Tinybuild Inc. · LSE:TBLD
Tinybuild — Investor Day (June 2022)
101 slides from Tinybuild's investor day presentation, Jun 7, 2022
Slide 1: Capital Market Day
CAPITAL MARKET DAY 7 June 2022
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: Alex Nichiporchik
PRESENTING Alex Nichiporchik CEO & Founder 19 years' industry experience Pro-gamer, shipped over 20 titles as Producer, discovered pillar titles and built relationships with key influencers. 3
Slide 4: Agenda
AGENDA 2:00pm WELCOME - Alex Nichiporchik 2:05pm CROSS MEDIA - Jon Carnage 2:20pm SOURCING & BD - Michael Schauble & Tom Brien 2:50pm PRODUCTION - Herb Liu 3:05pm DEVELOPMENT & TECH - Jed Steen 3:20pm BREAK 3:35pm MARKETING - Christie Moulding 3:50pm QA & TESTING - Olivia Barcan 4:05pm M&A ORIGINATI
Slide 5: Building a Multi-Media Entertainment Company
BUILDING A MULTI-MEDIA ENTERTAINMENT COMPANY Development Publishing Franchises Cross-Media 5
Slide 6: It's All About Franchises
IT’S ALL ABOUT FRANCHISES 6
Slide 7: Why Franchises? Why Internal Studios? Why Cross-Media?
Why Franchises? Why Internal Studios? Why Cross-Media? 7
Slide 8: Cross Media
CROSS MEDIA Jon Carnage Director of Cross Media
Slide 9: Presenting: Jon Carnage Joyce
PRESENTING Jon “Carnage” Joyce Director of Cross Media Serving as Head of Production for the “Hello Neighbor Cartoon” Jonathan "Jon Carnage" Joyce former Director of Strategic Partnerships at Twitch Studios where he oversaw the creation of Twitch Studios--the company's in-house production studio--or
Slide 10: A Breakfast of Origin
A BREAKFAST OF ORIGIN 10
Slide 11: Humble Beginnings
Humble Beginnings June 2019 April 2022 11
Slide 12: Brought to Life
BROUGHT TO LIFE 12
Slide 13: A Public Pitch
A PUBLIC PITCH HEWONEIGHBpR ANIMATED SERIES N TEST PILOT Hello Neighbor TV Show S01E01:... 13M views + 2 years ago (BD tinyaui y tinyBuildGAMES @ #AnimatedSeries #SecretNeighbor #HelloNeighbor. AY HELO RNEIGHBOR) of CARTOON Hello Neighbor RIES 20M views + 1 year ago ELLO NEIGHBOR Yet moe 2 Animated
Slide 14: Learnings
LEARNINGS Felt Too Young Script Voice Over 14
Slide 15: Characters
CHARACTERS NICKY. TRINITY ENZO SCOUT INVENTOR BAGGER PETERSON
Slide 16: Capturing Canon
CAPTURING CANON Books Fandom 16
Slide 17: Other Inspirations
OTHER INSPIRATIONS 17
Slide 18: In-Game x Cartoon
INGAME X CARTOON In-Game Cartoon 18
Slide 19: Content Sourcing
CONTENT SOURCING Michael Schauble (VP Business Development) Tom Brien (Creative Director)
Slide 20: Portfolio & Biz Dev: A Perfect Match
PORTFOLIO & BIZ DEV: A PERFECT MATCH Michael Schauble Tom Brien VP | Business Development Creative Director | Co-Founder Michael has over 16 years’ business Tom was a solo game developer at the development experience in Games. founding of tinyBuild in 2011 and worked on our first few releases hands-o
Slide 21: The Funnel
THE FUNNEL DISCOVER PLAY ENGAGE PROPOSE CLOSE ORGANIC SUBMISSIONS GAME SCOUTING AGENTS PORTFOLIO TEAM DUE DILIGENCE NEGOTIATE WIN! TRADESHOWS SOCIAL PRESENCE 21
Slide 22: Portfolio Team: Play
PLAY DISCOVER PLAY ENGAGE PROPOSE CLOSE PORTFOLIO TEAM: • MANAGED PROCESS • CONTROLLED SPEED • DIVERSITY • PRODUCT CHAMPIONS 22
Slide 23: Partnership First: Engage
ENGAGE DISCOVER PLAY ENGAGE PROPOSE CLOSE PARTNERSHIP FIRST: • PROPER DUE DILIGENCE • UNCOVER DEVELOPER NEEDS • UNDERSTAND DEVELOPER STORY • TAKE A PERSONAL APPROACH • ALIGN & CONFIRM 23
Slide 24: Let's Make a Deal!
