brightcom group 74 7 · Sub: Presentation on nine months financials for FY20 ... Q1 FY2019 Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom

May 20, 2020.

The BSE Limited P. J. Towers, 25th Floor, Dalal Street, MUMBAI – 400001. Scrip Code: 532368

The National Stock Exchange of India Ltd. Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai-400051. Symbol: BCG

Dear Madam/Sir,

Sub: Presentation on nine months financials for FY20

We are enclosing a copy of the presentation on the analysis of Company financials for nine

months for the financial year 2019-20. And the same is proposed to be made available to the

investor and analyst community.

This presentation is also uploaded on the website of the company at www.brightcomgroup.com

under the investor's section.

We request you to take note of this and disseminate this presentation to the shareholder

community.

Thanking you.

Yours faithfully,

for BRIGHTCOM GROUP LIMITED

M. SURESH KUMAR REDDY

CHAIRMAN & MANAGING DIRECTOR

DIN: 00140515

74 7

brightcom groupHel: +91 (40) 67449910 EEAX +91 (22) 66459677

brightcom group limited (Formerly Lycos Internet Limited)

-FLOOR: 5, FAIRFIELD BY MARRIOTT, ROAD NO: 2, NANAKRAMGUDA, GACHIBOWLI, HYDERABAD - 500032, TELANGANA,INDIA.

EMAIL: [email protected] =WEB:WWW.BRIGHTCOMGROUP.COM CIN: L64203761999PLC030996

FINANCIALS OF FY2020 (FIRST THREE QUARTERS)

DisclaimerCertain Statements in this release reflecting our future growth prospects are forward – looking statements which involve a number of risks and uncertainties that could cause result to differ materially from those in such forward looking statements. The risks and uncertainties relating to these statements include but are not limited to risks and uncertainties with respect to fluctuation in earnings, our ability to manage growth, intense competition in online advertising including these factors which may affect our cost advantage, cost of resources and introduction of regulations that might impact the prospects, our ability to successfully complete the planned projects, general economic conditions affecting our industry. The company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the company.

Income StatementOperating Information Q1 FY2020 Q2 FY2020 Q3 FY2020

Digital/Advertising Revenue $66.61 $73.42 $105.2

Software Revenue $16.05 $16.08 $15.47

Other Revenue $0.04 -$0.35 -$0.09

Extra-ordinary Income/ Gains $0 $0 $1.71

Revenue $82.7 $89.15 $122.28

Growth Rate 2.36% 1.32% 3.5%

Digital/ Advertising COGS $27.34 $32.06 $54.9

Gross Profit $55.36 $57.09 $67.38

Gross Margin % of Digital Revenue 58.96% 56.34% 47.81%

SG&A $28.48 $29.33 $33.6

Extra-ordinary Expense / Write-down $3.66 $0 $0

Depreciation and Ammortization $5.14 $6.7 $7.11

EBIT $18.09 $21.06 $26.68

Ammortization $5.14 $6.7 $7.11

EBITA $23.22 $27.76 $33.79

Deprecitation $0 $0 $0

EBITDA $23.22 $27.76 $33.79

EBITDA Margin 28.08% 31.14% 27.63%

EBITDA Growth -5.41% 0.73% 6.14%

Adjustments $0 $0 $0

Adjusted EBITDA $2.32 $2.78 $3.38

Adj. EBITDA Margin 28.08% 31.14% 27.63%

Adj. EBITDA Growth -5.41% 0.73% 6.14%

Interest Expense $0.41 $0.22 $0.05

Other Expense/ (Income) $5.46 $6.14 $9.74

Pretax Income $17.66 $20.82 $26.62

Income Taxes $5.71 $5.83 $6.43

Tax Rate 32.31% 28.00% 24.14%

Net Income $11.01 $26.18 $24.59

Net Income Margin 13.31% 29.36% 20.11%

9 Months FY2020

$245.23

$47.6

-$0.41

$1.71

$294.13

2.51%

$114.29

$179.84

53.39%

$95.07

$3.66

$18.95

$65.82

$18.95

$84.77

$0

$84.77

28.82%

0.98%

$0

$84.77

28.82%

0.98%

$0.68

$21.34

$65.11

$17.96

27.59%

$61.77

21%

(Amounts in Millions of USD)

