OnMobile Global Ltd. — Investor Presentation 2019

Aug 1, 2019

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

www.onmobile.com

August 01, 2019

To, The Secretary BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Fort Mumbai-400 001 BSE Symbol: 532944

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

Dear Sir/Madam,

Sub: Investor Presentation- 01 FY 2019-20

Pursuant to Regulation 30 & 46 of SES! (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 quarter ended June 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. V. Varaprasad Company Secretary -V- � \:Jo--u-;>�

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Encl: a/a

Investor presentation August 2019

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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 FY20

• Financials Q1 FY20

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The Global Leader in Mobile Entertainment

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Global presence

74+ COUNTRIES

113+ 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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Strategy FY20

• Grow Videos

• Expand Games

• Leverage Tones

• Digitize contests

• Beyond operator wallet

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ONMO videos

Entertain yourself

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Grow Videos

Europe

• Redefined user interface of Emocion and selected categories for enriched consumer experience and engagement

• Launched edutainment proposition for Kids with a leading operators in Spain with parental control capabilities

Latin America

• Launched lifestyle destination with a leading operator in Mexico for users to consume credit rewards from operator

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ONMO games

Challenge yourself

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Expand Games

Europe

• Awarded POC for Three Games Hub to manage gaming ecosystem for Three Group. POC is for Austria

Latin America

• Launched games with leading operators in Brazil and Mexico

Appland

• Appland added 5 clubs across the globe i.e, in Netherlands, Ireland, Iraq, Kenya and India

• Signed a contract with the largest games studio in the world to provide inbuilt games in branded tablets

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ONMO tones

Express yourself

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Leverage Tones

Asia

• RBT App installs crossed 10 Mn with two major operators in India

• Launched DialerTones service with a major Indian operator for self care app through RBT SDK contributing 20% of service activation revenue

• Demonstrated network independent Video RBT PoC app

Europe

• Launched re-branded RBT service Tonos De Espara with new app with one of the leading operators in Spain

• Launched a new RBT app version with one of the leading operators in Spain.

MEA

• Launched RBT service in three new countries in Middle East region. With this launch, we are now present in 5 out 6 GCC countries

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ONMO contests

Reward yourself

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Digitize Contests

Asia

• Launched the digital contest on PWA (Progressive Web App) for a leading operator in India

• Launch of event based contest in India

• Digital contest support for multimedia content

• Cricket world cup theme based “Predict n Win” contest to build user engagement

• Launched UnR contest based on recharge top-ups with a leading operator in Asia

MEA

• Won a deal for contest in Middle east with product launch planned for in Q2 FY20

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Financials

Update on Q1 FY20

• Signed / launched new products & services with 16 customers

• Q1 revenue impacted due to

• INR appreciation versus USD and Euro – impact of 1.3%

• Games subscription revenue grew by 46% QoQ

• 3.9% QoQ decline in overall Games revenue due to one time revenue reversal with one customer.

• Headcount decreased from 797 in Q4 to 759 in Q1 with savings expected to accrue in remaining part of the year

• Increase in depreciation due to application of new accounting standard (IndAS 116) – reclass of lease rent of INR 11 Mn from Opex to Depreciation

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P&L Q1 FY2020

P&L(INR Mn)	Q1 FY20	Q4 FY19 % Growth
Net Revenue	1,395	1,433 -3%
Content	582	589 -1%
Other COGS	69	74 -6%
Gross Profit	744	771 -3%
Margin (%) Manpower Cost Severance cost Marketing Cost Other Opex	53.3% 413 22 74 164	53.8% 399 4% 11 96% 84 -12% 192 -15%
EBITDA	71	84 -16%
Margin (%) Depreciation	5% 67	6% 58 17%
Operating Profit	4	27 -87%
Margin (%) Other Income Exchange gain (Loss)	0% 30 (3)	2% 36 -16% (17) nm
Profit before Tax	31	45 -32%
Tax	9	23 -60%
Profit After Tax	21	22 -4%
Margin (%)	2%	2%

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Total revenue by geography (Q-o-Q)

Q4 FY 19

Q1 FY 20

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India
16%
M5&A
17% Europe
59%
Asia
5%
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India
19%
ME&A
15%
Europe
58%
Asia
4%
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Revenue by products (Q-o-Q)

Q4 FY 19

Q1 FY 20

INR Mn

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Infotainement
Games
5%
13%
69 Tones
179
37%
527
Videos
41% Contest
586 5%
71
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Infotainement
Games 5%
12% 74
172
Tones
37%
520
Videos
Contest
41%
4%
572
57
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Cash position

INR Mn	Sept 30, 2017	Dec 31, 2017	Mar 30, 2018	June 30, 2018	Sept 30, 2018	Dec 31, 2018	Mar 31, 2019	Jun 30, 2019
Gross Cash	2,782	2,843	3,052	3,169	3,486	2,723	2,723	2,510
Less: Total Debt	-	-	-	-	-	-	-	-
Net Cash	2,782	2,843	3,052	3,169	3,486	2,723	2,723	2,510

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Cash flow

	INR Mn	INR Mn	INR Mn
	Particulars Q4 FY'19 Q1 FY‘20 EBIDTA 84 71 - Operating non cash items (6) (2) Operating profit before working capital changes 78 69 Working Capital Changes: (Increase)/Decrease in Trade Receivables 64 (78) Increase/ ( Decrease) in Trade Payables 135 (207) (Increase)/ Decrease in Other assets (169) (14) Increase/ (Decrease) in Other Liabilities (17) 36 Cash generated from operations 91 (194) Taxes (Paid)/Refund (55) (27) (Purchase)/ Sale of fixed assets (15) (26) Acquisition of Appland - - Dividend/Interest income/ Capital Appreciation 34 34 Cash generated during the period 55 (213) Other Financing activities - - - Finance cost - (4) - Dividend Paid - - - Others - - Fx Impact on Cash balances (5) 4 Net increase/(decrease) in cash/cash equivalents 50 (213) Opening Cash balance 2,672 2,723 Closing Cash balance 2,723 2,510
	Opening Cash balance	2,672	2,723
	Closing Cash balance	2,723	2,510

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Balance sheet

INR Mn	As at Jun 30, 2019	As at Mar 31, 2019
Shareholders’ Funds	5,684	5,658
Non-Current Liabilities	38	39
Trade Payables	1,909	2,117
Current Liabilities	1,066	861
Total Liabilities	8,697	8,675
Fixed Assets	396	437
Goodwill	760	763
Right to use Assets	165	-
Financial Assets	65	65
Deferred Tax Assets	537	522
Non-Current Assets	1,270	1,432
Cash and Cash Equivalents	2,510	2,723
Trade Receivables (Billed + Un-billed)	2,296	2,215
Other Current Assets	698	518
Total Liabilities	8,697	8,675

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Dividend & buyback

(INR Mn)	March 15	March 16	March 17	March 18	March 19
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

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Equity Snapshot

Particulars	Details
Script code (on NSE)	ONMOBILE
Share Price (INR)*	32
Shares outstanding (in Mn)**	106
Market Capitalization (INR Mn)**	3,414
Net Debt***	0
Cash and Cash equivalents (INR Mn)**	2,510

Notes:

• *Closing share price as on 28[th] June, 2019

• ** Shares outstanding, Market Cap, Cash and cash equivalents as on 30[th] June, 2019

• *** Net Debt as on 30[th] June, 2019

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