Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — MTG — Investor Day (October 2025)
23 slides from Modern Times Group Mtg Ab Class A's investor day presentation, October 2025
Slide 1: Disclaimer
Disclaimer This presentation contains statements concerning, among other things, MTG's financial condition and results of operations tha t are forward -looking in nature. Such statements are not historical facts but, rather, represent MTG's future expectations. MTG believes that the expectations ref
Slide 2: Growth: Financial Performance & Outlook
Growth Financial Performance & Outlook Speaker: Nick Hopkins
Slide 3: MTG has returned to sustained organic growth and doubled in size post Plarium
MTG has returned to sustained organic growth and doubled in size post Plarium Reported revenue, excluding Plarium, LTM, SEKm Reported revenue, including Plarium, SEKm +8% H1 >2x Quarterly YoY Organic Growth -7% -9% +9% +6% +9% 2,911 (~$310m) 6,110 6,060 6,015 5,970 5,949 5,893 1,437 LTM Q1’24 LTM Q2
Slide 4: Revenue is well-diversified, which creates growth optionality
Revenue is well - diversified, which creates growth optionality Q2’25 Revenue by Franchise Q2’25 Revenue by Platform 5% 6% 3% Plarium Mobile 3% Word Games 24% DTC 18% 49% Strategy & Simulation Other Racing 70% 21% Tower Defense Other Q2’25 Revenue by Monetization Q2’25 Revenue by Territory 2% 2% 9%
Slide 5: We use data-driven decisions to optimize our game economies
We use data - driven decisions to optimize our game economies , balancing engagement, retention and monetization DAU, million ARPDAU, SEK +40% +44% 9.0 9.0 3.5 3.1 2.9 2.7 6.5 6.3 2.5 2.6 5.8 6.1 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Sources: MTG Reported numbers in
Slide 6: We have a simple cost structure with various levers to drive our margins
We have a simple cost structure with various levers to drive our margins Gross Revenue % of LTM Revenue Optimization Opportunities • What it is: Fees to 3rd party platform providers (primarily Apple/Google) charged on in -app purchases and subscriptions; typically, at 30% Platform Fees 1 18% • DTC o
Slide 7: Product and content innovation, and disciplined UA investment underpins growth
Product and content innovation, and disciplined UA investment underpins growth UA Spend, SEKm Exisiting studios Plarium LTM UA spend % of revenue +100% 1054 959 677 527 548 470 38% 36% 36% 37% 37% 38% Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Sources: MTG Reported numbers in reported FX 7
Slide 8: MTG has driven long-term, sustained profitable growth with attractive margins
MTG has driven long - term, sustained profitable growth with attractive margins Reported Adj EBITDA, LTM, SEKm Adj. EBITDA Adj. EBITDA margin 2 100 CAGR 28% 1 886 1681 1710 1 667 1 651 1548 1417 1452 1408 1 372 1333 1263 1293 1 103 918 738 775 28% 28% 28% 27% 27% 28% 29% 28% 28% 26% 25% 25% 24% 24%
Slide 9: Given our strong momentum and visibility, we are updating our 2025 guidance
Given our strong momentum and visibility, we are updating our 2025 guidance Total Reported Total Adj EBITDA Organic Growth¹ Revenue Margin² Current guidance 3% –7% n/a 21%–24% New SEK bn 7% – 9% 21%– 24% guidance 11.4– 11.7 Notes: 1) Organic growth is defined as revenues from the studios MTG owned t
Slide 10: We are also providing new medium-term guidance
We are also providing new medium - term guidance Definition Medium term guidance Group gross revenue growth in constant currencies. For 3- 7% Revenue Growth avoidance of doubt, excluding additional M&A Revenue Growth Over the Medium Term Group EBITDA adjusted for M&A transaction costs, Increase in A
Slide 11: Revenue growth of 3-7% to be driven by recently launched and to-be-launched new games
Revenue growth of 3 - 7% to be driven by recently launched and to- be - launched new games, with stability in top games CAGR 3 - 7% SEK 11.4 - 11.7bn (~$1.2bn) 2025 Top Other Existing Recently Launched New Game Medium Term Revenue Games Franchises New Games Pipeline Revenue Notes: USD figure present
Slide 12: Margins should increase to >24% over medium term
