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Slide 1

Digital Globe Services Limited


Final Results to 30 June 2013
Leader in providing outsourced online customer acquisition services

September 2013
Slide 2
Presenters and Agenda
Presenters:
Jeff Cox Chief Executive Officer
Bruce Casely Chief Financial Officer
Agenda:
Introduction
Highlights
Financial Review
Business Development
Conclusion & Questions


Slide 3
Introduction Business overview
Provider of highly profitable online customer acquisition
solutions
Delivered via premier proprietary technology platform and
customer contact expertise
Deep and broadening customer relationships
Structural growth in online advertising market and growing trend
toward outsourcing
Profitable, cash generative, high growth
Progressive dividend policy subject to availability of distributable
reserves and funds required to finance future growth
Good progress executing against the growth strategy


Slide 4
Contact centres 400+ agents in 4 locations
pdfpad.com/flags/
PAKISTAN MEXICO
Mexico City
Outsourced
English/Spanish
Lahore
Owned
English/Spanish
Karachi
Owned
English
GRENADA
St. Georges
Outsourced
English
Slide 5
Market Structural growth drivers
Global Advertising
$ billions
Global Search Advertising
$ billions
Double digit growth in
underlying online
advertising markets


Outsourcing trend
more strongly favours
expert providers like
DGS


DGS occupies highest
growth components


DGS winning larger
allocations of client
advertising budgets
Source: Magna Global, Digital Media Forecasts, December 2012. CAGR 2012-2017
2012 2017
Digital Traditional
2012 2017
Search Display
Social Mobile
$98
$174
$45
$83
$480
$619
$98
$174
$41
$52
$16
$6
$6
$23
Mobile 23% CAGR
Search 13% CAGR
Social 29% CAGR
Display 5% CAGR
Digital 12% CAGR
Traditional 3% CAGR
Slide 6
Highlights Full year to 30 June 2013
Admission to AIM on 14 Feb raising $8m gross ($6m net of
costs)
Revenue up 28% to $25.5m in line with market expectation
Profit performance ahead of market expectation adjusted
EBITDA* up 32% to $4m
Growth of call centre and support staff by 35%
Launch of top three cable operators in Mexico
Geographic expansion including UK and Germany
Commercialisation of dgSMART platform
Corporate structure changes
* EBITDA adding back foreign exchange losses, extraordinary items and ESOP charge
Slide 7
$6.2
$9.3
$20.0
$25.5
FY 2010 FY 2011 FY 2012 FY 2013
revenue
($m)
$1.3
$1.5
$3.1
$4.0
FY 2010 FY 2011 FY 2012 FY 2013
ebitda*
($m)
$0.95
$1.63
H1
$1.7
$0.18
$3.39
FY 2010 FY 2011 FY 2012 FY 2013
dividends
($m)
H2
$1.69
Financial performance High growth high profit

+28%

+32%


+108%
* EBITDA adding back foreign exchange losses, extraordinary items and ESOP charge
YoY Growth FY13 v FY12
- - - - - -
Slide 8
Financials Dividends and cash


In June paid $1.4m dividend
Declaring a further $290k dividend to total $1.69m for H2 FY13
since going public to be paid in October
This totals 6.27 cents per share*
Cash balance of $4m at year end



*Based on 27,021,388 shares in issue, excluding ESOP shares which do not rank for dividend until post option exercise
Slide 9
Summary Financials P&L and Balance Sheet
$000 Audited Jun-12 Jun-13
Revenue 19,977 25,541
Cost of Revenue 12,914 15,758
Gross Profit 7,063 9,782
SG & A 4,037 6,560
EBITDA (Adjusted)* 3,049 4,025
Other expenses 164 501
Taxes** 1,064 5,091
Net Income/(loss) 1,798 (2,715)
$000 Audited Jun-12 Jun-13
Cash and Equivalents 453 4,004
Accounts Receivable, Net 2,637 3,982
Deferred Tax Asset - 220
Prepayments
Related party receivables
-
211
1,095
-
Total Current Assets 3,301 9,301
Plant Property and
Equipment 41 544
Goodwill 206 206
Intangible Assets - 775
Total Non Current Assets 247 1,525
Total Assets 3,548 10,826


Trade Payables 1,778 2,482
Related-party Payable 200 -
Factoring Advance 1,286 -
Deferred Tax Liability 43 64
Other Liabilities 64 982
Income tax (Cyprus) 48
Total Liabilities 3,370 3,576

Shareholders Equity 177 7,250
*EBITDA adding back foreign exchange losses, extraordinary items and ESOP charge

**IP was sold pre IPO to TRG resulting in a $4.8m tax charge. This was offset by Net
Operating Losses and a capital contribution by TRG for the same amount

Slide 10
Operational expansion Use of IPO proceeds
Investment in working capital

Expansion of call centre operations
$700k: New 330 seat state of the art call centre in Lahore,
capacity to end Dec 14 based on current forecasts

$350k: Additional build out of further call centre and tech
operational centre in Karachi

Paying down of facility
Retired $2.4m of factored bank debt

Recruitment and business development
Remainder of proceeds held to take advantage of market
opportunities


