Qiiwi Games AB (publ)

Då hälsar vi alla välkomna till Kiwi Games presentation av det andra kvartalet 2025. Vi kör först en genomgång av kvartal två. Går igenom lite information utifrån vd-ordet och de resultaten vi har nått upp till under det andra kvartalet och väsentliga händelser. Efter det så kör vi en a Q&A question time where it is possible to ask questions. And you can already start sending that in to the Zoom client in the Q&A function there. Let's get started. Then we look at the second quarter. Generally speaking, Det har varit ett kvartal som ytterligare präglat oss med AI extremt mycket. Vi känner verkligen att det som AI-muskler och olika AI-tjänster hjälper oss verkligen att som ett litet team fortsätta att tänka och bygga stort framöver. And during the second quarter, we also informed about further optimizations and cost savings based on this insight about what we see AI can do for us. And we have also seen that long before. But we really see that it is starting to come to its right now and is escalating more and more and how much we can actually use it in our business. So that's why we decided that further and reduce staff capacity by 50% and completely dismantle our subsidiary in Cyprus, which we have had since 2018. These cost savings and optimizations are estimated to give about 450,000 SEK in savings per month, but probably more since we have identified additional things under Q2 and Q3 that will give additional cost savings. So this is another important step for us to get much closer to an Upbreak e-mail result on a monthly basis. We will talk more about how AI helps us further in our business during the presentation here. Let's take a closer look at turnover The result shows a decrease in revenues compared to the previous year. Our revenues fell to 3.3 million SEK compared to 5.4 million SEK. The big reason for this is that titles that under the comparison period performed at significantly higher levels than what they do today. It is above all Extreme Makeover and Midsummer Murders that had a good period during the comparison period. But we haven't worked with those titles at all in the last period, which means that Daily active players, DAO in those games are decreasing and so are the revenues Another thing that affects the turnover, if you look at the comparison with Q1, we also lost turnover there compared to Q2, if you look sequentially. During Q1, we had our global launch of Backpacker Go, which started at the end of December 2024 and continued into Q1. We saw very good upscaling results during January, which then where we then during February and March had to hold back in the global launch when we encountered problems in scaling the game further in the global launch that then took place. But that of course led to a lot of revenue during January, which then decreased during February and March, so the entrance to Q2 was significant. on a lower level than the amount we get from our gaming portfolio. But what is positive is that we, from April to July, have been able to stabilize and marginally increase the amount month to month under Q2. mainly driven by Backpacker Go and Worthington, which have had better results on marketing and better sales, but at a lower total marketing level. We will come to the marketing slide here in a moment. The three biggest games are Backpacker Go, which is still in first place with 44%, Wordington with 24% and Extreme Makeover with 9%. If we look at the EBITDA result, it is somewhat improved compared to the same period last year. an EBITDA result of minus 1.8 million SEK. Here we expect to see an improved EBITDA result in the coming quarter when we get the effect of the cost savings. The optimization and cost savings started during Q2, so we first see the effect during Q3, but especially during Q4 and then full effect from the end of Q4. If we look a little more at marketing and user acquisition, UA, it was also on significantly lower levels than the comparison period. and also significantly lower than Q1 2025, which we talked about a little earlier. And of course it affects the turnover that we generate if we market our games and have the opportunity to market at higher levels, then we often see a omsättningsökning, men har vi inte den möjligheten utan måste marknadsföra spelen på lägre nivåer för att få den ROAS-nivån vi vill ha, vilket är att få tillbaka pengarna på 180 dagar, då blir det lägre UA-investeringar, vilket också påverkar omsättningen. Men vi minskar de UA-investeringarna med cirka 55% jämfört med Q2-2024 and about 48% compared to Q1-2025. In a way, it is a picture of a decrease in revenues compared to these periods. It is important to emphasize that we have been very, and we are, careful with EU investments. We make EU investments only if we really see that we can reach 100% ROI in 180 days. And during the second quarter, we have seen an improved cast of UA-investments for those games that were marketable, and that is mainly Backpacker Go, which has held the majority of the UA-investments during the period. So hopefully in the future, with more optimizations in Backpacker Go, is that we will be able to increase the UAE investments and continue to maintain this good drop in marketing that we have seen during the second quarter. And here is also Worthington, a game title that performs very well, but to low levels that we also hope to be able to increase. We also looked a bit closer at what it is that has made us able to get so much better results during Q2. AI is an important part of it, because AI has helped us a lot and we have got a very good workflow on how we can work with AI-generated advertising material, both statics, i.e. images, but also video-related material. Because when we carry out marketing and UA, it is an update of the advertising material that we use in our campaigns that is very important, that you reach an update frequency that is high, that the advertising material that it will not be saturated, that it will not be recurring for those who get an announcement presented to them in order to reach a wider mass to continue and then also maintain low costs per installation. AI in the future will definitely speed up our ability to bring out our ads to significantly higher levels than before, if you look at video-related material, where we can generate with different AI models and different services, very good animated animated advertising material based on how our characters look in our games and simply elaborate in completely new ways than what we have been able to do before. So this is something we will continue to focus on during Q3 and in the future regarding the marketing strategy. If we take a look at ARPDAU, which is the average income per active player per day in our game portfolio, we still have a high level in ARPDAU historically. We have increased by 18% compared to last year, and it is mainly Backpacker Go that we have in our portfolio that drives a higher level. ARPDAU, en spelportföljens snitt. Och det är ju ett boardgame som vi fortsatt under Q3 här har viktiga goals for further identifying value-making efforts for Backpacker Go, which hopefully can further increase ARPDAO in a total way in the game and thus also improve the possibility of marketing the game on more markets and on a larger scale. Let's look at some financial results. In the chart, the turnover is about 3.3 million SEK. The turnover result EBITDA is minus 1.8. The turnover result EBIT is minus 2.7. The result after tax is also minus 2.7. The result per share is minus 0.3 SEK. And at the beginning of the period, we had liquidity of about 14.8 million SEK. Let's move on to New Games and I hand over the floor to Daniel Svensson.

