Slide 1: Investor Presentation – February 2024
INVESTOR PRESENTATION – FEBRUARY 2024
Slide 2: Glossary
glossary ● LTV (Lifetime Value): LTV refers to the total revenue a mobile game anticipates generating ● Tech Stack: The tech stack refers to the combination of technologies and tools used from a player throughout their entire engagement with the game. It is a crucial metric for in the development of
Slide 3: 1. Company overview
1. Company overview 2. The product 3. Market overview 4. KPI & financials 5. THE SHARE OFFERING
Slide 4: Our Approach
Company overview Our Approach ● Cohesive and experienced team of approximately 25 team members with game releases across multiple genres and platforms. ● Solid Clouds has built its own technological framework enabling accelerated production times, which significantly reduces development costs and oth
Slide 5: Key Management
Company overview KEY MANAGEMENT Holds a B.S. degree in Holds a MSc degree in Holds a MSc degree in computer science from corporate finance from computer science from Reykjavik University. the University of Iceland. Reykjavik University. He was Previously worked for Previously worked at a research sch
Slide 6: Team composition
Company overview Team composition Solid Clouds leverages a skilled team of experienced Team experience: developers, designers, and marketers, empowering us to seamlessly produce and effectively market captivating computer games in the dynamic gaming industry. Following the full-scale launch of Front
Slide 7: Board of Directors
Company overview BOARD OF DIRECTORS Sigurlína Ingvarsdóttir holds Ólafur Andri Ragnarsson Eggert Árni Gíslason holds a a B. Sc. in Industrial holds an MSc in computer Cand.oecon. degree in Engineering from the science from Oregon business from University of University of Iceland. She University. He
Slide 8: Company milestones
Company overview Company milestones Lessons learned from Sovereign Space for future projects “Sovereign Space is already shaping up to be an MMORTS ● Deeper analytics of player behaviour needed unlike anything I’ve played before, following the adventurous ● Better balance between Player vs. Player a
Slide 9: 2. The Product
1. Company overview 2. The Product 3. Market overview 4. KPI & financials 5. THE SHARE OFFERING
Slide 10: Starborne: Frontiers
The product Starborne: Frontiers ● Frontiers is a mid-core tactical hero collector where players assemble and upgrade fleets to explore and conquer the Starborne universe. ○ Players engage in battles with strategic and skillful gameplay on a multiplatform experience, which plays well on both PC and M
Slide 11: The look and feel of Starborne
The product The look and feel of Starborne The World ● Takes place 400 years after the events of Starborne: Sovereign space ● The stage is set in the Spiral Expanse, an unexplored and newly discovered region ● Deeper emphasis on the Factions and characters of the universe The Feeling ● Giving player
Slide 12: Gameplay video
i i a GAMEPLAY VIDEO SOLIDCLOUDS
Slide 13: Core game & monetization loop
The product core game & monetization loop
Slide 14: The production of Frontiers
The product The production of Frontiers ● In mid-2021, the production of Starborne Frontiers commenced which capitalizes on the expertise of our experienced team and a robust technical stack which was developed during the creation of Sovereign Space. ○ We contend that this prior experience and estab
Slide 15: Soft launch learnings
The product Soft launch learnings Development progress integrated continuously until Scaling, to optimize monetization when marketing efforts start ● Soft launch started in February 2023 where the focus was to get Fit to routine Content abundance user data on both Apple and Android devices. Reward s
Slide 16: The journey ahead to scaling
The product The journey ahead to scaling New units - 10 Epic and 5 Legendary Player onboarding - User experience Player onboarding II - Enriched Global release - Scaling begins with heroes added. Increased total count in the tutorial improved and cleaned campaign narrative with elevated increases to
Slide 17: Promising times ahead
The product Promising times ahead ● Starborne FRONTIERS already has highly engaging gameplay that readily converts new players into paying customers. ● Additional content for long term player retention is being developed with a clear path towards the full scale marketing efforts of Starborne FRONTIE
Slide 18: 3. Market overview
1. Company overview 2. The product 3. Market overview 4. KPI & financials 5. THE SHARE OFFERING
Slide 19: Global gaming market
Market overview GLOBAL GAMING MARKET After realising significant growth in recent Estimated 3.4 BILLION video game years, the global gaming market size is on players worldwide in 2023 with that track for $188BN in 2023, targeting $212BN by number set to grow to 3.8 BILLION 2026, exceeding the combine
Slide 20: Competition in Gacha mobile games
Market overview Competition in Gacha mobile games Why Gacha games? ● Gacha games are video games that incentivize players to use in-game currency to acquire virtual items as they advance. These games typically involve players obtaining said items by spending in-game currency or by purchasing them us
Slide 21: Identifying the target market