Slide 11
Growth Platform, geography and sector
Sector Addition

Alternative Energy

Home Automation


Geographic Expansion

DIRECTV Columbia

DISH Mexico


Core Platform

AT&T

CableOne

Windstream

Recent wins support strategic growth initiatives
Slide 12
Growth Strategy Three pillars
Core Platform
Geographic Expansion
Sector Addition
Add
Satellite
And Wireless
Add
Business
To Business
Add
Agency
Business
Optimise
In House
Spending
Canada
Latin America
France, Germany and United Kingdom
Other Europe
Australia and New Zealand
Middle East and Asia
Alternative
Energy
Insurance
Retail
Banking
Education
Home
Automation
Healthcare
Legal
Scale
Current
Clients
Geographic Expansion
Utilities
Slide 13
Growth Product and service development
New business of bespoke software development services
Licensing of dgSMART software and analytics platform

Bespoke software platform development for existing Fortune
500 customer base

Diversification and visibility of future revenue streams

Investment in resources to meet expansion and new lines of
business
Slide 14
Year Ahead Consistent focus
Grow core business
Accounts for most of growth in FY14

Launch Europe, expand Latin America
Expect revenues in H1 2014

Seek opportunistic acquisitions in Emerging Markets
Accelerate geographic or relevant sector growth

Invest in dgSMART to increase competitive advantage
Add bench strength and capacity

Slide 15
Summary & Outlook
Strong financial performance and growth

Continued execution on three pillar strategy

Expand new line of product development

Confident outlook

Slide 16
Appendices
Slide 17
DGS Management team
Bruce Casely
Chief Financial Officer
Jeff Cox
Chief Executive Officer
Founded DGS in 2008
VP Direct Channels, Charter
San Diego State University, BA


Jeff has over 20 years of experience in direct
marketing, including responsibilities for internet,
contact center, direct mail, and door to door
marketing. He has served as VP of Sales
Channels for Charter Communications and in
executive roles at Verizon Wireless and Airtouch
Cellular.
Joined DGS in 2012
Head of M&A, VION Food Group UK
Robert Gordon University BA; Member of the
Chartered Institute of Bankers in Scotland

Bruce has over 19 years of finance experience
with particular focus on strategic planning and
analysis, mergers and acquisitions, and corporate
finance. He has worked for Bank of Scotland,
Rothschild, Ernst & Young and Scottish &
Newcastle plc
Slide 18
Paid search Proprietary technology
Proprietary databases on the
performance characteristics of nearly
10 million search terms in over 6000
geographic locations developed over
five years
Proprietary algorithms that
determine the optimal price to pay for
advertising to ensure effective
advertising placement

+

Proprietary processes and tools for
managing specific client
requirements
Slide 19
Websites Expertise in design and integration
Own or manage over 26 properties
Systems integration with clients
enables real time service availability
and provisioning
Marketing integration with
customers enables use of branding
and trademarks
Pricing integration with clients
Optimised artwork and copy
designed to drive customer
conversion
Slide 20
Competitive position Performance leader
Industry has focused on revenue growth by bidding to win in
paid search auctions; DGS is not the largest provider when
measured in revenue terms
DGS has focused on profitability and customer quality by
developing data and algorithms; clients view DGS as the
performance and quality leader
DGS has built unique performance data and algorithms
through interactive market experience over time; financial
investment alone is insufficient to compete
DGS is both gaining market share and growing absolute
volume
Slide 21
Summary Financials Cash Flow
$ Audited
Jun-12 Jun-13
Cash flows from operating activities
Net (loss)/income 1,798,072 (2,714,623)
Depreciation and amortisation 20,465 203,627
Income tax expense - 47,779
Stock Options Plan charge - 470,565
Foreign currency translation - (816)
Adjustment to reconcile net income to net cash provided by operating activities:
Changes in assets and liabilities:
Accounts receivable (946,355) (1,345,113)
Related-party receivables (123,507) 211,427
Prepayments and other assets 6,376 (1,095,448)
Accounts payable 736,272 704,063
Related-party payables (79,675) (200,085)
Other liabilities (5,951) 918,240
Deferred tax - net 472,080 (198,304)
Net cash (used in)/provided by operating activities 1,877,777 (2,998,688)
Cash flows from investing activities
Purchases of intangible assets - (900,000)
Purchases of computer and office equipment (31,936) (581,603)
Net cash used in investing activities (31,936) (1,481,603)
Cash flows from financing activities
Repayment of loan from customer (1,250,000) -
(Repayments of)/advances on factoring arrangement 1,286,585 (1,286,592)
Gross proceeds from issue of new shares - 9,099,761
Extraordinary listing costs included within equity - (1,386,557)
Other capital contribution - 4,696,079
Dividend paid (1,630,411) (3,091,566)
Net cash provided by/(used in) financing activities (1,593,826) 8,031,125
Net increase in cash 252,015 3,550,834
Cash at the beginning of the period 200,762 452,777
Cash at the end of the period 452,777 4,003,611
Supplement disclosures of Cash Flow Information
Cash paid during the period for interest 150,728 483,586
Cash paid during the period for income tax 1,064,163 -
Slide 22
Share Information at 09/09/13
Share Price 223.5p
Market AIM
Ticker DGS.L
Market Cap. 66.31m
Ord. shares in issue 29.67m

Shareholder %
TRG 43.83
Jeffrey Cox 19.51
DGS Share Option Plan 8.92
Investec Asset Management 7.95
Henderson Global Investors 3.07
Digital Globe Services, Ltd
Crawford House
50 Cedar Avenue
Hamilton HM 11, Bermuda
www.dgsworld.com