ASX:AHL

A H AFirst Half Investor Presentation

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This presentation has been prepared by AHAlife Holdings Limited. Each recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set out below.

None of AHAlife Holdings Limited 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 AHAlife Holdings Limited. 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 AHAlife Holdings Limited nor does it constitute financial product advice.

The recipient, intending investors and respective advisers, should:

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conduct their own independent review, investigations and analysis of AHAlife Holdings Limited (as the case may be) and of the information contained or referred to in this presentation; and/or

seek professional advice as to whether an investment in AHAlife Holdings Limited is appropriate for them, having regard to their personal objectives, risk profile, financial situation and needs.

Nothing in this presentation is or is to be taken to be an offer, invitation or other proposal to subscribe for shares in AHAlifeHoldings Limited.

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).

DISCLAIMER

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AHA IS THE PREMIERE CURATED MARKETPLACE

FOR CREATIVE & INSPIRING OBJECTS

SHOP THE WORLD’S MOST

UNIQUE DES IGNERS & ART ISANSAHA is a curated destination for discovering 4,000+ designers & artisans in 45+ countries. We scour the globe to find exceptional quality objects

for every single aspect of your life.

GIFTS AHA100 WOMEN MEN HOME BEAUTY DINING TECH ART MORE+ AHA STORIES MANIFESTO

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HIGHLY-SCALABLE, ZERO-INVENTORY BUSINESS MODEL

PROPRIETARY, ENTERPRISE-GRADE MARKETPLACE PLATFORM

INDUSTRY-LEADING PRODUCT MARGINS

LEADING COMPETITIVE POSITION SUPPORTED BY FIRST-MOVER ADVANTAGE

RAPIDLY-GROWING USER BASE WITH ATTRACTIVE DEMOGRAPHICS

EXPANDING NETWORK OF 4,000+ HIGH-QUALITY PREMIUM LIFESTYLE BRANDS 7

EFFICIENT, PROFITABILITY-FOCUSED COST BASE

COMPANY HIGHLIGHTS

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INTRODUCTION TO AHA

Snapshot of AHA (ASX:AHL)

• Founded in 2010 - the first major premium lifestyle marketplace

• Listed on the Australian Securities Exchange in July 2015, raising A$20m at a US$55m enterprise valuation

• 671k registered users1 and 60k customers

• 4,000+ brands, with an average of over 140 applications to join the marketplace per month (c. 40% approved)

• Wholly proprietary, enterprise-grade technology platform; architecturally-designed for scalability

• FY16 booked sales of $7.4m, representing growth of 105% on FY15

• FY16 average order value (AOV) of $180, with 41k orders placed during the year ($196 AOV in Q2 FY17)

• 27% of FY16 sales from repeat customers, with an average of two orders from each repeat customer at a $193 AOV

• FY16 gross margin of 39% (47% in Q2 FY17)

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Note: unless indicated otherwise, all financials in this presentation are provided in US Dollars1. Represents the number of AHA’s active e-mail subscribers. Total users in AHA’s database of 1.1M includes users who have opted out of regular e-mail communications (but who may still be customers)

and e-mail addresses that are no longer current

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INTRODUCTION TO AHA

• AHA is premium lifestyle: AHA is an online marketplace connecting buyers and sellers of high-quality,

premium lifestyle products

• AHA is curated: AHA selects the brands to join its marketplace, presents users with personalised product

recommendations, and presents digital content in a stylised, editorial selling environment that puts the focus

back on the product and experience

• AHA is highly scalable: AHA does not hold or own inventory. Instead it provides a ‘turn-key’ technology

platform for sellers to create storefronts, manage their own inventory, and sell directly to consumers

• Through AHA’s technology platform, the order and fulfilment process seamlessly integrates buyer and

seller in delivering a ‘hands-free’ transaction

• AHA is the merchant of record, managing and processing all transactions

including payments, orders, returns and managing logistics and

customer service

• AHA is unique: AHA generates product margins of up to 50% and gross profit

margins in excess of 40%, distinguishing it from mass online marketplaces

What is AHA?

