Tinybuild Inc. · LSE:TBLD
Tinybuild — Investor Presentation (November 2021)
32 slides from Tinybuild's investor presentation, November 2021
Slide 1: Autumn 2021 Presentation
AUTUMN 2021 PRESENTATION
Slide 2: Disclaimer
DISCLAIMER IMPORTANT: You must read the following disclaimer before continuing. The following disclaimer only and is not intended to be relied upon as advice to investors or potential investors, and does not Presentation nor any copy of it may be taken or transmitted into or distributed in Canada, A
Slide 3: Agenda
AGENDA INTRODUCTION TO TINYBUILD H1 2021 REVIEW M&A REVIEW OUTLOOK 3
Slide 4: Intro to tinyBuild
INTRO to TINYBUILD
Slide 5: Showreel
SHOWREEL a, €68§"™"—"7
Slide 6: Core Strategy
CORE STRATEGY …creating …across Global …focused on long term multiple developer IP ownership… scalable media publisher… franchises… formats 6
Slide 7: Brief History
BRIEF 2013 - 2015 2016 - 2018 2019 2020 2021 & beyond… HISTORY No Time to Explain released Transitioned to 2nd Party IP & AA games Secret Neighbor launch Acquihired… Acqui-hired… 63 Acquihired Invested in Pine Dynamic Pixels Founder owned Events & Highlights DevGamm 40 35 Top brand in Eastern Europe
Slide 8: Geographic Presence
GEOGRAPHIC PRESENCE 40+ Total games published 14 Own-IP games published 29 Games in the pipeline 9 Acquihires 1.4m Current regions Social media followers Partner region Map shows selected partner locations only 8
Slide 9: 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 ye
Slide 10: Hello Neighbor Franchise
HELLO NEIGHBOR FRANCHISE Hello Neighbor franchise stats… Social, Puzzler GAMES 4 released 70M+ 5M+ 1 pipeline Sandbox HN downloads HN2 downloads GaaS Linear Chapter based Linear Chapter based 2.8M+ Animated Secret Neighbor TV series iOS downloads medium-term pipeline GRAPHIC NOVELS >140K sold TV EPI
Slide 11: Innovative Marketing Approach
INNOVATIVE MARKETING APPROACH Mutually beneficial relationship with influencers Social Media Following vs. Competitors* 1.4m 0.7m Influencers 1 require 0.6m content 0.4m 0.3m tinyBuild produces exciting 0.3m 2 and interactive content 0.3m c.5 billion + 0.2m YouTube views Influencer 0.1m receives vie
Slide 12: Diversified Portfolio, Focused on Own IP
DIVERSIFIED PORTFOLIO, FOCUSED ON OWN IP OVER 40 GAMES H1 21 CATALOGUE, CREATING A DIVERSE REVENUE MIX 22.4% 100% 3.7% 4.9% 6.9% 10.3% 12.0% 90% 77.6% 80% 35.4% 29.6% 70% FY 17 78% 47.5% 41.8% 64.7% 60% Own IP 3rd Party 6.1% 50% 26.8% 40% 30% 54.7% 17.1% 23.1% 50.4% 49.6% OF GAMING 20% 30.4% 36.6% 2
Slide 13: H1 2021 Review
H1 2021 REVIEW GravevarD WEEPER
Slide 14: H1 2021 Highlights
H1 2021 HIGHLIGHTS $18.6m 18% 29 consolidated revenues games in the adj. EBITDA growth pipeline (ytd) $50m 78% 3 gross proceeds of sales from Own-IP acquihires raised at IPO closed 14
Slide 15: H1 21 Financials
H1 21 FINANCIALS Net Game Revenues1 Adj. EBITDA2 Adj. Operating Cash Flow3 $40m 80% $18m 45.0% $18m 160.0% $16m 40.0% $16m 140.0% $35m 70% $14m 35.0% $14m $30m 120.0% 60% $12m 30.0% $12m $25m 100.0% $10m 25.0% $10m $20m 50% 80.0% $8m 20.0% $8m $15m 60.0% 40% $6m 15.0% $6m $10m 40.0% $4m 10.0% $4m 30
Slide 16: Back Catalogue Underpins Growth
BACK CATALOGUE UNDERPINS GROWTH Back catalogue as a % of gaming revenue* SOCIAL $40m MOMENTUM $35m $30m 25% MODDING / USER GENERATED $25m 21% CONTENT $20m 28% 9% $15m TIMELESS 75% CONTENT $10m 49% 79% 72% 91% $5m 51% $0m DOWNLOADABLE FY17 FY18 FY19 FY20 H1 21 CONTENT (DLCS) Back Catalogue New Releas
Slide 17: 2021 M&A Review
2021 M&A REVIEW
