Investor Presentation

Investor Presentation 1

Synety Group PLC - Disclaimer These slides have been prepared by Synety Group plc ( the Company ) in accordance with the proposed placing of new ordinary shares of the Company ( the Placing ) and the admission of such shares to trading on AIM, a market operated by London Stock Exchange plc. These slides do not constitute a prospectus nor do they constitute or form part of any offer or invitation to purchase, sell, underwrite or subscribe for, or any solicitation of any such offer or invitation to purchase,sell,underwrite or subscribe for,any shares in the Company nor shall the slides or any part of them or the fact of their distribution form the basis of or be relied on in connection with any contract therefore. Offers will only be made and applications accepted on the basis of formal placing letters. 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The Executive Team Simon Cleaver Executive Chairman Simon is an entrepreneur and highly experienced director who has built, developed and sold a number of successful companies in both the private and the public arenas. He has in depth knowledge of acquiring and building companies, often under distressed circumstances. Businesses that he has built and sold include Legend Communications plc, Host Logic plc, RDP Ltd and Dalehart Ltd. Simon and Mark have worked together at Legend plc and Host Logic plc. Mark Seemann Chief Executive Mark has 14 years experience in the Internet and telecoms sectors and has been directly responsible for various technical innovations including one of the UK's first telecom web control panels and patented VoIP technology now owned by Cable & Wireless. As a shareholder and chief technical officer of Outsourcery Limited, Mark and his team were responsible for winning the Microsoft Worldwide Hosting Solutions Partner of the Year 2010. Paul Williams Chief Financial Officer Paul Williams is a Chartered Management Accountant with over 18 years experience in the technology services sector, having worked previously for IBM, ECsoft Group plc and most recently, Ciber as Group Financial Controller and Interim CFO of the International Division. Paul was involved in multiple acquisitions and start-ups, achieved Sarbanes-Oxley compliance, successfully implemented several company-wide ERP systems, controlled audit and external reporting and was instrumental in the creation of a new IT Outsourcing operation. 3

Synety - Integrated Communications Synety provides clients with a cloud-based solution which meets the demand to link CRM systems and telephony in a cost effective and reliable way. UK Cloud Software Company & Cloud Telco Calls can be controlled (initiated, recorded, forwarded, conferenced) remotely by software, browser with or without a phone Specifically designed to easily integrate with other software programs such as CRM Based in Leicester and London employing 47 staff 4

Solving a Known Problem CRM, Telephony & Recordings Brought Together Typically, Contacts, Calls & Recordings use multiple systems Historically CTI attempts to link these disparate systems Requires compatible hardware/software Expensive on-premise solution Moving CRM to Cloud can disconnect integration Challenging for smaller businesses where upfront CAPEX is an issue For many smaller & niche CRMs - there is no integrated CTI option 5

CloudCall A different approach Synety is Both Software Company & Telecoms Provider CloudCall - four elements in one Telco Hosted PBX Call Recording API Link with CRM Can operate as an overlay Works with existing phone system (inc mobile & VoIP) Cloud based Service No CAPEX or onsite servers needed Designed to be quick & easily deployed API Driven Built from ground up with API layer Any CRM platform could integrate 6

Call Centre functionality from your Existing CRM CloudCall Service A tiered service offering from simple click-to-call service, to complex call centre functionality delivered from existing integrated CRM system Features Include CRM Integration: Click-to-Call, Call Recording, Call Logs & Categorisation Full PBX Functionality: Follow-me, Hunt Groups, Detailed Call Reporting Call Centre Functionality: Screen Pops, Wall Boards, Dialler, Call Sync 7

CloudCall Screenshots 8

Income Streams Two Highly visible Income Streams Recurring Service Fees - SaaS 10-30 per user per month service fees Telecom Income All you can eat packages or pay-as-you-go Approx. 30% of group GP Additional Income One Off Income Set-Up Fees Hardware Sales Other Recurring Revenues Enhanced Support Package Add-Ons Extended Recording package Additional DDIs 9

