Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Mandalay Digital Group — 17th Annual Needham Growth Conference (January 2015)
35 slides from Digital Turbine's conference presentation, Jan 13, 2015
Slide 1: Mandalay Digital Group, Inc. 17th Annual Needham Growth Conference
TSK mandalay digital group Mandalay Digital Group, Inc. 17th Annual Needham Growth Conference
Slide 2: Safe Harbor Statements
MANDALAY DIGITAL GROUP, INC. Safe Harbor Statements. ‘Statements in tis presentation that are not statements of historical fct and that concera foture resuls fom operations, zancal positon, economic conditions, Droduct releases, revenue and prodact synergies, cost savings, product or competitive fah
Slide 3: s
© 2015 Mandalay Digital Group, Inc. Pages
Slide 4: Smartphone shipments and app growth
USYeeul mamalay digital grovy, technology 1.4Bn +2Bn 1.3M +100k smartphones smartphones apps on both new apps shipped in 2014 predicted to shipin Google Play and each month 2015 the App Store Smartphone shipments are predicted to exceed more than 2 billion devices in 2015, while application developm
Slide 5: Mobile app monetization trends
USA mandalay ligilal group | Apps continue to Of mobile time spent || | Some Soe on applications Mobile is 20% of media time, but only 4% of, ene advertising spend Monetization e@ App discovery is a challenge with more than 2.6M+ apps Total mobile app revenue forecast to reach $46B in 2016 © 2035 Ma
Slide 6: Facebook Parallel
MANDALAY DIGITAL GROUP, Sigs mandalay ligilal group Facebook Parallel Facebook is currently driving approximately $1.9 billion in quarterly mobile ad revenue (J) FBstock hits low of $17.73 on September 4, 2012 N/ Y) Launches app install ads on October 17, 2012 Facebook now has generated over 700M. d
Slide 7: The largest independent ecosystem for app distribution
USA mandalay digilal group the largest independent ecosystem for app There is a multi-billion dollar opportunity to help the world’s global operators, device manufacturers, publishers, and other third parties to monetize mobile content vs. how other large over-the-top providers are siphoning that re
Slide 8: Distribution & Customers
Distribution & Customers © 2015 Mandalay Digital Group, Inc. Pages
Slide 9: Digital Turbine product mix
= DIGITAL GROUP, INC. Digital Turbine product mix -=lgnte™ SEARCY! DISCOVE! = Matetplce™ Cees =a s mamalay digital grovy, © 2015 Mandalay Digital Group, Inc. Pageg
Slide 10: Built for Driving Efficiencies and Mobile Monetization
Saal mandalay ligilal group Built for both Driving Efficiencies and Mobile Monetization Ability to preload applications 0) Monetize via CPI (Cost Per Od ter ees eee install) campaigns Saaeeneeies 02 Ability to run post-launch 05 Integration into Operator Data campaigns (notification tool) and CRM sy
Slide 11: Optimizing User Flow to Increase Performance
mandalay ligilal group Optimizing User Flow to Increase Performance Digital Turbine’s Ignite simplifies the conversion flow for app installs from 6 steps to 2 steps, creating an order of magnitude increase in mobile monetization a: Open app or mobile web site 4: Install App 5: Open App 2: Clickon mo
Slide 12: Digital Turbine Ignite Flow
(Sia mandalay Digital Turbine’s Ignite simplifies the conversion flow for app installs from 6 steps to 2 steps, creating an order of magnitude increase in mobile monetization Digital Turbine Ignite Flo e) Mandalay Digital Group, Inc. Page 12 °
Slide 13: Dynamic recommendations
MANDALAY DIGITAL GROUP, Sigs Dynamic recommendations Data-driven Incremental revenue source User focused mandalay ligilal group Right person, right app, right time Multiple delivery channels but one set of intelligence and backend systems to enable delivering the correct app to the correct person. ©
Slide 14: DT Product Vision: Right person, right app, right time
Bias (| mandalay digilal group DT Product Vision: Right person, right app, right time User Profile and Optimization technology will integrate with DT Ignite and DT 1Q Product suites to get the right App installs to each consumer and deliver the highest quality customers to our Advertisers DT Recomme
Slide 15: Content
MANDALAY DIGITAL GROUP, INC. Sigs mmandalay iy! yroup ° Content me Sphere in the Cloud. Full-service, all categories. Business models changing. Integrated billing. © 2015 Mandalay Digital Group, Inc. Page ss
Slide 16: Pay
DIGITAL GI % ; Pay Sari mandalay ligilal group ° Strategic. * Content providers concerned. * Operators limit connectivity. ¢ Expansion. © 2015 Mandalay Digital Group, Inc. Pages6
Slide 17: Strong Barriers to Entry & Competitive Advantage
Strong Barriers to Entry & Competitive Advantage install model, and expected to grow Strong intellectual property
Slide 18: Financial Overview
on ustomers ancial Overvi Team & Investors © 2015 Mandalay Digital Group, Inc. Page 8
