Digitouch — Investor Presentation 2015

Oct 2, 2015

www.autoand plus.com

DigiTouch Group is a public company listed on AIM Italy Market since March the 16th, 2015. More details on http://www.gruppodigitouch.it/en/investor-relations

277 clients in 2015 +30% towards 2014 Yearly media budget under management: 100 million of Euros

1st mover in Mobile Big Data market, with the aim of a rapid international growth and to support Telcos in the monetization of their Data

On the market since 2007 and with many years of experience in the development of owned technological assets for the optimization of ROI advertising campaign through tools of profiling, data enrichment and media planning algorithm

Almost ten years of strong relationships with medium and big size clients, IT Providers and web publishers

Headquarter in Milan and other office in Rome. About 100 employees

Management team composed by pioneers in the Italian digital marketing market

01 MOBILE MARKETING

We offer services of mobile advertising on Smartphone, Tablet and new connected devices; we look after the realization of Digital Special Projects

SOCIAL & We define strategies of communication on social channels and we manage original projects to engage and entertain the audience in different ways: editorial content, Branded Content video, digital PR

BRANDED CONTENT 04

02 PERFORMANCE

We develop advertising campaign with an approach aimed at the result, the performance, the creativity and the data management

MOBILE DATA PROFILING 03 We have developed a technological platform for the management of anonimous and authorized clusters, owned by telcos for their enhancement in the mobile advertising media planning campaigns

According to a Research run by Politecnico of Milan's School of Management in September 2014 (interviewed panel: 18 companies and 12 media agencies in Italy) DigiTouch Group, thanks to DigiMob, is in poleposition among the "mobile sales houses" and in the intervieweds' top of mind with a percentage of 60%.

This Institute has also observed that Performedia is considered by the market the first Italian agency that offers advertising cross-planninng both on traditional and digital media.

DigiTouch Group has been multirewarded in these years, in occasion of different Media & Advertising Awards. The last reward our Group received (June 2015) is the Premio internazionale Le Fonti® as ″Company of the year, Digital Advertising″

Preferred Marketing Developer» badge and in July 2015 Twitter mentioned Unieuro's advertising campaign, realized by E3, as an international success case.

The turnover of mobile advertising in Italy has reached 302 millions of euros in 2014. The growth yoy is +48%. The weight of mobile advertising over the internet media advertising in 2014 has been 15% compared to the 10% of the previous year.

DigiMob is one of the players of the mobile advertising's supply chain in Italy.

Historical pricing model (US – 2013)

Performance-based pricing remains the preferred model

Performance-based pricing, the leading pricing model since 2006, declined slightly to 65% of total revenue in 2013 from 66% in 2012.

CPM/impression-based pricing gained in the first six months of 2013, up to 33% of revenues from 32% in 2012. At 33% of total revenues, CPM is at its highest point since 2010.

Hybrid pricing remained at 2% of total revenues in 2013, consistent with the 2% reported in 2012.

Source: IAB/PwC Internet Ad Revenue Report, 2013

Performance advertising (programmatic) represents a kind of display advertising, based on revolutionary logics of media buying and planning.

Performedia is one of the players of performance advertising's (programmatic) supply chain in Italy.

