Verve Group Se Class A · OMXSTO:VER

Verve Group Se Class A — Media and Games Invest — Investor Day (2023)

160 slides from Verve Group Se Class A's investor day presentation, 2023

Slide 2: Disclaimer
Disclaimer THE INFORMATION CONTAINED IN THIS PRESENTATION IS STRICTLY CONFIDENTIAL. ACCORDINGLY, THE INFORMATION INCLUDED HEREIN MAY NOT BE REFERRED TO, QUOTED OR OTHERWISE DISCLOSED BY YOU, NEITHER DIRECTLY OR INDIRECTLY NOR WHOLLY OR PARTLY. BY REVIEWING THIS INFORMATION, YOU ARE ACKNOWLEDGING THE
Slide 3: Today's Presenters
Today’s Presenters MGI EXPERTS MODERATION Remco Westermann Sameer Sondhi Jay C. MacDonald Jenny Rosberg CEO & Board Member CRO of MGI Founder and CEO of IR Adviser (Today’s Moderator) Digital Capital Advisors Jeff Coon Danesh Zare Paul Echt Rami Alanko Chief Strategy Officer of Senior IR Manager MGI
Slide 4: Aim of our Capital Markets Day
Aim of our Capital Markets Day GIVE AN UPDATE OF OUR LATEST DEVELOPMENTS PROVIDE AN OVERVIEW OF Q2 FINANCIALS, ACTUALS AND OUTLOOK SHARE DEEPER INSIGHTS INTO OUR STRATEGY AND INNOVATION EXTERNAL EXPERTS TO GUIDE US THROUGH TRENDS GET TO KNOW THE TEAM OF MGI Copyright © 2023 Media and Games Invest SE
Slide 5: Today's Agenda
Today’s Agenda 10.00 – Start Presentation & Introduction 10.15 – MGI Business Update 11.00 - Coffee break 11.20 – MGI Financials 11.45 – Q&A 12.00 – Lunch 12.30 – External expert session – Market Cycle, Consolidation & Vertical Integration 13.00 – External expert session – Identity and AI 13.30 – Ex
Slide 6: Agenda
Agenda ▪ MGI Business Update • Coffee Break ▪ MGI Financial Update ▪ Q&A • Lunch ▪ External expert session – Market Cycle, Consolidation & Vertical Integration ▪ External expert session – Identity and AI ▪ External expert session – Data Based Targeting in a New World With Privacy Restraints ▪ Coffee
Slide 8: Q2 Highlights
Stable quarter with strong profitability • 3% total growth for continued business (FX Q2 Highlights adjusted) • 1% organic growth (FX adjusted) • 2% reported revenue decline due to FX and divestments Updated Guidance with stable YoY performance (adjusted for divestments, FX headwinds) • Cost saving
Slide 9: Integrated Ad-Software-Platform
Integrated Ad-Software-Platform LET’S MAKE MEDIA BETTER +550 +700 +1B 25 Registered Locations Software Clients1 Employees2 worldwide Gamers +700B yearly ad +2.0B +250M +5,000 Connected Daily active O&O Games impressions3 devices users4 Notes: (1) As of Q2’2023, with >$100k revenue / year (2) Includi
Slide 10: We Have Come a Long Way in 10+ Years
We Have Come a Long Way in 10+ Years PRE-2018 2018 - 2023 FUTURE GAMIGO EVENT IN 2012 GROWING GAMIGO AG INTO BUILDING A LEADING AD SOFTWARE EXPAND AND LEVERAGE A LEADING GAMES PLATFORM BY TRANSFERRING THE BUY- OUR USPS TO CREATE PUBLISHER, LEVERAGING A AND-BUILD STRATEGY TO THE MEDIA PRODUCTS AND SE
Slide 11: Focus on Highly Scalable and Profitable business model
Focus on Highly Scalable and Profitable business model 18% In € millions Organic Growth 47% REVENUE CAGR 62% 38% Organic Growth EBITDA CAGR 324 252 140 84 93 45 71 18 29 13 2014 2015 2016 2017 2018 2019 2020 2021 2022 Adj. EBITDA Revenue Copyright © 2023 Media and Games Invest SE. All Rights Reserve
Slide 12: Many Parts Come Together as One
Many Parts Come Together as One… BUY & BUILD O&O GAMES …to Make Media Better VERTICAL AD- INTEGRATION SOFTWARE- PLATFORM Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 12
Slide 13: Opportunities and Challenges in the Advertising Market
Opportunities and Challenges in the Advertising Market By Remco Westermann (CEO, Board Member) Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 13
Slide 14: How Does Programmatic Advertising Work?
How Does Programmatic Advertising Work? We automate the buying and selling of ads on all digital devices PUBLISHER / ADVERTISER / BRANDS END CONSUMER DooH $ 0,9 “Matching fully automated the right brands to the right audience in „BBC“ $ 1,0 milliseconds” „Sports“ „Champions League“ Ad Bids MGI Deman
Slide 15: The Importance of Programmatic Advertising
The Importance of Programmatic Advertising The Importance of Advertising Programmatic Advertising The engine for consumer spending The turbo engine for consumer spending PUBLISHER Promote products, services and ideas to ADVERTISER potential customers and target groups NON-PROGRAMMATIC Enable free co
Slide 16: Our Fast-Growing Market: Programmatic Advertising
Our Fast-Growing Market: Programmatic Advertising The advertising industry is massive and programmatic is the growth driver (USDm) 1.200 70% 1.109 1.038 1.000 969 897 848 65% 65% 65% 801 800 64% DEMAND SIDE 725 Advertisers are shifting AGENCY 62% 673 PLATFORM (DSP) 600 558 617 60% their budgets to 4
Slide 17: Cyclicality of the Advertising Market
Cyclicality of the Advertising Market 40,0% 30,0% 20,0% Great Dot.com COVID-19 Depression bubble 10,0% 0,0% … 1987 1991 1985 1993 1997 1995 1983 1989 1999 1981 1961 2009 1919 1963 1967 1969 1923 1925 1927 1935 1945 1965 1951 1953 1975 2015 2019 1921 1929 1931 1933 1937 1939 1941 1955 1957 1943 1947
Slide 18: The US Digital Advertising Market
The US Digital Advertising Market Largest ad-market worldwide Strong Outlook for further long term growth ● Largest GDP ● Fastest growing ad-market among the four largest economies ● Rapid recovery of the US market expected ● Homogeneous market enables strong scaling ~70% of Group Revenues Copyright
Slide 19: Our Market is Evolving Dynamically
Our Market is Evolving Dynamically CONSUMER HABITS CHANGING - TREND TOWARDS MOBILE AND CTV ADVERTISERS LOOKING FOR TRANSPARENCY AND DIRECT SUPPLY GOVERNMENTS ENFORCING PRIVACY TECHNOLOGICAL CHANGE ENABLED BY AI, BIG DATA DOMINANT PLAYERS STRENGTHEN WALLED GARDENS, PRIVACY SANDBOX, SKAD MARKET CONSOL
Slide 21: A Global Player in Programmatic Advertising
