Huuuge, Inc. · GPW:HUG
Huuuge — Investor Presentation (April 2023)
26 slides from Huuuge's investor presentation, April 2023
Slide 1: Investor Presentation April 2023
Investor Presentation APRIL 2023
Slide 2: Disclaimer
This presentation (“Presentation”) has been prepared by Huuuge, Inc. (the Forward-looking statements include in particular statements regarding the “Company”). By reading the Presentation, you agree to be bound by the financial performance, business strategy, plans and objectives of the Company Discl
Slide 3: How we became Huuuge
How we became Huuuge Gamelion First publishing bought back release $300m revenue Mobile FIFA Billionaire Casino surpassed Gamelion Soccer 3D Market launch incorporated in (EA Sports) Finland Huuuge Casino $200m revenue Market launch surpassed FEB 2023 Announced plans $100m revenue for $150m SBB Game
Slide 4: Huuuge at a glance
Huuuge at a glance Highly profitable and cash generative business model $319m 3 2022 Bookings # of distinct franchises Leading presence in the Social Casino mobile gaming market Robust cash position of $222 m 26% $82m as of 31st December 2022, post Share Buy Back 2022 Adjusted 2022 Adj. EBITDA and Tr
Slide 5: Team of teams
Team of teams Global presence with streamlined operations footprint, Management team comprised of industry veterans with deep with players from almost 200 countries playing our games expertise in gaming POLAND ~360 employees Anton Gauffin Wojciech Wronowski Jon Bellamy CEO Chief Operating Officer Chief
Slide 6: A 'Huuugely' exciting and differentiated proposition
A ‘Huuugely’ exciting and differentiated Massive and prospective Leader in truly social Highly valuable user base proposition mobile gaming market mobile gaming with proven games and attractive pipeline and best-in-class monetisation metrics Profitable and cash Proven Build & Buy Founder-led, visiona
Slide 7: Business
BUSINESS
Slide 8: Truly social - core titles overview
Truly social - core titles overview Driving stickiness and monetization to best in class KPI’s 59% Of total revenue in 2022 47% $184 78% 86% ~$1.1bn USD 2.30 lifetime revenue since ARPDAU launch (2015-2022) (Q4 2022) of MAU are part of paying users of paying users of a club are part of one or intera
Slide 9: Core franchises
Core franchises Harvesting long-term profits Best in class monetization metrics (conversion, ARPDAU and ARPPU) vs peers driven by our clubs and social features Highly profitable with predictable long-term revenue Extraordinary retention of our most valuable players Focus going forward on profitability
Slide 10: Core Franchises: Live Projects
Core Franchises: Live Projects More upside from everlasting player relationships Extension of Huuuge’s VIP Program Generating an uplift in engagement, retention and monetization of our most valuable players Expansion of our webshop for HC & BC With an enthusiastic response from our players, we have
Slide 11: Creation of Pods
Creation of Pods REFOCUSING OUR EFFORTS ON BUILDING GAMES What are Pods? Why? How? ● Small agile units with a startup mentality ● The market landscape is constantly New games with attributes that play to our and full creative freedom, operating as changing and we need to adapt strengths and reflect m
Slide 12: Company-Wide Paradigm Shift
Company-Wide Paradigm Shift CONTINUED FOCUS ON OPTIMIZATION AND PRODUCTIVITY IMPROVEMENTS Lower Marketing Expenses Adjusting headcount to reflect our strategic positioning, but without jeopardizing our future We are limiting our marketing investments - lower spend on UA / performance marketing. We ar
Slide 13: Returning cash to our shareholders
Returning cash to our shareholders $150M SHARE BUY BACK PLANNED IN 1H 2023 Our cash position is stronger than ever - $237m balance (as of 10 March 2023) ● We continue to execute on our harvesting strategy, which translates into strong cash flows ● Our cash and deposits are diversified across several b
Slide 14: Financials
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Slide 15: Consistent improvement in profitability
Consistent improvement in profitability Revenue ($m) Adjusted EBITDA ($m, LHS), Adj. EBITDA margin (%, RHS)
Slide 16: Financial Performance
USD m 2022 2021 YoY Q4 22 Q4 21 YoY Financial Core Franchises 288.1 328.1 -12.2% 72.9 77.2 -5.6% Traffic Puzzle 26.2 34.0 -23.0% 4.1 9.4 -56.8% Performance Other 4.4 11.7 -62.5% 0.7 1.9 -62.0% 01 Revenue 318.6 373.7 -14.7% 77.6 88.5 -12.2% Gross profit/(loss) on sales 221.7 261.5 -15.2% 54.0 61.8 -12.5
Slide 17: Balance Sheet
Balance Sheet USDm December 31, 2022 December 31, 2021 01 Non-current assets 37.4 67.5 01 Includes mainly intangible assets and office 02 Current assets 248.9 232.4 leases. The decrease driven by the Traffic Puzzle impairment Total assets 286.3 299.9 02 Primarily cash and cash equivalents Total equity 2
Slide 18: Cash Flows
Cash Flows USDm 2022 2021 Q4 22 Q4 21 Pre-tax profit 39.1 -1.0 -0.2 14.5 01 Net Operating CF 71.0 29.8 28.9 10.8 02 Investing CF -32.6 -16.0 -0.6 -2.3 01 Strong OCF generation continued in Q4 which 03 was our strongest ever quarter in terms of Financing CF -21.8 96.6 -0.8 -0.9 OCF generation - $28.9m
Slide 19: Highly Cash Generative Business
Highly Cash Generative Business Focus on profitability of our products, continuous optimization of cost base, positive RoI projects lead to positive FCF Cash is king in an uncertain environment and we are a fundamentally strong business in an extremely fortunate position We recognize that we are one
Slide 20: Outlook for 2023
Outlook for 2023 2023 Outlook (YoY) Key Highlights Revenue ● Fundamentally strong, cash generative business, which is able to deliver tangible value to our shareholders Marketing spend ● Continued progress as the globally #1 monetizing social casino operator ● Pods - refocused approach to building n
Slide 21: Key Highlights
Key Highlights Continued progress as the globally #1 monetizing social casino business Shift towards optimising user acquisition efficiency and maximising RoI with a focus on the most redemptive channels Additional opex discipline applied, cutting discretionary expenses and moving more cost from fixed
Slide 22: Thank you
Thank you For more information please see ir.huuugegames.com
Slide 23: Financial data
Financial data Profit & Lose account (USD m) 201720182019 20202027 2022 @i20 2204320 a4z0 ait aaa) atten a2 aaa Revenue 1521 2361 ~=«A~«CST~CTaT «TES 760 289 785 892 957 oS 920 985 40 79.4 715 Cost of sales 448 ne 794 996 1122-989 23.0 268 235 263 281 204 28.0 268 255 240 238 Gross profit/(loce) on
Slide 24: Appendix - KPI's
Appendix - KPI's (users) Fy 2017 FY 2018 FY2019 FY2020 FY202I FY2022 _1aIs 2019-39 aat—tcao azo a0 ata) az] ae) eStats? Total DAU 32113 G507IT 911048 947188 769831 610489 874002 876371 813997 979620 950224 910211 944456 693661 866781 773229 769744 727568 701620 671967 557666 510702 Core Franchises 5
Slide 25: Appendix - glossary
Appendix - glossary ARPDAU Average revenue per daily active user. ARPPU Average revenue per paying user. DAU The number of individual users who played a game on a particular day. DPU The number of players (active users) who made a purchase on a given day. Activities aimed at increasing the player en
Slide 26: For more information please see ir.huuugegames.com
For more information please see ir.huuugegames.com