Nazara Technologies Ltd. · NSE:NAZARA
Nazara Technologies — Investor Presentation (August 2024)
43 slides from Nazara Technologies's investor presentation, Aug 30, 2024
Slide 1: Nazara Technologies Limited
Nazara Technologies Limited Nazara TM August 30, 2024 To, Listing Compliance Department Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No. C/1. G Block, Dalal Street, Bandra -Kurla Complex, Bandra (East), Mumbai - 400
Slide 2: Investor Presentation August 2024
AUGUST 202 INVESTOR PRESENTATION
Slide 3: Investment highlights
IP-led organic growth: Established Inorganic Growth: Strong cash position Dominant market position in eSports, playbook for creating and leveraging + M&A pipeline + track record of sports content, and kids games with Intellectual Property to drive growth in acquiring companies and growing potential
Slide 4: Industry Overview
INDUSTRY OVERVIEW
Slide 5: Gaming industry larger than VOD, ePublishing and digital music combined
GAMING INDUSTRY LARGER THAN VOD, EPUBLISHING & DIGITAL MUSIC COMBINED VIDEO GAMING INDUSTRY TO CROSS USD 350 BN OVER NEXT FEW YEARS Gaming Industry Market Size (USD Bn) Video Game Market Size (USD Bn) 282.60 363.18 182.40 282.30 227.33 249.58 223.20 54.87 29.60 Video Games Video on Demand ePublishin
Slide 6: Fastest-growing market in the global gaming industry
FA S T ES T- G R OW I N G M A R K E T I N G LO B A L G A M I N G I N D U S T RY INDIA IS THE FASTEST GROWING GAMING MARKET WITH A SIGNIFICANT TAM INDIA IS THE 2ND LARGEST GAMER BASE WITH THE FASTEST GROWTH RATE 3 Year Compounded Annual Growth Rate Number Of Gamers In 2023 (In Mn) 28% 750 7% 7% 425 5
Slide 7: Strong revenue CAGR growth of 25% and consistently growing gamer base
STRONG REVENUE CAGR GROWTH OF 25% CONSISTENTLY GROWING GAMER BASE Online Gaming Revenue (USD Bn) Online Gamers In India (Mn) 186 2.03 166.7 157.8 142.7 146.2 1.47 1.26 1.05 2022 2023 2024 2027E 2021 2022 2023 2024 2027E HEALTHY GROWTH IN ARPU WITH SIGNIFICANT POTENTIAL TO RISE FURTHER RISING PAYING
Slide 8: India is the largest mobile gaming market in terms of app downloads
India is the largest mobile gaming market in Young digital natives are fueling an ever terms of app downloads growing gaming audience There are more than 400 Mn gamers and 500+ COVID-19 has created a bigger market gaming studios in India India has around 600,000 esports players and Mobile advertisin
Slide 9: Nazara's: A Gaming Ecosystem
NAZARAs: A GAMING ECOSYSTEM
Slide 10: Nazara overview: India's largest listed gaming company
• Established in 1999, Nazara Technologies Ltd is India's largest listed gaming Revenue, EBITDA & EBITDA Margins company 10,910 11,383 15.2% • Present across India, the USA and other global markets 10.1% 11.2% 6,217 10.0% • Popular gaming IPs, include Kiddopia, Animal Jam, Love Island-the Game, Clas
Slide 11: Nazara is well diversified across demographics, geography and business models
Nazara is well diversified across demographics, geography and business models Ta r g e t s e g m e n t Geography1 Catering to users of all ages <10YRS 10-18YRS 18YRS+ 44% 33% 23% Gamified Early Freemium & esports & North America India RoW Learning esports RMG ( % Revenue Contribution of overall busi
Slide 12: Gaming, Esports, Adtech revenue and EBITDA contribution
GAMING ESPORTS ADTECH REVENUE 4,065 INR MN REVENUE 6,317 INR MN REVENUE 1,038 INR MN EBITDA 809 INR MN EBITDA 630 INR MN EBITDA 83 INR MN Revenue And EBITDA Contribution 36% 53% 55% 41% 9% 6% REVENUE % REVENUE % EBITDA % REVENUE % EBITDA % EBITDA % CORE NAZARA DNA Focused IP Profitable growth in a c
Slide 13: Company journey and milestones
• Launched a successful Initial Public Offering (IPO) in March 2021 • Krafton (IP owner of PUBG) invested in NODWIN • Acquired majority of Paper Boat Apps (Kiddopia) and 100% of WildWorks to grow the Gamified Early Learning business • Built distribution pipes across • Acquired 100% of skill gaming 6
Slide 14: Board of directors
VIK A SH MIT T E RSA IN NIT ISH MIT T E RSA IN KU LDE E P JA IN SH O BH A JAGT IA N I Chairman & Managing Director Joint Managing Director and Chief Executive Non-Executive, Independent Director Non-Executive, Independent Director Officer Vikash Mittersain has been a Director of the Nitish Mittersai
Slide 15: Management team
