A folder can contain applications, bookmarks, shortcuts, or contacts
(Whenever you create a folder, the folder basically contains "setting icon" for further customization - in case of folder 2, setting icon is located on window caption)
Ads will appear frequently if you create many folders.
Donation: You can find ad-free donation version in Google market and Amazon Appstore
Security issue
1) why Internet permission: for Google Admob
2) why Browser history: to query Bookmark for folder insertion
3) why Contact permission: to query Contact for folder insertion
4) why Package permission: to notify installation/uninstalltion.
5) why Phone Call permission: to make a call when a folder has a shortcut for call
I DO NOT COLLECT ANY PRIVATE DATA.
You can find a paid version, [Application Folder Pro]
* Recently, some antivirus applications shows false alarm, but myy application has no relation with any virus.