Enad Global 7 AB (publ)

Hello everyone and welcome to this Q1 presentation with EG7. With us today we have CEO and co-founder Robin Flodin who will go over that report and I will come back afterwards for the Q&A session. So over to you Robin.

Thank you very much. And I also want to welcome all of the investors and also all of the gamers that I know is always watching. I know that you're always very excited about game announcements, but I want to remind everyone who's a gamer that those will come through our gaming channels. But you're very welcome to sit in and listen to the strategy of the company. So let's get into it. This is the best quarter in EG7's history and I'm extremely proud of the team's performance to be able to deliver this. We've had 100% increase in revenue from last year's quarter one and 500% increase in profit EBTA level since quarter one. We also closed a 1.1 billion transaction in Nova Games, which is really furthering our strategy. And we're also looking at growth throughout the year, both for Q2 and throughout the year. So I cannot say that I can be more excited than I am right now. The vision that I created back in the day when we were just starting out is coming true and we are really setting up ourselves for the future. ED7 as a company is an ecosystem for video games companies. We have three major ways that we generate our revenue. These ways are through our world-class IP portfolio of live and premium titles, where most of it is generated 80% from live titles. These are games that are constantly out there being updated and consumers are spending in them every day. This creates a really solid rock for our company to be able to grow in the future. It's a baseline and it's a growing baseline. With Innova we also added our own platform, which we're going to talk more about, but it's a very exciting combination with all of the live games that we have. And then also, of course, our world-class service platform. Something unique to us where we created a way where we really thought about what are the pieces needed for a video games company to be the most successful it can with all of the pieces sitting together as an M&A strategy, as a buy and build. How are we actually giving these companies coming into the group a bigger reason to be part of us? rather than just sitting and having a bunch of assets. These are about how these assets become stronger together. We're also very happy to see that on a rolling basis, on annual, it's 2 billion in revenue from the company and 600 million in EVTA. If we look back a little bit quickly, we can see in 2015 we were a small consultancy studio. And in 2017, we listed the company with a vision, an idea, and from that day and 11 million in revenue, we've been growing massively. Over three years, we've had over 300% CAGR in the company, both through our very aggressive M&A agenda, but also through organic growth. And we've now created a really strong company in the video games industry that is set up for further growth with strong IPs, with a platform and with our world-class services. And once again, I just want to stress, I cannot be more proud of the team that I have behind me and all the people that are working so hard to have made this possible. So if we look at the actual numbers, Doubling the revenue since Q1 last year. 500% in profit increase from last year. And we are growing still. And you can also see that just as we've been telling investors, our margins are significantly increasing. And this is something that you can expect going into the future as well. Something that we've always said, and I think that this is important, things being consistent about your strategy and executing on that, it's always been that we want to control the value chain. We think that this is crucial to have our high margins, to be able to actually supply our IP and the way that IP is interacting with the gamers, that we control the full value chain. And Innova is really a testament to one piece in this continuously building puzzle of how we are putting all of this together. And we think that now we've really established our way all the way through that we can sell through to the consumer and control it all the way there. And we think that you're going to see all of the upside from that as we go forward in time. Today, the company has an IP portfolio of live games on world class. Both some of the best licensed IP in the world, like Lord of the Rings, or as we can see with our own games like EverQuest, which has generated a billion dollars in revenue and has an amazing amount of fans, or H1Z1, which everyone always are so excited about what we're going to do with in the future. Today, 50% of our revenue on a performer basis, including Innova and Burana, is coming from these live games. Reoccurring revenue, stable and growing. And then with Innova added, we can also see, which is also coming from live games directly from consumers, diversified between 13 different games, we have 16% of our revenue coming from there. And then our world-class service platform with 22% of the revenue. And here, I think a lot of investors usually ask me, do you see that this segment will significantly grow? And I always said from the beginning, when this segment was quite large part of our revenue, no, I think that the gaming segment will outperform in terms of growth. But it is very much because we have this segment that we can then outperform even more than what could be normally expected. And I think that that's very key, but you should still expect that we could add more things into our service platform if we believe that this will