2021Q2 investor presentation.pdf - Rovio

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Rovio Entertainment

Half-Year Report January – June 2021

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Today’s speakers

Alex Pelletier-Normand

CEO

René Lindell

CFO

Minna Eloranta

Senior Investor

Relations Manager| R O V I O © 2 0 2 1 | E A R N I N G S C A L L P R E S E N T A T I O N2

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Dial in information:

PIN: 26539023#

• Finland : +358 9817 10310

• Sweden : +46 8566 42651

• United Kingdom : +44 3333 000804

• United States : +1 6319 131422


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• Games revenue grew +6% y-o-y in comparable currencies in Q2 and +8% in H121.

• Growth driven by live games performance:

• Small Town Murders

• Angry Birds Friends

• Growth games stable VS shelter-at-home Q2-20 revenue boost

• Lower profitability due to higher user acquisition investments for Small Town Murders and to support the launch of Darkfire Heroes.

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Q221 and H121 Highlights.


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• Darkfire Heroes launched globally April 15.

• Hardhead Squad, soft launched June 2020, was cancelled.

• In June : partnership with Moomin Characters and Gutsy Animations.

• Puzzle studio soft launched Angry Birds Journey ( January) and Supernatural Cities (April).

Angry Birds Reloaded on Apple Arcade reached #1 download position.

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Q221 and H121 Highlights.


| | R O V I O © 2 0 2 1 C O N F I D E N T I A L | E A R N I N G S C A L L P R E S E N T A T I O N G A M E S6

Rovio to acquire hyper-casual game publisher Ruby Games

▪ Founded in 2018 in Izmir, Turkey

▪ 34 personnel, CEO/Founder Mert Can Kurum(100% ownership)

▪ Published 13 games:▪ 8 reached Top 10 US▪ 3 reached Top 1 US

▪ Top game Hunter Assassin the world’s 6th most downloaded game in 2020 with 181MM downloads

▪ Profitable with high EBITDA margin

Company overview Hunter Assassin – 6th most downloaded game in 2020

+600MDownloads

$22MJun-21 LTM

revenue

1 2 . 0 8 . 2 0 2 1 1) Daily download rank in Games category on iOS based on App Annie 2) App Annie

$7.3MJun-21 LTMAdj. EBITDA

33.5%Jun-21 LTM

Adj. EBITDA-%

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Transaction rationale

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3

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New growth vector through expansion to fast growing and dynamic hyper-casual market

Highly skilled talent● Ruby Games has built a talented and agile team over the years who thrive working in the ambitious and competitive

hyper-casual market environment. Employees are highly motivated and have years of experience in game development.

Expanding network of Players and Games● Adding hyper-casual games to Rovio’s portfolio and expanding geographic and

audience footprint enables synergies in e.g cross-promotion across a larger network of players

Diversifying Rovio’s revenue stream. ● Extends Rovio’s ads business and increase new IP (non-Angry Birds) revenue

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Q221: Good performance across live games

GAMES GROSS BOOKINGS (EUR MILLION)

15.0

26.6

6.8

2.5

25.2

6.6

2.53.8

8.0

15.2

8.1

6.9

1.0

Q220

3.0

26.5 26.2

16.4

7.2

8.1

2.6 4.7

7.3

2.2

28.8

8.4

2.9

16.1

25.0

5.3

64.5

9.8

18.8

24.9

66.6

Q221

64.2

0.1

4.4

5.6

64.9

Q420

67.7

Q121

67.0

2.4

5.9

2.5

8.3

2.5

7.3

62.1

2.3

3.6

Q120

3.9

15.5

Q419

15.4

Q320

2.2

2.5

0.2

Small Town Murders

Sugar Blast

AB Friends

AB Match

Other games

AB Dream Blast

AB 2


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Emerging titles proceed as expected.


Improving the Angry Birds Journey continues. The game has now moved to monetisation phase in soft launch process.

Narrative based match-3 game Supernatural City has moved in the soft launch retention phase.

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STOCKHOLMESPOO

STRATEGYPUZZLE

Game cancelled: reassigning teams

• 7 live games• 3 games in dev• 2 games in SL

ADVANCED CASUAL

• 1 live game• 2 games in dev

ESPOO COPENHAGEN

RPG• 1 live game

MONTREAL

FUTURE OF GAMING

• 1 internal project• 1 external project

6 studios, 7 games in development, 2 in soft launch.

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HYPERCASUAL

Numerous projects

IZMIR

New!Ruby Games

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Brand update

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Angry Birds brand is an asset in a market dominated by paid digital advertising:

• Generates Organic Traffic

• Lowers CPIs

Strategy :

1. Solid Angry Birds Pipeline

2. Moomin partnership

Gutsy Animations 2021 and Moomin Characters 2021

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Rovio establishes long-term partnership with Moomin


• Rovio becomes an exclusive partner to develop and publish Moomin IP based games for any platform and has exclusive rights for all mobile platforms.

• First mobile game inspired by Moominvalleyvisuals is in development. Expected to soft launch later in 2021.

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Q221Financials


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Q221: Group revenue -0.6%, in comparable currencies Games +6%

REVENUE (EUR MILLION)

69.271.8 68.82.42.3

66.4

Apr-June 20

66.9

April-June 19

65.4

Apr-June 21

6.4

-0.6%

GamesBrand Licensing


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ADJUSTED OPERATING PROFIT(EUR MILLION) (*) ADJUSTED OPERATING PROFIT MARGIN (%)

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Q221: Profitability impacted by an increase in UA and OPEX

(*) Adjustments in April-June 2020 were EUR -0.2m. There were no adjustments in April-June 2021 and April-June 2019.

