Verve Group Se Class A · OMXSTO:VER
Verve Group Se Class A — Media and Games Invest — Q1 2022 Earnings Presentation
32 slides from Verve Group Se Class A's earnings presentation, 2022
Slide 1: Earnings Call - Interim Report Q1 2022
Earnings Call - Interim Report Q1 2022
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: Agenda
Agenda Introduction Business Overview Our Ad-Software Platform Overview ESG Financial Performance Vision 2025
Slide 4: Introduction
G Media and Games Invest @ 1. Introduction
Slide 5: Today's Presenters and Ownership Structure
Today’s Presenters and Ownership Structure Shareholdings (159,249,358 shares)1 Shares listed on Frankfurt Stock Exchange and 26% Remco Westermann Nasdaq First North Premier Stockholm Remco Westermann holds his MGI shares via the German holding company Bodhivas GmbH. Bodhivas GmbH is based in Düsseld
Slide 6: Business Overview
G Media and Games @ 2. Business Overview
Slide 7: Key facts Q1'22 in a Nutshell
Key facts €266M +800 Employees1 Revenue LTM Q1’22 Q1’22 in a Nutshell 55% Tech Employees2 €75M A leading European Ad-Software-Platform Adj. EBITDA LTM Q1’22 with strong First-Party Games Data +450 Software Clients 4 27% Revenue Growth Q1’22 +96% Retention Rate with Software Clients >$100k5 18% Organ
Slide 8: Global Reach
Global Reach Combining vast global reach… North America Europe1 RoW +516B +2.0B +250M yearly ad Connected end- Daily active impressions2 consumer devices5 users3 13% … with world class first party content access. 20% Revenues by region (Q1’22) +5,000 +20,000 +800M own games Connected Own gamers mobi
Slide 9: Major Events during Q1 2022
Major Events during Q1 2022 Initiatives facilitating strong revenue growth in the first quarter of 2022 NEW GAMES PUBLISHERS NEW LAUNCH DEPARTMENT TO ONBOARDED: IEC, EYEWIND, FURTHER INCREASE GAME ZEPHYR MOBILE,… LAUNCHING EFFORTS LAUNCH OF MOMENTS.AI™ FRACTURED ONLINE: CONTEXTUAL MARKETING CLOSED B
Slide 10: Our Ad-Software Platform
G Hele and Games @ 3. Our Ad-Software Platform
Slide 11: Acceleration of the MGI Flywheel
Acceleration of the MGI Flywheel AxesInMotion is a perfect strategic fit to spin our Flywheel Served more relevant ads to users More Critical Mass More Players DSP World class Up to 30% more efficient games UA SSP Up to 50% more ad- More Publishers revenues More Advertisers +800M Consumers power our
Slide 12: Acceleration of the MGI Flywheel (2/2)
Acceleration of the MGI Flywheel (2/2) Leading mobile racing game developer with +700 million downloads (acquisition signed after Q1’22) • Perfect strategic fit to achieve MGI’s Vision 2025 by adding first party data from own mobile games content • Exceptional revenue synergy potential with MGI’s Ad
Slide 13: Revenue share across the value chain and ad-formats
Revenue share across the value chain and ad-formats Strong Supply Side Positioning in Mobile In-App Revenue breakdown by ad-platform Revenue breakdown per consumer device Q1’222 Q1’221 Focus on growing the Demand Side via M&A and direct sales in the coming periods 7% 29% Desktop1 Mobile (In-App) 57%
Slide 14: We Grow With Our Software Clients
We Grow With Our Software Clients The KPIs driving our top-line growth Ad Impressions Ad impressions delivered (in bn) 1 Including M&A 173 Organic Growth 156 135 87 85 59 66 37 44 15 17 22 54 111% YoY 40 Organic Growth Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 >3.5x growth in ad impressi
Slide 15: Our answers to an identifier and cookie-less world
Our answers to an identifier and cookie-less world MGI’s strong value-added services in the new era of programmatic Anonymized Contextual 1st Party Audiences Targeting Games Data PRIVACY-FIRST, ON-DEVICE CONTEXTUAL MARKETING IN FULL MARGIN IN-HOUSE: HIGHEST AUDIENCE TARGETING SOLUTION MILLISECONDS A
Slide 16: Why We Believe First Party Data is important
Why We Believe First Party Data is important MAKING OUR AI / ML MORE POWERFUL UNCERTAINTIES REGARDING 3P-DATA AVAILABILITY – MGI is in the process to further improve its Machine Learning and – To us 3P data availability in the future is a big question mark Artificial Intelligence by leveraging 1P da
Slide 17: Content Launches at Scale To Accelerate the Flywheel
