Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Investor Day (2017)
41 slides from Modern Times Group Mtg Ab Class A's investor day presentation, 2017
Slide 1: Redefining entertainment
MI@Ox Redefining entertainment
Slide 2: Agenda
Agenda A new entertainment world Market trends MTGx strategic overview Gaming and esports
Slide 3: When you think of entertainment, what do you think of?
When you think of entertainment, what do you think of? A New Entertainment World Market Trends MTGx Gaming & esports 3
Slide 4: The kids have left the sofa
The kids have left the sofa A New Entertainment World Market Trends MTGx Gaming & esports 4
Slide 5: Gaming is a basic human need
Gaming is a basic human need A New Entertainment World Market Trends MTGx Gaming & esports 5
Slide 6: An integral part of all cultures
An integral part of all cultures A New Entertainment World Market Trends MTGx Gaming & esports 6
Slide 7: And gaming has become a business as well
And gaming has become a business as well A New Entertainment World Market Trends MTGx Gaming & esports 7
Slide 8: Time has changed: If a millenial thinks of gaming today
Time has changed: If a millenial thinks of gaming today A New Entertainment World Market Trends MTGx Gaming & esports 8
Slide 9: Games have been part of culture. Now they are part of our daily life
Games have been part of culture. Now they are part of our daily life A New Entertainment World Market Trends MTGx Gaming & esports 9
Slide 10: Gaming is highly interactive, people share, create and broadcast content
Gaming is highly interactive, people share, create and broadcast content A New Entertainment World Market Trends MTGx Gaming & esports 10
Slide 11: The game has changed: kids now dream of becoming pro gamers
The game has changed: kids now dream of becoming pro gamers A New Entertainment World Market Trends MTGx Gaming & esports 11
Slide 12: Games are not only for millenials – it's a mass market
Games are not only Global Gaming Market (USD bn) for millenials – it’s a +6% 128.5 mass market and a 101.1 108.9 115.8 121.5 huge business 2016 2017 2018 2019 2020 Mobile growing by 16% in total 2016-2020, constituting 34.8 BUSD in 2017 (32%) Source: Newzoo; OC&C analysis #Gamers Avg age Gender 2.6B
Slide 13: We have a clear strategy to capitalize on these trends
We have a clear strategy to capitalize on these trends, which aligns with our vision to become a leading digital entertainer A New Entertainment World Market Trends MTGx Gaming & esports 13
Slide 14: Agenda
Agenda A new entertainment world Market trends MTGx strategic overview Gaming and esports
Slide 15: 5 Key Market Trends
5 Key Market Trends 1. Free-To-Play model 2. Desire to compete / interact 3. Growth driven by mobile games 4. From products to services 5. esports goes mainstream A New Entertainment World Market Trends MTGx Gaming & esports 15 15
Slide 16: Agenda
Agenda A new entertainment world Market trends MTGx strategic overview Gaming and esports
Slide 17: Our ambition to build a global leading entertainment position
Our ambition to build a global leading entertainment position started with a vertical approach Open to explore new verticals We follow the most interesting trends and consumption patterns Investing in globally appealing digital entertainment formats with portfolio synergy effects A New Entertainment
Slide 18: It all comes together – the combination is larger than sum of the parts
It all comes together – the combination is larger than sum of the parts Esports MTGx synergetic investment approach (385m fans) Massive global overlapping audience reach (~2.6 billion gamers, ~385 million esports fans, 2+ billion digital viewers) Gaming Digital Video (2.6 billion gamers) (2+ billion
Slide 19: Digital maturity: we scale our digital investments over phases
We scale our digital investments over 3 phases MTG digital strategy summary and approach PHASE 1: PHASE 2: PHASE 3: “setting digital foundation” “expanding digital focus” “driving digital innovation” • Series of mainly larger • Scale existing portfolio and enter • Experimenting with digital assets D
Slide 20: We apply the same investment logic across all our digital investments
We apply the same investment logic across all our digital investments • Attractive sector and part of the value chain • Sizable, Growing Revenues (~€50m+) • Compelling value creation story • Immediate EBITDA Contribution (10-20%) • Potential synergies with rest of portfolio Robust • Alt. of highly s
Slide 21: Our future investment thesis is clear
Our future investment thesis is clear – we invest in companies where we can leverage our key capabilities Key MTG capabilities Our investment thesis: Ad sales We invest to build and operate as a Subscription- sales and management main objective Content production We invest in companies where we can
Slide 22: We are set up globally with an exceptional team and a great network
And we are set up globally at key areas with an exceptional team and a great network MTGx Capabilities London Stockholm Stockholm Our team consists of entrepreneurs with 100+ years of experience in buying and building companies Hamburg Stockholm They are media and digital entertainment professionals
Slide 23: What we said last year at CMD and key achievements
What we said last year at CMD and key achievements What we said last CMD… What we achieved since… • Geo expansion, Position MTG as a leading added mega events Esports 1 digital entertainer with a • Global excl. sponsors Vertical strategy • New content/distr. deals Digital video Invest into attractiv
Slide 24: MTGx have grown heavily on top of key strategic investments
MTGx have grown heavily on top of key strategic investments – we continue to be highly committed with an ambition to expand much further MTGx shows strong growth… ..and it is just the beginning MTGx revenue reported (BSEK) Strong organic growth of current assets MTGx revenue pro-forma (BSEK) +31% 3.
