a leading free-to-play powerhouse

A leadingfree-to-play powerhouseInterim report

First quarter 2021

2021

STILLFRONT AT A GLANCE

Headquartered in Stockholm with a group of studios operating across the globe

1,250professionals

A leading free-to-play powerhouse of 19 gaming studios creating significant operational synergies

60 million MAU and 12 million DAU in March (39 million and 7 million in Q1)Main markets by revenue are US, Germany, MENA, UK and France

60million

A diverse and evolving game portfolio with two common themes; loyal users and long lifecycle games

North Am 53%

South Am 2%

Europe 32%

Asia 10%

Oceania 3%

Africa 1%

Offices

Sales

Game highlights in the first quarter• 10 new titles from acquired studios added to the active portfolio

• Word Collect and Trivia Star consistently ranked within top 3 downloaded apps in US in Word and Trivia categories in Q1

• Successful BitLife launch in the UK in Q1, #1 downloaded app on iOS in late January

• Conflict of Nations: WW3 continues to scale well on mobile and showing strong performance since September launch

• Legendary Dungeon event in Shakes & Fidget in March lead to +25% increase in monthly bookings

• Fashion Nation from Nanobit in soft launch in USA, showing strong early metrics

• Albion Online mobile version proceeds to next testing milestone, with launch scheduled for June

• Horus Heresy: Legions onboarding with marketing Stillhubcompleted, lead to tripling of marketing investment on product by late Q1

New games in the active portfolio

Games currently in soft launch/development

HIGHLIGHTS FROM THE PORTFOLIO

20+

3+

691

1319

+9.5%

+90%

-8.9%

Q1'20 Organic Acquired FX Q1'21

2240

29523462

39914619

438 554 635 743 958

Q1'20 LTM Q2'20 LTM Q3'20 LTM Q4'20 LTM Q1'21 LTM

691

11921027 1080

1319

148 216 164 215363

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

NET REVENUE, UAC DEVELOPMENT & ORGANIC GROWTH

Q1 Net Revenue growth of

91%YoY

4

UAC, MSEK

Net Revenue, MSEK

UAC, % of Net Revenue

Q1 UAC in relation to Net Revenue

28%

COMMENTS

• Strong revenue growth of 91% in Q1, driven primarily by growth from acquired studios

• Organic growth of 9.5% in Q1, with varied contribution across the portfolio

• Tough comparison numbers had negative impact on organic growth in late Q1 and we expect a negative organic growth in Q2

• Revenues in the quarter were negatively impacted by FX effects of -8.9% compared to the same period last year, mainly due to the weaker USD

Q1 organic growth, excl. FX effects

9.5%YoY

21%

18%16% 20%

20%

19%

19%18%

28% 21%

732

1028

1272

14931713


213

463419 399

432

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

ADJ. EBIT DEVELOPMENT

Adj. EBIT growth of

103%YoY

5

Adj. EBIT, % of Net Revenue

Adj. EBIT, MSEK

Q1 Adj. EBIT in relation to Net Revenue

33%

COMMENTS

• Continued high profitability with Adj. EBIT of 33% in Q1

• Maintained high profitability despite increase in UA spend

• Larger share of advertising revenues have had a positive impact on profitability in the quarter

• New product mix in the group with a larger share Casual & Mash-up games and more titles in growth phase will continue to drive UA spend going forward

31%

39%41% 37%

33%

35%

37%

37%

LTM Adj. EBITin relation toNet Revenue

37%

33%37%

664

1170

9501046

1261

148216 164 215

359

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

365

846 811 877

1159

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

9785

22794 19602 21658

39410

60153

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Mar'21

ACTIVE PORTFOLIO: TOTAL

+ 3 0 3 % Y o YM A U ( ‘ 0 0 0 ) + 2 1 8 % Y o YM P U ( ‘ 0 0 0 )+ 2 3 7 % Y o YD A U ( ‘ 0 0 0 )

2214

46994145 4253

7458

3.3

2.7 2.5 2.7 1.9

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

- 4 3 % Y o YA R P D A U ( S E K )

+ 9 0 % Y o YB o o k i n g s ( ‘ 0 0 0 )

+ 1 4 3 % Y o YU A C ( M S E K )

U A C , % o f B o o k i n g s

28%

22%

18%

17%21%

Casual & Mash-up;

