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The Paysafe Group’s liquidity requirements arise principally from its working capital requirements and capital expenditure. The Company’s obligations for these requirements are met by the cash generated from operations and the Company typically benefits from very low levels of indebtedness.

The Paysafe Group intends to continue to finance its working capital and capital expenditures and any future acquisitions with a combination of cash flows from operations and debt facilities. As at 30 June 2015, the Paysafe Group had current financial debt of US$20.3 million, non-current financial debt of US$97.2 million and total cash of US$798.6 million of which US$685.3 million relates to cash raised by the rights issue to fund the Skrill Acquisition, resulting in net financial funds of US$689.5 million. As at 30 June 2015, the Paysafe Group had a committed term credit facility of US$100 million and a committed revolving credit facility of US$50 million, of which as of that date US$37 million was drawn under the term facility and US$80 million was drawn under the revolving facility. The term facility is repayable in quarterly instalments of US$5 million each, and both the term and revolving facilities are repayable on maturity in July 2017. The Paysafe Group’s borrowings generally are not seasonal.

The reporting of cash and cash equivalents has been adjusted in H1 2015 to include two new line items, settlement assets and cash held as reserves which are now separately disclosed in the financial statements to provide a more transparent analysis of the Paysafe Group’s cash position. As a result, cash and cash equivalents more accurately represents the cash that is in the Paysafe Group’s bank accounts and immediately available to the business. Cash held as reserves also includes processor and card scheme deposits that were previously disclosed in prepaid expenses and deposits.

Restricted NETELLER merchant and member cash balances are the excess of funds held that the Paysafe Group is required to maintain in respect of the e-money issued to members and merchants over balances payable which are held in segregated accounts. Cash held as reserves represents the cash the Paysafe Group is required to deposit with counterparties, which would include acquiring partners and card schemes, in order to transact with these institutions. Settlement assets represent gross transaction cash at acquirers and processors which will be remitted to the Paysafe Group. There would ordinarily be a timing difference from the time that the transaction is confirmed to the remittance of these funds, the risk associated to this delay is managed via guarantees from banks and card issuers. Previously included in trade and other payables is a transient cash liability balance totalling US$35.5 million in H1 2015 (H1 2014: US$30.6 million) that relates to transactions processed via the NETBANX gateway operations and security deposits held from the Paysafe Group’s bureau merchants. This item is now disclosed in the Paysafe Group’s H1 2015 financial statements as a separate line item on the balance sheet, having previously being disclosed in the notes to the accounts; this represents gross transaction cash that has been received by the Paysafe Group but not yet forwarded to the merchant.

The Paysafe Group’s total gross cash was US$113.3 million at 30 June 2015 (US$109.0 million at 31 December 2014), excluding cash raised by the rights issue of US$685.3 million to fund the acquisition of Skrill. This included cash and cash equivalents, plus restricted merchant cash balances and restricted member cash balances (the excess of qualifying liquid assets held in respect of e-money issued to members over member balances payable). The cash and cash equivalents balance at 30 June 2015 of US$798.6 million (US$109.9 million at 31 December 2014) represents the cash of the Paysafe Group. Included in cash and cash equivalents is US$685.3 million raised by the rights issue to fund the acquisition of Skrill.

2.2 Cash flows

The following table sets out summary cash flow information of the Company for the periods indicated: Six months ended 30 June 2015 (reported on) Six months ended 30 June 2014 (reported on) (US$ million)

Net cash generated by operating activities 38.9 16.3 Net cash generated by (consumed in) investing activities (21.2) (5.7) Net cash generated by (consumed in) financing activities 647.8 (0.3)

Net increase in cash and cash equivalents 665.5 10.3

Cash and cash equivalents at the beginning of the financial period 109.9 129.3 Effect of movement in foreign exchange on cash and cash

equivalents held 23.1 0.1

Translation of foreign operations 0.1 0.1

Cash and cash equivalents at the end of the financial period 798.6 139.8

(a) Six months ended 30 June 2015 compared to six months ended 30 June 2014

Net cash generated by operating activities was US$38.9 million for H1 2015 an increase of US$22.6 million from the net cash generated by operating activities of US$16.3 million for H1 2014. The higher net cash generated by operating activities was enhanced by the integration of the highly cash-generative Meritus and GMA businesses.

Net cash consumed in investing activities was US$21.2 million for H1 2015, an increase of US$15.5 million from the net cash consumed by investing activities of US$5.7 million for H1 2014. The higher net cash consumed in investing activities was a result of the increase in acquisition costs incurred during the period relating to the acquisition of Skrill.

