H1 2014 Financials

September 2014

Disclaimer

This document includes forward looking statements. Whilst these forward lookingstatements are made in good faith they are based upon the information available tozamano at the date of this document and upon current expectations, projections, market conditions and assumptions about future events. These forward lookingstatements are subject to risks, uncertainties and assumptions about the Group and should be treated with an appropriate degree of caution.

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Contents

Financial Highlightszamano at a Glancezamano M&A Target CriteriaD2C – Direct to ConsumerB2B – Business to BusinessGrowth StrategyIndustry DynamicsFinancialsSummary & OutlookAppendix (Board & Management Team, Major Shareholders)

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Financial Highlights H1 2014

zamano has recorded a material increase in revenues during the first half of 2014 compared to the second half of 2013. This is mostly as a

result of increased UK sales as well as achieving sales levels in Australia significantly ahead of H2 2013 due to the successful development

of a strategic campaign with new mobile advertising partners.

During the period ended 30 June 2014, zamano put significant time and resources into identifying acquisition, investment and joint

venture opportunities in the UK and Ireland. A set of acquisition criteria was formulated and approved by the Board. The Group has

examined a number of opportunities in mobile media, payments/billing, messaging and related products during the past six months and

continues to actively pursue a number of such opportunities, any one of which, if concluded, will diversify the Group’s product base to a

considerable extent.

H1 2014 Financial Highlights

• 24% increase in revenues over H2 2013 to €8.7m.

• 2% increase in EBITDA over H2 2013 to €1.2m.

• Cash of €3m at 30 June 2014 and €3.75m when adjusted for the increase in debtors over 31/12/13.

• €480k of gross bank debt at 30 June 2014. No banking covenants.

• 3.2% increase in pre tax profit to €964k from €934k in H2 2013 (€984k H1 2013).

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Significant financial and operational achievements in 2014zamano is in a strong position to capitalise on the opportunities in the web and mobile marketplace.

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Zamano at a Glance

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Zamano Plc M&A Target Criteria

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Outlined below are zamano’s key M&A criteria:

Financial Criteria

• The target should be generating revenues of €3m+.

• The target should be generating profits, cash and have a growing customer base.

• The target should be willing to accept zamano shares as part payment.

Location

• The target must be located in Ireland or the United Kingdom.

Product Area & Market

• The target should operate in payments, mobile/online advertising or mobile D2C/B2B products.

• Target’s market should have growth trends, niche opportunities and synergies with zamano.

Key Executives

• Management should be willing to stay on post-transaction.

Experts in mobile technology

Our SMS platforms, APIs and products are used by increasing number of companies and thousands of end users every year.

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D2C – Direct to Consumer

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D2C – Direct to Consumer

Billing

• Direct connections in UK and Ireland to all Mobile Network Operators.

• Limited credit risk due to quality of debtors.

• Ease of use compared to other payment mechanisms e.g. credit card.

Realtime Analytics System

• Direct response ads allow us to adapt campaigns in real time to maximise returns.

• Real time conversion rates analysed by campaign, publisher and market.

• Billing monitored and optimized.

• Churn measured on all customer interactions.

• Life Time Value (LTV) modelling and forecasting, based on historical data.

• Campaign optimization with A/B testing.

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B2B – Business to Business

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Growth Strategy

Branded SMS marketing product aimed at large enterprise and SME customers. Launched in Ireland in late 2013 and expanding to UK in 2014.

Our current core business will deliver cash flow and expertise to develop and market new products.

Zamano are in discussions with the mobile network operators and an anchor client to develop Payfunnel. This will be a transformational single-click micro-payment solution on mobile devices.

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Irish-based company with global reach

We currently operate in UK, Ireland, Australia, Slovakia, Czech Republic, Romania and Slovenia.

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Industry Dynamics

*The changing face of mobile payments (Payment Eye – 2013).** OTT & Operator Strategy & Forecasts 2013-2017 (Juniper Research - March, 2013).

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Smartphone Penetration

• Industry analysts expect 5.4 billion smartphones to be in

circulation globally by 2015.*

Mobile Payments

• The number of global mobile payment users will increase from 206

million in 2010 to 1.05 billion by the end of 2015.*

• The increase of smartphone adoption will result in $1 trillion of global

mobile payments by 2015.*

Mobile Content

• Global revenues from mobile content are expected to rise

from $2 billion in 2012 to over $13 billion by 2017.**

Financials: Profit & Loss

• Total revenue increased by 24% in H1 2014

• Strong UK performance, especially in B2B

sales

• Stable EBITDA - €1.2M per half

• Continued focus on cost control

• Profit after tax of €964k in H1 2014

Euro M H1 2014 H2 2013 H1 2013

Total Revenue €8.7 €7.0 €9.0

Revenue By Territory• UK• Ireland• Other

€6.4€1.7€0.6

€4.1€2.0€0.9

€5.6€2.2€1.2

Gross Profit €2.4 €2.5 €2.5

Administrative Expenses (€1.4) (€1.5) (€1.3)

EBITDA €1.2 €1.2 €1.4

Profit before Tax €964k €934k €984k

Adj Diluted EPS 0.11c 0.10c 0.10c

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Financials: Balance Sheet

• Strong equity growth creating value for

shareholders

• At 30 June 2014, zamano had a €480k bank

loan outstanding

• No banking covenants

• Very strong cash generation resulting in cash

of €3.0m at 30 June 2014

• Attractive balance sheet for potential

partner

• Subscriber base not capitalised on the

balance sheet

Euro M 30 June 2014

31 Dec 2013

30 June 2013

Total Assets €12.6 €11.6 €11.5

Total Equity €8.3 €7.4 €6.5

Total Liabilities €4.3 €4.2 €5.0

Cash at Bank €3.0 €2.7 €2.3

Intangible Assets €6.4 €6.4 €6.4

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Summary & Outlook

Strong Performance

• zamano consolidated it’s position as a leading provider of targeted, interactive and measurable web and mobile marketing

campaigns to end users.

Territorial Expansion

• zamano is currently billing customers in eight territories.

• zamano continues to build on its territorial expansion strategy which commenced in 2013.

Messagehero.com

• Launched in Q4 2013, Messagehero is an innovative messaging product targeted at SME and the enterprise market. At

present, Messagehero is being refined in accordance with market demands.

Positive Outlook for FY 2014

• zamano will strive to capitalise on the opportunities in the mobile micro-payment marketplace.

• Emphasis on strategic partnerships and joint ventures in H2 2014 and 2015.

• Maintain a solid core operation in 2014.

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In 2014 we have…

Worked to capitalise on the opportunities in the mobile micro-payment marketplace.

Appendix: Board & Management

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Appendix: Management

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Appendix: Major Shareholders (at 31 August 2014)

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