Azerion Group N.v · EURONEXT:AZRN
Azerion — Q4 2023 Earnings Presentation
45 slides from Azerion's earnings presentation, 2024
Slide 1: Becoming the go-to-partner for advertisers in the digital environment
Becoming the go-to-partner for advertisers in the digital environment easy-to-use | competitively priced | brand-safe
Slide 2: Digital advertising is growing fast, as audiences move to digital
Introduction Digital advertising is growing fast, as audiences move to digital 2.5bn 10 years ago +5bn Today 6% $750bn ‘23-‘26 CAGR 2026 Market size # Internet users1 Digital advertising2 Source: 1) ResearchAndMarkets and “Datareportal – Digital 2023: Global overview report”. 2) Digital advertising
Slide 3: Fragmented digital advertising landscape creates inefficiencies
Atilla 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 purchases inventory sale Spends Ad exchange Receives D
Slide 4: Our integrated model optimises the advertising value chain
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 and Publisher publishers formats monetisat
Slide 5: Azerion's single solution advertisement platform
Platform strategy Azerion’s single solution advertisement platform Advertisers DSPs Data Management SSPs Publishers Agency Owned and operated Full stack programmatic and direct advertising platform, full monetisation and omni-channel solutions Rich Media Display Native Video Audio DOOH Hyper local •
Slide 6: The Azerion mission
Platform model The Azerion mission “ Advertisers We help brands improve the way they engage with Our mission is to be the audiences go-to-partner for Consumers advertisers for an easy-to- use, competitively-priced Content We entertain and brand-safe digital ” audiences Non-game Game environment Azer
Slide 7: Our scalable platform provides access to a global, diverse and engaged audience
Platform model 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 1.1k+ 500m+ 400k+ 300k+ ~1.5k Employees1 Unique monthly Advertisers 2 Contracted publisher Con
Slide 8: Becoming the cornerstone partner in digital advertising
Strategic highlights Becoming the cornerstone partner in digital advertising Grow our Supply Consolidation Market Advertisers love Enterprise Competitively deals priced Be where it matters, at the Sell audiences and environments Bring together products and scale that is needed that advertisers need
Slide 9: Strong historical performance underpinning growth outlook for 2024 and beyond
Updated guidance 2024 and medium term Strong historical performance underpinning growth outlook for 2024 and beyond Updated Guidance FY 2024 and Revenue split Value drivers (FY 2023 Pro Forma Sale of Social Cards Portfolio) Medium Term Direct sales Continued integration of past ~10% acquisitions dri
Slide 10: What we believe in
What we believe in We have four cornerstones that help us step-to-success Audiences Locality Content Trust We deliver audiences at a Wherever you are, we have We’ve brought together We’re committed to making scale that allows advertisers to the knowledge and expertise thousands of games and sure our
Slide 11: Our Industry
Our Industry ADVERTISERS AGENCIES MANAGED SERVICE OFFERING Demand Side Platform Supply Side Platform PUBLISHERS 11
Slide 12: What we do
What we do “We help brands attract attention from digital audiences around the world.” 12 12
Slide 13: Our companies integrate to create our platform
Our companies integrate to create our platform DIRECT ADVERTISERS DSP SSP CONSUMERS MEDIA AGENCIES BUY SELL MONETIZE CONTENT Our Platform CONTENT CREATORS EXTERNAL PUBLISHERS SSP PUBLISHER FULL MONETIZATION CONTENT PUBLISHERS PUBLISHER 13 13
Slide 14: How our Platform and Premium Games fit together
How our Platform and Premium Games fit together DSP Stack SSP Stack Digital Advertiser Publisher Audience Demand Supply Our Owned and Operated proprietary and partnered content Casual Games Fan Digital publisher partners (General content) E-commerce Metaverse Social Casino Distribution Engagement EX
Slide 15: Our Direction
Our Direction Become a must- have partner in the marketing mix of advertisers Creating Europe’s largest digital advertsing platform 15
Slide 16: One service, five core elements of value for our clients
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 a safe, curated, engaging and high-qual
Slide 17: Azerion wraps all five in one offer
