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Creating a Global Champion
J.P. Morgan European Tech Stars 2020 Conference
September 2020
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Geoff CookCEO The Meet Group /
General Manager Video
Marc SchachtelChief Operative Officer
(COO)
Deep industry know-how and vast experience in direct-to-customer, media
and digital businesses
Tim SchiffersChief Executive Officer
(CEO)
Henning RönnebergChief Financial Officer
(CFO)
As Group CEO Tim Schiffers is
responsible for ParshipMeet
Group’s overall strategic direction.
He oversees the brand, media and
marketing activities to ensure
growth across the portfolio of
brands.
Tim joined Parship as CEO in 2014
after having led several strategy and
optimization projects within the
Holtzbrinck Publishing Group. Prior
positions include CEO of adviqo AG,
Managing Director of Wunderman
and several national and
international leadership roles at
Bertelsmann.
Henning Rönneberg is responsible
for the central functions of the
group. In his role as Group CFO he
oversees finance (treasury,
controlling, accounting, tax),
investor relations and business
intelligence as well as human
resources, compliance and legal
affairs.
Henning joined Parship as CFO in
2008, being Managing Director
from 2012 onwards. Prior positions
include CFO of publicly listed
Pixelpark AG, CFO of Axel Springer’s
finance and services division, CFO of
Bertelsmann’s Bol.com and Head of
Business Development at Infineon
AG.
Group COO Marc Schachtel is
responsible for the group’s
technology and platform strategy.
For the matchmaking part of the
business, he oversees the product
strategy and drives the constant
optimization of customer success
and monetization.
Marc joined Parship as Director
Engineering in 2011, being CTO
from 2012 and Managing Director
from 2014 onwards.
Prior positions include Co-Founder
and CTO of VC-backed gaming
company Goodbeans and Senior
Consultant at BCG Platinion, BCG’s
IT-consulting branch.
Geoffrey Cook is CEO of The Meet
Group, overseeing the social dating
and entertainment portfolio of the
group. In addition, he is responsible
for ParshipMeet Group’s overall
video strategy including the vPaaS
business.
Geoff co-founded The Meet Group
in 2005 and has been its CEO ever
since, which was created out of
myYearBook. Previously he has
been the co-founder and CEO of
ResumeEdge and EssayEdge.
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ParshipMeet Group – combining two leading complementary online dating
businesses into new global champion
Leading international
mobile-first
matchmaking brands
and platforms
EUR 222m
H1 2020 LTM Revenue
EUR 56m
H1 2020 LTM adj. EBITDA
Leading global online
dating & social
entertainment platforms
EUR 229m
H1 2020 LTM Revenue1
EUR 39m
H1 2020 LTM adj. EBITDA1
EUR 451m
H1 2020 LTM Revenue1
EUR 95m
H1 2020 LTM adj. EBITDA1
Globally leading mobile-
first, social dating and
matchmaking brands
and platforms
1) LTM revenues and adjusted EBITDA per June 30, 2020. The Meet Group’s pro-forma adjusted EBITDA included in the above deducts 80% of the expenses for stock-based compensation from
The Meet Group’s management adjusted EBITDA. USD numbers converted at 1.12 for 2019, 1.14 for H1 2019 and 1.12 for H1 2020.
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Large and High Growth Markets
Monetizing
Strong Structural Growth Drivers
▪ Growth in numbers of singles from
changes in lifestyle and work
choices
▪ Increasing use of online
interaction and social
entertainment
▪ Increasing penetration, trust and
acceptance of meeting and
socializing online
▪ Technology increasing the
substance and meaning of online
connections
▪ Changes in customer behaviour
being accelerated by „new
normal“
Operating in highly attractive market segments with dynamic growth
prospects
Source: ParshipMeet Group estimate based on third party consulting firm report.
~ EUR 9bnGlobal online dating market TAM
EUR 2.3bnSubsegment: US & German online
dating & matchmaking TAM
>8% Online dating market growth
for US & Germany
>11% Social entertainment market
growth
Video Platform as a
Service business
(„vPaaS“)
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Our BrandsSocial Dating & Entertainment Matchmaking
MeetMe
The mobile version of
the bar or
coffeehouse where
everyone belongs
Tagged
Social Networking
and dating for the
African American
community
Growlr
The gay dating app to
meet men in your
neighborhood or
across the globe
Skout
Discover and meet
new friends across
the globe or down
the block
Lovoo
Leading European
and most
downloaded German-
speaking dating app
Parship
Parship is THE love
brand for long-term and
happy relationships in
DACH and Benelux
eharmony
The US-based
pioneer in creating
highly compatible
relationships
ElitePartner
The online dating
service for demanding
singles looking for an
inspiring relationship
Addressing all needs for meeting new people – from social dating and
entertainment to matchmaking and finding a meaningful relationship
Whatever people are looking for with us – we have the right service for them.
