NQ Mobile Inc. (NYSE: NQ)

Investor Presentation

November 2013

2

Dr. Henry Lin Co-Founder, Chairman

and Co-CEO

12 years of experience

in mobile industry

Ph.D. degree in

communication and

information systems

from Beijing University

of Posts and

Telecommunications

Omar Khan Co-CEO

13 years of experience

in mobile technology

related industry

Previously Global Head

of the Mobile Center of

Excellence at Citigroup

and CTO/CPO and

Chief Strategy Officer at

Samsung Mobile

Dr. Vincent Shi Co-Founder and COO

12 years of experience

in mobile industry

Ph.D. degree in

geographic information

systems from Peking

University

KB Teo CFO

Over 10 years of

investment banking

experience with

Deutsche Bank,

Goldman Sachs and

Piper Jaffray; lead

banker for NQ Mobile's

IPO

CFA charter holder

Management

2

Investor Presentation

3

Focus Area

1. NQ Mobile – looking back and who we are today

2. Overview of the Consumer Security, Gaming,

Advertising, and Enterprise Segments

2. The Vision Of the Future

3. Financial Overview

3

4

4

Founded in 2005, pioneered mobile “specific” innovation and technologies by

identifying the emergence of mobile security risks

Innovation Leader: over 100 patents filed or issued in the mobile ecosystem

covering security, user experience, content management, mobile device

management, image and voice recognition, etc. Adding ~ 40 patents annually

Originally funded ($47MM) by 3 prominent US VCs in Sequoia, Fidelity and

Mayfield with strategic investments from Qualcomm, Mediatek and HTC. Today,

NQ Mobile is a publicly listed on the NYSE since May 2011

Recognized by World Economic Forum as a Technology Pioneer (previously

awarded to Google and Twitter), Time called NQ a Top 10 startup that will change

your life and NQ’s co–CEO’s honored by Fortune Magazine as Mobilizers under 40

and World’s Most Powerful Disruptors

Recognized Global Leader in Mobile Security and Mobile Platform Innovation

NQ Mobile – Looking Back

5

Leading Global Provider of Mobile Internet Services

Mobile Advertising

MVAS Consumer Security

Gaming

Managed Mobility

Services

Enterprise

Mobility

Consumer

Mobile

Services

~525MM registered user accounts

~152MM active user accounts

~14.8MM premium users

~#1 mobile game publisher on iOS

platform in China and #3 on all

smartphone platforms in China (Sino

MR, 1Q 2013)

~1,250 enterprise customers

~Over 80 of fortune 500 companies as

customers

~30 MDM enterprise customers

NQ Mobile Today

5

6

Wide Range of Collaborations with Key Ecosystem Participants

Online download

Third party payment processors

Mobile payment service providers

Device Pre-installation

Retail

Carrier and Channel partnerships

6

Overview of Consumer Security

Proliferation of Mobile Technology

8

Mobile data traffic / month (Exabyte)

Surging Mobile Data Traffic

Application download (MM)

Increasing Functionalities

718

1,405

41.3%

62.9%

2012 2016

Worldwide smartphone shipment (MM)

Rapid Adoption of Smart

Phones

45,617

309,606

2012 2016

0.9

7.4

2012 2016

Smartphone Penetration Rate (3)

Source: IDC (December 2012) Source: Gartner (August 2012) Source: Cisco (February 2013)

An average U.S. household will have 9 connected devices by 2015 (1)

Sales of mobile devices to business worldwide are expected to reach 272MM units by 2016 (2)

1 Based on IDC estimates as of May 2012

2 Based on Gartner estimate as of February 2013

3 Smartphone shipments as % of total mobile phone shipments

CAGR:

18.3% CAGR:

61.4%

CAGR:

69.3%

8

9

FAMILY

NQ Family

Guardian

PRIVACY

NQ Mobile

Vault

SECURITY

NQ Mobile

Security

Trust

Protects your mobile voice & data from

malicious software (viruses, malware),

phishing and call eavesdropping

NQ Mobile Security

America Movil US Cellular

Supporting full carrier

branding and service

integration including

distribution, pre-loads,

billing, etc

NQ Mobile – Consumer Security

Ensures your digital privacy through active

control & on-device encryption of your content

& communications

NQ Mobile Vault

Augments parenting and child’s safety

Build awareness, gain visibility, and provide

controls about your children’s everyday

activities.

