A warm welcome to Media and Games Capital Market Day here in Stockholm. It's great to see everyone back after summer. This day is both online and also here at Operat errassen. My name is Jenny Rosberg, and I support MGI here on the ground in Stockholm, so I will facilitate today's session. Today's session is on the back of a very strong Q2 report released yesterday, where the company outperforms the already strong comparison quarter last year. The management have been very active during the pandemic doing deals and also financing the deals. Today will be all about getting to know the people behind the deals and also the growth strategy going forward. As usual, on Capital Markets Day, we will have lots of slides in the presentations, but we will also have Q&A sessions in between. If you check the agenda, we will have a Q&A session after the deep dive in the games segment. Please engage all of those who are online and prep your questions, send them in, and also here in the room so we really get a live session here today. We will also have a Q&A session after the Media deep dive. At the end, we will also open up the phone lines so you can dial in, and we will show the dial-in numbers on the screen. I think actually, without further ado, I would like to welcome you up on stage, Remco. Great to have you here in Stockholm. Thank you. With that, I would also like to hand over this one. Thank you. Yeah. Thank you, Jenny. Welcome everybody, thanks for coming here, and thanks for zooming in, or how do you say it, interneting in. Great to be back in a live event. Yesterday we had some live interviews, that's really, really cool to see people moving again instead of on a Zoom conference, but really live and also here. Really happy that you're here. Sorry for those that couldn't make it, that's the reason you have a hybrid, how to say it, conference, where also people can, of course, get in via internet. I would like to get you through a bit of the more general things, then after me, the people that are really doing the work, they'll show what they're doing, what is happening, what has been happening in the last quarter. Altogether, I can say we are really happy with the second quarter and looking forward to some more good quarters, actually. Let me go through the presentation. As Jenny warned already, it's a lot of slides, but here we start. What is the aim of the Capital Markets Day? Basically, to give a bit of an update, to share deeper insights, and also give you the possibility to ask questions, because I know we are really asking a lot from our investors doing Gaming, which is already not that easy, and then also doing Media, which is even a bit more complex, and then even, well, not trying, even combining the two, which is even making it more challenging to understand. I'll provide an overview of the financials, of course, actuals outlook, and getting to know the team. Let's say part of the people are here, of the team, and of course, we have many more, but I think that's a good opportunity. At a glance, for those Yeah, there we are. You all, and most people here in the room know us, but for those that don't, maybe looking back a bit. It's always amazing how fast time goes. We started this in 2012. gamigo was owned by Axel Springer. It was a distressed Media company, and an M&A advisor calling, "Do you want to buy the company? They want to get rid of it." Original idea was just restructure it, sell it, and do something else, but it was the start of where we are here today. It has really been a great ride. We have now a combination of Gaming and Media. In both segments, we focus on sustainable revenue streams, so games that have long player lifetimes, where players are really in for a long time. Also on the Media side, customers that stay with us for a long time in mostly SaaS models. That makes life a lot easier because if you have a business model where you have to acquire the customer all the time again, it's much less steady and much more expensive, of course, from a customer acquisition point. A bit of history. We started, and that was really very well thought of in the beginning, only to build critical mass. If you want to be successful in Gaming, you need to have a certain size. If you're a small Gaming company, and that was what gamigo was when I came in, they had two games that they were preparing for launch, and I said, "Okay, today the company sucks, but after this, we will be the kings." They had two failures. That's really what's happening a lot in Gaming. Gaming, you need a portfolio approach. There's over 2,000 game launches each month, and if you can only bet on two games to launch, you shouldn't get into Gaming. That's the reason that we said we need to build critical mass, and the easiest way was to just buy companies, integrate them, and by that, to build it. That's also the reason that the first four years after we started, we didn't have any organic growth. We didn't even focus at it. After that, we started to focus on it because, of course, investors are asking, "Yeah, it's nice to buy. Everybody can do that. You need to show organic growth." I think we have really been showing that we were able, since 2018, to have more and more organic growth each year. Step three was really next to content. The second success factor for Gaming is users, getting new users in the game, launching games, where you also need users for, which is Media. That's the reason that we said, yeah, we want to get stronger on the Media side, on the user acquisition side, also selling ads. That was when we started to build up the Media arm. Now let's say the step four where we are is really an integrated Gaming and Media company, where there's still much more potential in further integrating and further working together. Some financials, Paul will go through that much more later. 40% year-on-year growth since 2014. Over 70% year-on-year growth since 2018. Yeah, EUR 109 million revenues in the first half year, almost doubled versus the first half year last year. We're really happy with the numbers. It's not only about revenues, of course, it's also about EBITDA and also having been able to increase the EBITDA margin. Listed since 2018 in Germany. That was a difficult ride. To really convince German investors that Gaming is cool and that a micro cap is worth investing in was not easy. Let's say we were also not so successful in it or whatever way you look at it. We're really happy that in October 2020, we did a listing in Sweden at Nasdaq here, and yeah, we were really very welcomed. That's also the reason that we're doing our capital markets day today in Stockholm. We're really extremely happy to be on the stock market here. Also three quarters of our trading volume now is in Stockholm and only a quarter in Germany. Yeah. You often see me or you see Paul, but there's many more people in this company. We have over 900 employees in over 25 locations. I want to give a little bit of guidance already and of course, what's next? We're growing fast, but we would like to get to a kind of EUR 500 million revenue within the next three years. If you look at our speed of growth, that should be possible. Latest in three years we would like to be there, but we're working on it. Going into detail, a bit of who's this company, the Board. Quickly introducing colleagues. Antonius on the right. Our latest addition, is a board member at freenet and a mobile company. Marketing background, so really strong on the marketing side. Independent Director. Elizabeth Para, a Canadian national living in London. Sorry, Antonius is living in Germany. Elizabeth's background in fund management, so very strong on the financial side. Tobias living in Germany, Düsseldorf, also Independent Board Member and having a background mostly in company communication, governance and as such, we have a really nice team where I'm then the fourth person, but also the executive part. Bit deeper into the organization where the work is done. Our C team, our top team. Jens over there, Paul over there. Jens- Christian Fritz, who just joined the company, but he has to work because we work in some M&A, so he wasn't able to join. Maren Fischer, our Head of Legal. Sabrina Gründemann taking care of all the operations, all the offices. Esther being here of investor relations and also ESG, and Sören also being here, investor relations. We have, let's say, broader company. We are integrating what we buy, but we have two units. One is Gaming and the other one is Media. On the G aming side, Jens is heading the part with Andreas, Miguel, Mervin, Thomas and Ulrike. Ulrike joining later. On the Media side we have Sameer, Chief Revenue Officer, Ionut, Chief Product Officer, and Stephanie Vandenberg-Smith heading our sales based in the U.S. Gosia, Malgorzata officially heading HR part. That's basically the top team managing the company and let's say many more than that. A bit about the owner structure. It's not very polite, I'm still holding quite a bit of the shares of this company with also colleagues and also board members. That's really nice to have ownership also here. There's a lot of aligned interest, I think. We're really, really happy that companies like Oaktree, Janus Henderson, Avanza, but also now a BlackRock and even a Fidelity are, let's say, willing to invest in our company and are trusting us to make more out of their money. Also thank you for that. We are of course working on further increasing our investor structure. Fact sheet. This is boring, I don't go through this too much. I mean, this will be on the internet, but office is in Malta. That's a point that I would like to emphasize. We are going to change that. That's something that we announced already. We want to get out of Malta because of the image of Malta and also we see that they're not that quick if something needs to happen on the more, I'd say, formal side. Relocation is a high priority for us. We wanted to move to Luxembourg. Euroclear has kind of killed that initiative because they have announced that they don't take any new countries that they will accept. We don't want our investors to get CDRs instead of shares, because that would have been the only alternative. What we are doing now, we have choice out of five countries. At the moment we are with lawyers, with tax specialists, with governance specialists looking at what country it will be. It will be, let's say, a more clean country than Malta if I may say so. That's what we're working on. That's really a high priority for us. Ideally, we would like to do it by the year-end because then we don't have to have different accountants during the book year. That's a high priority. We have A shares that are the only shares that are listed. We have B shares as a kind of reserve that we can use for M&A or for stock option programs, these kind of things. They were just allowed or let's say, also got into the books this year. Market segments, you know Frankfurt and Stockholm. We have a German bond, EUR 25 million. Also a few words about that. That is an unsecured bond we want to buy back in October this year. We can buy back prematurely, and we would like to make the structure a bit easier with only having a secured bond in Sweden, which is the Nordic bond up to EUR 350 million, where we announced yesterday that we want to tap it. We now have issued EUR 270 million and want to go to the EUR 350 million. Research coverage. Yeah, quite a lot. In the beginning, we had to pay for it. Now we get it for free. It is also better. The banks have come up. Yeah, happy with it. Thank you, analysts, and thank you, banks, for supporting us and covering us. Indexes. Yeah, we are some indexes. I am not going to read it. Speakers today, maybe very quickly. Paul, two words, three words about yourself. Is it on? Yeah. Paul, CFO of Media and Games Invest. Worked in a startup company, then investment banking, and since 2017, CFO of Media and Games Invest, and leading the financing, controlling, and investor relations part. Jens? Jens. Now the COO of MGI and CEO of gamigo Group. I joined gamigo backslash