Nordic Investor Presentation - October 5, 2020 Ticker Nasdaq First North Premier: M8G Ticker Xetra: M8G - Media and Games Invest plc
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Nordic Investor Presentation October 5, 2020 Ticker Nasdaq First North Premier: M8G Ticker Xetra: M8G
Disclaimer Cautionary note regarding forward-looking statements This presentation contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. Such risk factors include those discussed in Opportunities and Risks on pages 4 to 16 of the Company Description (Link: https://mgi.group/wp-content/uploads/2020/09/Media-and-Games-Invest-plc.- Company-description-secure.pdf). MGI does not assume any obligation to update the forward-looking statements contained in this presentation and beyond the legal requirements.
Initial Public Offering on Nasdaq First North Premier
Experienced Nordic gaming investors combined with a strong gaming cluster at Nasdaq Stockholm
Listing on NASDAQ First North Premier Nordic peers with strong valuations
• First day of trading on 6 October 2020
• Completed SEK 300 million capital increase on 09/30/2020
• 25 million new shares and fully diluted 117.073.507 shares
• Applying the Swedish Corporate Governance Code
• Quarterly Reporting in IFRS MGI vs Stillfront based on Pareto 2021 estimates
2021 2021 2021 2021
Pareto estimates Sales EBITDA EBIT Op EBIT
Media and Games Invest 1.4x 6.0x 11.6x 9.3x
Stillfront Group* 8.7x 14.0x 19.3x 15.6x
Discount -84.4% -57.3% -40.0% -40.1%
2
Today’s presenters and ownership structure
REMCO WESTERMANN, 37%
CEO & Chairman of the Board REMCO WESTERMANN
▪ Manager, entrepreneur & investor; more than 25 years Remco Westermann holds his MGI shares via the German holding company Bodhivas
GmbH. Bodhivas GmbH is based in Düsseldorf where Remco Westermann lives and
experience in various leadership positions holds shares from Remco Westermann as well as voting rights Early gamigo Investors.
▪ Founding, reorganizing and growing various companies in Thereof Remco Westerman indirectly holds more than 50% of the voting rights of
Media and Games Invest.
the new technologies and media sector, Sonera, Bob
Mobile/ Cliq Digital,
▪ MSc at Erasmus University, Rotterdam
15%
EARLY INVESTORS
The Early Investors are long-term investors who has been largely invested into gamigo
AG since Remco Westermann acquired gamigo AG from Axel Springer in 2012. In Q1 2020
they swapped their gamigo shares into MGI shares. They agreed on a 25 month lock-up
and therefore underscored their trust into the MGI Management and that it can excecute
further value accreditive M&A.
PAUL ECHT,
Group CFO
▪ Finance Manager with more than 10 years experience in the 48%
tech and finance industry FREE FLOAT WITH TIER-1 INVESTORS
▪ Previously; UniCredit Bank in Berlin, Munich and New York
The Free Float consists of retail and institutional investors who bought the shares on the
and Shopgate Inc. in San Francisco stock market as well as institutional investtors from the 25 million share issue carried out
▪ M.A. in Finance and Accounting and Bachelor of Laws (LL.B.) on 30 September 2020 with Pareto Securities AB as sole manager and bookrunner as well
as 8 million shares from a capital increase managed by Hauck & Aufhäuser in July 2019.
