Interims 2011AIM Admission The story so far

The Board

Simon Bird – Technical Director

Peter Simmonds – CEO & Finance Director

Skip Fidura – Client Services Director

Tink Taylor - Business Development Director

Company Summary

o B2B Digital Marketing products and serviceso Established 1999o 135 staffo 3500+ Clientso Winner - National Business Awards –Best Growth Strategyo Offices in Croydon, London Bridge, Manchester,

Northampton & Minsk

4

The Digital Journey

Conversion

Some of our Clients

Some of our Clients

Significant Achievements last 18 months

o AIM Admission announcedo Increased sales & software engineering teamso Grew client base significantlyo Implemented Microsoft Dynamics CRMo Implemented Sage 200o Implemented new IT infrastructureo Successfully launched dotCommerceo Successfully launched dotSEOo Acquired Netcalliduso Created SEO team in Belaruso Maintained the high energy entrepreneurial culture

Our people are key to the success

o Young team - average age is 26

o Highly empoweredo All staff become option

holderso Focus on goal alignment o We aim to hire the best

peopleo We aim to keep our good

people

Financial Highlights – 2009/10 Full Year

2010/11 Interims

o Revenues increased by 48% (From £2,785k to £4,123k) o Profits after tax increased by 48% (From £520k to £771k) o Up 56% excluding IFRS2 charge relating to options of £38k

o Strong growth in customer numbers

o An expansion of products and services o New Offices in Belarus & Scotland

o Earnings per share up 50%

5 Year Financial Summary

£m 12 Months to June 2010

12 Months to June 2009

Yr to 30 April 2008

Yr to 30 April 2007

Yr to 30 April 2006

Turnover 6.0 4.2 2.5 1.2 0.8

Admin Costs 4.6 3.3 1.7 0.9 0.5

PBT 1.4 0.9 0.75 0.3 0.3

PAT 1.14 0.77 0.57 0.23 0.23

Cash Flow Summary

Low dependence on largest clients

• Largest Client less than 5% of total revenue• Top 20 clients less than 15% of total revenue• Largest Debtor less than £40k• Client base spread across many sectors • 51% of dotMailer customers on direct debit with 14

payment terms

Google rankings drive enquiries

Keywords Google

email marketing 1

email marketing software 1

email marketing templates 1

email marketing services 1

bulk email marketing 1

email templates 6

email marketing campaign 1

email marketing company 1

email marketing solution 1

email marketing solutions 2

email marketing uk 1

email marketing service 1

email marketing agency 4

Google rankings

Keywords Google

ecommerce solutions 1

ecommerce solution 2

bespoke ecommerce 1

ecommerce business solutions 1

ecommerce web site solution 5

Google Rankings

Keywords Google

design agency 20

web design agency 14

website design agency 2

Google rankings

Keywords Google

seo agency 4

search engine optimisation agency 5

seo agency in london 1

seo agencies 3

website seo services 6

Google Rankings

Keywords Google

strategic search engine marketing 2

search engine marketing company 4

search engine marketing 5

internet marketing company 6

search engine marketing companies 6

search engine marketing firm 8

search engine marketing service 9

seo marketing 14

internet marketing 15

Focus on recurring revenues

o dotMailer monthly recurring revenue continues to grow strongly

o dotSEO/Netcallidus recurring revenue now increasing significantly

o dotCommerce recurring revenue starting to build

Interims - Impact of new products on growth

o New products showing good growtho Email marketing continues to perform stronglyo Managed service aids retentiono Search marketing boosted by Netcallidus acquisitiono Project revenues declining in absolute terms and as a percentage o Recurring revenues increasing as a percentage of total revenue

Further organic growth opportunities

o dotMailer V5 o Currently in Beta testing, full launch early 2011

- powerful new editor- intuitive new step process- powerful split testing

o dotSurvey o new product Beta launch in Q1 2011

o Saas version dotCommerceo target Beta late 2011

- features now built for “bespoke” version- powerful new editor in development

Further organic growth opportunities

o Open new partner distribution channels through development of connectors to CRM tools eg Microsoft Dynamics

o Appointment of International resellers

o Opening of further sales offices in UK and Internationalo Edinburgh office opened on Tuesday this week.

Acquisition Targets

The target sectors selected for potential acquisitions are: o SEOo Mobileo Word of Mouth Marketing …….. “Social”o Surveyso Analyticso Usability testingo Research

Acquisition Criteria

The “ideal” criteria agreed for acquisition targets are as follows: o High proportion of recurring revenues ideally minimum 40%

of totalo No more than 10% of revenue from one cliento Strong technology with ownership of IPo Not dependant on one (few) key person(s)o Client base closely matches the dotMailer/Group client

profiles o Turnover £1m plus or potential to be £1m plus inside two

yearso Total consideration ideally 3-7 PE ratio o Deferred consideration to ensure goal alignment to

dotDigital shareholders o Consideration LT 50% cash with the remainder payable in

shares

Acquisition of Netcallidus

o SEO has been our main focuso In depth discussions & negotiations with four targets o Compared each business against our criteriao In addition to financial criteria we wanted cultural fit & a

scalable infrastructureo Netcallidus ticked all those boxes

Netcallidus – financial overview of deal

Seeking goal alignmentEarnings enhancing v dotDigital shareholders Shared vision for growth

Deal structure 5 x PAT for y/e June 2010 = (5x£230k) £1.15m

(Cash £1m)Deferred consideration

4X PAT for y/e June 2011 less £1.15 paid so far3X PAT for y/e June 2012 less previous payments

Deferred consideration split 60% dotDigital Shares 40% cash

Our commitment to life as a plc

o Orderly Market - Continual matching of buyers with sellers of shares

o Executive directors shareholding - 49%o Acquisition concluded using blend paper & casho Commitment to first class corporate governance and

reporting procedureso Annual accounts produced to AIM standardo AIM admission process conducted smoothly o AIM Admission document published 14th march 2011

In conclusion

o High growth profitable business in attractive market sectors

o Cash generativeo Significant opportunities for organic & adjacent growtho Opportunities for international expansiono Opportunities for acquisitions & joint ventures

2011 will be a year of further investment for future growth: Investment in marketing

Investment in peopleInvestment in products