Q4 2015 results19 February 2016

2

CXENSE:OSE today

Sector Software-as-a-Service

Customers All companies with online sites and apps

Revenues NOK 200 million annualized – and growing

Recurring software license fees

Gross margin ~85%

Organization 175 employees in Europe, Americas and Asia

3

People want relevant and engaging online experiences

Personalization needed

4

Why personalization?

Improved user experience

More engagement

Higher conversion

Increased revenue

5

Cxense offers the world’s leading personalization software

Real time, actionable data = Higher conversion = Increased revenue

Cxense enables businesses to gather,

analyze and use data…

...to create more personal and engaging

user experiences…

…increasing Cxense’s customer’s digital

revenue

6

>1.4bn devices interacted with Cxense’s technology in Q4

Events = page-views Device = Browser with unique history. A user using Opera, Firefox and

Chrome on one PC equals 3 devices. Mobile, iPad and so on are

devices, as is one PC with several unique logins

# Events interacting with Cxense # Devices interacting with Cxense

0

5

10

15

20

25

30

35

40

45

Billion

0

250

500

750

1000

1250

1500

Million

7

Growing customer base and adoption across verticals

VerticalsTime

Media

Publishers and

Broadcasters

Sports

Consumer brands

Financial services

e-commerce and

classifieds

Cxense customers Q4’15

8

389619

8871 065 1 110

1 5001 708

3 212

4 174 4 115 4 140 4 1523 881

3 540

4 818

6 056

Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15

Group revenue*USD 1 000

Revenue development

*Figures for period Q2’12 to Q1’13 are restated to exclude the discontinued operations of PPN AG

9

Growth strategy: Pursuing value within three areas

• Continue to commercialize the world’s leading personalization offering

• Customer up-lift and add new customers to recurring revenue base

• Minimize churn

• Sharp focus on core, most value-enhancing products for customers

• Cost effectiveness

• Focused R&D investments to maintain and develop uniqueness

• Streamlining a market-oriented organization to enhance sales efficiency

• Financial flexibility

Revenue growth

Profitability

Scalability

10

Financials

11

1.7 1.8

1.9

3.5

0.6

0.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Q4'14 Q4'15

Ad Network

Personalization Suite

Advertising Solutions

6.1

+45%

4.2

• Strong personalization trend drives

Cxense’s growth • Personalization Suite growth of 84%

• Currency adjusted Q4 2015 revenues of

USD 6.5 million • Currency adjusted YoY growth of 55%

PCAN Business Segment

SaaS Business Segment

SaaS Business Segment

Personalization Suite: DMP, analytics, content, video and search productsAdvertising Solutions: Display, CXAD and Maxifier products

USD appreciation vs invoicing currencies

Revenue USD million per quarter

45% YoY revenue growth

12

Record number of new contracts in Q4 2015

New contracts per quarter

11

14

11

7

11

2122

34

31

37

31

41

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15

• 41 new contracts

• >90% Personalization Suite

• 25 on new customers

• 16 up-sell on existing customers

• Average recurring revenue (ARR) of

new contracts closed in the quarter:

USD 1.54 million

13

Decreasing churn over the last quarters

• Churn in H2 2015 back at normal

levels

• H1 2015 churn was higher than normal due to losses on advertising portfolio

• Sales efficiency increasing over time

1,320 1,404

1,476

2,652

1,716 1,536

964 1,100

1,784

1,032

2,441

1,650

(212)(308)

(1,668)

(892)

(520) (489)

(2,000)

(1,500)

(1,000)

(500)

-

500

1,000

1,500

2,000

2,500

3,000

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15

Annualized Recurring Revenue (ARR) on contracts closed in the quarter

New ARR effect in reported figures

Lost ARR (churn)

