Azerion Group N.v · EURONEXT:AZRN
Azerion — Q1 2023 Earnings Presentation
31 slides from Azerion's earnings presentation, 2023
Slide 1: Becoming the go-to-partner for advertisers in the digital environment
Becoming the go-to-partner for advertisers in the digital environment easy-to-use | competitively priced | brand-safe
Slide 2: Digital advertising is growing fast, as audiences move to digital
Introduction Digital advertising is growing fast, as audiences move to digital 2.5bn 10 years ago 5bn Today 14% $800bn ‘22-‘26 CAGR 2026 Market size # Internet users Digital advertising Sourced from ResearchAndMarkets and “Datareportal – Digital 2022: Global overview report”. 2026 total market size
Slide 3: Fragmented digital advertising landscape creates inefficiencies
Atilla Introduction Fragmented digital advertising landscape creates inefficiencies Agency Demand-side Ad networks Supply-side Advertiser platform platform Publisher Ad servers Create Buy Facilitate digital Facilitate digital ads media inventory purchases inventory sale Spends Ad exchange Receives D
Slide 4: Our integrated model optimises the advertising value chain
Introduction Our integrated model optimises the advertising value chain Advertiser Agency Demand-side Ad networks Supply-side Publisher platform platform owned publishers Autom. Advertising auction auction platform sales Digital ad buying Exclusive platform and Publisher publishers formats monetisat
Slide 5: The Azerion mission
Platform model The Azerion mission “ Advertisers We help brands improve the way they engage with Our mission is to be the audiences go-to-partner for Consumers advertisers for an easy-to- use, competitively-priced Content We entertain and brand-safe digital ” audiences Non-game Game environment Azer
Slide 6: Strong historical performance underpinning growth outlook
Strategy delivery Strong historical performance underpinning growth outlook Revenue Revenue split Value drivers ~15% Continued integration of past annual growth Direct acquisitions driving synergies and sales efficiencies 20% 20% 60% Increase volume of direct sales 80% 80% ~560 40% Increase volume o
Slide 7: Our scalable platform provides access to a global, diverse and engaged audience
Platform model Our scalable platform provides access to a global, diverse and engaged audience, connecting publishers and game creators to advertisers Consumers Advertisers Digital publishers Game creators 1.2k+ 500m+ 400k+ 300k+ >1k Employees Unique monthly Advertisers Contracted publisher Contract
Slide 8: One service, five core elements of value for our clients
Value proposition to advertisers One service, five core elements of value for our clients We are constantly growing our existing business and products and adding new capabilities through acquisitions and partnerships CONTENT REACH TECHNOLOGY CREATIVE AD PEOPLE a safe, curated, engaging and high-qual
Slide 9: Azerion wraps all five in one offer
Value proposition to advertisers Azerion wraps all five in one offer Offering an integrated solution brings advertisers more value but we don’t see companies taking the vertical integration as far as Azerion. CONTENT REACH TECHNOLOGY CREATIVE AD FORMATS PEOPLE Highly scaled social platforms lack cre
Slide 10: Efficient and easy to use technology
Value proposition to advertisers Efficient and easy to use technology We own all the components needed to successfully run digital advertising campaigns and our open platform allows easy integration with external validation, data and inventory providers. Advertisers & Agencies Universal Buying Inter
Slide 11: Vertical integration maximizes efficiency for all parties
Value proposition to advertisers Vertical integration maximizes efficiency for all parties Illustrative allocation of highly intermediated ad spend vs. Azerion’s model Traditional ad spend value chain Azerion places ad on 3rd party content Azerion places ad on own content DSP SSP Buying efficiency f
Slide 12: Partner with digital publishers offering a wide range of monetisation service
Value proposition to publishers Partner with digital publishers offering a wide range of monetisation service Digital publishers is any company who interacts with its customers digitally - for example through online content, portals, news and videos Contracted Exclusive Azerion offerings publishers
Slide 13: Our audiences seek engaging content
Developing content and engaging audiences Our audiences seek engaging content DIGITAL ENTERTAINING QUALITY FREE Device agnostic Engaging Fast and reliable technology Free to use - Desktop - Mobile Fun Safe Freemium Platform agnostic Gamified Trust - Web - App 13
Slide 14: We reach over 500m monthly active users with brand-safe content
Developing content and engaging audiences We reach over 500m monthly active users with brand-safe content Non-game content Game content E-commerce REACH Without enough of the right people at the right time in the right place, advertising cannot work >400m >100m monthly active users monthly active us
Slide 15: Our highly diversified and engaging free to play game content
Developing content and engaging audiences Our highly diversified and engaging free to play game content Thousands of Casual Games monetized through advertisement Nine Premium Games monetized through in-game purchase Metaverse Social Card Games Average Average 18 min/day 80 min/day Spent by Spent by
Slide 16: GameDistribution offers unparalleled value proposition to game creators
