Qiiwi Games AB (publ)

presentation of the Booking Communicator for 2024. We will be doing a review of the report we released this morning and with a follow-up Q&A question. As usual, if there are any questions, they can be sent in via Zoom to the client via the Q&A tool. We will then go through and answer what we think we can answer right now. I will start and go through the presentation here. Welcome, my name is Erik Dahl-Rundberg, CEO and founder of Kiwi Games. Summarizing the Booking Communicator for 2024, we have had a positive cash flow during the fourth quarter and we have also launched Backpacker GO globally. We started the global launch of the game title, which is the game title we have focused on during 2024 within the New Games business area. Backpacker GO started its global launch at the end of December. We also reached a positive cash flow during the quarter, at around 0.4 million SEK. This positive cash flow is partly due to the cost savings and the reorganization we have done during 2024, as well as a realized profit from the sale of a fund placement, which is a way we work to maximize the waste on the same amount of money we have. This is also something we continue to work with to maximize our cash flow as much as we can. Our goal is of course to create enough capital to generate positive cash flows from our game business. This is something we continue to work with hard during 2025. It is a mix of different parts that make us reach this positive cash flow during the quarter, which has been a goal for us during 2024. We are also working to reach the latter part of the year. The global launch of Backpacker GO started at the end of December. During this period we also reached a positive EBITDA result, and also a profit from tax. The positive EBITDA result ended at 0.4 million SEK. EBITDA result was about 0.7 million SEK compared to the same period the previous year. During that period we made a lot of investments and launches of Extreme Makeover, which led to a lot of market investment costs. This is something that has changed a lot, plus we had a much larger organization and costs related to it. We also reach a profit from tax of about 800,000 SEK, and this is something that happened recently in Q1 2021. If we look at the turnover during the fourth quarter, it ended at about 4 million SEK compared to 7.9 million SEK during Q4 2020. This is mainly Extreme Makeover that made a lot of profit due to the big Ua-investments we made to launch the game. We had invested a lot of resources and a long time. During this period Backpacker Go is the biggest contributor to the turnover. Despite the global launch started at the end of December, we mean that we have increased the Ua-investments for the game. Before that, we have carried out a lot of soft launch tests on different markets, which has also driven the turnover from the game. But the big turnover from the game started at the end of December. We see a lower contribution to the turnover from Live Operations. The three biggest game titles related to the turnover are Backpacker Go 29%, World Interns 24% and Extreme Makeover 15%. Looking at the Ua- and market turnover, we invested about 1.4 million SEK compared to 6.3 million SEK during the period. Extreme Makeover is the one that made a lot of Ua-investments during the whole of Q4 2023. Now we are starting the global series of Backpacker Go towards the end of Q4 2024. We see a relatively low Ua-investment in marketing. We are also working very closely with the data analysis around the Ua-levels. We see that Backpacker Go had a very good development in reaching the Ua-levels we wanted to reach. We reached that during Q4 and also during the start of the global launch, but also in the Ua-levels and also in the Q1. We have seen a more difficult Ua-climate compared to January and February. We are working hard to turn the trend to achieve a better performance in our Ua-results. It is up to us to invest in our Ua-levels. We are working towards a 180-day goal. That is the maximum level for us. Within 180 days we want to reach 100% ROI and preferably much earlier than that. We are working very closely with our Ua-analysis and the investments we make. We are also working to act when we see that something is not going well. We cannot have campaigns going on for longer, because we can see that this will not be a waste of time. We are also working very closely with the fact that we are managing our resource allocation. This is faster if we notice that one project does not reach the Ua-levels we want. If we are able to reach that level, we will move our resources to other projects, such as new games. Depending on which levels of Ua we reach. Looking at the revenue distribution, it is very similar to the previous quarter under 2024. 38% from in-app purchases and 62% from ad revenue. We see that during the 2023-2024 comparison, we were significantly higher on the in-app purchases side. This has to do with the fact that Extreme Makeover at that time only had in-app purchases in it. There were no ad revenue or ad revenue in that time. If we look at the financial results of Q4, we reach a turnover of about 4 million SEK. We reach an EBITDA result of about 374,000 SEK. An EBITDA result of minus 348,000 SEK. The tax result of about 800,000 SEK. And a result per share of plus 0.09 SEK. We have similar revenues at the end of the fourth quarter of about 18 million SEK. I leave it up to you, Daniel, to talk more about the new games business area.