3
I. Introduction INVESTMENT HIGHLIGHTS II. Expansion outpaces booming market growth III. Low risk business model and attractive positioning IV. Synergy realization achieved across both business segments V. Solid track record of value accretive M&A in both markets VI. Recurring and diversified revenues promote stable profitability APPENDIX VII. Management & Board VIII. Ownership & legal structure IX. Other selected information
Media and Games Invest in brief
120 50%
111.9
2018 MGI acquires gamigo 45%
100
40%
83.9
35%
80
EUR +150m Market cap 30%
60 25%
EUR million
42.1 45.3 20%
Listed on Nasdaq First North Premier 1 and FSE 40
39.0
15%
21.6 22.4 10%
20 15.1 18.1
10.5 13.4
+30 M&A transactions 1.5 4.3
6.9 5%
0 0%
2014A 2015A 2016A 2017A 2018A 2019A Q2 2020 LTM
+700 Employees
Revenue Gamigo Revenue MGI Adjusted EBITDA* Gamigo Adjusted EBITDA* MGI
+25 MMOs (Massively Multiplayer Online games)
+5,000 Casual games
Media and Games
+5,000,000 Monthly active players Invest plc
+5.0bn Monthly ads and video views
+750m Subscribers across all video channels Gaming Media
Synergies
63% of revenue 37% of revenue
+5,000 Advertisers
5
Note 1: First Day of Trading scheduled for 6 October 2020
MGI’s two segments
The two segments able to increase user acquisition for organic growth and in-game monetization
Game development and publishing Influencer and performance marketing
In-game purchases Agency fees
Revenue streams Game subscriptions Revenue streams SaaS fees
Advertisement revenues Ad commission
M&A M&A
Key performance metrics Key performance metrics
Monthly direct active
Daily users +600k +5m Monthly users +200m +5bn Monthly ads delivered
users
Gross margin +50% 30% EBITDA margin Gross margin +30% 8% EBITDA margin
Target Group revenue Target Group
shares 60%-70% 25%-30% Target EBITDA margin 30%-40% 15%-20% Target EBITDA margin
revenue share
Wide portfolio of games operating at high margins Marketing channels covering the entire gaming spectrum
6
Note:. EBITDA and Gross margin figures for H1 2020. Daily and monthly data from latest available company information Source: Company information
Broad game portfolio and high growth opportunities:
Portfolio of 30 MMO’s & 5,000 casual games alongside media portfolio
Well-balanced portfolio + Solid organic pipeline + Strong M&A pipeline
ArcheAge
Grand Fantasia Shaiya Defiance Realized launches 1 :
3%
3% 2% 1% Acquired:
Rift
Desert 3%
Operations
4%
30+ companies and assets
Aura
Kingdom
4%
Media Pipeline2:
37%
Fiesta
5% M&A process # M&A Cumulative
status candidates rev. (EURm)
Arche Age
Unchained
11%
Shortlist >65 >900
Contacted >25 >500
Trove
13%
Casual games and
In talks >10 >200
other 14%
No “One-Hit-Wonders“, stable + 8 successful launches incl. DLCs 2019: 5x / 2020: 3x M&A
revenues + more in the pipeline + more in the Pipeline
Clear focus on risk diversification and high growth
7
Note (1) Green = very positive, light green = positive, yellow = neutral, red = negative. (2) Targets overview of 12 months period August 19, 2019 until August 19, 2020.
I. Introduction INVESTMENT HIGHLIGHTS II. Expansion outpaces booming market growth III. Low risk business model and attractive positioning IV. Synergy realization achieved across both business segments V. Solid track record of value accretive M&A in both markets VI. Recurring and diversified revenues promote stable profitability APPENDIX VII. Management & Board VIII. Ownership & legal structure IX. Other selected information
Gaming: a substantial growth market
Biggest entertainment market, with significant growth
Games market: USD >160bn1
200
178.2 Megatrend: More Leisure Time
180
164.6 ▪ Favored form of entertainment; interactive, rewarding, social
160 152.1
138.7
140 Mass Market
121.7 ▪ Gaming market is bigger than the market for books, music and films
120
106.5 ▪ More than two billion players worldwide
USD billion
100 93.1 ▪ 42% of all Germans are playing, 41% of whom are female, 29% over the age of
84.8 50
76.5
80 70.6
60 Growth opportunities
▪ Fragmented market
40
▪ Driven by hits, some with billions in revenues, but also failures
20 ▪ High growth and high margins
▪ Market consolidation, numerous M&A candidates
0
2012 2013 2014 2015 2016 2017 2018 2019 2020E 2021E
Mobile games PC games Console gaming
9
Source: (1) Newzoo Global Games Market Report 2019Gaming subsidiary gamigo: annual growth of 31 percent
gamigo is growing almost 3x faster than the gaming market
2019
Revenue: EUR 58.9m
1
EBITDA (A ): EUR 18.2m
58.9
6.0
5.0 45.3
42.1
39.0
4.0
EUR million
3.0
2014 21.6
Revenue: EUR 15.1m 2.0 18.2
15.1 13.4
EBITDA: EUR 1.5m 10.5
1.0 6.9
4.3
