Enad Global 7 Ab · OMXSTO:EG7
Enad Global 7 Ab — Q4 2023 Earnings Presentation
20 slides from Enad Global 7 Ab's earnings presentation, Feb 13, 2023
Slide 1: Investor Presentation: Year-end and Q4 2023
INVESTOR PRESENTATION Year-end and Q4 2023
Slide 2: Main Topics
MAIN TOPICS ▪ Q4 2023 and Full Year Results ▪ Year in Review ▪ Industry Backdrop ▪ Industry Impact ▪ 2024 Approach and Strategy ▪ 2024 Outlook ▪ Medium to Long-term Outlook ▪ Financial Discussions ▪ Summary ENAD GLOBAL 7 2
Slide 3: Another Record Year
ENAD GLOBAL 7 | COMPANY PRESENTATION • Q4 results > Another Record Year > Net Revenue of SEK 473mm Adjusted EBITDA of SEK 98mm • Full year 2023 results > Net Revenue of SEK 2.05bn In MSEK > Adjusted EBITDA of SEK 542mm • Performance against target > Net Revenue 7% below SEK 2.2bn target > Adjusted E
Slide 4: Year in Review
ENAD GLOBAL 7 | COMPANY PRESENTATION Year in Review Key Objectives for 2023 Successful Results Deliver solid revenue and profit growth • 10% Net Revenue growth • 27% Adjusted EBITDA margin • SEK 438mm of cash flow from operations Reduce business and balance sheet risks • Fully paid down debt • SEK 4
Slide 5: Industry Backdrop
ENAD GLOBAL 7 | COMPANY PRESENTATION Industry Backdrop • Industry pain going on now for 2+ years • 2023 saw a slight growth of 0.6%, but a decline when adjusted for inflation • 2023 set another unwanted record with job losses • Are we almost out of the tunnel? Not so sure • Paying for “irrational ex
Slide 6: Industry Impact
ENAD GLOBAL 7 | COMPANY PRESENTATION Industry Impact • Adversely impacted across a few areas: > Work-for-hire business weakness > Service business project delays and cancellations > Pressure on live service metrics – My Singing Monsters bucked the trend but no doubt stilled weighed down • Even so, s
Slide 7: 2024 Approach and Strategy
ENAD GLOBAL 7 | COMPANY PRESENTATION 2024 Approach and Strategy Keeping it simple given the industry backdrop…not the time to be aggressive Active Risk Management + Long-term Plan Execution + Stay Opportunistic for Special Situations 7
Slide 8: 2024 Outlook
ENAD GLOBAL 7 | COMPANY PRESENTATION 2024 Outlook • Expected to be a softer year due to: > Overall industry weakness likely will continue > MSM normalizing at a nice level but below 2023 peak > Returns on our on-going investments won’t start until 2nd half of 2024 • Main highlights expected for the
Slide 9: Medium to Long-term Outlook
ENAD GLOBAL 7 | COMPANY PRESENTATION Medium to Long-term Outlook (MSEK) 3 Year Forecast • No changes to our medium to long-term plans and outlook 3 000 • Same target of SEK 3bn of Net Revenue and SEK 1bn of Adjusted EBITDA in 2026 2 045 1 866 1 800 • Industry situation this year should not 1 468 imp
Slide 10: Financial Discussion
FINANCIAL DISCUSSION COMPANY PRESENTATION 10
Slide 11: Net Revenue and Adjusted EBITDA
ENAD GLOBAL 7 | COMPANY PRESENTATION Net Revenue and Adjusted EBITDA Q U A R T E R LY LT M 700 100% 2 500 100% 572 90% 2 131 90% 600 559 2 038 2 058 2 045 517 80% 2 000 1 866 80% 483 473 500 70% 70% 60% 1 500 60% 400 50% 50% 300 40% 1 000 40% 32% 33% 200 30% 29% 29% 30% 27% 26% 28% 27% 190 23% 179 2
Slide 12: Net Revenue and Adjusted EBITDA Mix: Daybreak and Big Blue Bubble
Q4 Net Revenue Contribution Daybreak 182 38% ENAD GLOBAL 7 | COMPANY PRESENTATION Big Blue Bubble 86 18% Rest of the group 206 43% Group total 473 100% Net Revenue and Q4 Adj EBITDA Contribution Adjusted EBITDA Mix Daybreak Big Blue Bubble 29 49 30% 50% Rest of the group 20 20% (MSEK) Group total 98
Slide 13: My Singing Monsters KPIs
ENAD GLOBAL 7 | COMPANY PRESENTATION My Singing Monsters KPIs • BBB delivered SEK 85,8 million of Net Revenue for 4Q23 > 55.5% decline from 4Q22, which was the peak performance period > 215% above 4Q21, which was the “normal” level prior to the viral uptick • Based on the trends, we expect MSM to se
Slide 14: Net Revenue and Adjusted EBITDA Mix: Piranha and Toadman
Q4 Net Revenue Contribution Piranha 30 6% ENAD GLOBAL 7 | COMPANY PRESENTATION Toadman 19 4% Rest of the group 424 90% Group total 473 100% Net Revenue and Q4 Adj EBITDA Contribution Adjusted EBITDA Mix Piranha Toadman 11 -5 11% -5% Rest of the group 92 94% (MSEK) Group total 98 100% Piranha Toadman
Slide 15: Net Revenue and Adjusted EBITDA Mix: Fireshine and Petrol
Q4 Net Revenue Contribution Fireshine 107 23% ENAD GLOBAL 7 | COMPANY PRESENTATION Petrol 50 11% Rest of the group 316 67% Group total 473 100% Net Revenue and Q4 Adj EBITDA Contribution Adjusted EBITDA Mix Fireshine Petrol 11 3 12% 3% Rest of the group 84 86% (MSEK) Group total 98 100% Fireshine Pe
Slide 16: Net Debt to EBITDA Ratio and Cash
ENAD GLOBAL 7 | COMPANY PRESENTATION Net Debt to EBITDA Ratio and Cash (MSEK) 600 - Q4 Cash Flow 453 454 473 481 408 - 0 ,1 Cash OB 473 400 - 0 ,2 Operation +101 187 Investing -63 200 114 123 - 0 ,3 88 93 - 0 ,4 Financing -6 - -0,5 Delta Cash +33 - 0 ,5 Currency fluctuations in liquidity -24 - 200 -
Slide 17: Figures in Perspective
Based on current trends ENAD GLOBAL 7 | COMPANY PRESENTATION • 2024 is expected to be a transition year until the new growth initiatives starts to kicks-in • Net Revenue of approximately SEK 1.8 billion Figures in Perspective • Expect EBITDA margin in the range of 22-25 % for the full year 2024 • 20
Slide 18: Summary
SUMMARY COMPANY PRESENTATION 18
Slide 19: Summary
ENAD GLOBAL 7 | COMPANY PRESENTATION Summary • Stronger company today compared to where we were over the last couple years • Overall gaming industry has been under pressure and likely to remain so for 2024 • In the face of market challenges, still achieved our key objectives and delivered solid resu
Slide 20: Q&A
Q&A COMPANY PRESENTATION 20