Thank you very much, Erik. My name is Daniel and I am the founder of Kiwi and I lead the work with our new games team. During the reported quarter, like most of 2024, the main focus has been on Backpacker Go. On December 27, we reached a global launch. A milestone for us as we see here in the MVP process is the last stadium. The game is in a stadium where we have 65 cities for players to visit. The stadium is translated into 12 languages. And with the development of the game, we have developed a process to quickly create more content in the form of cleaning, questions and that kind of content. We have also learned methods where we can use AI tools to effectively create content. It has been an important lesson for us during this process to develop the game. Another lesson we have learned is that VP GO is a game with more social functions than before. And where we try to integrate it into our games and we see the benefit of it, it is something we take with us forward as well. It is more how we work with teams, players collaborate, collaborate in events and take advantage of each other to get ahead in the game and what positive effects it has for the game design. As we see also here at the bottom, we have another title in our MVP process. It is a game title that is currently being prepared for a market research. It is an early test against the selected player group and it is something we get to come with here in the future. I would like to mention that in our MVP process we have a stage called idea phase, which we don't see here. It is a phase where we work on the ideas we have internally, signals we pick up from the market. It is a process that is going on before titles are released in the MVP process. In our work with VP GO we have gained interest in the broadplay mechanics and the synergies we see with our game. We have a segment where minds thrive, tank nuts, puzzle words and all those pieces with a broadplay. That is something we will explore more in the future. That was all from New Games, I send you back Erik. Thank you.

Thank you Daniel.

I will have a little fun there. We will move on to the next slide. There we have the introduction of Live Operations. I will hand it over to you Markus.

Thank you very much. My name is Markus Stale, I am a co-founder and CTO at Kiwi Games. As we write, we have had a general focus during the period against our games Wordington and Extreme Makeover. Extreme Makeover has now passed over 1 million installations during Q1 and is getting continuous updates, new levels and new functions. For example, we have launched the function Super Color Bomb this week, something you can see in many other match-3 games and something we started the development of during Q4. We have also changed to the ad platform AppLavin during the Q4 period, which has had a good effect on the ad revenue in our games. It allows revenue to be a potential new marketing channel through their UA network and gives them access to more ad networks integrated into our games. At Wordington we have carried out the Partner Test we talked about and wrote in the previous report. We have continued to work very effectively, we have minimal resources and make the changes when we see that we can actually get output and improve the performance of the game. We will continue to work on this in live operations, dedicated and focused. Thank you for me and send back to Erik.

Thank you very much.

To summarize the bookstores communication and focus in the future, there is a continued focus on profitability and on new games. In addition, in 2024 there have been major changes within our organization, within Kiwi Games. We have carried out cost savings, applied and adopted a new strategy, which we see as the way to profitability for Kiwi Games and growth, of course. It is very cool that we have something with a new game to this, according to this new strategy in the form of Backpacker Go. It is a piece of the road and we see that we need more new games that need to be added to our game portfolio and that is where we continue to focus. The lead word we are working with is to continue to challenge ourselves, dare to be innovative and to follow the strategy we have adopted and put in place. We continue with good cost control, we make very data-driven investments, both regarding UA and how we allocate our resources and we continue with a huge dose of creativity. With those words, I think we will move on to Q&A.

