Verve Group Se Class A · OMXSTO:VER
Verve Group Se Class A — Media and Games Invest — Q3 2022 Earnings Presentation
29 slides from Verve Group Se Class A's earnings presentation, Nov 15, 2022
Slide 1: Earnings Call - Interim Report Q3 2022
Earnings Call - Interim Report Q3 2022 November 15, 2022
Slide 2: Disclaimer
Disclaimer THE INFORMATION CONTAINED IN THIS PRESENTATION IS STRICTLY CONFIDENTIAL. ACCORDINGLY, THE INFORMATION INCLUDED HEREIN MAY NOT BE REFERRED TO, QUOTED OR OTHERWISE DISCLOSED BY YOU, NEITHER DIRECTLY OR INDIRECTLY NOR WHOLLY OR PARTLY. BY REVIEWING THIS INFORMATION, YOU ARE ACKNOWLEDGING THE
Slide 3: Agenda
Agenda Introduction Business Update Our Ad-Software Platform Financial Performance Vision 2025
Slide 4: Introduction
G Media and Games Invest @ 1. Introduction
Slide 5: Today's Presenters And Ownership Structure
Today’s Presenters And Ownership Structure Shareholdings (159,249,358 shares)1 Shares listed on Frankfurt Stock Exchange and 26% Remco Westermann Nasdaq First North Premier Stockholm Remco Westermann holds his MGI shares via the German holding company Bodhivas GmbH. Bodhivas GmbH is based in Düsseld
Slide 6: Business Update
G Media and Games Invest & 2. Business Update
Slide 7: Key Facts Q3'22 in a Nutshell
Key Facts €312M +800 Employees1 Revenue LTM Q3’22 Q3’22 in a Nutshell 54% Ad spend growth Q3’22 €85M Adj. EBITDA LTM MGI: A leading European Ad-Software-Platform Q3’22 +500 Software Clients with with strong First-Party Games Content >$100k revenue / year3 39% Revenue Growth +97% Retention Rate of Q3
Slide 8: Global Reach
Global Reach Combining vast global reach… North America Europe RoW +660B +2.0B +250M yearly ad Connected end- Daily active impressions1 consumer devices2 users3 19% … with world class first party content access. Revenues by region (Q3’22) 13% +5,000 +20,000 +1bn own games Connected Own gamers mobile
Slide 9: Major Events During Q3 2022
Major Events During Q3 2022 Broad range of initiatives facilitating strong revenue growth in the third quarter of 2022 23% ORGANIC GROWTH DESPITE EGM RESOLVES ON MACROECONOMIC HEADWINDS RELOCATION TO SWEDEN NEW CUSTOMER GROWTH BOARD EXTENSION AND +30 PUBLISHERS (SUPPLY)1 ESTABLISHMENT OF AUDIT AND +
Slide 10: Taking Responsibility And Laying The Foundation For Further Growth
Taking Responsibility And Laying The Foundation For Further Growth E S G Gender balance Carbon neutrality Relocation of seat to Sweden Composition of the Board of Directors after AGM in accordance with 4.1 of the Swedish Governance Code. AGM 2022 and subsequent EGM resolved in favor for MGI achieved
Slide 11: Deep Dive Governance: MGI Has Actively Improved Its Governance
E S G Deep Dive Governance: MGI Has Actively Improved Its Governance We are on the finishing line towards completing our relocation to Sweden Update on the relocation process Governance structure Initiation of relocation process away from Malta Establishment of a Nomination, Remuneration and Audit f
Slide 12: Deep Dive Governance: Extended Blue-Chip Board
E S G Deep Dive Governance: Extended Blue-Chip Board Board members elected by the Annual General Meeting 2022 Governance / Executive Experience/ Finance & Accounting / Finance & Accounting / Media Executive / Games / Swedish Capital Communications / Financing +20 years industry Capital Markets Capit
Slide 13: Our Ad-Software Platform
G Hele and Games @ 3. Our Ad-Software Platform
Slide 14: The Acceleration Of The MGI Flywheel
The Acceleration Of The MGI Flywheel The latest acquisitions add two missing puzzle pieces in MGI’s unique synergetic setup accelerating the flywheel Served more relevant ads to users More Critical Mass More Players • More volume = more economies of • Adding 350-400 games to the MGI scale = higher a
Slide 15: Realizing Synergies From Past M&A
Realizing Synergies From Past M&A Two important transactions in 2022 accelerating our flywheel to achieve our Vision 2025 Media Gaming DSP start-up with future-oriented contextual technology Leading free-to-play mobile games developer Continuously high growth of Dataseat; fitting in with high
