powering the next generation of digital...

Powering the Next Generation of Digital Advertising

Results Presentation – September 2015

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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


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


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


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


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


$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


$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

Operational Review

Koby Menachemi, CEO

Ran Goldi, VP Mobile

150+Powered Mobile

Ad Networks

Crossrider Key Stats

11

7.5bndaily

AVAILABLE

ad spaces

1.4bndaily

MONETISED

ad spaces

Crossrider Platform


220mMONTHLY UNIQUE

USERS exposed to

Crossrider’s

advertising content

6bn via

Mobile

Execution of Mobile Strategy


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


*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


15

Outlook

Well positioned for M&A

Extended reach + investment in

technology to drive growth and efficiency

Current trading strong, good visibility for H2


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