Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Investor Day (March 2019)
22 slides from Modern Times Group Mtg Ab Class A's investor day presentation, March 2019
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY March 2019
Slide 2: Company Snapshot
COMPANY SNAPSHOT Founded 2007 400+ employees in >12 years of consecutive In Germany Hamburg growth > 30 language versions 7 Live 756m hours games playtime in 2018
Slide 3: Business Model Cross Platform
BUSINESS MODEL CROSS PLATFORM Daily Active User share per platform 12% 32% 56% Browser Mobile Cross-Platform FY 2018
Slide 4: Mobile Market Top-10 Genres
MOBILE MARKET TOP-10 GENRES 23% 16% 16% 15% 12% 8% 4% 3% 1% 1% Strategy RPG Puzzle Casino Simulation Action Sports Adventure Racing Card Game Worldwide without Japan, China and South Korea. Based on InnoGames custom assignment of top-2000 apps to unique genres.
Slide 5: Focus Genres
FOCUS GENRES Strategy New New Game Game Other Resource Management New Game Other Strategy MMO City Builder Breeder Simulation Puzzle Action-Build- and-Raid Battle Arena Heroes Collection Simulation 6
Slide 6: Our Hits
OUR HITS Multiple €100m+ lifetime revenue hits in strategy and simulation genres for both browser and mobile Strategy MMO Strategy MMO City Building Strategy Fantasy City Builder Launched 2003 Launched 2010 Launched 2012 Launched 2015 Lifetime revenues – €100M+ Lifetime revenues – €100M+ Lifetime re
Slide 7: Forge of Empires
FORGE OF EMPIRES Journey through the ages, from Stone-Age to the Future Started as Flash-based browser based game Nowadays available in HTML5 in all modern browsers plus on iOS and Android Cross platform strategy: One login for all platforms
Slide 8: Player Stats Forge of Empires
PLAYER STATS FORGE OF EMPIRES Average player age Gender split Payer share amongst active 40 years ♂ 74% ♀26% 9% Daily sessions per player Average session length Players per primary platform 5 sessions 12 minutes 44% 23% 33% FY2018
Slide 9: Live Ops Forge of Empires
LIVE OPS FORGE OF EMPIRES Always fresh, always new: Bi-weekly updates Great long-term motivation: +5 years of content, +1.000 different buildings Holistic lifecycle view: Data-driven CRM and offer management Analytics Tech Ops CRM
Slide 10: Revenue Growth Forge of Empires
REVENUE GROWTH FORGE OF EMPIRES Steady revenue growth over more than 6 years In-Game Events cause revenue spikes Release exciting new content to fill “event gaps” Revenue
Slide 11: Longevity of Other Portfolio
LONGEVITY OF OTHER PORTFOLIO Revenue 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Time (in quarters) 10+ years Quarterly revenues since game launch
Slide 12: New Games
NEW GAMES Heroes Collection Strategy Game MMO Strategy Game USP: Turn based Tactical Battles USP: Mighty guardians to collect and level up Acquired from Wooga in 2017 Softlaunched in 2019-Q1 Relaunched in 2018-Q3 Promising KPIs Improving Player Journey beyond Day 60 Marketing to be s
Slide 13: Stage Gate Process
STAGE GATE PROCESS Central Stage Gate Process and agile teams Core elements shared across games Only top games are launched Milestone-based process in <2.5 years Budget ca. 5m EUR
Slide 14: Product Lifecycle Model
PRODUCT LIFECYCLE MODEL PRODUCE INTRODUCE GROW ESTABLISH DECLINE New Game New Game New Game Positive profits High profit margins Highest profit margins No revenues High marketing invest Strong marketing invest Little marketing invest No marketing invest Cost budgets Strong revenue grow High & growin
Slide 15: Marketing: Acquiring Players That Drive Revenues
MARKETING: ACQUIRING PLAYERS THAT DRIVE REVENUES Campaign Profit Lifetime Value Marketing Costs Close loop campaign optimization along the customer journey Optimization on “micro” level Considering campaign meta-data (placement, targeting, costs, CTR, CVR etc.) and in- house KPIs (player retention
Slide 16: Longevity and Stability of Cohorts
LONGEVITY AND STABILITY OF COHORTS Cohort Development 1st HY 2016 25% 95% overall accuracy in predicting Lifetime Value (LTV) Lifetime Value (24M) 20% 46% 24% 16% 14% 12% Ensuring profitable marketing investments based on LTV 15% Fast payback/cash conversion cycle 10% with nearly 50% payout wi
Slide 17: Three Pillars of Successful Marketing
THREE PILLARS OF SUCCESSFUL MARKETING TECHNOLOGY PROCESS ALGORITHMS ✓ Reduced campaign ✓ Transparent and robust ✓ Reducing analysis management efforts workflows efforts ✓ Scalability for new ✓ Standardized interfaces ✓ Scalable systems partners and products between departments ✓ Advantages of Self-
Slide 18: Future Growth
FUTURE GROWTH The Rough Riders @) Mounted-Ranket 5 © CE ‘soles @ Damage 89 20 © Hitpoints 358 ‘@ Offense 100 Bonus Targets OO }) @ Bonus Damage 20% { QPhysialvetense 158 @ Magic Defense 92 4 Critical chance 0% fF critical Damage ° 4 | @Range 1 4! Moves
Slide 19: Mobile as Primary Driver for Growth
MOBILE AS PRIMARY DRIVER FOR GROWTH Browser revenues have been growing every year Mobile growth stronger: +37% in 2018 Appstore Fees of 30% Typically lower ROAS on our marketing investments for mobile games These effects are considered Efficient operations, economies of scale InnoGames
Slide 20: Three Pillars of Success
THREE PILLARS OF SUCCESS GROW CREATE BUY our successfull games on all new mobile existing games which platforms games fit to our portfolio
Slide 21: Summary
SUMMARY Focus on a strong team and best talents Sustainable and data-driven strategy Great game portfolio combining growth and profitability Proven track record to create cross platform games and successful transition to mobile Future growth driven by mobile expansion and browser consolidation
Slide 22: We're here to make great games for our players
We’re here to make great games for our players – with high quality virtual worlds that link millions of people around the world. Anywhere, anytime.