Company Presentation November 2018 Important information Important - PowerPoint PPT Presentation

Company Presentation November 2018

Important information Important information NO NOT T FOR R DISTR TRIBUTION OR PUBLIC UBLICATI TION, DIRE RECTL TLY Y OR IND NDIRECTLY LY, WI WITH THIN OR TO THE UN UNITE TED STATE TES, AUS USTRA TRALIA LIA, HONG KO KONG NG, JAPAN, CANADA, SWI WITZ TZERL RLAND, SOUTH TH AFRI RICA OR NE NEW W ZEALAND OR IN N ANY NY OTH THER R JURISDI URISDICTI TION WH WHERE RE THE DISTRI TRIBUTI TION OR PUB UBLICATION OF THIS PRESENTA TATION WO WOULD BE UN UNLA LAWFU FUL. This presentation is not and does not form a part of any offer for sale of securities. Copies of this presentation are not being made available in, and may not be distributed or sent into, the United States, Australia, Hong Kong, Japan, Canada, Switzerland, South Africa or New Zealand or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures. This presentation is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction. This presentation is not a prospectus for the purposes of Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the "Prospectus Directive"). Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe," "expect," "anticipate," "intend," "estimate," "will," "may," "continue," "should" and similar expressions. The forward-looking statements in this announcement are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Stillfront Group AB (publ) believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this announcement by such forward-looking statements. The information, opinions and forward-looking statements contained in this announcement speak only as at its date and are subject to change without notice. 2

AGENDA Introduction to Stillfront 1. 2. Investment highlights Appendix 3 3

Introduction to Stillfront Stillfront – a market leader in online strategy-games Global presence 1) Stillfront at a glance • Market leader in the genre free to play browser and mobile strategy-games, with a loyal customer base and games with long lifetime Europe 51% • Well-diversified game portfolio with established blockbuster IPs and many small to mid- sized growing and profitable IPs North Am 27% • 4.2 million monthly users, MAUs, and 1.0 million daily users, DAUs 1) Asia 17% • Main markets by revenue are US, Germany, MENA, France and UK Africa 0.7% • Headquarter in Stockholm with a group of ten studios operating in Bulgaria, Germany, South Am 2.5% Oceania 2.2% Jordan, Malta, Romania, Sweden and United States with a total of 460 professionals Sales Offices Massive track record 1) Game Studios All time marketing spend 400m €200m with high ROI consumers to date Empire € >1bn 4.2m MAU is one of the biggest strategy games avg. # of MAUs in lifetime deposits of all time Note: 1) Excluding Imperia Online. 4

Introduction to Stillfront The history of Stillfront 2019 2019 2018 2018 Targ rget et listing g on n Nasd Nasdaq q Stoc ockh khol olm 2017 2017 # 27 games 3) 3) main n marke ket 2016 2016 # 460 0 empl ploy oyee ees # 17 games 2) 2) 2015 2015 # 10 studi dios os # 129 9 empl ploy oyee ees # 8 games es ers 1) 1) # 4.1m 1m us user 2014 2014 # 8 stud udios os # 96 employe oyees es # 5 games es # 0.9m 9m us user ers 1) 1) 2013 2013 # 6 stud udios os # 45 employe oyees es # 4 games es SEK K 1.1bn 1bn in n rep epor orted ed # 0.3m 3m us user ers 1) 1) 2012 2012 # 4 stud udios os # 41 employe oyees es # 4 games es reve evenu nue SEK K 166m 66m in n # 0.3m 3m us user ers 1) 1) # 4 stud udios os # 24 employe oyees es MCAP: SEK K 3,997 997m 4) 4) # 3 games es repor eported ed reve evenu nue SEK K 95m 5m in n rep epor orted ed # 4 stud udios os # 17 employe oyees es MCAP: SEK K 1,227 227m reve evenu nue SEK K 55m 5m in n rep epor orted ed # 3 stud udios os MCAP: SEK K 444m 44m reve evenu nue SEK K 29m 9m in n rep epor orted ed MCAP: SEK K 328m 28m reve evenu nue SEK K 21m 1m in n rep epor orted ed reve evenu nue SEK K 17m 7m in n rep epor orted ed reve evenu nue Com ompany y unde under pr priv ivate ownership ip Com ompany y public publicly ly traded Highly successful strategy of acquiring, integrating, developing and growing game studios with proven track record of generating value Source: Factset. Note: 1) Users refer to monthly active users (MAU). 2) Excluding Goodgame studios. 3) Including Goodgame studios and Imperia Online. 4) MCAP as at 2 November, 2018. 5 5

Introduction to Stillfront Stillfront has achieved financial stability in a hit driven business Utilisationof two risk-mitigating strategies Visualisationof Stillfront’s data driven business model Stil Stillfront is po posi sitioned as a low ow risk sk game de developer, pu publi blish sher and nd op operator Gaming industry characterised by large number of new releases with few large- scale successes stories. Stillfront uses two pri primary str trategies s to o miti tigate this his risk sk. with a diversified portfolio of primarily free to play strategy-games Ga Games with h long ng lifetime Diver versified ed po port rtfol olio Operating a large number Developing games with of games long lifetime value Harvesting an Gam ames s as as a a Hob obby ultra-loyal user base with continued Highly profitable and engagement low-churning user base Mon onetis isatio tion Building an attractive offering with EBI BIT Gam ames s as as a a Ser Service personalised content drives Data driven long-term user engagement Capi Ca pita tal l Grow Gr owth th effi ficie ienc ncy live op’s Retentio ion Low ow ris isk Focus on gaming experience and user Free to pla Fr play acquisition to support later conversion Diver versified ed po port rtfol olio o of games es with h Data driven with into paying users 30 y. long ng lifet etime e value high conversion rate 10 10 Stillfront utilises both strategies by Longest Con onversio ion combining games with long lifetime, Game lifetime to onl nline e free ree to pl play y strat rategy-games, studios date of Players Players Players Players Players Players together with a di diver ersified ed po port rtfol olio game Players Players Players Players Players Players with global presence Players Players Players Players Players Players Players 6 6

Introduction to Stillfront A data driven business model The life cycle of consumers – tracking performance is key to scale user acquisition with positive ROI Us User er acqu quisition Active e user sers Paying ng Us User ers Li Lifeti fetime e Va Value ue • Performance marketing is key • • • Continuous work on Pricing strategies, expansion High quality data and to scalable success improving retention and of content and tailored predictive models, matched stickiness of the game – offerings are ways to improve with a skilled performance • Store featurings and partners particularly onboarding and conversion and revenue per marketing team, provides drive large volumes of traffic early game levels user high certainty in payback • Predictive models of Lifetime times and consistent good • • With time the retention Conversion from active users Value guides user acquisition marketing ROI smooths out as the stickiness (AU) to paying users (PU) with spending • increase on a stable level increased commitment drives With ARPMPU stability the • Buying traffic at scale with creating opportunities' for increase in revenues lifetime value increases each positive ROI as the goal conversion to paying users month and increases ROI Revenue Time Stillfront has a unique strategy for performance marketing leveraging on accumulated user data Accumulated user data, key competitive advantage and data driven improvements drives profits for years beyond initial payback time Note: 1) Retention: Share of users that are still active. 2) Conversion: Share of active users that are paying. 3) Stickiness: Daily active users (DAU) as a share of monthly active users (MAU). 4) ARPMPU: Average Revenue Per Monthly Paying User. 7