Ci Games S.a. · GPW:CIG
Ci Games — Q1 2022 Earnings Presentation
27 slides from Ci Games's earnings presentation, May 25, 2022
Slide 1: CI Games – 25th May, 2022
ci < GAMES \ > 25H May, 2022
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain information set forth in this presentation contains “forward-looking information”, including “future-oriented financial information” and “financial outlook”, under applicable securities laws (collectively referred to herein as forward-looking statements). Except fo
Slide 3: CI Games at a glance
+ Years of IPs Copies sold developing AA+/AAA FPS & RPG Games Locations – Headcount Years avg. experience Poland, Spain, from management UK, US, Romania team 3
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS OUTSTANDING FINANCIAL PERFORMANCE ▪ Strong profitability: Producing healthy EBITDA and net income margins ▪ Future financial performance to be mainly driven by SGW and Lords of the Fallen franchises and Survival Project, the third new IP DISTRIBUTED DEVELOPMENT AND MARKETING AS
Slide 5: Globally Recognized Developer & Publisher of High Quality Video Games
GLOBALLY RECOGNIZED DEVELOPER & PUBLISHER OF HIGH QUALITY VIDEO GAMES FPS & RPG EXPERTISE ▪ Top rated AA+/AAA game developer and publisher ▪ World renowned FPS & RPG game studio, listed on the WSE main market ▪ Self publishes original IPs on all major platforms (Steam, PlayStation, Xbox and Nintendo
Slide 6: Highlights
HIGHLIGHTS STRONG FINANCIAL PERFORMANCE ▪ Our games portfolio continues to deliver strong EBITDA margin at 48.6% and net profit of 31.9% in Q1 2022 ▪ Net revenue of PLN 12.9m in Q1 2022 reflect substantial contributions from our existing games franchise, Sniper Ghost Warrior, together with revenues
Slide 7: Highlights
HIGHLIGHTS CONTINUED DEVELOPMENT OF EXISTING IPs ▪ Lords of the Fallen 2 is currently in full production. The marketing campaign is planned to commence in Q3 2022 ▪ Following the success of Sniper Ghost Warrior Contracts 2, our Warsaw development team is now working on the next installment in the Sn
Slide 8: Seasoned Management Team
SEASONED MANAGEMENT TEAM Marek Tymiński David Broderick Saul Gascon Aitor Rosa Cezar Virtosu Darren Newnham Founder & CEO CFO Executive Producer (LOTF) Executive Producer (SGW) Creative Director (LOTF) CEO, United Label Kenton Fletcher Sam Sadeghi Ryan Hill Rhys Twelves Monika Rumianek Katarzyna Ser
Slide 9: An Internationally Distributed Team
AN INTERNATIONALLY DISTRIBUTED TEAM UK & Ireland David Broderick, CFO Sam Sadeghi, VP Global Sales Key management operates from multiple geographic locations resulting Darren Newnham, CEO United Label in further internationalization of the company Ryan Hill, Marketing Director Rhys Twelves, Technica
Slide 10: International Development Structure
INTERNATIONAL DEVELOPMENT STRUCTURE Attracting international development talent SURVIVE PROJECT Hexworks Underdog Studio CI Games & BatFields Internal team size: 68 people Internal team size: 49 people External Team & CI Key Talent 39 Spain 34 Poland U.K. U.K. 11 Romania 3 U.K Spain Spain 6 U.K. Fra
Slide 11: Sales & Marketing Team
SALES & MARKETING TEAM Building a division with a global reach SALES MARKETING Team Size Team Size 5 People 7 People 2 U.K. 4 U.K. 1 U.S. 1 Poland 2 Poland As of March 31, 2022 11
Slide 12: Headcount by Function
HEADCOUNT BY FUNCTION 10 21 Sales & Marketing Finance & Admin Development LOFT & SGW* 128 As of March 31, 2022. * Includes team of 11 dedicated to Quality Assurance, centralized for all development projects. 12
Slide 13: Q1 2022 Financial Report
ci GAMES Q1 2022 FINANCIAL REPORT
Slide 14: Q1 2022 Financial Highlights
Q1 2022 FINANCIAL HIGHLIGHTS Net Revenue EBITDA Net Profit PLN 12.9m PLN 6.3m PLN 4.1m EBITDA Margin Net Profit Margin 48.6% 31.9% Cash Position EPS PLN 34.6m PLN 0.02 14
Slide 15: Q1 Income Statement
Q1 INCOME STATEMENT PLNm KEY HIGHLIGHTS Q1 ‘22 Q1 ’21 Net revenue from sales 12.9 9.5 • Q1 2022 net revenue totaled PLN 12.9m, with 56% generated by sales of SGWC 2. New releases from United Operating profit 4.2 2.5 Label portfolio accounted for 14% of consolidated sales. EBIT margin (%) 32.5% 26.3%
Slide 16: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW PLNm KEY HIGHLIGHTS ▪ As of 31.03.22 total assets increased by 3.8% which Balance Sheet 31 Mar 2021 31 Dec 2021 was mainly attributable to investment in the games and working capital elements. Cash and cash equivalents 34.6 37.8 Total assets 157.9 152.1 ▪ Intangible assets
Slide 17: Financial Performance
FINANCIAL PERFORMANCE Historicals and FY 2022-2023 Analysts’ Estimates* Summary Financials 2018 2019 2020 2021 2022E* 2023E* Revenue & EBITDA (PLNm) (PLNm) 250 Net Revenue 22.0 47.5 46.0 105.5 52.0 225.0 200 150 Gross Profit 4.7 18.5 19.3 65.9 26.8 119.0 100 50 EBITDA 4.4 20.5 27.8 60.4 30.0 103.0 0
Slide 18: 2022 Roadmap
2022 ROADMAP ▪ Development to continue on next SGW installment and Lords of the Fallen 2 ▪ United Label will continue signing new projects, with the aim to consistently release two to four titles depending on game budget every year going forward ▪ Launching 3rd owned IP in popular genre ▪ Progress s
Slide 19: Appendices
ci GAMES Appendices
Slide 20: 1. Portfolio Update
ci GAMES 1. PORTFOLIO UPDATE
Slide 21: Net Revenue Q1 2022
Net Revenue Q1 2022 SGWC2 56% SGWC 14% SGW 3 10% Tails of Iron 9% Eldest Souls 3% Röki 2% Other 6% 21
Slide 22: Development Schedule
DEVELOPMENT SCHEDULE SURVIVE PROJECT Lords of the Fallen 2 Next installment SGW franchise Third Owned IP 2023 TBA TBA 22
Slide 23: Evergreen Tactical FPS Franchise
Evergreen Tactical FPS Franchise ▪ Self published by CI Games, the SGW franchise now boasts 5 entries and has sold 13M+ units worldwide ▪ It is now the best-selling first person sniping franchise of all time ▪ All four previous installments released before 2021 are fully depreciated, including Snipe
Slide 24: Soulslike Dark Fantasy Action-RPG
Soulslike Dark Fantasy Action-RPG ▪ The full featured sequel to Lords of the Fallen, which was released in 2014, selling over 3 million copies, and played by 10 million players. ▪ Developed by CI Games’ internal studio, Hexworks ▪ Significantly increased AAA production values in dynamically growing
Slide 25: Third Owned IP: Survive
THIRD OWNED IP: SURVIVE WHY SURVIVAL GENRE? ▪ Highly popular genre with broad global appeal. Low-mid risk with high potential reward ▪ Natural expansion of the portfolio, clear audience cross over with SGW and LotF franchises EXTERNAL STUDIO WORKING IN COOPERATION WITH CI GAMES’ KEY TALENT ▪ CI Game
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Slide 27: United Label
UNITED LABEL Ambitious, Analytical, Quality-Driven 91% 84% ▪ Jan 2022 signed for production of new Sci-Fi game game with Chicago based studio. ▪ Tails of Iron, with extended content “Bloody Whiskers“ continues to generate significant revenues in Q1 2022. 78% 80% ▪ OddBug Studios working on their nex