Affle (India) Limited Corporate Presentation June 2020 Consumer Intelligence Driven Global Technology Company
15 years Track Record High Growth Markets Differentiated Robust Business Model Profitability Global Built to Last Reach & Opportunity Strong Scalable Cashflows Data Platforms Leading In India High Deep Return Ratios Tech Assets Credible Customer Base Positive Accelerated Net Cash Consumer Adoption Committed Leadership Sustainable Growth Strategy
Affle | At a Glance ABOUT GLOBAL REACH BUSINESS SEGMENTS India, South East Asia (SEA), Middle East and 1) Consumer Platform : Delivers acquisitions, Global technology company with a leading o Africa (MEA), North America (NA), Europe, engagements & transactions for leading brands and market position in India and a profitable LATAM, Japan, Korea and Australia (JKA) B2C companies. Also, includes retargeting & push business model notification for e-commerce ( 97.2% FY20 revenue) 1 51.2% 48.8% Existent partnerships with top global 2) Enterprise Platform: Enabling offline businesses to o go online through App development, O2O 2 commerce e-commerce companies, brands & agencies India revenue 1,3 International revenue 1,3 & data analytics ( 2.8% FY20 revenue) 1 12M FY2020 12M FY2020 R&D FOCUS WITH A STRONG PATENT FINANCIAL SUMMARY END TO END MOBILE ADVERTISING PORTFOLIO (12M FY2020 Consolidated) PLATFORM 3 10 1 4 Revenue Rs. 3,338mn In-house data management platform with over o 2.1 Bn 4 connected devices reached, that drives Patents Patents filed in Patent related Patents EBITDA 5 Rs. 888mn our predictive optimization algorithm registered in USA & India for to retargeting filed in US for digital digital ad fraud business filed Singapore Fraud Detection platform to help deliver high o PAT Rs. 655mn advertising detection in US ROI to our customers 1) For the financial year ended March 31, 2020 on a consolidated basis; 2) O2O : Online to Offline; 3) Region-wise contribution and is different from the billing entity-wise segmental break-up 3 disclosed in financial results; 4) For the last twelve months period of April 1, 2019 to March 31, 2020 on a consolidated basis; 5) Adjusted for Rs. 9.37 mn of creditors written back in Q4 & 12M FY2020
Affle | Cost Per Converted User (CPCU) Business 91.4% of Consumer Platform revenue contributed by CPCU model in 12M FY2020 and 8.6% from Non-CPCU (CPC/CPM 1 type advertising) New user conversion Existing user repeat New/existing user (online) conversion (online) conversion (offline) Use Case – Targeted new user Use Case – Target interested user to Use Case – Online bookings to drive acquisition optimized to in-app complete the transaction offline walk-ins (O2O) transaction/registration/event 1) CPC is Cost per Click, CPM is Cost per thousand Impressions 4
End to End Technology Platform Indian Ad Tech ~39% CAGR 2017-22 Smartphone segment India ~27.1% CAGR 2017-21 10 patents filed mDMP Advertisers DIGIXX award 2019 Digital Marketing Shoppers Excellence in >550 3 bn Technology mFaaS Data points processed IAMAI award - Best ROI >2.1 3 bn Big Data Tech Platform Connected devices Consumers reached Human vs non- Con su me r Pla t for m Bu si n ess 72.3 mn human traffic Converted Users Converted FY2020 SG:D Accredited = x CPCU 2 CPCU 1 Revenue Users = x Rs. 2,965 mn Rs. 41.0 2 72.3 mn ~27.6% E-commerce CAGR 2017-22 Market India FY2020 Revenue from Operation of Rs. 3,338 mn (Break-up) Brands / Enterprise Revenue Non-CPCU Revenue CPCU Revenue + + Retail Rs. 92 mn Rs. 280 mn Rs. 2,965 mn 1. Cost per converted user (Pricing model for Affle, which is the cost paid by the advertiser); 2. Average CPCU; 3. For the last twelve months period of April 1, 2019 to March 31, 2020 on a 5 consolidated basis; Source: Industry data basis Frost & Sullivan Report
Affle | Market Consolidation with acquisition of mobile app recommendation platform To initially acquire 66.67% equity ownership in Appnext Singapore, with a clear path to acquire 100% ownership upon attainment of mutually agreed growth targets o Affle acquired full control of Appnext Pte. Ltd., Singapore and 100% IP of Appnext app discovery and recommendation platform (As on June 8, 2020) o In-App Advertisements – Mobile App Recommendations through Strategic OEM Partnerships Inherently a high growth business Enables top mobile OEMs and apps developers to deliver on- Strengthens device personalized app our CPCU model + recommendations to mobile Significantly users globally Over 300 million daily active users and 20+ daily interactions across Widgets, Folders, -1 Screen, OEM store and more 6
