Initial Public Offering – Nasdaq First North Growth Market Growing Danish Game Studio Entering New Playing Field
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INITIAL PUBLIC OFFERING – NASDAQ FIRST NORTH GROWTH MARKET GROWING DANISH GAME STUDIO ENTERING NEW PLAYING FIELD FINANCIAL AND CERTIFIED ADVISER Page 1 WWW.TROPHY-GAMES.COM LETTER FROM THE CEO Dear Investor Our goal at Trophy Games has from the beginning been to develop and publish engaging quality games. We are a passionate team as well as dedicated gamers, which is why we bring games to the market that we would play ourselves. This philosophy has brought vast growth opportunities, high long-term retention rates, top industry monetization and loyal users who continuously keep playing our games. By tapping into an attractive market, we have experienced substantial growth rates that we are confident will continue. In order to further accelerate this growth journey of Trophy Games, we will pursue several organic and acquisitional growth initiatives that will continue to strengthen our long-term game play. As such, listing on the Nasdaq First North Growth Market will be extremely fulfilling in realizing our growth potential. Unlike the many businesses that have been detrimentally affected by the global COVID-19 pandemic, we were able to draw advantage of several circumstances produced by the pandemic as games are increasingly playing a pivotal function in society as a pillar of entertainment, social connection and relief. We believe that this trend will continue EV DKK 160m to surge in the time to come. (pre-money) We strongly believe in the power of our people at Trophy Games. Our Executive Target raise Management consists of highly competent people, complemented by a Board of Directors DKK 40 - 59.3m who has extensive experience within internationalization, strategy, M&A and legal. Together, we are a strong team. Subscription period April 7 – April 20, 2021 It is our aspiration to become a leading strategy game studio, and with our current solid game portfolio, promising upcoming titles, an extraordinarily talented and skillful team as Listing day well as a favorable market outlook, we are certain that we will succeed. It is therefore a Søren Gleie April 27, 2021 great pleasure that we invite investors onboard our exciting growth journey. CEO & Founder SØREN GLEIE, CO-FOUNDER & CEO TROPHY GAMES DEVELOPMENT A/S Page 2 EQUITY STORY – FROM PASSION TO BUSINESS Growth journey has set up Trophy Games to take the business to the next level and capitalize on its back-to-back growth Rapid self-financed annual growth since incorporation Already in 2006, we were gamer 35 nerds with a special passion for football 30 manager games and tired of the market having 25 no great online multiplayer football manager game, so we decided to make our own, and 20 Trophy Manager (TM) was born. in in MDKK 15 We spent the following eight years refining and 10 scaling TM. In 2012, our second game, Football Figures 5 Management Ultra (FMU), was released – also as a browser game originally as TM. FMU had a 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 different approach on how to generate revenue -5 and featured fast gameplay. Quickly, FMU Revenue EBITDA EBITDA surpassed TM in both revenue and revenue per user and combined with the birth of the Note: As of FY2019, Trophy Games has adopted a new policy regarding activation of development costs. EBITDA figures for FY2019 and FY2020 are presented according to new policy. smartphone market and the fact that TM retained fantastic long-term retention as well as COMPANY STRUCTURE made a superb profit over the following years – even though we moved most costs towards FMU – a new corporate strategy was hatched. This is now the foundation of our growth. We are proud that our growth has been purely self- financed since the initial investment that we received in 2006, and we are ready to take it to 100% subsidiary the next level. SØREN GLEIE, CO-FOUNDER & CEO TROPHY GAMES DEVELOPMENT A/S Trophy Games Development A/S Trophy Games Publishing ApS Page 3 HIGHLY COMPETENT EXECUTIVE MANAGEMENT AND BOARD OF DIRECTORS Extremely passionate and leadership-oriented Executive Management Highly experienced and driven Board of Directors SØREN GLEIE JAN DAL LEHRMANN Chief Executive Officer & Co-Founder of Trophy Chairman of the Board Games Development Impressive career within entrepreneurship and venture Founding partner and huge computer gaming nerd with capital with a proven record of several successful proven strategic and leadership skills. investments as well as exits. DANIEL LUUN PERNILLE NØRKÆR Chief Executive Officer of Trophy Games Publishing Member of the Board More than 14 years at Trophy Games with an immense More than 15 years of vast experience with tech passion for computer games, game design, UX and