Stillfront Group Ab · OMXSTO:SF

Stillfront Group Ab — Merger or Acquisition (September 2020)

10 slides from Stillfront Group Ab's merger presentation, Sep 18, 2020

  1. Slide 1: Acquisition of Nanobit

    Acquisition of Nanobit September 18, 2020 1

  2. Slide 2: Important information

    IM P O RTA NT INF O RM AT IO N NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, WITHIN OR TO THE UNITED STATES, THE UNITED KINGDOM, AUSTRALIA, HONG KONG, JAPAN, CANADA, SWITZERLAND, SINGAPORE, SOUTH AFRICA OR NEW ZEALAND OR ANY OTHER JURISDICTION WHERE THE D

  3. Slide 3: Nanobit – a Croatia based mobile games developer

    N A N O B IT – A C R O AT IA B A S E D M O B ILE G A M E S D E V E LO P E R NANOBIT AT A GLANCE FOUNDERS • Founded 2008, Nanobit is a mobile gaming studio based in Zagreb, Croatia • Focus on narrative lifestyle simulation role playing games (RPGs) targeting 18-34 Alan Sumina Zoran Vučinić yrs. femal

  4. Slide 4: A history of strong growth and successful game releases

    A H IS TO RY O F S T R O N G G R O W T H A N D S U C C E S S F U L G A M E R E LE A S E S 2020 Tabou Stories released on App Store and Google 2015 Play, more than 8m 2008 Hollywood Story downloads to date, Nanobit founded in 2011 released on App Store Zagreb, Croatia, by Nanobit’s first iOS and Goog

  5. Slide 5: Strategic rationale and synergies

    STRATEGIC RATIONALE AND SYNERGIES Adds rapid growth and further High development and diversification to the portfolio synergy potential • More than 145m cumulative downloads to date, 5m MAUs, 500k • Deep know-how and long experience of targeting female players DAUs as per September 2020 • Opportunit

  6. Slide 6: Financial highlights Nanobit

    F IN A N C IA L H IG H LIG H T S N A N O B IT COMBINED STILLFRONT REPORTED AND NANOBIT NANOBIT IFRS NET REVENUE & ADJ. EBIT* COMMENTARY IFRS NET REVENUE & ADJ. EBIT H1 2020 • Nanobit reported approx. SEK 325m 325 in net revenue and approx. SEK 60m Adj. EBIT in H1 2020 • Adds approx. 17.2% of 325 Sti

  7. Slide 7: Forecast & implied valuation

    F O R E C A S T & IM P LIE D VA LU AT IO N NANOBIT FY 2020 FORECAST RANGE I M P L I E D VA L U AT I O N 1,2 NET REVENUE & ADJ. EBIT MARGIN1 • Adj. EBITDA multiple of 6.4x NET REVENUE • Attractive deal-terms in line with previous acquisitions 600 640 ADJ. EBIT MARGIN • Valuation should be seen in the

  8. Slide 8: Transaction structure

    T R A N S A C T IO N S T R U C T U R E DEAL SUMMARY The transaction will be executed in two tranches: • Tranche 1: 78% of the shares in Nanobit will be purchased for: • Approx. USD 100 million on a cash and debt free basis of which: • 70% in cash • 30% in newly issued Stillfront shares at approx. US

  9. Slide 9: Our ambition: Building the leading free-to-play powerhouse

    O U R A M B IT IO N Building the leading free-to-play powerhouse Building a platform for High-quality Operational Providing predictable creating long life-cycle X-platform games for excellence combining high profitable growth digital entertainment a broad audience Entrepreneurship, Scale and Structu

  10. Slide 10: Stillfront

    STILLFRONT

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