Minds + + Mac achin ines G Group L Limited Financial Results FY2019 Presentation – 24 March 2020 http://mmx.co
Disclaimer The following is a presentation (the “Presentation”) relating to Minds + Machines Limited (“MMX”). The Presentation is being communicated by MMX. It is confidential. Recipients may not provide, or otherwise make available, this Presentation to any person whatsoever and no part of it may be reproduced in any manner without the written permission of MMX. The information in the Presentation is subject to updating, revision and amendment. The Presentation does not constitute or form part of any offer or invitation to sell or any solicitation of any offer to purchase or subscribe for any shares in MMX. No reliance may be placed for any purpose whatsoever on the information contained in the Presentation or any assumptions made as to its completeness. No representation or warranty expressed or implied is given by MMX or any of their officers, employees or agents as to the accuracy of the information or opinions contained in the Presentation and no liability is accepted for any such information or opinions (which should not be relied upon) or for any loss howsoever arising directly or indirectly from any use of the Presentation or its contents. The actual results, performance or achievements of MMX may be materially different from the future results, performance or achievements expressed or implied by any opinions, estimates and projections included in the Presentation. This Presentation is exempt from the general restriction on communications contained in section 21 of the Financial Services and Markets Act 2000 (“FSMA”) on the grounds that it is being provided only to persons of a kind described in Regulation 19 (being persons with professional experience in matters relating to investments), Regulation 48 (being a certified high net worth individual), Regulation 49 (being high net worth companies, trustees of high net worth trusts or unincorporated associations), Regulation 50 (being a sophisticated investor) or Regulation 50A (being a self-certified sophisticated investor) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Financial Promotion Order”) or to persons who are otherwise permitted by law to receive it. Any recipient of this Presentation who does not fall within Regulations 19, 48, 49, 50 or 50A of the Financial Promotion Order or as described above; or to whom distribution is otherwise not lawful may not rely on it and should return the Presentation to MMX immediately. Neither any company nor any person involved in the preparation of the Presentation owes a duty of care to any person or any recipient. Each person or company must undertake such investigations as they see fit before entering into any contract of any kind. If you are in any doubt as to what action to take, you are recommended to seek your own financial advice from your stockbroker, bank manager, solicitor, accountant or other independent financial adviser authorized under the FSMA immediately. Presentation to MMX immediately. Neither any company nor any person involved in the preparation of the Presentation owes a duty of care to any person or any recipient. Each person or company must undertake such investigations as they see fit before entering into any contract of any kind. If you are in any doubt as to what action to take, you are recommended to seek your own financial advice from your stockbroker, bank manager, solicitor, accountant or other independent financial adviser authorized under the FSMA immediately. ------------------------------~mmx Slide 2 Minds + Machines Group Limited | Financial Results YE 2019
Achieving our goal A leading pure-play registry of new generic Top-Level Domains (“new gTLDs”) now delivering a predictable annuity stream off a SaaS type revenue model .fit .work .cooking .vip .law . fashion .beer .casa . yoga
At a glance Market Cap: GBP47.8m/USD54.9m | Ticker Symbol: LSE: MMX YE 19 renewal revenue YE 19 revenues* YoY registrations 25% 25% 36% $18.9m $11.7m 2.46m (YE 18: $15.1m) (now represents 62% of total revenue) (31.12.18: 1.81m) Cash generation** YE 19 profit after tax YE 19 op EBITDA* 170% $4.8m 79% $6.2m (YE 18: $12.6M loss) $6.4m (YE 18: $2.3m) (YE 18: $3.6m) * From normal operations, net of auction revenues ** Net of onerous contract settlement, inclusive of auction proceeds Slide 4 Minds + Machines Group Limited | Financial Results YE 2019