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 social platforms lack cre
Slide 18: Our audiences seek engaging content
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 18
Slide 19: Extended value proposition to advertisers
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 awareness and connec
Slide 20: Content providing a gateway to monthly audiences of more than 500 million
Developing content and engaging audiences Content providing a gateway to monthly audiences of more than 500 million engaged users Digital publisher partners (General content) Game content E-commerce Fan Engagement +400m ~80m 22 monthly active users monthly active users Sports Clubs Data as of Decemb
Slide 21: Attractive European alternative for digital publisher monetisation
Developing content and engaging audiences Providing an attractive European alternative for digital publisher monetisation Digital publisher partners (General content) Maximize ad revenue We help publishers grow by giving them access to premium advertisers worldwide, impactful ad technology and reven
Slide 22: Portals to our portfolio of casual games
Developing content and engaging audiences Portals to our portfolio of casual games developed by our game creator partners From small game studios… … to large AAA game developers Hassle-free distribution and Competitive and flexible Convert successful AAA titles Unlock new revenue monetisation model
Slide 23: A single access point to consumers of AAA through to Indie games
Developing content and engaging audiences A single access point to consumers of AAA through to Indie games Voidu.com an official AAA games B2B Digital content seller and aggregator store. One of the largest AAA games catalogues Founded in 2015, Voidu offers extensive catalogue of gaming titles (5,20
Slide 24: Our highly diversified and engaging free to play game content
Developing content and engaging audiences Our highly diversified and engaging free to play game content Thousands of Casual Games monetized through advertisement Our Premium Games monetized through in-game purchase Metaverse Social Casino Average Average 21 min/day 94 min/day Spent by Spent by consu
Slide 25: Digital experiences that convert fragmented audiences into engaged fans
Developing content and engaging audiences Digital experiences that convert fragmented audiences into engaged fans White label centralised fan engagement Happy clients platform for sports clubs: Engage your existing fanbase Re-activate fluid fans Match News Center Increase ticket & merchandise sales
Slide 26: Refresher Social Casino
Developing content and engaging audiences Refresher Social Casino; carefully curated licensed social casino slot games for a highly gamified experience White label solutions Provides B2B partners ability to create own customised and branded Jackpot offer to engage with audiences in a unique platform
Slide 27: Azerion's metaverse titles immerse brands in a virtual digital world
Developing content and engaging audiences Azerion’s metaverse titles immerse brands in a virtual digital world Virtual social multiplayer games or Metaverses played with an avatar Driven by in-App purchases Partner with advertisers for in-game branding and sale of virtual items Innovating with digit
Slide 28: Innovating in the Metaverse and digital collectibles
Developing content and engaging audiences Innovating in the Metaverse and digital collectibles Frontrunners in the Metaverse Innovating with digital collectibles Emerging opportunities • 2 metaverse communities with thousands of • Solid expertise in developing, distributing and • Azerion as a truste
Slide 29: Our game content appeals to all ages, nationalities and interests
Developing content and engaging audiences Our game content appeals to all ages, nationalities and interests What age groups play our games? Where do our players play? Strategy Action Puzzle Asia 41% 18-24 33% Tile matching Sports Europe 26% +200m Female Male Unique game 49% 51% plays per month1 25-4
Slide 30: Partner with digital publishers offering a wide range of monetisation service
Value proposition to publishers Partner with digital publishers offering a wide range of monetisation service 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
Slide 31: Vertical integration maximizes efficiency for all parties
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 DSP SSP Buying efficiency f
