Affle (India) Limited - Corporate Presentation Consumer Intelligence Driven Global Technology Company
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Affle (India) Limited Corporate Presentation July 2019 Consumer Intelligence Driven Global Technology Company
Affle | At a Glance
ABOUT BUSINESS SEGMENTS GLOBAL REACH
o Global technology company with a leading 1) Consumer Platform: Delivers acquisitions, India, South East Asia (SEA), Middle East and
market position in India and a profitable engagements & transactions for leading brands and Africa (MEA), North America (NA), Europe,
business model B2C companies. Also, includes retargeting & push Japan, Korea and Australia (JKA)
notification for e-commerce (97.0% FY2019 revenue)1
o Existent partnerships with top global
e-commerce companies, brands & agencies
2) Enterprise Platform: Enabling offline businesses to
go online through App development, O2O2 commerce
43.6% 56.4%
& data analytics (3.0% FY2019 revenue)1 India revenue1 International revenue1
END TO END MOBILE ADVERTISING R&D FOCUS WITH A STRONG PATENT FINANCIAL SUMMARY5
PLATFORM PORTFOLIO (FY2019 Proforma)
o In-house data management platform with over 3 10 3 4
Revenue Rs. 2,686mn
2.0 Bn1,3 consumer profiles that drives our Patents Patents filed in Patents pending
predictive & proprietary optimization algorithm registered in US India for digital related to EBITDA Rs. 741mn
o Fraud Detection platform to help deliver high for digital ad fraud retargeting business,
ROI to our customers advertising detection 1 in US and 2 in India PAT Rs. 518mn
1. For the year ended March 31, 2019 on a consolidated basis; 2. O2O : Online to Offline; 3. Consumer profiles for Affle Consumer Platform 4. Affle acquired from Vizury, five pending patents, of
which Affle intends to pursue one patent filed in US and two patents filed in India; 5. For the year ended March 31, 2019 on a Proforma basis 2
Affle | Cost Per Converted User (CPCU) Business
91.7% of Consumer Platform revenue contributed by CPCU model in FY20191 and 8.3% from Non-CPCU (CPC/CPM2 type advertising)
New user conversion Existing user repeat New/existing user
(online) conversion (online) conversion (offline)
Use Case – Targeted new user
Use Case – Target interested user to Use Case – Online bookings to drive
acquisition optimized to in-app
complete the transaction offline walk-ins (O2O)
transaction/registration/event
1. For the year ended March 31, 2019 on a consolidated basis; 2. CPC is Cost per Click, CPM is Cost per thousand Impressions
*FY2019 Consolidated information includes results of our Company, the Singapore Subsidiary and the Indonesian Subsidiary 3
End to End Technology Platform
Indian Ad Tech
~39% CAGR 2017-22
Smartphone segment India
~27.1% CAGR
2017-21
10 patents filed
mDMP
Advertisers
DIGIXX award 2019
Digital Marketing
Shoppers
Excellence in
Technology >3003 bn
mFaaS Consumer data points
IAMAI award - Best
ROI
Big Data Tech
Platform
>2.03 bn
Consumers
Consumer profiles
Human vs non-
human traffic Consumer Platform Business 55.03 mn
Converted
Users
SG:D Accredited FY2019 Converted
CPCU1 Revenue = CPCU2,3 x Users3
Rs. 2,2203 mn = Rs. 40.32,3 x 55.03 mn
~27.6%
E-commerce CAGR 2017-22
Market India4 *CPCU Revenue3 Breakup (Rs. mn) *Converted Users3 Breakup
638 19%
Brands / India 9%
993 588 Other Emerging Markets 5
Retail 71%
Developed Market 5
1. Cost per converted user (Pricing model for Affle, which is the cost paid by the advertiser); 2. Average CPCU; 3. CPCU, Consumer profiles data and financial metrics for the year ended March 31,
2019 on a consolidated basis; 4. Potential to be achieved basis increase in digital payments, broadband penetration and product options across the country; 5. Other Emerging Markets include South 4
east Asia, Middle East & Africa and Others; Developed Markets include North America, Europe and Japan, Korea & Australia; Source: Frost & Sullivan Report
Key Investment Highlights
1
Deep learning based understanding of consumer intent and behavior
2
End to end mobile advertising platform based solution
3
Profitable, low-cost business model with an asset light, automated and scalable platform
4
Addressing key industry issues related to consumer privacy and ad fraud
5
Proven international track record with significant growth potential
6
Well defined strategic roadmap for organic and inorganic growth
7
Leading position in India – A high growth market with substantial barriers to entry
51 Deep understanding of consumer intent & behavior
Over 2.01 billion consumer profiles across India and International markets
186mn
Others
330mn Over
435mn Europe
North America 102mn 300 bn
Japan, Korea
571mn & Australia
India
144mn
Middle East & Africa
252mn #Consumer data points
South East Asia accumulated in FY2019
# Consumer profiles
Developed Markets Other Emerging Markets
1. Consumer profiles and the related data points accumulated during Fiscal 2019 on a consolidated basis for the Affle Consumer Platform only; not including the Vizury Commerce
Business (Integration of Vizury Commerce Business’s consumer profiles and the related data points with our Affle Consumer Platform is currently ongoing) 62 End to End mobile advertising platform based solution