-4.7

9.5

17.0

5.3

Apr-June 19 Apr-June 21

8.2

-3.4

0.4

-2.5

0.2

0.6

13.8

Apr-June 20

6.27.4%

8.9%

20.0%

Apr-June 21Apr-June 20Apr-June 19

Brand Licensing Games Other


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H121: Group revenue +0.1%, in comparable currencies Games +8%

REVENUE (EUR MILLION)


142.6

Jan-June 19 Jan-June 21

6.211.0135.9

131.3129.6

Jan-June 20

131.7

4.6135.8

0.1%

GamesBrand Licensing

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ADJUSTED OPERATING PROFIT(EUR MILLION) (*) ADJUSTED OPERATING PROFIT MARGIN (%)

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H121: Profitability impacted by an increase in UA and OPEX

(*) Adjustments in the Jan-June 2021 were EUR 0.6m. In the Jan-June 2020 periodadjustments were EUR 0.1m. There were no adjustments in the Jan-June 2019 period.

-5.4

33.6

-8.1

16.2

26.9

12.8

21.0

Jan-June 21

0.6

-7.8

Jan-June 20

19.6

1.0

Jan-June 19

1.212.0

19.8

9.0

Jan-June 19 Jan-June 20 Jan-June 21

OtherGamesBrand Licensing


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USER ACQUISITION INVESTMENTS (EUR MILLION)

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USER ACQUISITION AS % OF GAMES REVENUE

Q221: Increase in UA investments

16.014.0

27.5

15.313.5

Q120 Q221

21.3

Q320 Q121Q220

27.1

Q319 Q420Q419

17.3

Q121

26.724.9

Q220

41.3

20.923.8

Q320Q120 Q221Q420

32.0

Q419

40.8

21.5

Q319


UA ramped up with Darkfire Heroes launch in April

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Q221: Growth and Earn games growing q-o-q


71.6

27.1

72.274.2

Q121

43.133.6 27.8

66.2

Q221Q420

56.9

Q220

72.9

Q120 Q320

28.425.8

CatalogueGrow Earn

39.3

22.5

39.1

21.821.0

42.3

20.0 23.8

64.9

6.1

67.762.1

66.6

Q221

39.0

5.4 3.53.7Q420 Q121

64.1

37.9

4.04.5

18.4

37.6

Q220

64.5

Q320Q120

CatalogueEarnGrow

SHARE OF TOTAL UA PER GAME CATEGORY (%) (*) GAMES GROSS BOOKINGS (EUR MILLION)

(*) Games categories per life-cycle:Grow: Sugar Blast, Angry Birds Dream Blast, Small Town Murders, Darkfire Heroes + games in soft launchEarn: Angry Birds 2, Angry Birds Friends, Angry Birds Match, Angry Birds PopCatalogue: Other games

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OPERATING CASH FLOW (EUR MILLION)

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CASH BALANCE (EUR MILLION)

Q221: Operating cash flow impacted by lower profitEUR 8.8 million dividends paid in April, EUR 5.0 million invested in Gutsy Animation

-0,7

3,1

11,5

18,715,8

17,6

2,5

7,6

-5

0

5

10

15

20

25

Q220Q319 Q419 Q121Q120 Q320 Q420 Q221

140

0

130

120

150

160

141.2

Q319 Q121

116.7

124.7

138.9

124.6

Q219

127.9

Q419

121.1

Q120 Q220

123.5

Q420

135.5

Q221Q320


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Outlook 2021 – No changesThe mobile gaming market continues to grow with casual gaming being a major growth driver. The ongoing changes in consumer behavior and underlying market trends are accelerated by the COVID pandemic and plays an important role in both current games’ operation and new game development. This combined with industry changes like Apple’s privacy policy fuels the near-term uncertainty in the market environment.

We will focus on improving the performance of our key live games and on launching new innovative products. We continue to show diligence in our UA spend. Depending on market conditions, the performance of our investments, and the launch of new games, we aim to increase our UA investments to build growth for the coming years. This may have implications on short-term profitability.

We will continue investing in our Future of Gaming initiatives, taking advantage of the trends we see in consumer behaviorand building our positioning in the rapidly evolving market.

In addition, we seek growth through synergistic acquisitions that can deliver long-term value growth.


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Pro forma income statement of Rovio and Ruby Games YTD Q2 2021

1) App Annie 2) Text

IFRSunauditedEUR million

Rovio(as reported)YTD Q2´21)

Ruby GamesYTD Q2´21

Rovio(Pro forma)YTD Q2´21

Revenue 135.9 6.4 142.4

Adjusted EBITDA 21.0 2.9 23.9

Adjusted EBITDA margin 15.5% 45.1% 16.8%

Adjusted EBIT 16.2 2.9 19.1

Adjusted EBIT margin 12.0% 44.6% 13.4%

Note: Pro forma income statement represents a view of how Rovio group financials would have looked like if the transaction would have been completed on January 1st, 2021. The financials are unaudited and are presented only as additional information.

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Q&A

Dial in information:

PIN: 26539023#

• Finland : +358 981710310

• Sweden : +46 856642651

• United Kingdom : +44 3333000804

• United States : +1 6319131422


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We craft joy.

Thank you!

We will be back with the next earnings call on October 30th!

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https://investors.rovio.com/en


2021Q2 investor presentation.pdf - Rovio

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