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INVESTOR PRESENTATION Q2 2020
INVESTOR PRESENTATION Q2 2020
• E G 7 i s a g r o u p o f c o m p a n i e s t h a t d e v e l o p s , m a r k e t s , p u b l i s h e s a n d d i s t r i b u t e s v i d e o g a m e s f o r P C , c o n s o l e a n d m o b i l e o n a g l o b a l m a r k e t .
• T h e g r o u p c o m p r i s e s T o a d m a n S t u d i o s , P e t r o l , S o l d O u t , A n t i m a t t e r G a m e s a n d B i g B l u e B u b b l ea m o n g o t h e r s .
• C o v e r s t h e e n t i r e g a m i n g i n d u s t r y v a l u e c h a i n . W h e r e w o r k - f o r - h i r e , m a r k e t i n g a n d p u b l i s h i n g h a s p r e d i c t i v e a n d s t a b l e r e v e n u e s t r e a m s a n d d e v e l o p m e n t w i t h g r e a t o p t i o n v a l u e .
• H a s u n d e r g o n e r a p i d g r o w t h , b o t h o r g a n i c a l l y a n d t h r o u g h a c q u i s i t i o n s .
E G 7 I N S H O R T
PRO FORMA
REVENUE TTM 2020-06
PRO FORMA EBITDA TTM
2020-06
OFFICES
681.2 MSEK 95.4 MSEK10
• Net revenue grew by more than 1000% compared to Q2 2019. Divided the Company
into divisions Games and Services.
• Acquisition of Canadian game developer Big Blue Bubble.
• Over 25 gaming projects in the pipeline and over 40 planned marketing campaigns
for Petrol.
• Several game releases, one of which was No Straight Roads.
• Petrol performs better than expected given the shift in projects.
• Even stronger M&A pipeline than previous quarters.
Q 2 2 0 2 0 R E C A P
PRO-FORMA TOTAL REVENUE
Q2 2020
INCREASE IN
NET REVENUE EMPLOYEES
189.1 MSEK 1014%270
PRO-FORMA
EBITDA
Q2 2020
26.6 MSEK
OVERVIEW OF BIG BLUE BUBBLE
Big Blue Bubble is a gaming industry mainstay releasing more than 100 titles: its own IP as well as in partnership with world-class brands such as Disney, DreamWorks, Scholastic and Nickelodeon.
Big Blue Bubble has its own My Singing Monsters, a franchise that is moving into stores and TV. Plus the release of two new games in the next six months.
Big Blue Bubble has been the top grosser in music genreF2P mobile games for 5+ years and this quarter will be releasing a new game, its own IP, Concert Kings.
With 100+ titles, 2 million monthly active users, new games and retail product rollouts. By this the studio is well positioned as an industry leader with 200M+ downloads.
GAME PORTFOLIOBIG BLUE BUBBLE IN SHORT
3.5 mCADEBITDA TTM 2020-06
FINANCIALS
12 mCADREVENUE TTM 2020-06
OVERVIEW OF BIG BLUE BUBBLE
IP OWNERSHIP
F2P VALUE SYNERGIES
STRONG PIPELINE
Big Blue Bubble holds several original and strong IP:s with recurringrevenue.
Big Blue Bubble holds expertise within the F2P sector which will benefit EG7 for some of its upcoming projects.
Big Blue Bubble has a strong development pipeline consisting of several interesting, still unannounced titles.
EXPERIENCED TEAMThe Big Blue Bubble team has worked together with well-known companies such as Disney, DreamWorks, Scholastic and Nickelodeon.
Through the acquisition, EG7 gains a reputable team of 70+ people across two offices in London, Ontario and San Francisco, California as well as best-in-class internally developed and owned mobile technology to the Group.
RATIONALE FOR EG7
PROFITABILITYBig Blue Bubble has been profitable every year since inception and will benefit the EG7 group with improved profitability.
UP-FRONT PURCHASE PRICE
16 mCAD
UP-FRONT EBITDA MULTIPLE
4.6xTITLES
100+
MONTHLY ACTIVE USERS
2m
F2P MOBILE AND CONSOLE GAMES
OVERVIEW OF EG7
• Development of own titles and work-for-hire.
