Enad Global 7 Ab · OMXSTO:EG7
Enad Global 7 Ab — Q2 2022 Earnings Presentation
17 slides from Enad Global 7 Ab's earnings presentation, Aug 23, 2022
Slide 1: Investor Presentation Apr-Jun 2022
I N V E S T O R P R E S E N TAT I O N APR-JUN 2022
Slide 2: Summary Snapshot Q2 2022
• Global gaming group with a full suite of capabilities • Game development and live service operations (PC, console, mobile) • Digital and physical publishing and distribution • Premier marketing and creative branding services • Home of some of the most iconic brands in gaming: • EverQuest • Lord of
Slide 3: Financial Highlights from the Quarter
Financial Highlights from the Quarter • Net Revenue of SEK 462.8 (311.1) million • 49% y-o-y growth • Strong organic growth of 41% • Adjusted EBITDA of SEK 84.3 (81.1) million • Solid cash flows with SEK 63.5 million of operating cash flows for the period • Key takeaways: • Strong results above expe
Slide 4: Operational Highlights – Service Segment
Operational Highlights – Service Segment • Key figures • Net Rev of SEK 192 million, representing 103% growth – all organic • Adj EBITDA of SEK 26 million, representing 297% growth and 14% margin • Operational highlights • Fireshine continues strong performance • Core Keeper has sold over 1mm units
Slide 5: Operational Highlights – Game Segment
Operational Highlights – Game Segment • Financial performance highlights • Net Rev of SEK 270 million, representing 25% growth – 14% organic • Adj EBITDA of SEK 72 million, representing 27% margin • Highlights for the quarter included • My Singing Monsters had its best quarter in history • DAU incre
Slide 6: Operational Highlights – Group
Operational Highlights – Group • Innova sale update • Making progress with target closing by end of Q3 • Board update • New chairman of the board • Jason Epstein, the 2nd largest shareholder of EG7 • Jason will be taking a more active role in driving growth • New board member • Shum Singh, a leading
Slide 7: Q2 2022 Financial Discussion
Q2 2022 FINANCIAL DISCUSSION
Slide 8: Net Revenue and Adjusted EBITDA
Net Revenue and Adjusted EBITDA MSEK QUARTERLY LTM 2 000 100% 600 100% 1 800 1 716 90% 499 90% 1 564 500 463 1 600 1 468 80% 80% 400 70% 1 400 70% 400 354 1 165 60% 1 200 60% 311 300 50% 1 000 891 50% 40% 800 40% 200 26% 27% 30% 600 30% 20% 18% 21% 22% 22% 21% 18% 19% 107 20% 400 20% 100 81 71 92 84
Slide 9: Net Revenue by Segment
LTM NET REVENUE Net Revenue by Segment 2 000 MSEK 1 800 QUARTERLY NET REVENUE 1 600 708 1 400 556 611 1 200 454 1 000 268 192 818 876 800 144 779 104 429 95 613 600 912 953 1 007 420 711 400 250 231 256 270 216 462 200 - 2Q21 3Q21 4Q21 1Q22 2Q22 2Q21 3Q21 4Q21 1Q22 2Q22 Game Service Game Service Sus
Slide 10: Game Segment – Q2 2022 Net Revenue and Adj EBITDA Mix
Game Segment – Q2 2022 Net Revenue and Adj EBITDA Mix MSEK 2Q22 Game Segment Net Revenue Mix 1 ; 0% 23 ; 9% 43 ; 16% Big Blue Bubble Daybreak Piranha Toadman + AMG 203 ; 75%
Slide 11: Service Segment – Q2 2022 Net Revenue and Adj EBITDA Mix
Service Segment – Q2 2022 Net Revenue and Adj EBITDA Mix MSEK 2Q22 Service Segment Net Revenue Mix 50 ; 26% Fireshine Petrol 142 ; 74%
Slide 12: Target and guidance
Target and guidance 2022 June. Incl: 45 MSEK MSEK MTGO QUARTERLY YoY Growth YoY Growth LTM Net Revenue MSEK YoY Growth 25% 41% 28% 2 001 1 716 499 1 801 463 1 601 400 1 316 1 401 354 1 201 311 1 001 801 601 107 401 92 84 201 81 71 1 Jul Aug Sep Okt Nov Dec Jan Feb Mar Apr Maj Jun 2Q21 3Q21 4Q21 1Q22
Slide 13: Strong balance sheet
Net Debt to EBITDA ratio and cash MSEK 753 Q2 cash flow 800 0,7 694 700 0,6 600 546 534 557 Cash OB excl Innova 377 493 0,5 484 500 442 449 Operation +64 381 0,4 Investing - 114 400 0,3 Financing +34 300 0,28 Currency fluctuations in liquidity +21 0,25 0,2 200 Delta Cash +4 100 0,1 Cash CB 381 - - Q
Slide 14: Looking Ahead
LO O K I N G A H EA D
Slide 15: Looking Forward
Looking Forward Short-term Medium-term Long-term Value Drivers Value Drivers Value Drivers • Innova sale • Revamp of existing live games • New products based on owned IPs and existing 3rd party IPs • Removing geopolitical risk • LOTRO revamp • Emphasis on long-term growth over • Product drivers • DC
Slide 16: EG7 Investment Highlights
EG7 Investment Highlights • Consistently delivering strong results quarter after quarter • Outstanding organic growth despite the market challenges • Stable recurring revenues, consistently producing strong operating cash flows • Strong liquidity and credit profile critical especially during uncerta
Slide 17: Q&A
Q&A