Margins should increase to >24% over medium term as DTC and synergy initiatives offset UA investments >24% margin 21- 24% 2025 Adj EBITDA DTC / UA Scale Cost Medium Term Adj Margin Platform Fees¹ Investment Efficiencies Synergies EBITDA Margin Notes: 1) Includes Platform Fees, Royalties and Revenue
Slide 13: Starting in 2026 we intend to adjust our disclosure
Starting in 2026 we intend to adjust our disclosure to provide greater granularity and clarity Reporting Today Future Reporting Revenue Group & Franchise Group & Segment Key Financials UA Spend Group Group & Segment Adj. EBITDA Group Group & Segment DAU Group Group & Segment KPIs ARPDAU Group Segmen
Slide 14: Growth: Capital Allocation & Value Creation
Growth Capital Allocation & Value Creation Speaker: Nick Hopkins
Slide 15: MTG has consistently delivered strong, stable cash generation
MTG has consistently delivered strong, stable cash generation Normalized unlevered free cash flow 1, LTM Last 3 year average free cash flow composition 3 Unlevered free c ash flow 2 % of revenue 927 1,003 1,062 1,053 935 1,003 1,275 Adj EBITDA 100% (~$135m 4) 1,160 Tax ~30% ~8% 984 975 923 845 Capex
Slide 16: We have returned significant capital to shareholders whilst also undertaking material M&A
We have returned significant capital to shareholders whilst also undertaking material M&A Cash generation & deployment since 2022 SEK 8bn Cash proceeds from SEK 3bn sale of assets SEK 3bn Cumulative free cash flow Additional new debt 1 SEK 14bn (~$1.5bn 2) SEK 4bn SEK 10bn Returned to shareholders C
Slide 17: We have substantially grown our underlying earnings and cash flow per share
We have therefore substantially grown our underlying earnings and cash flow per share Adj EPS 1 UFCF per share CAGR 14% CAGR 25% 9.2 8.6 6.6 4.9 FY’22 LTM Q2’25 FY’22 LTM Q2’25 Notes: 1) Adjusted Net Income is defined as net income excluding non -cash items in the net finance and PPA; 2) NOSH is exc
Slide 18: We have a healthy balance sheet, which is expected to delever
We have a healthy balance sheet, which is expected to delever on a status quo basis Q2’25 leverage Balance sheet deleveraging 1 1.1x 1.6x Net financial debt Net debt 4 607 2.0x (~$490m 2) 1424 3 183 (~$150m 2) 1.5x (~$340m 2) 1.0x 0.5x 0.0x Net financial debt Earn -out liabilities Net debt Q2 2025 F
Slide 19: Organic growth ambitions will be enhanced by value-accretive M&A
Organic growth ambitions will be enhanced by value - accretive M&A M&A framework M&A firepower 1 Net debt Net debt @ 2x 2 > Ongoing M&A sourcing and evaluation core to DNA SEK 3bn SEK 6bn > Focus on Casual and Midcore, as well as potential new districts ~$300m 3 ~$600m 3 > IP, team and KPIs remain c
Slide 20: Capital allocation to prioritize return-accretive investments, with excess liquidity returned
Capital allocation to prioritize return - accretive organic and inorganic investments , with excess liquidity returned to shareholders MTG is expected to continue to generate significant cash flows going forward which will be prioritised for value accretive organic and inorganic growth initiatives.
Slide 21: As Village Architect, we assess value creation opportunities including a possible Indian IPO of PlaySimple
As Village Architect, we assess value creation opportunities for our Districts, including a possible Indian IPO of PlaySimple Architect toolkit Possible Indian listing of PlaySimple Acquisitions Exploring structural opportunities that may include an Indian IPO Portfolio optimization VC investments C
Slide 22: Growth: Key takeaways
G rowth: K ey takeaways > Sustainable above -market growth of 3 -7% > DTC initiatives & synergies to enhance margins >24% > Strong cash generation at >60% UCC > Capital prioritized for growth with excess returned > Deploy architect toolkit w/ evaluation of PlaySimple IPO 22
Slide 23: Wrap-up and Q&A
Wrap - up and Q&A arket leading company M We are one of the leading mobile game operators globally ransformative company T We are transforming our operating model to unleash our full potential rowing company G We will continue to drive sustainable, profitable growth and value creation 23