o Affle is uniquely positioned to offer end to end platform based solutions to deliver higher ROI to its customers
Key Components of Affle’s Consumer Platform
Audience Data Quality Experience
Publishers integrated
over SSP/API*
Appographic data
Commerce data
Intent data
Real-time Fraud checks Engaging Rich media, video &
Programmatic outreach over to help reduce ad fraud and native ad units to maximize
Trading Desk enhance quality ad experience
* SSP: Supply Side Platform; API: Application Programming Interface; DMP: Data Management Platform 72 Consumer Platform Value Chain
Drive walk ins & Identify
measure impact interested users
Re-engage users
& Maximize Acquire
transactions new users
Build engagement
83 Asset light, automated and scalable platform
o Scalable and proven technology platform has delivered outcomes profitably despite operating in a low CPCU market
Strong Network effects In-house platform leveraging
Flexible and Scalable Enhanced ability to generate cloud computing infrastructure
actionable outcomes, more
More ads delivered businesses to use Affle’s platforms Secure and trusted platform to
process and store large scale user data
Growth in consumer profiles over cloud computing infrastructure
with servers in India, Singapore & US
Self Learning & Predictive algorithm
Delivery of more precisely targeted ads
Proprietary and real time
Research & Development Affle’s prediction and recommendation
A result of 13 years of focused R&D, Artificial Intelligence algorithm operate in real time and at a
supported by a team of 100 R&D and 46 Machine Learning significant scale, setting them apart
Data Platforms & operations personnel1 from competitors
Deep Learning
Note: 1. As at May 31, 2019 9Addressing key industry issues related to privacy and
4
ad fraud
Robust IP Portfolio | Real time fraud detection through mFaaS | Platform accredited by SG:D
Data Privacy Ad Fraud Accreditation
Patents in US 12 Patents filed in India
3 Patents registered in US 10 Patents related to digital 2 Patents related to
#1 Consumer Acceptable ad fraud detection consumer retargeting1
Advertising
#2 Online Search System method & Affle’s real time solution for addressing mobile ad fraud, Singapore Government
a major issue in digital advertising
Computer Program Organization
#3 Extending the use and/or
Accredited based on audits/assessment
application of messaging systems
of security, reliability, usability and
1 Patent pending in US1 maintainability of the platform with
data servers in Singapore, India and USA
#4 Partner pixelling for user
DIGIXX Awards 2019 IAMAI India Digital Awards 2017
identification mFaaS awarded Gold in ‘Digital mFaaS awarded as the industry-wide ‘Best
Marketing Excellence in Technology’ Big Data Technology Platform’ of the Year
1. Affle acquired from Vizury five pending patent applications, of which three are pending in the United States and two are pending in India. Out of the three US patents, Affle
intends to pursue only one, which is in the field of partner pixelling for user identification 10Proven international track record with significant growth
5
potential
Given much higher CPCU in International Markets, further market penetration to drive significant revenue growth
# Converted users1 (mn) Average CPCU1,2 (Rs.) Revenue (Rs. mn) CPCU relative to India CPCU (x)
*For FY2019
consolidated
India 39.3 25.3 993
Other Emerging 10.6 60.2 638 x 2.4
Markets3
Developed
Markets3 5.2 114.1 588 x 4.5
1. Converted users and Average CPCU rounded off to nearest decimal point; 2. Cost per converted user (Pricing model for Affle, which is the cost paid by the advertiser); 3. Other Emerging
Markets include South east Asia, Middle East & Africa and Others; Developed Markets include North America, Europe and Japan, Korea & Australia
*CPCU data for the year ended March 31, 2019 on a consolidated basis; where consolidated information includes results of our Company, the Singapore Subsidiary and the Indonesian Subsidiary
11Well defined strategic roadmap for organic and inorganic
6
growth
Enabled by enhancing strengths and leveraging market opportunities in India and International markets
Continue to invest in and develop
technological capabilities
Drive further penetration with top Further develop the fraud detection &
customers with a key focus on delivering prevention platform and address key
more converted users for e-commerce industry challenges
Expand International business through
Continue to selectively pursue
local business development efforts
acquisitions
and referrals
Enhance revenue from existing and new Leverage Enterprise business to expand the
customers in India and grow consumer customers for Consumer Platform
profiles beyond Tier I cities
126 Inorganic Growth Plan
Pre Deal Assessment: Key Capability Attributes Strategic Focus
Financial Knowledge: Complementing teams,
tech and data strengthen our strategic
focus and enable efficient expansion to
Sustainability
Platform
other emerging markets
(Data)
M&A Targets must have Customers: Complementing customer
Scalability
Knowledge
Product
(Tech)
complementing People, relationship to enhance growth and
Products, Platforms and build greater recurrence and retention
Customers that would result in with integrated tech and data
sustainable financial growth...
