Nazara Technologies Ltd. · NSE:NAZARA
Nazara Technologies — Non-Deal Roadshow (August 2023)
38 slides from Nazara Technologies's roadshow presentation, Aug 18, 2023
Slide 1: Nazara Technologies Limited – Intimation of Investor Meetings
Nazara Technologies Limited Nazara TM August 18, 2023 To, Listing Compliance Department Listing Compliance Department BSE Limited National Stock Exchange of India Phiroze Jeejeebhoy Towers Limited Dalal Street, Exchange Plaza, Plot No. C/1. G Block, Mumbai - 400 001. Bandra -Kurla Complex, Bandra (E
Slide 2: Investor Presentation Aug 2023
Investor Presentation Aug 2023
Slide 3: Building a Diversified & Profitable Sports & Gaming Ecosystem
BUILDING A DIVERSIFIED & PROFITABLE SPORTS & ECOSYSTE GAMING M 2
Slide 4: Fast growing and profitable business
Strong revenue growth Amounts in INR mn 4,542 10,910 Fast growing 55% CAGR FY21 FY23 and profitable business Healthy profitability (EBITDA) Amounts in INR mn 447 57% CAGR 1,097 FY21 FY23 Note: The numbers of revenue and EBITDA produced across the presentation for our subsidiaries or business segment
Slide 5: Evolution into one of the largest sports and gaming players from India
Evolution into one of the largest sports and gaming players from India Initial Public Offer in March 2021 Adapted & pivoted to ‘Friends of Nazara’ Investment by GIC Singapore & other concept from Telco dominated model marquee investors Expanded into Freemium gaming 1st ever televised BGMI tournament
Slide 6: Core tenets on which Nazara ecosystem is built
Core tenets on which Nazara ecosystem is built Core DNA Our ecosystem Sports Gaming Focused IP driven play Profitable growth in a capital efficient manner & others Reinvestments stemming from healthy internal & others cashflows Platform Level Intrinsic defensibility against macro shocks 5
Slide 7: Unique ability to identify new trends successfully ahead of time
Unique ability to identify new trends successfully ahead of time 2000-2015 2015-2018 2019-2020 2021 & Beyond • Evolution of value-added • Reduced usage of telco • Increasing scope of telco services distribution for games entertainment-based learning • Healthy public markets Opportunities/ • Strength
Slide 8: Demonstrated ability to acquire and scale assets
Demonstrated ability to acquire and scale assets Stage 1: (0 - 1) Stage 2: (1 - 10) Stage 3: (10 - 100) Scale into Identify and Institutionalize leadership acquire and optimize position • Companies with a strong product market • Value addition by leveraging Nazara • Back acquired assets with right c
Slide 9: Taking promising assets to leadership positions
Taking promising assets to leadership positions Expansion strategies deployed Scale up post Nazara acquisition Amounts in INR mn IP development Acquisitions 2 50+ 5 23x growth in scale IPs in 2018 IPs currently # of acquisitions FY2018 FY2023 (Year of acquisition) Asia and Africa 170 16 3,887 70 Acq
Slide 10: Leveraging platform synergies across the board
Leveraging platform synergies across the board Ecosystem Infusing core DNA Business optimization relationships • Growth with profitability • Developing relevant • Access to larger and cash flows monetization models ecosystem players • Focus on tangible • Insights on scalability via • Guidance on rep
Slide 11: Cross platform collaboration to fuel growth
Cross platform collaboration to fuel growth Nazara ecosystem supporting Nodwin Gaming growth Datawrkz supporting operational improvements at Animal Jam Led diversification of business model to tap into media rights and licensing as a revenue source 29% 27% 23% 20% Media rights FY18 FY23 Higher acqui
Slide 12: Resulting in a diversified play across three pillars
Resulting in a diversified play across three pillars Target segment Geography1 Caters to users across all ages so 41% 40% 19% North India RoW <10yrs 10-18yrs 18yrs+ America Gamified Early Freemium & eSports & ( % Revenue Contribution of overall business) Learning eSports RMG Business Model1 Caters t
Slide 13: Delivered consistent growth & profitability over the years
Delivered consistent growth & profitability over the years Revenue EBITDA Amounts in INR mn Amounts in INR mn 55% 1200 57% 10,910 CAGR 1,097 CAGR 1000 946 800 6,217 600 4,542 447 400 200 0 FY21 FY22 FY23 FY21 FY22 FY23 12
Slide 14: Massive headroom to grow
Massive headroom to grow $3.5bn 500mn $465mn 270mn Gaming market # digital gamers eSports Number of addressable TAM eSports viewers United States India Global $5bn $200bn Gamified Early Digital gaming Learning TAM market 33mn ~$600bn Number of Adtech addressable kids TAM All figures are as of FY23;
Slide 15: Seasoned team with deep experience in sports, gaming & media
Seasoned team with deep experience in sports, gaming & media Management team Sudhir Kamath Rakesh Shah Anupriya Sinha Das Chief Operating Officer Chief Financing Officer Head of Corp. Development Previous Work ex.- Previous Work ex.- Previous Work ex.- 9Stacks; McKinsey & Co. Yahoo! India Pvt. Ltd.