transactions, M&A, legal and general advisory for Danish monetization strategies. and international companies. CARINA VIENBERG RENE EGHAMMER Interim Chief Financial Officer Member of the Board Experienced financial manager and CFO from multiple Profound expertise in accounting, business controlling corporations and e-commerce companies. and M&A from the role as CEO at Karsten Ree Holding as well as earlier career at Carlsberg Group. Management Team Trophy Games’ team values Board of Directors Long track record International Creativity and Flexible work Extensive Extensive board Tech transactions of successful game experience and freedom schedule employee training room experience and M&A developments recognition experience Strong hands-on Long track record Solid finance Cross-collaboration Knowledge sharing Care for the Multiple successful experience in the of successful background environment exits gaming industry growth ventures Page 4 KEY INVESTMENT HIGHLIGHTS Strong foundation and 30.8m +54% 110.5m great expectations for Revenue in 2020 Revenue CAGR Expected revenue in 1 the future (DKK) (2019-2023E) 2023 (DKK) High growth market 159bn 9.3% 50% driven by significant Total value of the Y-o-Y growth in the Share of mobile 2 market trends gaming market 2020 gaming market gaming in the global (USD) 2019-2020 gaming industry High customer generation and retention Less than Above 3% 5% 25m through superior data- Annual paying player Conversion rate from shrinkage in retain Lifetime downloads 3 backed game free to paying user development mode IPO proceeds will fuel 40% 30% 10% high growth after initial Of IPO proceeds into Of proceeds into Of proceeds into 4 public offering acquisitive growth new game investments in production startups existing portfolio Page 5 TROPHY GAMES STRIVES TO BECOME A LEADING INTERNATIONAL GAME STUDIO From humble beginnings to an international growth case Games developed for an attractive player segment Trophy Games was incorporated in 2006 and today consists of 23 WEEKLY GENDER AGE dedicated employees, of whom 15 are developers. The company is led by Co-Founder and CEO, Søren Gleie, since 2006. LOGINS DISTRIBUTION DISTRIBUTION Trophy Games has adopted a freemium business model, resulting in a considerably greater install base than what could have been achieved by using alternative, up-front payment revenue models. 4.7 82% AGE GROUP DAYS MALES 25-44 (45%) Trophy Games truly caters to the multitude of international gamers with its availability in 20+ different languages and more than 140 13-17 18-24 nationalities among its userbase. Active Inactive Male Female 25-34 35-44 45-54 55+ The main revenue stream of Trophy Games derives from mobile Unknown gameplay, where the company currently has five games in its portfolio The games are predominantly developed for a specific attractive demographic and another two in the pipeline. population consisting of well-educated males in the age group of 25-44. Significant investments in upcoming titles have already been undertaken Substantially growing cash-generating portfolio provides huge upside FIVE Warhammer AoS: Soul Arena TM FMU Pro11 WSM Futuball 12 35 10 30 Long game life-time 8 provides huge upside in in MDKK 25 and predictable cash 6 20 flow in tail-off period costs 4 15 2 10 0 2018 2019 2020 Total 5 Development Revenue MDKK per gamein Trophy Games has over the past 3 years incurred upwards of 11.4 0 MDKK in development costs associated with the creation of FIVE and Warhammer AoS: Soul Arena. Both titles are to be released in 2021. Page 6 TROPHY GAMES IS FIRMLY SITUATED IN AN EXPONENTIALLY GROWING MARKET The global gaming market is growing exponentially The mobile gaming market constitutes 50% of the global gaming industry The global gaming industry is one of the most rapidly growing industries among all tech-enabled entertainment services, with the Browser PC Games, 2% global mobile gaming market outperforming other gaming segments. Downloaded/ Boxed PC Strategy is the preferred theme among all game categories played on Games, 21% mobile devices in terms of revenue generation and will only augment Console 2020 Total its superiority in the coming future. games, 27% USD 159.3Bn Games are increasingly playing a pivotal function in society as a pillar +9.3% of entertainment, social connection and relief. Y-o-Y Smartphone/ tablet games Increased global connectivity and technology advancements that through app, enable greater access to video games will grow player counts 50% significantly, especially in third-world countries across the globe. Source: newzoo.com/gamesreport Significant increase in player count fuels the growth of the mobile market COVID-19 has accelerated the growth of the gaming market significantly Casual Gamers (<5 hours weekly) 3.07 2.95 2.81 Gamers and Serious Gamers (>5 hours weekly) 2.69 2.55 120% 2.42 2.26