RHP Business Presentation & Q3 Trading Update Page 1

18 May 2016

Sydney, Australia

ASX Code: RHP

Business Presentation & Q3 Trading Update

Please find attached a “Business Presentation & Q3 Trading Update” that will be presented by Dominic O’Hanlon, CEO of rhipe, at the Morgans conference today.

For more information contact:

Dominic O’Hanlon Mike Hill

Chief Executive Officer Executive Chairman

Ph +61 406 751 855 Ph +61 421 056 691

Additional information

About rhipe

rhipe, (ASX:RHP) is the cloud channel company. It provides its partners with a complete end to end cloud

solution, helping them to grow and thrive in the emerging Cloud economy. As Cloud 1st, channel 1st company,

rhipe is recognised as the leading expert in subscription software licensing in Asia Pacific and its multi-award-

winning services and support division is the industry leader in Microsoft Office365 implementation.

The company has offices has in Melbourne, Sydney, New York, Auckland, Singapore, Bangkok, Manila, Kuala

Lumpur and Jakarta.

Business Presentation & Q3 Trading Update

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rhipe Limited (ASX code RHP)

Business Presentation & Q3

Trading Update

Morgans Conference

18th MAY 2016Dominic O’Hanlon, Chief Executive Officer

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The Recipient, intending investors and respective advisers, should:

• conduct their own independent review, investigations and

analysis of RHP and of the information contained or referred to

in this presentation;

• seek professional advice as to whether an investment in RHP is

appropriate for them, having regard to their personal objectives,

risk profile, financial situation and needs; and/or

• nothing in this presentation is or is to be taken to be an offer,

invitation or other proposal to subscribe for shares in RHP.

The Recipient specifically agrees, understands and acknowledges that

some of the information contained herein has been provided by third

parties (including all information regarding LiveTiles) and the

Beneficiaries accept no responsibility for any inaccuracy, misstatement,

misrepresentation or omission in relation to that information.

Except insofar as liability under any law cannot be excluded, none of

the Beneficiaries shall have any responsibility for the information

contained in this presentation or in any other way for errors or

omissions (including responsibility to any persons by reason of

negligence).

This presentation has been prepared by rhipe Limited ACN 112 452 436

(RHP). Each Recipient of this presentation is deemed to have agreed to

accept the qualifications, limitations and disclaimers set out below.

None of RHP and or its subsidiaries or their respective directors, officers,

employees, advisers or representatives (Beneficiaries) make any

representation or warranty, express or implied, as to the accuracy, reliability

or completeness of the information contained in this presentation, including

any forecast or prospective information. The forward looking statements

included in this presentation involve subjective judgment and analysis and

are subject to significant uncertainties, risks and contingencies, many of

which are outside the control of, and are unknown to, the Beneficiaries.

Actual future events may vary materially from the forward looking statements

and the assumptions on which those statements are based. Given these

uncertainties, you are cautioned to not place undue reliance on such forward

looking statements.

This presentation is a general overview only and does not purport to contain

all the information that may be required to evaluate an investment in RHP.

The information in this presentation is provided personally to the Recipient

as a matter of interest only. It does not amount to an express or implied

recommendation with respect to any investment in RHP nor does it

constitute financial product advice.For

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The rhipe

Value

Proposition

Operating

Divisions

Q3 Trading

UpdateMarket

Opportunity

Growth

Update

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The rhipe

Value

Proposition

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5

Passionate about helping service providers adaptand thrive in the emerging cloud economy

Channel

First

Cloud

First

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Software

VendorsService

providers

Software

licensing

End

usersServices

Products

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Operating

Divisions

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Cloud Operations

Cloud first, digital first marketing

transformation to drive demand

for channel partners.

Billing, software-asset management

& license optimization

Cloud Solutions

Professional services and support

people to help Service Providers with

technical needs

Cloud Licensing

Software sold and implemented

by service providers.

Pay based on usage.

(95% of revenues via channel B2B

of which 95% are monthly

subscription income streams)

(5% of group revenues from direct

end user B2B customers)

(Support, IT and IP to support

licensing and solutions)

SupportServices and support to

position offerings for new licensing

programs.

ValueAdd value with systems & ease

of trade for Cloud Service Providers.