1.5
0.0
2014A 2015A 2016A 2017A 2018A 2019A
Revenue Adjusted EBITDA
High profit margin while expanding fast
10
Note: (1) Adjusted EBITDA consolidated gamigo group excluding one-time M&A and financing costsGamers are loyal and good customers
Gamers spend EUR 50-80 per month & games have a lifetime of over 10 years
Example: Fiesta Online
A multi-player role play game Long-term revenues Substantial revenues
63%
EUR +50m revenues
12% 11% 13% 6.8m gamers
1 Year 1-3 Years 3-5 Years > 5 Years
▪ An anime-themed role play, first launched 13 ▪ Over 63% of revenues from players who ▪ c. EUR 50m revenue in 13 years (2019: EUR
years ago have been active in the same game for 5y+ 2.8m)
▪ Many players on the same servers (MMO) ▪ Free2Play MMO; around 7-10% are paying ▪ 6.8m user accounts created
▪ Community: Playing together is important ▪ EUR 50-80 per month and paying user ▪ Approx. 35k users playing each month
▪ Interactive: go further, become stronger (actuals)
Players stick around for a long time and end up spending a lot
11
Source: Company informationCOVID-19 has positive effects on MGI growth
Increased user activity as an effect of imposed restrictions
Gaming
▪ The pandemic and its corresponding lockdowns have boosted user engagement within video games
▪ Online and mobile gaming market is growing as more people stay inside
▪ People use online gaming to cope with social distancing
New players1 MMO revenue growth1
+43% Up to +50%
Media
▪ Despite the reduced demand for travel and retail advertisement, the media marketing budgets of gaming media companies have
been increased
▪ During May, MGI saw revenue in a few verticals, such as SaaS and influencer marketing, increase to pre-COVID levels
MGI is perfectly positioned for strong growth in 2020 with an accelerated M&A pipeline
12
Note: (1) April 2020 compared to average for January and February 2020Case study Fiesta during and after Covid-lockdown
• The WHO urged the world to stay at home and play video games Revenue 2019 vs 2020
• Resulting in a surge of new players and increased player activity 600.000
500.000
• Average of +50% increase of cash spenders through whole period 400.000
300.000
• From new players to new spenders 200.000
100.000
• Upkeep of high revenue performance and player engagement: 0
April May June July
May 2020 2019 2020
During lock-down in May
+127% YoY of revenue
Player activity 2019 vs 2020
+27% YoY of player activity
60.000
+141% new players 50.000
40.000
30.000
After lock-down in July
July 2020 20.000
10.000
0
+105% YoY of revenue and April May June July
+26% YoY of player activity 2019 2020
+50% increase of cash spenders on average since April
13I. Introduction
INVESTMENT HIGHLIGHTS
II. Expansion outpaces booming market growth
III. Low risk business model and attractive positioning
IV. Synergy realization achieved across both business segments
V. Solid track record of value accretive M&A in both markets
VI. Recurring and diversified revenues promote stable profitability
APPENDIX
VII. Management & Board
VIII. Ownership & legal structure
IX. Other selected information
14MGI’s business model with gaming as a core
Company description Overview of business model
Leading European game publishing platform with: Licensing games (52%1)
• Licensing games from developer, 3 yr
Fast growth;
contracts
• combining M&A and organic growth • But high switching cost for a running game
• Historically 2 drop-outs
Profitability
• focus on high margins and recurring revenues
Acquired games/IP’s (48%1)
Tech-Focus; • Game IP’s acquired from 3rd party developers
• as a driver of success USP’s and efficiency
Synergies;
• integrating acquisitions & optimizing value chain
▪ Extensive user base in Europe and North America
Acquired publisher / developer entities ▪ gamigo.com is one of multiple gamigo platforms for online gaming
Low risk; • Acquiring existing customer base
▪ Browser and mobile-based platforms
• Ready-for-market assets
• no new game development, focus on ROI
• Polished game economy and features ▪ Free-to-play with purchase options in-game
▪ Recurring revenues from users with an average monthly spend (ARPPU 1) of EUR
Shareholder value; 30 to EUR 80, and average lifetime of 2+ years for MMO’s
• mix of own cash-flow, listed non-equity and equity ▪ Revenue supported by in-game advertising, still limited part
15
Note: (1) Company information. Based on Q2 2020I. Introduction
INVESTMENT HIGHLIGHTS
II. Expansion outpaces booming market growth
III. Low risk business model and attractive positioning
IV. Synergy realization achieved across both business segments
