IClick Interactive Asia : 4Q19 Earnings Presentation

iClick Interactive Asia Group Limited

Fourth-Quarter and Full-Year 2019 Earnings Presentation

NASDAQ: ICLK | 31 March 2020

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Disclaimer

The information in this presentation is provided to you by iClick Interactive Asia Group Limited (the "Company") solely for informational purpose and does not constitute an offer to buy or sell or solicitation of an offer to buy or sell, any securities of the Company in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever in the United States or anywhere else. Specifically, this presentation does not constitute a "prospectus" within the meaning of the U.S. Securities Act of 1933, as amended (the "Securities Act"). No securities of the Company may be offered or sold in the United States without registration with the U.S. Securities and Exchange Commission (the "SEC") unless pursuant to an available exemption from the registration requirement of the Securities Act. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company.

This presentation does not constitute legal, regulatory, accounting or tax advice to you. This presentation does not constitute and should not be considered as any form of financial opinion or recommendation by the Company or any other party.

This presentation contains "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "explore," "confident" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's fluctuations in growth; its success in implementing its mobile and new retail strategies, including extending its solutions beyond its core digital marketing business; its success in structuring a CRM & Marketing Cloud platform; relative percentage of its gross billing recognized as net revenues under the gross and net models; its ability to retain existing clients or attract new ones; its ability to retain content distribution channels and negotiate favorable contractual terms; market competition, including from independent online marketing technology platforms as well as large and well-established internet companies; market acceptance of online marketing technology and enterprise solutions; effectiveness of its algorithms and data engines; its ability to collect and use data from various sources; ability to integrate and realize synergies from acquisitions, investments or strategic partnership; the duration of the COVID-19 outbreak and its potential impact on the Company's business and financial performance; fluctuations in foreign exchange rates; general economic conditions in China and other jurisdictions where the Company operates; and the regulatory landscape in China and other jurisdictions where the Company operates. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other filings with the SEC. The Company, its officers, advisors, or representatives undertakes no obligation to update or revise these forward‐looking statements for events or circumstances that occur subsequent to the date of this presentation, except as required under law.

This presentation contains certain financial measures that are not recognized under generally accepted accounting principles in the United States ("GAAP"). The Company uses adjusted EBITDA, adjusted net income/(loss), and diluted adjusted net income/(loss) per ADS, each a non-GAAP financial measure, in evaluating the Company's operating results and for financial and operational decision-making purposes. The Company believes that adjusted EBITDA, adjusted net income/(loss), and diluted adjusted net income/(loss) per ADS help identify underlying trends in the Company's business that could otherwise be distorted by the effect of the expenses and gains that the Company includes in net loss. The Company believes that adjusted EBITDA and adjusted net income/(loss) provide useful information about the Company's operating results, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. Adjusted EBITDA, adjusted net income/(loss), and diluted adjusted net income/(loss) per ADS should not be considered in isolation or construed as an alternative to net loss or any other measure of performance or as an indicator of the Company's operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBITDA, adjusted net income/(loss), and diluted adjusted net income/(loss) per ADS presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. The Company encourages investors and others to review the Company's financial information in its entirety and not rely on a single financial measure. See Appendix for a reconciliation of the Company's adjusted EBITDA to net loss, its most comparable GAAP measure, and a reconciliation of the Company's adjusted net income/(loss) to net loss, its most comparable GAAP measure. These non-GAAP financial measures was presented with the most directly comparable GAAP financial measures together for facilitating a more comprehensive understanding of operating performance between periods.

THE INFORMATION CONTAINED IN THIS DOCUMENT MAY NOT BE FORWARDED, PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON (WHETHER WITHIN OR OUTSIDE YOUR ORGANIZATION/ FIRM) FOR ANY PURPOSE AND MAY NOT BE REPRODUCED IN ANY MANNER WHATSOEVER. ANY FORWARDING, PUBLICATION, DISTRIBUTION OR REPRODUCTION OF THIS DOCUMENT IN WHOLE OR IN PART IS UNAUTHORIZED.

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BUSINESS UPDATE

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Key Business Updates

Over US$30 Million

Credit Facility from HSBC

Fast Facts

• Arranged by HSBC's GBA+ Technology Fund
• Proceeds from the facility will be used for working capital and general corporate support

Rationale

• This credit facility helps supercharge the growth of our core business and enables us to enhance our ability to provide value-added solutions
• It will further strengthen our financial position and execution of strategic initiatives.

