Preliminary Results for the year ended 30th June 2010

25 August 2010

George Osborne in India

Click to play 2

Agenda • Introduction

• Market update

• Company update

• Finance update

• Summary

Introduction

Multi state roll out during the tax season

The Network Effect

New Media Age winner ‘Best Use of Mobile 2010’ UK iPhone launch

Lloyds TSB “Say Hello” campaign

Page number

O2 16 apps press campaign

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Overview

• Mobile money market - large, validated and fast-growing global market

• Monitise platform established as a market leader

• Gaining significant traction

– Strong UK track record with platform already adopted by RBS Group, HSBC & Lloyds & available across all mobile phone networks

– Customer base growing rapidly

– International partners include Visa, SCB, Travelex & FIS

– JVs in place to access fast-growing markets of USA, Asia Pacific & India

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Overview Continued

• Strengthening of relationship with Visa

– Equity investment increases shareholding to 14.4%

– Extension of Global Alliance Agreement (GAA) and licensing of new strategic territories (Mexico and Russia)

• Cash raised provides funding for Group until cash generative

– UK operations expected to reach cash break-even by December 2010

– Current live operations expected to reach cash break-even during FY12

• Significant opportunity to cement leading international position

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Market update

Mobile Money and the Opportunity

• Mobile Money is securely accessing your finances through your mobile phone

• Mobile Money gives you the freedom to bank and pay on the move– Direct connection to accounts– Ability to make payments/transfer funds

• The scale of the opportunity is enormous– There are 2.2 billion people using financial services in the world (Financial Access

Initiative, McKinsey 2009)

– There are 4.6 billion mobile phone users in the world (International Telecommunications Union, “Measuring the Information Society” 2010)

The number of people who will make payments by mobile phones in 2010 – up from 70.2m in 2009 (Gartner, June 2010)

The value of mobile payments by 2012, growing globally at 68% p.a. from 2008 (Arthur D Little, 2009)

The number of subscribers who will use their phones for mobile banking by 2013 (Juniper Research, 2010)

400m 108.6m $250bn

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Company update

Group Overview

Global opportunity

Blue chip business partners

Adopted by major UK and other

financial institutions

Wide platform applicability

Broad range of services

Banking & payments touch the lives of billions of consumers worldwide

From balance enquiry to instant paymentAccount management, payments, mCommerce

Any phone, any networkVia SMS, Java, Brew, Browser, iPhone, Blackberry, Android

Global opportunity

Blue chip business partners

Adopted by major UK and other

financial institutions

Global opportunity

Blue chip business partners

Wide platform applicability

Adopted by major UK and other

financial institutions

Global opportunity

Blue chip business partners

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- A Key Strategic Partner

Visa Inc.

• A global leader in payments

• A key strategic partner for Monitise

• Mobile channel is a major strategic imperative for Visa

Strengthening of Global Alliance Agreement (GAA)

• Equity investment increased to 14.4% in Monitise plc

• Extension of Global Alliance Agreement

• Term increased to 2015 , minimum fee commitment increases from $13m to $16m

• Monitise to grant Visa Inc. license for further deployment in Mexico and Russia – licence fee of $1.5m anticipated for FY10/11

• Appointment of Elizabeth Buse, Group Executive, International, for Visa Inc. to the Monitise Board

• 16,000 financial institution customers• 1.8 billion Visa cards (31 Dec 2009)

• 64 billion total transactions• $2.9 trillion payments volume

Source: Visa website. Figures as of 31 March 2010 unless stated otherwise

“Mobile – the next payments frontier”(Visa Inc.)

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Our managed services make the complex simple…

Patent Protected

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Monitise Customer Propositions

Customers who have multiple

services Customers who have

downloaded an app

Customers who have registered for text alerts services

Customers who have registered for account updates (via text)

Typically customers who have registered for our pre-paid

card and card activation services

Advanced28%

Essentials 24%

Feeder48%

(£7+ ARPU)

(£2-3 ARPU)

(<£1 ARPU)

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Typical Feeder Services

• Debit and credit card activation by text

• Pre pay card balance notification

• Update and event confirmation text messages

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Typical Essentials Services

• Pull an account Balance via text

• Weekly Text Update

• Low Balance Text Alerts

• Actionable Alerts

• Overdraft Sweep

• PayDay Sweep

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Advanced Services

• App Stores: Apple, RIM, Ovi, Android

• Secure Browser alternative

• Bank Accounts, Prepaid Cards, Credit Cards

• Account Management

• Set & Manage Alerts

• Lock/ Unlock Cards

• Branch/ATM Locator

• Bill Present & Pay

• Payments: Pay Anyone & P2P

• Reloads: Airtime top-up Transit, Prepaid

• Cross Sales/CRM Prompts

• Loyalty

• 2FA for secure log in

• Stock Trading

• Coupons & Vouchers

• Lottery

• NFC Ready

Live Future roadmap

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Emerging new customer behaviour

Advanced segment usage trends

•Banking channel of choice, with 16 transactions a month

•App usage highest between 7am and 9am (on the way into work)

•Usage peaks on Friday’s and Monday’s and at the end of the month (‘have I been paid yet?’)