Developing content and engaging audiences GameDistribution offers unparalleled value proposition to the whole spectrum of game creators on the web From small game studios… … to large AAA game developers Hassle-free distribution and Competitive and flexible Convert successful AAA titles Unlock new re
Slide 17: Operating the whole supply chain with E-Commerce
Strategy deep dive — Developing content and engaging audiences Operating the whole supply chain with E-Commerce Digital content seller and aggregator AAA and PC games store 5,200+ gaming titles across a wide One of the largest AAA games catalogues range of genres 300+ retail partners 10m+ game keys
Slide 18: Innovating in the Metaverse and digital collectibles
Developing content and engaging audiences Innovating in the Metaverse and digital collectibles Frontrunners in the Metaverse Innovating with digital collectibles Emerging opportunities • 4 metaverse communities with millions of users • Solid expertise in developing, distributing and • Azerion as a t
Slide 19: Our game content appeals to all ages, nationalities and interests
Developing content and engaging audiences Our game content appeals to all ages, nationalities and interests What age groups play our games?1 Where do our players play?2 Strategy Action Puzzle Europe 50.8% 65+ 22.7% Tile matching Sports Asia4 21.5% Male 32% 41-64 27.8% 353m Unique game North America
Slide 20: Extended value proposition to advertisers - a global entertainment and media partner
Developing content and engaging audiences Extended value proposition to advertisers - a global entertainment and media partner ADVERTISING Azerion’s unique value proposition to advertisers GAME Reach new audiences with free-to-play DISTRIBUTION casual games METAVERSE Boost brand awareness and connec
Slide 21: Consolidation and integration leading to resilient revenue growth and increased profitability
Key messages Consolidation and integration leading to resilient revenue growth and increased profitability Solid strategy delivery Strong financial performance • Successfully progressed consolidation and integration of previous acquisitions • Resilient growth in Platform and Premium Games segments 1
Slide 22: Becoming the go-to-partner for advertisers: strategic priorities and Q1 proof points
Strategy delivery Becoming the go-to-partner for advertisers for an easy-to-use, competitively priced and brand-safe digital environment Strategic priorities Q1 proof points Ad sales Local expert teams that help our clients achieve results • Grew presence in the US and Latin America, providing incre
Slide 23: Focus on integration; Strategic M&A powering growth
Strategy delivery Focus on integration; Strategic M&A powering growth Transaction Strategic rationale Integration process Integrated & Anticipated Organic Growth • Geographic diversity into LATAM & Spanish • Cross sell opportunities speaking market • Imbed ad performance management across all produc
Slide 24: Q1/23: Resilient Platform and Premium Games performance driving growth
Financial performance Q1/23: Resilient Platform and Premium Games performance driving growth EUR 113m +19.4% ● Benefits of recent acquisitions increasing top line growth Revenue vs Q1 2022 Q1 2023 ● Value optimisation reducing costs of operations EUR 9m +47.5% Adj. EBITDA vs Q1 2022 ● Focused alloca
Slide 25: Our resilient model has value drivers on both demand and supply sides
Platform model Our resilient model has value drivers on both demand and supply sides Advertisers DEMAND Consumers Direct sales Automated auction sales AZERION’S Advertising auction PROPRIETARY Digital ad buying platform FULL STACK ADTECH platform Publisher monetization services SUPPLY Premium Contra
Slide 26: Platform leveraging integrations delivering resilient growth
Financial performance Platform leveraging integrations delivering resilient growth Operational performance 18 16 ● Enhanced cross sales opportunities through newly acquired 14 12 technologies and sales teams delivering revenue diversification. + Gross Revenue Avg. 10 + + 8 per Million processed Ad R
Slide 27: Premium Games allocating resources towards profitable growth
Financial performance Premium Games allocating resources towards profitable growth Operational performance 700 0.5 ● Focus on user acquisition leading to increased average daily active 600 0.4 users, subsequently increasing ARPDAU. 500 Daily Active Users 400 0.3 + +(thousands) ● Improvements in user
Slide 28: Strong financial framework
Financial performance Strong financial framework 5-quarter rolling financial performance Q1/23 cash conversion Q1/23 net debt 28 -4 -5 27 6 9 149 10 -8 104 106 113 94 22 6 12 12 9 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Net Revenue Adjusted EBITDA ● Record first quarter performance in absolute revenue an
Slide 29: Disclaimer
Q1 2023 investor pack Disclaimer The following disclaimer applies to this document, any oral or video presentation of the information in this document by Azerion Group N.V. (“Azerion Group”) or any person on behalf of Azerion Group and any question-and-answer session that follows the oral or video p
Slide 30: Forward-looking statement
Q1 2023 investor pack Forward-looking statement The Information includes statements, including Azerion Group's financial and operational objectives that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements may be identified by the use of forward-looking termino
Slide 31: Azerion Investor Relations
IR@azerion.com Azerion Investor Relations www.azerion.com