V. Solid track record of value accretive M&A in both markets
VI. Recurring and diversified revenues promote stable profitability
APPENDIX
VII. Management & Board
VIII. Ownership & legal structure
IX. Other selected information
16Strategic expansion of the mobile gaming business
Building the mobile user acquisition base Using M&A opportunities in mobile gaming
1,500+ €2-3M
Mobile Games EBITDA*
€13M+
Revenues*
Efficient mobile user acquisition capabilities via own media
Solid organic growth pipeline Mobile revenue growth Q2 vs. Q4 2020E
1% 10% 9%
11% 10%
10%
78% 71%
Expansion of existing PC and Console games to mobile Browser Client Mobile Console Browser Client Mobile Console
17
* Expected for FY 2021Example advertising based mobile casual games
Games and media combined: optimizing the value chain
For break even:
Gaming alone ( )
€0.15 CPI €2 CPM
user acquisition playing user ad-income 75 ad-views
versus Efficiency improved by
Gaming and media combined ( )
+200%
€0.10 CPI €4 CPM
user acquisition playing user ad-income 25 ad-views
Efficiency Synergies Result
High efficiency gain through gaming and • Acquire players efficiently 200% higher efficiency with games
media combined due to first party data and • Monetize players (via ads only) as as good as combined with in-house media and
media traffic purchasing power at scale possible faster reach of break even
18
Note: (1) CPI = Cost Per Install. (2) CPM = Cost Per Thousand ImpressionIn-house Media for ArcheAge Unchained Launch
MGI provides high customer acquisition capabilities compared to traditional publishers and developers
OBJECTIVE STRATEGY Video Spot Created Influencer booked
• Launch a Triple A game in the • Setting the right target group using data
In-House In-House
territories North America and EU from the media companies to acquire the
• Efficient user acquisition with long-
right players
user-lifetime • Centralized booking of influencers across
• Create cost efficient video assets via
video and social media channels,
internal production resources. increasing negotiation power
• Combined skillsets of gamigo’s internal
marketing graphics team and
Mediakraft’s production capabilities with
enriched data
Approach
Sharing gamigo and Verve resources, contacts and market insights, leading to an ever-
growing revenue base and long-term active players
+65 2.4M €10M+
RESULT: Influencer campaigns Views achieved
Organic revenues
19I. Introduction
INVESTMENT HIGHLIGHTS
II. Expansion outpaces booming market growth
III. Low risk business model and attractive positioning
IV. Synergy realization achieved across both business segments
V. Solid track record of value accretive M&A in both markets
VI. Recurring and diversified revenues promote stable profitability
APPENDIX
VII. Management & Board
VIII. Ownership & legal structure
IX. Other selected information
20MGI “buy, integrate, build & improve”
Consequently implementing this strategy since 7 years, executing 30+ M&A cases
Buy Integrate Build & Improve
= = =
Market consolidation Restructuring & Organic sales growth
via M&A realizing synergies
▪ M&A focus distressed & in- ▪ Cost efficiency; unified ▪ Product and technology
efficient companies management structure improvements
▪ Also M&A of accretive ▪ Technical integration; one ▪ Increase number of users and
technology, product & platform & one cloud customers
customer bases. ▪ Internationalization
▪ Cost savings; cancel or renegotiate
contracts, merge offices
21Successful M&A player
MGI’s M&A strategy has yielded high growth based on assets acquisitions and synergies with MGI’s
scalable business model
1 MGI is a highly skilled acquiror… 2 …with a successful process
Typical Pay-back time Negotiation Confirmative Acquisition
Number of Typical size of targets Identification
/ purchase price of & headline due diligence &
acquisitions since 2013 (EURm)2 of target
acquisitions1 due diligence & contract integration
Larger dedicated New reporting lines,
30 negative cases 5 - 30 contact from employees from Finance, IT, needed), start of tech
65 >900
MGI takes harsh initial measures to make acquired targets more efficient and profitable
Contacted >25 >500
Through MGI’s synergy-based platform approach, the targets contribute with 20-30% EBITDA-
Ongoing >10
margin post-acquisition >200
dialogues
Note: (1) Average payback period across all acquisitions since 2013 (excluding Aeria Games which was a large rule changing acquisition paid in shares). (2) Typical size of targets
taking into account revenues that are discontinued. (3) Targets overview of 12 months period Augus 19, 2019 until August 19, 2020.