LicensingBuild and expand on cloud licensing

programs. Multi-vendor and multi

region.

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Q3 Trading

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• Growth Top 10 Analysis

26% YTD

MARGIN

• New Programs

GROWTH PROFITABILITY

MARKET OPPORTUNITY2INVESTMENT AREAS OUTLOOK

101. Ex Top 10 is approximately 99% of total customers (or approximately 1790 of total 1800 customers)2. IDC – #US40709515 Dec 2015

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YTD Mar-16 # Partners % of Margin (A$) Margin (%) Sales (%)

Top 10 10 ~9% ~3.6% 33.4%

Rest c.1,790 ~91% ~20.6% 66.6%

Total c.1,800 A$14.2m 14.2% A$94.9m

Margin Analysis Top 10

Growth Analysis Top 10

Sales1 (A$m) YTD Mar-15 YTD Mar-16 % Growth

Top 10 21.9 31.7 44.7%

Rest 44.4 63.2 42.3%

Total 66.3 94.9 43.1%

Ex Top 10: High gross margin

proportion91%

Ex Top 10: High growth 42.3%

Ex Top 10: High margin 20.6%

Note: Sales data excludes rebate, margin data includes rebate of approximately A$5.0mm (YTD). .

11

5.0

7.5

10.0

Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16

Sales of tail partners (excludes rebates)(A$mm)

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$12

$16

$20

$24

$28

Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16

Millions52% Growth in

Total Group GM $

Growth GM $ Analysis

- LTM gross profit dollars

$12

$14

$16

$18

$20

Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16

Millions

26% Growth in

Licensing GM $

LICENSING EXPENSES $ (EX. SOLUTIONS)Rolling LTM EXPENSES $

Group Gross Margin $ Licensing Gross Margin $

Expense Growth

has flat lined

• Annualised Licensing Expenses of approx. ~$20M

• Annualised Solutions Expenses of ~$7m

• Total Group monthly costs approx. $2.3m per month and

includes all investment in new Regions and Teams

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2

4

6

8

10

12

14

16

18

July 2015 October 2015 December 2015 March 2016

Millions

Trade Debtors Trade Creditors Cash on Hand

Unaudited

13

Cash on Hand

Cash Received for O/D

Cash for Sale of LiveTiles

Ample Cash Available

$7.3M

$1.3M

$4.5M

$13.1M

Cashflow on hand inclusive of working capital

1. O/D refers to two Top 10 aged outstanding debtors received post 31 Mar balance date.2. Sale of LiveTiles completed post 31 Mar balance date.

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Growth

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100

200

300

400

500

600

15

Cumulative partner agreements in SEA

$M

0

20

40

60

80

100

120

FY11 FY12 FY13 FY14 FY15 FY16

1H RevenuePre-Listing 2H Revenue

FY13 FY14 FY15

Q1Q2 Q3

Q4Q1

Q2Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

FY16

Indonesia

Malaysia

Philippines

Singapore Thailand

ThailandApr 2013

MalaysiaFeb 2014

Singaporesince 2012

Indonesia Jul 2014

PhilippinesSep 2013

Q3

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Unaudited

SEA vendor GROWTH YTD PCPSEA Q3 Performance

Growth in SEA remains attractive at circa +100% Q3 PCP and vendor mix strong across all key

categories as markets adopt cloud solutions.

Singapore Philippines Thailand Malaysia Indonesia

FY15 Q3 FY16 Q3

95%

Growth PCP

109%

Growth PCP

154%

Growth PCP 71%

Growth PCP 113%

Growth PCP

0% 50% 100% 150% 200% 250% 300%

Citrix

SPLA

Zimbra

VSPP

VEEAM

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42%

net new partners to rhipe

MSFT CSP Key Stats

rhipe’s combined Cloud business continues to grow in all countries with a solid start in 1H FY16

As at 15th February 2016

2T Competitive Ranking

Asia Ranked #1

Global by Company #7

Global by Territory #11

Australia

Launched July 1 2015

SG, ML & TH Launched Oct 2015

PH Launched Nov 2015

Program Launches

South East Asia

05000

100001500020000250003000035000

Jul Aug Sep Oct Nov Dec Jan Feb May

CSP Seats

(253 @ 15th Feb) (266 at Nov 15) (185 at Nov 15)