Growth
(Team)
People
Financials: Enhance value for
shareholders by enhancing the
profitability of the acquired businesses
Relationship Recurrence Retention and the PE multiple
Customers
137 Leading Position in India
o Affle holds a leading position in the fast growing Indian market and has demonstrated consistent profitability in a market which has
substantial barriers to entry
Indian digital market to post strong growth while it is characterized by low prevailing CPCU’s and other unique challenges
Indian market – substantial barriers to entry Strategic advantage
Wide variation in buying patterns by Familiarity with local demographics,
Demographics audience types making optimization of algorithm accuracy and strong network
marketing spends challenging enables precise consumer targeting
Given lower consumer transaction values, Track record of delivering profits in a low
Price sensitivity
India remains a low CPCU market CPCU market like India
Online commerce penetration is still low Better placed due to extensive consumer
User behavior and thus more challenging to find profile data, proprietary technology and
transacting users local knowledge
Source: Frost & Sullivan Report titled “Industry Insights on the Advertising and Ad Tech Market” dated July 12, 2018 14India, a high growth market characterized by rapid growth
7
in internet, e-commerce and digital advertising
o Positive outlook for the advertising industry, backed by a rapid economic growth, technology advancements and internet penetration
India’s e-commerce market is in its early growth stages and has
India’s internet user base to expand significantly caused an all encompassing revolution in the retail industry
# internet users (mn) E-commerce market size (US$ bn)
1
730 130
445 93
68
39 50
2017 2020
2017 2018 2019 2020 2022
Digital advertising spend in India Mobile vs. desktop advertising spend in India
(US$ bn) (US$ bn)
4 2
2 1
0
0 2017 2018 2019 2020 2021 2022
2017 2018 2019 2020 2021 2022
Mobile Desktop
1. Potential to be achieved basis increase in digital payments, broadband penetration and product options across the country
Source: Frost & Sullivan Report titled “Industry Insights on the Advertising and Ad Tech Market” dated July 12, 2018 15Promoter and Group Structure
Shareholding Structure
Corporate restructuring effective July 1, 2018, in which a new Singapore subsidiary, Affle International acquired all of Affle Global’s business and intangible
assets, including equity interest in PT Affle Indonesia
Key Investors of the
Shareholding prior to Restructuring Shareholding structure post Restructuring Promoter (AHPL)
Affle Holdings Pte Ltd (“AHPL”) Affle Holdings Pte Ltd (“AHPL”)
Singapore Singapore
100.0% 83.46% 100.0% 75.63%1
Affle Global Pte 16.54% Affle (India) Ltd Affle Global Pte Ltd 16.54% Affle (India) Ltd (“Affle”)
Ltd (“AGPL”) (“Affle”) (“AGPL”)
India
Singapore India Singapore
100.0%
100.0% Transfer of business & intangible assets
PT Affle Indonesia Including the Affle brand name Affle International Pte Ltd.
(“PAI”) (“AINT”) Bennett, Coleman &
Indonesia Singapore Co. Ltd.
100.0%
OOO Marketplaces OOO Marketplaces Pvt Ltd
PT Affle Indonesia (“PAI”)
Pvt Ltd (“OM”)2 (“OM”)2
Indonesia
India India
1. AHPL and the Company have entered into agreements by which AHPL has sold 1,616,214 and 285,214 equity shares of the Company (cumulatively ~7.8% shareholding) to Malabar
India Fund Limited and Malabar Value Fund for Rs.1,164.50 mn and Rs.202.84 mn, respectively.; 2. Name was changed to ‘Affle X Private Limited’, as of July 4, 2019. 17Promoter Group | AHPL Financials Trend (with FY2019 AIL Proforma)
Revenue from Operations (Rs. mn) EBITDA (Rs. mn) & EBITDA Margin (%)
2,686
27.6%
1,748 22.3%
19.2%
1,307 2.3%
996 741
23 251 389
FY2016 FY2017 FY2018 FY2019
(AIL Proforma)1
FY2016 FY2017 FY2018 FY2019
(AIL Proforma) 1
Inventory & Data Cost and Employee cost as a % of
Total Operating Expense2 (Rs. mn) Revenue from Operations
97.7%
80.8% 77.7%
58.3%
1,359 51.3% 51.1%
Total = 973 1,056
893 22.3% 16.8%
581 671 14.2%
222 220 248
170 165 217
FY2016 FY2017 FY2018
FY2016 FY2017 FY2018
Inventory and Data Costs Salaries and Employee Benefits Inventory and Data Costs (%) Salaries and Employee Benefits (%)
Other Expenses Total Opex as a % of revenue from operations
1. For the year ended March 31, 2019 on a proforma basis. Derived from the unaudited proforma combined statement of profit and loss for the year ended March 31, 2019, which was prepared
for illustrative purposes to give effect to the Vizury Transactions as if they occurred on April 1, 2018; 2. Pre-EBITDA operating expense including all direct and indirect cash expenses, excluding
interest expense and non-cash expenses; *1 SGD = Rs. 49.51, Rs. 46.39 and Rs. 48.89, for the FY2018, 2017 and 2016 respectively, for conversion of AHPL financials from SGD to INR
18Financial Summary and Board & Management Profile
Financial Summary | Affle
Revenue from Operations (Rs. mn) EBITDA (Rs. mn) & EBITDA Margin (%)
2,686 28.2% 27.6%
2,494
20.0% 21.0%
741
703
1,178
838
248
168
Restated FY2018 Restated FY2019 Restated FY2019 FY2019 Restated FY2018 Restated FY2019 Restated FY2019 FY2019
Unconsolidated Unconsolidated Consolidated Proforma Unconsolidated Unconsolidated Consolidated Proforma
*FY2019 Consolidated information includes results of our Company, the Singapore Subsidiary and the Indonesian Subsidiary; **FY2019 Proforma information to illustrate consolidated
impact, if the transfer of Vizury Commerce Business would have been in place effective April 1, 2018 20Financial Summary | Affle
PAT (Rs. mn) & PAT Margin (%) Key Ratios (%)
19.5% 19.2% FY2019
Key Ratios1,2 (%) Consolidated
13.7%
10.4%
518
488 ROE (%)
67.4%
(Return on Equity)
ROCE (%)
74.2%
(Return on Capital Employed)
167
88 ROA (%)
30.8%
(Return on Assets)
Restated FY2018 Restated FY2019 Restated FY2019 FY2019
Unconsolidated Unconsolidated Consolidated Proforma Debt/Equity (x) 0.12x
1. Key Ratios: Return on Equity = (PAT / Total Shareholder’s Equity); Return on Capital Employed = [EBIT /(Total Assets – Current Liabilities)] and Return on Assets = (PAT / Total Assets)
2. AINT has not acquired any asset except intangible asset & equity interest in subsidiary as on July 01, 2018, the profit attributable to period April 01, 2018 to June 30, 2018 of Rs. 59.94
mn pertains to Affle Global Pte Limited is not included in ‘Other equity’. Adding Rs. 59.94mn to the Balance Sheet under Other Equity may have an impact on the ratios.
