Huuuge, Inc. · GPW:HUG

Huuuge — Q1 2023 Earnings Presentation

21 slides from Huuuge's earnings presentation, May 2023

  1. Slide 1: 1Q 2023 Presentation

    1Q 2023 Presentation MAY 2023

  2. Slide 2: Disclaimer

    This presentation (“Presentation”) has been prepared by Huuuge, Inc. (the Forward-looking statements include in particular statements regarding the “Company”). By reading the Presentation, you agree to be bound by the financial performance, business strategy, plans and objectives of the Company Discl

  3. Slide 3: Today's Presenters

    Today’s Presenters Anton Gauffin Marek Chwałek Chief Executive Officer EVP Finance

  4. Slide 4: 1Q23 Highlights

    Solid performance: HC & BC exceeded $1.6bn in lifetime revenue $71m in Revenue (-15% YoY), reflecting sunsetting Traffic $17m + Franchise longevity Puzzle, lower marketing spend & challenging conditions in NET OPERATING CASH FLOW + EBITDA growth the mobile gaming market vs. $20m 1Q ‘22 + Cash growth +

  5. Slide 5: Business Update

    2 BUSINESS UPDATE

  6. Slide 6: Core Franchises in 1Q 2023

    Core Franchises in 1Q 2023 Harvesting long-term profits ● Harvesting strategy continued. We are careful with marketing investments, which results in growing sales margin and freeing up focus and resources ● Our marketing spend in 1Q 2023 was unusually low as we have cut the worst performing channels.

  7. Slide 7: Core Franchises: Live Projects

    Core Franchises: Live Projects More upside from everlasting player relationships Extension of Huuuge’s VIP Program Generating an uplift in engagement, retention and monetization of our most valuable players Webshop for HC & BC - improving player experience With an enthusiastic response from our play

  8. Slide 8: Core Franchises: Webshop success

    Core Franchises: Webshop success Progress has accelerated rapidly over the past few months Webshop Revenue as % of Total Revenue ● Webshop performance YTD has exceeded our internal expectations ● We have already achieved quite broad geographical coverage and we are now focusing on more aggressive pr

  9. Slide 9: Huuuge Pods

    Huuuge Pods Multiplayer Multiplatform games for Worldwide audiences ● Four Pods are already operational ● Our goal is to drive new growth for Huuuge - new games, new audiences ● Community and player centric approach ○ All games are developed with a multiplayer focus ○ Focus on building sustainable o

  10. Slide 10: Strategic & Operational Directions

    Strategic & Operational Directions Build-up Productivity by leveraging AI across organisation ● Active efforts to increase the use of AI across the whole organisation ● Lots of opportunities to improve and optimise how the Huuuge Team leverages the latest advancements of Gen AI on a day-to-day basis

  11. Slide 11: Financial Update

    ” FINANCIAL UPDATE

  12. Slide 12: Financial Performance

    Financial USD m Core Franchises Q1 23 68.0 Q1 22 74.0 YoY -8.1% Performance Traffic Puzzle Other 3.1 0.6 8.6 1.4 -63.8% -55.3% 01 Revenue 71.7 84.0 -14.6% Gross profit/(loss) on sales 50.6 58.5 -13.5% 01 The revenue decline results from sunsetting Traffic Puzzle and some other game titles. Core Franchise

  13. Slide 13: Balance Sheet

    Balance Sheet USDm March 31, 2023 December 31, 2022 01 Non-current assets 36.5 37.4 01 Includes mainly intangible assets and office 02 Current assets 274.6 248.9 leases Total assets 311.1 286.3 02 Primarily cash and cash equivalents Total equity 263.8 240.7 ($238.5m, or 87% of current assets) Non-curr

  14. Slide 14: Cash Flows

    Cash Flows USDm Q1 23 Q1 22 Pre-tax profit 26.0 10.7 01 Net Operating CF 16.9 19.9 01 Net operating CF declined vs Q1’22 despite much higher profit before tax. In Q1’23 Net Operating CF was negatively affected by a temporary increase in 02 Investing CF 1.4 (25.7) trade and other receivables resulting

  15. Slide 15: Highly Cash Generative Business

    Highly Cash Generative Business Cash is king in an uncertain environment and we are a fundamentally strong business in an extremely fortunate position We recognize that we are one of the most cash generative businesses in the games industry (as measured by Net OCF to adjusted EBITDA conversion) This

  16. Slide 16: Outlook for 2023 - reiterating our view

    Outlook for 2023 - reiterating our view 2023 Outlook (YoY) Key Highlights Revenue ● We reiterate our 2023 directional outlook presented during our FY2022 investor call ● We continue to focus on optimization and productivity Marketing spend improvements ● With headcount now lower by ~20% vs 2022, Ope

  17. Slide 17: Thank you

    Thank you For more information please see https://ir.huuugegames.com

  18. Slide 18: Financial data

    Financial data Profit & Loss account (USO m) 2017___ 20180192020 201 giz0___q220 320 azo gay aaa} a3z1 anagem 8 Revenue 1521-2861 +~«2594~—~C«S2T~«C«TS~~C«CSTBO 760 889 785 392 957 75 920 885 840 794 775 77 717 Costof sales 448 718 71 996-122-989 230 268 235 269 -281 204 280 268-255 2400-238 26 214

  19. Slide 19: Appendix - KPI's

    Appendix - KPI's (users) FY2017_FY2018_FY2019_FY2020 FY2021_ FY 2022 19192019 31940191020 202030204020 102120213021 «402110222022 302240221023 Total DAU 632113 850717 911048 947188 789831 610489 874002 876371 913997 979820 980224 970211 944456 893861 888781 773229 769744 727568 701620 671967 557666

  20. Slide 20: Appendix - glossary

    Appendix - glossary ARPDAU Average revenue per daily active user. ARPPU Average revenue per paying user. DAU The number of individual users who played a game on a particular day. DPU The number of players (active users) who made a purchase on a given day. Activities aimed at increasing the player en

  21. Slide 21: For more information please see ir.huuugegames.com

    For more information please see ir.huuugegames.com

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