Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Q3 2022 Earnings Presentation
13 slides from Modern Times Group Mtg Ab Class A's earnings presentation, Oct 26, 2022
Slide 1: Q3 2022 Conference Call
Mo October 26, 2022 Q3 2022 Maria Redin, CEO Lasse Pilgaard, CFO
Slide 2: Strong game franchises deliver organic growth
Strong game franchises deliver organic growth Returned to organic growth in Q3 and pro forma YoY sales growth of 6% Strong profitability with 27% adj. EBITDA margin in Q3 & 53% cash conversion for 9M22 Healthy pipeline of in-game content and live-ops planned in Q4 & Flow Platform making good progres
Slide 3: 6% pro forma growth and return to organic growth
CONFERENCE CALL Q3 2022 Mo 6% pro forma growth and return to organic growth despite limited market visibility Reported net revenue up 31% year on year YoY pro- Y, YoY pro: formant forma grow forma growth! Geox) 1,357 1,379 1,412 4,272 1,081 : : : Qs aaa ar22 Q2'22 x22 1) Growth rates calculated at c
Slide 4: Healthy growth in Word Games and Racing
CONFERENCE CALL Q3 2022 Mo Healthy growth in Word Games and Racing Revenue by franchise, SEKm || Strategy and Simulation [lJ Racing Pro forma growth! Hl Word Games 1) Other smaller franchises I Tower Defense Q3'21 Qa’at Qr22 Q2’22 Q3'22 1) Growth rates calculated at constant FX. Unaudited pro forma
Slide 5: Three big titles slated for 2023
CONFERENCE CALL Q3 2022 with three big titles slated for 2023 we GS > FF ~ Pre-launch Browser version of Rise of Cultures (InnoGames) Destination Solitaire and Word Search proceeding towards soft launch & continued tests of Jigsaw (PlaySimple) Bitverse to expand with 2 new games & Blood Vessels (Kon
Slide 6: The Flow Platform is making progress
CONFERENCE CALL Q3 2022 Meo The Flow Platform is making progress 4 out of 5 companies are now included in MTG’s central Bl framework + Enables more efficient resource allocation across the group, and hence enables us to ooptimizes return on our user acquisition investments over time ) Marketing Cros
Slide 7: Healthy revenue mix supports resilience in uncertain markets
CONFERENCE CALL Q3 2022 Meo Healthy revenue mix supports resilience in uncertain markets — IAP — Third party publication platforms (Other) — MAU — DAU — IAA 100 196% 94% 96% ga 40 35.2 90 33.8 35 32.4 33.3 31.4 80 75% ° 5 30 70 6% 63% 63% gay 24.6 60 25 50 20 18.9 40 , 8 30 26% 28% 06% 28% 9.4 93 10
Slide 8: Strong adj. EBITDA margins of 27% for the quarter
CONFERENCE CALL Q3 2022 Mo Strong adj. EBITDA margins of 27% for the quarter | Reported Adj EBITDA, SEKm D Reported Adj EBITDA, SEKm LTM EBITDA to Adj EBITDA bridge, SEKm | Reported —= Adj. EBITDA - CAPEX margin 1) Reported — Margin 410% +61%, Y v 378 374 a 357 Qz21 Qa4’ai Qr22 Q2'22 Q3’22 Q3’21 Qa4
Slide 9: Continued strong UA investments at 35% of revenue
CONFERENCE CALL Q3 2022 Mo Continued strong UA investments at 35% of revenue (Ml UA spend, SEKm s7¢ Pepa + Significant year on year increase in UA — UAspend as % of revenue spend and stable levels Q/Q at 35% 500 499 * Slightly lower UA investments than initially planned as companies adjusted their s
Slide 10: Cash flows from operations reflects the strength of our gaming portfolio
CONFERENCE CALL Q3 2022 Mo Cash flows from operations reflects the strength of our gaming portfolio - Group cash flow statement, sxn s|§-_ TD Balance sheet, SEKb Q3 YTD 2022 2022 Cash flow from operations! 445 1,132 Taxes paid 119 -303 Changes in working capital 129 -85 Capex -63 -174 Free cash flow
Slide 11: FY22 profitability outlook intact, sales outlook revised
CONFERENCE CALL Q3 2022 Meo FY22 profitability outlook intact with upwards potential, and sales outlook for FY22 revised Expect continued market share as (D> + Revenues: MTG still expects to outgrow the overall market but is revising FY outlook for 2022 to between 5-6% pro forma growth adjusted for
Slide 12: Summary
CONFERENCE CALL Q3 2022 Meo Summary MTG returns to organic growth while continuing to outperform the market by delivering 6% pro forma revenue growth Our prudent investment approach resulted in a profitable quarter with an adj EBITDA margin of 27% and the 9 months cash conversion rate of 53% show ca
Slide 13: Q&A
Modern Times Group MTG — Q3 2022 Earnings Presentation on 6ix