*FY2019 Consolidated information includes results of our Company, the Singapore Subsidiary and the Indonesian Subsidiary; **FY2019 Proforma information to illustrate consolidated
impact, if the transfer of Vizury Commerce Business would have been in place effective April 1, 2018 21Financial Summary | Affle
Total Expense (Rs. mn) Total Expense as a % of Revenue
2,059
1,900 Expenses as %
85.1% 83.1%
9 of Revenue 76.2% 76.6%
8 104
101 249 1.3% 0.4%
3.8% 3.7% 0.3% 0.4%
237
233 10.3% 9.5% 4.0% 3.9%
979 212 9.5% 9.3%
19.0% 16.6% 8.7%
Total = 713 8.5%
4
44
11 112
32 195 1,464
86 1,341
50.7% 52.9% 53.8% 54.5%
160
623
424
Restated FY2018 Restated FY2019 Restated FY2019 FY2019 Restated FY2018 Restated FY2019 Restated FY2019 FY2019
Unconsolidated Unconsolidated Consolidated Proforma Unconsolidated Unconsolidated Consolidated Proforma
Inventory and data costs Employee benefits expense Other expenses D&A Finance costs
*FY2019 Consolidated information includes results of our Company, the Singapore Subsidiary and the Indonesian Subsidiary; **FY2019 Proforma information to illustrate consolidated
impact, if the transfer of Vizury Commerce Business would have been in place effective April 1, 2018 22Promoter and Independent Directors
Individual Promoter and Managing Director
Anuj Khanna Sohum o A technopreneur with over 18 years of experience in leading technology products / platform based businesses
Chairman, Managing Director o Co-founded Anitus Technologies Pte. Ltd. and Seclore Technology Pvt. Ltd. in past
and Chief Executive Officer o Graduated in computer engineering from the National University of Singapore (NUS), Stanford Executive Program from the Graduate School
of Business, Stanford University and alumnus of Harvard Business School (OPM)*
Non-Executive Independent Director
Naresh Chand Gupta
o Listed amongst the inventors in numerous patent applications for computer applications and previously the managing director in Adobe
Chairperson of Risk Systems India Pvt. Ltd. Currently, a partner in Accuracap Technologies LLP and a director in Info Edge (India) Limited
Management Committee o Holds a B.Tech degree in computer science from IIT Kanpur, where he received the Ratan Swarup Memorial Gold Medal, master of science
and Ph.d from University of Maryland
Non-Executive Independent Director
Sumit Mamak Chadha o Over 27 years of experience in banking & financial services, previously worked in Citibank N. A. India for 20 years where she last worked as
Director and at BlackRock Services India Pvt. Ltd. for two years as Managing Director. Currently, head of enterprise shared services at XL
Catlin and a director of XL India Business Services Pvt. Ltd.
Independent Director
o Graduated from St. Stephen’s College at University of Delhi and a master’s degree in economics from Delhi School of Economics at the
University of Delhi and a master’s degree in economics from the University of California
Non-Executive Independent Director
Vivek Narayan Gour o Over 32 years of experience in marketing, financial services and aviation industry, previously in Genpact India and GE Capital Services India
and also been the MD and CEO of Air Works India (Engineering) Pvt. Ltd. Currently, he is also serving on the boards of directors of
Chairperson of Audit MakeMyTrip Limited and IndiaMART InterMESH Limited
Committee o Graduated in commerce from the University of Bombay, an MBA from FMS, University of Delhi and completed the Owner/ President
Management Program from Harvard Business School
Bijynath Non-Executive Independent Director
o An advocate and solicitor based out of Singapore, held the position of the Managing Director of the Camford Law Corporation when it was
Chairperson of Nomination & the Singapore member firm of PWC International. Founded the law firm Oxon Law and currently heads its practice
Remuneration Committee o Holds a bachelor’s degree in jurisprudence from the University of Oxford
Sudhir Jatia Non-Executive Independent Director
o Over 29 years of experience in luggage and travel products industry. Previously, been the director of VIP Industries Limited and currently
Chairperson of Stakeholders the chairman and managing director of Safari Industries (India) Limited
Relationship Committee o Owner/ President Management Program from Harvard Business School and graduated in S.Y.B.Com. from the University of Bombay
*Owner/President Management Program 23Key Management and Global Advisors
Executive Director
Anuj Kumar o Over 17 years of experience in advertising and technology platforms based business roles
Chief Revenue & Operating o Previously worked with J Walter Thompson (JWT), WPP Marketing India Pvt. Ltd. and ESPN Software India Pvt. Ltd.