Slide 16: Capital Market Environment And Updated M&A Strategy
Capital Market Environment And Updated M&A Strategy M&A activity has slowed with macroeconomic headwinds Volatile markets and decreasing public equity valuations Potential of a recession Gap in valuation expectations of buy-side and sell-side M&A not a priority Debt / Equity capital markets difficul
Slide 17: Financial Performance
G Media and Games Invest @ 4. Financial Performance sere, WE MM
Slide 18: Third Quarter Financial Highlights
Third Quarter Financial Highlights Strong Growth Compared To Strong Profitability And Cash Generation Q3 2021 Q3 2022 39% of which: 23% Margin Growth Revenue Growth Organic Revenue Growth 21% 24% Net Revenues Adj. EBITDA Growth Adj. EBIT Growth Adj. EBITDA Adj. EBIT 100 100 Margin % 90 90 88 80 78 8
Slide 19: Strong Organic Segment Performance
Strong Organic Segment Performance Demand Side Segment Supply Side Segment 38% organic 22% organic (EURm) growth (EURm) growth +88% +35% 9.6 78.0 57.8 5.1 21.4 17.8 1.6 1.2 31% 27% 23% 16% Q3 2021 Q3 2022 Q3 2021 Q3 2022 Revenues Adj. EBITDA Margin Revenues Adj. EBITDA Margin +10 Software Clients1,
Slide 20: Consistent Long-Term Financial Development
Consistent Long-Term Financial Development Highly scalable and profitable business model with strong organic growth EURm1,2 CAGR 67%3 23% Organic Revenue Growth4 (adjusted EBITDA) 312 252 30% 140 28% 27% 25% 22% 21% 20% 18% 84 85 71 68 55 10% 39 42 45 22 29 15 11 13 18 10 18 2 4 7 2 7 2014A 2015A 20
Slide 21: We Grow With Our Software Clients
We Grow With Our Software Clients KPIs driving our top-line growth Ad Impressions Ad impressions delivered (in bn) 172 156 161 135 173 59 37 44 15 17 22 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 662 billion ad impressions delivered to end-consumers on a LTM basis Software Cli
Slide 22: Net Leverage And Interest Coverage Ratio
Net Leverage And Interest Coverage Ratio Deleveraging and strengthening our interest coverage capability compared to the last quarter Net debt to adj. EBITDA ratio development1 Interest Coverage Ratio development1 (EURm) (EURm) Net leverage 307 Interest Coverage Ratio 85 299 81 Net Interest Bearing
Slide 23: Operating Cash Flow And Capex Development
Operating Cash Flow And Capex Development Increasing cash flow from operations, investments in organic growth Operating cash flow development1,2,3 Capex development3 (EURm) 91 (EURm) 296 Operating Cash Flow Maintenance Capex Free Cash Flow after Interest Expenses Expansion Capex 233 Cash Interest Ex
Slide 24: Increasing Our Guidance 2022 Despite Macro-Economic Headwinds
INCREASING OUR GUIDANCE 2022 DESPITE MACRO-ECONOMIC HEADWINDS LTM Q3 22: Revenue 312 mEUR Adj. EBITDA 85 mEUR Updated 2nd Updated Guidance FY 2021 Guidance 2022 2022 Revenue 252 295 – 315 315 – 325 (in €m) Growth 80% 17-25% 25-29% Adj. EBITDA 71 83 – 93 83 – 93 (in €m) Growth 143% 17-31% 17-31% Cop
Slide 25: Mid-Term Financial Targets
Mid-Term Financial Targets Prudent mid-term financial targets which have been outperformed for three years in a row Confirming our prudent mid-term financial targets despite difficult to predict 2023 Revenue CAGR Adj. EBITDA margin Adj. EBIT margin Pro-Forma Leverage1 25-30% 25-30% 15-20% 2-3x We ar
Slide 26: Vision 2025
G Hele and Games @ 5. Vision 2025
Slide 27: Our Environment Has Changed, We Are Agile, React & Anticipate
OUR ENVIRONMENT HAS WE ARE AGILE, REACT & CHANGED ANTICIPATE CAUTIOUS CAPITAL MARKETS & EXPENSIVE CAPITAL ACCEPT AND NAVIGATE THE CAPITAL MARKETS Due to interest hikes, inflation and recession fear, expensive As capital has become expensive selective use only equity and increased cost of debt Focus
Slide 28: Headlines Vision 2025
BEING ONE OF THE MOST DESIRED GLOBAL COMPANIES TO WORK FOR embracing diversity, global, no politics, professional, engaged, innovative, strong drive BECOMING ONE OF THE TOP 5 WORLDWIDE LEADING AD- SOFTWARE PLATFORMS transparent, open source, innovative, multi-format, omni-platform, vertically integr
Slide 29: Thank You.
Thank You. www.mgi-se.com 29
Media and Games Invest — Q3 2022 Earnings Presentation on 6ix