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									Preliminary Results for the year ended
30th June 2010




                                   25 August 2010
George Osborne in India




                 Click to play
                                 2
Agenda
• Introduction

• Market update

• Company update

• Finance update

• Summary
Introduction
                                                               Page number
The Network Effect
       UK iPhone launch
                                        New Media Age winner „Best Use of Mobile 2010‟




                                          Lloyds TSB “Say Hello” campaign


    O2 16 apps press campaign




      Multi state roll out during the
                tax season

                                                                                         5
 Overview

• Mobile money market - large, validated and fast-growing global market


• Monitise platform established as a market leader


• Gaining significant traction
 – Strong UK track record with platform already adopted by RBS Group,
   HSBC & Lloyds & available across all mobile phone networks
 – Customer base growing rapidly
 – International partners include Visa, SCB, Travelex & FIS
 – JVs in place to access fast-growing markets of USA, Asia Pacific &
   India



                                                                          6
 Overview Continued


• Strengthening of relationship with Visa
 – Equity investment increases shareholding to 14.4%
 – Extension of Global Alliance Agreement (GAA) and licensing of
   new strategic territories (Mexico and Russia)


• Cash raised provides funding for Group until cash generative
 – UK operations expected to reach cash break-even by December
   2010
 – Current live operations expected to reach cash break-even
   during FY12


• Significant opportunity to cement leading international position


                                                                     7
Market
update
Mobile Money and the Opportunity

 • Mobile Money is securely accessing your finances through your mobile phone
 • Mobile Money gives you the freedom to bank and pay on the move
     – Direct connection to accounts
     – Ability to make payments/transfer funds
 • The scale of the opportunity is enormous
     – There are 2.2 billion people using financial services in the world                (Financial Access
            Initiative, McKinsey 2009)
       – There are 4.6 billion mobile phone users in the world              (International Telecommunications
            Union, “Measuring the Information Society” 2010)




               400m                                   108.6m                               $250bn



  The number of subscribers                The number of people who will         The value of mobile
  who will use their phones for            make payments by mobile               payments by 2012, growing
  mobile banking by 2013                   phones in 2010 – up from 70.2m        globally at 68% p.a. from
  (Juniper Research, 2010)                 in 2009 (Gartner, June 2010)          2008 (Arthur D Little, 2009)



                                                                                                                9
Company
update
Group Overview


      Global          Banking & payments touch the lives of billions of consumers worldwide
    opportunity




 Blue chip business
      partners



 Adopted by major
   UK and other
      financial
    institutions



   Wide platform      Any phone, any network
   applicability
                      Via SMS, Java, Brew, Browser, iPhone, Blackberry, Android


   Broad range of     From balance enquiry to instant payment
      services
                      Account management, payments, mCommerce

                                                                                              11
                 - A Key Strategic Partner


Visa Inc.
• A global leader in payments
                                                                         •    16,000 financial institution customers
• A key strategic partner for Monitise                                   •    1.8 billion Visa cards (31 Dec 2009)
                                                                         •    64 billion total transactions
• Mobile channel is a major strategic imperative for Visa                •    $2.9 trillion payments volume
                                                                         Source: Visa website. Figures as of 31 March 2010 unless stated otherwise




Strengthening of Global Alliance Agreement (GAA)
                                                                       “Mobile – the next payments frontier”
• Equity investment increased to 14.4% in Monitise plc                               (Visa Inc.)
• Extension of Global Alliance Agreement
     •      Term increased to 2015 , minimum fee commitment increases from $13m to $16m
     •      Monitise to grant Visa Inc. license for further deployment in Mexico and Russia – licence fee of
            $1.5m anticipated for FY10/11
• Appointment of Elizabeth Buse, Group Executive, International, for Visa Inc. to the Monitise Board




                                                                                                                                                     12
Our managed services make the complex
simple…




         Patent
         Protected                      12
Monitise Customer Propositions



 Advanced                        Customers
 28%                          who have multiple           (£7+ ARPU)
                             services Customers
                                  who have
                             downloaded an app


Essentials             Customers who have registered
24%                         for text alerts services      (£2-3 ARPU)
                       Customers who have registered
                        for account updates (via text)


Feeder
                       Typically customers who have
48%                      registered for our pre-paid
                                                          (<£1 ARPU)
                      card and card activation services

                                                                        14
Typical Feeder Services


• Debit and credit card activation by text
• Pre pay card balance notification
• Update and event confirmation
  text messages




                                             15
Typical Essentials Services


• Pull an account Balance via text
• Weekly Text Update
• Low Balance Text Alerts
• Actionable Alerts
• Overdraft Sweep
• PayDay Sweep




