Ci Games S.a. · GPW:CIG
Ci Games — Investor Presentation (September 2022)
27 slides from Ci Games's investor presentation, Sep 7, 2022
Slide 1: The Lords of the Fallen Announcement Report
THE LORDS«PALLEN ANNOUNCEMENT REPORT a Wy ~ nee FH VIDEO 200,000,000 * 13 mit views | 61.5 MIL TOTAL VIEWS | 93.3% i WV Worter se @ 1,000,000 IMPRESSIONS IN < 1 WEEK Top \ = £ - 400 GLOBAL ANNOUNCED ae v YORDS:. TALLEN & (I WEEK) N qi Games oe i) MEDIA 46 8750+ reer atts <3IGN gamesradar+ 2237) @VAN
Slide 2: 7th September, 2022
7th September, 2022
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain information set forth in this presentation contains “forward-looking information”, including “future-oriented financial information” and “financial outlook”, under applicable securities laws (collectively referred to herein as forward-looking statements). Except fo
Slide 4: Years of developing AA+/AAA FPS & RPG games
+ Years of IPs Copies sold developing AA+/AAA FPS & RPG Games Locations – Headcount Years avg. experience Poland, Spain, from management UK, US, Romania team 4
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS OUTSTANDING FINANCIAL PERFORMANCE ▪ Strong profitability: Producing healthy EBITDA and net income margins ▪ Future financial performance to be mainly driven by SGW and Lords of the Fallen franchises and Survival Project, the third new IP DISTRIBUTED DEVELOPMENT AND MARKETING AS
Slide 6: Globally Recognized Developer & Publisher of High Quality Video Games
GLOBALLY RECOGNIZED DEVELOPER & PUBLISHER OF HIGH QUALITY VIDEO GAMES FPS & RPG EXPERTISE ▪ Top rated AA+/AAA game developer and publisher ▪ World renowned FPS & RPG game studio, listed on the WSE main market ▪ Self publishes original IPs on all major platforms (Steam, PlayStation, Xbox and Nintendo
Slide 7: Highlights
HIGHLIGHTS STRONG FINANCIAL PERFORMANCE ▪ Our games portfolio continues to deliver strong EBITDA margin at 50.2% and net profit of 43.8% in H1 2022 ▪ Net revenue of PLN 30.5m in H1 2022 reflect substantial contributions from our existing games franchise, Sniper Ghost Warrior, together with revenues
Slide 8: Highlights
HIGHLIGHTS CONTINUED DEVELOPMENT OF EXISTING IPs ▪ The Lords of the Fallen is currently in full production. The marketing campaign commenced in Q3 2022 to great reception ▪ Following the success of Sniper Ghost Warrior Contracts 2, our Underdog studio is now working on the next installment in the Sn
Slide 9: Seasoned Management Team
SEASONED MANAGEMENT TEAM Marek Tymiński Saul Gascon Jon Tibble David Broderick Darren Newnham Cezar Virtosu Founder & CEO Executive Producer (LOTF) VP, Global Sales CFO CEO, United Label Creative Director (LOTF) Kenton Fletcher Aitor Rosa Ryan Hill Rhys Twelves Kirsty Moore Katarzyna Sermanowicz-Giz
Slide 10: An Internationally Distributed Team
UK & Ireland AN INTERNATIONALLY DISTRIBUTED TEAM David Broderick, CFO Jon Tibble, VP Global Sales Darren Newnham, CEO United Label Key management operates from multiple geographic locations resulting Kirsty Moore, HR Director in further internationalization of the company Ryan Hill, Marketing Direct
Slide 11: International Development Structure
INTERNATIONAL DEVELOPMENT STRUCTURE Attracting international development talent SURVIVE PROJECT Hexworks Underdog Studio CI Games & BatFields Internal team size: 74 people Internal team size: 56 people External Team & CI Key Talent 44 Spain 32 Poland U.K. U.K. 11 Romania 3 U.K Spain Spain 7 U.K. Fra
Slide 12: Headcount by Function
