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I SYNERGY GROUP LIMITED H12017 INVESTOR UPDATE...Affiliate Junction Indonesia’s first affiliate...

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H12017 INVESTOR UPDATE I SYNERGY GROUP LIMITED For personal use only
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Page 1: I SYNERGY GROUP LIMITED H12017 INVESTOR UPDATE...Affiliate Junction Indonesia’s first affiliate program under the retail segment. An online platform that promotes a total of 101

H12017INVESTORUPDATE

I SYNERGY GROUP LIMITED

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This presentation and the fol lowing discussion may contain forward looking statements by I Synergy Group Limited ( iSYNERGY) related to f inancial trends for future periods. Some of the statements contained in this presentation or ar is ing from this discussion which are not of historical facts are statements of future expectations with respect to f inancial condit ions, results of operations and businesses, and related plans and objectives. Such forward looking statements are based on iSYNERGY current views and assumptions including, but not l imited to, prevai l ing economic and market condit ions and currently avai lable information. These statements involve known and unknown r isks and uncertaint ies that could cause actual results, performance or achievements to differ material ly from those in the forward looking statements. Such statements are not and, should not be construed, as a representation as to future performance or achievements of iSYNERGY. In part icular, such statements should not be regarded as a forecast or projection of future performance of iSYNERGY. It should be noted that the actual performance or achievements of iSYNERGY may vary signif icantly from such statements.

DISCLAIMER

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TABLE oFCONTENTS

02

05

08

11

13

BUSINESS PERFORMANCE – KEY HIGHLIGHTS

BUSINESS PERFORMANCE – HALF-YEAR FINANCIAL SUMMARY

BUSINESS GROWTH – INDONESIA EXPANSION

INDUSTRY HIGHLIGHTS

BUSINESS OPPORTUNITY – GROWTH STRATEGY

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BUSINESSPERFORMANCEKEY HIGHLIGHTS

I Synergy Group Limited - H12017 Investor Update

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I Synergy Group Limited - H12017 Investor Update3

150% increase of the total sales transactions generated from retail affiliate programs:

BUSINESS PERFORMANCEKEY HIGHLIGHTS

H12016Transaction Amount:

AUD1.3 millionTransaction Count:

50,000

H12017Transaction Amount:

AUD3.2 millionTransaction Count:

142,000

H12017Transaction Amount:

AUD1.2 million

Excellent performance of the online retail affiliate program

Reasons for increase:

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BUSINESS PERFORMANCEKEY HIGHLIGHTSGrowth of affiliate and advertiser base:

A�liate

Advertiser

25%

27%H12016:1,100

H12017:1,400

H12017:20,471

H12017:25,000

H12016:20,000 Solid sales of

affiliate license packages:

H12017AUD7.6M

I Synergy Group Limited - H12017 Investor Update4

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BUSINESSPERFORMANCEHALF-YEAR FINANCIAL SUMMARY

I Synergy Group Limited - H12017 Investor Update

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6

BUSINESS PERFORMANCEHALF-YEAR FINANCIAL SUMMARY

I Synergy Group Limited - H12017 Investor Update

Resources being diverted to complete the listing on the ASX.

Depreciating home currency (MYR) versus reporting currency (AUD).

Cost incurred to set up business operations in Indonesia.

Increase of staff overhead costs due to rapid growth of the company’s business operations.

Reasons for decline:

AUD9.8M

AUD7.2M

Half-Year ended30 June 2016

Half-Year ended30 June 2017

26% decline of Revenue

AUD3.3MAUD2.4M

Half-Year ended30 June 2016

Half-Year ended30 June 2017

27% decline of Gross Profit

AUD2.6M

AUD0.8M

Half-Year ended30 June 2016

Half-Year ended30 June 2017

69% decline of Net Profit

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Reasons for increase:

The success of the ASX listing exercise IPO.

Solid operating cash flow.