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INTRODUCTION TO AHA

Business Accomplishments

• Acquired Kaptur• Fast Company: “Top Most

Innovative Companies”

2010-11

• Begin Building Enterprise Class Marketplace Platform

• Founded AHA• Launched Curator Network• Established Brand Credibility

in the Luxury / Premium Lifestyle industry

• $3M Angel FundingEV $8M

• New York Times “First to build discovery shopping”

• $2+M Series BEV $55M

• Ernst & Young:“Entrepreneur of the Year” Finalist

2,000 Brands

2,500 Brands

$6M SeriesAEV $20M

$12M Series BEV $53M

• Launched AHAProprietary Marketplace platform

• Multi-tenant & White-labelSupport

• Launched First MicrositeAHAnoir

• Prioritize focus on AHAMarketplace and BuildRetention Machine • Launched Accelerator

Program

• Business Process Automation• Build Personalization• Proprietary Topic Driven Discovery

20122013

1H

2013

2H

2014

1H

2015

1H

2015

JULY

2014

2H

• 145% growth in Q2 Sales• Record Thanksgiving Weekend• Launch of AHA Gifting App

2015

DEC

3,000 Brands

• 105% growth on FY15 sales• 2 x Acquisitions:- Bezar.com- Kaufmann-Mercantile.com

• Capital raising $15M and ASX listing EV $55M

• 2,700 Brands

2016

DEC

• 4,000+ brands• 671k registered users

2016

H1

AHA’s 5-year journey includes many accomplishments and learnings

Notable Milestones

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INTRODUCTION TO AHA

AHA is a unique proposition for consumers and independent brands

For Consumers

• AHA provides consumers with a convenient one-stop shop for thousands of independent brands: AHA brings together

more than 4,000 brands and over 20,000 well-designed, high-quality, premium products, each with a unique story

• Through careful selection of brands, curation, and AHA’s editorial voice, AHA provides consumers with a premium

online experience and confidence in the quality of products

For Brands

• Independent brands find it increasingly difficult to compete against large international brands. AHA allows them to

trade globally and gain exposure to a growing list of over 670,000 potential customers who care about their story

• AHA gives brands an alternative to the traditional distributors or retailers - both of which

require independent brands to give up a 70% margin

• AHA provides access to a customer base with a demonstrated interest in independent

and artisanal brands and charges an approximately 50% margin

• Less than half of all AHA brands have their own e-commerce platform or online presence.

AHA enables independent brands to scale up without establishing their own e-commerce

businesses, including by supporting brands with a variety of marketing initiatives and content

Zalto Wine Decanter. Founded by an Austrian family producing for over six generations, Zalto is loved by press and restaurateurs alike 8

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CURATED ONLINE MARKETPLACE - USERS

Curation is enabled by an analytics layer that tracks all user activity

Persona Description Gender Age Category Preference Price PointRepeat

Propensity% of Users

Goddess

Female seeking organic, all-natural, youthful/anti-aging, health &

fitness items; keen on beautifully-designed accessories & jewelry

Female / Male(80:20)

40-55Beauty, Wellness,

Accessories, JewelryLow-Medium Very High 27%

TimelessInvestor

Interested in high quality, well designed ‘aesthetically pleasing’

items built to last - ‘heirloom’ products rather than lower-priced

‘disposable’ alternatives

Male / Female (50:50)

30-55Home, Dining,

AccessoriesMedium-High High 46%

Form & Function

Predominantly male customer seeking home & tech-focused items that are beautifully designed and cross over home/lifestyle & tech

Male / Female(80:20)

27-35Home, Tech (with

High Design)Medium Medium 2%

TechEnthusiast

Male customer seeking tech gadgets without priority for the product’s

function over its design (“Touch of Modern” type customer)

Male 27-35 Tech (Gadgets) Medium Low 12%

Design Maven

Younger customer, mixed gender, seeks contemporary/modern art

and home accessories

Male / Female(50:50)

20-35Contemporary Home

& ArtLow-Medium Medium 13%

• Based on their activities on AHA’s platform, users are associated with products and ultimately with personas

• AHA has identified five user personas, based on their activity patterns, category and product preferences, and

demographics

• AHA’s users are united by an interest in design, aesthetics, and willingness to pay a premium for quality products

• AHA’s two main personas, Goddess and Timeless Investor, are particularly high-quality users: typically older and with

disposable income, a high propensity to repeat, preferences for high-margin categories, and lower price sensitivity

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CURATED ONLINE MARKETPLACE - USERS

