OnMobile Global Ltd. — Investor Presentation 2019

Oct 30, 2019

onmobile

ONMOBILE 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 I F: +91 80 4009 6009 CIN - L64202KA2000PLC027860 Email - investors@onmobile.com

www.onmobile.com

October 30, 2019

To, The Secretary BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Fort Mumbai-400 00 I BSE Symbol: 532944

The Secretary National Stock Exchange of India Limited Bandra Kurla Complex Bandra East Mumbai - 400 051 NSE Symbol : ONMOBILE

Dear Sir/Madam,

Sub: Investor Presentation- 02 FY 2019-20

Pursuant to Regulation 30 & 46 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith a copy of the Investor Presentation on the Financial Results of the Company for the quaiier ended September 30, 2019 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, \J V<!ua.p'o'M�

P.V. Varaprasad Company Secretary

Encl: a/a

Investor presentation October 2019

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.

Agenda

• History and milestones
• Product portfolio
• Strategy FY20
• Financials Q2 FY20

The Global Leader in Mobile Entertainment

Global presence

1.68 BILLION CONSUMER REACH

79 CUSTOMERS ACROSS THE GLOBE

900 MILLION DIGITAL REACH

100+ MILLION MONTHLY ACTIVE USERS ACROSS ALL PRODUCTS

10+ MILLION APP INSTALLS

History and milestones

Rs 419 Mn

Incorporated asOnscanTechnologiesIndia		Name changed toOnMobileLimitedAcquisition of VoxMobili, FranceAmount: RsMn12: 1 Bonus Issueof shares	Global1,431	Purchase ofIntellectualProperty ofMusic On, Indiafor Rs43 Mn		1:1 Bonus Issueof sharesBuyback of4,000,000 equityshares.Amount Spent:Rs238 Mn, Avg.Price: Rs59		Voluntary open offerby Promoter, No ofShares:11,900,000.Amount Spent: Rs476 Mn, Price: Rs40/-Buyback of 5,800,000equity shares,Amount Spent: Rs442 MnAvg. Price: Rs	76	Promotertakes activerole.FrançoisCharles Siroistakes over asCEO	OnMobileGlobalLimitedrenews itscontract withTelefónicaEspaña
2000		2007		2009		2011		2014		2017	2019
	2006
	Rs1,300 Mninvestment byDeutsche Bank AG,Jade Dragon(Mauritius), andKings RoadInvestments(Mauritius)Acquisition ofIT Finity, India for		2008Public Issue:10,900,545shares, RsMn@ Rs440 pershareAcquisition ofTelisma, FranceAmount: RsMn	4,796801	2010Registrationunder SpecialEconomic Zone,BangaloreAcquisition ofassets ofDilithiumTechnologies,USA for RsMn	146	2013Acquisitionof LiveWire, USAfor Rs1,007 Mn		2016Buyback of5,600,000 equityshares. AmountSpent: RsMn. Avg. Price:Rs96	538	2018Acquisition ofApplandAB –aleader in gamesand kids apps

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

Product portfolio

Suite of products

Strategy FY20

• Grow Videos
• Expand Games
• Leverage Tones
• Digitize contests
• Beyond operator wallet

ONMO Videos

Entertain yourself

With amazing curated content on your fingertips, your entertainment quotient will be more than now

ONMO Games

Challenge yourself

With great games to challenge your cognitive abilities, your zeal will be more than now

ONMO Tones

Express yourself

With our ONMO tones, you will be able to express yourself and build meaningful relationships, more than now

Proprietary & Confidential

ONMO Contests

Reward yourself

With grand prizes to win from our impressive trivia based quizzes, your enthusiasm will be more than now

Q2 Update

Grow Videos	Expand Games	Leverage Tones	Digitize Contests
Europe1. Won a deal to launchONMO Kids with a largeoperator in Italy, launchplanned in Q3 FY20.2. Vodafone Spain KidsPlanet reached 10K usersub base in Sept'19within 4 months oflaunch	EuropeLaunched ONMO Games withan operator in GreeceMiddle EastLaunched Games withleading operators in Qatarand SudanAppland:Launched two B2C gamesclub in Serbia and BulgariaLatin America:Launched Games in July witha leading Operator in Brazil	India1. Introduced Non-Telco wallet paymentoption through Tones app2. Launched Progressive Web Applicationto expand the digital reach for Tones3. Caller tunes App touched 5 Mn installswith a leading Operator in India4. Signed SMS / WAP agreement with oneof leading operators for 1 year in IndiaEuropeRevamped "Tonos de Espara" servicetouched 40K users within 3 months oflaunchMiddle EastStarted distributing Tones app with Arabicsupport to offer localized experience	India1. Launched contests with aleading handset manufacturer inIndia. Monthly 200K active users.High engagement with 11.2 pageviews/session Vs industrybenchmark of 3.8.2.New business model of Adfunded contest launched;integrated with couple of adnetworks3. Launched 6 theme basedcontests on cricket, movies, logos,math`s, music etc.4. Won 2 deals for contestlaunches with two leading OEMs,product launch planned in Q3 FY205. Partnership with Bharti Airtel topower contests on Thanks app.

