POWERING GLOBAL COMMERCE - MANAGEMENT PRESENTATION - Net Element

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POWERING GLOBAL COMMERCE - MANAGEMENT PRESENTATION - Net Element
POWERING GLOBAL COMMERCE
   MANAGEMENT PRESENTATION
POWERING GLOBAL COMMERCE - MANAGEMENT PRESENTATION - Net Element
IMPORTANT NOTICES

Forward-Looking Statements

This presentation is for discussion purposes only. All prices and rates referenced herein are indicative and subject to market
conditions. The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete,
and it should not be relied upon as such. The material available in this presentation may contain forward-looking statements, which are
subject to risks, uncertainties and assumptions. In some cases, you can identify these statements by forward-looking words such as
“may”, “might”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “optimistic”, “potential”, “future” or “continue”, the
negative of these terms and other comparable terminology. Such forward-looking statements are based on current plans, estimates
and expectations and are made pursuant to the Private Securities Litigation Reform Act of 1995. Forward-looking statements are
based on known and unknown risks, assumptions, uncertainties and other factors. The Company’s actual results, performance and
achievements may differ materially from any future results, performance, or achievements expressed or implied by such forward-
looking statements. We do not assume responsibility for the accuracy or completeness of any forward-looking statement and you
should not rely on forward-looking statements as predictions of future events. We are under no duty to update any of these forward-
looking statements to conform them to actual results or revised expectations.

This presentation contains certain non-GAAP financial measures determined by methods other than in accordance with generally
accepted accounting principles. Such non-GAAP financial measures include: general and administrative expense before non-cash
compensation expense. Management uses these non-GAAP financial measures to assess the performance of Net Element’s core
business. Net Element believes that these non-GAAP financial measures provide meaningful additional information about Net Element
to assist investors in evaluating Net Element’s operating results. These non-GAAP financial measures should not be considered as a
substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of
other companies.

 www.netelement.com                                                                                                                                      2
POWERING GLOBAL COMMERCE - MANAGEMENT PRESENTATION - Net Element
!
      OVERVIEW & STRATEGY
CHARTERING COURSE TOWARDS OMNI-CHANNEL PAYMENTS

                                                  3
POWERING GLOBAL COMMERCE - MANAGEMENT PRESENTATION - Net Element
EMERGING AS A LEADER IN TRANSACTIONAL SERVICES

  ‣    Net Element, Inc. (NASDAQ: NETE) (“Net Element”) is a global technology company specializing in mobile payments and value-
       added transacFonal services.
           • Headquarters in Miami, Florida (United States)
           • Market cap. of $36.17 million as of Apr. 18th, 2016
           • 2015A revenues of $40.2 million
           • Organic growth run-rate of $55.5 million as of Dec. 31st, 2015
           • 152 employees (44 IT engineers)

  ‣    Net Element provides numerous electronic payment soluFons through their numerous operaFng companies.

     UNIFIED                PAYONLINE                  DIGITAL                   APTITO                RESTOACTIVE                 NET LAB            SALESCENTRAL
    PAYMENTS            Next-generation online        PROVIDER               Provides merchants a         Adds interactive          Research and       Cloud-based solution
Provides comprehensive    payments platform       Mobile commerce and             feature-rich,          experience on to    development center. Net   provides agents and
   turnkey, payment       allows access to the     direct carrier billing   innovative and socially     existing legacy POS   Element’s Net Lab has a merchants an integrated
processing solutions to safest and most reliable platform allows content       driven, all-in-one      system and increases      dedicated and cost       toolkit to more
  SME merchants and         online shopping      providers to bill mobile       digital software      bottom line with more       effective team of    effectively manage a
  independent agent         experience while         users, including           solution for the         sales, faster table engineers and developers     variety of sales,
  networks across the   increasing revenue and     messaging, incentive       hospitality industry      turnover, improved    located in Ekaterinburg  operations, reporting
     United States         minimizing risk for        programs and                                    menu management and       and Moscow, Russia        and accounting
                               merchants                couponing                                       reduced labor costs                                  functions

 www.netelement.com                                                                                                                                                       4
POWERING GLOBAL COMMERCE - MANAGEMENT PRESENTATION - Net Element
EMERGING AS A LEADER IN TRANSACTIONAL SERVICES