MGI back in 2012. I am taking care of the whole Game segment, living in Hamburg, and I like it here. The weather is very comparable to where I come from. Happy to be here. Ionut. Hi, everyone. Ionut Ciobotaru. I run product and engineering for the Verve Group, which is our Media side. I joined two years ago through the acquisition of my startup, which was a mobile SSP based in Berlin. I'm based in Berlin and have been in ad-tech for over a decade or more. Sameer. Hi, my name is Sameer, I am the CRO for the Media group, Verve Group. I think one of the best decisions of my life that at crazy times I joined the MGI Verve Group last year, I am really proud of that. I run the commercials, the marketing, and the operations for the Verve Group, we are on a roll. Good. The people that are mostly in the background, and we therefore always forget to mention, but it's Esther Hilsen, investor relations, and Sören also. Business update. I'll go through this much faster because they gave me 20 minutes for 30 slides, which is of course not enough, but I'll go through. Over 35 M&A transactions. Market cap has gone up substantially since we are listed in Sweden, so we're really happy with it. We now have the problem that in some portfolios, we have become such a big part that they even had to sell our shares because they were not allowed to have this. That's luxury problem, I would say. Employees, I mentioned the two segments. Yeah, games, over 10 so-called massive multiplayer games. People in there for very long time, really tied to the game, but we need to treat them very well, of course, and to give them always new content and to be really interacting with our gamers. Casual games, mostly in subscriptions or advertising based, and over 100 million registered gamers. On the Media segment, the number is really huge. 166 billion ads delivered in the last 12 months, working for over 5,000 advertisers. We're talking about computers, electronics, so this is not manual stuff. Otherwise this would, of course, not be possible. Revenue, I talked about. EBITDA also. Paul's going to go more into detail. We are at the moment almost exactly 50/50 Media and Games if you look at the Q2 segment. We have almost become a U.S. company with 63% of our revenues in North America, where we really see that it's a huge market where scaling is much easier than, for example, Europe, where you have all the different languages, all the boundaries and everything. Still 24% in Europe and also rest of the world we are getting stronger, and in the end, we grow where we see good possibilities to grow, of course. Bit of the history. We started in 2012, eight years ago. Bought gamigo, restructured it, instead of selling it, we decided to further grow it. Important points were, for example, in 2015, where we did quite some Gaming acquisitions. In 2016, we acquired Aeria Games, which was owned by ProSieben, other big Media house in Germany. Was burning EUR 1 million a month. It was really a bit of a not really that risky because we knew that we could restructure it, but it was exactly hitting our EBITDA a little bit when we bought it. It was, let's say, cash flow positive within three months. That was a really bigger step where we made a bigger step forward. We got a bond, although we got an early bond already. First years, as said, only building critical mass, doing acquisitions. Over 20 acquisitions in the first five years. We decided to bring everything under a listed company, which is Media and Games Invest. We did basically backdoor listing. The majority of gamigo was brought in and the rest was acquired later. We saw first organic growth. In 2018, we really 2017, we started focusing on it, and we have more and more organic growth initiatives, and that's also what we see now with 36% organic growth in the last quarter. We're really happy because Q2 last year was very strong already because of corona, so that we really were able to grow so fast is really very nice. A lot of things in between. Not going into detail, otherwise I will not make my time slot. Last 12 months, I think that's more important to talk about. Some acquisitions, Platform161, but the listing in Sweden, very important of course. Acquisition of LKQD, acquisition of KingsIsle, acquisition of Beemray, acquisition of Smaato, which is not yet closed, but we just got the okay from the Chinese government, so we are now doing the last steps, and we hope that we can even close it by September 1st, latest by October 1st. That's what we're working on. Really nice acquisitions. Our acquisitions, also the kind of acquisition changed a bit. We did a lot of distressed when we started. Now with our higher valuation, it's easier to get Or let's say it's less dilutive to get access to capital, and it really makes sense also to buy EBITDA positive companies, which of course makes growth faster. That's what we're also seeing. A lot happened also on the capital market side, the bond issue, taps of the bond issue. Bringing that forward. Not to forget also the ESG side, our governance report will be published most likely next week, and sustainability report has already been published. Also there we are working on becoming a more mature company, actually. That's also what we see starting with the distressed company. If I see what professionalization we have done, how the company really has been growing with many more shoulders that the management has shared on, really great to go forward. Strategy, nothing changed here. We still buy, integrate, build, and improve. That's what I'm telling, I think for the last six years at least. What do we do? We look at markets. Markets are consolidating. Gaming market's consolidating. The Media market is consolidating. There's many companies that are just subscale, too small. Lots of targets in those markets, but of course you need to look what you buy, that it makes sense. We integrate the companies. That's something that we have said also from the beginning, because if you do so many acquisitions and each company would be standalone, you get all kind of kingdoms and you don't get real synergies out of it. Build and improve with what has been brought together, has been integrated. It's about organic growth and going forward. Why do we integrate? Technology is one of the big things where we really get big savings from individual data centers per company towards bring service into cloud. We see that on the Gaming side as well as on the Media side, that we are able to really get big savings on that. Trion Worlds, an example of a distressed case that we acquired. Here you see, really, a company was burning EUR 500,000 a month when we took over. We took only roughly 50 people out of 300. We stopped all the risky projects. We concentrated on only a few games. We invested in those games. We were able to really get the burn rate out very quickly, make the company profitable very quickly, and also even bring it to organic growth in a very fast time. M&A, I mentioned already, we have so-called tick the box slides to show a bit what we are focusing on. We still should be realistic. Gaming is a EUR 170 billion worldwide market. We're not going to conquer the world. We need to also focus on segments that really make sense. On the Gaming side, we go more for core games, for free-to-play games because you have less customer acquisition cost. Also a bit of buy-to-play, also advertising based. That has become more important since we have the Media part as well, because we can sell the ads better. Also some subscription based. Basically on the business model, we are having a combination between the different ways of earning money because you don't want people to spend too much money in a game, but you can also make additional money with advertising or even give some extra perks if you give a subscription, a VIP club and things like that. Own IP and Licensed. What we typically do is if we launch new games, we don't develop new games because that's still too risky. We think we're still too small for that. We'd rather have third party developers who develop the game. If a game is successful, we like to have it in-house, so then we like to buy the IP. That's what we also have done in the past. When we did acquisitions, we first buy the publishing rights and then when the game is successful, we also like to have the development rights because then we can tweak the game more in the direction where we want it. Mobile to mention, Jens will also say quite a bit more about that. We will focus more on mobile games as well. We want to go deeper in there. Historically, the valuations for mobile game companies were extremely high. That's the reason that in our M&A we concentrated mostly on online companies and also console companies. Now with IDFA and a lot of spook in the market and people are afraid, et cetera, we have seen that valuations for mobile companies are coming down substantially and that's also the reason that you will see in our M&A list that we have quite a bit of mobile targets. On the Media side, a bit different tick the box slide. Here we're working on a full vertical integrated Media house, digital programmatic, which means it starts from creative, and then let's say you have brand and performance marketing, so different ways of marketing. Then the technology stack which is DSP, DMP and SSP basically, with the exchange network in between. That's, let's say, Ionut and Sameer will tell much more about it before I go into detail. We double. Here also we do that not only for in-app, but we also do it for web, mobile web, for CTV, OTT and for digital out-of-home. Where you see, by the way, the green hooks, that's where we are already. Where you see the lila parts, we would like to be also. Where there's a not available, we of course don't want to go. There are certain things like in Gaming where we also decided not to go, like virtual reality. There's a lot of talking about it, but the market is still extremely small. User loyalty is not that big in the market. At the moment it's not a segment that we look at, for example. Our M&A pipeline, the top five targets, they have changed since our last presentation. Normally we see in six to nine months period. If in that period we are not closing a deal, the company is mostly gone or we're not interested anymore and it's off. From our last list of five companies, there was a big game company, online game company on top. It became a mobile company. We decided not to buy it because their performance was not as we expected in the beginning. The second one, Smaato, we acquired. The other ones were smaller. One of them we're still talking to. We have a new list here. Our current top targets are a mobile MMO publisher, EUR 90 million-EUR 110 million revenues. A bit larger than what we normally look at. With always the risk evaluations go up, here we are not in competition with others. That would be very nice addition. A demand-side platform for the Media side with EUR 6 million-EUR 8 million revenues. Supply-side platform also for the Media side, EUR 20 million- EUR 30 million revenues. Both the Media companies based in Europe, both only covering a limited number of European markets and therefore extremely well scalable for us with nice technology both. Then to a bit smaller game companies, mobile game companies also, that's what you see. All three game companies on this list are mobile game companies. That's what we are working on. As always, word of warning, what's on this list is what we'd like to buy, but there might be things in due diligence that we find out there might also be other people that pay much more for the company in the end, and then we don't do a deal. We still want to stick to our very, how to say it, conservative multiples where we buy companies. Combining Games and Media. Already since a while in the presentation, we are extending the value chain. Value chain of Gaming is user acquisition, the user playing and then making money with item sale and advertising. Then we have the Media for the user acquisition on the one side and also selling the