Key Investment Highlights 1 End to end mobile advertising platform-based solution 2 Technology and Innovation powered growth 3 Profitable, low-cost business model with an asset light, automated and scalable platform 4 Addressing key industry issues related to consumer privacy and ad fraud 5 Proven international track record with significant growth potential 6 Well defined strategic roadmap for organic and inorganic growth 7 Leading position in India – A high growth market with substantial barriers to entry 7
End to End mobile advertising platform-based solution 1 Affle is uniquely positioned to offer end to end platform-based solutions to deliver higher ROI to its customers o Key Components of Affle’s Consumer Platform Audience Data Quality Experience Publishers integrated over SSP/API* Appographic data Commerce data Intent data Real-time Fraud checks Engaging Rich media, video & Programmatic outreach over to help reduce ad fraud and native ad units to maximize Trading Desk enhance quality ad experience * SSP: Supply Side Platform; API: Application Programming Interface; DMP: Data Management Platform 8
Technology and Innovation powered growth 2 Platform-as-a-Service (PaaS) Model Affle is commercially ready to Identify interested users license the PaaS technology to the Proximity Marketing with customers, which will complement Incrementality measurement of our CPCU business and has a zero- online ads on offline walk-ins cannibalization factor Mediasmart Acquisition Self-serve mobile proximity Acquire new users & platform. Strengthens our Re-engage users & Maximize shoppers transactions across adtech & omnichannel capabilities to enable martech channels marketers in driving incremental online & offline conversions, and to Drive conversation and engagements build greater strategic presence across developed markets PaaS to provide further impetus to bottom line growth 9
Asset light, automated and scalable platform 3 Scalable and proven technology platform has delivered outcomes profitably despite operating in a low CPCU market o Strong Network effects In-house platform leveraging cloud computing infrastructure Flexible and Scalable Enhanced ability to generate actionable outcomes, more More ads delivered Secure and trusted platform to businesses to use Affle’s platforms process and store large scale user data Growth in connected devices profiled over cloud computing infrastructure with servers in India, Singapore & US Self Learning & Predictive algorithm Delivery of more precisely targeted ads Proprietary and real time Research & Development Affle’s prediction and recommendation Artificial Intelligence algorithm operate in real time and at a A result of 14 years of focused R&D, supported by a team of 126 R&D 1 and 62 Machine Learning significant scale, setting them apart from competitors Data Platforms & operations personnel 1 Deep Learning Note: 1. As at March 31, 2020 10
Addressing key industry issues related to privacy and ad 4 fraud Robust IP Portfolio | Real time fraud detection through mFaaS | Platform accredited by SG:D Data Privacy / IP Portfolio Ad Fraud Accreditation 8 Patents in US & Singapore 10 Patents filed in US & India related to digital ad fraud detection 3 Patents registered in US #1 Consumer Acceptable Advertising Affle’s Real time solution for addressing mobile ad #2 Online Search System method & fraud, a major issue in digital advertising Singapore Government Computer Program Organization #3 Extending the use and/or application Accredited based on of messaging systems audits/assessment of security, 1 Patent filed in US reliability, usability and maintainability of the platform DIGIXX Awards 2019 IAMAI India Digital Awards 2017 #4 Partner pixelling for user identification with data servers in Singapore, mFaaS awarded Gold in ‘Digital mFaaS awarded as the industry- wide ‘Best India and USA Marketing Excellence in Technology’ Big Data Technology Platform’ of the Year 4 Patents filed in Singapore 11
Proven international track record with significant growth 5 potential Leveraging big data and machine learning capabilities to drive deeper penetration across emerging markets and deliver higher conversions # Converted users (mn) Average CPCU (Rs.) CPCU Revenue (Rs. mn) FY2020 72.3 41.0 2,965 FY2019 55.0 40.3 2,220 12
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