Enad Global 7 Ab · OMXSTO:EG7
Enad Global 7 Ab — Q2 2020 Earnings Presentation
19 slides from Enad Global 7 Ab's earnings presentation, Aug 27, 2020
Slide 1: Investor Presentation Q2 2020
INVESTOR PRESENTATION Q2 2020
Slide 2: EG7 in short
EG7 IN S HO R T For a number of years we have built an eco-system that is ready and that no other gaming group controls, namely: 1. Petrol, the number one gaming agency in the Western World that we use both externally and internally. o That is why Activision, Embracer, Ubisoft among other repeat cli
Slide 3: History and progress of M&A
HISTORY AND PROGRESS OF M&A We have used SEK 300 M in cash for acquisitions which has given us a repeat EBITDA of SEK 100 M before synergies. Add-on acquisition X Add-on acquisition 2 Add-on Acquisition targets become acquisition 1 significant shareholders¹ 4.6x EV/EBITDA multiple 4.6x EV/EBIT multi
Slide 4: EG7 Platform: Value chain
EG7 P L ATF O R M VALUE CHAIN – WE CONTROL THE VALUE CHAIN DEVELOPING MARKETING PUBLISHING DISTRIBUTING WE TAKE THE COMPANIES WE ACQUIRE TO A NEW LEVEL
Slide 5: History & Financials
HIS TO R Y & F IN AN C IAL S +33% 681.2 mSEK Revenue per Year (Pro-forma Revenue) Revenue Growth Big Blue per Year Bubble acquired +573% 512.4 mSEK (Pro-forma Revenue) Petrol, Soldout and Antimatter acquired Artplant Contract with +586% Acquisition Fatshark Consulting in Contract worth 76.1 mSEK Con
Slide 6: Divisions: Games and Services
2 DIV IS IO N S GAMES SERVICES • Development of own titles • Creative marketing studio with 40+ ongoing marketing projects. Previous projects - Call of Duty Warzone, • Five independent studios with unique expertises. Far Cry 6 and Assassins Creed Valhalla. • 10+ fully owned IPs. • 15+ current projec
Slide 7: Group companies and management
BIG BLUE BUBBLE HQ ARTPLAN T NORW AY DEVELOPER & GAME DEVELOPER TOADMAN HQ PUBLISHE R GAME DEVELOPER BIG BLUE BUBBLE ANTIMATTE R GAMES ARTPLAN T RUSSIA GAME DEVELOPER GAME DEVELOPER PETROL ADVERTISING MARKETING SOLD OUT TOADMAN BERLIN PUBLISHE R & GAME DEVELOPER DISTRIBU TOR DAMIR SLOGAR JAMES CATO
Slide 8: Solid track record and pipeline
S O L ID TR A C K R EC O R D A N D P IP EL IN E 150+ PREVIOUS GAME 25+ CURRENT GAME 40+ ONGOING MARKETING PROJECTS 1 PROJECTS 1 CAMPAIGNS 1) Development, publishing, distribution
Slide 9: Released in 2020
S EL EC TIO N O F G A M ES W E DEV EL O P , DIS TR IBUTE, P UBL IS H A N D M A R KET RELEASED IN 2020 RELEASED RELEASED RELEASED RELEASED RELEASED RELEASED RELEASED RELEASED
Slide 10: To be released in 2020-2022
S EL EC TIO N O F G A M ES W E DEV EL O P , DIS TR IBUTE, A N D P UBL IS H TO BE RELEASED IN 2020-2022 ”HATHOR” DISJUNCTI O N GESTALT 10+ 40+ BLOCK N MARKETING EVILVEVI L LOAD 2 UNDISCLO SED CAMPAIGNS PROJECTS AND RELEASES
Slide 11: EG7 as an investment
EG7 AS AN INVESTMENT
Slide 12: Q recap
Q 2 2 02 0 R EC AP • Net revenue grew by more than 1000% compared to Q2 2019. Divided the Company into divisions Games and Services. • Acquisition of Canadian game developer Big Blue Bubble. • Over 25 gaming projects in the pipeline and over 40 planned marketing campaigns for Petrol. • Several game
Slide 13: Big Blue Bubble acquisition
4.6x 20Y F2P UP-FRONT EBITDA MULTIPLE EXPERIENCE ADDED 3.5M CAD DIVERSIFIES TTM EBITDA REVENUE STREAMS WITH F2P PIPELINE AND SYNERGY POTENTIAL. ONCE WE USE SOLD OUT, PETROL, OUR DEVELOPMENT TEAM IPS, AND THEIR MONETIZING TEAM, THE SYNERGIES WILL BE SIGNIFICANT.
Slide 14: Aligned incentives between management and investors
AL IGN ED IN C EN TIV ES BETW EEN M AN AGEM EN T AN D IN V ES TO R S SHAREHOLDER TYPE OF INVESTOR SHARES CAPITAL % 8.60% Robin Flodin Co-Founder 3,817,713 Dan Sten Olsson with family and trust Investor, Represented on Board Level 3,625,000 8.16% Rasmus Davidsson Co-Founder 2,872,743 6.47% Avanza Pen
Slide 15: Strong reasons to invest
7 KEY IN V ES TM EN T HIGHL IGHTS STRONG REASONS TO INVEST 1. World-class eco-system: number 1 marketing in Petrol, number 1 publishing in Sold Out. World class developers. 2. Proven shareholder value through acquisitions. SEK 300M cash used for acquisitions has generated SEK 100M of annual EBITDA.
Slide 16: Next logical steps for EG7
KEY IN V ES TM EN T HIGHL IGHTS NEXT LOGICAL STEPS FOR EG7 1. 2. 3. M&A PIPELINE GAMES TO BE RELEASED COMPLETE ECO-SYSTEM M&A pipeline is stronger Our pipeline of 10+ games Now that the eco-system is than ever. to be released, including complete, we are very million copy sellers like IGI, excited ab
Slide 17: Thank you
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Slide 18: Appendix: Income statement - Group
APPENDIX 1 INCOME STATEMENT - GROUP QUARTER ACCUMULATED FY 2019 2020-04-01 2019-04-01 2020-01-01 2019-01-01 2019-01-01 2020-06-30 2019-06-30 2020-06-30 2019-06-30 2019-12-31 (KSEK) 3 months 3 months 6 months 6 months 12 months Net revenue 138,027 13,618 293,505 28,445 151,644 Own work capitalized 10
Slide 19: Appendix: Balance sheet - Group
AP P EN DIX 2 – BAL AN C E S HEET GR O UP (KSEK) 2020-06-30 2019-06-30 2019-12-31 ASSETS Non-current assets Intangible non-current assets 470,986 208,432 510,210 Tangible non-current assets 8,067 7,987 8,999 Financial non-currents assets 2,212 1,288 2,534 Total non-current assets 481,265 217,707 521