Slide 1: Acquisition of Innova - Q4 Investor Presentation February 2021
ACQUISITION OF INNOVA Q4 INVESTOR PRESENTATION – FEBRUARY 2021
Slide 2: EG7 in Short
EG7 IN S HO RT 2,061 EG7 is a unique eco-system within the video games industry consisting of: SEKm REVENUE PRO FORMA 1. An IP-portfolio consisting of world-class brands with both own IP’s such as 2020 Everquest, PlanetSide, H1Z1 and My Singing Monsters, as well as licensed IP’s such as Lord of the
Slide 3: EG7 Platform: We Control the Value Chain
EG7 PL ATFO RM VALUE CHAIN – WE CONTROL THE VALUE CHAIN DEVELOPING MARKETING PUBLISHING DISTRIBUTING WE TAKE THE COMPANIES WE ACQUIRE TO A NEW LEVEL
Slide 4: Portfolio of World-Class IP
PORTFOLIO OF WORLD-CLASS IP RELEASED 1999 RELEASED 2012 RELEASED 2015 RELEASED 2012 5 RELEASED 2007 RELEASED 2011 RELEASED 2006 RELEASED 2013
Slide 5: Selection of Game Pipeline
SELECTION OF GAME PIPELINE 10+ 40+ 5+ 10+ UNDISCLOSED MARKETING CAMPAIGNS REMASTERED / PROJECTS PROJECTS AND RELEASES NEW VERSIONS OF PORTFOLIO
Slide 6: History & Financials
HIS TO RY & FINANCIAL S +302% Revenue per Year SEK 2,061.0 (Pro-forma Revenue) Revenue Growth per Year +573% Contract worth SEK 512.4m Consulting in SEK 40m with (Pro-forma Revenue) Development Leyou +52% -3% +586% SEK 7.5m SEK 11.4m SEK 11.1m SEK 76.1m 2015-08 2016-08 2017-08 2018-121 2019-12 2020-
Slide 7: Innova in Short
INNO V A IN S HO RT 33.3 EURm 2020 REVENUE Innova is a leading MMORPG publisher headquartered in Luxembourg with offices in Russia. 1. Decades of solid experience, mainly within the free-to-play MMORPG genre. 2. Diversified portfolio of live titles including Lineage 2, Ragnarök Online and Point 13.6
Slide 8: Innova History & Financials
INNO V A HIS TO RY & FINANCIAL S Revenue per Year Revenue Growth per Year EUR 33.3m +30% Revenue +32% EUR 25.6m Revenue EUR 19.4m Revenue EUR 13.6m EBITDA EUR 6.6m EBITDA EUR 4.5m EBITDA 2018-12 2019-12 2020-12
Slide 9: Selection of Game Portfolio
SELECTION OF GAME PORTFOLIO RELEASED 2007 RELEASED 2013 RELEASED 2019 RELEASED 2015 RELEASED 2009 RELEASED 2006 PRIME RELEASED 2018 RELEASED 2018 RELEASED 2006 RELEASED 2018 RELEASED 2009 RELEASED 2020
Slide 10: Lifetime of Core Players Exceeds 5 Years
LIFETIME OF CORE PLAYERS EXCEEDS 5 YEARS ACROSS CURRENTLY ACTIVE PROJECTS
Slide 11: Acquisition Rationale for EG7
8x 100% EBITDA MULTIPLE PAID IN NEWLY ISSUED SHARES EUR 33.3m EUR 13.6m FY2020 REVENUE FY2020 EBITDA ACQUISITION RATIONALE FOR EG7 DIVERSIFIED LIVE GAME PORTFOLIO GEOGRAPHICAL EXPANSION TEAM Innova has a diversified portfolio of 9 live titles Establishes strong presence in Asia for EG7. Addition of
Slide 12: New Combined Group
NEW CO MBINED GRO U P CURRENT EG7 INNOVA COMBINED Video game development and Video game development and related DESCRIPTION MMO video game publisher related services services SALES 2020* SEK 1,721 million SEK 340 million SEK 2,061 million ADJ. EBITDA 2020* SEK 512 million SEK 140 million SEK 652 mil
Slide 13: Divisions
2 D IV IS IO NS GAMES SERVICES • 18 live-service games with SEK 1+ bn of annual • Creative marketing studio with 40+ ongoing marketing revenue. projects. Previous projects - Call of Duty Warzone, Far Cry 6 and Assassin’s Creed Valhalla. • Development of own titles. • 15+ current projects in distribu
Slide 14: 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 15: EG7 as an Investment
EG7 AS AN INVESTMENT
Slide 16: Q4/FY 2020 Recap
Q4/FY 2020 RECAP • Net revenue grew by more than 245% compared to Q4 2019. • Transformational acquisition of US game developer Daybreak Game Company. • Raised SEK 1.7bn from several institutional investors to finance M&A strategy. • Acquisition of Canadian game developer Piranha Games. • Covid-19 de
Slide 17: Next Logical Steps for EG7
K EY INV ES TMENT HIGHL IG HTS NEXT LOGICAL STEPS FOR EG7 1. 2. 3. M&A PIPELINE GAMES TO BE RELEASED COMPLETE ECO-SYSTEM M&A pipeline is stronger Our pipeline of 15+ games Now that the eco-system is than ever. to be released, including complete, we are very million copy sellers. excited about the fu
Slide 18: Aligned Incentives Between Management and Investors
AL IGNED INCENTIV ES BETWEEN MANAGEMENT AND INV ES TO RS SHAREHOLDER1 TYPE OF INVESTOR SHARES CAPITAL % Dan Sten Olsson with family and trust (including board Investor, Represented on Board Level 6,912,000 9.0% member Erik Nielsen) Jason Epstein through companies Chairman of the Board, Daybreak 6,91
Slide 19: Strong Reasons to Invest
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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