NQ Mobile Family Guardian

9

10

OEMs Retail Strategic/Others Carriers

Consumer Security – Worldwide Partnerships

10

NQ @ America Móvil

América Móvil and NQ Mobile™ Collaborate to

offer Mobile Subscribers Security, Privacy and

Family Protection across Mexico, and Latin

America

Google Play promotion

Online promotion

11

NQ @ Retail – 3500 US Retail locations this summer

Retail material

ready-to-ship

From warehouse to point-of-sale

Semi-permanent fixtures highlight product offerings,

with the opportunity to flex-in new product or

promotional literature quickly. Web-based activation

tools help sales agents get customers up and running, so

they can walk out working.

Point-of-sale presence Product overview and

takeaway material

Promotional material In-store, on-device

activation

12

Offer Wall – Monetization of Active Users

13

FL Mobile – Gaming & Entertainment Platform

15

Large and Growing China Mobile Games and Mobile Advertising Market

2.9

4.2

6.2

8.8

13.5

19.1

25.0

2009 2010 2011 2012E 2013E 2014E 2015E

(RMB Bn) (%)

China Mobile Games Market Size

72.6

214.4

474.7

825.0

1,125.1

1,400.0

1,687.5

2009 2010 2011 2012E 2013E 2014E 2015E

(US$MM) (%)

China Mobile Advertising Market Size

Source iResearch (June 2012) Source IDC (January 2013)

2009 – 2015

CAGR:43%

2009 – 2015

CAGR: 69%

15

16

Mobile Games and Advertising Platform

Founded in 2009, Feiliu is a leading mobile interest

based social platform in China

― Engages user in real-time online group

activities, built upon unique interest

communities including mobile technology,

automobile, health care, games, etc.

NQ Mobile invested in Feiliu in Feb. 2010 and

entered definitive agreement with Feiliu to acquire

the remaining stake in Nov. 2012

Mobile Interest-based Social Platform

98M+ registered users

19M+ monthly active users

Distribute 400K+ apps/games

#1 mobile game publisher on iOS platform in

China and #3 on all smartphone platforms in

China (Sino MR, 1Q 2013)

Mobile Games and Advertising Platform – Feiliu

16

Number ONE iOS Gaming Publisher in China

FL Mobile net revenues were $10.3MM in Q3 – exceeding our expectations

Added Tencent, CMGE, Baidu, and China Mobile as partners – more coming…

Expanded to int’l markets starting with North America in the next month

19 MM monthly active users

#1 The top iOS mobile

game publisher and

operator in China

FL Mobile – Gaming & Entertainment Platform

17

Products and Services

18

Users

Advertisers

Developers

Mobile

Interest

Based

Community

• Interest based

social graph

• Sponsored

download

• Gaming

monetization

platform

• Content sharing and

download

• Interest based

communities

• Virtual goods

• Merchants goods

recommendation

• Promotion Rewards

• Feiliu AD inventory

• Sponsored

recommendation

• Merchant inventory

18

Synergistic Businesses

19

Protect

Secure

Prevent

1 All user data as of December 2012

Engage

Monetize

Users Actively Data Analyze

Optimize

Customize

Trusted Platform

133MM Active Users

Interest-based

Community 19MM Active Users

Socialize

Share

Play

19

Expanded Acquisition Methods

20

App Store Downloads

Editors or User recommendation

Game Coupons News or Info

Ads Overlays Banners Rich Info

Community Products

21

Self-developed and operated community apps are major user acquisition and retention engine

