Hibu GroupInvestor Presentation

15 May 2019

Disclaimer

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This presentation is for information purposes only and does not constitute a prospectus or any offer to sell or the solicitation of an offer to buy any security in the United States of America, the United Kingdom or in any other jurisdiction. Securities may not be offered, sold or transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933, as amended.

The information contained in this presentation does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2018 have been filed with the Registrar of Companies. The auditor has reported on those accounts and its report was unqualified and did not contain a statement under Section 498(2) or 498(3) of the Companies Act 2006. Statutory accounts for the year ended 31 March 2019 will be filed with the Registrar of Companies. The auditor has not yet reported on those accounts but is expected to do so prior to filing.

This presentation may include forward-looking statements within the meaning of the securities laws of certain applicable jurisdictions. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, among other things, our future financial conditions and performance, results of operations and liquidity, our strategy, plans, objectives, prospects, growth, goals and targets, future developments in the markets in which we participate or are seeking to participate, and anticipated regulatory changes in the industry in which we operate. These forward-looking statements can be identified by the use of forward-looking terminology, including, but not limited to, terms such as “aim”, “anticipate”, “assume”, “believe”, “continue”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intend”, “may”, “outlook”, “plan”, “predict”, “project”, “should”, “will” or “would” or, in each case, their negative, or other variations or comparable terminology.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and are based on numerous assumptions. Our actual financial condition, results of operations and cash flows, and the development of the industry in which we operate, may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements contained in this presentation. In addition, even if our financial condition, results of operations and cash flows, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. We undertake no obligation publicly to update or revise any forward-looking statements, except as may be required by law.

Agenda

• Hibu US

• Yell UK

• Group Financials

• Strategic Outlook

3

Hibu US

US FY19

5

Business commentary

• Continuing transition to a digital business, including P2D program and digital operating model

• Digital marketing services now 60% of revenues

• Modest digital revenue growth, although below budget

• Continuing shift to higher value customers taking multiple products

• Digital retention remains challenging

• US separate from UK and Group

Financial commentary• Digital marketing revenue in Q4 was $2.0m higher than the previous quarter benefiting from an

increase in search and display revenue. The full year finished $2.0m ahead of previous forecast, up 0.7% on the prior year.

• Print and digital directories revenues were flat versus Q3, and the full year finished $0.8m ahead of previous forecast.

• EBITDA in Q4 was $7.7m up on Q3 and the full year finished $8.1m ahead of previous forecast driven by $2.8m higher revenue and an additional $3.1m of indirect cost savings.

• Operating cash flow in Q4 was, as anticipated, $23.2m lower than Q3, due to the timing of annual payments, a number of which fall in Q4, and a strong collections performance in Q3. The full year finished $3.5m ahead previous forecast.

$30

$39

2019E 2023E

SMB DIFM Digital Marketing Services($ Billions)

US Market Overview

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Includes online advertising, display, search, social, video and email, website design services, reputation management services and listings management services. Source: Thrive Analytics SMB surveys; Hibu estimates

• $30bn ‘Do It For Me’ market growing at c. 7%

• Hibu is one of the largest service providers with 1% share

• Highly competitive and fragmented market dominated by small service providers

Digital Marketing Made Easy

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• 85% of SMBs prefer working with one marketing provider*

• Most businesses lack the time, knowledge and expertise needed to manage their digital marketing

• Hibu offers the ‘one stop shop’ to be successful at digital marketing

*Thrive Analytics Local Pulse Report, January 2017

Technology and Data Evolution

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Manual error prone and inefficient processes

Efficient AI assisted automated processes

Reactive approach with limited capability

Proactive approach with advanced tooling

High cost in-house hosting

Efficient, modern and leading cloud services

Processes

Cyber Security

Data and MI

Hosting

Customer Reporting

Tools

Legacy data warehouses, fragmented data

Modern Data Lake and Power BI tools

Email only – dashboard siloed by product

Email, text & comprehensive dashboard, Mobile app development

Internally developed with limited flexibility

Integrated CPQ Platform, New sales commissions & reporting platform

From To

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US FY20 Priorities

Priorities

• Optimize account management and service/fulfillment responsibilities as sales becomes predominately digital supporting stronger retention & increase (R&I)

• Drive customer acquisition to targeted segments generating higher AOV and lower churn

• Implement new sales tools and tech to further improve sales productivity

• Consolidate customer support roles and further automate customer onboarding and service functions for improved customer experience and back office efficiency

• Add adjacent products/services supporting existing product retention, higher margins & differentiation

Yell UK

Business commentary• Transition to fully digital business now complete; last print book delivered January

• Revenue challenges, especially in Q3 and Q4; operational actions already underway to address this

• Yell.com strengthened: underlying traffic stabilised at around 10 million monthly visits; partners adding additional c. 25m1 monthly usage; strong growth in reviews; messaging capability being rolled out

• Pension deficit at April 2018 covered by subsequent contributions, no further regular contributions required before the next valuation expected in 2021

• Operations and capital structure separate from US and Group

• Raised £225 million bond May 2018

Financial commentary• Digital revenue in Q4 was £3m lower than Q3 for a variety of reasons largely relating to the final

transition from print to digital. These include the roll-off of some Yell.com spend from customers transitioned a year earlier from print to digital; the loss of certain national digital customers with the end of print; the loss of some high revenue (but low margin) search campaigns; the short term impact of sales force reorganisation; and headcount being below target

• Digital EBITDA margins held up well at 34% with lower costs offsetting the revenue decline

• Trading operating cash flow in Q4 was £4m lower than Q3 due to the timing of payments

UK FY19

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1. Searches for businesses via Yell’s content syndication partners, where Yell data was used in the search results provided. Source: Syndicated partner stats, January to March 2019.