A Global Player in Leading mobile in-app SSP Strong & fast growth in Programmatic CTV Advertising With Strong USPs A strong base to build from Advanced data Vertically and targeting integrated Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 21
Slide 22: Integrated in over 20.000 Leading Apps
Leading Mobile In- Integrated in over 20.000 Leading Apps App SSP Auctioning ad-inventory of mobile app publishers in privacy-first environments AI-Powered Without using IDFA or GAID Direct SDK integration Privacy- First Contextual Targeting +85 3rd-Party DSPs Monetizing mobile inventory Own Games V
Slide 23: Leading Exchange position, built within < Four years
Leading Mobile In- Leading Exchange position, built within < Four years App SSP #1 Exchange for Apple and Android Leading in direct Integrations 2023 Mobile SSP Market Share Report RTB Supply Path Benchmarking, July 1, 2023 Mobile SSP Jounce RTB Supply Benchmarking Report - Mobile App Pixalate Mobil
Slide 24: Further Investment in Growth
Leading Mobile In- Further Investment in Growth App SSP Executing a roadmap to gain further market share in In-App Some examples of our roadmap: • Improving our Video rendering capabilities to be at par or ahead of competition • Standardizing integration of ATOM • ML optimizations for both efficient
Slide 25: Building A Strong Position in a fast growing CTV market
Strong & Fast Growth Building A Strong Position in a fast growing CTV market in CTV TV is converging from traditional linear towards CTV/OTT CTV – a Growth Market Average Time Spent per Day with Media in US (min) CTV Ad Spend in US ($bn) according to eMarketeer 2023 according to eMarketeer 2023 Line
Slide 26: Offering the Inventory of Major CTV Players
Strong & Fast Growth Offering the Inventory of Major CTV Players in CTV Reaching 60% of US households Some of Our CTV Demand Partners Monetizing CTV inventory AI-Powered Contextual & Privacy- Behavioral First Targeting Value-add from ✓ Cross platform(multi-channel) approach ✓ Cross platform identity
Slide 27: Further Investment in Growth in CTV
Strong & Fast Growth Further Investment in Growth in CTV in CTV Executing a roadmap to gain further market share in CTV Some examples of our roadmap: • Released • Mid term projects: • LKQD migration • Open RTB 2.6 podding support • 50+ CTV specific features • Reworking the inventory management tools
Slide 28: Data are Key to Improved Advertising Results
Advanced Data and Data are Key to Improved Advertising Results Targeting Data at Scale to target the right users and optimize the creatives +20.000 Connected Apps Consumers +5.000 O&O Games ROAS D 400-500bn o Reach: o daily bid requests H > 60% of US HH External Data Sources SAMPLE DATA POINTS PRIVA
Slide 29: MGI Invests in Further Optimization
Advanced Data and MGI Invests in Further Optimization Targeting AI-driven Data Optimization DSP Data SSP Pub Data Ad units, ad placements, Auction results, best performing CPM…, apps - formats - pubs etc. Identity Graph Content Classification All identities (cookies, MAIDs, IPs, Web pages and apps c
Slide 30: Also Well-Prepared for a World without Identifiers
Advanced Data and Also Well-Prepared for a World without Identifiers Targeting Validated AI capabilities - Contextual targeting with Moments AI Highlights ● 24-hour campaign targeting fresh sports-related content in the UK and Germany. ● Verve Group outperformed the leading market alternatives by 36
Slide 31: Further Investment in Data and Targeting
Advanced Data and Further Investment in Data and Targeting Targeting Executing a roadmap to gain further differentiate Some examples of our roadmap: • Utilizing identity graph to pass enriched signals to DSP’s and marketplaces • Further improving Atom; more segments, more signals, improved functiona
Slide 32: Programmatic Advertising in Theory Most Efficient
Vertically Programmatic Advertising in Theory Most Efficient Integrated But due to too many parties very inefficient Current Market Issue Disadvantages A Scattered Landscape Advertiser Agency Cost Multiple tech stacks take margin DSP-1 DSP-2 Margin Multiple parties taking a stake DSP-3 SSP-1 Transpa
Slide 33: MGI: Offering an Integrated Multichannel Platform
Vertically MGI: Offering an Integrated Multichannel Platform Integrated Based on M&A and organic additions an integrated multichannel ad- platform was established MGI’s Answer: Integrated Advantages ad-tech stack Advertiser Vertically integrated Directly linking advertisers via publishers to consume
Slide 34: Further Optimize our Vertical Stack
Vertically Further Optimize our Vertical Stack Integrated Executing a roadmap to gain further platform efficiency Some examples of our roadmap: • Further integration and optimizing stacks • Further investments in insights and measurement • Evaluating Audio • Further optimizing systems set-up; moving
Slide 36: Agenda
Agenda ▪ MGI Business Update • Coffee Break ▪ MGI Financial Update ▪ Q&A • Lunch ▪ External expert session – Market Cycle, Consolidation & Vertical Integration ▪ External expert session – Identity and AI ▪ External expert session – Data Based Targeting in a New World With Privacy Restraints ▪ Coffee
Slide 37: Strong commercial development builds base for organic growth
Strong commercial development builds base for organic growth KPIs driving our long-term top-line growth 13% YoY Growth Ad impressions delivered (in bn) Ad Impressions 6% YoY Growth 173 172 181 181 156 161 166 135 59 37 44 15 17 22 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’
Slide 38: Market-Leading Mobile SSP
Market-Leading Mobile SSP Pixalate‘s Mobile SSP Market Share Report confirms market leading position of our Supply Side Google Play Google Play Apple Apple North America EMEA North America EMEA 11% 18% 17% Appodeal 16% Google InMobi 9% LoopMe 9% 16% Digital Turbine 11% AdExchange Magnite 8% Apodeal
Slide 39: Q2 2023 Pro-forma revenue performance