Slide 32: Efficient and easy to use technology
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 & Agencies Universal Buying Inter
Slide 33: Our resilient model has value drivers on both demand and supply sides
Platform model Our resilient model has value drivers on both demand and supply sides Advertisers DEMAND Consumers Direct sales Automated auction sales AZERION’S Advertising auction PROPRIETARY platform FULL STACK Digital ad buying ADTECH platform Publisher monetization services SUPPLY Contracted Exc
Slide 34: Platform growth and improved efficiency driving performance in Q4 2023
Key messages and highlights Platform growth and improved efficiency driving performance in Q4 2023 Solid strategy delivery Strong financial performance • Q4 revenue of ~€172m and Adjusted EBITDA of ~€26m, representing around 15% and 17% YoY growth respectively. • FY 2023 Net revenue of €515m and FY
Slide 35: Business and operational highlights
Business and operational highlights Delivered on advertising clients’ campaigns, improved monetisation capabilities and expanded our engaged audience base through publisher partnerships Selected Advertiser Campaigns Q4 2023 • Strongest ever quarter by Direct sales teams, delivering client campaigns
Slide 36: Q4 2023 financial highlights
Financial highlights Q4 2023: Strong Platform growth and improved efficiency driving improved Group performance • Net revenue up approximately 15% in Q4 2023 YoY. ~€172m +15% • Mainly driven by Platform growth, particularly in advertising revenue from Direct Sales, e-commerce and the integration of
Slide 37: FY 2023 financial highlights
Financial highlights FY 2023: Strong Platform growth and improved efficiency driving improved performance • Net revenue up approximately 14% FY 2023 YoY. €515m ~14% • Mainly driven by Platform growth, particularly in advertising revenue from Direct sales, and the integration of previous acquisitions
Slide 38: Continued cost optimisation and operating efficiency
Financial highlights - consolidation and optimisation Continued cost optimisation and operating efficiency, leading to improved performance Revenue per FTE evolution Consolidation and integration Revenue per FTE '000 FTEs • Continued progress in the integration and consolidation of previous 180 155
Slide 39: Platform – Scale and integration synergies delivering strong profitable revenue growth
Financial highlights - segments Platform – Scale and integration synergies delivering strong profitable revenue growth Financial performance • Net revenue of € 157.8 million in Q4 2023, compared to € 124.7 million in +20% Q4 2022, an increase of 26.5%. 437 • Net revenue of € 437.4 million for FY 202
Slide 40: Platform – Strong growth driven by Direct sales and e-commerce
Financial highlights - segments Platform – Strong Platform growth driven by Direct sales and e-commerce Financial performance Net Revenue €m • In Q4 2023, Azerion’s Direct sales teams contributed approximately Direct RTB e-commerce Total Platform Revenue 75% of Platform advertising Net revenue, as c
Slide 41: Premium Games – Improved Adjusted EBITDA
Financial highlights - segments Premium Games – Improved Adjusted EBITDA from Social Casino and Metaverse portfolios Financial performance – including Social cards to 28 August 20231 • Net revenue of the remaining social casino and metaverse portfolios 89 78 increased in Q4 2023 to € 14.0 million, a
Slide 42: Strong Financial Framework
Financial highlights - segments Strong Financial Framework 5-quarter rolling financial performance Q4 2023 CFFO Q4 2023 Net interest bearing debt* Net Revenue Adjusted EBITDA 171.8 -18% 228.5 148.8 185.0 177.6 122.0 145.1 113.0 108.5 50.9 39.9 Operating Other Interest, Tax & 31 Dec '22 31 Dec '23 31
Slide 43: Disclaimer
Q4 FY 2023 investor pack Disclaimer The following disclaimer applies to this document, any oral or video presentation of the information in this document by Azerion Group N.V. (“Azerion Group”) or any person on behalf of Azerion Group and any question-and-answer session that follows the oral or vide
Slide 44: Forward-looking statement
Q4 FY 2023 investor pack Forward-looking statement The Information includes statements, including 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 forward-looking term
Slide 45: Azerion Investor Relations
IR@azerion.com Azerion Investor Relations www.azerion.com