Ten Square Games Sa · GPW:TEN
Ten Square Games Sa — Q1 2025 Earnings Presentation
41 slides from Ten Square Games Sa's earnings presentation, May 20, 2025
Slide 1: Q1 2025 Presentation
— & ten square games 012025 H\ 4) PRESENTATION —s//’
Slide 2: Focus Strategy: New Tactics
FOCUS STRATEGY: NEW TACTICS
Slide 3: Transforming TSG with focus strategy for long-term growth
transforming TSG with focus strategy for long-term growth Why do we need change? Where are we now? How Will We Accelerate? (drivers of transformation) (status of transformation) (strategic enablers) Internal change under way Cross game leverage Market evolution ■ new leadership onboard post-pandemic
Slide 4: Product Performance Update
PRODUCT PERFORMANCE UPDATE
Slide 5: Challenges amid transformation of main products
challenges amid transformation of main products Bookings and marketing expense (PLN M) & ■ Q1 2025 key focus: ■ retention M PLN ■ improvement of quality of user experience ■ LiveOps operations and engagement. ■ Smaller number of new locations in both products. Main objective to stabilize churn & Q1
Slide 6: Pushing Ahead Despite Early Missteps
Pushing Ahead Despite Early Missteps ■ first tests on lower level paying users finalized segmentation - visible uplift Start of offer segmentation tests ■ phase II: testing higher tier of paying users; Central Hub: ■ simplifying the game event system, creating a USER EXPERIENCE daily user journey fo
Slide 7: Wings of Heroes: flying high with consistent growth
Wings of Heroes flying high with consistent growth ■ Growth of bookings by 2.9% q-o-q in Q1’25; ■ In Q1 2025 the team focused on: ■ improving first time user experience & matchmaking ■ introduction of coupons and pilot subscription to improve game’s economy M PLN ■ preparation for the release of Bat
Slide 8: Update on Prototype Development
UPDATE ON PROTOTYPE DEVELOPMENT
Slide 9: Progress in development of new projects
progress in development of new projects TROPHY HUNTER real combat simulator reaching milestones leading adding new planes & features to game’s global test launching game on global markets current round of tests on Google Platform on Google & Apple platforms on the turn of will run till August 2025 Q
Slide 10: Hunting Clash vs Trophy Hunter: Different Players, Shared Expertise
Hunting Clash vs Trophy Hunter: Different Players, Shared Expertise TYPE OF GAME MID-CORE CASUAL Real-time duels, CORE GAMEPLAY 1 shot = 1 kill Fast, turn-based, skillful duels Upgrading lure cards, unlocking PROGRESSION new locations Collecting trophies from duels MONETIZATION IAPs Hybrid: IAPs & A
Slide 11: TSG Store
TSG STORE
Slide 12: TSG Store on the rise
TSG STORE on the rise TSG Store’s % share in Group’s bookings 19.1% share of TSG Store bookings (March 2025) share of TSG Store grew in both product: Fishing Clash & Hunting Clash New shop design for Fishing Clash introduced A series of store improvements to offer better deals and more value per tra
Slide 13: TSG Store: Accelerating Growth
TSG STORE: Accelerating Growth Fishing Clash surpasses 25% target Hunting Clash - hitting 26.1% in March on a steep growth path 26.1% 17.5% JD 13
Slide 14: Financial Results
FINANCIAL RESULTS
Slide 15: Cost discipline, growth of Adjusted EBITDA & Net Profit
cost discipline, Growth of Adjusted EBITDA & Net Profit PLN m 2023 Q1’24 Q2’24 Q3’24 Q4’24 2024 Q1’25 1 9.5% q-o-q decrease in bookings, due to focus on Revenues from sales 436.0 100.1 98.0 94.0 94.4 386.5 96.7 engagement features in main products and lower UA expenditure. Wings of Heroes and FRS 1
