This document summarizes Bruno Lowagie's presentation at a Flanders Investment & Trade seminar in Singapore about iText Group's expansion into Asia. Some key points: - iText opened an office in Singapore in 2015 and saw revenue from the Asia-Pacific region grow from 5.75% in 2014 to 9.46% in 2015. - Having a local office and staff helped improve communication with customers and lead conversion. - Tier 1 countries like Singapore, Japan, and Australia generated the most revenue, while South Korea and Hong Kong performed better than expected. - Starting in Singapore was beneficial for access to the region but costs were high; in the future, Hong Kong or South Korea

1. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno19701

2. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno19702

3. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno19703
Award winning company
2014

4. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno19704
Why Asia?

5. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Use of our software in 2014
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno19705

6. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Distribution of our revenue in 2014
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno19706
North America (63.57%)
Europe (29.47%)
Asia - Pacific (5.75%)
Middle-East and Africa (0.61%) South America (0.59%)
World Regions
North America (63.57%) Europe (29.47%) Asia - Pacific (5.75%) Middle-East and Africa (0.61%) South America (0.59%)

7. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
What about the competition?
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno19707
Reference: SEC filings of Adobe
http://www.sec.gov/cgi-bin/browse-
edgar?company=&match=&CIK=adbe&filenum=&State=&Country=&SIC=&owner=exclude&Find=Find+Companies&action=getcompany
14Q3
14Q4

8. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
APAC region: three tiers
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno19708
 Tier 1: Japan, Australia, Singapore
 Highly developed countries with good level of
respect towards software IP
 Tier 1 represents 65% of 2014 APAC business
 Tier 2: India, Hong Kong, South Korea,
Taiwan
 Developed or developing countries with
acceptable to decent level of respect towards
software IP
 Tier 2 represents 30% of 2014 APAC business
 Tier 3: China, Thailand, Malaysia, Indonesia
 Developing economies with poor level of respect
towards software IP
 Tier 3 represents 5% of 2014 APAC business

9. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno19709
First steps

10. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
iMinds / FIT: “try before you buy office”
iMinds: Go Global
1 year office
Travel voucher
32 hours consultancy (*)
FIT:
Support at events
Advice! Introductions!
Subsidies for
 Asia trips
 Starting up ISA / real office
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno197010

11. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno197011
Princely Mission

12. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno197012
First partner

13. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno197013
iText Software Pte. Ltd.
Incorporated April 2015
1 local hire: April 2015
1 Belgian expat: July 2015
New office location

14. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno197014
CommunicAsia

15. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Revenue 2014 vs revenue 2015
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno197015
• APAC region responsible for 9.46% of total revenue 2015 (was 5.75%)
• If we look at the last 6 months, it’s even 11%
• Constant currency: 79% growth in 2015 (YTD) compared to 2014 (full year)

16. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Distribution of our revenue in 2015
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno197016
North America (60.97%)
Europe (27.93%)
Asia - Pacific (9.46%)
Middle-East and Africa (1.25%) South America (0.39%)
World Regions
North America (60.97%) Europe (27.93%) Asia - Pacific (9.46%) Middle-East and Africa (1.25%) South America (0.39%)
North America: 63.57% => 60.97%
Europe: 29.47% => 27.93%
APAC: 5.75% => 9.46%
MEA: 0.61% => 1.25%
South America: 0.59% => 0.39%

17. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Lessons learned (part 1)
Local office, cultural embedding works!
Time zone differences no longer a problem
Smaller cultural gap (ISA speaks Mandarin and Cantonese)
Inbound sales: conversion from lead to sale improved because of better communication
We’re still too dependent on inbound sales
We need to attend more events in the region
We need to visit more customers
We need to extend our partner network
Building partner network: slower than expected
Sales volume still too low to convince distributors/resellers to invest
More education about the product and its market needed
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno197017

18. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Lessons learned (part 2)
Tier 1 countries: Oceania dominates; Singapore, Japan confirm
Tier 2 countries: South-Korea, Hong Kong surprise
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno197018
Australia/NZ Japan Hong Kong India South Korea Singapore Taiwan Thailand China Malaysia
2014 $117,982 $103,995 $49,684 $62,220 $4,164 $23,392 $6,909 $0 $1,431 $2,640
2015 $244,564 $98,868 $102,079 $100,901 $49,796 $25,185 $15,722 $3,321 $3,226 $3,000
2014
2015
T1 T1 T2 T2 T2 T1 T2 T3 T3 T3
(to date)

19. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Lessons learned (part 3)
Do we regret the decision to start a company in Singapore? No!
The results are there, and the average deal size is higher
Singapore is an international hub: everyone speaks English; today’s “place-to-be”
Singapore is a very safe place for expats; it’s at the very center of our market
If we were to start all over again, would we still choose Singapore? Maybe…
The cost of living is high
The cost of doing business is high (accountants, auditor,…)
Too much bureaucracy (>2 months to open a local bank account, rules & regulations)
If you could start all over again, which places would you consider?
Hong Kong: business opportunities + very international
Pangyo Techno Valley (South-Korea): tomorrow’s “place-to-be”?
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno197019

20. © 2015, iText Group NV, iText Software Corp., iText Software BVBA
Flanders Investment & Trade seminar: Singapore — Bruno Lowagie @bruno197020
Thank you!