Modern Times Group MTG AB Class A · OMXSTO:MTG_A
Modern Times Group MTG AB Class A — Investor Day (March 2019)
26 slides from Modern Times Group MTG AB Class A's investor day presentation, Mar 12, 2019
Slide 1: Capital markets day, Stockholm, March 12, 2019
) ean Capital markets day my Stockholm, March 12, 2019
Slide 2: MTG Group overview and strategy
MTG Group overview and strategy , Yergen Madsen Lindemann, President and CEO 4 \] D ' “et a @
Slide 3: Agenda
Agenda Session 1 Session 2 13:30 — 14:25 15:30 — 16:15 MTG Group overview and strategy Gaming Jgrgen Madsen Lindemann, President & CEO Hendrik Klindworth, CEO, InnoGames Financial overview and disclosure Eintlly creas C12), Mengiegiae Maria Redin, CFO 14:25 — 15:15 16:15 — 17:30 Opportunities and MT
Slide 4: A long history of successful transformation
A long history of successful transformation Identifying major Leveraging core Getting ahead of market trends capabilities the curve HACK QO STRIX = Dvevlv OES »y viafree &lnnoGames | KONGREGATE |
Slide 5: Massive market opportunity
Massive market opportunity +2.2., Global Entertainment revenues (2018) Gamers worldwide $140b $100b +26 xcace GB Global esports market S @ jofet= fe +10 %CAGR Recorded SVOD/ Physical Live Cinema Consumer Video . music VoD home music books games Global gaming market video video Mo Sources: Newzoo, Ni
Slide 6: Gearing up to shape the future of entertainment
Gearing up to shape the future of entertainment Divestments 6-Asexp * Baltics Y * Czech Republic * Africa * Trace + Sappa . Ukraine * Russia ° Hungary * Bulgaria* Notes: Refers to acquisitions and divestments from 2015 onwards ‘includes sale of Bulgaria based on announced price
Slide 7: Strong performance and superior shareholder returns
Strong performance and superior shareholder returns Total Shareholder Return Index July 2015 — Feb 2019 ° 190,0 +46 e 8 % , ESL acquisition announced MTG ‘B’ 170,0 July 2015 150,0 +31.1% Euro Stoxx Tech +10.5% Nasdaq OMX 130,0 110,0 90,0 70,0 + i i t 15 16 7 18
Slide 8: Becoming a pure play in digital entertainment
Becoming a pure play in digital entertainment Listing NENT Group in March 28, 2019 Mo Pure play in digital entertainment ft nordic entertainment group Leading Nordic entertainment provider * Comprising Esports (ESL & DreamHack), Gaming * — Comprising Nordic Entertainment and Studios (inneGames &\Kon
Slide 9: Set up to build the future of entertainment
Set up to build the future of entertainment (Fh ww) Operating company Investment company Build Buy
Slide 10: Operating with a global footprint and network
Operating with a global footprint and network .) Mo NMI@ Office m= II© Globalpresence Ham burg @eEsu Cologne Munich —— Mo Stockholm SREAMAacK Operating in key areas + MTG presence on 5 continents and offices located in key areas * VC and M&A activities managed from Stockholm and SF, staying close to
Slide 11: Combining industry knowledge & investment experience to optimize portfolio success
Combining industry knowledge & investment experience to optimize portfolio success MTG HoldCo Management Team Executives with rich experience of buying, building and leading companies MTG Portfolio CEOs AS@Le@ Entrepreneurs and industry experts with deep operating expertise The #1 Preferred Home for
Slide 12: The MTG company culture
The MTG company culture A true competitive differentiator Value-driven Can-do Passionate Track d Responsible culture attitude professionals UT SL tie organisation - Execution * Thirty years of * Love to ; * Acting bolt. smart, fun constant challenge and * Value creation responsibly and and engaging
Slide 13: Believing in corporate responsibility
Believing in corporate responsibility Benchmark as conducted by CR consultancy Ethos International Sustainability score Range 0 — 22 roo H | Companies (A-M) included in benchmark: 20 1 | Activision, EA, G5, IAC, LiveNation, f H NetEase, Paradox Interactive, Roblox, I | | Rovio, Taketwo, Tencent, THQ
