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ADVERITAS LIMITED Capital/Financing Update 2017

Apr 2, 2017

64465_rns_2017-04-02_cfd1bab7-d503-482f-8b74-20daebe8df30.pdf

Capital/Financing Update

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Tech Mpire Limited ABN 11 234 566 272 Suite 2:, 24 Brodie Hall Drive Bentley WA Australia 42:F :1 G765 F3:: www.techmpire.com

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ASX RELEASE

3 April 2017

MARKET UPDATE: TECHNOLOGY ENHANCEMENTS DRIVING TMP GROWTH

HIGHLIGHTS

Tech Mpire Limited ( Company or Tech Mpire ) ( ASX: TMP ) is pleased to provide the following update to shareholders.

Tech Mpire’s technology-first strategy has been built around improving volume and utilisation of supply, while also delivering value and quality to mobile advertisers. The continued execution of the strategy strengthens the Company’s competitive advantage and enables it to satisfy growing demand.

The Company’s strategy focuses on the following four pillars:

  • Investment in big data analytics and automation to improve the efficiency, quality and profitability of advertiser campaigns. This is the foundation for all of Tech Mpire’s technology initiatives across the business.

  • Accessing higher-volume sources of supply , allowing the Company to better satisfy significant global demand.

  • Strengthening the mobile business by providing better audience data, and easier engagement for mobile advertisers.

  • The continued evolution of quality assurance measures to eliminate invalid traffic and improve ROI for clients and partners.

Taken together, these technology investments improve the operational efficiency of the Company and maximise the performance of client advertising campaigns. This results in higher revenue and margins as well as greater client satisfaction and retention.

For further detail on all of the initiatives for each pillar, please see Tech Mpire’s Strategy Update Presentation[1] .

Recent technology milestones for each pillar are outlined below:

Investment in big data analytics and automation

At the end of FY16, Tech Mpire began growing its data science team to build the technology and expertise to extract opportunities from its large and growing data asset. Processing in excess of 6 billion data points per day, big data is the driving force behind all of Tech Mpire’s technology initiatives. Insights derived from big data, and their implementation into technology and operations, will continue to deliver improvements in efficiency, quality and performance.

1 - h_p://bit.ly/TMP Strategy

Accessing higher-volume sources of supply

Many of Tech Mpire’s large supply partners have expressed their desire to connect directly to nxus® via an API. Integrating with the newly launched Partner API streamlines the supply partner’s process of finding and delivering traffic to Tech Mpire’s campaigns. These partners have the potential to provide high volumes of traffic to Tech Mpire, enabling the Company to scale campaigns faster and fulfil large client budgets. Leveraging high-volume supply sources helps the Company gain tighter control of traffic quality while also reducing the time and effort involved in manual partner account management. A number of select partners have already integrated with the Partner API.

Tech Mpire has completed the proof of concept phase for its recommendation engine. The recommendation engine is a sophisticated algorithm designed to identify the most suitable supply partners for each campaign in order to maximise campaign performance. Using the recommendation engine, Tech Mpire is able to scale campaigns faster and more effectively, resulting in greater client satisfaction. Tech Mpire’s account managers will be able to leverage insights from the recommendation engine from early April 2017.

Strengthening our mobile business

Tech Mpire has completed the development of a self-serve portal targeting mobile app advertisers. App advertisers are a key target of Tech Mpire’s managed offering and the self-serve portal allows the Company to broaden its appeal to all budget levels in the growing $5 billion global mobile-app install market[2] . The self-serve portal enables low-budget app advertisers to onboard their advertising campaigns with minimal manual support and start driving traffic to their mobile apps on a cost-per-install basis.

Tech Mpire’s advertiser self-serve portal has gained significant organic interest since its soft-launch in December and will launch officially at the App Promotion Summit in New York on April 6, 2017.

The continued evolution of quality assurance measures

To address the growing scale of its compliance operations, Tech Mpire has recently appointed a dedicated compliance officer. The compliance officer will oversee internal processes and procedures; coordinate invalidtraffic enquiries between stakeholders and Tech Mpire’s data team; and leverage monitoring tools to ensure supply partner compliance.

The compliance officer will work in collaboration with Tech Mpire’s Data Science team to safeguard the quality of the Company’s traffic supply. A dedicated compliance resource ensures consistency and efficiency in the handling of quality matters, allowing other roles to focus on their disciplines.

Outlook

Tech Mpire has already begun to recognise value from some of the initiatives implemented in the financial year to date. The Company expects improvements to efficiency, quality and performance to continue into the next financial year delivering increased revenue, margins and client satisfaction. The Company continues to take a

2 Business Insider, F:24

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conservative approach for accounting purposes, expensing all of its R&D which will benefit profit margins in the future.

“Tech Mpire drives the impact and reach of every dollar our clients invest in online advertising through technology innovation. The strength of our technology enables us to deliver exceptional results for our clients and partners through quality, scale and data-driven performance,” said Tech Mpire Managing Director Luke Taylor.

“With superior performance and functionality, nxus has evolved from the operational tool it was a year or two ago, to become the source of Tech Mpire’s competitive differentiation. Continuing to invest in nxus and delivering on our technology-first strategy will strengthen Tech Mpire’s value proposition and ensure the Company’s sustainable growth.”

-Ends-

For more information, please contact:

Investor Enquiries Media Enquiries Luke Taylor Melissa Mack Managing Director Media & Capital Partners Tech Mpire Limited 0430 119 951 (08) 9473 2500 [email protected] [email protected]

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