• Five independent studios with unique expertises.
• 10+ fully owned Ips.
• 10+ current projects.
• Creative marketing studio with 40+ ongoing marketing projects. Previous projects - Call of Duty Warzone, Far Cry 6 and Assassins Creed Valhalla.
• 15+ current projects in Publishing, distribution and Work-For-Hire of PC and console video games.
GAMES SERVICES
2 D I V I S I O N S
TOTAL REVENUE 1 TOTAL REVENUE 1
1) Q2 2020 actuals.
~40% ~60%REVENUE Q2 2020
65 MSEK
REVENUE Q2 2020
97,6 MSEK
DEVELOPING MARKETING PUBLISHING
E G 7 V A L U E C H A I N
DISTRIBUTING
VALUE CHAIN – WE CONTROL THE VALUE CHAIN
WE TAKE THE COMPANIES WE ACQUIRE TO A NEW LEVEL
Add-on
acquisition 1
Add-on
acquisition 2
Add-on
acquisition 3
HISTORY AND PROGRESS OF M&AOur buy and build strategy provides the acquired company with a platform for expansion
and growth. Value is added to both firms by means of synergies.
2017-08
(Pro-forma Revenue)
11.4 mSEK7.5 mSEK
2016-082015-08 2018-121 2019-12
Contract with Fatshark
Consulting in Development of
Warhammer Vermintide
Consulting in Development
Contract worth 40 mSEK with
Leyou
11.1 mSEK
512.4 mSEK
Petrol, Soldoutand Antimatter
acquired
ArtplantAcquisition
-3%+52%
+586%
+573%
76.1 mSEK
Revenue per Year(SEK)
Revenue Growthper Year
1) Changed to calendar year. 2018 figures referring to 2017/09/01-2018/12/31, i.e. 16 months.
(Pro-forma Revenue)
681.2 mSEK
TTM 2020-06
Big Blue Bubble
acquired
+33%
H I S T O R Y & F I N A N C I A L S
PETROL ADVERTISING
MARKETING
ARTPLANT NORWAY
GAME DEVELOPER TOADMAN HQ
GAME DEVELOPER
ARTPLANT RUSSIA
GAME DEVELOPERANTIMATTER GAMES
GAME DEVELOPER
SOLD OUT
PUBLISHER &
DISTRIBUTOR
TOADMAN BERLIN
GAME DEVELOPER
BIG BLUE BUBBLE HQ
DEVELOPER &
PUBLISHER
BIG BLUE BUBBLE
DAMIR SLOGARCEO & Founder ofBig Blue Bubble>30 years experience
JAMES CATOCo-founder and COO of Sold Out>30 years experience
ALAN HUNTERCo-founder and CCO of Petrol>20 years experience
RICH BARHAMManaging Director of Antimatter>15 years experience
S O L I D T R A C K R E C O R D A N D P I P E L I N E
150+PREVIOUS GAME
PROJECTS1
25+CURRENT GAME
PROJECTS1
40+ONGOING MARKETING
CAMPAIGNS
1) Development, publishing, distribution
RELEASED IN 2020S E L E C T I O N O F G A M E S W E D E V E L O P , D I S T R I B U T E , P U B L I S H A N D M A R K E T
RELEASED RELEASED
RELEASED
RELEASED
RELEASEDRELEASEDRELEASED
RELEASED
TO BE RELEASED IN 2020-2022S E L E C T I O N O F G A M E S W E D E V E L O P , D I S T R I B U T E , A N D P U B L I S H
40+ MARKETING
CAMPAIGNS
AND RELEASES
10+UNDISCLOSED
PROJECTS
”HATHOR” DISJUNCTION GESTALT
BLOCK N LOAD 2
EVILVEVIL
EG7 AS AN INVESTMENT
CURRENT MARKET CONDITIONS CREATE OPPORTUNITIES FOR EG7
3. Digital Investment→ Opportunity to accelerate investment into digital distribution which improves profit margins
2. Expanding IP Portfolio→ We see several opportunities to acquire IPs to strengthen our portfolio
1. M&A→ Further accelerating our M&A strategy given our currently strong and promising pipeline
A L I G N E D I N C E N T I V E S B E T W E E N M A N A G E M E N T A N D I N V E S T O R S
SHAREHOLDER TYPE OF INVESTOR SHARES CAPITAL %
