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INVESTOR PRESENTATION – OCTOBER 2016
BUSINESS UPDATE AND
PROPOSED ACQUISITION
OF PLUS CONNECT LTD
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Disclaimer
This presentation (“Presentation”) has been
prepared by Activistic Limited (“Activistic” or
“Company”). You must read and accept the
conditions in this notice before considering the
information set out in or referred to in this
Presentation. If the you do not agree, accept
or understand the terms on which this
Presentation is supplied, or if you are subject
to the laws of any jurisdiction in which it would
be unlawful to receive this Presentation or
which requires compliance with obligations
that have not been complied with in respect of
it, you must immediately return or destroy this
Presentation and any other confidential
information supplied to you by Activistic. By
accepting this document, you acknowledge
and agree to the conditions in this notice and
agree that you irrevocably release Activistic
from any claims you may have (presently or in
the future) in connection with the provision or
content of this Presentation.
NO OFFER
This Presentation is not a prospectus, product
disclosure statement or other offering
document under Australian law (and will not
be lodged with ASIC) or any other law. This
Presentation is for information purposes only
and is not an invitation or offer of securities for
subscription, purchase or sale in any
jurisdiction (and will not be lodged with the
U.S Securities Exchange Commission). This
Presentation does not constitute investment or
financial product advice (nor tax, accounting
or legal advice) or any recommendation to
acquire shares of Activistic and does not and
will not form any part of any contract for the
acquisition of shares of Activistic.
SUMMARY INFORMATION
This Presentation contains summary
information about Activistic, its subsidiaries
and their activities which is current as at the
date of this Presentation. The information in
this Presentation is of a general nature and
does not purport to be complete nor does it
contain all the information which a prospective
investor may require in evaluating a possible
investment in Activistic or that would be
required in a prospectus or product disclosure
statement prepared in accordance with the
requirements of the Corporations Act. While
Activistic has taken every effort to ensure the
accuracy of the material in the presentation,
neither the Company nor its advisers have
verified the accuracy or completeness of the
information, or any statements and opinion
contained in this Presentation.
NOT INVESTMENT ADVICE
Each recipient of this Presentation should
make its own enquiries and investigations
regarding all information in this Presentation
including but not limited to the assumptions,
uncertainties and contingencies which may
affect future operations of Activistic and the
impact that different future outcomes may
have on Activistic. This Presentation has been
prepared without taking account of any
person's individual investment objectives,
financial situation or particular needs. Before
making an investment decision, prospective
investors should consider the appropriateness
of the information having regard to their own
investment objectives, financial situation and
needs and seek legal, accounting and taxation
advice appropriate to their jurisdiction.
Activistic is not licensed to provide financial
product advice in respect of Activistic shares.
Cooling off rights do not apply to the
acquisition of Activistic shares.
INVESTMENT RISK
An investment in Activistic shares is subject to
known and unknown risks, some of which are
beyond the control of Activistic. Activistic does
not guarantee any particular rate of return or
the performance of Activistic nor does it
guarantee any particular tax treatment.
FINANCIAL DATA
All dollar values in this Presentation are in
Australian dollars (A$ or AUD).
FORWARD-LOOKING STATEMENTS
This Presentation may contain forward looking
statements. The words 'anticipate', 'believe',
'expect', 'project', 'forecast', 'estimate', 'likely',
'intend', 'should', 'could', 'may', 'target', 'plan'
and other similar expressions are intended to
identify forward-looking statements.
Indications of, and guidance on, future
earnings and financial position and
performance are also forward-looking
statements. Forward-looking statements are
subject to risk factors associated with the
Company’s business, many of which are
beyond the control of the Company. It is
believed that the expectations reflected in
these statements are reasonable but they may
be affected by a variety of variables and
changes in underlying assumptions which
could cause actual results or trends to differ
materially from those expressed or implied in
such statements. There can be no assurance
that actual outcomes will not differ materially
from these statements. You should not place
undue reliance on forward-looking statements
and neither Activistic nor any of its directors,
employees, advisers or agents assume any
obligation to update such information.