• AHA creates a curated experience for users by:

• Discovering, gathering and presenting digital content in a stylised, editorial environment that puts the focus

on the product and experience

• Curating products, or presenting users with the most relevant products that are likely to be of interest and

result in purchases

• AHA currently has two main forms of curation:

Curated product selections

• 2-3 times per week, merchandising and editorial teams select products for each persona, create

a story for the products, and send product selections in personalised emails to AHA’s users

• Periodically, AHA sends ‘guest curator’ email newsletters in which a high-profile curator

chooses his or her top 10 items with a personal note on each item

Personal shopping

• Customers have access to a personal shopping ‘concierge’ service via telephone, email, or

chat to assist in selecting items within a specified persona, category, or price point

Personas are used to provide a curated experience

Massimo Farina’s limited edition, handcrafted New Medieval Armchair is a royal, unique design that combines both modern concepts

with natural shapes and classical elements 10

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CURATED ONLINE MARKETPLACE - USERS

• Since inception, AHA has logged all user data as structured content for analytics

• User attributes include source of acquisition, persona, gender, location, price affinity, category affinities, product

and brand affinities, browser behaviour, purchase history, and bookmarked items

• AHA is currently in final testing of new features that utilise its user data to significantly extend existing user-level

personalisation, with AI-based product recommendations across a range of channels:

• Email: extending existing segmentation and personalization to utilise all of user’s attributes

• Facebook / social platforms: implementing re-marketing ads that hyper-target using user state,

RFM (customer value), category affinity, retargeting, persona-based segmentation

and look-a-likes

• AHA marketplace: implementing product recommendations via the homepage feed,

product detail pages and ad banners across the site that hyper-segment to show

recommended products on an individual user level, taking into account items in the

users’ cart, browsing history, etc.

• These features are expected to significantly enhance the user experience, while improving

conversion and retention

AHA is significantly enhancing curation across the platform

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boundaries with its tilt design that seems to defy gravity 11

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CURATED ONLINE MARKETPLACE - BRANDS

• By solving problems of discovery and access to market that are specific to independent manufacturers of lifestyle products, AHA

achieves significantly higher product margins than online marketplaces in other segments

• It is difficult for lifestyle products to establish recognised brands:

• Consumers tend to remember clothing and fashion brands, but not lifestyle products, given

the infrequency with which they are purchased

• The only way for brands to be discovered offline is in a retail environment

• In the United States, ready access to retail distribution for lifestyle products is restricted:

• Lifestyle is dominated by a small number of mono-brand, private-label homewares stores

(Williams Sonoma, West Elm, Pottery Barn, etc.)

• Luxury retailers predominantly sell apparel, as inventory can be moved faster

• Beauty is an oligopoly: there are few multi-brand retailers, and independents struggle to secure space in department

stores

• Independent designers and artisans typically require a distributor (15%+ margin) to provide access to boutiques (50%+ margin)

• Those that have attempted direct online sales have typically failed to attract traffic (as brands are not recognised)

• AHA is an attractive model for brands, in providing discovery and access to customers at a margin that is substantially lower

Cyril Brizard & Company crafts highly functional, but quietly fine living accessories. Each piece is hand crafted in the USA and guaranteed for a lifetime

AHA’s focus on lifestyle offers significant advantages

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CURATED ONLINE MARKETPLACE - BRANDS

AHA offers brands an out-of-the-box e-commerce solution

End-to-end solution, including site design, marketing tools,merchandising, analytics, customer service and global shipping to over 220 countries

Fast, self-service on-boarding in under 24 hours

Customizable digital storefront

Content solutions provided, including editorial design and email communication

Self-managed for brands to control consumer experience

For the majority of brands featured, AHA is their primary direct-to-consumer online channel

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CURATED ONLINE MARKETPLACE - BRANDS

