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26/05/22 1 Jumbuck Entertainment Ltd Leading the creation of wireless, global, user-driven, communities. BBY Limited TMT Conference November 2 nd 2006

Jumbuck Entertainment Ltd

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Page 1: Jumbuck Entertainment Ltd

13/04/23

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Jumbuck Entertainment Ltd

Leading the creation of wireless, global,user-driven, communities.

BBY Limited TMT Conference

November 2nd 2006

Page 2: Jumbuck Entertainment Ltd

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Company Overview

Market Overview

Outlook

Financial Overview

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Founded in 1999, was the first company to offer wireless chat services globally

Today is the world’s leading provider of user driven, mobile community and social networking services

June 2006 announced acquisition of wap3 community business out of Germany

Direct Agreements with over 70 carrier customers across 6 continents

Strong Revenues of $11.2m FY06 – up 59.6% on previous year

Forecasted Revenues $17m FY07

Over 15 million unique users across all of its services

Today we transmit average 3 billion page impressions per month globally

» UK generated approximately 2 billion WAP page impressions in January 2006, of which Jumbuck accounted for 19%.

Employee base of 60

Offices in Melbourne, San Francisco,Cologne, London, and Ukraine

About Jumbuck

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An empowered and ‘always on’ generation

Aged: 14 – 35

Initially known as the ‘click and go’ generation, ‘C’ can stand for any and all of the following:

Community Connected Creative

- Extrovert - Want to be star

Content

Device: mobile phone – anytime/ anywhere

Communication: Chat, Instant Message, SMS and email

Don’t just use one – but many!

Network: local and global

Target Market – Generation Y &C

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Core business is development and support of 4 key mobile community brands:

Power Chat (SMS; WAP; JAVA; BREW) Fast Flirting Jumbuck Island Chat Del Mundo

Success is based on the following principles:

Integration of carriers globally (connecting local & global communities) Large community 24*7 Ease of Use – simple User Interface Fun & safe services Viral Marketing – users spreading the word on our behalf

Products – Jumbucks Global Communities

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Products - Jumbuck Global Communities

Fast Flirting- Wireless flirting service – based on speed dating concept- Average session time 30 minutes- Average growth in users per month 5%

LIVE CHAT

Power Chat- Wireless chat service- Supports WAP/ SMS/ JAVA/ BREW/ MMS- Average session time 20 minutes- Available in English, French, German, Italian, Polish and Russian

Jumbuck Island - Jumbuck Island is the worlds first mobile 3D java chat application. - Merges gaming and messaging technologies - Average session time 30 minutes- Live on Sprint; Cingular; Optus; T-mobile and O2

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Competitive Advantages

Competitive Advantages / Barriers to Entry

- Large community - maximize user 24*7

- Direct Agreements - Moderation Services 24*7 - User Ownership - not a brand

Handset Agnostic

- Platform supports over 10,000 mobile configurations

- No alliances with handset manufacturers

- Built for Mobile

IP

- Company owns its own industry-leading software IP

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Business Models are divided in to two categories depending on region and dictated largely by a carrier’s billing capabilities:

USA – Monthly Subscription e.g. $1.99 per month

(Rev Share to Jumbuck between 50-70%)

UK/ AUS/ Europe/ Sth America – Flat fee or fee based on data (Scaled structure)

Pricing

low price to encourage more users to join community and reduce barrier to entry is essential

Operator Cooperation important factor in success

Eliminates need for billing aggregator

Most users still discover content via the carriers portal

Provides customer support

Provides marketing support

Ensures a higher quality debtor v. end user

Jumbuck Business Model

End User (participates in

community – has content published)

Carrier (Billing; Distribution

through portal; Access)

Jumbuck (Application/ Brand/

Community/ Moderation)

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SOME OF OUR CUSTOMERS

                   

                 

               

                 

                  

                

   

               

  

             

  

               

  

                

  

                   

                 

               

                 

                  

                   

                 

               

                 

                  

                

   

               

  

             

  

               

  

                

  

                   

                 

               

                 

                  

                

   

               

  

             

  

               

  

                

  

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Market Coverage

AUS/ NZ JM B ADDRESSABLE M ARKET

- 90%

NORTH AMERICA JMB ADDRESSABLE MARKET -

95%

EUROPE (UK) USERS ADDRESSABLE

MARKET-33%

LATIN AM ERICAN USERS ADDRESSABLE M ARKET - 25%

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Overview of Market 2 billion mobile subscribers – growing at 8.8% pa Mobile Communities to reach US$13.1 billion by 2010 (Informa Telecoms)