Settori	Totale Inv.	Media Mix (analisi su dati nielsen dell'AGCom dati 2011)
										Val. Mercato	Val. Mercato
	2.014	Totale Mezzi	$\mathbf{v}$	Radio		Editoria Quot. Editoria Periodica	Pubblicità	Cinema	Internet	on line '11	on line '14x6
Alimentari	726.645	14.6%	20.7%	8.2%	2.0%	6.9%	5.0%	10.4%	2,8%	20.346,1	122.076,4
Automobili	594.541	11.2%	11.6%	23.4%	10.1%	3.9%	11.5%	18.8%	9,7%	57.670,5	346.022,9
Telecomunicazioni	474.660	9.3%	12.3%	8.2%	3.5%	1.3%	11.5%	3.3%	9,2%	43.668,7	262.012,3
Abbigliamento	294.829	6.2%	2.5%	1.6%	7.6%	27.0%	17.0%	7.7%	1,8%	5.306,9	31.841,5
Cura persona	286.737	4.4%	4.4%	2.0%	1.5%	10.6%	2.9%	2.0%	1,5%	4.301,1	25.806,3
Media	280.827	4.8%	4%	8.4%	4.2%	2.0%	2.9%	10.0%	14,1%	39.596,6	237.579,6
Distribuzione	267.504	4.1%	3.0%	9.4%	7.2%	2.0%	8.4%	1,4%	6,6%	17.655,3	105.931,6
Health care	267.065	3,7%	4,7%	2,6%	1,3%	3,1%	0,3%	1,9%	1,1%	2.937,7	17.626,3
Toiletries	266.707	1,9%	1,0%	0,0%	3,8%	6,0%	2,0%	3,0%	0,6%	1.600,2	9.601,5
Bevande/Alcolici	255.011	5,5%	7,3%	4,9%	2,1%	2,5%	3,2%	9,1%	1,8%	4.590,2	27.541,2
Finanza/Assicurazioni	222.619	4,2%	3,1%	6,6%	6,2%	2,2%	3,0%	4,5%	13,5%	30.053,6	180.321,4
Abitazione	199.214	3,7%	2,8%	3,1%	4,7%	8,3%	5,9%	1,3%	0,8%	1.593,7	9.562,3
Gestione casa	183.385	3,6%	5,1%	2,4%	0,6%	2,0%	0,9%	0,7%	0,7%	1.283,7	7.702,2
Tempo libero	131.541	2,2%	1,8%	3,0%	2,5%	2,0%	4,0%	2,2%	6,4%	8.418,6	50.511,7
Industria/Edilizia	130.723	2,0%	1,8%	1,9%	2,8%	2,1%	1,8%	3,4%	1,9%	2.483,7	14.902,4
Oggetti Personali	125.791									$\overline{\phantom{a}}$
Turismo/Viaggi	122.466	2,0%	1,0%	3,5%	4,0%	3,5%	3,1%	3,1%	3,7%	4.531,2	27.187,5
Servizi Professionali	107.708	1,9%	0,6%	1,2%	5,4%	2,0%	2,6%	0,6%	9,2%	9.909,1	59.454,8
Varie	97.751	4,0%	0.1%	0,0%	23,7%	2,0%	0,8%	0,0%	5,6%	5.474,1	32.844,3
Giochi/Articoli scoalas	77.330	1,3%	2,0%	0,2%	0,1%	0,4%	0,3%	2,9%	0,8%	618,6	3.711,8
Enti	69.613	1,5%	1,0%	2,2%	2,8%	1,3%	5,0%	4,8%	2,4%	1.670,7	10.024,3
Elettrodomestici	55.377	1,9%	2,2%	0,6%	1,0%	2,1%	0,6%	4,6%	1,7%	941,4	5.648,5
Informatica	51.300	0,7%	0,2%	1,2%	1,1%	1,4%	0,6%	1,0%	3,1%	1.590,3	9.541,8
Moto/Veicoli	37.190
Totale	5.326.534									266.242	1.597.453
Altro non allocato	1.173.466								3,0%	35.204,0	211.223,9
Mercato Italiano	6.500.000									301.446,1	1.808.676,4

Technology and its usage are definitly and totally central, both in planning and in execution of all Digital Marketing Activities

Proper usage of the Data is the key Value Added (DMP) and the extraction and ownership of the data. Still majiority of the data are not used yet

Major Awareness of Large Corporation for the possibility to increase performances using their own data

Consolidation in place in the market: minor players are acquired by majors one

Premium factors for selection of Digital Agency: flexibility, client care use of technology and data,

Opportunities for emerging players determined to acquire new clients.

We have at our disposal owned platforms, integrated with the worldwide technological excellences:

• Our technological architecture is unique in Italy thanks to relevant development efforts;
• Our optimization tools are the result on one hand of years of experience and innovation and on the other hand of the integration with all the Italian web.

PERFORMANCE

Only with technologies optimization is possible to grant higher and cost-effective performance.

INNOVATION

We constantly take care of R&D tools able to improve our client's advertising campaigns' performance.

THE PILLARS OF OUR TECHNOLOGICAL PLATFORM'S ARE:

In order to grant better, faster and cost-effective results, we use innovative and highly-efficient technological tools.

