Verve Group Se Class A · OMXSTO:VER
Verve Group Se Class A — Media and Games Invest — Merger or Acquisition (January 2021)
21 slides from Verve Group Se Class A's merger presentation, January 2021
Slide 1: KingsIsle Acquisition
KINGSISLE ACQUISITION January 2021
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: MGI acquires KingsIsle
MGI acquires KingsIsle Leading North American game developer and publishing platform with +50 million of registered gamers ▪ Transforming and highly accretive acquisition increasing EBITDA1 by app. 60% ▪ Strengthens the quality of earnings in MGI’s games segment ▪ Purchase price USD 126 million plus
Slide 4: Today's presenters and ownership structure
Today’s presenters and ownership structure Shares listed on Frankfurt Stock Exchange and Nasdaq First North Premier Stockholm Shareholders (fully diluted) Remco Westermann 33% Remco Westermann CEO & Chairman of the Board since 2012 • Manager, entrepreneur and investors with more than 25 Remco Wester
Slide 5: I. Introduction KingsIsle
I. Introduction KingsIsle II. Games overview III. Growth Strategy IV. Financial section
Slide 6: KingsIsle at a glance
KingsIsle at a glance Leading North American game developer and publishing platform with +50 million of registered gamers Key facts Key people managing KingsIsle for +10 years KingsIsle, based in Austin, Texas, is a leading game Leah Ruben Emil Ramirez developer and publisher founded in 2005 Directo
Slide 7: KingsIsle Milestones
KingsIsle Milestones Company accomplishments from inception to current day #1 Best Family Game of As of February 2013, Wizard101 is now 2009 by MMORPG.com also available on the Mac® KingsIsle introduced a big Inspired by his teenage update where it retouched son, who was a fan of their character exp
Slide 8: II. Games overview
I. Introduction KingsIsle II. Games overview III. Growth Strategy IV. Financial section
Slide 9: Two strong MMO Games with fully owned IP's
Two strong MMO Games with fully owned IP’s Subscription Subscription Revenue Revenue & Protection & Protection share share In-Game of minors In-Game of minors 93% 7% Items Items Players take on the role of students of Ravenwood School of The main storyline takes the player through Skull Island. A Ma
Slide 10: Wizard101: The Harry Potter Of Online Games
Wizard101: The Harry Potter Of Online Games A dedicated customer base with multi-year relationships Massively Multi-player Recurring revenues1 Substantial revenues Game 51% USD +375m revenues 23% 16% 10% +50m gamers 1 year 1-3 years 3-5 years > 5 years • An colorful MMORPG, first launched • Over 50%
Slide 11: Pirate101: An engaging sister title in a new setting
Pirate101: An engaging sister title in a new setting Turn-based exploration MMORPG with an expansive atmosphere and engaging content Massively Multi-player Recurring revenues1 Substantial revenues Game 39% 32% USD +25m revenues 18% 11% +7.5m gamers 1 year 1-3 years 3-5 years > 5 years • Spin-off MMO
Slide 12: III. Growth Strategy
I. Introduction KingsIsle II. Games overview III. Growth strategy IV. Financial section
Slide 13: Games offer significant organic growth opportunities
Games offer significant organic growth opportunities Organic growth, geographic expansion, licensing deals, platform extensions 1 • Expanding the game in new territories by self publishing and with third party publishers Expansion through • Leverage Gamigo’s inhouse publishing competence to improve
Slide 14: IV. Financial section
I. Introduction KingsIsle II. Games overview III. Growth strategy IV. Financial section
Slide 15: Pro Forma Financials Jan-Sep 2020 (unaudited)
Pro Forma Financials Jan-Sep 2020 (unaudited) KingsIsle is transformative for MGI adding about 60% Group EBITDA YTD 109 (EURm) Comments 92 • The transaction is transformative for MGI as it will materially increase the size and profitability of MGI Group, adding about 31 60% Group EBITDA on a 28% pro
Slide 16: Pro Forma Financials Jan-Sep 2019 vs 2020
Pro Forma Financials Jan-Sep 2019 vs 2020 KingsIsle is transformative for MGI with a YoY EBITDA growth of +158% (EURm) 109 Comments 28% • The combined pro forma 55 revenues Jan-Sep 2020 grow YoY by +98% to EUR 109m1,2 31 22% • The combined pro forma 12 adj. EBITDA Jan-Sep 2020 grow YoY by +158% to E
Slide 17: Purchase Price USD 126 million plus earn-outs
Purchase Price USD 126 million plus earn-outs The fixed Consideration represents an EV/EBITDA multiple of 6.0x Transaction structure Purchase price table USDm EV/EBITDA • FY 2021 Guidance for KingsIsle: Revenues Closing Consideration Payment 63 3.0x1 of USD 32 million; EBITDA of USD 21 million Defer
Slide 18: Oaktree Capital Management, LP ("Oaktree")
Oaktree Capital Management, LP (“Oaktree”) Strategic new minority anchor investor enables the KingsIsle acquisition holding now ~9% of MGI Oaktree “We are excited to partner with MGI. ▪ US Investment firm HQ in Los Angeles MGI´s diversified model reduces the dependence on individual games. Its ▪ USD
Slide 19: Prudent mid-term financial targets 2021…
Prudent mid-term financial targets 2021… Revenue CAGR EBITDA margin EBIT margin Net leverage 25-30% 25-30% 15-20% 2-3x Source: Group information 19
Slide 20: …and additional highlights
…and additional highlights Relocation to Luxembourg 2 New Mobile Games Acquisition of LKQD (connected TV) Introduction of B shares ESOP for Key employees Board & CFO buys shares for €350.000+ 20
Slide 21: Media and Games Invest
G Media and Games invest
Media and Games Invest — Merger or Acquisition (January 2021) on 6ix