ads, which is only part of the income, of course, of a game because there's also item sale and things on the other side. We were not that happy with the Media house that worked for us, and also we know that a lot of other Gaming companies are not. That's the reason we decided to do it ourselves. Big advantage is on the cost side. A standalone Game company pays more for its ads and gets less for its ads than an integrated company. There's just still very good margins on the Media side. The other thing is that, and that's even more important, which is data optimization. To make a real good match between an advertiser and a publisher, so the one that wants to buy ads and the one that offers the ads, you need data to optimize, and you need to buy much less ads if you can optimize better. Having a lot of data from our Gaming side, having a lot of data from our Media side, and because of having a full stack on the Media side, also having full transparency there, it's much easier to target and much more effective and efficient to target. Using that to further grow. Both segments, gamigo and Verve, those are the brands that we unify our activities under. On the gamigo side, it's adding critical mass when we do M&A, so buying further game companies, games. Always focusing on sustainable games for PC, console, and for mobile, I said already. On the Media side, we want to further complete our tick the box slide. There were still some things missing. Also adding critical mass. Smaato adding critical mass, of course, also. Organic growth on the Gaming side for the current game portfolio, making sure that we have updates, smaller updates, large updates, DLCs, but also internationalization, player acquisition, and new game launches, but not own game development. On the Verve side, cross-selling. When we buy a new company, their customers take only part of the service that we have available in the group, so we can easily scale that. That's happening by connecting the platforms, product innovation, and adding new customers. The synergies, of course, cheaper Media, full transparency, better fill rate, data, unique ad inventory, additional revenues, overhead synergies, and know-how sharing. One of the things that we haven't talked so much about is all the know-how that we built, of course, on the Gaming side with doing M&A and integrating companies. We could use that copy-paste on the Media side. That's also one of the things, of course, that was really practical when we started the Media side. Altogether, 36% organic growth in the quarter, 90% total growth, overall growth. I'm always saying a word of warning that 36% is really great and we're really happy with it, and we're not promising that we will do this every quarter because this is the result of many growth initiatives. It's not one game that we launch and that is suddenly driving all the growth. It's joint from the Media and from the Gaming side. Roughly 10% of the growth comes from the Gaming side, 26% from the Media side. Gaming was extremely strong last year, the second quarter, because of COVID. Media was weaker last year, the second quarter, because of COVID. There's also compensation in there. In the first quarter, we were more equal in the organic growth, and also in the third quarter, we expect to be more equal again. The market is growing slower than we do, but that's of course very nice, and we're still very small compared to the total market. ESG, last part of my presentation I'm taking. A lot of things happening on the ESG side. A lot of things have been happening in the past already, but we not always communicated that much about it. We are going to publish our governance report next week, latest a week after. Sustainability report already has been published. This week we announced that we are carbon neutral for 2020, and part of it is really focusing on using data centers with low, how to say it, emissions or no emissions or even negative emissions like Google is working on at the moment. The other thing is, of course, like a bit with the churches, if you have any way done emissions, you can buy it off or you can pay for it, which we also did in a bit different way. There are a lot of good projects in the world, and we had our employees elect the projects that they wanted to really invest in, and those are projects that are really offsetting carbon and such. We thought that's a good way of doing this. Happy with that. On the sustainability side, GDPR, of course, an extremely important topic for us as a Media and Gaming company. It's about letting the customer know what is done with his data. It's not about not using data, but it's about using them properly. Of course, also involving our community. We have the Eden Reforestation Projects, where people can plant virtual trees in the games, and for each virtual tree planted, a real tree is planted. We are starting now the same thing with water. Jens can say a bit more about it. There's at least a test running in one of the games. Other points, code of conduct, of course, gender diversification. With our new hires, we were getting closer to 50/50, but it is, as all the companies are trying to hire more female employees, it is of course a fight for the good talent and not always easy to get it. We are doing pretty well on that, I think. On the governance side, we have a lot of things that are there already. A sustainability committee is there for quite a while already. Also corruption, zero tolerance. It's logical, it's normal, I would say. We have a new whistleblowing software, which has just been implemented for employees but also for our customers. Of course, management conversation, independent board members, and lots more than we can put on this slide. In the games, very important, youth and child protection, safe environment. A lot of preventive measures, and I'm not going to read it all, it's all in the internet, available later as a presentation. A lot of controls and sanctions because it's nice to have rules and preventive measures, but there is still, of course, we're working with human beings, and there's always a lot of creativity there. There's consequences for bad behavior. Also in our games, we have our community managers, which are partly event managers, but also partly police, and also of course, seeing that there is positive behavior in the games. We have, of course, improvement targets, where we are further working on improvements there. A lot of initiatives we are doing also on the sustainability side. AdTechCares, a very good initiative, where let's say ad spots that are not sold are being used for good causes. In this case, for example, for making sure that people get COVID injections, and also against misinformation about COVID. Black Lives Matter was one of the big topics they did, that's really important. Planetly, a company we work with for, let's say, evaluating the carbon footprint of things. A lot of things going on there. We have our targets defined, environmental, social, and governance. Carbon neutral, I said already, we beat the target a bit, which is really good. Even going into more detail, but not going through this slide now in detail, but there's a lot of initiatives that are going on in the company. The green ones is where we're actively working on the piece of projects that we just started, where we're also working on, and we try to spread it throughout the whole company because it's also an awareness thing to do these things. That was my part. I've not looked at the clock, but I guess I've beaten my 20 minutes a little bit. I think you bet them, yeah. Jens. Thanks a lot. To avoid that, I will turn around the laptop a little bit because there's a clock on it, which tells me what's the time and how much time I have. I will guide you today a little bit through the Game segment, show you what happened in the past, give you a little bit an overview about the Game segment, and also give you a little bit an outlook what will happen in the future. I'm going to start with an overview of gamigo. As Remco already mentioned, has started in 2012. The headquarter is based in Hamburg. We also have a big office in Berlin and also have a big office in Austin, Texas, where we mainly do development for our current games portfolio. This came with the Twinity acquisition, and it's still the case that in the U.S. you get quite professional game developers, and therefore we decided to keep and build that up in Austin. We have done since 2012, 25 M&A transactions, or more than 25 actually. There has also been some asset deals in there where we did not acquire the full company. We started 2012 with 80 employees and only based in Hamburg. Nowadays it's over 500, around about 500. Quite impressive increase over there. We have around about 10 + top MMOs, 5,000 casual games. Casual games is the more smaller games like hidden object games or match three games. We have by now more than 100 million registered users. We have revenue split. We are still quite strong in the European Union. In EU, also in Germany especially, but with the KingsIsle acquisition beginning of the year, North America and U.S. became our strongest market with 66% of the revenues. EU still very strong with 28%. Revenues by type, client games are still very strong on our side with 83% of total revenues, followed by mobile with 9%, and then browser games and console games with 3%. Trove is our main game on consoles. Some of the major acquisition you see on the bottom with Aeria Games, WildTangent, Twinity, freenet digital, KingsIsle. We have in games, we have quite some different monetization strategies. One is free-to-play. Free-to-play is the most common thing in online MMOs. It's the game access basically is for free, and the game monetizes by selling virtual items, virtual goods, and you can purchase them via in-game currency. You go to the website, you charge in-game currency, and with the in-game currency, then you can buy weapons, boosters, these kind of things. Buy-to-play, which is the more traditional way of monetizing games. You buy the game, you have access to the game, you can play it until you are done with it, and then you switch the game. Also as monetization strategies are evolving, it's possible nowadays, and we also have that in some of our games, that you combine free-to-play and buy-to-play. We call it a hybrid model. This means you buy the access to the game, but then within the game, you still can buy in-game items and other stuff. With a hybrid model, it's important to say that we usually don't sell then some stuff which makes people stronger. It's then more that people can individualize theirselves. Other costumes, other haircuts, these kind of things. Also getting more and more important these days is advertisement-based, especially in mobile, but also in the casual PC. Yeah, I think it says, you show advertisement in the games. The game basically is for free and the game monetizes just by showing ads. Subscription-based, also a very interesting way of monetizing a game because you have very high lifetime revenues also, and you have very recurring revenues, where you can really plan very good because you know how many subscribers you have. It's basically monthly subscription. I think World of Warcraft was the first one who did it really excellent. There are also now new methods how to do it, giving subscriptions only for specific parts of the game or for specific boosters, so that you get the beginning of the month or always a package delivered. gamigo is very attractively positioned in the games industry. I think we are different from just being a publisher or just being a developer, which you can see here on the slide. I think portfolio diversification is to mention. We have a very wide portfolio, from casual to MMO, to RPGs, to browser, client, consoles. I think that's very unique in the market. Technology edge, we have a technology platform which allows users to download the games, where we connect all our platforms together so that it's also much easier for users to jump from one game or to the other. If they are bored in one game, they can try out another one. We are an M&A company also, parts of, so we also have an M&A platform. We are very good and very fast in integrating companies if we have acquired one. I think that's also not super unique, but we are very good in it. Worth to mention is user acquisition. Now with the Media segment we have in place, that's something which is really leveraging the games, because we have access to our own user acquisition in-house, and I think Sameer and Ionut will give a presentation later on, and I also will mention that a little bit later in my slides. We have an extensive catalog of games. What I said already, we have a very diverse portfolio. 