Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Q3 2019 Earnings Presentation
15 slides from Modern Times Group Mtg Ab Class A's earnings presentation, October 2019
Slide 1: BT NEL ISG Ne eS SEI Ve ON N™
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Slide 2: Summary for Q3 2019
Summary for Q3 2019 MTG continues to deliver on its strategic direction, with seasonally solid development in the quarter: * Net sales growth of 4 % to SEK 1,066 (1,027) million and 6 % in our two key verticals ¢ Adjusted EBITDA of SEK 19 (27) million Esports sales up 12 % with one less Master prope
Slide 3: Mobile revenue driving gaming revenue growth
— Mobile revenue driving gaming revenue growth —— Net sales, reported (SEKm) D 618 629 Q318 Q319 HB All other HJ Mobile &/InnoGames aa, a KONGREGATE Mo Total mobile revenue for the gaming vertical reached the highest value ever in Q3 with a 55% revenue share MAU grew by 8 % for Elvenar and FoE quart
Slide 4: Increasing marketing spend in gaming to facilitate future growth
Increasing marketing spend in gaming to facilitate Adjusted EBITDA (SEKm) 160 118 Q3"18 Q319 future growth Adjusted EBITDA margin (%) 26% 29% 19% ales 19% Q318 Q418 Qri1i9 Q219 Q319 ARPDAU (SEK) 2.8 2.9 25 2.6 2.4 Q318 Q418 Qri1i9 Q219 Q319 Hl Kongregate Hl Innogames Monthly active users (MAU) (mill
Slide 5: Continued growth in esports
Net sales, reported (SEKm) 7 415 Q3"18 Q319 Hl Esports services HN Owned and operated Continued growth in esports Adjusted EBITDA (SEKm, %) 14% 13% or -54 Q3"18 Q3"19 Hl Adj. EBITDA —® Adj. EBITDA margin O&O properties activated Masters 4 3 Challengers 14 17 Open 2 2 ESL One New York sponsorship rev
Slide 6: Major steps toward commercially professionalize the esports industry
Major steps toward commercially professionalize the esports industry nielsen ESL and DreamHack jointly announces the forming H MTG announces the entering into acomprehensive of ESL Pro Tour; the world’s largest Counter- i esports measurement agreement for esports strike: Global Offensive (CS:GO) cir
Slide 7: Nielsen partnership to accelerate monetization of the young and attractive esports fan base
Nielsen partnership to accelerate monetization of the young and attractive esports fan base Driving commercial professionalization of the industry “The fight for young demographics" Age composition of fan groups of leading sports leagues 1) Measure media value Impact: data value driven agreements wi
Slide 8: Publisher partnerships presented in the quarter
Publisher partnerships presented in the quarter @estL = | MOBILE OPEN FOES The Vodafone 5G ESL Mobile Open was the first-ever ! ESL to handle production of the Intel international competitive mobile esports circuit World Open, which is co-hosted by The 1 ¢ 2K is partnering with the NBA and ESL to cr
Slide 9: Mobile esports developing into a meaningful contributor in Q3
Mobile esports developing into a meaningful contributor in Q3 AT&T's Shiz Suzuki discusses ESL Partnership Vodafone 5G ESL Mobile Open at ESL One New York i + 2nd - * “They (ESL red.) are really great at establishing these = aici vaketep at sen Director - Consumer at Vodafone Group, UK types of even
Slide 10: Snapshot of two of our well-performing esports properties
Snapshot of two of our well-performing esports properties Twitch top channels by hours watched Twitch top channels by hours watched (Sept 23'4 — Sept 29th, million hours) (Sept 30* — Oct 6t, million hours) || Esports content || Streamer Hi Esports content Hi Streamer iyasrens 9 i hh, Es 28 | gamesdo
Slide 11: Q3 sales and adj. EBITDA
Q3 sales and adj. EBITDA Net sales by vertical Adjusted EBITDA (SEKm) (SEKm) _ 27 a Be 1.066 19 1,027 | Q318 Esports Gaming Other& Q3719 Q318 Q319 Central Comments Esport net sales grew by 12 % of which organic growth represented 7 % mainly driven by increased sponsorship sales, despite one less Mas
Slide 12: Q3 income statement
Q3 income statement (SEKm) Q3 2019 Q3 2018 Q3 2019 Comments Adjusted EBITDA 19 27 ° Margin development driven by higher marketing expenses in gaming Adjusted EBITDA margin 1.8% 2.6% + Including -33 (-54) million in central operations cost Adjustments -36 17 + LTl: SEK 17 million for total group EBIT
Slide 13: Capex, cashflow and cash balance
Capex, cashflow and cash balance Capex 69 33 of which Gaming 55 26 VC Fund investments of SEK 10 million, two new and one follow-on. Fund now SEK 22 million invested in 18 companies Cash flow from operations -33 of which working capital 5 Net cash at end Q3 2,019
Slide 14: MTG announces strategic review of its gaming vertical and explores listing in the US
MTG announces strategic review of its gaming vertical and explores listing in the US MTG to initiate a strategic review of its gaming vertical in order to evaluate the best route to crystalize value for shareholders The strategic review could result in a Joint Venture (JV) partnership Aw for the gam
Slide 15: Summary and outlook
Summary and outlook Seasonally solid operational development in Q3 2019 with sales in our two verticals up 6 % Esports sales up 12 %, despite one less Master property compared to Q3 2018 Stable development for gaming vertical, with ARPDAU increasing by 7 % despite smaller and fewer in-game events MT
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