OnMobile Global Ltd. — Investor Presentation 2021

Nov 9, 2021

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 09, 2021

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 2021-22

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, 2021, 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

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P.V. Varaprasad Company Secretary

Encl: a/a

Investor Presentation

November 10[th] , 2021

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Agenda

1. Company & Products 2. 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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Proprietary & Confidential

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Company & Products

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OnMobile has global presence and scale in mobile entertainment

Provides end-to-end mobile entertainment solutions that include platform, apps, content partnerships, value-added services and professional services to telecom carriers across the globe

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99 Customers 80 Million across the globe monthly users

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23.2 Million App Installs Tones

59 Countries global presence

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1.2 Million Cum. gross additions Challenges Arena

7.2 Million monthly users Videos & Editorials

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Proprietary & Confidential

We are executing against our strategic pillars

• EXISTING CORE NEW/ EMERGING B2B PRODUCTS MOBILE GAMING PRODUCTS Tones

• Videos & Editorial Digitizing Mobile Quiz Games Launched Cloud Gaming

• operating model App platform

• • Digital Tones Install base • • B2B telco: launched with 1 Strong traction & customer telco and signed-up 3

• grew 8.2% QoQ pipeline customers

• •

• • 9 customer signups in Q2 (total Digital Tones revenue grew • B2C: launched Cash battles

• 15 customer signups)

• 6.5% QoQ & tournaments in India

• • 766k gross payers added in Q2

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Proprietary & Confidential

Key trends impacting growth of mobile gaming

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Smartphone users Mobile gamer growth Cloud/ 5G eSports audience &
driven by GenZ & Millennials gaming spend competitions
5B
4.3B 2.9B $4.8B ~600M
2.5B
495M
Non-
5G ready
2.1B $0.5B
5G ready
200M
2020 2023 2020 2023 2020 2023 2020 2023
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Social driving engagement

Mobile gamers 2X more likely to stay in game for social connections

Short gaming moments

10B hyper casual installs in 2020 350M play snackable FB games 140M Indian play sessions < 11 min

New Technologies

AI, AR, VR will continue to fuel innovative ways to combine gameplay and social interaction

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Proprietary & Confidential

Source: Newzoo,, Informa-Omdia, GMI, GIA Juniper Research, Mordor, emarketer, Statista, Facebook, OnMobile analysis

OnMobile’s gaming products leverage these technologies & trends

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• •
1000s of Quiz & Puzzles Short, best game moments
Content • •
Multiple languages 1000s of challenges
• •
Downloadable apk Vision AI (Artificial Intelligence)
Technology • •
Progressive Web App Cloud streaming on PWA
• •
Distribution Telcos & OTTs globally Telcos globally
•
Direct to Consumer
• •
Subscription Real Money battles
Monetization
• •
Ads Subscription
We are investing in an industry projected to grow rapidly
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Proprietary & Confidential

Challenges Arena saw terrific growth in Q2 across all key metrics

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	Q1 FY ‘22	Q2 FY ‘22	QoQ growth
Cum. Customer signups inquarter	6	15	+150%
Cum. Customers live	2	6	+200%
Cum. Gross Payers (end of qtr)	561k	1.2M	+114%
Net payers (end of qtr)	138k	256K	+86%

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Challenges Arena – Live Customers Screen Shots

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ONMO D2C - Cash Beta Launched in India on 3rd Nov’21

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Digital Ad Campaign
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Social Media
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Product screen

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Wallet Activities
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Profile or Friends page

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1 2

: ONMO B2B partnerships strong interest from telcos globally

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Strong interest from telcos globally as they see ONMO’s Short Game Moments & Cloud Streaming as truly different from any other platform

Status Update First co-branded launch completed with a 5G customer on 5[th] November 2021 SHORT GAMING Signed-up 3 additional customers

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CASUAL
ESPORTS
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ONMO B2B will see a similar growth trajectory like Challenges Arena