80% of our total game revenues are coming from our own IPs. That is what Remco mentioned a little earlier, that if we have launched a game successfully, we also try to get the development in-house. Now also with our Austin-based development studio, we feel very confident to further prolong the strategy. As you can see on the left, eight of our 10 top games are currently maintained in-house, and Aura Kingdom and Grand Fantasia, which are with the Taiwanese developer X-Legend, is the licensing approach. 5,000 casual games. Casual is a total different approach. We upload per week two to three casual games in our platform. Casual game usually, as I said, match three hidden object games, very small games, works with a subscription model or with a buy-to-play model. You buy the game, you play it. The game takes around about six to 12 hours to play through, and then you play one or two per week. That's why we are uploading two to three per week. Also important to say here, the IP rights are on our side, so that's work for hire. The development studios deliver the games. We buy the games from them. We upload them to the portal. To show how an MMO basically works, I give you an example of Wizard101, called by the press, not by ourselves, by the press, the Harry Potter of online games. I think the name fits very well. It's an MMORPG in a World of Wizards. You play your wizard, you train your wizards, you have an open world. It's very family-friendly. Also, the graphic style, anime style, very timeless is the style. Community, you collaborate with the other wizards to get stronger, and build lasting relationships. Some of our players play the game over a decade, so quite over 10 years, and still stick with the game. This also shows how sticky these kind of games are. We hope and we do everything that they play another decade. Thousands of hours of diverse and engaging game content. That's also key to success for bigger MMOs. You need to have that. As you can see in the recurring revenues, 55% of the revenues of that game are coming from players who are with us since more than fiive years already. I don't know the exact number of people who are with us longer than eight or 10 years, but it's also quite impressive. 50% of new players are converting to paying users. That's what you also see here. Only one year in the game, 21% of the revenues are generated by these users. This is also an effect of having Verve on board, who is enabling a much more effective user acquisition. That's the challenge nowadays, to get effective user acquisition in your games. I think with these numbers, we can prove that we are able to do so. Substantial revenues the game has generated already, $430 million since its launched. 55 million user accounts created since its launch. Not only Wizard101 shows these numbers. You see here a variety of our games. Desert Operations, 85% of revenue comes from players older than five years in the game. Pirate101, 53%, Fiesta, 62%. What you also see, parts of our initiative, the last 12 months, last six to nine months, was to concentrate on getting new players in the game, in combination with Verve. That's what you see here, too. Last Chaos, 22%, Fiesta Online, 80%, Pirate, 24%, Wizard, 21%. Next, I want to show you some initiatives about organic growth and what we have done in the past and how we reached organic growth. First, we need to talk about our portfolio approach. Part of our growth strategy is that we have a very diversified portfolio approach, too. We are acquiring game IPs where we know the games are successful. Say that again, 80%-81% are coming from these kind of games. We still are licensing games. That's also part of our core business. 19% are coming from it. I have a laser here. As you can see on the bottom, our licensing department is very busy with screening these games. We get per year, more than 2,000 games on the table to evaluate. 1,000 of these games are proceeding to first check. The first check is really, you start the game, you have a first look, and then already half of the games are out. Even there are sometimes 50 to 100 games we got on the table that even don't start, which is sometimes really a little bit crazy. 53 business cases we create. If a game is really of our interest, we start to create a business case, and we start to do focus groups with bigger groups and also with some externals to get a better feeling, if not only our internal people like the games or also external people like it. Out of these more than 2,000 games, we have signed four contracts. I remember the year before, we had similar numbers, and we signed one contract. There are so many games available in the market, but only a little piece of these games are really worth to publish. When we have decided to launch a game or that we acquire IP, then that's where Verve again comes into the game. What to say about that? 50% cost saving for user acquisition, because we use our internal user segment. I think that's a very impressive number, and we can increase our return of invest by doing this internal user acquisition. Some growth highlights. We are not only licensing and launching games, we are only working on our current game portfolio. Second half of 2020 and first half of 2021. I also don't go through all of them. I just highlight a few. One really big update was the Trove launch. We launched Delves on Trove, which was a huge expansion, also with our internal team in Austin. gamigo celebrated its 20th anniversary, which we celebrated one month, beginning until the end with different events, not only sales events, also a lot events in-game. We even developed events for that. The Trove update was a big one, which was very requested by the players. The team put a lot of effort in it to build that online. Fiesta Online celebrated its 14th birthday. Also quite long on the market, but also anime style, very timeless, very loyal community, was a big party, I can tell you. In first half 2021, major spring update for Wizard101, where we are really proud of, because Wizard101 comes from KingsIsle, which we just recently acquired in January. It's also important for us to see that we further can develop bigger content updates for that game. It went live, was a huge success. Players were very happy about it. Really good. A big one for us was Trove coming to Nintendo Switch. What Remco mentioned, we have a platform strategy that we know our proven games do also work on different platforms. That's why we worked with an external studio to develop Trove for Nintendo Switch. We have launched six or eight weeks ago. Servers are full, players are happy, so really a success and we are now evaluating which games from our games portfolio would be next for Switch, but maybe also other platforms like next-gen platforms from Sony and Microsoft. Cosplay event. We also do some cool stuff with the players in their, let's say, real life. We hosted a cosplay contest. We asked them to dress as characters from our games. I think everyone has seen cosplay already. We asked them to send in pictures or videos, how they created the costumes and when they wear it, and then we gave an award out of it. It was also quite nice. I need to check the time a little. Outlook 2021. Strongest organic growth pipeline in history. We're going to launch a mobile game called Heroes of Twilight. It's announced already, free to play mobile, Android, iOS. Also referring to what Remco said, we are concentrating more on mobile this year and also next year for sure. We have the worldwide license. Oh, sorry. We have the worldwide license, that's important to say. That's also a big step for us when it comes to internationalization and geographic extension. We have Golf Champions: Swing of Glory. It's a working title. The game is almost finished. It was built by AAA studio called Behaviour Interactive. We took over the game. We're going to launch by the end of the year. The fourth quarter is now the target where we want to launch. Trove available on Switch, I talked about that. Skydome, it's an MMO, four versus four, so-called tower defense battle arena game. Game is launched since yesterday. Let's cross fingers that the game will be successful. One further MMO game we just signed two weeks ago. It's an innovative open world sandbox MMORPG. Yeah. It has already a constantly growing community. I cannot announce the name yet because we have not announced it officially. The game was already in an early access, has shown really great results. After that, we signed. It's a young, very motivated team. We are really happy to have that signed. One further mobile game signed, also not announced yet, so I also cannot tell the name here, but it's a casual town management simulation mobile game with a strong social network approach, in-app products and in-game advertisement, and has already been successfully launched in Asia. We believe the graphic style and also the kind they monetize the game also fits very well for European and North American market. We are also very happy to launch at the first quarter of next year. We have more than 10 other projects in the pipeline. It's sequels of our games, it's new platform launches of existing games. With total development cost of more than EUR 10 million. We have in-licensing deals, so we have really huge presentation with many games, which we could in-license if possible. We are working on out-licensing deals. This means that we will further bring our games towards Asia and other territories where they are not live yet, Russia, for example, and other numerous other organic growth initiatives. Synergies with Media segment, here's a good example how we do that. On the left, you see the advertisers. Advertisers want to advertise their products. On the right, you see WildTangent, which is our casual unit. What usually happens is that you have here the DSP, data supply side platform. You have two or three external companies who deliver. They all take their margins. With an external company, the relationship is not always as good as with an internal. What happens here is that we own the full funnel. The advertiser says, "I want to show advertisement in your games," and we deliver the full funnel until the publisher consumers. Next one is reaching new audience across the open web. Here is important, we have been trying to acquire new users outside the walled gardens. It was very challenging. With Verve on the table, this is also much more easier. Some impressive numbers, 10%-15% conversion rate, which is very unusual for that. 200,000 users reached already, and we have 100%-200% return of advertisement spend. Really impressive and really happy to have the Media segment. M&A, I need to rush a little bit, I believe. M&A, leading North American, KingsIsle, "Guilds and Clans." Yeah, we were very happy to acquire KingsIsle. That's the more important slide about KingsIsle. We are the developer of "plan." We are trading EUR 35 million + $35 million revenues for 2021. That's the estimate numbers. Here in-game revenues are 61%, that's the free-to-play monetization. Subscription revenues, 33%, and other, which is advertisement basically and some other minor stuff, is 7%. Adjusted EBITDA of more than EUR 21 million we will do this year, that's for sure. Game is very stable. We expect also very successful next year and the years after. EBITDA margin, 66%. Yeah, purchase price, EUR 126 million. KingsIsle