Go to Market Sales Approach Leverage Marketing of Integrated CRM partners & their resellers Advantages for CRM partners Customer demand shows that CRM users want telephony integration Incremental revenue 15% to 20% of CloudCall SaaS fees as commission Low call costs can help sell CRM Seats 18 CRM platform Integrations in about 18 months Offer Free 14 Day Trials Ongoing conversations with numerous additional CRMs 10

The Opportunity The CRM Market Gartner predicts that the Global CRM market grow by 15.1% CAGR to $36bn by 2017 Large global brands represent 45% of the market The remaining 55% is made up of smaller niche players Not encountering competition in small/niche sectors Land grab Board sees considerable value in CRM relationships as well as End Users Competition Limited competition in the global brand CRMs New Voice Media Ltd, Interactive Intelligence Inc, Inside Sales Inc, Primarily Call Centre solutions Tend to be more expensive Source: Gartner 11

Update - Current Position All KPI s up and still accelerating New user sign up per month is accelerating ARR (Annualised Recurring Revenue) up approx. six fold in 2013 ARR up 35% in 2 months Key Performance Indicators (KPIs) 31 Dec 2012 30 June 2013 31 Dec 2013 Two Months 28 th Feb 2014 Growth No of End Users 564 1,336 2,678 3,571 +33% Av NEW Users per Month 55 128 224 447 +100% No of Licences 794 2,149 5,160 7,212 +40% Av Users Per Customer 5.8 7.9 10.1 11.6 +15% Annualised Recurring Revenue (ARR) 149,000 376,000 871,000 1,165,000 +35% Recurring Revenue Per User 22.80 24.17 24.10 24.66 +2% Please see page 26 for definition of KPIs Source: Company s own KPI analysis 12

Sales Acceleration & Dynamics Growth in addressable UK market Increased as CRM s integrate Product Improvements CloudCall Contact Centre Maturing go-to-market Strategy Winning Larger Customers CRM confidence takes time, but is building Increased Lead flow Larger Average Customer 13

Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Financial Results and KPIs to 31/12/13 Key Performance Indicators Year ended 31 December Financial 2013 000 2012 000 Revenue 547 76 Gross Profit / (Loss) 374 29 Operating (Loss) before non-recurring items (3,041) (1,326) Net (Loss) after non-recurring items and tax (3,583) (1,706) Net Cash Outflow from Operating Activities (2,224) (2,389) Cash and Cash Equivalents 2,300 2,704 Annualised Recurring Revenue (ARR) 870,587 149,000 Recurring Revenue per. User (RRPU) 24.10 22.80 Non-Financial No of Licences 5,160 794 2013 Highlights Seven-fold y-o-y revenue growth Six-fold y-o-y licence growth - In the trading update of 7 th January 2014 CloudCall licences KPI was referred to as sales this was actually orders received 68% gross margin Expenses and cash in line with City expectations. - 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Total Number of Licences 14

Use of net funds 4.5 million firm placing & 0.5m open offer UK Expansion Plans 2.75m (net of fees) Ongoing expansion of UK Sales and Marketing Increase in provisioning and Customer Services Departments Additional resource to integrate with further CRM platforms Platform Expansion - 0.5m Increase in platform resilience, capacity and territorial reach Better able to provided service for international Companies Initial Market Entry - US 0.95m Sales & marketing, office and overheads - 0.75 Platform build - 0.2m Open Offer Any funds raised in the open offer will be used as working capital 15

Use of funds (detail) Use of funds Funds raised (firm placing) 4.5m UK Globalisation US Entry Platform resilience, disaster recovery, storage upgrade Office relocation Strategic partner acquisition Marketing and channel development Increased sales team (Leicester) Telesales team Customer services Working capital Fund Raising Costs ( 0.3m) ( 0.1m) ( 0.3m) ( 0.4m) ( 0.7m) ( 0.2m) ( 0.5m) ( 0.25m) ( 0.25m) Platform build and software enhancement ( 0.5m) ( 0.2m) On-site staffing 7 heads, 12 months) Office facilities, hosting etc. ( 0.65m) ( 0.1m) 16

