Acumulado mensual de energía de agregaciones de clientes tipo 3 y 4

% OF TOTAL SERKO ONLINE REVENUE (EXCL MOBILE REVENUE) FY15F H1FY16F

PROSPECTIVE PROSPECTIVE

Revenue from existing customers and reseller channels 98% 89%

Revenue allocated to unspecified new customers and specified new customers

who have not yet signed contracts 2% 1 1%

total 100% 100%

The lead time to implement and on-board new business can vary from a few weeks for a standard profile end customer connecting through an existing reseller partner to between three and 12 months in some cases for more complex implementations

that may be linked with broader programmes of work within larger corporate clients.

Serko Online transaction volumes through the Historical Period and the Forecast Period are depicted in Chart 4.

chart 4: Serko onLIne tranSactIon voLuMeS throuGh the hIStorIcaL PerIod and the ForecaSt PerIod

Ju N 12 Sep 12 D ec 12 M AR 13 Ju N 13 Sep 13 D ec 13 M AR 14 Ju N 14 Sep 14 D ec 14 M AR 15 Ju N 15 Sep 15 D ec 15 MAR 16 V olu M e o F b ook IN g S

There are strong seasonality factors that affect corporate travel booking trends as the above graph illustrates. December and January are the lowest months of the year for bookings due to the summer holiday period in Australasia. The timing of public and other seasonal holidays during the year can also have an influence on the trend.

The existing product portfolio will continue to be developed over the forecast period with the main new product launch being Serko Mobile which will offer access to Serko’s online booking tool and Incharge expense management along with new features and functionality from iOS and Android devices.

Serko Mobile transaction revenue is generated through an incremental booking fee or travel amendment transaction fee. Pricing structures will remain consistent over the forecast period.

b. servIces revenue

Serko routinely undertakes development and customisation work at the request of its customers. This work is contracted through a CWO (“Customer Work Order”) and is typically charged on a time and materials basis.

Services Revenue is derived from:

• Integration of Serko’s OBT with customers’ wider enterprise systems typically to achieve greater automation and efficiency across the customers’ end to end workflows and processes;

• Development of specific customer requested functionality to add value to their extended processes and workflows;

• Chargeable maintenance and support work; and

by internal capacity through the number of customer facing services and development staff, productivity levels and average charge out rates. Due to the nature of the work, customer demand is difficult to anticipate as it does not occur evenly and there may be peaks and troughs which the Company manages through its prioritisation and work allocation processes. Serko plans to expand the number of customer support and development staff by nearly 50% to 95 staff in the first half of FY15.

c. expense management revenue

Serko’s expense management product was acquired through the acquisition of Incharge in December 2013.

Revenue is derived from monthly subscription fees and ad hoc revenue from implementation, consulting, training, set up fees and consultation.

subscription revenue.

Serko plans to hire additional specialist sales and business development managers over the PFI period to drive growth in new sales. In addition, it is anticipated that new sales opportunities will be developed from Serko’s existing online/OBT customer base during the PFI period.

Annualised monthly recurring revenue is anticipated to increase from approximately A$0.7m in March 2014 to A$2.3m in September 2015.

The following chart shows the trend in Incharge expense management revenue. Historical data has been extracted from audited statutory financial statements for the periods to 30 June 2013. The data for the nine months ended 31 March 2014 has been extracted from unaudited management information.

chart 5: IncharGe revenue (aud)

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

Jun FY09 Jun FY10 Jun FY11 Jun FY12 Jun FY13 9m Mar14 FY15 H1FY15 H1FY16

FOREIGN CURRENCY

The revenue mix will increase to a higher proportion of AUD based billing reflecting the forecast growth in the Australian market. AUD derived revenue will represent around 95% of total revenues in the forecast period.

CUSTOMER BASE

Serko’s current business model will continue unchanged. Serko will seek to develop its relationships with all the key TMC resellers and with direct corporate clients as opportunities arise over the period. It is not anticipated that there will be any loss of major customers in the PFI period.

In FY14, the ten largest TMC customers of Serko Online represented 82% of total Serko Online revenue. In FY15 this percentage reduces to 68%.

Serko has access to two development grants due to expire in August 2014 and May 2015 respectively. Serko intends to seek and apply for additional grant funding during the PFI period but at the date of this Investment Statement nothing has been confirmed. The PFI only reflect the anticipated grant income from the existing arrangements.

Total Operating Expenses (excluding depreciation, amortisation and interest costs) are forecast to increase from $8.6m in FY14 to $17.7m in FY15. $6m of that increase is associated with Wages and Salaries costs. The key drivers are described in more detail on the next page.

H1FY16F

taBLe 11: totaL oPeratInG exPenSeS

NZ $000 FY14* FY15 H1 FY15 H1 FY16

  HISTORICAL PROSPECTIVE PROSPECTIVE PROSPECTIVE

Salaries and Wages 5,797 12,131 5,556 7,409

Cost of Sales 192 383 170 216

Hosting, Development and Computer Costs 329 962 304 736

Marketing and Selling 274 559 282 419

Administration and Overheads 1,988 3,640 1,912 1,943

total operating expenses 8,580 17,675 8,224 10,723

* FY14 HISTORICAL DATA IS EXTRACTED FROM UNAUDITED HISTORICAL MANAGEMENT INFORMATION. THE FY14 FINANCIAL INFORMATION HAS BEEN PROVIDED TO ADD CONTEXT TO THE PROSPECTIVE FINANCIAL INFORMATION

Wage costs and benefits have been market benchmarked in April 2014. Serko does not anticipate any significant changes in the market over the forecast period. Total Salaries and Wages costs will increase from $5.8m in FY14 to $12.1m in FY15, as highlighted by the graphs below.

Hosting, Computer and Development expenditure is forecast to increase by $0.7m to $1.0m in FY15. The forecasts anticipate continued use of third party developers in certain specific and specialised fields (for example mobile applications design) to supplement the core R&D capabilities within Serko. Hosting and computer costs are the costs of external hosted servers, software and application licensing.

Administration and Overheads are expected to increase in line with the growth in headcount and volume of business. Accommodation costs are expected to increase reflecting office expansions relating to the increase in headcount, and similarly travel costs will increase as Serko expands its presence and market reach. Administration costs also include the cost of Serko’s Corporate Governance operations including the cost of the Independent Directors, compliance related costs, IP management, insurance and capital raising costs.

chart 6: oPeratInG exPenSeS (nZ$000)

Salaries and Wages

cost of Sales Hosting, Development and computer costs Marketing and Selling Administration and overheads 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000

FY14A FY15F H1FY15F

* FY14 HISTORICAL DATA IS EXTRACTED FROM UNAUDITED HISTORICAL MANAGEMENT INFORMATION. THE FY14 FINANCIAL INFORMATION HAS BEEN PROVIDED TO ADD CONTEXT TO THE PROSPECTIVE FINANCIAL INFORMATION

chart 7: eMPLoyee coStS By key FunctIon (nZ$000)

chart 8: eMPLoyee nuMBerS By key FunctIon

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

FY09A FY10A FY11A FY12A FY13A FY14A FY15F H1 FY15F H1 FY16F FY09A FY10A FY11A FY12A FY13A FY14A FY15F H1 FY15F H1 FY16F

0 20 40 60 80 100 120 140 160 180

Serko has a significant exposure to the NZD/AUD exchange rate. Table 12 below.