ADSLOT LTD. — Investor Presentation 2013

Sep 12, 2013

Adslot to Acquire Facilitate Digital

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Investor Presentation September 2013

Adslot to Acquire Facilitate Digital

Executive Summary

Company Profiles Strategic Rationale Acquisition Benefits Summary Of Deal Terms

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Executive Summary

• Adslot to acquire Facilitate Digital via a Scheme of Arrangement.

• The combined business will be one of the first in the world to bring together supply at scale and demand at scale into a single media trading platform.

• By integrating the companies digital workflow and trading technologies, over A$800m of display ad spend from Facilitate Digital agencies will be available to trade directly with Adslot publishers.

• The acquisition will create an expanded global footprint, including a sales organisation encompassing Sydney, Melbourne, New York, San Francisco, London, Hamburg, Shanghai and Auckland.

• Enlarged cash position and access to immediate compliance related cost synergies.

• Facilitate Digital shareholders to hold 28 per cent of the enlarged Adslot.

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Adslot

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• Leading global provider of premium display media trading platform

• Founded in 2010

• Launched first premium media trading platform Q4 2010

• Over $100m traded and 5,000 advertisers transacted through Adslot

• Customer footprint : North America, UK, Europe and APAC

• Since February 2010, invested/acquired $25m in technology

• ASX Listed (ASX:ADJ)

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Facilitate Digital

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• Leading global provider of online media workflow & trading technology for media agencies.

• Customer base includes some of the world’s largest media agencies and groups, such as Mediacom, Mindshare, Media Edge CIA, Zenith Optimedia and Mediabrands.

• Facilitate Digital’s workflow & trading platform – Symphony – is purpose built to meet the needs of large, sophisticated media buyers (media agencies).

• Over A$800m of online media spend is processed via Symphony each year and growing.

• Customer footprint encompasses Australia, NZ, Asia, Europe & US.

• ASX listed (ASX:FAC) since 2007

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Strategic Rationale

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• Global online advertising will be $162B by 2015

Digital Ad Spending Worldwide, 2010-2016 Billions, % of total media ad spending

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Source
:
eMarketer,
Dec
2012

• Global online display advertising will be $48B by 2014

2010:

$22B

2014:

$48B

CACR 2010 – 2014:

15.11% pa

Source: Zenith OptiMedia. June 2012�

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• 88% of revenue is derived from ‘premium’ display

Global Revenue and Impressions

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10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Revenue $
Impressions
Publisher Direct Exchanges
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Source: Evercore Partners May 2011

• The $35b premium display advertising market has no single, recognised, scalable platform of record for buying and selling

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• The selling process for publishers is manual, slow and expensive

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Current State

• 47 steps

• Highly iterative workflow

• Multiple documents created multiple times

• • Almost entirely manual

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Premium display sales cost publishers 1600 hours on average to process each month

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Pre- Planning 598 Hours

Campaign Planning

518 Hours

Flighting

168 Hours

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Maintenance 128 Hours

Post-Campaign Total� 188 Hours 1600 Hours�

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• The buying process for agencies is manual, slow and expensive

Current State

• 42 steps

• Highly iterative workflow

• Multiple documents created multiple times

• Almost entirely manual

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The trading process for premium display media is unsustainable

• 28% of budgets lost in admin

• costs across buy and sell sides

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Buyer

VS

2% for Television

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Buyer
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• Adslot Vision:

• To become the world’s leading provider of premium display media trading technology.

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• Facilitate Digital Vision: To be the workflow and trading technology of choice for media agencies globally.

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• Adslot Supply + Facilitate Demand = Huge Opportunity

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$800m in display 650+ Publishers Symphony agency customers Adslot supply customers

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• Supply attracts demand and demand attracts supply

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Demand drives Supply drives
supply adoption demand adoption
Demand Supply
Solution Solution
Faster Faster
Growth Growth
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$20B display growth opportunity: media consumption exceeds spend

A $65B gap

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Premium display’s share is worth
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$20B

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Media Consumption Media Spend
20%
30%
70% 80%
Offline media (all forms) Online Media (all forms)
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Media Consumption

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Transactional RFP’s

The Adslot Sweet Spot

Standard deals represent approximately two thirds of total display spend and is where technology can automate and add the most value.

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80%
20%
Remnant
Impressions
Revenue $
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Moving transactional sales from high touch to low touch.

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High Value
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Custom
Transactional Transactional
Low Touch High Touch
Remnant
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And
growing
the pie.
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Low Value

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Programmatic direct: transacting direct sales, efficiently

Programmatic Automation Efficiency Integration Protocols

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Direct
Known Future Number of Known
Position Dates Impressions Spend
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Benefits of the Acquisition

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Benefits for Adslot & Adslot Shareholders

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• A more rapid execution of its strategic vision

• Access to advertising demand at scale (over A$800m per annum)

• Ownership of a proven, incumbent buy side technology (Symphony)

• Greater scale, including a combined sales organisation encompassing Australia, New

• Zealand, China, Germany, UK and US

• Enlarged Group cash position and access to immediate compliance related cost synergies

• • Based on FY13, a 111% increase in Group revenue

• Based on FY13, a A$1.18m positive contribution to Group EBITDA

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Benefits for Facilitate Digital & Facilitate Digital Shareholders

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• A more rapid execution of its strategic vision

• Real time access to the premium display inventory of more

• than 650 publishers across the globe

• Greater scale, including a combined sales organisation encompassing Australia, New Zealand, China, Germany, UK and US

• • Enlarged Group cash position and access to immediate compliance related cost synergies

• Greater liquidity for shareholders

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A Global Sales Footprint

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Adslot: San Francisco, New York, London, Melbourne Facilitate: Sydney, New York, Hamburg, Shanghai, Auckland

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Operational Scale

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Sales Larger global Cost Agency Buy/Sell
support player synergies Relationships DNA
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Summary of Key Terms

• Facilitate Digital shareholders to hold 28% of the merged company

• Acquisition via a scheme of arrangement

• Facilitate Digital CEO Ben Dixon will undertake a staged transition to the role of Group Chief Operating Officer, and will also become an Adslot Executive Director

• Facilitate Digital’s largest shareholder Geoff Dixon will join the Adslot board as Non Executive Director

• Deal values Facilitate Digital shares at A$0.067 per share

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twitter: @adslot brendan.maher@adslot.com twitter: @facilitate ben.dixon@facilitatedigital.com

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