BUSINESS PERFORMANCEHALF-YEAR FINANCIAL SUMMARY

AUD13.6M

Half-Year ended30 June 2016

Half-Year ended30 June 2017

AUD11.1M

23% increase of Cash andCash Equivalents

I Synergy Group Limited - H12017 Investor Update

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BUSINESS GROWTHINDONESIA EXPANSION

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9

BUSINESS GROWTHINDONESIA EXPANSION

I Synergy Group Limited - H12017 Investor Update

Immense market opportunity for iSYNERGY:

Indonesia is the largest country in South East Asia with a population of

261.1 million and US$932.2 billion GDP with a growth rate of 5.0% year on year (Source: The World Bank).

Affiliate Junction Indonesia officially launched on 15

December 2016 and have begun its operations in growing the

affiliate base and launching its first affiliate program, Smart$aver Indonesia.

Incorporation of PT Inovatif Sinergi Internasional with

the HQ office located in the nation’s capital, Jakarta.

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BUSINESS GROWTHSMART$AVER INDONESIA

I Synergy Group Limited - H12017 Investor Update

Launched on 11 June 2017, Smart$aver.id is Affiliate Junction Indonesia’s first affiliate program under the retail segment.

An online platform that promotes a total of 101 advertisers including Lazada Indonesia, Zalora Indonesia and more!

iSYNERGY intends to capitalise on the huge potential growth of Indonesia’s e-commerce sector: according to McKinsey & Co., Indonesia’s digital economy is expected to contribute $150 billion a year to the nation’s gross domestic product by 2025.

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INDUSTRYHIGHLIGHTS

I Synergy Group Limited - H12017 Investor Update

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INDUSTRYHIGHLIGHTS

I Synergy Group Limited - H12017 Investor Update

• Revenue from the global affiliate marketing industry increased by

16% year-on-year, with an average 4% increase in the

number of sales, according to latest research

(Source: CJ Affiliate)

• Recent data by PwC shows that advertisers spent £1.6 billion on affiliate marketing campaigns in

the UK in 2016 alone.

• Advertisers are now recognising the value of personalised reporting generated from affiliate

marketing channels which identify affiliates that are

delivering the type of customers that is valuable

to their business.

• Enabling advertisers to securely track and reward affiliates for sales derived from a user browsing on

one device and purchasing on another.

Industry Growth Data-driven Marketing Cross-deviceTracking Technology

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BUSINESSOPPORTUNITYGROWTH STRATEGY

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BUSINESS OPPORTUNITYGROWTH STRATEGY

I Synergy Group Limited - H12017 Investor Update

The Philippines – represents a significant market opportunity in the Southeast Asia market with a population of 103.3 million and the digital advertising sector is expected to total US$244.8 million by the end of 2016 (Source: The World Bank, Statista).

Indonesia – with a population of 261.1 million and US$932.3 billion GDP with a growth rate of 1.14% in 2016, Indonesia is the world’s fourth most populous nation, the world’s 10th largest economy in terms of purchasing power parity, and a member of the G-20 (Source: The World Bank).

Australia – the country with a GDP of US$1.205 trillion in 2016 indicates Australian consumers have strong purchasing power (Source: The World Bank).

GEOGRAPHICALEXPANSIONThe target

markets we have identified for international

business expansion:

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Property

BUSINESS OPPORTUNITYGROWTH STRATEGY

I Synergy Group Limited - H12017 Investor Update

Big Data Analytics

Display Ad Network

Virtual Market Place

Social Media Network

PLATFORMEXPANSION

Exploration of new tech features to provide superior

platform offerings:

FinancialProducts

Healthcare& Wellness

Expansion into new business segments/industries through

new affiliate programs. Targeted industries:

PROGRAMEXPANSION

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Page 18: I SYNERGY GROUP LIMITED H12017 INVESTOR UPDATE...Affiliate Junction Indonesia’s first affiliate program under the retail segment. An online platform that promotes a total of 101

Ground Floor, 16 Ord Street, West Perth, WA 6872t. +618 9482 0585 f. +618 9482 0505

Malaysia OfficeUnit 20-10, Tower A, The Ver�cal Business Suite,Avenue 3, Bangsar South, No. 8, Jalan Kerinchi,59200 Kuala Lumpur, Malaysia.t. +603 2242 1333 f. +603 2242 1331

I Synergy Group Limited (ACN 613 927 361)Listed on the Australian Securi�es Exchange (ASX Code: IS3)www.isynergy.my

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