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G E ONG International Limited 新锐国际 Wade Wang, CEO Amit Thakar, CFO March 2012, Beijing

G E ONG International Limited 新锐国际 Wade Wang, CEO Amit Thakar, CFO March 2012, Beijing. GEONG International An active player to capture internet growth in China . Key Facts, 31 Dec 2011. 430 Employees 4 core markets Financial service sector Telecom Automotive

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G E ONG International Limited 新锐国际 Wade Wang, CEO Amit Thakar, CFO March 2012, Beijing

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  1. GEONGInternational Limited 新锐国际 Wade Wang, CEO Amit Thakar, CFO March 2012, Beijing

  2. GEONG InternationalAn active player to capture internet growth in China Key Facts, 31 Dec 2011 • 430 Employees • 4 core markets • Financial service sector • Telecom • Automotive • Manufacturing & Consumers • 3 new sectors • - Energy • Digital economy • Transportation • 1 SaaS solution – Enterprise Social Business • Social Marketing • Social Commerce • Social CXM • 200+ IaaS clients and 16 SaaS clients • 200+ IaaS solution clients • 16 SaaS Solution clients • 2 Strategic partners • IBM and Oracle • 4 Offices, 2Countries • GEONG is a leading independent internet software solutions provider and operator for large enterprises in China • Founded in August 2000, quoted on LSE AIM in June 2006 • GEONG Offerings: Smart Internet Solution • IaaS (Information as a Service) solution: GEONG/IBM and GEONG/Oracle Smart Internet Platform • SaaS (Software as a Service) solution: Social Business is operational enterprise social business solution powered by cloud computing technologies • Long-term business relationship with blue chip clients in the banking, telecom, manufacturing and automotive sectors • Long-term strategic partnerships with IBM and Oracle in Asia Pacific • IBM China: Strategic partner in IaaS business • 1 of the 5 Core Service Suppliers (‘CSP”) of IBM Business Service (‘GBS’) and IBM Global Delivery (‘GD’) • 1 of the Top 20 Independent Software Vendors (‘ISV’) of IBM Software Group (‘SWG’) • Oracle China: • Strategic partner of Oracle Fusion Middleware (‘OFM’) • Strategic partnership in the new SaaS solution • Experienced international and local management team

  3. China Internet Usage and Trends social business, mobile internet and digital economy China Internet key facts, 2011 • Social Business • Social Business will become a must-have business application in 3 years • Large enterprises are seeking the operational partners to help design, establish, perform and manage their social business • Mobile Internet • Chinese mobile internet users will exceed traditional internet users in 3 years • Mobile internet applications are shifting from consumer based applications to business based applications • Digital Experience Economy • eBusinesswill become the core competencies for traditional businesses • Continuous new online offerings to enhance user/customer online experience have become a new driving force for Chinese digital economy GEONG strategy is driven by internet’s trends and usage growth Social Business 216m SNS users by 2010, forecasted 425m SNS users by 2013 Source: Enfodesk Mobile Internet 431m mobile internet users by 2011, forecasted 600m mobile internet users by 2012 Source: Enfodesk eBusiness Rmb6trillion trading volume of B2C/B2B/C2C in 2011, YOY growth around 33%, forecasted CAGR 40% YOY growth by 2012 Source: MINISTRY OF COMMERCE PEOPLE’S REPUBLIC OF CHINA

  4. Our products and new solutions Industry Specific Solutions FSS Telecom Auto Manufacturing General Businesses • Services Portal • Customer Relationship Mgt. • Sales Force Automation • Social CXM • Dealer Management Sys. • Electronic Procurement Sys. • Employee Portal • Social Marketing • Channel Management • Employee Portal • Social Commerce • Social CRM • Sales Force Automation • Social Marketing • Social CRM • Project Management • Internet Transaction & Portal • Wealth Management • Social Marketing • Social CRM Smart Internet Solution Consulting Service Product Support Application Integration Social business operation on cloud computing Customization AMS Consulting, implementation and maintenance IaaS Solution – Smart Internet Portal SaaS Solution - Social Business Customer Portal Social Marketing • Enterprise Portal • Social Commerce • Social CXM (customer Experience Management) • B2B Portal Smarter Internet Platform with IBM/Oracle middleware

  5. IaaS revenue model and collection Revenue Stream Revenue Mix Gross Margin 1Product Smarter Internet Platform 2Services Consulting Customization 15% - 20% 20% - 25% 3AMS 70% - 60% 45% - 55% Application Management Service 100% 40% - 45% 10% - 15% 55% - 60% Accrued Income Trade receivables Collection Timeline Day 0 Day 60 - 90 1st Milestone achieved Day 400 invoices issued Day 460 collection

  6. SaaS revenue model and collection Revenue Stream Revenue Mix Gross Margin 3Performance fee Performance fee 2Annual operation fee Biz operation IT operation 80% - 90% 15% - 20% 1Subscription fee 75% - 65% 45% - 50% Subscription fee for solution 100% 50% - 60% 10% - 15% 70% - 80% Trade receivables Collection Timeline Day 0 Day 90 1st Quarterly invoice Day 150-165 Collection

  7. GEONG has a market leading position in internet software solutions in China • GEONG’s USP: • Smart Internet Platform integrates GEONG products and IBM/Oracle middleware technologies • Smart Internet Solution is Industry specific solution combines best industrial practices with technology innovations • New business model offers traditional IaaSsolution plus innovative SaaSsolution on cloud computing • Sales effectiveness significantly enhanced by the strategic partnership with IBM and Oracle in Asia Pacific GEONG will maintain its position as a leading internet software solutions provider and operator for large enterprises in China

  8. Sales Strategy – Go Deep & Broad Corporate Strategy • Go Deep • Industry: From blue chip clients to 2nd tier clients • Client: From IaaSsolution to SaaSsolution SaaSbusiness • Go Broad • Geography: From China to Asia Pacific with IBM/Oracle • Industry: From core markets to new industries with IBM/Oracle • Client: From current business units to new business units GO DEEP Internet business growth at CAGR: 50%-70% • Maximise business and profit through repeatable business from the same client • Partner with client’s internet business growth • Grow with Internet IT Capex growth Internet IT Capex at CAGR: 20%-30% IaaSbusiness GO BROAD

  9. GEONG’s future Social Marketing Social Commerce Objective: Social CXM Social CRM To become the largest enterprises’ social business solution provider utilizing cloud computing technologies in China by 2016 Mobility apps …… To aim to perform and manage social business clouds for over 1,000 large enterprises and to serve more than 200m of their users or customers • We are aiming to build the biggest enterprises’ social business network in China utilizing cloud computing technologies • Revenue grows with the client’s internet business’s growth • Gross margin will steadily increase when more clients utilize our public clouds • The cross industries’ social networking service will help our clients extend their businesses and build a higher entry barrier to market followers Cost per customer …… No. of customers

  10. Trading outlook • Healthy balance sheet: £4.1m collection in Q3, net cash balance of £6.1m • Accrued income will however remain at a high level as we hold back on issuing invoices to coincide with customer payment cycle to minimise VAT paid awaiting recovery • Current order book £14m • Confident of a satisfactory outturn for the full year

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