A long-term relationship with the right partner? Fun encounters in a relaxed, but at the same time safe
atmosphere? Live video and entertainment?
Our highly diversified range of apps offers something for everyone. That’s what make us uniquely special in
the online dating market.
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Uniquely covering the full spectrum of the online dating market –
newly formed group is the global #2 dating player
Source: ParshipMeet Group estimate.
Zoosk
Badoo Bumble
Christian Mingle eDarling
eharmony ElitePartner
EliteSingles
GROWLr
Hinge
Lovoo
MatchMeetic
MeetMe
Pairs
Parship
PoF
SilverSingle
Skout Tagged
Tinder
USER INTENTION
MARKET SEGMENT
OKCupid
Social Dating / Entertainment Classic Dating Matchmaking
Meeting Dating Relationship
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Highly diversified business model and revenue streams standing out in the
market
Note: Revenue split in percent of H1 2020 pro forma revenues of ParshipMeet Group. USD numbers converted at 1.12 for H1 2020.
Subscriptions Virtual Goods Advertising B2B vPaaS
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Live streaming dating – the future of online dating AND reality TV has
arrived, and we are leading
Live Streaming Dating: Reality TV 2.0 Components & Success Factors
Combined in one easy to
integrate SDK that any app
or website can add …
TechnologyTens of millions of dollars per year
in software improvements and new
features
Moderation500+ human moderators combine
with sophisticated AI
Audience1.2 mm broadcasters and 8.9 mm
viewers per month*
Talent Management30-person talent team recruit and
promote emerging talents
FormatsConstantly developing new formats
to engage the audience
MonetizationGifting to streamers based on
in-app purchases of coins
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Offices
ParshipMeet Group – one of a few global internet champions
headquartered in Germany
Note: Geographical split based on H1 2020 pro forma revenues ParshipMeet Group. USD numbers converted at 1.12 for H1 2020.
HQ
Hamburg (Group and Parship HQ)
New Hope (Meet HQ)
Los Angeles (eharmony)
Philadelphia (Meet)
Dresden (Lovoo)
Berlin (Lovoo)
London (eharmony)
Amsterdam (Parship)
US
50%of revenues
Germany
26%of revenues
Rest of World
24%of revenues
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We will now turn to the realization of synergies while staying focused on
growth
Cross-selling between brands Cooperation P7S1 Entertainment Technology & platforms
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Formation of ParshipMeet Group has created a leading global player in
online dating – to IPO in 2022
37 4460
82
117 124143
209
246
2012 2013 2014 2015 2016 2017 2018 2019 H1 2020
pro-forma*
Revenues ParshipMeet Group [EURm] Adj. EBITDA ParshipMeet Group [EURm]
Note: All enterprise values refer to acquisitions at the time. Aggregate merger consideration for The Meet Group at USD 497m (EUR 448m) based on EUR/USD exchange rate of 1.11
1) LTM revenues and adjusted EBITDA per June 30, 2020. The Meet Group’s pro-forma adjusted EBITDA included in the above deducts 80% of the expenses for stock-based
compensation from The Meet Group’s management adjusted EBITDA. USD numbers converted at 1.12 for 2019, 1.14 for H1 2019 and 1.12 for H1 2020.
-5 -2
9
18
28
3640
44
52
2012 2013 2014 2015 2016 2017 2018 2019 H1 2020
pro-forma*
2022
First Media-for-
Revenue Deal
with P7S1
Acquisition of
Parship by Oakley
Capital
Acquisition of
ElitePartner
Acquisition of
Parship by
NuCom Group
EV of EUR 300m
Participation of
General Atlantic
in NuCom Group
Acquisition of
eharmony
EV of USD 85m
Acquisition of
The Meet Group
USD 6.30 / share
Vision to IPO
ParshipMeet
Group
2012 2015 2016 2018 2020
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Appendix
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Parship Group
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2012…
After consolidating the DACH market and integrating eharmony, PG #1 in
matchmaking with market leading positions in Europe and North America
Revenues Parship Group [EURm]
2020+
adj. EBITDA Parship Group [EURm]
2013 2014 2015 2016 2017
Parship Optimization and Growth
“Parship Excellence”
ElitePartner
Acquisition and Integration
Innovation and
Growth
Sale Parship to Oakley Acquisition ElitePartner Sale to P7S1
2018 2019
eharmony
Acquisition and Integration
Acquisition eharmony
H1 20202012 2013 2015 2019
209
2014 20182016 2017
37 4460
82
117 124143
117
eHarmony Parship ElitePartner
20182014 20152012 2017
44
2013 2016 2019
18
H1 2020
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9
28
3640
31
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Based on their top-of-class awareness and relevance our three strong
brands are leading in online matchmaking internationally
No other brand can give you
more confidence to fulfill
your relationship goals
Trusted & dedicated confidant
Confidence: highest chance of success
and most efficient way to find your
partner
Largest pool of desirable singles
seeking a real relationship
Biggest and most experienced
matchmaker for finding a serious
long-term relationship
The passionate expert
High chances and the most efficient
way to find the perfect partner for a
long-lasting, happy relationship
The largest selection thanks to the
largest database
The dating service for discerning
clients, where not everybody
makes the cut
The cultured agent
Find the perfect partner with a similar
social standing and lifestyle for a
serious relationship
Best pre-selection through
manual profile inspection
Brand promise
Brand personality
Emotional Benefit
Functional Benefit
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Parship “Circle of Excellence” in Online Matchmaking Key Facts
▪ In the online matchmaking business the most
important asset is having and constantly
refilling the largest database of high-quality
singles.
