Ci Games S.a. · GPW:CIG
Ci Games — H1 2021 Earnings Presentation
35 slides from Ci Games's earnings presentation, Sep 2, 2021
Slide 1: CI Games – 2nd September 2021
Gi GAMES 2nd September, 2021
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 for
Slide 3: Our mission
Our mission is to continually develop both existing and new brands, renowned and enjoyed at a global scale. With the regular releases of genre-leading titles, celebrated for quality, creativity, and innovation, we strive to ensure financial performance and growth.
Slide 4: Corporate Strategy
CORPORATE STRATEGY A SOLID FOUNDATION, AN EVEN STRONGER FUTURE ▪ Creating globally-recognised titles for close to twenty years ▪ Developed a passionate and committed playerbase ▪ SGW franchise has sold over 12.5 million copies, while Lords of the Fallen recently surpassed the 3 million mark ▪ In 201
Slide 5: The Last 3 Years
THE LAST 3 YEARS 2018 marked a new chapter Shortly after, we commenced In 2018, the company founded United Label, a for the company; the CI Games development on SGW new publishing arm specialising in smaller but production model was Contracts. Released in Nov equally ambitious titles. Röki received
Slide 6: The Last 3 Years (continued)
THE LAST 3 YEARS Late 2019, we started Sniper Ghost Warrior Contracts 2, At the beginning of 2021, we We have begun to improve assembling a second studio, released on 4th June 2021. also established a new synergies between the Warsaw HEXWORKS, headquartered Delivering a 170% uplift in marketing divi
Slide 7: Years of developing AA+/AAA FPS & RPG Games
20 Years of developing 2 Evergreen IPs 15M+ Copies sold AA+/AAA FPS & RPG Games 5 Offices – Poland, 150+ Headcount 14 Years avg. experience Spain, UK, US, from management team Romania
Slide 8: 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 9: Seasoned Management Team
SEASONED MANAGEMENT TEAM Marek Tymiński Saul Gascon Tobias Heussner Cezar Virtosu Kenton Fletcher Founder & CEO Executive Producer (LOTF) Executive Producer (SGW) Creative Director (LOTF) Creative Director (SGW) Ryan Hill Darren Newnham Rhys Twelves Monika Rumianek Katarzyna Sermanowicz-Giza Marketi
Slide 10: A Global Team
A GLOBAL TEAM UNITED KINGDOM 5 Offices across Eastern/Western Europe and the US Marketing/Sales/Development UNITED STATES Sales POLAND Development/Finance/Admin SPAIN Development/Management ROMANIA Distributed Development: Development
Slide 11: Headcount by Function
HEADCOUNT BY FUNCTION 12 17 Sales & Marketing Finance & Admin Development 124 As of August 31, 2021.
Slide 12: Sniper Ghost Warrior Franchise
— Sd =) SS =) a o aad i ff ‘é GHOST WARRIOR FRANCHISE NI ci GAMES
Slide 13: Evergreen Tactical FPS Franchise
Evergreen Tactical FPS Franchise ▪ Launching in 2010, the SGW franchise is a series of open world first-person tactical shooters ▪ Players must navigate replayable sandbox areas in order to complete a range of predetermined missions and objectives as a highly trained elite sniper ▪ Immersive levels a
Slide 14: Evergreen Tactical FPS Franchise – sales and revenue share
0.5% 55 55 H1 2021 Evergreen Tactical FPS Franchise Rev. Percentage Self published by CI Games, the SGW 1.0% ▪ franchise now boasts 5 entries and has sold 12.5M+ units worldwide H1 2021 73 52 Rev. Percentage ▪ It is now the best-selling first person sniping franchise of all time 7.1% 64 59 ▪ Since th
Slide 15: SGW Contracts 2 launch performance
LAUNCHED IN JUNE 2021, AS OF LATE JULY 2021, SGWC 2 HAS ALREADY BROKEN EVEN, AND SOLD OVER 560,000 COPIES SINCE RELEASED ▪ SGW Contracts 2 was released 4th June on Xbox Series X/S, Xbox One, PS4 and PC. On 24th August, it was also released on PS5. ▪ As of August 31, 2021, it has sold over 560k copie
Slide 16: SGWC 2 launch metrics
// SALES INCREASE* /] METACRITIC SCORE // STEAM USER pea REVIEW RATING 170% 7498 = #83 *10 DAYS POST LAUNCH IN COMPARISON TO SGWC2 // TWITCH STREAMERS // PEAK CONCURRENTS // TWITCH LIVE VIEWS (J2,400+ 285,000: @©4.7m+ // VIDEOS // YOUTUBE VIEWS // IMPRESSIONS/REACH 42,000% @16m+ ©300m-
Slide 17: Slide 17
Slide 18: Lords of the Fallen
LORDS OF THE FALLEN Third-Person Action-RPG ▪ Co-developed and published by CI Games, Lords of the Fallen was released in October 2014 across PlayStation, Xbox, and PC ▪ It has achieved 3M+ lifetime sales, and continues to sell well seven years later ▪ A third-person action RPG featuring AAA product
Slide 19: HEXWORKS
x ci GAMES
Slide 20: HEXWORKS Mission Statement
MISSION STATEMENT HEXWORKS is a new gaming studio founded by CIGames early 2020, conceived with remote work in mind. It boasts a Highly Experienced Team of senior, multicultural developers from Catalonia, Spain, Britain, France, Romania, Germany, Ukraine, Denmark and America. In addition to embracin
Slide 21: HEXWORKS: A Modern Production
HEXWORKS A MODERN PRODUCTION SECURING GAMEPLAY ACHIEVING AN EPIC NARRATIVE ▪ Our core features are developed within a Strike teams structure ▪ Full team engaged with world building ▪ These teams are built with experts fully dedicated to work on the ▪ From writer to level design, to art, to combat de
Slide 22: HEXWORKS Team and Geographic Locations
HEXWORKS THE TEAM AND GEOGRAPHIC LOCATIONS ▪ Team has been built from the ground up with the best fitting experts to create an Action RPG ▪ Our remote work approach has allowed us to hire the best talent, freely from their capability to relocate ▪ Main Locations: Spain, Romania, UK, France ▪ Average
Slide 23: Slide 23
Slide 24: United Label release timeline
JULY 2020 JULY 2021 SEPTEMBER 2021 RELEASE DATE TBD
Slide 25: United Label
UNITED LABEL Ambitious, Analytical, Quality-Driven ▪ Founded in 2018, United Label is a publishing label dedicated UNITED DEVELOPMENT to empowering indie developers ▪ Specialises in supporting ambitious, high-quality titles that FULL GAME-CYCLE SUPPORT push genre boundaries ▪ Publicly listed on WSE
Slide 26: Financial Report
Gi GAMES FINANCIAL REPORT
Slide 27: Q2 2021 Financial Highlights
Q2 2021 FINANCIAL HIGHLIGHTS Net Revenue EBITDA Net Profit PLN 39.7m PLN 23.3m PLN 10.8m Quarterly Growth EBITDA Margin Net Profit Margin 317% 58.6% 27.3% Cash Position EPS PLN 20.2m PLN 0.06
Slide 28: H1 2021 Revenue Breakdown
H1 2021 REVENUE BREAKDOWN Revenue by Category H1 2021 Digital/Physical Revenues H1 2021 Console/PC Revenues H1 2021 Digital 65% New release 69% Console 49% Physical 33% Back catalogue 31% PC 51% Other revenue (licenses) 2%
Slide 29: Income Statement
INCOME STATEMENT PLNm KEY HIGHLIGHTS Q2 2021 H1 2021 ▪ Q2 2021 revenue totalled PLN 39.7m Net revenue from sales 39.7 49.2 ▪ Physical products represented 33% of total revenue in H1 Operating profit 14.8 17.3 2021. The Group expects to increase share of digital sales and therefore decrease production
Slide 30: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW PLNm KEY HIGHLIGHTS Balance Sheet 30 Jun 2021 31 Mar 2021 ▪ Intangible assets amounted to PLN 59.1m (45.8% of the total assets as of June 30, 2021) Cash and cash equivalents 20.2 25.7 ▪ The main items in intangibles were development Total assets 129.1 111.8 works on LotF 2
Slide 31: Financial Performance
FINANCIAL PERFORMANCE Historicals and 2021 Analyst Estimate* Summary Financials (PLNm) 2018 2019 2020 2021E* Revenue & EBITDA (PLNm) Net Revenue 22.0 47.5 46.0 86.6 COGS 17.3 29.0 26.7 39.6 Gross Profit 4.7 18.5 19.3 47.0 EBITDA 4.4 20.5 27.8 58.5 Net Income (22.7) (2.9) 7.1 31.4 * CI Games expects J
Slide 32: Peer Comparison 2021
PEER COMPARISON 2021 Market Valuation for Gaming Companies Gaming Companies Price HQ Mcap EV/Revenue EV/EBITDA P/E (in $) (in $M) LTM CY21E LTM CY21E LTM CY21E Poland CD Projekt 44.16 PL 4,449 7.1x 11.7x 13.7x 18.8x 15.6x 37.1x Ten Square Games 133.80 PL 972 5.2x 4.8x 16.5x 17.5x 21.1x 21.8x PlayWay
Slide 33: Strategic Roadmap
ci GAMES STRATEGIC ROADMAP
Slide 34: Q3/4 Highlights and Next Steps
Q3/4 HIGHLIGHTS ▪ Successfully launched SGW Contracts 2 on PS5, 24th August ▪ Eldest Souls launched on all platforms, 29th July, becoming profitable in just two weeks ▪ Further price promotions on SGW Contracts 2 and back catalogue in Q 3/4, to further monetise franchise ▪ Tails of Iron will release
Slide 35: Thank you
ci GAMES Thank you