Affle (India) Limited Investor Presentation February 2020 Consumer Intelligence Driven Global Technology Company
Affle | At a Glance ABOUT GLOBAL REACH BUSINESS SEGMENTS India, South East Asia (SEA), Middle East & 1) Consumer Platform : Delivers acquisitions, Global technology company with a leading o Africa (MEA), LATAM, North America, Europe, engagements & transactions for leading brands and market position in India and a profitable Japan, Korea & Australia (JKA) B2C companies. Also, includes retargeting & push business model notification for e-commerce ( 97.1% 9M FY20 revenue) 1 50.8% 49.2% Existent partnerships with top global 2) Enterprise Platform: Enabling offline businesses to o go online through App development, O2O 2 commerce B2C companies, brands & agencies India revenue 1,3 International revenue 1,3 & data analytics ( 2.9% 9M FY20 revenue) 1 9M FY2020 9M FY2020 R&D FOCUS WITH A STRONG PATENT FINANCIAL SUMMARY END TO END MOBILE ADVERTISING PORTFOLIO (12M FY2019 Consolidated) PLATFORM 3 10 1 4 Revenue Rs. 2,494mn In-house data management platform with over o 2.2 Bn 4 connected devices profiled that drives Patents Patents filed in Patent related Patents EBITDA Rs. 703mn 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. 488mn advertising detection in US ROI to our customers 1. For the nine months ended December 31, 2019 on a consolidated basis; 2. O2O : Online to Offline; 3. Region-wise contribution and is different from the billing entity-wise segmental break-up 2 disclosed in financial results; 4. For the last twelve months period of Jan 1, 2019 to Dec 31, 2019 on a consolidated basis
Affle | Cost Per Converted User (CPCU) Business 93.8% of Consumer Platform revenue contributed by CPCU model in 9M FY2020 and 6.2% from Non-CPCU (CPC/CPM1 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 3
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 >250 bn Technology mFaaS Data points (H1 FY20) IAMAI award - Best ROI >2.1 3 bn Big Data Tech Platform Connected devices Consumers profiled Human vs non- Con su me r Pla t for m Bu si n ess 56.0 mn human traffic Converted Users Converted FY2019 SG:D Accredited = x CPCU 2 CPCU 1 Revenue Users = x Rs. 2,220 mn Rs. 40.3 2 55.0 mn ~27.6% E-commerce CAGR 2017-22 Market India 9M FY2020 CPCU Data Brands / = x Rs. 2,311 mn Rs. 41.2 2 56.0 mn Retail 1. Cost per converted user (Pricing model for Affle, which is the cost paid by the advertiser); 2. Average CPCU; 3. Connected devices profiled for the last twelve months period of Oct 1, 2018 to 4 Sept 30, 2019 on a consolidated basis; Source: Industry data basis Frost & Sullivan Report
Key Investment Highlights 1 End to end mobile advertising platform-based solution 2 Profitable, low-cost business model with an asset light, automated and scalable platform 3 Addressing key industry issues related to consumer privacy and ad fraud 4 Proven international track record with significant growth potential 5 Well defined strategic roadmap for organic and inorganic growth 6 Leading position in India – A high growth market with substantial barriers to entry 5
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 6
Consumer Platform Value Chain 1 Drive walk ins & Identify measure impact interested users Re-engage users Acquire new users & Maximize transactions Build engagement 7
Asset light, automated and scalable platform 2 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 13 years of focused R&D, Machine Learning significant scale, setting them apart supported by a team of 110 R&D and 55 from competitors Data Platforms & operations personnel 1 Deep Learning 8 Note: 1. As at September 30, 2019
Addressing key industry issues related to privacy and 3 ad 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 9
Proven international track record with significant growth 4 potential Leveraging big data and machine learning capabilities to drive deeper penetration in emerging markets and deliver higher conversions # Converted users (mn) Average CPCU (Rs.) Revenue (Rs. mn) 9M FY2020 56.0 41.2 2,311 9M FY2019 41.6 40.4 1,684 10
Well defined strategic roadmap for organic and inorganic 5 growth Enabled by enhancing strengths and leveraging market opportunities in India and International markets Invest in to develop and continuously enhance technological capabilities Drive deeper penetration in emerging Further develop the fraud detection & markets with a key focus on delivering prevention platform and address key more conversions across industry verticals industry challenges Expand the scope of our products from Continue to selectively pursue just mobile to connected devices and acquisitions mapping consumer’s journey as an omnichannel platform Enhance revenue from existing and new Continue to invest in the 4V strategy of Voice, customers and strategically invest in Video, Vernacular and Verticalisation inventory & data cost to reach the next billion shoppers on connected devices 11
Inorganic Growth Plan 5 Pre Deal Assessment: Key Capability Attributes Strategic Focus Knowledge: Complementing Financial teams, tech and data strengthen our strategic focus and enable efficient Platform Sustainability (Data) expansion to other emerging markets M&A Targets must Customers: Complementing Scalability Knowledge Product customer relationship to (Tech) have complementing enhance growth and build People, Products, greater recurrence with Platforms and integrated tech and data Customers that would Growth (Team) result in sustainable People financial growth... Financials: Enhance value for shareholders by enhancing the profitability of the acquired businesses and the PE multiple Relationship Recurrence Retention Customers 12
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