LET’S MAKE A DEAL! DISCOVER PLAY ENGAGE PROPOSE CLOSE INTERNAL BUY-IN SET TERMS TAILOR TO DEV WIN! 24
Slide 25: Many Avenues to Success
MANY AVENUES TO SUCCESS • ALIGNMENT TO PLATFORM INITIATIVES • ORGANIC TRACTION • ADDITIVE TO EXISTING AUDIENCE? • INNOVATION DIVERSIFY PORTFOLIO EXPERIENCES AND BRAND IDENTITY 25
Slide 26: Industry Veterans Trust Us!
PORTFOLIO GROWTH INDUSTRY VETERANS TRUST US! BRAND RECOGNITION CONTROLLED GROWTH REPUTATION • PROVEN FRANCHISES • 11 YEARS! • DEVELOPER FOCUSED • ESTABLISHED FAN BASE • INCREASED CAPITAL • GREAT DEV STORIES • AMPLIFY DEV REACH • EARLY INVESTMENTS IN • EMPATHY & GRACE SOCIAL MEDIA • FEARLESS & INFORM
Slide 27: Proven vs Undiscovered Studios
PROVEN VS UNDISCOVERED STUDIOS CREATIVELY DRIVEN FIRST IN GENRE BRAND PILLAR HISTORY OF INNOVATION BEST IN CLASS SUPER-FAN BASE 27
Slide 28: Empowering Developers
EMPOWERING DEVELOPERS WHY DEVELOPERS LOOK FOR PUBLISHERS: DEVELOPERS ARE FOCUSED ON CRAFTING INCREDIBLE EXPERIENCES, AND IN MOST CASES, DON’T HAVE THE KNOWLEDGE OR RESOURCES TO LAUNCH A COMMERCIALLY SUCCESSFUL PRODUCT. ENABLE AND EMPOWER: BY ALLOWING DEVELOPERS TO FOCUS ON WHAT THEY DO BEST AND EXEC
Slide 29: Growing Partnerships
GROWING PARTNERSHIPS RELATIONSHIP: OPPORTUNITY: • UNIQUE PERSPECTIVE • FUNDING • EARLY TO ADOPT • MARKETING • PROVEN VALUE • MANAGED PARTNERSHIP • DEVELOPER ADVOCATE • KEY ANNOUNCEMENTS RELATIONSHIP = OPPORTUNITY DEVELOPER INTRODUCTIONS: CREDIBILITY: • PLATFORM APPROVED DEV • OVER DELIVER • FIRST LO
Slide 30: What Does a Game Producer Do?
WHAT DOES A GAME PRODUCER DO? Herb Liu Executive Producer
Slide 31: Presenting: Herb Liu
PRESENTING Herb Liu Executive Producer Stanford Economics Finance Startups, Trading, Teaching Bossa Studios Mediatonic tinyBuild 31
Slide 32: What Makes a Good Producer?
WHAT MAKES A GOOD PRODUCER? FIND THE MAINTAIN VISION PERSPECTIVE KNOW THE PRODUCT & THE MARKET ITERATE BUILD THE GAME LOOPS 32
Slide 33: Find the Vision
FIND THE VISION • One game can’t be everything • What’s the magic? • Example: Totally Reliable Delivery Service 33
Slide 34: Build the Game Loops
BUILD THE GAME LOOPS OUTER GAME LOOP CORE GAME • Start with the magic LOOP • Build a game around the magic • Example: Potion Craft INNER GAME LOOP 34
Slide 35: Iterate Through Data
ITERATE THROUGH DATA Build Test • Playtest • Iterate • Validate Plan
Slide 36: Maintain Perspective
MAINTAIN PERSPECTIVE • See the big picture • What would have the biggest impact? • Adapt to market trends
Slide 37: Know the Product and the Market
KNOW THE PRODUCT AND THE MARKET 37
Slide 38: Producers at tinyBuild
PRODUCERS AT TINYBUILD • Guide the dev studios • Drive them to execute • Get out of their way!
