ADSLOT LTD. — AGM Information 2019

Nov 21, 2019

ADSLOT 2019 AGM CEO PRESENTATION.

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2019 IN REVIEW.

In FY19, the Company focused on three key strategic priorities:

• Return Symphony business to growth via regular market deployments (grow Licence Fees);

• Return Adslot Media business to growth by focussing on the US market (grow Trading Fees); and,

• Reduce operating costs.

During the year we delivered on these objectives:

• 5 new Symphony markets deployed during the year with a corresponding growth in license fees;

• Trading activity secured from large US advertisers including AT&T and General Motors;

• Additional tier 1 publishers added to the market in the US and UK;

• 10% reduction in operating costs without impact on clients or core product development.

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THIS HAS RESULTED IN IMPROVED FINANCIAL PERFORMANCE.

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Group Revenue from Trading Licence Fee Trading Fee
Revenue Continuing Technology Revenue Revenue
Operations Revenue
$10.272M $9.894M $8.038M $6.688M $1.370M
Up 28% Up 40% Up 56% Up 49% Up 104% vs PCP
Thousands
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Note: For the current period, Group Revenue includes Revenue from Continuing Operations ($9.894M) and Grant Proceeds ($0.377M)

OUR PROGRESS.

REVIEW: BUSINESS UNITS & REVENUE MODELS.

Core

Primary Revenue Model

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A global digital media marketplace, enabling media buyers and sellers to trade premium display advertising on a targeted, forward-guaranteed basis (direct buys).

A global enterprise SaaS platform, providing digital media buying workflow solutions to the world’s largest advertising agencies.

Trading Fees – a percentage of all media spend on the platform is collected from the publisher. Percentages vary from 5% (Adslot tech fee) to 15% (includes Adslot demand fee).

Licence Fees – recurring subscription revenue, with guaranteed minimums (fixed licence fees) and variable licence fees for each market based on value of media managed (by tier).

Non-core

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An Australian-based digital marketing services business, providing website design, hosting, search engine optimization (SEO), search engine marketing (SEM) and social media marketing services to SMBs.

Services Fees – fees charged on hourly or fixed basis for design development or consulting; recurring fees charged for SEO, Web hosting and marketing services at package rates.

ADSLOT MEDIA.

ADSLOT MEDIA A PREMIUM DIGITAL MEDIA MARKETPLACE.

As with other online marketplaces, Adslot Media requires the following 3 components:

1. Sellers offering premium inventory for sale.

2. A platform that efficiently facilitates the transactions.

3. Large buyers who are using the marketplace as part of their buying repertoire.

1. WE’VE BUILT A COMMUNITY OF PREMIUM PUBLISHERS .

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*partial list

The Adslot Marketplace has attracted Tier 1 publishers in the US, UK and Australia Approximately 50% of the Comscore Top 50 in the US market are integrated on to the platform Additional premium publishers being consistently added

2. OUR PLATFORM HAS BEEN VALIDATED.

• More than $25m of premium media has been traded via the Adslot Media platform.

• Trading activity (number of orders) has continued to grow QoQ.

• Media purchased on behalf of more than 300 advertisers including some of the world’s best known brands including AT&T, General Motors, and Verizon.

• Repeat trading from all major demand sources.

• Trades received by over 150 different publishers.

• Active trading in major markets around the world – US, UK, Europe.

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Adslot Media Trading Activity (No. of Orders)
350
300
250
200
150
100
50
0
Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20
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2. OUR PLATFORM HAS BEEN VALIDATED.

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“[working with Adslot] has been going really well, not just with the additional revenue but it’s the first project I’ve worked on in 10 years of AdOps where everyone is happy.”

Jessica Barrett Global Head of Programmatic

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“Adslot is an important partner for Thomson Reuters, helping us facilitate the booking process with many clients with independent and major agencies. An ergonomic platform and great customer support have been key to making our relationship successful.”

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“In the course of rolling out our AG offer to publishers Adslot has proven a reliable and flexible partner that shares a long-term approach similar to ours of establishing a market offer beneficial to clients, publishers and agency.”

Georg Gartlgruber Head of Trading, Austria

Guillaume Pérlé Head of Programmatic EMEA

3. OUR CHALLENGE IS TO 3. OUR CHALLENGE IS TO BRING BUYERS TO THE MARKETPLACE AT SCALE. BRING BUYERS TO THE MARKETPLACE AT SCALE.

• To bring scale to the Adslot Media marketplace the company is pursuing a “top down” sales strategy.

• For the post 6 months our focus has been on pursuing the 6 largest global agency holding companies – WPP, The Interpublic Group, Omnicom, Dentsu, Havas, Publicis.

• These agency holding companies:

• Control approximately 60% of global media spending;

• Are well positioned to adopt technology at an enterprise level;

• Are looking for ways to maintain direct relationships with publishers;

• Have data assets that cannot currently be activated in a forward guaranteed environment.