further grow the company. But you're going to see the growth coming mostly from our platform and from our live games. ED7 is a global company and this was a core mission from the beginning. Games are global. And they're becoming more and more global for every day. So also having a company that is truly global has always been our strategy. And we keep thinking this way. And you're going to see more acquisitions on a global scale, games that are launched globally, and fans all over the world. And already today, that's true. And I'm super happy to say that even in Antarctica, we have players live right now. Incentive structures is a key element of how to work together and achieve success. That's why I'm super happy to say that today in the company, board and management hold 51% of the company. We are very much aligned. So let's talk about the growth. So I've told you that we have stable revenue, we have growing stable revenue. Something that can be predictable, something that is a really strong base for investing in games and doing more things, IPs that we can do expansions and sequels to. But how are we growing? How are we significantly growing into the future? And here we see four different things. We are going to put our games on the four-game platform. This will make sure that the gamers can come into one place and this means that they will spread out and we know that this creates revenue increase on the different games. We will expand geographically as there are several of our live titles right now and the platform that has not been utilized on this geographic location. And we see this as a low hanging fruit and a great short term expansion of revenue and profits. And then, of course, very importantly, expanding the games and new titles. And then last but not least, we're going to continue our very successful M&A strategy. So if we look a little bit about 4GAME, so why do we think that this is a really interesting approach? Well, with 4GAME, of course, we get better margins. We are on our own platform. And today we have many of our games on our own platform, but they're all spread out in different places. So gamers have to go to many different places to achieve this. What we see is that there's a revenue uplift in the 4GAME platform for every new game launched around all the other games. Because consumers see new games and they want to go in and try them. And they have one way to interact. And this improved way for us to funnel and channel marketing and everything that we do into one place will increase the revenue and performance of all the games together. But then, of course, it's also where this platform started. So 4GAME has the licenses for this IP that it does in the European CIS territories. But what was the biggest reason? Why didn't it grow before? Well, it didn't have the IP rights to be global. But today we have some great IP we can decide. So now there's nothing limiting us for growing the platform globally. And this is going to be also something very interesting. And then we will look at the games. So already today, we have several initiatives started that are expanding the current live games in different ways. It's new expansions, new content, updating to the modern standards, the new platforms, and giving gamers something that they really want. And then of course, it's also our new titles. And in the new title segment, we also want to say we have a new MMO in the works. It's AAA MMO and one of the greatest brands in the world. And then of course, our M&A. We've done eight different companies throughout the three-year span. It's about two to three companies a year. And I think that this is very important when you look at our strategy. We are very fast running and aggressive when it comes to M&A, but we only select the things that fit in our strategy. We are very active with the companies, we integrate the companies and this requires time and consolidation. But it also has a future-proof upside where these companies actually fit together into this group. And this is part of our core philosophy, our strategy and the way we operate. you're going to expect us to see more M&A for sure. But these are going to be the companies that we've truly selected and chosen to be the right ones. And this is something that I full-heartedly believe is going to be what leads EG7 to stand out in the marketplace in terms of how we do M&A. So why should you invest in EG7? Well, I want to say that first of all, there's many people who have started trying to do similar things to us. After we were first with coming up with our service platform combined with the video game space and the way that we do it, many others who also want to do an ecosystem for games. but we've already applied this strategy for several years now. And we are winning many engagements in terms of M&A with lower prices paid because people want to be part of EG7 and our strategy, because we're selective, because we don't pick up every company that comes along that we could have acquired. So these are very important parts, but we are also based on high IP, some of the best IP in the world, Diversified, solid revenues, high margins, and we have upside option potential going into the future. I think that there are a few companies that have all of these characteristics that you can look at in the gaming industry. And we have been the best performing in terms of growth video game company on the stock market for the last three years. Thank you very much.

Great. Thank you, Robin. And congratulations on a strong quarter. If you would like to pick just one or two highlights from the report, what would that be?