Slide 1: Annual Results 2014/2015
dotdigital sx." Annual Results 2014/2015 Simone Barratt & Milan Patel 13 October 2015
Slide 2: Board of Directors
Board of Directors Experienced executive management team complemented by a non-executive board with significant AIM Public Company experience and industry knowledge Simone Barratt Chief Executive Officer Milan Patel, FCCA, ACSI Chief Finance Officer & Company Secretary lan ‘Tink’ Taylor Co-Founder S
Slide 3: Company background
Company background dotdigital group was established in 1999. Originally providing a wide range of digital marketing services, but since 2013 totally focused on its email and multi- channel automation. We provide a Software-as-a Service platform to over 4,500 clients: marketers in medium and small en
Slide 4: Financials
Slide 4 of 31
Slide 5: Financials: year growth trends
FINANCIALS 7 year growth trends 22 Strong growth in revenue, 1 KEY £21.4M EBITDA and cash over the 20 —— Group Revenue £21.4M past six years 19 = Product Revenue 18 ——EBITDA } 7 —— Cash at Year End £16.4M 546% % Revenue growth ® 518% EBITDA growth 14 13 12 £11.9M ut 10 REVENUE in £m 9 30% 8 EBITDA C
Slide 6: Key trading highlights
FINANCIALS Key trading highlights 12 months to 30/06/2015 Top line revenue growth 32% increase in top line. From £21.4m to £16.2m. Investment in platform New multi-channel automation features released Solid financial performance EBITDA £6.8m — Higher than market expectations. Dividend proposed of 0.
Slide 7: Trading performance
FINANCIALS Trading performance Continuing operations Revenue 214 16.2 32% Cost of Sales (2.3) (1.5) 53% Gross Profit 19.1 14.7 30% Administrative (13.9) (11.1) 25% Expenses Operating 5.2 3.6 44% profit EBITDA 6.8 47 45% Breakdown revenue 11% Yo Global revenue breakdown 5.0% 0.7% 0.2% 8.9% mUK ™ Mage
Slide 8: Statement of financials: balance sheet
FINANCIALS Statement of financials Position (Balance sheet) Healthy balance sheet —— Breakdown of CAPEX spend: Product Dev: £1.6m Leasehold: £0.1m Hardware: £0.5m Other: £0.1m No debt Assets 5.2 44 te Other C it Asset 5.3 37 Strong distributable or etree’ reserves Cash 11.9 9.3 Total Assets 224 174
Slide 9: Cashflow
FINANCIALS Cashflow Strong cashflows generated from operations. Net cash generated from 54 5.2 Total Free cash flows of £2.7m. operations Net cash used in investing 2.3 2.0 Higher dividend paid in the year. activities Net cash used from 0.5 0) financing activities Healthy cash balance at the end of
Slide 10: dotmailer overview
Slide 10 of 31
Slide 11: dotmailer overview summary
DOTMAILER OVERVIEW Summary dotmailer is a fast, powerful and easy to use, email and multi-channel marketing automation platform. It allows marketers to manage all stages of their campaign activity from sophisticated data selections to deployment and measurement of their client interactions. Key feat
Slide 12: How dotmailer works
DOTMAILER OVERVIEW How dotmailer works Ecommerce data inciuding ({j) Magento’ i shopify ; U Data in Integrations make it fast and easy for customers to pull their data into dotmailer CRM data inctuding y Microsoft Dynamics Social data incwaing Hy Og Content & other assets va _| Systems & databases =
Slide 13: Customers join us. Then grow with us
DOTMAILER OVERVIEW. Customers join us. Then grow with us dotmailer provides clients around the world with marketing tools that are easy to use yet provide all the functionality that a mid sized or small enterprise needs now and as they grow “When | saw the EasyEditor in action | realised it is as ea
Slide 14: Customers' growth is our competitive differentiation
DOTMAILER OVERVIEW. Customers’ growth is our competitive differentiation Email marketing platforms Email automation platforms Multi-channel marketing Simple to use low technology solutions. Typically used by smaller, aspiring marketing teams. Advanced technical solutions. Typically used by marketing
Slide 15: Growth strategy
Slide 15 of 31
Slide 16: Key areas of focus for growth
Key areas of focus for growth trategic 7 Identify Partnerships & Channel Enhance our presence Move pricing and brand Further enhance our Package existing in the US and move perception to reflect our Channel Strategy. technologies for new into the Asia Pacific strengths in our multi- Continue to nurt
Slide 17: Geographic expansion
Geographic expansion. N#e a
Slide 18: Growth in the US
GEOGRAPHIC EXPANSION Growth In the US Growth Strategy * Focussed on selling the Magento connector via Magento System Integrator channel * Now 9% of our total revenue — 114% YoY growth. USA office STARTUP 2013/2014 2014/2015 * Magento have 24% of eCommerce market in North Employees 2 10 14 America an
Slide 19: US client list
GEOGRAPHIC EXPANSION US client list city chic laVieen Re se. H A TCH Ri] (fey PetCarer VIONIC De ib SAIL oq PetCarer KARDASHIAN ope Bry YAKIMA BE AUT Y™ a ee ( simplehunan P Horiévvi MOMENTS deborah neyville as QUALIFIRST lippmann.