Includes communities interacting around;

Gaming

Music

Video

IM ; and

User Generated Content

Forecast Mobile Communities

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1 2 3 4 5

Years 2006 - 2010

Bil

lio

ns

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Increase in number of mobile phone users from 2 billion to 3 billion by 2010 Specifically increased number of Generation Y&C

Carriers increasing need to increase ARPU Looking to data services - non-traditional areas Need to differentiate Need to recoup investment in 3G

Mobile users moving up the value chain to use wireless content services Faster 3G networks- Still only 10% of global accessing 3G networks- Users on 3G networks - 50% increase in data in usage Enhanced Handsets (Image and Video capabilities)- MMS interconnectivity between carriers and enhanced handsets making it easier to

access wireless community services with richer interfaces:- Current global average of video phones is 15% (est. 26% in key market of USA)- More than 33% have posted images/ videos to web site – mobile makes it easier to

share in real time!

Increased penetration in emerging markets i.e. Latin America, Russia and Asia Pacific

Increased usage of SMS in USA - $3billion market today “5% of all text messages sent will relate to social network interaction in 2007” (Gartner Group)

Global trends contributing to this growth

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What does this mean for Jumbuck?

More market growth expected in future, organic growth to continue

Jumbuck is exposed to a large number of different regions

- more likely to keep growing consistently in future compared to single-carrier/ single-region companies.

Video and 3G devices boost data usage, boost subscriber downloads and usage of Jumbuck related services

New features to increase ‘stickiness’ of users

Emergence of New business models e.g. MMS price points

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Organic Growth - Upgrades to existing products and vertical selling of other services- Service translations i.e. Fast Flirting in Spanish; German; Italian- Integration of image and video capabilities – currently rolling out

New Customer acquisition (UK, Europe and Latin America)

- Recent contracts signed with Virgin Canada, Movistar Panama & Venezula, TIM Italy, and Kyvistar Russia.

Expanded Product Portfolio

- SMS and MMS Chat Rollout – Virgin USA recently launched

- Chat Del Mundo – launch world’s biggest Hispanic community service 'Chat Del Mundo’ in USA.

- 12.5% of USA market is Spanish speaking - Contracts signed with Sprint and Cingular

USA Presence

Acquisition

- Technology Gap

- Geographical Gap

Demo - http://kevin.s.wap3.com.ua/wchat2/worldchat.html

Outlook FY07

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and beyond that ….. advertising Advertising will come to a mobile phone near you… soon

Advertisers recognise the power of the network and the truly connected individual is the hub of their own network

Truly targeted market, based on recognised behaviour, results in a relevant, welcome offer, not a sales pitch

Jumbuck ideally placed 3 billion page impressions

Understanding of user base – critical to relevant brand

Data on user trends

Location specific e.g. even at country level – more targeted offers likely to be even more welcomed by users and appealing to brand owners

BUT ……

Some time away

Carriers will need to be on board

Must not impact user experience or RISK community numbers falling

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Financial Highlights

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Sales Revenue $11.2m FY06 up 59.3%

EBITDA up 71.6%

NPAT up 51.9%

EPS up 49.2%*

Operating cashflow strong at $6.33 million

Acquisition of wap3 Community business June 2006 enhances presense in Europe/ South America.

Financial Highlights

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INCREASED ANNUAL REVENUE

SALES REVENUE ($000's) ACTUAL: JULY 2002 - JUNE 2006

0

2,000

4,000

6,000

8,000

10,000

12,000

2002/03 2003/04 2004/05 2005/06

Financial Year

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EBITDA MARGIN NET PROFIT AFTER TAX

EBITDA MARGIN (%)ACTUAL: JULY 2002 - JUNE 2006

0

10

20

30

40

50

60

2002/03 2003/04 2004/05 2005/06

Financial Year

NET PROFIT AFTER TAX ($000's)ACTUAL: JULY 2002 - JUNE 2006

0

500

1000

1500

2000

2500

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4500

2002/03 2003/04 2004/05 2005/06

Financial Year

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FINANCIAL STATISTICS

Year Ended 30 June 2001/02 2002/03 2003/04 2004/05 2005/06$000's $000's $000's $000's $000's

