Tinybuild Inc. · LSE:TBLD
Tinybuild — H1 2021 Earnings Presentation
30 slides from Tinybuild's earnings presentation, September 2021
Slide 1: H1 2021 Results Presentation
H1 2021 RESULTS PRESENTATION
Slide 2: Disclaimer
DISCLAIMER IMPORTANT: You must read the following disclaimer before continuing. The following disclaimer only and is not intended to be relied upon as advice to investors or potential investors, and does not Presentation nor any copy of it may be taken or transmitted into or distributed in Canada, A
Slide 3: Agenda
AGENDA H1 2021 - Operational review (Alex Nichiporchik, CEO) 5 H1 2021 - Financial review (Tony Assenza, CFO) 10 2021/ 2022 - Update and Outlook (Alex Nichiprochik, CEO) 15 Appendix 21 3
Slide 4: Showreel
SHOWREEL a, €68§"™"—"7
Slide 5: H1 2021 Operational Review
H1 2021 OPERATIONAL REVIEW
Slide 6: H1 2021 Operating Highlights
H1 2021 OPERATING HIGHLIGHTS $18.6m 18% 29 consolidated revenues games in the adj. EBITDA growth pipeline (ytd) $50m 78% 3 gross proceeds of sales from Own-IP acquihires raised at IPO closed 6
Slide 7: Diversified Portfolio, Focused on Own IP
DIVERSIFIED PORTFOLIO, FOCUSED ON OWN IP OVER 40 GAMES H1 21 CATALOGUE AT THE END OF JUNE ‘21, CREATING 22.4% A DIVERSE REVENUE MIX 100% 3.7% 4.9% 6.9% 10.3% 12.0% 90% 77.6% 80% 35.4% 29.6% 70% FY 17 78% 47.5% 41.8% 64.7% 60% Own IP 3rd Party 6.1% 50% 26.8% 40% 30% 54.7% 17.1% 23.1% 50.4% 49.6% OF G
Slide 8: Quality of Back Catalogue Underpins Growth
QUALITY OF BACK CATALOGUE UNDERPINS GROWTH Back catalogue as a % of gaming revenue* SOCIAL $40m MOMENTUM $35m $30m 25% MODDING / USER $25m GENERATED 21% CONTENT $20m 28% 9% $15m 75% TIMELESS 79% $10m CONTENT 49% 72% 91% $5m 51% $0m FY17 FY18 FY19 FY20 H1 21 DOWNLOADABLE CONTENT (DLCS) Back Catalogue
Slide 9: Focused M&A Strategy (H1 2021)
FOCUSED M&A STRATEGY (H1 2021) We’re Five Games Hungry Couch DogHelm Date: February 2021 Date: February 2021 Date: June 2021 Type: Acquihire Type: Acquihire Type: Acquihire Location: Minnesota, USA Location: Russia Location: Los Angeles, USA Team size: 9 Team size: 11 Team size: 1 Games: Totally Rel
Slide 10: H1 2021 Financial Review
H1 2021 FINANCIAL REVIEW
Slide 11: H1 21 - Financial Highlights
H1 21 - FINANCIAL HIGHLIGHTS Net Game Revenues1 Adj. EBITDA2 Adj. Operating Cash Flow3 $40m 80% $18m 45.0% $18m 160.0% $16m 40.0% $16m 140.0% $35m 70% $14m 35.0% $14m $30m 120.0% 60% $12m 30.0% $12m $25m 100.0% $10m 25.0% $10m $20m 50% 80.0% $8m 20.0% $8m $15m 60.0% 40% $6m 15.0% $6m $10m 40.0% $4m
Slide 12: Profit & Loss
PROFIT & LOSS $’m, Unaudited results (30 June) Game & Dev Revenue H1 20 18.1 H1 21 18.4 Commentary Growth 1.5% § Gaming revenues slightly ahead in H1, reflecting Events 0.4 0.3 release schedule skewed to H2 and demanding Growth -39.2% comparables (Totally Reliable Delivery Service Total Revenue 18.5
Slide 13: Cash Flow
CASH FLOW $’m, Unaudited results (30 June) H1 20 H1 21 Cash flows from operating activities (Loss)/profit for the year 1.1 (0.3) Commentary Share-based payments 3.6 2.2 Amortisation of intangible assets 2.6 1.5 § $3.8m adj. operating cash flow generation in H1 Depreciation of tangible fixed assets 0
Slide 14: Balance Sheet
BALANCE SHEET $’m, Unaudited results (30 June) FY 20 H1 21 Trade and other receivables 5.0 7.9 Cash and cash equivalents 26.3 61.6 Commentary Total Current Assets 31.3 69.6 Intangible assets 15.1 21.9 § Net cash position increases to $61.6m cash at 30 Property, plant and equipment: 0.8 0.7 June 2020
Slide 15: 2021 Update and Outlook
2021 UPDATE AND OUTLOOK
Slide 16: Progress in 2021
PROGRESS IN 2021 § Bad Pixel is the biggest acquihire to date: $3m EBITDA 2020 and $6.5m upfront consideration (total max consideration of up to $17.1m) § Largest pipeline ever with 29 games under development, including 10 new titles signed since the beginning of the year § Launched 4 games plus 5 n
