Enad Global 7 FY2024 Q2 Earnings Release

Aug, 2024 x
Investor Presentation
Q2 2024
2 0 2 4 / 0 8 / 1 4

Key Performance Figures
E G 7 Q 2 2 0 2 4 I N T E R I M R E P O R T
2
NET REVENUE
353
MSEK
ADJUSTED EBITDA
33
MSEK
NET CASH POSITION
317
MSEK
▪ Due to no major releases during the period
▪ Key releases are coming up in Q3 and Q4 this year
▪ Larger variability in revenue timing this year due to some delays
in product releases
S T R A T E G I C A N D O P E R A T I O N A L C H A N G E S
▪ On the strategic front, acquired Singularity 6
▪ More on -going cost -saving and business optimization
▪ Total expected annual cost -saving amount to 103 MSEK
▪ YTD adjustments from Q1 through today
▪ EG7 changed listing venue to Nasdaq Stockholm
R E L A T I V E L Y Q U I E T Q U A R T E R

Q2 2024 Adjusted EBITDA Contribution
E G 7 Q 2 2 0 2 4 I N T E R I M R E P O R T
3
▪ MSM has stabilized at current level
▪ Daybreak margins for the quarter
impacted by revenue deferral to Q3
▪ Piranha’s results up 31% Y -o-Y with
Mw5 on -going sales performing better
than expected
G A M E S
▪ Toadman and Petrol continue to be
under pressure from market
weakness
▪ Fireshine is performing to plan
▪ Q2 results lower due to release slate
timing
▪ Majority of the releases in the second
half of the year
S E R V I C E S A D J U S T M E N T S M A D E
▪ Cost reduction at Toadman with
estimated annual savings of 63 MSEK
▪ Approx. 100 headcount impacted at
Toadman , including FTEs and
contractors
▪ Including changes at other business
units, estimated annual group
savings of 103 MSEK
MSEK

Daybreak Acquisition of Singularity 6
4
C O M P A N Y O V E R V I E W
▪ Founded in 2018 by former senior
development leaders from Riot
▪ Developer and publisher of Palia
▪ Currently ~40 highly talented
developers with extensive AAA game
development experience
▪ Originally backed by leading VC
investment firms
▪ Based in Los Angeles, CA
P A L I A O V E R V I E W
▪ Cozy community sim and world builder
▪ Multiplayer online live service game
▪ Currently available in open beta on PC
and Nintendo Switch
▪ Summary KPIs
▪ 5mm registrations to date
▪ 650k MAU
▪ Very Positive rating on Steam
▪ A wider release on the latest
generation consoles in 2025
E G 7 Q 2 2 0 2 4 I N T E R I M R E P O R T

 Product with a nice upside potential
 A huge fan base for the genre
 Highly talented and motivated team
 Great fit with our strategy and expertise
 Lower risk profile combined a solid upside potential
 Type of transaction we like and are good at
E G 7 Q 2 2 0 2 4 I N T E R I M R E P O R T
5
Investment Highlights

Summary of Terms
E G 7 Q 2 2 0 2 4 I N T E R I M R E P O R T
6
▪ Daybreak acquired 100% of S6 on July 2, 2024
▪ Transaction consideration comprised of:
▪ Initial purchase price – USD 5mm
▪ Contingent consideration – 50% of net cash flows for the sellers through the fifth anniversary of closing
▪ Daybreak investing up to USD 10mm for release on latest generation consoles in 2025
▪ Development funding to complete the release version for consoles
▪ Marketing and publishing spend to take the game to market
▪ Daybreak investment is fully recoupable
▪ 100% recoup of all investment
▪ Contingent consideration payable only after Daybreak’s full recoup

Financial Discussion

Q U A R T E R L Y L T M
Net Revenue, ADJ EBITDA and EBIT
E G 7 Q 2 2 0 2 4 I N T E R I M R E P O R T
8
483
517
473
382
353
113 141
98
62 33 25 43 45 40
-26
23%
27%
21%
16%
9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
-50
50
150
250
350
450
550
650
2Q23 3Q23 4Q23 1Q24 2Q24
Net Revenue Adjusted EBITDA EBIT Adj EBITDA Margin
2058 2131 2045
1855
1725
595 623 542
414 334
39 23
252 153 102
29% 29%
27%
22%
19%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
500
1 000
1 500
2 000
2 500
2Q23 3Q23 4Q23 1Q24 2Q24
Net Revenue Adjusted EBITDA EBIT Adj EBITDA Margin
(MSEK)

D A Y B R E A K B I G BLUE BUBBLE
Net Revenue and
Adjusted EBITDA Mix
E G 7 Q 2 2 0 2 4 I N T E R I M R E P O R T
9
Q 2 N E T R E V E N U E C O N T R I B U T I O N
Daybreak 167 47%
Big Blue Bubble 75 21%
Rest of the group 110 31%
Group total 353 100%
Q 2 A D J E B I T D A C O N T R I B U T I O N
Daybreak 12 37%
Big Blue Bubble 37 111%
Rest of the group -16 -48%
Group total 33 100%
190 181 182 188
167
48
34 29 42
12
25% 19% 16% 22%
7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
50
100
150
200
250
2Q23 3Q23 4Q23 1Q24 2Q24
QUARTERLY
Net Revenue Adjusted EBITDA Adj EBITDA Margin
144
123
86
69
75 86 88
49
38 37
59%
71%
57% 56%
49%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
20
40
60
80
100
120
140
160
2Q23 3Q23 4Q23 1Q24 2Q24
QUARTERLY
Net Revenue Adjusted EBITDA Adj EBITDA Margin
(MSEK)

