Stillfront Group Ab · OMXSTO:SF
Stillfront Group Ab — Investor Day (September 2020)
54 slides from Stillfront Group Ab's investor day presentation, Sep 22, 2020
Slide 1: Group Strategy & Overview
Group Strategy & Overview Jörgen Larsson, Founder & CEO
Slide 2: A continued high ambition: building the leading free-to-play powerhouse
A continued high ambition: Building the leading free-to-play powerhouse by assembling and leveraging the world´s best game talents and entrepreneurs
Slide 3: Stillfront's 10-year growth journey
STILLFRONT ´S 10-YEAR GROW TH JOURNEY 2010 2012 2013 2014 2015 STILLFRONT FOUNDED OPERATIONAL STRUCTURE POSITION IN THE STRATEGY COLDW OOD PARTNERS IPO ON NASDAQ BY JÖRGEN LARSSON GAMES GENRE FINALIZED W ITH EA FOR UNRAVEL FIRST NORTH THE ENTREPRENEURSHIP PHASE THE STRUCTURE PHASE THE SCALE PHASE 20
Slide 4: A strong foundation and platform relying on 3 pillars
AT THE FOREFRONT OF THE CONVERGING GAMING INDUSTRY A strong foundation and platform relying on 3 pillars Building the Entrepreneurship, Leading value- leading free-to- Scale & Structure creation and play powerhouse risk/reward model
Slide 5: Business model: delivering on our vision
BUSINESS MODEL: DELIVERING ON OUR VISION 23 million MAUs 38 games in active portfolio +50 collaboration 6 Centers of projects Excellence Building the leading across group free-to-play powerhouse >20% <20% organic growth UAC in relation LTM to revenue LTM
Slide 6: Stillfront's current market split
STILLFRONT`S CURRENT MARKET SPLIT INCREASED ADDRESSABLE MARKET ✓ Genre broadening into Mash-up category ✓ Increased diversification – mirroring Casual & Strategy, Mash-up, 34% the industry composition 38% ✓ Increased share of advertising revenues – diversification of revenue streams ✓ Increased focu
Slide 7: A diverse universe of games
A DIVERSE UNIVERSE OF GAMES CREATIVE GAME A GROWING GAMING DEVELOPERS POPULATION THE STILLFRONT PLATFORM CREATING A POSITIVE GAMING EXPERIENCE LEVERAGING SKILLS AND EXPERTISE, A SELECTION: • JOY • LEARNING • DISTRIBUTION • ANALYTICS • FANTASY • ENGAGEMENT • PUBLISHING • DATA • COMPETITION • SOCIALIZ
Slide 8: Stillfront's FAIR model
STILLFRONT’S FAIR MODEL F A I R FORUMS & AGE INCLUSION & RESPONSIBLE COMMUNITIES PROTECTION DIVERSITY GAMING
Slide 9: Stillfront's FAIR model: actions & responsibility
STILLFRONT’S FAIR MODEL: ACTIONS & RESPONSIBILITY CHIEF PRODUCT OFFICER – GROUP RESONSIBILITY FORUMS & AGE INCLUSION & RESPONSIBLE F COMMUNITIES A PROTECTION I DIVERSITY R GAMING • Chat filters • Target players aged 16 • Diverse teams create • Stillfront responsible for • Banning abusive and above b
Slide 10: Gearing up to shape the future of gaming
GEARING UP TO SHAPE THE FUTURE OF GAMING CENTERS OF EXCELLENCE ENGINE SHARING FRAMEWORK PERFORMANCE PUBLISHING & MARKETING LOCALIZATION STLLFRONT BUSINESS MANAGEMENT TEAM ALEXIS BONTE, JÖRGEN LARSSON, ARMIN BUSEN GAME ASSET ANALYTICS & MANAGEMENT & BUSINESS LIVE OPS INTELLIGENCE FINANCE STUDIO FUNCT
Slide 11: Value creation model
VALUE CREATION MODEL QUARTERLY LTM BOOKINGS BY ORGANIC/ACQUIRED ✓ Leading risk / reward model ✓ Continuous strong organic growth over time ✓ M&A vital component in the established value creation model ✓ Continued focus to go from Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 acquired t
Slide 12: Financial development 2019-2020 LTM
FINANCIAL DEVELOPMENT 2019-2020 LTM STRONG MOMENTUM IN GROUP PERFORMANCE NET REVENUE LTM (MSEK) ADJ. EBIT* LTM (MSEK) NET DEBT/ADJ. EBITDA RATIO 1787 2952 1028 2240 732 1967 645 1782 604 1579 527 904 851 820 665 1.4 1.2 0.9 0.9 0.4 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2’19 Q3
Slide 13: Financial targets 2021-2023
FINANCIAL TARGETS 2021-2023 GROWTH PROFITABILITY LEVERAGE NET REVENUE ADJ. EBIT MARGIN NET DEBT / ADJ. EBITDA RATIO 10,000 ~35% <1.5x MSEK by 2023 Growth is to be achieved organically The Adjusted EBIT margin may vary Stillfront may under certain as well as through acquisitions quarter to quarter de
Slide 14: Well positioned to continue on our strong growth journey
Stillfront well positioned to continue on our strong growth journey: → Attractive market position in high-growth industry supported by megatrends → A diversified portfolio of games and continuous strong M&A pipeline → Leverage operational platform