Prospectus Prospectus Actual Actual ActualProforma Proforma

EBITDA Margin (%) (172.6) (15.7) 30.5 52.2 56.2

EBIT Margin (%) (180.9) (19.9) 28.2 44.1 48.7

Profit Before Tax Margin (%) (181.1) (20.0) 28.2 45.0 51.0

NPAT Margin (%) (181.1) (20.0) 30.0 38.3 38.2

EPS (cents) (5.28) (1.43) 2.60 6.30 9.40

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The Australian, July 26th, James Dunn ‘HighTech Focus on Generation Y’ “one of the best - but least known - exposures to Generation Y on the Australian share market is Jumbuck Entertainment, a mobile entertainment company that provides games and messaging services to mobile users globally. I don't know of any company that would have a better handle on Generation Y than Jumbuck”.

BRW, 03/08/2006, Brad Howarth ‘Going Mobile’ “mobile chat-room technology developed by Jumbuck Entertainment in Melbourne is now used by 40 carriers. In May 2006, Jumbuck acquired a German company, wap3, bringing the number of networks to 70, with 14.5 million users, and it plans more international acquisitions”.

Moconews.net, August 30th, Australian company Jumbuck has signed up UK operator, T-mobile, to its “suite of community services”, the flagship being Jumbuck Island, which is a 3D virtual world that acts as half massively multiplayer game and half chat function, as players walk around a virtual island and interact with each other. It’s already on Sprint, Nextel, Optus, O2 and Cingular, and this paragraph from the press release jumped out at me:T-Mobile UK, Content Manager Lenka Horakova, commented, “The real advantage with Jumbuck is that T-Mobile customers have been able to benefit immediately as they are able to communicate instantly with Jumbuck’s large established global community. We’ve already had great feedback on their services from our customers.”

Posted By james On 18th July 2006 “Last year, Jumbuck alone accounted for 19% of wap traffic in the UK, which totaled 2 billion page impressions. 30% was accounted for by other mobile community sites, with 51% being “the rest”.” Almost half of the WAP content was for mobile communities….

Thank You

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CONTACT DETAILS

Paul G ChoiselatManaging DirectorTel: 61 3 9691 4900Fax: 61 3 9600 1500Mobile: Local - 0414 232 143

Int. - 61 414 232 143 Email: [email protected]

For Share Enquiries: Tamira HerbstCompany SecretaryTel: 61 3 9691 4910Fax: 61 3 9670 7932Email: [email protected]

For Commercial Enquiries:Olivia Hilton Chief Executive OfficerTel: 61 3 9620 3839Fax: 61 3 9620 3846Email: [email protected]

Website: www.jumbuck.com

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Intention of this Document

This document is intended to be provided by Jumbuck Entertainment Ltd (JMB) to the Australian Stock Exchange (ASX) for public release in the spirit of full disclosure and in accordance with the Company’s continuous disclosure obligations.

It is intended that this document be read in conjunction with all other announcements made to the ASX and in particular, the statements of financial performance by JMB.

Investors should not act or refrain from acting in sole reliance on this presentation material. This overview of JMB does not purport to contain all information which investors may require in order to make an informed assessment of JMB’s prospects.

The presentation may contain certain financial forecasts and other material of a forward looking nature in relation to JMB (Forward Looking Material). Such Forward Looking Material is based on many assumptions and is subject to uncertainties and contingencies many of which are outside the control of JMB.

DISCLAIMER

This  document may be used in and form part of a presentation  given by Beconwood Corporate Finance Pty Ltd (Beconwood) in its capacity as an authorised representative of Falconer & Bellomo Co Ltd AFSL 244 315 in respect of Jumbuck Entertainment Ltd (Company).

Where used in a presentation  or otherwise circulated, this document will be provided to a limited number of persons or investors for the sole purpose of providing preliminary background financial and other information to enable recipients to review the business activities of the Company. It is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities.

Beconwood may derive fees as a result of  the  presentation or for assisting in the compilation of this  document.

This  document  should not be relied upon as a representation of any matter that a potential investor should consider in evaluating the Company. Beconwood and affiliates or any of  their directors, agents, officers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability for any statement made in, or omitted from, this document .

Prospective investors should make their own independent evaluation of an investment in the Company.

Nothing in this document   should be construed as financial product advice, whether personal or general, for the purposes of Section 766B of the Corporations Act. This document  consists purely of factual information and does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product.