AHA’s offering for brands

CUSTOMIZABLE DIGITAL STOREFRONT

END-TO-END LOGISTICS + CUSTOMER SERVICE + GLOBAL

SHIPPING

BRAND PORTAL + CUSTOM ANALYTICS + ORDER MANAGEMENT SYSTEM

NETWORK EFFECT OF CURATORS, PUBLISHERS + OTHER BRANDS

EDITORIAL CONTENT, EMAIL PROMOTIONS + CRM

ONLINE MARKETING, AFFILIATE NETWORK, AND PR

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SCALABLE ENTERPRISE-GRADE TECHNOLOGY PLATFORM

AHA’s platform has been designed to support a large-scale marketplace

Scalability

Extensibility

Data-Driven

Enterprise-Grade Software

Scalable Architecture

Diminishing Cost Structure

Service-Oriented Architecture

Lightweight, Fast to Market

White-labeled APIs

Collaborative Filtering & Machine

Learning

Personalized & Targeted

Experience

Reporting, Analytics &

Insights

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AHA is engineered to enterprise-grade standards

SCALABLE ENTERPRISE-GRADE TECHNOLOGY PLATFORM

• Underlying AHA’s capacity to scale is technology and a setup built to a standard typically used by Fortune 500

companies that are running mission-critical systems

• AHA is built using Java EE (Enterprise Edition), runs on Linux on Amazon Web Services, and runs enterprise

grade web and app servers (Apache and Tomcat, respectively)

• AHA is built with redundancy and fault tolerance so that in case of a hardware, software or environmental

failure the site never goes down and users are seamlessly migrated to a healthy server configuration in case

of a technical issue

• The business processes that are in place for administration, monitoring, notification, and chain of

command for error handling meet leading industry standards

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AHA has a highly-scalable architecture

SCALABLE ENTERPRISE-GRADE TECHNOLOGY PLATFORM

Scalable Architecture

• AHA’s various sub-systems are logically combined together to form an application (app) server and communicate

with each other via APIs or web-services protocols

• As such, if AHA needs to scale one app server because of a certain spike in requests, AHA can scale that specific

app server using its pre-built image in minutes, rather than having to scale the entire platform proportionally

• For example, the app server that is responsible for delivering the catalogue and certain other read-only

components of the system is an independent server group compared to those support ecommerce transactions.

Each can be scaled up or down independently of the other, to match utilisation of the sub-system

Diminishing Cost Structure

• AHA has built most of the core e-commerce marketplace components

• Since the software is proprietary and designed to scale, there is no additional software cost to grow the business;

the cost of accommodating growth only comes in the form of additional, cheap hardware

• This provides AHA with a diminishing cost structure as the business scales

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AHA can rapidly roll out additional micro-sites

SCALABLE ENTERPRISE-GRADE TECHNOLOGY PLATFORM

AHAlife.com AHANoir.com

Physical Concept StoreKaufmann-Mercantile• AHA’s platform has been designed to support multiple

properties from a single stack, via an omni-channel web

translation layer

• Each is the same website, with the appropriate user

experience constructed by the web layer depending on

the URL requested

• The platform currently supports 5 properties

• ahalife.com

• ahanoir.com

• kaufmann-mercantile.com

• AHA iOS Mobile App

• AHA’s Physical Concept Store (POS system)iOS Mobile App

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AHA has delivered strong revenue growth over the last three years

RECENT PERFORMANCE AND INITIATIVES

Quarterly Booked Sales ($m) and Quarter-on-Quarter Growth

Q1 Q2 Q3 Q4

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0.30.6

1.1 1.3

0.51.1

2.82.3

0.5 0.7

1.6

0.71.0

1.7+85%

+75%+18%

+110%

+144%

(17%)

+23%

+140%

+49%

+66%

FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY14 FY15 FY16

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RECENT PERFORMANCE AND INITIATIVES

AHA has significantly reduced operating cash outflow

• Though revenue growth has slowed as AHA has reduced investment in unprofitable customer acquisition channels, AHA’s focus is on acquiring and converting profitable customers

• AHA’s initiatives have significantly improved profitability, reducing operating cash outflow by $200-300k per month compared with similar levels of revenue in the first half of 2016

20Note: Operating cash outflow is defined as EBITDA less working capital. Total cash outflow includes non-operating items (bad debts, taxes, listing and directors’ fees), capex, non-operating audit fees, and parent-company expenses