Slide 39: Internal Studio Showcase
INTERNAL STUDIO SHOWCASE Jed “HakJak” Steen Managing Director @ HakJak Studios
Slide 40: Presenting: Jed HakJak Steen
PRESENTING Jed “HakJak” Steen Managing Director @ HakJak Nerd Artist Programmer Narrative Designer Marketing Major Business Analyst Military Veteran Coffee Connoisseur (I love tea too!) 40
Slide 41: Guts & Glory: First Game
GUTS & GLORY: First Game Other Publis hers 41
Slide 42: Pigeon Sim: 2nd Game
PIGEON SIM: 2nd Game Reclaim the world and create a Pigeon Paradise, while living your best bird life! 42
Slide 43: Lovely Cast Characters
LOVELY CAST CHARACTERS Not just about pigeons… 43
Slide 44: Strong Characters for Strong IP
STRONG CHARACTERS FOR STRONG IP Watch out, it’s the Pigeon Patrol! 44
Slide 45: Storymods
STORYMODS J It’s like writing ascreenplay AND THEN WATCHING THE MOVIE MAKE ITSELF!
Slide 46: Toys: Gotta Collect 'Em All!
TOYS: GOTTA COLLECT “EM ALL! A big appeal of games in this genre is collecting and experimenting with a large variety of items or powerups. Even more so if they interact with each other and create “emergent gameplay”. INFINITE POWER-UPS! 46
Slide 47: The Sandbox - Procedural Generation
THE SANDBOX - PROCEDURAL GENERATION ▪ Huge variety of locations ▪ Every location is unique ▪ Every space is explorable! 47
Slide 48: The Sandbox - Procedural Destruction
THE SANDBOX - PROCEDURAL DESTRUCTION ▪ Highly interactable ▪ Highly immersive ▪ Destroy anything! 48
Slide 49: Just Being a Pigeon…
JUST BEING A PIGEON… We’ve worked diligently to create a one-of-a-kind character controller and story system that will allow even novice gamers to jump right in and experience the joys of flight and the freedom of being a bird—not a care in the world. 49
Slide 50: Summary
SUMMARY ● Apply timeless business principles ● Use modern analytics practices ● Employ proven product development methods ● “Smart Tools” & “Emergent Gameplay” design ● Implement a research-driven marketing plan Feature Trends 50
Slide 51: Marketing: tinyBuild, Big Ideas
Marketing: tinyBuild, Christie Moulding - Brand Manager Big Ideas
Slide 52: Presenting: Christie Moulding
PRESENTING Christie Brand Manager 5+ years experience in Video Game Brand Management My career started as a psychiatric nurse, where I brought my passion for gaming to publish research on Video Game use and Adolescent Conduct Disorder. From here I joined the marketing team at Team17 for four years a
Slide 53: tinyBuild's Approach to Marketing
TINYBUILDS APPROACH TO MARKETING FOUNDATIONS • CONSCIOUSNESS • COLLABORATION • CREATIVITY • COMMUNICATION 53
Slide 54: A games campaign should be infused with fun
A games campaign should be infused with as much fun, joy and wonder, as the game itself. 54
Slide 55: Consciousness: Where Do Our Campaigns Begin?
CONSCIOUSNESS: WHERE DO OUR CAMPAIGNS BEGIN? 55
Slide 56: Communication: Working With Our Audience
COMMUNICATION: WORKING WITH OUR AUDIENCE 56
Slide 57: Creativity: How Do We Make Campaigns Special?