                   WHO IS NET ELEMENT?                                            OUR MISSION AND VISION
•   Leader in mobile payments, transacconal and value-added      •   Our mission is to power global commerce and allow our
    services                                                         clients to conduct business globally. We believe that
•   Growth drivers: mobile commerce and value-added                  understanding the consumer behavior and the needs of our
    transacconal services (“VAS”)                                    merchants is the most effeccve and, ulcmately, the most
•   Key differencators: Our scalable operaconal infrastructure,       profitable means to accomplish our mission
    commerce expercse, scalable mobile payments plagorm,         •   Our vision is to set the standard for omni-channel payments
    world-class cloud infrastructure and emerging market             acceptance and value-added service offerings with focus on
    presence                                                         creacon of unified global transaccon acceptance ecosystem

             WE HAVE A FOCUSED STRATEGY                                     OUR OPPORTUNITY IS SIGNIFICANT

•   Concnued investment in our core technology and new           •   Market is large and moving to where we have strength
    product offerings                                             •   Global customer expansion and strong growth in payment
•   Allocate resources and expercse to grow in commerce and          acceptance
    payments segments                                            •   Ride the wave of the growing mobile payments market:
•   Strategic acquisicons which complement our core strategy         According to Stacsta report, the worldwide mobile payment
•   Focus on concnued improvement and operacon excellence            volume in 2015 was 450 billion U.S. dollars and is expected to
                                                                     surpass 1 trillion U.S. dollars in 2019

www.netelement.com                                                                                                                    5
POWERING GLOBAL COMMERCE - MANAGEMENT PRESENTATION - Net Element
POWERING GLOBAL COMMERCE

 $1.8B total bankcard volume processed in 2015
                                                                   $1B
 161M total transactions processed in 2015                        Bankcard
                                                                   volume            51.5M
                                                                    U.S.              Bankcard
 71M total bankcard transactions processed in 2015                                  transactions
                                                                                        U.S.
                                                       ₽24.5B                   "              19.5M
 90M mobile transactions processed in 2015             Bankcard
                                                                                        |       Bankcard
                                                        volume                                transactions
                                                          CIS                       #           emerging
 14M+ total active customers in emerging markets                                        90M
                                                                    3M+
                                                                    Mobile             Mobile
                                                                                    transactions
 11M+ online payments acceptance clients in emerging              subscribers
                                                                                        CIS
                                                                      CIS

 3M+ active mobile payment users in CIS

www.netelement.com                                                                                       6
POWERING GLOBAL COMMERCE - MANAGEMENT PRESENTATION - Net Element
PROVEN MANAGEMENT TEAM

    Management Team                                                                                                 Team Experience

                    Oleg                                 Andrey                            Konstantin
                    Firer                                Krotov                            Zaripov
                    Chief Executive                      Chief Technology                  CEO
                    Officer                              Officer                           Net Element Russia

                    Steven                               Dmitrijus                         Mikhail
                    Wolberg                              Apockinas                         Shabanov
                    Chief Legal                          Chief Operating                   CEO
                    Officer                              Officer                           Digital Provider

                    Jonatan                              Vladimir                          Marat
                    New                                  Sadovskiy                         Abasaliev
                    Chief Financial                      President Merchant                CEO
                    Officer                              Services                          PayOnline

    Board of Directors

    Kenges Rakishev                         Oleg Firer                           Drew Freeman
    Chairman of the Board                   Director                             Director
    Noted global industrialist              CEO of Net Element                   30+ years experience in payments

    William Healy                           Howard Ash                           James Caan
    Director                                Nominated Director*                  Director
    25+ years experience in payments        International value-add specialist   Accomplished actor and director

www.netelement.com                * subject to election on June 13, 2016                                                              7
POWERING GLOBAL COMMERCE - MANAGEMENT PRESENTATION - Net Element
ADDRESSING THE NEED
                    Attractive Growth Drivers

INCREASED                             GROWING
   USE OF                                 NEED
 CASHLESS                                  FOR
 PAYMENTS                               SECURITY

            DIGITALIZATION                         INCREASING
                  AND                                PROSPERITY IN
              GLOBALIZATION                        EMERGING MARKETS

                                                                8
POWERING GLOBAL COMMERCE - MANAGEMENT PRESENTATION - Net Element
FOCUS ON GROWING MARKETS

     Large, relatively untapped markets to become a significant focus of Net Element’s strategy, resulting in impressive growth year
                                over year and an achievement of leadership positions in selected markets