Officer o Graduated from St. Stephen’s at University of Delhi and post graduate diploma in communications from Mudra Institute of
Communications, Ahmedabad (MICA)
Charles Yong Jien Foong Executive Director
o Has been associated with Affle Global since 2008 as the Director Online Services
Chief Architect & Technology o Over 19 years of experience and previously worked with The Edge Consultants Pte. Ltd. and Okilabs Pte. Ltd.
Officer o Bachelor’s degree in Sciences and in Engineering (honours) from Monash University
Kapil Mohan Bhutani Executive Director
o Leads the finance function for Affle
Chief Financial & Operations o Previously worked with KMG Infotech, a New York based software development Company and M/s. S. Mohan & Co.
Officer o Graduated from University of Delhi and is a member of the Institute of Chartered Accountants of India
Non-Executive Director
Mei Theng Leong
o Over 19 years of experience in accounting & finance previously held positions at IHM Sdn. Bhd., Pioneer Corporate Services Pte. Ltd. and
Chief Financial & Commercial Group Financial Controller at Europtronic Group Ltd.
Officer (International) o Bachelor’s of commerce majoring in accounting and finance from Curtin University of Technology, MBA from the University of Hong Kong
and a fellow member of CPA Australia
Richard Humphreys Advisor (Affle India)
o Extensive experience in advertising & media and previously served as the President of Saatchi & Saatchi Advertising Worldwide
Director of AHPL o Later set up the Adcom Investors in the United States and over the years has advised some of the world’s leading media companies
Advisor (Affle India)
Jay Snyder
o Has served as a Public Delegate, U.S. representative at the 55th UN General Assembly, a member of the US Advisory Commission on Public
Independent Observer Diplomacy & as Commissioner of the New York State Commission for Public Authority Reform
On Board of AHPL o Currently principal at HBJ Investments LLC, a private-equity and seed-capital funding company and has also worked with Biocraft
Laboratories, retiring as its Vice-President of Research and Product Development
24Appendix
AHPL Financial Statements (P&L)
26FY2019 Summary Financial Statements (P&L – Consolidated & Proforma)
Restated Consolidated Vizury Interactive Solutions Private
Total Unaudited
Statement of Profit and Limited on a consolidated basis for Acquisition
Proforma Condensed
Loss of Affle (India) the five months period ended August adjustments
Combined financial
In Rs. million Limited 31, 2018 [Note 3(a)(iii)]
information
(Historical) (Historical)
(A) (B) (C) (D=A+B+C)
I REVENUE
Revenue from contracts with customers 2,493.96 235.82 (43.69) 2,686.09
Other income 3.95 15.72 (11.80) 7.87
Total revenue (I) 2,497.91 251.53 (55.48) 2,693.96
II EXPENSES
Inventory and data costs 1,341.13 139.86 (17.34) 1,463.65
Employee benefits expense 212.27 89.16 (68.86) 232.57
Finance costs [refer Note 3(a)(iv)] 8.11 0.01 1.29 9.42
Depreciation and amortization expense [refer Note 3(a)(v)] 100.95 0.88 1.92 103.75
Other expenses 237.45 38.98 (27.15) 249.28
Total expenses (II) 1,899.91 268.90 (110.14) 2,058.67
III Restated Profit before tax (I-II) 598.00 (17.37) 54.66 635.29
IV Tax expense:
Current tax [refer Note 3(a)(vi)] 102.12 - 7.59 109.71
Deferred tax charge 7.67 - - 7.67
109.79 - 7.59 117.38
V Restated Profit/(Loss) for the year / period (III-IV) 488.21 (17.37) 47.06 517.90
27FY2019 Summary Consolidated Financial Statements (Balance Sheet)
As at As at
Particulars (In Rs. million) Annexures Particulars (In Rs. million) Annexures
March 31, 2019 March 31, 2019
ASSETS EQUITY AND LIABILITIES
III. EQUITY
I. Non-current assets (a) Equity share capital XV 242.88
(a) Property, plant and equipment VII 7.49 (b) Other equity 481.17
(b) Goodwill VIII 325.29 724.05
(c) Other intangible assets VIII 240.20
LIABILITIES
(d) Intangible assets under development VIII 17.95
IV. Non-current liabilities
(e) Financial Assets
(a) Financial Liabilities
(i) Investments IX(a) 0.26
(i) Borrowings XVII 69.17
(ii) Loans IX(b) 0.80
(b) Long-term Provisions XVI 15.37
(f) Deferred tax asset (net) X -
(c) Deferred tax liabilities (net) X 2.68
(g) Other non-current assets XI -
Total Non-current assets 591.99 Total Non-current liabilities 87.22
II. Current assets V. Current liabilities
(a) Contract asset XX 131.87 (a) Contract liabilities XX 6.79
(b) Financial Assets (b) Financial Liabilities
(i) Trade receivables XII 478.83 (i) Borrowings XVII 20.75
(ii) Cash and cash equivalents XIII 206.08 (ii) Trade Payables XVIII(a)
(iii) Other bank balance other than (ii) XIII 98.83 - dues of micro and small enterprises -
above
(iv) Loans IX(b) 10.77 - others 517.11
(v) Other financial assets IX(c) 29.03 (iii) Other financial liabilities XVIII(b) 198.75
