Taboola.com Ltd. · NASDAQ:TBLA
Taboola.com — Merger or Acquisition (July 2021)
30 slides from Taboola.com's merger presentation, Jul 23, 2021
Slide 1: Taboola To Acquire Connexity
Slide 2: Disclaimer
Disclaimer Peer ict “Stipe terete mn iS“ deo” ere a mt ty ae ee te ‘es ay ae pan
Slide 3: Today's Presenters
Today’s Presenters Adam Singolda Founder & CEO + Founded Taboola over 13 years ago, and has ed the company as ts CEO ever since Stephen Walker CFO + 6+ years at Taboola + Previously hel postions in deals New Ventures ep and alae several of aa’ porto. companies, including Perfect + Prior experience a
Slide 4: Agenda
Agenda Transaction Details About Taboola, About Connexity Strategic Rationale
Slide 5: Today, we have exciting news!
Today, we have EXCITING NEWS!
Slide 6: One of the largest e-commerce media platforms in the web
One of the largest n media platforms in the word (1) ‘Subject eguatory approval and customary joing condtons $800 million Total Consideration Including purchase price and retention incentives Expected To Close During Q3-211 Primarily a cash transaction Approximately: $240M cash from balance sheet $3
Slide 7: Huge Scale, Even Faster Growth
Huge Scale Even Faster Together, 12 months ended March 31, 2021:1 $500M+ ex-TAC Gross profit? ~$185M Adjusted EBITDA? In 2021, Taboola expects to grow ex-TAC gross profit 20%+. Growth On a pro forma basis with Connexity, ex-TAC Gross profit growth is also expected to 20%+ in 2021 on a bigger base.'
Slide 8: Agenda
Agenda Transaction Details About Taboola, About Connexity Strategic Rationale
Slide 9: We Power Recommendations for The Open Web
Slide 10: Taboola = Search "In Reverse"
Taboola = Search “In Reverse” From people looking for information to information looking for people slepcoD © \etou polo mt ane02 elgood
Slide 11: You have seen Taboola before
You have seen Taboola before
Slide 12: Taboola can capture share of the highly fragmented $64B open web market
Taboola can capture share of the highly fragmented $64B open web market’ Open Web App Install RECOMMENDATIONS ENGINE Tabla e-Commerce Taboo Google SEARCH Video facebook amazon SOCIAL E-COMMERCE Affliates Banners (1 somone, 2020 Manet Ovo Ragon 12
Slide 13: Having an amazing year and it's just the beginning
Having an amazing year and it’s just the beginning Went public, raised $500M+ from great investors - Fidelity, Federated, Baron, others Beat Q1 projections and raised guidance for Q2 and full year 2021 Winning incredible partners, and progressing on our growth initiatives organically News [iid el H
Slide 14: Vision: Recommending Anything, Anywhere
Vision: Recommending Anything, Anywhere TabQla Core Business $1B+ in 2020 & Growing Rapidly? ANYTHING ‘$10M’s in 2020 New products and segments (TV ads, eCommerce, app downloads, gaming...)
Slide 15: About Connexity
About Connexity One of the largest e-Commerce media platforms in the open web Connecting top merchants with high-intent content to power one million monthly transactions ewayfair TabO2ia
Slide 16: Connexity by the numbers
Cc ity by the bers? - Powering e-Commerce in the open web at scale Strong 2020 Fi ial 1 At Imp ive Scale: $77M ex-tAc gross profit? 1,600+ direct merchant relationships $38M agiusted EBrtDAz 750M product offerings (SKUs) 20%+ ex-TAC gross profit growth YoY AM-+ monthly transactions 5O0%+* "Rule of 5
Slide 17: Agenda
Agenda Transaction Details About Taboola, About Connexity Strategic Rationale
Slide 18: Strong strategic rationale
Strong strategic rationale Bringing e-commerce Recommendations io ie Open Web Nn ” ~ - @ Accelerates Taboola Growth into $35B e-Commerce Media TAM (US alone) Adds Direct Relationships with 1,600+ Brand Name Merchants? Leverages contextual signals - not reliant on 3rd party cookies Expected to increa
Slide 19: eCommerce is the future of the internet and the open web
eCommerce is the future of the internet and the open web Accelerates Taboola Growth into $35B e-Commerce Media TAM (US alone) US Digital Ad Spending, Retail USD billions so $35.4B $10 2017 2018 2019 2020 2021 Source: eMaretr,“Digial Ad Spending By industry, US
Slide 20: Adds Direct Relationships with 1,600+ Brand Name Merchants
Adds Direct Relationships with 1,600+ Brand Name Merchants’ BRBAS Shek wchowy.. > Dierep @ sams Cid DOUGLAS ebay Etsy konms ENS ewayfair @ lululemon *MOCYS Poss NORDSTROM | overstock Parts petco.g QVC SEPHORA Geek (1) Conexty company data
Slide 21: Built for cookieless world using contextual signals
Built for cookieless world using contextual signals High-intent context + Rich transaction data = Strong performance without 3rd party cookies o Uewing == = = = ° The 9 Best Smartphones of 2021
Slide 22: Addition of e-Commerce data signals will increase yield and enhance network effect
Addition of e-Commerce data signals will increase yield and enhance network effect More Publisher More Users Reached Partners Generating more data H+6,000' publishers wi 1M Monthly Transactions' Inet new st Higher Yield (Better Results for Advertisers and Publishers) More Advertisers 1+ 1,600 Mercha
Slide 23: Becoming even more mission critical for open web publishers
Becoming even more mission critical for open web publishers ‘The Bost Stretchy But Won't Streteh-Out eons Monetization «———_—_—_ Manting wen onterve l+e-Commerce demand Engagement ¢+——— Engrg er by sone Audience, Brena aay asec tom Empowering edtor! teams wth tclonale data naghts 1+ Network insight:
Slide 24: Similar cultures, shared values.
Similar cultures, shared values. i Passion. Perseverance. Execution. connexity
Slide 25: Summary
Summary .gulstry approval and customary Become the go-to e-Commerce partner for publishers and merchants Expand “Recommend Anything” growth in e- Commerce Growing our Yield and competitiveness Financially exciting - accretive to growth and profitability TabOQla + 3 comenity
Slide 26: Your Questions
Your Questions
Slide 27: Appendix & Reconciliations
Taboola Appendix & Reconciliations
Slide 28: ex-TAC Gross Profit Reconciliation
ex-TAC Gross Profit Reconciliation Taboola annexit — bee baila Company Twelve months Twelve months Twelve montis ndedtarch (q Z02t 019 2020 “snded rch ‘ended arch 1 Suz021 31,2028 Traffic acquisition costs Other cost of revenues (63) ‘Add back: Other cost of revenues [ex-TAC Gross Profit
Slide 29: Adjusted EBITDA Reconciliation
d EBITDA R jation Taboola connesity (2) Seenbioest Twelve months Twelve months Twelve months ‘ended March 31, 2019 2020 fended March 31, ended March 31, 2021 2021 Net income (loss) ‘Adjusted to exclude the following Financial expense (income) 4 2 6 8 2 Tax expenses (income) B ° @) ” 6 Depreciation a
Slide 30: Ratio of Adjusted EBITDA to ex-TAC Gross Profit Reconciliation
Ratio of Adjusted EBITDA to ex-TAC Gross Profit Reconciliation connexity (1) 2019 2020 olor in thousands Adjusted EBITDA