Q2 2023 Pro-forma revenue performance Commentary 78.1 2.7 - 3% yoy growth from FX adjusted continued business 76.2 - Growth is driven by Mobile ad spend as well as CTV 1.4 Fueling our growth 3% 14% 74.0 1% Mobile 82% CTV Q2 2022 Q2 2023 Divestments FX Headwinds Core Business Copyright © 2023 Media a
Slide 40: Stable Second Quarter with Positive Organic Growth
Stable Second Quarter with Positive Organic Growth Highly profitable and cash generating Q2 2023 -2% 1% Strong Profitability Revenue Growth FX-adjusted Organic Revenue Growth 1% 1% Net Revenues Adj. EBITDA Growth Adj. EBIT Growth Adj. EBITDA Adj. EBIT Strong Margin % % EBITDA Margin 93 28% 22% 100 4
Slide 41: Consistent Long-Term Financial Development
Consistent Long-Term Financial Development Highly scalable and profitable business model with strong organic growth EURm1,2 CAGR 55%3 324 325 (adjusted EBITDA) 252 30% 29% 29% 140 28% 25% 22% 21% 20% 93 95 18% 84 77 78 71 55 10% 39 42 45 22 29 15 11 13 18 18 4 7 2 7 10 2 2014A 2015A 2016A 2017A 2018
Slide 42: Revenue growth with further EBITDA increases expected for H2
Revenue growth with further EBITDA increases expected for H2 Seasonality will further support revenue and EBITDA growth in H2 2023 H2’23 vs H1’23 will grow regardless of Commentary ad spend softness due to strong seasonality Net Revenues Adj. EBITDA - Revenues tend to build up during the year (Q1 <
Slide 43: Operating Cash Flow and Capex Development
Operating Cash Flow and Capex Development Strong cash flow from operations, continuous investments in organic growth EUR 34m Operating cash flow development1,2,3 negative WC Capex development3 effect in H1 2023 EUR 3m investment in AI platform/identity (EURm) 134 (EURm) 296 graph in Q2 Operating Cas
Slide 44: Net Leverage & Interest Coverage Ratio
Net Leverage & Interest Coverage Ratio Focus on further deleveraging in the coming quarters Net debt to adj. EBITDA ratio development1 Interest Coverage ratio development1 Cashflow in H2 is (EURm) (EURm) expected to reduce Net leverage to <3,0x 308 95 299 Net leverage Interest Coverage Ratio Net Int
Slide 45: The MGI Balance Sheet
The MGI Balance Sheet Strong balance sheet with high cash position to navigate the cycle Balance Sheet as of June 30, 2023 (EURm) 1.003 1.003 319 Total Equity Intangible Assets from M&A and software development driving organic growth Intangible assets 799 Well diversified bond maturities with +90% m
Slide 46: Updated Guidance
UPDATED GUIDANCE Stable YoY performance for 2023 Normalized 2022 Initial Guidance Updated We expect stable YoY Actuals 2022 (*for divestments & fx) 2023 Guidance 2023 revenues in 2023 vs 2022 normalized for fx and divestments Revenue At normalized* 324 303* 335-345 (in €m) 2022 levels Growth 29% 20%
Slide 47: Normalization of FY 2022 for Divestments and FX
Normalization of FY 2022 for Divestments and FX -7% 324 12 9 303 FY 2022 FX Headwinds Divestments Normalized FY 2022 Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 47
Slide 48: Financial Key Take-aways
Financial Key Take-aways MGI is well-positioned to navigate the cycle Positive organic growth combined with high profitability Strong customer and Ad Impression growth! Market leader on Android and iOS in North America Natural hedge in earn-out liabilities with limited payouts in current macro envir
Slide 49: Time for Q&A
Time for Q&A To ask questions, please register at the following link (also to be found in the Press Release): https://conference.financialhearings.com/teleconference/?id=5003855 Technical note: While you are in the teleconference, please make sure to turn off the volume on your computer an only list
Slide 50: Agenda
Agenda ▪ MGI Business Update • Coffee Break ▪ MGI Financial Update ▪ Q&A • Lunch (We will be back at 12:30 CEST) ▪ External expert session – Market Cycle, Consolidation & Vertical Integration ▪ External expert session – Identity and AI ▪ External expert session – Data Based Targeting in a New World
Slide 51: Agenda
Agenda ▪ MGI Business Update • Coffee Break ▪ MGI Financial Update ▪ Q&A • Lunch (We will be back at 12:30 CEST) ▪ External expert session – Market Cycle, Consolidation & Vertical Integration ▪ External expert session – Identity and AI ▪ External expert session – Data Based Targeting in a New World
Slide 52: Our Speaker Today
Our Speaker Today Market Cycle, Consolidation & Vertical Integration Jay C. MacDonald Founder/CEO/Managing Partner at Digital Capital Advisors 25+ years’ experience of leading high growth and rapidly changing companies and investment banks in the technology and digital media sectors Digital Capital
Slide 53: Half the money I spend on advertising is wasted
“Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.” - John Wanamaker (1919) Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 53
Slide 54: Agenda
AGENDA Media: Then & Now Shifting Demographics Globally Programmatic Advertising Vertical Integration Consolidation & M&A Looking Ahead Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 54
Slide 55: Media: Then & Now
G Media and Games Invest Media: Then & Now
Slide 57: Modern Day Media
Modern Day Media Streaming Online Media Social Media TV Mobile Media Music Search Engine Radio Out-Of-Home Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 57
Slide 60: Shifting Demographics Globally
Shifting Demographics Globally
Slide 61: Shifting Demographic Landscape: U.S.
Shifting Demographic Landscape: U.S. The Hispanic community in the U.S. has grown 88.7% from 2000-2023, accounting for the largest expansion of any demographic during that period. Despite this growth, targeted ad spend has not kept up due to high costs associated with language barriers and a lack of
Slide 62: Shifting Demographic Landscape: Europe
Shifting Demographic Landscape: Europe As a result of both natural immigration trends and Europe’s role as a home for asylum seekers, the European market is rapidly evolving and becoming increasingly diverse. Diversity in Europe European Net Migration (millions) 4,0 5.3% of people living in the EU i
