Connexion Media March 2015 Quarterly Review

17 April 2015, Melbourne, Australia:  

After its ASX listing in August 2014 Connexion Media Limited (ASX:CXZ) has generated strong news flow and sealed major deals with leading global car manufacturers for our two core products,miRoamer and Flex.

miRoamer

Our MirrorLink-enabled miRoamer Android application for radio and music services has seen solid progress since its launch at the Paris Motor Show in October 2014.

miRoamer was the first ever application to receive the Mirrorlink Global Drive certification by Connected Car Consortium. In January, miRoamer was demonstrated by Volkswagen at the Consumer Electronics Show in Las Vegas.

In March French automobile manufacturer PSA Peugeot Citroen announced it will be one of the first vehicle manufacturers to implement miRoamer through MirrorLink. MirrorLink connectivity between your smartphone and vehicle infotainment system is achieved by a simple cable connection. The music entertainment service will be rolled out in the Peugeot models 108, 208 and Partner and Citroën’s C1, Berlingo and DS 5.

To date miRoamer has had successful collaborations with renowned car manufacturers across the globe: the new Skoda Fabia, Volkswagen Group vehicles including the Polo, Passat, Passat Estate, Beetle and Beetle Cabriolet, will all have miRoamer integrated into the MirrorLink system from 2015.

In late 2014, Connexion signed its first deal with German automotive giant Continental whose Interior Division has integrated miRoamer into its infotainment systems and also signed an agreement with digital music streaming service Deezer. miRoamer also has collaborated with technology giant Samsung and leading car manufacturer General Motors Corporation, and has a license agreement with internet radio hardware manufacturer BKS Technology.

In November 2014, Samsung demonstrated the miRoamer app to attendees on the MirrorLink system at their Developer Conference in San Francisco.

Just after the quarter finished, miRoamer was approved to be integrated into all new SEAT Leon cars with the Navi System Plus. SEAT, a major Spain-based motor vehicle company operates in 75 countries and is part of the Volkswagen Group.

These deals before and after the quarter with major car manufacturers are part of an upsurge in the connected car market. Integrating miRoamer with systems like MirrorLink optimises potential to expand with more focus on the connection between the driver and the car’s capabilities through mobile connectivity and voice control.

With more potential collaborations for miRoamer in the near future, investors should expect several more announcements as we expect to cement more deals.

For more information: www.miroamer.com

Flex

In November 2014 Connexion announced the launch of Flex, our cloud-based connected vehicle management system.

Since then Flex has had a successful official launch with the Victorian Government launching it at the 18^th Asia Pacific Automotive Engineering Conference in Melbourne in March. The Flex launch at Crown Promenade was part of the lead up to the Melbourne Formula 1 Grand Prix.

Opening the showcase Victoria Industry Minister Lily D’Ambrosio visited the exhibit and praised Connexion for its innovation, particularly our Flex product. The launch of Flex came after excellent results from BETA trials and was supported by online and radio promotions.

As outlined at the Connexion Media AGM in November 2014, the first phase of the Flex roll-out concentrated on Australia, China and the UK. The total addressable market for the product in Australia alone is 2.6 million vehicles.

Flex has seen steady growth since its launch and has established sales teams in Australia and UK. We are also in the process of exploring China-based sales and distribution opportunities.

Currently there are a number of established automotive manufacturers trialling Flex in the US, Asia and Europe. Connexion is engaging in cross selling using our existing (and future) vehicle manufacturers using miRoamer who are showing strong enthusiasm to trial the Flex technology.

The cloud-based system allows the consumer to manage an entire fleet of vehicles from a central point using cellular mobile connectivity. Flex is able to track key data including vehicle location, distance travelled, fuel consumption and driver behaviour. This management service instantly notifies the vehicle owner and/or fleet managers of the car’s usage through customised reporting.

For more information: www.flexvs.com

Corporate

In March, global technology operational accelerator Yonder & Beyond Group Limited completed a strategic investment in Connexion Media. The investment of $300,000 came via the purchase of 1.5 million shares at 20 cents per share from existing CXZ shareholders. This investment will see Yonder & Beyond assist Connexion with sales and marketing opportunities across the Asia Pacific region.

During the quarter, Connexion announced a non-renounceable pro rata offer of two new options for every three shares held by existing shareholder at an issue price of $0.015 per new option, exercisable at $0.20 before the expiry of 27 February 2017.

This raised $821,198 in the oversubscribed fully underwritten offer. The new options began trading on the 6 March 2015.

CONTACT

George Parthimos, CEO & Managing Director
Connexion MediaLimited
[email protected]

Rudi Michelson
Monsoon Communications
[email protected]