Balance Sheet

FY2020 Q2

Cash $15,242.59

Accounts Receivable $123,411.8

Short Term Loans & Advances $106,980.63

Other Current Assets $88,980.48

Total Current Assets $334,615.5

PP&E $3,586.86

Intangible Assets(Including Goodwill) $102,067.63

Capital Work-in-Progress $12,335.54

Intangible Assets Under Development $8,745.1

Non-Current Investements $33,312.97

Long Term Loans & Advances $26,073.02

Deferred Financing Fees $400.5

Other Non-Current Assets $4,108.78

Total Assets $525,245.9

Accounts Payable $12,143.49

Short Term Provisions $11,050.05

Other Current Liabilities $14,410.91

Total Current Liabilities $37,604.44

New RLOC

Existing Borrowings $5,095.56

Lycos Acquisition Payable $16,000

Total Long-Term Debt $21,095.56

Long Term Provisions $454.93

Deferred Tax Liabalities $1,303.51

Other Long Term Liabilities $2,990.32

Total Liabilities $4,748.76

Stockholders Equity $461,797.13

Total Liabilities and Stockholders Equity $525,245.9

ASSETS

LIABILITIES

(Amounts in Thousands of USD)

QUARTERLY REVENUE BRIDGE ( FY19 - FY20)

$81,000

$82,000

$83,000

$84,000

Q1 FY2019 Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom India Q1 FY2020

$521

$500

$955

$85

$168$158

$650

$431

$82,660

$81,235$88,000

$89,000

$90,000

$91,000


$600$402

$96

$540

$35$76

$239

$189$89,504

$88,527

$115,000

$117,000

$119,000

$121,000

$123,000


$826$898$195

$1,630

$115$166$342

$292$120,668

$117,856

$280,000

$284,000

$288,000

$292,000

$296,000

$300,000

Q1 - Q3 FY2019 Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom India Q1-Q3 FY2020

$1,947$2,255$375

$1,670$317$399$1,231

$912

$292,831

$287,618

Revenue Growth Analysis

Between Q1 FY19 - Q1 FY20 Between Q2 FY19 - Q2 FY20

Between Q3 FY19 - Q3 FY20 Between 9 months FY19 - 9 months FY20

The revenue growth from each quarter is compared between FY19 to FY20 by subsidiary. The top two growth contributors have been Dream Ad group and OMS. OMS had a de-growth in quarter one but quickly made it up in quarter three to come out in top two.

(Amounts in Thousands of USD)

Revenue Contribution Analysis

Revenue Contribution by Subsidiary (Q1 FY20)

0%

20%

40%

60%

80%

100%

0%

8%

16%

24%

32%

40%

Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom India

Revenue Contribution EBITDA Margin

3%

33.85%

44.1%

29.09%34.66%

70.21%

60.77%56.54%

20%15%

3%

36%

3%4%

12%

7%

56.54%60.77%

70.21%

34.66%29.09%

44.1%

33.85%

3%


0%

20%

40%

60%

80%

100%

0%

8%

16%

24%

32%

40%



3.23%

35.65%

46%

29.57%33.26%

56.6%54.56%

46.97%

19%15%

3%

39%

3%4%

11%7%

46.97%

54.56% 56.6%

33.26%29.57%

46%

35.65%

3.23%


0%

20%

40%

60%

80%

100%

0%

8%

16%

24%

32%

40%



15.81%

30.73%

39.82%

26.24%32.42%

39.4%

32.14%33.64%

13%16%

3%

42%

3%4%

11%8%

33.64% 32.14%

39.4%

32.42%26.24%

39.82%

30.73%

15.81%

Revenue Contribution by Subsidiary (Q1-Q3 FY20)

0%

20%

40%

60%

80%

100%

0%

8%

16%

24%

32%

40%



6.68%

33.04%

42.89%

27.98%33.29%

52.9%47.47%

43.75%

17%15%

3%

39%

3%4%

11%7%

43.75%47.47%

52.9%

33.29%27.98%

42.89%

33.04%

6.68%

The largest contributor, thus far, to the consolidated revenue during FY20 is OMS. The contribution varies between 36-42%. At the nine month level it’s at 39%.