has included one game called "Pirate101." This is also showing organic growth, very nice, not only Wizard 101. We acquired the company in January. Since then, we were growing the game quite well, 27% year-on-year. We have now put more resources on the game, also will internationalize the game. Currently, it's only live in the U.S. We will move the game also to launch the game also in Europe and other territories. We have developed the first content update after, I believe, five years. You see there's a peak now. Yeah, game does quite good and hopefully will do quite good in the future. With KingsIsle, we have nice growth opportunities. We will expand the games in new territories, extend language versions. We are looking into the possibility to go to mobile with the game, which is quite a nice opportunity. We are looking in the opportunity to port to console, most likely first Switch and then Nintendo, Sony and Microsoft after that. With, again, MGI's Media expertise, we can leverage the users in the game. KingsIsle also was super fitting in our strategy. It's a core game. It's free to play, advertisement-based, subscription-based, own IP. It was really adding a lot of our already ticked boxes, but just was adding a lot to that. This has been my last slide. I was on time, more or less. Speed it up at the end. Thanks for that, right? Remco, would you like to join on stage? You have had time to think about questions, right? Raise your hand and you will be supported with the microphone here in the room. I think I will shoot the first questions just to get you going, guys. There are so many game segments, so why are you so focused on MMOs? Good question. MMOs have a very loyal customer base. MMOs have a very high lifetime of customers and players. That's what you have seen in the presentation. Revenues coming from customers long in the game, since five years, that's why we concentrate on MMOs. It's also online. You have this community building. Community building is always leading to very high stickiness in the game. That's the reason why we concentrate on MMOs. Okay. Another thing, I'm curious to hear more about this really, in comparison to some of your competitors, you are integrating your acquisitions. Exactly. I would actually like to hear a little bit more about that from the inside. Yeah. How do you actually do it? Right now, what are the short-term prioritizations within the organization? Yeah. This would maybe fill the whole day if I now would talk about how we integrate them fully. Basically, we have a very strong M&A knowledge, and we have a very strong management on the first and second-level management teams. What we do, we have a technical integration, which means we are connecting the platforms, we are moving everything into our infrastructure, which makes it much more efficient to manage. The other thing, we also integrate the teams into our infrastructure. This means we don't have, like other companies, five different marketing companies or five different customer support companies. We have centralized companies. We integrate everything in there. This also gives you the flexibility, if you have a peak in one game, you can easily move resources there, and if you have a peak in another game, you can easily move resources there. Usually it takes us just a couple of weeks, one to two months, to integrate a company fully into our organization. Yeah. What's also important is know-how sharing. Role-play games with different genres go in the same team. Strategy and build teams go in the same team. You have a lot of know-how in how you optimize the games. You can get things from one game, let's say, ported to the other game. That's also, I think, a very important aspect. Okay. You managed to deliver organic growth here. We are also curious to better understand then, what are really the key three drivers behind this quarter organic growth? Yeah, the three main drivers, one of it is what I mentioned, the development approach, so that we really maintain our games with new content updates with our Austin studio, where we had put a lot of effort the last 12 years to build that, really. I'm really very happy with that studio. Second approach is that we get the user acquisition via Verve, so we are able to get on a very nice ROI to users in our games. I would say the third one is that we also have spent a lot of effort the past 12 months on in-game ads. This was a field where we are lacking a little bit the past years, we have spent a lot of time, a lot of resource in that, and that was also a field where we have seen a lot of organic growth. Yeah, I think if I may add to that's number four then. It's also spreading the number of initiatives. Organic growth to just bet on one horse in Gaming doesn't work. What we've been able to do since we are talking about organic growth is really for each game have multiple initiatives, but also multiple new games going to be launched. We're talking about, let's say, 20, 30, and the number is increasing initiatives. Also to say a word of warning here, not all of them are successful. We're talking really about portfolio approach. Just to give a negative example, when we launched Trove in Korea, we really extremely bullish optimistic, but it didn't work that well. There's hardly any revenues coming from it. On the other hand, and it's still a bit young, but Trove or Switch, we had also very good expectations, otherwise we wouldn't do an organic growth part, of course, if we wouldn't expect, but that is working extremely well. That's only, let's say, two weeks into the second quarter, so we will see more of that in Q3. If you want to do organic growth in Gaming, it's about a portfolio approach. You need to have many projects, many different angles to grow your games, and the more you have, you will always have a certain percentage that fails. That's part of the game. Yeah. Over here. Hi, Jamie here from Carnegie. First of all, thank you very much. It's been really informative so far. Remco Westermann, you quickly touched on the ESG side of things, and I'm wondering just how, high-level overview, how you are able to ensure that the younger users are not seeing inappropriate advertisements or ensuring that they're not playing the maybe more violent games. Can I pass this to you? First of all, we have a well-trained team of community managers, which is controlling all the chats and everything to look for bad language, this kind of stuff. We have age ratings for the game, for the majority of our games, so we can make sure that also parents can control if they play these kind of games or not. We also have specific mechanics in place, where we can filter out if people play inappropriate games or not. We also have tools in place which make sure we don't get any inappropriate traffic into the games or advertisements shown into the games. We have really specific, it's a wide range of initiatives and also a wide range of tools and technical solutions, and then also the human component with our trained community managers who take care of that. Here we have another one. Hi. Morning, everyone here at Pareto. It's on? Yeah. Okay. Morning, everyone at Pareto here. Remco mentioned that you're still too small to create own games from scratch. It sounds it's on the agenda. What's needed here to get there, and when can we expect you to build from scratch? It's a matter of, let's say, looking at the total size compared to the company size. Just to make a very simple calculation, we talk about massive multiplayer games. I mean, not about small games, but a massive multiplayer game to develop it, EUR 5 million at least, rather EUR 10 million or more. If you really want to have a certain likelihood of success, you should launch at least 10 games a year, which means you need to develop, let's say you need to put 10 x 10, it's EUR 100 million in development, and does it take three years to develop an MMO, a rough number, you need basically do that times three. We're talking about a EUR 300 million invest if you really want to go into game development. It's rather more on the low side than on the high side, I would say, to do this seriously. Looking at, let's say, our EBITDA and our size of the company, we at the moment think that taking a EUR 300 million invest risk in doing that is still a bit on the high side, but it might change. If you continue to grow like this, it would make sense probably to start this in two to five years, to give a bit of a horizon there. Only to have the money to develop two or three games or to have one studio that's doing it, that's like going into the casino or like playing lottery, and that's what we don't want. Just to add here, we have seen in several M&A cases we did in the past, exactly that approach that companies used their money to develop the next World of Warcraft or the next Clash of Clans, or you call it, then in the end, it didn't work out. Then they said, "Okay, now we do it," and it didn't work out, and it didn't work out. I think the risk is just too high at the current stage for the given reasons Remco mentioned. Yeah. As I said, you need a portfolio approach in Gaming and especially in game development. Now we have a nicer world because there's a lot of independent studios, a lot of game developers also in Asia that publish themselves in Asia, but then look for somebody to publish the game in Europe or in North America. They take the development risk. They take the EUR 10 million or EUR 20 million or even more and let's say we give them a certain guarantee on marketing if certain KPIs are met. That's of course a lot lower risk for us than if you would do the full game development because it's the risk of the game development and then of course the launch risk also because you have to spend a certain marketing budget, all those things. That's the reason that at the moment we just say we don't do game development from scratch. We let other studios do that. When the game is successful, we try to buy the IP, and then we're also willing to pay a bit more. It's much less risk. Thank you. Okay, we have an online question coming in. Can you discuss cross-marketing of players' games, moving players from perhaps declining games to new games or new casual mobile games? The question coming in is from Ken Rumph, MSN. We call it customer retention. That's exactly what we do. We do cross-marketing on games, but on the other side, it also makes no sense if you have an active player in a game that you cross-market him to another game because then he may stop the one game and he doesn't like the other game and then you lost him basically. What we see if player getting inactive or playing less and less, then we try first of all to retain the player in the game. If we recognize this is not possible, then we try to convert him into another game. It's not always possible, but we also see good results in that. Okay, good. Thank you. I think, yeah, time to wrap up, right? Time for coffee or have a more coffee. There was one more question. Yeah, one more question. Yeah, let's go. Hi, this Oscar from UniCredit. Just congratulations on a fantastic quarter and thank you for having us here. My question is about the mobile games valuations where you clearly do not believe that the blip in the market from the data protection event is something that worries you because you are looking at acquiring it. Just without spilling any trade secrets why you think the market is wrong, if you could elaborate on why you are looking at it. Is it just for diversification or is the market wrong in calling the multiples lower? Yeah. Shall I? First of all, why are we looking into mobile? It is because we believe that if you have a good IP, it makes sense to publish it in as many platforms as possible. Same as with the movie. Movie goes video on demand, TV, wherever, also with the game it makes sense. With the game it's a bit more complicated because there's much more technology involved. You cannot just put a game on another platform. That's the reason that we really like mobile and looking at the total overall