Pareteum® CorporationCompany OverviewMarch 12th 2019
2© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
Forward Looking Statements
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private SecuritiesLitigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to Pareteum’s plansand objectives, projections, expectations and intentions. These forward-looking statements are based on currentexpectations, estimates and projections about Pareteum’s industry, management's beliefs and certain assumptions made bymanagement. Readers are cautioned that any such forward-looking statements are not guarantees of future performanceand are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involverisks and uncertainties, the actual results and performance of Pareteum may differ materially from the results expressed orimplied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance onsuch forward-looking statements.
Unless otherwise required by law, Pareteum also disclaims any obligation to update its view of any such risks or uncertaintiesor to announce publicly the result of any revisions to the forward-looking statements made here. Additional informationconcerning certain risks and uncertainties that could cause actual results to differ materially from those projected orsuggested in Pareteum’s filings with the Securities and Exchange Commission, copies of which are available from the SEC ormay be obtained upon request from Pareteum.
3© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
• 180 Countries• 1,000+ GSM• 200 CDMA SMS Global Agreements
Things
People
Data
F l e x i b l e C l o u d P a a SE n d - t o - E n d C o n t r o l
I o T M 2 MS m a r t C i t i e s
G l o b a l C o m m u n i c a t i o nS e r v i c e s
S e c u r e , b l o c k c h a i ne n a b l e d - E - c o m m e r c e
Platform Enabled Global Connected Communications
• 55 Million Wi-Fi Hotspots• 10.4 Million Connections• 62 MNO Global Agreements
4© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
• Re-imagined Communications:• Global cloud software communications
platform company
• On a mission to connect every person and every(thing)™
• Creates communications marketplaces
• Delivers user experiences: • Bringing enjoyment and creating value
• Requiring no heavy technology investments
Digital Economy Transformation: Big Data + AI = Relationships & Experiences
The world’s largest taxi company, owns no vehicles
The most valuable retailer, has no inventory
The world’s largest accommodation provider, owns no real estate
The world’s largest movie house owns no cinemas
Products1970s
Product + Services1990s
Customer Centric2000s
Experiences Today & Relationship Centric
Engagement
Product and Services Evolution
5© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
Industry Evolution
Pareteum
CSP
Global Connections 55M Wi-Fi + 1,200
Text msg. + 62 MNOs in 180 countries
Broadband
Experiences define Value
NETWORK EVOLUTION
Enterprises
TEUM Global Cloud
Class 5:local central office
Local Loops
Tandem office
Class 1:regional centers
Class 2:sectional centers
Class 3:primary centers
Class 4:toll centers
CLEC
VoIP Providers
Traditional Retail Phone
Providers
Broadband
Hosted PBX / IP PBX
Local Loops
PSTN Internet
Virtual Hosted PBX
Virtual Call Centers
Broadband
MNO
IP Nets Internet RAN
Virtual Telco Apps
Developers
50s to the 80s Mid 80s to 2000 Late 90s to the mid 2000s
TEUM Smart Network
6© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
EnterprisesCommunications as a Service:
• Fortune 5000, Education and Government
• Flexible, scalable & secure• Enable business process • Global connectivity: cellular, Wi-Fi & Sat.• Best of breed solutions:• Voice, text, data, messaging, • Call center with self service portal mgt.
