Sep 2019

TECHNOLOGY-DRIVEN

PERFORMANCE MARKETING

Our Business

o A leading performance marketing and online publishing company

o We attract paying users from multiple online channels and direct them to online businesses in return for performance based payment models

o Main source of revenue generated from a wide network of publishing assets

o Focused on gambling and personal finance

o Cash generative business, high margin activities, supporting a progressive dividend policy

$42.5MRevenues

$18.6MAdj EBITDA

3 CentsInterim Dividend

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H1 2019 Overview

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o Core focus on higher margin publishing activities

o First six months impacted by regulatory headwinds in key Swedish, German, UK and Swiss markets

o US gambling market continues to develop positively – recent registration of subsidiary, XLMedia US Limited, by the Pennsylvania Gaming Control Board

o Record performance from the Group’s personal finance division, now representing 14% of Group's revenue

o Announced the appointment of Stuart Simms as Chief Executive Officer on 29 July 2019, effective 2 October 2019, with Ory Weihs, remaining on the board as a Non-executive Director of the Company

Key Highlights

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o Despite strong rankings of key assets, regulatory headwinds highlighted above continue to create trading uncertainty for the group. These headwinds affecting trading in Q3.

o The combination of these regulatory headwinds and a slowdown in the Group’s acquisition activity this year means the Board is revising market guidance for the year ended 31 December 2019

o The Board now expects the Group to deliver revenues of circa US $80 million and adjusted EBITDA to be circa US $34 million, for the year ending 31 December 2019

Current Trading

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Gambling Regulatory Summary

Asia Pacific• The Asian Gambling market is not a current focus although we

are exploring opportunities in the region.• As part of its strategic focus the company is decreasing some

of its non-core activities in the region (as part of the sale of Webpals Mobile

United Kingdom

• Increased compliance demands on operators, including more

stringent age verification and Know-Your-Customer rules, continue to

slow down our conversion rate for new depositing customers

• As of April 2019, the UK online casino tax has increased from 15% to

21%

• XLM maintaining high rankings but market has experienced an impact

on ARPU

Germany

• German online casino market remains in a state of flux with

regulatory uncertainty around online casino activity

• Some clients continue to operate as usual while others have paused

all activity in the market.

Sweden

• Since 2019, new regulations have come effective requiring casino

operators in Sweden to apply for a license from the Swedish

Gambling Authority (“SGA”)

• This change was followed by the introduction of tough monitoring

and sanctioning by the SGA of licensed operators which has caused

uncertainty in the market

North America• May 2018 - US Supreme Court reversed 1992 federal law

prohibiting authorised sports betting• Various US States in the process of introducing legislation to

regulate the market including Pennsylvania, West Virginia and Rhode Island.

• XLMedia has just obtained an affiliate license in Pennsylvania

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Switzerland • A new gambling regulatory regime came into effect in

Switzerland in January 2019. • Under the new regime, licenses for online gambling are only

granted to a limited number of operators, mainly consisting of existing land-based casino operators.

• As a result, most of our customers have exited the market, negatively affecting the Group’s performance in the market.

Financial Results

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XLMedia in Numbers

$42.5M $28.8M $18.6M

$12.15M $43.1M 300+

160+ ~370 20+

H1-2019 Revenues

H1-19 Net profit

Tier 1 Publishing assets

H1-19 Gross profit

Cash

Staff

H1-19 Adjusted EBITDA

Customers

Operating across

and short-term

investments

Employees Countries

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Revenue Diversification

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Revenues diversification –

Users’ Geography

Revenues Diversification –

Products

Revenues per

Business Model

Revshare, 71%

CPI, 0%

CPA, 29%

Other, 0%

Scandinavia,

44%

North America,

22%

Other

Europe, 14%

United

Kingdom,

14%

Other Territories, 7.0%

Gambling, 86%

Personal

Finance,

14%

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Income Statement

*Earnings before interest, taxes, depreciation, amortization, impairment and excluding share based payments.