Source: Company information
22MGI “buy, integrate, build & improve”
More cost control and efficiency through the use of state-of-the-art technology
Gaming (Trion) tech costs1
-74%
543
141 130
Sep -18
2017 Jul - 20
2018 2019
=
Monthly spending
Media (Verve) tech costs1
-57%
654
284 130
2017
Nov -19 2018
Jul -20 2019
Monthly spending
Data centers: Use of Cloud Technology : Result:
❖ High fixed costs ✓ Variable cost / scalable ✓ Massive cost savings and scalable
❖ High personnel costs ✓ Low personnel costs ✓ Reduced risk
❖ Capital-intensive investments ✓ No capital-intensive investments ✓ Reduction of downtimes
23
Note: (1) in kEURMGI “buy, integrate, build & improve”
Growing games following successful integration
Optimization of the rentability Optimization of a s s e t s Organic growth
Last
Balanced 12 months
1 Use synergies 1 1 Relaunches
monetization
24%
2 Improve technology 2 Community Management 2 Sequels Organic Growth
First Revenue
3 Internationalize 3 Content updates
12 months €24m
Revenue
€19m EBITDA
€9m
EBITDA
Acquired for
INVESTMENTS IN GAMES
€ 3.4m
€7m
EUR 8.5m INCREASE IN PROFITABILITY
in October 2018
Trion Assets acquired €3.4m Investment in first 12 month in content, Result: strong cashflow and
for EUR 8.5m in Oct 2018 sequels, advertising and Internationalization substantial organic growth
with strong margins
24I. Introduction
INVESTMENT HIGHLIGHTS
II. Expansion outpaces booming market growth
III. Low risk business model and attractive positioning
IV. Synergy realization achieved across both business segments
V. Solid track record of value accretive M&A in both markets
VI. Recurring and diversified revenues promote stable profitability
APPENDIX
VII. Management & Board
VIII. Ownership & legal structure
IX. Other selected information
25Revenue and EBITDA development
CAGR +43%
120 95%
111.9 • Launch Trove
Delves
Acquisitions:
• Launch AAU 85%
100 • WildTangent
Garden of Gods
• ReachHero
• Acquisition of75%
• AppLift 83.9
Verve
• PubNative
80 65%
EUR million
Acquisition of Acquisition of Acquisition of
55%
Aeria Games Mediakraft Trion Worlds
60 Acquisition of
Looki 45%
39.0 42.1 45.3
40 35%
29.6%
18.1 22.4
21.6 25%
24.9% 21.6%
20 15.1 19.8% 20.0%
17.8% 10.5 13.4
10.0% 6.9 15%
4.3
1.5
0 5%
2014A 2015A 2016A 2017A 2018A 2019A Q2 2020 LTM
Focus on organic growth
Revenue Gamigo Revenue MGI Adjusted EBITDA* Gamigo Total Total Total
8% 85% 98%
growth growth growth
Adjusted EBITDA* MGI Adjusted EBITDA margin* Organic Organic Organic
5% 10% 35%
growth growth growth*
26
Note: (1) EBITDA adjusted for one-time, M&A and financing costs. (2) gamigo was acquired by MGI in May 2018. Financial development includes pro forma figures from 2014 – April 2018. (3) Organic Growth in gaming segment in Q1’20 vs Q2’20Segment and regional performance
Q2 2020 Group revenue (mEUR) Q2 2020 EBITDA (mEUR)
18.8 5.3
11.2
63% 84%
37% 16%
1.0
Gaming Media Gaming Media Gaming Media Gaming Media
Q2 2020 revenue by region (mEUR) MGI’s main markets
2%
4%
4%
34%
55%
EU NA SA Asia RoW
27Diversified revenues
Q2 2020 Group Revenue Q2 2020 Media Revenue
Desert ArcheAge Rift* Grand Fantasia Shaiya*
Operations* 3% 3% 3% 2%
4%
Defiance* 1%
Aura Kingdom
4% Branded
Marketing
Fiesta*
28%
5%
Arche Age SaaS
Unchained Media 36%
11% 37%
Performance
Marketing
20%
Trove*
13%
Casual Games and
Influencer
other
Marketing
14%
16%
Note (*) IPs/Source Code owned by gamigo.
