Slide 1: Unity and ironSource
Na Unity >< © ironsource
Slide 2: Safe Harbor: Forward-Looking Statements
UNITY INVESTOR RELATIONS 2 Safe Harbor Cautionary Statement Regarding Forward-Looking Statements This presentation includes forward-looking statements. These forward-looking statements generally can be identified by phrases such as “will,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimate
Slide 3: Safe Harbor: Non-GAAP Financial Measures
UNITY INVESTOR RELATIONS 3 Safe Harbor Non-GAAP Financial Measures This presentation includes non-GAAP financial measures, including Adjusted EBITDA of Unity and Non-GAAP Net Income, Adjusted EBITDA and Adjusted EBITDA Margin of ironSource. These non-GAAP financial measures are in addition to, and n
Slide 4: Today's participants
UNITY INVESTOR RELATIONS 4 Today’s participants John Riccitiello Tomer Bar-Zeev Luis Visoso CHIEF EXECUTIVE OFFICER CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER UNITY IRONSOURCE UNITY
Slide 5: Vision: majority of content will be real time 3D
UNITY INVESTOR RELATIONS 5 VISION We believe the majority of the world’s content will be real time 3D. Only a fraction of creators succeed in the creator economy today. We are combining Creation and Growth to increase creator success and transform “luck” to science.
Slide 6: Combination highlights
UNITY INVESTOR RELATIONS 6 Unity + COMBINED PLATFORM => ironSource Better games and better user acquisition, science combination highlights THREE SYNERGIES LEAD TO $1B Adjusted EBITDA run rate by end of 2024 BALANCED COMPANY Half Creation related, half Growth (ads) related Note: Management projectio
Slide 7: Our platform evolution
UNITY INVESTOR RELATIONS 7 Our platform evolution Traditional model Creation Devs and artists Growth UA experts and operators Unity - ironSource immediate model Creation Devs and artists Growth UA experts and operators Unity - ironSource fully synergized model Continuous Creation & Growth Creators,
Slide 8: ironSource complements and completes the Unity platform
UNITY INVESTOR RELATIONS 8 ironSource complements and completes the Unity platform Combined capabilities Creation tools Gaming services Publishing engine User acquisition Monetization Analytics & player Unity & iS Ads Unity Editor Unity Parsec Supersonic Unity & iS Ads acquire engagement monetize Cr
Slide 9: Fully synergized platform vision
UNITY INVESTOR RELATIONS Fully synergized platform vision Data flowing from the growth CREATION platform into the creation process makes the game better Continuous Improvements in the game drive DATA Creation & Growth more financial success TEST - LEARN - ITERATE Greater data scale makes the GROWTH
Slide 10: ironSource at a glance
UNITY INVESTOR RELATIONS 10 ironSource at a glance Tel Aviv 2010 1,400 (1) HEADQUARTERS FOUNDED HEADCOUNT $623M (1) $213M (1) 34% (1) LTM REVENUE LTM ADJUSTED EBITDA LTM EBITDA MARGIN (60% YOY growth) 98% (2) 153% (1) 397 (1) DOLLAR-BASED CUSTOMERS CONTRIBUTING GROSS RETENTION NET EXPANSION RATE >$1
Slide 11: Fully synergized platform vision
UNITY INVESTOR RELATIONS Fully synergized platform vision Data flowing from the growth CREATION platform into the creation process makes the game better Continuous Improvements in the game drive DATA Creation & Growth more financial success TEST - LEARN - ITERATE Greater data scale makes the GROWTH
Slide 12: End-to-end integrated software platform
UNITY INVESTOR RELATIONS 12 Unity + ironSource moving to a more balanced business model CREATION Leading creation platform for games and digital twins ~50% End-to-end integrated software platform Established platform foundation - Unity Editor, Unity Gaming Services, CREATION Unity Wētā Digital, Unit
Slide 13: Monetization is critical to creator success
UNITY INVESTOR RELATIONS 13 Monetization is critical to creator success — Monetization, in particular advertising, are critical to the creator economy — Performance-based ads in particular are central to the gaming ecosystem and we believe they will continue to grow — Ads are a data-driven, scale bu
Slide 14: Immediate synergies for customers and Unity
UNITY INVESTOR RELATIONS 14 Immediate synergies for customers and Unity LevelPlay Data scale Supersonic mediation
Slide 15: Combined user data, scale and diversity drives greater creator success
UNITY INVESTOR RELATIONS 15 Combined user data, scale and diversity drives greater creator success Supersonic app installs to date Ads SDK MAUs 2B+ 3B+ Events ingested on a daily Devices integrated with Aura basis (includes ads and to date analytics) 1B+ Machine 50B+ Learning Apps monetized using So
Slide 16: Mediation: The ad supply and demand auction engine
UNITY INVESTOR RELATIONS 16 Mediation: The ad supply and demand auction engine Ad Ad supply Mediation demand ironSource + Unity Ad supply and demand auction Players Developers engine Ad Ad buyers & publishers networks & brands More relevant ads Drives more revenue for Fueled by greater data Drives h
Slide 17: Supersonic driving more big wins for the long tail
UNITY INVESTOR RELATIONS 17 Supersonic driving more big wins for the long tail Unity = ++ PROTOTYPES Publisher A Publisher B Publisher C Unity will bring more candidates from create and more data scale ironSource Turbo charging ironSource’s existing deployment funnel NON-LINEAR IMPROVEMENT IN WINS T
Slide 18: Combination is highly attractive to ironSource stockholders
UNITY INVESTOR RELATIONS 18 Combination is highly attractive to ironSource stockholders — Combines passionate teams with aligned vision — Dramatically improves outcomes for creators & ironSource stockholders developers to own approximately — Unleashes the full power of Unity’s creation tools 26.5% —
Slide 19: Combination highlights
UNITY INVESTOR RELATIONS 19 Unity + COMBINED PLATFORM => ironSource Better games and better user acquisition, science combination highlights THREE SYNERGIES LEAD TO $1B Adjusted EBITDA run rate by end of 2024 BALANCED COMPANY Half Creation related, half Growth (ads) related Note: Management projecti
Slide 20: Transaction summary
UNITY INVESTOR RELATIONS 20 Transaction summary -> All-stock transaction values ironSource at approximately $4.4B Transaction -> Pro forma ownership: approximately 73.5% Unity and approximately 26.5% ironSource consideration -> Each share of ironSource to be exchanged for 0.1089 shares of Unity -> U
Slide 21: Highly profitable and accretive transaction
UNITY INVESTOR RELATIONS 21 Highly profitable and accretive transaction Synergies Adjusted EBITDA $300M+ $1B Anticipated annual EBITDA Adjusted EBITDA run rate by end synergies by year 3 of 2024 Note: Management projections. Adjusted EBITDA includes net income, less income taxes, interest expense, d
Slide 22: Strong endorsement from Unity's largest investors
UNITY INVESTOR RELATIONS 22 Strong endorsement from Unity’s largest investors $1B investment “Silver Lake and Sequoia are both excited to continue to partner with Unity as they execute on the massive opportunity to help creators across both gaming and other verticals to build, power and monetize the
Slide 23: Share repurchase reduces dilution
UNITY INVESTOR RELATIONS 23 Share repurchase reduces dilution Share repurchase authorization Timing $2.5B 24 months as of transaction closing
Slide 24: The end-to-end platform powering the content and creator economy
UNITY INVESTOR RELATIONS 24 THE END-TO-END PLATFORM POWERING THE CONTENT AND CREATOR ECONOMY
Slide 25: Thank you
Thank you is) ironSource
Slide 26: Appendix
Appendix is) ironSource
Slide 27: ironSource LTM Reconciliation of GAAP to Non-GAAP financials
UNITY INVESTOR RELATIONS 27 ironSource LTM Reconciliation of GAAP to Non-GAAP financials ($K) From continuing operations, net of income taxes to Adjusted EBITDA LTM 3/31/22 (Unaudited) GAAP Income from continuing operations, net of income taxes $ 63,349 Add: Financial expenses, net 1,321 Income taxe