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Investor presentation August 2019 Cautionary statement This - - PowerPoint PPT Presentation

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Investor presentation August 2019 Cautionary statement This presentation may contain statements that contain forward looking statements including, but without limitation, statements relating to the implementation of strategic initiatives,

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Investor presentation

August 2019

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Proprietary & Confidential

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This presentation may contain statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to OnMobile Global Limited’s (OnMobile Global or the Company) future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. OnMobile Global undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.

Cautionary statement

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Proprietary & Confidential

Agenda

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  • History and milestones
  • Product portfolio
  • Strategy FY20
  • Financials Q1 FY20
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The Global Leader in Mobile Entertainment

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Proprietary & Confidential

Global presence

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74+

COUNTRIES

113+

OPERATORS

1.5 Bn

MARKET REACH

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Proprietary & Confidential

2000

Incorporated as Onscan Technologies India

2006

Rs 1,300 Mn investment by Deutsche Bank AG, Jade Dragon (Mauritius), and Kings Road Investments (Mauritius) Acquisition of IT Finity, India for Rs 419 Mn

2007

Name changed to OnMobile Global Limited Acquisition of Vox Mobili, France Amount: Rs 1,431 Mn 12: 1 Bonus Issue of shares

2008

Public Issue: 10,900,545 shares, Rs 4,796 Mn @ Rs 440 per share Acquisition of Telisma, France Amount: Rs 801 Mn

2017

Promoter takes active role. François-Charles Sirois takes over as CEO

2016

Buyback of 5,600,000 equity shares. Amount Spent: Rs 538 Mn.

  • Avg. Price: Rs

96

2014

Voluntary open offer by Promoter, No of Shares:11,900,000. Amount Spent: Rs 476 Mn, Price: Rs 40/- Buyback of 5,800,000 equity shares, Amount Spent: Rs 442 Mn

  • Avg. Price: Rs 76

2013

Acquisition of Live Wire, USA for Rs 1,007 Mn

2010

Registration under Special Economic Zone, Bangalore Acquisition of assets of Dilithium Technologies, USA for Rs 146 Mn

2009

Purchase of Intellectual Property

  • f Music On, India for

Rs 43 Mn

2011

1:1 Bonus Issue of shares Buyback of 4,000,000 equity shares. Amount Spent: Rs 238 Mn, Avg. Price: Rs 59

History and milestones

2018

Acquisition of Appland AB – a leader in games and kids apps

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Proprietary & Confidential

Investor Highlights

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  • Global Reach
  • Dominating market share in Tones business
  • Investment in growth products
  • Emerging turnaround story
  • Solid cash position
  • Healthy cash flow from operations
  • Debt free
  • High dividend yield
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Product portfolio

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Proprietary & Confidential

Suite of products

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Strategy FY20

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  • Grow Videos
  • Expand Games
  • Leverage Tones
  • Digitize contests
  • Beyond operator wallet
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Proprietary & Confidential

ONMO videos

Entertain yourself

With amazing curated content on your fingertips, your entertainment quotient will be more than now

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Proprietary & Confidential

Grow Videos

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Europe

  • Redefined user interface of Emocion and selected

categories for enriched consumer experience and engagement

  • Launched edutainment proposition for Kids with a

leading

  • perators

in Spain with parental control capabilities Latin America

  • Launched

lifestyle destination with a leading

  • perator

in Mexico for users to consume credit rewards from operator

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Proprietary & Confidential

ONMO games

Challenge yourself

With great games to challenge your cognitive abilities, your zeal will be more than now

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Proprietary & Confidential

Expand Games

14 Europe

  • Awarded POC for Three Games Hub to manage gaming

ecosystem for Three Group. POC is for Austria

Latin America

  • Launched games with leading operators in Brazil and

Mexico

Appland

  • Appland added 5 clubs across the globe i.e, in

Netherlands, Ireland, Iraq, Kenya and India

  • Signed a contract with the largest games studio in the

world to provide inbuilt games in branded tablets

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Proprietary & Confidential

ONMO tones

Express yourself

With our ONMO tones, you will be able to express yourself and build meaningful relationships, more than now

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Proprietary & Confidential

Leverage Tones

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Asia

  • RBT App installs crossed 10 Mn with two major operators in

India

  • Launched DialerTones service with a major Indian operator for

self care app through RBT SDK contributing 20% of service activation revenue

  • Demonstrated network independent Video RBT PoC app

Europe

  • Launched re-branded RBT service Tonos De Espara with new

app with one of the leading operators in Spain

  • Launched a new RBT app version with one of the leading
  • perators in Spain.

MEA

  • Launched RBT service in three new countries in Middle East
  • region. With this launch, we are now present in 5 out 6 GCC

countries

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Proprietary & Confidential

ONMO contests

Reward yourself

With grand prizes to win from our impressive trivia based quizzes, your enthusiasm will be more than now

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Proprietary & Confidential

Digitize Contests

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Asia

  • Launched the digital contest on PWA (Progressive Web

App) for a leading operator in India

  • Launch of event based contest in India
  • Digital contest support for multimedia content
  • Cricket world cup theme based “Predict n Win” contest to

build user engagement

  • Launched UnR contest based on recharge top-ups with a

leading operator in Asia MEA

  • Won a deal for contest in Middle east with product launch

planned for in Q2 FY20

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Financials

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Update on Q1 FY20

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  • Signed / launched new products & services with 16 customers
  • Q1 revenue impacted due to

– INR appreciation versus USD and Euro – impact of 1.3%

  • Games subscription revenue grew by 46% QoQ
  • 3.9% QoQ decline in overall Games revenue due to one time revenue reversal with one

customer.