Slide 19: Customers Leveraging the Mandalay Platform
MANDALAY DIGITAL GROUP, INC. Sigs mandaley dill resp Customers Leveraging the Mandalay Platform | 6 Cellcom vodafone : @avea =(SH = @ ciove : — <a a») SingTel Mk SMART ‘ 4 US Cellular © 2015 Mandalay Digital Group, Inc. Page 9
Slide 20: Publishers Leveraging the Appia Platform
MANDALAY DIGITAL GROUP, INC. Sigs mandalay ligilal group Publishers Leveraging the Appia Platform 4 & Frost Cupid? GD pocce id “pes Ocrippler Q@HANDMARK ZEDGE [x] Battae TAC/ smaat& cheetahmobile ae KSVObile pit 2) W) SP AppBrain Aol ¥ % iis WORDPRESS, © 2015 Mandalay Digital Group, Inc. Page 20
Slide 21: Appia's App Install Advertisers
MANDALAY DIGITAL GROt Saal mandalay digilal group Appia’s App Install Advertisers is ee Gomer Deh {Fikeu} # hipmunk aden d e@cree = ERE ‘eas EA 13] %B animoca O spotty: FOURSQUARE, eo Q TinyCo” Soe eee : StubHub ‘ see MRCSAATCHI ee Cupi id + CBS penne §— Zillow SP Poca rs i health ays GW BitRhymes D
Slide 22: Team & Investors
Team & Investors © 2015 Mandalay Digital Group, Inc. Page 22
Slide 23: Content revenue model
A ene c Siar mandalay ligilal group Content revenue model End User purchases content DT bills Carrier PPD less taxes less Carrier Rev Share DT pays content suppliers and third parties DT margin varies by content type and supplier Traditional Carrier content services, transactional content sales for
Slide 24: Advertising revenue model — today
A ene c mandalay digilal group Advertising revenue model — today $0.60 $1.20 $1.20 collects CPI Ad Partner Fee (Gross Profit for ‘Appia/Third Party Revenue Share Operator) Gross Profit for Digital Turbine Advertising campaigns for DT Ignite and DT IQ generally sourced by third parties such as Appia
Slide 25: Advertising revenue model — Pro Forma
a es c eS mandalay digilal group Advertising revenue model — Pro Forma collects CPI rate $0.6 + Pro forma for the Appia CORTON Gross Profit for Digital Turbine Media transaction, campaigns for DT Ignite and DT IQ will generally be sourced by Digital Turbine Media (formerly Appia) + Digital Turbine M
Slide 26: © 2015 Mandalay Digital Group, Inc. Page26
© 2015 Mandalay Digital Group, Inc. Page26
Slide 27: Experienced Executive Team
MANDALAY DIGITAL GROUP, INC. Sigs mandalay ligilal group Experienced Executive Team Bill Stone — Chief Executive Officer * 20+ years experience in carrier relations, wireless, content, media, technology, marketing and distribution * Executive positions at Qualcomm, Verizon, and Vodafone Ea = + veriz
Slide 28: Experienced Executive Team
Saal mandalay ligilal group pga es Executive Team Andrew Schleimer — Executive Vice President and Chief Financial Officer — President, Au Courant Capital Corp.; EVP of Strategic Development, Dick Clark Productions; EVP of Strategic Development, Six Flags; VP of M&A, UBS * Nick Montes — Head of Ameri
Slide 29: Experienced Executive Team: Appia
Saal mandalay digilal group Experienced Executive Team: Appia + Jud Bowman — Founder and Chief Executive Officer — Co-Founder and CTO, Motricity + Jamie Fellows - Chief Product Officer — SVP of Product, Millennial Media; VP of Product Management, AOL; Director of Product, Management Advertising.com
Slide 30: Pro Forma: Board of Directors and Equity Ownership Structure
MANDALAY DIGITAL GROUP, IN¢ Sigs mandalay ligilal group Pro Forma: Board of Directors and Equity Ownership Structure Board Composition Post Close Equity Ownership Structure Rob Deutschman, Chairman* °% Shares Held Today % Shares Held Post Close | Peter Guber L | 8% Paul Schaeffer | Bill Stone** | |
Slide 31: Transaction Process
Sari mandalay ligilal group Transaction Process Step Expected Ti Filing s-4 December 3% SEC Feedback Ese January a = | MNDL Shareholder Vote 20 business days after SEC clearance Closing Estimated first calendar quarter 2015 | J ¢ Acquisition expected to close CQ1’15 * Company changing name to Digita
Slide 32: Appendix
Appendix
Slide 33: Digital Turbine IQ Suite
ANDALAY DIGITAL GROUP. Digital Turbine IQ Suite Blend of App Recommendations and targeted sponsored app placement delivered from IQ cloud service Sari mandalay ligilal group Lighter Sponsored Information Pure Sponsored ‘Apps, more about user apps, lightest additional user preferences and additional
Slide 34: Appia: Revs from Chinese Publishers
MANDALAY DIGITAL GROt Saal mandalay digilal group Appia: Revs from Chinese Publishers = A) & j Baise ©2% cheetahmobile $700,000 oe © 2015 Mandalay Digital Group, Inc. Page 34
Slide 35: Additional Information
MANDALAY DIGITAL GROUP, INC Sigs mandalay digilal group Additional Information Additional Information and Where to Find It ee ee Dee Oa ee ee statement on Form S-4 that includes a proxy stat The definitive proxy statement prospectus will contain information about the proposed tanca‘ton fad related m
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