	DIGITOUCH GROUP'S PLATFORM	OTHER OWNED TOOLS
	GOAL: telco's data profiling and enhancement	PHICO Application for contests on Facebook, Twitter and Instagram
	GOAL: analytics, real-time performance, tracking campaign	MANGUSTA Community building platform
	GOAL: adServer, real-time bidding,	APP CONTEST Application for contests on Facebook
	programmatic advertising GOAL: collector of publishers'	DEM PLANNING Owned tool able to check the presence of identical contacts in a DEM database
SSP mobile	advertising spaces and distribution manager of these spaces through authomatic tools	MOBILE e WEB DSP

Digital marketing success relies on the correct use of technologies (75%) and the development of owned technologies (25%) - Seth Godin

PEOPLE THAT SUPPORT THE STRATEGY IMPLEMENTATION	BACK GROUND
Simone Ranucci Brandimarte (BoD) DigiTouch Group Chairman	Entrepreneur & Co-founder of Multiple Ventures Goswiff CEO, President & Founder Glamoo Co-Founder of Buongiorno - CEO Buongiorno Mitsui Asia JV Started Career in Accenture, Strategic Services
Paolo Mardegan (BoD) CEO DigiTouch	Premium Services Director - NeoNetwork Director for New Product Development - Buongiorno S.p.A. Well known writer and Blogger - Mobile & web marketing
Matteo Antonelli (BoD) CEO Performedia	Global Trade Marketing Director – Indesit Marketing manager Coca Cola Product Manager - Yomo
Marko Maras (Key People) CTO DigiTouch Group	Founder & CEO of OneBip (sold to Neomobile) Founder of Simple Ventures IT Manager at In3 Internet Ventures
Michela Rizzo (Key People) CFO DigiTouch Group	Controller in Vodafone Auditor In PwC
Veronica Maccani (Key People) Investor Relator, Marketing & Communication DigiTouch Group	Advertising & Brand Specialist in Vodafone Event Specialist in Wireless
Daniela Robba (Key People) Head of Business Development	Head of Milan Office, TheBlogTV COO in DMC - Manager in DMC-Fullsix Marketing Manager in Bibop Research
E3 Management team (Key People) CEO and 2 Key Managers	Fabio Racchini Federico Ceccarelli Maurizio Mazzanti

1

Source: 30.09.2015

2 8

• Improve number and quality of tenders on important advertising budgets
• Widening offer portfolio
• Develop cross selling and up selling commercial activities

• Leverage investments in key marketing, data, analytics, and intelligence platforms

• Audiens is a provider of Performedia & DigiMob widening the market offer

• DigiMob is a provider of Performedia

• Increase the overall amount of media buying permits to improve the bargain power and kick back commissions

• Economies of scale of central costs

• Corporate functions centralized and cost synergies
• Improve net working capital management
• Easier access to banking facilities to support further growth

R&D centralized

• Market Analysis, M&A scouting, observatory and relationship with institutions centralized
• Know How sharing processes in place

Olystic approach to communication world;

Team with competences able to manage various needs of the market;

Consultant approach able to create well structured relationship based on a trustable view

ADVERTISING PROJECTS

• Mobile Rich Media e Native Adv
• Mobile Display & Landing Page
• Video Adv on Mobile
• App -up!
• Couponing
• Google Sem & Display
• DEM & DDD
• Video Pre -roll Web
• Display Social
• Connected Tv
• Baidu
• Wearable Device, Internet Of Things

SOCIAL & BRANDED CONTENT

• Digital Strategy & Content Creation :
• Social media strategy & management
• Community building
• Branded content, Video and other

Focus mainly on performance

Strong competence on finance world;

Strong competence on off line and digital pr world.

DIGITAL ADVERTISING SERVICES

• Mobile Adv;
• SEO, SEM;
• DEM
• Media Platfomr (DSP, DMP);
• Social Ads;
• Creativity
• Digital development

OFFLINE ADVERTISING SERVICES

• Advertising planning off line;
• Promotion;
• Public relation;

E3 is the social agency of the Group;

Strong focus on social activities (not only adv driven);

Strong focus on development of applications and projects.