Slide 63: Programmatic Advertising
G Media and Games Invest @ Programmatic Advertising
Slide 65: Efficiency, Transparency & Performance
Efficiency, Transparency & Performance Rapid advancements in technology are fueling the development of enhanced programmatic advertising tools designed to deliver efficiency, transparency and performance. Efficiency Transparency ▪ Brands and advertisers can ▪ As brands and advertisers reach new leve
Slide 66: Has Programmatic Advertising Improved the Landscape?
Has Programmatic Advertising Improved the Landscape for: ▪ Efficiency, ▪ Transparency, ▪ Accountability? Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 66
Slide 67: In Many Ways Yes…
In Many Ways Yes… Programmatic advertising’s main objective, like many technologies, is to identify and root out inefficiencies. In this pursuit, programmatic advertising has largely been successful in providing increased access and speed enabling geographically disparate stakeholders to buy and sel
Slide 68: …In Other Ways No
…In Other Ways No While speed and access have improved, increased access has resulted in numerous bottlenecks where players in the market fill niche roles and fight for a piece of the pie. Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 68
Slide 69: Vertical Integration
@ Vertical Integration
Slide 70: Vertical Integration
Vertical Integration A historically complex and disjointed AdTech ecosystem has resulted in a shift towards vertical integration as brands and advertisers demand holistic end-to-end solutions. Legacy Landscape Outlook DMPs Publishers Advertisers & DMPs Advertisers & Agencies Agencies Ad Networks DSP
Slide 71: Legacy Vertical Integration
Legacy Vertical Integration The walled gardens that have dominated the digital ad market are becoming increasingly vertically integrated, enabling market leaders to offer brands and advertisers complete end-to-end solutions. These companies leverage vertical integration to enhance targeting capabili
Slide 72: Vertical Integration: Benefits & Challenges
Vertical Integration: Benefits & Challenges While vertical integration in AdTech offers many benefits, including streamlined operations and efficiency, it also creates challenges. As the AdTech market becomes increasingly integrated, companies will need to navigate heightened concentration, complex
Slide 73: Consolidation & M&A
Invest G Media and Games g Consolidation & M&A
Slide 74: Drivers of Consolidation
Drivers of Consolidation Demand for end-to-end solutions, advancements in AI, heightened consumer preferences for privacy, changing regulations and a challenging macroeconomic landscape have all contributed to a wave of consolidation across the AdTech market. Complex Ecosystem ▪ High fragmentation ▪
Slide 75: Consolidation: Trends & Benefits
Consolidation: Trends & Benefits Two primary trends in the recent wave of consolidation across the programmatic advertising landscape have been the convergence of DSPs and SSPs and the rush to acquire first-party data. By combining DSPs and SSPs, AdTech players will be able to offer increased transp
Slide 76: AdTech Landscape
AdTech Landscape Global AdTech Total Deal Count Strong PE Activity 100 PE Deals Corporate M&A Deals Total Total Deal Value (in billions) PE-Backed Simpli.fi Buys Bidtellect $6,3 $4,5 $3,2 $2,5 Quotient Technology Gets Buyout Offer 75 $0,9 71 $1,4 From Neptune Retail Solutions via $0,1 66 Charlesbank
Slide 78: Notable M&A
Notable M&A Target Date Acquirer Business Description Implied EV Provides integrated television advertising services intended to serve marketers, agencies, operators and media owners. Services include strategic media planning and placement, Aug-23 $600.0 multiplatform media representation, full-serv
Slide 79: Notable M&A (cont'd)
Notable M&A (cont’d) Target Date Acquirer Business Description Implied EV The company's platform is a classified advertisements website with sections devoted to general goods for sale, jobs, real estate, personals, cars for sale, and services, enabling Oct-22 $2,460.0 small and medium-sized business
Slide 80: Looking Ahead
G Media and Games Invest @ Looking Ahead
Slide 81: Looking Ahead to 2H 2023 & Beyond
Looking Ahead to 2H 2023 & Beyond IPO Market Remains Closed • Despite recent high-profile IPO filings, the IPO market has remained mostly frozen due to depressed valuations, high interest rates and general macroeconomic concerns. Accelerated Development of AI in AdTech • Recent advancements in AI ha
Slide 82: Thank You
Thank You Jay C. MacDonald Founder // Managing Partner // CEO August 2023 New York // San Francisco // Berlin // Tel Aviv Soon to be: LATAM & Singapore digitalcapitaladvisors.com Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 82
Slide 83: Agenda
Agenda ▪ MGI Business Update • Coffee Break ▪ MGI Financial Update ▪ Q&A • Lunch (We will be back at 12:30 CEST) ▪ External expert session – Market Cycle, Consolidation & Vertical Integration ▪ External expert session – Identity and AI ▪ External expert session – Data Based Targeting in a New World
Slide 84: Our Speaker today
Our Speaker today Identity, Data and AI in Advertising Jeff Coon Chief Strategy Officer at Basis Technology 20+ years’ experience in the digital advertising and technology sectors Jeff is the Chief Strategy Officer at Basis Technologies and has experience as CEO of an advertising startup as well as
Slide 85: Identity, Data and AI in Advertising today
Identity, Data and AI in Advertising today ● Advertising today powered by Data ● Data relies upon Identity ● Near future disruption of Identity & Data ● Longer-term outlook Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 85
Slide 86: Evolution of Advertising
