Ten Square Games Sa · GPW:TEN
Ten Square Games Sa — Q4 2024 Earnings Presentation
39 slides from Ten Square Games Sa's earnings presentation, Mar 25, 2025
Slide 1: Q4 & 2024 Results Presentation
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Slide 2: Q4 & 2024
O04 & 2024
Slide 3: 2024 in TSG: financial resilience despite market headwinds
2024 in tsg: financial resilience despite market headwinds Consistent distribution Profitability Strong cash generation of profits to shareholders Adjusted EBITDA Cash flow from operating activities PLN M PLN M PLN MLN 14.6 MLN Net profit Q4 2024 99.9 MLN 28.4 MLN Bookings Q4 2024 Adjusted EBITDA Q4
Slide 4: TSG on the transforming market
tsg on the transforming market Breakout of Covid-19 & Hunting Clash launch Wings of Heroes launch & investment in Gamesture 2024 Focus on main titles & restructuring ■ reviewing all products & processes to identify Acquisition barriers for TSG’s growth of Rortos ■ looking for experienced experts to
Slide 5: Product Performance Update
PRODUCT PERFORMANCE UPDATE
Slide 6: Q4 2024/Q1 2025 Focus on player engagement
Q4 2024/Q1 2025 Focus on player engagement Bookings and marketing expense (PLN M) ■ Main focus of the team in Q4 2024 was on improvement of quality of user experience and LiveOps operations based on feedback from users. There were 3 new fisheries: Bay of Fires in Tasmania, M PLN Caribbean, and Hokka
Slide 7: Fishing and Hunting Clash: clear roadmap to growth in 2025
Fishing and hunting clash clear roadmap to growth in 2025 Q4 2024 / Q1 2025 Q2 2025 Focus on engagement Focus on monetization main focus in product strategy 2025 segmentation divide player base into distinct groups based on their behavior, engagement level, spending habits, or preferences personaliz
Slide 8: Flight Simulation Captures a Bigger Share of TSG's Bookings
Flight Simulation Captures a Bigger Share of TSG’s Bookings TSG’s flight simulation segment grows fast due to consistent growth in Wings of Heroes and record high bookings in Real Flight Simulator TSG GROUP’s 2024 BOOKINGS Wings of Heroes PLN 398.1 MLN 2024 Bookings PLN 19.1 MLN + 66.1% y-o-y Prospe
Slide 9: Wings of Heroes flying high with consistent growth
Wings of Heroes flying high with consistent growth ■ Growth of bookings by 25.7% q-o-q in Q4’24; in 2024 bookings grew by 66.1% y-o-y. ■ In Q4 2024 the team focused on building monetization depth of the game introducing new upgrade system with plane traits and rarities. ■ Consistent increase in UA s
Slide 10: Flight Simulation Captures a Bigger Share of TSG's Bookings
Flight Simulation Captures a Bigger Share of TSG’s Bookings Bookings 2024 quarterly bookings in Real flight Simulator Real flight Simulator MLN PLN Real Flight Simulator 2024 Bookings 20.4 MLN PLN + 12.4% r/r Date of RFS offers a wide selection of The only game aircraft, detailed airports, live glob
Slide 11: Update on Prototype Development
UPDATE ON PROTOTYPE DEVELOPMENT
Slide 12: Exploring Growth Opportunities with Controlled Investments
Exploring Growth opportunities with Controlled Investments 2 prototypes in advanced testing; TROPHY HUNTER real combat with each completed stage of simulator tests projects prove their market feasibility. Free-to-play Subscription based Approach limiting financial risk Segment: hunting/shooter Segme
Slide 13: TSG Store
TSG STORE
Slide 14: TSG Store's record high share in Fishing Clash bookings
TSG STORE’s record high share in fishing clash bookings Fishing Clash approaching 21.2% 25% objective record high share of TSG Store in Fishing Clash bookings 21.2% Improved purchasing process Introduction of a unique currency available exclusively in the store – Fish Bucks Incentive programs promot
Slide 15: TSG Store: new initiatives to further boost growth
TSG STORE new initiatives to further boost the growth TSG Store’s % share in Group’s bookings 14.8% share of TSG Store bookings (December 2024) share of TSG Store grew in both product: Fishing Clash & Hunting Clash New shop design for Fishing Clash in progress A series of store improvements to offer
Slide 16: Financial Results
FINANCIAL RESULTS
Slide 17: Cost discipline, Growth of Adjusted EBITDA & Net Profit
cost discipline, Growth of Adjusted EBITDA & Net Profit PLN m Q1’23 Q2’23 Q3’23 Q4’23 2023 Q1’24 Q2’24 Q3’24 Q4’24 2024 1 2.3% q-o-q decrease in bookings, due to focus on engagement features in main Revenues from sales 117.4 104.9 105.6 108.1 436.0 100.1 98.0 94.0 94.4 386.5 products and lower UA ex
Slide 18: Cash flow generation with a strong cash pool
Cash flow generation with a strong cash pool M PLN Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Adjusted EBITDA 27.6 21.9 33.7 35.3 27.5 27.3 26.5 28.4 Net Cash Flows from Operating 29.9 28.6 32.5 30.5 32.4 26.8 28.1 26.5 Activities Net Cash Flows from Investing (14.7) (9.5) (2.0) (0.3) (1.4) (12
Slide 19: TSG's Commitment to Maximize Shareholders Returns
TSG’s COMMITMENT TO MAXIMIZE SHAREHOLDERS RETURNS
Slide 20: A record-high dividend proposal