  • Headcount decreased from 797 in Q4 to 759 in Q1 with savings expected to accrue in

remaining part of the year

  • Increase in depreciation due to application of new accounting standard (IndAS 116) –

reclass of lease rent of INR 11 Mn from Opex to Depreciation

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Proprietary & Confidential

P&L Q1 FY2020

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P&L(INR Mn) Q1 FY20 Q4 FY19 % Growth Net Revenue 1,395 1,433

  • 3%

Content 582 589

  • 1%

Other COGS 69 74

  • 6%

Gross Profit 744 771

  • 3%

Margin (%) 53.3% 53.8% Manpower Cost 413 399 4% Severance cost 22 11 96% Marketing Cost 74 84

  • 12%

Other Opex 164 192

  • 15%

EBITDA 71 84

  • 16%

Margin (%) 5% 6% Depreciation 67 58 17% Operating Profit 4 27

  • 87%

Margin (%) 0% 2% Other Income 30 36

  • 16%

Exchange gain (Loss) (3) (17) nm Profit before Tax 31 45

  • 32%

Tax 9 23

  • 60%

Profit After Tax 21 22

  • 4%

Margin (%) 2% 2%

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Proprietary & Confidential

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Total revenue by geography (Q-o-Q)

Q1 FY 20 Q4 FY 19

Europe 58% ME&A 15% India 19% Asia 4% Europe 59% M5&A 17% India 16% Asia 5%

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Revenue by products (Q-o-Q)

Q1 FY 20 Q4 FY 19

INR Mn

Videos 41% 586 Contest 5% 71 Infotainement 5% 69 Tones 37% 527 Games 13% 179 Videos 41% 572 Contest 4% 57 Infotainement 5% 74 Tones 37% 520 Games 12% 172

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Cash position

24 INR Mn Sept 30, 2017 Dec 31, 2017 Mar 30, 2018 June 30, 2018 Sept 30, 2018 Dec 31, 2018 Mar 31, 2019 Jun 30, 2019 Gross Cash 2,782 2,843 3,052 3,169 3,486 2,723 2,723 2,510 Less: Total Debt

  • Net Cash

2,782 2,843 3,052 3,169 3,486 2,723 2,723 2,510

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Cash flow

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INR Mn Particulars Q4 FY'19 Q1 FY‘20 EBIDTA 84 71

  • Operating non cash items

(6) (2) Operating profit before working capital changes 78 69 Working Capital Changes: (Increase)/ Decrease in Trade Receivables 64 (78) Increase/ ( Decrease) in Trade Payables 135 (207) (Increase)/ Decrease in Other assets (169) (14) Increase/ (Decrease) in Other Liabilities (17) 36 Cash generated from operations 91 (194) Taxes (Paid)/Refund (55) (27) (Purchase)/ Sale of fixed assets (15) (26) Acquisition of Appland

  • Dividend/Interest income/ Capital Appreciation

34 34 Cash generated during the period 55 (213) Other Financing activities

  • Finance cost
  • (4)
  • Dividend Paid
  • Others
  • Fx Impact on Cash balances

(5) 4 Net increase/(decrease) in cash/cash equivalents 50 (213) Opening Cash balance 2,672 2,723 Closing Cash balance 2,723 2,510

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Balance sheet

26 INR Mn As at Jun 30, 2019 As at Mar 31, 2019 Shareholders’ Funds 5,684 5,658 Non-Current Liabilities 38 39 Trade Payables 1,909 2,117 Current Liabilities 1,066 861 Total Liabilities 8,697 8,675 Fixed Assets 396 437 Goodwill 760 763 Right to use Assets 165

  • Financial Assets

65 65 Deferred Tax Assets 537 522 Non-Current Assets 1,270 1,432 Cash and Cash Equivalents 2,510 2,723 Trade Receivables (Billed + Un-billed) 2,296 2,215 Other Current Assets 698 518 Total Liabilities 8,697 8,675

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Dividend & buyback

27 (INR Mn) March 15 March 16 March 17 March 18 March 19 Dividend Payout ( Incl. Tax) 197 195 188 190 191 Dividend % 15% 15% 15% 15% 15% Buyback (shares in Mn) 5.8

  • 5.6
  • Buyback amount utilized

442

  • 538
  • Dividend Policy : 75% Dividend payout or 15% Dividend, whichever is higher
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Equity Snapshot

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Particulars Details

Script code (on NSE) ONMOBILE Share Price (INR)* 32 Shares outstanding (in Mn)** 106 Market Capitalization (INR Mn)** 3,414 Net Debt*** Cash and Cash equivalents (INR Mn)** 2,510 Notes: *Closing share price as on 28th June, 2019 ** Shares outstanding, Market Cap, Cash and cash equivalents as on 30th June, 2019 *** Net Debt as on 30th June, 2019

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