Why the US? Pull from existing CRM partners most of whom are US companies US home customer bases are usually far larger in size than their UK customer bases Not a cold entry Integrations & relationships already exist Already have live customers in the US Some initial marketing already agreed Larger partners require Global solution Global Companies Salesforce SSP Swiftpage (ACT! and Saleslogix) Cost effect market entry strategy US Primarily Sales Office UK CS Billing Technical Key Partner Companies Estimate of Seats in UK Estimate of Seats in US Bullhorn CRM (US) 6k 60k Salesforce.com (US) 0.3m 5m ACT! (US) 0.6m 3m Microsoft CRM (US) 0.25m 3m Sage 2000 & CRM (UK) 0.2m 1m GoldMine CRM (CA).01m 0.8m NetSuite (US) 0.08m 0.8m The estimates above are based on available market information and the reasonable estimates of Synety and its directors and are only intended to illustrate the potential market place in the US relative to the UK 17

Summary Solution to a Known Problem Tiered Product Suite with Broad Appeal Highly Visible Revenues from SaaS and Telecoms CRM Market Large and Growing Minimal Competition in Small/Niche CRM Space 55% of the market Demand / Pull from CRM Partners Excellent Traction Over First 14 Months US Expansion Broadens Addressable Market The Board has demonstrated its effective use of capital Opportunity to Capture Market Share Early 18

Timetable Investor presentations: Close book: Placing letters out: Announce: General Meeting: Admission effective and trading commences: 7 th 17 th March 19 th March 19 th March 21 st March 8 th April 9 th April 19

Appendices 20

Significant shareholders 16th January 2014 Shares % of Issued Share Capital Mark Seemann * 869,553 13.6% Mellinckrodt 2 SICAV * 614,458 9.6% Herald Investment Trust 500,000 7.8% Jason Kendall * 482,214 7.5% Commerzbank AG 398,270 6.2% Aquaglow Limited 386,700 6.0% Simon Cleaver * 298,334 4.6% Cloverleaf Holdings 251,295 3.9% Graham Ward * 206,795 3.2% Southern Fox Investments 190,500 3.0% Fidelity Worldwide Investment Managed Funds 178,177 2.8% 4,376,296 68.2% *connected parties 21

Financial Results and KPIs to 31/12/13 Consolidated Statement of Comprehensive Income For year ended 31 December Nonrecurring item (Note 6) After nonrecurring item Before nonrecurring items Group Group Group Group 2013 2013 2013 2012 Notes 000 000 000 000 Revenue 5 547-547 76 Cost of sales (173) - (173) (47) Gross profit 374-374 29 Sales & marketing expenses (648) - (648) (38) Administrative Expenses 7,8 (2,042) (710) (2,752) (424) Share Based Payments (216) - (216) (371) Total administrative expenses (2,258) (710) (2,968) (795) Research & development expenses (509) - (509) - Acquisition costs - - - (522) Operating loss before non-recurring items (3,041) (710) (3,751) (1,326) Financial income 9 10-10 10 Financial expenses 9 (1) - (1) (18) Net financing income/(expense) 9-9 (8) Loss before tax (3,032) (710) (3,742) (1,334) Taxation 10 159-159 18 Loss from continuing operations (2,873) (710) (3,583) (1,316) Loss from discontinued operation (net of income tax) - - - (390) Loss for the year attributable to owners of the parent (2,873) (710) (3,583) (1,706) Other comprehensive income Foreign exchange translation differences - - - 91 Other comprehensive income - - - 91 Total comprehensive income for the year (2,873) (710) (3,583) (1,615) Earnings / (Loss) per share ( ) Loss per share - continuing operations (0.54) (0.13) (0.67) (0.34) Loss per share - discontinued operations - - - (0.10) Basic & fully diluted loss per share 21 (0.54) (0.13) (0.67) (0.44) 22

