Enad Global 7 Ab · OMXSTO:EG7
Enad Global 7 Ab — Q2 2021 Earnings Presentation
21 slides from Enad Global 7 Ab's earnings presentation, Aug 26, 2021
Slide 1: Q2 Investor Presentation – August 2021
Q2 INVESTOR PRESENTATION – AUGUST 2021
Slide 2: Table of Contents
TABL E O F CONTENTS 1. Q2 HIGHLIGHTS 2. COMPANY OVERVIEW 3. HISTORICAL RECAP 4. EG7 TODAY 5. FUTURE GROWTH INITIATIVES
Slide 3: Q2 2021 Recap
Q2 2021 RECAP • Highest revenue and profit in the history of the company. • Total revenue of SEK 422.5 million, a growth of 160% compared to Q2 2020. • EBITDA of SEK 96.8 million, a growth of 360% compared to Q2 2020. • Adjusted EBITDA of SEK 111.8 million, considering a SEK 5 million cost of M&A in
Slide 4: EG7 in Short
EG7 IN S HO RT EG7 is a unique eco-system within the video games industry consisting of: 769 SEKm 1. An IP-portfolio consisting of world-class live and premium titles: REVENUE o EG7 holds a diversified portfolio of live services such as EverQuest, Lord of the Rings, H1 2021 PlanetSide, DC Universe,
Slide 5: History & Financials
HIS TO RY & FINANCIAL S Acquired gaming +302% IP and game platform Revenue per Year SEK 2,061.0 companies (Pro-forma Revenue) Revenue Growth per Year Acquired service platform +573% Company went Contract worth public SEK 512.4m Consulting in SEK 40m with (Pro-forma Revenue) Development Leyou +52% -3
Slide 6: Historical Quarterly Growth
HIS TO RICAL QU ARTERL Y GRO WTH¹ QUARTERLY REVENUE (SEKm) QUARTERLY EBITDA (SEKm) 423 347 210 164 163 121 97 87 73 60 14 17 12 18 15 12 19 23 5 12 5 5 13 2 Q1 Q2 Q3 Q4 Q1 Q2 -1 Q3 -3 -5 -17 Q4 2018 2019 2020 2021 2018 2019 2020 2021 1) Reported total revenue and EBITDA
Slide 7: Revenue by Segment
REV EN U E BY S EG MEN T DEVELOPMENT OF SEGMENT TOTAL REVENUES (SEKm) DEVELOPMENT OF SEGMENT EBITDA (SEKm) 422.5 120 450 96.8 400 100 346.5 84.7 350 168.2 2.3 80 29.4 300 87.9 250 60 200 150 40 84.7 258.6 254.2 67.4 100 20 50 0 0 Q1 2021 Q2 2021 Q1 2021 Q2 2021 Games Services Games Services STRONG Q
Slide 8: We Control the Entire Value Chain
THE CO MPANY TO D AY WE CONTROL THE ENTIRE VALUE CHAIN DEVELOPING MARKETING PUBLISHING DISTRIBUTION/ PLATFORM • Daybreak, owner of 7 IP's that are live and account for 50% of the revenue, mainly PC and Console. Distributed mainly through our own platform. • Big Blue Bubble, owner of My Singing Monst
Slide 9: Our Games
O U R GAMES RELEASED 1999 RELEASED 2012 RELEASED 2015 RELEASED 2012 RELEASED 2007 RELEASED 2011 RELEASED 2006 RELEASED 2004
Slide 10: Well Diversified Live Service Portfolio
WEL L D IV ERS IFIED L IV E S ERV ICE PO RTFO L IO MY SINGING EVERQUEST PLANETSIDE 2 H1Z1 MONSTERS RELEASE DATE 1999 2012 2015 2012 LIVE-SERVICE GAMES % OF TOTAL GROUP PRO FORMA 2 0 2 0 R E V E N UE DESCRIPTION Fantasy MMORPG Sci-Fi MMOFPS Battle Royale MMO Casual Simulation PLATFORM PC PC, Console
Slide 11: Proprietary Game Distribution Platform
PROPRIETARY GAME DISTRIBUTION PLATFORM • 4Game is EG7’s proprietary game distribution platform with 12 licensed games and counting. • Strong own technology/platform similar to Steam. 16% • Holds game licenses in EU and CIS. 4GAME % OF TOTAL GROUP PRO FORMA 2020 • Revenue is only generated from live-
Slide 12: World-Class Services
WORLD-CLASS SERVICES 22% • Creative marketing • First and third-party studio with 40+ ongoing publisher that has marketing projects. never had an SERVICES % OF Previous projects - Call unprofitable release. TOTAL GROUP PRO of Duty Warzone, Far FORMA 2020 Cry 6 and Assassin’s • Frontier, Team17 and R
Slide 13: Our Offices
O U R O FFICES BIG BLUE BUBBLE ARTPLANT NORWAY DEVELOPER & PUBLISHER GAME DEVELOPER TOADMAN HQ INNOVA GAME DEVELOPER PIRANHA GAMES PUBLISHER DEVELOPER BIG BLUE BUBBLE DEVELOPER & ANTIMATTER GAMES INNOVA HQ ARTPLANT RUSSIA PUBLISHER GAME DEVELOPER PUBLISHER GAME DEVELOPER PETROL DAYBREAK MARKETING SO
Slide 14: Aligned Incentives Between Management and Investors
AL IGNED INCENTIV ES BETWEEN MANAGEMENT AND INV ES TO RS DAN STEN OLSSON GEORGY CHUMBURIDZE Shares: 6,912,000 Shares: 9,726,053 BOARD REPRESENTATION VIA ERIK NIELSEN FOUNDER INNOVA JASON EPSTEIN ALEXANDER ALBEDJ Shares: 6,910,000 Shares: 1,277,706 BOARD CHAIRMAN ROBIN FLODIN JAMES CATO Shares: 2,905
Slide 15: Future Growth Initiatives
FUTURE GROWTH INITIATIVES M&A PIPELINE GAME EXPANSIONS AND NEW TITLES GEOGRAPHICAL PLATFORM EXPANSION OWN IP INTO PLATFORM
Slide 16: Current and Future Titles to Be Included in 4Game Platform
CURRENT AND FUTURE TITLES TO BE INCLUDED IN 4GAME PLATFORM LIVE-SERVICES UPCOMING GAMES TITLES
Slide 17: Geographical Platform Expansion
GEO GRAPHICAL PL ATFO RM EXPANS IO N STRONG IN EUROPE AND CIS – POTENTIAL FOR GEOGRAPHIC EXPANSION
Slide 18: Game Expansions and New Titles
GAME EXPANS IO NS AND NEW TITL ES GAME EXPANSIONS NEW TITLES FUTURE POTENTIAL Unannounced AAA-MMO • Bolt-on investments into existing portfolio is a beneficial method of achieving a more immediate pay-off than the typical premium product investment. • Investments in new IP can create significant val
Slide 19: M&A Strategy
M& A S TRATEGY We employ a selective M&A strategy due to our semi-active approach. We want to successfully integrate the companies into the group and thereby creative synergetic value. Add-on acquisition X Acquisition targets become significant shareholders¹ 8.0x EV/EBITDA multiple 9.7x EV/EBITDA mu
Slide 20: Key Investment Highlights
K EY INV ES TMENT HIGHL IG HTS 1. Unique world-class gaming eco-system. 2. EG7 holds some of the strongest game IP’s in the world. 3. Proven shareholder value through acquisitions. 4. Diversified risk through stable cash-flow, low-risk, profitable STRONG services division and experienced game develo
Slide 21: Thank You
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