Snail, Inc. · NASDAQ:SNAL
Snail — Investor Presentation (December 2023)
39 slides from Snail's investor presentation, Dec 5, 2023
Slide 1: Snail Inc. A Look Into Our Past
SNAIL INC. A LOOK INTO OUR PAST DECEMBER 2023 ’ . om “x ry 7 are Aas A »S SURVIVAL EVOLVED ey ely snail
Slide 2: Disclaimer
CONFIDENTIAL Disclaimer eS ‘This presentation is made pursuant to Section S{d) andlor Rule 1638 of the Securities Act of 1933, as amended, and is intended solely for investors that are qualified institutional buyers or certain institutional accredited investors solely for the purposes of familiarizi
Slide 3: Snail Games at-a-Glance
CONFIDENTIAL Snail Games at-a-Glance Jim Tsai, CEO The Company 20+ years of leadership experience in global ineractive entertainment companies Year Founded Headquarter Employees Heidy Chow, CFO 18+ years of experiencein accounting at Our Games firm partner and independent board Peter Kang, COO Marke
Slide 4: Business Segments Fuel A Virtuous Growth Cycle
CONFIDENTIAL Business Segments Fuel A Virtuous Growth Cycle © Snail Wandering Wizards : ' 2 Publishing Drives capital for game development and third-party studio partnerships ‘lish, y = Premium game focus, across AAA and indie o' ir . les published under Snail label, indie titles under Wandering Wiz
Slide 5: Key Financial Highlights
CONFIDENTIAL Key Financial Highlights Track record of revenue © snail growth and strong gamer engagement High quality revenue mix focused on Digital Distribution Lean operating structure with a focus on efficiency
Slide 6: Track Record of Consistent Revenue Generation
CONFIDENTIAL Track Record of Consistent Revenue Generation Annual Revenue Quarterly Revenue §,in millions) in milions) ARK: Survival Ascended Released in Q4 2023 Mar 2020 $745 oF UTLAWS. Jun 2021 Mar 2019 = 9203 275 ww ,§ Aug 2022 $233 44 $935 S26 £208 99 [ ISS $16 S55 SBS SES og 1 i; l] | TL YID WD
Slide 7: Growth Driven by Pipeline of New Releases
CONFIDENTIAL Growth Driven by Pipeline of New Releases Annual Units Sold Quarterly Units Sold jn thousands, thru lin thousands, thy sternber 2023} 7 Last Oasis ARK 5,00 Mar 2020 Genesis? e Jun 2021 EPICGames 18M installs, 7 ARK ‘un 2020, ecw ARK Genesis Epic's “Free Week’ Extinction Mar 2020 31M ins
Slide 8: History of Strong and Consistent Engagement
CONFIDENTIAL History of Strong and Consistent Engagement 1.1M Platform: Steam DAU peaked at 1.1M during Metric: Average DAU Steam Free Week in June 2022 Released the Released the fourth DLC in the fifth DLC in the: ARK franchise ny ARK franchise 3° PP PP if er SP St PS? os? PP PP PP Ph PM Ph PP OF P
Slide 9: Quality Revenue Mix Led by Digital Distribution
CONFIDENTIAL, Quality Revenue Mix Led by Digital Distribution FY2022 Revenue Mix % oo C_ Mobile, 13% Uni es, & International, 6% Distribution Channel Platform Geography © Snail a
Slide 10: Lean and Efficient Operating Structure
CONFIDENTIAL Lean and Efficient Operating Structure 2020 ¥? mG8A BRED Marketing mOther> © snail $22.3M = $18.4M \ 3% SE ng 2021" 2022? 2. Excludes Impairment of intangible assets of $13! in 2020 and $163M in 2021 2 Excludes litigation expense af $5:5M in 2020 and $42M in 2022 3 Other includes deprec
Slide 11: Uniquely Positioned Among Peers
CONFIDENTIAL Uniquely Positioned Among Peers High : C T2 g Snail operates in a unique space, Q high revenue per employee & z low operating expense 2 4 SQUARE ENIX é CAPCOM usr operating Expense, % of Rev. High Source: 2022 Financials, Campany flings and Yahoo Fin © snail 7
Slide 12: Our Potential in Valuation Growth
