Investor Presentation

March 2011

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Contents

Section Page

Digital Performance Group Overview 4

Industry Growth 5

DPG Transformation 6

Management & Board 7

Business Unit Information dgm & Empowered Revenue Model 9

dgm & Empowered Customers 10

Empowered Communications 11

Deal Group Media (dgm) 13

Vowcha.com.au 15

Financial Information Financial Statements 18

Listed Proxies 20

Conclusion Review of Key Initiatives 22

Summary 23

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Digital Performance Group(ASX: DIG)

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Overview

Digital Performance Group operates online businesses that sell targeted and measureable online advertising

Performance based digital marketing is a form of direct response advertising:

• Advertisers pay for a ‘result’

Methods of pricing to deliver a ‘result’ include:• Pay per click (e.g. clicking on an advertisement)• Pay per sale (e.g. purchasing a product) • Pay per action (e.g. signing up for membership)• Pay per lead (e.g. in store inquiry)• Search engine marketing (e.g. Google adwords)• Search engine optimisation

The ‘result’ is delivered through a variety of channels such as website banners, emails, affiliated publishers and search engine marketing via Google, Yahoo and Bing

Sells advertising

Via 3 business units

Through multiple online 

channels

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Online advertising continues to grow faster than other advertising mediums in Australia

Continued to grow throughout GFC

Total online advertising as at December 2010 - $2.3 billion*

Internet advertising growth forecast to 2014-15.4% per year**

Forecast size of internet advertising industry - $3.8 billion

• Exceeding TV advertising spend **

DPG is exposed to growth across multiple internet advertising categories

General Display Advertising Expenditure –2003 to 2010 IAB report December 2010

*IAB Online Advertising Expenditure Report December 2010**Pricewaterhousecoopers Media and Entertainment Outlook report 2010‐14

Industry Growth

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DPG Transformation

Strategy to become a leading digital performance marketing company in AustraliaFor

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Management & Board

Senior Management

Chris Meehan Managing Director / CEO

10+ years digital experience,former COO/CEO

travel.com.au during successful turnaround and

sale to Wotif.com,former GM of

domain.com.au

Campbell Nicholas, Company Secretary / CFO 12+ years CFO experience,

19 years CPA,former roles at

WorldxChange Comms, Personal Broadband

Australia, Ernst & Young / Unilever

Shaun McNamara GM of Empowered

Foundation employee of Empowered since 2001,formerly other National

Sales and Marketing roles with large FMCG

multinationals

Craig EllisMD of dgm

13+ years digital experience, employee of dgm since

2004, formerly other digital roles within Fairfax Digital,

Excite and Optus Interactive

Board of Directors

Phillip Pryke Non-Executive Chairman

Director Co-Investor Capital Partners (cornerstone

investor), currently Deputy Chairman Contact Energy & Director Goodman Group,

former CEO EDS Asia Pacific

David Sweet Non-Executive Director

Former Managing Director,other executive roles

including Director Vodafone Australia and iTouch

Australia / New Zealand

Fionn HyndmanNon-Executive Director

Online advertising sector veteran, formerly Managing

Director of Deal Group Media Pty Limited

(Australia) for 7 years

Christin BurnsNon-Executive DirectorInvestment Manager at

Co-Investor Capital Partners, holds Board positions at several

Australian online businesses

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Business Unit Information

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Direct Advertiser or Media Buyer

allocates part of overall advertising

spend to online

Direct Advertiser or Media Buyer

allocates part of overall advertising

spend to online

Hundreds of smaller sitesHundreds of smaller sites

Via

websites,

email,

phone,

in store

Via

websites,

email,

phone,

in store

Affiliate networkAffiliate network

Search campaigns for online search

engines

Search campaigns for online search

engines

Emails sent to specialist database

Emails sent to specialist database

Consumers respondto online ads or emails

Results delivered to advertiser

dgm & Empowered Revenue Model

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DPG places advertising via multiple channels

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Group ad sales of $38 million in FY2010

dgm and Empowered have developed complimentary media buyer and corporate relationships

Following the acquisition, dgm and Empowered are focusing on leveraging each other’s key client relationships to maximise revenue opportunities

dgm & Empowered Customers

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OVERVIEW OF COMTEL

Member data sold byin-house sales force

MEDIA BUYER RESEARCH

COMPANY

CORPORATE

500,000 member database

Empowered has a database of circa 500,000 members sourced via network of five loyalty websites

Detailed demographic data collected from members enables DPG to conduct highly targeted email advertising offers or research campaigns