market, mobile is roughly half or even a bit more than half of the total EUR 170 billion that is spent on games worldwide. As with M&A, you can build critical mass. It's much easier to first do some M&A cases in a certain than to go fully greenfield in there. We here do a combination. We have new mobile games that we launch. We have already some that run. On top of it, we like to do acquisitions. In the past, we were talking about really extremely high prices for mobile games and always the story like, "Yeah, we have a new mobile game, and that's going to change everything." One point is that there has become some, I would say, normalization in the market that people see that a mobile game is also a game with a high risk factor, basically, or become mobile game company. That already helped bring the prices down a bit. Secondly, IDFA and also other cookies going out of the market is a point that is putting more risk on a mobile game company. IDFA will impact mobile games or is already impacting. Look at the Facebook revenues, look at also some game companies' revenues. With our Media part we have so many good tools that we are not afraid of not working with IDFA. Therefore, we see that the cost of acquisitions or the multiples for companies go down, while on the other hand, we don't estimate the risk for us as high as for a standalone mobile game company. That's the background. Thank you very much. Okay. We wrap it up. Thanks a lot. One final question to you, Jens. What's your favorite game? First of all of our games are great games. One was easy. That's all I can say. Personally, one game, maybe not of our portfolio, I think almost everyone who's a guy played it's FIFA. One game of our portfolio, which I've played quite a lot is Fiesta Online, and just check it out. It's really nice. Okay. Let's grab a cup of coffee, and we will actually kick off within a minute with the Media deep dive. Yeah. Thanks. See you later. See you soon. See you. [Break] All right. Okay, fine. I thought the Media session is after lunch, the energy levels are going to go down, but I'll get started, guys. Let me give a glance of the Verve Group, that's a Media section within MGI. As we are connecting the advertising publishers to people in real-time. The group was started in 2016. We are headquarters based out of Berlin. We have done 10+ acquisitions in the history so far. Almost 400 employees now with Smaato as a recent addition, and we've talked about 166 billion ads that we've delivered in the last 12 months, which is going on and on. 5,000+ advertisers in the system every day, the advertiser base is actually increasing. We are a complete platform by definition, which is a full stack and self-service offerings. The marketplace is active in 20 countries. With Smaato now, the reach is going to go further up. Key revenue splits, 166 billion ads delivered. One of the most important part that we are proud of is we have a 95% retention rate of customers who are more than $100,000 as a SaaS accounts. This is a great asset that we have. 21% increase in SaaS accounts in Q2 of 2021. Some of the major acquisitions, the biggest recent one is Smaato. We bought LKQD. Beemray is a DMP that we recently acquired, based out of Finland. AppMonet, of course, PubNative, and Platform161. Full stack transparent advertising technology infrastructure. This is who we are. In some of the Media segments highlights with the ad-tech value chain, which was recently covered on the system, where the advertisers who are willing to participate and work with us, they get a full demand-side platform, and data is so important for optimizations for the KPIs and the goals that we define. They are very different for brand advertisers versus performance versus different kind of ROIs. The SSP feature, which eventually plays a big role. Eventually, we are reaching the end consumer, which is coming through a publisher. All the blue-chip customer base that you can see, huge base of advertisers and on the most premium working well publishers, that's the full stack transparent offerings that the platform is providing. Monetization strategy. Now, again, one key factor is our monetization strategies are divided in two segments. One is SaaS-based revenue, and the other one is non-SaaS revenues. Subscription-based platform fee is 10% of our current outstandings, we have revenue share platform as 75% of contributors. The remaining 15% is basically guaranteed or flat CPM, as we often hit across these customers when they're coming from CTV or OTT Stack. The value chain, as we covered in the past as well. This is just an example and anecdote here about we are with the DSP, the DMP, and the SSP now a part of the Verve Group. Within the gamigo Group as an example, if we were spending $3, EUR 3, half of it, 50% of it is actually gone to other platforms in the mix. Now this is all in-house with that we have. Verve Group at a glance. I think the biggest asset, guys, that we have is our people. It's a very experienced leadership. As we are acquiring more and more companies, we are always looking to strengthen the management and executive level. It's a very experienced global executive team. The number of engineers are 150. Ionut wants 200 more. We are proud members of IAB, MMA, Prebid organizations. The industry excellence comes as we have almost the top Fortune 500 advertisers working with us. There are just a few ones which are left, but we have the topmost direct performance demand, which is also a part of us. A lot is done in the proprietary algorithms and optimization means in 5,000+ direct publishers. Sky's the limit here now. Some major integrations with big platforms is going on. This number is going to go further up. We are proud to own and operate a lot of Gaming supply, which is improving in our end-to-end stack. Who we are is a global omni-channel ad platform. The complete stack definition is right there. Managed service ad platform, mobile RTB ad exchanges, SSPs, et cetera. Open source SDK. We are the second company officially to talk more about it, but we have an open source SDK. through which we earn a lot of trust out there from the developers and the competition. In-app, mobile web, desktop, CTV, OTT is an extension that we are always working on. This is a very important slide where it describes MGI in the completeness. Remco did cover about the vertical completion, which puts us in a comparison of some great companies out there competing against us in some of the other form. When you talk about transparency and open standards, open source projects, DSP, now we have a DMP, and of course with Smaato, our SSP capabilities have further gone up. We have a full stack offering. We are 100% into mobile. Web is expanding, CTV, OTT, and owned and operated through our Gaming portfolio. You can see a lot of checks which MGI as a group has, and this gives a clear glimpse of where the competition is, where we stand in. I was right on time. I'll be back. I'll give a quick glimpse of what's under the hood on the Media side, how do we actually cover this value chain and what end-to-end actually means. We're a full stack platform. We start from the advertiser side, and we have a few ways to let advertisers into our platform. The first one is managed. That's how we call it, means direct campaigns. They basically sign an IO, and then we deliver the creative, let's say Gaming creative, and then we deliver it in WildTangent games, right? That was the example from me. That's one way. The other way is they already own a DSP. Either they own it in-house or they use a DSP like The Trade Desk, right? In that case, they plug into our exchange or exchanges because we have a few, and then they can execute and deliver the campaigns on our own inventory or compete with the other advertisers. The last way, but not least, is actually the exchange ways, meaning that not only do we let advertisers directly or through their DSPs, but if they have an SSP of choice, let's say Magnite or PubMatic, we let them compete. Those are marketplaces, right? PubMatic is a marketplace. Magnite is a marketplace. We let those marketplaces compete with ours in real time to maximize the yield of the publisher, but at the same time extend the reach for the advertisers, making sure that they can access our supply as well. That's the demand side, right? We move into our bread and butter, what I would call basically our technology platform. It has a few layers. I won't assist in all of the layers, but happy to answer afterwards. I'd say one of the more important ones is the controls layers, basically where we push the buttons. We, by we, I mean the 200 people, 300 now people strong, that we have selecting demand, selecting supply, checking for ad quality, for example, if the ads are inappropriate and things like this, looking for flags, CCPA, GDPR, and things like this, and then optimizing basically the ad delivery and the flow throughout the marketplace. Of course, controls are not enough, right? We're talking about automation, and we're talking machine learning to automate all of that decision-making in real time, 2 million times per second at scale. Right? At the scale of the open web. That's the automation layer. We have algorithms at almost every layer that you see on the demand side, on the supply side, optimizing which inventory is valuable, at which price, to whom to sell it, and things along those lines. We're constantly iterating on that part. Last but not least, we are integrating with publishers. Sameer already mentioned the open source SDK, which we're very proud of. We also work with any other means of integrations, right? The way we reached 5,000 publishers and actually many more is that we integrate with other platforms such as Amazon, such as Google, and a few others are coming soon through APIs or JavaScript tags in order to be wherever the publisher is. Whatever software stack they have and ad serving stack, we're going to be there to serve their needs. WildTangent, just an example on the web, whether it be on mobile, on MoPub/Twitter, we will be able to service them, right? That's basically our job, finding the right users for the right ads. Talking about the users and ads, our flywheel, it's actually rather simple, right? It's a marketplace play. We add more publishers, which add real estate, right? They have banners or videos that then we can sell to advertisers. The moment we optimize that through data, of course, an advertiser managed to buy the right users that they want, and we bring more and more advertisers, then we have more budgets to expand into new publishers. We've been doing this for years, and now you see the growth. The flywheel just gets bigger and bigger, right? Almost like a snowball effect. Now we're able to organically add publishers like Zynga, like Activision and a few larger ones, right? While at the same time adding more and more advertisers to the marketplace. Of course, this doesn't happen all organically. We're also doing it unorganically. For example, we got Trade Desk, I think we had LiquidM Connection, which is a DSP on the other side, right? I would say we double the acceleration pedal with these two types, organic sales and inorganic, connecting the dots, so to speak. That's one part. The other part is, of course, leveraging synergies. I think we talked about integration. In Gaming, in Media, it's a bit different. We actually can integrate commercially almost immediately, sometimes even before we acquire the companies, and generate revenues by, again, connecting the dots and filling in the gaps each of the companies we acquire have. That's very important in how this flywheel actually moves. That's not least, we have the other part, which are innovations. As we get, let's say, closer and closer to our partners, either on the advertiser side or the demand side, we understand better their needs. As we understand their needs, we can develop products to fit within those needs or fill in those gaps. That's another part of the story on the organic growth. One of those products is called the HyBid Cloud. What