          UNDERSERVED,                             ATTRACTIVE MERCHANT                                      STRONG,
             HIGHLY                                 PORTFOLIO DYNAMICS                                      GROWING
        ATTRACTIVE MARKET                       LEAD TO HIGHER PROFITABILITY                               FOOTPRINT

 •     Less mature than the U.S. market in         •   Higher margin per merchant                •   According to Morgan Stanley
       tradiconal payments acceptance              •   More profitable mobile and                     report, mobile payments can
 •     More advanced than the U.S.                     alternacve payments product                   expand the global revenue pie from
       market in alternacve payments and               offerings                                      $175 billion to $250 billion,
       mobile payments                                 -   Premium SMS, WAP-click, in-app            including $30 billion in emerging
 •     Fewer payment processors have                       purchases, mobile wallets, P2P            markets
       successfully entered and succeeded                  transfers                             •   Enormous inical successful and
       in the market                               •   Significantly lower ajricon                    concnued growth opportunity
 •     Net Element has already achieved            •   Payments-as-a-service offering             •   The Company is focused on
       leadership posicons in selected                 without the need to switch                    allocacng addiconal ajencon to
       emerging markets                                acquiring bank relaconships                   the selected emerging markets

www.netelement.com                                                                                                                        9
POWERING GLOBAL COMMERCE - MANAGEMENT PRESENTATION - Net Element
FOCUS ON 3 AREAS | OMNI-CHANNEL PROCESSING

                                                    ‣    Mobile Payments
    MOBILE PAYMENTS                                     • Carrier integrated solucons
                          POINT OF SALE SOLUTIONS
 DIRECT CARRIER BILLING                                 • Premium SMS
                                                        • In-app purchases
                                                        • WAP/Internet click payments
              TRINITY
               PLATFORM                             ‣    Point of Sale SoluFons
                                                        • Cloud-based mPOS solucons
                                                        • iOS-based self-service kiosks
                                                        • Digital menus
                PAYMENT ACCEPTANCE
             VALUE-ADDED TRANSACTIONS               ‣    Payment Acceptance
                                                        • Proprietary plagorm
                                                        • Retail POS acceptance
                                                        • Card not present acceptance
                                                        • Mobile payment acceptance
                                                        • Mulcple payment methods
                                                        • PCI DSS Level 1, SSL 3.1 security

www.netelement.com                                                                            10
ONE-STOP OMNI-CHANNEL PROCESSING SOLUTION

                                                                ‣    Complete SoluFon
           MERCHANT                        CONSUMER                 • Combines e-commerce, retail POS,
                                                                       comprehensive back-office tools,
                                                                       mPOS, credit scoring and customer
                                                                       interaccon in one powerful technology

 $           2            %               ♂           "         ‣    IntegraFon
                                                                    • APIs and connectors allow integracon
Merchant    Payment      Risk        Consumer           Card
                                                                       and customizacon. Our tools allow for
Account     Gateway   Compliance      Account         Issuing          easy integracon and our SDK toolkit for
                                                                       building nacve apps for our omni-
    w #     ' ( ) * " + ○ - . / 0                                      channel plagorm
             OMNI-CHANNEL PROCESSING                            ‣    Enabling Global Commerce
                                      1   1 Integration API         • Our payment infrastructure and

  100+        PAYMENT
              SOLUTIONS   1   WITH
                                      1
                                      1
                                      1
                                          1 Back Office
                                          1 Settlement
                                          1 Dedicated Team
                                                                       services are globally oriented, but
                                                                       adapted fro each country’s unique
                                                                       requirements and regulacons

www.netelement.com                                                                                          11
INTERNATIONAL REACH

                                                                              RUSSIA

                                                      EU
                   CANADA                                         KAZAKHSTAN
                                               UK

                                                                  KYRGYZSTAN
                                      UNITED        AZERBAIJAN   TAJIKISTAN
                                      STATES                                      ASIA-PACIFIC
                                                           GCC

                                                                              Target Emerging Market Strategy
   North America Market Strategy
                                                                              •    Emerging markets
   •   Expanding distribucon
                                                                              •    Expanding distribucon
   •   New products and services
                                                                              •    JV/Acquisicons
   •   Focus on value-aded offerings
                                                                              •    New products and services
   •   Technology leverage
                                                                              •    Market penetracon
   •   Geographic expansion
                                                                              •    Operacng leverage

www.netelement.com                                                                                              12
FOCUS ON GROWING MARKETS