▪ This large database is the key driver for the
attraction and – in the case of a subscription
model – conversion of new singles.
▪ The only way to obtain and grow such a high
quality database is to build up a brand
communicating this exact proposition.
▪ This can most effectively be achieved via use of
reach media, which in turn can only be afforded
based on excellent monetization capabilities
generating strong customer lifetime values.
▪ Today, Parship Group masters this cycle and
runs it in a highly profitable way.
Parship’s “Circle of Excellence” is the proven way of running online
matchmaking successfully, also forming the blueprint for eharmony growth
High media
pressure &
efficient
marketing
Optimized
conversion of
online (brand)
traffic
Largest database
of high quality
users
Best in class user
monetization
combined with
leads toas basis for
enables
Strong Brand
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The Meet Group
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The Meet Group has combined acquisitions with a proven history of
performance through innovation to claim a market leading position
Revenues The Meet Group [USDm Reported] adj. EBITDA The Meet Group [USDm Reported]
Launch of myYearbook -one
of the first social networks for
meeting new people
Acquisition Skout
2005 …
Go-live on
iPhone and Android
2010 2012 … 2016 2018
myYearbook
rebrands to
MeetMe
Mobile surpasses
90% of revenue
Acquisition Tagged Acquisition Lovoo Acquisition Growlr
Forms The Meet Group
Introduction of video
Platform as a Service
Business (vPaaS)
2011
Acqu. by ParshipGroup
First vPaaS Client
Live-streaming
surpasses 50%
of revenue
Launch of live-
streaming video
2017 2019 2020
2018
76
H1 20202014 2015 20172016 2019
4557
124
179
212
145
5
20
2932 32
42
29
H1 202020182014 2015 2016 2017 2019
Note: adjusted EBITDA of The Meet Group can be found in the appendix of this presentation
SkoutMeetMe Tagged Lovoo vPaaS Growlr
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The Meet Group‘s continuous focus on three key pillars drives a sustainable
advantage in the market
Build the most
engaging dating communities
in the world
(2.1 billion monthly chats)
Invest in new products and
services like live-streaming
video and AI to entice our
community to spend more time
(1.1 billion video minutes monthly)
Partner for and acquire new
audiences, including through
platform-as-a-service products
provides the
monetization
advantage to…
provides the
distribution
advantage to…
provides the user
acquisition
advantage to…
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Adjusted EBITDA definition of The Meet Group
Source: The Meet Group
in USD m FY 2019
Net Income (Loss) 11.332.497
Interest expense 1.301.348
Income tax expense 4.929.440
Depreciation and amortization expense 13.131.002
Stock-based compensation expense 11.107.152
Acquisition and restructuring 414.110
Loss on disposal of assets 0
Loss on foreign currency transactions 10.172
Adjusted EBITDA 42.225.722
The Meet Group (the “Company”) uses Adjusted EBITDA as a performance measure, which is a financial measure that either excludes or includes amounts that
are nor normally included or excluded in the most directly comparable measure calculated and presented in accordance with U.S. GAAP. The company defines
Adjusted EBITDA as income or loss from operations before interest expense, benefit from the provision for income taxes, depreciation and amortization expense,
stock-based compensation expense, non-recurring acquisition, restructuring or other expenses, gain or loss on foreign currency transactions, gain or loss on sale
or disposal of assets, bad debt expense outside the normal range and goodwill and long-lived asset impairment charges. The company excludes stock-based
compensation expense because it is non-cash in nature. The company believes Adjusted EBITDA is an important measure of its operating performance because
it allows management, investors and analysts to evaluate and assess its core operating results form period to period after removing the impact of acquisition
related costs, and other items of a non-operational nature that affect comparability. The company recognizes Adjusted EBITDA has inherent limitations because
of the excluded items.
The following table sets forth a reconciliation of the Meet Group’s Adjusted EBITDA to its U.S. GAAP net income for the year 2019: