OnMobile Global Ltd. — Investor Presentation 2020

Nov 2, 2020

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

November 02, 2020

To Department of Corporate Services, The Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Bandra (East) Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 532944 Scrip Code: ONMOBILE

Dear Sir/Madam,

Sub: Investor Presentation- Q2 FY 2020-21

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 quarter and half-year ended September 30, 2020, which is made available on Company’s website: www.onmobile.com.

Request you to kindly take the same on record.

Yours sincerely, For OnMobile Global Limited

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P V Varaprasad Company Secretary

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Encl: a/a

Investor Presentation November 3, 2020

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Agenda

1. Company Overview

2. Products & Solutions

3. Financials

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2

Proprietary & Confidential

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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3

Proprietary & Confidential

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1. Company Overview

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Global presence and scale in mobile entertainment

2.52 Billion consumer reach

OnMobile provides end-to-end mobile entertainment solutions that include platform, apps, content partnerships, and professional services to carriers across the globe

1.40 Billion digital reach

107 Million monthly active users

110 Customers across the globe

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Proprietary & Confidential

Products & Strategy

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B2B PRODUCTS
Digitized core
products and
operating
model
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• Tones

• Contests

• CVAS/ Videos

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TECH INVESTMENTS
Invested in AI
& Cloud
Streaming
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• Rob0

• • Appland

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B2C PRODUCT
Launching
Gaming platform
by
Dec ‘20/Jan ‘21
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• Social

• Cloud Streaming

• • eSports

• • AI

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6

Proprietary & Confidential

Key Management

François-Charles Sirois EXECUTIVE CHAIRMAN

François-Charles Sirois is currently President & CEO of Telesystem, a family-owned media & technology holding, Executive Chairman of OnMobile Global, and Chairman of Zone 3, one of Canada’s largest creator and producer of content.

François-Charles Sirois is also cofounder of Stingray Digital Group and has more than 20 years of experience in corporate mergers, acquisitions & venture capital.

Before joining Telesystem, Mr. Sirois started his career building start-up companies in e- commerce and mobile payment services.

Krish Seshadri

CHIEF EXECUTIVE OFFICER

Krish joined OnMobile in August 2020 as CEO. He has two decades experience in consumer internet & tech space across US, Europe, APAC & Middle East

Most recently, he was CEO of Monster.com’s APAC and Middle East operations.

Previously, he held leadership roles at gaming pioneer Zynga, Facebook & content leader AOL-Verizon

He has an engineering degree from Stanford University and MBA from London Business School

Sanjay Baweja GLOBAL GROUP CFO

Sanjay was Independent Director on OnMobile’s Board from September 2015. In May 2020, Board appointed him as Global Group CFO of OnMobile.

Sanjay has extensive experience in strategy, finance and Investor relations across sectors.

Previously, he was Group President at Bhartiya group, Group CFO at Suzlon, Flipkart and Tata Communications.

Sanjay is a Chartered Accountant and Cost and Work Accountant.

Sanjay Bhambri

CHIEF OPERATING OFFICER

Sanjay is a global leader with deep expertise in leading sales & operations across industries.

He re-joined OnMobile in 2012, as Regional VP and played a critical role in driving growth in India, APAC & Middle East & Africa.

Prior to this, he was in leadership roles at Enzen Global Solutions and Hughes Network.

Sanjay has an MBA from FMS and holds an executive certification from Harvard Business School.

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7

Proprietary & Confidential

Investment Rationale

Stability and dominance in current products

• Global Reach

• Dominating market share

• in Tones business

Investing in transformational mobile sectors

• Investment and focus on

cloud and social gaming,

a massive opportunity

• Emerging turnaround story

Financials

• Solid cash position

• Healthy cash flow from operations

• Debt free

• High dividend yield

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8

Proprietary & Confidential

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1. Products & Solutions Consolidating and Digitizing our core B2B products

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Core Products deployed at carriers

TONES

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CONTESTS

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VIDEOS

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GAMES

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10

Proprietary & Confidential

Products deployed with non-telco/ digital players

Samsung Galaxy

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Micromax

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PhonePe

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bKash

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11

Proprietary & Confidential

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3. Financials

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Financial Highlights

• Revenues remains stable QoQ; YoY revenue reduction of 1.5% is from Africa & Middle East region.

