Nexxen International : First Quarter 2024 Earnings Presentation

Nexxen First Quarter

2024 Earnings Call

May 20, 2024

© 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.

Introduction to Speakers & Safe Harbor Statement

This presentation has been prepared by Nexxen International Ltd. (the "Company" or "Nexxen"). This presentation and the accompanying oral presentation contain forward-looking statements. These statements may relate to, but are not limited to: statements regarding anticipated financial results for full year 2024 and beyond; anticipated benefits of Nexxen's strategic transactions and commercial partnerships; anticipated features and benefits of Nexxen's products and service offerings; Nexxen's positioning for accelerated growth and continued future growth in both the U.S. and international markets in 2024 and beyond; Nexxen's medium- to long-term prospects; management's belief that Nexxen is well-positioned to benefit from future industry growth trends and Company-specific catalysts; the Company's expectations with respect to Video revenue; the potential negative impact of ongoing macroeconomic headwinds and uncertainty that have limited advertising activity and the anticipation that these challenges could continue to have an impact for the remainder of 2024 and beyond; the Company's plans with respect to its cash reserves; its continued focus in 2024 on expanding its base of end-to-end customers, growing data licensing revenue and expanding its streaming, TV, and agency partnerships to drive growth and increased profitability; the expectation of launching its TV Intelligence solution in additional major international markets in 2024, enhancing and expanding the Company's international CTV growth opportunity; the anticipated benefits from the Company's strategic partnership with Stagwell; the anticipated benefits from the Company's investment in VIDAA and its enhanced strategic relationship with Hisense; the anticipated benefits of the rebranding of the Tremor group to Nexxen, and the Company's plans with respect thereto, as well as any other statements related to Nexxen's future financial results and operating performance. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors that may cause Nexxen's actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including, but not limited to, the following: negative global economic conditions; global conflicts and war, including the current terrorist attacks by Hamas, and the war and hostilities between Israel and Hamas and Israel and Hezbollah, and how those conditions may adversely impact Nexxen's business, customers, and the markets in which Nexxen competes; changes in industry trends; the risk that Nexxen will not realize the anticipated benefits of its acquisition of Amobee and strategic investment in VIDAA; and, other negative developments in Nexxen's business or unfavourable legislative or regulatory developments. Nexxen cautions you not to place undue reliance on these forward-looking statements. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in the Company's most recent Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (www.sec.gov) on March 6, 2024. Any forward-looking statements made by Nexxen in this presentation speak only as of the date of this presentation, and Nexxen does not intend to update these forward-looking statements after the date of this presentation, except as required by law.

In addition to financial information presented in accordance with the International Financial Reporting Standards ("IFRS"), this presentation includes certain non-IFRS financial measures, including, but not limited to, Contribution ex-TAC, Adjusted EBITDA, Adjusted EBITDA Margin, Non-IFRS Net Income (Loss), and Non-IFRS Diluted Earnings (Loss) per share. These non-IFRS financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to, the corresponding financial measures prepared in accordance with IFRS. You are encouraged to evaluate these adjustments and review the reconciliation of these non-IFRS financial measures to their most comparable IFRS measures, and the reasons we consider them appropriate. It is important to note that the particular items we exclude from, or include in, our non-IFRS financial measures may differ from the items excluded from, or included in, similar non-IFRS financial measures used by other companies. See IFRS / Non-IFRS Reconciliation tables included in the appendix of this presentation for: "Revenue to Contribution ex-TAC," "Total Comprehensive Loss to Adjusted EBITDA," and "Net Loss to Non- IFRS Net Income (Loss) ".

This presentation contains statistical data, estimates, and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation. Nexxen, and the Nexxen logo are trademarks of Nexxen International Ltd. in the United States and other countries. All other trademarks are the property of their respective owners and are used for reference purposes only. Such use should not be construed as an endorsement of the platform and products of Nexxen. The use of the word "partner" or "partnership" in this presentation does not mean a legal partner or legal partnership.

© 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.

CompletedEnhanced

AmobeeSales &

IntegrationMarketing

© 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.

