Slide 1: Strategy deep dive: Q3 2022 results announcement
Strategy deep dive Q3 2022 results announcement
Slide 2: Agenda and Speakers
Strategy deep dive Agenda Speakers 01 Market overview and Azerion business model 02 Unique value proposition to advertisers 03 Developing content and engaging audiences Atilla AYTEKIN Sebastiaan MOESMAN Co-CEO CRO 04 Growth and M&A case studies 05 Financial performance Jurriaan VAN TEUNENBROEK Ben D
Slide 3: Disclaimer
Strategy deep dive Disclaimer The following disclaimer applies to this document, any oral or video presentation of the information in this document by Azerion Holding B.V. (“Azerion Holding”), Azerion Group N.V. (“Azerion Group”) or any person on behalf of Azerion Holding or Azerion Group and any qu
Slide 4: Forward-looking statement
Strategy deep dive Forward-looking statement The Information includes statements, including Azerion Holding’s or Azerion Group's financial and operational objectives that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements may be identified by the use of forwa
Slide 5: Market overview and Azerion business model
Strategy deep dive Q3 2022 results announcement Market overview and Azerion business model
Slide 6: Introduction: Digital advertising is growing fast
Strategy deep dive — Introduction Digital advertising is growing fast, as audiences move to digital 2.5bn 10 years ago 5bn Today 14% $800bn ‘22-’26 CAGR 2026 Market size1 # Internet users Digital advertising Sourced from ResearchAndMarkets and “Datareportal – Digital 2022: Global overview report”; (
Slide 7: Fragmented digital advertising landscape creates inefficiencies
Atilla Strategy deep dive — Introduction Fragmented digital advertising landscape creates inefficiencies Agency Demand-side Ad networks Supply-side Advertiser platform platform Publisher Ad servers Create Buy Facilitate digital Facilitate digital ads media inventory inventory sale purchases Spends A
Slide 8: Our integrated model optimises the advertising value chain
Strategy deep dive — Introduction Our integrated model optimises the advertising value chain Advertiser Agency Demand-side Ad networks Supply-side Publisher platform platform owned publishers Sales Proprietary technology platform Exclusive publishers Contracted publishers Ad services and optimisatio
Slide 9: Our integrated model optimises the advertising value chain
Strategy deep dive — Introduction Our integrated model optimises the advertising value chain Advertiser Agency Demand-side Ad networks Supply-side Publisher platform platform owned publishers Autom. Advertising auction auction platform sales Digital ad buying Exclusive platform Publisher publishers
Slide 10: The Azerion mission
Strategy deep dive — Introduction The Azerion mission “ We help brands Advertisers improve the way they Our mission is to be the engage with audiences go-to-partner for Consumers advertisers for an easy- to-use, competitively priced Content We entertain and brand-safe digital ” audiences Non-game Ga
Slide 11: Scalable platform providing access to a global, engaged audience
Strategy deep dive — Introduction Our scalable platform provides access to a global, diverse and engaged audience, connecting publishers and game creators to advertisers Consumers Advertisers Digital publishers Game creators 500m+ 300k+ >1k 1.2k+ Unique 400k+ Contracted Employees monthly Advertisers
Slide 12: Building on solid track record of outperforming market growth
Strategy deep dive — Introduction Building on solid track record of outperforming market growth Strong and resilient growth … …pulling five levers to grow faster than the market Revenue (EURm) Continued integration of past acquisitions driving synergies and efficiencies Increase volume of direct sal
Slide 13: Unique value proposition to advertisers
Strategy deep dive Q3 2022 results announcement Unique value proposition to advertisers
Slide 14: Our value proposition to advertisers
Strategy deep dive – Our value proposition to advertisers Our value proposition to advertisers We offer digital advertising results as a single service. We provide globally scaled audiences to advertisers in an easy and affordable way and in a safe, highly engaging, fun and quality content environme
Slide 15: One service, five core elements of value for our clients
Strategy deep dive – Our value proposition to advertisers One service, five core elements of value for our clients CONTENT REACH TECHNOLOGY CREATIVE AD PEOPLE FORMATS a safe, curated, engaging bring competitively priced efficient and easy to use Display, video, high- local expert teams that and high
Slide 16: Specialists in our industry focus on a particular vertical
Strategy deep dive – Our value proposition to advertisers There are specialists in our industry, focusing on a particular vertical Specializing in a single area, companies can maximize their added value on a particular product or service, but they can never take ownership of an advertisers’ overall
Slide 17: Azerion wraps all five in one offer