                                     16
Advanced Services


• App Stores: Apple, RIM,      • Reloads: Airtime top-up
  Ovi, Android                   Transit, Prepaid
• Secure Browser alternative   • Cross Sales/CRM Prompts
• Bank Accounts, Prepaid       • Loyalty
  Cards, Credit Cards
• Account Management           • 2FA for secure log in
• Set & Manage Alerts          • Stock Trading
• Lock/ Unlock Cards           • Coupons & Vouchers
• Branch/ATM Locator           • Lottery
• Bill Present & Pay           • NFC Ready
• Payments: Pay
  Anyone & P2P

Live
Future roadmap
                                                           17
Emerging new customer behaviour

         Advanced segment usage trends

         •Banking channel of choice, with 16 transactions
         a month

         •App usage highest between 7am and 9am (on
         the way into work)

         •Usage peaks on Friday’s and Monday’s and at
         the end of the month (‘have I been paid yet?’)

         •90% of customers who download it, go on to use
         the app regularly




                                                            18
   Unlocking the Potential

In the developed world, factors that drive
addressable market are:

    Adult population
    % banked or with prepaid cards
    % pop with mobile phone

                                                                                      Asia Pac (Inc
                                                                                      China) 400m+
                                                                                       Consumers
                                                         India 230m+
                                                         Consumers
                                                         In the developing world, factors that drive
                                                         addressable market are:
                                              USA 212m
                                             Consumers   Adult population
                                                         % pop with mobile phone
                                                         % with banked or with prepaid cards but also
                                                         offer an m-wallet for the unbanked if the
              UK 36m                                     regulations allow
             Consumers
                                                                    Time


                                                                                                         19
Finance
update
                   Business Evolution




                                    Live

                         UK         2007
Live Operations




                      Americas      2008
                                           TECHNOLOGY




                     Visa Global    2009


                                    2010
Investment Areas




                     Asia Pacific


                       India        2011


                       Africa       2012




                                                        21
Financial Summary

 Revenues                                                                       FY08 to FY10 Revenues by Type

 • Revenues of £6m, up from £2.7m in FY09 (↑125%)                                                             £6.0m
                                                                  6.0
   • H2: £4.3m, up from £1.6m in H2 FY09 (↑170%)
                                                                  5.0
   • Transactional revenues gaining traction (↑490%)                                                            2.9
                                                                  4.0
 Live Operations                                            £m
                                                                                            £2.7m
                                                                  3.0                                                         Transactional
 • Reducing losses from H1 to H2                                                              0.5
                                                                                                                1.7           Revenues
                                                                  2.0     £1.5m                                               License Fees /
                                                                                              1.1
 • Driving towards profitability                                  1.0
                                                                            0.4
                                                                                                                              Royalties
                                                                                                                1.4           Development
                                                                            1.0               1.1
   • UK operation on track to cash break-even by Dec 2010         0.0
                                                                                                                              Revenues

                                                                          FY 08              FY 09             FY 10
   • Monitise Americas close to cash break-even                          FY 07/08           FY 08/09          FY 09/10


 Investments
                                                                        H1 FY08 to H2 FY10 Transactional Revenues
 • Increase in investment spend H1 to H2
                                                                  2.5
   • Asia Pacific JV
                                                                  2.0
   • Enhancement of platform capability
                                                                  1.5
      • Growing appetite for mobile payments
                                                             £m
                                                                                                                                    2.1
      • Retaining / extending our technological advantage         1.0


 Cash                                                             0.5
                                                                                                                       0.8

 • Cash balance of £13.2m at 30 June 2010                         0.0                0.1       0.2      0.3

                                                                        H1 FY
                                                                        H1 FY       H2 FY
                                                                                    H2 FY     H1 FY
                                                                                              H1 FY    H2 FY
                                                                                                       H2 FY          H1 FY
                                                                                                                      H1 FY       H2 FY
                                                                                                                                  H2 FY
   • Cash balance, post fund-raising, in excess of £42m                  08
                                                                        07/08        08
                                                                                    07/08       09
                                                                                              08/09      09
                                                                                                       08/09           10
                                                                                                                      09/10        10
                                                                                                                                  09/10




                                                                                                                                               22
   Segmental Performance – Year on Year


                                                        FY 10                               FY 09

                                                          Year                              Year

                                                Revenue          Op (loss)*         Revenue         Op (loss)

                                                    £m                £m                £m             £m

Live operations                                     4.8              (2.5)              2.1           (2.0)**


Future Ops/Technology/Corporate                     1.2              (11.8)             0.6          (10.0)


Total                                               6.0              (14.3)             2.7          (12.0)**