Slide 16: Cash flow generation with a strong cash pool
Cash flow generation with a strong cash pool M PLN Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Strong cash position at the end of Q1’ 2025 Adjusted EBITDA 27.5 27.3 26.5 28.4 30.5 - PLN 172.4 M proves TSG’s strong cash Net Cash Flows from Operating generation capacity. The Group grows the 32.4 26.8 28.1 26.5 30.0
Slide 17: Solid Q1 2025 Profitability Despite Strategic Challenges
Solid Q1 2025 Profitability Despite Strategic Challenges Profitability Strong cash generation Key facts: Adjusted EBITDA Cash flow from operating activities decrease in bookings due to focus on retention & engagement rather that short-term monetization & decrease in UA expenditure M PLN M PLN decisi
Slide 18: Important Additional Information
IMPORTANT ADDITIONAL INFORMATION
Slide 19: PLN 100.0 M: sharing profits with shareholders
sharing profits with shareholders A record-high dividend demonstrating TSG’s commitment to shareholders approved by General Meeting of Shareholders 16% PLN 100.0 M dividend yield PLN 15.73* to be paid out to shareholders in the form of dividend in 2025 dividend per share Number of shares participati
Slide 20: Ambitious growth targets 2025-2029 under new MSOP
ambitious GROWTH targets 2025-2029 under new msop I TRANCHE II TRANCHE III TRANCHE STRUCTURE 2025-2027 2026-2028 2027-2029 FINANCIAL performance: MARKET: cONDITIONS ADJUSTED EBITDA tsg stock PERFORMANCE (80% WEIGHT) (20% WEIGHT) yoy target GROWTH OF tsg stock higher by 10 pp than wig index ADJUSTED
Slide 21: Target for the first tranche 2025-2027
target for the first tranche 2025-2027 Incentive plan tied to long-term value creation PLN 438 M 15% 100% ADJUSTED EBITDA YOY GROWTH OF shares allocated FOR 2025-2027 ADJUSTED EBITDA under this condition PLN 399 M 10% 65% ADJUSTED EBITDA YOY GROWTH OF shares allocated FOR 2025-2027 ADJUSTED EBITDA u
Slide 22: Investor's Calendar
INVESTOR’S CALENDAR
Slide 23: Investor's calendar
Investor’s calendar Company news flow: ■ Q2 2025 Sales Update – early July 2025 ■ H1 2025 Financial report - August 25th, 2025 Investors’ conferences: ■ 29 WallStreet Conference - May 23rd, 2025 ■ ERSTE: The Finest CEElection Equity Conference 2025 - May 28th, 2025 ■ DM BOŚ Back to School 2025 Confe
Slide 24: Summary: focus on transformation
sUMMARY: focus on transformation Main titles Wings of Heroes Prototypes Game depth: Trophy Hunter: Real Combat Simulator: Segmentation new game mode on the path to global on track & social layer test Early user experience Early user experience Scaling marketing budget Scaling marketing budget AI 24
Slide 25: Contact details
Contact details: Nina Graboś – IR, PR & ESG Director nina.grabos@tensquaregames.com
Slide 26: Financial Results
FINANCIAL RESULTS
Slide 27: Balance sheet
Balance sheet Selected positions in k PLN* 31.12.23 31.03.24 30.06.24 30.09.24 31.12.24 31.03.25 ASSETS Fixed assets 215,778 214,234 212,420 208,412 206,436 198,609 Receivables 38,937 36,253 33,742 32,760 33,155 31,788 Cash and cash equivalents 162,826 76,784 94,971 121,389 143,755 172,377 Current a
Slide 28: Profit and loss report
Profit and loss report Selected positions in k PLN 2023 Q1’24 Q2’24 Q3’24 Q4’24 2024 Q1’25 Revenues from sales 436,076 100,118 97,998 93,979 94,357 386,543 96,653 Bookings 443,682 99,661 96,230 102,306 99,939 398,136 90,461 Fishing Clash 274,232 61,219 59,597 62,158 59,644 242,620 52,643 Let’s Fish
Slide 29: Cash flow report
