Snakk Media AGM 2018 Meeting presentations

SNAKK MEDIA LIMITED
CHAIR'S ADDRESS AGM SEPTEMBER 2018
Following a period of re-structuring in FY17 and the first half of FY18 to
significantly reduce the cost base to a sustainable level whilst
maintaining sales and delivery capability, the focus has been to stabilise
the business and position it to maximise revenue.
At the same time the board and management have continued to
carefully manage the working capital and explore capital options.
Along with the difficult and challenging work to re-structure the business,
Joel has taken the opportunity to reinvigorate the leadership team in a
considered and measured way to strengthen direction over the sales,
product development, ad operations and finance functions. Following the
re-structure in FY17 and FY18 staff turnover - both voluntary and
involuntary - has been low in FY19.
The digital media and advertising sector is undergoing rapid and major
structural changes. Some of the consequences are changes in demand
for products, short markets, and revenue volatility.
Google and Facebook continue to have the dominant market share of
digital advertising. Google and Facebook offer digital ads that are
substitutes for the specialist mobile advertising products Snakk offers.
Snakk also faces strong global competitors in the precision GPS based
geo-location advertising sector that Snakk mainly participates in.
With the use of programmatic trading growing and transparency of digital
advertising, ad agencies are under increasing pressure to provide value
added services to their advertising customers and to maintain their
revenue and margins.
For those reasons, Snakk is diversifying the product range to continue to
offer competitive products to its ad agency customer base and to offer
those and other products to different customers.
One such example is to offer the Snakk Audience platform on a
programmatic self-service basis to the internal trading desks of agencies

and, potentially, to advertisers.
Snakk is also diversifying beyond the core GPS based geo-location in-
app advertising product that is offered on a managed and self-service
basis.
• A range of digital products suitable for mobile advertising are
being introduced such as performance products, enriched
audience reporting and video
• Data products and services. Consumer information based on
mobile device usage is a unique data source. Snakk is seeking to
exploit that unique source by marketing the data itself and on a
revenue share basis if customers use the data to activate digital
advertising campaigns
Despite the immense amount of effort to re-structure the business and to
develop and introduce new products the low working capital places
considerable pressure on the business including the ability to:
• Fully develop, source and introduce products in a timely manner
• Develop other channels, such as direct to brand
• Undertake marketing and promotional activity
And
• Requires the continuing attention of executive management and
the board and takes away from value adding activities
• Limits Snakk’s ability to absorb revenue volatility or to cope with
lower revenues whilst adjusting to changing customer demands
As you would be aware in June 2017, the NZX announced it was
commencing a formal consultation process to review the structure of
NZX’s current equity markets. Following the consultation process the
NZX has confirmed it intends to consolidate the NZX Main Board, NZAX
and the NXT Market into a single board. The NZX will be introducing
transition provisions but at this stage those provisions are not confirmed.
The latest information is the transition is to be complete by July 2019.
Our legal advisors Chapman Tripp commented in their “Trends and
Insights” report in February 2018 on the NZ Equity Capital Markets:

“We [Chapman Tripp] strongly support this approach, as the
NZAX and NXT Market have not delivered the expected
benefits to issuers, investors or New Zealand capital markets
in general.”
Snakk concurs with the intention of the NZX to consolidate the markets.
Like CT, in our view the NXT Market has failed to deliver the expected
benefits for small cap companies such as Snakk Media, whilst still
requiring Snakk to incur significant costs and management resources for
a company of our size to meet the regulatory requirements. Particularly
disappointing has been the lack of market visibility and liquidity. Even
small changes in parcels of shares has a marked impact on the share
price. The Board is considering all options to manage the transition.
In light of the business environment and the company’s operational
pressures, your directors have determined it is prudent to make a share
placement to provide additional working capital to the company. The
intent is to place up to 20% of the Company's issued capital.



END OF ADDRESS

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www.snakkmedia.com
2018 ANNUAL GENERAL MEETING
EXPERTS IN ENGAGING THE MOBILE CONSUMER
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING

Agenda
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING
•Opening Address. Peter James
•Business of the Meeting
•CEO Address. Joel Williams
2

OPENING ADDRESS
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING
Peter James
Independent Chair
3

THE RESOLUTIONS
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING
Peter James
Independent Chair
4

Resolution 1
“That Mr. Robert Antulov
be re-elected as a Director
of the Company”
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING5

Resolution 1
“That Mr. Robert Antulov
be re-elected as a Director
of the Company”
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING
VOTE PLEASE
6

Resolution 2
“That Mr. Brent King
be elected as a Director
of the Company”
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING7