Evolution of Advertising Creative Timing Media Data Goal Past Big Idea Multi-year Traditional Scarce, Manual, Simple Brand Value Present Conversion Annual, Quarterly Digital Plentiful, Manual, Complex Performance Near Future Dynamic & Personalized Real-time Owned, Earned, Shared, Nearly Infinite, Au
Slide 87: Advertising Today
Advertising Today Ad Audience Ad Audience Analytics & User Media Bid Request Segments Ad Auction Ad Bidding Advertisers Campaigns Targets Ad Creative Attribution [ DMP, CDP [ SSP/AdEx ] [ DSPs ] [ DMP, CDP ] ] IDs & DATA Ad request to ad served < 100 ms 1.7 Trillion times per day, 72B per hour, 20M
Slide 88: Identifiers, Identity Graphs, and Data Enablement
Identifiers, Identity Graphs, and Data Enablement User Device IDs Identity 3PC Graph Hashed Email Advertisers Alt IDs Hashed Email IDFA / ADID Publishers Hashed Email Mobile Alt IDs 3PCs Ad ID Sub IDs TCP/IP Alt IDs Audience Marketplaces Subscriber ID TCP/IP Hashed Email Hundreds of IDs: User PII, D
Slide 89: What types of Audiences?
What types of Audiences? Small sample of Demographic Geographic Affinity / Interests, , Travel Spendograph Activities 300,000+ audience ic Age Gender Current-Country Current City Previous buyer Frequent buyer American Cuisine French Cuisine segments commercially Ethnicity Compete buyer Italian Cuisi
Slide 90: Digital Advertising today relies on Deterministic Identity
Digital Advertising today relies on Deterministic Identity and PII-centric Data Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 90
Slide 92: Identifiers Progressively Being Restricted or Eliminated
Identifiers Progressively Being Restricted or Eliminated 2016 2017 2019 2019 2020 April June August September January The EU adopts the Apple starts blocking Google announces Privacy Mozilla announces California Consumer Privacy Act, General Data Protection some third-party Sandbox initiative to Fir
Slide 93: Apple Privacy Changes in iOS 14.5 update: ATT
April 2021, Apple Privacy Changes in iOS 14.5 update Case Study ● App Tracking Transparency [ATT ] requires User opt-in and consent to use of any PII, IDs or other data ● SKAdNetwork centralizes all iOS ad analytics in Apple service Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 93
Slide 94: Apple iOS 14.5 update – App Tracking Transparency
April 2021, Apple Privacy Changes in iOS 14.5 update – ATT App Tracking Transparency [ ATT ] requires User opt-in consent before IDFA, any PII, geo-location, or any other user-provided data can be used Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 94
Slide 95: Apple iOS 14.5 update – SKAN
April 2021, Apple Privacy Changes in iOS 14.5 update – SKAN No user or device-level data passed to Ad Tech platforms Attribution measurement now severely limited, per Apple guidelines Apple also now capture every iOS advertising exposure, click, install, etc. for every advertiser in real- time… Copy
Slide 96: Impact & Effects
Impact & Effects First 30 Days ● 90%+ of iOS bid requests no longer share IDFA due to lack of opt-in consent; as result, 90%+ of ad supply no longer “addressable” aka targetable or measurable ● iOS marketers watched ad campaign performance measurement & attribution metrics plummet, then simply stop
Slide 97: Apple iOS Privacy First Year Impact
Apple iOS Privacy First Year Impact Negative Positive Facebook: Fight Apple and do not Apple: App Store promotion and search integrate with ATT or SKAdNetwork. Q2- advertising grew from $1.9B in 2020 to 2022 revise earnings down 10%+ citing $19.6B in 2022 ATT specifically; later cite Apple ATT as ca
Slide 98: Google restricting 3PC in Chrome in 2024
Near future challenges, part 1: Google restricting 3PC in Chrome in 2024; will restrict Android AD-IDs longer-term Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 98
Slide 100: Impact & Effects to Expect
Impact & Effects to Expect Likely nearly identical to impacts of Apple’s iOS 14.5 privacy updates ● Dramatic reduction in presence of ID on users, large portions of ad supply “un-addressable” ● Existing Audience Targeting cease working on un-addressable supply ● Performance measurement, attribution,
Slide 102: Privacy Regulation Compliance Increasing Challenge
Privacy Regulation Compliance Increasing Challenge ● GDPR (EU): Stricter consent ● User Consent Management: requirements for collecting personal Platforms will need clearer, more data, higher fines, and the right to be user-friendly consent mechanisms. forgotten. This is highly likely to reduce the
Slide 103: What emerges and wins long-term?
What emerges and wins long-term? Copyright © 2022 Media and Games Invest SE. All Rights Reserved. Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 103
Slide 104: Digital Advertising will evolve to rely on Privacy-Safe Platforms
Digital Advertising will evolve to rely on Privacy-Safe Platforms in the near future Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 104
Slide 105: Privacy-safe Ad Tech
PII-based Deterministic ID & Data give way Privacy-safe • to Probabilistic, Anonymous, Privacy Safe identifiers and audiences Ad Tech • Contextual Targeting 2.0 emerges – powered by substantially more powerful AI tools • Carefully cultivate and retain opted-in, consented data – Consumer, Publisher,
Slide 106: Evolving toward Privacy-Safe Ad Tech
Evolving toward Privacy-Safe Ad Tech Deterministic / PII-based Probabilistic / Privacy-Safe ● Jeff Coon purchased a Toyota Tacoma in ● User XYZ789 visited TacoTrucks.com to read 2022 from Dolan Auto Group ⇒ add 2019 Toyota Tacoma owner reviews ⇒ jefecoon@gmail.com to New Insurance, probability engin
Slide 108: What Wins in the Future?
● AI modeling scaled behavioral, non-PII data from advertising platforms, O&O media, advertiser’s data, and partner’s data will yield highly accurate WHAT WINS IN THE Privacy Safe audience targeting and measurement FUTURE? ● Combine with next-generation Contextual content scoring to dramatically imp