Content Launches at Scale To Accelerate the Flywheel Delivering new content on an ongoing basis drives engagement and ad monetization 1 Q3 2021 Q4 2021 Q1 2022 New engaging Casual Games 3 Casual Games - Launch Pipeline strong pipeline of 2022 new and engaging Criminal Archives: Myth or Reality: I Lo
Slide 18: Top 5 M&A Targets
Top 5 M&A Targets Several attractive targets in the pipeline, with some signings expected soon <10x EV/EBITDA (incl. synergies) Overview of cases with good potential to be signed within next 6 months1: Mobile games developer & publisher Own strong IP, mobile racing games, € 7 - 10m revenues, highl
Slide 19: Overview ESG
Overview ESG 4. Media and Games Invest @ @
Slide 20: Sustainability, a Key Focus Area for MGI
Sustainability, a Key Focus Area for MGI Selection of some major achievements in 2021 MGI has put great emphasize on sustainability initiatives and will continue to do so in the future MGI achieved carbon neutrality for 2020 in MGI established a permanent cooperation with MGI initiated the cooperati
Slide 21: MGI Is Actively Improving Its Governance
MGI Is Actively Improving Its Governance Reducing administrative complexity and risk premium on MGI stock Nomination Update on the relocation process Governance structure Committee established Initiated relocation away from Malta following Malta’s grey- Increase number of Board members and establish
Slide 22: Financial Performance
G Media and Games Invest @ 5. Financial Performance sere, WE MM
Slide 23: First Quarter Financial Highlights
First Quarter Financial Highlights Revenues increased by 27% and adjusted EBITDA by 30% Strong Growth Compared To Strong profitability and cash generation Q1 2021 Q1 2022 27% 18% Growth Revenue Growth of which: Organic Revenue Growth 30% 45% Net Revenues Adj. EBITDA Growth Adj. EBIT Growth Adj. EBIT
Slide 24: Seasonality in Programmatic Advertisement
Seasonality in Programmatic Advertisement MGI outperforms the programmatic ad market in the seasonally always weak first quarter of the year Seasonality in programmatic advertisement vs. MGI Comments - Programmatic ad revenues in Q4 are Stand-alone Group driven by Xmas holiday sales; therefore Displ
Slide 25: Consistent Long-Term Financial Development
Consistent Long-Term Financial Development Highly scalable and profitable business model with strong organic growth EURm1,2 CAGR 72%3 18% Organic Revenues Growth4 266 Adj. EBITDA 252 Adj. EBIT % margin (EBITDA) 30% 140 28% 28% 25% 22% 21% 20% 84 18% 75 71 55 59 42 45 10% 39 29 22 18 18 15 11 13 10 2
Slide 26: Operating Cash Flow and Capex Development
Operating Cash Flow and Capex Development MGI Flywheel at work: Increasing cash flow from operations, more investments in organic growth and larger acquisitions Operating cash flow development1,2,3 Capex development3 (EURm) 70 (EURm) 296 65 Operating Cash Flow Maintenance Capex 60 Free Cash Flow Exp
Slide 27: Net Leverage and Interest Coverage Ratio
Net Leverage and Interest Coverage Ratio Conservatively levered with an net leverage of 2.9x based on Q1 2022 LTM adj. EBITDA Net leverage to adj. EBITDA ratio development1 Interest Coverage Ratio development1 (EURm) (EURm) Net leverage Interest Coverage Ratio Net Interest Bearing Debt 220 Adj. EBIT
Slide 28: Updated Guidance 2022
Updated Guidance 2022 Strong EBITDA growth fueled by AxesInMotion Updated Guidance 2022 FY 2021 Guidance 2022 incl. AxesInMotion2 Revenue 252 290 – 3101 295 – 315 (in €m) Growth 80% 15-23%2 17-25% Adj. EBITDA 71 80 – 90 83 – 93 (in €m) Growth 143% 13-27% 17-31% Notes: (1) Includes Affiliate and Infl
Slide 29: Mid-term Financial Targets
Mid-term Financial Targets Prudent mid-term financial targets which have been outperformed for three years in a row Revenue CAGR Adj. EBITDA margin Adj. EBIT margin Pro-Forma Leverage1 25-30% 25-30% 15-20% 2-3x Notes: (1) Mid-term net leverage target incl. LTM EBITDA from M&A Source: Group informati
Slide 30: Vision 2025
G Hele and Games @ 6. Vision 2025
Slide 31: Headlines Vision 2025
BEING ONE OF THE MOST DESIRED GLOBAL COMPANIES TO WORK FOR embracing diversity, global, no politics, professional, engaged, innovative, strong drive BECOMING ONE OF THE TOP 5 WORLDWIDE LEADING AD-SOFTWARE PLATFORMS transparent, open source, innovative, multi-format, omni- Headlines Vision 2025 platf
Slide 32: Thank You.
Thank You. www.mgi-se.com 32
Media and Games Invest — Q1 2022 Earnings Presentation on 6ix