28Games revenue split by device and region
Games revenue by device Q2 2020 Customer acquisition Q2 2020 Top 10 countries by revenues Q2 2020
1% 1 USA
11% 10%
2 Germany
22%
3 France
4 Canada
5 UK
6 Brazil
78%
7 Australia
78%
8 Russia
The
Owned Own Media 9
Browser Client Mobile Console Third Party Netherlands
Distribution Channels
10 Spain
PC Client is the biggest vertical with strong
Strong distribution channels through own Top 3 countries accounts for 64% of the gaming
recurring revenues due to social communities in
media increases profitability revenues
MMO Games
29Recurring gaming revenues for 5+ years (Q2’2020)
Desert Operations Global Deutschland-Spielt Fiesta Online Europe
84% 76% 64%
14% 12%
8% 10% 10%
4% 6% 7% 6%
1 Year 1-3 Years 3-5 Years > 5 Years 1 Year 1-3 Years 3-5 Years > 5 Years 1 Year 1-3 Years 3-5 Years > 5 Years
Last Chaos North America Last Chaos Europe Fiesta Online North America
54% 53%
52%
28%
25%
22%
13% 14%
11% 9% 11%
9%
1 Year 1-3 Years 3-5 Years > 5 Years 1 Year 1-3 Years 3-5 Years > 5 Years 1 Year 1-3 Years 3-5 Years > 5 Years
30Licensed vs owned revenue
Organic growth through launches and content updates
Increasing focus on owned games in 2020
70%
65%
60%
55%
50%
45%
40%
35%
30%
25%
Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20
Licensed Owned
✓ Strong organic growth through licensed game launches in 2019
✓ Content updates in owned games drives organic growth in 2020
31Consolidated cash flow statement
Operating cash flow1 Capital expenditure1
25.000 30.000 27.964
21.289
20.000 25.000
16.200
20.000
15.000
14.113 13.070
15.000
10.000
6.943 10.000
6.551 6.936
4.394 3.801
5.000
5.000
1.393 2.042 1.184
314
0 0
2014 2015 2016 2017 2018 2019 Q2
H12020
2020LTM
LTM 2014 2015 2016 2017 2018 2019 Q2 2020 LTM
Maintenance capex Expansion capex
Adj. Free cash flow2 Highlights 2020
25.000
• Operating Cashflow: Strong increase of 86% in H1 2020 due to realized synergies
20.000
17.277 with the gaming and media segment
15.000
• Free Cashflow: Strong increase in adj. FCF due increasing operating cashflows
12.215 while maintenance capex remained stable underscoring the strong cash
generation of the Group
10.000
• Expansion capex in LTM 2020: The Verve M&A transactions and investments into
5.511
media platforms led to an increase in in Q2 2020 LTM while operating cashflow
5.000 3.009
2.149 and adj. Free cash flow increased by EUR 5 million
626
0
2014 2015 2016 2017 2018 2019 Q2 2020 LTM
H1 2020 LTM
32
Note (1) Until 2017 gamigo Group figures and since 2018 MGI Group figures including gamigo Note (2): Excluding expansion capex for M&A and Investments in platforms and IP rightsLeverage development (2014 – Q2 2020)
Healthy credit metrics with a net leverage of 2.2x to reported EBITDA and 1.9x to adj. EBITDA
Conservative credit metrics with a net leverage of 2.1x to reported EBITDA
Net interest bearing debt, EURk • 14% deleverage (Q2’20)
• Strong EBITDA of €6.3m in (Q2’20)
• €1m FCF after total Investments (Q2‘20)
80.000
Net interest bearing debt • Buyout gamigo minorities
