Fyber N.V. H1 2018 Results Presentation 29 August 2018 1 1 - PowerPoint PPT Presentation

Fyber N.V. H1 2018 Results Presentation 29 August 2018 1 1

“These materials may contain forward-looking statements based on current assumptions and forecasts made by Fyber N.V.’s management and other information currently available to Fyber N.V. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results, performance or events to differ materially from those expressed or implied by the forward-looking statements. Statements contained in these materials regarding past trends or events should not be taken as a representation that such trends or events will continue in the future. Neither Fyber N.V. nor any other party is under any duty to update or inform you of any changes, whether as a result of new information, future events or otherwise, to the information in these materials. Disclaimer Certain market data and financial and other figures (including percentages) in these materials were rounded in accordance with commercial principles. Figures rounded may not in all cases add up to the stated totals or the statements made in the underlying sources. For the calculation of percentages used in the text, the actual figures, rather than the commercially rounded figures, were used. Accordingly, in some cases, the percentages provided in the text may deviate from percentages based on rounded figures. The financial information relating to the Group contained in this document has not been audited or reviewed. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, expressed or implied, is given by or on behalf of Fyber N.V. or any of its affiliates, directors, officers or employees, advisors or any other person as to the accuracy or completeness of the information or opinions contained in this document, and no liability whatsoever is accepted for any such information or opinions or any use which may be made of them. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities.” 2

01 Intro & News ss Ziv Elul , CEO

Fyber develops a next generation mobile-first programmatic monetization platform for publishers 4

„Old ad tech” “New ad tech” vs. Strategy &  Ad networks leading with monetization  Lead with technology business  Short-term, opportunistic  Create sustainable value for clients  Hidden fees and mark-ups  Address fundamental industry issues approach  Open-source / transparent solutions Black-box solutions, often biased Primary area of investment   Technology  Underinvestment in proprietary tech  Drives diversification of revenue streams  Thought leader, influencing industry  Web players moving into in-app Industry trends  Limited industry relationships (with positioning  Attractive partner for other industry agencies, brands, top tech vendors) leading companies 5

The Fyber Flywheel Differentiation through technology Primary publisher platform that brings together: Optimal monetization through ■ ‘Fyber FairBid’ – all demand partners compete in real time for every impression State-of-the-art data tools to ■ provide actionable audience insights Proprietary video technology ■ across ad formats Market leading expertise in ■ programmatic and direct advertising 6 6

H1 2018 – Introducing ‘The New Fyber’ Current trading and market feedback indicate strong mid-term outlook Operational Highlights Key Metrics Significant progress in product development and strong  Monthly unique users 1.2bn market feedback on product releases & strategic direction on the way to a single, unified platform Gross revenue H1 2018 €59m  Partnership agreement signed with Facebook Audience Adj. EBITDA H1 2018 €-6m Network to join ‘Fyber FairBid’  ‘Offer Wall Edge’ product launch Short-term guidance  H1 results burdened by one-off effects and strategic Gross revenue FY2018E €150 - €180m decisions to set Fyber up for future growth Adj. EBITDA FY2018E ~ Break-even  Increased net revenue margin Mid-term guidance  Core business = ‘The New Fyber’ on solid foundations and expected to remain stable YoY in 2018 Gross revenue FY2021E €400 - €450m  Revision of guidance for full year 2018 Confirmation of mid-term outlook 2021 EBITDA FY2021E €40m 7

The interim effects of integrating 4 platforms Necessary investments into upcoming unified product RTB  Continues to serve Tech assets Revenue declined Affected by removal of    as mediation leveraged for significantly due to aggregators and platform for majority upcoming flagship ‘Keeping it Clean’ charging screen ads of our large platform initiative (original publishers business relied on Revenue continues to  Integrated with aggregators) grow as market  Inneractive exchange adoption increases  Offer Wall as main revenue driver to strengthen current Integrated with Fyber  monetization mediation platform to Tech assets leveraged  monetize our as foundation of rewarded video upcoming flagship inventory platform 8

