JP Morgan Emerging Companies Conference17th November 2009

Ned Montarello – Executive Chairman & CEO

Agenda

• Overview

• The ThinkSmart Business Model

• Trading Snapshot

• 2010 Growth Strategies

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THINKSMART A GROWTH COMPANY

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Introduction to ThinkSmart

• (ASX:TSM) Leading international provider of point-of-sale finance within the retail store environment – Target niche SOHOs & 1-5 seat small businesses– Increasing share of consumers and prosumers in mature territories– Shop in retail stores for computing and electricals– “Nano-ticket” transactions – A$500 – A$10k

• Market leading international footprint across Europe and Australia

• Distribution through exclusive and entrenched partnerships with major international electrical retailing groups

• Products offer compelling and highly profitable value proposition for retail partners, customers and wholesale funders

• Proven track record of growth through adverse trading conditions

• Platform for international and domestic growth

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Key Information

• Listed in June 2007 - 96.7m shares on issue

• Current market capitalization $70m

• No net debt.

• Delivered 14% CAGR in underlying EBITDA since listing (2.5 years to June 2009)

• On target to meet guidance for continued positive growth in 2009.

• Dividend yield 5% fully franked.

• P/E ratio (2009 earnings) 10.6x versus sector average of 17x*.

5*JP Morgan: Aug 2009 ** excl. US operations

THE THINKSMART BUSINESS MODEL

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What Are Customers Shopping For?

Where Do They Shop? What’s the Product? What’s The Customer Experience

Laptops and Electricals

• 12 week product lifecycles.

• High obsolescence factor for users.

• Driven by the “latest” technology.

PC Superstores

• “Take away” service

• Highly accessible locations

• On the spot environment

Rental Operating Leases

• Delivered in store at the point of sale

• Monthly payments

• Good for cash flow

• 100% tax deductible for business

• Bundle equipment & high value services into consumer contract

• Helps customer keep up to date with technology

Fast in-store Process

• Selects equipment

• Sub 10 minutes online approval

• Executes agreement

• Leaves store

Focused Niche Model

ThinkSmart’s products fill the gap for small business & consumer customers between a credit card & a bank loan in the fast moving electrical retailing environment.

7* Sensis Australia Small Business survey 2008.

Targeting B2B & Consumer Customers

B2B Market• Product range embedded in Small

Business.

• Provides cashflow and tax friendly financing solution in Big Box computer retailers.

• Historically under serviced niche.

• B2B customers seeking B2B finance.

• Has been platform for ThinkSmart’s international expansion

Consumer Market• Running a Consumer proposition in

Australia since 2004

• Consumer Rental = 60% of Australian new business volumes

• Consumer Rental growth FY2008 = 33%

• European partners now seeking the same.

• Quadruples market size in UK alone.

• Same in store process and credit process/criteria as B2B

• Key 2010 Growth initiative - packaging high value services into rental product to further enhance consumers offering

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Funding

• Existing funding agreements are contracted to 2011/2012

– UK – Lloyds HBoS to 2011

– Australia – Bendigo Adelaide to 2012

– Spain – Societe Generale to 2011 and Santander to 2010

– Italy – Santander to 2012

• Priority to operate multiple funding agreements in major territories

• New funding relationship opportunities emerging as credit markets recover

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Leading International Footprint

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UK

• Euro Ops Centre• Population 60m• 4.4m SMEs• 160+ stores

SPAIN

• Population 40m• 2.2m SMEs• 50+ stores

ITALY

• Population 58m• 4.5m SMEs• 23 stores

FRANCE

•Population 60m•4m SMEs

AUSTRALIA

• Australian Ops Centre

• Population 20m• 1.9m SMEs• 600+ Stores

NEW ZEALAND

• Population 4m• 0.3m SMEs• 70+ Stores

Exposure to over 243m people and 17.3m small businesses

ThinkSmart has long term relationships with leading international retailers and funders in 6 countries

Revenue Generated at Multiple Points in Contract Life

ThinkSmart generates revenue from 3 core sources:

1. Upfront brokerage on sale of equipment– Credit risk is mostly limited to the pre-agreed loss reserves– Predominantly non-recourse funding models with leading

banks

2. Recurring income stream from Insurance through life of contracts– ThinkSmart takes no underwriting risk but receives a

significant portion of the insurance premium as commission

3. “Inertia” income at end of term– Generate from extended rentals & sales of equipment into

secondary markets – existing contracts to deliver $60m of future revenue.

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THINKSMART’S TRADING SNAPSHOT

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Strong Track Record for Earnings Growth

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0.0

2.0

4.0

6.0

8.0

10.0

12.0

2005* 2006* 2007** 2008**

EBITDA $A m

* - proforma Prospectus

** - pre IPO and US Operations

• EBITDA FY2008 = $11.3M** up 36%

• EBITDA H12009 = $5.7M

• H1 2009 - Grew NPAT 17% to $2.6m.

• Sustained H1 EBITDA at $5.7m –growth weighted to second half.

• Grew margins by 7%

• Delivered 56% increase in EBITDA & 20% increase in new business volumes from mature Australian business.

• Positioned Group well in Europe against global recessionary environment.

Australia & NZMature Business Delivering Continued Strong Growth

• EBITDA CAGR of 29% over past 2.5 years.– Achieved 20% growth in new business, 56% growth in EBITDA for

H1 2009

• Continued to grow margins through predictable inertia income

• Diversified income streams through partnership with The Warranty Group to deliver warranty product in Dick Smith. Delivered strong EBITDA contribution.

• Conscious move into consumer rental 4 years ago has driven 51% CAGR in new business volumes.

• Australian retail partners have been highly resilient in current global market.