1 Annualized recurring revenue effect of quarterly performance

14

3.54

4.82

6.06

-3.09

-2.13

-1.41

Q2'15 Q3'15 Q4'15

Revenues

EBITDA

• Strong organic growth in new recurring

software license revenue

• Acquired growth and cost synergy

capture

• Gross profit improvement

• On track for EBITDA break-even

USD million

+0.4m Net new SaaS so far in ‘16

+1.02m organic growth,

i.e. 29% in 2H 2015

+1.50m acquired

Strong growth and EBITDA improvement in H2 2015

15

PCAN

segment

increase

Restructuring

one-off

provision

estimate Q1

2016

Q4 2015

OPEX

adjusted

Q1 2016

net run

rate effect

of ongoing

reduction

OPEX

adjusted

run rate

level

Q2 2016

run rate

effect of

ongoing

reduction

• Q1 2016 OPEX measures

• R&D focused towards Personalization Suite development

• Reducing R&D activity at high-cost locations, increasing at low-cost locations

• Targeted net effect of USD 750

thousand per quarter

• Main impact will be seen in Q2 2016

• One-off restructuring provision of about USD 350 thousand expected in Q1 2016

Quarterly group OPEX – reported vs “run-rate” USD 1 000

6,188

5,538

100 (100)350

(650)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

R&D re-focusing saves USD 750 thousand per quarter

16

Q4 2105 cash flow developmentUSD 1 000

Waterfall cashflow

2,131

(2 192)

10 3965,829

(4,507)

Cash at periodstart

Net cash fromoperations

Net cash usedin investing

activities

Net cash fromfinancingactivities

Cash at periodend

• Cash flow from operations:

• USD – 2.2 million reported

• USD – 1.45 million adjusted for the first Ramp billing run and for R&D refund booked in Q4 but not paid by 31.12.2015

• Cash flow from investing activities

• Ramp acqusition USD 4 million

• Capitalized R&D cost of USD 0.5 million

• Net proceeds from share issues of USD 10.6

million to fund acqusition and growth captial

• Strong outgoing cash position of USD 5.8

million

Cash flow and cash position

17

Operations

18

Creating value with personalization for WSJ

Subscriber conversion with

Cxense technology:

+ 200%

Increase in monthly new

subscribers

19

Turn anonymous visitors into loyal customers

Data is gathered & analyzed

Individual user profiles are created

Users are shown content & ads that

match their interest, intent & context

Users are shown products & services

that they are most likely to buy

Loyalty & advocacy grows

Understand

Engage

Convert

Advocate

“In fact, by 2018, sellers that have fully invested in all types of digital personalization are expected to outperform companies that have not invested in personalization technologies by 30%.“

Gartner, IT Market Clock for Digital Commerce, 2015, August 19, 2015

20

Robust data capture methods across sites

for any and all devicesThe richest user profiles in the market Real-time personalization

Drives conversion

Unique technology drives customer value

21

Continuous focus on scalability to grow Cxense

Sales efficiency Focus on Customer Success

Standardized delivery model A global support center

192252

384

0

200

400

600

2013 2014 2015

Gross new ARR / Sales rep

10.5

7.0

2.9

0.0

5.0

10.0

15.0

2013 2014 2015

Months to recover "Cost of Onboarding"

Churn Q2-Q4 2015

Customer Satisfaction on Support tickets

892

520 489

0

200

400

600

800

1000

Q2 Q3 Q4

96.80% 97.13% 98.77%

0.00%

50.00%

100.00%

Q2 Q3 Q4

Summary and outlook

23

Summary and Outlook

• All-time-high revenues in Q4, +26% sequentially, +45% YoY

• Increase in up-sell towards existing clients, reduced churn, adding new customers

• Continued cost effectiveness efforts; on target for 2016 EBITDA profitability

• Strengthened scalability, R&D and sales capabilities moving into 2016

• Well positioned in a growing digital economy with real-time data management and

personalization offering

24

Appendix

25

Revenue increase and profitability improvement vs last quarter

Growth effects Change

USD 1 000 Q2 2015 Q3 2015 Acquired Organic Q4 2015 q/q

Revenues 3 540 4 818 6 056 26 %

SaaS segment 2 954 4 183 792 316 5 291 26 %

PCAN segment 620 675 130 805 19 %

Inter-segment elimination (34) (39) 0 (39)

Gross profit 2 426 3 646 693 347 4 686 29 %

Gross margin SaaS segment 1 83 % 85 %

Gross margin PCAN segment 0 24 % 22 %

OPEX 5 518 5 779 6 093

Non-IFRS OPEX adjustments (901) (523) 95

OPEX adjusted 4 617 5 256 824 108 6 188 18 %

EBITDA (3 092) (2 134) (1 407) 34%

EBITDA adjusted (2 191) (1 611) (131) 239 (1 502) 7 %

26

Income Statement

USD 1 000 Q4 2015 Q4 2014

Revenues consolidated 6 056 4 151

Cost of goods sold 1 371 980

Employee benefit expense 4 079 4 633

Depreciation & Amortisation expense 720 365

Other operating expense 2 014 2 123

Total operating expense 8 184 8 100

Net operating income/(loss) (2 128) (3 949)