                                                                      North America
                                                                      Processed 51.2 million bankcard transacFons in 2015
                                                                      (45% year-over-year growth in transacFons)
                                                                      •     Over 10,000 SMB merchants
CANADA                                                                •     Processed over $1 billion transaccons in 2015
                                                                      •     Avg. annual revenue $1,800 per merchant
                         UNITED
                                                                      •     Average upfront Cost per Acquisicon $228
                         STATES                                       •     Increased revenue per merchant for value added services
                                                                            $240 per annum

                        Features: Apple Pay; Android Pay; NFC enabled; mobile card readers; secure & reliable; 24/7 service
         Value-add services: shopping cart; rewards and loyalty programs; back office tools; inventory management; credit scoring; analytics

                                                            Partners include top brands

www.netelement.com                                                                                                                             13
GROWTH DYNAMICS | CIS and RUSSIA (MOBILE PAYMENTS)

                                                                  CIS and Russian FederaFon
                                                                  Processed 90 million mobile transacFons in 2015
                                     RUSSIA
                                                                  (105% year-over-year growth in transacFons)
                                                                  •       Over 3 million recurring mobile payments users
                       KAZAKHSTAN
                                                                  •       Over 100 content providers use our services
                       KYRGYZSTAN                                 •       Ranked as #1 SMS content provider in Russia
 AZERBAIJAN          TAJIKISTAN
                                                                  •       Average subscripcon annual billings ~$12 per user
                                                                  •       Mobile payment users increased by 300% year-over-year

              Features: one-click payments; premium SMS; direct operator billing; WAP automated phone; web billing; in-app billing
           Value-add services: content management platform; SMS gateway; API integration; short code number procurement; analytics

                                                         Partners include top brands

                                                                      S

www.netelement.com                                                                                                                   14
GROWTH DYNAMICS | EMERGING MARKETS (ONLINE PAYMENTS)

                                                                           Emerging Markets
                                                                           Processed 19.5 million mobile transacFons in 2015
                                            RUSSIA
                                                                           (36% year-over-year growth in transacFons)
       EU                                                                  •     Over 11 million online payments users
UK                            KAZAKHSTAN
                                                                           •     Over 3,000 merchants in CIS, EU and Asia
                              KYRGYZSTAN                                   •     Ranked as #1 IPSP in Russia with 30% market share
     AZERBAIJAN            TAJIKISTAN           ASIA-PACIFIC               •     According to Forbes, 20% of leading online merchants in
            GCC                                                                  Russia are clients of PayOnline
                                                                           •     Approximately 40% of revenue is EUR / USD

                        Features: e-commerce gateway; e-wallet; mobile in-app payments SDK; PCI DSS level 1 security; P2P transfers
            Value-add services: shopping cart; rewards and loyalty; GDS’ merchant plug-in; fraud monitoring; back office tools; BIN and IP scrubbing

                                                                 Partners include top brands

www.netelement.com                                                                                                                                     15
GROWING PORTFOLIO OF INTERNATIONAL CLIENTS

   According to Forbes, 20% of leading e-commerce merchants in CIS use Net Element’s PayOnline platform to accept payment
                                            transactions in Russia, Europe and Asia

www.netelement.com                                                                                                          16
FOCUS ON BIG DATA

                                                                      Unified Payments Insights module is a merchant’s business analytics
                                                                      dashboard that gives our clients a 360-degree view of their business
             Increased        AUTO
             value            PILOT                                                            Reputation
                                                                                               management
                           MERCHANT
                            ACTION
                                                                      Business
                                                                                                                         Customers
                                                                      performance                        And more…
                         RECOMMENDATION
                                                                      Revenue analysis                                   Acquisition
                                                                      Business monitoring                                Engagement
                                                                      Performance alerts                                 Retention
                         INTERPRETATION

                          VISUALIZATION                               Support &                                          Competitor
                                                                      Community                                          monitoring
                                                                      Unified experts                                    Benchmarking
                                                                      Unified training         Social media              Competitor alerts
                            RAW DATA
                                                                      Real-time support        management                Customer feedback

Unified Payments Insights enables merchants to compare current
revenue, online reputation, and social media activity to their past
        performance and similar businesses in their area

www.netelement.com                                                                                                                      17
SALES AND MARKETING STRATEGY

