Slide 1: Nazara Technologies Limited
Nazara Technologies Limited (Formerly known as Nazara Technologies Private Limited) Nazara TM October 30, 2021 To, Head, Listing Compliance Department Head Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No. C/1. G Blo
Slide 2: Nazara Technologies Limited Investor Presentation
Nazara Technologies Limited Investor Presentation October 2021
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Nazara Technologies Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any sec
Slide 4: Q2 & H1FY22 Performance
Q2 & H1FY22 PERFORMANCE
Slide 5: Management Commentary
Management Commentary Commenting on the results, Mr. Manish Agarwal, CEO at Nazara Technologies said, “Nazara declared revenue of Rs. 260.8 Crs and EBITDA of Rs. 49.6 Crs in H1 FY22. Revenue grew by 30% in H1 FY22 over H1 FY21 while EBITDA grew by 700% over the same period. We have built strong exec
Slide 6: Q2 & H1FY22 Consolidated Performance
Q2 & H1FY22 Consolidated Performance Key Highlights (All figures in INR mn) H1FY22 H1FY21 Growth% Q2FY22 Q2FY21 Growth% Revenue by business segments i. eSports 1,030 637 62% 498 371 34% ii. Gamified early learning 1,059 787 35% 539 430 25% iii. Freemium 99 90 10% 42 47 -11% iv. Real money gaming 73
Slide 7: Gamified Learning: Paperboat Apps – H1FY22 Business Highlights
Gamified Learning: Paperboat Apps – H1FY22 Business Highlights Kiddopia Paid Subscriber base Revenue (in Mn Rs.) EBITDA (in Mn Rs.) 350,000 340,482 321,763 324,699 316,428 33.4% 300,000 280,891 1,059 354 257,413 787 250,000 200,000 (40) Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 H1FY21 H1FY22 EBITDA
Slide 8: Esports: Nodwin Gaming – H1FY22 Business Highlights
Esports: Nodwin Gaming – H1FY22 Business Highlights ▪ Nodwin continued revenue growth momentum with 30% growth in H1FY22 over H1FY21 Revenue (in Mn Rs.) EBITDA (in Mn Rs.) ▪ Media rights contributed 61% of the revenues in Q2FY22 and 54% in H1FY22 (55% for FY21). Game publishers formed second largest
Slide 9: Esports: Sportskeeda – H1FY22 Business Highlights
Esports: Sportskeeda – H1FY22 Business Highlights H1FY22 H1FY21 Revenue (in Mn Rs.) EBITDA (in Mn Rs.) Revenue Mix Direct Sales 10% 7% 40.6% 33.1% Programmatic Sales 90% 93% 308 102 India 34% 15% 107 44 Geography Mix USA 43% 68% ROW 23% 18% WWE 50% 70% H1FY21 H1FY22 H1FY21 H1FY22 eSports 16% 15% EBI
Slide 10: Nextwave: Freemium - H1FY22 Business Highlights
Nextwave: Freemium - H1FY22 Business Highlights Revenue (in Mn Rs.) EBITDA (in Mn Rs.) ▪ WCC (World Cricket Championship) is the world’s largest cricket simulation game franchise on mobile and is played for ~45 minutes / day by ~9.08 Mn 22.2% 7.1% monthly active users (includes WCC2 & WCC3). The Gam
Slide 11: Skilled based sports fantasy: H1FY22 Business Highlights
Skilled based sports fantasy: H1FY22 Business Highlights ▪ During the quarter, the Company has made strategic acquisition of Openplay technologies Revenue* (in Mn Rs.) EBITDA* (in Mn Rs.) ▪ OpenPlay is one of India’s fastest growing Skill Gaming Halaplay company offering Fantasy Sports, Quiz, Rummy
Slide 12: Telco Subscription – H1FY22 Business Highlights
Telco Subscription – H1FY22 Business Highlights ▪ For H1FY22, the business has declined by 19% over H1FY21 Revenue (in Mn Rs.) EBITDA* (in Mn Rs.) ▪ The drop in EBITDA margin was mainly due to drop in revenue 28.2% 25.4% ▪ Nazara has acquired rights to distribute a library of premium Disney and Star
Slide 13: Consolidated P&L
Consolidated P&L (All figures in INR mn) H1FY22 H1FY21 YoY% Q2FY22 Q2FY21 YoY% FY21 Revenue from operations 2,608 2,005 30% 1,296 1,100 18% 4,542 Content, event and web server 378 154 165 99 524 Advertising and promotion 933 1,196 509 481 2,265 Commission 268 227 131 121 501 Employee benefits 347 21