Strategy deep dive – Our value proposition to advertisers Azerion wraps all five in one offer Offering an integrated solution brings advertisers more value but we don’t see companies taking the vertical integration as far as Azerion. CONTENT REACH TECHNOLOGY CREATIVE AD FORMATS PEOPLE Highly scaled
Slide 18: One service, five core elements of value for our clients
Strategy deep dive – Our value proposition to advertisers One service, five core elements of value for our clients We are constantly growing our existing business and products and adding new capabilities through acquisitions and partnerships CONTENT REACH TECHNOLOGY CREATIVE AD PEOPLE FORMATS a safe
Slide 19: We reach over 500m monthly active users with brand-safe content
Sebastiaan Strategy deep dive — Our value proposition to advertisers We reach over 500m monthly active users with brand-safe content Non-game content Game content E-commerce REACH Without enough of the right people at the right time in the right place, advertising cannot work >400m >100m monthly act
Slide 20: Our value proposition to digital publishers
Strategy deep dive — Our value proposition to advertisers Our value proposition to digital publishers Non-game content Maximize ad revenue REACH We help publishers grow by giving them access to premium advertisers worldwide, future-proof ad technology and revenue optimization tools Technology | Adve
Slide 21: Efficient and easy to use technology
Strategy deep dive — Our value proposition to advertisers Efficient and easy to use technology We own all the components needed to successfully run digital advertising campaigns and our open platform allows easy integration with external validation, data and inventory providers. Advertisers & Agenci
Slide 22: Vertical integration maximizes efficiency for all parties
Strategy deep dive — Our value proposition to advertisers Vertical integration maximizes efficiency for all parties Illustrative allocation of highly intermediated ad spend vs. Azerion’s model Traditional ad spend value chain Azerion places ad on 3rd party content Azerion places ad on own content DS
Slide 23: High-impact, creative advertising formats
Strategy deep dive — Our value proposition to advertisers High-impact, creative advertising formats CREATIVE AD FORMATS The message and the format need to impact people in a way that Video Desktop Skin makes them interested and Page scroll Ad swipe remember the ad Premium Desktop Skin Premium Mobile
Slide 24: Local expert teams that help get the results advertisers need
Strategy deep dive — Our value proposition to advertisers Local expert teams that help get the results advertisers need PEOPLE Digital advertising can be complicated and people that take ownership of its success are crucial 24
Slide 25: Developing content and engaging audiences
Strategy deep dive Q3 2022 results announcement Developing content and engaging audiences
Slide 26: Our audiences seek engaging content
Strategy deep dive — Developing content and engaging audiences Our audiences seek engaging content DIGITAL ENTERTAINING QUALITY FREE Device agnostic Engaging Fast and reliable technology Free to use - Desktop - Mobile Fun Safe Freemium Platform agnostic Gamified Trust - Web - App 26
Slide 27: Highly diversified and engaging free to play game content
Strategy deep dive — Developing content and engaging audiences Our highly diversified and engaging free to play game content Thousands of Casual Games monetized through advertisement Nine Premium Games monetized through in-game purchase Metaverse Social Card Games Average Average 18 min/day 80 min/d
Slide 28: Innovating in the Metaverse and digital collectibles
Strategy deep dive — Developing content and engaging audiences Innovating in the Metaverse and digital collectibles Frontrunners in the Metaverse Innovating with digital collectibles Emerging opportunities • 4 metaverse communities with millions of • Solid expertise in developing, distributing and •
Slide 29: GameDistribution value proposition to game creators
Strategy deep dive — Developing content and engaging audiences GameDistribution offers unparalleled value proposition to the whole spectrum of game creators on the web From small game studios… … to large AAA game developers Hassle-free distribution Competitive and flexible Convert successful AAA tit
Slide 30: Operating the whole supply chain with E-Commerce
Strategy deep dive — Developing content and engaging audiences Operating the whole supply chain with E-Commerce AAA and PC games store Digital content seller and aggregator 5,200+ gaming titles across a wide One of the largest AAA games catalogues range of genres 300+ retail partners 10m+ game keys
Slide 31: Extended value proposition to advertisers
Strategy deep dive — Developing content and engaging audiences Extended value proposition to advertisers – a global entertainment and media partner ADVERTISING Azerion’s unique value proposition to advertisers GAME Reach new audiences with free-to-play DISTRIBUTION casual games METAVERSE Boost brand