Financial Results and KPIs to 31/12/13 Consolidated and Company Statement of Financial Position At 31 December Group Group Company Company 2013 2012 2013 2012 Notes 000 000 000 000 Non-current assets Investment in Subsidiaries 13 - - 2,311 1,574 Property, plant and equipment 11 266 256 1 - Goodwill 12 339 339 - - Other intangible assets 12 1,110 1,407 8-1,715 2,002 2,320 1,574 Current assets Inventories 15 23 13 - - Trade and other receivables 16 155 179 3,062 846 Research & development tax 95 - - - credit receivable Cash and cash equivalents 17 2,300 2,704 2,164 2,552 2,573 2,896 5,226 3,398 Total assets 4,288 4,898 7,546 4,972 Current liabilities Trade and other payables 18 (467) (270) (274) (199) (467) (270) (274) (199) Non current liabilities Deferred tax liabilities 14 (239) (303) - - Contingent consideration 6 (1,211) (501) (1,211) (501) Total liabilities (1,917) (1,074) (1,485) (700) Net assets 2,371 3,824 6,061 4,272 Equity attributable to shareholders Share capital 21 1,266 986 1,266 986 Share premium 52,288 50,654 52,288 50,654 Translation reserve - - - - Warrant reserve 33 34 33 34 Retained loss (51,216) (47,850) (47,526) (47,402) Total equity attributable to shareholders 2,371 3,824 6,061 4,272 23

Financial Results and KPIs to 31/12/13 Consolidated and Company Cashflow Statements For year ended 31 December 2013 Group Group Company Company 2013 2012 2013 2012 Notes 000 000 000 000 Cash flows from operating activities Loss for the period (3,583) (1,706) (341) (1,176) Adjustments for: Depreciation and amortisation 390 174 4 - Fair value of contingent consideration 710 - - - Foreign exchange losses/(gains) - 112-18 Loss on sale of property, plant and equipment - 72 - - Loss on discontinued operation, net of cash disposed of - (978) - - Financial income (10) (13) (10) (11) Financial expenses 1 1 - - Equity settled share-based payment expenses 216 (371) 190 (371) Taxation (159) (16) - - Operating loss before changes in working capital and provisions (2,435) (2,725) (158) (1,540) Decrease / (Increase) in trade and other receivables 24 383 (2,215) (552) Decrease / (Increase) in inventory (9) 115 - - Decrease / (Increase) in trade and other payables 196 (321) 75 (186) Cash absorbed by operations (2,224) (2,548) (2,298) (2,278) Tax (paid) - 159 - - Net cash absorbed by operating activities (2,224) (2,388) (2,298) (2,278) Cash flows from investing activities Net Interest received 9 13 10 11 Investment in subsidiaries - (75) - (75) Cash assumed on acquistion of subsidiary - 75 - - Proceeds from the sale of property, plant and equipment - - - - Acquisition of property, plant and equipment (91) (188) (13) - Development expenditure capitalised and other (12) - - - intangible assets acquired Net cash absorbed by investing activities (94) (175) (2) (64) Cash flows from financing activities Interest paid - (1) - - Net proceeds from the issue of share capital 1,914-1,914 - Net cash from financing activities 1,914 (1) 1,914 - Net (decrease)/increase in cash and cash equivalents (403) (2,565) (386) (2,342) Cash and cash equivalents at start of period 2,704 5,287 2,552 4,912 Effect of exchange rate fluctuations on cash held - (18) - (18) Cash and cash equivalents at end of period 17 2,300 2,704 2,165 2,552 24