Cash flow report Selected positions in k PLN Q1’24 Q2’24 Q3’24 Q4’24 2024 Q1’25 OPERATING ACTIVITIES Profit/loss before tax 20,720 23,266 13,888 16,227 74,102 30,280 Total adjustments 13,803 (1,784) 16,397 12,627 41,043 0,9 Amortisation 4,506 4,429 3,953 3,873 16,761 3,173 Cash from operations 34,52
Slide 30: Method of determining adjusted EBITDA
Method of determining adjusted EBITDA Selected items of the P&L Statement in k PLN Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Operating profit IFRS 19.108 23,278 15,607 18,247 30,619 Amortisation +4,506 +4,429 +3,953 +3,873 +3,173 Write-down for impairment 0 0 0 +1,194 0 EBITDA IFRS 23,614 27,707 19,560 23,315 3
Slide 31: General and administrative costs
General AND administrative costs General administrative costs (PLN k) Q1’24 Q2’24 Q3’24 Q4’24 2024 Q1’25 Recurring costs 6,288 6,905 6,453 6,554 26,201 6,087 Salaries, subcontractor services 3,039 3,011 3,081 2,749 11,881 2,826 Subsidiaries costs 926 1,024 1,000 1,206 4,156 949 Office rental and mai
Slide 32: Ten Square Games group: team
Ten Square Games group: team 311 TSG group people Source: Company’s data as of 31 March 2025; MJ Evergreen: Let’s Fish, Wild Hunt, Airline Commander Other games: Rortos Shared serviced related to games Customer support, Localization, Marketing, Analysis, R&D 32
Slide 33: PLN 385 M distributed to shareholders in the form of dividend
History of profit DiSTRIBUTION TO shareholders* PLN 385 M distributed to shareholders in the form of dividend (PLN 252 M) and buyback (PLN 133 M) till 2024 AGM’s decision to pay out PLN 100.0 M in the form of dividend on June 27th, 2025 *TSG became publicly listed company in May 2018. Presented prof
Slide 34: TSG in 2025 & Beyond
TSG IN 2025 & BEYOND
Slide 35: 2025: on the path to turnaround
2025: on the path to turnaround Stabilizing the performance of Accelerating growth of Adding new game(s) & to the portfolio Final decision on the future of Trophy Hunter Personalisation of user experience & offers Expanding game modes to enhance & Real Combat Simulator to improve player retention an
Slide 36: 2026 & beyond long-term vision
2026 & beyond long-term vision Expanding Market Reach & Strengthening Portfolio Strategically targeted acquisitions to strengthen the portfolio Adding new games through a mix of in-house development & M&A Replicate the success of FC and HC with new projects Continued distribution of profits to share
Slide 37: Additional Information
ADDITIONAL INFORMATION
Slide 38: Accounting principles for revenues – IFRS 15
Accounting principles for revenues – IFRS 15 Virtual currency ■ Payment -> a player purchases virtual currency Bookings Sales revenue ■ Revenue -> the player uses the virtual currency to purchase a virtual goods (e.g. rods, lure packs) +/ - ■ Deferred revenue -> unused balance of virtual currency bo
Slide 39: Marketing expenses policy
Marketing expenses policy Marketing expenses „We invest in marketing provided we get positive returns throughout user lifetime” Marketing expenses model cumulative approach ■ The Group invests in marketing at point „0”. Cohort acquired in this period analyzed throughout user lifetime (period „0” to
Slide 40: Legal disclaimer
Legal disclaimer ■ Neither this presentation (the “Presentation”, references to which shall be deemed to include any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further enquiries) nor any copy of it nor the information contained
Slide 41: Contact details
Contact details: Nina Graboś – IR, PR & ESG Director nina.grabos@tensquaregames.com