Pareteum® Corporation
September 19, 2018
Global Software Defined Cloud Platform:Cloud Connectivity Content
2© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private SecuritiesLitigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to Pareteum’s plansand objectives, projections, expectations and intentions. These forward-looking statements are based on currentexpectations, estimates and projections about Pareteum’s industry, management's beliefs and certain assumptions made bymanagement. Readers are cautioned that any such forward-looking statements are not guarantees of future performanceand are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involverisks and uncertainties, the actual results and performance of Pareteum may differ materially from the results expressed orimplied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance onsuch forward-looking statements.
Unless otherwise required by law, Pareteum also disclaims any obligation to update its view of any such risks or uncertaintiesor to announce publicly the result of any revisions to the forward-looking statements made here. Additional informationconcerning certain risks and uncertainties that could cause actual results to differ materially from those projected orsuggested in Pareteum’s filings with the Securities and Exchange Commission, copies of which are available from the SEC ormay be obtained upon request from Pareteum.
Forward Looking Statements
3© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
JanuaryPartnership with Airfox
MarchPartnership with NetNumber
MayPartnership with
JulyLaunched NEW cloud-based self-service portal
AugustCRB grew from $255m to $375mReleased positive Q2 Earnings
Hosted roadshows in Canada, UK, Belgium, & GermanySupported & passed all AGM measuresWon 2018 Communications Solutions Product of the Year Award
SeptemberApproved acquisitionParticipated in MWC EventExpanded to Asia; announced Manjot Mann as CEOParticipated in MVNOs Asia Conference
Accomplishments & Milestones in 2018
4© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
• Disruptive business model: rapidly growing global cloud enablement software company delivering award winning mobile enablement and IoT services companies, without telco infrastructure investing
• Growth driven by new way to deliver services that slashes costs and increases revenue generation for customers
• 70% + gross margins in existing large and growing multi-Billion dollar market
• $375 M contractual revenue backlog (as of August 31, 2018)
• Led by successful entrepreneurs, completed successful turnaround and have track record managing rapid growth in software and communications industries
• Patented software is not easily replicated, creating a financial, time based, competitive barrier to entry
• Path to profitability is accelerated via high margins on subscribers/connections and the magic of monthly recurring revenue will drive sustainable returns
• Attractive enterprise valuation based upon our current PPS, facilitating excellent risk adjusted returns
Investment Highlights
5© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
Ticker: TEUM Exchange: NYSE American
Stock Price (9/14/18): $2.81
Analysts Price Targets: $3.10 - $4.50*
Avg. Daily Trading Volume for 3 Months (ending 9/14/18): 1.3 M
Shares Outstanding (7/31/2018): 59 M
Market Cap (9/14/18): $169 M
Revenues (ttm) (12/31/17): ~ $13.5 M
36 Month Contractual Revenue Backlog (8/31/18): $375 M
*12-month price targets: Ascendiant Capital $4.50 as of 05/09/2018; Taglich Brothers $4.00 as of 08/24/2018; Joseph Gunnar$3.50 as of 04/05/2018; Dawson James $3.10 as of 05/16/2018.
Equity Snapshot
6© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
Leading global software defined cloud platform company
delivering award winning software & mobile enablement, without
heavy investment in proprietary technology or infrastructure
The world’s largest taxi company, owns no vehicles
The world’s most popular media owner creates no content
The most valuable retailer, has no inventory
The world’s largest accommodation provider, owns no real estate
The world’s largest network of gourmet coffee retailers own no stores or outlets
The world’s largest movie house owns no cinemas
The world’s fastest growing bank has no actual money
The world’s largest software vendors don’t write their apps.
