Milan Patel, CEO

Paraag Amin, CFO

February 2019

• A global business with a UK headquarters.

• Formed in 1999. Listed on AIM in 2006.

• Background in ecommerce.

• Acquired Comapi in 2017.

• Rebranded to Engagement Cloud in 2019.

Our mission: powering customer engagement across all touchpoints.

Trade associations Official partnerships

2

At the end of the period

we employed 333 people

in 14 office locations

around the world.

About dotdigital

115 113

60

40

Sa

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& M

ark

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IT &

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en

t

Clie

nt

Ser

vice

s

Oth

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Australia 10 people

UK - 266

USA25 people

South Africa4 people

Poland 9 people

Germany2 people

UK266 people

Belarus 17 people

3

Global reach

• Allianz Global Investors (Ger)

• Grandeur Peak (USA)

• Royce Funds (USA)

• Berenberg Asset Management (Ger)

• Directors 11.6%

• European institutions

• Liontrust Investment Holdings 18.8%

• Slater Investment Ltd 5.9%

• Highclere International 4.2%

• Simon Bird 3.9%

• JO Hambro 3.2%

• Franklin Templeton Fund Management 3.0%

• Jupiter Asset Management 2.7%

• Herald Investment Management 2.6%

About dotdigital

• Pie Funds (NZ)

• TDM (Aus)

• Microequities (Aus)

4

• Our strategy is delivering – product innovation, partnership

development and geographic expansion.

• Product Innovation – Comapi acquisition facilitated a shift

to an omnichannel offering.

• Strategic partnerships – Have expanded and deepened,

evidenced by the high-quality, data-led insights we provide

to drive meaningful returns for marketers.

• Geographic expansion – International sales (excluding

Comapi) represented 30% of total sales in H1 2019, up

from 25% in H1 2018.

About dotdigital33%

Up from £18.8m

5

• Strong profitable organic growth

• Paraag Amin

Strong, profitable organic growth

£24.9m

£7.1m

£16.6m*

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4

6

8

10

12

14

16

18

20

22

24

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1H 2009 1H 2010 1H 2011 1H 2012 1H 2013 1H 2014 1H 2015 1H 2016 1H 2017 1H 2018 1H 2019

Group Revenue

Adjusted EBITDA

Cash at Period End

RE

VE

NU

E in

£m

KEYGrowth trends continue for both

revenue and profit.

Financials

1200%Engagement Cloud Revenue growth

1100%Adjusted EBITDA growth

28%Engagement Cloud Revenue CAGR

27%Adjusted EBITDA CAGR

* Comapi acquisition in November-2017 was for a cash consideration of £10.7m

7

Financials

Top line revenue growth

Group revenues grew 33% to £24.9m in H1 2019

(H1 2018: £18.8m). ARPU increased 16% in H1 2019,

from £757 to £876.

Strong net cash position

£16.7m at 31 December 2018 (H1 2018: £10.5m) after

capital expenditure and product development of £2.8m.

Growth in international revenues

Revenue growth of 30% in the US region to $US4.3m;

80% in the APAC region to $AUS1.6m.

Increasing recurring revenueEngagement Cloud recurring revenue is now 90% of

total, of which 90% is contracted. Recurring revenue

from product functionality grew by 50% to £5.7m.

Adjusted Operating Profit

Increased 22% to £5.6m in H1 2019 (21.7% AOP margin);

growing from £4.6m in H1 2018.

Outlook

The Board is confident in current expectations

for the full year.

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Product innovation

Strategic partnerships

Geographic expansion

£2.9m, 19%

£3.8m, 22%

£5.7m, 28%

H1 2017 H1 2018 H1 2019

Strong Revenue Growth

Functional Recurring revenue

grew 50% to £5.7m in H1 2019.

It now makes up 28%

of Engagement Cloud revenue.

Engagement Cloud SMS volume

was up over 100% in the period

which remains a complimentary

channel to email.

Functional Recurring Revenue

(Engagement Cloud)

Financials

9

Connector revenues grow

• Revenues grew in both ecommerce (Magento and

Shopify) and CRM (Salesforce & MS Dynamics).

• Sales from customers using connectors to our

strategic partners’ solutions increased by 43% to

£10.3m (H1 2018: £7.2m).

Product innovation

Strategic partnerships

Geographic expansion

Global Premier Technology Partner

Gold Microsoft Partner

Verified Partner

Magento, 25%

Salesforce, 9%

Dynamics, 7%

Other partners, 1%

Non-integrated, 58%

H1 2018

Magento, 28%

Salesforce, 9%

Dynamics, 9%Other

partners, 5%

Non-integrated, 49%

H1 2019

Shopify Plus Technology Partner

Financials

10

Product innovation

Strategic partnerships

Geographic expansion

Revenue by Geography

• Engagement Cloud international revenue now

represents 30% of total, up from 25% in H1 2018.