Net cash generated by financing activities was US$647.8 million for H1 2015, an increase of US$648.1 million from the net cash used by financing activities of US$0.3 million for H1 2014. The increase in cash generation was primarily attributable to the cash generated from the rights issue to fund the acquisition of Skrill.

2.3 Capitalisation and financial indebtedness (a) Capitalisation

The following table sets out the capitalisation and financial indebtedness of Paysafe at 30 June 2015. Save in respect of the issue of the Skrill Consideration Shares, there has been no material change in the capitalisation of Paysafe since 30 June 2015 (see Part VIII (Capitalisation and Indebtedness) of this document) and there has been no material change in Paysafe’s financial indebtedness since 30 June 2015:

As at 30 June 2015 (US$ million) Share capital 0.1 Share premium 748.2

Capital redemption reserve —

Equity reserve on share option issuance 34.4

Translation reserve (1.1)

Retained earnings 97.4

(b) Financial Indebtedness and Gross Indebtedness

The following table sets out the gross financial indebtedness of the Paysafe Group as at 30 June 2015. As at 30 June 2015 (reported on) (US$ million) Total current debt

Guaranteed —

Secured 20.3

Unguaranteed/Unsecured 5.0

25.3

Total non-current debt

Guaranteed —

Secured 97.2

Unguaranteed/Unsecured 2.1

99.3

Total gross indebtedness 124.6

The following table sets out the net financial indebtedness as at 30 June 2015;

As at 30 June 2015 (reported on) (US$ million)

Cash and cash equivalents 798.6

Restricted NETELLER cash (net) 8.4

Current bank debt (20.0)

Other current financial debt (0.3)

Current financial indebtedness (20.3)

Net current financial funds 786.7

Non-current bank debt (97.0)

Other non-current financial debt (0.2)

Non-current financial indebtedness (97.2)

Net financial funds 689.5

(c) Credit Facilities

As at 30 June 2015, the Paysafe Group’s credit facilities consisted of a US$100 million term loan facility and a US$50 million revolving loan facility, each maturing in July 2017, being the third anniversary following the US Acquisitions. The term loan facility was repayable in quarterly instalments of US$5 million with the balance due upon maturity. As at 30 June 2015, outstanding borrowings were US$80 million under the term loan facility and US$37 million under the revolving loan facility.

The Paysafe Group entered into the Credit Facilities in connection with the Skrill Acquisition. On 10 August 2015, the Paysafe Group borrowed e500,000,000 and US$85,000,000 (a revolving credit facility as yet undrawn) under the Credit Facilities. The proceeds borrowed under the Credit Facilities were used to repay the existing loan facilities described above and to partially fund the Skrill Acquisition. See paragraph 14 of Part XI (Additional Information) of this document for a description of the Credit Facilities.

2.4 Capital expenditures

The Paysafe Group’s business is not capital intensive. For the periods under review, Paysafe’s capital expenditure has ranged from 3 per cent. to 5 per cent. of its total revenue. However, the Paysafe Group continuously plans capital expenditure for the development of its business, principally in respect of (i) capitalised development costs relating to product innovation, including capitalised software and development costs and the purchase of software licences and (ii) information technology and hardware.

The following table sets out the Paysafe Group’s capital expenditures for the periods shown:

Six months ended 30 June

2015 2014

(reported on) (US$ millions)

Purchase of intangible assets 3,309,250 2,463,493 Purchase of property, plant and equipment 3,740,731 2,905,328

Total capital expenditure 7,049,981 5,368,821

The increase in purchases of intangible assets and property, plant and equipment in H1 2015 was primarily attributed to additional capitalised development costs and data processing equipment relating to the platforms included in the acquired businesses of Meritus, GMA, and FANS, which were not included in the H1 2014 results.

The Paysafe Group expects to fund future capital expenditure from its current cash and cash flows from operating activities and from financing offered from suppliers when terms are favourable.

2.5 Contractual commitments and off-balance sheet arrangements (a) Contractual commitments

The following table summarises Paysafe’s contractual obligations, commercial commitments and principal payments scheduled as at 30 June 2015:

Payments due by period (reported on) (US$ millions)

Contractual commitment Total

Less than

1 year 1-5 years

More than 5 years

Debt obligations(1) _{117.5 20.3 97.2 —}

Operating lease payments 2.5 0.9 1.2 0.4

Total 120 21.2 98.4 0.4

(1) Does not include contingent consideration of US$5 million payable to the vendors of GMA assets, and such payments are due in less than 1 year and are contingent on the occurrence of certain events.

(b) Off-balance sheet arrangements

As at 30 June 2015, the Paysafe Group had no off-balance sheet arrangements, as defined in accordance with IFRS.