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Annual Report 2019 Annual Report 2019 Content ASTRALIS GROUP ANNUAL REPORT 2019 ANNUAL REPORT 2019 CONTENT MANAGEMENT’S FINANCIAL REVIEW STATEMENTS Our story and ASTRALIS GROUP A/S Business at a glance 3 Statement by Management 25 Letter to Shareholders 5 Independent Auditor’s Report 26 Key financial highlights 7 Astralis Group A/S Financial Statements 28 Financial Review 8 Parent Company Our results – Teams 10 Financial Statements 40 Outlook 12 Business model and Strategy 13 OTHER INFORMATION The Market 17 Astralis Group Risk Management 20 Management ApS Consolidated Financial Statements 48 Governance 21 Company Information Board of Directors 22 and Contact Data 57 Investor Relations 23 ASTRALIS GROUP 2/58 ANNUAL REPORT 2019 Management'S REVIEW OUR STORY AND BUSINESS AT A GLANCE Astralis Group is a Copenhagen-based company with an international Dedicated focus build relationships with different audiences, focus and outlook, holding a robust track record of developing esports Astralis Group is committed to building top allowing them to position themselves best teams and brands with consistent performance and value. competitive and global esports brands. Being toward these, while collectively reaching an a leader in esports, we are able to fulfil our ever larger mainstream audience. vision of building the most loyal, emotionally connected global community in esports by Scalable business model Astralis Group is a Copenhagen-based Players – both casual players and attracting talented players, sponsors, and Astralis Group has built a flexible and company with a global focus and outlook, professionals, get inspiration to improve their audiences - professional, endemic and scalable business model which makes holding a robust track record of developing performance by watching Astralis Group’s mainstream alike. it possible to grow into the new areas of esports teams and brands with consistent teams, and act as a talent pool for potential esports, reaching new markets and a broader performance and value. future players. Proven performance model audience. Also, this will make us attractive to The performance model is the organizational new players, teams, partners and sponsors, Astralis Group was established in 2019, Leagues and tournaments – which are the setup through which Astralis Group and we will be able to expand into new but the activities have a history that can main platforms where Astralis Group’s teams is building top-performing teams. Our media and new types of tournaments and be traced back to 2016 where Nikolaj attract large audiences to watch and follow, performance model relies on a method merchandise. Our common resources, Nyholm, Co-CEO, and Jakob Lund Kristensen, take home titles and prizes, simultaneously of scouting, training, and working with management and processes are laying the CCO, founded RFRSH ApS. Following a promoting and strengthening the teams’ players as professional athletes in optimal ground for an effective brand building and management buyout in August 2019, the brands. surroundings. This includes an established expansion. Astralis and Origen team activities became internal infrastructure of coaches, technical the starting point of a new dedicated team Commercial partner brands – connecting and staff, and support processes that improves Highly experienced management owner focus at Astralis Group. engaging with Astralis Group’s broad and the long-term competitive performance and The management of Astralis Group consists loyal audience with products and content builds a strong base around the teams and of a Board of Directors, an Executive Astralis Group is the indirect sole owner tailored to the individual team. emerging talent. Management group and Senior Management. of three esports teams across different All are highly skilled and professional esports titles – Astralis (Counter-Strike), Publishers – setting the rules of competitions Balanced team portfolio managers, covering different, specific parts Origen (League of Legends), and Future FC and hold power in terms of game format and Astralis Group establishes team brands as of the overall and day-to-day business (FIFA). The first two teams are known for their content, which Astralis Group’s team must a portfolio, enabling the brands collectively operation; from laying the strategy of Astralis record-breaking competitive performance and constantly adapt to stay #1, emphasizing the to reach the widest possible fanbase. To Group, through building brands and brand the latter for its high-ranking team members. viability of the performance model. build the brands, resources and processes engagement, to hiring, monitoring and are pooled within the company. Our branding training players and teams within the three Our stakeholders Our equity story model builds on each team to establish and current business areas. Astralis Group operates in the esports We define the reason to invest in Astralis its values and voice toward their specific ecosystem, consisting of several Group by these five core strengths: audience. Teams within Astralis Group