Fractal Gaming Group AB · OMXSTO:FRACTL
Fractal Gaming Group AB — Q1 2021 Earnings Presentation
15 slides from Fractal Gaming Group AB's earnings presentation, May 21, 2021
Slide 1: Q1 2021 Report
v 21 M A Y 2021 Q1 2021 Report Hannes Wallin, CEO / Karin Ingemarson, CFO
Slide 2: Fractal is a leading company in the premium segment of PC gaming products
Strictly private and confidential Page 2 / 19 Fractal is a leading company in the premium segment of PC gaming products.
Slide 3: Top 3 Premium brand
Strictly private and confidential Page 3 / 19 Top 3 Premium brand Global market position. performance, design and quality Rank 1 50+ countries in the Nordics. Truly global reach SEK 654m Net Sales 40% Organic revenue CAGR1) 19% Adj. EBIT margin >5,000,000 gaming products sold since inception Power s
Slide 4: Strong market growth by several underlying trends
Strictly private and confidential Page 4 / 19 Growing 2.7bn Strong 1 number of gamers Number of gamers globally across all platforms 1) +13% Increasing market 2 share of competitive growth in competitive / committed segment2) and committed gamers growth by 3 Accelerated growth within eSports +18% gr
Slide 5: Streaming via Twitch continues to deliver new records
Strictly private and confidential Page 5 / 19 Streaming via Twitch continues A significant upward shift during 2020 PRE-COVID-19 POST-COVID-19 to deliver new records 63% 74% Twitch is a live streaming platform for gamers & non-gamers that either play/stream or watch computer games. Gamers The platfo
Slide 6: Q1 Highlights
Strictly private and confidential Page 6 / 19 Q1 Highlights Continued strong sales growth +13% in SEK and +29% in USD. EBITDA adj. at same level as Q1 2020 due to lower gross margin and higher costs. Successful listing on Nasdaq First North Premier on February 11.
Slide 7: Net sales
Strictly private and confidential Page 7 / 19 Net sales R12 250 200 Net sales increased by 13% to 169 SEKm (150), with an organic growth 200 of 29%. 150 169 Sales out grew by 12% organically. 150 150 100 The discrepancy between the organic growth in Net sales (29%) 100 93 and Sales out (12%) has to
Slide 8: Segment development
Strictly private and confidential Page 8 / 19 Segment development NET SALES BY GEOGRAPHY AND SEGEMENT Business segment Strongest sales in EU with 59% of total net sales, followed by Americas with Cases Other Total 26% and APAC & Other with 15%. Q1 Q1 Q1 MSEK 2021 2020 2021 2020 2021 2020 Geographic
Slide 9: Earnings
Strictly private and confidential Page 9 / 19 Earnings 70 Adjusted EBITDA was 32 MSEK (32) 30% and the margin was 19% (22). 60 25% Adjustments related to costs for the 22% 50 listing amounted to 21 MSEK (0). 19% 19% 20% 40 Unfavorable currency effect but also 32 32 15% larger share of sales of produ
Slide 10: Cash flow
Strictly private and confidential Page 10 / 19 Cash flow Operating cash flow is affected by lower EBITDA, change in NWC and investments. Q1 LTM Q1 Full year The change in NWC is mainly MSEK 2021 2020 2021 2020 related to increased accounts EBITDA 10,6 32,4 103,9 125,7 receivables, and reduced accoun
Slide 11: Income statement
Strictly private and confidential Page 11 / 19 1. Continued strong sales and organic growth of 29%. Net sales Income statement is 100% denominated in USD. Q1 LTM Q1 Full year MSEK 2021 2020 2021 2020 2. Product margin affected by unfavorable currency, higher 1 Net sales 169,1 150,4 654,4 635,7 sales
Slide 12: Financial targets
Strictly private and confidential Page 12 / 19 Financial targets Financial metric Fractal’s target LTM Q1 -21 Fractal Design aims to achieve an annual organic Revenue growth growth in net sales (USD) of above 10% from 2022 >10% 54% and onwards. Fractal Design aims to achieve an adjusted EBITDA Profi
Slide 13: Current activities and priorities / Strategic direction
Strictly private and confidential Page 13 / 19 Current activities Strategic direction and priorities Product launches and marketing Continue on successful track Meshify 2 Compact launched in the quarter well Delivering best in class products with excellent service. received. Additional launches in H
Slide 14: Summary
Strictly private and confidential Page 14 / 19 Summary Continued strong organic growth. EBITDA adj. in line with Q1 2020. Shortages in components, increased raw material costs and re-implemented US tariffs is a challenge for the PC Gaming industry. Record high interest in gaming. Focus on on strateg
Slide 15: Q&A
Strictly private and confidential Page 15 / 19 Q&A