Enad Global 7 Ab · OMXSTO:EG7
Enad Global 7 Ab — Q2 2020 Earnings Presentation
23 slides from Enad Global 7 Ab's earnings presentation, August 2020
Slide 1: Investor Presentation Q2 2020
INVESTOR PRESENTATION Q2 2020
Slide 2: EG7 in Short
EG7 IN S HO R T • EG7 is a group of companies that develops, markets, publishes and distributes video games for PC, console and mobile on a global market. • The group comprises Toadman Studios, Petrol, Sold Out, Antimatter Games and Big Blue Bubble among others. • Covers the entire gaming industry v
Slide 3: Q2 2020 Recap
Q 2 2 02 0 R EC AP • Net revenue grew by more than 1000% compared to Q2 2019. Divided the Company into divisions Games and Services. • Acquisition of Canadian game developer Big Blue Bubble. • Over 25 gaming projects in the pipeline and over 40 planned marketing campaigns for Petrol. • Several game
Slide 4: Overview of Big Blue Bubble
OVERVIEW OF BIG BLUE BUBBLE
Slide 5: Overview of Big Blue Bubble
OVERVIEW OF BIG BLUE BUBBLE BI G BLUE BUBBLE I N SHO RT GAME PO RT FO LI O Big Blue Bubble is a gaming industry mainstay releasing more than 100 titles: its own IP as well as in partnership with world-class brands such as Disney, DreamWorks, Scholastic and Nickelodeon. Big Blue Bubble has its own My
Slide 6: Rationale for EG7
RATIONALE FOR EG7 Through the acquisition, EG7 gains a reputable team of 70+ people across two offices in London, Ontario and San Francisco, California as well as best-in-class internally developed and owned mobile technology to the Group. Big Blue Bubble holds several original and strong IP:s with
Slide 7: Acquisition terms: purchase price and EBITDA multiple
16 mCAD 2m UP-FRONT PURCHASE PRICE MONTHL Y ACTIVE USERS 4.6x 100+ UP-FRONT EBITDA MULTIPLE TITLES F2P MOBILE AND CONSOLE GAMES
Slide 8: Overview of EG7
OVERVIEW OF EG7
Slide 9: Divisions: Games and Services
2 DIV IS IO N S GAMES SERVICES • Development of own titles and work-for-hire. • Creative marketing studio with 40+ ongoing marketing projects. Previous projects - Call of Duty Warzone, • Five independent studios with unique expertises. Far Cry 6 and Assassins Creed Valhalla. • 10+ fully owned Ips. •
Slide 10: EG7 Value Chain
EG 7 V A L UE C HA IN VALUE CHAIN – WE CONTROL THE VALUE CHAIN DEVELOPING MARKETING PUBLISHING DISTRIBUTING WE TAKE THE COMPANIES WE ACQUIRE TO A NEW LEVEL
Slide 11: History and Progress of M&A
HISTORY AND PROGRESS OF M&A Our buy and build strategy provides the acquired company with a platform for expansion and growth. Value is added to both firms by means of synergies. Add-on acquisition 3 Add-on acquisition 2 Add-on acquisition 1
Slide 12: History & Financials
HI S TO R Y & F I N AN C I AL S +33% 681.2 mSEK Revenue per Year (Pro-forma Revenue) (SEK) Revenue Growth Big Blue per Year Bubble acquired +573% 512.4 mSEK (Pro-forma Revenue) Petrol, Soldout and Antimatter acquired Artplant Contract with +586% Acquisition Fatshark Consulting in Contract worth 76.1
Slide 13: Group companies and leaders
BIG BLUE BUBBLE HQ ARTPLAN T NORW AY DEVELOPER & GAME DEVELOPER TOADMAN HQ PUBLISHE R GAME DEVELOPER BIG BLUE BUBBLE ANTIMATTE R GAMES ARTPLAN T RUSSIA GAME DEVELOPER GAME DEVELOPER PETROL ADVERTISING MARKETING SOLD OUT TOADMAN BERLIN PUBLISHE R & GAME DEVELOPER DISTRIBU TO R DAMIR SLOGAR JAMES CATO
Slide 14: Solid Track Record and Pipeline
S O L ID TR A C K R EC O R D A N D P IP EL IN E 150+ PREVIOUS GAME 25+ CURRENT GAME 40+ ONGOING MARKETING PROJECTS 1 PROJECTS 1 CAMPAIGNS 1) Development, publishing, distribution
Slide 15: Released in 2020
S EL EC TIO N O F G A M ES W E DEV EL O P , DIS TR IBUTE, P UBL IS H A N D M A R KET RELEASED IN 2020 RELEASED RELEASED RELEASED RELEASED RELEASED RELEASED RELEASED RELEASED
Slide 16: To Be Released in 2020-2022
S EL EC TIO N O F G A M ES W E DEV EL O P , DIS TR IBUTE, A N D P UBL IS H TO BE RELEASED IN 2020-2022 ”HATHOR” DISJUNCTI O N GESTALT 10+ 40+ BLOCK N MARKETING EVILVEVI L LOAD 2 UNDISCL O SED CAMPAIGNS PROJECTS AND RELEASES
Slide 17: EG7 as an Investment
EG7 AS AN INVESTMENT
Slide 18: Current Market Conditions Create Opportunities for EG7
CURRENT MARKET CONDITIONS CREATE OPPORTUNITIES FOR EG7 1. M&A 2. → Further accelerating our M&A strategy given our currently strong and promising pipeline Expanding IP Portfolio 3. → We see several opportunities to acquire IPs to strengthen our portfolio Digital Investment → Opportunity to accelerat
Slide 19: Aligned Incentives Between Management and Investors
AL IGN ED IN C EN TIV ES BETW EEN M AN AGEM EN T AN D IN V ES TO R S SHAREHOLDER TYPE OF INVESTOR SHARES CAPITAL % Robin Flodin Co-Founder 3,815,691 10.91% Rasmus Davidsson Co-Founder 3,152,743 9.01% Dan Sten Olsson med familj och stiftelse Investor, Represented on Board Level 2,900,000 8.29% Alan H
Slide 20: Strong Reasons to Invest
KEY IN V ES TM EN T HIGHL IGHTS 7 • Strong organization consisting of well-renowned companies • Diversified business model and revenue streams STRONG • Very high profitable revenue growth REASONS Proven M&A track record with strong momentum TO INVEST • • Global coverage of a market undergoing rapid
Slide 21: Thank You
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Slide 22: Appendix: Income Statement - Group
APPENDIX 1 INCOME STATEMENT - GROUP QUARTER ACCUMULATED FY 2019 2020-04-01 2019-04-01 2020-01-01 2019-01-01 2019-01-01 2020-06-30 2019-06-30 2020-06-30 2019-06-30 2019-12-31 (KSEK) 3 months 3 months 6 months 6 months 12 months Net revenue 138,027 13,618 293,505 28,445 151,644 Own work capitalized 10
Slide 23: Appendix: Balance Sheet - Group
AP P EN DIX 2 – BAL AN C E S HEET GR O UP (KSEK) 2020-06-30 2019-06-30 2019-12-31 ASSETS Non-current assets Intangible non-current assets 470,986 208,432 510,210 Tangible non-current assets 8,067 7,987 8,999 Financial non-currents assets 2,212 1,288 2,534 Total non-current assets 481,265 217,707 521