Tinybuild Inc. · LSE:TBLD
Tinybuild — H1 2022 Earnings Presentation
35 slides from Tinybuild's earnings presentation, September 2022
Slide 1: H1 2022 Results Presentation
H1 2022 Results Presentation
Slide 2: Disclaimer
DISCLAIMER IMPORTANT: You must read the following disclaimer before continuing. The following disclaimer applies to the following presentation and you are therefore advised to read this disclaimer carefully before reading, assessing or making any other use of the presentation. In accessing the prese
Slide 3: Presenting Today
PRESENTING TODAY Alex Nichiporchik Tony Assenza Giasone (Jaz) Salati Chief Executive Officer, co-Founder Chief Financial Officer Head of M&A and IR 18 years' industry experience. 11 years’ finance experience. 20+ years’ finance experience. Shipped over 20 titles as Completed 6 acquisitions, Top ranked
Slide 4: Agenda
AGENDA - FY 2021 OPERATIONAL REVIEW FINANCIAL REVIEW OUTLOOK APPENDIX 4
Slide 5: Operational Review
OPERATIONAL REVIEW Alex Nichiporchik (CEO, Founder)
Slide 6: H1 2022 Highlights
H1 2022 HIGHLIGHTS 54% $9.9m >30 revenue growth adj. EBITDA games currently in the pipeline 83% 3 $43m Acquisitions closed of sales from Own-IP net cash at 30 June ‘22 ytd in 2022 6
Slide 7: Showreel
SHOWREEL Page intentionally left blank 7
Slide 8: tinyBuild Global Presence
TINYBUILD GLOBAL PRESENCE >70 GAMES PUBLISHED >400 STAFF* GLOBALLY 12 STUDIOS 1.5m SOCIAL MEDIA FOLLOWERS** Map shows selected partner locations only (March 2022) * Employees and independent contractors 8 ** Source Company research
Slide 9: Back to Live Events
BACK TO LIVE EVENTS *Source Company research 9
Slide 10: Broader Portfolio, Focused on Own IP
BROADER PORTFOLIO, FOCUSED ON OWN IP OVER 70 GAMES CATALOGUE AT THE END OF JUNE 2022, CREATING A DIVERSE REVENUE MIX H122 FY17 83% OWN-IP AS % OF GAMING REVENUE* *Excluding rerchandise revenues 10
Slide 11: Back Catalogue Underpins Growth
BACK CATALOGUE UNDERPINS GROWTH Back catalogue* as a % of gaming revenue *Back catalogue is defined as any games released in the prior financial year and before 11
Slide 12: Financial Review
FINANCIAL REVIEW Antonio Assenza (CFO)
Slide 13: H1 22 Financials
H1 22 FINANCIALS Net Game Revenues1 Adj. EBITDA2 Adj. Cash from Operations3 4 % 1 5 %wth 1 % H 1 5 t 46rev grow nH n in H i 2 gro h i th grow v o-y re rev y- -y -y y-o y-o ▪ Net game revenue growth driven by strong ▪ Adj. EBITDA margin primarily reflects the ▪ Adj. Cash from Operations increased back
Slide 14: Profit & Loss
PROFIT & LOSS ▪ Continued strong organic growth with increased share from own-IP games ▪ Events revenue declined due to cancellation of DevGAMM in Ukraine and Russia ▪ Adj. EBITDA margin reflects the consolidation of structurally lower margin Versus Evil and Red Cerberus, plus increase in marketing s
Slide 15: Cash Flow Statement
CASH FLOW STATEMENT ▪ Net cash generated from operations increased to $8.8m in H1 2022, a sharp increase from $3.8m in H1 2021 (excluding IPO costs) ▪ The increase in amortisation of intangible assets reflects the successful launches in H2 2021 and our consevative amortisation policy ▪ Investing for
Slide 16: Balance Sheet
BALANCE SHEET ▪ Strong financial position with $42.6m cash at 30 June 2022, plus revolving credit facility expanded to $35m (undrawn) ▪ Goodwill was $13.2m following the acquisition of Versus Evil and Red Cerberus ▪ The decrease in Other current liabilities is the result is due to the timing of contr
Slide 17: Outlook
OUTLOOK Alex Nichiporchik (CEO, Founder)
Slide 18: Portfolio Approach to Growth
PORTFOLIO APPROACH TO GROWTH Secret Neighbor (GaaS) Eville DEADSIDE (Early Access) Not For broadcast Nitro Kid Fridge is Red Consistent updates for 2 years after A multiplayer social deduction game Hardcore multiplayer shooter with live A dystopian TV propaganda Roguelike deckbuilder set in the neon
Slide 19: M&A Execution (Year to Date)
M&A EXECUTION (YEAR TO DATE) Demagic DEMAGIC $43m DATE: April 2022 BOSSA IP Cash on hand at TYPE: Acquihire LOCATION: Ukraine, Serbia DATE: August 2022 30 June 2022 TYPE: IP Purchase TEAM SIZE: 23 LOCATION: London, UK GAMES: unannounced TEAM SIZE: nil GAMES: Surgeon Sim, I am Bread, I am Fish KONFA
