Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — InnoGames — Capital Markets Seminar 2017
29 slides from Modern Times Group Mtg Ab Class A's conference presentation, 2017
Slide 1: Capital Markets Seminar 2017
Capital Markets Seminar 2017 Hendrik Klindworth, Founder & CEO
Slide 2: Company Snapshot
COMPANY SNAPSHOT Founded 2007 420 employees in Located in In Germany two offices Hamburg & Düsseldorf 200m registered users 6 live €155m sales >30 language versions games 25% EBITDA margin (Q4/16-Q3/17) 2
Slide 3: Video
VIDEO
Slide 4: Revenue Growth (EURm)
REVENUE GROWTH (EURm) Total 155 LTM 131 104 82 66 Mobile 54 LTM 47 27 33 21 19 6 11 10 2 0 1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 4
Slide 5: EBITDA Margins
EBITDA MARGINS 26% 26% 25% 23% 23% 22% 18% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q416 & Q117 adjusted for costs related to MTG’s acquisition 5
Slide 6: 2017 Gaming Market Size per Segment
2017 GAMING MARKET SIZE PER SEGMENT 7; 6% 18; 17% $7bn 6% $18bn CAGR 17% Downloaded/ Boxed PC -10% 5; 4% Games - P2P Total $5bn 4% +2% 33; 31% $33bn Downloaded/ Boxed PC 31% $109bn Games - F2P -7% Browser PC-Games +14% 2.6bn +2% Gamers CAGR +6% IG relevant $46bn market 42% $51bn 46; 42% CAGR +12% 6
Slide 7: 2017 Gaming Market Size World
2017 GAMING MARKET SIZE WORLD Top-Countries Rev and CAGR Mexico $1.4bn (+12%) Brazil $1.3bn (+11%) 27; 25% Countries Rev and CAGR USA $25.1bn (+3%) Canada $2.0bn (+1%) $8bn 8% $27bn 25% CAGR North America +3% Total IG relevant Europe +4% $109bn market Asia & Pacific 2.6bn $49bn +7% Other +17% 51; 47
Slide 8: Free to Play Business Model
FREE TO PLAY BUSINESS MODEL 100 Registrations 8 8
Slide 9: Free to Play Business Model
FREE TO PLAY BUSINESS MODEL 100 Registrations 20 Active Users 9 9
Slide 10: Free to Play Business Model
FREE TO PLAY BUSINESS MODEL $ $ $ 100 Registrations 20 Active Users 3 Paying Users 50-100 $ per month 10 10
Slide 11: Our Hits
OUR HITS Multiple €100m+ lifetime revenue hits in strategy and simulation genres for both browser and mobile Fantasy City Strategy MMO Strategy MMO City Building Strategy Builder Launched 2003 Launched 2010 Launched 2012 Launched 2015 Lifetime revenues – €100M+ Lifetime revenues – €100M+ Lifetime re
Slide 12: World Class Cross-Platform Expertise
WORLD CLASS CROSS-PLATFORM EXPERTISE INNOGAMES HAS PROVEN SUCCESS OFFERING GAMES ON BOTH BROWSER AND MOBILE SIMULTANEOUSLY Cross-platform strategy allows for one user log- in across devices Switch back and forth between devices without ever losing progress Graphics and gameplay optimized for P
Slide 13: Proven IP, Longevity & Financial Performance
13 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 Time (in months) 70 73 76 79 82 85 88 91 94 97 100 103 106 109 112 115 118 121 10+ years PROVEN IP, LONGEVITY & FINANCIAL PERFORMANCE
Slide 14: High Player Engagement
HIGH PLAYER ENGAGEMENT Total Paying Player 137 31 58 226 avg. monthly in k (+27%) (+10%) (-9%) (+13%) ARPPU 63 56 45 58 avg. monthly in EUR (+3%) (+1%) (+2%) (+4%) Q3 2017 compared with Q3 2016 14 14
Slide 15: Operational KPI Forge of Empires
OPERATIONAL KPI FORGE OF EMPIRES Total game sessions * Worldwide playtime * Q316 vs Q317 Average player age 7.9 bn 149.227 years +25% in DAU 40 years Paying players of active players Players per platform Gender split 9.2% 42% 23% 35% ♂ 76% ♀24% * Since launch 15
Slide 16: Key to Longevity
