Enad Global 7 AB (publ)

Good morning, and thank you for tuning in to this live Q4 earnings report presentation with EG7. My name is Petra Bergman, and I'm your moderator today. With us from the US, we have Acting CEO, Gee Ham, and from Stockholm, Deputy CEO and Chief Financial Officer, Fredrik Rydén. I'm going to hand it over to you, G, shortly, and then I'll be back after the presentation to moderate the Q&A session. If you have any questions for G during this presentation, you can email them to the investor relations inbox by clicking on the email icon, and I'll get to as many of them as possible afterwards.

So with no further ado, please go ahead, G.

Thank you, Petra. Good morning. Thank you for joining. We'll start with a summary overview of EG7. First slide, please. EG7 is an emerging global gaming group. We currently operate 22 live service games, including some of the most iconic classic MMOs. Our live service games are the core foundation for EG7, providing stable, recurring, and long life cash flows. Our live games are based on some of the most iconic IPs, a combination of nine owned and third-party IPs. Owned IPs include Everclass, H1Z1, My Singing Monster, and PlanetSide. And some of the premier third-party IPs include most recognized global brands such as Lord of the Rings, DC Comics, and Magic the Gathering, among others. These IPs provide our products with key differentiations. Additionally, we currently have a very compelling pipeline of new projects. We have 10 products under development, two titles on track were released in 2022, two major updates for existing live games for 2023, and six new titles under development for release thereafter. Organizationally, we have strong presence across all our major markets, 16 offices, 880 employees across North America, Western, and Eastern Europe. Next slide, please. Excuse me. We're very excited to report our best quarter yet. We ended the year with very strong momentum, results exceeding our guidance for both net revenues and adjusted EBITDA. Net revenues for the quarter came in at 573 million. that represents 193% growth year over year and 28% organic growth. Adjusted EBITDA of 118 million with 21% margin. Operating cash flow of 103 million representing a very strong cash conversion. For the full year, we achieved 1.67 billion SEC of net revenues and 397 million SEC of adjusted EBITDA. Additionally, beyond the strong operating performance, we also deliver a great M&A transaction with the acquisition of magical gathering online deal. Next slide, please. So this is the Magic Online transaction that we successfully closed in the middle of January. Magic Online is a great addition to our portfolio. It's an online version of Magic the Gathering, the number one trading card game in the world with over 50 million player base. The transaction structure was very unique and highly compelling. We hired the development team from Wizards of the Coast. It is immediately accretive as we're taking on a live service game with ongoing revenues and profits. the deal was structured as an app we hire slash license deal there's no upfront purchase consideration we'll be paying wizards market royalties for magic license over the term as the only consideration and this type of deal sounds very compelling and also almost too good to be true. But we have similar precedent with deals like Lord of the Rings Online and Dungeons and Dragons Online, both of which were acquired in a very similar structure. And these games contributed over 1 billion sec of revenues for Daybreak since 2017 when they were acquired. And we expect similar great outcome for Magic Online as well going forward. For 2022, we expect net revenues of 90 to 100 million in SEC and game level EBITDA of 25 to 30 million in SEC, and we'll be investing and upgrading the product with the goal of meaningfully growing the revenue similar to what we're able to achieve with low-choice DDO. Next slide, please. Frederick Rudin, our CFO, will now present more details of our fourth quarter performance. Frederick.