39%

Simulation, Action & RPG;

33%

Strategy; 28%

52Games

15%Ad bookings

Mobile

39%Casual & Mash-up

77%DIVERSIFIED PORTFOLIO COMMENTS

• 10 new titles added to the active portfolio in Q1 following the acquisitions of Sandbox, Super Free and Moonfrog

• Advertising bookings increased significantly in the quarter, mainly driven by the addition of Super Free for two months in the quarter

• Mobile bookings remained steady quarter-over-quarter at 77%, but grew from 65% during the same period last year

• In March 2021, the first month with Sandbox, Super Free and Moonfrog all being included in the group, MAU and DAU amounted to 60m and 12m, respectively

2214

4699 4145 4253

7458

12065

3.3

2.7 2.5 2.7 1.9

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Mar'21

- 2 % Y o YD A U ( ‘ 0 0 0 )

+ 1 4 % Y o YA R P D A U ( S E K )

531600

477 513 519

6.6 7.3 7.1 7.2 7.5

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

318

398

310338 351

63 7652 58 76

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

28533349

2752 2735 2708

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

ACTIVE PORTFOLIO: STRATEGY

12Games

0%Ad bookings

Mobile

45%Europe

66%COMMENTS

• Totals 28% of bookings in the active portfolio

• YoY growth of 10% mainly driven by mid-sized products and Conflict of Nations

• Call of War, Supremacy 1914 and War and Peace continued its strong performance into Q1

• Conflict of Nations: WW3 continued to deliver exceptionally well, growing by more than 200% for its second consecutive quarter

• Nida Harb III, first released in 2017, has entered a mature phase and declined year-over-year

- 5 % Y o YM A U ( ‘ 0 0 0 ) + 1 0 % Y o YB o o k i n g s ( ‘ 0 0 0 )

+ 1 9 % Y o YU A C ( M S E K )


SELECTED TITLES

17%17%

19%

20%22%

100116

100111 117

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

+ 1 7 % Y o YM P U ( ‘ 0 0 0 )

972

12731024

14421643

2.7 2.8 2.7 2.8 2.8

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

+ 6 9 % Y o YD A U ( ‘ 0 0 0 )

+ 3 % Y o YA R P D A U ( S E K )

242

322

257

373415

67 68 48

103 120

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

3604

5364

3454

76688761

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

ACTIVE PORTFOLIO: SIMULATION, RPG & ACTION

23Games

5%Ad bookings

Mobile

44%N. America

62%COMMENTS


• YoY growth of 72% driven by newly acquired titles and continued strong performance from key titles

• Strong start from Albion Online, which was included for the full quarter

• Big Farm: Mobile Harvest and Shakes & Fidget both continued to perform well in Q1

• Share of mobile bookings decreased to 62% with the addition of Albion Online

• Ad bookings steady quarter-over-quarter at 5%

• Kixeye’s titles delivering below expectations in Q1, negatively effecting organic growth

+ 1 4 3 % Y o YM A U ( ‘ 0 0 0 )

153197

164

288341

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

+ 1 2 3 % Y o YM P U ( ‘ 0 0 0 ) + 7 2 % Y o YB o o k i n g s ( ‘ 0 0 0 )

+ 7 8 % Y o YU A C ( M S E K )


SELECTED TITLES

28%

19%

21%

28%

29%

711

2827 2644 2298

5296

1.61.7 1.6 1.6 1.0

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

D A U ( ‘ 0 0 0 )

A R P D A U ( S E K )

105

450383

334

496

1772 64 54

163

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

ACTIVE PORTFOLIO: CASUAL & MASH-UP

3327

1408113396

11256

Q4'19 Q1'20 Q2'20 Q3'20 Q4'20

17Games

33%Ad bookings

Mobile

73%N. America

98%COMMENTS


• Super Free and Moonfrog have delivered in line with expectations

• 9 new titles added from Super Free (2 months) and Moonfrog (1 month)

• Storm8’s titles continue to perform well and both Property Brothers Home Design and Home Design Makeover have stabilized quarter over quarter

• Ad bookings increase to 33%, primarily driven by Super Free’s titles

M A U ( ‘ 0 0 0 )

112

533 546478

700

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

M P U ( ‘ 0 0 0 ) B o o k i n g s ( ‘ 0 0 0 )

U A C ( M S E K )


