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DateTix Group (ASX:DTX) to Acquire Lovestruck + July 1, 2016 For personal use only

For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

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Page 1: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

DateTix Group (ASX:DTX) to Acquire Lovestruck

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Page 2: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Disclaimer

This presentation has been prepared by Datetix Group Ltd and Lovestruck Limited. Each recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set out below.

None of Datetix Group Ltd, Lovestruck Limited, and/or any of its subsidiaries or their respective directors, officers, employees, advisers or representatives (Beneficiaries) make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information contained in this presentation, including any forecast or prospective information. The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, the Beneficiaries. Actual future events may vary materially from the forward looking statements and the assumptions on which those statements are based. Given these uncertainties, you are cautioned to not place undue reliance on such forward looking statements.

This presentation is a general overview only and does not purport to contain all the information that may be required to evaluate an investment in Datetix Group Ltd. The information in this presentation is provided personally to the recipient as a matter of interest only. It does not amount to an express or implied recommendation with respect to any investment in Datetix Group Ltd. nor does it constitute financial product advice.

The recipient, intending investors and respective advisers, should:• conduct their own independent review, investigations and analysis of Datetix Group Ltd and Lovestruck Limited (as the case may be) and of the information contained or referred to in this presentation; and/or• seek professional advice as to whether an investment in Datetix Group Ltd. is appropriate for them, having regard to their personal objectives, risk profile, financial situation and needs.

Nothing in this presentation is or is to be taken to be an offer, invitation or other proposal to subscribe for shares in Datetix Group Ltd.

Except insofar as liability under any law cannot be excluded, none of the Beneficiaries shall have any responsibility for the information contained in this presentation or in any other way for errors or omissions (including responsibility to any persons by reason of negligence).

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Page 3: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Transaction Overview

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Acquisition consideration

• 2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

• Contingent earn-out consideration of up to A$270,000 payable in two equal instalments upon reaching certain revenue milestones three and six months after settlement

• Cash consideration equivalent to Lovestruck’s existing net cash balance at settlement date

Pro forma capital structure post-acquisition

Pro Forma Market Capitalization A$12M

Share Price as of 29 June 2016 $0.40

Pro Forma Shares on Issue1 31.06M

Performance Shares2 12.00M

Options3 2.00M

Cash Balance as of 31 March 2016 A$2.8M

1Includes 2M shares to be issued to Lovestruck vendors and 12.5M shares escrowed until November 2017

2Issuable in 3 equal tranches on achieving share prices of $0.60,$0.80,$1.00 and specific revenue or download milestones

31.7mm at $0.40 exp. Dec 2020 / 1.2mm at $0.84 exp. Jul 2019 / 0.2mm at $1.00 exp. Oct 2019

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Page 4: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Strategic Rationale

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Combines two highly complementary businesses with substantial geographic overlap to significantly increase DateTix’s overall market share in Hong Kong and Singapore1

Expands DateTix’s product and brand portfolio to capture older user demographic that tend to seek serious long-term relationships2

Significant potential for profitable expansion by localising Lovestruck for China and other high growth markets, and by launching DateTix into Europe via Lovestruck’s United Kingdom footprint3

Revenue synergies from cross-selling to each other’s user base, and increasing number of sales leads to upsell to the offline matchmaking business4

Cost synergies from combining technology platforms and operations, and migrating bulk of Lovestruck’s cost base from the United Kingdom to China5F

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Page 5: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Lovestruck Overview

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A leading premium online dating platform currently operating in Hong Kong, Singapore and UK

A$2.3 million2015 revenues1

35,500+Monthly active users in

May 2016

4,500+Active paying subscribers at

end of May 2016

1 Based on unaudited financial results provided by Lovestruck Limited

Globally Scalable Premium Online Dating Platform

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Page 6: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Highly Scalable Software Platform

Proprietary software platform easily expandable and adaptable globally

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• Device-agnostic: 4 platforms

• iOS app

• Android app

• Website

• Mobile website

• Mobile dating pioneers

• Over 700,000 downloads

• 25%+ of revenues from mobile

• “Mobile First” strategy

World-Class Proprietary Mobile and Web Technology Platform

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Page 7: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Proven Subscription-Based Revenue Model

Recurring subscription-based membership revenues diversified across international markets

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2015 Revenue by Product 2015 Revenue by Geography

96.3%53.6%

2.8% 0.9% 16.0% 0.1%

Membership subscriptions

Events

Advertising

United Kingdom

Hong Kong

Singapore

Other

30.3%

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Page 8: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Impressive International Footprint

Proven revenue and cash flow generating platform across different international markets

1 Based on unaudited financial results provided by Lovestruck Limited

A$0.7 million

8,700+

1,400+

2015 revenues1

Monthly active users in May 2016

Active paying subscribers at end of May 2016

A$0.4 million

6,800+

1,000+

2015 revenues1

Monthly active users in May 2016

Active paying subscribers at end of May 2016

A$1.2 million

19,900+

2,100+

2015 revenues1

Monthly active users in May 2016

Active paying subscribers at end of May 2016

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Hong Kong

Singapore

United Kingdom

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Page 9: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Premium Brand Positioning with High ARPU

Lovestruck is a premium, aspirational brand that commands high subscription price points

