Year-End Report 2019 Investor presentation February 19, 2020 - PowerPoint PPT Presentation

Year-End Report 2019 Investor presentation February 19, 2020

Stillfront – a free-to-play power house Stillfront – a free-to-play power house STILLFRONT AT A GLANCE GLOBAL PRESENCE STILLFRONT AT A GLANCE GLOBAL PRESENCE • A global group of gaming studios in the free-to-play online games genre • A global group of gaming studios in the free-to-play online games genre Europe 48% Europe 48% • A diverse and evolving game portfolio with two common themes; loyal users and • A diverse and evolving game portfolio with two common themes; loyal users and long lifecycle games long lifecycle games • Main markets by revenue are US, Germany, MENA, France and UK North Am 29% • Main markets by revenue are US, Germany, MENA, France and UK North Am 29% Asia 18% Asia 18% • Headquartered in Stockholm with a group of twelve studios operating in • Headquartered in Stockholm with a group of twelve studios operating in Australia, Bulgaria, Canada, Germany, Jordan, Malta, Romania, Sweden, United Africa 1% Australia, Bulgaria, Canada, Germany, Jordan, Malta, Romania, Sweden, United Africa 1% States and Vietnam with a total of ~700 professionals States and Vietnam with a total of ~700 professionals South Am 2% Oceania 2% South Am 2% Oceania 2% Sales Sales Offices Offices GAME STUDIOS MASSIVE TRACK RECORD GAME STUDIOS MASSIVE TRACK RECORD All time All time 1.4m DAU 1.4m DAU 600m 600m avg. # of DAUs avg. # of DAUs users to date users to date Empire Empire € ~2bn 6.0m MAU € ~2bn 6.0m MAU is one of the biggest in lifetime deposits avg. # of MAUs is one of the biggest in lifetime deposits avg. # of MAUs strategy games of all time strategy games of all time 1 1 19 February 2020 19 February 2020

HIGHLIGHTS FOURTH QUARTER • Net revenue growth of 51% YoY supported by a well-balanced product mix • Adj. EBIT margin of 32% as a result of continued good monetisation • Strong development YoY in Big products, Nida Harb 3 and the midsized portfolio • UAC amounted to 107 MSEK or 19% in relation to net revenue HIGHLIGHTS FULL-YEAR 2019 • Stillfront platform built for further growth; organisation, structure and scale • Strong financial development - revenue growth of 48% • Adj. EBIT margin of 33% • Goodgame Studios presented solid growth FY o FY • Kixeye preparing for growth 2020: collaboration between Kixeye, Goodgame and Babil

Portfolio update Q4 Diversified portfolio: largest game represents less than 15 percent of revenue 28% 17% 55% <1% EMPIRE BRAND BIG BRAND CORE PRODUCTS OTHER • • Long tail products • • In total 29 products Five products: Empire, Four Three products: Big Farm, Mobile Kingdoms, Millennium, WW3, Age of Harvest and Skytopia • In total more than 10 products Knights Q3 Q3 Q3 • Low potential but still contributing • • • Deposits*: 296 MSEK (+118% YoY) Deposits*: 151 MSEK (-3% YoY) Deposits*: 90 MSEK (+29% YoY) • No investments or live ops • • • UAC: 55.5 MSEK (+47% YoY) UAC: 13 MSEK (-12% YoY) UAC: 38.5 MSEK (+67% YoY) • Assets can be reused • • • Largest products: Nida Harb 3 (70 Sequential growth, 12% Sequential growth, 6% MSEK), Shakes & Fidget (36 MSEK), • • Battle Pirates (32 MSEK) Very strong EBIT contribution Big Farm: Mobile Harvest in top 3 products driving organic YoY growth, • • Nida Harb 3, Strike of Nations in top3 New mobile title Empire: Age of +46% products driving organic YoY growth Knights in global soft launch 3 19 February 2020 *Deposits are unadjusted revenues from paying users

Active User Base DAU ¹ Y-o-Y ’EMPIRE’ BRAND ’BIG’ BRAND CORE PRODUCTS (’000) 1411 1394 +22% 1317 1309 1140 751 798 +68% 699 724 476 330 342 334 +1% 301 331 335 318 284 284 264 -21% Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 MAU ² Y-o-Y COMMENTS Q4 2019 (’000) 6018 +26% 5874 5881 5342 • Sequential seasonality and efficient UA 4770 3235 +59% 3032 3141 • MAU increased 13% QoQ and DAU increased 6% QoQ 2982 2040 • Higher UA spend for Big Farm: Mobile Harvest fuels sequential MAU increase 1541 +3% 1396 1518 1476 1116 • Age of Knights globally soft launched during quarter 1337 1309 1254 1244 1265 +1% Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 4 19 February 2020 1: Average unique Daily active users over the quarter – pertains to online games only 2: Average unique Monthly active users over the quarter – pertains to online games only