Slide 20: Konfa - Case Study
KONFA - CASE STUDY ▪ Despot’s Game launched on Steam on October ‘21 (early access) ▪ tinyBuild has been working with the team for over two years ▪ Konfa acquihired in August 2022 ($5.4m max consideration) ▪ Despot’s Game was one of our top 10 sellers in H1 2022 ▪ Russian team of four founders reloca
Slide 21: Despot's Game Animated Trailer
DESPOT’S GAME ANIMATED TRAILER Page intentionally left blank 21
Slide 22: Hello Neighbor Franchise Announcement
HELLO NEIGHBOR FRANCHISE ANNOUNCEMENT ▪ First episode of Hello Neighbor animated serie to premier in Dec. 2022 ▪ Hello Neighbor 2 pre-orders progressing in line with expectations ▪ Most sophisticated cross-platform launch to date ▪ Price point $39.99 (standard), $59.99 (deluxe edition) ▪ Average pla
Slide 23: Hello Neighbor Franchise
HELLO NEIGHBOR FRANCHISE Hello Neighbor franchise stats… Social, Puzzler e ce mb e r ‘ 2 2 70M+ 5M+ 6th D eSandbox lea se HN downloads HN2 downloads Linear Chapter based R An 4M ym Animated or Linear Chapter based TV series e? Secret Neighbor ? iOS downloads Episode 1 premiere GRAPHIC NOVELS >140K s
Slide 24: Core Strategy
CORE STRATEGY …across Global …creating long …focused on IP multiple developer term scalable ownership… media publisher… franchises… formats 24
Slide 25: Outlook
OUTLOOK The Board remains confident the company is on track to deliver results at least in line with expectations, plus accretive acquisitions. 25
Slide 26: Appendix
APPENDIX
Slide 27: Brief History of tinyBuild
BRIEF HISTORY OF TINYBUILD 2013 - 2015 2016 - 2018 2019 2020 2021 2022 & beyond… Acquihired… Acquihired… Acquihired… Secret No Time to Transitioned to Neighbor Explain 2nd Party IP & AA launch released games >70 Acquihired Invested in Dynamic Pine Events & Founder owned Pixels DevGamm Highlights 40
Slide 28: Innovative Marketing Approach
INNOVATIVE MARKETING APPROACH Mutually beneficial relationship Social Media Following vs. Competitors* with influencers Influencers require 1 content tinyBuild produces c.5 billion + 2 exciting and interactive content YouTube views Influencer 10,000 + receives views (views = money) 3 tinyBuild receives
Slide 29: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Alex Nichiporchik Luke Burtis Tony Assenza Michael Schauble Chief Executive Officer & Founder Chief Operating Officer & Founder Chief Financial Officer VP – Business Development 18 years' industry experience 19 years' industry experience 11 years’ finance experience 16 yea
Slide 30: A Thorough, Yet Agile, Selection Process
A THOROUGH, YET AGILE, SELECTION PROCESS Tested process quickly identifies IP to pursue Developer led differentiates us… Inbound Desktop Conferences Reach Social pitches research presence Multimedia DISCOVER extend audience 1,000+ p/a Services 2nd party IP marketing, video creative production, QA & c
Slide 31: Conflict in Ukraine
CONFLICT IN UKRAINE ▪ The situation is constantly evolving - people’s safety and wellbeing remain our priority ▪ Logistic and financial support for relocation provided ▪ All 30+ Ukrainian staff* in relative safety of Kyiv and Lviv ▪ Fewer than 10 staff* still based in Russia (was c.100) ▪ Studios in
Slide 32: M&A Strategy
M&A Strategy Strategic rationale Deal Structure ▪ New Intellectual Property IP ▪ Deferred consideration ▪ Complimentary publishers ▪ Attractive Multiples ▪ Development studios ▪ Minimum Target Return on Investment ▪ Additional service providers ▪ Accretion Growth mindset Retention and Incentivisatio
Slide 33: Strategy Check
STRATEGY CHECK • Continued investment in pipeline of over 30 games 01 LEVERAGING EXISTING IP • Multi-platform launches (e.g. tinyKin, Spiderheck) • Potion Craft, Despot’s Game, Not for Broadcast, etc. to version 1.0 in 2022 • Three M&A deals closed so far in 2022, inc. Demagic and Konfa • Deal struc
Slide 34: Accounting: Amortisation Policies
ACCOUNTING: AMORTISATION DEVELOPER ADVANCE AMORTISATION (2 & 3RD PARTY) ND 2nd and 3rd party developer advances are capitalised on payment and recognised on the P&L in line with revenue until the capitalised development advances are fully amortised POLICIES DEVELOPER SALARY Developer salary costs ar
Slide 35: Thank You!
Build THANK YOU!