• Organic international revenue was up 37% to £6.0m

(H1 2018: £4.4m).

• Engagement Cloud EMEA revenue grew c.10% despite

the introduction of GDPR in May, Brexit uncertainties

and reduced retail consumer spend.

• Revenue from the US region grew organically by

approx. 30% to $4.3m, (H1 2018: $3.3m) driven by

partners and integrators for Magento and Shopify.

• Both the direct to customer and the strategic partner

sales teams helped drive organic revenue in APAC; we

saw 80% growth to AUS$1.6m, (H1 2018: AUS$0.9m).

Revenue by Geography

(Engagement Cloud)

86%

12%

2%

83%

14%

3%

79%

16%

5%

EMEA US APAC

H1 2017 H1 2018 H1 2019

Financials

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Group revenue

• Group revenue grew 33% to £24.9m (H1 2018: £18.8m).

• Organic revenue grew 15% to £20.1m (H1 2018: £17.5m).

• Monthly ARPU up 16% to £876 (FY 2017: £757).

Engagement Cloud international revenue

• Now 30% of total (H1 2018: 25%).

Revenue from strategic partners

• Increased by 43% to £10.3m (H1 2018: £7.2m).

Cost of sales analysis

• Direct marketing increased to £1.3m (H1 2018: £1.1m).

• Partner commission £1.1m (H1 2018: £1.0m).

• Comapi contributed £3.4m in the period.

Key investment areas

• People (+28 people in last 6 months), Partnerships and Product.

Financials Profit & Loss

Statement

Dec 18£M

Dec 17£M

Growth%

Revenue 24.9 18.8 33%

Cost of sales (5.7) (3.1) 81%

Gross profit 19.2 15.6 23%

Admin expenses (13.6) (11.0) 23%

EBITDA 6.6 5.5 20%

Operating profit 4.9 4.3 13%

Exceptional Items* 0.6 0.2 179%

Adjusted EBITDA 7.1* 5.7# 25%

Adjusted operating profit 5.4* 4.6# 19%

Adjusted diluted EPS 1.63p 1.41p 16%

* Excludes exceptional costs of £0.6m in the period1) for the acquisition of Comapi (£0.18k: £0.13m amortisation of customer

relations and technology; and £0.05m acquisition costs of Comapi)2) share-based payments (£0.45k)

# Excludes exceptional costs of £0.2m in the period1) for the acquisition of Comapi (£0.2k)2) share-based payments (£0.03k) 12

• Healthy balance sheet.

• Zero debt.

• Bandwidth for strategic investments.

• Strong distributable reserves.

Financials

Balance sheet Dec 18£M

Dec 17£M

Non Current Assets 21.5 18.6

Other Current Assets 12.4 11.1

Cash 16.7 10.5

Total Assets 50.6 40.2

Non Current Liabilities 1.9 0.8

Current Liabilities 10.3 6.8

Total Liabilities 12.2 7.6

Net Assets 38.4 32.7

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• Strong cashflows generated from operations.

• Adjusted free cash flow of £1.7m.

• Healthy cash balance at the half year.

• c50% of monthly recurring value collected on

Direct Debits / credit cards.

Financials

Cash flow Dec 18£M

Dec 17£M

Net cash generated from

operations

4.5 2.6

Net cash used in investing

activities

2.8 11.6

Net cash used from

financing activities

0.0 0.9

Cash and cash equivalents

at beginning of period

15.0 20.4

Cash and cash equivalents

at end of period

16.7 10.5

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The customer engagement platform

for the serious marketer

COMPANYdotmailer

Comapidotdigital

PRODUCTdotmailer

ComapiEngagement Cloud

TERRITORY

Email Marketing

Marketing Automation

CPaaS

Customer Engagement

A reminder of what’s happening

16

17

CRMecommerce

Offline Webhooks

A.I. Automation Collaboration Personalization

Profiling Reporting Segmentation

Ads

Chat

Email

Mobile

SMS Social

Web

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Increase ROI at every stage of the ecommerce journey

Insight

Build rich profiles to

understand customers.

Data

Sync your customer, order,

and product data.

Retention

Increase LTV with post-

purchase campaigns.

Convert

Deliver a better

CX and increase ROI.

Engage

Talk to customers on

the channels they use.