Financials

Q2 FY2020 Key Highlights

Revenue: Gross revenue registered a growth of 6.4% on a QoQ basis. Gross revenue is reduced by contract acquisition cost of INR 46 Mn which is being set off against revenue from FY20 onwards due to introduction of accounting standard IND AS 115

Product wise revenue: All major product lines witnessed QoQ revenue growth –

• Tones +4.6% ; Video +13.1% ; Games +1.2%

Manpower: Exit headcount for this quarter stood at 734 as against 758 people last quarter. Headcount rationalization in international geographies with outsourcing of work to lower cost countries have resulted in manpower cost savings in the current quarter.

Opex: Focus on cost optimization and closure of loss making entities continues resulting in a 15% reduction in opex.

EBITDA: On a like for like basis, without the IND AS 115 adjustment, EBITDA margin at 10.3% has more than doubled in the current quarter

Profit Before Tax: PBT at INR 71 Mn has grown by 131% from last quarter despite higher forex losses and lower income from investment

Profit After Tax: Lower PAT for the quarter due to higher tax outflow. Tax outflow was higher due to reversal in deferred tax asset arising out of adoption of lower tax rate in India

Proprietary & Confidential

P&L Q2 FY2020

P&L(INR Mn)	Q2 FY20	Q1 FY20	% Growth
Revenue	1,484	1,395	6%
Less:Contract acquisition cost	(46)	-
Net Revenue	1,438	1,395	3%
Content	633	582	9%
Other COGS	57	69	-17%
Gross Profit	748	744	0%
Margin (%)	52.0%	53.3%
Manpower Cost	407	413	-2%
Severance cost	14	22	-34%
Marketing Cost	80	74	9%
Other Opex	139	164	-15%
EBITDA	107	71	51%
Margin (%)	7%	5%
Depreciation	47	67	-30%
Operating Profit	60	4	1596%
Margin (%)	4%	0%
Other Income	22	30	-27%
Exchange gain (Loss)	(11)	(3)	nm
Profit before Tax	71	31	131%
Tax	61	9	554%
Profit After Tax	10	21	-51%
Margin (%)	1%	2%

Total revenue by geography (Q-o-Q)

Q1 FY'20 Q2 FY'20

Revenue by products (Q-o-Q)

Q1 FY'20 Q2 FY'20 INR Mn

Cash position

INR Mn	Dec 31, 2017	Mar 30, 2018	June 30, 2018	Sept 30, 2018	Dec 31, 2018	Mar 31, 2019	Jun 30, 2019	Sept 30, 2019
Gross Cash	2,843	3,052	3,169	3,486	2,672	2,723	2,510	2,344
Less: Total Debt	-	-	-	-	-	-	-	-
Net Cash	2,843	3,052	3,169	3,486	2,672	2,723	2,510	2,344

Cash flow

		INRMn
Particulars`	Q1 FY'20	Q2 FY'20
EBIDTA	71	107
-Operating non cash items	(4)	(2)
Operating profit before working capital changes	67	105
Working Capital Changes:
(Increase)/ Decrease in Trade Receivables	(78)	(206)
Increase/ ( Decrease) in Trade Payables	(207)	242
(Increase)/ Decrease in Other assets	(14)	(312)
Increase/ (Decrease) in Other Liabilities	36	121
Cash generated from operations	(196)	(50)
Taxes (Paid)/Refund	(27)	(69)
(Purchase)/ Sale of fixed assets	(27)	(42)
Acquisition of Appland	-	-
Dividend/Interest income/ Capital Appreciation	37	28
Cash generated during the period	(213)	(133)
Other Financing activities
-Finance cost	(4)	(3)
-Dividend Tax Paid	-	(33)
-Others	-	-
FxImpact on Cash balances	4	3
Net increase/(decrease) in cash/cash equivalents	(213)	(166)
Opening Cash balance	2,723	2,510
Closing Cash balance	2,510	2,344

Balance sheet

INR Mn	As at Sept 30,2019	As at Mar 30,2019
Shareholders' Funds	5,525	5,658
Non-Current Liabilities	445	275
Trade Payables	2,154	2,117
Current Liabilities	990	676
Total Liabilities	9,114	8,726
Fixed Assets	372	438
Goodwill	738	763
Right to use Assets	160	-
Financial Assets	63	65
Deferred Tax Assets	553	522
Non-Current Assets	1,452	1,432
Cash and Cash Equivalents	2,344	2,723
Trade Receivables	1,847	1,651
Other Current Assets	1,585	1,132
Total Assets	9,114	8,726

Dividend & buyback

(INR Mn)	March15	March16	March17	March18	March19
Dividend Payout ( Incl. Tax)	197	195	188	190	191
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

Equity Snapshot

Particulars	Details
Script code (on NSE)	ONMOBILE
Share Price (INR)*	36
Shares outstanding (in Mn)**	106
Market Capitalization (INR Mn)**	3,780
Net Debt***	0
Cash and Cash equivalents (INR Mn)**	2,344

Notes:

*Closing share price as on 30th September, 2019

** Shares outstanding, Market Cap, Cash and cash equivalents as on 30th September, 2019

*** Net Debt as on 30th September, 2019

For any queries mail us at:

investors@onmobile.com