SELECTED TITLES

16%17%

16%

3327

14081 13396 11256

27941

49156

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Mar'21

33%

3327

14081 13396 11256

27941

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

FinancialhighlightsFirst quarter 2021

FINANCIAL HIGHLIGHTS Q1 2021

Revenue growth of 91% paired with Adj. EBIT margin of 33%

Cash generative business with 249 MSEK of cash flow from operations

after change in NWC

Continuously strong financial position with a cash balance of 1,225 MSEK and an undrawn long-term credit facility of

1,103 MSEK

Strong underlying financial performance and a strong financing platform creates financial flexibility for further growth and market consolidation through M&A

1.3x

11

Leverage at conservative levels, below the leverage target of 1.5x, despite recent M&A activity

INCOME STATEMENT Q1 2021

MSEK Q1 2021 Q1 2020Net revenue 1 319 691 91%Platform fees -320 -189 70%Gross profit 999 502 99%Gross profit margin 76% 73% 3 pp

User acquisition costs (UAC) -363 -148 145%UAC/Net revenue -28% -21% -6 ppOther external expenses -57 -53 8%Other external expenses/Net revenue -4% -8% 3 ppPersonnel expenses -194 -122 59%Personnel expenses/Net revenue -15% -18% 3 ppAdjusted EBITDA 498 254 96%

Depreciation & Amortization (non PPA) -66 -42 59%Adjusted EBIT 432 213 103%Adjusted EBIT margin 33% 31% 2 pp

Items affecting comparability (IAC) -35 -50 -29%Amortization of PPA items -144 -56 154%EBIT 253 106 138%

Net financial items -45 -4 1040%Result after financial items (EBT) 208 102 104%

Taxes for the period -60 -26 134%Net profit 148 77 94%

CASH FLOW AND BALANCE SHEET METRICS

CA SH FLOW STATEMENT BAL ANCE SHEET METRICS

MSEK Q1 2021 Q1 2020

Cash flow from operations (before NWC) 387 120 222%

Change in NWC -138 43 -423%

Cash flow from operations (CFFO) 249 163 53%

Cash flow from investment activities -1 475 -2 401 -39%

Cash flow from financing activities 1 400 2 358 -41%

Cash flow for the period 174 120 44%

Last 12 months Q1 2021 Q1 2020

CFFO (-IFRS 16 lease repayment) 1 299 520 150%

- of which NWC -103 22 -567%

Acquisition of intangible assets -489 -283 73%- Divided by CFFO (-IFRS 16 lease repayment) -38% -55% 17 pp

Free Cash Flow 810 236 243%

EBITDA last 12 months 1 811 790 129%

Cash conversion rate 0.45 0.30 50%

1787

665

1225

1814

3116

1.2x

0.4x

0.7x0.9x

1.3x

0

0.5

1

1.5

2

2.5

3

0

500

1000

1500

2000

2500

3000

3500


Net debt, MSEK

Leverage ratio proforma

6001,000

2,647

1,103

0

500

1000

1500

2000

2500

3000

3500

4000

2021 2022 2023 2024 2025

Bond maturity

RCF Maturity

- of which utilised

3 750MSEK

MSEK

Summary &OperationalupdateFirst quarter 2021

Proactive approach to IDFA removal• During April, Apple started rolling out changes to identifier for

advertisers (IDFA) as a part of the iOS 14.5 update

• Previously, 20-40% of iOS players chose to manually opt out from app tracking in iOS settings

• As players now have to opt in, the numbers of players allowing app tracking is expected to decrease going forward

• CPI is expected to drop short- to mid-term while the industry adapts

• Stillfront has a high provider diversification, which gives us an edge in comparing solutions and spotting scaling potential

• We have prepared for the IDFA updates since June last year, conducting extensive A/B testing and experimenting with selected studios

• Stillfront is well prepared to take on this change and we are confident in our ability to handle any limitations, as well as to quickly seize potential opportunities

APPLE’S IDFA CHANGES

Solid start to the year in line with our expectations• A solid start to 2021 with continued strong

growth and high profitability, in line with our expectations

• Strong pipeline of games entering soft launch in 2021

• Tough comparison numbers expected to lead to a negative organic growth rate in Q2

• Intensified process to transfer from First North to Nasdaq Stockholm’s main market

BUSINESS OUTLOOK

a leading free-to-play powerhouse

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