Slide 1: e c ad s
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Slide 2: Board of Directors
Board of Directors Experienced management Milan Patel, FCCA, ACSI Chief Executive Officer, Chief Finance Officer team complemented by a non-executive board with significant AIM Public Company experience and Simon Bird industry knowledge Co-Founder & President — 7 Frank Beechinor-Collins , Non-Execut
Slide 3: Company background
Company background dotdigital Group Plc 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
Slide 4: Financials
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Slide 5: Key financials: eight year growth trends
FINANCIALS 8 year growth trends Strong growth in revenue, 7 £26.0M EBITDA and cash over the 26, KEY past eight years 244 23 5 ——Group Revenue (inc discontinued services) 22 | ° 214 Core Product Revenue 197% So | £214M ° 19 J —t— EBITDA Core Product Revenue growth 8 ] Cash at Year End ete aM cam ° 16
Slide 6: Financials: key trading highlights
FINANCIALS Key trading highlights 12 months to 30 June 2016 Top line revenue growth 26% increase in top line, from £21.4m to £26.9m Average monthly recurring revenues increase 29% increase from £445 to £575 International growth 58% growth in revenue outside of the UK Increase in incremental recurrin
Slide 7: Financials: trading performance
FINANCIALS Trading performance June 16 | June15 | Growth £'M £'M % Revenue 26.9 214 26% Cost of Sales* (3.4) (2.3) 48% Gross Profit 23.5 19.1 23% Administrative (17.4) (13.9) 25% Expenses** Operating 6.2 5.2 19% profit EBITDA 8.0 6.8 17% our bases in international t ries ting and Partner commission
Slide 8: Financials: statement of financial position
FINANCIALS Statement of financial position Balance sheet £'M £'M Assets 54 5.2 No debt » Breakdown of Other Current Assets 6.2 5.3 FY 15/16 CAPEX spend: Strong distributable Cash 73 119 Product Dev: £1.5m reserves Hardware: £0.5m Total Assets 28.9 224 Other: £0.1m Non Current Liabilities 0.7 04 Curr
Slide 9: Financials: cash flow
FINANCIALS Cash flow Strong cash flows generated from operations Total Free cash flows of £5.6m Healthy cash balance at the end of the period Over 40% of the monthly recurring value collected on Direct Debits in the UK region Higher dividend paid in the year Jun'16 Jun'15 £'M £'M Net cash generated
Slide 10: dotmailer overview
dotmaller overview
Slide 11: Email is alive and well
DOTMAILER OVERVIEW Email is alive and well * Email is loved by all. From merchants to marketers and agencies, from SMEs to large corporates in both B2B, B2C, public and private sectors. * Email is the digital key. You need one to sign up to social media, logins to apps. * Email is trusted to deliver
Slide 12: Marketing automation with email at its core
DOTMAILER OVERVIEW Marketing automation with email at its core dotmailer allows marketers to manage all stages of their marketing automation activity quickly and easily, from sophisticated data selections to deployment and measurement of their client interactions. Key features * Easy and fast to use
Slide 13: How dotmailer works
DOTMAILER OVERVIEW How dotmailer works Ecommerce data inciucing @ Magento" GQ shopify Data in Integrations make it fast and easy for customers to pull their data into dotmailer CRM data inctusing \ > Microsoft Dynamics Social data inctuding Hy Oe Content & other assets Systems & databases Web & emai
Slide 14: Email enables positive customer journeys
DOTMAILER OVERVIEW Email enables positive - ff »@Post purchase = customer journeys From an initial welcome message right through to the loyalty campaign which keeps customers coming back for more, email is the glue that binds together the customer experience of today. The platform enables smart use
Slide 15: Competitive landscape
DOTMAILER OVERVIEW Competitive landscape Campaign Monitor (@AWeber bluehornet™ And lots more. > Asmall number of customers outgrow dotmailer as they seek to centralise marketing/sales Adobe" Marketing Cloud with their large Tech Stack 5 SILVERPOP High performing, email Enterprise customers choose Sn
Slide 16: Growth strategy
Growth strategy
Slide 17: Key areas of focus
Key areas of focus Geographic expansion Solidify growth in the USA and Australia with a view to expand out into the wider geographic areas. Plus further International expansion into four new target territories EMEA. Procen innovation Continued enhancements in marketing automation technology and plat
Slide 18: 1. Geographic expansion
1. Geographic expansion digital ss”
Slide 19: No technical barriers to international growth
GEOGRAPHIC EXPANSION No technical barriers to international growth Languages In M using Hybrid Cloud Design. Local hardware for delivery. As well as English our platform works perfectly in French, German, Russian, Spanish, Portuguese, Italian. nee sssseaese tert ty tet ttt New languages can be added
