Verve Group Se Class A · OMXSTO:VER
Verve Group Se Class A — Media and Games Invest — Merger or Acquisition (July 2021)
29 slides from Verve Group Se Class A's merger presentation, Jul 14, 2021
Slide 1: Smaato Acquisition
SMAATO ACQUISITION 14 July 2021
Slide 2: Disclaimer
Disclaimer THE INFORMATION CONTAINED IN THIS PRESENTATION IS STRICTLY CONFIDENTIAL. ACCORDINGLY, THE INFORMATION INCLUDED HEREIN MAY NOT BE REFERRED TO, QUOTED OR OTHERWISE DISCLOSED BY YOU, NEITHER DIRECTLY OR INDIRECTLY NOR WHOLLY OR PARTLY. BY REVIEWING THIS INFORMATION, YOU ARE ACKNOWLEDGING THE
Slide 3: Today's Presenters and Ownership Structure
Today’s Presenters and Ownership Structure Shares listed on Frankfurt Stock Exchange and Nasdaq First North Premier Stockholm Remco Westermann Shareholdings (149,679,980 shares)1 CEO & Chairman of the Board since 2012 • Manager, entrepreneur and investors with more than 25 years of 28% experience fr
Slide 4: MGI acquires Smaato
MGI acquires Smaato Leading Monetization Ad-Platform for Games and other Publishers Investment Rationale A Word from Mr. Shen (QS Funds) ▪ Highly accretive acquisition increasing MGI’s Group EBITDA by 29% “After five years we have reached our investment horizon with Smaato. With the sale to MGI, we
Slide 5: I. Introduction to Smaato
I. Introduction to Smaato II. Customers and Case Studies III. Growth Strategy IV. Financial section
Slide 6: About Smaato
About Smaato A quick Introduction to Smaato Self-Serve Strong Team Smaato’s Digital Ad Tech Platform is an Cloud-based SaaS Approx. 150 Employees omnichannel, self-serve monetization solution platform and ad server. Mobile First Mobile Natives Publishers can bring their first-party data Monetization
Slide 7: Smaato Milestones
Smaato Milestones Company Accomplishments from Inception to current Day The Journey First OTT/CTV SAAS platform selected by Google and customer EROS NOW, on integrated into the AdMob and Founded demand video platform with DoubleClick for Publishers In San Mateo, +150 Million subscribers platforms Si
Slide 8: Smaato Product Overview
Smaato Product Overview Smaato: a product and tech-wise leading digital AdTech Company Quick & Easy Unified Marketplace Flexible Formats Future Proof Publisher Focus Implementation Simple 3 step process to Unified Auction of direct and Mobile first platform built with Monetization solution Fully man
Slide 9: The Smaato Software Supports all major Ad Formats
The Smaato Software Supports all major Ad Formats Publishers bring their First-Party Data and manage their entire Ad Stack on one complete Platform Ad Format Support Revenue Breakdown by Ad Format1 Video 18% Native 15% 68% Display Note 1) FY2020 9
Slide 10: II. Customers and Case Studies
I. Introduction to Smaato II. Customers and Case Studies III. Growth Strategy IV. Financial section
Slide 11: Feedback from Smaato Customers
Feedback from Smaato Customers The Customers love Smaato Publisher Partner Demand Partners “The Smaato team consistently “Smaato offers a wide variety of “Smaato provides an advanced proves that they are dedicated to premium in-app publishers on a mobile ad exchange that gives us helping us reach ou
Slide 12: Rising Volume from Top Publishers
Rising Volume from Top Publishers Smaato Volumes grow with their Publishers (in $k) Mobile Games and Advertising Mobile Casual Games Entertainment App Developer Company Developer (Social Media) 5.000 5.000 3.000 4.000 4.000 2.000 3.000 3.000 2.000 2.000 1.000 1.000 1.000 0 0 0 2017 2018 2019 2020 20
Slide 13: Rising Volume from Top Publishers
Rising Volume from Top Publishers Top Publisher Quarterly Volume Trends Publisher Requests Revenues for 1 Top 50 Publishers Requests growth for 1 top 50 Publishers (in trillion) 7.4 (in USD million) 3,6 (in billion) 121 6.9 111 3,0 100 5.6 2,7 5.0 4.9 4.8 2,2 4.1 3.3 3.1 3.0 2.8 2.8 1,3 2.4 2.4 23 1
Slide 14: A Monetization Success Story: Veraxen
A Monetization Success Story The Veraxen Case Study Veraxen was exploring new strategies to optimize their iPad and iPhone inventory monetization for the Challenge mobile app “Jigsaw Collection HD”. The challenge was to find a strong international monetization and mediation partner to increase ad re
Slide 15: A Monetization Success Story: FunCorp