Slide 15: Wake up, kick ass, repeat
Wake up, kick ass, repeat 2019-03-27
Slide 16: Entrepreneurship, Scale & Structure
Entrepreneurship, Scale & Structure Alexis Bonte, Group COO, Stillfront
Slide 17: A hyper growth company in a strong growth industry
A HYPER GROW TH COMPANY IN A STRONG GROW TH INDUSTRY The mobile gaming audience Stillfront well positioned to continue to is expanding rapidly grow faster than underlying market 2020 190x 2015 2010 1.5bn players 2.5bn players 200m $30bn $77bn Stillfront’s market cap has increased from SEK 200m to mo
Slide 18: Trends driving the gaming industry
TRENDS DRIVING THE GAMING INDUSTRY Continued Increased convergence decentralization Data driven F2P model Further driven by Covid-19 taking market share Social in-game Continued experience consolidation Focus on creating strong social Less and larger players are communities in and around games takin
Slide 19: Stillfront at the forefront of the converging gaming industry
STILLFRONT AT THE FOREFRONT OF THE CONVERGING GAMING INDUSTRY Ownership, Empowerment, Responsibility ✓ Leveraging our existing expertise within F2P and securing strong position in the converging gaming market Gaming population ✓ Unique decentralized organization model with strong collaboration parti
Slide 20: We are unique
STILLFRONT’S WAY We are unique Successfully scaling whilst keeping our unique entrepreneurial DNA
Slide 21: A platform for the best game talents
A PLATFORM FOR THE BEST GAME TALENTS A group of studios built for decentralization ✓ Decentralized approach secures speed, market proximity and agility ✓ Group resources support and govern the studios, freeing up time to focus on creating great games ✓ Stillfront’s platform adds structure when neede
Slide 22: A scaling network of expertise and collaborations driving synergies
A SCALING NETWORK OF EXPERTISE AND COLLABORATIONS DRIVING SYNERG IES A collaboration platform for the best game talent built by gaming professionals and refined over 10 years of operations SYNERGIES ✓ The entrepreneurial mindset encourages collaborations for PROJECTS & ACTIVITIES the benefit of ever
Slide 23: Technical platform synergies
TECHNICAL PLATFORM SYNERGIES Sharing game parts and engines between Stillfront’s studios ✓ Collaboration for development of Conflict of Nations between Dorado Games and Bytro Labs active since 2016 ✓ Sharing a proven engine can significantly lower the risk of game development ✓ Successful collaborat
Slide 24: User acquisition synergies
USER ACQUISITION SYNERGIES Joint access to world class marketing and user acquisition ✓ Collaboration for user acquisition on NIDA ALHARB III between Babil and Goodgame active since 2018 ✓ Bundling marketing efforts in the group leads to various benefits like premium access to best partners, benefic
Slide 25: Shared webshop synergies
SHARED W EBSHOP SYNERGIES Sharing optimized PSP- and currency-conversion contracts between Stillfront’s studios ✓ Started leveraging GGS Web shop for other studios in the group since 2018 and still in the process of expanding it to more games ✓ Improved currency conversion rate and reduced chargebac
Slide 26: Stillfront's Collab-O-Meter
This is the Stillfront organizational foundation to build the leading free-to-play 55+ powerhouse by assembling the world´s best game talents and entrepreneurs STILLFRONT’S COLLAB-O-METER
Slide 27: Stillfront's acquisition strategy
STILLFRONT’S ACQUISITION STRATEGY Stable and well Proven experience Reports stable Strong management Cultural fit with managed gaming in developing revenues and a loyal teams motivated to Stillfront’s core values studios successful games player base stay on & bring new and decentralized expertise bu
Slide 28: Stillfront Group
STILLFRONT GROUP
Slide 29: Candywriter, LLC | September 2020
Candywriter, LLC | September 2020
Slide 30: Company Overview
Company Overview • 💫 Beginnings: founded in 2006; 100% founder-owned • 🍏 Growth: 100% organic over the first 10 years • 💸 Profitability: from Day 1; consistently growing sales & profits • 🏇 Team: highly motivated, based in Miami, FL • 🔍 Focus: evergreen casual to midcore games that pioneer new…
Slide 31: Senior Management Team