Tech Bible Download Community Game Center

Developer Relationships

22

23

龙之召唤

Gods and Dragons

QQ御剑•飞流至尊版

QQ Yujian FL Extreme Edition

武林盟主

Wu Lin Meng Zhu

口袋梦幻

Pocket Dream

神雕侠侣

The Return of the Condor Heroes

傲世西游•神魔篇

Journey to the West – Mythical Chapter

FL Mobile – Most Popular Games

23

Advertising

25

Feature rich, mobile app data analytics platform

– Provides deep data tracking, statistics, visualization and analysis that

delivers actionable insights to help mobile app developers and

advertisers

Includes:

– User Acquisition

– User Engagement/Behavior

– User Cohort (Targeting)

– User Conversion (Funnel)

300+ metrics

40+ reports

Customized events

Analytics

Campaign

Insight

Advertising – Analytics and Operations Platform

25

Ad Platform

• Tracking/Analytics/Reporting • Revenue Optimization • High Conversion Ads • 1,000+ Premium Advertisers

Value to 3rd Parties

26

Ad Inventory

27

Banner Ads Brand, Apps, Games, eCommerce

Ad Wall / Offer Wall Apps, Games

Ad Inventory

28

Interstitials / Overlays Brand, Apps, Games, eCommerce

Notifications Brands, Apps, Games, SMB

Proven Track Record

29

JD 360buy.com • Ad: Banner

• Campaign: Q3 User

Acquisition

• Result: Over 200K newly

acquired users

• Order rate: 1%-3%

Sword King • Ad: Offer Wall

• Campaign: August ‘13

User Acquisition

• Result: Over 13840 new

register users

• Conversion: 1.23%

Time Hunter • Ad: Offer Wall

• Campaign: 2H

September ‘13 User

Acquisition

• Result: Over 8632 new

register users

• Conversion: 1.10%

Mercedes Benz • Ad: Banner, Interstitials

• Campaign: 2H

September ’13

• Impressions: Over 9.4M

• Clicks: Over 150k

30

Advertising – Increasing monetization of users

Traffic Monetization Works!

Q/Q revenue acceleration driven through: • Advertising (traffic monetization) + ~100%

thousands

millions

April September

Non-security premium customers

Q2 2013 Q3 2013 Growth

Total Active User

Accounts 138.3 152 10%

Total Premium User

Accounts 11.3 14.8 31%

Premium Monetization

Percentage 8% 10% 20%

30

NationSky – Enterprise Mobility Solutions

Enterprise Mobility: NationSky

Founded in 2005 by Charlie Hou

NQ Mobile acquired majority stake (55%) in May 2012 – subsequently the company acquired the remaining (45%) in July of 2013

Leader in China enterprise mobility services

– Over 1,250 large and medium enterprise customers

Strong industry alliance and partnerships

– Partners include Apple, RIM, China Mobile, Mobile Iron, GEMA etc.

Cross platform proprietary expertise and IP in mobile enterprise services and software

– Solutions for iOS, Android, BlackBerry

– Mobile device/application Management

– Enterprise app/content distribution

32

N ation

32

NationSky - Products and Services

33

Security Manageability Services Industry Solutions Platform Integration

Services

Mobile data strategy

consulting

Architecture design and

deployment

Asset management

Training

Mobile device

management

Mobile content

management

Mobile application

management

Insurance solution

Banking solution

Public service solution

Logistic solution

Enterprise app store

Enterprise content

distribution

Push integration

Cross platform

middleware

Legacy

Enterprise IT

Mobility Infrastructure

Mobility Security Framework Integration

Framework

Mobility Application Enablement and Deployment Consulting and

Management

Services

N ation

N ation

N ation N ation

Devices

33

Banking

Brokerage

Insurance

Pharmaceutical

Manufacturing

Energy

34

Selected Customers of NationSky

34

NQ Sky

35

Mobile

Security

Mgmt.

(MSM) Mobile Device

Mgmt.

(MDM)

Mobile

Application

Mgmt.

(MAM)

Mobile Content

Mgmt.

(MCM)

Mobile Email

Mgmt.

