Affle 3i Limited · NSE:AFFLE
Affle 3i — Affle (India) — Investor Presentation (March 2023)
43 slides from Affle 3i's investor presentation, Mar 31, 2023
Slide 1: Affle (India) Limited Corporate Presentation
Affle (India) Limited Corporate Presentation As of March 31, 2023 Consumer Intelligence Driven Global Technology Company
Slide 2: Affle | Built to Last
17+ years Global Track record Reach & opportunity Performance driven Leading Business model In India Scalable Committed Data platforms Leadership Affle I Built to Last High Positive (ESG@Affle) Growth markets Cashflows Growth driven Robust Global customer base Profitability Accelerated Strategic Con
Slide 3: Affle | At a Glance
Affle | At a Glance ABOUT BUSINESS SEGMENTS GLOBAL REACH o Global technology company 1) Consumer Platform: Delivers acquisitions, India, Southeast Asia (SEA), Middle East and engagements & transactions for leading brands and Africa (MEA), North America (NA), Europe, B2C companies. Also, includes ret
Slide 4: Simplifying and unifying the ecosystem
Affle | Simplifying and unifying the ecosystem Advertiser Consumer Verticalization Vernacular Consumer Platform Business Converted Average CPCU1 CPCU Revenue users (mn) (Rs.) (Rs. mn) FY2023 256.8 51.3 13,175 FY2022 195.3 49.9 9,740 FY2021 105.3 40.8 4,294 ROI Converted FY2020 72.3 41.0 2,965 Users
Slide 5: Key Investment Highlights
Key Investment Highlights 1 Performance driven end-to-end mobile tech platform powered by technology and innovation 2 Robust intellectual property (IP) portfolio addressing data privacy issues, ad fraud and futuristic tech use cases 3 Long term industry tailwinds remain well grounded 4 Leading posit
Slide 6: Performance driven, high ROI CPCU business model
1 Performance driven, high ROI CPCU business model 91.9% of Revenue from Operations contributed by CPCU model in FY2023 and 8.1% from Non-CPCU New user conversion Existing user repeat New/existing user (online) conversion (online) conversion (offline) Use Case – Targeted new user Use Case – Driving
Slide 7: Consumer intelligence driven end-to-end mobile tech platform
1 Consumer intelligence driven end-to-end mobile tech platform Data and quality focused mobile advertising platform-based solution Audience Data Quality Experience Publishers integrated over SSP/API¹ 1 Appographic data Commerce data Intent data Real-time Fraud checks Engaging Rich media, video & Pro
Slide 8: mDMP – Enabler of our CPCU Business
1 mDMP – Enabler of our CPCU Business Usage Affinity Intent Affinity Product Affinity Who will be the Who will be the What product will next user? next shopper? they buy? 3.0Bn+ 100+ 40+ Advanced Internal Connected Pre-Defined Interest AI / ML AffleID For Devices Segments Categories Models Each Devi
Slide 9: Technology and innovation powered growth
1 Technology and innovation powered growth Affle Platforms enabling an omni-channel connected ecosystem Asset light, automated and scalable platform Flexible and scalable Growth in Self learning & More ads connected Delivery of predictive delivered devices targeted ads algorithm reached Impact & Gro
Slide 10: Robust IP portfolio addressing data privacy issues, ad fraud and futuristic tech use cases
Robust IP portfolio addressing data privacy issues, ad fraud 2 and futuristic tech use cases Global Tech IP Portfolio Unified Consumer Total 21 Patents with 6 granted Tech Proposition in US and 15 other filed across jurisdictions 3.0bn1 Connected Devices Reached Award-winning Ad Fraud Detection Plat
Slide 11: Long term industry tailwinds remain well grounded
3 Long term industry tailwinds remain well grounded Strong Growth in Global Digital Digital Ad Spends as a % of Total India to witness strong structural growth Advertising (US$ bn) Advertising (In 2021) in digital advertising… …With similar expansion trend across emerging markets 82% 77% 42%-45% 785
Slide 12: CPCU monetization maximizes ROI for advertisers
CPCU monetization maximizes ROI for advertisers…Remains a 3 long-term structural growth driver New User Acquisition Getting Repeat Transactions Online and Offline Marketing # Global App Installs Ad Spend (US$ bn) Offline Retail Market in India (US$bn) Up-sell ✓ 233 132 Cross-sell ✓ 1,237 Increase fr
Slide 13: Leading position in India, operating in a market with substantial barriers to entry
Leading position in India, operating in a market with 4 substantial barriers to entry Strong track record in fast growing Indian market characterized by low prevailing CPCUs and other unique challenges Indian market – substantial barriers to entry Strategic advantage ✓ Familiarity with local demogra
Slide 14: Affle2.0 Strategy | Targeting high growth markets and industry segments