Item US$‘000 H1.2019 2018

Revenues 42,459 93,502

Cost of revenues 13,621 30,133

Gross profit 28,838 63,369

Operating expenses 14,514 26,684

Operating profit 14,324 36,685

Total adjusted EBITDA* 18,445 43,571

% Adjusted EBITDA 43% 47%

Finance expenses, net (529) (537)

Profit before taxes 13,795 36,148

Taxes on income 1,723 4,089

Income from continuing operations 12,072 32,059

Income (loss) from discontinued operations, net 79 (11,284)

Net income 12,151 20,775

Earnings per share from continuing operation 0.06 0.14

Cash Flow Statement

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US$‘000 H1.2019 2018

Operating Activities

Net income 12,151 20,775

Depreciation, amortisation and impairment 3,618 6,503

Cost of share-based payment 674 1,667

Loss from planned media activity reduction - 9,938

Changes in Working Capital 5,921 (1,215)

Taxes received (paid), net 891 (4,987)

Finance (income) expense and exchange

differences on cash552 (896)

Net cash provided by operating activities 23,807 31,785

H1.2019 2018

Financing Activities

Dividend paid to equity holders of the Company (8,226) (14,362)

Share capital issuance - 42,618

Acquisition of treasury shares (9,653) (468)

Acquisition of non-controlling interests - -

Repayment of Bank loan (2,750) (4,000)

Dividend paid to non-controlling interests (319) (1,285)

Exercise of options 117 976

Receipt of long-term loan from bank - 5,965

Repayment of lease liabilities (703) -

Net cash used in financing activities (21,534) 29,444

Cash and short term investments at the end of the period 43,078 47,623

Investing Activities

Purchase of property and equipment (111) (553)

Acquisition of domains, websites, technology (4,311) (55,516)

Financial investments, net 139 2,005

Net cash used in investing activities (4,283) (54,064)

Balance Sheet 30 June 2019

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30.6.19 31.12.18

Current liabilities

Current maturity of long-term bank loan 4,216 5,585

Lease liability 1,729 -

Trade payables 2,660 6,416

Other liabilities and accounts payable 17,436 16,107

Total current liabilities 26,041 28,108

Liabilities attributed to assets held for sale 3,431 -

Non-current liabilities

Lease liability 8,762 -

Long-term bank loan - 1,380

Deferred taxes 193 -

Other liabilities 146 248

Total non-current liabilities 9,101 1,628

Equity

Share premium 112,352 112,224

Capital reserves 778 145

Treasury shares (10,121) (468)

Retained earnings 58,167 54,623

Non-controlling interests 291 291

Total equity 161,477 166,815

Total equity and liabilities 200,050 196,551

US$‘000 30.6.19 31.12.18

Current assets:

Cash and short term investments 43,078 47,623

Trade receivables 9,410 16,112

Other accounts receivable 2,992 5,502

Total current assets 55,480 69,237

Assets held for sale 6,187 -

Non current assets

Long term investments 668 633

Property and equipment 10,891 1,296

Goodwill 23,652 23,652

Intangible assets 102,800 101,199

Other assets 372 534

Total non-current assets 138, 383 127,314

Total assets 200,050 196,551

Growth Strategy

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o Multiple headwinds across key European [regulated] gambling markets

o Leverage gambling expertise with focus on broadening the Groups market reach

o Accelerate activities in US gambling market – committed to $7M investment programme during 2019-21

o Continue to build portfolio and reputation in the Personal Finance sector across North America including adding offerings such as loans, insurance and more banking products

o Develop assets to capitalize on the U.S gambling market

Focus on Publishing Expertise

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o Personal finance business continues to grow and has increased its presence in the North American markets

o 14% of overall revenues now derived from this sector (FY 2018: 6%)

o Committed to expanding US operations – adding scale to grow our publishing assets

o Actively pursuing further growth opportunities

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Expand The Personal Finance Sector

US Gambling Opportunity

Our plan for the US gambling market

o XLMedia actively investing in building and developing a more comprehensive portfolio of publishing assets as part of the recently announced plan

o The group will still be looking for strategic acquisitions in the region but generally focused on building assets

o We are developing assets targeting both specific products (sports betting, casino, poker) and specific regions (states) as well as more general ones.

o XLMedia has committed to spend $7m over the course of 3 years mainly targeting the US gambling market

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Key Growth Initiatives

Pursuit of growth opportunities in North America to both build and develop a comprehensive portfolio of online assets targeting gambling & personal finance

NorthAmerica

Continue developing the Group’s core technology to retain competitive advantage

Technologyinvestment

Ongoing expansion of the Group’s publishing portfolio while using our media division as a supportive tool.

