Slide 1: Single Touch Systems, Inc. Company Overview
Single Touch Systems, Inc. Company Overview Company Confidential October 2008
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS • Certain statements in this presentation are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, those statements regarding Single Touch Systems Inc.’s (“Single Touch”) ability to exploit commercial opp
Slide 3: Company Overview
Company Overview Founded in 2002, Single Touch Systems (SITO.OB) is a mobile infrastructure provider whose mission is to create innovative mobile commerce solutions for carriers, brands and retailers. Using our award winning Abbreviated Dial Code (ADC) platform for multiple data distribution program
Slide 4: Investment Highlights
Investment Highlights • $25 Billion Mobile Data Industry with forecasts to grow to $44 Billion by 2011(iSuppli 2007) • Our Abbreviated Dial Code platform is a proven, effective distribution tool that accesses mobile consumers on a mass scale, downloads content and provides other mobile services • Mo
Slide 5: Management Team
Management Team • Anthony Macaluso - Founder, Chairman & CEO – Is the inventor of many of the company’s proprietary technologies. With more than 30 patents issued and pending, Tony is a technology visionary with a well honed instinct for seizing market opportunities • Richard Siber – Board Member –
Slide 6: Mobile Data Market
Mobile Data Market US Mobile Content Revenue 45 40 35 30 • US mobile content market – 2007: $25 billion 25 – 2011: projected to be $44 billion (iSuppli 2007) 20 • Carriers view data as the driver to increase ARPU (Average Revenue Per User) 15 – Data now accounts for 20% of revenue for the top 20 int
Slide 7: Featured Platform Programs
Featured Platform Programs • Abbreviated Dial Code (ADC) Platform – Mobile handset based data distribution channel with natural voice interface that can invoke SMS, MMS, application downloads, or voice programs – Scalable platform is the basis of our multiple data distribution programs • Retail Mobi
Slide 8: ADC Platform Overview and Features
ADC Platform Overview and Features • An Abbreviated Dial Code (ADC) is any phone number beginning with a '#' or '*' plus a 3 to 6 digit branded number such as #SEARS • Abbreviated Dial Codes (ADC) are being used as a handset based data distribution channel • ADC's (vanity numbers) make it easy to re
Slide 9: ADC Program Patent Pending Technology
ADC Program Patent Pending Technology Consumer Carrier Single Touch Content Partner Consumer sees Advertisement Raw Content and calls in Carrier routes call Content Management to Single Touch Call Management Consumer selects content and opts-in Program/Campaign Management Device Management Consumer
Slide 10: How the ADC Program Works
How the ADC Program Works MTV Case study • Consumer sees ad – “To download 'the Pretender' by Foo Fighters as your ringtone call #MTV, on you wireless phone” • Consumer dials # MTV (#688) • Carrier routes ‘ADC’ to Single Touch • Single Touch picks-up call and gathers information – Consumer selects a
Slide 11: ADC Marketing Program
ADC Marketing Program • AT&T’s long distance sales force is selling ADCs for Single Touch – New product for sales team to provide to their existing toll free customers • Toll free business is $14.9b (Frost & Sullivan) – Signed major clients such as Walmart, Chase, Hertz – ADC's are valuable assets l
Slide 12: ADC Codes
ADC Codes Live Programs Programs Being Provisioned Company Confidential Page 12
Slide 13: Walmart going Mobile with Single Touch
Walmart going Mobile with Single Touch We have been selected to provide mobile messaging for Walmart and are in the process of installing 2 new data facilities in order to transmit messaging for their customers. The new Single Touch Data Centers are located in Los Angeles and Chicago and are capable
Slide 14: Mobile Marketing Platform
Mobile Marketing Platform M o b ile A d S p e n d in g In billion dollars ** 14 1 3 .8 • Mobile Coupon Platform – Mobile solution to provide coupons, discounts and 12 loyalty programs at retail – Mobile coupon platform requires little change in 1 0 .3 consumer or retailer check-out behavior 10 • Lea
Slide 15: Coupon Industry Opportunity
Coupon Industry Opportunity • Paper coupon is a multi-billion dollar annual business – 300 billion coupons distributed in 2006 (NYT 2006) – Estimated 1% of coupons are redeemed (AP 2008) – Coupon fraud estimate at $500 million per year (Consumer Information Corporation - www.cents-off.com/fraud.htm)