Paying User Base MPU ¹ Y-o-Y ’EMPIRE’ BRAND ’BIG’ BRAND CORE PRODUCTS (’000) +28% 236 211 205 192 184 +71% 121 87 103 83 71 44 51 53 +21% 48 47 69 67 60 61 62 -10% Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 ARPMPU ² Y-o-Y COMMENTS Q4 2019 (SEK) +8% +7% +27% +16% 923 • Loyal paying user base, excluding acquired studios, remain stable YoY 902 826 813 809 801 800 782 756 749 737 684 680 • Group’s All time high in MPU, 28% YoY, paired with 16% YoY ARPMPU growth 654 640 609 565 554 528 516 • Shakes & Fidget main driver of sequential +12% MPU, -5% ARPMPU QoQ • Stable Empire and growing Big drives YoY growth for Goodgame studios Empire Big Core Total 5 19 February 2020 1: Average unique monthly paying users over the quarter – pertains to online games only 2: Average deposits per monthly paying user over the quarter – pertains to online games only

Strong revenue growth and solid profitability NET REVENUE, UAC DEVELOPMENT COMMENTS Net Revenue, MSEK UAC, MSEK UAC, % of Net Revenue 1967 551 Net revenue growth of 51% YoY 517 1782 480 1579 – Strong organic growth in the Big products and Nida Harb 3 418 1428 1325 366 – Medium sized products combined contribute to growth – Playa and Kixeye driving acquisitive growth 397 108 107 365 99 342 346 320 83 76 24% 24% 22% 20% 20% 21% 26% 21% 16% 19% Good profitability: Adj. EBIT margin 32% Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 – Excluding IAC and amortization of PPA-items LTM LTM LTM LTM LTM – UAC of 107 MSEK or 19% in relation to net revenue – Share of mobile revenues 54% (56% in Q3) ADJ. EBIT DEVELOPMENT Adj. EBIT, MSEK 645 Net revenue growth of 48% LTM Adj. EBIT, % of Net Revenue * 604 – Efficient and disciplined UA spend at around 20% of revenue 527 177 175 167 – Adj. EBIT margin improvement of 3 percentage points 441 397 137 – 62% adj. EBIT growth 126 37% 30% 35% 34% 32% 30% 31% 33% 34% 33% Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 LTM LTM LTM LTM LTM 6 *New definition of Adj. EBIT – excluding items affecting comparability and amortization of PPA-items 19 February 2020

Income statement Q4 2019 COMMENTS MSEK 2019 2018 Deposits 537 MSEK Oct-Dec Oct-Dec IFRS effect 3 MSEK Other game related revenues 11 MSEK Net revenue 551 366 Gross Margin 74% OWC 62 22 Other revenue 5 -1 Other operating expenses: -302 MSEK • Payment providers, platform fees, royalties -142 MSEK Total 618 387 • UAC -107 MSEK • Other operating expenses -303 -169 Items affecting comparability -5 MSEK • Other operating costs -49 MSEK Personnel expenses -111 -65 Depreciation and Amortization -69 MSEK EBITDA 204 156 • PPA items -38 MSEK Depreciation, amortization and write- • Capitalized development expenses -28 MSEK downs -69 -32 • IFRS 16 Leases and fixed assets -3 MSEK EBIT 135 123 Adj. EBIT / Margin 177 MSEK/32% Financial items -19 -50 Net financial items: -19 MSEK EBT 116 73 • Interest net -17 MSEK Taxes for the period -29 -46 • Non-cash interest charge on earnouts and currency effects -5 MSEK • Revaluation of provision for earnouts 3 MSEK Net result for the period 87 26 Taxes for the period -29 MSEK 7 19 February 2020

Income statement Full-Year 2019 MSEK 2019 2018 COMMENTS Net revenue 1,967 1,325 Net revenues amounted to 1,967 (1,325) MSEK, an increase of 48% • Organic and acquisitive growth drive diversification and create a better balance in the portfolio OWC 197 118 • Increased ARPMPU driven by live ops increasing 16% YoY • Other revenues increased to 39 (13) MSEK, i.e. increased to 2% of total revenues Other revenue 11 7 Total 2,175 1,450 Gross Margin 74% (75%) slightly lower FY o FY driven by higher share of revenue from mobile and Babil, offset by other revenues and scalability of our business model Other operating expenses -1,078 -732 UAC increases with 24%, but decreased in relation to revenues to 20% (24%) Personnel expenses -356 -236 EBITDA 740 479 Personnel costs amounted to -356 (-236) MSEK, an increase with 51% Depreciation, amortization and write- • Personnel cost with affect on P&L increases with 35% downs -223 -125 Depreciation, amortization and write-downs increased 78% EBIT 517 353 • Mainly driven by amortization of PPA items which increased to -101 (-32) MSEK Financial items -63 -89 Adj. EBIT amounted to 645 (397) MSEK, an increase of 63% and Adj. EBIT Margin increased 3 p.p. to 33% EBT 454 265 Taxes YTD totalled -113 MSEK, reported tax rate YTD was 25% Taxes for the period -113 -107 Net result amounted to 341 (157) MSEK, an increase of 117% Net result for the period 341 157 8 19 February 2020