OnMobile Global Ltd. — Investor Presentation 2021

Feb 2, 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

February 02, 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- Q3 FY 2020-21

In furtherance to our intimation dated February 01, 2021 please find enclosed the revised Investor presentation for Q3 FY 21, which will be presented by the Company at the Earnings Call scheduled to be held today at 4.30 PM (IST). We regret any inconvenience caused to the Exchanges’ in this regard.

Kindly broadcast the same on your website.

Request you to kindly take the same on record.

Yours sincerely, For OnMobile Global Limited

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P V Varaprasad Company Secretary Encl: a/a

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Investor Presentation February 02, 2021

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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

2.84 Billion consumer reach 1.49 Billion digital reach

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

84.28 Million monthly active users 143 Customers across the globe 17.97 Million app installs 74 Countries global presence

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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
Cloud gaming
beta launch in Q1
FY ‘22
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• Social

• • Cloud Streaming

• • eSports

• • AI

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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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Proprietary & Confidential

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2. Products & Solutions

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Core B2B Products deployed at carriers

TONES

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CONTESTS

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VIDEOS & EDITORIAL

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GAMES

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10

Proprietary & Confidential

B2B Products deployed with non-telco/ digital players

Samsung Galaxy

Micromax

PhonePe

bKash

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11

Proprietary & Confidential

Challenges Arena is a Quiz Contest app on Android and iOS where you can challenge friends on various quiz and games

• Thousands of quiz questions – text, pics, audio video

• Play quiz challenges and get ranked

• Battle with opponents and get ranked

• Monetization model: subscription + advertisements

• Launching with one telco in India in Feb ‘21

• Launching with telcos internationally in Q1FY ‘22

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ONMO is a B2C cloud gaming platform where you can instantly play curated game moments/ battles with friends

• Play Instantly. No downloads

• Thousands of curated, best game

• Co-Play with friends

• Battle & compete with friends

• Launching B2C

• Completed alpha launch Dec ‘20/ Jan ‘21

• Beta of MVP Q1 FY ‘22

• Launch with monetization Q2 FY ‘22

• Launching B2B with telcos starting Q2 FY ’22

• Monetization model: eSports and subscription

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3. Financials

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Financial Highlights

• Gross Revenues continues to remain stable QoQ.

• Manpower cost reduced by 4.9% QoQ.

• Marketing cost lower mainly in Europe QoQ.

• EBITDA grew by 15.2% QoQ and 2x YoY, to INR 177 Mn with the margin of 12.7% during the quarter aided by

• above 2 parameters.

• Operating Profits grew by 19.4% QoQ and 91.8% YoY.

• PAT at INR 120 Mn grew by 54.3% QoQ and almost 2x YoY basis.

• Cash stood at INR 2,736 Mn in Q3FY21 vs INR 2,323 MN at the end of Q2FY21.

• DSO improved to 120 days in Q3FY21 vs 140 days in Q2FY21.

• For 9 months ended period, Revenue remains stable. EBITDA, Operating Profit and PAT grew by 106%, 209% and

• 228% respectively over last year.

15

P&L Q3 FY21

P&L(INR Mn)	Q3 FY21	Q2 FY21 QoQ Gr % Q3 FY20 YoY Gr %
Gross Revenue	1,461	1,462 (0.1)% 1,488 (1.9)%
Less Customer acquisition cost as per the new contract	(63)	(62) 1.3% (57) 10.4%
Net Revenue	1,398	1,400 (0.1)% 1,432 (2.4)%
Content	667	654 1.9% 636 4.9%
Other COGS	19	14 30.8% 15 23.3%
Gross Profit	712	731 (2.6)% 781 (8.7)%
Margin (%) Manpower Cost Severance cost Marketing Cost Other Opex	51.0% 347 8 69 112	52.2% 54.5% 365 (4.9)% 390 (11.1)% 3 124.2% 9 (11.6)% 82 (16.1)% 77 (10.9)% 127 -12.1% 194 (42.3)%
EBITDA	177	154 15.2% 111 60.0%
Margin (%) Depreciation	12.7% 33	11.0% 7.7% 33 (0.1)% 36 (7.4)%
Operating Profit	144	121 19.4% 75 91.8%
Margin (%) Other Income Exchange gain (Loss)	10.3% 15 2	8.6% 5.3% 15 (1.9)% 20 (24.4)% (19) (109)% 3 (47)%
Profit before Tax	161	117 38.1% 98 63.8%
Tax	41	39 5.7% 33 23.8%
Profit After Tax	120	78 54.3% 65 84.1%
Profit / (Losses)from Associates	(7)	(2) 298.0% - 100.0%
Profit attributable to Group	113	76 48.9% 65 73.9%
Margin (%)	8.1%	5.4% 4.6%
Cash Profit	146	16 109 34.1% 101 45.2%