DISCLAIMER
None of Activistic’s respective advisers or any
of their respective affiliates, related bodies
corporate, directors, officers, partners,
employees and agents, have authorised,
permitted or caused the issue, submission,
dispatch or provision of this Presentation and,
except to the extent referred to in this
Presentation, none of them makes or purports
to make any statement in this Presentation
and there is no statement in this Presentation
which is based on any statement by any of
them. To the maximum extent permitted by
law, Activistic and its respective advisers,
affiliates, related bodies corporate, directors,
officers, partners, employees and agents
exclude and disclaim all liability, including
without limitation for negligence or for any
expenses, losses, damages or costs incurred
by you as a result of your participation in an
investment in Activistic and the information in
this Presentation being inaccurate or
incomplete in any way for any reason, whether
by negligence or otherwise. To the maximum
extent permitted by law, Activistic and its
respective advisers, affiliates, related bodies
corporate, directors, officers, partners,
employees and agents make no
representation or warranty, express or implied,
as to the currency, accuracy, reliability or
completeness of information in this
Presentation. Statements made in this
Presentation are made only as the date of this
Presentation. The information in this
Presentation remains subject to change
without notice.
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CONTENTS
Company overview and intended acquisition
Activistic overview and business update
Plus Connect overview and business model
The acquisition
The transaction
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ACTIVISTIC & PLUS CONNECT ACQUISITON
“Creating the 21st century solution to charity fundraising through direct donations
and traditional lotteries”
The proposed acquisition of Plus Connect Limited and its services complements the Activistic model
• Complementary market landscape – charity & fundraising
• Ability to operate in Australia
• Leverage from existing technology
STRATEGIC SYNERGIES
• Leverage from two revenue engines to fast track to substantial revenue and break even point
• Ability to consolidate expenses providing cost synergies
FINANCIAL SYNERGIES
• Existing marketing and financial expertise
• Ability to utilise the marketing and sales team by cross-sell products
OPERATIONAL SYNERGIES
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CORPORATE SNAPSHOT
TRADING INFORMATION BOARD OF DIRECTORS
ASX ticker ACU
Share price $0.021
Shares on issue¹ 359 M
Market cap¹ $7.5 M
1.Closing price as at 19 Oct 2016
ADVISORY BOARD
Peter Wall
Non-Executive Chairman
Nigel Lee
Non-Executive Director
Evan Cross
Non-Executive Director
Michael Hughes
Non-Executive Director
Jonathan
Fassberg
John ZaccariaJohn
Zaccaria
Howard
Lake
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COMPANY OVERVIEW
ASX listed entity
Established micro-payments platform
Two operating products and rapidly advancing into
additional verticals and new fundraising solutions
Presence in the U.S and U.K markets
Proposed acquisition of Plus Connect Ltd
Acquisition to provide additional revenue streams
Acquisition will allow Activistic to enter the Australian market
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DONATIONS FOR
THE 21ST CENTURY
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INNOVATIVE, DEFENSIBLE MOBILE GIVING - A HUGE MARKET
MICRO-PAYMENTS PLATFORM
Providing a seamless micro-donation experience via
mobile phones
A HUGE AND GROWING MARKET
Over USD $373 billion donations made in the US
alone in 2015 over 90% off-line and one time
OPEN TO EVERYONE
Uses Direct Carrier Billing to enable small
monthly donations without the need for credit
cards, bank accounts or complications
TRANSPARENT AND EFFECTIVE
Enables the lowest cost of raising funds and
donating is truly simple and creates 1-1
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THE THIRD SECTOR - USAWHO IS GIVING
WHERE DONATIONS GO
+$373 BILLION
Total giving to charitable
organizations in 2015 –
America’s most generous
year ever
Source: Giving USA Foundation | GIVING USA 2015
+$264 BILLION
Donated by individuals
in 2015