Thank you Erik. My name is Daniel. I am the co-founder and head of the New Games team. As you can see here in the lower edge, we have our MVP process. It's a methodology we use in the development of our new games. And within the new game team, we have evaluated several new game ideas during the period. We have taken five games to market test. Market test means that we test the game with purchased players and evaluate the key numbers and potential. As you can see here, four ideas did not meet our expectations and have been terminated and are in the post-mortem stage on the far right. In the post-mortem stage, we analyze and collect important insights about what did not work, what we learned, and take it on to future projects. One of the games is still in market research. The main focus of the test has been to evaluate ZenThema in combination with WordPuzzle. ZenThema is a relaxing gaming experience that is popular right now and we wanted to get our own insights into how Kiwi games work with that game format. And in the current situation, we are at the end of this phase with this test. It should also be mentioned that we have tested a new trivia game early in the second quarter. It did not reach the results we wanted to see. That the game project ends early is... a natural part of the process. It is important to be able to quickly measure the potential level of ideas. And two new processes that we are using that will help us in the future are something we call the Kiwi Template. It is a framework that will make it possible for us to quickly plug in game ideas in a more finished and game-friendly environment. This means that we can both shorten the time from the idea that it reaches the players and at the same time give the players a more uniform and rich experience, even early in the development phase. Try to suck out factors that are the game for the sake of the players to like it, but it should be a good early experience to be able to see the potential. Another step we are taking to further strengthen our process is to continuously evaluate how AI can be used to make the creation more efficient. Already now, we can test prototypes very quickly to test our theses and come up with ideas. The work methodology we have with MVP, Kiwi Template, AI, gives us the opportunity to do the work that is required to find the gold coin in the future. And even if the ambition is that all the projects we run will be successful, the reality is that most ideas die early. Men med vår systematiska process vill vi skapa en trygghet i att vi tidigt ska kunna identifiera vilka idéer som har potential och därigenom kunna fokusera våra resurser på det som har störst chans att lyckas. Och det var status för New Games och hur vi arbetar. Så skickar vi ordet till dig igen Erik.

Ja, tack så mycket. Vi går vidare till Live Operations, and then we'll hand it over to Marcus Dahle.