Digital Economy Transformation: Software + Communications
7© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
Class 5:local central office
Local Loops
Tandem office
Digital Economy Evolution: Accelerated and Transformative
Products1970s
Product + Services1990s
Customer Centric2000s
Relationship CentricToday
Network Evolution
Product and Services Evolution
Global Cloud TEAX
Pareteum
MSPMVNE/MVNO
53 MNOs in 76 countriesCLEC
VoIP Providers
Traditional Retail Phone
Providers
Broadband
Hosted PBX / IP PBX
Local Loops
PSTN Internet
Virtual Hosted PBX
Virtual Call Centers
Broadband
MNO
IP Nets Internet RAN
Virtual Telco Apps
Broadband
Class 1:regional centers
Class 2:sectional centers
Class 3:primary centers
Class 4:toll centers
8© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
Managed Services Cloud Platform
SuperAPI Customer Use Case Enablement:• Global Mobile Network Operators• Communication Service Providers• Enterprises & Businesses
Pareteum Strategies: Engagement Cloud with Programmable Open Mobility,
Communications, and Applications Software (APIs)
Any Device, Anywhere
Software defined platform enabling real-time:-Connectivity/access/SMS/Mobile airtime/Streaming media-Identity Management and Security, Blockchain, Mobile payments, cryptocurrencies-Predictive analytics “insights”, Reporting, Artificial Intelligence, Machine Learning-Market and product management (rapid entry and innovation)-Unified Account management (multi channel/platform access and control)-Policy management (Control and present new service offers)-Online real-time charging (Control, unbundle and rate to retain and drive ARPU)
Application Developer’s SDK + Communications Platform
SuperAPI Customer Use Case Enablement:• IoT• Smart Cities• Customer Vertical Markets
Global Software Defined Cloud Platform
• SuperAPI Customer Use Case Enablement:• Communication Services Providers• Enterprises, Campuses,
Governments
9© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
As Connected “Things” (Cars, Goods, People, etc.) move among networks (4G, Wi-Fi, Narrow-Band IoT), needed are:• Seamless & Ubiquitous Access• Payments Systems
• Cryptocurrencies & Blockchain• Security & Identification Services• City & Citizen Services
• Purchasing/payments/settlements/ commerce
• Scalable Platform Services• Artificial Intelligence• Machine Learning• Predictive analytics “insights”• Cloud Connectivity• Monetized Transaction Exchange
Pareteum’s Software Platform: makes all of this possible … this is the Internet of Things
Smart Cities: An Eastern European IoT Case Study
Citizens can make payments, report incidents, send photo and localization information, check the status of the incident
10© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
Customer Success Platform: A Global Mobile Network Operator MVNE Case StudyAny device … anywhere … anytime … pay as you go @ The Speed of Need
PROBLEMS
Legacy upgrades are costly
Integration of new solutions
New competitors (OTT)
Information siloes
Cost and complex operations
LEGACY SYSTEMSRadio
Networks
2G 3G 4G
Future 5G
SupportSoftware
B/OSS*
ERP/APPS**
APIS
Internet of Things Enabler:API Development Platform &
Developer's Toolkit
Connectivity Enabled App Exchange
APIS
One Integrated Software Apps View
Sales, Marketing, Customer Service, Subscribers,Dealers, Employees
* Business & Operations Support System (B/OSS)** Enterprise Resource Planning / Applications (ERP/APPs)
Cloud Connectivity Content
Complete software platform enabling real-time:• Market and product management (rapid entry and innovation)• Unified Account management (multi channel access and control)• Policy management (Control and present new service offers)• Online real-time charging (Unbundle retain and drive ARPU)
• Predictive analytics “insights”, Reporting, Artificial Intelligence, Machine Learning,…
• Identity Management and Security, Blockchain, Mobile payments, cryptocurrencies,…• Connectivity/access
11© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
64M+ Wi-Fi Hot Spots in 180+ Countries
1,000+ GSM and 200 CDMA SMS Global
Agreements
53 MNO Global Agreements in 76
Countries
Strategic Alliances For Global Success
41,002Employees
$ 18 BRevenue
50.8 M Homes Passed
24.7 MFixed-line
Subs.10.1 MMobile Subs.
59.6 MVideo, Internet, and Fixed-line
Telephony Subs
10.1 MWIFI
Access Points
LIBERTY GLOBAL
1,000+ GSM and 200 CDMA SMS Global Agreements
28.5 M46 K
2.2 M
1.8 M31 M
64M+ Wi-Fi Hot Spots in 180+ Countries
12© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
36M-CRB 2018 YTD: Financial Results follow
1413
8 8
43
$54 $55
$30 $29
$167
0
20
40
60
80
100
120
140
160
Total 18Q1 Total 18Q2 Total July-18 Total August-18 2018 YTD
In M
illio
n
113% Increase as of
December 31st 2017
QoQ Av. 36M-CRB per deal
increased 10%• Torrid sales pace:
• 43 NEW contracts in 35 weeks for YTD 2018
• Revenue Outlook RAISED to > 80% YoY
• Affirmed full year positive:• Cash generated from
operations• EBITDA
13© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
121% 121% 127% 103%106%
106% 106% 118%170% 203%
0
2,000
4,000
6,000
8,000
Q2 Q3 Q4 Q1 Q2
36-month Contractual Revenue Backlog Conversion
Planned $ Conversion
Total $ Conversion
Planned # Connections
Total # Connections
SuperAPI
GSDC
MSP 90 days
30 days
30 days
120 days
30 days
30 days
Prospect to
Contract
Contract to Cash
x 1,000
December 31, 2017 2018 2019 2020 Total
EMBEDDED BASE CUSTOMERS
36 Month Contracted Revenue Backlog (CRB) Live and in Service 11,057 11,778 20,962 43,797
36 Month CRB: In Deployment and Service Establishment 14,955 30,702 58,333 103,991
TOTAL REVENEUE BACKLOG 26,012 42,480 79,294 147,787
36-month
Business Model: Cloud Delivered Services & MRR
Note: “(Q3) 2021” includes July and August 2021.
14© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
Company Update: Second Quarter 2018 Results
• Pareteum Announces Record Second Quarter 2018 Results• Revenues of $6 million, up 85% Year-Over-Year
• Net Income of $1,656,338 or EPS of $0.03 per Share (versus net loss of ($1.3 million) in the second quarter of 2017)
• Adjusted EBITDA improved by over $834K, or 180%, to $1.3 million
• EBITDA of $597,263 (improved by over $898K, or 298%, to $597,263)
• Connections, a Lead Indicator of Revenue, Increased 225% over the Second Quarter of 2017 and 23% Increase Over the First Quarter of 2018
• Raised 2018 Outlook to > 80% Revenue Growth
• Operating Cash Flow Net of Restructuring and Acquisition Related Expenditures of $565K for the six months ended June 30, 2018
• Dollar based net expansion rate of 161% for contracts added since 2017
15© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
Valuation Analysis: Revenue Multiple and 36-Month Contractual Revenue Backlog
• Current Market Cap: $169 M• Revenue Multiple of Current Revenues:
•Q1-18 Exit Run Rate at $24 M: • Rev. Multiple = 7x
•SaaS Industry Range of 10-13x• 36Mth Contractual Revenue Backlog (36MCRB)
• 36MCRB $375 M as of 8/31/18•36MCRB multiple only 0.45x
•SaaS Industry Range of 4-6x
•Rule of 40: Revenue and Profit growth @ 40% or above
•Combined Rule of 40% is expected to yield industry revenue multiples
•Revenue SaaS Industry Range of 10-13x•36MCRB SaaS Industry Range of 4-6x
$169 $216 $240 $264 $288 $312
$-
$100
$200
$300
$400
7 9 10 11 12 13
Revenue Multiple ($24 M)$ Millions
$169 $375$750
$1,125
$0
$500
$1,000
$1,500
0.45 1 2 3
Backlog Multiple (Currently $375 M)$ Millions
Rule of 40%x1,000 Rule of 40% Q2 2018 YoY %
Revenue Value for Revenue is 0%-40% $ 6,003 85%
Adj. EBITDA (Profit) Value for Adj. EBITDA are 40%-0% $ 1,441 24%
TEUM Rule of 40% 109%
Rev Test: >/= 40% … TEUM = 85% yields high end SaaS X = 13X = $312 Million
Backlog Test: >/= 0% (since rev growth is > 40%) … TEUM = 24% yields high end SaaS X = 6X = $1.872 Billion
16© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
• Robert H. (Hal) Turner: Founder, Executive Chairman, Principal Executive Officer: chartered the successful course of numerous international and U.S. domestic communication, software, and technology startup, growth, and Fortune 500 companies (all sizes … all stages); selected engagements:
• Vic Bozzo, Co-Founder, Chief Executive Officer: extensive sales and marketing leadership in the Telecom and Internet industry that has led to significant revenue and customer growth and investor returns
• Rob Mumby, Chief Revenue Officer: 20 years of communications industry experience building profitable businesses and leading new market entries for high-growth disruptors and Fortune 500’s
• Ali Davachi, Chief Operating Officer and Chief Technical Officer: 30 years experience: complex technology architecture & delivery: application, infrastructure virtualization, public/private cloud, network & application security, big data analytics, workflow orchestration, blockchain & large scale mobile applications for large global companies
• Edward (Ted) O’Donnell, Chief Financial Officer: 25 years experience: investment banking, private equity & venture capital, internet technology, Software as a Service (SaaS) and other new media businesses
• Denis McCarthy, Senior Vice President Corporate Development: 20 years experience: financial management and mergers and acquisitions as well as operational experience in network management, agile software development, engineering and customer service in telecom and software sectors
Carlyle Capital Group
Executive Team Highlights
17© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
Hal Turner: Founder, Executive Chairman &
Principal Executive Officer
Vic Bozzo: Co-Founder, Chief Executive Officer
Ted O’Donnell: Chief Financial Officer
Denis McCarthy: SVP Corporate Development
HQ: New York CityOffices: The Netherlands, Spain, Brazil, Bahrain
Contact Us
Investor Relations Contact
Investor Relations:
US +1 (646) 810-2182
Hayden IR (Stephen Hart)
US +1 (917) 658-7878
Rayleigh Capital IR (Carrie Howes)
UAE +971 (0) 55-997-0427
UK +44 (0) 870-490-5443
CAN +1 (416) 900-3634
Appendix
19© Pareteum 2018 (NYSE American : TEUM) Complete with accompanying oral presentation
Pro Forma Combined Capitalization Table
Pareteum capitalization as at July 31, 2018Common
TEUM (000's) Share Fully
Equivalents Warrants Options Diluted
Issued & Outstanding 59,022 10,929 3,502 73,453
Convertible Debt 48 732 780
Total Equity 59,070 11,661 3,502 74,233
Transaction Adjustment
Consideration Shares 37,852 37,852
Cancellation of Pareteum
shares owned by Artilium (3,200) (3,200)
Pro forma Total Equity 93,722 11,661 3,502 108,885
% Parteum Stockholders 59.6% 65.2%
% Artilium Stockholders 40.4% 34.8%
100% 100%1) % share splits based on Pareteum capitalization as at 31 July 2018. Differences vs. transaction announcement of 7 June 2018 reflect changes to the Pareteumissued shares outstanding and fully diluted share capital since that date.