Pareteum Strategies: a rapidly growing cloud software communications platform company with a mission to connect every person and every (Thing)™
Any Device, Anywhere
Software defined platform enabling real-time:-Connectivity/access/SMS/Mobile airtime/Streaming media-Identity Management and Security, Blockchain, Mobile payments, cryptocurrencies-Predictive analytics “insights”, Reporting, Artificial Intelligence, Machine Learning-Market and product management (rapid entry and innovation)-Unified Account management (multi channel/platform access and control)-Policy management (Control and present new service offers)-Online real-time charging (Control, unbundle and rate to retain and drive ARPU)
IoT & Application Developers• Communications Platform
• Global ConnectivityIoT, Smart Cities, Vertical Markets
API’s to bring communications into applications, things, or processes• Scalable and simple to use
Communication Service ProvidersCloud software communications platform• Software stack: scalable & flex deployed• Mobile operator elements virtualized• Rapid deployment for rapid time to benefit • Speed of demand
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Communications Service Provider: Mobile Network Operator Case Study:
Customer Success Platform: Any Device + Any Network + Anywhere …Pay as you go @ The Speed of Demand…
PROBLEMS
Legacy upgrades are costly
Integration of new solutions
New competitors (OTT)
Information siloes
Cost and complex operations
LEGACY SYSTEMS
RadioNetworks
2G 3G 4G
Future 5G
SupportSoftware
B/OSS*
ERP/APPS**
Smart Cities & Internet of Things Enabler:
API Development Platform & SDK Developer's Toolkit
3rd Party Connectivity Enabled App Exchange
APIS
One Integrated Software Apps View
Sales, Marketing, Customer Service, Subscribers,Dealers, Employees
Cloud Connectivity Content
Complete software platform enabling real-time:• Market and product management (rapid entry and innovation)• Unified Account management (multi channel access and control)• Policy management (Control and present new service offers)• Online real-time charging (Unbundle retain and drive ARPU)
• Predictive analytics “insights”, Reporting, Artificial Intelligence, Machine Learning,…• Identity Management and Security, Blockchain, Mobile payments, cryptocurrencies,…
• Connectivity/access
APIS
TEUM Smart Network ™Global Connections 55M Wi-Fi + 1,200 Text msg.
62 MNOs in 180 countries
Mobile Network Operator Radio Access Network
* Business & Operations Support System (B/OSS) ** Enterprise Resource Planning / Applications (ERP/APPs)
Hybrid Connectivity
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Smart City Use Case:
IoT customers need:• Seamless & Ubiquitous Access• Payment Systems
• Cryptocurrencies & Blockchain• Security & Identification Services• City & Citizen Services
• Purchasing/payments/settlements/ commerce• Scalable Platform Services• Artificial Intelligence• Machine Learning• Predictive analytics “insights”• Cloud Connectivity• Monetized Transaction Exchange
Pareteum’s Cloud Based Communications Software Platform: makes all of this possible … this is the Internet of Things
Application Developers’ Communications Platform:
Citizens can make payments, report incidents, send photo and localization information, check the status of the incident
9© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
2019 Target Market Segmentation
CSP94%
IOT5%
Enterprise1%
$3.2 BAPAC
$603 MEMEA $280 M
NA$221 M…
$187 MENA
$240 M SubSahAfr
$189 MCIS
APAC EMEA NA LATAM MENA SUB-SAH-AFR CIS
$39.5 BAPAC
$1.4 B EMEA$439 M NA$56 M LATAM
$107 MMENA
$35 MSub-Sah-Afr
$71 MCIS
MNO: $4.9 B MVNO: $41.5 B
APAC$1.1 B
NA$715 M
EMEA$662 M
6%$124 MMENA
$82 MCIS
$40 M Sub-Sah-Afr
8%
APAC NA EMEA LATAM MENA CIS Sub-Sah-Afr
IoT: $2.9 B
Global Addressable: $50 B
$74 MNA
$50 MEMEA
$61 MAPAC
$65 MROW
Enterprise: $249 M
Source: GSMA.comHP report by 2020
10© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
Business Model: Cloud Delivered Services & MRR
128% 103%106%
100%
97%
118%170% 206%
145% 105%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
17Q4 18Q1 18Q2 18Q3 18Q4
36-month Contractual Revenue Backlog Conversion
Planned $ Conversion
Total $ Conversion
Planned # Connections
Total # Connections
36-month Contractual Revenue Backlog Conversion Evolution
40147
615800