Slide 14: Key Metrics - Revenue
Key Metrics - Revenue Revenue Mix (All figures in INR mn) H1FY22 H1FY21 H1FY22 H1FY21 Revenue by business segments 13% i. eSports 1,030 637 21% 4% 3% 32% ii. Gamified early learning 1,059 787 39% 3% iii. Freemium 99 90 5% iv. Real money gaming 73 63 v. Telco subscription 347 428 41% 39% Total revenu
Slide 15: Key Metrics - EBITDA
Key Metrics - EBITDA Segmental EBITDA (in INR million) (All figures in INR mn) H1FY22 H1FY21 EBITDA by business segments H1FY22 H1FY21 i. eSports 140 70 354 ii. Gamified early learning 354 (40) iii. Freemium 7 20 iv. Real money gaming (20) (58) 140 121 70 88 v. Telco subscription 88 121 7 20 vi. Una
Slide 16: Consolidated Balance Sheet
Consolidated Balance Sheet As at As at As at As at (All figures in INR mn) (All figures in INR mn) Sep 30, 2021 March 31, 2021 Sep 30, 2021 March 31, 2021 Assets Equity and liabilities Non-current assets Equity Property and equipment 31 17 Share capital 122 122 Right-of-use assets 38 21 Other equity
Slide 17: Extract of Consolidated Cashflow Statement
Extract of Consolidated Cashflow Statement Particulars Sep 30, 2021 Sep 30, 2021 Profit/(loss) before tax for the year 358 (58) Adjustment for non-cash items and others 214 185 Changes in working capital 4* (178) Cash generated from operations 576 (51) Direct taxes (87) (17) Net cash flow from opera
Slide 18: Inorganic Acquisitions
INORGANIC ACQUISITONS
Slide 19: Nazara Strengthens presence in Skilled based sports fantasy
Nazara Strengthens presence in Skilled based sports fantasy Nazara’s Acquisition of 100% stake in Hyderabad based skill gaming company OpenPlay Technologies Private Limited Overview Rationale Consideration Financials ▪ Incorporated in September 2016 ▪ The OpenPlay acquisition offers an ▪ A total con
Slide 20: Nazara Strengthens presence in Esports
Nazara Strengthens presence in Esports ▪ Incorporated in November 2008 ▪ OML Entertainment is known for managing some of India’s biggest gaming & entertainment creators Overview such as Tanmay Bhat, Samay Raina, Suhani Shah, etc. and for owning and executing storied IPs such as the BACARDÍ NH7 Weeke
Slide 21: Nazara’s Strengthens International Presence in Esports
Nazara’s Strengthens International Presence in Esports Overview Incorporated in February 2018, Publishme is a full-service games marketing and publishing agency which works extensively with gaming publishers in Turkey and MENA region Industry Operates in Free to Play Games (Freemium), E-Sports and B
Slide 22: Overview
OVERVIEW
Slide 23: Company Overview
Company Overview • A leading India-based diversified gaming and sports media platform Revenue from Operations EBITDA Diverse business segments including eSports, gamified early learning, freemium, skill-based, (in Mn Rs.) (in Mn Rs.) fantasy and trivia real money gaming, and telco subscription 10.0%
Slide 24: Our Journey
Our Journey ▪ Ushered Content Led Micro Nazara founded by Vikash Transaction Models on Telcos Mittersain & Nitish Mittersain ▪ Published cricket games around Sachin, Dhoni & Sehwag ▪ Strategic decision to be a mobile 1999 first company 2004-06 ▪ Mr. Manish Agarwal appointed as CEO in 2015 ▪ Expanded
Slide 25: Our Unique Story
Our Unique Story Only Diversified Player in India ▪ Across Geography: Developed and Emerging Markets ▪ Business Model: Advertising, Subscription, Media Rights, In-App purchases, Brand Sponsorships ▪ Across Business Segments: eSports, Sports Simulation, Early Learners and Skill based Fantasy among ot
Slide 26: Business Overview Snapshot
Business Overview Snapshot Nazara is the leading India-based diversified gaming and sports media platform Select offerings Overview Target demographics Revenue Model Immersive, self-directed learning Gamified Early Learning experience with content Children aged 2-6 years ▪ Subscription based (40.6%