does it do? It basically takes most of the software that we've built, and we give it to the publishers. This is a publisher product, so it fits at the bottom of the flywheel, and let them manage their own demand and their own advertising stack, including with full transparency, open source SDK, troubleshooting tools, reporting, audience creation, and activation. A full stack that we can give, for example, our competitors in the Gaming space if we so desire, which we actually do, by the way. That's just one way in how we innovate, that's on the supply side. There's more coming there, but that's early stages. This product is already live, generating revenues, but we haven't publicly launched it as of yet. Before I move to the advertiser side, and maybe a way to connect the dots. iOS 14, there were some questions around, and it did have an impact on the Media side, and we've seen that impact. To our surprise, and this is data from our marketplaces, I think in the last couple of months, we actually seen consent, of course, it went down. It was 60%-70% before, and now it's around 30%-40%. I would say that's a win, because it means the users, or half of them, close to half of them, understand the value exchange between getting free products and getting advertising. Our job is to make that advertising as personalized, as relevant as possible, and not creepy in any other way. It seems to be working, and in fact, to be lower than initially anticipated. Still, there is an impact. It's around 35% between the CPMs on pre-iOS 14.5, which was more or less the limitator of post-and pre-IDFA, and the versions before. There's a caveat to this number because a lot of the advertisers started buying much more on the pre-iOS 14.5 versions because they have an identifier and they know the user, and they know how to optimize. At the same time, on the previous versions, they started understanding how they can optimize. There are certain, let's say, technologies and frameworks that Apple made available. The optimization is slowly starting. The gap remains because there is still quite an increase in the previous versions. We estimate we are going to be back at around 70%-80% efficiency in a couple quarters versus what it was before, as the whole ecosystem adapts to what we call the privacy-first era in advertising, or almost in digital industry, if I may add. All right. Now, what are we doing about it? This, I think we presented before, and we have been working on this for one year, actually, at least one year. Actually, we had a hackathon on running audiences on device two years ago. What's super interesting here and fits with our event story is that we combined our SDK development know-how. We have one of the best mobile developers that I've seen or worked with, and I've built a few SDKs in my career, and some of the best data scientists building audiences in the cloud, behavior audiences. It's not that unsimilar to what Facebook and Google are doing. Putting those two together in a room, virtual room because it was COVID times, and working mostly nights because some people were in Europe, some people were in the U.S., over a couple of months, I would say nine months, and we're still working and iterating on it. There's a lot of blood, sweat, and tears to make this work. Actually, our first version was launched internally in September when Apple was supposed to cut down IDFA. We were ready, arguably, but at least we had a product then, an MVP, and now we're ready ite rating on the second version, and hopefully we'll share the results soon. They look quite promising, let's see as it scales how good they really are. That's how we try to bridge the gap for our advertisers. They want to continue finding the right audiences for their games or other products, and we need to deliver a way for them to continue to do that in the lack of an identifier. What's super important here is that we don't store any PII. There's no PII on this device. We use device information, the app information, and maybe the advertising that's being shown. We generate a segment, basically a random number, you could say, that could say if it's a male or a female or whatever interest we find. We aggregate that as well, so you can never identify back a user, but at the same time, make sure that we know, hey, it's a 35-year-old auto intender. Things along those lines. Still driving the goals, but I would say maximizing privacy. Doing everything on device, if I didn't mention that. All right. One of my favorite slides, something that we're doing with our Gaming unit. Traditionally, running ads on TV, it's a bit hard. You need to pay up front. You will not know what's being served when and where. You need to measure it after the fact. It's a bit in transparent in a black box. Also very similar to how you would do it on YouTube or with influencers. It's a bit of a manual process, not as optimized as it could be. Programmatic is coming to connected TV, and we've seen it when in The Trade Desk investor report, and we've seen it on our platform. What we're doing now, and I think Jens mentioned slightly, we are actually reactivating users before we send them to our other games. We are reactivating users on our connected TV platform, which is a supply-side platform. We actually own, let's say, have access to 25%-40% of the connected TV houses in the U.S. Which is a huge number. We are able to figure out, hey, where our users are on that connected TV, show them a video of, I don't know, say, Trove, for example, and bring them back to the game. That's rather unique. The case study is coming hopefully in a couple of months, as it took quite a bit of work to put these things together. I would say it's rather unique and rather high impact. Also goes to show the other part, that most of the Media spent from our Gaming side flows through our pipes, the Verve Group part. We ideally want to continue that and actually expand that both from the retargeting part, UA part was already mentioned, and then of course monetization, which was also mentioned. With that being said, I think I will hand it over to Sameer once again. Thank you. All right, guys. I'm back. Very quickly talking about why Smaato was a perfect strategic fit into the MGI M&A strategy. The investment rationale is very clear to us that it will help us in increasing our EBITDA. Of course, we get a ton of long-term client relationships within the family to represent. It brings a critical mass to existing MGI segments via additional demand and supply globally. Of course, there were substantial revenue synergies for the MGI games and the portfolios and the set of publisher base or the advertiser base that Smaato actually brings in. There is a very strong SaaS IP. Smaato as a platform, it's a very heavy SSP-focused supply-based solution, and it comes with a strong SaaS IP solutions, which we will be now further navigating into the market. I won't get into names. There are some top-notch publishers and verticals that we actually get them along with it, in all Gaming and news and Media and utility and entertainment segments. The Smaato financials at a glance, again, it added EUR 39 million as revenues. There is a strong EBITDA that is listed out there. Comes with 20% organic growth at an enterprise value of EUR 140 million. The current, at 10.7x, and going forward, it's going to be further beneficial to us at a 6.8x. There are many other internal optimization that we are doing in order for us to actually get to that number. One simple example is, when we talk about synergies is we are imMediately working on reducing EUR 200,000-EUR 250,000. We are cutting the cost on AWS usage. There are tons of other tracks which are already identified. It's just been three weeks or four weeks of integration process that we have started. Revenue distribution, as Remco mentioned, we are now further strong. We jointly are seen as a very reputed, respectable marketplace that makes existing Verve Group with the Smaato. There are five very important dimensions which are future growth levers that comes to us. We offer a platform, the complete food chain is, or the value chain is serving the publishers, advertisers across various segments. Publishers are getting more and controls. I'll tell you in my 20 years of ad-tech experience, publishers always wants to make more, right? They want to make sure the users are happy. There are platforms which has limitations which cannot get all the tools necessary for publishers to really optimize. This helps us to put us into that position and that competition. Advertisers, we extend the global reach of advertisers. Preferred buying relationships. PMPs is something that we are really proud of. It's private marketplace. We've grown the business from zero to EUR 25,000 a day, and sky's the limit now with the SSP tools that we actually get from Smaato. Video and CTV is integral to our growth. Smaato comes with a CTV/OTT stack, and in the coming few months, we'll be sharing more public information. There are some exclusives also, that we really are amazed of what has been built. Product technology and scale. Smaato has been one group which has been out there for 15 years or 15 years +. It brings a lot of product and technology and scale value addition to our family. Efficiencies are, again, extremely important, not just the operating expenses, but one thing which we are proud as a group is on the synergies, and as Ionut mentioned, we do integrations even before we actually acquire a company. These are the five important dimensions that brings up. User base is so important, and the global reach of the MGI Group was 1.4 billion. Smaato was 1.3. I wish combined was 2.7, but still this still gets us anywhere in the range of 1.8 billion to 2 billion users. Global reach increases for us, and it benefits our Gaming business, and it puts us as a group in a very substantial position of actually doing a global business. I will quickly wrap this one. The sales pipeline is extremely good. It's extremely strong. It just gives a glimpse of who are we negotiating with, what are qualifying, what are the prospective clients. The qualification process is very well-vet, and we have standards and processes around it. You can see some top names, some very fancy logos, which we will be serving or which we are already serving. We are proud of actually being able to just about to be closed. Yes, Smaato brings a lot of value add to our portfolio of companies. You would have seen this tick multiple boxes slide from Jens and Remco. This is so important for us, guys. Again, in terms of the vertical integration completeness, you can see where Smaato is at. All right. Technical glitch. You can see where Smaato is a check, but that doesn't necessarily mean that we did not have it. Some of the checks are actually real complements, and it doubles down of the open exchange network or the SSP capabilities that we've had. We wish that we are actually close towards where we have a lot of checks almost everywhere. Smaato really helps in a lot more ticks in the multiple boxes that we aspire to have. That was about it. Time for some Q&As, right? Yeah, great. Come on up. Yeah, here we go. There we go. I had a quick question about the publishers. Correct me if I'm wrong. You mentioned that you use other publishers as well as gamigo for the advertisers. What's the percentage of advertisers that use gamigo versus the other publishing agencies? What is the kind of future strategy for, is it to shift more towards increasing it for gamigo, or is it trying to maintain current figures, or what's the strategy? I can maybe- Yeah, please. Say something about the first part. We started the Media part really to support gamigo, same as with other companies that we see, if you only do it for your own company, it's much less efficient than if you also work for other companies. That's basically what we've seen with AWS, which was the technology for Amazon and then was rolled out, et cetera. That's the same that we have on the Media side. As a result, the percentage that gamigo does is