Kevin O'Neil Nadir Khan “8 CEO = 9 COO ¢ BS, Management Information Systems ¢ BS, Management Information Systems & Operations Management & Operations Management (University of Arizona) (University of Arizona) ¢ MS, Information Management ¢ MBA, International Business (Arizona State University) (Univ
Slide 32: Early Success
Early SUCCESS 2008 2008 2013 2014 2015 2016 2017 2018 Invited by Apple Imagine What's What's the Adult Letter Letter Fridge BitLife into original is a physics- achieved #1 Poker the Pic Difference Coloring Soup iPhone SDK beta based word overall (iOS) in one of first pioneers organically Book pionee
Slide 33: Road Ahead
Road Ahead Test new game concepts Create additional IP Bring BitLife products and leverage our that leverages the to new markets by millions of social media BitLife simulation increasing the number followers to launch all- Continue developing the engine, bringing new of language options new titles “
Slide 34: BitLife
BitLife • 🐣 Launch: Sep 2018 (iOS), Feb 2019 (Android) • 🆕 Innovation: all-new style Simulation/Role Playing game • 📝 Text-based life simulator shakes up interactive narrative niche for young adults • 🗣 Climbed to #1 overall iOS app in the US without featuring or UA (Q4 2018) • 🤖 Shot to #1…
Slide 35: BitLife phenomenon
BitLife phenomenon Loved by users 4.8 4.5 1.1m Ratings 700k Ratings
Slide 36: BitLife on Social Media
BitLife on Social Media Visit BitLife on Twitter Visit BitLife on Instagram Visit BitLife on Reddit Visit BitLife on TikTok 461k Followers 910k Followers 105k Members 245k Followers BitLife is favorite of YouTube influencers and streamers. Each of these influencers have made at least 4 videos about
Slide 37: BitLife Community
BitLife COMMUNITY • 🗣 BitLife’s content roadmap is driven directly by its fans
Slide 38: Future Strategy & Vision
Future Strategy & Vision • 👨 👧 👦 Extend BitLife franchise into sequels and/or derivative products • 🔥 Further solidify and build on our position as market leader in hot new text-based narrative genre • 🧠 Compound learnings from each new narrative game and incorporate into the next • 📈…
Slide 39: Capital Markets Day, September 22, 2020
Capital Markets Day September 22, 2020
Slide 40: Storm8 at a Glance
Storm8 at a Glance Founded in 2009 Successful track record in free-to-play mobile games Based in single location: Bay Area, California 50+ games across a variety of genres >1 billion lifetime downloads ~70 employees >$1 billion lifetime gross revenue Veteran team with median tenure at 6+ years ~90%
Slide 41: A Brief History of Storm8
A Brief History of Storm8 Long Tail Games Core focus Avg life cycle: 7+ years Launched in 2018 and 2019 Amassed deep game development R&D via small team Building on live ops expertise and expertise launching +50 casual games prototyping growing current hits across multiple genres 2009 2018 Beyond
Slide 42: Game Development via Rapid Prototyping
Game Development via Rapid Prototyping PHILOSOPHY PROCESS Be open minded and challenge all assumptions Idea #1 Idea #2 Passion to build for Greatness => Experiment => Measure Base Version Base Version Greatness is worth killing for 2 Weeks Learn and move on Iteration 1 Iteration 1 1 Week Exceptional
Slide 43: Home Design Makeover
Slide 44: Promotional Video
Promotional Video
Slide 45: Design Philosophy
Design Philosophy Delight players with over-the-top, aesthetically pleasing and inspirational rooms
Slide 46: Design Philosophy
Design Philosophy Create emotional connection via interesting character storylines and thoughtfully crafted narratives Rachel: Wow, I never thought I'd be able to afford a kitchen like this! I can't believe this is really mine. I'd have never been able to do this without your help, and everything is
Slide 47: Design Philosophy
Design Philosophy Keep the game fresh with steady release of new features Leaderboards Quests Bonus Bank Boost Event
Slide 48: Property Brothers Home Design
Slide 49: Promotional Video
Promotional Video
Slide 50: Design Philosophy
Design Philosophy Improve engagement by integrating Property Brothers into gameplay and mechanics
Slide 51: Design Philosophy
Design Philosophy Tap into Property Brothers fan base by staying true to their design aesthetics
Slide 52: Design Philosophy
Design Philosophy Differentiated marketing performance by leveraging their humor and fun personalities
Slide 53: Q&A
Q&A
Slide 54: End
End