                   *Before Share Base Payments/Exceptionals

                   ** Prior year loss for live ops includes 50% share of Monitise Europe.
                   Like for like Group operating loss is broadly flat year on year
                                                                                                                23
    Segmental Performance – FY10
    H1/H2 Revenue & Loss Trend



                                          H1                      H2                   Year
                                  Revenue      Op(loss)   Revenue   Op(loss)   Revenue    Op(loss)
                                    £m           £m         £m         £m        £m            £m

Live Operations                     1.6         (1.6)       3.2        (0.9)     4.8          (2.5)



Future Ops/Technology/Corporate     0.1         (5.3)       1.1        (6.5)     1.2          (11.8)



Total                               1.7         (6.9)       4.3        (7.4)     6.0          (14.3)




                                                                                                       24
Segmental Performance – FY10
H1/H2 Margin & Overhead Trend




                                H1       H2      Year

                                £m       £m       £m
   Revenue                      1.7      4.3      6.0

   Gross Margin                 0.9      2.9      3.8

   Total Overheads              (7.8)   (10.3)   (18.1)


   Operating Loss               (6.9)   (7.4)    (14.3)




                                                          25
Key Milestones

    Year to 30              Year to 30
                                                     2013 Onwards
    June 2011               June 2012

      UK operation           All existing live        Group cash
       moves to cash           operations at cash        generative
       break-even              break-even (UK /
      Hong Kong launch        N America / Visa)        Major
      China pilot launch     First Indian              mCommerce
      India launch            transactional             launch
      First Monitise          revenues
       enabled Visa           First deployment
       product launch          of live services in
      First Visa              China
       transactional          Further rollout
       revenues                within Asia Pacific
                               region




                                                                      26
Summary

• Fast growing demand for mobile money worldwide
• Established market leader with 8 years of investment in technology and relationships
• Highly motivated team supported by experienced Board, strengthened by new
  appointments
• Blue chip partners & strategic investors
     – Facilitating global access
     – Deepening relationship with Visa
• Transactional revenues growing rapidly
• UK operations expected to reach cash break-even by December 2010
• Fundraising enables Monitise to
     – Retain and extend its technological advantage
     – Fund new areas of operation
     – Take the Group to cash generation


       Right partners, right team, right technology, right time
                                                                                         27
Appendix
Global Footprint




    Monitise Americas                     Monitise Europe                           Monitise Asia Pacific                  Monitise India
•   JV with FIS to tackle world‟s     •   Launched in 2006                      •   Recent JV formed with First        •   New JV formed with Visa Inc.
    largest consumer markets                                                        Eastern
                                      •   UK as flagship home market before
•   Launched 2008                         international roll out                •   Showcase launch planned for Hong
                                                                                    Kong as springboard into China
                                                                                                                           Monitise Africa
•   Over 200 financial institutions   •   Significant customer growth in 2010
    signed up                                                                                                          •   Development underway
                                      •   >55% of UK retail banking market
                                                                                                                           supported by grant funding
                                          coverage
                                                                                                                           (Africa Enterprise Challenge
                                      •   Available through all mobile                                                     Fund)
                                          networks




                                                                                                                                                          29
   Driving Transactions in a Mobile World

Enquiries          Bank Accounts, Savings Accounts, Credit Card and other Accounts
Payments
Information




Financial      VISA                             FIS
Transaction
Processors
              Payments                        Payments
                              VocaLink




Consumer
interface

                  Cheques                      POS
                                                                                     30
The Mobile Evolution
If you don‟t establish the secure link now it is lost




                Importance of mobile commerce to the Banking industry

            Phase 2 mCommerce                           mCommerce - Proximity “NFC”
            Mass market payments

                                                        person to person payment “text
           Network extension of A2A
                                                                   money”
             Cheque replacement

             Phase 1 mCommerce                     mCommerce – Remote “text to buy”
             Extend payment reach                   Vouchers & offers (add revenue)

        Leverage payment infrastructure
                                                          Account to account payment
           Defend payment position

       Mass market self service channel
     Cost reduction & service enhancement        Account information/money management


                                                                 Database
      Foundation for driving asset value
                                                                MSISDN - PAN




                                                                                         31
Mobile Money will be
a massive market




‘‘The number of mobile subscribers who use their phones for mobile banking will exceed
  400m globally by 2013, according to a new in depth study by Juniper Research. This
  equates to double the number of users this year. Juniper Research, July 2010

  'The number of people using their mobile phones to make payments is set to grow from
  70.2 million in 2009 to 108.6 million this year, a 54.5% rise. Gartner, June 2010
                                                                                       ‘‘
  'New types of SMS mobile banking alerts will help to treble the volume of mobile banking
  messages to almost 90 billion per annum by 2015, equating to one message every two
  days for every mobile banking user. Juniper Research, August 2010




