OnMobile Global Ltd. — Investor Presentation 2018

Oct 29, 2018

onmobile

ON MOBILE GLOBAL LIMITED, Tower #1, 94/1 C & 94/2, Veerasandra Village, Attibele Hobli, Anekal Taluk, Electronic City Phase-1, Bangalore - 560100, Karnataka, India

P: +91 80 4009 6000 IF: +91 80 4009 6009 CIN - L64202KA2000PLC027860 Email - investors@onmobile.com

www.onmobile.com

October 29, 2018

To, The Secretary The Secretary BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street, Fort Bandra East Mumbai-400 001 Mumbai - 400 051 BSE Symbol: 532944 NSE Symbol : ONMOBILE

Dear Sir/Madam,

Sub: Earnings Presentation- 02 FY 2018-19

Pursuant to Regulation 30 & 46 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith a copy of the Earnings Presentation on the Financial Results of the Company for the quarter ended September 30, 2018 which is made available on Company's website: www.onmobile.com.

Request you to kindly take the same on record.

Thanking you,

Yours sincerely, For OnMobile Global Limited P. V. Varaprasad Company Secretary

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Encl: a/a

Investor presentation October 2018

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Cautionary statement

This presentation may contain statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to OnMobile Global Limited’s (OnMobile Global or the Company) future business developments and economic performance.

While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance.

OnMobile Global undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.

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Agenda

• History and milestones

• Product portfolio

• Strategy FY19

• Financials FY18

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The Global Leader in Mobile Entertainment

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Global presence

50+ COUNTRIES

90+ OPERATORS

1.5 Bn MARKET REACH

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History and milestones

Incorporated as Onscan Technologies India

Name changed to OnMobile Global Limited

Acquisition of Vox Mobili, France Amount: Rs 1,431 Mn

12: 1 Bonus Issue of shares

Purchase of

Intellectual Property of Music On, India for Rs 43 Mn

Voluntary open offer by Promoter, No of Shares:11,900,000. Amount Spent: Rs 476 Mn, Price: Rs 40/-

1:1 Bonus Issue of shares

Buyback of 4,000,000 Buyback of 5,800,000 equity shares. equity shares, Amount Amount Spent: Rs 238 Spent: Rs 442 Mn Mn, Avg. Price: Rs 59 Avg. Price: Rs 76

Promoter takes

active role.

François-Charles Sirois takes over as CEO

2000

2007 2009

2011

2014

2017

2006

Rs 1,300 Mn investment by Deutsche Bank AG, Jade Dragon (Mauritius), and Kings Road Investments (Mauritius)

Acquisition of IT Finity, India for Rs 419 Mn

2008

Public Issue: 10,900,545 shares, Rs 4,796 Mn @ Rs 440 per share

Acquisition of Telisma, France Amount: Rs 801 Mn

2010

Registration under Special Economic Zone, Bangalore

Acquisition of assets of Dilithium Technologies, USA for Rs 146 Mn

2013

Acquisition of Live Wire, USA for Rs 1,007 Mn

2016

Buyback of 5,600,000 equity shares. Amount Spent: Rs 538 Mn. Avg. Price: Rs 96

2018

Acquisition of Appland AB – a leader in games and kids apps

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Investor Highlights

• Global Reach

• Dominating market share in Tones business

• Investment in growth products

• Emerging turnaround story

• Solid cash position

• Healthy cash flow from operations

• Debt free

• High dividend yield

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Product portfolio

Suite of products

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Revenue by products

FY 14-15

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Others
18%
Contests
5%
Tones
49%
Videos
28%
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Tones Videos Contests Others*

FY 17-18

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Others
8%
Contests
7%
Tones
40%
Videos
45%
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Tones Videos Contests Others*

*Others (Infotainment, Data products, Speech products etc.) 10

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Strategy FY19

• Grow Videos

• Launch & Expand Games

• Stabilize Tones

• Digitize Contests

• Beyond Operator Wallet

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ONMO videos

Entertain yourself MORE THAN NOW

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Grow Videos

India

• Launched regional video portal in Vodafone India

• Short video content across 12 categories and in 5 languages to start with

• Telugu, Tamil, Kannada, Malayalam & Bengali

Middle East and Africa

• Launching short format video services across Middle East and Africa

North America

• Quick build & launch of video content stores

• Working with Content Delivery Networks to ensure video download/ streaming speed is optimized

• Launched an online web based interface for journalists/ columnists Content providers can upload video content fast on the digital content portal

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ONMO games

Challenge yourself MORE THAN NOW

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Launch & expand Games

Acquisition of Appland AB

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• Acquired Appland AB – a leader in Games and Kids Apps

Europe

• All You Can Eat (AYCE) service with no in-app purchases & no ads

• Curated Games (games rated above +4 and with more than 1M downloads)

• Parental Control and Family Plan

• Movistar games service launched in April with Movistar Spain under the name and brand “Movistar Juegos” – crossed 14,000 subscribers

• Won deal with Vodafone for Kids games; Commercial launch in Q3

Latin America

• Our portfolio powers various gaming formats like downloads, HTML5 games, pay per downloads, freemium & premium games

• Launched a quick web based games store builder

Middle East and Africa

• Contract closed for Games & Sports portal with largest operator in Kenya with 70% market share and 30 million subscribers

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ONMO tones

Express yourself MORE THAN NOW

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Stabilize Tones

India

• Launched Bundled Pack across Idea, Airtel and BSNL

Americas

• AYCE being targeted for all regions that are on traditional model.

• Focus on Digital marketing to drive new Ring Back Tones (RBT) acquisitions for the region.