Glossary of Key Terminology API Applications Programming Interface CTI Computer Telephony Integration CRM Customer Relationship Management CRM Seats An end user of CRM Follow-me A telephone system that can forward calls to other telephone s depending upon settings or criteria Time of date etc. Hunt Groups A telephone platform that will call groups of phones in a pre-determined order PBX Private Branch Exchange or switchboard Power Dialler A computer program that makes automated calls when an Agent is not on the phone 25

Definition of Synety s KPI No of Users Number of End Users (sometimes denoted as seats ) is defined as the actual number of individual users licenced to access the CloudCall platform. Number of Licences A licence is a customer agreement to pay monthly fees (occasionally annually) for the use of a Synety package or service. Example of licences include; CloudCall Click, Unlimited UK landlines calls package, extended call recoding (7 year option) etc. An End User may purchase multiple licences depending upon the services that they subscribe to. In the trading update of 7 th January 2014 the numbers of CloudCall software licences ordered and signed for, was referred to as sales. In future this KPIs will be referred to as orders received Average Users per Customer (AUPC) This is simply the average customer size calculated as the number of End Users divided by the number of customers. This KPI is significant as typically the larger the customer size the lower the costs associated with supporting each End user. Annualised Recurring Revenue (ARR) ARR is a forward looking number based on products sold to date. To calculate the ARR, we strip out any one-off invoices such as set-up, hardware sales or professional fees and simply take the ongoing monthly recurring licence fees customers have subscribed for and add in the projected telco income (average daily telco X working days in a an average month). This figure is then multiplied by 12 to give the expected annual recurring revenue. The Board believes that this is the clearest way of expressing the underlying annualised recurring revenue as it levels out inconsistencies that may be caused by how many working days there are in any particular month telecoms revenues that are not included in any calling package, are particularly sensitive to these fluctuations. It further removes any anomalies that may be introduced by large customers coming on-stream partway through the month which lower the ARPU since they are only billed for a partial month. Recurring Revenue per End User (per month) (RRPU) This figure is not simply the ARR divided by the number of End Users. RRPU is a backward looking number calculated by taking the actual billed revenues from subscriptions and telco (eliminating any one-off billings) and dividing by number of End Users. To date, the number Synety has circulated has been the RRPU for the previous month. Having recently reviewed the KPIs, the Board believes that simply publishing a RRPU figure based on one single preceding month has some drawbacks and could possibly be misleading because to the variation in the number of working days etc. as explained above. Therefore, to smooth out these possible fluctuations, all future RRPU numbers published will be calculated on the average RRPU of the preceding three months. 26

Non-Executive Directors Alan Graham Ward Non-Executive Director Graham has a background in the telecoms and software industry. He has corporate experience as a finance director of a mobile phone manufacturer, Motorola Europe and has been a managing director of mobile phone service providers, Motorola Telco, Vodafone Corporate and Genesis. He has many years of experience of working with early stage software companies as a non-executive director, helping develop those companies and raising funds. He has also worked on divestments by listed companies and on the sale of a listed company, Legend Communications plc. He is currently chairman of CMS Supatrak Limited, chairman of Dynmark International Limited and a non-executive director of VQ Communications Ltd. Dr. Georg Oehm Non-Executive Director Georg is one of the founders of Mellinckrodt & Cie, Zug, Switzerland. Prior to this he was Managing Director and Partner in a financial communications boutique in Frankfurt am Main. He was also one of the founders and the first managing director of the German CFD Association e.v. Before that, Georg had worked for five years at Metallgesellschaft AG in the corporate development and M&A department, and then for a further five years on special restructuring projects. David Whelan Non-Executive Director David Whelan is the CFO of Accretive LLC a US private equity firm. David is a director of Insureon Holdings, Inc. and Chairman of Medcenter Holdings, Inc. Previously David was the CEO of the Cloverleaf Group, a privately held alternative investment group that founded Zenergy (the entity that acquired Synety in 2012). Prior to joining the Cloverleaf Group, David was vice president of corporate development with the Virgin Group in the US and the UK and founding board member of Virgin America, the U.S. low cost airline. 27