                                               ESTABLISHED GO TO MARKET STRATEGY

                         •   Internal sales force focuses on target verccals and value-added services                  • Established sales
                         •   Based on exiscng company locacons, Net Element achieves a internaconal footprint            force and market
        INTERNAL         •   Newly designed performance-based incencve scheme drives overall revenue growth              experUse
1      SALES FORCE       •   Cross and up-selling is fueled across business lines via personal targets and incencves
                         •   Internal training roucnes will enhance sales and service capabilices                      • MoUvated team
                         •   Internaconal expansion through exiscng customer relacons                                    leaders

                                                                                                                       • Access to proprietary
                         •   Internaconal expansion through partnerships, joint ventures and licensing models
                                                                                                                         commission plaWorm
                         •   Regional expansion with access to domescc sales organizacons
         EXTERNAL        •   Local manpower & knowledge drives insights and lead generacon                             • Contracts to selected
2       PARTNERS &       •   Partner seleccon based on familiarity with target verccals to ensure fast cme-to-market     partners & distributors
       DISTRIBUTORS      •   External partners are compensated on a commission-only basis                                in North America,
                         •   Promoconal programs are in place to support, ajract and retain external sales force         Eastern EU, CIS and
                                                                                                                         Asia

                                                         STRATEGY PROOF POINTS
                                                   •    Internaconal expansion of PayOnline
                                                   •    Internaconal roll-out of Apcto POS
                                                   •    Joint venture in Gulf Cooperacon (GCC) region
    www.netelement.com                                                                                                                             18
GROWTH STRATEGY

  Net Element approaches payments from a broader, holistic, global view of commerce. Our objective is to become a leader in mobile payments
   and value-added transactional services in emerging global markets. Pay anywhere using mobile, online or traditional card present methods.

                                                                                                                   Segment leadership
                                                                                                                   • YOY Growth
                                                                                                                   • Focus on profitability
                                                                                                                   • Focus on sustained
                                                               Strong partnership        Growth Mode
                                                                                                                     growth
                                                                                         • Addiconal products
$80                                                            development
                                      Infrastructure           • Addiconal products      • Growth stabilizacon
                                      stabilizaFon             • Addiconal geographies   • Geography expansion
              Starts with single                                                         • Strategic Acquisicons
$60           piece of a business
                                      • Addiconal products     • Growth financing
              • Single product        • Technology focus       • New capabilices
              • Single country        • Addiconal geography    • Strategic Acquisicon
$40              Single markecng         exploracon
              • Non-core business     • Restructuring
                 divescture           • Markecng expansion
$20

$0
                      2013                    2014                     2015                      2016                       2017

www.netelement.com                                                                                                                           19
INNOVATION LEADERSHIP | BEST IN CLASS R&D

Team                                                    Technology Stack
• Team managed by United Stats based CTO
                                                                          ASP .NET,                    J2EE,             Java,        SOAP, XML,       J2ME,
• 44 staff engineers allocated in the following teams:    Language &       ADO NET
                                                                                        C, C++
                                                                                                   Sprint, Struts,       PHP             Web         Objeccve C,
                                                         Tools           VB .NET, C#
                                                                                        VCC++
                                                                                                    Swings, Flex          JSP          Services,     Windows CE
   - programming coders                                                                                                                  UDDI

   - testers / QA                                        Web/Application       WebSphere     Web Logic          JBoss            TomCat      MS BizTalk,
                                                         Servers                                                                             SharePoint
   - iOS developers
   - Android developers                                                                                              Blackberry        Windows
                                                         Mobile Platforms              Apple iOS      Android
                                                                                                                        JDE            Mobile
   - innovacon engineers
   - sys administrators
                                                         Cloud                                Amazon       Google Apps            Azure
   - GUI developers
• Fall-safe redundancy infrastructure                                                   MS-SQL                                         SQL Lite
                                                         Databases                       DB2
                                                                                                      Oracle            My-SQL
                                                                                                                                      Core Data
• Source code safe
• Approximately four cmes lower development cost                                 Vertex V,
                                                                                             Telium 1&2         PAX,             NCR, IBM
                                                         POS Platforms          MX, EVO,                      Banksys                             Micros
    than a comparable team in the U.S.                                          HFC, HSDK
                                                                                               Unicapt
                                                                                                              BlueSDK
                                                                                                                                 Sure POS

                                                                            UPOS,        JPOS,         EMV,
                                                         Standards &                                                 PCI-PADSS,                       Visa ADVT,
   Simplifying technology needs, to grow and success     Protocols
                                                                            OPOS,
                                                                           JavaPOS
                                                                                       ISO 8583,
                                                                                        AS2830
                                                                                                      APACS,
                                                                                                       NFC             ARTS
                                                                                                                                       Visa 1-2
                                                                                                                                                       MC-TIPS

www.netelement.com                                                                                                                                                 20
3
            PRODUCTS & SERVICES
SUITE OF PRODUCTS & SERVICES THAT MAKE US STAND ABOVE THE REST

                                                                 21
SUCCESS IS IN OUR HANDS

         INNOVATIVE SOLUTIONS. All-in-one, payment
         solution that supports a whole range of applications
 3       through a single robust platform, allowing global on-
         boarding and support for multiple payment methods.