Slide 17: It's All About Great Games
IT’S ALL ABOUT GREAT GAMES Launched Near-launch Cartel Tycoon (Early Hello Engineer (Early Mayhem in Single Black Skylands (Early Access) Access) Valley Access) A survival business sim A puzzler, multiplayer Hello A crazy adventure platformer full Skypunk-genre, open world inspired by the '80s narco
Slide 18: New Games Recently Announced
NEW GAMES RECENTLY ANNOUNCED Tinykin BookWalker SpiderHeck An innovative 3D puzzle platformer where A thief with an ability to dive into books is A physics-based brawler that’s easy to pick astronaut Milo uses hundreds of tinykin forced to use his powers to track and steal up but difficult to master
Slide 19: Hello Neighbor Franchise
HELLO NEIGHBOR FRANCHISE Hello Neighbor franchise stats… Social, Puzzler GAMES 3 released 70M+ 5M+ 2 pipeline Sandbox HN downloads HN2 downloads GaaS Linear Chapter based Linear Chapter based 2.8M+ Animated Secret Neighbor TV series iOS downloads medium-term pipeline GRAPHIC NOVELS >140K sold TV EPI
Slide 20: M&A Execution Post-Period End
M&A EXECUTION POST-PERIOD END $25m credit facility with BoA to support further M&A Animal Bad Pixel Date: August 2021 Date: September 2021 Type: Acquihire Type: Acquihire Location: Los Angeles, USA Location: Russia Team size: 9 Team size: 7 Games: Rawmen Games: Deadside 20
Slide 21: Bad Pixel Acquihire
BAD PIXEL ACQUIHIRE Highlights § Bad Pixel, a studio with 7 developers based in Russia § Upfront consideration is $6.5m ($4.9m cash and $1.6m shares) § Total maximum consideration up to $17.1m § Deadside is a hardcore multiplayer shooter with survival elements § The game launched on Steam in early a
Slide 22: Strategy Check
STRATEGY CHECK • Increased pipeline to 29 games (10 signed since the beginning of the year) 01 LEVERAGING EXISTING IP • Secret Neighbor topped iOS charts (2.8m downloads) • Graveyard Keeper DLC (Better Saved Souls) planned for 2021 • 5 acquihires since the beginning of the year • Growing deal size,
Slide 23: Appendix
APPENDIX
Slide 24: tinyBuild
TINYBUILD …creating …across Global …focused on long term multiple developer IP ownership… scalable media publisher… franchises… formats 24
Slide 25: Brief History of tinyBuild
BRIEF 2013 - 2015 2016 - 2018 2019 2020 2021 & beyond… HISTORY Acqui-hired… Acquihired… No Time to Transitioned to 2nd Secret Neighbor Explain Party IP & AA launch OF released games 63 TINYBUILD Acquihired Invested in Pine Dynamic Pixels Founder owned Events & Highlights DevGamm 40 35 Top brand in E
Slide 26: A Thorough, Yet Agile, Selection Process
A THOROUGH, YET AGILE, SELECTION PROCESS Tested process quickly identifies IP to pursue Developer led differentiates us… Inbound Desktop Conferences Reach Social DISCOVER pitches research presence Multimedia extend 1,000+ p/a audience Services 2nd party IP marketing, video creative production, QA co
Slide 27: Nick Van Dyk Joins the Board
NICK VAN DYK JOINS THE BOARD Alex Nichiporchik Luke Burtis Michael Schauble Tony Assenza Chief Executive Officer & Chief Operating Officer & Vice President – Business Chief Financial Officer Founder Founder Development EXPERIENCED 16 years’ BD experience 19 years' industry experience 18 years' indus
Slide 28: Accounting: Amortisation Policies
ACCOUNTING: DEVELOPER AMORTISATION ADVANCE AMORTISATION 2nd and 3rd party developer advances are capitalised on payment and recognised on the P&L in line with revenue until the capitalised development advances are fully amortised POLICIES (2ND & 3RD PARTY) DEVELOPER SALARY AMORTISATION Developer sal
Slide 29: Graveyard Keeper: Weeper
GravevarD WEEPER
Slide 30: Thank You!
ee tiny = Build