Slide 1: Presentation Q2 Report
Presentation Q2 Report August 26, 2016
Slide 2: Selected highlights Q2 report
Selected highlights Q2 report SF portfolio significantlystrengthened Simutronics investment – strategically important Adds a fifth studio in a new territory No of core brands increased by All time high Increases our core brands portfolio Revenues of 50% margin of SEK 23m 44% Adds state-of-the-art ca
Slide 3: Contents
Business Overview Strategy Contents Outlook 2016 Financials
Slide 4: Attractive and diversified games portfolio
Attractive and diversified games portfolio Launch in: 2009 Q2 2015 Q2 2016 Q1 2016 16% of group revenue 33% of group revenue <1% of group revenue Incl in Coldwood’s 31% of group revenue Still stable high revenues after 7 Most successful launch to date New grand strategy game based Launched F
Slide 5: Portfolio Revenue Mix
Portfolio Revenue Mix* • Systematic work with improving portfolio is key in our PLEX strategy Core Brands • The mix has significantly improved last 18 months • Number of brands is doubled to six • Higher levels with significant lower risk • Lower volumes in product largely compensated by others • Pr
Slide 6: Contents
Business Overview Strategy Contents Outlook 2016 Financials
Slide 7: Business strategy – 3 pillars
Business strategy – 3 pillars Our strategy has proven to be a powerful tool for reaching targets and achieving progress The strategy pillars have different purposes 1 2 3 P Portfolio of games Brands L Sales Sales Long life cycle games & Profits Profits E Engines for scalability Publishing X Organic
Slide 8: Contents
Business Overview Strategy Contents Outlook 2016 Financials
Slide 9: Financial targets
Financial targets Target net revenue by 2020: >SEK 300m Target mid-term EBITDA margin excl invest: 25–30% 2016: 2-4 Target portfolio expansion: 2017–2018: 4-6 per year 2019–2020: 5-7 per year 9
Slide 10: Current Position
Current Position Scalable Step-by-step better risk/reward Our business model Low marginal cost on producing and distributing Portfolio strategy reduces risk and stabilizes works… digital content revenue growth while capturing synergies Scalable development with game engines Combining Contracting/Roy
Slide 11: 2016 outlook – investments increase for continued high growth
2016 outlook – investments increase for continued high growth • Leverage our increased investment pace to develop our brand portfolio • Increase share of own brands and self-publishing What’s in focus • Improve our marketing ROI through new channels and increased life-time-value • Assessment of new
Slide 12: Contents
Business Overview Strategy Contents Outlook 2016 Financials
Slide 13: Evaluating potential move to Nasdaq main market small cap list
Evaluating potential move to Nasdaq main market small cap list Preparing for the possibility to move to main market 1 2 3 Organization and processes Accounting principles Market Cap and size • IR and market communication • Sales Accounting in IFRS • Already at median size • Board experience • Transp
Slide 14: Strong current financials
Strong current financials Net revenue (SEKm) • 46% net revenue growth Latest 12 months compared to FY 2015 83 • 114% growth 1H’16 over 1H’15 +46% • Growth mainly from CAGR +50% +96% 57 • Successful launch of Call of War • Strong growth in Coldwood 29 17 21 • 50% CAGR from 2012 to 2015 attributable t
Slide 15: Group performance rolling 12 months
Group performance rolling 12 months Rolling 12 month ATH for 19th consecutive month Our strategy has proven to be a powerful tool for performing a strong growth and margins with low volatility 15
Slide 16: KPI Highlights Q2
KPI Highlights Q2 Bytro Coldwood Power Challenge Simutronics** All Games All Games All Games All Games (June) • Revenues, SEKm 12.8 • Revenues, SEKm 7.8 • Revenues, SEKm 1.2 • Revenues, SEKm 1.1 • EBITDA* margin 55.6% • EBITDA* margin 65% • EBITDA* margin 0% • EBITDA* margin 48% • UAC, SEKm 3.9 (30%
Slide 17: Profit and Loss
Profit and Loss LTM • The increase in net revenues LTM is attributable to increased contracting fees in Coldwood and the successful launch of Bytro’s Call of War • Increase in 2016H1 strengthened by Coldwood royalties • The increase in net revenue and Expenses in 2014 is mainly attributable to the c
Slide 18: Cash flow
Cash flow • 2015 New issue strengthened cash position • Strong cash flow from operations • Finalization of Bytro acquisition and Simutronics acquisition have consumed cash 18
Slide 19: Financial position (Assets)
Financial position (Assets) • Intangibles increased as a result of acquisition of Simutronics and Bytro • Solid cash position 19
Slide 20: Financial position (Equity & Liabilities)
Financial position (Equity & Liabilities) • 63% book solidity as of June 30, 2016 • Increase in debts partly due to consideration to be paid to the sellers of Bytro 20
Slide 21: Thank you
Thank you