 Created internal integrations between all existing products  Combined key technology assets to create ‘Fyber FairBid’ - Technology our new flagship product Investments  Upgraded infrastructure to reduce operational cost and improve product stability to set Fyber up for future  Shifted focus towards profitability and net revenue growth  Improved net revenue margin from 29% to 36% Business Performance  Short-term negative impact of market cleanup and business restructuring exceeded our expectations  Accelerate roll-out of our integrated publisher platform  Further investments in improving monetization capabilities Future across main assets (e.g. Rewarded Video and Offer Wall) Growth  Striking partnerships with industry leaders, such as Facebook 9

02 Financials & Outlook Yaron Zaltsman , CFO

Key Financials H1 2018  Revenue development influenced by Six months ended Three months ended 30 June 30 June  ‘Keeping it Clean’ initiative  Ban of charging screen ads 2018 2017 YoY change 2018 2017 In € million  Sales team reorganization 58.8 119.7 29.5 69.9 Gross revenue -51% H1 2018 H1 2017 In € million Revenue share Aggregators 3 37 (37.6) (84.7) (18.5) (49.6) -56% to 3 rd parties Charging screen ads 1 9 21.2 35.0 11.0 20.3 Net revenue -39% Core business 55 74 (= residual revenue) Net revenue 36.1% 29.2% 6.9pp 37.4% 29.1% Reported revenue 59 120 margin IT cost* (5.6) (8.0) 30% (2.6) (4.3)  Slower decline in net revenue based on (6.3) (10.9) (3.0) (5.3) R&D cost* 42% initiatives to increase net revenue margin  Margin above 37% in Q2 2018 (10.5) (12.6) (4.8) (6.1) S&M cost* 17%  Integration synergies had positive effect G&A cost* (4.8) (7.2) 33% (2.6) (3.3) on operating expenses  Total adj. OPEX reduced by 29% EBITDA* (6.0) (3.7) -62% (2.0) 1.3  Lower EBITDA despite improved cost EBITDA structure due to lower top line -10% -3% -7pp -6% 2% margin* *Adjusted to eliminate one-off impacts such as impairment of goodwill, acquisition related costs and option plans. 11 Unaudited figures

Updated gross revenue guidance 2018 Core business to remain stable and expected to grow in the second half of the year Full year 2018 FY 2018 updated Change FY 2018 initial FY 2017 Gross revenue in € million, rounded forecast YoY forecast Aggregators; ‘Keeping it Clean’ initiative 7 56 -88% 25 Charging screen ads 2 29 -93% 7 -3% Core business (= residual gross revenue) 141-171 145 188-208 Reported/forecasted gross revenue 150-180 230 -35% 220-240 Core business expected to remain stable in 2018 despite one-off effects 12 Note: Change YoY calculated as ‘FY 2018 updated forecast’ vs. ‘FY 2017’

Updated gross revenue guidance 2018 Core business to remain stable and expected to grow in the second half of the year Full year 2018 FY 2018 updated Change FY 2018 initial FY 2017 Gross revenue in € million, rounded forecast YoY forecast Aggregators; ‘Keeping it Clean’ initiative 7 56 -88% 25 Charging screen ads 2 29 -93% 7 -3% Core business (= residual gross revenue) 141-171 145 188-208 Reported/forecasted gross revenue 150-180 230 -35% 220-240 Core business expected to remain stable in 2018 despite one-off effects Detail: Second half of 2018 (lower range of stated guidance) H2 2018 updated Change H2 2017 Gross revenue in € million, rounded forecast YoY Aggregators; ‘Keeping it Clean’ initiative 4 19 -79% Charging screen ads 1 20 -95% +21% Core business (= residual gross revenue) 86 71 Reported/forecasted gross revenue 91 110 -17% Expected growth in the core business in H2 2018 13

Updated net revenue guidance 2018 Increased margin leads to stable net revenue in the core business despite lower top line Full year 2018 FY 2018 updated Change FY 2018 initial FY 2017 Net revenue in € million, rounded forecast YoY forecast Aggregators; ‘Keeping it Clean’ initiative 2 14 -86% 6 Charging screen ads 1 9 -93% 2 +2% Core business (= residual net revenue) 48-58 60-66 47 Reported/forecasted net revenue 51-61 70 -27% 68-74 Positive effect on net revenue 14 Note: Change YoY calculated as ‘FY 2018 updated forecast’ vs. ‘FY 2017’