Affle2.0 Strategy | Targeting high growth markets and 5 industry segments Global business anchored in Emerging Markets Verticalized approach for leadership within fast growing (INDIA, SEA, LATAM & MEA) resilient industry segments across E, F, G, H Categories Category E Category F E-commerce EdTech F
Slide 15: Affle2.0 Strategy | Well-defined organic and inorganic growth plan
Affle2.0 Strategy | Well-defined organic and inorganic 5 growth plan Leveraging opportunities in India and International markets 4. Enhance revenue from existing & new customers and strategically invest in inventory & data cost to reach the next billion shoppers on connected devices 3. Expand the sc
Slide 16: Affle2.0 strategy guiding Company's vision and growth ahead
5 Affle2.0 strategy guiding Company’s vision and growth ahead Affle2.0 strategy powering growth across connected devices, anchored on vernacular / verticalization / ecosystem-level partnerships Strategic acquisitions & investments to complement the existing business¹ Self-serve programmatic platform
Slide 17: Strong track record of growth and profitability
6 Strong track record of growth and profitability Annual Performance Trend (Consolidated) Revenue CAGR 54.9% EBITDA CAGR 42.9% PAT CAGR 49.7% Y-o-Y Growth 32.6% 37.2% 33.8% 14,340 10,817 Particulars in Rs. million 5,168 1 3,338 1 2 2,494 2 2,930 2,453 1 2,135 1,303 1,834 703 488 888 655 1,031 FY2019
Slide 18: Cashflows Trend and Return Ratios
6 Cashflows Trend and Return Ratios (Consolidated) Operating Cash Flows* (Rs. mn) Return Ratios (As of March 31, 2023) OCF / Normalized PAT Ratio (Adjusted to normalize the unutilized portion of QIP Proceeds) 97.9% 109.7% 100.1% 112.3% 106.1% **ROE (%) 20.0% (Return on Equity) 2,603 2,060 **ROCE (%)
Slide 19: CPCU Business | Annual Performance Trend
6 CPCU Business | Annual Performance Trend # Converted Users (mn) Average CPCU (Rs.) CPCU Revenue (Rs. mn) FY2023 256.8 51.3 13,175 vs. FY2022 195.3 49.9 9,740 vs. FY2021 105.3 40.8 4,294 19
Slide 20: Strong traction driven by verticalized focus on high growth categories
Strong traction driven by verticalized focus on high growth 6 categories Direct Customers Growth Primarily Powered by E, F, G, H Revenue Contribution from E, F, G, H Categories1 Categories1 90%+ 90%+ 90%+ 1,893 3,486 8,009 10,675 74% 74% 74% 67% 57% FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 F
Slide 21: Affle2.0 Culture | Entrepreneurial & Committed Team and Robust Governance
Affle2.0 Culture I Entrepreneurial & Committed Team and 7 Robust Governance Key Management Team Non-Executive Board Members Anuj Khanna Sohum Eran Kariti Managing Director Chief Technology Officer (Appnext) Bijynath Sumit Mamak Chadha Chief Executive Officer Non-executive Chairperson Non-Executive &
Slide 22: Affle2.0 Culture | Tech & Thought Leadership
7 Affle2.0 Culture | Tech & Thought Leadership 22
Slide 23: Affle2.0 Culture | Inclusive ESG Initiatives
7 Affle2.0 Culture | Inclusive ESG Initiatives Ranked amongst the leading ESG responsible companies (IT/Tech category) by ESGrisk.ai in its Yearbook 2021 Our Guiding Values Proactive Adoption of ESG Reporting Outcomes 531 ESG Score 1 Innovation Innovation and Dedicated ESG 2 Agility Responsible Busi
Slide 24: Affle2.0 Culture | Inclusive ESG Initiatives
7 Affle2.0 Culture | Inclusive ESG Initiatives • As part of Affle2.0 culture, we initiated proactive adoption of ESG principles in 2021 • Dedicated Sustainability section with comprehensive ESG profile available on Affle’s website • Mapped with Global ESG reporting frameworks Mapped with Global ESG
Slide 25: Affle Consumer Platform Case Studies
Affle Consumer Platform Case Studies 1. TATA 1mg | Making Bharat healthier 2. Rei de Pitaco | Growing the fantasy sports gaming fanbase in Brazil 3. Alive by AIA | Growing the reach for financial services in Thailand 4. Tata Neu | Driving adoption for India’s super app Growing the reach of digital b
Slide 26: Tata 1mg | Making Bharat healthier
Tata 1mg | Making Bharat healthier About the Customer This Healthtech unicorn from the house of illustrious TATA Group, is an established player offering services like e-pharmacy, diagnostics, e-consultation and health content in India Objective To raise adoption of its services in India especially
Slide 27: Rei Do Pitaco | Growing the fantasy sports gaming fanbase in Brazil
Rei Do Pitaco | Growing the fantasy sports gaming fanbase in Brazil About the Customer Rei Do Pitaco (RDP) is Brazil’s leading daily fantasy sports gaming platform with rapidly growing popularity across LatAm markets Objective While the FIFA WC in 2022 helped create a significant high for this categ
Slide 28: Alive by AIA | Growing the reach for financial services in Thailand
Alive by AIA | Growing the reach for financial services in Thailand About the Customer AIA Group is the largest life insurer in Asia and a reputed public listed company. Its Alive super app is a popular app helping consumers to achieve their physical, mental and financial health goals Objective To g