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2016 2017 2018 YTD Q1 2019
Mill
ion
s
20x4x
2018to
20174x
11© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
Key Company Metrics: 2018 Year-End Results
2017 2018 Growth
25 533 2,033%Customers
Revenues $13,548 M $32,436 M 139%
Adj. EBITDA $2,151 M $6,436 M 199%
Connections 1,711 M 4,609 M 169%
147 M 615 M 318%36M-CRB
233 K 415 K 78%Revenue/Employee
3Q18
147%
4Q18
214%Net Dollar Expansion Rate
12© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
Quarterly Financial Highlights
256% increase*
17.13% increase*
82% increase*
* Comparing Q417 and Q418
125% increase*
Q417 Q118 Q218 Q318 Q418
Revenue 4,014 4,113 6,003 8,008 14,312
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
$M
illio
ns
Revenue
Q417 Q118 Q218 Q318 Q418
Proforma Revenue 20,756 21,896 22,916 22,740 24,312
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
$M
illio
ns
Proforma Revenue
Q417 Q118 Q218 Q318 Q418
Proforma Adjusted EBITDA 2.37 2.34 2.93 4.09 5.34
-
1.00
2.00
3.00
4.00
5.00
6.00
$ T
ho
usa
nd
s
Proforma Adjusted EBITDA
Q417 Q118 Q218 Q318 Q418
Adj. EBITDA 1.28 0.28 1.30 1.78 2.34
-
0.50
1.00
1.50
2.00
2.50
$ T
ho
usa
nd
s
Adj. EBITDA
13© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
2017 2018 2018 Proforma*
Adj. EBITDA 1,576 6,436 18,200
- 2,000 4,000 6,000 8,000
10,000 12,000 14,000 16,000 18,000 20,000
$ M
illio
ns
Adj. EBITDA
2017 2018 2018 Proforma*
Revenue 13,548 32,436 94,000
- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
100,000
$ M
illio
ns
Revenue
Annual Financial Highlights
2017 2018 2018 Proforma*
Adj. EBITDA less CAPEX 1,076 4,502 16,200
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
$ M
illio
ns
Adj. Free Cash Flow
594% increase**
1,055% increase***
1,406% increase**
* Proforma: 4Q18 * 4** Comparing ‘2018 Proforma’ with ‘2017 Actuals’*** Comparing ‘2018 Actuals’ with ‘2017 Actuals’
139% increase***
308% increase**
318% Increase***
14© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
Pro Forma Combined Capitalization Table
Pareteum capitalization as of January 11, 2019
Common
TEUM (000's) Share Fully
Equivalents Warrants Options Diluted
Issued & Outstanding 97,853 3,068 3,400 104,321
Convertible Debt 31 722 753
Total Equity 97,884 3,789 3,400 105,074
Transaction Adjustment
IPAS Consideration Shares 9,865 9,865
Post IPASS Acquisition 107,749 3,789 3,400 114,939
% Parteum Stockholders 91% 91%
% IPASS Stockholders 9% 9%
100% 100%
% Pareteum Stockholders
15© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
Ticker: TEUM Exchange: Nasdaq
Stock Price (3/11/2019): $4.17
Analysts Price Targets: $5.00 - $7.50*
Avg. Daily Trading Volume for 3 Months (ending 3/11/2019): 1.7M
Shares Outstanding (post iPass acquisition): 107.75M
Market Cap (3/11/2019): $449M
Revenues (Exit Quarter Annualized) (12/31/18): ~ $57.0M **
36 Month Contractual Revenue Backlog (12/31/18): $615M
*12-month price targets: Northland Capital Markets $7.50 Initiated as of 12/20/2018; Lake Street Capital $6.00 Initiated as of9/24/2018; Craig-Hallum $5.00 Initiated as of 1/28/2019; Maxim Group $7.00 Initiated as of 1/11/19; Dawson James $5.00Updated as of 10/25/2018; Taglich Brothers $7.50 Updated as of 2/20/19.
** iPass will be fully included by June 30, 2019
Equity Snapshot
16© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
Denis McCarthy, President
Rob Mumby, Chief Revenue Officer
Edward (Ted) O’Donnell, Chief Financial Officer
Patricia Hume, Chief Marketing Officer
Executive Team Highlights
Robert H. (Hal) Turner: Founder, Executive Chairman, Principal Executive Officer
Bart Weijermars, Chief Executive Officer EMEA
Vic Bozzo, Co-Founder, Chief Executive Officer Americas & Asia
Blaz Vavpetic, VP Product
Christine Braelow, VP Enterprise
Laura W. Thomas, VP Corporate Development
17© Pareteum 2019 (Nasdaq: TEUM) Complete with accompanying oral presentation
Hal Turner: Founder, Executive Chairman &
Principal Executive Officer
Denis McCarthy: President
Laura Thomas: VP Corporate Development
+1 (703) 930-4282
HQ: New York CityOffices: The United States of America, The Netherlands, Spain, Belgium, India, Germany, The United Kingdom, Singapore, Indonesia, Brazil, Bahrain
Contact Us
Investor Relations Contact
Investor Relations:
US +1 (646) 810-2182
Rayleigh Capital IR (Carrie Howes)
CAN +1 (416) 837-0075