Slide 16: Mobile/Digital Coupon Platform
Mobile/Digital Coupon Platform Single Touch mobile/digital coupon solution: • Ties coupon/discount to mobile phone number • Provides little change in retailer or customer check-out behavior • Requires no new hardware at retail that leads to easy integration • Provides promotions and results in relev
Slide 17: Coupon Data Flow
Coupon Data Flow 1. Yahoo provides Single Touch Platform interface to Consumer Product Group/Brand 2. Relevant coupon information is passed to Single Touch Campaign management system 3. POS Receives coupon SKU, Value, etc and confirms receipt 4. Single Touch Campaign manager delivers the ad to the s
Slide 18: Call to Action
Call to Action 5. Ad is resident online accessed by clicking on the ad or for example, dialing #SAVE from a mobile phone, the mobile number is then captured Enter Mobile Number Company Confidential Page 18
Slide 19: Coupon Redemption
Coupon Redemption 6. Mobile Number is entered at POS by the customer upon checkout 7. The mobile phone number is validated in real-time at POS 8. Batch information is sent to Single Touch from POS containing all purchases and then matched to coupons clipped 9. Information is parsed and Yahoo is sent
Slide 20: Nextel Mexico Data Platform
Nextel Mexico Data Platform Nextel Mexico customer initiates download of content at $1.00 • Single Touch to provide operation of content management , distribution and billing program to Nextel Mexico • Single Touch receives 70% of the gross revenue of each completed transaction • Single Touch servic
Slide 21: Nextel Mexico Data Platform
Nextel Mexico Data Platform • Nextel Mexico – 3rd largest carrier in Mexico – 2.2 million subscribers – $ 1.8b in annual revenue – Highest ARPU ($ 68) in Latin America • One of the fastest growing carriers in Mexico – Nextel Mexico demographics are more affluent Total Revenue Data Revenue Data as a
Slide 22: Mobile Machine – Content Delivery Technology
Mobile Machine – Content Delivery Technology • Web to phone content delivery • Drag-and–drop interface: taking the headache out of mobile content delivery • Simply enter mobile number to download • Custom text message can be added • Send-to-friend – very viral • Presently deployed with Covergirl and
Slide 23: Campaign Management
Campaign Management • Manage campaigns on ADC, SMS, WAP and Web • Flexible, real-time media measurement • Create campaigns, simple to complex interactions • Subscriber profiling and personalized messaging • Collects rich, actionable user data for analysis & • Manufacturer, retailer can monitor campa
Slide 24: Patent Position
Patent Position • Twenty two patent applications filed beginning in late 2002 including: – Over-the-Air Provisioning of Mobile Device Settings – Advertising on Mobile Devices – Downloading Data to a Mobile Device – Transferring Mobile Device Data – Searching For Mobile Content – Buying Advisor – Rew
Slide 25: Investment Opportunities
Investment Opportunities Features Example $2.5M to $10M Min/Max capital round at $2.50 PIPE per share. Detailed term sheet available upon request. Shares outstanding – 59,505,540 Shares Outstanding Shares outstanding (fully diluted) - 105,793,498 All investors in PIPE receive 50% warrant Warrants co
Slide 26: Use of Proceeds
Use of Proceeds Use of Proceeds Minimum Offering Maximum Offering Capital Expenditures $1,000,000 $2,000,000 Human Resources $100,000 $500,000 Research & Development $100,000 $500,000 Repayment of Related Party Debt $710,000 $710,000 Working Capital $290,000 $5,390,000 Total $2,200,000 $9,100,000 Co
Slide 27: STI Forecast
STI Forecast 2008 2009 2010 Total Revenue $6,203,381 $88,987,157 $213,783,687 COGS $4,401,856 $60,197,344 $151,280,507 Gross Profit $1,801,425 $28,789,813 $62,503,180 OPEX $8,844,550 $9,366,558 $18,475,434 Operating Income/EBIT ($7,043,124) $19,423,255 $44,027,746 Net Income ($8,169,213) $13,217,552
Slide 28: Growth Drivers
Growth Drivers • Continued momentum for Abbreviated Dial Code’s – Existing ADC's initiating multiple new programs – Growth in new ADC's • Pipeline holds more than 100 ADC's – AT&T Sales Team have innovative new product to provide to their existing toll free customers • Mobile Coupon launch – Expand