(c) Current tax asset (net) XIV 11.58 (c) Short-term Provisions XVI 3.48
(d) Other current assets XI 23.68 (d) Other current liabilities XIX 24.51
Total Current assets 990.67 Total Current liabilities 771.39
Total Assets (I+II) 1,582.66 Total Equity and Liabilities (III+IV+V) 1,582.66
28Unconsolidated Summary Financial Statements (Last 3 years P&L)
For the year ended Forended
For the year the year ended Forended
For the year the year ended
For the year ended
Particulars Particulars (In Rs. million, except per share numbers)
Annexures Annexures
March 31, 2019
March 31,March
2019 31, 2018
March 31,March
2018 31, 2017
March 31, 2017
REVENUE I REVENUE
Revenue from contracts
Revenue from
with customers
contracts with customers XX(a) XX(a) 1,177.94 1,177.94 837.56 837.56 656.29 656.29
Other income Other income XXI XXI 36.51 36.51 11.22 11.22 11.71 11.71
Total revenue Total
(I) revenue (I) 1,214.45 1,214.45 848.78 848.78 668.00 668.00
EXPENSES II EXPENSES
Inventory and data
Inventory
costs and data costs XXII XXII 622.91 622.91 424.27 424.27 323.78 323.78
Employee benefits
Employee
expensebenefits expense XXIII XXIII 195.45 195.45 159.52 159.52 176.23 176.23
Finance costs Finance costs XXIV XXIV 4.47 4.47 10.78 10.78 15.86 15.86
Depreciation and
Depreciation
amortizationand
expense
amortization expense XXV XXV 44.13 44.13 32.13 32.13 23.07 23.07
Other expenses Other expenses XXVI XXVI 112.07 112.07 86.12 86.12 121.06 121.06
Total expensesTotal
(II) expenses (II) 979.03 979.03 712.82 712.82 660.00 660.00
RestatedIII
profitRestated
before tax (I-II)
profit before tax (I-II) 235.42 235.42 135.96 135.96 8.00 8.00
Tax expense:
IV Tax expense: X X
Current tax Current tax 60.96 60.96 46.20 46.20 1.82 1.82
Deferred tax charge [includes
Deferred adjustment
tax charge of MAT
[includes credit entitlement
adjustment of MAT credit entitlement
amounting to INR Nil (March
amounting 31, Nil
to INR 2018: Nil and
(March 31,March
2018: 31,
Nil 2017: INR 31, 2017: INR
and March 7.67 7.67 1.45 1.45 2.88 2.88
1.82 million)] 1.82 million)]
RestatedVProfitRestated
for the years
Profit(III-IV)
for the years (III-IV) 166.79 166.79 88.31 88.31 3.30 3.30
Other Comprehensive Income/ (loss),Income/
Other Comprehensive net of tax
(loss), net of tax (0.18) (0.18) (0.08) (0.08) 3.13 3.13
I Total Comprehensive Income for theIncome
VII Total Comprehensive years (V
for+the
VI)years (V + VI) 166.61 166.61 88.23 88.23 6.43 6.43
I EarningsVIII
per equity share:per equity share:
Earnings
(1) Basic (1) Basic XXVIII XXVIII 6.87 6.87 3.64 3.64 0.14 0.14
(2) Diluted (2) Diluted XXVIII XXVIII 6.87 6.87 3.64 3.64 0.14 0.14
29Unconsolidated Summary Financial Statements (Last 3 years Balance Sheet)
As at As at As at As at As at As at
Particulars (In Rs. million) March 31, 2019 March 31, 2018 March 31, 2017 Particulars (In Rs. million) March 31, 2019 March 31, 2018 March 31, 2017
ASSETS
I. Non-current assets EQUITY AND LIABILITIES
(a) Property, plant and equipment 6.56 3.67 3.63 III. EQUITY
(b) Capital work-in-progress - - - (a) Equity share capital 242.88 242.88 242.88
(c) Goodwill 134.38 59.24 59.24 (b) Other equity 219.80 58.77 (32.57)
(d) Other intangible assets 94.73 88.18 80.14 462.68 301.65 210.31
(e) Intangible assets under development 17.95 - 3.06 LIABILITIES
(f) Investment in subsidiary 138.19 - -
IV. Non-current liabilities
(g) Financial Assets
(a) Financial Liabilities
(i) Investments 0.26 0.26 0.20
(i) Borrowings - - 5.26
(ii) Loans 0.07 5.83 6.31
(b) Long-term Provisions 15.37 11.42 9.12
(h) Deferred tax asset (net) - 4.94 18.96
(i) Non current tax asset (net) (c) Deferred tax liabilities (net) 2.68 - -
- - -
(j) Other non-current assets - 0.05 0.32 Total Non-current liabilities 18.05 11.42 14.38
Total Non-current assets 392.14 162.17 171.86
V. Current liabilities
II. Current assets (a) Contract liabilities 2.50 3.42 1.04
(a) Contract asset 96.49 77.19 38.85 (b) Financial Liabilities
(b) Financial Assets (i) Borrowings - - 28.34
(i) Trade receivables 269.26 158.23 135.30 (ii) Trade payables
(ii) Cash and cash equivalent 84.90 136.71 57.89 - dues of micro and small enterprises - - -
(iii) Other bank balance other than (ii) above 14.50 8.20 29.58 - others 323.74 220.24 160.08
(iv) Loans 7.62 1.62 0.39
(iii) Other financial liabilities 104.50 24.89 59.66
(v) Other financial assets 12.51 0.10 0.08
(c) Current tax asset (net) (c) Short-term Provisions 1.37 1.07 1.47
36.15 24.35 28.48
(d) Other current assets 22.28 11.74 24.46 (d) Other current liabilities 23.01 17.62 11.61
Total Current assets 543.71 418.14 315.03 Total Current liabilities 455.12 267.24 262.20
Total Assets (I+II) 935.85 580.31 486.89 Total Equity and Liabilities (III+IV+V) 935.85 580.31 486.89
30Glossary of Terms
AGPL Affle Global Pte. Ltd.
