Slide 1: Becoming the go-to-partner for advertisers in the digital environment
Becoming the go-to-partner for advertisers in the digital environment easy-to-use | competitively priced | brand-safe
Slide 2: Digital advertising is growing fast, as audiences move to digital
Introduction Digital advertising is growing fast, as audiences move to digital 2.5bn 10 years ago 5bn Today 14% $800bn ‘22-‘26 CAGR 2026 Market size # Internet users Digital advertising Sourced from ResearchAndMarkets and “Datareportal – Digital 2022: Global overview report”. 2026 total market size
Slide 3: Fragmented digital advertising landscape creates inefficiencies
Atilla Introduction Fragmented digital advertising landscape creates inefficiencies Agency Demand-side Ad networks Supply-side Advertiser platform platform Publisher Ad servers Create Buy Facilitate digital Facilitate digital ads media inventory purchases inventory sale Spends Ad exchange Receives D
Slide 4: Our integrated model optimises the advertising value chain
Introduction Our integrated model optimises the advertising value chain Advertiser Agency Demand-side Ad networks Supply-side Publisher platform platform owned publishers Autom. Advertising auction auction platform sales Digital ad buying Exclusive platform and Publisher publishers formats monetisat
Slide 5: Azerion's single solution advertisement platform
Platform strategy Azerion’s single solution advertisement platform Advertisers DSPs Data Management SSPs Publishers Agency Owned and operated Full stack programmatic and direct advertising platform, full monetisation and omni-channel solutions Rich Media Display Native Video Audio DOOH Hyper local •
Slide 6: The Azerion mission
Platform model The Azerion mission “ Advertisers We help brands improve the way they engage with Our mission is to be the audiences go-to-partner for Consumers advertisers for an easy-to- use, competitively-priced Content We entertain and brand-safe digital ” audiences Non-game Game environment Azer
Slide 7: Our scalable platform provides access to a global, diverse and engaged audience
Platform model Our scalable platform provides access to a global, diverse and engaged audience, connecting publishers and game creators to advertisers Consumers Advertisers Digital publishers Game creators 1.2k+ 520m+ 400k+ 300k+ >1,5k Employees Unique monthly Advertisers 1 Contracted publisher Cont
Slide 8: Strong historical performance underpinning growth outlook
Strategy delivery Strong historical performance underpinning growth outlook Revenue Revenue split Value drivers ~15% Continued integration of past annual growth Direct acquisitions driving synergies and sales efficiencies 20% 20% 60% Increase volume of direct sales 80% 80% ~540 40% Increase volume o
Slide 9: One service, five core elements of value for our clients
Value proposition to advertisers One service, five core elements of value for our clients We are constantly growing our existing business and products and adding new capabilities through acquisitions and partnerships CONTENT REACH TECHNOLOGY CREATIVE AD PEOPLE a safe, curated, engaging and high-qual
Slide 10: Azerion wraps all five in one offer
Value proposition to advertisers Azerion wraps all five in one offer Offering an integrated solution brings advertisers more value but we don’t see companies taking the vertical integration as far as Azerion. CONTENT REACH TECHNOLOGY CREATIVE AD FORMATS PEOPLE Highly scaled social platforms lack cre
Slide 11: Our audiences seek engaging content
Developing content and engaging audiences Our audiences seek engaging content DIGITAL ENTERTAINING QUALITY FREE Device agnostic Engaging Fast and reliable technology Free to use - Desktop - Mobile Fun Safe Freemium Platform agnostic Gamified Trust - Web - App 11
Slide 12: Extended value proposition to advertisers - a global entertainment and media partner
Developing content and engaging audiences Extended value proposition to advertisers - a global entertainment and media partner ADVERTISING Azerion’s unique value proposition to advertisers GAME Reach new audiences with free-to-play DISTRIBUTION casual games METAVERSE Boost brand awareness and connec
Slide 13: Our highly diversified and engaging free to play game content
Developing content and engaging audiences Our highly diversified and engaging free to play game content Thousands of Casual Games monetized through advertisement Our Premium Games monetized through in-game purchase Social Games Sold Social Card Games Average Average 21 min/day 80 min/day Spent by Sp
Slide 14: GameDistribution offers unparalleled value proposition to game creators
Developing content and engaging audiences GameDistribution offers unparalleled value proposition to the whole spectrum of game creators on the web From small game studios… … to large AAA game developers Hassle-free distribution and Competitive and flexible Convert successful AAA titles Unlock new re
Slide 15: Operating the whole supply chain with E-Commerce
Strategy deep dive — Developing content and engaging audiences Operating the whole supply chain with E-Commerce Digital content seller and aggregator AAA and PC games store 5,200+ gaming titles across a wide One of the largest AAA games catalogues range of genres 300+ retail partners 2m+ individual
Slide 16: Innovating in the Metaverse and digital collectibles
Developing content and engaging audiences Innovating in the Metaverse and digital collectibles Frontrunners in the Metaverse Innovating with digital collectibles Emerging opportunities • 4 metaverse communities with millions of users • Solid expertise in developing, distributing and • Azerion as a t
Slide 17: Our game content appeals to all ages, nationalities and interests
Developing content and engaging audiences Our game content appeals to all ages, nationalities and interests What age groups play our games?1 Where do our players play?2 Strategy Action Puzzle Europe 33% 18-24 32% Unknown Female 17% 45% Tile matching Sports Asia 30% 450m 25-34 25% Unique game plays p
