Slide 1: CI Games – 8 April 2022
ci < GAMES ~\ ~\ i Bi April, 221
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain information set forth in this presentation contains “forward-looking information”, including “future-oriented financial information” and “financial outlook”, under applicable securities laws (collectively referred to herein as forward-looking statements). Except fo
Slide 3: CI Games at a glance
+ Years of IPs Copies sold developing AA+/AAA FPS & RPG Games Locations – Headcount Years avg. experience Poland, Spain, from management UK, US, Romania team 3
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS OUTSTANDING FINANCIAL PERFORMANCE ▪ Record financial performance generated mainly by our own IP franchises. Net revenue of PLN 105.5m in 2021 ▪ Strong profitability: EBITDA margin of 57% and net income margin of 36% in 2021 ▪ Future financial performance to be mainly driven by
Slide 5: Globally Recognized Developer & Publisher of High Quality Video Games
GLOBALLY RECOGNIZED DEVELOPER & PUBLISHER OF HIGH QUALITY VIDEO GAMES FPS & RPG EXPERTISE ▪ Top rated AA+/AAA game developer and publisher ▪ World renowned FPS & RPG game studio, listed on the WSE main market ▪ Self publishes original IPs on all major platforms (Steam, PlayStation, Xbox and Nintendo
Slide 6: 2021 Highlights
2021 HIGHLIGHTS STRONG FINANCIAL PERFORMANCE ▪ Our games portfolio delivered record results in 2021: EBITDA margin at 57.3% and net profit of 36.3% ▪ Net revenue of PLN 105.5m in 2021 reflected substantial contributions from our existing games franchise, Sniper Ghost Warrior, together with revenues
Slide 7: 2021 Highlights
2021 HIGHLIGHTS CONTINUED DEVELOPMENT OF EXISTING IPs ▪ Lords of the Fallen 2 is currently in full production. The marketing campaign is planned to commence in Q3 2022 ▪ Following the success of Sniper Ghost Warrior Contracts 2, our Warsaw development team is now working on the next installment in t
Slide 8: Seasoned Management Team
SEASONED MANAGEMENT TEAM Marek Tymiński David Broderick Saul Gascon Aitor Rosa Cezar Virtosu Darren Newnham Founder & CEO CFO Executive Producer (LOTF) Executive Producer (SGW) Creative Director (LOTF) CEO, United Label Kenton Fletcher Sam Sadeghi Ryan Hill Rhys Twelves Monika Rumianek Katarzyna Ser
Slide 9: 2021 Financial Report
ci GAMES 2021 FINANCIAL REPORT
Slide 10: Q4 2021 Financial Highlights
Q4 2021 FINANCIAL HIGHLIGHTS Net Revenue EBITDA Net Profit PLN 23.6m PLN 11.6m PLN 11.1m EBITDA Margin Net Profit Margin 49.0% 47.0% Cash Position EPS PLN 37.8m PLN 0.06 10
Slide 11: 2021 Financial Highlights
2021 FINANCIAL HIGHLIGHTS Net Revenue EBITDA Net Profit PLN 105.5 PLN 60.4m PLN 38.3m EBITDA Margin Net Profit Margin 57.3% 36.3% Cash Position EPS PLN 37.8m PLN 0.21 11
Slide 12: Income Statement
INCOME STATEMENT PLNm KEY HIGHLIGHTS 2021 2020 Net revenue from sales 105.5 46.0 • 2021 net revenue totalled PLN 105.5 m, with 61% generated by sales of SGWC 2. New releases from United Operating profit 40.3 8.7 Label portfolio accounted for 11% of consolidated sales. EBIT margin (%) 38.2% 19.0% ▪ T
Slide 13: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW PLNm KEY HIGHLIGHTS ▪ As of 31.12.21 total assets increased by 38% which Balance Sheet 31 Dec 2021 31 Dec 2020 was mainly attributable to investment in the games and working capital elements. Cash and cash equivalents 37.8 28.2 Total assets 152.1 110.3 ▪ Intangible assets a
Slide 14: Financial Performance
FINANCIAL PERFORMANCE Historicals and FY 2022-2023 Analysts’ Estimates* Summary Financials 2018 2019 2020 2021 2022E* 2023E* Revenue & EBITDA (PLNm) (PLNm) 250 Net Revenue 22.0 47.5 46.0 105.5 52.0 225.0 200 150 Gross Profit 4.7 18.5 19.3 65.9 26.8 119.0 100 50 EBITDA 4.4 20.5 27.8 60.4 30.0 103.0 0