I stop sharing here. I will start with

a question from Redrick. Does Backpacker Go better or worse than your estimates before the launch? I can say that the game title was significantly better in terms of the launch than we had expected and estimated. We saw the rawest results, a good bit above the expected values we thought we would have to scale it. It is a mix in the mobile gaming industry and the gaming industry as well. Backpacker Go was launched in December and is called the Q5 period, where there is more engagement and activity in relation to the game. We can have been boosted by an effect from the Q5 period. When you launch a game on new markets, it is usually easier in the beginning when you reach the core audience who loves the game. It is always uncertain how much scalability you can get and how long you can keep it down. It depends on the installation on different advertising networks and how well your advertising material performs. We have seen a change in the price of players towards the end of January and mid-January. The ROAS level affects the players who enter the game. The game went much better than we thought, but in terms of sustainability, we have been on obstacles that do not follow the plan. We are working hard to turn and optimize and try new ways to market the game title. Over time, we will be able to optimize and find the right players to get better and better reviews. The uncertainty for all games and backpacker go is how much scalability we can get on the type of optimization. We are also learning how the players behave in the game, what they like and what they dislike. We have a new game in the market research, where we bring a lot of feedback in the upcoming game. We will try to find a similar game concept. We have another question from Fredrik. You are asking which games contribute the most to the turnover, but which single game contributes the most to positive cash flow and which game generates the most overshoot? The games in Lab Operations generate the most overshoot, but they do not have the same amount of UWA investments in a global launch phase. Backpacker go has had a lot of players that are active in the game. In comparison to Extreme Makeover, we have had a lot more control over the game overshadowing. Backpacker go has been much better than other games that have been launched. We have a lot of players that are active in the game. The game also contributes with a lot of organic installations, because it is ranked relatively high on the search engine that exists in the different game stores. It is an interesting question. I hope I have answered it correctly. I have another question from Fredrik. You wrote that the most UWA goes to Backpacker go, while Worldinton contributes with almost the same turnover. This should mean that Worldinton generates much more overshoot and perhaps your most ranked games should not be more focused on Worldinton. We are starting the global launch of Backpacker go towards the end of December. The UWA investments we have done during Q4 have also had an effect during Q1. There is not much of a Backpacker go turnover that is in Q4 compared to what we can possibly prepare for the game. I understand the question. That it looks similar when we prepare for the game. During Q4, Worldinton generated significantly higher overshoot than Backpacker go. Backpacker go has a UWA investment to grow its game base. Similar to what we did for Worldinton when we launched that game. It is true for all games that are launched that during a period you reach a lower game overshot to be able to scale up and invest in marketing, which is then judged to be returned over time. I have a question here. Can you tell us more about what you see as interesting with the broad game format?

There are a couple of factors. We have seen that it is popular among players. It is a format that draws in their interests. Tabletop is something that many can relate to. It fits the DICE progress mechanics that we are exploring now, which we find interesting. As I mentioned earlier, it fits well with our approach with WorldMinds. Logical puzzles, word puzzles, that kind of game in that format. We are also happy that Backpacker go has developed a broad game model that we are very happy with and think is of good quality. And that these in combination make the broad game format interesting.

Thank you Daniel.

We have another question from Bastu Träsk Invest. You seem to have another game title within Trivia in the MVP process. Can you tell us more about it? We don't say much about it in the MVP process and in the New Games pieces in the report. But we continue to dig deeper into the Trivia concept. We have received a lot of insights from Backpacker go now. We know and believe that there is much more to do with the Trivia concept, linked to the broad game mechanics. If you look at Backpacker go, there is much more to explore about Trivia format on issues. We are also looking at a more dynamic gameplay experience. We are also trying to focus on a specific player group. That is what we can say right now. But considering that it is within Trivia and within the concept we have worked on before with VP GO. It is expected that this will probably go pretty fast with the development of this game title. We have a question here from Marcus. Can you tell us more about your partnership with Worldington Adeliv?

Yes, we can absolutely do that. We have not ended up on bad terms with our partner. We agreed that there were different areas to improve the game. To be able to take it to the next level and be a potential scalable product. We felt that we wanted to work on the feedback itself. We will evaluate it and see the effects of it on our own camera. But that is not to say that we do not try again with the same partner. We have several features on the way that we think can improve it further. But for now, the game is in our hands. We will continue to do that.

Looking at Worldington, you have actually done a lot lately. There are some new features and we are also testing some new onboarding. We have added a new feature that is a form of Tamagotchi experience. With a house animal game that the character has, which is interesting. We are also testing a new onboarding where the player comes directly into the crossroad. Instead of focusing on the introduction. It is an exciting test for Worldington. We have one more question. From Adam. If Backpacker is going worse than expected, if you do not succeed in changing the trend. What would be the consequence of that? The consequence is that we have to find a new game to launch. That will cover up for what we did not get from Backpacker GO. According to our expectations. Back to the MVP process. We will continue to work with the insight we have received. And get new game titles in the launch and testing. And evaluate further. We will have a focus on the broad game platform we have built up. We have a very effective use of AI. We are working with both Trivia content and visual content. The whole travel world can be scaled up much faster. Than we could before with any other game. Content wise. And evaluate other types of game mechanics. We are working on this format. We do not always need Trivia. We have other game mechanics we work with. It is exciting. And a niche of game titles we can go out on the market with. We are working with the Roa's return on ad spend trend. We are working with Backpacker GO. To get better and better. We continue to work with Backpacker GO. We have resources allocated to the game title. To create new features and add more content. Good. That was the questions we got. I think we will end here. Thank you for participating in the webcast. I hope you will continue to follow the journey with Kiwi Games. A lot of progress. We have taken big steps in 2024. We are working hard for 2025. And continue our journey. The webcast will be available on our website. Thank you for participating.