Ad pepper media International N : Roadshow Presentation - Q4 2020

Q4 UPDATE

ad pepper media International N.V.

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Certain market data and financial and other figures (including percentages) in these materials were rounded in accordance with commercial principles. Figures rounded may not in all cases add up to the stated totals or the statements made in the underlying sources. For the calculation of percentages used in the text, the actual figures, rather than the commercially rounded figures, were used. Accordingly, in some cases, the percentages provided in the text may deviate from percentages based on rounded figures. The financial information relating to the Group contained in this document has not been audited or reviewed.

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Q4 HIGHLIGHTS

• • ad pepper continues to lead the industry

• • Revenue: ca. EUR 7.650k (+28%)

• • EBITDA: ca. EUR 2.250k (+66%)

• • Webgains once again the main growth driver (+45%) followed by ad agents (+32%)

• • Strong balance sheet / cash position

• • Current share buyback program well covered by Q4 cashflow

• • Online shopping trends are here to stay

THE LONG PERSPECTIVE: AD PEPPER HIT THE

IMPORTANT 100M MARK FOR THE FIRST TIME

101.344

50.624 52.638 46.899 51.661 56.019 55.022 49.627 47.281 56.009

29.439 20.704 22.242

14.147

41.691

82.653 83.774

75.563

61.164

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Gross Sales in EUR `000

REVENUE | QUARTER-TO-QUARTER

IMPROVEMENT

bubbles indicate qoq growth

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

EBITDA | QUARTER-TO-QUARTER

IMPROVEMENT

bubbles indicate qoq growth

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q4 REVENUE | CLEARLY EXCEEDS LAST

YEARS` NUMBERS

Q4 2019

2.206

Q4 2020

Q4 2019

Q4 2020

Q4 2019

Q4 2020

DIGITAL AD SPENDING WORLDWIDE | 2018-2023

Digital ad spending

% of total media ad spending

2018

2019

2020E

2021E

2022E

2023E

Source: eMarketer

in billion USD

GROWTH OF GLOBAL AD-SPENDING

VS. GDP-GROWTH

Growth of ad-spendingGrowth of GDP

8,00%

-2,00% -4,00% -6,00% -8,00% -10,00%

6,00% 4,00% 2,00%

0,00%

2012

2013

2014

2015

2016

2017

2018

2019

2020E

2021E

2022E

Source: Dentsu Ad Spend Forecasts, IMF World Economic Outlook

COMPETITIVE LANDSCAPE

POSITIONING AD PEPPER GROUPS

SEGMENTS

AD AGENTS - WHAT THEY DO

SEA

AffiliateSocial Media AdvertisingProduct Data ManagementDisplay Advertising

NEW CUSTOMERS 2020

AD PEPPER - WHAT THEY DO

Audience TargetingAnalytics & DataConsulting

NEW CUSTOMERS 2020

FACT SHEET: WEBGAINS

Headquarter London

Offices Paris, Madrid, Bristol, Munich, Milano and Nuremberg

One of the leading international affiliate networks

15 years experience in affiliate marketing

Part of the Group since 2006

1,800 advertisers 250,000 publishers 100,000,000 transactions € 977,575,616 Gross Sales Value

NEW CUSTOMERS 2020

REVENUE & CUSTOMER RETENTION

ANALYSIS 2020 | WEBGAINS

10.333

31.12.2019

1.204

• • Adding minimum fees

• • Closing office US

• • GDPR

• • Insolvency/Bad debt

• • Weeding out bad-fit customers

• • Travel / leisure

CHURN

3.300

NEW (EXISTING)

NEW

31.12.2020

"CHURN" above long-term average due to one-offs (GDPR, US office, new minimum fee policy, etc.)

Revenue from new customers ("NEW") below long-term average due to pandemic (absence of large pitches)

REVENUE ACTIVE LINKS (RAL*):

BEST NEW CANDIDATES?

Internet Users

Publisher (websites)

Merchant (advertiser)

* a connection between a merchant and publisher which has generated > 1 sales transaction

Machine Learning distills the Webgains network to the most relevant, specific new link candidates for publishers and merchants

WEBGAINS MACHINE LEARNING (ML):

AFFILIATE DISCOVERY

• • ALL Webgains revenue is generated via so-called Revenue Active Links (RAL)

• • Affiliate Discovery - give personalized data driven recommendations to join merchant programs via RAL

• • Recommend: infer from data the likely best matches without any user input (vis-à-vis search, where the user provides a query)

• • Uses multiple ML models + techniques to build up a detailed, semantic picture of product feeds and dynamic publisher content

• • Central to:

  • ○ Network maintenance

  • ○ Network growth

  • ○ Network diversity

  • ○ Merchant sales and publisher commissions

• • The first in a series of ML-powered discovery modules we are launching

WEBGAINS MACHINE LEARNING:

FIRST RESULTS

Revenue Active Link (RAL) Growth

55.981

51.371

47.159

48.574

• • Went live 28 July 2020 and came out Beta (available on platform) 28 August 2020

• • H2 already saw a significant increase versus "undisturbed" RAL growth (H1 on H1)

H1 2019

H1 2020

H2 2019

H2 2020

GROUP FINANCIALS

KEY GROUP FIGURES FY 2020 |

SCALABILITY AT WORK

Gross Sales (non-IFRS)

Revenue (IFRS)

Gross Profit

OPEX

EBITDA

+21% 101.344

83.774

25.615

24.687

21.787

18.448

19.239

6.559

2019

2020

2019

2020

2019

2020

2019

2020

2019

2020

HEADCOUNT OVERVIEW | SEGMENT

ADMIN

More or less stable OPEX despite new hires in all segments

AD AGENTS

AD PEPPER

WEBGAINS

GROUP

SEGMENT EBITDA`S MULTIPLIED

VS PREVIOUS YEAR

OTHER KEY FINANCIALS

EPS (parent)Cash

Equity Ratio

25.229

25.342

0,06

0,17

41,0%

42,7%

31.12.2019

31.12.2020

31.12.2019

31.12.2020

31.12.2019

31.12.2020

THE SHARE

Shareholder Structure as of 11.02.2021

Update on Share Repurchase Program

• • Share repurchase program: Started 19 October 2020

• • Shares bought back so far

  (as per 08.02.21): 340.858 (EUR 1.6 million)

• • Current Share Buyback fully covered by Q4 Cashflow (gross): EUR 2.2 million

• • Liquid funds:

  EUR 25,342k (31.12.2020), debt-free

DIGITAL ADOPTION

TEMPORARY OR PERMANENT?

"Growing trend of online shopping is here to stay even when the pandemic is over"

Source: Swiss Re / McKinsey, December 2020

INVESTMENT CASE

No legacy Media Agency 100% focus on Performance Marketing

Growth sweet spot: At the forefront of digital transformation

Industry-leading growth

High net cash position (>EUR 1.00/share)

No Goodwill, Equity-Ratio >40%

Critical mass in all segments with big international clients on board

Scalable profitability with record EBITDA

QUESTIONS?