Enad Global 7 Ab · OMXSTO:EG7
Enad Global 7 Ab — Q4 2021 Earnings Presentation
18 slides from Enad Global 7 Ab's earnings presentation, Feb 25, 2022
Slide 1: Investor Presentation – February 2022
INVESTOR PRESENTATION – FEBRUARY 2022
Slide 2: EG7 – An emerging global gaming group
EG7 – An emerging global gaming group 22 10 MMO powerhouse with Strong pipeline of 22 live service titles, products, including 7 including some of the new titles and 3 most iconic MMOs remaster updates 9 16 Portfolio of iconic Offices and ~880 FTEs original & top 3rd party across our main markets IP
Slide 3: Q4 Performance Highlights
Q4 Performance Highlights • SEK 573 million of Net Revenues • 193% y-o-y growth • 28% organic growth • Adjusted EBITDA of SEK 118 million at 21% margin • Operating cash flow of SEK 103 million • For the full year, SEK 1.67 billion Net Revenues and Adjusted EBITDA of SEK 397 million • Successful sign
Slide 4: M&A Highlight
M&A Highlight • Online version of Magic: The Gathering, the #1 trading card game in the world • Unique transaction structure • Acquihire of Magic Online team • Immediately accretive, taking over an existing profitable live service game • Structured as a license deal with no upfront purchase consider
Slide 5: Q4 2021 Financial Discussion
Q4 2021 FINANCIAL DISCUSSION Q4 2021 Investor Presentation 5
Slide 6: Introduction – Fredrik Rüdén
Introduction – Fredrik Rüdén • Deputy CEO and CFO • Joined December 1, 2021 • Born 1970 • Several leading positions in mainly Hi- Tech listed companies in different industries Q4 2021 Investor Presentation 6
Slide 7: Net Revenue and Adjusted EBITDA
Net Revenue and Adjusted EBITDA MSEK QUARTERLY LTM 1 671 573 1 293 409 384 964 304 718 570 196 397 118 109 290 199 89 81 111 45 11 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 Net Revenue Adjusted EBITDA Net Revenue Adjusted EBITDA Q4 2021 Investor Presentation 7
Slide 8: Net Revenue by Segment
Net Revenue by Segment LTM NET REVENUE MSEK QUARTERLY NET REVENUE 759 582 342 168 159 90 503 250 470 912 166 214 216 231 529 711 30 462 248 4Q20 1Q21 2Q21 3Q21 4Q21 40 Game Service 4Q20 1Q21 2Q21 3Q21 4Q21 Game Service QUARTERLY NET REVENUE MIX LTM NET REVENUE MIX 30% 44% 39% 60% 52% 45% 45% 85% 65%
Slide 9: Adjusted EBITDA by Segment
Adjusted EBITDA by Segment MSEK QUARTERLY ADJUSTED EBITDA LTM ADJUSTED EBITDA 1 145 75 4 35 81 31 58 286 85 49 228 74 66 159 62 70 87 12 5 4 ( 25) ( 35) -8 -8 ( 30) ( 17) ( 19) -4 -20 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 Game Service Holdings Game Service Holdings Q4 2021 Investor Prese
Slide 10: Game Segment – Q4 2021 Net Revenue and Adj EBITDA Mix
Game Segment – Q4 2021 Net Revenue and Adj EBITDA Mix MSEK 4Q21 GAME SEGMENT REVENUE MIX 1 ; 0% 27 ; 12% 30 ; 13% 172 ; 75% Big Blue Bubble Daybreak Piranha Toadman + AMG Q4 2021 Investor Presentation 10
Slide 11: Service Segment – Q4 2021 Net Revenue and Adj EBITDA Mix
Service Segment – Q4 2021 Net Revenue and Adj EBITDA Mix MSEK 4Q21 SERVICE SEGMENT REVENUE MIX 64 ; 19% 74 ; 22% 204 ; 59% Innova Soldout Petrol Q4 2021 Investor Presentation 11
Slide 12: Target and guidance
Target and guidance MSEK QUARTERLY PROFORMA REVENUE 2020-2021 2 000 1 753 LY 1 845 573 1 800 1 600 1 400 409 384 304 1 200 1 000 196 800 118 600 109 89 400 81 200 11 0 4Q20 1Q21 2Q21 3Q21 4Q21 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Net Revenue Adjusted EBITDA Flat Y-Y adjusted for negative
Slide 13: Leverage and cash
Leverage and cash MSEK Full year cash flow Cash OB 1 088 Operation + 169 1 200 1 088 0,8 Investing - 661 Financing - 128 1 000 0,6 Currency fluctuations + 24 800 0,4 Delta Cash - 603 484 Cash CB 484 600 0,1 0,2 400 - Q4 cash flow 200 - 0,2 Cash OB 442 - - 0,4 Operation + 103 Q4-2020 Q1-2021 Q2-2021
Slide 14: Summary
Summary Q4 2021 was the all-time best quarter for the Group both in Net Revenue and Adjusted EBITDA. The target for 2022 is to reach a run-rate of SEK 2.0 billion annual Net Revenue with sustained margins. Starting 2022 the revenue in January came in according to our expectations at SEK 141 million,
Slide 15: Looking Ahead
LOOKING AHEAD Q4 2021 Investor Presentation 15
Slide 16: Key Business Focus for 2022
Key Business Focus for 2022 Short-term Medium-term Long-term Value Drivers Value Drivers Value Drivers • New game releases • Major updates to: • New products with core • Evil v Evil • LOTRO owned IPs • Block ‘N Load 2 • DCUO • EverQuest • MTGO • H1Z1 • MTGO integration and • Planeside service • New
Slide 17: EG7 Investment Highlights
EG7 Investment Highlights Solid foundation of stable, recurring revenues World class IP portfolio Strong profitability and cash flow generation Favorable risk vs upside dynamics Compelling growth opportunities M&A growth Q4 2021 Investor Presentation 17
Slide 18: Q&A Session
Q&A Session Q4 2021 Investor Presentation 18