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1 As of market close on June 29, 20162 Revenue for Match Group is Total Dating Revenue and excludes non-dating related revenue3 Monthly Active Users for Lovestruck is for May 2016, Match Group is for the quarter ended Sep 30, 2015, Momo is for Mar 2016, MeetMe is for Mar 2016

Revenue per Monthly Active User (A$)

Market cap (A$)1

2015 Revenue (A$)2 $2.3 million $1.2 billion

$4.7 billion

$180 million

$2.4 billion

$64.80

$20.34$14.53

$2.49

Monthly Active Users3 35,500+ 59.0 million 72.3 million

Match Group MeetMe Momo

$77 million

$347 million

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Page 10: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Proven profitability in paying subscriber acquisitions driven by award-winning marketing

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Highly Profitable and Attractive Unit Economics

1 ROI for a city calculated based on revenue per subscriber divided by marketing spend per subscriber for that city

United Kingdom Singapore

Marketing Spend per Subscriber

Revenue per Subscriber

Marketing Spend per Subscriber

Revenue per Subscriber

ROI per Paying Subscriber (A$)1

$325$391

$241$266

1 ROI for a region is estimated using revenue per subscriber divided by marketing spend per subscriber for that city

Ready to Accelerate Paying Subscriber Growth via ROI-Driven Marketing

Hong Kong

Marketing Spend per Subscriber

Revenue per Subscriber

$232

$381

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Page 11: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Attractive User Demographics

Highly educated and affluent user base seeking serious long-term relationships

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Who uses Lovestruck?

Where do they work?

34yoMedian age

45%Over age 35

60%Male

35

A$60k/yrAverage annual

income

73%College or above education level

Banking and financial

IT and e-commerce

Art, design and fashion

Engineering Business administration

Marketing and PR

Public sector

Healthcare

11% 7% 6% 6% 4%4%5% 4%

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Page 12: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Trusted and Highly Reputable Dating Brand

Award-winning and trusted dating brand with a tier-one URL domain name

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Leading reputation in the industry

Winner ‘Online Dating Brand of the Year’ 2015

Highly Commended ‘Safer Dating’ 2015

Highly Commended ‘Events Brand of the Year’ 2015

Highly Commended ‘Best Customer Service’ 2015

Excellent reputation outside of the industry

9th Fastest Growing Tech Company, Deloitte Fast 50 2014

City AM Leap 100 Member 2015

Santander Breakthrough 50 Member 2014

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Page 13: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Strategically Complementary Positioning to DateTix

Expands DateTix Group’s product portfolio to older demographic seeking serious long-term relationships

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Older

Younger

Serious Relationships

Casual Dating

26yo

Median age

34yo

Median age

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Page 14: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Exceptional Founding Team

Experienced management team with deep industry expertise and proven track record of growth

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Managing Director and co-founder

Brett Harding

Laurence Holloway

Technical Director and co-founder

formerly

formerly

• 7 years’ multi-disciplined conceptualising, marketing and managing of Lovestruck to become a pre-eminent, multi award-winning premium online dating brand in UK and Asia

• Previously 12 years account management in some of London’s top digital and creative advertising agencies, delivering a plethora of successful above and below-the-line campaigns for an eclectic range of blue-chip clients

• Diploma (Distinction, including “Student of the Year”) at the Institute of Direct and Digital Marketing and a 2:1 degree in Business Studies

• Web technology and e-commerce specialist with 18 years experience in product development, management, design, deployment and measurement

• Previously a consultant and development team lead delivering blue chip technology and marketing projects for media, retail and banking clients

• 1st Class degree in Computer Science and Linguistics from University of Leeds

• Board member of the Online Dating Association, working to uphold and improve standards in the industry and for the public

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Page 15: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Diverse and scalable revenue model built on top of large & engaged combined user base

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Membership

Subscriptions1 Virtual Items2

E-commerce3 Advertising4

Matchmaking5 Events6

Online Revenues

Offline Revenues

DateTix Group Post-Acquisition

Large & Engaged User Base

Attractive Monetisation Model Supported by Multiple Revenue Streams

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Page 16: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

DateTix Group Post-Acquisition

A scalable dating services platform with broad footprint across China, Asia and the United Kingdom

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Highly Scalable Online Platform with Significant Potential for Expansion

65.1 million population

United Kingdom

Hong Kong7.3 million population

Shenzhen, China10.8 million population

Singapore5.5 million populationF

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Page 17: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

Our Vision and Roadmap

Our Vision: to become the world’s largest online marketplace for dates

20132014

2015

2016

2017

2018

2019

2020

Start Up PhaseVirtual date tickets used to

host dates, send virtual gifts, etc.

R&D

Developed proprietary technology platform and

algorithms

Platform Launch

Launch of DateTix website and apps

User Acceleration

Become dominant market leader in initial target cities

Revenue Acceleration

Revenue growth accelerates from user growth and

monetization

Geographic Expansion

Expand into major cities around the world

EBITDA Acceleration

EBITDA growth accelerates from operating leverage

World’s Largest Online Marketplace

for DatesDominant market leader in

major cities around the world

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Page 18: For personal use only - ASX...2016/07/01  · Transaction Overview 3 Acquisition consideration •2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement

“Join us in building the world’s largestonline marketplace for dates”

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