SUDHIR KAMATH ANUPRIYA SINHA DAS RAKESH SHAH Chief Operating Officer Head of Corporate Development Chief Financial Officer, KMP Mr. Sudhir Kamath is the Chief Ms. Anupriya Sinha Das is the Head of Mr. Rakesh Shah is the Chief Financial Operating Officer. An alumnus of Corporate Development at Nazara
Slide 16: Subsidiaries leadership
AT S U B S I D I A R I E S ( 1 / 2 ) A KSH AT RAT H E E A JAY P RATA P SING H A NSH U DH A NU K A Co-founder & MD, Nodwin Gaming Pvt Ltd CEO - Absolute Sports Private Limited Co-founder & CPO, Paper Boat Apps Pvt Ltd Mr. Akshat Rathee is the Co-founder and Mr. Ajay Pratap Singh is the Chief Executiv
Slide 17: Subsidiaries leadership
AT S U B S I D I A R I E S ( 2 / 2 ) SE N T H IL G OVIN DA N DE E PA K MV J E FF A MIS Founder & CEO, Datawrkz Business Solutions Pvt. Ltd. CEO, Openplay Technologies Co-founder and CEO, Wildworks Mr. Senthil Govindan is the Founder and CEO of Datawrkz Mr. Deepak MV is the CEO of Openplay, with over
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Slide 19: Kiddopia: gamified early learning for kids
• Kiddopia, is a gamified early learning for kids between 2-8 years of age Revenue & EBITDA (INR Mn) • Nazara acquired 51% of Kiddopia in July 2020 and in July 2024 Nazara 2,206 2194 2,044 25.0% 25.6% announced it was increasing its stake in Kiddopia to 100% 21.40% • Has since grown to become among
Slide 20: Kiddopia KPIs: marketing spend, churn, ARPU
Marketing Spends (USD Mn) Average Churn Rate (%) FY24 Geographical Split 13 7.22% 10 10 20% 6.58% 6.60% 6.52% 2.4 80% FY22 FY23 FY24 Q1-FY25 FY22 FY23 FY24 Q1-FY25 US RoW ARPU (USD) Average Activation Rate (%) Average Monthly Paying CPT (USD) Subscribers 39.37 38.6 3,22,570 37.48 6.92 71% 70% 3,07,1
Slide 21: Animal Jam: online playground for kids
• Animal Jam, is an online playground for kids who love animals and the natural Revenue & EBITDA (Mn) 947 world, for kids between 9-11 years of age • Nazara acquired 100% of Animal Jam in August 2022, with a revenue model of In- App Purchases & Subscription 522 19.8% • User can play games, make frie
Slide 22: Animal Jam KPIs: paying users, ARPPU
Monthly Number of Paying Users FY24 Geographical Split FY24 Revenue Share 2,54,955 2,32,317 2,35,782 2,24,790 2,16,074 2,24,495 20% 2,09,705 47% 53% 80% In-App Purchases Others US RoW Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 New User Monetization (%) ARPPU (USD) 2.61% 12.62 2.40% 2.21
Slide 23: Acquisition of Fusebox Games
• Nazara has announced the acquisition a 100% stake in Fusebox Games Ltd, a well-established IP based gaming studio in the United Kingdom. The total consideration is INR 228 Cr ($27.2Mn), including INR 42 Cr ($5 Mn) deferred for 12 months • Headquartered in London and founded in 2016, Fusebox publis
Slide 24: Fusebox management team and growth vectors
Name Past Experience Leadership roles at top games companies for IP titles Terry Lee (Formula 1, NASCAR, Transformers, Star Wars, Hitman, Tomb Raider) Studio Head Strong Management Oversaw a 75% increase in yearly content output while reducing costs at FBG. Team Shagun Khare 15+ years of experience
Slide 25: Classic Rummy: real money gaming app
• Classic Rummy, is a real money gaming app, for individuals aged 18-45 years of age Revenue & EBITDA ( INR Mn) • Acquired by Nazara in August 2021 • Platform fee monetization model collected from skill games played on the platform 531 • Offering a secure environment for clean & fair gameplay backed
Slide 26: Fully integrated sports media powerhouse focused on esports
A. (<'> FULLY INTEGRATED SPORTS ~ MEDIA POWERHOUSE N~A~~JN FOCUSED ON ESPORTS
Slide 27: Esports market trends in India
Total Participation In Esports (in Mn) No. Of Broadcasting Platforms Number Of Brands 2,500 20 80 82 72 65 1,790 14 13 12 1,000 600 2021 2022 2023 2024E 2021 2022 2023 2024E 2021 2022 2023 2024E Airtime (in Hr.) Average minute Indian E-Sport Revenue Esports Prize Pool Size - India audience (USD Mn)
Slide 28: NODWIN Gaming: India's leading esports company
Revenue & EBITDA (INR Mn) • NODWIN Gaming is India’s leading esports company, with the most comprehensive set of IPs across esports. 4271 7.45% 3,887 • It also provides extensive esports gaming consultancy services, organizing gaming events and securing sponsorships. 2,108 1.80% • The events busines
