % ∆

Breakage income 984 1,152 17%

Establishment income 1,290 1,097 (15%)

Transaction fees 1,925 1,988 3%

Interest received - host based stored value 586 613 5%

Interest received - group funds 118 178 50%

Service fees 130 156 20%

Total Revenue 5,034 5,184 3%

Revenue by reportable segments Reloadable revenue 1,464 1,367 (7%)

Non-reloadable revenue (Gift) 3,451 3,639 5%

Interest received - group funds 118 178 50%

Total revenue by segments 5,034 5,184 3%

Gross Profit 4,366 4,049 (7%) Gross profit margin - % 87% 78%

Other income - 60 n/a

Cash overheads – employment related (5,275) (4,888) (7%)

Cash overheads – other (2,583) (2,997) 16%

R&D tax offset 494 436 (12%)

EBITDA (2,998) (3,340) (12%)

Net Loss (5,359) (5,412) (1%)

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Financials Statement of Financial Position and Cash Flow for 12 months ended 30 June 2014

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Summary of Financial Position

(‘000) 12 months to June 13

12 months to June 14 % ∆

Cash and cash equivalents 1,359 4,496 231% Other receivables and other assets 1,490 1,790 20% Plant and equipment 609 964 58% Goodwill and intangibles 11,505 11,223 (2%) Total assets 14,963 18,473 23% Total Liabilities 1,310 1,767 35% Equity 13,653 16,706 22%

Summary of Cash flow Cash flows from operating activities (3,099) (3,187) (3%) Cash flows from investing activities (27) (739) (2639%) Cash flows from financing activities 2,196 7,063 222%

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Introduction to SFUK • EML is seeking to acquire 100% of SFUK, subject to shareholder approval:

• Purchase price of $24.9m within the independent valuation range • Capital raise concluded at $0.50c to institutions and sophisticated investors • Acquisition to be deemed both fair and reasonable by the independent expert

• SFUK is Europe’s largest shopping mall gift card provider: • Over 100 gift card programs in 9 European countries • 15 malls in current pipeline for launch in next 3 months • 70% of clients representing 91% of volume have extended their agreements for 5 years • 70% of revenues from shopping mall and 30% from other prepaid programs

• The proposed acquisition is a transformational deal for EML: • Cash flow positive in 2HFY15 • Expected to generate $8.7m in Revenue, $2.7m in EBITDA and $2.2m in NPAT in CY15 • Strong organic growth averaging 13-50% depending on product and country • Access to a prepaid market 10x the size of Australia (Eu$150bn in FY17) • Low risk – operationally, technologically and regulatory

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Key SFUK Customers

• Kleppierre (Spain, Portugal & Italy) • Devimo (Belgium) • Lend Lease Portfolio • Land Securities Portfolio • McArthur Glen Portfolio (6 Countries) • Corio (Germany) • Gentalia (Spain) • British Land Portfolio • Regent Street • Standard Life Portfolio • BTWShiells Portfolio • REALM Portfolio • Pandora • Etsy • The Horticultural Trade Association • Liverpool Football Club

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SFUK Sources of Revenue Are Similar to EML

SFUK/Store

software

EuropeanPayments Network

ADI

Merchant

Cardholder

Cardholder makes a purchase Transaction data

captured and transmitted

Customer info system authorises transaction and adjusts cardholder

account balance

Transaction authorised

Funds released

Merchant is paid

Authorisation is received Merchant settlement details are transmitted to the ADI

Interest earnings

Card Production

SFUK issues prepaid card

Transaction request sent to SFUK

Transaction Fees

Set up fee

Interchange Revenue

Breakage Circa 50% of Revenues

Circa 35% of Revenues

Circa 15% of Revenues

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SFUK track record of growth

Card Activation Value (£ million) Number of Programs

Revenue (£ million) EBITDA (£ million)

0.9 8.1 12.0 14.2

22.6 33.0

41.6

55.4

84.6

0102030405060708090

CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14F CY15F

9

25 35 40

59

77 80

100 107

0

20

40

60

80

100

120

CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14F CY15F

0.1 0.3 0.6 0.9

1.5 2.0

3.0 3.6

4.8

0

1

2

3

4

5

6

CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14F CY15F

-0.4 -0.4 -0.2 -0.1 -0.2

0.1 0.5

0.7

1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14F CY15F

91% pa

43% pa

83% pa

27% pa

44% pa

16% pa

82% pa

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Pro forma* Performance Metrics FY14 vs. FY13 and trading update to August 2014

Total Dollars Loaded: +128% Number of Active Accounts: +105%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

FY13 FY14 Jul - Aug 13 Jul - Aug 14

Total number of Active Accounts (m)

0.97m

1.09m 1.02m

1.12m

0

50

100

150

200

250

300

FY13 FY14 Jul - Aug 13 Jul - Aug 14

Total dollars loaded ($m)

194.14m

253.36m

30.29m

69.15m

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* The metrics above include the results of SFUK assuming they were part of the EML consolidated group for the entire period under review. Metrics in GBP have been converted to AUD at the closing exchange rates for each period.

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Total Transactions: +98% Total Stored Value: +81%

Pro forma* Performance Metrics FY14 vs. FY13 and trading update to August 2014

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

FY13 FY14 Jul - Aug 13 Jul - Aug 14

Key Transactions (# m)

4.78m

6.24m

1.03m

2.04m

0

10

20

30

40

50

60

FY13 FY14 Jul - Aug 13 Jul - Aug 14

Store Value ($m)

35.85m

47.80m

38.89m

50.66m

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* The metrics above include the results of SFUK assuming they were part of the EML consolidated group for the entire period under review. Metrics in GBP have been converted to AUD at the closing exchange rates for each period.

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Investment Fundamentals

Financial

• Highly scale-able, diversified and predictable revenues

• Adequate cash on hand with $3.8m and decreasing cash burn in FY15 due to new program launches – Q1FY15 Operating cash flow of -$350K excluding CAPEX and SFUK Transaction costs

• No credit risk and no working capital drag due to real time settlement

• High gross margins north of 80% and relatively fixed cost base

• SFUK acquisition provides material revenue growth along with positive cash flow and earnings in CY15 and FY16

• Significant off balance sheet assets

Industry Growth

• Strong sales pipeline of opportunities across our key segments domestically and in the UK / Europe • Gambling solutions vertical will drive long term revenue and margin expansion

• Government sector will take years to embrace prepaid, as it did in the United States, but will be a significant driver of the growth for the industry in the long term (USA Government loaded $140bn onto prepaid cards in 2014)

• Product development in the Gambling Solutions and Consumer Lending verticals

• Access to a European prepaid market that is 10x the size of Australia

Operational

• Management and Board are invested in the company and own approximately 20% of issued capital

• Significant investment in FY14 in I.T Infrastructure, PCI Compliance and the Deloitte ASAE3402 Controls project to ensure future processing volumes are supported and in the most automated manner supporting scalability

• Some of our solutions will provide the opportunity for international expansion via SFUK

Barriers to entry

• Significant expertise running high availability transaction processing systems

• Issuing Banks looking to work with fewer processors that can deliver significant transaction volumes

• Exclusive agreements with major customers

• PCI compliance

• Australian Financial Services License to offer re-loadable prepaid products

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