Slide 20: US region
GEOGRAPHIC EXPANSION m= US region Successes Successes 2016 * Established US office * 2014/15 revenues were US $3.0m * 2015/16 revenues were US $4.3m * 2 employees * Built team size to 14 + Larger New York office established * Existing client spend increasing * Leadership team with business developme
Slide 21: Asia Pacific region
GEOGRAPHIC EXPANSION Asia Pacific region Successes + Established Australian office as Asia Pacific region base + 2 employees * Revenue generated of AUS $0.3m 8 partners signed with foothold in region Capitalise on positive reception in region Learnings + Need to build support network * Conversation
Slide 22: £140,000.00 5,000 4,500 £120,000.00 4,000 £100,000.00 3,500 3,000 £80,000.00 • 2,500 • £60,000.00 2,000
£140,000.00 5,000 4,500 £120,000.00 4,000 £100,000.00 3,500 3,000 £80,000.00 • 2,500 • £60,000.00 2,000 • £40,000.00 1,500 1,000 • £20,000.00 500 £- 0 •
Slide 23: New International territories
GEOGRAPHIC EXPANSION New International territories Approach + Target territories are Benelux, Middle East, Nordics and South Africa * Build brand awareness through targeted business development, marketing and selected events * Optimise proposition to the needs and price point of the local market * B
Slide 24: 2. Strategic partnerships
2. Strategic partnerships digital ss”
Slide 25: Existing strategic partnerships
STRATEGIC PARTNERSHIPS Existing strategic partnerships M Magento" * dotmailer’s is a Global Magento Premier Technology Partner + Annualised revenues of the dotmailer for Magento connector total more than £3m + Average recurring spend at £1,300 per month * As aresult of our Premier status dotmailer h
Slide 26: Diversification of our connectors
STRATEGIC PARTNERSHIPS Diversification of the our connectors Ecommerce CRM ste Magento Nico 2016/17 - Bigcommerce o OROCRM (2) COMMERCE ¢ SUGAR (X shopify Hola CRM
Slide 27: dotdigital se”
dotdigital se”
Slide 28: Product roadmap
PRODUCT INNOVATION Product roadmap New features and functionality are released quarterly to a roadmap designed to build and cement our attractiveness to mid market clients looking for a SaaS marketing automation platform. The quarterly release cycle is augmented by a fortnightly bug sprint and patch
Slide 29: Security & Privacy
PRODUCT INNOVATION Security & Privacy awe ESPCs2 Email Sender & Provider Coalition People and Awards * Dedicated Security and Privacy personnel — James Koons email * Member of Email Sender & Provider Coalition, Email Experience Council and FBI InfraGard experience Cc council * One of the first compa
Slide 30: People
Slide 31: People: Leadership Team
People Leadership Team Steve Shaw Chief Technology Officer Phil Draper Chief Marketing Officer David Aldrich Dan Morris EVP North America EVP Asia Pacific HR Director wi Rohan Lock James Koons George Skip Fidura Chief Privacy Kasparian Consultancy Officer Finance Director 31 | Annual Results Present
Slide 32: People
People Our people are the heartbeat of our business. We continue to invest in training and other activities to improve their skills and maintain the culture that is unique to dotdigital atdigital ss”
Slide 33: Outlook
Outlook
Slide 34: Outlook
Outlook Key strategy focused on continued strong organic growth: * Magento M2 connector uptake slow so diversifying our connector strategy to increase the addressable market « US growth slightly slower than expected so other International opportunities being explored to increase level of revenue out
Slide 35: 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 36: Appendix
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. Monthly Send Value per Band Customers per Band —— Va —_____= 01/01/201
Slide 38: New client wins
New client wins VD bidvine Jet2.com Friendly low fares HOWDENS MUSEUM OF LONDON Venesta Dune LONDON EIKING OF WATERSPORTS xicrvehicle management a> TECHNOLOGIES PROSKINS INTELLIGENT APPAREL phe eneragie group igi *% i771) Healthcare Sn, KS TEAM GB RRP HAND & LOCK Inspiring business (@)-? RESEARCH TR
Slide 39: New Magento client wins
New Magento client wins @ boobydoo—LINLEY DAISY Lay . PERFORMANCE ice = GB SSENEY direct ggsarXcom EAE | tOFS || Boutique 1 French Biborn Sdak&Sleep BASHARACARE i Y aoe SanaExpert Pulsin BEE a HAWK ; Z citylit — Lintbellsy habitat® WaES- BODYSFIT Natural pet health, made simple. dotdigital se”
Slide 40: Global client list
Global client list dotmailer is a the trusted email marketing partner of huge success stories around the world, including: biertety orcs Ee a re rman ES ft DHL SS eater VIZIO. umewerom CDF 4 I te Qk ees Harveys HAYS [Herz] Ubpy Pimesice Ltoctrotes ss wo eons iy findeats, LYS Lonvew <a a oro re GEEER