Slide 27: Gaming Industry
GAMING INDUSTRY
Slide 28: Gaming - New Leader in M&E Sector
Gaming - New Leader in M&E Sector Global Gaming Industry Compared with Movies & Music Indian Gaming Industry Compared with Bollywood 2017-2020 (in USD Billions) 2016-2023 (in USD Billions) Global Gaming Industry larger than Music & Movies Driven by the proclivity of the Indian population to adopt ga
Slide 29: Global Trends Affecting Gaming Eco-system
Global Trends Affecting Gaming Eco-system Per Capita Income Growth Smartphone User Penetration 2016 2020 2023E Global (in USD) India (in Rs.) 88% 90% +3.5% 81% 85% 77% 80% 85% 78% +11% 67% 72% 17,820 135.1 51% 52% 15,600 80.2 Global US China India Source: Datareportal 2015 2020 2015 2020 Source: IMF
Slide 30: The Indian Gaming Industry – Mobile gaming expected to increase
The Indian Gaming Industry – Mobile gaming expected to increase Others Indian Gaming Market China Gaming Market US Gaming Market Console (in USD Billion) (in USD Billion) (in USD Billion) Mobile 2016 15% 35% 50% 0.5 2016 52% 1% 47% 27.0 2016 24% 50% 26% 25.0 2020 6% 17% 77% 1.5 2020 38% 3% 59% 42.7
Slide 31: Gamified Early Learning
GAMIFIED EARLY LEARNING
Slide 32: Gamified Early Learning
Gamified Early Learning ▪ Flagship App – Kiddopia (COPPA certified by KidSAFE) Overview ▪ Self-directed learning experience through gamification Trusted and well recognized brand ▪ Marketed through Google, Facebook and app stores Tillywig Toy Target ▪ Children Aged 2-7 Years Award Demographics ▪ Pre
Slide 33: Kiddopia – Key Metrics
Kiddopia – Key Metrics Kiddopia Paid Subscriber base 350,000 340,482 Revenue (in Mn Rs.) 316,428 321,763 324,699 300,000 280,891 1,758 257,413 1,059 250,000 787 200,000 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 H1FY21 H1FY22 FY21 Paying Subscribers Activation ratio from free trial to subscription ha
Slide 34: US Market – An Opportunity
US Market – An Opportunity US alone huge enough to absorb Nazara’s marketing spend and gain market share Global Gamified Early Global Addressable US Gamified Early US Early Child Learning Market Population1 (2009) Learning Market Care & Education (in bn USD) (mn) (in bn USD) (in bn USD) 7 80 44 2016
Slide 35: eSports
eSPORTS
Slide 36: A. Nodwin Gaming
A. Nodwin Gaming
Slide 37: What is eSports?
What is eSports? Indira Gandhi Stadium 2019 Streamed Live Worldwide (New Delhi) Packed with thrill seeking Gen Z & Millennials, watching professional athletes compete in PUBG’s World Championships Fast Forward 6 years Intro to eSports (Video) https://bit.ly/3aDrntT Wankhede Stadium 2025 Streamed Liv
Slide 38: eSports Overview
eSports Overview ▪ Nodwin Gaming offers premium eSports content (live and on demand) to TV broadcasters and OTT platforms Overview ▪ Nodwin Gaming in partnership with game publishers and brands is engaged in providing e-sports gaming consultancy related to organizing gaming events, sponsorships and
Slide 39: eSports Growth Drivers
eSports Growth Drivers Virtuous Cycles drive eSports IAP Driven Revenues Live Stream Viewers Publishers Live Increase in Mobile spend on Streaming Mobile Gamers building Market Gamers eSports eSports eSports disrupting Symbiotic with Drives Publishers sports ecosystem Stimulates Multiple participati
Slide 40: eSports Ecosystem
eSports Ecosystem Technology & infrastructure Arrangements with game publishers and ▪ Exclusive license partnership with ESL for internet service providers management and hosting Ip based gaming events ▪ Manage and host IP-based gaming events ▪ Utilise publicly available technology platforms for hos
Slide 41: Why Will We Continue to Dominate?
