Verve Group Se Class A · OMXSTO:VER
Verve Group Se Class A — Media and Games Invest — Q3 2021 Earnings Presentation
23 slides from Verve Group Se Class A's earnings presentation, 2021
Slide 1: Q3 2021 - Earnings Presentation
Q3 2021 - EARNINGS PRESENTATION
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: I. Introduction
I. Introduction II. Business overview III. Financial performance
Slide 4: Today's presenters and ownership structure
Today's presenters and ownership structure Shares listed on Frankfurt Stock Exchange and Nasdaq First North Premier Stockholm Remco Westermann Shareholdings (149,679,980 shares)1 CEO & Chairman of the Board since 2012 28% • Manager, entrepreneur and investors with more than 25 Remco Westermann years
Slide 5: Financial Highlights Q3 2021
Financial Highlights Q3 2021 The Group‘s quarterly performance Major acquisition: Smaato Smaato’s Digital Ad Tech Platform is an STRONG REVENUE GROWTH UNDERSCORED BY omnichannel, self-serve monetization ORGANIC GROWTH solution and ad server. Publishers can bring their first-party data and manage all
Slide 6: II. Business overview
I. Introduction II. Business overview III. Financial performance
Slide 7: Highlights in Q3 2021
Highlights in Q3 2021 Initiatives in MGI’s both segments facilitated strong revenue growth in the third quarter of 2021 Two profitable segments which combined accelerate user acquisition and organic growth Games Media • Gamigo released one of the largest • Verve, together with Beemray, the recently
Slide 8: Challenges in the market
Current events impacting advertisers MGI’s Media segment Verve is well positioned to cope with the current challenges disrupting the Media industry Crumbling Apple Identifier IDFA and global Supply Chain Disruptions Changes to Apple’s Identifier IDFA Recent disruptions of global supply chains � Appl
Slide 9: Relocation and Governance Update
Relocation and Governance Update The key benefits for the organization Governance structure Update on the relocation process ➢ MGI is evaluating an extension of the board to better ➢ The relocation away from Malta is part of the reflect the Company´s international character and the optimization init
Slide 10: Smaato integration across 5 dimensions in execution
Smaato integration across 5 dimensions in execution MGI and Verve already achieved significant synergies on product, demand, supply and cost side Represents status of realized synergies 1 Get the controls to monetize their ad stack on one complete platform and free ad server Publishers 2 All major p
Slide 11: III. Financial performance
I. Introduction II. Business overview III. Financial performance
Slide 12: Third quarter financial highlights
Third quarter financial highlights Revenues increased by 80% and adjusted EBITDA by 199% Q3 2021 overview Year on Year comparison Comments In EURm Q3 2021 Q3 2020 YoY Growth • 80% total revenue growth year on year • 41% Organic Growth year on year (27% incl. Net divestments) 62.9 35.0 80% Revenues •
Slide 13: Summary of financial performance
Summary of financial performance Profitable business model with an increasing share of organic growth Long-term financial development (EURm) 1,2 41% Organic Growth Q3‘21 CAGR 78%4 Ø 244 221 30% 140 30% 25% 23% 22% 21% 20% 84 18% Ø 68 58 42 45 10% 39 29 22 18 15 11 13 2 4 7 2014A 2015A 2016A 2017A 20
Slide 14: Third quarter revenue and EBITDA development
Third quarter revenue and EBITDA development Growing faster than the media and games market in 2020-2023E1 Revenue Adj. EBITDA (EURm) (EURm) +80% +199% 65 63 20 19 60 55 15 30% 50 45 40 10 35 18% 35 6 30 5 25 20 15 0 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Margin Adj. EBITDA Strong organic revenue growth du
Slide 15: Third quarter segment performance
Third quarter segment performance Strong organic growth combined with M&A in both segments Games segment Media segment (EURm) (EURm) +105% +56% 35 30 28 35 25 30 25 20 18 38% 24% 20 15 17 28% 15 11 10 8% 10 8 5 5 5 1 0 0 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Revenues Adj. EBITDA Margin Revenues Adj. EBITD
Slide 16: Business model ensures diversified revenue sources
Business model ensures diversified revenue sources Limited dependency on single game titles and media solutions Overview of key revenue splits1 6% 14% 14% 55% 6% 79% 1% 24% MMOs Supply Side Platform Advertisement Demand Side Platform PC & Mobile Casual Games Performance Platform Media revenues Influ
Slide 17: Operating cash flow and capex development
Operating cash flow and capex development Operating cash flow development1,2,3 Capex development (EURm*) 45 (EURm) 253 34 25 21 242 16 12 7 38 6 4 4 3 2 14 13 1 7 7 33 0 1 2 1 13 9 5 5 5 11 2014A 2015A 2016A 2017A 2018A 2019A 2020A LTM 2014A 2015A 2016A 2017A 2018A 2019A 2020A LTM Q3’21 Q3’21 Mainte
Slide 18: Long-term net leverage development
Long-term net leverage development Conservatively levered company with an net leverage of <2.5x based on pro-forma Q3 LTM EBITDA Net leverage to adj. EBITDA ratio development1 (EURm) <2.5x on a pro- forma-basis2 Net leverage Net Interest Bearing Debt 173 62 7.0x 35 3.0x 25 20 20 3.0x 13 1.9x 2.1x 11
Slide 19: Outlook MGI Group 2021
Outlook MGI Group 2021 Updated Financial Guidance 2021 incl. Smaato Updated Guidance incl. FY 2020 Initial Guidance 2021 Smaato 20212 Revenue 140 220 - 240 234 - 254 (in €m) Growth 67% 57-71% 67-81% Adj. EBITDA 29 60 - 65 65 - 70 (in €m) Growth 61% 106-123% 123-141% 1) Based on mid-term financial ta
Slide 20: Prudent mid-term financial targets
Prudent mid-term financial targets Financial targets well outperformed in Q3 2021 Revenue CAGR Adj. EBITDA margin Adj. EBIT margin Net leverage 25-30% 25-30% 15-20% 2-3x +80% 41% Organic 30% 24% <2.5x1 growth Source: Group information 1) Includes pro-forma September 2021 LTM EBITDA of KingsIsle and
Slide 21: Outlook 21/22: Executing on organic growth
Outlook 21/22: Executing on organic growth New games and ad-tech launches set to further increase growth and profitability Overview of the current announced organic pipeline • Worldwide development • Globally successful cubic GOLF rights of the triple A mobile Pirate101: TROVE – online adventure gam
Slide 22: Clear roadmap: an integrated Media & Games company
Clear roadmap: an integrated Media & Games company O&O AdTech company growing organically as well as via M&A Low business risk focus Recurring steady revenue streams: MMO games (O&O) and SaaS media revenues Strong organic growth In Games: new content and game launches In Media: scaling existing & ad
Slide 23: Media and Games Invest
G Media and Games invest
Media and Games Invest — Q3 2021 Earnings Presentation on 6ix