HEADCOUNT BY FUNCTION 11 15 Sales & Marketing Finance & Admin Development LOFT & SGW* 139 As of June 30 2022. * Includes team of 11 dedicated to Quality Assurance, centralized for all development projects. 12
Slide 13: H1 2022 Financial Report
ci GAMES H1 2022 FINANCIAL REPORT
Slide 14: H1 2022 Financial Highlights
H1 2022 FINANCIAL HIGHLIGHTS Net Revenue EBITDA Net Profit PLN 30.5m PLN 15.3m PLN 13.3m EBITDA Margin Net Profit Margin 50.2% 43.8% Cash Position EPS PLN 17.7m PLN 0.07 14
Slide 15: H1 Income Statement
H1 INCOME STATEMENT PLNm KEY HIGHLIGHTS H1 ’22 H1 ’21 Net revenue from sales 30.5 49.2 • H1 2022 net revenue totaled PLN 30.5m, with 55% generated by sales of SGWC 2. New releases from United Operating profit 11.0 17.3 Label portfolio accounted for 11% of consolidated sales. EBIT margin (%) 36.1% 35
Slide 16: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW PLNm KEY HIGHLIGHTS Balance Sheet 30 Jun 2022 31 Dec 2021 ▪ As of 30.06.22 total assets increased by 10.1% which was mainly attributable to investment in the games and Cash and cash equivalents 17.7 37.8 working capital elements. Total assets 166.5 152.1 ▪ Intangible assets
Slide 17: Financial Performance
FINANCIAL PERFORMANCE Historicals and FY 2022-2023 Analysts’ Estimates* Summary Financials 2018 2019 2020 2021 2022E* 2023E* Revenue & EBITDA (PLNm) (PLNm) 250 Net Revenue 22.0 47.5 46.0 105.5 52.0 225.0 200 150 Gross Profit 4.7 18.5 19.3 65.9 26.8 119.0 100 50 EBITDA 4.4 20.5 27.8 60.4 30.0 103.0 0
Slide 18: 2022 Roadmap
2022 ROADMAP ▪ Development to continue on next SGW installment and The Lords of the Fallen ▪ United Label will continue signing new projects, with the aim to consistently release two to four titles depending on game budget every year going forward ▪ Launching 3rd owned IP in popular genre ▪ Progress
Slide 19: Appendices
ci GAMES Appendices
Slide 20: 1. Portfolio Update
ci GAMES 1. PORTFOLIO UPDATE
Slide 21: Net Revenue H1 2022
Net Revenue H1 2022 3% 1% 8% SGWC 2 9% SGWC SGW3 Other 9% Tails of Iron 55% Eldest Soul Roki 15% 21
Slide 22: Development Schedule
DEVELOPMENT SCHEDULE SURVIVE PROJECT The Lords of the Fallen Next installment SGW franchise Third Owned IP 2023 TBA TBA 22
Slide 23: Evergreen Tactical FPS Franchise
Evergreen Tactical FPS Franchise ▪ Self published by CI Games, the SGW franchise now boasts 5 entries and has sold 13M+ units worldwide ▪ It is now the best-selling first person sniping franchise of all time ▪ All four previous installments released before 2021 are fully depreciated, including Snipe
Slide 24: Soulslike Dark Fantasy Action-RPG
Soulslike Dark Fantasy Action-RPG ▪ The full featured sequel to Lords of the Fallen, which was released in 2014, selling over 3 million copies, and played by 10 million players. ▪ Developed by CI Games’ internal studio, Hexworks ▪ Significantly increased AAA production values in dynamically growing
Slide 25: Third Owned IP: Survive
THIRD OWNED IP: SURVIVE WHY SURVIVAL GENRE? ▪ Highly popular genre with broad global appeal. Low-mid risk with high potential reward ▪ Natural expansion of the portfolio, clear audience cross over with SGW and LotF franchises EXTERNAL STUDIO WORKING IN COOPERATION WITH CI GAMES’ KEY TALENT ▪ CI Game
Slide 26: United Label
Slide 27: United Label
UNITED LABEL Ambitious, Analytical, Quality-Driven 91% 84% ▪ Jan 2022 signed for production of new Sci-Fi game game with Chicago based studio. ▪ Tails of Iron, with extended content “Bloody Whiskers“ continues to generate significant revenues in Q1 2022. 78% 80% ▪ OddBug Studios working on their nex