         DISRUPTIVE PRODUCT OFFERINGS. Disruptive                              4           5
         product offerings is innovation that helps create new
 4       market and value for merchants and the payments
                                                                          DISRUPTIVE
                                                                          PRODUCT
                                                                                       AGGRESSIVE
                                                                                       SALES
         ecosystem and disrupts an existing market.                       OFFERINGS    STRATEGY
                                                                                                      6
         AGGRESSIVE SALES STRATEGY. Through proven                                                  EYE ON
         aggressive sales strategy we are able to put maximum                                       EMERGING
 5       money to work to achieve quick results through                                             MARKETS
         aggressive and innovative sales incentives.
                                                                     3                                  7
         EYE ON EMERGING MARKETS. The spread of                   INNOVATIVE                         FOCUS ON
         mobile technology in emerging markets is a driving       SOLUTIONS                          TECHNOLOGY
 6       catalyst behind payments. Net Element is strategically
         positioned to take advantage of this global trend.

         FOCUS ON TECHNOLOGY. Focus on payment-as-a-
         service model enables us to continuously develop
  7      innovative technologies and look for opportunities to
         incubate or acquire innovative technologies.

www.netelement.com                                                                                                22
OMNI-CHANNEL PAYMENTS FROM START TO FINISH

                                                                         Channels

         COMPLETE SOLUTION
Combines e-commerce, offline POS,
                                        ;        i             #           w             *            +                IN-APP PURCHASES
                                                                                                                       Payment forms and ready-made
                                                In-Store      Mobile       Online    Interactive       SMS
   comprehensive back office tools,                                                                                    checkout processes can be flexibly
 mPOS, credit scoring and customer                  Touchpoints (Technology, Device and Services)                      built upon our framework, which
interaction all in one powerful PaaS                                                                                   ensures secure transactions
                         technology

                   INTEGRATION
          APIs and connectors allow     :                                                                          7   ADMINISTRATION
                                                                                                                       Our Payment Platform addresses
integration and customization. Our
                                            < Application Deployment : Portals & APIs       = Data Visualization
                                                                                                                       the challenge with a fully automated
tools allow for easy integration and                                                                                   solution that handles everything
                                                                   Processing Services
  our SDK toolkit for building native                                                                                  from administration to configuration
     apps for Net Element platform                     Device Finger                     Behavioral
                                                         Printing                         Mapping

           GLOBAL COMMERCE
    Our payment infrastructure and
                                        9                              FRAUD LAYER                                 |   BUSINESS ANALYTICS
                                                                                                                       Analytics tools put a wealth of data
  services are globally oriented, but                              PROCESSING LAYER                                    at your fingertips. Smooth, seamless
  adapted to each country's unique                                                                                     visibility across all types of
                       requirements                                    Data Collection                                 commerce
                                                Lightweight       Embedded             Device           Data
                                                 Messaging      Agents/Adapters      Integration      Analytics

    www.netelement.com                                                                                                                               23
OMNI-CHANNEL SHOPPING

  Omni-channel shoppers spend between 50-300% more than single shoppers. Consumers will reward a connected journey, one
                                  that is seamless regardless of where and how they pay

           MOBILE                                DESKTOP/ONLINE                                   IN-STORE
   Search for items on mobile                  Digital cart is synched with                Pick up the item and use
   device and reserve chosen                     the store database and                  smartphone to find a coupon
     item at nearest store                             online profile                    which is applied at checkout

www.netelement.com                                                                                                        24
THE FUTURE OF COMMERCE IS UNIFIED

    To succeed, retailers must start from the ground up with a single commerce platform supporting all customer touch points
  and channels. This eliminates integration issues and supports real-time visibility, allowing the organization to work together for a
                                       unified view of the customer, inventory, fulfillment, etc.