P&L 9M FY21

P&L(INR Mn)	Dec'20 YTD	Dec'19 YTD Change Gr %
Gross Revenue	4,391	4,367 24 0.5%
Less Customer acquisition cost as per the new contract	(185)	(135) (50) 37.0%
Net Revenue	4,206	4,232 (26) (0.6)%
Content	1,981	1,850 131 7.1%
Other COGS	44	49 (5) (10.6)%
Gross Profit	2,181	2,333 (151) (6.5)%
Margin (%) Manpower Cost Severance cost Marketing Cost Other Opex	51.9% 1,044 18 203 388	55.1% 1,210 (166) (13.8)% 44 (26) (59.0)% 231 (29) (12.4)% 590 (202) (34.2)%
EBITDA	529	257 272 105.8%
Margin (%) Depreciation	12.6% 100	6.1% 118 (19) (15.7)%
Operating Profit	429	139 290 209.2%
Margin (%) Other Income Exchange gain (Loss)	10.2% 54 (13)	3.3% 72 (17) (24.0)% (10) (3) 28%
Profit before Tax	470	200 270 135.0%
Tax	152	103 49 47.2%
Profit After Tax	319	97 221 228.2%
Profit / (Losses)from Associates	(8)	- (8) 100.0%
Profit attributable to Group	310	97 213 219.6%
Margin (%)	7.4%	2.3%
Cash Profit	410	215 195 90.4%
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Financial Summary Q3 FY21

Gross Revenue

Gross Profit

EBITDA

INR 1,461 Mn

1.9% YoY Flat QoQ

INR 712 Mn 8.7% YoY 2.6% QoQ Gross Profit Margin 51.0%

INR 177 Mn

60.0% YoY 15.2% QoQ EBITDA Margin 12.7%

Operating Profit

PAT

Net Cash

INR 144 Mn

91.8% YoY 19.4% QoQ Op. Profit Margin 10.3%

INR 120 Mn INR 2,736 Mn 84.1% YoY INR 413 Mn 54.3% QoQ PAT Margin 8.6%

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Revenue by Geography

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Gross Revenue Gross Revenue Gross Revenue
INR 1,461 Mn INR 1,462 Mn INR 1,488 Mn
1.6% 1.7% 2.0%
5.7% 5.8% 5.5%
14.5% 13.7% 16.2% Americas
17.6% 17.6% 15.5% Asia
India
ME&A
60.5% 61.3% 60.9%
Europe
Q3FY21 Q2FY21 Q3FY20
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Note: Americas include – Latin America and North America

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Revenue by Products

Gross Revenue Gross Revenue Gross Revenue INR 1,461 Mn INR 1,462 Mn INR 1,488 Mn

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2.6% 2.7%
4.1%
3.8% 4.1%
4.0%
9.4% 9.5%
10.5%
Infotainment
Contest
37.7% 37.1%
35.7%
Games
Tones
Videos
46.4% 46.6% 45.6%
Q3FY21 Q2FY21 Q3FY20
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20

Cash position

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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|INR Mn|Q4 FY19|Q1 FY20|Q2 FY20|Q3 FY20|Q4 FY20|Q1 FY21|Q2 FY21|Q3 FY21|
|Gross Cash|2,723|2,510|2,344|2,525|2,745|2,659|2,323|2,736|
|-|-|-|-|-|-|-|-|
|Less: Total Debt|
|Net Cash|2,723|2,510|2,344|2,525|2,745|2,659|2,323|2,736|
|Contract|Dividend|payout|Net|Cash|Net|Cash|Collection|
|acquisition|cost|for|FY’19:|INR|decreased|in|decreased|in|efficiency|
|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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21

Ratio Analysis

Ratio Analysis	Q4 FY19	Q1 FY20	Q2 FY20	Q3 FY20	Q4 FY20	Q1 FY21	Q2 FY21	Q3 FY21
Profit and Loss
International revenue / revenue	83%	84%	85%	84%	84%	86%	86%	85%
Grossprofit / revenue	57%	56%	55%	55%	51%	52%	52%	51%
Revenueper Employee(INR'000)	1,796	1,838	2,022	2,120	2,161	2,107	2,076	2,084
EBITDAper Employee (INR'000)	66	51	146	158	171	284	221	253
Aggregate employee costs / revenue	28%	31%	29%	28%	25%	24%	26%	25%
Operating profit / revenue	2%	0%	4%	5%	6%	12%	9%	10%
Profit before tax(PBT)/ revenue*	3%	2%	5%	7%	10%	14%	8%	12%
Effective tax rate - Tax / PBT*	51%	30%	85%	34%	37%	37%	33%	27%
Balance sheet
Current ratio	1.82	1.85	1.84	1.79	2.12	2.14	2.10	2.24
Day’s sales outstanding (Days)	139	143	155	140	144	137	140	120
Liquid assets / total assets(%)	50%	55%	53%	55%	58%	57%	53%	53%
Liquid assets / total sales ratio	3.1	3.5	3.4	3.4	3.5	3.6	3.3	3.3

• PBT considered before Exceptional items

22

Balance Sheet

INR Mn	Dec'20	Mar'20
Shareholders’ Funds	6,163	5,900
Non-Current Liabilities	185	229
Trade Payables	2,004	2,242
Current Liabilities	462	439
Total Liabilities	8,814	8,810
Fixed Assets	463	354
Goodwill	636	534
Right to use Assets	84	136
Investments in Associates	46	-
Financial Assets	54	60
Deferred Tax Assets	609	621
Non-Current Assets	1,398	1,366
Cash and Cash Equivalents	2,736	2,745
Trade Receivables	1,930	2,320
Other Current Assets	857	674
Total Assets	8,814	8,810

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For any queries mail us at investors@onmobile.com

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