Middle East and Africa

• Focus on rolling out RBT App across large RBT markets targeting high-end subscribers

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Europe

• Yavoy Lite - Low AYCE pricing model launched successfully in Telefonica Spain

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ONMO contests

Reward yourself MORE THAN NOW

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Digitize Contests

• Launched Contests for IPL Lovers

• Launched Contest For FIFA Enthusiasts

• Launching contest in one of the major operators in

• Qatar – Our first contest deployment outside India

• To create an immersive experience through rich content, social engagement and rewards.

• Transform Contests from:

• Traditional to Digital

• Single player to Multiplayer

• Trivia based to Agility

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FY19 Priorities

OPEX Rationalization

• Closure of dormant legal entities

• Exiting high cost offices

• Bringing Americas back to profitability

• Manpower optimization through automation

Convert content deals from fixed fee to revenue share model Increasing yield from investments & repatriation of funds to India

Reduction in effective tax rate

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Financials

Q2 FY2019 Key Highlights

• –

• Appland acquisition successfully completed will power growth in Games

• Signed bKash deal gaining entry into the space of non-operator wallet

• Vodafone Spain Kids RFP won with a TCV of $ 5 Mn

• Growth in Games revenue Q-o-Q: 10%

• Reduction in Manpower (Q-o-Q): from 857 to 829

• Ongoing efforts in rationalization of spend has ensured an opex reduction of 4.3% Q-o-Q

• –

• Significant increase in Operating Profit more than 4 times of Q1

• Cash generated from Operations: INR 278 Mn with cash touching an all time high of INR 3,486 Mn

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Revenue by products (Q-o-Q)

Q2 FY 19 Q1 FY 19

INR Mn

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Infotainment
Games
5%
11%
76
156
Tones 39%
576
Video & Editorials
41%
600
Contest 4%
65
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*Others (Infotainment, Data products, Speech products etc.)

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P&L Q2 FY2019

P&L(INR Mn)	Q2 FY19	Q1 FY19 % Growth
Net Revenue	1,474	1,507 -2%
Content	613	603 2%
Other COGS	59	78 -24%
Gross Profit	802	825 -3%
Margin (%) Manpower Cost Severance cost Marketing Cost Other Opex	54.4% 413 28 85 178	54.8% 460 -10% 15 93% 58 47% 186 -4%
EBITDA	98	107 -9%
Margin (%) Depreciation	7% 55	7% 99 -44%
Operating Profit	43	8 444%
Margin (%) Other Income Exchange gain (Loss)	3% 31 167	1% (6) >100% 32 425%
Profit before Tax	240	33 618%
Tax	48	31 59%
Profit After Tax	192	3 6426%
Margin (%)	13%	0%

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Cash position

INR Mn	Jun 30, 2017	**Sept 30, 2017 **	**Dec 31, 2017 **	**Mar 30, 2018 **	**June 30, 2018 **	Sept 30, 2018
Gross Cash	2,866	2,782	2,843	3,052	3,169	3,486
Less: Total Debt	-	-	-	-	-	-
Net Cash	2,866	2,782	2,843	3,052	3,169	3,486

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Cash flow

INR Mn	Q1 FY'19	Q2 FY'19
EBIDTA	**107 **	**97 **
-Operatingnoncash items	35	31
Operating profit before working capital changes	142	128
Working Capital Changes:
(Increase)/ Decrease in Trade Receivables	186	(254)
Increase/ ( Decrease) in Trade Payables	10	230
(Increase)/DecreaseinOtherassets	(240)	224
Increase/ (Decrease) in Other Liabilities	24	(51)
Cash generated from operations	123	278
Taxes (Paid)/Refund	(78)	(45)
(Purchase)/ Sale of fixed assets	(19)	(12)
Dividend/Interestincome	22	30
Cash generated during the period	48	250
Sale of Mumbai Property	62	-
Other Financing activities		-
- Finance cost	(0.43)	-
- Others	0.20	3.76
Fx Impact onCashbalances	8	63
Net increase/(decrease) incash/cash equivalents	118	317
Opening Cash balance	3,052	3,169
Closing Cash balance	3,169	3,486

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Dividend & buyback

(INR Mn)	March 14	March 15	March 16	March 17	March 18
Dividend Payout ( Incl. Tax)	200	197	195	188	190
Dividend %	15%	15%	15%	15%	15%
Buyback (shares in Mn)	-	5.8	-	5.6	-
Buyback amount utilized	-	442	-	538	-

Dividend Policy : 75% Dividend payout or 15% Dividend, whichever is higher

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Balance sheet

INR Mn	As at Sep 30, 2018	As at Jun 30, 2018
Shareholders’ Funds	6022	5783
Non-Current Liabilities	34	37
Trade Payables	2176	1902
Current Liabilities	474	479
Total Liabilities	8706	8201
Fixed Assets	540	472
Deferred Tax Assets (Net)	458	464
Non-Current Assets	1406	1414
Cash and Cash Equivalents	3486	3169
Trade Receivables	1827	1517
Other Current Assets	989	1165
Total Assets	8706	8201

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Equity Snapshot

Particulars	Details
Script code (on NSE)	ONMOBILE
Share Price (INR)*	33.95
Shares outstanding (in Mn)**	106
Market Capitalization (INR Mn)**	3,588
Net Debt***	0
Cash and Cash equivalents (INR Mn)**	3,486

Notes:

*Closing share price on NSE on 28th September, 2018.

• ** Shares outstanding, Market Cap, Cash and cash equivalents as on 30th September, 2018.

*** Net Debt as on 30th September, 2018.

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For any queries mail us at: investors@onmobile.com