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
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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
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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)
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Source: Google Trends, as of March 12th ,2012
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Babylon.com - Traffic and S&M Expenses ($Millions)
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Source: Google Trends, as of March 12th ,2012
Corporate Overview Mar. 2012
S&M Expenses
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(Millions)
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Babylon.com - Traffic, S&M Expenses and New Installations
Source: Google Trends, as of March 12th ,2012
Corporate Overview Mar. 2012
S&M Expenses New Installations
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Revenues ($Millions)
Babylon.com - Traffic, S&M Expenses, New Installations and
Source: Google Trends, as of March 12th ,2012
Corporate Overview Mar. 2012
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
Revenues = 18.7 (140% YoY)
EBITDA = 5.4 (238% YoY)
Q4 2011
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Revenues = 61.9 (95% YoY)
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
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Roadmap
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