• Gross margin remains stable at 52.2% as compared to 52.4% in Q1FY21.

• EBITDA excluding one time items in previous quarter grew by 12.5% QoQ.

• EBITDA, Operating Profits grew by 43.4% and 101.3% respectively on YoY basis. This is mainly due to cost

• optimization efforts.

• PAT at INR 78 Mn grew more than 7 times YoY basis.

• Cash stood at INR 2,323 Mn. This is after customer contract cost payment of INR 361 Mn and Buyback of INR 2.5

• Mn during the quarter.

• For 6 months ended period Revenue grew by 2%. EBITDA, Operating Profit and PAT grew by 98%, 348% and

• 522% respectively over last year.

13

P&L Q2 FY21

P&L(INR Mn)	Q2 FY21	Q1 FY21 QoQ Gr % Q2 FY20 YoY Gr %
Gross Revenue	1,462	1,469 -0.5% 1,484 -1.5%
Less Customer acquisition cost as per the new contract	(62)	(60) 2.7% (46) 34.1%
Net Revenue	1,400	1,408 -0.6% 1,438 -2.6%
Content	654	660 -0.8% 633 3.4%
Other COGS	14	11 28.0% 14 -0.8%
Gross Profit	731	738 -0.9% 791 -7.5%
Margin (%) Manpower Cost Severance cost Marketing Cost Other Opex	52.2% 365 3 82 127	52.4% 55.0% 332 9.8% 407 -10.4% 7 -53.3% 14 -76.4% 52 56.6% 80 1.8% 148 -14.1% 182 -30.0%
EBITDA	154	198 -22.2% 107 43.4%
Margin (%) Depreciation	11.0% 33	14.0% 7.5% 34 -2.4% 47 -30.2%
Operating Profit	121	164 -26.3% 60 101.3%
Margin (%) Other Income Exchange gain (Loss)	8.6% 15 (19)	11.6% 4.2% 24 -37.3% 22 -30.3% 4 -541% (11) 80%
Profit before Tax	117	193 -39.5% 71 64.0%
Tax	39	72 -45.9% 61 -35.9%
Profit After Tax	78	121 -35.7% 10 642.2%
Profit / (Losses)from Associates	(2)	- 100.0% - 100.0%
Profit attributable to Group	76	121 -37.1% 10 626.3%
Margin (%)	5.4%	8.6% 0.7%

14

P&L H1 FY21

P&L(INR Mn)	H1 FY21	H1 FY20 Change YoY Gr %
Gross Revenue	2,930	2,878 52 1.8%
Less Customer acquisition cost as per the new contract	(122)	(47) (76) 162.5%
Net Revenue	2,808	2,832 (24) -0.8%
Content	1,314	1,214 100 8.2%
Other COGS	25	34 (9) -25.7%
Gross Profit	1,469	1,584 (115) -7.3%
Margin (%) Manpower Cost Severance cost Marketing Cost Other Opex	52.3% 697 11 134 276	55.9% 820 (123) -15.0% 36 (25) -70.4% 154 (20) -13.2% 395 (120) -30.2%
EBITDA	351	178 174 97.7%
Margin (%) Depreciation	12.5% 67	6.3% 114 (48) -41.6%
Operating Profit	285	64 221 347.9%
Margin (%) Other Income Exchange gain (Loss)	10.1% 40 (15)	2.2% 52 (12) -23.9% (14) (1) 10%
Profit before Tax	309	102 207 203.8%
Tax	111	70 41 58.2%
Profit After Tax	199	32 167 522.5%
Profit / (Losses)from Associates	(2)	- (2) 100.0%
Profit attributable to Group	197	32 165 517.2%
Margin (%)	7.0%	1.1%

15

Financial Summary Q2 FY21

Gross Revenue

INR 1,462 Mn

1.5% YoY 0.5% QoQ

Operating Profit

INR 121Mn

101.3% YoY 26.3% QoQ Op. Profit Margin 8.6%

Gross Profit

INR 731Mn

7.5% YoY 0.9% QoQ Gross Profit Margin 52.2%

PAT

INR 77 Mn 638.2% YoY 36.0% QoQ PAT Margin 5.5%

EBITDA

INR 154 Mn 43.4% YoY 22.2% QoQ EBITDA Margin 11.0%

Net Cash

INR 2,323 Mn

Post customer contract cost payment of INR 361.2 Mn and Buyback of INR 2.7 Mn

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Revenue by geography – (QoQ)