AHPL Affle Holdings Pte. Ltd.
CAGR Compound Annual Growth Rate
CPCU Cost per Converted User
DMP Data Management Platform
DSP Demand Side Platform
Financial year (FY) Every April 1 to March 31
INR / (Rs.) Indian Rupee
MAAS Mobile Audience As a Service
mFaaS mTraction Fraud Analytics As a Service
P&L Profit & Loss Statement
The Restated Ind AS Consolidated Summary Statements comprise the consolidated financial results of our Company, the Singapore Subsidiary and the Indonesian
Subsidiary. The Singapore Subsidiary acquired the business/ assets of Affle Global on July 1, 2018, which has been accounted with effect from April 1, 2018, i.e., the
beginning of the earliest period of consolidated financial statements presented under IND AS pursuant to the fact that our Company, the Singapore Subsidiary, the
Consolidated Indonesian Subsidiary and Affle Global are under the common control of Affle Holdings, our corporate Promoter. As Affle international has not acquired any asset
except intangible asset & equity interest in subsidiary as on July 01, 2018, the profit attributable to period April 01, 2018 to June 30, 2018 of amounting INR 59.94 Mn
pertain to Affle Global Pte Limited has been adjusted from consolidated profit for the seven-month period under ‘Other Equity’ in the balance sheet. The same has
been disclosed as cash flows from investing activities.
The Proforma financial information for illustrative purposes presented by the Company to illustrate the impact of the Transaction and includes the proforma combined
statement of profit and loss for the year ended March 31, 2018 which gives effect to the Transaction as if it occurred on April 1, 2017. PT Affle Indonesia and Affle
Global are entities under common control and the proforma financial information has been prepared by considering the assets and liabilities of PT Affle Indonesia and
Proforma
assets taken over at their carrying amounts. The proforma financial information for the acquisition of the Vizury Commerce Business has been prepared by considering
that identifiable assets were acquired, and the liabilities assumed were measured, at their acquisition date fair values. The Proforma combined statement of profit
and loss for the year ended March 31, 2019, which gives effect to the Vizury Transactions as if they occurred on April 1, 2018.
ROA Return on Assets
ROCE Return on Capital Employed – [EBIT / (Total Assets – Current Liabilities)]
ROE Return on Equity – (PAT / Total Shareholder’s Equity)
ROI Return on Investment
RTB Real Time Bidding
SGD Singapore Dollars
SSP Supply Side Platform
USD United States Dollars
31Disclaimer
This presentation and the accompanying slides (the “Presentation”) have been prepared by Affle The Company proposes, subject to receipt of requisite approvals, market conditions and other
(India) Limited (“Affle” or the “Company”) solely for information purposes and does not considerations, to make an initial public offering of its equity shares (“Equity Shares”) in India
constitute an offer to sell, or recommendation or solicitation of an offer to subscribe for, or and has filed a red herring prospectus dated July 19, 2019 (“RHP”) with the Registrar of
purchase any securities, and nothing contained herein shall form the basis of any contract or Companies, Maharashtra. Any potential investor should note that investment in equity shares
commitment whatsoever. This Presentation is strictly confidential and may not be taken away, involves a high degree of risk and for details, see the section titled “Risk Factors” of the red
copied, published, distributed or transmitted or reproduced or redistributed or passed on directly herring prospectus.
or indirectly to any other person, whether within or outside your organization or firm, or
published in whole or in part, for any purpose by recipients directly or indirectly to any other By attending this presentation and/or accepting a copy of this document, you agree to be bound
person. This Presentation is not intended to be a prospectus (as defined under the Companies by the foregoing limitations and conditions and, in particular, will be taken to have represented,
Act, 2013, as amended) or an offer document under the Securities and Exchange Board of India warranted and undertaken that: (i) you have read and agree to comply with the contents of this
(Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended. notice including, without limitation, the obligation to keep this document and its contents
confidential; (ii) you will not at any time have any discussion, correspondence or contact
The information contained in this Presentation should be considered in the context of the concerning the information in this document with any of the directors or employees of the
circumstances prevailing at the time and has not been, and will not be updated to reflect Company or its subsidiaries nor with any of their customers or suppliers, or any governmental or
material developments including economic, regulatory, market and other developments, which regulatory body without the prior written consent of the Company; (iii) you agree not to remove
may occur after the date of the Presentation. You acknowledge and agree that the Company or copy this document, or any materials provided in connection herewith; and (iv) you are an
and/or its affiliated companies and/or their respective employees and/or agents have no eligible investor attending this presentation.