Indiv
idua
lsR
elig
ion
He
alth
71%
32%
15%
8%
16% 9%
12%
7%
5%
11%13%
Fou
nd
atio
ns
Ed
uca
tion
Be
qu
est
Hu
ma
nS
erv
ice
s
Pu
blic
-So
cie
tyBenefit
Co
rpo
ratio
ns
To
Fou
nd
atio
ns
Oth
er C
ause
sOver U$ 373 billion
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THE PROBLEM WITH DONATING
1 Source: Blackbaud Charitable Giving Report 2013, published in February 2014
LACK OF
TRANSPARENCY
USUALLY ONE
OFF PAYMENTS
INCONVENIENCE
OVER 90%
OFFLINE1
HIGH
ADMIN COSTS
LACK OF
ACCOUNTABILITY
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THE SOLUTION
ACTIVISTIC IS CHANGING THE
LANDSCAPE OF FUNDRAISING -
FAST, EFFICIENT, ANYWHERE, ANY
TIME DONATING
THE TECHNOLOGY PROVIDES:
• Accessibility
• Low barriers to entry
• Convenience
• Engagement
• Operating leverage
2.5 - 7% OF
FUNDS
8 -12.5% RETAINED
(NET REVENUE)
15% OF FUNDS
(GROSS REVENUE)
100% OF
FUNDS
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ATTRACTIVE FOR DONORS AND BENEFICIARIES
ADVANTAGES TO DONORS
ADVANTAGES TO BENEFICIARIES
SAVINGS
Beneficiary receives a
minimum of 85% compared
to a majority of cases ~32%
in the traditional model
FLEXIBLE
Complete flexibility
in cause choice or
donation amount
MORE DONATIONS
Recurring nature of
donations through
Activistic platforms
NO TIES
No contracts or fixed
commitment, credit
cards or bank
information
LESS ADMIN
Reduced need
for fundraising
administration
ALERTS
Donors receive alerts
when their chosen
cause is funded
FREE
100% free to use
for charity
partners
OPTIONS
Ability to donate to
any cause and
any region
EASE
Simplified gateway
process makes it easier
for worthwhile charities
to receive funding
SIMPLE
Ease and simplicity
of donating – 2
minute set up time
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PRODUCTS AND REVENUE
Over 150,000 downloads of the app
12 partnerships currently in place
New version launched in August 2016
Partners fully engaged in promoting the app
Positive feedback and high rating in Google Play and
App Store
Successful marketing campaigns already completed
Strong brand awareness and reputation created by
Activistic
Gearing up for Veterans Day campaigns with charity
partners leading
VETERANS CALL
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Beta version launched in
the UK
Over 50 charities currently
represented on the platform
10 key charities signed as
co-marketing partners
WHITE LABELS
Successful delivery of
political app
Advanced discussions with
National and International
Charities
Opportunities with global
festival and concert
organisations
Direct discussions with
influential celebrities and their
management teams
Activistic patent pending
trademark
“PayPal" of Mobile Giving
Easily added to any apps
or websites and minimum
costs
PRODUCTS AND REVENUEF
or p
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GROWTH PATH
DOWNLOADSAggressive paid
marketing campaigns
aimed to generate
downloads
DONATIONSIncreased number of
donations due to
improved conversion
rates
DEALSBring home deals in
the pipeline to create
increased distribution
for VC and White Label
launches
ADDITIONAL SOLUTIONSDonateMate™ -
“PayPal” of Mobile Giving
ENGAGEMENTApp enhancements
dramatically improved user
experience and engagement
RETENTIONLong retention periods ensure
higher LTV and ARPU
SPEEDReduced re-skin time from
months to weeks/days
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COMPETITIVE ADVANTAGE
HIGH DEFENSIBILITY MGF,
TXTNATION CONTRACTS
PATENT PENDING PROTECTION
US, UK, AUS, EUROPE
STRONG IP DEVELOPED OVER 4
YEARS
STICKINESS – ONCE
DOWNLOADED THE APP
ENSURES HIGH RETENTION %
SCALABLE
LOW CAPEX / HIGH MARGIN
BUSINESS MODEL WITH MASS
MARKET APPEAL
FIRST MOVER ADVANTAGE
KEY RELATIONSHIPS ALREADY
IN PLACE
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UNDERVALUED OPPORTUNITY
ACTIVISTIC’S ACCELERATED GROWTH WILL RAPIDLY CLOSE THE VALUATION GAP
Market Cap¹: $7.5 M
First Year: 2015
Sectors:
Charities
Entertainment and celebrities
Political
Religion
Cash flow: Negative
Market Cap¹: $438 M
First Year: 2011
Sectors:
Religion
Enterprises
Charities
Cash flow: Negative
Activistic is has been operating since May 2015 and actively
marketing from 2016 only.
Pushpay is at a very advanced stage as it has been operating
since 2011. Official launch date was January 2014.