Typical usage of Engagement Cloud Solution Areas

ecom Offline A.I. Profiling Segment SocialEmail Automation SMS AdsPersonalize ReportsWeb Chat ecom

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• Focus on developing our platform

driving organic growth

• High quality product improves

reputation and drives meaningful

long-term relationships with partners

• Key partner relationships help drive

international expansion in growing

markets

• Inorganic activity is selective and

supplemental

Our foundations

Focus on

cross-selling:

deeper customer

relationships

Expand our

product suite:

providing organic

growth Expand

geographical

coverage

Extend

omnichannel

capabilities

Deeper

functionality with

our core USP

Grow our

customer base

Increasing our

global; market

presence

Deepening our

strategic

partnerships

Building new

connectors

Globalising our

talent

Organisational

strength and

capabilities

20

• Very high costs

• Often underutilize platform

• Additional costs to service

• Lack personal service

• Require ecommerce integration

HIGH (price: >£30k/month)MID (price: £150-£30k/month)

Our platform wins against other providers in the market

• Functionality hits a wall

• Limited or no service/support

• Becomes expensive at high

volumes

• Lack of flow functionality

• Value vs. cost

• Ease of use is an issue

• Require better integrations

• Want more features included

• Require omnichannel

LOW (price: <£150/month)

21

22

Product innovation

Strategic partnerships

Geographic expansion

Future developments

Further integration of functionality into the

Engagement Cloud platform:

• More channels, e.g. Chat and Twitter DM.

• Further ecommerce and CRM integrations

• A.I. powered Product Recommendations

• A.I. powered digital advisors

• Enhanced analytics and reporting

• Omnichannel and automation

enhancementsActual slides from development planning

roadmap sessions

23

Product innovation

Strategic partnerships

Geographic expansion

Facebook Messenger

Twitter DM (beta)

Landing pages

Surveys & Forms

Web push (beta)

Triggered SMS

Broadcast SMS

Transactional SMS

Facebook audiences

Google Ad retargeting

Instagram Ad retargeting

App notifications

WhatsApp (beta)

RCS (beta)

Website chat

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Connectors

• Magento connector revenue (ecommerce) now

comprises 28% of total Engagement Cloud

revenue. We recently extended our Global Premier

Technology partner status agreement with

Magento for a further three years.

• Salesforce and Microsoft Dynamics revenue

(CRM) each comprise 9% of total Engagement

Cloud revenue.

• Revenue from the new connectors (Shopify, Big

Commerce and Shopware) grew 372% albeit from

a small base to £1m in the 6 months. The

company is seeing a strong pipeline building on

these connectors.

• dotdigital named as Big Commerce's first Global

Elite partner in Europe which will help with

increasing addressable market and endorsement

of the platform

Product innovation

Strategic partnerships

Geographic expansion

Verified Integration

Approved Tech Partner

European Elite Partner

Verified Integration

Gold Microsoft Partner

Shopify Plus Technology Partner

Verified Partner

Global Premier Technology Partner

25

Product innovation

Strategic partnerships

Geographic expansion

US revenue growth driven

by system integrators and

strategic partnersAPAC growth a result of strong

conversion of prospects to

customers and further relationships

with strategic partners10%

EMEA focus on the Nordics

region has resulted in stronger

partnerships and growing

revenue stream in the region

190%

30%

80%

US clients Nordic clients APAC clients

Engagement

Cloud

international

revenue is

now 30% of

total sales

26

higher LTV when

an omnichannel

approach is adopted

of in-store purchases are

influenced by digital

transactions

Average return for £1

spent on email

marketing

consumers shop on

more than one

channel

27

Outlook

Clear and compelling strategy

Highly scalable platform

Attractive industry growth

Successful dotdigital culture

Opportunities for superior

growth

Experienced management

team

29

Outlook

Confidence for the new fiscal year

• H1 2109 showed strong progress against

all strategic ambitions

• Rebrand and technology integration sets

tone for omnichannel product and

customers

• Board confident in expectations for the full

year

• Strong recurring revenues (90%)

Growth rationale

• Email remains highest ROI of all digital marketing

channels at a return of $40 for every $1 spent

• Omnichannel platform

• High margins and high levels of contracted

revenue

• Increasing international revenue growth

• Strong CAC to LTV ratio

30

Certain statements included or incorporated by reference within this presentation may constitute “forward-looking statements” in respect of the

Group’s operations, performance, prospects and/or financial condition.

By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ

materially from those expressed or implied by those statements. Accordingly, no assurance can be given that any particular expectation will be met

and reliance should not be placed on any forward-looking statement. Additionally, forward-looking statements regarding past trends or activities

should not be taken as a representation that such trends or activities will continue in the future. No responsibility or obligation is accepted to update

or revise any forward-looking statement resulting from new information, future events or otherwise. Nothing in this presentation should be construed

as a profit forecast.

This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other

securities in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or

commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares and other securities of the

Company. Past performance cannot be relied up on as a guide to future performance and persons needing advice should consult an independent

financial adviser.

Statements in this presentation reflect the knowledge and information available at the time of its preparation. Liability arising from anything in this

presentation shall be governed by English Law. Nothing in this presentation shall exclude any liability under applicable laws that cannot be excluded in

accordance with such laws.

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