Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Q4 2019 Earnings Presentation
15 slides from Modern Times Group Mtg Ab Class A's earnings presentation, 2020
Slide 1: BT NEL ISG Ne eS SEI Ve ON N™
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Slide 2: MTG continues to deliver on its strategic direction
MTG continues to deliver on its strategic direction, with seasonally solid development in the quarter: * Net sales growth of 15 % to SEK 1,163 (1,009) million * Adjusted EBITDA of SEK 84 (43) million Esports sales up 15 %, with O&O growing by 21%, including one more Master property compared with Q4
Slide 3: Esports transformation journey on track
track ion journey on Esports transformat Esport sales FY 2019 vs FY 2017 (Revenue development, %) Esport sales Q4 2019 vs Q4 2017 (Revenue development, %) 1030 Jeysiiqnd Oza NOW / APY eIpeaW sdiyssosuods 103% 1830 -69% Jeysiignd Oca NOW / APY elpa| 108% sdiyssosuods Note: One-time case study
Slide 4: MTG continues to deliver on its strategic direction
MTG continues to deliver on its strategic direction, with seasonally solid development in the quarter: * Net sales growth of 15 % to SEK 1,163 (1,009) million * Adjusted EBITDA of SEK 84 (43) million Esports sales up 15 %, with O&O growing by 21%, including one more Master property compared with Q4
Slide 5: Continued growth in esports
Net sales, reported (SEKm) CH15%) Q418 Q419 Hl Esports services HN Owned and operated Continued growth in esports Adjusted EBITDA (SEKm, %) -5,0% -10,0% Q418 Q419 HB Adj. EBITDA —® Adj. EBITDA margin Mo 0&0 properties aais activated Masters 3 4 Challengers 31 28 Open 4 3 ESL ONE RIO 2020 MAY 11-24.
Slide 6: Esports partnerships and tournaments
edivisie DreamHack entered a contract with the Dutch football League Eredivisie on cooperation around the Dutch EA SPORTS FIFA 20 League, eDivisie with a considerable prize pool of EUR 100,000 S&S” ESL to bring ESL One powered by Intel® to Rio De Janeiro, Brazil, as part of the new ESL Pro Tour. The
Slide 7: IEM Beijing 2018 — Part of another event
IEM Beijing 2018 — Part of another event IEM Chengdu in 2009 was the first ESL hosted tournament in China. Over these last 10 years we’ve leveraged preexisting events to run IEM (i.e. trade shows & exhibitions) Airtime (Hrs)* Hours Watched (M)* Average Viewers (K)* Peak Concurrent Viewers (K)* eo, ©
Slide 8: MTG announced strategic review of its gaming vertical in the quarter
MTG announced strategic review of its gaming vertical in the quarter * In Q4 2019, we announced a strategic review of our gaming o) vertical including the VC Fund’s gaming investments SsinnoGames * The purpose is to evaluate the best ways to create and crystalize value for shareholders rKONGREGATE |
Slide 9: Mobile continues to drive gaming revenue growth
— Mobile continues to drive gaming revenue growth — Net sales, reported 0 InnoGames achieved good growth in Q4 2019, (SEKm) @InnoGames ending the year with strong development of its CH17%) existing games portfolio, especially Forge of Empires 650 0 InnoGames' portfolio of classic games continues VN
Slide 10: Gaming vertical saw improved Adj. EBITDA and decrease in MAU and DAU
Gaming vertical saw improved Adj. EBITDA and decrease in MAU and DAU driven by removal of two third party games in Kongregate Adjusted EBITDA (SEKm) 174 106 Q3"18 Q319 Adjusted EBITDA margin (%) 29% 27% 19% ales 19% Q418 Qri1i9 Q219 Q319 Q419 ARPDAU (SEK) 2.8 2.9 22) 2.6 2.4 Q418 Qri1i9 Q219 Q319 Q4
Slide 11: Strong pipeline of mobile-first games in 2020
Strong pipeline of mobile-first oe in 2020 &sinnoGames — = Simulation = Successor of = Resource = New game = Idle title = Idle title = Idletitle = Idle title = Cross-platform game in FoE as #1 Management being strategy game Resource mobile City- game developed from Synapse, Management Builder game —
Slide 12: Q4 income statement
Q4 income statement (SEKm) Q4 2019 Q4 2018 Q4 2019 Comments Adjusted EBITDA 84 43 eral ders Oren by the gaming vertical which reported lower marketing Adjusted EBITDA margin 7% 4% I Sect roy Adjustments -207 -3 LT: SEK 11(4) million for total group EBITDA -123 40 M8A: SEK 5 (12) million related to p
Slide 13: Capex, cashflow and cash balance
Capex, cashflow and cash balance A Capex 66 44 of which Gaming 62 36 VC Fund investments of SEK 14 million, two new and one follow-on. Fund now SEK 221.5 million invested in 19 companies Net cash flow from operations -70 of which changes working capital -36 Net cash at end Q3 1,824
Slide 14: Three strategic growth levers for 2020
Three strategic growth levers for 2020 — 4 games in development Commercial Strengthened publisher from Inno + 5 new games professionalization through relationships integrated into releases from Kong planned partnership with Nielsen the ESL Pro Tours &InnoGames CEL sen OES iotsen ESL PRO TOUR
Slide 15: Summary
Summary Solid operational development in Q4 2019 with net sales up 15 % Esports sales up 15 %, with O&O growing by 21%, driven by strong sponsorship development Strong sales growth for the gaming vertical of 17 %, supported by a continued operational recovery in Kongregate and solid development for
Modern Times Group MTG — Q4 2019 Earnings Presentation on 6ix