Veterans Call White Labels DonateMate™
1.Closing prices as at 19 Oct 2016
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POSITIONED FOR RAPID GROWTH
PRODUCT TODAY
• Technology and products built
• Two operating apps in the U.S market
• Presence in charity and political sectors
• Advanced negotiations for white labels in new
verticals
• Additional products - DonateMate™
PRODUCT ROADMAP
• Improving conversion, re-marketing and
retention tools and virality
• White Labels: “cut and paste” new apps
reducing costs / time to revenue
• DonateMate™ : add to any app or website
at minimum cost – SDK distribution model
REDUCED USER ACQUISITION COSTS
• Marketing efforts delivered downloads and
brand awareness
• Improved user experience resulted in higher
conversion rates
• Partner charities to promote the product
resulting in reduced acquisition costs
REVENUE GENERATION
• Revenue growth through existing apps
• New white labels to provide rapid user
acquisition and revenue
• Additional products – DonateMate™ – to
become the “PayPal” of mobile giving
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PLUS CONNECT
A DISRUPTIVE MARKETING
MODEL TARGETING TRADITIONAL
LOTTERY CUSTOMERS WHILE
SUPPORTING CHARITIES AND
NOT-FOR-PROFITS
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INDUSTRY OVERVIEW
KEY STATS:
INTERNET LOTTERY TICKETS
• Revenue 2016: $6.1 billion
• Annual growth – past 5 years: 1.2%
• Over 50% of adult Australians participate in
lotteries
• Convenient
• Quick
• Repetitive model
• 10% of Australian lottery tickets are sold on the internet
• This accounts for over 28% in other countries
INTERNET LOTTERIES – WIDE AUDIENCE:
GROWING MARKET – CLOSING THE GAP
OPPORTUNITY:
• Local and international lotteries in Australia
• Lottery products overseas
• Fully insured – de-risked model
10%
Australia
28%
Overseas
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REVENUE MODEL
NOW – TODAY’S PRODUCTS FUTURE –ADDITIONALPRODUCTS
Charity and Sports Lotto-style Products
Products Overview
• Products operate under Northern Territory
license
• 20% of sales goes to charity or sporting groups
Status
• Charity lottery established and growing
• Sports lottery ‘live’ pending launch
• Advanced negotiations with high profile sporting
clubs
Commercial Lotto-style Products
Products Overview
• European and US lotteries and substitute
products sold into the Australian market
• Asian lottery products offered in Australia
• Lottery products offered overseas
Status
• Technology delivered
• Zeal Network products ready for integration
($60 - $100m jackpot)
• Asian lotteries to be implemented
• Keno products to be implemented
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REVENUE MODEL
1 European lotteries have a total fixed cost of 70%
2 COGS decrease as volume of transactions grow
FUTURE – ADDITIONAL PRODUCTS
Commercial Lotto-style Products
Win COGS Charity Margin
Charity Lottery 30% 20% 20% 30%
Sports Lottery 30% 20% 20% 25%
Win COGS2 Charity Margin
European Lotteries¹ - 27% - 30%
Asian Lotteries 40% 20% - 40%
Keno PLUS 30% 20% - 50%
NOW – TODAY’S PRODUCTS
Charity and Sports Lotto-style Products
• Target products to discrete
market segments
• High margins
• Complementary with charity and
sports offering
• Drive community acceptance
• Rapid and Low-cost customer
acquisition
• Government lobbying power
• Key revenue drivers
• Number active customers
• Frequency of participation
and retention period
• Yield per product
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TODAY’S PRODUCTS
• Product trialed and commissioned
• User base constantly growing
• Strong support from charity partners
• ≈ 800 active users playing everymonth
• Product developed and operating
• Advanced discussions with high profile
sporting clubs
• Emerging sports funding industry
• Discussions underway with major codes and
sporting bodies
CHARITY LOTTERY
CustomersMonthly
SpendMargin
Net revenue /
month
95,000 $25 30% $712,500
CustomersMonthly
SpendMargin
Net revenue /
month
122,000 $25 25% $762,500
SPORTS LOTTERY
Targets – 36 months
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LOTTERIES –A SUCCESSFUL AND ACCEPTED MODEL
Postcode Lottery - UK Zeal Networks
CHARITY AND SPORTS LOTTERIES COMMERCIAL PRODUCTS
• 6.1 million players in 2015
• Revenue: €1.5 Billion
• Contribution for charities: €613 Million
• 1990-2015 contribution: €7.2 Billion
• 2015 sales in excess of €280 Million
• Continuous strong and stable performance
• History of dividend distribution
Lotto Network (Football
Lotto) - UK
• 2.5 million registered users
• Annual revenue of £120 Million
Jumbo Interactive
• ASX listed – market cap ≈A$79 Million (13 Oct 16)