     SINGLE CHANEL                       MULTI CHANEL                       OMNI CHANEL                     UNIFIED COMMERCE

          Legacy                              Reality                          Aspiration                           Nirvana

www.netelement.com                                                                                                                       25
STRONG PRESENCE THROUGHOUT VALUE CHAIN

                                                                         SalesCentral

         100+ payment   50 countries   300+ payment       Omni-channel   Secure
   "     methods        served         providers      >   platform       PCI compliance

www.netelement.com                                                                        26
MOBILE COMMERCE
                        JOIN THE MOBILE REVOLUTION
                        We offer targeted billing solutions via Premium SMS, Direct Operator Billing, WAP automated
                        phone, and online via credit card. All in one place. Leverage our Direct Operator connections to
                        multiple countries. Target millions of mobile and web users around the world with Digital
                        Provider’s global mobile billing solutions.
            S

                              @                          ?                           4                           !                          7
                      MOBILE BILLING                 MOBILE                      MOBILE                      SECURE                 24/7 SERVICE
                        We provide online           MESSAGING                   CAMPAIGNS                   COMMERCE                 Great Service, great
                        billing and precise        Use our ready-made         Mobile marketing. Our       Simplifying security.   support. Our operation
                      mobile billing solutions    solutions or your own       mobile campaign tools      End-to-end encryption    is the right size for your
                            for use in m-        applications for quizzes,   allow for the delivery of     of cardholder data       operation. Unlimited
                       commerce. One-click         SMS Bulk messaging            scalable mobile          upon swipe. Tamper          access to a robust
   Available on the
! Mobile Device       payments, SMS billing,
                      WAP Billing, and other
                                                  and more. Messaging
                                                 powered by our unique
                                                                              solutions. Deliver your
                                                                             campaigns with Mobile
                                                                                                           resistant hardware
                                                                                                            ensuring reader
                                                                                                                                   reporting and support

                         mobile payment                  platform                   Marketing                    integrity
                               options
                                                                                                                                                      27
MOBILE PAYMENTS
Future is Mobile
Smart phones are widely expected to have a
significant impact on the electronic payment
industry because they fill an immediate and
strong need to move everyday transactions
from cumbersome cash to cards and
other forms of electronic payments

                                                          MOBILE POS
                                               Unified Payments mobile POS is the easiest and
                                               cheapest way for merchants to start accepting
                                                    payments through their smartphone

                                                                                                28
ALL-IN-ONE DIGITAL POS SOLUTIONS

                                        RESTAURANT POS
                                         SYSTEM FOR THE
                                             DIGITAL AGE

                                          @                        ?                         4
                                     VISUAL POS                 MOBILE               DIGITAL MENUS
                                     Ingredient of the         ORDERING               Bring your menus to
                                   future. Aptito’s Apple    Ordering on the go.     life. Digital menus are
                                      iPad-based POS        Allow your customers      deployed at the POS
                                     solution includes      to order directly from       and available for
                                   everything that your     their mobile devices,    download on personal
                                     business needs to       tablet and the web.       tablets to provide a
                                       streamline its       Works seamless with      self-help solution that
                                     management and             Aptito mPOS                 drives sales
                                         operations                                                       29
ALL-IN-INE DIGITAL POS SOLUTIONS

                                    FEATURE-PACKED
                                       SOLUTION FOR
                                   RETAIL BUSINESSES

                                          @                            A                        |
                                      INVENTORY               OFFLINE MODE                  BUSINESS
                                     MANAGMENT                Always On. The need           ANALYTICS
                                     Manage Inventory.         for uptime in a retail   Aptito Retail POS allows
                                      Allows retailers to         environment is         retailers to anticipate
                                   manage their inventory    paramount and as such        customer needs by
                                   quickly and accurately     our local server allows     tracking purchasing
                                   from anywhere. Create      merchants to remain       habits with customized
                                      different products        online, even if the       solutions available
                                    variations with simple   Internet connection to         through Unified
                                           templates             the cloud is lost              Insights        30
TRANSFORMING POS TO POINT OF INTERACTION

                                                                          SEAMLESS
                                                                         ADD-ON TO
                                                                       EXISTING POS

                                                       MOBILE               STAND ALONE                  MPOS FOR
                                                       MENU                    KIOSK                     SERVERS
                                                  Enhance the customer      Faster table turnover     Servers can manage
                                                   experience and make       during peak hours.         more tables and
                                                 lasting impression with     Fewer mistakes &        provide a higher level
                                                  our fully customizable   reduced strain on staff   of customer service, a
                              Available on the        digital menus        during busy peak hours         true win-win
                           ! Existing POS
                                                                                                                          31
GLOBAL ONLINE PAYMENT SOLUTION
                                              Enabling Global Commerce