• Creativity & Development
• Management of advertising campaigns
• Development of sites, advergame, social and mobile applications.
• Media Planning & Buying
• Strategic planning and management of inventory
• Tracking, competitor analysis and post campaign review
• Social Media Marketing & Digital PR
• Development and management of a structured presence on social media;
• Digital PR & Social Events

It's the mobile and new device sales house of DigiTouch Group specialised on mobile advertising services on smartphone, tablet and new devices.

DigiMob has 4 different strong competences areas:

• Advertising;
• Proximity marketing;
• Mobile App;

• Data Management

• SMS Advertising;

• Mobile Advertising;
• Mobile Rich Media,
• Geofencing ;
• App Install;
• Download installation;
• Couponing

MutuiperlaCasa is one of the most important italian web sites that manages comparation of offers with selected financial partners and banks for all people that are looking for a loan

Mutuiperlacasa gives:

• Lead generation services;
• Branding services;
• Both on DESKTOP both on MOBILE

The information to search and buy a car are always more taken from internet. Some websites are leading to PPS (pay per sale).

Number of touch point during Information and Decision Phase (Automotive)

The retail automotive industry is finally entering into the multichannel distribution age with a crucial role from third party sites DigiTouch lunches a new vertical in Italy by the end of Sept. '15

• Location: Via Boscovich (250 sm): location of the DigiTouchLab DigiTouch seed accelarator with a unique industrial view
• Focus: start up in the seed phase with a digital/mobile advertising business model
• Start up in place Paesionline; Spotonway
• Services provided mentoring, start up support in commercial strategy definition, db sales, business planning supervision, working spaces Couterparties a fee for seat requested or a % of the start up capital

Type	Amount	Purpose	Provider
Set-Up- Pre-seed- before trading	Varies Up to £100k	Get the business set-up- e.g. legal fees, Equipment, website, accommodation	Founders 'bootstrap', - Sweat Capital, Family & Friends, Personal Loans & Credit Cards. Over 90% of new businesses start-up on less than £10,000
Research & Development Capital (If doing something new and innovative)	Varies Up to £0.5m.	Proof of Concept Funding. Market testing Intellectual Property Registration. Time	Bootstrap-self-financing from savings or earnings achieved whilst working elsewhere Private investors alone or in groups. (e.g. People Fund it) Government Grants/ Tax Incentives e.g. TSB Open Innovation Collaborations with industry/ HEI
Working Capital	Varies	To fund cashflow cycle (once you have orders)	Customers & Suppliers Banks/Factorers/Invoice Discounters/CDFI's and new debt players e.g. Market Invoice
Equity Investment	100K-1m	Commercialisation of "proven" technology/ business model. Roll out of growth plans	Private investors alone or in groups/ dedicated seed funds, Business Angels (e.g. Angel Capital) and Crowdfunders (e.g. Crowdcube)

	2012	2013	2014	2015
Active Clients
Percentage of business from directClients

In 2016 DigiTouch will benefit of a strong process of accreditation and commercial development in order to attend tenders with the following target:

Here following some of the Clients we work for:

We are pioneers in Italian mobile advertising market as we work in this field since 2008.

We are first mover in the European mobile profiling market: we have developed a mobile DMP able to clusterized telcos' audience data.

Our technology allows us to achieve concrete and measurable results and to plan competitive activities with reference to cost-effectiveness.

We offer a wide portfolio of products and services able to answer brand needs (awareness, performance, traffic building, etc.).

We have an integrated, scalable, flexible and competitive offer in comparison with the international competitors.

We work on long-term performance projects for big clients that belong to different verticals (finance, insurance, ecommerce, utilities, telcos, etc).

We have a dedicated innovation team, that constantly monitors the trend of the most avant-guard markets and that dialogues with the account team in order to create new products able to anticipate Clients' needs.

