Tinybuild Inc. · LSE:TBLD
Tinybuild — FY2020 Earnings Presentation
28 slides from Tinybuild's earnings presentation, Jun 8, 2021
Slide 1: FY 2020 Results presentation
FY 2020 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: Disclaimer
DISCLAIMER The Presentation is provided for general information only and does not purport to contain all the information that may be required to evaluate the Company. The information in the Presentation is provided as at the date of the Presentation (unless stated otherwise) and is subject to updati
Slide 4: Agenda
Agenda 2020 - Operational review (Alex Nichiporchik, CEO) 2020 - Financial review (Tony Assenza, CFO) 2021 - Update and Outlook (Alex Nichiprochik, CEO) Appendix 4 Strictly Confidential
Slide 5: 2020 - Operational Review
2020 - OPERATIONAL REVIEW
Slide 6: tinyBuild DNA
tinyBuild DNA Indie IP Multimedia Own IP Developers Franchising strategy Video games led Concentrating on Started as indie Focused shift to IP branching out into long-term IP developers ownership books, comics, TV & monetisation film Unique Diverse Long-term Innovative Defined Perspective Portfolio
Slide 7: FY20 Operating highlights
FY20 Operating highlights 35% revenue growth 99% Adj. EBITDA growth 5 new games released 75% of sales from back 70% of sales from Own-IP 3 acquihires closed catalogue 7 Strictly Confidential
Slide 8: Diversified portfolio, focused on own IP games
Diversified portfolio, focused on own IP 40 games catalogue at the end of 2020, creating a diverse revenue mix FY 20 FY 17 70% of 2020 gaming revenue from IP owned by tinyBuild *Excluding contributions from games in the Hello Neighbor franchise ** Excluding merchandise revenue 8 Strictly Confidentia
Slide 9: Quality of back catalogue underpins growth
Quality of back catalogue underpins growth Back catalogue as a % of gaming revenue* Social momentum Modding / user generated content Timeless content Downloadable content (DLCs) Back catalogue is defined as any games released in the prior financial year and before * Excludes Development Revenue and
Slide 10: Bringing resource inhouse through acquihires (2020)
Bringing resource inhouse through acquihires (2020) HakJak Productions • Date: April 2020 • Type: Acquihire • Location: Idaho, USA • Team size: 1 grown to 5 • Games: Guts and Glory, Pigeon Simulator Hologryph • Date: October 2020 • Type: Acquihire • Location: Ukraine • Team size: 4 grown to 10 MoonM
Slide 11: 2020 - Financial Review
2020 - FINANCIAL REVIEW
Slide 12: FY20 Financial highlights
FY20 Financial highligths Net Game Revenues1 Adj. EBITDA2 Operating Cash Flow ● Net game revenue increase due ● Margin increase is sustainable ● Positive free cash flow provides to success of game releases and and driven by both the shift to IP scope for organic investments greater share of revenue
Slide 13: Profit & loss
Profit & loss FY 19 FY20 $’m, Audited results (31 Dec Y/E) Commentary Game & Dev Revenue 26.827 36.839 ● 37% gaming and development revenue Growth 12.8% 37% growth in 2020 (2019: 13%) Events 1.144 0.809 ● Events (e.g. DevGAMM) saw 29% decline Growth 7.4% -29% in revenues as a result of the pandemic
Slide 14: Cash flow
Cash flow $’m, Audited results (31 Dec Y/E) FY 19 FY20 Commentary Cash flows from operating activities Profit for the year - 4.505 4.948 ● Cash from operations increased by 46% in Adjustments for: - - 2020 to $16.5m Share-based payments 9.962 5.845 Amortisation of other intangible assets 2.493 4.338
Slide 15: Balance sheet
Balance sheet $’m, Audited results (31 Dec Y/E) FY 19 FY20 Trade Receivables 3.195 4.431 Commentary Prepaid Expenses 0.505 0.568 ● Net cash position increases to $26.3m cash Cash 17.009 26.313 at 31 December 2020 (was $17m at the end Total Current Assets 20.710 31.312 of 2019) Intellectual Property
Slide 16: 2021 Update and Outlook
2021 UPDATE AND OUTLOOK
Slide 17: It's all about great games
It’s all about great games Launched Cartel Tycoon (Early Access) Mayhem in Single Valley A crazy adventure platformer full of plot twists, A survival business sim inspired by the physics puzzles, and radioactive squirrels '80s narco trade Near-launch Trash Sailor Black Skylands A hand-drawn sailing
Slide 18: Hello Engineer and Hello Neighbor 2
Hello Engineer and Hello Neighbor 2 Hello Neighbor 60M + 40M + 4.5Bn+ Animated TV series in franchise stats… downloads views of the Animated TV Pilot* YouTube views long-term pipeline Cumulative Revenue to Dec. 2020** Social, Puzzler GAMES 3 released 2 pipeline Sandbox GaaS Linear Chapter based Line
Slide 19: Growth strategy
Growth strategy 01 LEVERAGING EXISTING IP 02 ACQUISITIONS Current Expand New Additional pipeline of acquired Intellectual service providers 23 games studios Property Maintain low Capitalise on cost, high influencer Development Other reward model relationships studios complementary opportunities 03 F
Slide 20: Execution of M&A strategy post-period end (2021)
Execution of M&A strategy post-period end (2021) We’re Five Games • Date: February 2021 • Type: Acquihire • Location: Minnesota, USA • Team size: 9 • Games: Totally Reliable Delivery Service Hungry Couch • Date: February 2021 • Type: Acquihire • Location: Russia • Team size: 11 • Games: Black Skylan
Slide 21: Nick van Dyk joins the Board
Nick van Dyk joins the Board Experienced management team with a track record of success Alex Nichiporchik Luke Burtis Michael Schauble Tony Assenza Chief Executive Officer & Chief Operating Officer & Vice President – Business Chief Financial Officer Founder Founder Development 16 years’ BD experienc
Slide 22: tinyBuild
tinyBuild …creating …across Global …focused on long term multiple developer IP ownership… scalable media publisher… franchises… formats
Slide 23: Appendix
HELO ENGINEER
Slide 24: Brief history of tinyBuild
Brief history of tinyBuild 2013 - 2015 2016 - 2018 2019 2020 2021 & beyond… Acqui-hired Acquihired… No Time Transitioned … Secret to Explain to 2nd Party IP Neighbor released & AA games launch 63 Acquihired Invested in Dynamic Highlights Founder Pine Events Pixels owned & DevGamm 40 35 Top brand in
Slide 25: A thorough, yet agile, selection process
An 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 &
Slide 26: Accounting: amortisation policies
Accounting: amortisation policies Developer advance 2nd and 3rd party developer advances are capitalised on payment and recognised on the P&L in line amortisation with revenue until the capitalised development advances are fully amortised (2nd & 3rd party) Developer salary Developer salary costs are
Slide 27: Q&A
Q&A
Slide 28: Thank you
Thank you