TELENAV INVESTOR PRESENTATION August 2012 HP Jin, President and Chief Executive Officer Michael Strambi, Chief Financial Officer
Safe Harbor Statement During the course of today's presentation, we will make forward-looking statements about our business, including statements regarding, among others, the company s expected financial performance; expected profitability; product and business strategies; and strategic relationships. We wish to caution you that such statements are just predictions based on management's current expectations or beliefs, are subject to risks and uncertainties, and that actual events or results may differ materially. We refer you to documents that we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q where we discuss important risks in greater detail in Risk factors and elsewhere. You should review our SEC filings carefully and with the understanding that our actual future results may be materially different from what we expect. We assume no duty to confirm, update or revise the financial forecast for the year, or any other forward looking information in this call as a result of new developments or otherwise. Use of Non-GAAP Financial Measures Today we will be discussing our results on a GAAP as well as a non-gaap basis. These non-gaap results, also sometimes called pro forma results, exclude stock based compensation expense. We use these additional non- GAAP measures as we believe they give useful operating information in addition to the GAAP results. A reconciliation of GAAP to non-gaap financial statements is available in our earnings press release and on our investor relations webpage. 2
TELENAV: A GLOBAL LEADER IN PERSONALIZED NAVIGATION, LOCATION-BASED SERVICES (LBS) & MOBILE INTERNET Leader in mobile-phone-based navigation Rapid growth in auto navigation 34M+ subscribers: strong foundation for mobile local advertising and commerce Solid balance sheet: $200M cash, no debt 3
DELIVERING STRONG GROWTH IN STRATEGIC GROWTH AREAS AND MORE SCALE WITH DIVERSIFICATION $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 12% $13 $15 Strategic Growth & Intl Fiscal Years Ending June 30 ($Millions) $36 $95 FY09 Act FY10 Act FY11 Act FY12 Act FY13 Fcst % - Percent of total revenue 9% 17% 26% $57 50% Strategic Growth + International Revenue Growing 60%+ y/y 4
1 ST STRATEGIC GROWTH AREA: MOBILE LOCAL ADVERTISING NASCENT MARKET GROWING AT 40%+ CAGR, WITH HUGE POTENTIAL Projected US Mobile Local Advertising Market 1 US local advertising: $136 billion 2 Low penetration of mobile advertising relative to time users spend in mobile applications 1 BIA Kelsey 'US Mobile Ad Revenue Forecast' 2 KPCB, emarketer, IAB 5
TELENAV TARGETING MULTIPLE LOCAL ADVERTISING SEGMENTS THROUGH UNIQUE, DISRUPTIVE PRODUCTS Current Local Ad Spend $133 billion Local Mobile Opportunity Telenav Ad Units $12 $7 $10 All Other Online Outdoor $7B Virtual Billboard $78 Billion $9 $15 $18 $24 Radio TV Yellow Pages Newspaper $9B $24B Local Search Arrival Ads Geo Alerts Local Ad spend available for the potential shift to mobile $38 Direct Mail $38B Mcoupons Data Source: BIA Kelsey 2012 6
2 ND STRATEGIC GROWTH AREA: AUTOMOTIVE NAVIGATION HIGH GROWTH WITH BOTH EMBEDDED AND BROUGHT IN SOLUTION 70 M Units 60 50 40 30 20 10 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Data source: Strategy Analytics 2011 OEM Connected Portable Auto Nav (Brought-In) OEM Embedded Auto Nav (Built-In) Aftermarket Connected Portable Auto Nav (Brought-In) Aftermarket Embedded Auto Nav Lower cost, mobile connected solutions driving high adoption of auto navigation 7
TELENAV 3E: OUR STRATEGY OF DIFFERENTIATION verywhere Seamless 3-Screen User Experience: web, phone and cars Channels: carriers, app stores, auto OEMs, 3 rd party developers veryday Personalized navigation services that drive daily use verything Local Hyper-local marketing services to brick and mortar businesses More store traffic and more spending 8
EVERYWHERE, EVERYDAY-SCOUT Phone Scout for Phone Web Scout.me Scout helps you discover and drive Tells you where to go, how to get there, and what to do -- seamlessly Car Scout for Cars 9