stakeholders, of whom Astralis Group is closely interlinked with four: ASTRALIS GROUP 3/58 ANNUAL REPORT 2019 Management'S REVIEW Astralis Group A/S was founded on 31 July 2019 and the legal group was established 14 August 2019 where Astralis Group A/S acquired Astralis Group Management ApS and subsidiaries. Astralis Group Management ApS was ASTRALIS GROUP A/S founded 30 October 2018 as RFRSH Teams ApS and renamed Astralis Group CVR NO. 40694072 Management ApS 8 November 2019. Astralis Esport ApS was founded 4 December 2015 as Spirit of Amiga ApS and renamed Astralis Esport ApS 21 january 2016. Origen Esports ApS was founded 30 October 2018 as NewCo Esport ApS and Origen ASTRALIS GROUP Esports ApS 24 May 2019. MANAGEMENT APS Future Football Club ApS the newest company CVR NO. 39990970 in the group was founded 28 October 2019. ASTRALIS ORIGEN FUTURE FOOTBALL ESPORT APS ESPORTS APS CLUB APS CVR NO. 37275506 CVR NO. 40010521 CVR NO. 40900861 ASTRALIS GROUP 4/58 ANNUAL REPORT 2019 Management'S REVIEW LETTER TO SHAREHOLDERS 2019 was a significant year for Astralis Teams and performance The result before tax Future Football Club throughout 2019: Jack & Jones, Unibet, Group. In July the company was officially In 2019 Astralis won their 3rd consecutive was DKK 1.0 million in 2019 (Oct-Dec). Secretlab, Turtle Beach, Logitech, OMEN by founded and has constituted a legal group Major and 4th Major title in total, which is HP, Nocco, Synsam and Audi. from 14 August 2019 after a management unparalleled in Counter-Strike history. The Astralis Group Management operates the buyout of the teams. In December we were team won a total of 6 tournaments in 2019, performance team that supports all teams Results – full year amounts officially listed on the Nasdaq First North cementing their position as the best team in and players in the group as well as being the The result for Astralis Group Management Growth Market with an oversubscription of the world. management company of the Juventus FC was DKK -9.3 million in 2019. 77.55 pct. Pro Evolution Soccer team. The result before tax for Astralis Esport was The full year net revenue for the group was Astralis Group is a global leader in the fast- DKK 2.9 million in 2019 (full year). Commercial DKK 48.6 million in 2019, which is DKK 5.6 growing international esports industry with On the commercial side, on behalf of the million higher than the financial guidance an approx. 450 million viewers in 2019. Following an impressive debut in LEC, teams, Astralis Group entered into or given in the prospectus for the Initial We build high-performing teams, global the European leg of the global League of extended a range of commercial partnerships Public Offering of DKK 40-43 million. The brands, engaging media channels and solid, Legends tournament, where Origen was only with global, regional and local brands negative EBITDA of DKK -22.7 million was innovative commercial partnerships. surpassed by one team in the Spring Season, the team ended just one match short of Astralis Group consists of the three team reaching the global finals. In November three brands Astralis in Counter-Strike, Origen in players were replaced and a new, strong League of Legends and Future FC in FIFA. The roster was built, so far tied for first place in teams appeal to separate segments of fans the 2020 season. and spectators while collectively reaching a “We are global pioneers in the larger mainstream audience. The result before tax for Origen Esports was DKK -29.3 million in 2019 (full year). billion dollar esports industry and The main asset for value creation in Astralis Group is our commercial platform which Established in October 2019, Future FC already stand on solid ground. We builds on our teams’ performance and the is the youngest addition to the Astralis strength of each individual brand, enabling Group portfolio. Future FC has 3 players have the best performing Counter- us to reach and engage a growing, global participation in the global FIFA system of audience. tournaments: Fatih Üstün from Denmark (on Strike team of all time and millions the national team), Roee Feldman from Israel of dedicated fans around the world” Value is created either directly through (on the national team) and Stephanie Luana merchandise and other fan products or da Silva Santos from Brazil (one of only 2 NIKOLAJ NYHOLM, FOUNDER AND CO-CEO indirectly through commercial partnerships female professionals in FIFA). The players and media deals. have performed to expectations and spent most of 2019 getting used to working under the Astralis Group performance model. ASTRALIS GROUP 5/58 ANNUAL REPORT 2019 Management'S REVIEW slightly lower than the guidance given in the Entering a long term strategic league and during 2019 engagement rates grew prospectus with a range between DKK -20- partnership and becoming co-owners of ESL solidly. Through a renewed focus on content 22.5 million. Pro League as well as signing with BLAST and media in Spanish, we expect to grow the Premier for the 2020 season, is expected to fan base in Origen’s main markets in 2020.
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