Fyber N.V. Deutsches Eigenkapitalforum 2018 Ziv Elul, CEO 26 - PowerPoint PPT Presentation

Fyber N.V. Deutsches Eigenkapitalforum 2018 Ziv Elul, CEO 26 November 2018

Agenda 01 02 03 04 Market Fyber at a Growth Financials Update Glance Strategy & & Outlook Perspectives - Page 6 - - Page 3 - - Page 10 - - Page 13 - 2 2

01 Market Update 3

The global app advertising market is expected to grow from $70B in 2016 to >$200B in 2021 Mobile ad spend to surpass TV ad spend in 2018 2021 – Global App Advertising Market Programmatic in-app video is the fastest growing sub- segment of the digital ad market $61bn Addressable Market: 30% US users spend 88% of their time on mobile in apps $141bn Google, Facebook etc.: 70% Leading app categories by time spent are Gaming, Social, Entertainment, Messaging, Productivity & Utilities 4 Source: AppAnnie 2017, eMarketer 2018

This fast growing market faces industry challenges impacting ad tech companies of all sizes: < > Yet, players with distinctive Tripled their value in 2018 1 technology & true data-driven 2 < > value-add report success: < > Acquired by AT&T for $1.6B 3 < > Raised $225M, valuation of $1B 4 2 < > Source: Digital Capital Advisors, Sept 2018; 1: value based on share price Nov ‘18 5 5 vs. Feb ‘18; 2: terms undisclosed 3: TechCrunch Jun 2018, 4: WSJ Jul 2018

02 Fyber at a ss Glance 6

10K+ Apps directly integrated 1.2B Monthly active users Fyber is a publisher powerhouse 180+ catering to all verticals Countries 7

“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 8

” While revenue goals could not be met, Fyber achieved major milestones and recorded an uptick in numbers in October. FairBid was released in September  only started scaling recently Achievements ˃ HOWEVER: it is now scaling quickly – Adoption of new SDK is now almost 22% of all impressions, October gross revenue is up 20% compared to avg. Q3 2018 Integration with Facebook Audience Network started slower than anticipated Highlights of 9M 2018 on the path to long-term, ˃ HOWEVER: we are now working closely with FB to extend sustainable growth the outreach to publishers and advertisers Further wins ˃ Release of Offer Wall Edge – redesign and optimization of one of the core ad formats ˃ Market introduction of new Fyber brand ˃ Continuous implementation of the product roadmap towards unified product ˃ Full organizational integration of former group companies & significant synergies 9

03 Growth Strategy & Perspectives 10

Identified Growth Perspectives Leading through innovation & technology Growth with new publishers: Onboarded > 50 high-profile publishers in 2018, including Atari, Lucky Day, Zoosk, PicsArt, TheChive, Quidd & strong client pipeline for 2019 Growth with existing publishers: Sustainable, loyal client base based on SDK integrations with a consistent retention rate of above 85% Growth with new products: Innovations in areas of fastest market growth including Fyber FairBid, which pushed total gross revenue in October +20% vs. Q3 2018 Growth through existing products: Fyber is one of the market leaders in rewarded video mediation , yet only a small percentage of the massive traffic is monetized today – specific initiative to help raise our share of monetization Securing defensible market position: through proprietary technology which establishes high barriers of entry & a suite of leading ad tech assets, which allows for consistently high net revenue margin, e.g. 36% in Q3 2018 11

The new Fyber’s path to success Become the primary monetization platform for the in-app environment Build foundation for sustainable growth At the expense of short-term revenue growth (e.g. aggregators) Consistent profitability is the main goal Net revenue margin consistently above industry standard Entrepreneurial management approach Maximize efficiency & synergies by unifying all companies under a single management and brand Integrate all existing platforms to maximize yield Focused resources on core strengths (e.g. 90% of revenue in in-app in ’18 vs. 70% in ‘17) Clear vision & roadmap towards a differentiated, leading unified platform R&D is the top area of investment 12

04 Financials & Outlook 13

Key Financials Q3 2018 Uptick in growth in October 2018 Gross revenue in €m 12.5 Millions 12 October Highlight 11.5 11 10.5 10 Jul 18 Aug 18 Sep 18 Oct 18 Key Financials Q3 2018 Recap of the responsible one-off effects Q3 Highlight  Gross revenue of €31m, -46% YoY  ‘Keeping it Clean’-Initiative  Ban of charging screen ads  Net revenue of €11m, -34% YoY  OPEX of €13m, reduced by 20% YoY  Integration of group companies & investment in training  Adj. EBITDA of €-2m Roll-out of new products & ramp-up of new agreements  14

Updated Guidance & Outlook 2019 One-off effects lower revenue base, but core business on stable foundations and returning to growth in 2019E Gross revenue in €m EBITDA* in €m Revenue growth at +52% CAGR ‘13-’17 Estimate Steady adj. EBITDA improvement since ‘15 Estimate Core business 229.8 218.1 +5.0 One-off effects - 0.0 -0.5 -1.2 155.0 0.3 -5.0 - - 129.1 -4.3 130.0 175.0 -7.0 - 135.0 64.0 -12.1 43.3 2013 2014 2015 2016 2017 2018E 2019E 2013 2014 2015 2016 2017 2018E 2019E Stable margins and fixed cost base will Starting from lower revenue base, but core business is forecasted to allow to turn break-even at ~€170 million of gross revenues grow ~20% from ‘18E to ‘19E 15 Note: Pro-forma gross revenue 2013-2016; EBITDA* = Adjusted EBITDA to eliminate one-off impacts such as impairment of goodwill, acquisition related costs and option plans.

Intended Bonds Restructuring Reducing interest burden to support ongoing investment strategy Existing convertible bonds  €150 million principal  3% coupon p.a., payable biannually  Maturity date July 2020  Strike price €3.00 Intended restructuring – Bondholder meeting on 4 December 2018 Defer remaining interest payments until July 2020   All interest accrued shall be paid out in whole at final redemption date together with the repayment of the principal in July 2020  In turn, the interest rate shall be increased from currently 3.0% to then 3.5% p.a. 16

Thank You! 17

Fyber N.V. Contact ir@fyber.com +49 30 609 855 555 Office Address Johannisstraße 20, 10117 Berlin, Germany About Fyber N.V. Fyber is a leading advertising technology company, developing a next generation platform for the programmatic trading of ads, in a data-driven environment. Our mission is to fuel the creation of quality content by empowering digital publishers and app developers to unlock the true value of their advertising properties through advanced technologies, innovative ad formats and data-driven decision-making. Fyber’s technology platform provides an open-access platform for both digital advertisers and publishers with a global reach of more than 1.2 billion unique monthly users. Fyber has offices in Berlin, Tel Aviv, New York, San Francisco, London, Beijing and Seoul. The Company employs more than 300 people globally and is listed on the Prime Standard of Frankfurt Stock Exchange under the symbol ‘FBEN’ and the ISIN NL0012377394. 18 18