        ONE-STOP SOLUTIONS                                                 HOSTED CHECKOUT
          Unified back-office; fraud                                       Hosted, customizable checkout pag
   management and settlement, e-                                           es that securely collect sensitive
  commerce and mobile in-app SDK                                           billing information. Integrate with a
     available for single integration                                      broad range of shopping carts

     THE GLOBAL COMMERCE                                                   RECURRING BILLING
  Over 100 payment methods in 50                                           Support recurring, subscription and
  countries available for true global                                      installment payments. Consolidate
  commerce. Accept traditional and                                         one-time and recurring payment
       alternative payment options                                         processing on a single platform

                          SECURE                                           24/7 SERVICE
 Set customized risk preferences to                                        Our operation is the right size for
      control which transactions are                                       your operation. Unlimited access to
automatically approved or declined                                         a robust reporting and support
with powerful fraud mitigation tools                   PCI-DSS compliant
                                                       LEVEL 1

                                                                                                            32
THIRD-PARTY E-COMMERCE INTEGRATIONS

 The world's best commerce portfolios are never limited to just one platform. Most enterprise customers have unique requirements when it
                   comes to integrating systems. PayOnline makes it easy to connect to a wide range of third-party systems.

           ENABLING SALES INSIDE APPLICATIONS. PayOnline SDK will
           simplify your approach to mobile payments. Your consumers can
 -         seamlessly and securely make their purchases right from your
           website or a mobile application
                                                                                                                          6
           IMPLEMENTATION WITH EASE. PayOnline SDK is engineered
           to connect your apps and web to the new payment solution in the
 :         fastest and easiest way possible. With just a few lines of code, you
           are on your way

           PAYMENT SOFTWARE DEVELOPER KIT (SDK). Our Payment
           SDK helps developers integrate to the PayOnline platform by
 ;         building in the required technical specifications and compliance
           elements, thereby reducing coding time and effort, while giving you
           the tools to innovate new solutions. Our SDK libraries for instant
           integration are available on the following technologies: .NET, PHP,
           Windows Universal App, Node.JS and iOS

www.netelement.com                                                                                                                     33
CUSTOMER
APPRECIATION MADE SIMPLE
 Build. Configure. Improve. Boost

        D                         C                         ⋆
STORED VALUE                  LOYALTY                 WHITE LABEL
 Our customized gift      Approximately 83% of      Our sales partners turn
cards and stored value    consumers are part of     to us for white-labeled
  programs can help      loyalty programs. Make          gift and loyalty
 boost your revenue      sure they can be part of    offerings because our
                           yours by using one of    flexible and easy to use
                           our loyalty solutions      solutions help build
                                                         their portfolios      34
BUSINESS ANALYTICS

         TRANSACTIONAL DATA                                   MERCHANT REPORTING
    Real-time insights. Measure your                          Information at your fingertips. From
      credit and debit card revenue,                          merchant statements to online
 transactions, and average purchase                           portal and dashboard, we offer
                        size over time                        comprehensive reporting solutions
                                                              for merchants of all sizes

           ONLINE REPUTATION                                  ALERTS
 See what others see. Monitor your
     online reputation, ratings, and      MAKE                Information is power, we bring a
                                                              proactive, convenience-oriented
   reviews on top sites where your
      customers comment on your          SMARTER              approach to notifying our
                                                              merchants of time-sensitive
                            business     BUSINESS DECISIONS   reconciliation and dispute events

                   SOCIAL MEDIA                               CHARGEBACK MANAGEMENT
Stay in touch with your clients. Track                        Chargeback system offers full cycle
  your Facebook and Twitter activity,                         management, from retrievals to
   identify your newest fans, and see                         arbitration, all from a single
     who is engaging with your social                         interface, thus enabling faster
                         media pages                          resolution

   www.netelement.com                                                                    35
GET IN TOUCH WITH US

HEADQUARTERS                      WORLDWIDE LOCATIONS
3363 NE 163rd Street, Suite 705   Commonwealth Independent States
North Miami Beach, FL 33160       European Union
Phone: +1 305 507 8808            Russian Federation
Email: investors@netelement.com   United Arab Emirates
Web: www.netelement.com           United States

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