• New “QuickSmart” processing platform has continued to reduce the cost of doing business & improved customer experience– Calls down to sub 20% of applications, 60% reduction in

processing time.

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600+ Stores79

Stores

EuropeConsumer strategy & expected market recovery positions European operations for strong growth

• Established trading platform in Manchester provides a low cost, highly scalable platform for territory expansion.

• Business currently trading in UK (7 years); Spain (5 years) and has immature businesses in Italy & France

UK > EBITDA CAGR of 32% over last 2.5 years.> H1 2009 EBITDA unchanged at £1.8m, margins up 6%> 9% increase in penetration of PC World store sales against declining footfall

Spain > H1 2009 EBITDA breakeven> Strong underlying Inertia performance in Spain continues to underpin

earnings.> Strategy to develop Spain into multi-channel territory on course (added

Phone House &Fnac to retail stable + Société Générale to funding).

France > Advancing negotiations with prospective funding partners and further retail partners.

Italy > Solid penetration on low B2B store spend. Advancing negotiations with prospective funding partners and further retail partners.

• ThinkSmart is well positioned to capitalise on market recovery

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Manchester Hub

THINKSMART 2010 GROWTH STRATEGIES

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Guiding Principles for Growth

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Successfully positioned Business for Current Environment and future markets recoveries

1. Growth Through Cash Flow, Not Debt

2. Pace of Expansion Governed by Performance

3. Alignment with Market Leading Retailers

ThinkSmart’s Key Growth Strategies

• Increase distribution channels in existing markets

• Product evolution

• Consumer rental model into mature territories

• Next generation SmartCheck integration

• Grow the Internet

• Territory expansion

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Increase Distribution in Existing Markets

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• Launched in each European territory through exclusive relationships.

• Now moving Europe to a multi-channel retailing environment like Australia.

• Targeting 3 to 4 key partners in each territory in mainland Europe.

• Already trading with chains in 4 of the top 6 electrical retailers in Europe.

• Positions business well for market recovery.

European Electrical Retailing Landscape

Retailing Groups# Electrical

StoresMixed Electrical

RevenueCountries Position

1,313 £8.2bn 11 #1 UK, #1 Nordics, #1 Greece, #4 Italy

768 €18.9bn 16 #1 Germany, #1 Italy, #3 France

2,459 £3.6bn 9 n/a

143 €4.5bn 8#2 France (but #1 by PC sales), #6 Spain, #7 Italy

714 £4.9bn 12 #1 France, #3 UK

11,300 €14.4bn 29 n/a

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Product Evolution

• Rolling out a suite of product enhancements in Europe across H1 2010.

• Designed to offer even greater value proposition to customers

• Becomes easier for sales person to sell

• Provides value over and above core “finance benefits”

• Aligns strongly with retail partners in store services

• Enhances B2B offering plus provides strong leverage into consumer rental market

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Launch Consumer Rental in Mature Territories

• Consumer rental volumes have increased 5 fold in Australian market over past 4 years.

• B2B entry strategy has enabled us to embed with major partners in international markets.

• Proven operational alignment model to make finance successful.

• Appetite now exists in a number of European markets for ThinkSmart to also provide rental to professional consumer segment

• Potential to unleash 4 times the current available market.

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Next Generation SmartCheck Integration

• Continuing deployment of “QuickSmart” retailer portal in Australia.– Provides direct access to SmartCheck system

through a web interface in store– Streamlines documentation delivery and

retrieval– Lowered operating costs– 60% reduction in processing times

• Moving to “Eclipse” till integration model with DSGi group in Europe.– Provides platform for greater expansion across

group– Expands user base in stores

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Grow the Internet

• Provides SmartCheck system direct to end users.

• Offers 24x7 pre approval capability.

• Aligns to growing customer habits for using internet to research purchase in advance.

• Acquisition strategy in Australia is seeing Internet account for 18% of settlements in recent months.– 17% higher ATV– 20% Lower conversion rate

• Core delivery strategy for AU in 2010.

• Commencing roll-out with partners in Europe through 2010.

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Territory Expansion

• Continued watch on US re entry

• Strategic retailer relationships in Europe present numerous opportunities

• No new scheduled territories slated for 2010

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Investment Summary

• Expected strong positive EBITDA growth into 2010

• Strong and resilient business model, proven in challenging trading conditions

• Compelling and highly profitable value proposition for retail partners, customers and wholesale funders

• Exclusive and entrenched partnerships with market leading international retailers and funders. Opportunity to grow market share through existing relationships (increased product relevance broadening Consumer offer)

• Continuing to expand distribution channels (additional relationships in existing territories)

• Growing funding relationships – Credit losses in line with expectations

• No net debt

• Recurring income lines from existing contracts on books. Will contribute increased revenue from Inertia and Insurance over the next 4 years.

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Appendices: Exclusive & Entrenched Relationships# Stores Launched Contract to Description Funding Partner Contract to

United

Kingdom160+ 2003 2013

Exclusive 2-way relationship

Umbrella agreement for Europe2011

Australia

371 1996 2011 Long-term exclusive working relationship

2012105 2007 2011 Solid trading from first full year together

125 1998/99 2012 Long-term partnership with traditional B2B strength

Spain

31 2005 2013 Long-term relationship2010

420* Jul 2009 2012* Launching with 5 B2B direct channel managers,

expanding to 85. Has 420 stores in Spain. Not initially

contemplating stores2011

19 Nov 2009 2012 Fnac is part of the Paris based PPR Group. I

Italy 23 2008 2011 Non-exclusive relationship 2012

France 29 Apr 2009 Trial with Media-Saturn in 4 stores in Paris In advanced negotiations

New Zealand

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2009

2007

2011

2011

Complements Australian partnership Number 2 player

in NZ

Complements Australian partnership Aggressive

growth plans

In advanced negotiations

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