CREATIVITY: HOW DO WE MAKE OUR CAMPAIGNS SPECIAL? 57
Slide 58: Collaboration: Working With the Games Industry
COLLABORATION: WORKING WITH THE GAMES INDUSTRY Over 1 million Minutes Watched on Twitch YouTube Coverage from Markiplier, Syke and Kuplinov Press Coverage from PC Gamer, RPS and Fanatical 58
Slide 59: Potion Craft
Potion Craft is in Early Access, sold over 600k units and is the most Wishlisted game in our portfolio leading up to 1.0 launch 59
Slide 60: Quality Assurance and Testing
QUALITY ASSURANCE AND TESTING OLIVIA BARCAN - QA SPECIALIST
Slide 61: Presenting: Olivia Barcan
PRESENTING Olivia Barcan QA Specialist 10+ years experience in QA Started as an entry level QA Tester in Ubisoft Bucharest, then moved on to VR and mobile games. Acquired knowledge of QA processes, Game Design, Level Design, Video Game Production and Video Game Development. 61
Slide 62: About QA
ABOUT QA Quality Assurance is the crucial phase any title goes through during the game’s development life cycle. The QA teams define test checklists specific for each title that are followed during tests to make sure the game is according to the design. 62
Slide 63: About QA
ABOUT QA During the QA phase, the title also goes through Compliance checks to ensure it adheres to the platform manufacturers’ requirements 63
Slide 64: QA + Developers
QA + DEVELOPERS = QA Testers ensure that the end product is bug-free and user-friendly. 64
Slide 65: QA Specialist @ tinyBuild
QA SPECIALIST @ tinyBuild Verified compatibility for almost the entire tinyBuild games library on the Steam Deck 65
Slide 66: QA Specialist @ tinyBuild
QA SPECIALIST @ tinyBuild Played several titles from the early Alpha stages and sent feedback to the developers/producers ● Justice Sucks ● Tinykin ● Spiderheck ● Asterigos ● Other unannounced titles 66
Slide 67: Graveyard Keeper - Case Study
GRAVEYARD KEEPER - CASE STUDY Graveyard Keeper is a graveyard-themed management simulation game developed by Lazy Bear and released in 2018. The game’s main goal is to activate a portal and return to your beloved. 67
Slide 68: Graveyard Keeper - Case Study
GRAVEYARD KEEPER - CASE STUDY One of my favourite games, in which I have spent over 160 hours building and upgrading my graveyard. 68
Slide 69: Bug Examples - Console Porting Issues
BUG EXAMPLES - CONSOLE PORTING ISSUES 69
Slide 70: Bug Examples - Console Porting Issues
BUG EXAMPLES - CONSOLE PORTING ISSUES 70
Slide 71: I Found an Exploit!
I FOUND AN EXPLOIT! EXPLOIT IS THE USE OF A CODE GLITCH/BUG IN THE PLAYER’S ADVANTAGE, IN A MANNER PLAY THIS VIDEO HERE: THAT WAS NEVER INTENDED BY THE GAME DEVELOPERS. GRAVEYARD KEEPER_VIDEOS 71
Slide 72: M&A - From Inception To Arrival
M&A - From Inception Giasone (Jaz) Salati - Head of M&A To Arrival
Slide 73: Presenting: Giasone (Jaz) Salati
PRESENTING Giasone (Jaz) Salati Head of M&A 20+ years’ finance experience. Top ranked equity research analyst, and Chief Innovation Officer for tech and media companies. Jaz read economics at La Sorbonne, holds a master in Finance from LBS and is currently studying Data Science. 73
Slide 74: Where We Start
WHERE WE START DATA • Responsive NETWORK • Dynamic • Proactive AGENT * employees and independent contractors 74
Slide 75: Communication
COMMUNICATION tinyBuild Founders Communication cycle • Learn • Listen • Plan Third parties
Slide 76: The Next Level
THE NEXT LEVEL • Go-to-market • Franchise • Multimedia
Slide 77: Portfolio Fit
PORTFOLIO FIT • Genre • Geography • Business model
Slide 78: Breakdown by Genre
BREAKDOWN BY GENRE Steam revenues aggregated by game user tags (2017-21) • 15 different genres • Pixel graphics 16% (top) • Horror only 11% Source: Steam 78
Slide 79: Cultural Fit
CULTURAL FIT • AMBITION • INNOVATION • HORIZON
Slide 80: Deal Structure
DEAL STRUCTURE • Align incentives • De-risk • Shared upside
Slide 81: Deal Structure (follows)
DEAL STRUCTURE (follows) Cash and shares as % of max consideration (pre and post IPO) 5 DEALS OF DIFFERENT SIZE IN 2021, BUT SIMILAR STRUCTURE Cash and shares as % of max consideration (2021 M&A) Post-IPO pre-IPO 59% SHARES AS % OF MAX CONSIDERATION 81
Slide 82: Pipeline
PIPELINE • DIVERSIFY • REDUCE EXTERNALITIES • OPTIONALITY
Slide 83: The Role of the CFO
THE ROLE OF THE CFO Tony Assenza Chief Financial Officer
Slide 84: Presenting: Tony Assenza
PRESENTING Tony Assenza Chief Financial Officer 13 years’ Finance experience. 5+ years’ Senior Leadership experience Created the accounting and financial infrastructure of tinyBuild as well as the global legal business and HR structure to help support the company’s growth in parallel to completing mu
Slide 85: If We Can't Talk About Numbers…
IF WE CAN’T TALK ABOUT NUMBERS…. FINANCIAL MODEL DE-RISKING FINANCIAL TRANSPARENCY WITH DEVELOPERS FINANCIAL TRANSPARENCY WITH SUBSIDIARIES CHALLENGES AND PROCESS IN ORGANIC GLOBAL EXPANSION DECENTRALIZATION OF SUBSIDIARIES 85
Slide 86: Revenue Diversification
Portfolio games Portfolio Games Development Contracts Xbox Xbox Licensing Contracts Revenue Diversification PlayStation Portfolio Games PlayStation Minimum Guarantee Agreements Nintendo Single Game and Steam Platform Steam QA Apple Apple Localization Single Platform Google Google Porting Epic, Ext...