Slide 110: Agenda
Agenda ▪ MGI Business Update • Coffee Break ▪ MGI Financial Update ▪ Q&A • Lunch (We will be back at 12:30 CEST) ▪ External expert session – Market Cycle, Consolidation & Vertical Integration ▪ External expert session – Identity and AI ▪ External expert session – Data Based Targeting in a New World
Slide 111: Our Speaker Today
Our Speaker Today Data Based Targeting in a New World With Privacy Restraints Oliver Dragic General Manager at pilot-group 10+ years’ experience in the digital advertising industry Oliver is Managing Director of pilot-group, a full-service provider for modern brand communication and one of the large
Slide 113: Cookies Spread Across the Universe
Cookies Spread Across the Universe In the absence of regulations, the chances of veering off course are rather elevated ~1054 cookies per day In the absence of regulations, the chances of veering off course are rather elevated Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 113
Slide 114: The Cookie as a Business
The Cookie as a Business In the absence of regulations, the chances of veering off course are rather elevated. Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 114
Slide 117: This Course Isn't Exactly New Territory For Us
This Course Isn’t Exactly New Territory For Us Real life shares some similarities with our cookie experiences GOVERNMENT DATA LOYALTY CARDS DATA COLLECTORS/SELLER Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 117
Slide 118: Conclusion
Conclusion Why the cookie has to be changed Lack of overview on utilized data, collectors, storage, purpose, and user benefits Resulting in loss of trust and escalation to an emotional level In the absence of regulations, the chances of veering off course are rather elevated Copyright © 2023 Media a
Slide 119: GDPR, CCPA & Co.
GDPR, CCPA & Co. The regulators shake up the industry GDPR CCPA (General Data Protection Regulation) (California Consumer Privacy Act) Effective May 2018 Effective January 2020 Requires active user consent Requires active user consent Fines: $2,500/$7,500 max for Fines: Up to 4% of global turnover o
Slide 120: Cookie History Repeats Itself
Cookie History Repeats Itself Applications multiply faster than the knowledge how to use it and what for GOAL RESULT Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 120
Slide 122: Some Alternative Solutions For a Cookieless Targeting
Some Alternative Solutions For a Cookieless Targeting The more we understand the better the cookieless targeting CONTEXTUAL 1ST PARTY BEHAVIORAL REGIONAL DATA DATA DATA DATA Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 122
Slide 124: How to Leverage 1st Party Data
How to Leverage 1st Party Data 1st Party Data can be used without a cost intensive CDP 4.95% OVERALL CONVERSION RATE 506 NEW CUSTOMERS Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 124
Slide 125: Future Proof Targeting Instead of Temporary Solutions
Future Proof Targeting Instead of Temporary Solutions Regional Data have the power to overcome budget inefficiency X 25% ROAS 18% CONVERSION RATE Cluster: A E Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 125
Slide 126: How to Measure an Impact Without Cookies and IDs
How to Measure an Impact Without Cookies and IDs Verification is the key to new insights and data efficiency Decoupled from 1:1 measurement No trying to hit actual panelists for their cookie/identifier X Can be used with all digital controllable channels 16% Possible live & ex post measurement BUDGE
Slide 128: Having the right partners and data is crucial
Having the right partners and assembling the right data with them is crucial for a better and more scalable campaign solution in this “New World” That's why we are thrilled to have Verve as such a partner Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 128
Slide 130: Agenda
Agenda ▪ MGI Business Update • Coffee Break ▪ MGI Financial Update ▪ Q&A • Lunch (We will be back at 12:30 CEST) ▪ External expert session – Market Cycle, Consolidation & Vertical Integration ▪ External expert session – Identity and AI ▪ External expert session – Data Based Targeting in a New World
Slide 131: Agenda
Agenda ▪ MGI Business Update • Coffee Break ▪ MGI Financial Update ▪ Q&A • Lunch (We will be back at 12:30 CEST) ▪ External expert session – Market Cycle, Consolidation & Vertical Integration ▪ External expert session – Identity and AI ▪ External expert session – Data Based Targeting in a New World
Slide 133: Addressability in AdTech: The Evolving Landscape
Addressability in AdTech The Evolving Landscape By Prasanna Prasad (CTO, Verve Group) Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 133
Slide 134: What Is Addressable Is Now Anonymus
What Is Addressable Is Now Anonymus ADDRESSABILITY PREVIOUSLY 100 % Reach COOKIE DEPRECATION IDFA DEPRECATION ADDRESSABILITY TODAY < 30 % Reach Audience with ID Audience without a known ID Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 134
Slide 136: Portfolio Approach
Portfolio Approach MOMENTS.AI ATOM Household Cross-Device (Web Contextual) (Mobile In-App) Targeting (CTV) Audiences VERVE ADDRESSABILITY SUITE ID Graph | Insights & Measurement | Open Standards Supply-side Platforms Demand-side Platforms ● Enhanced Open Exchange Addressability ● Self-serve data sal
Slide 137: Our Data Assets Set Us Apart
Our Data Assets Set Us Apart R & D Focus Areas Privacy Enhancing Tech | Edge Computing | AI led Optimizations Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 137
Slide 138: Moments AI.
G Media and Games Invest @ Moments Al.
Slide 139: MOMENTS.AI - How it Works
MOMENTS.AI - How it Works Intelligent Classification Unparallel Reach & Speed Moments.AI analyses content in the same way the We analyse and activate data from thousands human brain does, picking up on the subtle changes, of premium publishers globally. These activated emotions and sentiment. data s