Net Revenue and
Adjusted EBITDA Mix
E G 7 Q 2 2 0 2 4 I N T E R I M R E P O R T
10
Q 2 N E T R E V E N U E C O N T R I B U T I O N
Piranha 23 6%
Toadman 12 3%
Rest of the group 318 90%
Group total 353 100%
Q 2 A D J E B I T D A C O N T R I B U T I O N
Piranha 8 24%
Toadman -9 -26%
Rest of the group 34 102%
Group total 33 100%
P I R A N H A T O A D M A N
24
28
30
21 23
6 8 11
3
8 25% 30%
37%
16%
35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
5
10
15
20
25
30
35
2Q23 3Q23 4Q23 1Q24 2Q24
QUARTERLY
Net Revenue Adjusted EBITDA Adj EBITDA Margin
11
14
19 17
12
-3
-6 -6 -6
-9
-29%
-39% -29% -35%
-75%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
-15
-10
-5
0
5
10
15
20
2Q23 3Q23 4Q23 1Q24 2Q24
QUARTERLY
Net Revenue Adjusted EBITDA Adj EBITDA Margin
(MSEK)

F I R E S H I N E P E T R O L
Net Revenue and
Adjusted EBITDA Mix
E G 7 Q 2 2 0 2 4 I N T E R I M R E P O R T
11
Q 2 N E T R E V E N U E C O N T R I B U T I O N
Fireshine 38 11%
Petrol 38 11%
Rest of the group 277 78%
Group total 353 100%
Q 2 A D J E B I T D A C O N T R I B U T I O N
Fireshine -2 -5%
Petrol 0 -1%
Rest of the group 36 107%
Group total 33 100%
36
51 50
40 38
-9
2 3
-6
0 -25%
4% 5%
-16%
-1%
-50%
-30%
-10%
10%
30%
50%
70%
90%
-20
-10
0
10
20
30
40
50
60
2Q23 3Q23 4Q23 1Q24 2Q24
QUARTERLY
Net Revenue Adjusted EBITDA Adj EBITDA Margin
78
120
107
46 38
3
19
11
0
-2
4%
16% 11%
1%
-5%
-20%
0%
20%
40%
60%
80%
100%
-20
0
20
40
60
80
100
120
140
2Q23 3Q23 4Q23 1Q24 2Q24
QUARTERLY
Net Revenue Adjusted EBITDA Adj EBITDA Margin
(MSEK)

( M S E K )
Net Cash Position
E G 7 Q 2 2 0 2 4 I N T E R I M R E P O R T
12
Q2 Cash Flow
* Prel taxes BBB paid -19 MSEK
** Publishing deals -51 MSEK
** Capex MW Clans -22 MSEK
** Earnout on tax saving FY 2023 -19 MSEK
*** Dividend paid -20 MSEK
Continued strong
Net Cash Position
Cash OB 467
Operation* -23
Investing** -98
Financing*** -26
Delta Cash

-147
Currency fluctuations in liquidity -3
Cash CB 317
454 473 481 467
317
–
0,20
0,40
0,60
0,80
1,00
1,20
–
100
200
300
400
500
600
2Q23 3Q23 4Q23 1Q24 2Q24
Cash at hand

E Y E O N T H E P R I Z E
Market
▪ YTD the industry suffered ~11,400 lay offs
▪ Market is estimated to grow at 3% CAGR through 2026
EG7
▪ Exited to add S6 and the game Palia to our portfolio
▪ Cost -saving efforts with expected annual saving of 103 MSEK
▪ As previously communicated 2024 will be a transition year
▪ New growth initiatives starting to kick -in early Q4
▪ 2024 full year targets
▪ Net Revenue of SEK 1.8 billion
▪ Adj EBITDA margin lower end of the 22 -25% range
▪ 2026 full year targets
▪ Net Revenue of SEK 3 billion
▪ Adj EBITDA of SEK 1 billion
Figures in Perspective
E G 7 Q 2 2 0 2 4 I N T E R I M R E P O R T
13
0
500
1000
1500
2000
2500
3000
3500
2021 2022 2023 2026
Net Revenue Adj EBITDA

2023 -2026P 16%
organic CAGR
(MSEK)

Summary

Summary
E G 7 Q 2 2 0 2 4 I N T E R I M R E P O R T
15
▪ Q2 was a quieter quarter with no major releases
▪ The timing of launches and updates have a big impact on our business
▪ Making the Y -o-Y comparison difficult in some periods
▪ Proactively managing the health of our business
▪ Comprehensive business optimization efforts
▪ Expected to generate annual cost -saving of 103 MSEK
▪ Selectively investing in compelling opportunities for growth
▪ S6 acquisition is a great fit for Daybreak and the group
▪ Palia is expected to be another longtail live service game with nice upside
▪ Transaction structured smartly with favorable risk -reward balance
▪ Outlook for the year still achievable
▪ Performance for the first half of the year not indicative of our full year expectations
▪ Major product and content releases mostly coming in Q3 and Q4
▪ Remain on track and are working hard to deliver against our published targets
▪ However, near -term risks remain elevated with the ongoing market challenges

Q&A