Robin Flodin Co-Founder 3,815,691 10.91%
Rasmus Davidsson Co-Founder 3,152,743 9.01%
Dan Sten Olsson med familj och stiftelse Investor, Represented on Board Level 2,900,000 8.29%
Alan Hunter Petrol Co-Founder 2,323,718 6.64%
Ben Granados Petrol Co-Founder 2,323,717 6.64%
Länsförsäkringar Fonder External Private Investor 1,960,055 5.60%
Johan Svensson External Private Investor 1,872,909 5.35%
Avanza Pension - 1,695,815 4.85%
Alexander Albedj Private Investor and Chairman 1,677,779 4.80%
Garry Williams Sold Out Co-Founder 1,386,320 3.96%
James Cato Sold Out Co-Founder 1,386,320 3.96%
Other shareholders - 5,780,119 16.52%
Total - 34,988,526 100.00%
Management and Board - 22,695,483 65%
1) Holdings as of June 30, 2020
T I C K E R S Y M B O L : E G 7ISIN: SE0010520106
• Strong organization consisting of well-renowned companies
• Diversified business model and revenue streams
• Very high profitable revenue growth
• Proven M&A track record with strong momentum
• Global coverage of a market undergoing rapid growth
• Diversified upcoming game portfolio
• Strong management with major ownership
STRONG REASONS TO INVEST7
K E Y I N V E S T M E N T H I G H L I G H T S
T H A N K Y O U
A P P E N D I X 1 I N C O M E S T A T E M E N T - G R O U P
18
QUARTER ACCUMULATED FY 20192020-04-012020-06-30
2019-04-012019-06-30
2020-01-01 2020-06-30
2019-01-012019-06-30
2019-01-012019-12-31
(KSEK) 3 months 3 months 6 months 6 months 12 months
Net revenue 138,027 13,618 293,505 28,445 151,644
Own work capitalized 10,002 1,987 17,222 3,697 12,765
Other revenue 14,551 2,750 15,617 2,974 3,942
Total revenue 162,580 18,355 326,344 35,116 168,351
Operating expenses
Cost of goods sold -94,105 -3,279 -190,953 -5,883 -51,257
Other external expenses -12,971 -3,285 -30,890 -7,468 -36,074
Personnel expenses -36,850 -6,933 -73,619 -14,532 -75,409
Other expenses 0 -56 0 -74 -478
Operating profit before depreciation and amortization (EBITDA)
18,654 4,802 30,882 7,159 5,133
Depreciation and amortization -22,969 -357 -46,298 -943 -25,853
Operating profit (EBIT) -4,315 4,445 -15,416 6,216 -20,720
Financial net 939 -431 -13,172 -287 -7,375
Profit before tax -3,376 4,014 -28,588 5,929 -28,095
Tax expense for the period -7,583 80 -12,742 -398 -258
Deferred tax 23 44 365 178 261
Other tax 1,376 0 0 0 0
NET PROFIT -9,560 4,138 -40,965 5,709 -28,092
A P P E N D I X 2 – B A L A N C E S H E E T G R O U P
(KSEK) 2020-06-30 2019-06-30 2019-12-31
ASSETS
Non-current assets
Intangible non-current assets 470,986 208,432 510,210
Tangible non-current assets 8,067 7,987 8,999
Financial non-currents assets 2,212 1,288 2,534
Total non-current assets 481,265 217,707 521,743
Current assets
Inventory 8,207 12,118
Current receivables 131,353 92,453 71,423
Cash and cash equivalents 144,713 25,135 105,740
Total current assets 284,273 117,588 189,281
TOTAL ASSETS 765,538 335,295 711,024
EQUITY AND LIABILITIES
Equity 306,069 127,355 250,126
Provisions 108,375 49,296 111,172
Non-current liabilities 219,507 124,600 216,299
Current liabilities 131,587 34,044 133,427
TOTAL EQUITY AND LIABILITIES 765,538 335,295 711,024