Slide 140: Hundreds of Segments
Hundreds of Segments +700 various segments for all types of business verticals 1 2 3 4 Standard Visual Intent Segments by Brand Safety Custom Segments Segments Getty Images Categories +700 off the shelf segments Bespoke segments created Exclusive segments built with Getty Supporting Industry standar
Slide 141: Visual Intent
VISUAL INTENT 300,000+ Ronaldo Images in our library + 2,000+ Premium Publishers Globally Moments AI™ offers real-time content 6,000,000,000+ Monthly Related Views activation in under 10 ms With Visual Intent, we position your brand next to relevant content in the moment of Real-time Image peak audi
Slide 142: Contextual insights
Contextual insights Content related insights enable reach and trend analysis Every second we perform more than a million analysis on: - What the world reads - What trends are emerging - What is world’s sentiment And more. This helps a marketer to - Plan the potential reach of any type of content in
Slide 143: Contextual Measurement
CONTEXTUAL MEASUREMENT Instant, unique benefits that drive multiple use cases Use cases for real time content data analysis: Convert ID-based audiences into contextual segments ● What kinds of content are "frequent travelers" reading? What about those who are in-market to buy a car? Validate the acc
Slide 144: Results
Invest G Media and Games
Slide 145: Traditional Contextual Solutions Miss Out on 70% of Audience Attention
Traditional Contextual Solutions Miss Out on 70% of Audience Attention Slow processing up to 24 Hours . . . limits scale up to 70% Bid requests split by age of content Discovered Analyzed & Classified Activated News 30% Older Finance Content Traditional Contextual Analysis Stock Market Recent Conten
Slide 146: Research Validates Verve Group's Contextual Ads Outperform Industry Leaders
Research Validates Verve Group’s Contextual Ads Outperform Industry Leaders Moments.AI achieves an impressive 96% delivery rate on URLs published the same day and leads in accuracy Geo: UK & Germany Channel: Web Format: Display BACKGROUND THE STUDY Verve Group’s Moments.AI™ is a contextual ad To ver
Slide 147: MOMENTS.AI - Match2one Integration
MOMENTS.AI - MATCH2ONE INTEGRATION Out of top 10 match2one clients 8 is working with moments.AI Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 147
Slide 148: Case Study Moments.AI
Case Study Moments.AI™ Brief: Establish that we can deliver new subscriptions in Norway with Contextual Targeting. Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 148
Slide 149: Methodology Moments.AI
Methodology Moments.AI™ Moments AI™ 1. Target new content, with Brand Safety, as soon as it’s published. 2. Identify Consumer Interest and Intent, in real-time. 3. Maximise performance from most engaged factors. Traditional Approach Moments AI™ - 3rd Party Cookies Contextual Optimisation. - Audience
Slide 150: Results Moments.AI
Results Moments.AI™ 8.32X Return on advertising spend Future proofing customer acquisition with contextual. Copyright © 2023 Media and Games Invest SE. All Rights Reserved. 150
Slide 151: What Next?
G Media and Games Invest What Next?
Slide 152: Our Data = Massive Scale
Our Data = Massive Scale We bring together first- and third-party data sources for unmatched data scale VERVE AD EXCHANGE VERVE O&O DATA Among Top 5 Mobile Ad Exchanges Globally 20,000+ PUBLISHERS X Among Leading Publishers Globally 5000+ OWN INVENTORY 2B+ USERS 200M+ USERS 80% COVERAGE ON TOP PUBLI
Slide 153: Our Data is Enriched
Our Data is Enriched We layer anonymous and consented data to enrich and complement our first-party data Contextual Data Global internet traffic classification… On-device Data Anonymous on-device cohorts, event-based, time- based, ... Census Data Demographic, economic and population data, income lev
Slide 154: Our Data Unveils Affinities
Our Data Unveils Affinities Our data reveals a myriad of relevant interests adjacent to known target groups HIGH-END FASHION HIGH-NET-WORTH LOVERS INCOME FIRST-TIME AUTO GIZMO BUYERS ENTHUSIAST COFFEE COLLEGE AFFECTIONADOS GRADUATE TRAVEL BUDGET ENTHUSIASTS PLANNERS …AND MORE Eg. Female 25-34, NYC-b
Slide 155: Our Data Identifies Ideal Moments
Our Data Identifies Ideal Moments We deliver your message in moments of peak intent to engage consumers INTENT Ad engagement Proactive product search Luxury apparel website browser Brand engagement BEHAVIOR Census data Plays 8-Pool on mobile; uses XBox for console gaming Demographics Interest discov
Slide 156: Our Data Products Power Our Ecosystem
OUR DATA PRODUCTS POWER OUR ECOSYSTEM From multi-faceted supply and demand, our data fuels advertising efficiency Moments.AI ATOM Behavioral Insights Audiences Real-time, contextual Anonymous, mobile ID-based audiences, Reach analysis, segments on a page on-device cohorts focusing on explicit conten
Slide 157: Agenda
Agenda ▪ MGI Business Update • Coffee Break ▪ MGI Financial Update ▪ Q&A • Lunch (We will be back at 12:30 CEST) ▪ External expert session – Market Cycle, Consolidation & Vertical Integration ▪ External expert session – Identity and AI ▪ External expert session – Data Based Targeting in a New World
Slide 158: Agenda
Agenda ▪ MGI Business Update • Coffee Break ▪ MGI Financial Update ▪ Q&A • Lunch (We will be back at 12:30 CEST) ▪ External expert session – Market Cycle, Consolidation & Vertical Integration ▪ External expert session – Identity and AI ▪ External expert session – Data Based Targeting in a New World
Slide 159: Outlook & Closing Remarks
OUTLOOK & CLOSING REMARKS IN-APP ➢ Leading US & EU positions built within 4 years ➢ Focus on further increasing market share ➢ Next key focus area. Building on In-App and Data strengths CTV ➢ Investing in features and sales ➢ Leading mix; contextual + 1st party + behavioral DATA & AI ➢ Well prepared