responsibility or liability (express or implied) whatsoever and howsoever arising (including,
without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) Certain information contained in this section is derived from the Frost and Sullivan Report titled
which may be brought against or suffered by any person as a result of acting in reliance upon the ― “Industry Insights on the Advertising and Ad Tech Market”, dated July 12, 2018 (“Frost and
whole or any part of the contents of this Presentation and neither the Company, its affiliated Sullivan Report”) and other publicly available sources. Neither we, nor any other person
companies nor their respective employees or agents accepts any liability for any error, omission connected with the Offer has independently verified this information. Industry sources and
or misstatement, negligent or otherwise, in this Presentation and any liability in respect of the publications generally state that the information contained therein has been obtained from
Presentation or any inaccuracy therein or omission therefrom which might otherwise arise is sources generally believed to be reliable, but their accuracy, completeness and underlying
hereby expressly disclaimed. assumptions are not guaranteed and their reliability cannot be assured. Industry publications are
also prepared based on information as of specific dates and may no longer be current or reflect
Certain statements contained in this Presentation are statements of the Company’s beliefs, plans current trends. Please refer to slide 33 of this presentation for the disclaimer to the Frost &
and expectations about the future and other forward looking statements that are based on Sullivan Report.
management’s current expectations or beliefs as well as a number of assumptions about the
Company’s operations and factors beyond the Company’s control or third party sources and The Equity Shares offered in the Offer have not been and will not be registered, listed or
involve known and unknown risks and uncertainties that could cause actual results to differ otherwise qualified in any jurisdiction except India and may not be offered or sold to persons
materially from those contemplated by the relevant forward looking statements. Forward looking outside of India except in compliance with the applicable laws of each such jurisdiction. In
statements contained in this Presentation regarding past trends or activities should not be taken particular, the Equity Shares have not been and will not be registered under the U.S. Securities
as a representation that such trends or activities will continue in the future and no undue Act of 1933, as amended (the “U.S. Securities Act”), or the laws of any state of the United States
reliance should be placed on them. and may not be offered or sold in the United States (as defined in Regulation S under the U.S.
Securities Act (“Regulation S”)) except pursuant to an exemption from, or in a transaction not
The information contained in this Presentation is not to be taken as any recommendation made by subject to, the registration requirements of the U.S. Securities Act and applicable state securities
the Company or any other person to enter into any agreement with regard to any investment. You laws. The Equity Shares are being offered and sold only outside the United States pursuant to
will be solely responsible for your own assessment of the market and the market position of the Regulation S.
Company and you will conduct your own analysis and be solely responsible for forming your own
view of the potential future performance of the business of the Company. 32Frost and Sullivan Disclaimer
“This independent market research report on the advertising and ad tech varying levels of quantitative and qualitative analyses, including industry
market has been prepared by Frost & Sullivan India Pvt. Ltd. (“Frost & journals, company reports and information in the public domain.
Sullivan”) for Affle (India) Limited (“Affle”) in relation to the initial public
offering of Affle’s equity shares (“Equity Shares”) and the listing of the Forecasts, predictions, and other forward-looking statements contained in
Equity Shares on certain stock exchanges in India. this report are inherently uncertain because of changes in factors underlying
their assumptions, or events or combinations of events that cannot be
Frost & Sullivan has prepared this report through extensive primary and reasonably foreseen. Actual results and future events could differ materially
secondary research, which involves discussing the status of the industry with from such forecasts, predictions or such statements.
leading market participants and experts, and compiling inputs from publicly
available sources, including official publications and research reports. Frost In making any decision regarding an investment in the Equity Shares, the
& Sullivan has prepared this report in an independent and objective reader should conduct its own investigation and analysis of all facts and
manner, and has taken adequate care to ensure its accuracy and information contained in Affle’s draft red herring prospectus/red herring
completeness. Frost & Sullivan believes that this report presents a true and prospectus/prospectus and the reader must rely on its own examination and
fair view of the global and Indian advertising and ad tech markets and the terms of the offer. The reader should not construe any of the contents
within the limitations of, among others, secondary statistics research, but it in this report as advice relating to business, financial, legal, taxation or
does not purport to be exhaustive. The results that can be or are derived investment matters and is advised to consult its own business, financial,
from these findings are based on certain assumptions and legal, taxation, and other advisors concerning the offer of the Equity
parameters/conditions. As such, a blanket, generic use of the derived Shares.
results or the methodology is not encouraged.
This report has been prepared for Affle’s internal use, submission, and
Unless stated otherwise, all analysis, estimates, and forecasts, predictions, sharing with all parties advising on the offer of Equity Shares as well as for
and other forward-looking statements contained in this report are Frost & the inclusion of all of it or any parts thereof in Affle’s draft red herring
Sullivan’s. Frost & Sullivan’s analysis, estimates and forecasts, predictions, prospectus/red herring prospectus/prospectus.”
and other forward-looking statements contained in this report are based on
33Corporate: affle.com Investor Relations Contact investor.relations@affle.com
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