Net financial income/(expense) 156 89

Share of profit from associated companies (690) -

Net income/(loss) before taxes (2 663) (3 861)

Income tax expense 110 264

Net income/(loss) for the period (2 773) (4 125)

27

Consolidated Statement of Financial Position

USD 1 000 As at 31 Dec 2015 As at 31 Dec 2014

Non-current assets

Goodwill 14 365 3 807

Deferred tax asset 36 35

Intangible assets 13 181 4 309

Office machinery, equipment,etc. 419 483

Investments in associated companies 2 548 -

Other financial assets 241 197

Total non-current assets 30 789 8 829

Current assets

Trade receivables 3 537 2 150

Other short-term assets 734 1 827

Cash and cash equivalents 5 829 2 828

Total current assets 10 100 6 805

Total Assets 40 889 15 635

Total Equity 27 106 9 385

Non-current liabilities

Deferred tax liabilities 1 060 480

Other long-term liabilities 2 656 -

Total non-current liabilities 3716 480

Non-current liabilities

Trade payables 1 381 1 454

Current taxes 179 119

Other short-term liabilities 8 508 4 196

Total current liabilities 10 068 5 770

Total equity and liabilities 40 889 15 635

28

Cash Flow Statement

Cash flow statement Q4 2015 Q4 2014

Cash flow from operating activities

Profit/(loss) after income tax (including disposal group) (2 773) (4 125)

Adjustments: - -

Income tax payable (17) (107)

Share-based payments 144 135

Share of profit of investments accounted for using the equity method 691 -

Depreciation and amortization 720 365

Impairment - -

Net interest expense - -

Currency translation effects 129 (293)

Change in trade receivables (825) 566

Change in trade payables (142) 264

Change in other accrual and non-current items (117) 934

Net cash flow from / (used in) op. activities (2 192) (2 261)

Cash flow from investing activities

Investment in furniture, fixtures and office machines 28 (6)

Investment in intangible assets (4 534) -

Investment in associated companies - (12)

Investment in subsidiary - -

Net cash effects from disposal subsidiary - -

Net cash flow from / (used in) investing activities (4 507) (18)

Cash flow from financing activities

Net proceeds from share issues 10 396 (416)

Proceeds from minority interest - -

Net cash flow from / (used in) finaning activities 10 396 (416)

Net inc / (dec) in cash and cash equivalents 3 698 (2 695)

29

Global footprint established to support regional customers

OSLO

LONDON

MADRIDNEW YORK

BUENOS AIRES

TOKYO

SINGAPORE

SAMARABOSTON

30

Important notice

THIS PRESENTATION AND ITS ENCLOSURES AND APPENDICES (HEREINAFTER JOINTLY REFERRED TO AS THE “PRESENTATION”) HAVE BEEN PREPARED BY CXENSE ASA

(THE”COMPANY”) EXCLUSIVELY FOR INFORMATION PURPOSES. THIS PRESENTATION HAS NOT BEEN REVIEWED OR REGISTERED WITH ANY PUBLIC AUTHORITY OR STOCK

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OWN LEGAL, BUSINESS, INVESTMENT AND TAX ADVISER AS TO LEGAL, BUSINESS, INVESTMENT AND TAX ADVICE. THERE MAY HAVE BEEN CHANGES IN MATTERS, WHICH

AFFECT THE COMPANY SUBSEQUENT TO THE DATE OF THIS PRESENTATION. NEITHER THE ISSUE NOR DELIVERY OF THIS PRESENTATION SHALL UNDER ANY

CIRCUMSTANCE CREATE ANY IMPLICATION THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE DATE HEREOF OR THAT THE

AFFAIRS OF THE COMPANY HAVE NOT SINCE CHANGED, AND THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT ANY

INFORMATION INCLUDED IN THIS PRESENTATION.

THIS PRESENTATION INCLUDES AND IS BASED ON, AMONG OTHER THINGS, FORWARD-LOOKING INFORMATION AND STATEMENTS. SUCH FORWARD-LOOKING

INFORMATION AND STATEMENTS ARE BASED ON THE CURRENT EXPECTATIONS, ESTIMATES AND PROJECTIONS OF THE COMPANY OR ASSUMPTIONS BASED ON

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AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS. THE COMPANY CANNOT GIVE ANY ASSURANCE AS TO THE CORRECTNESS OF SUCH INFORMATION AND

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