REVENUE CONTRIBUTION BY SUBSIDIARY

Revenue Breakdown by Subsidiary (Q2 FY 2020):

Brightcom India18.61%

Dream Ad Group14.67%

YDL Brasil3.00%

OMS38.74%

Max Interactive3.11%

Intl Expresions4.09%

Frontier Data10.57%

Dyomo Corp7.22%




YDL Brasil2.89%

OMS35.55%



Frontier Data11.74%

Dyomo Corp7.01%



Dream Ad Group16%

YDL Brasil3%

OMS42%

Max Interactive3%


Frontier Data11%

Dyomo Corp8%

Revenue Breakdown by Subsidiary (Nine-month FY 2020):



YDL Brasil2.99%

OMS39.10%



Frontier Data10.92%

Dyomo Corp7.40%

Gross Margin Analysis

GROSS PROFIT, MARGIN, AND COGS BREAKDOWN (FY20 Q1-FY20 Q3)

$0

$60

$120

$180

$240

$300

Q1 Q2 Q3

$50.3$41.36$39.27

$17.08$15.7$16.09

Gross Profit (Software) Gross Profit (Digital)

58.96%56.34%

47.81%

Gross Margin % of Digital Revenue

$0

$60

$120

$180

$240

$300

Q1 - Q3

$130.93

$48.9

53.39%

$55.36 $57.09$67.38

$179.83

Gross Profit

70% 70%

0% 0%

We did see a dip in the gross profit margin of digital revenues in the 3rd quarter. We can attribute that to higher demand and lower supply of media due to the holiday season. However, the overall GP margin at the nine-month level is about 53.39%, which is in line with historic numbers.


SG&A Analysis

SG&A COSTS & % OF REVENUE, (FY20 Q1-FY20 Q3)

0%

10%

20%

30%

40%

50%

$0

$20

$40

$60

$80

$100

Q1 Q2 Q3

Total SG&A % of Revenue

22.74%

32.89%34.43%

$33.6$29.33$28.48

34.43%32.89%

22.74%

0%

10%

20%

30%

40%

50%

$0

$20

$40

$60

$80

$100

Q1 - Q3

32.32%

$95.07

32.32%

SG&A costs tend to grow at slower rate than the revenue growth after a certain threshold. You can witness that in the Q3FY20 at 22.74%. The nine-month percentage at 32.32% lines up with the historic expectations.


QUARTERLY EBITDA BRIDGE ( FY19 - FY20)

Between Q1 FY19 - Q1 FY20

$21

$23

$25

$27

Q1 FY19 Revenue COGS SG&A Extraordinary expense Q1 FY20

$3.66

$0.02 $0.45

$1.9

$23.22

$24.55

Between Q2 FY19 - Q2 FY20

Between Q3 FY19 - Q3 FY20 Between 9 months FY19 - 9 months FY20

EBITDA Bridge

$25

$26.33

$27.67

$29


$1.02

$0.06

$1.16

$27.76$27.56

$30

$32.33

$34.67

$37


$0.77

$1.41

$4.14

$33.79

$31.83

$78

$82.67

$87.33

$92

FY19 Q1-Q3 EBITDA Revenue COGS SG&A Extraordinary expense FY20 Q1-Q3 EBITDA

$3.66

$0.26

$2.44

$7.2

$84.77$83.95

EBITDA bridge between FY19 and FY20 levels is measured by Revenue growth, media costs, SG&A costs and extraordinary expense. One can see a slight increase in the consolidated nine-month EBIDTA from FY19 to FY20, from $83.95 million to $84.77 million.


$0

$0

Documents

brightcom group 74 7 · Sub: Presentation on nine months financials for FY20 ... Q1 FY2019 Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom