Enad Global 7 AB (publ)

Good morning, everyone, and welcome to EG7's second quarter earnings call. My name is Robin Lundell, and I will be your moderator during this call. With us today, we have Ji Ham, CEO, and Fredrik Rudum, Deputy CEO and CFO, who will guide you through our Q2 earnings release. We will round up this presentation with a Q&A session, and if you have any questions, you can email them to the investor relations email. With this, I hand it over to Ji.

Thanks, Robin. Good morning and thank you all for joining us this morning. We will start with the highlights for the quarter and some updates or releases coming up for Q3 as well. And then Frederick will go through detailed discussion relating to financial performance for the quarter. Then, as Robin mentioned, we'll go through the Q&A session. So let's start with the numbers. Next slide, please. For the second quarter, net revenue came in at 475 million yen sec, which is 25% higher from last year, 30% growth in constant currency, adjusted EBITDA at 99 million yen sec compared to 37.5 million yen sec last year. The margin improved up to 21% by 1,100 basis points from 10% last year. Net profit came in at 42 million SEC and EPS at 52 cents SEC. Operating cash flow was 120 million SEC. This number does include working capital benefit at Fireshine for developer royalties that have to be paid in the third quarter. So if we exclude working capital movement, we're looking at operating cash flow of 94 million SEC. Next slide, please. Every business unit for this quarter grew adjusted EBITDA from last year, fire shine with net revenues coming in at 160 million SEC. That's 127% local currency. Adjusted EBITDA came in at 53 million SEC compared to 3 million SEC last year. FarFarWest was the key driver for Fireshine, sold over 1 million units in the first couple weeks of release. Early access PC title on Steam, and players are really enjoying and loving the game. It's currently sitting at 96% overwhelmingly positive rating on Steam, which is amazing. And we expect FarFarWest to be a nice contributor beyond 2026 as well, as the current plan is 1.0 release on PC and all the consoles planned for 2027. That catalog sales also contributed nicely for Fireshine, led by CoreKeeper. For BigBlueBubble, their revenue came in at 71 million SEC. That's 21% higher compared to last year in local currency. That represents growth for BigBlueBubble for the first time in five quarters, which is nice to see BigBlueBubble trending back up, growing from year over year. Just the EBITDA came in at 35 million SEC at 50% margin. The combination of Clubbox feature that BigBlueBubble released earlier this year in collaboration with a number of influencers have been a nice combination working really well. T-Pain concert that happened in Q2 was a nice success and there's more coming with Weird Al Yankovic content coming next and additional content with influencers and additional engagement plans coming up for the rest of this year. Piranha net revenue for the quarter came in 33.5 million SAC. That's up 53% local currency adjusted EBITDA of 13.1 million SAC compared to 12.5 million last year. DLC number 8 for MechWarrior 5 Marks, Chaos Reign, shipped in May. That was a nice driver for them for the period. With the loyal player base for MechWarrior 5 Mercenaries, DLCs continue to prove that they deliver consistent performance, and with each release, it's been quite steady and profitable. So content model that's currently working really well for Piranha, we intend to continue with this. We expect stable revenues and profitability with this plan going forward. For Daybreak, net revenue came in at 185 million SEC, essentially flat compared to last year in local currency. Adjusted EBITDA of 8 million SEC compared to 2 million last year. Second quarter is a seasonal low for Daybreak annually due to the timing of its content releases as well as revenue recognition timing. But highlight for the quarter did include Palia reaching a major milestone of 10 million lifetime players, also released the Royal Highlands expansion in May, achieving its highest peak monthly revenue since their acquisition. The rest of the live service portfolio for Daybreak is steady, performing nicely, and Q3 should be showing a nice rebound, as is typical from Q2 seasonal low. Petrol, not highlighted here, but nonetheless, back to profitability and contributing positively to the group. And the main takeaway from this particular slide is five businesses, all of which are performing nicely and improving their performance.

Next slide, please. Hey, Robin, I think it says no slide is being presented currently. Can we go back to slide four?