Slide 29: Tata Neu | Driving adoption for India's super app
Tata Neu | Driving adoption for India’s super app About the Customer From the house of the illustrious Tata Group, Tata Neu is India’s super app that integrates the best of Tata Group’s consumer brands on one platform Objective To drive awareness, engagement and conversions with high intent users fo
Slide 30: Bank Jago | Digital banking for Indonesian millennials
Bank Jago | Growing the reach of digital banking essential services for Indonesian millennials About the Customer Bank Jago is a leading public listed bank in Indonesia (previously known as Bank Artos). It’s digital banking service Jago is growing financial inclusion in Indonesia by targeting young
Slide 31: TapNation | Driving global user growth for hyper casual games
TapNation | Driving global user growth and usage for its resilient and popular hyper casual games About the Customer TapNation is a French company and one of the leading hyper casual game publishers having 830Mn downloads for its various titles. It is focused on the most resilient and popular catego
Slide 32: McDonald's | Driving omnichannel business growth in Indonesia
McDonald’s | Driving omnichannel business growth in Indonesia About the Customer McDonald’s is the world’s largest restaurant chain by revenue. Indonesia is an important and a growing market where it has 200+ stores Objective McDonald’s wanted to grow it’s omnichannel business by boosting footfalls
Slide 33: ZEE5 | Addressing the growing appetite for online entertainment
ZEE5 | Addressing the growing appetite for online entertainment About the Customer ZEE5 is India’s leading OTT app and the largest curator for South-Asian content. It is part of the Zee Entertainment Group, a company listed in India Objective In an intensely competitive environment, ZEE5 is on a mis
Slide 34: Mr D | Growing online food delivery in Africa
Mr D | Growing the penetration of online food delivery in Africa About the Customer Mr D, part of Naspers Group, is a leading Foodtech app in South Africa specializing in restaurant-to-home delivery. The brand connects 8,000+ restaurants to their patrons across the country Objective To discover, eng
Slide 35: Spotify | Addressing online entertainment in India
Spotify| Addressing the growing appetite for online entertainment in India About the Customer Spotify is one of the leading global music and podcast app disrupting the audio entertainment category Objective Being late entrant to the already crowded audio OTT landscape in India, Spotify wanted to pos
Slide 36: Lotus Herbals | Driving FMCG business growth in India
Lotus Herbals| Driving FMCG business growth in India About the Customer Lotus Herbals is a leading brand of herbal and natural cosmetic products with 25+ years of market presence in India. It offers a robust range of over 500 Skincare, Haircare, Suncare, and Make-up products for the retail and profe
Slide 37: Tunaiku | Giving wings to millennial dreams in Indonesia
Tunaiku| Giving wings to millennial dreams in Indonesia About the Advertiser Tunaiku, is one of the biggest and earliest digital consumer lending/banking platform backed by Bank Amar (part of the Tolaram Group), a licensed bank in Indonesia. Standing at the forefront of financial inclusion agenda, T
Slide 38: Appendix
Appendix Shareholders Information and Financial Summary
Slide 39: Shareholders Information
Shareholders Information Shareholding Pattern (As on March 31, 2023) *Brokerages Covering Affle (Latest) Institutional ICICI Securities Spark Capital DAM Capital Total Shares Outstanding – 133,251,060 Research Desk Amsec Mirae Research Anand Rathi Promoters & Promoter 13.6% Group Goldman Sachs Ambit
Slide 40: Consolidated Financial Summary
Consolidated Financial Summary In Rs. million Q4 FY2023 Q4 FY2022 Y-o-Y Growth Q3 FY2023 Q-o-Q Growth FY2023 FY2022 Y-o-Y Growth Last year Q4 Revenue from Contracts with Customers 3,558 3,151 12.9% 3,761 (5.4%) 14,340 10,817 32.6% had a higher Inventory and Data Costs 2,163 1,996 8.4% 2,281 (5.2%) 8
Slide 41: Normalized PAT Working
Normalized PAT Working Calculation of Normalized 'Profit After Tax' In Rs. million Q4 FY2023 Q4 FY2022 Y-o-Y Growth Q3 FY2023 Q-o-Q Growth FY2023 FY2022 Y-o-Y Growth A. Profit After Tax (Net of non-controlling interest) 624 685 (8.9%) 690 (9.5%) 2,446 2,139 14.4% PAT 1. Other Income (Excl. liabiliti
Slide 42: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”) have been Certain statements contained in this Presentation are statements of the Company’s prepared by Affle (India) Limited (“Affle” or the “Company”) solely for information beliefs, plans and expectations about the futu
Slide 43: Contact Us
Contact Us Website www.affle.com Investor Relations Contact [email protected]