Slide 29: Dominant set of IPs in esports and new age youth media
D OMINANT SET OF IPs IN ESP ORTS AND NEW AG E YOUTH MED IA Only Player in Emerging Markets which can Deliver across the Youth’s Passion Points, at Scale 1B+ Games 9K+ hours of 100+ 50+ IPs Activated content distributed Partners FOUNDED BABY STEPS ENHANCED OFFERINGS LOCAL MARKET LEADER MEDIA PROPOSIT
Slide 30: Why, how and who we do it for
WHY DO WE DO IT HOW DO WE DO IT WHO DO WE DO IT MOTIVATED BY OUR VISION & MISSION TIMESHARE OF MINDSHARE YOUTH, PROFILED BELOW DEMOGRAPHIC Ages between 16-34 with an even split between genders VISION To become IP led media conglomerate in Gaming eco - system INTERESTS Socializes, engages and consume
Slide 31: Sportskeeda: global sports and entertainment content platform
Revenue And EBITDA (Mn) • Sportskeeda is a global sports and entertainment content platform that provides in-depth coverage of sports, gaming, entertainment, and more 34.6% 1960 • Driven by a talented global team of over 650 journalists and editors. 33.1% 1224 • Scope has steadily expanded over the
Slide 32: Business Overview: Ad-Tech
BUSINESS OVERVIEW: AD-TECH
Slide 33: Datawrkz: digital advertising services
Revenue, Gross Profit & EBITDA ( INR Mn) • Datawrkz Business Solutions Private Limited provides innovative digital advertising services 27.4% 28.4% 1,532 • Headquarterd out of India, with branches in Singapore and the US 19.80% • Nazara acquired 33% in Datawrkz Business Solution Private Limited, in
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Slide 35: Scale up post Nazara acquisition
TO LEADERSHIP POSITIONS SCALE UP POST NAZARA ACQUISITION Amounts in INR Mn 25X ▲ FY18 FY24 Acquired in Jan-2018 170 16 4,271 (2) Revenues EBITDA Revenues EBITDA 14X ▲ FY20 FY24 Acquired in Sep-2019 142 13 1,960 648 Revenues EBITDA Revenues EBITDA 4X ▲ FY20 FY24 Acquired in Jan-2020 582 (32) 2,194 56
Slide 36: M&A strategy: acquire game studios with established IP and profitability
M&A STRATEGY - OUR FOCUS IS TO ACQUIRE GAME STUDIOS WITH ESTABLISHED IP AND PROFITABILITY TARGET GENRES NAZARA ACCELERATION PLATFORM LEVERAGE INTERNAL SYNERGIES: CASUAL Harness the collective skills of our diverse (Puzzle, Simulation) internal talent and state-of-the-art tools to fuel organic growth
Slide 37: Acceleration of growth and profits
A C C E L E R AT I O N O F G R O W T H A N D P R O F I T S CORE IP FOCUS ABILITY TO ADAPT Focus across segments on developing IPs Ability to identify macro trends early-on and creating multiple monetization and adapt business models to navigate models around them through dynamic markets SUSTAINABLE
Slide 38: Financial Overview
FINANCIAL OVERVIEW
Slide 39: Revenue, EBITDA, PAT, cash and margins
Revenue (INR Mn) EBITDA (INR Mn) PAT (INR Mn) 11,383 10,910 1,279 748 1,098 614 946 507 6,217 236 2,501 249 FY22 FY23 FY24 Q1-FY25 FY22 FY23 FY24 Q1-FY25 FY22 FY23 FY24 Q1-FY25 Cash (Mn) EBITDA Margin (%) PAT Margins (%) 14,582 15.20% 9.44% 8.16% 11.20% 10.10% 6.57% 9.96% 7,321 5.63% 6,283 2022 2023
Slide 40: Consolidated profit and loss statement
Particulars (INR Mn) FY22 FY23 FY24 Q1-FY25 Revenue from Operations 6,217 10,910 11,383 2,501 Total Expenses 5,271 9,812 10,104 2,252 EBITDA 946 1,098 1,279 249 EBITDA Margins (%) 15.22% 10.06% 11.24% 9.96% Depreciation and Amortization 390 571 670 152 Impairment Loss 87 86 283 - Finance Cost 6 47 6
Slide 41: Consolidated balance sheet
Particulars (INR Mn) FY23 FY24 Property and equipment 71 64 Goodwill & Other Intangible assets 5,760 6,017 Non-current Financial Assets & Other Assets 685 2,172 Income Tax & Deferred Tax Asset 205 141 Cash balance, Bank FDs and Current Investments 6,283 14,583 Other Current Assets 4,014 4,641 Total
Slide 42: Market data and shareholding
BSE: NAZARA – 543280 | NSE: NAZARA | BLOOM: NAZARA:IN Market Data (INR) (As on 30th June, 2024) Shareholding Shareholding Pattern (AsOn Pattern (As On30th 30thJune June 2024) 2024) Top Institutional Investors (As On 30th June 2024) Face Value 4.0 PLUTUS WEALTH MANAGEMENT LLP 13.21% FIIs 6% Insurance
Slide 43: Nazara Technologies Ltd. contact and disclaimer
Nazara Technologies Ltd. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not curre
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