•90% of customers who download it, go on to use the app regularly

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Unlocking the Potential

Time

UK 36m Consumers

USA 212mConsumers

India 230m+ Consumers

Asia Pac (Inc China) 400m+Consumers

In the developed world, factors that drive addressable market are:

Adult population% banked or with prepaid cards% pop with mobile phone

In the developing world, factors that drive addressable market are:

Adult population% pop with mobile phone% with banked or with prepaid cards but also offer an m-wallet for the unbanked if the regulations allow

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Finance update

TE

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Business Evolution

Visa Global

UK

Americas

Asia Pacific

Africa

India

Liv

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rati

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2007

2008

2011

2009

2012

2010

Live

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Financial Summary

Revenues

• Revenues of £6m, up from £2.7m in FY09 (↑125%)

• H2: £4.3m, up from £1.6m in H2 FY09 (↑170%)

• Transactional revenues gaining traction (↑490%)

Live Operations

• Reducing losses from H1 to H2

• Driving towards profitability

• UK operation on track to cash break-even by Dec 2010

• Monitise Americas close to cash break-even

Investments

• Increase in investment spend H1 to H2

• Asia Pacific JV

• Enhancement of platform capability

• Growing appetite for mobile payments

• Retaining / extending our technological advantage

Cash

• Cash balance of £13.2m at 30 June 2010

• Cash balance, post fund-raising, in excess of £42m

FY08 to FY10 Revenues by Type

£m

£1.5m

£2.7m

£6.0m

H1 FY08 to H2 FY10 Transactional Revenues

£m

H1 FY 08

H2 FY 08

H1 FY 09

H2 FY 09

H1 FY 10

FY 08

H2 FY 10

FY 09 FY 10

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Segmental Performance – Year on Year

*Before Share Base Payments/Exceptionals

** Prior year loss for live ops includes 50% share of Monitise Europe. Like for like Group operating loss is broadly flat year on year

Revenue Revenue Op (loss)

£m £m £m

2.1 (2.0)**

0.6 (10.0)

Total 2.7 (12.0)**

Future Ops/Technology/Corporate 1.2 (11.8)

6.0 (14.3)

Op (loss)*

£m

Live operations 4.8 (2.5)

FY 10

Year

FY 09

Year

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Segmental Performance – FY10H1/H2 Revenue & Loss Trend

Op(loss) Revenue Op(loss) Revenue Op(loss)

£m £m £m £m £m

Live Operations 3.2 (0.9) 4.8 (2.5)

Future Ops/Technology/Corporate 1.1 (6.5) 1.2 (11.8)

1.7 4.3 (7.4) 6.0 (14.3)Total (6.9)

1.6 (1.6)

0.1 (5.3)

Year

Revenue

£m

H1 H2

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Segmental Performance – FY10H1/H2 Margin & Overhead Trend

H1 H2 Year

£m £m £m

Revenue 1.7 4.3 6.0

Gross Margin 0.9 2.9 3.8

Total Overheads (7.8) (10.3) (18.1)

Operating Loss (6.9) (7.4) (14.3)

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Key Milestones

Year to 30 June 2011

UK operation moves to cash break-even

Hong Kong launch

China pilot launch India launch First Monitise

enabled Visa product launch

First Visa transactional revenues

Year to 30 June 2012

All existing live operations at cash break-even (UK / N America / Visa)

First Indian transactional revenues

First deployment of live services in China

Further rollout within Asia Pacific region

2013 Onwards

Group cash generative

Major mCommerce launch

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Summary

• Fast growing demand for mobile money worldwide

• Established market leader with 8 years of investment in technology and relationships

• Highly motivated team supported by experienced Board, strengthened by new appointments

• Blue chip partners & strategic investors

– Facilitating global access

– Deepening relationship with Visa

• Transactional revenues growing rapidly

• UK operations expected to reach cash break-even by December 2010

• Fundraising enables Monitise to

– Retain and extend its technological advantage

– Fund new areas of operation

– Take the Group to cash generation

Right partners, right team, right technology, right time

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Appendix

Global Footprint

Monitise Americas Monitise Europe

Monitise Africa

Monitise Asia Pacific Monitise India• JV with FIS to tackle world’s

largest consumer markets

• Launched 2008

• Over 200 financial institutions signed up

• Launched in 2006

• UK as flagship home market before international roll out

• Significant customer growth in 2010

• >55% of UK retail banking market coverage

• Available through all mobile networks

• Development underway supported by grant funding (Africa Enterprise Challenge Fund)

• Recent JV formed with First Eastern

• Showcase launch planned for Hong Kong as springboard into China

• New JV formed with Visa Inc.

