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Powering the Next Generation of Digital Advertising
Results Presentation – September 2015
CONFIDENTIAL
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the Presentation, they should seek independent advice from a person who is authorized for the purposes of the Financial Services and Markets Act 2000 (“FSMA") and who specializes in advising on investments of this kind.
The Presentation is being supplied to you solely for your information. ThePresentation has been prepared by, and is the sole responsibility ofCrossrider plc. (the "Company"). The directors of the Company have takenall reasonable care to ensure that the facts stated herein are true to the bestof their knowledge, information and belief. No undertaking, representation,warranty or other assurance, expressed or implied, is made or given by or onbehalf of the Company or any of its respective directors, officers, partners,employees or advisers or any other person as to the fairness, accuracy or thecompleteness of the information or opinions contained herein and to theextent permitted by law no responsibility or liability is accepted by any ofthem for any such information or opinions. Notwithstanding the aforesaid,nothing in this paragraph shall limit or exclude liability for anyrepresentation or warranty made fraudulently.
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3
Positioned across the value chain
Building technology
Diversified business models
Unique monthly users up 70m since IPO to 220m
Video
Programmatic RTB for Mobile
Introduction
Revenue growth of $14m to $41m
Big Data Analytics
INVESTING IN MOBILE: PROGRESS AND STRATEGY
ADTECH PLATFORMS
EXTENDED REACH
Results Presentation – September 2015
Financial Highlights
4
Strong financial discipline
Adjusted EBITDA $5.5m (H1/14: $7.6m)
Organic revenue growth
Revenue up by $14.2m to $40.8m
Organic revenue growth of $11.4m
Cash generative
Cash flow from operations $4.1m (H1/14: $4.8m)
Strong balance
sheet
$78m of cash
balances at the
period end
No debt
Results Presentation – September 2015
Interim Revenue Analysis
5Results Presentation – September 2015
4.26.8
25.1
34.0
H1/14 H1/15
Pro-forma Revenue(1) by Channel $million
Mobile Web
Statutory$million
2015H1
2014H1
% Change
Mobile 6.8 1.5 333%
Web 34.0 25.1 35%
Total revenue 40.8 26.6 53%
Pro-forma(1)
$million2015
H12014
H1% Change
Mobile 6.8 4.2 62%
Web 34.0 25.1 35%
Total revenue 40.8 29.3 39%
(1) *The H1 /14 revenue presented above includes the results of Ajillion and DefinitiMedia, acquired in May 2014, as if the companies had been part of the group for H1/14 as a whole.
Web83%
Mobile17%
Revenue by Channel
Revenue Analysis
6Results Presentation – September 2015
37%
26%
9%
7%
6%
5%
4%3% 3%
Revenue by Geography
Rest of the world
United States
Germany
France
United Kingdom
Australia
Italy
Brazil
Spain
Interim Margin Analysis
7Results Presentation – September 2015
Web$million
2015H1
2014H1
% Change
Revenue 34.0 25.1 35%
Direct costs (1) (22.5) (13.5) 67%
Segment margin 11.5 11.6 (1)%
Margin % 34% 46% (12)%
Mobile (1)
$million2015H1
2014H1
% Change
Revenue 6.8 1.5 353%
Direct costs (1) (5.4) (1.3) 315%
Segment margin 1.4 0.2 600%
Margin % 22% 16% +6%
(1) Direct costs comprise cost of sales plus traffic acquisition costs included within sales and marketing
0.2
1.4
11.6 11.5
H1/14 H1/15
Margin by Channel $millionMobile Web
Interim Income Statement
8Results Presentation – September 2015
$million2015
H12014
H1 Change
Mobile 6.8 1.5 353%
Web 34.0 25.1 35%
Revenue 40.8 26.6 53%
Direct costs (27.9) (14.7) 90%
Segment margin 12.9 11.9 8%
Segment margin % 32% 45% (13%)
Opex (7.4) (4.3) 72%
Adjusted EBITDA 5.5 7.6 (28)%
EBITDA % 4% 29% (25)%
Interim Cash Flow Summary
9Results Presentation – September 2015
$million2015
H12014
H1 Change
Cash generated from operations 4.1 4.7 (0.6)
Purchase of fixed assets (0.2) (0.2) -
Capitalised development costs (1.0) (0.3) (0.7)
Net cash paid for acquisitions (0.6) (8.9) 8.3
Other - 0.1 (0.1)
Net cash used investing activities (1.8) (9.3) 7.5
Proceeds from borrowings - 6.6 (6.6)
Net cash generated from financing activities - 6.6 (6.6)
Net cash inflow for the period 2.3 2.0 0.3
Closing Cash 78.3 4.1 74.2
150+Powered Mobile
Ad Networks
Crossrider Key Stats
11
7.5bndaily
AVAILABLE
ad spaces
1.4bndaily
MONETISED
ad spaces
Crossrider Platform
Results Presentation – September 2015
220mMONTHLY UNIQUE
USERS exposed to
Crossrider’s
advertising content
6bn via
Mobile
Execution of Mobile Strategy
12Results Presentation – September 2015
Merged Data
Q2 2014 Q3 2014 Q4 2014
Acquired Ajillion & DefinitiMedia Launched Ajillion‘s RTB Bidder
Q2 2015Q1 2015
DefinitiMedia Focusing on margins
Extending reach - Connecting to Google & Twitter
• Extended reach - increased the number of customers and available
ad spaces
• Organic revenue growth of 62% in H1 2015
• DefinitiMedia - driving efficiencies and margins through the use of
technology (Ajillion)
Progress
• Investment in additional Programmatic
Buying capabilities
• Doubled the size of the mobile
development team
Investing for the future
8.817.8
32.7
49.7
69.1
88.6
108.9104.6120.1
140.2
160.2
178.5
196.1
213.9
2012A 2013A 2014E 2015E 2016E 2017E 2018E
Digital Video Advertising Value
Mobile
Focusing on Video
13Results Presentation – September 2015
*Source: Google's Rich Media Gallery, February 2015
• Video is growing in Mobile as a format
• Video ads perform x18 than standard display ad
units*
• Crossrider’s focus:
- Business: helping brands achieve performance
using existing capabilities (Ajillion Platform)
- Technology: developing our additional solutions
via Investment in Clearvelvet Trading Ltd
*Source: eMarketer 2014
M&A Strategy
14
Criteria
• Relevant and unique or disruptive technologies;
• Demonstrable track record of sustainable growth and
profitability; and
• High quality teams
Business
• Focus on mobile
• Acquire specialised ad networks
• Acquire tech-media aggregators (SSPs/DSPs)
Technology
• Acquire tech platform providers e.g. Video/RTB/Data
Results Presentation – September 2015
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