Business model MMX Infrastructure assets: 32 top-level domains Revenue model: SaaS type annual recurring fee for end-users TECHNICAL BACK-END OUTSOURCED Sales channel: independent third-party sales channel (registrars) Technical platform: highly scalable, low-cost: EXTERNAL all technical infrastructure outsourced SALES CHANNEL • (registrars) Typical usage Email • Websites • Marketing • Investment • END USERS Minds + Machines Group Limited | Financial Results YE 2019 Slide 5
Infrastructure assets Wholly owned top-level domains .abogado .bayern .vip .boston .budapest Generic and vertical • .casa .dds .fashion .fishing .fit interests .cooking .garden .horse .law .luxe Geographic • .miami .nrw .rodeo .surf .beer - Largest portfolio - 6 in Europe & US .wedding icm .vodka .work .yoga China licensed • . 购 物 icm icm icm In partnership In negotiation .country .london .review On behalf of clients .hotel .bradesco .gop Slide 6 Minds + Machines Group Limited | Financial Results YE 2019
Global sales reach Continental Europe (+1) 58 UK (+1) 11 North America (+3) 61 China (+4) 63 Japan (+1) 7 Key India/South East Asia (-1) 11 Registrar partners per region South America 3 Internal headcount Rest of the world (+1) 16 (Excluding Board) 21 * Numbers include Registrar and Corporate consolidations Slide 7 Minds + Machines Group Limited | Financial Results YE 2019
Stated grow th strategy ORGANIC GROWTH INNOVATION SELECTIVE ACQUISITION To deliver top-line revenue To create relevant value-added To leverage operational gearing in growth based on automated services for end-users to platform recurring revenue through the enhance value of product channel Slide 8 Minds + Machines Group Limited | Financial Results YE 2019
Organic: registration & revenue grow th Revenue & renewals Registrations cdd Slide 9 Minds + Machines Group Limited | Financial Results YE 2019
Organic: improved revenue mix C] 2016 Guidance 2019 Update Brokered & premium Channel - Premium name billings Standard names Channel - Standard and renewals 1st Year 2nd Year 3rd Year 4th Year 5th Year Channel - Renewals 91% of revenues now automated through the channel Slide 10 Minds + Machines Group Limited | Financial Results YE 2019
Organic: improved regional mix Channel - premium Channel - standards Channel - Renewals US revenues doubled in percentage terms to 62% since 2017 Asia reliance has more than halved in percentage terms to 21% over 2yr period Slide 11 Minds + Machines Group Limited | Financial Results YE 2019
12 Innovation: strategy overview To create relevant value-added services for end-users that enhance value of our assets Services focused around addressing the disconnect between the DNS/WWW promise and current realities User Identity Ease of Use Blockchain association service - .luxe R&D initiative Brand protection IP Protection Secure Network Slide 12 Minds + Machines Group Limited | Financial Results YE 2019
Innovation: progress Blockchain – end-to-end security Brand Protection > 90m addresses on Ethereum, 40+ bitcoin wallets Over last decade ICANN has authorised multiple new scripts resulting in look-alike homoglyphs being created Most use hexadecimal addresses by bad actors No interoperability between chains AdultBlock+ launched Q4 ’19 to provide protection .luxe developed to allow a single human-readable address to against this potential abuse be used across the WWW and blockchain Over 5m addresses now blocked for brands across ICM portfolio Launched Q4 ’18 with WWW and Ethereum interoperability $1.1m of revenue generated in Nov and Dec ‘19 H1 ‘19 – multi-chain association engine developed; now integrating into recently launched Ethereum multi-chain MMX now deepening sales into existing market whilst solution looking to widen addressable market Currently marketed as a premium product - 15k registrations to date domain.luxe Slide 13 Minds + Machines Group Limited | Financial Results YE 2019
Operations: OPEX & COGs management MMX Cost of Sales MMX OPEX In 2016, management set as its target OPEX to be capped In 2016, management set as its target Cost of Sales to be at $6.0m 20% of revenue in stable state (gross billings) Slide 14 Minds + Machines Group Limited | Financial Results YE 2019
Performance: adjusted op EBITDA & profit/(loss) Profit/(loss) Operating EBITDA – net of auction rev Slide 15 Minds + Machines Group Limited | Financial Results YE 2019
Cash generation Cash generation Inclusive of auction proceeds but net of 2019 onerous contract settlement Slide 16 Minds + Machines Group Limited | Financial Results YE 2019
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