Slide 15: 2022 Roadmap
2022 ROADMAP ▪ Development to continue on next SGW installment and Lords of the Fallen 2 ▪ United Label will continue signing new projects, with the aim to consistently release three to four titles every year going forward ▪ Launching 3rd owned IP in popular genre ▪ Progress strategic options – dual
Slide 16: Thank you
Thank you
Slide 17: Appendices
ci GAMES Appendices
Slide 18: 1. Portfolio Update
ci GAMES 1. PORTFOLIO UPDATE
Slide 19: Back Catalogue Performance
BACK CATALOGUE PERFORMANCE 2021 releases accounted for 72% of 2021 net revenue, while back catalogue continued to perform solidly Net Revenue 2021 Other 2% LotF 2% Röki 2% SGW3 6% SGWC2 61% SGWC 16% Eldest Souls 3% Tails of Iron 8% 19
Slide 20: Development Schedule
DEVELOPMENT SCHEDULE SURVIVE PROJECT Lords of the Fallen 2 Next installment SGW franchise Third Owned IP 2023 TBA TBA 20
Slide 21: Evergreen Tactical FPS Franchise
Evergreen Tactical FPS Franchise ▪ Self published by CI Games, the SGW franchise now boasts 5 entries and has sold 13M+ units worldwide ▪ It is now the best-selling first person sniping franchise of all time ▪ All four previous installments released before 2021 are fully depreciated, including Snipe
Slide 22: Soulslike Dark Fantasy Action-RPG
Soulslike Dark Fantasy Action-RPG ▪ The full featured sequel to Lords of the Fallen, which was released in 2014, selling over 3 million copies, and played by 10 million players. ▪ Developed by CI Games’ internal studio, Hexworks ▪ Significantly increased AAA production values in dynamically growing
Slide 23: Third Owned IP: Survive
THIRD OWNED IP: SURVIVE WHY SURVIVAL GENRE? ▪ Highly popular genre with broad global appeal. Low-mid risk with high potential reward ▪ Natural expansion of the portfolio, clear audience cross over with SGW and LotF franchises EXTERNAL STUDIO WORKING IN COOPERATION WITH CI GAMES’ KEY TALENT ▪ CI Game
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Slide 25: United Label
UNITED LABEL Ambitious, Analytical, Quality-Driven 91% 84% ▪ Eldest Souls, a pixel-art boss-rush game released in July 2021, broke even in 2 weeks thanks to high-critical acclaim and a successful influencer-led marketing campaign ▪ United Label’s third title, Tails of Iron, a stunning action-RPG adv
Slide 26: 2. Team
2. TEAM
Slide 27: An Internationally Distributed Team
AN INTERNATIONALLY DISTRIBUTED TEAM UNITED KINGDOM Key management operates from multiple geographic locations resulting Sam Sadeghi, VP Global Sales Darren Newnham, CEO United Label in further internationalization of the company Ryan Hill, Marketing Director Rhys Twelves, Technical Director, SGW & L
Slide 28: International Development Structure
INTERNATIONAL DEVELOPMENT STRUCTURE Attracting international development talent SURVIVE PROJECT Hexworks Underdog Studio CI Games & BatFields Internal team size: 62 people Internal team size: 48 people External Team & CI Key Talent 34 Spain 34 Poland U.K. U.K. 11 Romania 2 U.K Spain Spain 6 U.K. 3 S
Slide 29: Sales & Marketing Team
SALES & MARKETING TEAM Building a division with a global reach SALES MARKETING Team Size Team Size 5 People 7 People 2 U.K. 5 U.K. 1 U.S. 2 Poland 2 Poland As of December 31, 2021. 29
Slide 30: Headcount by Function
HEADCOUNT BY FUNCTION 12 21 Sales & Marketing Finance & Admin Development LOFT & SGW* 124 As of December 31, 2021. * Includes team of 16 dedicated to Quality Assurance, centralized for all development projects. 30