Slide 18: Partner with digital publishers offering a wide range of monetisation service
Value proposition to publishers Partner with digital publishers offering a wide range of monetisation service Digital publishers is any company who interacts with its customers digitally - for example through online content, portals, news and videos Contracted Exclusive Azerion offerings publishers
Slide 19: We reach over 520m monthly active users with brand-safe content
Developing content and engaging audiences We reach over 520m monthly active users with brand-safe content Non-game content Game content E-commerce >430m >90m monthly active users monthly active users Data as of September 2023 Sale of social card games completed on 28 August 2023 19
Slide 20: Vertical integration maximizes efficiency for all parties
Value proposition to advertisers Vertical integration maximizes efficiency for all parties Illustrative allocation of highly intermediated ad spend vs. Azerion’s model Traditional ad spend value chain Azerion places ad on 3rd party content Azerion places ad on own content DSP SSP Buying efficiency f
Slide 21: Efficient and easy to use technology
Value proposition to advertisers Efficient and easy to use technology We own all the components needed to successfully run digital advertising campaigns and our open platform allows easy integration with external validation, data and inventory providers. Advertisers & Agencies Universal Buying Inter
Slide 22: Our resilient model has value drivers on both demand and supply sides
Platform model Our resilient model has value drivers on both demand and supply sides Advertisers DEMAND Consumers Direct sales Automated auction sales AZERION’S Advertising auction PROPRIETARY Digital ad buying platform FULL STACK ADTECH platform Publisher monetization services SUPPLY Premium Contra
Slide 23: Becoming the go-to-partner for advertisers: strategic priorities and Q2 2023 proof points
Platform strategy Becoming the go-to-partner for advertisers for an easy-to-use, competitively priced and brand-safe digital environment Strategic Priorities Q2 2023 – Example Proof Points • Launch of Azerion Smart Bidding, Azerion’s improved AI-integrated bidding system to further Ad sales Local ex
Slide 24: Focus on integration and consolidation; strategic M&A powering growth
Consolidation and integration update Focus on integration and consolidation; strategic M&A powering growth Transaction Strategic rationale Progress Milestones Achieved • Geographic diversity into LATAM & US Spanish speaking market • Commercial and technical integration complete with teams, • DMP foc
Slide 25: Integration efforts resulting in a highly scalable and profitable platform
Consolidation and integration update Integration efforts resulting in a highly scalable and profitable platform Number of FTEs 1 Net Revenue'000 per FTE ● Value optimisation initiatives end of 2022 onwards to accelerate € 96 € 93 integration and consolidation of acquired businesses into a single € 1
Slide 26: Q2 2023: Increased earnings driven by revenue growth and ongoing cost savings
Financial update Q2 2023: Increased earnings driven by revenue growth and ongoing cost savings EUR 122m +17% ● Net revenue up approximately 17% year on year, mainly driven by Platform performance Net revenue vs Q2 2022 Q2 2023 ● Adjusted EBITDA grew more than 58% in Q2 EUR 19m +58% 2023 year on year
Slide 27: H1 2023: Increased earnings driven by revenue growth and ongoing cost savings
Financial update H1 2023: Increased earnings driven by revenue growth and ongoing cost savings EUR 235m +18% ● Net revenue up approximately 18% year on year, mainly driven by Platform performance Net revenue vs H1 2022 H1 2023 ● Adjusted EBITDA grew by approximately 55% EUR 27m ~55% in H1 2023 year
Slide 28: Platform – revenue growth and benefits of consolidation and integration
Financial update Platform – revenue growth and benefits of consolidation and integration Financial performance 189 155 ● Net revenue in Q2 2023 up approximately 21% year on year. Net + revenue in H1 2023 up approximately 22% year on year. + + 100 82 Net Revenue ● Adjusted EBTIDA grew by around 68% i
Slide 29: Premium Games – improving profitability driven by efficiency and cost management
Financial update Premium Games – improving profitability driven by efficiency and cost management Financial performance 46 44 ● Net revenue in Q2 2023 up approximately 3% year on year. Net revenue in H1 2023 up approximately 5% year on year. Net Revenue 22 22 ● Adjusted EBTIDA grew by around 37% in
Slide 30: Sale of social card games portfolio
Sale of Social Card Games Sale of social card games portfolio ~€ 81 € 150 • Entered a definitive agreement with Playtika on 1 August, 2023 to acquire million million Azerion’s social card games portfolio, including titles such as Governor of Poker 3 and Poker World. Initial Maximum consideration Con
Slide 31: Strong financial framework
Financial update Strong financial framework 5-quarter rolling financial performance Q2 2023 cash conversion Q2 2023 Net interest bearing debt* 2.4x 2.4x 8.0 -4.8 -3.7 178 9 183 4 10.9 7.5 149 113 122 104 106 22 19 12 12 9 -2.9 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q4/22 Debt Cash Q2/23 Proceeds Pro for
Slide 32: Disclaimer
Q2 2023 investor pack Disclaimer The following disclaimer applies to this document, any oral or video presentation of the information in this document by Azerion Group N.V. (“Azerion Group”) or any person on behalf of Azerion Group and any question-and-answer session that follows the oral or video p
Slide 33: Forward-looking statement
Q2 2023 investor pack Forward-looking statement The Information includes statements, including Azerion Group's financial and operational objectives that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements may be identified by the use of forward-looking termino
Slide 34: Azerion Investor Relations
IR@azerion.com Azerion Investor Relations www.azerion.com