(MEM)

2. Apps

(Enterprise Apps, 3rd

Party Apps)

3. Content

(Documents, Emails,

Messaging)

1. Device

(Settings, Config.,

Security, Inventory)

iOS, Android, Windows 8

Enterprise Mobility

Management Needs Enterprise

Analytics

Secure

Enterprise

Messaging

NQ Sky Enterprise Mobility

Management Platform (EMM)

NQ Sky – On Device

36

NQ Sky Management Console

37

MDM Example 1: Anbang Insurance

Customer Profile: Anbang Insurance Group

Inc. is a leading insurance company in China,

providing property insurance, life insurance,

health insurance, asset management,

insurance sales agents and insurance

brokers.

All Anbang sales representatives as part of

the business development process. NQ Sky

MDM is used for asset management, data

security management, mobile app updates

and push, and IT policy management.

Competition: Mobile Iron and AirWatch

Key Criteria: Highest technical score on

proof-of-concept

38

MDM Example 2: Hai Di Lao

Customer Profile: 80 franchised restaurants

in China. Every restaurants utilizes over 100

tablets for diner menu display and customer

orders. NQ Sky MDM is implemented to

manage all tablets including, device

provisioning, tablet configuration and

management, security management,

application provisioning, asset management.

Competition: Neusoft, Huawei, Mobile Iron

Key Criteria: Feature set and performance

39

40

400

750

1,100

1,400

2,450

3,480

2011 2012 2013 2014 2015 2016

(MM)

Forecast of Managed Mobility Services Market, Worldwide, 2011–2016

2011 – 2016

CAGR: 54%

Source : Gartner

Managed Mobility Services Outlook

40

Financial Highlights

42

26.9 48.5 91.6

164.0

234.2

8.7 23.2

55.1

119.4

192.4 67.4

98.4

35.6

71.7

146.7

350.8

525.0

2009 2010 2011 2012 9M13

2009–2012 CAGR(2):

China: 57%

Overseas: 92%

Total: 68%

China Overseas

14.5 21.6

43.1 64.3 70.2

6.0

14.4

31.9

72.4 73.0

31.0

20.5

36.1

75.0

136.7

174.2

2009 2010 2011 2012 9M13

(MM)

Registered User Accounts(1)

(MM)

Registered User Account Additions(1)

1 The registered user accounts are as of year / quarter end

2 Excluding Feiliu

Feiliu

Strong Underlying Operating Metrics

42

9.1 17.4

32.9

56.9 62.5 66.8 70.6

2.9

8.0

19.4

40.7

48.6

55.4 62.4 12.5

13.7

16.1

19.1

12.0

25.4

52.4

110.1

124.7

138.3

152.1

4Q 2009 4Q 2010 4Q 2011 4Q 2012 1Q 2013 2Q 2013 3Q 2013

1.0 2.5

4.0

5.9 6.0

0.1

0.7

1.6

3.0 3.2

1.1

3.2

5.6

8.9 9.2

11.3

14.8

4Q 2009 4Q 2010 4Q 2011 4Q 2012 1Q 2013 2Q 2013 3Q 2013

43

($MM)

Active User Accounts(1)

($MM)

Paying User Accounts(1)

& Premium User Accounts (2)

1 The active user accounts and paying user accounts are average monthly numbers for the specified quarter

2 Premium user accounts are any user account that generates revenues either through direct payment or indirect payments from third party developers and advertisers via the offer wall or other form of advertising.

China Overseas Feiliu

2009-2012

CAGR(2):

China: 58%

Overseas: 94%

Total: 69% 2009-2012 CAGR:

China: 56%

Overseas: 134%

Total: 69%

Premium user accounts

Strong Underlying Operating Metrics (cont’d)

43

4.0 9.0

18.5

32.2

1.1

6.2

17.7

35.7

0.2

2.4

4.5

10.6

12.6

0.7

48.3

63.6

12.8

6.2

19.9

5.9

29.5

1.3

3.0

5.3

17.7

40.7

91.8

61.7

128.8

2009 2010 2011 2012 9M 2012 9M 2013

44

($MM)