£2.6

£3.7

2018E 2022E

SME DIFM Digital Marketing Services(£ Billions)

UK Market Overview

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Source: ONS, PwC E&M outlook, PwC merchant survey, Management Information, PwC Analysis

• £2.6bn market growing at c. 8% (although management view is this may be softening)

• Yell is number one provider of managed digital marketing services with c. 7% share

• Fragmented market dominated by small service providers

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MeasurementTracking, Measuring & adapting via Y4B App

PresenceStrong & Synchronized

ConnectMaintain & Update your

business info

PerformanceDrive qualified traffic & re-marketing to existing

customers

ReputationManage reviews and

distribute dynamic relevant content

Digital Marketing Made Easy

• Businesses lack the time, knowledge and resources to manage their digital marketing

• Yell offers the ‘one stop shop’ to be successful at digital marketing

• Compelling market proposition – broad range, local service and leading technology

• Partnering with the leading providers in the industry

Yell.comConnecting Businesses & Consumers

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• Yell.com is more than an online directory• Omnichannel platform (Mobile, Web & App)• Voice search enabled• Messaging & booking with AI & Chat bots• Leading data & rich content• Over 2m reviews

• Total monthly usage has grown to 36m throughout FY19 through partner usage

• Usage partnerships with Apple & Bing driving growth

10.1 10.5 10.3 10.8

9.1

17.9

25.9

FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4

Average Monthly Usage (m)

Yell.com Core Traffic

Syndicated Partner Usage

Technology and Data Evolution

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Manual error prone and inefficient processes

Efficient AI assisted automated processes

Reactive approach with limited capability

Proactive approach with advanced tooling

Fragmented data and irregular MI reporting

Single version of truth for an Insight driven business

In house hosting creating cost and obsolescence

Efficient, modern and leading cloud services

Standard content on Business Listings

Rich content with Omnichannel experience

Siloed Tools with duplication and complexity

Simple Tools and Self-Serve Digital journeys

Processes

Cyber Security

Data and MI

Hosting

Yell.com

Tools

From To

UK FY20 Priorities

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• Continuing priority is to address revenue trend

• Organisational stability and improved execution are key: focusing on priorities; removing distractions; getting sales headcount up to strength; optimizing territory allocations and sales commission plans; sales training and performance management

• HQ cost reduction program initiated, reducing costs by up to £8 million annual run rate over course of year, to help protect profitability and ensure the business is “leaner and fitter”

• Opportunity to simplify and improve the customer journey, automate, and leverage scale advantage in technology and data

• UK CEO recruitment process well advanced

Priorities

Group Financials

Headline Trends

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Q1 Q2 Q3 Q4 Full YearFY19

Full YearFY18

$'m

US

Digital Marketing Revenue 70 70 69 71 281 279Growth 0.5% 0.5% -1.9% 3.6% 0.7% 5.2%

Directory Revenue 53 44 43 43 182 284Growth -29% -37% -36% -42% -36% -23%

EBITDA 32 25 23 31 111 151EBITDA Margin 26% 21% 21% 27% 24% 27%

Trading Operating cash flow 32 31 36 13 113 149

£'m

UKDigital Revenue 49 49 48 44 190 199Growth 0.5% -2.4% -4.9% -12.4% -4.9% 3.4%

Digital EBITDA 15 16 14 15 60 62Digital EBITDA Margin 32% 33% 29% 34% 32% 31%

Trading Operating cash flow 11 5 13 9 38 52

£'m

GroupEBITDA 37 33 29 36 135 177

Operating cash flow 21 27 37 13 99 131

Excess cash flow 12 15 32 (1) 57 120

Shareholder returns 26 - 37 14 77 119

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Capital Structure

• £225m public bond at 8.5% raised on UK business on 2nd May 2018

• Refinanced all existing debt (including equitization of £121m of PIK)

• c.390m new shares issued bringing total shares in issue to 1.5bn

• Cash returned to shareholders in FY19 £77m

• Continue to assess the most appropriate way of returning cash to investors; this quarter we propose to pay a dividend of $4.75m

HibuGroup

Hibu Inc.(US)

Yell Bondco

Owl Finance

Yell Limited

£225m bond

UK Restricted Group

Strategic Outlook

Strategic Outlook

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• Near leading position in growing, fragmented market1

• Anticipate publishing final directories in FY22

• Business operating well

• First major YP company to transition to fully digital

• Significant transition; addressing challenges

• Number 1 provider in growing, fragmented market1

• Yell.com a high usage and increasingly differentiated platform

US UK

• Opportunities to improve customer journey and to automate• Opportunities to leverage scale advantage in technology and data• Challenge is to out-compete the many small service providers and grow above market

1. Managed digital marketing services for SMEs