the highest dividend yield ratio on the market A record-high dividend proposal demonstrating TSG’s commitment to shareholders 20%** PLN 100.0 M dividend yield PLN 15.73* to be paid out to shareholders in the form of dividend in 2025 upon approval by General Meeting of Shareholders dividend per share
Slide 21: TSG in 2025 & Beyond
TSG IN 2025 & BEYOND
Slide 22: 2025: on the path to turnaround
2025: on the path to turnaround Stabilizing the performance of Accelerating growth of Adding new game(s) & to the portfolio Final decision on the future of Trophy Hunter Personalisation of user experience & offers Expanding game modes to enhance & Real Combat Simulator to improve player retention an
Slide 23: 2026 & beyond long-term vision
2026 & beyond long-term vision Expanding Market Reach & Strengthening Portfolio Strategically targeted acquisitions to strengthen the portfolio Adding new games through a mix of in-house development & M&A Replicate the success of FC and HC with new projects Continued distribution of profits to share
Slide 24: New 2025-2029 MSOP Proposal
New 2025-2029 MSOP Proposal Fueling Growth & Maximizing Shareholder Value 5 year incentive plan to support sustainable 2 KPIs Beneficiaries growth of TSG Group ■ MSOP strictly aligns ■ Financial component: ■ Key personnel management’s goals with Achievement of Adjusted shareholder interests EBITDA t
Slide 25: Investor's Calendar
INVESTOR’S CALENDAR
Slide 26: Investor's calendar
Investor’s calendar Company news flow: ■ Q1 2025 Sales Update – early April 2025 ■ Annual General Meeting of Shareholders - May 2025 ■ Q1 2025 Financial report - May 19th, 2025 Investors’ conferences: ■ mBank: meetings with investors - April 8th, 2025 ■ 29 WallStreet conference - May 23rd, 2025 ■ ER
Slide 27: Q&A Session
O&A SESSION
Slide 28: Contact details
Contact details: Nina Graboś – IR, PR & ESG Director nina.grabos@tensquaregames.com
Slide 29: Financial Results
FINANCIAL RESULTS
Slide 30: Profit and loss report
Profit and loss report Selected positions in k PLN Q1’23 Q2’23 Q3’23 Q4’23 2023 Q1’24 Q2’24 Q3’24 Q4’24 2024 Revenues from sales 117,450 104,932 105,572 108,122 436,076 100,118 97,998 93,979 94,357 386,543 Bookings 123,593 101,227 110,399 108,463 443,682 99,661 96,230 102,306 99,939 398,136 Fishing
Slide 31: Ten Square Games group: team
Ten Square Games group: team 324 TSG group people Source: Company’s data as of 31 December 2024; MJ Evergreen: Let’s Fish, Wild Hunt, Airline Commander Other games: Rortos, Trophy Hunter Shared serviced related to games Customer support, Localization, Marketing, Analysis, R&D 31
Slide 32: Balance sheet
Balance sheet Selected positions in k PLN* 31.03.23 30.06.23 30.09.23 31.12.23 31.03.24 30.06.24 30.09.24 31.12.24 ASSETS Fixed assets 297,613 279,861 285,981 215,778 214,234 212,420 208,412 206,436 Receivables 41,096 31,606 36,293 38,937 36,253 33,742 32,760 33,155 Cash and cash equivalents 140,249
Slide 33: Cash flow report
Cash flow report Selected positions in k PLN Q1’23 Q2’23 Q3’23 Q4’23 2023 Q1’24 Q2’24 Q3’24 Q4’24 2024 OPERATING ACTIVITIES Profit/loss before tax (16,022) 10,049 23,205 (0,184) 17,048 20,720 23,266 13,888 16,227 74,102 Total adjustments 49,203 9,273 11,372 27,985 97,833 13,803 (1,784) 16,397 12,627
Slide 34: Method of determining adjusted EBITDA
Method of determining adjusted EBITDA Selected items of the P&L Statement in k PLN Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Operating profit IFRS (14,414) 9,639 25,032 (16,739) 19.108 23,278 15,607 18,247 Amortisation +4,978 +5,039 +4,969 +4,809 +4,506 +4,429 +3,953 +3,873 Write-down for impa
Slide 35: General and administrative costs
General AND administrative costs General administrative costs (PLN k) Q1’23 Q2’23 Q3’23 Q4’23 2023 Q1’24 Q2’24 Q3’24 Q4’24 2024 Recurring costs 10,573 7,510 6,454 6,860 31,398 6,288 6,905 6,453 6,554 26,201 Salaries, subcontractor services 4,535 3,683 3,207 3,070 14,495 3,039 3,011 3,081 2,749 11,88
Slide 36: PLN 385 M distributed to shareholders in the form of dividend
History of profit DiSTRIBUTION TO shareholders* PLN 385 M distributed to shareholders in the form of dividend (PLN 252 M) and buyback (PLN 133 M) till 2024 TSG’s Board recommendation to pay out PLN 100.0 M in the form of dividend *TSG became publicly listed company in May 2018. Presented profit dist
Slide 37: Accounting principles for revenues – IFRS 15
Accounting principles for revenues – IFRS 15 Virtual currency ■ Payment -> a player purchases virtual currency Bookings Sales revenue ■ Revenue -> the player uses the virtual currency to purchase a virtual goods (e.g. rods, lure packs) +/ - ■ Deferred revenue -> unused balance of virtual currency bo
Slide 38: Marketing expenses policy
Marketing expenses policy Marketing expenses „We invest in marketing provided we get positive returns throughout user lifetime” Marketing expenses model cumulative approach ■ The Group invests in marketing at point „0”. Cohort acquired in this period analyzed throughout user lifetime (period „0” to
Slide 39: Legal disclaimer
Legal disclaimer ■ Neither this presentation (the “Presentation”, references to which shall be deemed to include any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further enquiries) nor any copy of it nor the information contained