$4.1M$4.5M

$5.1M

$5.9M$6.2M

$6.5M$6.8M

$7.1M $7.3M $7.4M $7.4M $7.4M $7.5M $7.4M $7.2M$6.9M

$0.5M

$0.6M

$0.7M$0.8M

$0.6M$0.6M

$0.5M $0.5M $0.5M

$0.4M

$0.3M$0.3M

$0.2M $0.3M $0.2M

$0.1M

Sep

2015

Oct

2015

Nov

2015

Dec

2015

Jan

2016

Feb

2016

Mar

2016

Apr

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May

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Jun

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2016

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2016

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LTM Booked Sales

Operating Cash Outflow

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FINANCIAL INFORMATION

In H1 FY17, AHA has focused on investment in profitable revenue channels and implementing a range of operational initiatives, which has significantly improved margins and reduced operating cash outflow

Booked SalesManagement has expanded investment in customer acquisition channels with higher return on investment and scaled back on channels with lower returns. Trimming unprofitable strategies within search engine marketing has led to a reduction in the overall growth of booked sales, with $2.3M in Q2 down 17% on PCP, but the higher quality of sales is reflected in a lift in AOV from $188 to $196 in Q2 FY17

Product MarginStricter on-boarding criteria for new merchants and efforts to renegotiate better margins with legacy merchants have improved overall product margins to 48.2%

Offers and DiscountsIn FY16, AHA aggressively employed promotional offers as a means of customer acquisition. In H1 FY17, AHA rationalised and targeted its offers, reducing them from 15% in Q2 FY16 to 8% of revenue in Q2 FY17. In addition to improving gross margin, AHA’s customer base is now less price-sensitive

Gross profitThe combined effect of a higher AOV, better product margins and reduced offers has been an improvement in gross profit from 38% in Q2 FY16 to 47% in Q2 FY17

Cost-saving strategiesAHA has implemented cost-saving initiatives that include:• Shipping costs reduced from 10% to 9% of revenue• Overheads reduced by 50% through a reduction in unprofitable paid marketing

strategies ($0.8m reduction in Q2 FY17) and utilizing technology for process automation

Cashflow and cash on handAHA’s focus on delivery of operational efficiency and generating more profitable booked sales has significantly reduced cash outflows from approximately $0.5M per month in H2 FY16 to $0.3M per month in H1 FY17, with a record of an outflow of only $0.1M in December

Strategies initiated in May and June 2016 have continued to yield further improvements in Q2, with the net cash outflow from operating activities in Q2 FY17 ($0.6M) an improvement of 65% on Q2 FY16 ($1.8M)

AHA’s closing cash balance at December 31, 2016 was $2.5M

Discussion of financial performance

21Note: unless indicated otherwise, all financials in this presentation are provided in US Dollars

$000s Audited Audited Unaudited

June year-endFY15 FY16 1H17

Booked Sales 3,598 7,359 3,639

Product Margin% 46.3% 47.5% 48.2%

Product Not Yet Shipped (12) (57) (11)

Cancellations (281) (515) (194)

Gross Revenue 3,305 6,786 3,435

Returns (243) (423) (102)

Offers & Discounts (577) (1,062) (280)

Net Revenue 2,485 5,301 3,052

COGS (1,538) (3,231) (1,631)

Gross Profit 947 2,071 1,421

GP% 38.1% 39.1% 46.6%

Other Income 222 79 27

Expenses – Fixed (4,952) (7,835) (2,544)

Expenses – Variable (529) (785) (391)

Operating Loss (4,312) (6,470) (1,487)

Cash on Hand 549 4,529 2,539

Operating Cash Flow (4,370) (5,424) (1,479)

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FUTURE STRATEGY

AHA is pursuing organic and strategic options to deliver growth

ORGANIC

CUSTOMER LEVERS

• Search: revised, data-driven SEM/SEO strategy

• Social: Facebook/Polyvote, Pinterest, etc.

• Investment in PR

RETENTION LEVERS

• Offline loyalty program and rewards

• Email program and triggers

• User targeting and segmentation

• Customer outreach

• Retargeting

• Mobile gifting app

STRATEGIC

• Strategic partnerships with media companies that have

AHA’s target customer (currently in discussions with

multiple parties)

• Strategic partnerships to introduce users to the platform

(e.g. with department stores that sell mostly luxury

apparel, to monetize users by extending to them AHA’s

broader catalogue)

• Opportunistic acquisitions of sub-scale businesses

capable of being transitioned to AHA (AHA has identified

targets with attractive user bases)

• International focus on new markets such as China/HK,

Australia and Canada

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