Slide 16: Sports, Gaming, Adtech segment revenues
Sports Gaming Adtech Revenues: INR 5,315 Revenues: INR 4,063 mn Revenues: INR 1,532 mn mn EBITDA: 18% EBITDA: 9% EBITDA: 8% Note: Revenue and EBITDA for FY23 15
Slide 17: Expanding in the sports segment through multiple assets
Sports Gaming AdTech Expanding in the sports segment through multiple assets Sub- Monetization Market FY23 Revenue FY23 EBITDA Acquisitions Geographies segment Model Specialization (FY23 vs FY22 Growth %) (FY23 Margin %) Media rights, brand #1 eSports India, South Asia, sponsorships, white INR 3,887
Slide 18: Nodwin Gaming: Category creator in India's eSports ecosystem
Sports - Nodwin Gaming AdTech Nodwin Gaming: Category creator in India’s eSports ecosystem Revenue Amounts in INR mn Category creation play in South Asian #1 eSports with core focus on building IPs EBITDA 122 157 70 69% CAG R 3,887 Global footprint with events across 10 countries 2,108 1,357 80%+ 1b
Slide 19: Diverse set of offerings across multiple segments at Nodwin
Sports - Nodwin Gaming AdTech 360 degree offering with a gamer first approach Live Experiences Scripted Content Music Sports Diverse set of offerings Nodwin Gaming Fans across multiple Comedy eSports segments at Nodwin Gaming 18
Slide 20: 50+ IPs executed, 100+ Partners
Sports - Nodwin Gaming AdTech Strong IP portfolio & ecosystem relationships leading to faster scaling Multiple revenue streams Large portfolio of owned/co-owned IPs Growth Levers 50+ IPs executed 1 Organic growth in own IPs and deep relationships Media rights/ with publishers enabling innovative IP
Slide 21: Sportskeeda: Engaging sports media play
Sports - Sportskeeda Gaming AdTech Sportskeeda: Engaging sports media play Sports coverage across content formats Key financials Amounts in INR mn 1,224 Revenues Key sports covered EBITDA 89% 792 FY21 to FY23 Revenue CAGR Wrestling 344 388 274 167 32% FY23 EBITDA FY21 FY22 FY23 Cricket Highly engage
Slide 22: Sportskeeda: Diversified revenue base with concrete growth levers
Sports - Sportskeeda Gaming AdTech Sportskeeda: Diversified revenue base with concrete growth levers Diversified revenue base1 Growth strategies Geography split 65% Deepening content Scaling direct sales 25% offerings in existing across US and India to sports & partnering with drive CPM improvement
Slide 23: Sports, Gaming, Adtech segment revenues
Sports Gaming Adtech Revenues: INR 5,315 Revenues: INR 4,063 Revenues: INR 1,532 mn mn mn EBITDA: 8% Note: Revenue and EBITDA for FY23 EBITDA: 18% EBITDA: 9% 22
Slide 24: Depth of offerings in the gaming ecosystem
Sports Gaming AdTech Depth of offerings in the gaming ecosystem Sub-segment Geographies Monetization Model FY23 Revenue FY23 EBITDA (FY23 vs FY22 Growth %) (FY23 Margin %) Gamified Early US (80%+) In-App Purchases (IAP), INR 2,728 mn INR 402 mn Learning Subscriptions (33%) (15%) In-App Purchases, IN
Slide 25: Category leading assets in gamified early learning
Sports Gaming AdTech Category leading assets in gamified early learning Kiddopia Animal Jam Entertainment led learning app for Collaborative game play focused on preschoolers interactive learning Grossing app for kids Grossing app in 9-11 #2 under 5 in the US1 #1 age group in the US1 Core gaming IP
Slide 26: Kiddopia: Demonstrating profitable growth
Sports Gaming - Kiddopia AdTech Kiddopia: Demonstrating profitable growth Revenue Growth levers Amounts in INR mn EBITDA 126 510 357 Underpenetrated target Strong IPs creating 1 market with massive 2 adjacent monetization 2,206 2,044 headroom to grow opportunities such as 1,759 merchandising FY21 FY
Slide 27: Kiddopia: Focus on fundamental margin drivers
Sports Gaming - Kiddopia AdTech Kiddopia: Focus on fundamental margin drivers Subscriber retention Customer Acquisition Increasing share of subscribers of Experimentation across channels leading to annual package optimization of CAC – key cost driver Increased tools & features in the game $56.1 $57.