                                                                                             32
Emerging new behaviors



          %




                         33
Understanding their finances
sets them up for a day




                               34
Appealing to a mass market




                             35
NatWest iPhone Proposition




  Q2 16 apps press campaign   App store home page


                                                    36
August Lloyds TSB collateral




                               37
Example live apps.




        CSB Mobile Money    Health Mobile – Wealthcare




        PyraMax             HIB Mobile – Highlands




        AmBank Mobi - ABT   Magna Mobile




        Avidia Bank         Stoneham bank


                                                         38
Recent milestones

     Q2 ‘08     Q4 ‘08           Q1 ‘09        Q2 ‘09        Q4 ‘09          Q1 ‘10          Q2 ‘10         Q3 ‘10



                                                                                          June 2010:
October 2008: 1st                                                                     Agreement signed
    1 million                                                                         with VISA for India
  transaction            Aug 2009: Monitise
                                                                                              JV
     month                 breaks 750,000
                          customer barrier
                          and takes 100%
         June 2009:      control of UK joint
         Visa 5 year          venture                                   March/April 2010:             July 2010: Further
       global alliance                                                       Monitise                  £32m raised on
                                        Nov 2009:
           signed                                                         hits 2 million               capital markets
                                     Monitise launches
                                       Smartphone                     customers and JV in
                                         platform                      Asia Pacific agreed
                                                                        with First Eastern

                                                         Dec 2009: Monitise
                                                         breaks 1.5 million
                                                          customer barrier




                                                                                                                           39
Financial Results: Summary Cashflow


                                                Year ended

                                       30-Jun                30-Jun
                                        2010                  2009

                                        £'m                   £'m

        Opening cash balance            10.1                  9.7

        Cash utilised in operations    (13.9)                (11.4)

        Fixed asset purchases          (1.1)                 (0.3)

        Cash from fundraising           17.9                  11.5

        Other movements                 0.2                   0.6

        Increase in cash in the year    3.1                   0.4

        Closing cash balance            13.2                  10.1


                                                                      40
 Leadership Team
Executive Team                                                  Remove detail

 Alastair Lukies     CEO           • Co-founder of Monitise; co-founder of Epolitix.com (portal for
                                     Westminster, Whitehall and devolved institutions)
 John Brougham       CFO           • Formerly FD of BT Transformation and BT Global Services

 Lee Cameron         CCO            • Formerly General Counsel of Morse PLC

 Tom Spurgeon        Co Sec         • Formerly FD of Morse UK

Non-Executive Directors

 Duncan McIntyre    NED             • Formerly CEO of Morse plc
 David Dey          NED             • Founder of Energis, formerly BT PLC board member
 Colin Tucker       NED             • Formerly Deputy Chair Hutchison 3G & Technical Director
                                      Orange
 Peter Radcliffe    NED             • Formerly MD First Data Asia Pacific
 Elizabeth Buse     NED             • Group Executive, international, for Visa Inc
 Jan Verplancke     NED             • CIO of Standard Chartered Bank

   Other Advisors : Lord Mervyn Davies, Lord Digby Jones, Christopher Rodrigues (ex President
            Visa International), Andrew Harrison (UK CEO The Carphone Warehouse )

                                                                                                      41
Monitise: Investor Centre

                         •   Share price                22p (23 Aug 10)
                         •   Market                     AIM
                         •   Ticker                     MONI.L
                         •   Market cap.                £151m (23 Aug 10)
                         •   Ord. shares in issue       692,727,757 (23 Aug 10)

                                                                              Profile of major Shareholders (% held)*
                 30000                              30


                 25000                              25
                                                                                                                 14%


                 20000                              20                                                                    5%
Volume (000's)




                                                                                                                           6%
                 15000                              15   Price (p)
                                                                                         55%                               6%

                 10000                              10                                                                    7%

                                                                                                                     7%
                  5000                              5
                                                                      Visa 14.4%                3i Group 4.6%                   UBS Global 6.0%
                                                                      Standard Chartered 5.5%   First Eastern 6.8%              Norges Bank 6.7%
                                                                      Other 56%
                     0                              0
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                 M 09




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                 Au 9




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                         0




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                                                                     Sub 3% holdings reflect increased base of institutional shareholders
                    ar




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                   ay




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                   Ju
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                                                                     following recent placing (Standard Life, Fidelity, Schroders etc)


                                                                     *Shareholders as at 23rd Aug 2010

                                                                                                                                                   42

								
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