Obtained New Strategic and Financial Investors

Fast Facts

• Key investors, Marine Central Limited and Tech Famous Limited, have voluntarily elected to convert their convertible bonds in an aggregate principal amount of US$30 million

Rationale

• The early conversion indicates investors' confidence in our ability to execute and unlock shareholder value
• It also serves to substantially reduce the debt on our balance sheet, availing capital to promote our corporate development initiatives

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KEY FINANCIAL HIGHLIGHTS

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Multiple Records Achieved - Q4 2019 vs. Q4 2018

With first-ever quarterly adjusted net income

Gross billing

US$223 mn +128% YoY

Adjusted

EBITDA

US$2.5 mn +3.4mn YoY

Revenue	Gross profit
US$57 mn	US$17 mn
+43% YoY	+46% YoY

Adjusted

net income

US$118 K

Positive for the first time

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Multiple Records Achieved - FY2019 vs. FY2018

Record year with historical high gross billing, revenue, gross profit and adjusted EBITDA

Gross billing	Revenue
US$641 mn	US$199 mn
+60% YoY	+25% YoY

Gross profit	Adjusted EBITDA
US$57 mn	US$6 mn
+45% YoY	More than 3x YoY

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Revenue

Driven by Growing Market Demand from Marketers and New Enterprise Solutions

US$ mn Quarterly Revenue

	56.7
39.5
4Q18	4Q19

Annual Revenue

	199.4
160.0
2018	2019

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Revenue Breakdown

Marketing Solutions Record High & Enterprise Solutions Reached Target

US$ mn	Marketing Solutions	Enterprise Solutions
			189.0
	53.1
		160.0
39.5
4Q18	4Q19	2018	2019

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Gross Profit

Robust Growth in Gross Profit and Strong Gross Profit Margin

US$ mn Quarterly Gross Profit and

Gross Margin

30%	30%
	17.2
11.8
4Q18	4Q19

Gross profit

Gross margin

Annual Gross Profit and

Gross Margin

24%	28%
	56.7
39.1
2018	2019

Gross profit

Gross margin

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Non-GAAP Results

Annual Adjusted EBITDA More than Tripled and First-ever Quarterly Adjusted Net Income

US$ '000 Adjusted EBITDA

US$ '000 Adjusted Net Income/(Loss)

			5,908
	2,508
		1,564
(885)
4Q18	4Q19	2018	2019

	118
(1,291)
			(2,173)
		(4,669)
4Q18	4Q19	2018	2019

Note: For a reconciliation of the Company's adjusted EBITDA to net income/ (loss) and adjusted net income/(loss) to net income/ (loss), their most comparable GAAP measure, please refer to reconciliation tables in the Appendix.

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Guidance

Q1 2020 & FY2020

US$ mn

Revenue

260

240

50

46

Q1 2020

FY2020

Note: Red portion above indicates the Company's guidance range.

Gross Profit

Adjusted EBITDA

75	8

70

5

14

12

Q1 2020

FY2020

FY2020

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BUSINESS OVERVIEW

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About iClick Interactive

Strong Marketing Solutions and Data Analytics Capabilities

114,000	0.8 TB
MOBILE APPS
DATA COLLECTED
	DAILY

2.1Mil 824.9Mil

WEBSITESACTIVE

PROFILED USERS

16 AVERAGE ATTRIBUTES PER PROFILE

INTENT

INTEREST

ONLINE TRANSACTION

SOCIAL

DEMOGRAPHIC

OFFLINE PURCHASE

BEHAVIOR

Note: These data were as of March 31, 2019.

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Growth Strategy -

Completing the Consumer Full-Cycle Solution

Transitioning to an Integrated Enterprise and Marketing Cloud Platform to unlock the full potential of smart retail (online and offline)

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Core Business - Marketing Solutions

We use DATA and AI-DRIVENTECHNOLOGY to help brands target and acquire the RIGHT CUSTOMERS efficiently

Ads

MOBILE	VIDEO	SOCIAL	DISPLAY	SEARCH	824.9
~2,500(2)
				million(3)
Marketers	AD NETWORK	AD EXCHANGE		Active

Profiled Users

DATA

TECHNOLOGY

MEDIA

We are the LARGEST INDEPENDENT MARKETING TECHNOLOGY PLAYER in China, with a 4.9% market share of the digital advertising market(1)

1. Based on gross billing in 2018 according to a report commissioned by us and prepared by Frost & Sullivan. Independent marketing technology companies refer to online marketing technology companies that do not own, or are not part of any group which owns, any online publishing resources
2. Data for 2018
3. Data in the 30 days leading up to March 31st, 2019

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New Business Line - Enterprise Solutions

We partner with Tencent to offer fully-integrateddata-driven and smart Enterprise Solutions, which enable brands to manage their consumers more efficiently, help increase repurchase rate and therefore enhance the consumers' loyalty.