Market overview Identifying the target market ● In order for Starborne Frontiers to be successful, we need to find the right customers at the most favorable prices possible as approximately 85% of new users in free to play games will enter the game through direct marketing. ● Through user surveys we
Slide 22: Target market
Market overview Target market ● Achievers want to be the best at things or, at least, be achieving things within the game. The vast majority of Gacha games players are achievers. ● Will compete with others, but as a way to become better than others. ● May also be motivated by status as a representat
Slide 23: Target market
Market overview Target market Western countries are our main target We expect 50-60% of revenue to come from USA
Slide 24: Go-to market strategy & next steps
Market overview Go-to market strategy & next steps Optimizing and testing the Keeping the players engaged monetization mechanics will through captivating gameplay help achieving positive ROI. Continuously improving user and rich content generates Using deep learning and onboarding increases the high
Slide 25: 4. KPI & financials
1. Company overview 2. The Product 3. Market overview 4. KPI & financials 5. The share offering
Slide 26: Revenue scenarios
Kpi & financials LTV - (eCPI + other costs) = Profit / Loss Revenue scenarios ● Player Lifetime Value (LTV) ● Effective Cost Per Install (eCPI) Retention curve along with players’ average spend per day Revenue per quarter ● determines LTV ● Costs > Salaries, servers, payment fees, etc. ● The key drive
Slide 27: Improvements in KPIs from August
Kpi & financials Improvements In KPIs from August Rapid progress in game development Between August 2023 and January 2024, our game development efforts have been concentrated on boosting player engagement. This period has seen consistent progress, particularly in key metrics such as Day 1, Day 7, and
Slide 28: How we will continue to increase our target KPIs
appendix How we will Continue to increase our Target KPIS Retention Monetization and marketing Short term retention Long term retention Average Revenue Per Daily Active User Cost per Install (CPI) Introducing a PC client will enhance user experience and Better targeting afforded on PC devices conven
Slide 29: Capitalized R&D to date
Kpi & financials capitalized R&D to date Solid Clouds has made significant investments in developing its tech stack and the Company's games, such as Sovereign Space and Frontiers. The following provides a historical overview of the book value of capitalized development costs.
Slide 30: Use of proceeds
Kpi & financials Use of proceeds Solid Clouds has raised ISK 220 million through a private placement, enabling the launch and marketing of Starborne Frontiers in April 2024. The company plans to raise an additional ISK 180 million via a share offering to cover 2024's operational and marketing costs.
Slide 31: Use of proceeds - scenarios
Kpi & financials Use of proceeds - scenarios Use of Funds - Scenarios Displayed above are two scenarios showing the use of funds depending on the total amount issued in the share offering proposed. All revenue during the first months after scaling will go into advertising. None of the scenarios includ
Slide 32: Historical use of proceeds
Kpi & financials Historical Use of proceeds ● The future of the gaming industry is exciting, demonstrating strong growth in an growing sector. ● Solid Clouds has consistently received positive feedback from users, representing the accomplishments achieved and driven by the company’s experienced team.
Slide 33: Financial Highlights
Kpi & financials Financial Highlights Solid Clouds has invested significantly in recent years, with capitalized development costs close to ISK 1003 million on 31 December 2023. Solid Clouds anticipates that R&D tax credits earned in 2023 and reimbursed this year will amount to approximately ISK 130 mi
Slide 34: 5. The share offering
1. Company overview 2. The Product 3. Market overview 4. KPI & financials 5. The share offering
Slide 35: The share offering
the share offering The share offering preemptive rights offerING Public offering 90,000,000 shares Offering size: (up to approx. 23% ownership post-money) Subscription amount: No minimum subscription amount Subscription amounting from ISK 100,000 Participation: Preemptive rights holders Icelandic In
Slide 36: Key dates of the share offering
the share offering Key dates of the share offering FEBRUARY KEY DATES ● 16-20 February | Subscription period Mo. Tu. We. Th. Fr. Sa. Su. ● 20 February | The results of the Offerings expected to be published 1 2 3 4 ● 22 February | Allotment of the Offerings expected to be announced 5 6 7 8 9 10 11 ●
Slide 37: Potential Tax benefits
the share offering Potential Tax benefits Solid Clouds has currently obtained confirmation from the Icelandic Tax Authorities regarding the applicability of tax deduction for individuals’ investment in share capital increase in the company. Related to the issuance, individuals that are domiciled and t
Slide 38: Legal Disclaimer
Legal Disclaimer The presentation is prepared and provided for information purposes only in connection the Company’s capital increase. This presentation is based solely on public information on the Company and information from the Company itself. The Company, and it’s advisors as applicable, shall n
Slide 39: www.solidclouds.com
_ SOLIDCLouDS www.solidclouds.com