30

Balance of major businesses lifecycle

DigiTouch lifecycles

Consolidated Proforma Profit and Loss Consolidated Balance Sheet

€m	2013PF	2014PF
Revenues	14.0	15.2
Yo Y %		8.7%
Cost of sales	(9.5)	(10.6)
Gross Profit	4.5	4.6
Margin	32.2%	30.4%
Personnel	(1.3)	(1.3)
Other operating costs	(0.7)	(0.4)
EBITDA	2.4	3.0
Margin	17.4%	19.5%
D&A	(0.5)	(0.5)
EBITA	1.9	2.4
Margin	13.7%	16.1%
Goodwill amortisation	0.0	(0.1)
EBIT	1.9	2.3
Margin	13.7%	15.3%
Interest	(0.0)	0.0
EBT	1.9	2.3
Margin	13.7%	15.1%
Income taxes	(0.7)	(0.8)
Net Income	1.2	1.5

€m	2013PF	2014PF
Trade receivables	6.0	6.7
Trade payables	(3.5)	(5.1)
Trade Working Capital	2.5	1.5
Other assets	0.0	0.4
Other liabilities	(3.3)	(2.3)
Net Working Capital	(0.8)	(0.4)
Goodwill / Intangibles	3.2	7.6
Fixed assets	0.1	0.1
Non-current assets	3.3	7.8
Provisions	(0.2)	(0.2)
Net Invested Capital	2.4	7.2
Net cash and equivalents	(0.7)	(2.2)
Long-term bank debt	0.9	0.8
Vendor loan	0.0	5.5
Net Debt / (Cash)	0.3	4.1
Equity	2.1	3.0
Sources	2.4	7.2

Consolidated Profit and Loss

€m	2014PF	2015PF	2016E	2017E	2018E
Revenues	15.2	24.2	28.8	33.7	39.5
$YoY\%$	8.7%	59.2%	18.8%	17.1%	17.2%
Cost of sales	(10.6)	(15.5)	(18.4)	(21.7)	(25.6)
Gross Profit	4.6	8.8	10.4	12.0	13.9
Margin	30.4%	36.2%	36.0%	35.6%	35.1%
Personnel	(1.3)	(2.0)	(2.2)	(2.5)	(2.7)
Other operating costs	(0.4)	(1.8)	(2.0)	(2.4)	(2.8)
EBITDA	3.0	4.9	6.1	7.2	8.4
Margin	19.5%	20.4%	21.2%	21.2%	21.3%
D&A	(0.5)	(0.9)	(0.4)	(0.5)	(0.6)
EBITA	2.4	4.1	5.7	6.7	7.8
Margin	16.1%	16.8%	19.7%	19.7%	19.8%
Goodwill amortisation	(0.1)	(1.0)	(1.0)	(1.0)	(1.0)
EBIT	2.3	3.1	4.7	5.7	6.8
Margin	15.3%	12.8%	16.3%	16.9%	17.3%
Interest	0.0	0.0	0.0	0.0	0.0
EBT	2.3	3.1	4.7	5.7	6.8
Margin	15.1%	12.8%	16.3%	16.9%	17.3%
Income taxes	(0.8)	(1.3)	(1.8)	(2.1)	(2.5)
Net Income	1.5	1.8	2.9	3.6	4.4

Consolidated Profit and Loss Account of DigiTouch Group

CONTO ECONOMICO RICLASSIFICATO		CONSOLIDATO	DEL	GRUPPO DIGITOUCH
(unità euro) di		1° Semestre		1° Semestre
		(Pro-forma) 2015 2014			Variazione
		[A]		[B]	[A]-[B]	%
	%		%
Ricavi operativi	95,1	9 937 947	96,6	6 260 548	3 677 399	58,7
Altri ricavi	0,4	41 419	0,7	45 886	(4 467)	(9,7)
capitalizzati Costi	4,5	475 511	2,7	175 890	299 621	170,3
Totale ricavi	100	10 877 454	100	6 482 324	3 972 553	61,3
Costi operativi	76,0	950 246 7	69,1	4 477 818	3 472 428	77,5
del lavoro Costo	9,5	995 016	9,6	620 834	374 182	60,3
EBITDA	14,4	1 509 615	21,3	1 383 672	125 943	9,1
Ammortamenti , svalutazioni ,
diversi accantonamenti e oneri	4,6	483 258	4,3	276 872	206 386	74,5
EBIT	9,8	1 026 357	17,1	1 106 800	(80 443)	(7,3)
Proventi/(oneri) finanziari	1,0	102 172	0,1	8 028	94 144	1.172,7
Rettifiche su attività finanziarie	(0,1)	(5 894)	0,0	-	(5 894)	n.a.
Proventi/(oneri) straordinari	0,0	(5)	0,0	1	(6)	n.a.
Utile imposte ante	10,7	1 122 630	17,2	1 114 828	7 802	0,7
del periodo Imposte	2,9	305 766	6,5	418 516	(112 749)	(26,9)
Utile consolidato netto	7,8	816 864	10,7	696 313	120 551	17,3
di competenza:
Gruppo	5,7	595 123	7,5	484 541	110 581	22,8
di Interessenze terzi	2,1	221 741	3,3	211 772	9 969	4,7
n.a. non applicabile

Note:

The results of the controlled company E3 srl are not included in the business perimeter described in the Financial statement consolidated of DigiTouch Group at 30 June 2015, because E3 acquisition has been finalized in July 2015.

E3 results must be therefore considered as addictional and will be valuated in the Financial statement at 31 December 2015.

Balance sheet consolidated and reclassified of DigiTouch Group

STRUTTURA PATRIMONIALE CONSOLIDATA	RICLASSIFICATA	DEL GRUPPO	DIGITOUCH
(unità	euro) di	30 giugno 2015		31 dicembre 2014	Variazione
		[A]		[B]	[A]-[B]	%
	%		%
Capitale immobilizzato	132,3	6.133.526	120,1	3.796.017	2.337.509	61,6
Avviamento	63,8	2.957.629	86,0	2.719.095	238.534	8,8
di e sviluppo Costi ricerca	7,4	344.085	7,6	239.692	104.393	43,6
Altre attività immateriali	57,0	2.644.064	21,8	689.482	1.954.582	283,5
Immobilizzazioni materiali	3,4	156.650	3,2	102.448	54.202	52,9
Immobilizzazioni finanziarie	0,7	31.098	1,4	45.300	(14 .202)	(31,4)
Capitale di esercizio	(26,5)	(1.228.627)	(14,2)	(449.100)	(779.527)	173,6
Crediti commerciali	147,4	6.834.517	210,6	6.655.680	178.837	2,7
Debiti commerciali	(132,8)	(6 .158.767)	(162,9)	(5 .149.116)	(1 .009.650)	19,6
Ratei e risconti attivi e passivi	(23,2)	(1 .075.684)	(54)	(1 .702.369)	626.685	(36,8)
Altre attività e passività	(17,9)	(828 .694)	(8)	(253 .295)	(575 .399)	227,2
di fine Trattamento rapporto	(5,8)	(267.810)	(5,9)	(186.542)	(81.268)	43,6
CAPITALE INVESTITO NETTO	100	4.637.089	100	3.160.375	1.476.714	46,7
del Patrimonio Gruppo netto		258,7 11.994.221	81,1	2.562.930	9.431.290	368,0
di Patrimonio terzi netto	10,9	504.274	15,2	479.352	24.922	5,2
Patrimonio netto	269,5	12.498.495	96,3	3.042.282	9.456.213	310,8
Debiti finanziari e obbligazionari
- a breve termine	12,9	596.616	54,9	1.733.642	(1 .137.026)	(65,6)
- a lungo termine	96,5	4.474.202	26,3	832.639	3.641.563	437,4
Disponibilità liquide equivalenti ed	(266,7)	(12 .368.380)	(59,6)	(1 .883.996)	(10 .484.384)	556,5
Titoli non strumentali all'attività operativa	(12,2)	(563 .845)	(17,9)	(564 .192)	347	(0,1)
Indebitamento finanziario netto	(169,5)	(7.861.406)	3,7	118.093	(7.979.499)	(6.757,0)
COPERTURE	100	4.637.089	100	3.160.375	1.476.714	46,7
LEVERAGE		n.a.		0,04

n.a. non applicabile

New 1 clients

Increase the number of additional clients through tenders, business development and Agencies Brand development

International 2 development

Develop assets, properties and presence in International markets, with special focus on emerging markets (mobile driven)

DEDICATED ADDITIONAL

Technology evolution 3 4

AUCAP Product updgrade

Continous evolution on technology architecture with investments on Audiens, Dashboard and overall DMP&DPS capabilities of the Group

Increase quantity & quality of vertical portals, in order to sthrenghten capabilities and metrics of performance marketing

DigiMob | DigiTouch Agency | Performedia | E3 | Audiens | MutuiperlaCasa | Auto&Plus

www.gruppodigitouch.it/en

Investor.relator@digitouch.it