EVERYTHING LOCAL: PROVEN MODEL AND PLATFORM BY LARGE NATIONAL LOCAL ADVERTISERS $$$ Scout Carrier Distribution App Store Distribution Partners Scout for Apps User + Usage Growth Other New Products Arrival Ads Virtual Billboards Location Growth Large Multi- Location Advertisers Direct Sales Force Daily Use Features Drive-To Campaigns Ad Networks Users Telenav Ad Platform Advertisers 10
NEW CHANNEL FOR USER GROWTH: SCOUT FOR APPS (HTML5) UBIQUITOUS SOLUTION FOR MOBILE APPS Superior user experience Voice-guided turn-by-turn navigation via simple browser interface within partner s apps Win-win business model Advertising revenue share or feeper-session with developer partners Strong early traction Avantar Yellow Pages, AroundMe, Life360, Wedvite Surpassed more than 1 million trips Potential exposure to 100s of millions of new users Drive-To Icon Yellow Pages Search Detail Page Scout for Apps Navigation Window 11
NEW AD PRODUCT LAUNCHED: MOBILE BILLBOARDS Dunkin Dunkin More mocha, more Mmm! Hyper Local Targeted Display Monetizing billions of minutes of user engagement Reaches Millions of Commuters Significant increase in impressions compared with Search *Example advertiser 12
GROWING PRESENCE IN AUTOMOTIVE NAVIGATION 13 Wins with Ford, Delphi, and Sony Brought-In auto nav using the mobile phone for connectivity, dynamic content Scout for Cars provides a seamless user experience from the mobile phone and web to the car 13
SOLID GROWTH ACHIEVED WITH 1ST KEY CUSTOMER: FORD 2012 Ford My Touch 11 Add l Models (NA & SA) 2013 Launch in EU & China 2011 Ford My Touch 4 Models (NA & SA) 2H12 Ford Applink 2009-TDI Program Launch $19.5 $17.7 $0.8 CY10 CY11 CY12YTD* CY13 CY14 *CY12 results through 6/30/2012 14
INVESTING FOR GROWTH MULTIPLE STRATEGIC OPPORTUNITIES Targeted Resource Allocation <50% 30%+ 20%+ M-Navigation/LBS US Market AT&T Sprint TMO USCC Verizon Other M-Internet Opportunities Auto Advertising/commerce Premium Services Enterprise LBS M-Navigation/LBS Global Market Telcel & NII Bell & Rogers China Mobile Vivo TMO-UK India Revenue FY12 74% 20% 6% 15
FINANCIAL OVERVIEW 16
Q4FY12 (JUNE) FINANCIAL HIGHLIGHTS NEAR TERM RESULTS REFLECT TRANSITION IN REVENUE MIX Revenue model evolving Total revenue = $54.8M, up 1% y/y Revenue from strategic growth areas = $12.7M or 24% of revenue, up 39% y/y International revenue = $3.5M or 6% of revenue, up 37% y/y Diversified revenue (inter. and strategic growth) = 30% of total revenue Balancing revenue concentration FY11 to FY12 Sprint: 42% 37% AT&T: 37% 36% Ford 6% 12% All other 15% 15% Telenav has delivered profitability and positive cash flow while diversifying its business for long-term, sustainable growth 17
STRATEGIC GROWTH AND DIVERSIFICATION Segment Q4FY12 Revenue% Runrate Revenue Annual $M Revenue Growth Rate* Est. 2015 Market Size** Long- Term Trend U.S. Carriers (Subscriptions and Bundles) 70% NM NM $0.2B International 6% $14 +37% $0.5B Autos 14% $25 +67% $2B+ Ads & Apps 4% $8 +139% $4B+ Enterprise 6% $14 +10% $1B+ *4QFY12 (June12) and 4QFY11 (June11) comparisons exclude one-time items ** 2011 Strategy Analytics and Company estimates 18
BALANCE SHEET SOLID CASH POSITION, NO DEBT $ in millions June 30, 2012 Cash, Cash Equivalents & Investments $200 Working Capital $205 Total Assets $265 Total Debt None Total Liabilities $48 Stockholder s Equity $217 19
FY1Q13 AND FY2013 OUTLOOK* FY2012A 1Q13E FY2013E Total Revenue $219M $44M - $46M $185M - $195M Revenue from Strategic Growth and International $57M $18M - $19M $90M - $100M Gross Margin 78% 71%-72% 69% - 70% GAAP net income $32M B/E to $1M B/E to $2M Non-GAAP net income $38M $1M - $2M $4M - $6M Non-GAAP net income per share $0.86 $0.02 - $0.04 $0.09 - $0.14 Adjusted EBITDA $60M $4M - $5M $10M - $20M *As of July 26, 2012 20
INVESTMENT HIGHLIGHTS Large, Growing Addressable Markets: Mobile local advertising, auto navigation, premium mobile navigation, and international Delivering Strategic Growth & Diversification: Strategic growth areas and international = 30% of Q4 FY12 revenue; forecast at 50%+ of revenue in FY13; 60%+ Y/Y growth rate Telenav Everywhere, Everyday, Everything Local: Solid strategy to grow our user base, usage, and monetize with hyper local focus Financial Strength: Strong balance sheet, $200M cash, with no debt, ability to be opportunistic in stock buyback 21