2009 – 2012

CAGR: 104%

21% 76%

Revenue (1)

3% 35%

51%

14%

10%

78%

10%

10%

49%

15%

23%

China Consumer Overseas Consumer Other Enterprise Feiliu

2%

1 2012 revenues include full year results for Enterprise (Nationsky) and Feiliu even though they were acquired in 2Q and 4Q, respectively

44%

45%

11%

109%

2%

Mobile Security Subscription Revenue Mobile Game Revenue Advertising Revenue Enterprise Service Revenue Other Revenues

35%

39%

12%

14% 1%

Rapidly Growing Revenues

44

45

($MM)

Quarterly Revenue

3.6 3.9 5.2 5.8 6.8 7.8 8.4 9.1 3.0 3.8 5.1 5.8

7.1 8.2

9.9 10.5

1.1 1.2

1.0 1.2

2.1 2.5

3.0 3.1

1.4

4.5 6.7

0.7

20.9 21.5 21.2

1.8 5.3 5.7 3.3

5.5

11.0

6.1

8.1

15.3

1.1

1.0

0.9

7.6 8.9

11.3 12.8

16.0

20.0

25.8

30.0

33.2

41.4

54.2

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

45

39%

47%

14% 43%

44%

13% 45%

46%

9% 45%

45%

10% 44%

43%

13% 41%

39%

12% 7%

38%

33%

12%

17%

35%

30%

10%

22%

2%

5%

63%

10%

18%

3%

13%

52%

13%

19%

2%

China Consumer Overseas Consumer Other Enterprise Feiliu

Mobile Security Subscription Revenue Mobile Game Revenue Advertising Revenue Enterprise Service Revenue Other Revenues

Rapidly Growing Revenues (cont’d)

11%

39%

20%

28%

2%

45

(%)

6,125 7,079

9,215 10,324

12,607

14,988 16,749

18,572 20,703

24,869

28,461 80.4% 79.8% 81.2% 80.5% 78.9% 80.8% 78.5% 79.5% 76.3% 74.6%

73.3%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

6,118 7,062 9,162

10,270 12,555

15,268 17,848

20,358

22,775

27,594

32,273

80.3% 79.6% 80.7% 80.1% 78.6% 76.5%

69.2% 67.8%

68.5%

66.7%

59.5%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

($’000)

NQ ex. NationSky Gross Profit(1)

(%)

($’000)

Total Gross Profit(1)

($’000)

Enterprise (NationSky) Gross Profit(1)

(%)

280

1,099

1,785

2,072

2,724

3,812

19.9% 24.6%

26.8%

33.9% 33.9%

24.8%

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

1 GAAP figures, which include share based compensation

Healthy Gross and Operating Margins

46

2,982 3,689

4,722 4,817 5,597

6,401 6,354 7,166

9,048

12,779

15,165

39.1% 41.6% 41.6% 37.5% 35.0% 34.5%

29.8% 30.7% 33.4%

38.3% 39.0%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

2,982 3,689

4,722 4,817 5,597

6,548 6,817 7,855

9,952

13,651

17,051 39.1% 41.6% 41.6% 37.5% 35.0% 32.8%

26.4% 26.2% 29.9%

33.0% 31.5%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

($’000)

NQ ex. NationSky Operating Profit(1)

(%)

($MM)

Total Operating Profit(1)

(%)

($’000)

Enterprise (NationSky) Operating Profit(1)

(%)

147

463

689

904 873

1,886 10.5% 10.3% 10.3%

14.8%

10.8% 12.3%

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

1 Non-GAAP figures, which exclude share based compensation. The percentage represents the non-GAAP operating margin

Healthy Gross and Operating Margins (cont’d)

47

($’000)

Selling & Marketing Costs(1) General & Administrative Costs(1) Research & Development Costs(1)

($’000) ($’000) (%) (%) (%)