Slide 20: Growth in Australia & Asia Pacific
GEOGRAPHIC EXPANSION Growth in Australia & Asia Pacific Established Office and Employ Core Staff. Ex Head of UK Sales established + Technical Pre sales redbox CLEMENGERBSDO Focus on Magento as key target. Magento has 47% of market share in Australia and NZ and 24% in Asia on n [CITY BEACH] Identifie
Slide 21: Scaling the platform for robustness
GEOGRAPHIC EXPANSION Scaling the platform for robustness Move physical data centre in the UK to ncsce 222 eeeititiin” a multi data centre environment using "3 Hybrid Cloud Design. Cloud for storage. +4 Local hardware for delivery. eo} Q: . by Rationale: * Scalability & reduced business risk “Sees *
Slide 22: Product innovation
Product innovation
Slide 23: Profitable Evolution vs Diversification
Profitable Evolution vs Diversification The Group is focussed on monetising its innovative technology and the dotmailer multi-channel automation platform has increased in sophistication exponentially over the last 18 months. A pilot programme has proven the hypothesis that customers are prepared to
Slide 24: Done, recently done, planned features
Done Recently done Planned features
Slide 25: Strategic Partnerships & Channel
Strategic Partnerships & Channel
Slide 26: Strategic partnerships & channel: Magento
STRATEGIC PARTNERSHIPS & CHANNEL Magento @, ‘TECHNOLOGY PARTNER dotmailer’s connector to the Magento eCommerce platform continues to be an important focus for the Group. Magento continues to dominate the eCommerce space with 26% penetration in North America, 31% in Europe, 24% in Asia and 47% in Aus
Slide 27: Integrations & Connections
STRATEGIC PARTNERSHIPS & CHANNEL Integrations & Connections We are committed to ensuring our M icrosoft integrations and CRM connectors salesforce Dyna mics CRM continue to deliver world-class performance to our customers. Sweet Tooth Triggered Capsule ATTRAQT Our partner network already provides Me
Slide 28: Identifying new niches
Slide 29: Identifying new niches: Localisation
Identifying new niches Localisation 2014/2015 pilot with partner in LATAM has delivered some valuable insights in terms of levers for success. The pilot has proven the case for a localised interface. The dotmailer platform is, we believe, unique in its ability to translate quickly and easily and to
Slide 30: People
Slide 30 of 31
Slide 31: Strengthened Leadership Team
Strengthened Leadership Team People Sharon Head David Aldrich Chief Operating Officer HR Director Steve Shaw Rohan Lock Chief Technology Officer EVP Asia Pacific James Koons, Chief Privacy Officer Dave Littlechild EVP North America Anup Khera Global SVP Sales Skip Fidura, Consultancy Phil Draper Mar
Slide 32: Outlook
Slide 32 of 31
Slide 33: Outlook
Outlook Key strategy focused on continued strong organic growth, through: * Continued investment in international markets through strategic channel and integration partnerships. * Continued investment in research and development to maintain dotmailer’s cutting edge multi-channel automation technolog
Slide 34: Disclaimer
Disclaimer This presentation contains certain forward- looking information and statements. Such forward-looking information and statements are based on the current, estimates and projections of the Company or assumptions based on information currently available to the Company. Such forward-looking i
Slide 35: Appendix
Slide 35 of 31
Slide 36: Global client list
Strategic report Global client list dotmailer is the trusted email marketing partner of huge success stories around the world. (Major ottocts, When | saw the EasyEditor in action | realised it is as easy as using Lego. Chits Hipson Oustome Bpareres Exonstarny Now cltonts Now Magento ctonts Ballour B
Slide 37: Core focus is the mid-market sector
Core focus is the mid-market sector Lifetime value of a mid market client is 10x that of the SME sector. Whilst sends volume are highest in the Corporate / Enterprise segments this tends to be at the expense of rates per million. Volume per Band Monthly Send Value per Band Customers by Band 30/04/20