Key database member marketing initiatives:• Launch of Facebook and iphone apps

(increases member engagement)• Optimising member loyalty rewards

(increases member retention)• Monthly member newsletter to

(reinforces member benefits)

1HF11 EBITDA = $1.5m, FY10 EBITDA = $3.2m

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Empowered Communications (Overview)

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OVERVIEW OF COMTEL

AD AGENCY

RESEARCHDIRECT 

Current major infrastructure projects underway include:

Server Platform Upgrade• Outsourcing infrastructure to the cloud

(Macquarie Telecom Private Cloud)• Ability to launch new websites (e.g. daily deals) at short

notice• Scalable for future growth• 99.99% system availability to increase user experience

Updated Software Platforms with CMS• Upgrading proprietary membership, email management and data

management systems• Improved usability, member retention and engagement across all

proprietary websites• Improved WDYT.com.au website for better social media

integration and more relevant member rewards

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Empowered Communications (Technology Investment)

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dgm works across the following channels:• Affiliate marketing

- Australia’s leading Affiliate Network*• Search engine marketing (PPC):

- paid search / e.g. Google adwords• Search engine marketing (SEO):

- optimise websites for search engines

Campaign management for Affiliate and Search requires:

specialist platforms and technologydedicated account management and consultancy teams

dgm has established leading positions across all channels

1HF11 EBITDA = $0.9m, FY10 EBITDA = $1.8m

*    An affiliate network connects advertisers and publisher websites. Affiliate websites display advertiser ads and integrated content in an effort to drive consumer actions and acquisitions and are paid for results

Deal Group Media (Overview)

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First ever and only agency to win a regional award for affiliate marketing:

• Asia Digital Media Awards for Affiliate Marketing with St George Bank, 2009

• Asia Digital Media Awards for Affiliate Marketing with Coles Source Mastercard, 2010

Most awarded agency in Search Engine Marketing:• Finalist, IAB Search Marketing Award for Allianz,

2010• Winner, IAB Search Marketing Award for Woolworths

Everyday Money, 2009• Silver Medal, Asia Digital Media Awards Search

Award for St. George Bank, 2009 • Winner, IAB Search Marketing award for Dell, 2008• Finalist, Digital Media Award for Agency of the Year,

2008• Winner, Digital Media Award for Search Marketing,

2008• Outstanding Advertiser Award, Yahoo HK for HKDL

Campaign, 2008

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Deal Group Media (Industry Recognition)

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Daily deal sites (modelled on US pioneer Groupon) have recently become a prominent way for SME businesses to market products/services

Australian daily deals market forecast to be worth $242 million over next 12 months, increasing to $500 million in 3 years*

The size of the Empowered member database (500,000 members) and detailed demographic data collected places DPG in unique position to enter this market

DPG has acquired daily deal technology through acquisition of Vowcha.com.au to gain an immediate presence in the daily deals segment

* Telsyte Digital Research Program (14th February 2011) 15

Vowcha.com.au (Overview)

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Vowcha’s sales force sign up SME’s to provide

discounted deals (mainly food, activities,

health and beauty retailers)

Vowcha’s sales force sign up SME’s to provide

discounted deals (mainly food, activities,

health and beauty retailers)

Daily deal email sent to Vowcha &Empowered

members in each city or town, and to followers on

Facebook and Twitter

Daily deal email sent to Vowcha &Empowered

members in each city or town, and to followers on

Facebook and Twitter

Consumers buy deals from Vowcha.com.au website and coupon

emailed to the purchaser

Consumers buy deals from Vowcha.com.au website and coupon

emailed to the purchaser

Vowcha retains a commission of 25-50% of the purchase price of the

deal

Vowcha retains a commission of 25-50% of the purchase price of the

deal

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Vowcha.com.au (Revenue Model)

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Financial Information

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• Pro-forma results:• Provide financial history of continuing

businesses• Assumes dgm had been part of the DPG group

for full relevant reporting period (dgm acquired 22 October 2010)

• Excludes results of divested mobiles businesses

• Forecast pro-forma FY2011 EBITDA (before business acquisition and restructuring costs) in the range of $3.00 to $3.25 million

• DPG expects to achieve year-end annualised EBITDA run rate of $3.75 - $4.00 million (based on the final quarter of the 2011 financial year)

FY20111st Half

Pro-forma

FY20101st Half

Pro-forma

FY2010Full Year

Pro-forma

Empowered 3,592 3,639 7,281

dgm 11,266 13,131 30,663

Total revenue 14,858 16,770 37,944

Empowered 1,472 1,651 3,178

dgm 928 858 1,804

Corporate costs (922) (1,155) (1,711)