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13

Proprietary & Confidential

ONMO B2B – Product Screen Shots

Discover Screen Login Screen

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Battle Screen
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Challenge Screen

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14

Investment Rationale

• Stability and dominance in Investing in transformational Financials

• current products mobile gaming sector • • • Global Reach Investment, focus & execution Solid cash position

• • on mobile gaming with world• Dominating market share Healthy cash flow from class global team

• in Tones business operations • Huge opportunity globally • Debt free

• • Emerging turnaround story

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Proprietary & Confidential

Key Management

François-Charles Sirois

EXECUTIVE CHAIRMAN

François-Charles Sirois is currently President & CEO of Telesystem, a familyowned 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 co-founder 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.

Sanjay Baweja

MD & GLOBAL CEO, ONMOBILE

Sanjay was an Independent Director on the Board of OnMobile from September 2015 May 2020 and Global CFO since June 2020.

Sanjay has extensive experience in strategy, finance and Investor relations across sectors and has played key roles in mergers and acquisitions across geographies

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.

Krish Seshadri

CEO, ONMO

Krish joined OnMobile in August 2020. He has extensive experience in mobile, consumer internet & gaming across US, Europe, APAC & Middle East

Prior to OnMobile, he was CEO of Monster.com’s APAC & Middle East operations.

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

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

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Proprietary & Confidential

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Financials

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Financial Summary Q2 FY22 Actual

Gross Revenue

INR 1,367 Mn

• 6.5% YoY + 1.2% QoQ

Operating Profit

INR 63 Mn (4.8%)

• 47.9% YoY

• 47.0% QoQ

Normalized Operating profit : INR 121 Mn @ 9.3% Margin

Manpower cost

INR 326 Mn

• 11.5% YoY + 8.6% QoQ

One time Severance pay (INR 30 Mn); Normalized costs: down by 19.1% YoY and 1.4% QoQ

PAT

INR 27 Mn (2.0%)

• 65.1% YoY( - 83.8% QoQ

Normalized PAT : INR 83 Mn @ 6.4% Margin

Opex

INR 156 Mn

• 22.3% YoY + 35.2% QoQ

On a normalized basis, opex would be flat YoY and higher by 10.9% QoQ

Cash Profit

INR 70 Mn

• 35.8% YoY

• 39.3% QoQ

Normalized Cash Profit : INR 126 Mn with 16.0% YoY and 9.1% QoQ growth.

EBITDA

INR 90 Mn (6.9%)

• 41.2% YoY - 37.8% QoQ

Normalized EBITDA:INR 148 Mn @ 11.4% Margin

DSO

128 Days

• 12 Days YoY + 6 Days QoQ

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Proprietary & Confidential

Financial Summary H1- FY22 Actual

Gross Revenue

Opex

Manpower cost

INR 2,718 Mn

INR 626 Mn

INR 271 Mn

• 7.2% YoY

• 1.7% YoY

• 11.5% YoY

95.7% AOP Ach.

One time Severance pay (INR 30 Mn); Normalized cost: down by 15.8% YoY

On a normalized basis, opex is down by 11.9% YoY.

Operating Profit

Cash Profit INR 185 Mn

PAT

INR 182 Mn (7.0%) INR 191 Mn (7.4%)

• 36.2% YoY

• 3.2% YoY

• 29.7% YoY

Normalized PAT : INR 248 Mn with a Normalized Cash Profit : INR 242 growth of 25.8% YoY (at 9.6% Mn with a de-growth of 8.1% YoY Margin)

Normalized Operating profit : INR 240 Mn @ 9.3% Margin

EBITDA

INR 236 Mn (9.1%)

• 32.9% YoY

Normalized EBITDA:INR 294 Mn @ 11.3% Margin

DSO

128 Days

• 12 Days YoY

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Proprietary & Confidential

Financial Highlights

• Revenue grew by 1.2% QoQ. Signed cumulative 15 customers for Challenges Arena. This has huge growth potential as

• we see exponential increase in MAU. QoQ revenues doubled for Challenges Arena.

• ONMO D2C Cash beta launched on 3 rd November’21 across permissible states in India

• ONMO’s first B2B 5G Telco launched on 5th November’21

• Our cost rationalization efforts are continuing and have yielded savings with a reduction of 11.5% YoY in manpower costs. However, it grew by 8.6% QoQ mainly due to one time severance pay of INR 30 Mn

• Other Opex cost increased by 35.2% QoQ and 22.3% YoY primarily due to one time costs

• EBITDA at INR 90 Mn with a margin of 6.9% for the quarter. The decline in EBITDA was due to increase in severance cost of INR 30 Mn and Opex cost in the quarter. Normalized EBITDA INR 148 Mn @ 11.4% Margin

• Operating Profits of INR 63 Mn with a margin of 4.8%. Normalized EBITDA INR 121 Mn with a margin of 9.3%

• DSO improved to 128 days in Q2FY22 vs 140 days in Q2FY21.

20

P&L Q2 FY22

P&L(INR Mn)	Q2 FY22	Q1 FY22	QoQ Gr %	Q2 FY21	YoY Gr %
Gross Revenue	1,367	1,351	1.2%	1,462	-6.5%
COGS	714	711	0.5%	730	-2.2%
Gross Profit	653	640	1.9%	731	-10.7%
Margin (%)	50.0%	49.7%		52.2%
Manpower Cost	326	300	8.6%	368	-11.5%
Marketing Cost	80	80	0.8%	82	-1.8%
Other Opex	156	115	35.2%	127	22.3%
EBITDA	90	145	-37.8%	154	-41.2%
Margin (%)	6.9%	11.3%		11.0%
Depreciation	28	26	3.9%	33	-16.5%
Operating Profit	63	119	-47.0%	121	-47.9%
Margin (%)	4.8%	9.2%		8.6%
Profit After Tax	27	164	-83.8%	76	-65.1%
Margin (%)	2.0%	12.7%		5.4%
EPS (Diluted)	0.3	1.5	-83.6%	0.7	-65.9%
Cash Profit	70	115	-39.3%	109	-35.8%

*COGS & UFF refers to Content Cost, Contest / Gratification Cost and Customer Acquisition Cost

P&L H1 FY22

P&L(INR Mn)	1H FY22	1H FY21	Growth %
Gross Revenue	2,718	2,930	-7.2%
COGS	1,425	1,461	-2.5%
Gross Profit	1,293	1,469	-12.0%
Margin (%)	49.9%	52.3%
Manpower Cost	626	708	-11.5%
Marketing Cost	160	134	19.4%
Other Opex	271	276	-1.7%
EBITDA	236	351	-32.9%
Margin (%)	9.1%	12.5%
Depreciation	54	67	-19.0%
Operating Profit	182	285	-36.2%
Margin (%)	7.0%	10.1%
Profit After Tax	191	197	-3.2%
Margin (%)	7.4%	7.0%
EPS (Diluted)	1.8	1.9	-4.7%
Cash Profit	185	264	-29.7%

*COGS & UFF refers to Content Cost, Contest / Gratification Cost and Customer Acquisition Cost

Revenue by Geography

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Gross Revenue Gross Revenue Gross Revenue
INR 1,367 Mn INR 1,351 Mn INR 1,462 Mn
1.3% 1.4% 1.7%
6.4% 6.8% 5.8%
Americas
15.4% 14.3% 13.7% Rest of Asia
India
17.6%
18.2% 18.5% ME&A
Europe
61.3%
58.7% 59.1%
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Q2FY22

Q1FY22

Q2FY21

Note: Americas include – Latin America and North America

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Revenue by Products

Gross Revenue INR 1,367 Mn

Gross Revenue Gross Revenue INR 1,351 Mn INR 1,462 Mn

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2.7% 3.0% 2.7%
3.7% 3.6% 4.1% Infotainment
6.9% 6.7%
9.5%
Contest
Games
39.4% 40.2% Tones
37.1%
Challenges Arena
Videos
0.9% 0.5% 0.0%
46.4% 46.1% 46.6%
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Q2FY22
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Q1FY22

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Q2FY21
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Cash Position

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||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|INR Mn|Q3 FY20|Q4 FY20|Q1 FY21|Q2 FY21|Q3 FY21|Q4 FY21|Q1 FY22|Q2 FY22|
|Gross Cash|2,525|2,745|2,659|2,323|2,736|2,662|2,272|1,778|
|-|-|-|-|-|-|-|-|
|Less: Total Debt|
|Net Cash|2,525|2,745|2,659|2,323|2,736|2,662|2,272|1,778|
|Dividend|payout|Net|Cash|Net|Cash|Collection|Net|Cash|Net|cash|
|for|FY’19:|INR|efficiency|
|decreased|in|decreased|in|decreased|in|decreased|
|191 Mn|
|Q1FY21 due to:-|Q2FY21 due to:-|Q1FY21|due|due to|
|a)|Rob0|a)|Customer|Higher|to:-|a)|Customer|
|Investment|of|contract|content|a)|Chingari|acquisition|
|INR 54.2 Mn|acquisition|cost|Investment|cost|
|payouts|
|b)|Buyback|of|payment|of|INR|of|INR|318|payment|of|
|Equity|Share|for|363 Mn|Mn|INR|365|
|INR 65.2 Mn|b)|Buyback|of|b)|Other|R&D|Mn|
|Equity|Share|for|Cost|of|INR|b)|R&D|in|
|INR 2.5 Mn|71 Mn|Stealth|INR|
|109 Mn|
|c)|Rob0|
|acquisition|
|INR 31 Mn|

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25

Ratio Analysis

Ratio Analysis	Q1 FY20	Q2 FY20	Q3 FY20	Q4 FY20	Q1 FY21	Q2 FY21	Q3 FY21	Q4 FY21	Q1 FY22	Q2 FY22
Profit and Loss
International revenue / revenue	84%	85%	84%	84%	86%	86%	85%	85%	86%	85%
Grossprofit / revenue	56%	55%	55%	51%	52%	52%	51%	50%	50%	50%
Revenueper Employee (INR'000)	1,838	2,022	2,120	2,161	2,107	2,076	2,084	1,984	2,088	2,226
EBITDAper Employee (INR'000)	51	146	158	171	284	221	253	229	225	147
Aggregate employee costs /	31%	29%	28%	25%	24%	26%	25%	26%	23%	25%
revenue
Operating profit / revenue	0%	4%	5%	6%	12%	9%	10%	10%	9%	5%
Profit before tax (PBT) / revenue*	2%	5%	7%	10%	14%	8%	12%	11%	17%	4%
Balance sheet
Current ratio	1.85	1.84	1.79	2.12	2.14	2.10	2.24	2.03	2.05	1.76
Day’s sales outstanding(Days)	143	155	140	144	137	140	120	116	122	128
Liquid assets / total assets (%)	55%	53%	55%	58%	57%	53%	53%	51%	48%	44%
Liquid assets / total sales ratio	3.5	3.4	3.4	3.5	3.6	3.3	3.3	3.5	3.4	3.1

*PBT before Exceptional Gains

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Balance Sheet

INR Mn	Sept'21	Mar'21
Shareholders’ Funds	6,294	6,261
Non-Current Liabilities	191	198
Trade Payables	1,786	1,862
Current Liabilities	801	675
Total Liabilities	9,072	8,996
Fixed Assets	288	337
Goodwill	679	597
Intangible asset under Development	398	183
Right to use Assets	68	77
Investment	319	56
Financial Assets	54	54
Deferred Tax Assets	555	570
Non-Current Assets	2,228	1,966
Cash and Cash Equivalents	1,778	2,662
Trade Receivables	2,207	1,970
Other Current Assets	499	525
Total Assets	9,072	8,996

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For any queries mail us at investors@onmobile.com

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