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Gross Revenue Gross Revenue
INR 1,462 Mn INR 1,469 Mn
8 1% 8 1% NAM
18 21
1% 1%
84 84
LATAM
6% 6%
200 205
14% 14%
Asia
257 270
India
17% 18%
INR Million
ME&A
895 881 Europe
61% 60%
Q2FY21 Q1FY21
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17

Revenue by products – (QoQ)

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Gross Revenue Gross Revenue
INR 1,462 Mn INR 1,469 Mn
Infotainment
3%
40 50 3%
60 4% 57
4%
Contest
139 9% 142
10%
Games
37%
542 554 38% Tones
INR Million
Videos
47%
45%
681 666
Q2FY21 Q1FY21
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Cash position

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||||||||||
|---|---|---|---|---|---|---|---|---|
|INR Mn|Q3 FY19|Q4 FY19|Q1 FY20|Q2 FY20|Q3 FY20|Q4 FY20|Q1 FY21|Q2 FY21|
|Gross Cash|2,672|2,723|2,510|2,344|2,525|2,745|2,659|2,323|
|-|-|-|-|-|-|-|-|
|Less: Total Debt|
|Net Cash|2,672|2,723|2,510|2,344|2,525|2,745|2,659|2,323|
|Contract|Dividend|payout|Net|Cash|Net|Cash|
|for|FY’19:|INR|
|acquisition|cost|decreased|in|decreased|in|
|191 Mn|
|paid|in|Q2|FY’20:|Q1FY21 due to:-|Q2FY21 due to:-|
|INR 323 Mn|a)|Rob0|a)|Customer|
|Investment|of|contract|
|INR 54.2 Mn|acquisition|cost|
|b)|Buyback|of|payment|of|INR|
|Equity|Share|for|363 Mn|
|INR 65.2 Mn|b)|Buyback|of|
|Equity|Share|for|
|INR 2.5 Mn|

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19

Ratio Analysis

Ratio Analysis	Q3 FY19	Q4 FY19	Q1 FY20	Q2 FY20	Q3 FY20	Q4 FY20	Q1 FY21	Q2 FY21
Profit and Loss
International revenue / revenue	84%	83%	84%	85%	84%	84%	86%	86%
Grossprofit / revenue	57%	57%	56%	55%	55%	51%	52%	52%
Revenueper Employee(INR'000)	1,832	1,758	1,795	1,959	2,039	2,080	2,021	2,011
EBITDAper Employee (INR'000)	45	66	51	146	158	171	284	221
Aggregate employee costs / revenue	29%	28%	31%	29%	28%	25%	24%	26%
Operating profit / revenue	1%	2%	0%	4%	5%	6%	12%	9%
Profit before tax(PBT)/ revenue*	0%	3%	2%	5%	7%	10%	14%	8%
Effective tax rate - Tax / PBT*	nm	51%	30%	85%	34%	37%	37%	34%
Balance sheet
Current ratio	1.86	1.82	1.85	1.84	1.79	2.12	2.15	2.10
Day’s sales outstanding (Days)	141	139	143	155	140	144	137	140
Liquid assets / total assets(%)	51%	50%	55%	53%	55%	58%	56%	53%
Liquid assets / total sales ratio	2.9	3.1	3.5	3.4	3.4	3.5	3.5	3.3

• PBT considered before Exceptional items

20

Balance Sheet

INR Mn	Sept'20	Mar'20
Shareholders’ Funds	5,949	5,900
Non-Current Liabilities	188	229
Trade Payables	2,037	2,242
Current Liabilities	637	439
Total Liabilities	8,810	8,810
Fixed Assets	394	354
Goodwill	582	534
Right to use Assets	95	136
Investments in Associates	53	-
Financial Assets	58	60
Deferred Tax Assets	604	621
Non-Current Assets	1,399	1,366
Cash and Cash Equivalents	2,323	2,745
Trade Receivables	2,328	2,320
Other Current Assets	974	674
Total Assets	8,810	8,810

21

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For any queries mail us at investors@onmobile.com

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