Slide 25: Agenda
Agenda A new entertainment world Market trends MTGx strategic overview Gaming and esports
Slide 26: Deep-dive: esports
Deep-dive: esports
Slide 27: In esports – we cement our globally leading position
In esports – we cement our globally leading position and continue to shape the market Sponsorship Deals: ESL closing a landmark sponsorship deal with Mercedes-Benz and finalize new Intel partnership Record attendance and digital engagement for ESL One Cologne and Hamburg Original Programming: New Di
Slide 28: We show continued strong traction throughout our products
We show continued strong traction through out our products Views (M) Esports Event visits (k) +44% +22% 844.7 497.1 408.3 587.2 2016 2017 2016 2017 (Jan-Oct) (Jan-Oct) (Jan-Oct) (Jan-Oct) A New Entertainment World Market Trends MTGx Gaming & esports 28
Slide 29: We play a long term game as the esports ecosystem brand
We play a long term game as the esports ecosystem brand, connecting gamers to brands via the most compelling content ESL growth engine Zero to hero Open ecosystem The esports Global geographical New innovative product system champion category brand presence formats Consolidate pyramid Nurture esport
Slide 30: Deep-dive: Gaming vertical
Deep-dive: Gaming vertical
Slide 31: We have a clear investment philosophy and operational approach
We have a clear investment philosophy and operational approach to drive value beyond individual asset plans Gaming Investment philosophy • Developer scanner & vetting process 1 Establish strong publishing capabilities • • • BI & Analytics tools/team Platform relationships Effective UA operations 2 B
Slide 32: InnoGames drives growth through cross platform approach
InnoGames drives growth through cross platform approach – large focus on mobile Strong titles Powerful 6 cross- successful platform games strategy with more to come Established position in Mobile mid-core focus segment A New Entertainment World Market Trends MTGx Gaming & esports 32 32
Slide 33: InnoGames as first investment gave us a great foundation
InnoGames as first Total registered investment gave us a Average Mobile players (M) MAU (M) great foundation in +16% +26% the gaming market 22.4 25.9 2.0 2.5 2016 2017E 2016 2017 Jan-Oct Jan-Oct Revenue (mEUR) 155 131 +55% 104 82 66 47 21 27 6 11 2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2
Slide 34: Kongregate enables access to the games developer market
Kongregate enables access to the games developer market Great access Strong Cross Platform Publishing Platform that operates to top appstore a large, cross platform Audience Network developers relations and and IP featuring worldwide (Apple,Google) Kongregate vets 20 games per day in highly efficien
Slide 35: Synapse and Chinzilla studio roll-up provides proof of concept
Synapse and Chinzilla studio roll-up provides most recent proof of concept Kongregate’s knowledge of top developers worldwide enabled the acquisition of Synapse and Chinzilla Chinzilla is a developer of casual and role play games on mobile and PC Synapse is a developer of mid- to hard core strategy/
Slide 36: Kongregate has a proven 3-folded publishing strategy
Kongregate has a proven 3-folded publishing strategy to select and publish high quality games Focus on later stage, lower risk, 3rd party games allows Kongregate to invest into higher yielding projects Use of known engines allows Kongregate to launch lower risk IP, reducing time to market by “reskin
Slide 37: Deep-dive: VC fund
Deep-dive: VC fund
Slide 38: MTGx early stage investing approach differs from other VC funds
MTGx early stage investing approach differs from other VC and media company funds • Tighter sector focus than traditional VCs and other corporate funds Focus on gaming, • Clear ability to add operational and strategic value to portfolio esports & adjacent verticals where we • Makes MTG “strategic in
Slide 39: We are now launching a VC Fund targeted towards gaming and esports
We are now launching a 30 MUSD VC Fund targeted towards We have defined clear investment criteria; gaming and esports Investing in promising early and mid-stage games and esports companies 500k – 2m USD investments, minority stakes, 8-10 deals per year, 60% in games, 40% in esports We co-invest with
Slide 40: With Bitkraft we have a proof-of-concept
With Bitkraft we have Bitkraft in brief a proof-of-concept • Early stage investor focused on the esports sector • Bitkraft invest, support and build companies along with the industry’s most influential companies and professionals • Bitkraft is the go-to investor in esports Current portfolio companie
Slide 41: To sum up/key takeaways
To sum up/key takeaways: we are building the next generation entertainment company Market Gaming is one of the key driver of the new interactive entertainment world We play a long-term game as esports ecosystem brand by Esports connecting gamers to brands Cross platform approach and own IP increasin