• Executing Master Service Agreements (MSAs) with the holding companies enables us to provide access to our platform to all users across their media and trading divisions.

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AGENCY HOLDING COMPANY OUR PROGRESS.

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Key
MSA Signed contracting
entities
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Rank Hold Co Media Division Media Agencies Trading Desks and Data
1
2
3
4
5
6
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• *By Global Media Billings

**Not complete list

DEMAND STRATEGY OUR PROGRESS.

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We are starting to see considerable success with our Agency Holding Company strategy

• MSA executed with Cadreon, trading division of the Interpublic Group

• 2 additional MSAs in late stage legal review

• First trade received from 1 x Holding Company under an interim framework prior to MSA

• Pilot activity for 1 x Holding Company scheduled for the December quarter.

• Discussions underway with remaining Holding Companies

We are also seeing success with independent agencies

• MSA executed with Media Storm, 2[nd] largest independent agency in the US.

• Strong trading volumes from mobile specialist agency, Mobkoi (UK / US)

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HOW IS THE PCP + CURRENT 67% [ Total number of trades quarter to date QUARTER vs. QoQ Performance ] TRACKING TO DATE? +2% + PCP 42% [ Total value of trades quarter to date vs. QoQ Performance ]

+137% PCP

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LEVERAGING DATA WILL DRIVE FURTHER ADOPTION.

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Existing
Partner
In
discussion
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Following release of Adslot’s Audience First capability, the ability to integrate advertiser’s proprietary customer data for targeting has become a key driver of platform adoption.

• Current partnership with Lotame enables most advertiser audiences to be integrated for campaign targeting and forecasting.

• Partnerships and integrations with other prominent Data Management Platforms (DMPs) will improve the speed of onboarding advertiser data and provide additional channels for securing advertiser budgets.

SYMPHONY PROGRESS UPDATE.

2020 THE YEAR AHEAD.

OUR OBJECTIVES FOR 2020.

For FY 2020, the Company will focus on the following key strategic priorities:

Adslot Media:

• Secure MSAs with remaining agency holding companies

• Activate contracted agencies to drive strong growth in trading fees

• Secure additional premium publishers to grow the quality, quantity and variety of marketplace inventory

• Develop partnerships with key data providers

Symphony:

• Pursue further market deployments for Symphony with existing and prospective clients

Operations

• Maintain focus on cost base of the business

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Important Notice & Disclaimer

This Presentation contains summary information about Adslot Limited ABN 70 001 287 510 ( ADJ or the Company ) and its activities as at 22 November 2019. The information in this Presentation is of a general nature and does not purport to be complete or comprise all information which a shareholder or potential investor may require in order to determine whether to deal in ADJ shares. It should be read in conjunction with ADJ’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

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This Presentation is not a prospectus, product disclosure statement or other offering document under Australian law, or any other law. This Presentation is for information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. In particular, this Presentation has been prepared for release in Australia and is not for distribution or release in the United States. This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States (or any other jurisdictions).

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This Presentation is for information purposes and does not constitute financial product, investment, legal, taxation or other advice or a recommendation to acquire ADJ shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the available information, having regard to their own objectives, financial situation and needs and seek financial, legal and taxation advice appropriate to their jurisdiction. The Company is not licensed to provide financial advice in respect of its shares. Cooling off rights do not apply to the acquisition of ADJ shares.

Past performance

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Investment risk

Future performance

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Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. This Presentation contains such statements, which are subject to risk factors associated with an investment in ADJ. The Company believes that these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and other important factors that could cause actual results, performance or achievements of ADJ to be materially different from future results, performances or achievements expressed or implied by such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Presentation.

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No representation or warranty, express or implied, is made as to the fairness or correctness of the information, opinions and conclusions contained in this Presentation. To the maximum extent permitted by law, none of the Company and its related bodies corporate, or their respective directors, employees, agents or advisers, nor any other person, accepts liability for any loss arising from the use of this Presentation or its contents or otherwise arising in connection with it, including without limitation, any liability from fault or negligence on the part of the Company, its related bodies corporate or any of their respective directors, employees, agents or advisers.

Financial data

All references to dollars ($) and cents are to Australian currency, unless otherwise stated. Market and industry data

This Presentation contains data relating to the industries, segments and markets in which the Company operates ( Industry Data ). Unless otherwise stated, this information has been prepared by ADJ using both publicly available data and its own internally generated data. ADJ’s internally generated data is based on estimates and assumptions that the directors and management of the Company believe are reasonable. In addition to the Industry Data, the Presentation contains third party market data, estimates and projections. There is no assurance regarding the accuracy of such information and the third party information, and the Industry Data, has not been independently verified by ADJ.

An investment in ADJ shares is subject to investment and other known and unknown risks, some of which are beyond the control of the Company. ADJ does not guarantee any particular rate of return or the performance of the ADJ shares.

Thank You.

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