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Driving Transactions in a Mobile World

Bank Accounts, Savings Accounts, Credit Card and other Accounts

FinancialTransactionProcessors

Consumer interface

EnquiriesPaymentsInformation

FISVISA

Payments VocaLink Payments

Cheques POS

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The Mobile Evolution If you don’t establish the secure link now it is lost

Foundation for driving asset value

Mass market self service channelCost reduction & service enhancement

Leverage payment infrastructureDefend payment position

Phase 1 mCommerceExtend payment reach

Network extension of A2ACheque replacement

Phase 2 mCommerce Mass market payments

Importance of mobile commerce to the Banking industry

Account information/money management

DatabaseMSISDN - PAN

Account to account payment

person to person payment “text money”

mCommerce – Remote “text to buy”Vouchers & offers (add revenue)

mCommerce - Proximity “NFC”

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The number of mobile subscribers who use their phones for mobile banking will exceed 400m globally by 2013, according to a new in depth study by Juniper Research. This equates to double the number of users this year.  Juniper Research, July 2010

'The number of people using their mobile phones to make payments is set to grow from 70.2 million in 2009 to 108.6 million this year, a 54.5% rise.  Gartner, June 2010

'New types of SMS mobile banking alerts will help to treble the volume of mobile banking messages to almost 90 billion per annum by 2015, equating to one message every two days for every mobile banking user. Juniper Research, August 2010

Mobile Money will be a massive market

‘‘‘‘

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Emerging new behaviors

%

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Understanding their finances sets them up for a day

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Appealing to a mass market

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NatWest iPhone Proposition

Q2 16 apps press campaign App store home page

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August Lloyds TSB collateral

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Example live apps.

CSB Mobile Money

PyraMax

AmBank Mobi - ABT

Health Mobile – Wealthcare

HIB Mobile – Highlands

Magna Mobile

Stoneham bank Avidia Bank

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Recent milestones

October 2008: 1st 1 million

transaction month

June 2009: Visa 5 year

global alliance signed

Aug 2009: Monitise breaks 750,000 customer barrier and takes 100%

control of UK joint venture

Dec 2009: Monitise breaks 1.5 million customer barrier

March/April 2010: Monitise

hits 2 million customers and JV in Asia Pacific agreed with First Eastern

June 2010: Agreement signed with VISA for India

JV

Q2 ‘08 Q4 ‘08 Q1 ‘09 Q4 ‘09 Q1 ‘10 Q2 ‘10

July 2010: Further £32m raised on capital markets

Q3 ‘10Q2 ‘09

Nov 2009: Monitise launches

Smartphone platform

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Financial Results: Summary Cashflow

Year ended

30-Jun 30-Jun2010 2009

£'m £'m

Opening cash balance 10.1 9.7

Cash utilised in operations (13.9) (11.4)

Fixed asset purchases (1.1) (0.3)

Cash from fundraising 17.9 11.5

Other movements 0.2 0.6

Increase in cash in the year 3.1 0.4

Closing cash balance 13.2 10.1

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Leadership Team

Alastair Lukies CEO • Co-founder of Monitise; co-founder of Epolitix.com (portal for Westminster, Whitehall and devolved institutions)

John Brougham CFO • Formerly FD of BT Transformation and BT Global Services

Executive Team

Duncan McIntyre NED • Formerly CEO of Morse plc

David Dey NED • Founder of Energis, formerly BT PLC board member

Colin Tucker NED • Formerly Deputy Chair Hutchison 3G & Technical Director Orange

Peter Radcliffe NED • Formerly MD First Data Asia Pacific

Elizabeth Buse NED • Group Executive, international, for Visa Inc

Jan Verplancke NED • CIO of Standard Chartered Bank

Non-Executive Directors

Other Advisors : Lord Mervyn Davies, Lord Digby Jones, Christopher Rodrigues (ex President Visa International), Andrew Harrison (UK CEO The Carphone Warehouse )

Remove detail

Lee Cameron CCO • Formerly General Counsel of Morse PLC

Tom Spurgeon Co Sec • Formerly FD of Morse UK

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Monitise: Investor Centre

• Share price 22p (23 Aug 10)

• Market AIM

• Ticker MONI.L

• Market cap. £151m (23 Aug 10)

• Ord. shares in issue 692,727,757 (23 Aug 10)

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*Shareholders as at 23rd Aug 2010

Profile of major Shareholders (% held)*

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Visa 14.4% 3i Group 4.6% UBS Global 6.0%Standard Chartered 5.5% First Eastern 6.8% Norges Bank 6.7%Other 56%

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