AIL/EP/2019-20/Q2 November 9, 2019 To BSE Limited National Stock - PDF document

AIL/EP/2019-20/Q2 November 9, 2019 To BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C-l, G Dalal Street, Mumbai 400 001 Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051 Scrip Code: 542752 Symbol: AFFLE Re: Earnings Presentation on the Unaudited Consolidated Financial Results of the Company for the quarter and half year ended September 30, 2019 Dear Sir/ Madam, In accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the Earnings Presentation on the Unaudited Consolidated Financial Results of the Company for the quarter and half year ended September 30, 2019. Submitted for your information and records. Thanking you, Yours Faithfully, For Affle (India) Limited Parmita Choudhury Company Secretary & Compliance Officer Affle (India) Limited Regd. Office | 312, B-Wing , Kanakia Wallstreet, Andheri Kurla Road, Andheri East , Mumbai, Maharashtra 400093 Communication Office |P 601-612, 6th floor, Tower C, JMD Megapolis, Sohna Road , Sector – 48, Gurgaon:122018 (P) 0124-4992914 (W) www.affle.com CIN: L65990MH1994PLC080451

Affle (India) Limited Q2 & H1 FY2020 Earnings Presentation For the period ended S eptember 30, 2019 Consumer Intelligence Driven Global Technology Company

Affle | Performance Highlights Revenue Growth EBITDA Growth PAT Growth EBITDA Margin PAT Margin H1 FY2020 Up 2.3% Up 1.4% Up 38.8% Up 47.1% Up 59.7% Y-o-Y Y-o-Y Y-o-Y Y-o-Y Y-o-Y Q2 FY2020 Up 1.2% Up 0.1% Up 40.4% Up 41.1% Up 51.2% Y-o-Y Y-o-Y Y-o-Y Y-o-Y Y-o-Y *Return on Equity (LTM) of 58.6% *Return on Capital Employed (LTM) of 61.7% Operating Cash Flow of Rs. 167 mn in H1 FY2020; significant growth from Rs. 1.2 mn in H1 last year *(Rs. 857.6 mn of Net IPO proceeds + t he FD int erest earned on Net IPO proceeds + Rs. 10.6 mn of IPO Payables under Current Liabilit ies) are adj ust ed in Balance S heet numbers t o calculat e t he ret urn rat ios; **Last Twelve Mont hs (LTM) PAT and EBIT = H1 FY2020 + FY2019 – H1 FY2019 2

Management Perspective Commenting on the results, Anuj Khanna Sohum – Chairman, Managing Director & Chief Executive Officer said: “Affle (India) Limited has continued to build upon the strong growth momentum of the previous years and delivered a stellar performance during the Q2 & H1 FY2020. I am pleased to announce that Affle reported a robust performance for H1 FY2020 with an increase in revenue by 38.8%y-o-y and an increase in EBITDA by 47.1%y-o-y; registering an EBITDA margin expansion of 1.4% . The CPCU business continued on a strong growth momentum delivering a total of 35.1 million converted users (up 39.4%y-o-y, India and International combined) as compared to 25.2 million converted users delivered in the H1 last year. The growth in Affle’s Consumer Platform business is well supported by the overall consumer trends of greater time spent across connected devices, increased adoption of online payments and consistent growth in digital marketing spends across key industry verticals including e- commerce, food, travel, transport, entertainment/ OTT/ gaming, healthcare, BFS I/ fintech, telecom and others. Affle’s growth strategy is anchored in India, our dominant & largest market, and International emerging markets like S EA and MEA where we have strong on ground presence. Our mDMP platform has over 2.1 billion connected devices profiled globally and we will continue to invest in the 4V strategy of Voice, Video, Vernacular and Verticalisation to reach the next billion shoppers on connected devices. We have filed 14 patents recently across j urisdictions and launched a new R&D centre in Bangalore to fortify our competitive advantage in big data, machine learning & advanced deep learning models. Our management team is committed towards operational excellence to drive sustainable growth, cash flows and to invest in attractive inorganic opportunities that shall further enhance value for all our stakeholders. ” 3