Rebranded

to

Nexxen

Renewed		Nexxen Positioned
Innovation		to Accelerate
Focus		Market Share Gains

Strengthened and Expanded

Major CTV Partnerships

Launched and expanded partnerships with LG, Roku, and TCL,

giving Nexxen strong relationships with all the world's major CTV OEMs

- a massive value proposition for Nexxen's TV advertising customers

© 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.

New Data Partnerships and International TV Data Capabilities Expansion

Soon launching ACR data segments with initial partners and in

conversations with others

about licensing Nexxen's

exclusive global data

Increased TV Intelligence adoption in UK in Q1 2024

Plan to launch TV Intelligence in other major markets in 2024, including Canada

Recently launched TV Intelligence in Australia

© 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.

VIDAA's growing distribution

and Nexxen's global ACR data exclusivity with VIDAA is fueling increasing demand for TV Intelligence and data licensing partnerships

	#1
	VIDAA's OS was the fastest-
	growing major smart TV
Surpassed reach of	platform globally in 2023,
growing shipments +23%

>25 million

CTVs globally in 2023

© 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.

Nexxen Data Platform

1. ONBOARDING

2. ASSETS

DIRECT

UPLOAD

CLEAN ROOM

PARTNER

ASSETS

CONTEXTUAL

3P

ACR

ID RESOLUTION

•	Nexxen Data Platform launch builds
	and expands upon DMP, Nexxen
	Discovery, and TV Intelligence assets
•	Positions Nexxen for more effective
	data monetization

	DATA
	PLATFORM	TV
	SSP	INTELLIGENCE
		DISCOVERY
	DSP
4. ACTIVATIONS	UNIFIED	3. APPLICATIONS
GRAPH

© 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.

•	Enables high-marginSaaS revenue
	growth opportunities
•	Enhances Nexxen's ability to address
	identity and privacy changes,
	including cookie deprecation

Recent Business Wins and Industry Recognition

Generating increased recognition and success winning large multi-solutionend-to-end partnerships with industry leaders

Major customers consolidating spending and increasing product adoption with Nexxen

Stagwell Marketing Cloud clients can	Shifted spend from other DSPs	Ranked Nexxen SSP in top 5	Winner at Digiday's
leverage Nexxen Data Platform to	and SSPs to run campaigns	SSPs across all major OEMs	Content Marketing Awards
securely run more effective data-	through Nexxen on both sides	in Q1 2024 Global CTV	for Best Interactive
powered campaigns through	and gain the full benefits of	Market Share Report	Content Piece
Nexxen's end-to-end platform	transacting end-to-end

Q1 2024

+88 New actively spending first-time advertiser customers

+7 New enterprise self- service advertising customers

+54	New global supply
	partners (+47 in US)

© 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.

Q1 2024

Financial Results

Generated record Q1 programmatic revenue, +34% Y/o/Y Adjusted EBITDA growth, and +23% Y/o/Y self-service

Contribution ex-TAC

growth in Q1 2024

*As % of Contribution ex-TAC

$69.7 M	$65.6 M	$11.9 M	17%
Contribution ex-TAC	Record Q1	Adjusted EBITDA	Adjusted EBITDA
(+4% y/o/y)	Programmatic	(+34% y/o/y)	Margin*
			Revenue (+5% y/o/y)
$18.8 M	23%	29%	66%
CTV Revenue	Y/o/Y Self-Service	CTV Revenue as a	Video Revenue as
(-11% y/o/y)	Contribution ex-TAC	% of Programmatic	% of Programmatic
				Growth	Revenue	Revenue

© 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.

Cash Flow, Liquidity, and EPS

$37.7 M	$144.9 M
Net Cash from Operating	Net Cash as of 03/31/2024
Activities (Q1 2024)

$0.01	~ $100 M
Q1 2024 Non-IFRS	Outstanding Long-Term Debt
Diluted EPS	Repaid ($0 Current LTD)

$90 M

Available on Revolving Credit Facility

Following Repayment (up from $80 million)

Company intends to prioritize capital allocation towards share repurchases, internal investment in growth and innovation, and ongoing needs of the business; no major near-term acquisitions planned

© 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.