Strictly confidential

THE FRENCH DIGITAL

REVOLUTION

Marie EKELAND

JULY 11th, 2011

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DIGITAL ECONOMY, N°1 FRENCH GROWTH SECTOR Highest growth contribution to GDP*

+25% between 2009 and 2010

3.7% contribution to GDP in 2010 (€72bn) ► 5.5% estimate in

2015

E-commerce driving consumption €28.8bn in 2010 (+28% from 2009)

27m online buyers (72% of internet users)

7 to 12% of total consumption depending on category (books vs

techno..)

n°1 French e-commerce website: 10m buyers H2 2010

*Sources: McKinsey(03/2011), ACSEL/PWC(05/2010)

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CONSUMERS CATCHING UP

Strong broadband penetration* 38.2m internet users (60% population)

89.1% broadband penetration rate (tiny cable presence)

Growing social networks with leader premium Facebook*: 22.7m members (36% population), n°8 country,

+35%/year

Twitter*: 2.4m members (4% population), n°17 country,

+110%/year

Smartphones driving internet mobile usage* 15.5m internet mobile users (25% population), +30%/year

59% visits from iPhone, 22% Android (highest growth), 14% iPad*Sources: ComScore (12/2010), SocialBakers (03/2011), Mediamétrie (03/2011)

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BUT ECONOMY STUCK ON OLD SCHEME

Only 3 big R&D companies created since 1980* (vs 82

in the US) No high tech champions

R&D spenders > 40 years old in average

Lack of R&D intensity* 2.0% of GDP spent on R&D

(2.3% for OECD, 2.8% for US)

Decrease since 1998

*Source: Nicolas Von Bulow (06/2011)

Companies with 2009 R&D above 100m€

By seniority (FR-ALL-US)*

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Lack of strategic M&A culture M&A usually to merge with competitor

Key strategic acquisitions performed abroad

Illiquid IPO Market Few tech values

Low risk culture: little appetite for equity investments

Listing of high growth companies on US markets:

CULTURAL LIMITS TO ECONOMIC DYNAMISM

Since 2010, some key accounts move forward

The start-up scene is alive! Entrepreneurs, entrepreneurs & entrepreneurs

Rise of an ecosystem

Funding available at all development stages6

STARTING TO MOVE

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ENTREPRENEURS WELCOME

Here comes the young generation!

Serial entrepreneurs show the way

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AN ACTIVE ECOSYSTEM

Incubators, accelerators, PE boutiques building

presence

Numerous tech events

Specialized medias & blogs

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THE FINANCING CHAIN

New super-angels & entrepreneurs funds, active in

seed funding

Shrinking of French based VCs, except for individual tax

funds

Greater presence of big European Funds

Favorable tax schemes & subsides for start-ups

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TECHNOLOGICAL TRENDS: IT’S THE DATA, STUPID!

Getting valuable data: A key challenge for audience

monetization

Generalist medias & social networks:

Vertical or personalized medias:

Web curation or live-, micro-, blogging platforms:

Mobile applications:

Social gaming:

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TECHNOLOGICAL TRENDS: IT’S THE DATA, STUPID!

Crunching & computing data: taking the best of users

data

Retargeting:

Signal identification:

Personalized recommendations:

Mobile & video ad-serving:

Sites analytics:

B2B data management:

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THE PERSONALIZED RETARGETING MODEL

EACH PERSONALIZED BANNER CREATED ON-THE-FLY TO

MAXIMIZE RELEVANCE

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AN AMAZING EFFECTIVENESS

Full campaign transparency

– True ROI with CPC, no « view

through » pricing

CPC can be automatically

optimized per product

category to meet conversion

and ROAS goals

CTR and conversion rates 6x

greater than RON or static

retargeting

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DRIVING AMAZING GROWTH

> 7 billions impressions per month

6x increase in CTR & conversion rates

300 employees

20 countries

> 1.000 clients in top retailers

Profitable since July 2009

70% of Top20 ComScore publishers inventory access

> 1 billion queries from Google RTB answered within 120ms per day

KEY MILESTONES

KEY NUMBERS

2005 Company founded by Jean-Baptiste Rudelle, serial entrepreneur

2006 Investment of based on a personalized recommandation

engine

2007 Focus on personalized retargeting for advertisers, fundraising with

leading European VC

2008 Commercial launch, first French customers

2009 French hyper-growth, European launch, JB Rudelle leaves for Palo-Alto

2010 International expansion, first US customers & investment of

2011 Worldwide leader, expansion to search

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VOICE BIOMETRICS

IDENTIFYING VOICES REAL-TIME

Cédric GIORGI – Seesmic

Samantha JERUSALMY – Elaia Partners

Hal LEVIN - TTI/Vanguard

Pamela POOLE – Blogger

Nicolas VON BULOW - Clipperton Finance

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SPECIAL THANKS TO

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APPENDIX

ELAIA PARTNERS IN A NUTSHELL

A committed & complementary team brought together by two

passions: Entrepreneurs & Digital Economy

A premier brand in venture capital, thanks to its

- Best of breed performance: Elaia Ventures, sole European VC

fund to figure in first quartile of the 2003 vintage (Preqin)

- Digital expertise, sought by best entrepreneurs,

- Strong involvement on value-adding actions,

- Investment strategy, based on optimized money deployment

& rigourous portfolio management,

- LPs trust, who committed more than €80m since 2002.

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Xavier LazarusPartner

Philippe GirePartner

Marie EkelandPartner

Engineer diploma

A career in consulting in Information Technology

PhD in Mathematics

An e-learning start-up, sold to a publisher

Master in Computer Science & Economics

An IT manager experience in Fixed Income Front Office systems

A joint VC experience since 2001

OPERATIONAL BACKGROUNDS WITH COMPLEMENTARY VISIONS