• FY 2016 sales: A$156 Million
• History of dividend distribution
Lottoland Australia
• 2015 sales in excess of A$100 Million
• Provision of Australian and International lottery
products to Australian customers
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ASSETS
A Northern Territory license Agreements with four reputable
charities
A Norfolk Island license Advanced negotiations with high profile
sporting clubs
Two existing products An established management
team
A socially responsible
modelExtensive experience
High operating leverage Exclusive license with Lloyds for Lottery betting
in Australia
Head of agreement with MyLotto24
for commercial lotto supply
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PLUS CONNECT SUMMARY
Entertainment with charity
component
Commercial products available to be
implemented and commercialised
High ARPU and margins
Potential to replicate successful UK
charity and sports lottery model
Strong cash flow potential
Great growth potential for online
lottery products in Australia
Advanced negotiations with high
profile sporting clubs for
commercialization of Sports Lottery
Two operating products ready
for aggressive commercialisation
Strong support from partner charities High retention business
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THE ACQUISITION: 1+1=5
Same market landscape – charity +
fundraising
Plus Connect allows Activistic to
operate in Australia
Different propositions –
same outcome
Leverage with Activistic’s existing charity
partners in Australia
Existing technologyPlus Connect can leverage Activistic’s
international footprint
STRATEGIC SYNERGIES
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THE ACQUISITION: 1+1=5
Two revenue engines
Increased volume and liquidity
Low and high ARPU
Short and long term
revenue profiles Cost synergies
Exposure to new investors
Low volume and high
margins vs high volume
and low margins
Fast track to substantial revenue
and break even point
FINANCIAL SYNERGIES
$F
or p
erso
nal u
se o
nly
THE ACQUISITION: 1+1=5
Cross-sellingShared support services and
compliance costs and experience
Existing marketing and
finance expertiseGeographic complements
E-Commerce and M-Commerce
complements
Single experienced Board
of Directors
OPERATIONAL SYNERGIES
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THE TRANSACTION
Total consideration of 180,000,000
Activistic ordinary shares
Pre-bid acceptance: 19.04% of
Plus Connect shareholders
Additional 12,500,000 Activistic shares to be
issued to a Plus Connect creditor in satisfaction
of a $250,000 debt
Shareholder Intention Statements: 45.12% of
Plus Connect shareholders
Each Plus Connect shareholder will receive
3.0779 Activistic ordinary shares for each Plus
Connect share held
Activistic to loan up to $500,000 to Plus Connect
in the period between signing the BIA and
settlement of the acquisition for working capital
and marketing expenditure
56.4% of Plus Connect shareholders have agreed
to voluntarily escrow their Activistic shares for a
period of 12 monthsPaul Crossin – Plus Connect MD – to join the
Activistic Board as an Executive Director
OFF MARKET TAKEOVER OFFER TO ACQUIRE
PLUS CONNECT
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THE TRANSACTION
INDICATIVE TIMETABLE
EVENT DATE
Execution of Bid Implementation Agreement 21 Sep 2016
Bidder’s Statement and Target Statement lodged with ASIC and ASX 20 Oct 2016
Bidder’s Statement and Target Statement dispatched to Plus Connect shareholders 27 Oct 2016
Takeover offer closes 28 Nov 2016
Issue of ACU shares to accepting Plus Connect shareholders 05 Dec 2016
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• Charities and other non-profit organisations
have not kept up with technology.
• This represents a growing market opportunity
for Activistic
• Revenue generated through direct donations
• Revenue generated through socially
responsible entertainment products
• Two operating products in the US market
• Charity and Political sector
• Advanced negotiations for white labels in
entertainment and celebrity sectors
• Two charity products in Australia
• Strategic geographic locations
• Strong brand awareness in US market
• User growth through existing apps and new
verticals and products
• Growing Australian user base through
entertainment products
• Potential for commercial lottery products and
overseas expansion
SUMMARY
LARGE MARKET WITHOUT SUITABLE
TECHNOLOGY
TWO REVENUE STREAMS
ALREADY GAINED TRACTIONSTRONG FOUNDATIONS
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INVESTOR PRESENTATION – OCTOBER 2016
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