A Monetization Success Story The FunCorp Case Study FunCorp’s most popular product is iFunny, an app that provides a community for meme lovers and viral Challenge memes from around the internet. The app features an engaged audience and impressive ad viewability rates. With this strong engagement alr
Slide 16: III. Growth Strategy
I. Introduction to Smaato II. Customers and Case Studies III. Growth Strategy IV. Financial section
Slide 17: Tick-the-Box M&A Strategy
Tick-the-Box M&A Strategy As a perfect fit, Smaato complements several open Positions Platform In-App Mobile Web / Web CTV / OTT DOOH Creative Managed Brand Managed Performance DSP (Self Serve, Enterprise) Vertical DMP Integration Open Exchange / Network SSP + HB PMP Analytics, Measurement & Attribu
Slide 18: Future Growth Levers are available across 5 dimensions
Future Growth Levers are available across 5 dimensions With multiple Growth Drivers, Smaato is well-positioned in an Ecosystem rapidly shifting towards ROI 1 Get the controls to monetize their ad stack on one complete platform and free ad server Publishers 2 All major pubs are connected, now we grow
Slide 19: Increasing User Reach and building Critical Mass
Increasing User Reach and building Critical Mass Reach of individual Users can be increased by up to 30% adding significant to the Supply Side Value + Global User Reach: 1.4 bn Global User Reach: 1.3 bn Increase Reach Building Critical Mass Strong growth in Growing omni- Combined reach: Up to 30% in
Slide 20: The Sales Pipeline is full and strong
The Sales Pipeline is full and strong Smaato is in advanced Discussions with a broadly diversified Group of Publishers Current Status Large Publishers Negotiating Qualifying Prospective Clients 20
Slide 21: Further boosting our Supply Side
Further boosting our Supply Side Boosting Revenues on existing and acquired Business by connecting the Platforms Twofold Synergies materializing1 MGI AdTech Value Chain Advertiser Attractive advertising platform owing to MGI’s Synergies with extensive user base, attracting advertisers seeking to opt
Slide 22: IV. Financial section
I. Introduction to Smaato II. Customers and Case Studies III. Growth Strategy IV. Financial section
Slide 23: MGI & Smaato - Combined Financials 2020
MGI & Smaato - Combined Financials 2020 Smaato is a highly value accreditive for MGI adding about 29% Group EBITDA The Smaato Transaction on MGI Group Financials1 Comments (EURm) 173 • The transaction is highly accretive for MGI as it will 140 materially increase the size and profitability of MGI’s
Slide 24: Verve & Smaato - Combined Financials FY2020
Verve & Smaato - Combined Financials FY2020 Smaato is transforming for Verve adding about 140% EBITDA The Smaato Transaction on Verve Financials Comments 98 (EURm) • The transaction is highly accretive for MGI as a whole but specifically for MGI’s 65 media segment Verve • The transaction adds about
Slide 25: Smaato Publisher KPIs and Forecast 2021
Smaato Publisher KPI’s and Forecast 2021 Publisher KPIs Net Revenues & Adj. EBITDA3: 2020-21FC Publishers with Revenue4 > $100k (EURm) 173 ~20% 39 117% 96 Increase in SaaS 33 accounts 2020 YoY2 2019 2020 Average Revenue4 Top 30 Publishers In EURm) 1,7 13 1,5 8 99% Retention rate of > USD 100k SaaS a
Slide 26: Smaato Mid-Term Plan
Smaato Mid-Term Plan Synergies and strong organic Growth driving the Value of the Transaction Transaction Structure Enterprise Value: Release from Escrow: (after FY 2021 certified accounts 3/22) USD 170m (EUR 140.0m) USD 15.4m (EUR 12.7m) 2021FC 2022E EBITDA-growth fueled by: EUR 13.1m EUR 20.5m Adj
Slide 27: Comparable Companies Benchmarking
Comparable Companies Benchmarking The Smaato Price Tag is highly attractive especially when compared to publicly trading Peers Discount (vs. average): Pure AdTech Owned & Operated AdTech Smaato / Verve Standalone Business Model MGI Business Model 25.0x MGI2 Smaato 22.5x Ø 14.7x EV/Revenue 72% 80% (2
Slide 28: Outlook MGI Group 2021
Outlook MGI Group 2021 Double-down on EBITDA Updated Financial Guidance 2021 incl. Smaato Mid-Term Initial Guidance Updated Guidance FY 2020 Financial Targets 2021 incl. Smaato 20212 20211 Revenue 140 175 - 182 220 - 240 234 - 254 (in €m) Growth 67% 25-30% 57-71% 67-81% Adj. EBITDA 29 48 - 50 60 - 6
Slide 29: Media and Games Invest
G Media and Games invest
Media and Games Invest — Merger or Acquisition (July 2021) on 6ix