Babylon Presentation

8/2/2019 Babylon Presentation

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Corporate Presentation

March 2012


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Any forecast and/or forecasting statement, included in this presentation, is based on theManagement's assessment at its discretion. However, these forecasts and/or statements are based

on the Company's expectations at the time of this Presentation and do hold in store a number of

uncertainties and risk to consider.

It is important to emphasize that actual results may differ substantially from expectations in these

forecasts and/ or forecasting statements, resulting from various factors. The Company does notmake any representations regarding the accuracy and achievement of the forecasts and/or

forecasting statements.

In addition, forecasts and/or forecasting statements relate to the date of this Presentation only and

the Company is not under any obligation to update or correct any of the forecasts and/or

forecasting statements to reflect events or circumstances after the date of this Presentation.

Corporate Overview Mar. 2012 2


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Company

International internet company

Tel Aviv Stock Exchange (TASE) BBYL

Leading Translation & Language tools provider

$61.9 million revenues FY2011 (95% increase YoY)

$21.9 million revenues Q4/11 (140% increase YoY)

$9.2 million dividend FY2011

www.babylon.com

Top 50 websites worldwide

50 million unique visitors a day

Babylon Software

150 million registered users

1 million downloads a day

Business Card

3Corporate Overview Mar. 2012


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Bridging the Language Gap



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The Language Gap

Only 27% of Internet usersare native English speakers

57% of Internetcontent is in English

YET

Source: w3techs.com, as of October, 2011Source: internetworldstats.com as of March, 2011



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Milestones

Established in

Israel

Free Dictionary

Software

B2B and B2C,

SW SubscriptionBusiness Model

Premium Content

(world leading

publishers)

Translation

Software

IPO TASE

Change in Control E-Learning

Solutions

English Writing

Solutions

Professional

Translation services

Mobile Solutions

Guinness World

Record

Translation Toolbar

Distribution

Search

Business Model

6

20102008

2.2007

11.20072005 2009 2011

20032001

1997

Corporate Overview Mar. 2012


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Babylon in Numbers

150 Milliondesktop installations

100 Million translation requests a day

50 Million unique visitors a day

35 Million search queries a day

18 Milliondefinition terms

1 Milliondaily installations

231 markets and75languages



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Babylon Business Model



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Corporate SalesSearch

Premium Service

How Does Babylon Monetize its Users?

E-Commerce Telesales

Free Service



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How Does Search Work?

Organic Results Sponsored Links$$$



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Brazil U.S

U.S

India France

Mexico

Germany

Italy Spain

Babylon Growth in Different Geographies

Source: Google Trends, as of March 12th ,2011



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Babylon.com - Traffic (Millions)

12




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Babylon.com - Traffic and S&M Expenses ($Millions)

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S&M Expenses


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(Millions)

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Babylon.com - Traffic, S&M Expenses and New Installations



S&M Expenses New Installations


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Revenues ($Millions)

Babylon.com - Traffic, S&M Expenses, New Installations and



S&M Expenses New Installations Revenues


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Ranked at the Top 50 Websites Worldwide

Source: Alexa.com, as of March 12th , 2012

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Daily Traffic Rank Trendbabylon.com Traffic Rank Change



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Financial Highlights ($Millions)

Revenues = 61.9 (95% YoY)

EBITDA = 9.8 (56% YoDebt

FY2011


EBITDA = 5.4 (238% YoY)

Q4 2011

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Profit Before Tax = 9.2 (56% YoY)

No Debt

Revenues = 21.9 (140% QoQ)

Profit Before Tax = 5.2 (247% QoQ)



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$6.1M

Revenues and Profit Before Tax ($Million)

7.2

16.9

47.4

5.5

5.6

5.1

3.3

6.3

5.9

6.6

3

3.5

3.4

5.9

9.2

3

4

5

6

7

8

9

10

0

10

20

30

40

50

60

70

2009 2010 2011

Advertisement Online Sales Telesales Corporate Sales Profit



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2009

Income Statement Summary ($Millions)

Revenues 22.6 31.8 61.9 95%

Cost of Goods 2.4 2.3 2.4

Gross Profit 20.2 29.4 59.5 102%

R&D 2.4 3.8 4.9

S&M 12.1 17.2 41.7G&A 1.6 2.2 3.1

ESOP 0.6 0.5 0.8

Operating Profit 3.5 5.7 9 58%

Finance 0.1 0.1 0.2

Profit Before Tax 3.4 5.9 9.2 56%

Tax 1.5 1.1 1.8

Net Profit 4.9 4.8 7.4 54%

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2010 2011 YoY



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$6.1M

Revenues and Profit Before Tax ($Million)

5.5 5.4

10.912.5

18.7

1.2 1.5

1.2

1.2

1.2

1.4 1.5

1.4

1.5

1.6

1 0.8

1.3

0.9

0.4

1.51.4 1.3

1.4

5.2

0

1

2

3

4

5

6

0

5

10

15

20

25

Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011

Advertisement Online Sales Telesales Corporate Sales Profit



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Revenues 9.1 9.2 14.8 16 21.9 140%

Cost of Goods 0.5 0.6 0.5 0.6 0.7

Gross Profit 8.7 8.6 14.3 15.4 21.2 144%

R&D 1.2 1 1.1 1.2 1.6

S&M 5.1 5.6 11.5 11.9 12.7G&A 0.8 0.5 0.4 0.7 1.5

ESOP 0.1 0.1 0.2 0.3 0.2

Operating Profit 1.4 1.4 1.1 1.4 5.2 271%

Finance 0.1 - 0.2 - -

Profit Before Tax 1.5 1.4 1.3 1.4 5.2 247%

Tax 0.3 0.2 0.3 0.5 0.8

Net Profit 1.3 1.2 1 0.9 4.4 238%

Q4/10

Income Statement Summary ($Millions)

Q4/11Q1/11 Q2/11 Q3/11 Q4/11 QoQ



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. .

..

Develop newdistribution

channels and

partners

Platform diversification.i.e. mobile, smartphones

and tablets.

Additional

monetizationsources

Diversify product

offering

.i.e. Games, Videos

22

Roadmap



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Documents

Babylon Presentation