Slide 87: Are We Satisfied Yet?
ARE WE SATISFIED YET? Video Games Cross Media 87
Slide 88: Well What About the Expenses?
WELL WHAT ABOUT THE EXPENSES? The top two expensive expenses are: ROYALTIES LABOR (OPERATIONALLY AND COGS) 88
Slide 89: IP and Royalties
IP AND ROYALTIES 100% 90% 80% 70% 60% sox 40% 30% 20% 10% 0% 100% IP and % of Total Gaming Revenues 30% Revenue and Royalties 60.0 50.0 40.0 2017 2018 2019 2020 2021 30.0 Owned IP mNon-Owned IP . 20.0 Top Ten Game Revenue as a % of IP Ownership 10.0 —__—_ 0.0 2017 2018 Gaming Revenue 2019 Royalty Ex
Slide 90: Setting Up a New Studio/Hub
SETTING UP A NEW STUDIO/HUB Identifying Locations ■ Targeted Skill ■ Targeted Region ■ Economic Factors ■ Global Social Economic Factors ■ Social Cultural Factors ■ Barriers of Entry ■ Government Benefits (if applicable) 90
Slide 91: Once a Location Is Selected
ONCE A LOCATION IS SELECTED Due Diligence ■ Local laws Research ■ Local Law Firm meetings ■ Accounting Firm meetings ■ In person due diligence Phase 2 ■ Select Law Firm and Accounting Firm ■ Register Business and applicable licenses ■ Select Office ■ Open Bank Account Expanding ■ Hire local talent ■
Slide 92: Decentralization
DECENTRALIZATION Subsidiary Contract/Legal HR Accounting Finance Subsidiary Subsidiary Co ntr Ac ac e co t/L nc un eg a tin g al Fin R H i n g l Fin HR un t o t/L e g a an c ce Ac trac o n C Con t ra c t /L e g al H i n R a nce tinyBuild Contract/Lega l HR Accounting Finance F Subsidiary Accounting
Slide 93: Strategy
STRATEGY Alex Nichiporchik (CEO, Founder)
Slide 94: Presenting: Alex Nichiporchik
PRESENTING Alex Nichiporchik CEO & Founder 19 years' industry experience Pro-gamer, shipped over 20 titles as Producer, discovered pillar titles and built relationships with key influencers. 94
Slide 95: Growing Yet Agile
GROWING YET AGILE • Organic • M&A • Internal New Studios * employees and independent contractors 95
Slide 96: Culture of Respect
CULTURE OF RESPECT • Global • Entrepreneurial • Flexible * employees and independent contractors 96
Slide 97: Evolving Organisation
EVOLVING ORGANISATION • Function • Product • Decentralisation
Slide 98: Evolving Market
EVOLVING MARKET • Subscriptions • Game as a Service • Free To Play * employees and independent contractors 98
Slide 99: Disruptive Tech vs Hype
DISRUPTIVE TECH VS HYPE • VR • Streaming • User Generated Content * employees and independent contractors 99
Slide 100: Clear Strategy
CLEAR STRATEGY Development Publishing Franchises Cross-Media 100
Slide 101: Q&A
Q&A