CONFIDENTIAL Our Potential in Valuation Growth 2 oO $274M KoA COME Enterprise Value $39M Potent Enterprise Value SARSSLi SEIN ENS » 0.5x 3e7X ry a 3aedX Enterprise Value/ Enterprise Value/ Revenue Revenue Source: Lazard interactive Media & Technologies Report, Mor 17,2023, Snail Games F¥22 financial
Slide 13: Key Investment Highlights
Key Investment Highlights Genre-defining IP with proven success 2 Well-defined near-term growth drivers 3 4 Unique IP to drive entertainment franchises Top-line growth with lean operating structure ARK franchise acquired 88M installs across PC and Console platforms ) Snail Strong ARK pipeline with s
Slide 14: Come Join Us In This Exciting Journey
COME JOIN US IN THIS EXCITING JOURNEY THANK YOU ) Snail
Slide 15: Slide 15
Slide 16: Internal Developed IP Highlights
CONFIDENTIAL nternal Developed IP Highlights Dark and Light ARK Park ATLAS Last Oasis Jul 2017 Release Mar 2018 Release Dec 2018 Release Mar 2020 Release 345K+ units sold 800K+ units sold 840K+ units sold 340K+ units sold ..Many more within our game portfolio (Cumulative data from release through De
Slide 17: Enterprise Value Multiples
Enterprise Value Multiples Snail Activision Electronic Arts Take-Two Interactive Ubisoft Entertainment CD Projekt Keywords Studios Teami7 Group Frontier Developments Devolver Digital Embracer Group Paradox interactive Stilifront Modern Times Group Remedy Entertainment Enad Global 7 Source: Lazord in
Slide 18: Financial Metrics
CONFIDENTIAL, Financial Metrics Capcom 772,604,866 153,559,420 3,206 240987 Electronic Arts 7,377,000,000 4,092,000,000 12,300 571,860 55% Konami 2,368,524,351 554,543,795 4894 483,965 23% Square Enix 2641,714,973 1012171558 5,637 468,638 38% Take-Two 4833,704,000 2,927,212,000 7,799 619,785 61% Sna
Slide 19: Snail Inc. A Look Into the Future
SNAIL INC. A LOOK INTO THE FUTURE DECEMBER 2023 ) Snail
Slide 20: Disclaimer
CONFIDENTIAL Disclaimer eS ‘This presentation is made pursuant to Section S{d) andlor Rule 1638 of the Securities Act of 1933, as amended, and is intended solely for investors that are qualified institutional buyers or certain institutional accredited investors solely for the purposes of familiarizi
Slide 21: Slide 21
Slide 22: Our Mission Through History
CONFIDENTIAL Our Mission Through H tory Build upon our expertise in online multiplayer games to become THE LEADER IN SANDBOX SURVIVAL GAMES 2009 Massively Multiplayer Online 2015 Online Sandbox Survival Today Select highlights for illustration purposes @snail 4
Slide 23: We Are a Leading Global Independent Developer and Publisher
WE ARE A LEADING, GLOBAL INDEPENDENT, DEVELOPER: AND PUBLISHER OF INTERACTIVE DIGITAL ENTERTAINMENT 14+ Yrs. of Industry Gamer Experience Veterans Empathy in game development and leading the charge at Snail Games deep understanding of gamers publishing and industry
Slide 24: Key Investment Highlights
Key Investment Highlights Genre-defining IP with proven success 2 Well-defined near-term growth drivers 3 4 Unique IP to drive entertainment franchises Top-line growth with lean operating structure ARK franchise acquired 88M installs across PC and Console platforms ) Snail Strong ARK pipeline with s
Slide 25: ARK, Flagship IP With Proven Success
ARK, Flagship IP With Proven Success 3.4B Total Playtime on Steam ARK Installs across platforms © snail Released in 2015 Peak DAU on Steam Non-I pk evolve over time jear narrative as fers learn and 5 DLC Releases across platforms Form teams and compete against creatures and players Open Self Build C
Slide 26: A Look at Gamer Engagement Among Peers