KEY TO LONGEVITY ANALYTICS MARKETING LIVE-OPS 16
Slide 17: Analytics
ANALYTICS Predictive Analytics: Deep experience in user behavior analysis and predictions. Games/ WHAT Marketing A/B Testing for optimized performance Analytics team marketing and event trackings Intelligent in-game monetization focused on delivering best options to players. HOW Data Analytics
Slide 18: Example: Prediction Modelling
EXAMPLE: PREDICTION MODELLING Predict churn of mid-game players at a time where they are still active REGISTRATION ACTIVITY PREDICTION week 1 week 2 week 3 week 4 week 5 week 6 week 7 A/B test: daily retention in week 2 21,2% 19,5% Control group Test group 18
Slide 19: Marketing: Driven by Performance
MARKETING: DRIVEN BY PERFORMANCE Customer Brand Lifetime Value > Customer Acquisition Marketing PerformanceCosts Marketing Brand awareness (aided and unaided) Registrations / Traffic Attribution Relevant set / first choice Paying Players Net Promoter Score Customer Lifetime Value Ratin
Slide 20: LTV – Lifetime Value Prediction
LTV – LIFETIME VALUE PREDICTION Based on the payments within 30/180/360 days after registration, the 720 day lifetime value of a user can be predicted with great accuracy 95% Ø overall accuracy THIS IS FUNDAMENTAL TO MAKING MARKETING PREDICTABLE 20
Slide 21: Marketing Case Study
MARKETING CASE STUDY Elvenar Ramp Up Net Revenue Ad Spend 21
Slide 22: Live-Ops
LIVE-OPS Clear, predictable and sustainable Events every second week for a longer stay process with constant improvements and joining the Games Leads to extreme long-term motivation CRM: Individual offers to gamer and and fun for our players reactivate churning players Always fresh and new
Slide 23: Future Growth
FUTURE GROWTH The Rough Riders ¥s @) haunted Fark *€seltiers @ Damage 89 20 © Hitpoints 358 ) & Offense 100 | S Bonus targets @O @ bonusamage 20% © Pryscaloetense 1g Magic Defense 4% Critical hance | £4 Critical Damage Range 1a! Moves 4
Slide 24: Stage Gate Process
STAGE GATE PROCESS Central Stage Gate process and agile teams Milestone-based Game creation process in <2.5 years Core elements shared across studios Only top games are launched CONCEPTION PRODUCTION LAUNCH Pitch Prototype Concept Pre- Production I Production II Production III Stability Enga
Slide 25: Product Lifecycle Model
PRODUCT LIFECYCLE MODEL PRODUCE INTRODUCE GROW ESTABLISH DECLINE Highest profit Positive profits High profit margins margins No revenues High marketing Strong marketing invest Little marketing invest No marketing invest Cost budgets invest High & growing revenue level Strong & solid revenue level Lo
Slide 26: Three Pillars of Success
THREE PILLARS OF SUCCESS CREATE LEVERAGE BUY new mobile-only our successfull browser games existing games which games & bring them to mobile fits to our portfolio 26
Slide 27: Summary
SUMMARY Focus on a strong team and best talents Proven monetization ability – bottom down line Focused strategy with clear USPs, Analytics and Marketing numbers Proven track record to create cross-platform games – not a one-hit wonder Future growth driven by mobile expansion and browser consolidatio
Slide 28: 28
28
Slide 29: Anytime, anywhere!
We‘re here to make great games for our players – with high quality, virtual worlds that link millions of people around the world Anytime, anywhere! GO GET IN TOUCH: @innogames /innogames /innogames www.innogames.com