Consolidated Performance - Q2 & H1 FY2020 Revenue from Operations (Rs. mn) EBITDA (Rs. mn) & EBITDA Margin (% ) 25.6% 25.7% 24.0% 25.4% 1,593 1,148 404 847 275 604 217 154 Q2 FY2019 Q2 FY2020 H1 FY2019 H1 FY2020 Q2 FY2019 Q2 FY2020 H1 FY2019 H1 FY2020 Performance Discussion (H1 FY2020): ▪ Revenue increased by 38.8% y-o-y, primarily driven by 39.4% growt h in t ot al convert ed users (CPCU Business), coming from bot h exist ing and new cust omers across key indust ry vert icals including e-commerce, food, t ravel, t ransport , ent ert ainment / OTT/ gaming, healt hcare, BFS I/ fint ech and ot hers ▪ S t rat egically invest ed in t he Invent ory & Dat a Cost as a long-t erm st rat egy, t o expand t he reach across connect ed devices and building deeper insight s t owards t he next billion shoppers, leading t o an increase in t he Invent ory & Dat a Cost by 1.4%as a %of revenue ▪ Furt her enhanced t he human resource capabilit ies t o deepen our access t owards emerging market s, leading t o an increase in Employee Expenses by 39.5%y-o-y in line t o our revenue growt h. However, overall EBITDA margin expanded by 1.4%y-o-y on account of decrease in Ot her Expenses by (2.9% ) as a %of revenue 4

Consolidated Performance - Q2 & H1 FY2020 PAT (Rs. mn) & PAT Margin (%) LTM Return Ratios (As of Sept 30, 2019) Balance Sheet Non-adjusted Adjusted for Net *Key Ratios (LTM**) for IPO Proceeds IPO Proceeds 1 18.3% 18.0% 17.1% 15.7% ROE (% ) 58.6% 31.7% (Ret urn on Equit y) 288 ROCE (% ) 61.7% 35.8% (Ret urn on Capit al Employed) 180 156 ROA (% ) 24.4% 18.0% (Ret urn on Asset s) 103 Gross Debt/Equity (x) 0.33x 0.18x Q2 FY2019 Q2 FY2020 H1 FY2019 H1 FY2020 1. (Rs. 857.6 mn of Net IPO proceeds + t he FD int erest earned on Net IPO proceeds + Rs. 10.6 mn of IPO Payables under Current Liabilit ies) are adj ust ed in Balance S heet numbers t o calculat e t he ret urn rat ios; *Key Ratios: Return on Equity = (PAT / Total Shareholder’s Equity); Return on Capital Employed = [EBIT /(Total Assets – Current Liabilit ies)] and Ret urn on Asset s = (PAT / Tot al Asset s); **Last Twelve Mont hs (LTM) PAT and EBIT = H1 FY2020 + FY2019 – H1 FY2019 5

CPCU Business | H1 FY2020 Performance Leveraging big data and machine learning capabilities to drive deeper penetration in emerging markets and deliver higher conversions # Converted users (mn) Average CPCU (Rs.) Revenue (Rs. mn) H1 FY2020 35.1 41.3 1,450 H1 FY2019 25.2 40.1 1,010 6

Affle | Consumer Intent & Behavior Over 2.1 billion connected devices profiled across India and International markets For t he 6 mont hs period (April 1, 2019 t o S ept 30, 2019) 285mn 410mn Over Europe 121mn North America 275 bn Japan, Korea 598mn & Australia India 182mn Middle East & Africa 370mn #Data points 183mn South East Asia accumulat ed in H1 FY2020 LATAM & Others # Connected devices profiled 1. Connect ed devices profiles accumulat ed and refreshed for t he last t welve mont hs period of Oct 1, 2018 t o S ept 30, 2019 on a consolidat ed basis, basis part ial ingest ion of RevX Plat form dat a 7

Affle | Top 10 Customers Profile ▪ Natural shift in the select industry verticals where more advertisers are engaging directly than through their advertising agencies ▪ Top 10 customers concentration reduced in H1 FY2020 H1 FY2019 Customer Contribution H1 FY2020 Customer Contribution As a % of Consolidated Revenue As a % of Consolidated Revenue Top 10 Top 10 Customers Customers 68.8% 49.7% Others 50.3% Others 31.2% 8

Recent Developments Filed 14 pat ent s in S ingapore and t he US A t o fort ify AI-driven intelligence & automation for conversion - driven market ing wit h a key focus on conversat ional, vernacular and voice-based intelligence Launched new Research & Development Centre in Bangalore to st rengt hen the focus on new technology innovations using AI & machine learning technologies Recognised as t he ‘Technology Company of the Year’ & ‘Best in Show’ at MMA (Mobile Marketing Association) S mart ies Awards 2019, Mumbai Won Gold for innovate mobile advert ising for Meesho at MMA S mart ies Global Awards. 6 more awards for top brands - Meesho, Bobbi Brown and S prit e in diverse categories, at MMA S mart ies Awards, Mumbai Awarded 4 awards for mobile advert ising campaigns for top brands including Meesho, Dunzo, Bobbi Brown and Isobar from exchange4media at the Maddies Awards 2019 9