31886

As at 5 May 2016

11,510

As at 26 Nov 15

As at 5th May 2016

332

signed and now

transacting

(Activation ratio 68%)

488

signed partners

272

partners on-boarding

to CSP

rhipe exceeds 20K seats in 6 months

Launched Feb 16’ (50+

partners recruited 1st month)

AU since 1 July 2015

SEA launched Oct 2015

Launched Q2 FY16

Ave revenue per seat: $13*

ARR $4.5M

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$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

FY15 FY16

Q4

Q3

Q2

Q1

LSP Cumulative Partner agreements

Apr- 16 Jul - 15

148 LSP contracts YTD to 31 March 16

22 new LSP contracts in April 16

Expect strong financial year end close to 30 June

Investment success with LSP division profitable and growing.

0

20

40

60

80

100

120

140

160

180

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Market

Opportunity

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rhipe is well-positioned to capture this Cloud opportunity. We have the programs, people and systems today to deliver

our Public, Hybrid or “Whole of Cloud” future

USD141.2 BillionGlobal Public Cloud Market 2019

Reference – IDC #US40709515

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Australia New Zealand Singapore Thailand Philippines Malaysia Indonesia

Microsoft SPLADicker Data, Ingram,

Insight, SoftwareOneDicker Data, Ingram ECS, Crayon ECS Exclusive Crayon Crayon

Redhat Exclusive Exclusive Exclusive Exclusive Exclusive

VMware Westcon Westcon Ingram Westcon, Comstor Westcon, Comstor

Citrix Exclusive Dicker Data Crayon

Intel Westcon Westcon

Trend Micro Exclusive Soft Solutions

Veeam Exclusive Westcon

Zimbra Exclusive Exclusive Software One Software One Software One Software One Software One

LiveTiles Exclusive Exclusive Exclusive Exclusive Exclusive Exclusive Exclusive

Microsoft LSP Multiple

SkyKick Multiple

Microsoft CSP 2-Tier Ingram Ingram, Crayon ECS WSI, Crayon Ingram, Crayon Crayon

vCloudAir

IBM Cloud, SoftLayerFor

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CAGR = 24.1%CAGR = 38.1%

IDC – #US40709515 Dec 2015IDC – #259066, Sept 2015

884 1,335 1,750 2,195 2,595 3,041776

1,363

2,063

2,925

3,991

5,289

2014 2015 2016 2017 2018 2019

APEJ - ODHPC APEJ - DHPC

APEJ hosted private cloud Services (On demand & dedicated), revenue usdm’s

1,660

2,698

3,813

5,120

6,586

8,330

1,909 2,288 2,713 3,208 3,762 4,387222293

357438

534646

1,4852,161

2,905

3,748

4,663

5,617

2014 2015 2016 2017 2018 2019

SaaS PaaS

APEJ PUBLIC CLOUD(BY SERVICE MODEL), revenue usdm’s

3,616

4,742

5,975

7,394

8,959

10,650

• Public and Private cloud revenue near parity

• Private cloud higher CAGR 22

Hosting private rhipe core revenue

Public cloud rhipe new revenue opportunity

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200

300

400

500

600

104.5157.6

223.5294

364.2444.2

535.9

25.5

39.4

58.8

82.2

114.4

149.2

184.7

21.5

35.3

52.8

78.3

108.2

143.2

178.5

18.7

33.2

50.1

69.8

93.7

120.6

149

16.4

25.5

36.1

48.5

62

77.4

94

0

200

400

600

800

1000

1200

2013 2014 2015 2016 2017 2018 2019

Hosted Private Cloud Revenue (USD)

Singapore Thailand Malaysia Indonesia Philippines

Source: IDC #AP250885

CAGR34%

41%

42%

39%

31%

Overall =

35.35%

• Strong CAGR across all

• General shift of share from Singapore

186.6

291.0

421.3

572.8

742.5

934.6

1,142.1 South East Asia growthCumulative partner agreements in SEA

FY13 FY14 FY15

Q1Q2 Q3

Q4Q1

Q2Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

FY16

Indonesia

Malaysia

Philippines

Singapore Thailand

ThailandApr 2013

MalaysiaFeb 2014

Singaporesince 2012

Indonesia Jul 2014

PhilippinesSep 2013

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