Slide 28: Animal Jam – Highly engaging gameplay with strong monetization
Sports Gaming – Animal Jam AdTech Animal Jam – Highly engaging gameplay with strong monetization Expanding target Social element Monetizing a Continued focus segment for to the large user base on margins Nazara offering 8-12 ~48 mins 560k+ 22.5% Broadening the Avg time spent per Improving EBITDA mar
Slide 29: Sports, Gaming, Adtech segment revenues
Sports Gaming Adtech Revenues: INR 5,315 Revenues: INR 4,063 Revenues: INR 1,532 mn mn mn EBITDA: 8% Note: Revenue and EBITDA for FY23 EBITDA: 18% EBITDA: 9% 28
Slide 30: Datawrkz – Comprehensive AdTech offering
Sports Gaming AdTech Datawrkz – Comprehensive AdTech offering Integrated solutions to clients & synergies for Nazara ecosystem Strong revenue INR 1,532 mn 53% growth Revenue Revenue Growth Solutions provided by Datawkrz • Services for advertising agencies and brands around digital media planning & b
Slide 31: Datawrkz – Improving growth and margins
Sports Gaming AdTech Datawrkz – Improving growth and margins Increasing contribution of higher margin Near term growth & margin levers business Revenue Contribution1 Service led businesses to drive revenue 95% 92% 94% 92% 86% growth with additional contribution from recently launched product busines
Slide 32: Delivering Strong Financial Performance
DELIVERING STRONG FINANCIAL PERFORMANCE 31
Slide 33: Strong growth in scale with healthy profitability
Strong growth in scale with healthy profitability (Amounts in INR mn) FY22 vs FY23 Q1FY23 vs Q1FY24 10,91 3000 2900 INR 4,693 mn 0 INR 313 mn 2800 2,544 Revenue 2700 2600 2,231 2500 6,217 2400 (Growth: 75%) (Growth: 14%) 2300 2200 2100 2000 1,097 331 300 INR 151 mn 946 INR 31 mn EBITDA (Growth: 16%)
Slide 34: Segment Financials: Sports
Segment Financials: Sports (Amounts in INR mn) FY22 vs FY23 Q1FY23 vs Q1FY24 15 70 8 -48 7 4000 3,887 686 3800 3600 644 3400 3200 84% 3000 2800 7% 2600 2400 2200 2,108 2000 10 274 388 157 1 458 1,224 55% 792 53% 300 -17 -41 0 -6 204 79 Others 139 35 47% -57% FY22 FY23 FY22 FY23 Q1FY23 Q1FY24 Q1FY23
Slide 35: Segment Financials: Gaming and AdTech
Segment Financials: Gaming and AdTech (Amounts in INR mn) FY22 vs FY23 Q1FY23 vs Q1FY24 16 510 357 97 1 2250 2200 2,206 640 525 576 540 2150 2100 2,044 440 8% 2050 2000 10% 340 1950 240 1900 140 1850 1800 40 Acquired in FY23 Revenue: INR 522 mn Q1FY24 Revenue: INR 220 mn Aug-2022 FY23 EBITDA: INR 45
Slide 36: Our Right to Win
OUR RIGHT TO WIN 35
Slide 37: Nazara's right to win in the sports and gaming ecosystem
Nazara’s right to win in the sports and gaming ecosystem Focus across segments on developing IPs and creating multiple Core IP focus monetization models around them Sustainable Growth combined with profitability and healthy internal cashflows playbook creating a sustainable business model Business d
Slide 38: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Nazara Technologies Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any sec
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