Media and Games Invest — Investor Day (2023) on 6ix

Verve Group Se Class A — Media and Games Invest — Investor Day (2023)

Slide 1: Copyright © 2023 Media and Games Invest SE. All Rights Reserved.

Slide 2: Disclaimer

Slide 3: Today's Presenters

Slide 4: Aim of our Capital Markets Day

Slide 5: Today's Agenda

Slide 6: Agenda

Slide 7: Building a Sustainable Business

Slide 8: Q2 Highlights

Slide 9: Integrated Ad-Software-Platform

Slide 10: We Have Come a Long Way in 10+ Years

Slide 11: Focus on Highly Scalable and Profitable business model

Slide 12: Many Parts Come Together as One

Slide 13: Opportunities and Challenges in the Advertising Market

Slide 14: How Does Programmatic Advertising Work?

Slide 15: The Importance of Programmatic Advertising

Slide 16: Our Fast-Growing Market: Programmatic Advertising

Slide 17: Cyclicality of the Advertising Market

Slide 18: The US Digital Advertising Market

Slide 19: Our Market is Evolving Dynamically

Slide 20: Building a Market Leader

Slide 21: A Global Player in Programmatic Advertising

Slide 22: Integrated in over 20.000 Leading Apps

Slide 23: Leading Exchange position, built within < Four years

Slide 24: Further Investment in Growth

Slide 25: Building A Strong Position in a fast growing CTV market

Slide 26: Offering the Inventory of Major CTV Players

Slide 27: Further Investment in Growth in CTV

Slide 28: Data are Key to Improved Advertising Results

Slide 29: MGI Invests in Further Optimization

Slide 30: Also Well-Prepared for a World without Identifiers

Slide 31: Further Investment in Data and Targeting

Slide 32: Programmatic Advertising in Theory Most Efficient

Slide 33: MGI: Offering an Integrated Multichannel Platform

Slide 34: Further Optimize our Vertical Stack

Slide 35: Coffee Break

Slide 36: Agenda

Slide 37: Strong commercial development builds base for organic growth

Slide 38: Market-Leading Mobile SSP

Slide 39: Q2 2023 Pro-forma revenue performance

Slide 40: Stable Second Quarter with Positive Organic Growth

Slide 41: Consistent Long-Term Financial Development

Slide 42: Revenue growth with further EBITDA increases expected for H2

Slide 43: Operating Cash Flow and Capex Development

Slide 44: Net Leverage & Interest Coverage Ratio

Slide 45: The MGI Balance Sheet

Slide 46: Updated Guidance

Slide 47: Normalization of FY 2022 for Divestments and FX

Slide 48: Financial Key Take-aways

Slide 49: Time for Q&A

Slide 50: Agenda

Slide 51: Agenda

Slide 52: Our Speaker Today

Slide 53: Half the money I spend on advertising is wasted

Slide 54: Agenda

Slide 55: Media: Then & Now

Slide 56: Media a Century Ago

Slide 57: Modern Day Media

Slide 58: Has the Media World Simplified?

Slide 59: Today's Online Media Buying Landscape

Slide 60: Shifting Demographics Globally

Slide 61: Shifting Demographic Landscape: U.S.

Slide 62: Shifting Demographic Landscape: Europe

Slide 63: Programmatic Advertising

Slide 64: What do Advertisers Want Today?

Slide 65: Efficiency, Transparency & Performance

Slide 66: Has Programmatic Advertising Improved the Landscape?

Slide 67: In Many Ways Yes…

Slide 68: …In Other Ways No

Slide 69: Vertical Integration

Slide 70: Vertical Integration

Slide 71: Legacy Vertical Integration

Slide 72: Vertical Integration: Benefits & Challenges

Slide 73: Consolidation & M&A

Slide 74: Drivers of Consolidation

Slide 75: Consolidation: Trends & Benefits

Slide 76: AdTech Landscape

Slide 77: M&A: 2023

Slide 78: Notable M&A

Slide 79: Notable M&A (cont'd)