CONFIDENTIAL A Look at Gamer Engagement Among Peers Apr-2015 Apr-2016 Engagement level comparable to notable peers, consistent over time despite age of the game Apr-2017 ‘Apr-2018 Apr-2019 ‘Apr-2020 Apr-2021 Apr-2022 ‘Apr-2023 © snail Stearn, Online players since game release thru September 2023
Slide 27: Games Market, A Growth Engine for ARK
CONFIDENTIAL Games Market, A Growth Engine for ARK Global gaming revenue «With players growing to Significant growth expecting a 5% CAGR... 1.5B in 2025 opportunity for Snail —_—_ * Browser PC 197B mloadec Boao Global Payers in Console 2025 Mobile &. 2022 2025 ARK Installs. Gicbal Game Payers: ‘Nev2
Slide 28: ARK Remake Extends Franchise Lifecycle
CONFIDENTIAL ARK Remake Extends Franchise Lifecycle Ba Launch weekend seller on Steam Successfully launched the remake of the orig. ARK on | Steam and XB steam ree 21/2520 X5rlese 21202 SURVIVAL ASCENDED 5 2x Avg. 30-day DAU ASA vs. ASE on Steam i Idi d 7OOK ensteam SA RIK» © snail 0
Slide 29: The Next Masterpiece
CONFIDENTIAL THE NEXT MASTERPIECE Executive Powered by Cross-Platform Produced by and next-gen Multiplayer and Starring Vin Diesel Unreal Engine = Modding Support © Snail a
Slide 30: Building on Success w/ New Installment & DLCs
CONFIDENTIAL Building on Success w/ New Installment & DLCs 58% Paid DLC Annual DLC smueeee Releases to Fuel Franchise Growth Today 2024 Remake pict pica Release dates subject to change © snail 2
Slide 31: Our Expansion Path Beyond Gaming
CONFIDENTIAL Our Expansion Path Beyond Gaming QO TRANSCEND ACROSS ENTERTAINMENT MEDIUMS Movie TO FUEL GROWTH OF ARK VIDEO GAMES © snail 18
Slide 32: A Look Into the Future
CONFIDENTIAL A Look Into the Future Accelerated growth Strategic Partnerships Execute on M&A to broaden game, portfolio offerings + Identify and partner with companies with specific areas of expertise to expand the ARK Universe beyond gaming + Release ARIK II and plan for ARK II DLCs + Focus on geog
Slide 33: Our Potential in Valuation Growth
Our Potential in Valuation Growth 6 SQUARE ENIX $39mM . .} Enterprise Value 3l-company avg. 0.5x 307X Enterprise Value/ Revenue CONFIDENTIAL $274M Enterprise Value Potential Enterprise Value/ Revenue Source: Lazard interactive Media & Technologies Report, Mor 17,2023, Snail Games F¥22 financials, SN
Slide 34: Come Join Us In This Exciting Journey
COME JOIN US IN THIS EXCITING JOURNEY THANK YOU ) Snail
Slide 35: Slide 35
Slide 36: Snail Games' Content Roadmap
CONFIDENTIAL Snail Games’ Content Roadmap ARK: Survival Ascended ‘Oct. 25, 2023 Powered by U jastered aphicsand enginewith eross-plattore ARK IL Holiday 2024 ‘ARK il will push th UES tor West Hunt - Nintendo ARK Mobile experience with a riveting: arneplay mechanics Late Ni gemepty An onlin inthe Ola
Slide 37: Internal Developed IP Highlights
CONFIDENTIAL nternal Developed IP Highlights Dark and Light ARK Park ATLAS Last Oasis Jul 2017 Release Mar 2018 Release Dec 2018 Release Mar 2020 Release 345K+ units sold 800K+ units sold 840K+ units sold 340K+ units sold ..Many more within our game portfolio (Cumulative data from release through De
Slide 38: Enterprise Value Multiples
Enterprise Value Multiples Snail Activision Electronic Arts Take-Two Interactive Ubisoft Entertainment CD Projekt Keywords Studios Teami7 Group Frontier Developments Devolver Digital Embracer Group Paradox interactive Stilifront Modern Times Group Remedy Entertainment Enad Global 7 Source: Lazord in
Slide 39: Financial Metrics
Financial Metrics Capcom Electronic Arts Konami Square Enix Take-Two Snail © Snail 772,604,866 7,377,000,000 2,368,524,351 2,641,.14,973 4,833,704,000 6 A444 153,559,420 4,092,000000 554,543,795, 1,012,171, 558 2,927,212,000 22,307,691 3,206 12900 4894 5,637 7799 86 240987 571860 483,965 468,638 619