Slide 18: 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 19: M&A - Execution
M&A - execution We’re Five Games DogHelm $62m Hungry Couch Cash on hand Date: February 2021 Date: June 2021 Type: Acquihire Date: February 2021 Type: Acquihire Type: Acquihire at June 2021 Location: Minnesota, USA Location: Russia Location: Los Angeles, USA Team size: 9 Team size: 11 Team size: 1 Ga
Slide 20: Bad Pixel Acquihire Highlights
Bad Pixel Acquihire Highlights § Bad Pixel, a studio with 7 developers based in Russia § Upfront consideration is $6.5m ($4.9m cash and $1.6m shares) § Total maximum consideration up to $17.1m § Deadside is a hardcore multiplayer shooter with survival elements § The game launched on Steam in early a
Slide 21: Outlook
OUTLOOK
Slide 22: Progress in 2021
PROGRESS IN 2021 § Bad Pixel is the biggest acquihire to date: $3m EBITDA 2020 and $6.5m upfront consideration (total max consideration of up to $17.1m) § Largest pipeline ever with 29 games under development, including 10 new titles signed since the beginning of the year § Launched 6 games plus 3 n
Slide 23: It's All About Great Games
IT’S ALL ABOUT GREAT GAMES Launched Near-launch Cartel Tycoon (Early Hello Engineer (Early Mayhem in Single Undungeon Trash Sailor Access) Access) Valley Action/RPG combat-game and A hand-drawn sailing simulator A survival business sim A puzzler, multiplayer Hello A crazy adventure platformer full f
Slide 24: New Games Recently Announced
NEW GAMES RECENTLY ANNOUNCED Tinykin BookWalker SpiderHeck An innovative 3D puzzle platformer where A thief with an ability to dive into books is A physics-based brawler that’s easy to pick astronaut Milo uses hundreds of tinykin forced to use his powers to track and steal up but difficult to master
Slide 25: Strategy Check
STRATEGY CHECK • Increased pipeline to 29 games (10 signed since the beginning of the year) 01 LEVERAGING EXISTING IP • Secret Neighbor topped iOS charts (2.8m downloads) • Graveyard Keeper DLC (Better Saved Souls) planned for 2021 • 5 acquihires since the beginning of the year • Growing deal size,
Slide 26: Appendix
APPENDIX
Slide 27: 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 DISCOVER pitches research presence Multimedia extend 1,000+ p/a audience Services 2nd party IP marketing, video creative production, QA co
Slide 28: Profit & Loss
PROFIT & LOSS $’m, Unaudited results (30 June) Game & Dev Revenue H1 20 18.1 H1 21 18.4 Commentary Growth 1.5% § Gaming revenues slightly ahead in H1, reflecting Events 0.4 0.3 release schedule skewed to H2 and demanding Growth -39.2% comparables (Totally Reliable Delivery Service Total Revenue 18.5
Slide 29: Cash Flow
CASH FLOW $’m, Unaudited results (30 June) H1 20 H1 21 Cash flows from operating activities (Loss)/profit for the year 1.1 (0.3) Commentary Share-based payments 3.6 2.2 Amortisation of intangible assets 2.6 1.5 § $3.8m adj. operating cash flow generation in H1 Depreciation of tangible fixed assets 0
Slide 30: Balance Sheet
BALANCE SHEET $’m, Unaudited results (30 June) FY 20 H1 21 Trade and other receivables 5.0 7.9 Cash and cash equivalents 26.3 61.6 Commentary Total Current Assets 31.3 69.6 Intangible assets 15.1 21.9 § Net cash position increases to $61.6m cash at 30 Property, plant and equipment: 0.8 0.7 June 2020
Slide 31: Accounting: Amortisation Policies
ACCOUNTING: DEVELOPER AMORTISATION ADVANCE AMORTISATION 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 (2ND & 3RD PARTY) DEVELOPER SALARY AMORTISATION Developer sal
Slide 32: Thank You!
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