ADSLOT LTD. — Investor Presentation 2016

Aug 30, 2016

• Adslot Ltd 2016 Results Presentation and Outlook

31[st] August 2016 (ASX:ADJ)

Highlights – Full Year to 30 June 2016

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Trading Group
EBITDA
Technology Revenues Revenue
+ 59% + 19% + 11%
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Note: Growth rates referenced are calculated against the previous corresponding period, being 12 months to 30 June 2015.

Key Results – Full Year to 30 June 2016

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+19% +19% +10% +11% +12%
Revenue From Total Operating EBITDA NPAT
Continuing Operations Income Costs
$7.735m $8.514m ($11.699m) ($3.260m) ($8.138m)
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1. Growth rates referenced are calculated against the previous corresponding period, being 12 months to 30 June 2015. 2. Operating Costs are Total Expenses excluding Depreciation and Amortisation expenses.

Key Results – Full Year to 30 June 2016

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+19% +19%
Revenue From Total
Continuing Operations Income
$7.735m $8.514m
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• Revenue from Continuing Operations increased from $6.495m to $7.735m – an increase of $1.240m or 19% on pcp

• Other income increased from $0.680m to $0.779m – an increase of $0.099m on pcp

• Total Income increased from $7.175m to $8.514m – an increase of $1.339m or 19% on pcp

Note: Growth rates referenced are calculated against the previous corresponding period, being 12 months to 30 June 2015.

Revenue Segments – Full Year to 30 June 2016

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+59% +6% -28%
Trading
Services Adserving
Technology
$4.228m $2.532m $0.900m
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• Trading Technology revenue increased 59% on pcp in line with the increased adoption of Symphony and Adslot platforms

• Non-strategic Services revenue increased 6% on pcp

• Non-strategic Adserving revenue declined 28% on pcp as anticipated

Note: Growth rates referenced are calculated against the previous corresponding period, being 12 months to 30 June 2015.

FY13 to FY16 - Revenue by product

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$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
FY13 FY14 FY15 FY16
Trading Technology Services Adserving Other
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• Consistent growth in Trading Technology revenues, with 59% growth recorded in past 12 months

• Services revenues YoY increase of 6%, as anticipated

• Adserving revenues YoY decrease of 28%, as anticipated

FY14 to FY16 – Trading Technology Revenue

Revenue Growth

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$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$-
FY 2013/14 FY 2014/15 FY 2015/16
Licence Fees Trading Fees
Thousands
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• FY16 delivered YoY growth in Trading Technology revenues of 59%, driven by growth in both Licence Fees and Trading Fees

• Licence Fees are a more mature and predictable revenue stream

• Trading Fees are a nascent revenue stream and less predictable

• The growth opportunity for both Licence Fees and Trading Fees is material

• The future revenue opportunity for Trading Fees is a multiple of Licence Fees

• The hybrid of Licence Fees + Trading Fees provides predictable, contracted growth in combination with large market opportunity

Costs – Full Year to 30 June 2016

• Operating costs increased slightly from $10.628m to $11.699m from growth in staff levels

• EBITDA loss reduced from of a loss of $3.647m to a loss of $3.260m – an improvement of $0.387m or 11% on pcp

• NPAT loss decreased from $9.206m to $8.138m – a reduced loss of $1.068m or 12% on pcp

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EBITDA NPAT
+10% +11% +12%
Operating Costs
$5.094m ($1.762m) ($5.233m)
Operating Costs EBITDA NPAT
$11.699m ($3.260m) ($8.138m)
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Note: Operating Costs are Total Expenses excluding Depreciation and Amortisation expenses.

Cash flows – Full Year to 30 June 2016

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+36% -13% +7%
Net Cash
Outflows from
Cash Receipts Cash
Operating Activities
$4.746m
$11.328m ($2.753m)
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• Receipts from Trade and Other Debtors grew 36% YoY, from $8.279m to $11.328m.

• A 13% improvement in Net Cash Outflows from Operating Activities, reduced from ($3.176m) in FY15 to ($2.753m) in FY16.

• Continued investment in Technology Platforms of $1.195m net of R&D grants.

• A 7% increase in Cash at End of Financial Year from $4.441m in FY15 to $4.746m in FY16.

• The Company anticipates a $2.4m cash receipt in 1H FY17 from the R&D Grant.

Outlook

Overview of groupm contract

On 19[th] August Adslot announced it had signed a global, multi-year deal with groupm, the world’s largest media buyer

• Immediate focus on multiple market deployments across Europe and APAC

• Material and immediate additional recurring revenue in the form of Licence Fees, growing as new markets are deployed

• Fully funded market entry for each new country of deployment

• Establishes Adslot as a truly global solution via:

  • a significant customer footprint in the EMEA region, and

  • an expanded customer footprint in the APAC region.

• In combination with organic growth from existing customers and other new business, the value of media executed via Symphony is expected to increase from circa $3 billion per annum to circa $7 billion per annum over the next 2 - 3 years

• As a result, Adslot’s Automated Guaranteed Trading Fee opportunity via the Symphony-Adslot integration will effectively double

• Market-ready product can be sold into the broader industry in each new market activated

Continued growth in Trading Technology revenues Growth in Trading Technology revenues is expected to continue and accelerate

• As a result of the groupm contract Adslot anticipates an immediate and ongoing increase in Trading Technology revenues in the form of Licence Fees.

• The Company expects additional growth in Licence Fees will be supported by the organic growth of existing customers in combination with new business wins.

• Trading Fees are also expected to deliver growth, derived from:

• Accelerating adoption of the Symphony-Adslot integration from Symphony clients, including groupm

• Wider adoption of Adslot as a stand-alone trading platform (ie. from non Symphony customers)

• Trading Fees in the September quarter already exceed the June quarter

• The scale and scope of the Trading Fees sales pipeline is building

Continued growth of demand captured via Symphony

The value of media spend executed via Symphony expected to increase to circa $7bn

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Symphony Media Spend $M
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$-
FY13 FY14 FY15 FY16 FY17 FY18
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• In combination with other new business, and organic growth from existing clients, the groupm contract is expected to increase the value of media spend executed via Symphony from $3b per annum to circa $7b per annum over the next 2-3 years.

• The growth in media spend executed via Symphony presents further significant revenue growth potential in the form of Trading Fees. The Trading Fee revenue opportunity is several times greater than that of Licence Fees.

The Symphony-Adslot integration will be continually enhanced The Company has identified a number of enhancements to Adslot, and the SymphonyAdslot integration, that it believes will generate accelerated adoption

Product areas of focus include:

Enhanced audience segmentation

• Buyers want to to rapidly discover, plan, negotiate and trade audience targeted products and inventory. Enhancements in this area of the Adslot platform and the Symphony-Adslot integration will also allow online publishers to expose more relevant audience variables to buyers including the ability to match to an audience specific to an advertiser or campaign, whilst maintaining a premium price point.

Performance optimisation

• Buyers and sellers want to reference their aggregate trading history to inform negotiations pertaining to what inventory to buy/sell, and the price they should pay/ask for it.

• Buyers and sellers want to reference historical campaign performance to inform negotiations pertaining to what inventory to buy/sell, it’s projected value or performance and the price to pay/ask.

•

Partner integrations

• The Company expects to complete and launch two partner integrations in 1H FY17, further detail of which will be released on completion.

Thank you @adslot investor.relations@adslot.com