Enad Global 7 Ab · OMXSTO:EG7
Enad Global 7 Ab — Q1 2021 Earnings Presentation
20 slides from Enad Global 7 Ab's earnings presentation, May 25, 2021
Slide 1: Q1 Investor Presentation – May 2021
Q1 INVESTOR PRESENTATION – MAY 2021
Slide 2: Table of Contents
TABL E O F CONTENTS 1. Q1 HIGHLIGHTS 2. COMPANY OVERVIEW 3. HISTORICAL RECAP 4. EG7 TODAY 5. FUTURE GROWTH INITIATIVES
Slide 3: Q1 2021 Recap
Q1 2021 RECAP • Highest revenue and profit in the history of the company. • Total revenue of SEK 346.5 million, a growth of 112% compared to Q1 2020. • EBITDA of SEK 87.0 million, a growth of 492% compared to Q1 2020. • Closed acquisition of Innova Games 31 March 2021 and will be included in the P&L
Slide 4: EG7 in Short
EG7 IN S HO RT EG7 is a unique eco-system within the video games industry consisting of: 2,001 SEKm 1. An IP-portfolio consisting of world-class live and premium titles: REVENUE PRO o EG7 holds a diversified portfolio of live services such as EverQuest, Lord of the Rings, FORMA RTM PlanetSide, DC Un
Slide 5: History & Financials
HIS TO RY & FINANCIAL S Acquired gaming +302% IP and game platform Revenue per Year SEK 2,061.0 companies (Pro-forma Revenue) Revenue Growth per Year Acquired service platform +573% Company went Contract worth public SEK 512.4m Consulting in SEK 40m with (Pro-forma Revenue) Development Leyou +52% -3
Slide 6: Historical Quarterly Growth
HIS TO RICAL QU ARTERL Y GRO WTH¹ QUARTERLY REVENUE (SEKm) QUARTERLY EBITDA (SEKm) 347 210 164 163 121 87 73 60 18 19 23 14 17 12 15 12 12 13 5 2 5 5 Q1 Q2 Q3 Q4 Q1 Q2 -1 Q3 -3 -5 -17 Q4 2018 2019 2020 2021 2018 2019 2020 2021 1) Reported total revenue and EBITDA
Slide 7: We Control the Entire Value Chain
THE CO MPANY TO D AY WE CONTROL THE ENTIRE VALUE CHAIN DEVELOPING MARKETING PUBLISHING DISTRIBUTION/ PLATFORM • Daybreak, owner of 7 IP's that are live and account for 50% of the revenue, mainly PC and Console. Distributed mainly through our own platform. • Big Blue Bubble, owner of My Singing Monst
Slide 8: Our Games
O U R GAMES RELEASED 1999 RELEASED 2012 RELEASED 2015 RELEASED 2012 RELEASED 2007 RELEASED 2011 RELEASED 2006 RELEASED 2004
Slide 9: Well Diversified Live Service Portfolio
WEL L D IV ERS IFIED L IV E S ERV ICE PO RTFO L IO MY SINGING EVERQUEST PLANETSIDE 2 H1Z1 MONSTERS RELEASE DATE 1999 2012 2015 2012 LIVE-SERVICE GAMES % OF TOTAL GROUP PRO FORMA 2 0 2 0 R E V E N UE DESCRIPTION Fantasy MMORPG Sci-Fi MMOFPS Battle Royale MMO Casual Simulation PLATFORM PC PC, Console
Slide 10: Proprietary Game Distribution Platform
PROPRIETARY GAME DISTRIBUTION PLATFORM • 4Game is EG7’s proprietary game distribution platform with 12 licensed games and counting. • Strong own technology/platform similar to Steam. 16% • Holds game licenses in EU and CIS. 4GAME % OF TOTAL GROUP PRO FORMA 2020 • Revenue is only generated from live-
Slide 11: World-Class Services
WORLD-CLASS SERVICES 22% • Creative marketing • First and third-party studio with 40+ ongoing publisher that has marketing projects. never had an SERVICES % OF Previous projects - Call unprofitable release. TOTAL GROUP PRO of Duty Warzone, Far FORMA 2020 Cry 6 and Assassin’s • Frontier, Team17 and R
Slide 12: Our Offices
O U R O FFICES BIG BLUE BUBBLE ARTPLANT NORWAY DEVELOPER & PUBLISHER GAME DEVELOPER TOADMAN HQ INNOVA GAME DEVELOPER PIRANHA GAMES PUBLISHER DEVELOPER BIG BLUE BUBBLE DEVELOPER & ANTIMATTER GAMES INNOVA HQ ARTPLANT RUSSIA PUBLISHER GAME DEVELOPER PUBLISHER GAME DEVELOPER PETROL DAYBREAK MARKETING SO
Slide 13: Aligned Incentives Between Management and Investors
AL IGNED INCENTIV ES BETWEEN MANAGEMENT AND INV ES TO RS DAN STEN OLSSON GEORGY CHUMBURIDZE Shares: 6,912,000 Shares: 9,726,053 BOARD REPRESENTATION VIA ERIK NIELSEN FOUNDER INNOVA JASON EPSTEIN ALEXANDER ALBEDJ Shares: 6,910,000 Shares: 1,679,084 BOARD CHAIRMAN ROBIN FLODIN JAMES CATO Shares: 3,817
Slide 14: Future Growth Initiatives
FUTURE GROWTH INITIATIVES M&A PIPELINE GAME EXPANSIONS AND NEW TITLES GEOGRAPHICAL PLATFORM EXPANSION OWN IP INTO PLATFORM
Slide 15: Current and Future Titles to Be Included in 4Game Platform
CURRENT AND FUTURE TITLES TO BE INCLUDED IN 4GAME PLATFORM LIVE-SERVICES UPCOMING GAMES TITLES
Slide 16: Geographical Platform Expansion
GEO GRAPHICAL PL ATFO RM EXPANS IO N STRONG IN EUROPE AND CIS – POTENTIAL FOR GEOGRAPHIC EXPANSION
Slide 17: Game Expansions and New Titles
GAME EXPANS IO NS AND NEW TITL ES GAME EXPANSIONS NEW TITLES FUTURE POTENTIAL Unannounced AAA-MMO • Bolt-on investments into existing portfolio is a beneficial method of achieving a more immediate pay-off than the typical premium product investment. • Investments in new IP can create significant val
Slide 18: M&A Strategy
M& A S TRATEGY We employ a selective M&A strategy due to our semi-active approach. We want to successfully integrate the companies into the group and thereby creative synergetic value. Add-on acquisition X Acquisition targets become significant shareholders¹ 8.0x EV/EBITDA multiple 9.7x EV/EBITDA mu
Slide 19: Key Investment Highlights
K EY INV ES TMENT HIGHL IG HTS 1. Unique world-class gaming eco-system. 2. EG7 holds some of the strongest game IP’s in the world. 3. Proven shareholder value through acquisitions. 4. Diversified risk through stable cash-flow, low-risk, profitable STRONG services division and experienced game develo
Slide 20: Thank You
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