Underlying EBITDA 1,478 1,354 3,271

Underlying EBITDA % 9.9% 8.1% 8.6%

Business acquisition costs (566) - -

Restructuring costs - (115) (195)

Depreciation / amortisation (68) (1,235) (2,238)

EBIT 844 119 1,033

Finance costs (557) (513) (1,136)

Tax expense (315) 160 (191)

Net profit / (loss) after tax (28) (234) (294)

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Financial Statements (Group P&L)

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• Vendor finance loan relates to deferred consideration to be received by DPG from sale of post paid mobile business

• Mobile assets and liabilities relate to prepaid retail business held for sale. In the event of a sale it is likely these liabilities (Jan 2011 balance = $0.70m) would be taken on by a purchaser.

• Borrowings include $7.0m senior facility provided by Co-Investor Capital Partners Pty Limited (cornerstone shareholder) and receivables financing facility of $0.8m

• Proposed rights issue to strengthen balance sheet via repayment of senior facility

$000’s December 2010 June 2010

Cash 1,107 2,126

Trade receivables 4,992 1,388

Vendor finance loan 2,778 -

Other current assets 140 95

Mobile assets 231 9,774

Total current assets 9,248 13,383

Goodwill & intangibles 22,902 15,025

Other non current assets 864 1,551

Total non current assets 23,766 16,576

Total assets 33,014 29,959

Trade and other payables 6,447 2,213

Borrowings 7,756 3,407

Other current liabilities 1,077 578

Mobile liabilities 1,100 6,906

Total current liabilities 16,380 13,104

Total non current liabilities 533 1,382

Total liabilities 16,913 14,486

Net assets 16,101 15,473

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Financial Statements (Group Balance Sheet)

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Listed Proxies

Listed Online Advertising Proxies (US or EU)Company Business Model Market Cap EV/EBITDA

Valueclick Inc Performance based online marketing $1,203m 6.8x

Marchex Inc Performance based online marketing $305m 11.3x

Tradedoubler Ab Performance based online marketing $275m 8.9x

Hi-Media Diversified online (advertising / publisher) $243m 9.2x

Sedo Holding AG Performance based online marketing $157m 12.1x

AVERAGE: $437m 9.7x

Source: Thomson One / All $ in AUD through xe.com* Includes Fairfax Media Limited, Salmat Limited and News Corporation** Includes Seek Limited, REA Group Limited, Carsales.com Limited, Wotif.com Holdings Limited and Webjet Limited***Based on year‐end  EBITDA run rate of $3.75 ‐ $4.00 million, net debt and excess assets as at 31 Jan 2011 (including 

assets held for sale and deferred consideration) of $5.63 million, and share price of $0.02 (as at 28 Feb 2011)

Listed Australian Online Businesses**Business Model Market Cap EV/EBITDA

Online travel and classifieds $1,218m 12.8x

Digital Performance GroupBusiness Model Market Cap EV/EBITDA

Performance based online marketing $9m 3.7x - 3.9x***

Listed Australian Media and Publishing*Business Model Market Cap EV/EBITDA

Diversified publishing and media assets $16,447m 7.4x

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Conclusion

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Review of Key Initiatives

• Focus on increased utilization of member database via further growth in research product offering

• Improve member retention through rebuild of technology platforms and new Vowcha offering

• Focus on increased utilization of member database via further growth in research product offering

• Improve member retention through rebuild of technology platforms and new Vowcha offering

• dgm and Empowered focusing on leveraging each other’s key media buyer relationships to maximise revenue opportunities

• Organic expansion of dgm’s affiliate offering into the fast growing online retail sector

• dgm and Empowered focusing on leveraging each other’s key media buyer relationships to maximise revenue opportunities

• Organic expansion of dgm’s affiliate offering into the fast growing online retail sector

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• Update website and technology with new brand• Leverage Empowered 500,000 member database and resources into new daily

deals offering• Launch with BDM’s in Sydney and Melbourne with other locations to follow• Focus on social media strategy

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DPG now repositioned and purely focussed on the fast growing online advertising industry

Performance based pricing model across multiple online channels positions DPG as a leader in this segment

Unique member database allows accelerated entry into new markets(e.g. daily deals segment, research)

Year end EBITDA run-rate of $3.75 - $4.00 million

Proposed rights issue to strengthen balance sheet and provide headroom for future growth opportunities

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Summary

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