ADSLOT LTD. — Annual Report 2021

Aug 29, 2021

FINANCIAL YEAR 2021 RESULTS.

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FY21 STRATEGIC PRIORITIES.

During FY21, the Company continued its focus on a number of key strategic priorities:

• Activating currently contracted agency groups to drive growth in Adslot Media trading fees;

• Pursuing further market deployments for Symphony with existing agency clients; and

• Maintaining a focus on cost management.

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FY21 EXECUTIVE SUMMARY.

• Adslot Media delivered its highest annual TTV of $28.3M* in FY21, an 82% increase on PCP

• Adslot Media continued to sign MSAs, activate existing MSA partners, and implement new partner marketplaces

• Symphony licence fees grew by 10%+ HoH

• Symphony activated for Omnicom Media Group in The Netherlands, diversifying the Company’s client footprint

• Minimum three-year extension of global GroupM Symphony contract signed, with Adslot Media trading terms baked in (allowing GroupM to use the Adslot Media marketplace in any market where Symphony is deployed)

• Continued focus on cost management with net operating cash outflows reducing to $0.3M (vs $3.4M operating cash outflows in FY20) with cash at year end of $6.8M ( vs $6.2M at FY20 year end)

• The Company successfully completed a $4.0M capital raising supported by key major shareholders during FY21

• TTV (Total Transaction Value) represents the net value of media traded on the Adslot Media platform, including new bookings and any adjustments or cancellations made to previous bookings for a nominated period. TTV was previously reported by the Company as “the value of media traded on the Adslot Media platform”

Note: Half on Half (HoH) growth rates referenced are calculated against the last 6 months, being 6 months to 31 December 2020 Prior Corresponding Period (PCP) growth rates rates referenced are calculated against the prior financial year, being 12 months to 30 June 2020

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FY21 FINANCIAL RESULTS.

Licence Fee Revs down 28%, Trading Fee Revs up 41%

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Group Revenue from Trading Licence Fee Trading Fee
Revenue Continuing Technology Revenue Revenue
Operations Revenue
$9.623M $8.233M $6.434M $5.154M $1.281M
-9% -16% -21% -28% +41% vs PCP
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OPERATING COSTS, EBITDA AND NPAT.

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Operating EBITDA NPAT
Costs Loss Loss
$12.045M ($2.430M) ($6.281M)
+3% -81% -62% vs PCP
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Note: FY20 EBITDA loss and NPAT loss includes impairment of Goodwill of $10.0M and once off provision for FY16 R&D Claim of $1.528M.

COMPARED TO ADJUSTED FY20 EBITDA & NPAT.

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Operating Adjusted Adjusted
Costs EBITDA Loss NPAT Loss
$12.045M ($2.430M) ($6.281M)
+3% +103% +23% vs PCP
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Note: Adjusted EBITDA loss and Adjusted NPAT loss is after adding back impairment of Goodwill of $10.0M and once off provision for FY16 R&D Claim of $1.528M to FY20 results

REVENUE SEGMENTS.

Three main revenue sources:

• Licence Fees generated primarily from Symphony (but also from Adslot Media ) ;

• Trading Fees generated primarily from Adslot Media (but also from Symphony ); and,

• Service Fees derived mostly from SME customers of the Company’s Webfirm division, but also from services provided to Symphony and Adslot Media customers.

Strategic Revenue

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Licence Trading
Fee Fee
Revenue Revenue
Trading
Technology
Revenue
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Non-strategic Revenue

Licence Fees and Trading Fees combine to form Trading Technology Revenue .

This is the strategic revenue that the business is focused on.

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Services
Revenue
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LICENCE FEE REVENUE.

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-28% vs PCP
Licence
Fees
$5.154M
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Licence Fees declined 28% on prior corresponding period (PCP)

due to renegotiation of GroupM Symphony MSA including:

• Temporary fee reductions and market tier caps in the half year to 31 December 2020 due to COVID-19;

• Reduction in non-market related development fees with a corresponding reduction in costs.

TRADING FEE REVENUE.

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+41% vs PCP
Trading
Fees
$1.281M
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• Note: Trading Fee revenues are invoiced and recognised in the Company accounts in the month(s) in which the advertising activity is published, and on a pro-rata basis where activity falls over multiple months.

• The Total Transaction Value, which the company announces in quarterly activity reports, reflects the value of all media traded in the relevant quarter, regardless of the dates in which the activity runs.

TRADING TECHNOLOGY REVENUE.

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-21% vs PCP
Trading
Technology
$6.434M
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• Trading Technology revenue (Licence Fees and Trading Fees combined) declined by 21% on prior corresponding period (PCP).

• The decrease in Trading Technology revenue was driven by a reduction of $2.053M (-28%) in Licence Fees and a growth of $0.372M (41%) in Trading Fees.

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SERVICES REVENUE.

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+7% vs PCP
Services
$1.791M
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• The majority of services revenue comes from the Company’s Webfirm services division ($1.498M).

• Non-Strategic Services revenue of $1.791M represents a 7% increase on PCP.

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OPERATING COSTS.

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+3% vs PCP
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Operating
Costs
$12.045M
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• Total Operating costs of $12.045M were 3% higher on prior corresponding period (PCP).

• Operating Costs are Total Expenses excluding Depreciation and Amortisation, interest expenses, once off R&D Provision, goodwill impairment and taxes.

OPERATING COSTS.

• Total Operating costs of $12.04m for the year were 3% higher on PCP.

• Operating Costs are Total Expenses excluding depreciation and amortisation, interest expenses, once off R&D provision, intangible impairment and Taxes.

• Employee benefits expense were flat on PCP ($7.63m).

• Cost management continues to be a focus.

• Cost reductions have been targeted to ensure:

• No disruption to new client activation or existing client relationships;

• Continued investment in strategic and revenue-generating product development.

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EBITDA.

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-81% vs PCP
EBITDA
Loss
($2.430M)
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• Substantial improvement in EBITDA Loss.

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Note: FY20 includes once off impairment of Goodwill of $10.0M and once off provision for FY16 R&D Claim of $1.528M. EBITDA loss after excluding those once off items was $1.197M.

COMPARED TO FY20 ADJUSTED EBITDA.

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+103% vs PCP
Adjusted
EBITDA
Loss
($2.430M)
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• Increase in Adjusted EBITDA loss.

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Note: Adjusted EBITDA is after adding back impairment of Goodwill of $10.0M and once off provision for FY16 R&D Claim of $1.528M to the Unadjusted EBITDA loss ($12.725M)

NPAT.

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vs PCP
-62%
NPAT
Loss
($6.281M)
•
NPAT Loss decreased by 62% on
PCP to $6.281M.
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Note: FY20 includes once off impairment of Goodwill of $10.0M and once off provision for FY16 R&D Claim of $1.528M. NPAT loss after excluding those once off items was $5.090M.

COMPARED TO ADJUSTED FY20 NPAT.

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vs PCP
23%
Adjusted
NPAT
Loss
($6.281M)
•
Adjusted NPAT Loss increased by
23% on PCP to $6.281M
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Note: Adjusted NPAT loss is after adding back impairment of Goodwill of $10.0M and once off provision for FY16 R&D Claim of $1.528M to the Unadjusted NPAT loss ($16.618M) in FY20.

CASH RECEIPTS, OPERATING CASH FLOWS AND YEAR END CASH POSITION.

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Net
Operating
Cash Receipts Cash
Cash
$ 13.556M Outflows $6.827M
($0.293M)
-30% -91% +11% vs PCP
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STRATEGIC PRIORITIES FOR THE COMING YEAR.

During FY2022, the Company will continue its focus on the following strategic priorities:

• Scale trading on Adslot Media partner marketplaces in the US and UK;

• Further activate and scale trading from contracted agency groups;

• Explore strategic partnerships with industry players to extend Adslot Media product capabilities;

• Deploy additional Symphony markets with new and existing clients during the second half of the FY2022;

• Deploy integrated Symphony - Adslot Media platform to additional Symphony markets; and

• Maintain a focus on cost management.

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DISCLAIMER.

The information contained in this presentation is given in good faith and has been prepared from information believed to be accurate and reliable. The information presented does not take into account your individual financial circumstances and it is not designed to be a substitute for specific financial or investment advice or recommendations and should be relied upon as such. You should consider talking to your financial adviser before making an investment decision. So far as the law allows, Adslot Ltd excludes all liability for any loss or damage whether direct, indirect or consequential. This presentation includes forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. Such forward-looking statements are not guarantees of future performance. They involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Adslot Ltd, and which may cause actual results to differ materially from those expressed in this presentation.

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THANK YOU.

Please direct any questions to: investor.relations@adslot.com