Focus on

Publishing

Seeking to acquire earnings accretive publishing assets, leveraging benefits of scale, technological edge & content creation abiliaties.

M&A

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o Proactive exit from low margin media activities to focus on higher margin publishing business, management focused on the long termtargets

o Short-term financial impact but the Board is confident these steps will deliver higher profit margins and a much higher quality of sustainable earnings in long term

o Seeking to create a broader base of assets in its core verticals of personal finance and gambling

o Ongoing investment in optimising existing assets and developing new assets organically while adopting an opportunist approach to M&A in key markets and verticals

o New Management led by Stuart Simms, bringing a wealth of experience in growth and scaling up of businesses

Summary & Outlook

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Any Questions?

Optimization Cycle

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XLM self-funded campaigns

Bid on ads

Quality content Asset optimisation Place Brands

Target

Send users

Gather dataBig Data

Proprietary

tracking, data and

analysis tools

Place Brands

Send users

Experienced Senior Leadership

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• Over 15 years' experience in the online

marketing industry

• Diverse background and expertise in

marketing strategy, operations and P&L

management, including heading the

888poker business from December 2011

to January 2014

• Entrepreneur with 15 years’ experience

in performance-based marketing

• Currently focused on business

development and strategy

• CEO of the company since inception

• Over 20 years’ experience in

publicly traded companies

• Serves as CFO (Israel) of the

company since its inception and

is responsible for financial

infrastructure

LIAT HELLMAN Acting CFO

ORY WEIHS

FOUNDER & GROUP CEOSHEILA KAGAN CEO (ISRAEL)

CHRIS BELL

NON-EXECUTIVE CHAIRMAN

• Former CEO of Ladbrokes between 2001

and 2010

• Has over 20 years’ experience in

the gambling sector

• Currently non-executive Director at Rank

Group plc and Spirit plc and a member of

the Responsible Gambling Strategy

board

MICHAL BADHAV GENERAL COUNSEL

• Over 20 years of global experience in senior

executive legal positions at public and

private technology companies

• Served as Deputy General Counsel

at Amdocs in the US and Israel and

as General Counsel at Risco Group

Disclaimer

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THIS PRESENTATION (THE “PRESENTATION ”) WHICH HAS BEEN PREPARED BY

XLMEDIA PLC. (THE “COMPANY) IS FOR INFORMATION PURPOSES ONLY AND DOES

NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE

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HEREIN NOR THE FACT OF ITS DISTRIBUTION SHALL FORM THE BASIS OF OR BE

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restriction may constitute a violation of relevant local securities laws.

The Presentation is issued solely to and directed at: (i) persons who have professional

experience in matters relating to investments falling within article 19(5) of the Financial

Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”( and are

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general restriction on the communication of invitations or inducements to enter into

investment activity and has therefore not been approved by an authorised person as

would otherwise be required by section 21 of the Financial Services and Markets Act 2000

)“FSMA”(. It is a condition of your receiving the Presentation Materials that you fall within,

and you warrant and undertake to the Company that:

1. you fall within one of the categories of persons described above;

2. you have read, agree to and will comply with the terms of this disclaimer;

3. you are not resident in, or a citizen of, a Prohibited Territory; and

4. you will not forward, reproduce or otherwise disclose the contents of this

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The Presentation should not be copied, distributed or passed on, directly or in directly,

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information available in relation to the matters described in it and accordingly no

reliance may be placed for any purpose whatsoever on the sufficiency or completeness

of such information and to do so could potentially expose you to a significant risk of

losing all of any investment made by you. No reliance should be placed on the

information and no representation or warranty (express or implied) is made by the

Company, any of its directors or employees or any other person, and, save in respect to

fraud, no liability whatsoever is accepted by any such person, in relation thereto.

The statements contained in this document, such as “may,” “will,” “should,” expect,”

“anticipate,” “estimate,” “intend,” “continue”, “aiming” and “believe” and other similar

expressions are forward-looking statements and not historical facts. Due to various

risks, uncertainties and assumptions, actual events or results or the actual performance

of the Company may differ materially from those reflected in or contemplated by such

forward-looking statements. Past performance, targeted performance and projected

performance are not reliable indicators of future results and there can be no assurance

that targeted or projected returns will be achieved. The value of any investment made

by an investor can go down as well as up and an investor may lose its entire investment.