Net IBD / reported EBITDA • Tap Issue MGI Bond (€5m) 71.775 70.709
70.000 • UniCredit Loan (€10m)
26,00x
• Capital Increase
NASDAQ (€28m)
60.000
• Capital Increase (€9m)
21,00x
• Tap Issue gamigo Bond
50.000 (€18m)
• Issue of MGI Bond 43.715
(€15m)
Issue of 16,00x
40.000
UniCredit Loan 34.911
Issue of Nasdaq
(€17m) gamigo Bond
Issue of German
30.000 (€32m)
bond in 2013 25.210 11,00x
(€12m)
20.453 20.430
20.000
7,0
13.068 7,8
10.543 6,00x
10.000
4,2
3,6 3,6
3,1 2,4 2,2 2,2
0 1,00x
2014 2015 2016 2017 2018 2019 Q1 2020 LTM Q2 2020 LTM Illustrative
Note (1) Until December 2017: Net IBD and EBITDA gamigo Group used for calculation. From December 2018 MGI Net IBD and reported EBITDA used for calculation; excluding Shareholder Loans post capital increase
starting from 2018.
33Short-term financial targets 2020
FY 2020 (P) FY 2020 (P) by segment Q2 2020 (A) by segment
FY Revenue FY Revenue Q2’20 Revenue (A)
€115 – 125m 60%-70% 63%
Gaming
YoY growth EBITDA Margin EBITDA Margin (A)
37% – 49% 25-30% 28%
MGI Group
FY EBITDA FY Revenue Q2’20 Revenue (A)
€20 – 23m 30%-40% 37%
Media
YoY growth EBITDA Margin EBITDA Margin (A)
29% – 48% 10-15% 9%
34Mid-term financial targets
Revenue CAGR How to get there
▪ Invest in organic growth projects, e.g. sequels, re-launches & re-skinning
and internationalization
Growth
▪ Investments in new game licenses, game assets and new game launches
25-30% ▪ Further acquisition of accreditive and synergetic M&A targets with focus
at gaming
▪ Further acquisition of intellectual property of games ready or close to
ready for launch
EBITDA margin EBIT margin
Margins
25-30% 15-20%
▪ Reducing OPEX and costs based on economies of scale ▪ Using cost synergies within the group and with newly acquired targets
▪ Using marketing, purchasing and cost benefits based on size ▪ Reducing PPA depreciation in the coming years
35Further execution of our buy & build growth story
Strong revenue CAGR of +25% combined with 25-30% EBITDA margin
Low business risk focus
• Diversified revenue streams with no hit exposure
• Long term revenues from MMO games and media SaaS revenues
• No risky and capital-intense development of new games, launches based on licensed games
Focus on high growth markets gaming and media
• Focus on media and games, no new adventure
• Two segments with strong underlying market growth of +10% p.a.
• Fragmented markets with good M&A and organic growth opportunities
Focus on synergies within and between games and media segments
• Unified cloud platform to reduce infrastructure cost
• High volumes and purchasing power in media for efficient user acquisition for games
• Organic growth through new users for games and more advertising spaces in games
Focus on financial targets
• Further revenue growth of 25-30% p.a. with an EBITDA margin of 25-30%
• Focus on sustainability and shareholder value
• Mix of debt and equity to finance M&A with a net leverage target between 2-3x EBITDA
36Thank You
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