Smaato has become a wholly owned subsidiary of the company and hopes to expand in the field of mobile digital marketing. Smaato is our first cross-border M & A, and we will also conduct overseas M & An around smaato, which we are currently looking at.

It is hoped that one or two more overseas projects will be completed by the end of this year.

Through smaato resources, help us to expand global resources.

Smaato has just set up a Chinese branch in Shanghai and will soon start its business in China.

Second, smaato Co-founder and CEO Ragnar made a speech. 1. Company background:

Smaato was founded in 2005 and now has a history of 11 years. At that time, the company was founded in Silicon Valley, when the company realized that mobile phones would become mobile computer terminals, and that the way to make money by selling software would be out of date. So at that time began to do online platform to advertise.

Smaato began to do its own advertising platform in 2006, but mainly SSP. Starting in 2011, the company began to build its own RTB. Officially launched its own RTB in 2012. Mobile software is sold through the APP store, and the most important thing for APP developers is to refine the inventory of ads. At that time, the company began to look for technologies for link ad buyers and APP developers.

This year's business growth is 72% compared with the same period last year.

90,000 developers

More than 450ad networks and DSP networks

Among the global TOP100 advertisers, 91 are our customers, including BMW, Walmart Inc and other major customers.

It covers 1 billion mobile users worldwide every month, with 110 million daily active users showing 300 billion times a month.

2. Staff and business composition:

There are now 200 employees, 60 of whom are technicians, all in Germany. The company later set up its own team in Hamburg, Germany, and currently has 120 employees in Hamburg. Since 2008, the company's products have been developed independently. At the same time, there is a team in Silicon Valley, mainly doing market and product information research at the front end.

At present, it is mainly the product market in San Francisco, the New York office mainly serves large advertisers, and the team in Singapore mainly serves the Asia-Pacific region. The company's business layout, 1/3 Asia, 1/3 Europe, 1/3 North America.

The company's employees are brought in from top advertising companies, including double-click.

The company CEO started its business at the age of 17 and did some computer software and hardware business in college. Joined an American company in 1995.

Petra, another co-founder of the company, is the company's fourth employee, and the two co-founders have been working together for more than 20 years.

3. Introduction of the company's business

Smaato's business is to help mobile developers get the most advertising revenue. Through the smaato platform, developers can connect to global advertising platforms. Including, inmobi, avazu and other world-famous advertising platforms. Thus helping APP developers to get the most advertising orders. Among the cooperative developers, including Microsoft Corp, EA, craigslist and so on. Through the company's platform, developers can maximize the value of their APP inventory.

4. User pattern:

The number of smaato users in China is 33 million, and it is expected that there will be rapid growth in the future.

Smaato has reached 21.77 million users in the US, 29 million in the UK and 16.6 million in Canada. In Indonesia, Asia, smaato has a joint venture in Indonesia that has reached nearly 50 million users.

5. Anti-fraud technology

The biggest problem in the industry is cheating. Over the past few years, smaato has set up its own team to prevent fraud.

Through their platform, they can ensure that advertising inventory is not fraudulent and that all data is visible. This means that advertisers do not waste money on advertising. Through their technology to achieve a clean data channel, prevent fraud, better serve advertisers.

6. Market overview

All have 5.3 billion mobile phone users and 2.1 billion smartphone users. 10-1.5 billion new smartphone shipments are expected in 2016. More and more of the 7.3 billion people have smartphones. In addition to shipments, mobile web pages are used 80% of the time in mobile APP,19% usage habits.

Global APP downloads are expected to reach 237 billion in 2016 and 300 billion in 2016. in terms of global mobile advertising spending, it is expected to reach $69 billion in 2015, $101 billion in 2016 and $196 billion by 2019.

7. Characteristics of the company

The company features a combination of German technology and Silicon Valley innovation. Get ideas in Silicon Valley and achieve them through technology in Germany. Smaato has its own comprehensive platform to achieve major advertising goals. Smaato system, APP developers can manage their own advertising inventory. Developers can choose to sell the advertising space directly or bid.

8. This transaction

Smaato's technology can realize the transaction between advertising demand and supply. Smaato is a technology company, through cooperation with Huayi Jiaxin, can better achieve the delivery of mobile advertising. Through the integration of Huayi Schwab and smaato-based global market coverage, the whole group has a better opportunity to understand the world's leading technologies. Enhance the strength of the whole group through acquisition or self-construction.

Under Huayi Jiaxin, smaato and Haoye will reach a cooperation. Thus resulting in a rapid synergistic effect.

Through smaato's system platform, Chinese developers can gain access to the global market. Accordingly, advertisers around the world can have better contact with Chinese consumers.

Through smaato's automated purchase platform, developers can easily monitor their inventory sales. Advertisers can better reach their own customer base. Although we are not Alphabet Inc-CL C and Facebook Inc, we are an independent third-party system platform, so we can cooperate with anyone.

We are very optimistic about the future.

III. Question and answer session

What are the advantages of Q:smaato compared with Google and Facebook Inc?

A:Facebook is a large advertising platform, and it has a large number of users, so it is not so transparent in its ecosystem. Google is our competitor and partner. Smaato is an independent third-party platform that gives APP developers a choice that is not limited to the ecology of Google.

Both Google and Facebook Inc have cooperated with smaato, which is the largest independent third-party advertising platform in the world.

What is the driving force behind Q:smaato 's revenue growth?

A:smaato has the ability to get more advertisers and more data. Through the cooperation with Huayi Jiaxin, smaato can get more advertisers. From a technical point of view, more users can be sold to different advertisers, so as to achieve the improvement of marginal effect.

What is the contractual relationship between Q:smaato and APP developers?

A: it's a revenue-sharing mechanism. Most developers have non-exclusive relationships, while a few have exclusive relationships. The revenue growth of developers matches the revenue growth of smaato.

Q:SSP and DSP's share of income?

A: all of the company's traffic is connected to the RTB platform, and most of it is a process of programmatic purchase. The proportion has reached 80%.

Competition between Q:smaato and other platforms?

The A:smaato platform is interconnected with other SSP. Different markets have different stocks. If there is sufficient interaction between markets, it can help maximize inventory sales. The smaato platform helps native APP developers help them standardize.

Q: China's market has been occupied by giants, how to compete with them?

A:smaato platform is a standardized and transparent platform, based on which it can naturally attract relevant users.

Users not only want to have one-on-one cooperation with giant companies, but also have more and better cooperation between advertisers and APP developers through the smaato platform.

How to cooperate with other subsidiaries after the cooperation between Q:smaato and Huayi Schwab? What is the company's consideration of smaato's performance and profit?

A: from a business point of view, smaato and the company have a lot of collaboration. Smaato hopes to open up more users in the Chinese market. The relative proportion of displays from China on the smaato platform is relatively low. Smaato and Haoye already have an office in Shanghai. In the future, smaato's share of revenue in China may reach 30% or so.

Over the past few years, smaato's revenue has been between $7000 and $8000, and this year it is expected to exceed $100 million. Without taking into account the business in China, we had expected the company's net profit to reach several million US dollars.

Our bet with smaato is not only an indicator of net profit, but also a lot of other business indicators. In addition, our customers also have overseas demand, such as Huawei, also hope that we can help the company with overseas marketing.