HARRIS TECHNOLOGY GROUP LIMITED — AGM Information 2013

Dec 11, 2013

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AdEffective Limited – Annual General Meeting 2013 Simon Crean – Chief Executive Officer

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1

Company Repositioning

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An Online Shopping and Online Advertising Company Shoply Ltd (ASX:SHP)

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2

Operating Highlights FY13

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$0.05m
Shoply Ltd generated it’s maiden profit in FY13
2013
Focused on capitalising on the growth of
Ecommerce
$(1.07)m
$(1.64)m
FY2011 FY2012 FY2013
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Financial Summary FY13 Shoply Ltd financial highlights included:

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Revenue
$2.77M
Up
6%
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Gross Profit Margin
43%
Up
7%
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Net Profit
$0.05M
Up
102%
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4

Company Overview

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Shoply Ltd (ASX:SHP) has two operating divisions

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AdEffective
Online Advertising
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AdEffective works with a network of Advertisers and Publishers.

AdEffective delivers value to Advertisers by increasing customer reach through publisher partnerships. AdEffective delivers value to Publishers by increasing their revenue.

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Shoply
Online Shopping
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Shoply currently owns three Online Shopping destinations. Shoply delivers value to consumers by providing great products at great prices.

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Operating Summary 2013 Shoply Ltd operational highlights included:

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Maiden profit in The
FY13 of $45k, establishment of
turnaround from an Online
a $1.6m loss in Shopping
FY12 division
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Capital for
acquisitions and
growth support
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6

Operating Timeline 2013 Shoply Ltd operational milestones:

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Establishment of
Online Shopping
division
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Acquisition of
EzyDirect.com.au
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Acquisition of
Ohki.com.au
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Acquisition
consolidation and
platform
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Raised Capital to
support growth
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Acquisition of
Eljo.com.au
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April 2013 April 2013 May 2013 August October 2013 November 2013
2013
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Online Shopping Division A platform for growth

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Australian Online Shopping Market

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$14.1BN

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• Up to $14.1BN
13.1%
• Growing at 13.1% pa
• Equivalent to 6.3% of traditional retail
spend (and growing)
• US Online Shopping Growth rate of
18%
2012 2013
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Source: Nab, Frost & Sullivan, 2013

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Australian Online Shopping Market Projections

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$25.7BN
$23.3BN
$21.2BN
$19.3BN
$14.1BN
$17.6BN
$16.0BN
$10BN
2012 2013 2014 2015 2016 2017 2018 2019
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Source: Nab, Frost & Sullivan, IBIS World 2013

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Online Shopping Model

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Warehousing
Business EzyDirect Eljo
Needs
Future
OHKI Online
Consumer Stores
Shipping
Needs
Online Shopping Platform
5 - 30% Margin
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Shoply has an online shopping platform that is versatile, robust & scaleable

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EzyDirect, Eljo & OHKI

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www.ezydirect.com.au
www.eljo.com.au
www.ohki.com.au
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www.ohki.com.au
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Growth Plan Current

Online Stores

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Shoppers

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13

Growth Plan Projected

Online Stores

Target 4 x increase in properties and users

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Shoppers

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consumer electronics, fashion, baby/kids, medical, consumables

14

Strategic Priorities

Increase Enhance the revenue across e-commerce online stores platform Customer acquisition and Support new retention online stores activities Sales Create cost optimisation and efficiencies cross-selling across the across stores division

Enter attractive new retail categories

Organically

Via acquisition

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Pursue acquisitions by

Analysing market for growing smallmid size shopping sites

Finding sites that dominate ‘niches’ in large retail categories

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Acquisition Profile

• Must have attributes

• Operating revenue

• Scalable revenue

• Low acquisition multiples

• Significant market opportunity

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• Desired attributes

• Profitable

• International application

• Technology/platform synergies

• Customer segment synergies

• Operating cost efficiencies

• No or limited inventory

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Online Advertising Division A proven performer

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Global Online Advertising Market

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Digital Ad Spending Worldwide $BN (2010-2016)

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163.04
149.18
134.65
118.4
102.83
87.27
72.37
2010 2011 2012 2013 2014 2015 2016
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Global online advertising spend projected to reach $163BN in 2016

Source: eMarketer, December 2012

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Online Advertising Model

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www.adeffective.com
Future
AdFeed Advertising
Services
AdFeed
Advertisers Publishers
Footar
Footar
Online Advertising Platform
AdEffective online advertising products are proven revenue generators
at ~40% margn
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Online Advertising Markets & Revenue

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Markets (No. of Ads Served) Revenue by Market (%)
Latin
India
America
0.03%
4.50%
Australia
20.92%
North America
3BN South East
SE Asia
Asia
India
686M
34.06%
1M
Latin America
110M Australia
395M North
America
40.50%
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20

Business Current

Advertisers

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Publishers

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21

Strategic Priorities

Increase publisher network in line with the increasing supply of advertising inventory

Expand into new markets to augment existing organic growth

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Leverage our technology, network, Pursue publisher & complementary advertising acquisitions partnerships to mobile devices

22

ASX Small Cap Media Comparables

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$160M
$140M Revenue Market Cap
$120M
$100M
$80M
$60M
$40M
$20M
$0M
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AdEffective trades at a low revenue to market cap multiple for the sector FY13 revenue derived from Online Advertising only. Online shopping revenues commence FY14

As of December 6, 2013

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Board of Directors

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Andrew Plympton Damian London Sophie Karzis Non-Executive Chairman Non-Executive Director Non-Executive Director

• Brings considerable financial management skills to the Board

• Practising lawyer with 20 years’ experience

• 16 years’ experience in software, search engine marketing and online advertising

• Corporate counsel for a number of public companies

• Director of a number of ASX listed companies

• Strong technical background

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Mark Goulopoulos Non-Executive Director

• Associate Director at Patersons Securities

• 15 years’ experience in equity capital markets and investments

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Domenic Carosa Non-Executive Director

• Chairman of the future capital development fund ltd

• Co-founded and listed destra Corporation growing to revenues of $100M

24

Summary

One of the only online shopping companies to be publicly traded

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Operating in two high growth markets (Online Shopping & Online Advertising)

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Disclaimer

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The material herein is a presentation of non-specific background information about the Company’s current activities. It is information given in summary form and does not purport to be complete. Investors or potential investors should seek their own independent advice. This material is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of a particular investor. These should be considered when deciding if a particular investment is appropriate.

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Annual General Meeting 2013