Corporate Presentation

March 2012

Any forecast and/or forecasting statement, included in this presentation, is based on the Management's assessment at its discretion. However, these forecasts and/or statements are based

on the Company's expectations at the time of this Presentation and do hold in store a number of
uncertainties and risk to consider.

It is important to emphasize that actual results may differ substantially from expectations in these

forecasts and/ or forecasting statements, resulting from various factors. The Company does not
make any representations regarding the accuracy and achievement of the forecasts and/or forecasting statements.

In addition, forecasts and/or forecasting statements relate to the date of this Presentation only and
the Company is not under any obligation to update or correct any of the forecasts and/or forecasting statements to reflect events or circumstances after the date of this Presentation.

Corporate Overview Mar. 2012

Business Card
Company
International internet company Tel Aviv Stock Exchange (TASE) BBYL Leading Translation & Language tools provider $61.9 million revenues FY2011 (95% increase YoY) $21.9 million revenues Q4/11 (140% increase YoY) $9.2 million dividend FY2011

www.babylon.com
Top 50 websites worldwide 50 million unique visitors a day

Babylon Software
150 million registered users 1 million downloads a day
Corporate Overview Mar. 2012 3

Bridging the Language Gap

Corporate Overview Mar. 2012

The Language Gap

Only 27% of Internet users are native English speakers

YET

57% of Internet
content is in English

Source: internetworldstats.com as of March, 2011 Corporate Overview Mar. 2012

Source: w3techs.com, as of October, 2011 5

Milestones
Established in Israel Free Dictionary Software 1997 2001 English Writing Solutions Professional Translation services 2010 2009 2011

Premium Content (world leading publishers) 2003 2005

IPO TASE 2.2007

Search Business Model 2008 11.2007

B2B and B2C, SW Subscription Business Model

Translation Software

Change in Control

E-Learning Solutions

Mobile Solutions Guinness World Record Translation Toolbar Distribution

Corporate Overview Mar. 2012

Babylon in Numbers

150 Million desktop installations 100 Million translation requests a day 50 Million unique visitors a day 35 Million search queries a day 18 Million definition terms 1 Million daily installations 231 markets and 75 languages
Corporate Overview Mar. 2012 7

Babylon Business Model

Corporate Overview Mar. 2012

How Does Babylon Monetize its Users?

Free Service

Premium Service

Search
Corporate Overview Mar. 2012

E-Commerce

Telesales

Corporate Sales
9

How Does Search Work?

Organic Results

Sponsored Links $$$

Corporate Overview Mar. 2012

10

Babylon Growth in Different Geographies

Brazil

Mexico U.S

U.S

Germany

India

France

Italy

Spain

Source: Google Trends, as of March 12th ,2011

Corporate Overview Mar. 2012

11

Babylon.com - Traffic (Millions)

Source: Google Trends, as of March 12th ,2012

Corporate Overview Mar. 2012

12

Babylon.com - Traffic and S&M Expenses ($Millions)

S&M Expenses

Source: Google Trends, as of March 12th ,2012

Corporate Overview Mar. 2012

13

Babylon.com - Traffic, S&M Expenses and New Installations (Millions)

S&M Expenses New Installations

Source: Google Trends, as of March 12th ,2012

Corporate Overview Mar. 2012

14

Babylon.com - Traffic, S&M Expenses, New Installations and Revenues ($Millions)

S&M Expenses New Installations Revenues

Source: Google Trends, as of March 12th ,2012

Corporate Overview Mar. 2012

15

Ranked at the Top 50 Websites Worldwide

Daily Traffic Rank Trend
babylon.com
Traffic Rank Change

Source: Alexa.com, as of March 12th , 2012

Corporate Overview Mar. 2012

16

Financial Highlights ($Millions)

FY2011
Revenues = Profit Before Revenues = Tax = No Debt EBITDA = 61.9 (95% YoY) 9.2 (56% YoY) YoY) 61.9 (95% 9.8 (56% YoDebt

Q4 2011
Revenues Revenues == EBITDABefore Tax = Profit = 21.9 (140% QoQ) YoY) 18.7 (140% 5.4 (238% 5.2 (247% QoQ) YoY)

Corporate Overview Mar. 2012

17

Revenues and Profit Before Tax ($Million)

70 60 50 40 30 20 10 0
6.6 3.3 5.5

9.2
3.5 5.9 5.1

10 9 8 7

$6.1M
3 5.9 6.3 5.6 47.4

6 5 4 3 2011

3.4 7.2
2009

16.9

2010

Advertisement

Online Sales

Telesales

Corporate Sales

Profit

Corporate Overview Mar. 2012

18

Income Statement Summary ($Millions)

2009
Revenues
Cost of Goods Gross Profit R&D S&M G&A ESOP Operating Profit Finance Profit Before Tax Tax

2010
31.8
2.3 29.4 3.8 17.2 2.2 0.5 5.7 0.1 5.9 1.1

2011
61.9
2.4 59.5 4.9 41.7 3.1 0.8 9 0.2 9.2 1.8

YoY
95%
102%

22.6
2.4 20.2 2.4 12.1 1.6 0.6 3.5 0.1 3.4 1.5

58% 56%

Net Profit

4.9

4.8

7.4

54%

Corporate Overview Mar. 2012

19

Revenues and Profit Before Tax ($Million)

25 20 15 $6.1M
0.9 1.5
1.2

6
1.6
1.2 0.4

5.2 5 4 3

1.3 1.4
1.2

10
5 0

1 1.4 1.5
1.2

0.8 1.5
1.5 1.4

18.7 10.9 1.3 12.5 1.4

2 1 0

5.5

5.4

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Advertisement

Online Sales

Telesales

Corporate Sales

Profit

Corporate Overview Mar. 2012

20

Income Statement Summary ($Millions)

Q4/10
Revenues
Cost of Goods Gross Profit R&D

Q1/11
9.2
0.6 8.6 1

Q2/11
14.8
0.5 14.3 1.1

Q3/11
16
0.6 15.4 1.2

Q4/11
21.9
0.7 21.2 1.6

Q4/11 QoQ
140%
144%

9.1
0.5 8.7 1.2

S&M
G&A ESOP Operating Profit Finance Profit Before Tax Tax

5.1
0.8 0.1 1.4 0.1 1.5 0.3

5.6
0.5 0.1 1.4 1.4 0.2

11.5
0.4 0.2 1.1 0.2 1.3 0.3

11.9
0.7 0.3 1.4 1.4 0.5

12.7
1.5 0.2 5.2 5.2 0.8 247% 271%

Net Profit

1.3

1.2

0.9

4.4

238%

Corporate Overview Mar. 2012

21

Roadmap
Platform diversification.
i.e. mobile, smartphones and tablets.

.
.
Diversify product offering .
i.e. Games, Videos

.
.

Develop new distribution channels and partners

Additional monetization sources

Corporate Overview Mar. 2012

22