Resolution 2
“That Mr. Brent King
be elected as a Director
of the Company”
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING
VOTE PLEASE
8

Resolution 3
“That the Board of Directors
of the Company be authorised to fix
the auditor’s (Staples Rodway)
remuneration for the forthcoming year”
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING9

Resolution 3
“That the Board of Directors
of the Company be authorised to fix
the auditor’s (Staples Rodway)
remuneration for the forthcoming year”
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING
VOTE PLEASE
10

CEO PRESENTATION
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING
Joel Williams
CEO
11

The Mobile Sector
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Australian Media and Advertising Sector Information
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING13
88%
MOBILE
PENETRATION
[1]
HOURS
EVERY DAY ON
MOBILE
4:16
[2]
IN-APP
TIME ON MOBILE vs
MWEB
80%
[3]
3.1bn
AD SPEND
ON MOBILE IN 2017
[4]
80+
UNLOCKS
EVERY DAY ON
AVERAGE
[5]
76%
OF TIME ON
DIGITAL SPENT
ON MOBILE
[6]

Mobile Advertising in Australia Continues to Grow
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING
Mobile advertising continues to grow, however, much of the growth goes to Google and
Facebook. Snakk’schallenge is to capture a higher share of the existing and future total market
14

High Penetration of Mobile Devices
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING15
Australia has a high proportion of iOS (iPhone) devices followed by Android. Snakkplaces ads on all types
At 88% mobile penetration, Australia has one of the highest penetration rates in the world

High Usage Rates
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Australians are highly dependent on their devices. 57% check their phone within 15 minutes of waking
Consumersspend over 4 hours a day on their phones. Those between 35-49 spend over 5 hours a day
HOURS PER DAY BY AGE

A High Proportion of Time is Spent “in-app”
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80% of browsing time is spent in-app
On average consumers use 36 apps per month, 11 per day

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Geo-Location Targeting

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Examples of Geo-Location Ad Campaigns
Targeting: Geo-fencing and targeting seen at 52 Martin
Place in real time and re-targeting in down time.
Frequency cap 7.
Example 1: Banner, ½ Page, Full-Page
Targeting: Real time location
targeting users that visit RSL’s
and Pubs in regional NSW;
skew Thu-Sun, noon-6am
Example 2: Video Campaign

Results and FY19 Focus
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FY18 Highlights
•Stabilisedthe business. Completed the re-structure that started in FY17,
significantly reducing the operating cost base without impacting delivery
•Significant turnaround of $2.9m reducing net loss to $0.27m
•First profitable half year in Snakk’shistory, $0.35m
•Maintained strong gross margins despite intense competition
•Achieved growth in Melbourne and Brisbane where Snakkinvested in local
resources
•Established an incentive based distribution model in New Zealand
•Grew the programmatic self-service revenue
•Incrementally enhanced the product range through the introduction of enhanced
reporting and enriching the audiences offered to brands via agencies with third
party consumer data (Helix personas)
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FY19 Focus (1 of 2)
•Renewed the executive team: recruited highly capable Chief Digital Officer,
Chief Commercial Officer, and Chief Finance Officer
•Each bring a deeper level of digital media expertise than previously available to Snakk
•Positioning Snakkas “Experts in Engaging the Mobile Consumer” thus broadening
beyond in-app geo-location based advertising, enabled via a sales team who are
experts in mobile advertising supported by specialist mobile products and a high
calibread operations team
•Actively expanding the product range to diversify beyond in-app geo-location
based audience media
•Offers the opportunity for revenue growth and diversification of revenue risk
•Attended DMEXCO –the largest digital media expo in the world to identify new technology
partners and products
•Introduced a ‘performance based’ product that complements Snakk’sgeo-location products
•Potential products include video and audio media in-app or non-app mobile sites, and utilising
geo-location and mobile usage audiences to run campaigns in other media platforms
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FY19 Focus (2 of 2)
•Developing a data led business stream underpinned by mobile device usage data:
•This is a unique data set that complements data held by data specialists such as census, credit
card and store loyalty data
•Revenue can be via sale of data or on a revenue share basis when data is used by the
customer to activate media sales
•Highly scalable business stream and reaches customers other than agencies
•Continuing to look for opportunities to embed self-service into agency and
advertisers’ internal trading desks
•Trading conditions have been challenging
•Working capital remains low
•Migration from NXT
•Continuing to consider all capital options
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Questions
www.snakkmedia.com
SNAKK MEDIA 2018 ANNUAL GENERAL MEETING24