1,385

899

1,347

2,403

2,764

3,375

4,736

4,178 4,165

5,768 6,083

18.2%

10.1%

11.9%

18.7%

17.3%

16.9% 18.4%

13.9%

12.5% 13.9%

11.2%

1Q 11

2Q 11

3Q 11

4Q 11

1Q 12

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

3Q 13

875

1,514

2,110

1,630

2,964

3,691

4,042

5,544

5,833

5,156

5,630

11.5%

17.1% 18.6%

12.7%

18.6% 18.5%

15.7%

18.5% 17.5% 12.5%

10.4%

1Q 11

2Q 11

3Q 11

4Q 11

1Q 12

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

3Q 13

883 976 1,037

1,474 1,282

1,706

2,310

2,834 2,934

3,133

3,606

11.6%

11.0%

9.1%

11.5%

8.0%

8.5%

9.0%

9.4% 8.8%

7.6%

6.7%

1Q 11

2Q 11

3Q 11

4Q 11

1Q 12

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

3Q 13

1 Non-GAAP figures excludes share based compensation. The percentage represents the non-GAAP operating expense as a percentage of total revenue

Healthy Gross and Operating Margins (cont’d)

48

3,101

4,282

6,996 6,542 6,386

7,127

8,134

12,325

10,476

15,043

17,389

40.7%

48.3%

61.7%

51.0%

40.0% 35.7%

31.5%

41.0%

31.5%

36.3%

32.1%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

($’000) (%)

Non-GAAP Net Income(1)

1 Non-GAAP figures excludes share based compensation. The percentage represents the non-GAAP net margin

Healthy Profitability

49

3,389

4,595

6,024 7,090

8,660 9,473

10,861

12,234

14,439

17,437

19,170

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

($’000)

Deferred Revenue

High Visibility and Strong Cash Flow

50

1,978 3,038 2,633

4,191

6,779

1,862

6,934

3,938 4,426

11,101

22,160

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

($’000)

Operating Cash Flow

High Visibility and Strong Cash Flow (cont’d)

51

Account Receivable Days

132 136

129

138

131 130 126

142

158

145

115

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Total Receivable Days

52

Appendix: Consumer Security Suite (Android)

53

NQ Mobile Security NQ Family Guardian NQ Vault NQ Easy Finder NQ Care

Appendix – NQ Premium Features

NQ Mobile Security

54

Appendix – NQ Premium Features

NQ Mobile Vault

55

56

• Organize

• Aggregate all of your

music

• Rich, dynamic

homescreen experience

• Discover

• Learn about new

music, with one

touch access to

purchase from

partner music stores

• Search

• Integrated music recognition

search with NQ MUSIC RADAR

• #1 Technology RANKING in

MIREX 2012 music search

competition

• Over 3M music searches DAILY

Appendix – NQ Live

Appendix – NQ Live

Appendix – NQ Live

All your music, comfortable at home.

57

• Premium conversion

• Traffic redirect/referral

• Advertising

• App-promotion / Cross-promotion

• Placement Bidding

Brand | Performance Ads | Rich

Media

Appendix – NQ Live

58

Storefront

• Curated Live desktop

storefront

• Integrated into the Live

desktop container

• Access to a diverse, broad

set of content and brand

experiences.

Appendix – NQ Live

• Curated Live desktop

storefront

• Integrated into the Live

desktop container

• Access to a diverse, broad

set of content and brand

experiences.

59

Appendix – NQ Live

1. Premium Content

2. Direct traffic monetization

3. Platform licensing

4. Advertising

Business Model

60

Appendix –Music Radar

The world’s leading music search technology, currently providing over 3.2M music

searches DAILY (08/13).

“Music Radar" is an music search technology that enables search for music through

ambient sound or direct playback recognition.

― It is the first of its kind that allows users to find the track being played not only from a

direct recording, but also by allowing a person to sing & hum the tune.

Search song by:

― Direct music playback (ambient or direct playback)

― Singing/humming

World’s BEST:

― Proven and tested as the world’s best melody recognition engine

― Extremely fast and efficient recognition.

― Personalized music recommendations based on user behavior.

― Enables integration with 3rd party music services.

61

Appendix – Hissage

62