Tencent's Proprietary

API Connection

• Enable brands to build 360- degree consumers' profile through collecting and integrating purchasing behavioral information from both online and offline touchpoints, including WeChat

Payment, WeChat Work and

Official Accounts and across the

Brandsplatforms

Mini Programs

Development(1)

• Industry tailor-made and highly customized Mini Programs
• Fully integrated workflows connecting brands, employees and end consumers

Consumer Data Platform

Establishment

• Machine-learning& AI-driven data analytics
• Marketing automation and smart communication with consumers
• Sound consumers relations management (CRM) and sales training modules

Consumers

(1) WeChat mini-programs are "sub-applications" within the WeChat ecosystem which provide advanced features to users such as e-commerce, task management, coupons.

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APPENDIX

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GAAP to Non-GAAP Reconciliation

Reconciliation of Adjusted EBITDA to Net Loss

(US$'000, unaudited)	Three Months Ended	Year Ended
	December 31,	December 31,
	2019	2018	2019	2018
Net loss	(5,999)	(8,139)	(10,849)	(32,611)
Add/(less):
Depreciation and amortization	1,641	1,342	6,656	5,226
Interest expense	902	239	1,915	773
Interest income	(213)	(160)	(537)	(421)
Income tax expense/(benefit)	60	(1,015)	47	655
EBITDA	(3,609)	(7,733)	(2,768)	(26,378)
Add/(less):
Share-based compensation	458	6,396	2,115	19,679
Fair value losses/(gains) on convertible notes	813	(546)	(133)	4,837
Other gains, net (net of government grant)	(697)	(925)	(1,598)	(687)
Convertible notes issuance cost	4,556	-	4,556	2,190
Net loss attributable to noncontrolling interests	259	202	1,246	202
Share of losses from an equity investee	177	-	408	-
Cost related to new business setup or acquisitions	298	1,721	1,047	1,721
Cost related to filing of Form F-3	253	-	1,035	-
Adjusted EBITDA	2,508	(885)	5,908	1,564

Note: Adjusted EBITDA represents net loss before (i) depreciation and amortization, (ii) interest expense, (iii) interest income, (iv) income tax expense/(benefit), (v) share-based compensation, (vi) fair value losses/(gains) on convertible notes, (vii) other gains, net (net of government grant), (viii) convertible notes issuance cost, (ix) net loss attributable to noncontrolling interests, (x) share of losses from an equity investee, (xi) cost related to new business setup or acquisitions, and (xii) cost related to filing of Form F-3.

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GAAP to Non-GAAP Reconciliation

Reconciliation of Adjusted Net Income/ (Loss) to Net Loss

(US$'000, except share data and per share data, or otherwise	Three Months Ended		Year Ended
noted, unaudited)	December 31,		December 31,
	2019	2018	2019	2018
Net loss	(5,999)	(8,139)	(10,849)	(32,611)
Add/(less):
Share-based compensation	458	6,396	2,115	19,679
Fair value losses/(gains) on convertible notes	813	(546)	(133)	4,837
Other gains, net (net of government grant)	(697)	(925)	(1,598)	(687)
Convertible notes issuance cost	4,556	-	4,556	2,190
Net loss attributable to noncontrolling interests	259	202	1,246	202
Share of losses from an equity investee	177	-	408	-
Cost related to new business setup or acquisitions	298	1,721	1,047	1,721
Cost related to filing of Form F-3	253	-	1,035	-
Adjusted net income/ (loss)	118	(1,291)	(2,173)	(4,669)
Net loss:	(5,999)	(8,139)	(10,849)	(32,611)
Add: Non-GAAP adjustments to net income/ (loss)	6,117	6,848		8,676	27,942
Adjusted net income/(loss)	118	(1,291)	(2,173)	(4,669)
Denominator for net loss per ADS
- Weighted average ADS outstanding	57,240,609	54,556,147		56,950,785	52,904,817
Denominator for diluted adjusted net income/(loss) per ADS
- Weighted average ADS outstanding	58,023,602	54,556,147	56,950,785	52,904,817
Diluted net loss per ADS	(0.1048)	(0.1492)	(0.1905)	(0.6164)
Add: Non-GAAP adjustments to net loss per ADS	0.1068	0.1255		0.1523	0.5281
Diluted adjusted net income/(loss) per ADS	0.0020	(0.0237)	(0.0382)	(0.0883)

Note: Adjusted net income/(loss) represents net loss before (i) share-based compensation, (ii) fair value losses /(gains) on convertible notes, (iii) other gains, net (net of government grant), (iv) convertible notes issuance cost, (v) net loss attributable to noncontrolling interests, (vi) share of losses from an equity investee, (vii) cost related to new business setup or acquisitions, and (viii) cost related to filing of Form F-3. There is no material tax effects on these non-GAAP adjustments.

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iClick Interactive Asia Group Limited

1. | www.i-Click.com E | [e-mail] T | (852) 3700-9000

| iClick Interactive

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