Why Will We Continue to Dominate? Deep Moat : Well entrenched community connect. Create & Celebrate Heroes We Create Heroes Zero to Hero Grassroot to International ✓ Only company in India to have rights over IP and assets across grassroot, regional, national and international eSports International ✓
Slide 42: Create Result
Why Will We Continue to Dominate? Nazara builds and owns tech infrastructure on which global games run locally Publishers want to engage gamers Brands want to reach consumers Tech Infrastructure Servers, Data Pipes, Optimized Routes, CDN, Create Game Servers, ISP Peering, Data Centers Gaming Activat
Slide 43: B. Sportskeeda
B. Sportskeeda
Slide 44: eSports Media
eSports Media ▪ A leading sport and eSports news destination website with content across WWE, eSports, cricket, soccer and basketball ▪ Largest eSports news destination in India Overview ▪ According to Comscore report, Sportskeeda is the 2nd largest sports website in India Target ▪ eSports fans & sp
Slide 45: Key Metrics
Key Metrics Average MAU Sportskeeda Revenue (in Mn Rs.) 71,000,000 60,542,840 60,525,455 56,823,508 61,000,000 50,054,366 51,000,000 41,769,005 344 308 41,000,000 31,000,000 17,085,272 21,000,000 107 11,000,000 1,000,000 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 H1FY21 H1FY22 FY21 The increase in vi
Slide 46: Freemium
FREEMIUM
Slide 47: Freemium
Freemium ▪ Freemium is Free to download games from Google play and App store Overview ▪ Casual to mid-core, free-to-play sports simulation and children’s games Established ▪ World Cricket Championship (WCC) is the largest mobile-based cricket simulation game Presence Target ▪ Players aged 15-35 year
Slide 48: Key Metrics
Key Metrics Revenue (in Mn Rs.) EBITDA (in Mn Rs.) DAU (Mn) 22.2% 7.1% 20.5% 195 2.26 2.31 40 1.74 1.80 1.62 90 99 20 7 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 FY21 H1FY21 H1FY22 FY21 EBITDA % % IAP Conversion WCC3 45 1 (WCC2 & WCC3) ~9.081 mn Time spent MAUs across all 0.13% 0.12% (min./da
Slide 49: IAP Drivers
IAP Drivers Surge in IAP will be Driven by Growth of Mid & Hard Core Gamers & Higher ARPPU 2018 2020 2025 Hard Core 5mn 10mn Gamers 30mn Mid Core 15mn 35mn Gamers 100mn Casual Gamers 100mn 250mn+ 500mn+ Non Gamers Revenue Pyramid 2025 Underlying Consumer Behavior – Catalyst in Growth of Mid & Hard c
Slide 50: Dominance in Cricket Gaming – A Massive Opportunity
Dominance in Cricket Gaming – A Massive Opportunity WCC is the most Downloaded Cricket Game Huge opportunity in cricket crazy India Cricket draws 93% of sports viewers in India ▪ In 2018, out of a TV viewing audience of 766mn, 93% watched cricket ▪ Nextwave’s cricket IP is similar to what FIFA (owne
Slide 51: Well poised to benefit from IAP led growth
Well poised to benefit from IAP led growth Well poised to benefit from IAP led growth For Q2FY22 48 46 Daily engagement is getting deeper (mins) ▪ For the new cricket title ( WCC3), daily user engagement is already up to 48 mins from 46 mins ▪ Game economy developed/ fine tuned based on market feedb
Slide 52: Skill-Based, Fantasy & Real Money Games
SKILL-BASED, FANTASY & REAL MONEY GAMES
Slide 53: Skill-based, fantasy and Trivia Real Money Gaming
Skill-based, fantasy and Trivia Real Money Gaming ▪ Entered skill-based gaming in India and have strategically created presence in the real money gaming segment Overview ▪ With the acquisition of Halaplay Technologies, and investments in Sports Unity, the Company is participating in sports fantasy g
Slide 54: Large Opportunity in Skilled based fantasy gaming
Large Opportunity in Skilled based fantasy gaming Market ($ mn) Users (mn) CEA ($ mn) OFS Revenue ($ mn) 947 100 2,196 329 347 232 35 2 2018 2021 Jun-16 Mar-20 2018 2020 2018 2020 Drivers ▪ Between 2018 and 2020, Online Fantasy Sports (OFS) revenue registered a 9.4x growth ▪ While COVID-19 is likely
Slide 55: Telco Subscription
TELCO SUBSCRIPTION
Slide 56: Telco Subscription
Telco Subscription ▪ Catalogue of Android and HTML5 games offered as value-add services to telco subscribers Overview ▪ Recently acquired non-exclusive global distribution rights for games developed by Disney Target ▪ Late adopters of Internet, First-Time gamers Demographics Monetization ▪ Subscript
Slide 57: Free Cash Accretive
Free Cash Accretive Tech Platform Stable revenues with strong EBITDA generation Highly scalable and cost-efficient model ▪ One common gaming/subscription platform implemented Revenue (in Mn Rs.) EBITDA* (in Mn Rs.) across 52 telcos ▪ Revenues being generated in Middle East, Africa and S-Asia 28.2% 2