Slide 14: Maintaining a strong CR position in the future
Maintaining a strong CR position in the future 05) ® Unique market position * Value creation + New market opportunities 03 * Responsible business partner Governance * CR implementation in all companies * Strong internal competence * Continuous ABC and CoC trainings ,02) @ 7” Strategy * ESG goals and
Slide 15: The home of esports & gaming entertainment
”The home of esports & gaming entertainment”
Slide 16: Initial portfolio of well-positioned businesses
Initial portfolio of well-positioned businesses Global category leaders capitalising on key trends CMe) Esports Gaming Covering the customer journey— watch, interact, learn and share @ESL ae &InnoGames ESEAx *& HF & a J HZ playfull VC Fund mnberush |= BLITZ Unique combination of high profitable grow
Slide 17: Delivering high growth in our esports assets since acquisition
Delivering high growth in our esports assets since acquisition 4.7x || 20% of market Esports vertical revenue 2018 O&O revenue 2018 vs. year of Market share based on vs. year of entry entry Newzoo market numbers 2018
Slide 18: Gaming vertical revenue 2018 vs. year of entry
Gaming vertical revenue 2018 vs. year of entry +37% InnoGames revenue mobile growth 2018 YoY ...and in our gaming assets 2018 Best year ever InnoGames financial results, with 12 years of consecutive profitable revenue growth
Slide 19: Overall, a strong value creation story
Overall, a strong value creation story Majority owned Revenue growth of assets since EBITDA increase of assets since portfolio companies year of entry year of entry ®eEseu On Lal i KONGREGATE FY revenue at FY2018 FY EBITDA at FY2018 year of entry year of entry DREAMHACK &InnoGames Note: EBITDA at En
Slide 20: MTG Portfolio Approach
MTG Portfolio Approach “Success enablers” (M&A, VC) Profitable core “High-margin businesses” (M&A) For , esports and gaming is nota hit-driven business “Focus to operate and develop an with a , adding capabilities to accelerate and increase chances of ” “Well balanced capital allocation policy to dr
Slide 21: Strategic value creation in highly dynamic markets
—— Strategic value creation in highly dynamic markets —— Build-and-buy operating model P e Acquisitive growth ° Continued focus on . through consolidation profitable and sustainable organic growth e Scaling key verticals e Constant product H e Clear investment strategy innovation Build Buy with well
Slide 22: Closing remarks
Closing remarks
Slide 23: Organic growth story
Organic growth story Operational excellence to drive sustainable growth Strategic focus of O&O Improve brand and media partner monetization Expand partnership with core publishers Strong foundation with InnoGames and Kongregate Continue development of strong new IP Acquisitive growth story, looking
Slide 24: Esports - undermonetised industry with strong upside in both B2B and B2C
Esports - undermonetised industry with strong upside in both B2B and B2C Esports enthusiasts and revenue 2017 (million, USDm) eld 0 Revenue (MUSD) 200 e 150 0 14,000 100 10,000 8,000 50 4,500 655 0 Ys NFL NBA MLB NHL Esports BB Annual viewers (millions) Il Revenue (MUSD) Global esports viewers 2017
Slide 25: Gaming - growth from investing in development of key IPs, companies and services
Gaming - growth from investing in development of key IPs, companies and services Multiple lifetime revenue hits in strategy and simulation genres for both browser and mobile Strategy MMO Strategy MMO City Building Strategy Fantasy City Builder Launched 2003 Launched 2010 Launched 2012 Launched 2015
Slide 26: The world's leading esports company with category brand leaders
The world’s leading esports company with category brand leaders This is just the beginning... Proven gaming Successful record of acquiring businesses with strong growth potential VC fund to provide access to future M&A concepts with multi-platform development & publishing capabilities targets Commit