Slide 32: Our game content appeals to all ages, nationalities and interests
Strategy deep dive — Developing content and engaging audiences Our game content appeals to all ages, nationalities and interests What age groups play our games?1 Where do our players play?2 Strategy Action Puzzle Europe 50.8% 65+ 22.7% Tile matching Sports Asia4 21.5% Male 32% 41-64 27.8% 353m Uniqu
Slide 33: Growth and M&A case studies
Strategy deep dive Q3 2022 results announcement Growth and M&A case studies
Slide 34: Strong M&A track record positioning Azerion as a consolidator
Strategy deep dive — M&A and case studies Strong M&A track record positioning Azerion as a market consolidator 2021 2022 to date Content Platform Platform Campaign performance Digital sales house and management proprietary ad formats Audio advertising Real-time advertising Cloud-based digital logist
Slide 35: Recent acquisitions - case studies
Strategy deep dive — M&A and case studies Recent acquisitions - case studies Type of deal Corporate acquisition Asset deal Asset deal Offering Instream & outstream solution Audio monetization solution Expertise in Mobile monetization for publishers Value • Proprietary ad formats via • Demand source
Slide 36: Financial performance
Strategy deep dive Q3 2022 results announcement Financial performance
Slide 37: Resilient model has value drivers on both demand and supply sides
Strategy deep dive — Financial performance Our resilient model has value drivers on both demand and supply sides Advertisers DEMAND Consumers Direct sales Automated auction sales AZERION’S Advertising auction PROPRIETRAY Digital ad buying platform FULL STACK ADTECH platform Publisher monetization se
Slide 38: Strong and resilient growth building on solid track record
Strategy deep dive — Financial performance Strong and resilient growth building on solid track record Revenue (EURm) Medium-term objectives 20% Direct • Gain market share and 20% sales continue delivering 60% organic growth 80% 80% • Grow direct sales 450 + advertising volumes and increase gross 40%
Slide 39: Financial priorities for 2023
Strategy deep dive — Financial performance Financial priorities for 2023 FINANCIAL • KPIs: Revenue, Adjusted EBITDA, net profit FRAMEWORK • Net Profit Balance Sheet Equity • Balanced utilization of cash, debt and equity • Investment in growth • Step change due to public company structure COSTS • Str
Slide 40: Q3 2022 results highlights
Strategy deep dive Q3 2022 results announcement Q3 2022 results highlights
Slide 41: Business & Portfolio highlights
Strategy deep dive — Q3 2022 results highlights Business & Portfolio highlights • Completed acquisitions of Madvertise, Vlyby, Takerate and other asset deals, boosting our offerings to advertisers and publishers. • Expanded integration with Google's demand-side platform, enabling Google's Audience t
Slide 42: Resilient performance in Q3 2022
Strategy deep dive — Q3 2022 results highlights Resilient performance in Q3 2022, improving efficiencies across our Platform EUR 106m +26% ● Continued growth on the top line, boosted by the Platform segment Net Revenue vs Q3 2021 Q3 2022 EUR 12m -30% ● Q3 2021 positively impacted by the sale of NFT’
Slide 43: Strong financial performance YTD, on track for FY 2022 revenue
Strategy deep dive — Q3 2022 results highlights Strong financial performance YTD, on track for FY 2022 revenue delivery EUR 304m +67% ● Strong YTD growth while Revenue vs YTD 2021 increasing the focus on costs and YTD 2022 improving efficiencies ● Acquisitions that add valuable capabilities to our b
Slide 44: Platform Financial Performance
Strategy deep dive — Q3 results highlights Platform Financial Performance Revenue €m ● Strong revenue growth due to acquisitions and organic growth 238.8 84.2 133.1 ● Increased user engagement levels and continued 57.5 growth in our casual game portfolio Q3 2021 Q3 2022 YTD 2021 YTD 2022 Adjusted EB
Slide 45: Premium Games Financial Performance
Strategy deep dive — Q3 results highlights Premium Games Financial Performance Revenue €m Steady growth in YTD revenue due to acquisitions and organic growth 65.0 48.6 26.0 21.3 Q3 2021 positively impacted by the successful sale of NFTs in Habbo; excluding this impact, revenue at a similar level Q3
Slide 46: The Azerion mission
Strategy deep dive — Closing remarks The Azerion mission “ We help brands Advertisers improve the way they Our mission is to be the engage with audiences go-to-partner for Consumers advertisers for an easy- to-use, competitively priced Content We entertain and brand-safe digital ” audiences Non-game
Slide 47: Strategy deep dive
Strategy deep dive Q3 2022 results announcement
Slide 48: Partner with digital publishers offering a wide range of monetisation services
Partner with digital publishers offering a wide range of monetisation services Digital publishers is any company who interacts with its customers digitally - for example through online content, portals, news and videos Contracted Exclusive Azerion offerings publishers publishers Ad sales EU Help dig