Slide 58: Rapidly Scaling Growth Through Strategic Acquisitions
RAPIDLY SCALING GROWTH THROUGH STRATEGIC ACQUISITONS
Slide 59: Strategic Acquisitions
Strategic Acquisitions ▪ Nazara has expanded its portfolio of business by consistent strategic acquisitions since 2017 ✓ Three companies (Paper boat, Nodwin Gaming and Absolute Sports) have scaled exponentially post acquisition ✓ World Cricket Championship: Iconic IP and Market leader in sports simu
Slide 60: Our Future Approach to M&A
Our Future Approach to M&A Pursue strategic investment and acquisition opportunities in underserved markets and geographies Increase stake in existing investments Focus on large total addressable market, strong local moat, clear use cases for growth capital Grow user base, deepen market penetration,
Slide 61: Unique combination of high growth annuity and great value creation
Unique combination of high growth annuity and great value creation Way Forward… ✓ Build on Nazara’s leading market position and growth opportunity in India ✓ Enhance existing offerings and increase monetization opportunities ✓ Pursue strategic investment and acquisition opportunities ✓ Further build
Slide 62: Pioneers of Indian Online Gaming Industry
PIONEERS OF INDIAN ONLINE GAMING INDUSTRY
Slide 63: Management Team
Management Team Nitish Mittersain Manish Agarwal Rakesh Shah Joint MD, Nazara Group CFO Group CEO, Nazara ◼ Joined Nazara in 2010 ◼ Founded Nazara in 1999 ◼ Joined Nazara in 2015 ◼ 24+ years of work experience ◼ Other Experience: Trustee of Dr. B. K. ◼ Other Experience: Reliance Games, ◼ Other Exper
Slide 64: Board of Directors
Board of Directors Vikash Mittersain Nitish Mittersain Chairman & MD Joint MD ◼ Founded Nazara in 1999 ◼ Founded Nazara in 1999 ◼ Other Experience: Founder and President ◼ Other Experience: Trustee of Dr. B. K. of India Business Group (Chamber of Goyal Heart Foundation Commerce) Shobha Jagtiani Prob
Slide 65: Historical Financials
HISTORICAL FINANCIALS
Slide 66: Consolidated P&L
Consolidated P&L (All figures in INRm) FY21 FY20 Revenue from operations 4,542 2,475 Content, event and web server 524 507 Advertising and promotion 2,265 1,329 Commission 501 71 Employee benefits 487 319 Others 313 305 Total expenses 4,090 2,532 EBITDA 452 (57) EBITDA% 10.0% -2.3% Impairment Loss 4
Slide 67: Key Metrics - Revenue
Key Metrics - Revenue Revenue Mix 16% (All figures in INRm) FY21 FY20 37% 33% 34% 4% 3% FY21 FY20 Revenue by business segments 8% 39% 17% i. eSports 1,701 842 8% ii. Gamified early learning 1,758 191 eSports Real money gaming Gamified early learning Telco subscription iii. Freemium 195 198 Freemium
Slide 68: Key Metrics - EBITDA
Key Metrics - EBITDA (All figures in INRm) FY21 FY20 EBITDA by business segments Segmental EBITDA (in INR million) i. eSports 289 75 FY 21 FY 20 ii. Gamified early learning 126 (35) 289 iii. Freemium 40 8 242 iv. Real money gaming (90) (347) v. Telco subscription 114 242 126 114 vi. Unallocated (26)
Slide 69: Consolidated Balance Sheet
Consolidated Balance Sheet As at As at As at (All figures in INRm) March 31, 2020 As at March 31, 2021 (All figures in INRm) March 31, 2020 (Restated) March 31, 2021 (Restated) Assets Non-current assets Equity and liabilities Property and equipment 17.2 22.7 Equity Right-of-use assets 21.4 86.1 Shar
Slide 70: Extract of Consolidated Cashflow Statement
Extract of Consolidated Cashflow Statement Particulars (All figures in INRm) March 31, 2021 March 31, 2020 Profit/(loss) before tax for the year 167.0 (195.8) Adjustment for non-cash items and others 360.2 159.2 Changes in working capital 306.5 87.0 Cash genereated from operations 833.7 50.4 Direct
Slide 71: Glossary
Glossary Term Description Term Description APAC Asia Pacific M&A Mergers and Acquisitions CAC Consumer Acquisition Cost MAU Monthly Active Users Compounded Annual Growth Rate = (End Value/Start M&E Media and Entertainment CAGR Value)^(1/Periods) -1 MS Market Share COPPA Children’s Online Privacy Pro
Slide 72: Contact Us
Contact Us Company : Investor Relations Advisors : Nazara Technologies Limited Strategic Growth Advisors Private Limited CIN: U72900MH1999PLC122970 CIN: U74140MH2010PTC204285 Rahul Agarwal / Ami Parekh Mr. Rakesh Shah rahul.agarwal@sgapl.net / ami.parekh@sgapl.net Chief Financial Officer +91 982143