relatively small, that's actually the numbers that we show is only external revenues. We consolidate out the internal part, I think Paul will also cover that later in the presentation, to give a bit of what we do internally on synergies. Second part of your question, I would hand over to Sameer. The diversification, because the way we have grown, and every company and organization that we actually acquire, there is often chances that the publishers were already working with both. That basically puts us in a better position because the power of the marketplace. If there was one company doing X million dollars, limitations, not having the reach for the global reach, for the publisher. Probably we want to continue our efforts and investments into diversified set of portfolio publishers and across the world. That's what we believe. We also see that if a publisher is selling his ads, that they normally want a selective number of people that are selling the ads. If you talk about a mobile ad, for example, in an, how to say it, in an app, then there is an SDK integration often. Correct me, guys, if I'm saying something wrong. There is maybe five sellers of those ads or people that are bidding for the ads are integrated. In certain cases, we have duplications that Verve Group platform already was, and that also Smaato platform is integrated there now. Then we have two parts bidding on it with three others maybe. As such, it makes sense to really get critical mass. Development we see already in the market and we further expect is that publishers and advertisers, they don't want to work with too many parties. Therefore, having a full offering that we have makes it extremely attractive for certain advertisers and publishers to just work with us because we can offer them a kind of one-stop shop instead of that they have to work with several partners. That's what we see in general in the market. The Trade Desk coming from the demand side, they're also starting to integrate more and more in the supply side. What we expect in the end that there will be few large parties that are doing this and that the market is because of that consolidating pretty quickly. I will add just one part to it. Although the percentage might not be the highest, it is growing. The other part is that with having Gaming in-house allows us to iterate and learn. Basically, whatever we develop for our Gaming unit, then we can offer to any other game developer out there, right? That's kind of the idea. We can iterate much faster. With an external game developer, of course, we have a meeting, it takes two weeks. We align roadmaps, it takes a year, right? Internally, we just put our hands on the call. We say, "Hey, we need to do CTV retargeting tomorrow." Jens says, okay. In a couple of weeks, it's already moving, right? Allows us to move much faster to solve those problems. I'd say that's again, the flywheel from product development perspective. Yeah. Thanks. Okay, do we have more questions coming in? Yeah. Hi. This ATOM technical solution or the innovation you have, maybe you can try to elaborate a little bit more how it can play out for MGI in terms of the business opportunity. Will it mainly be an internal solution, or would it even be a possibility to license the technology to others going forward? That's a very good question. Yeah. That's a very good question. In terms of what does ATOM address? Well, it addresses, at least for now, half of the iOS ecosystem, right? Which is pretty big, I think $50 billion market in the U.S. just in advertising. Pretty large market, and we're the first ones to be there. Of course, Facebook just announced they're coming to the anonymized on-device place, and Google, of course, they were there, and Apple is also there. I would say that's a good company to be in, one of the first to take that market share. Now, if we are planning to license it? Yes, we did discuss. It's not yet. We need to, I would say, develop a few more audiences. Right now we have, I don't know, 10, even a bit below that. We would expand it probably to 20, and then continue to test and make sure it works. I don't think we have anything against licensing it to other players out there. We did discuss internally. We haven't made a decision on that yet. Could it even be better to keep it in-house because you will be able to attract more advertiser and more publisher? Well, I would say yes and no. We are playing in the open ecosystem. In the open ecosystem, we are actually, let's say, fighting against the bigger walled gardens. We need to arm ourselves. I do think we have a very strong USP because of how we do things and how we iterate. We're already planning the next innovations of ATOM. We might offer some things and some things keep in-house. Being one year ahead of the market allows us also to have a time horizon already one year in front of us. That's how we look at it. Some parts, as technology advances, do become commoditized or some other people develop it. We just need to stay ahead. That's, I would say, how ad-tech, in any case, works. It's speed of rollout on the one hand, where it makes sense to license it out and to get out because it's a temporary advantage, although we also are working on a patent, or let's say we have applied for a patent for it. Let's see how fast we can roll it out ourself. We're growing fast. I'm not against also using a selective number of sublicenses to get it out, but it would bring us closer to those and maybe also create other M&A possibilities and things like that. I'll just add. We are protecting our IP, as we have a pending patent. Right now, it's a beta. My sales team are talking to every damn possible agency, holding company, the largest of advertisers. The first review, we've done 50 + discussions, it was a phenomenal wow factor because these large brands, they do take time to really embrace the product. We will evaluate the response, and we can always make decisions depending on what the market wants. We are open to it. It's still early stage. With a lot of potential. Thank you. Okay, great. I think, checking the room, any more questions here? Time for some lunch. We will be back here at 1:15 P.M., and we will have Paul up on stage with the financial update. For those of you online, welcome back, 1:15 P.M. We will have some lunch. All right. Sure. Sure. Thank you. [Break] A warm welcome back, everyone. We will get started imMediately, and we will have the financial update from Paul, and then we will have the outlook and the Q&A session. That's the Q&A session where we will also open up the phone lines. A warm welcome up to the stage, Paul. Hello, everyone. Now we come to the second quarter financial highlights. Actually starting right away here with a strong revenue increase of 90%, where we actually have been achieved 36% organic growth, which is really outstanding, especially given the hard comps of the previous year, where we will go a little bit more into the detail later on. What we see here as well is that the EBITDA increased even stronger, by 127%, and that is because we realized a lot of economy of scale. Especially the fixed cost, like personal cost, office cost, these kind of things were relatively stable compared to the revenue increase. Therefore, we increased the EBITDA margin by 5 percentage points, and also the EBITDA increased therefore much, much stronger than the revenues. Adjusted EBIT increased by 164%, and therefore even stronger than the adjusted EBITDA. That's because the depreciation are also relatively stable compared to the revenues, Therefore we're trading now into much, much higher profitability, and also the adjusted EBIT is really growing quite strongly. Operating cash flow, also very strong, 134% increase. That's before a change in working capital. Because of the very strong increase, especially also on the Media side, we had a strong working capital effect of EUR 8.7 million in the second quarter. We would see that later on the cash flow slide, That's something where we also changed the reporting, We will now every quarter also report very in detail the change in working capital to give full visibility on that. Coming now to the summary of the annual financial performance, here we see that on a last 12 months basis, we reach now EUR 193 million revenues and EUR 45 million EBITDA, have grown in the last three years with a revenue CAGR of 78%. That has been achieved actually while we have increased organic growth quite substantially from 5% in 2018, where we for the first time showed organic growth, to now 36% on a combined basis for our segments. Therefore, the total growth has also increased, so 90% in the second quarter. If you compare that also to the previous years, we have outperformed also our growth. The major driver now here, or the differentiator, is really the strong organic growth. Coming now to the second quarter revenue and EBITDA development. Here we see on the left side that the revenue has increased by 90%, now to EUR 57 million, driven by strong growth of both segments. The adjusted EBITDA has increased by 127% to now EUR 15 million per quarter. We saw all-time highs in terms of revenue and in terms of EBITDA in the second quarter. That despite the fact that we had a very strong second quarter already last year, and already also very strong first quarter. Going into the details now of our segments. Here we see on the left side, the Games segment, which has been increased by 49% to EUR 28 million revenues. 10% of that has been coming from organic. What we also see here is actually that the games segment revenues have not as much increased as the Media side. That's also what Remco mentioned at the beginning. On the Games segment, we had a very strong spike last year, so we had a bit more hard comps. Despite the fact, we showed strong organic growth and also a strong total growth of 49%, while on the Media side, we had the opposite effect last year. Some advertisers paused some campaigns, and therefore the revenue in the second quarter were trading down on the Media side. Therefore, we had more easy comps this year, and therefore the revenue increased by 159% to EUR 29 million. What we see on both segments, actually, and that's also what we see in the group, is that the EBITDA margin's increasing substantially. On the Games segment, from 29% to 38%. That's driven by the KingsIsle acquisition, but it's also driven by very large content updates. Also Nintendo Switch from Trove already had a pretty good impact on the second quarter, despite the fact it was just two weeks in the second quarter. On the Media segment, we were really scaling revenues. CTV, for example, had a share of the revenues of EUR 29 million of EUR 1.5 million, so roughly 5%. It's also growing quite strongly on the organic side. We have been able now to increase the EBITDA margin already from 11%-16%, and that has been actually planned for the second half year. As the revenues were scaling much faster than we expected, actually, we were able, due to economy of scale, really personal cost relatively stable, fixed cost relatively stable, to increase the EBITDA margin already to 16%. Therefore, we are well within the target of 15%-20%, and that's actually not even including Smaato. With Smaato, due to the scale and the strong software-as-a-service character, they even have a stronger EBITDA margin of 30%. With the first-time consolidation expected for Q4, we will most likely even push the 15%-20% to a bit higher EBITDA margin for the overall Media segment. Games segment, there we have reached the 38% and have a target of 35%-40%, which we also want to maintain in the long run, but also want to invest further in organic growth projects, while we're keeping a very high profitability. Coming now to the revenue diversification, that has actually evolved and changed quite a bit over the last years. What we see here is on the left side, in purple, the Gaming revenues. The MMOs, that's in-game item sales, has a share of 28%. That also includes the full KingsIsle and gamigo games. 14% is already coming from in-game advertisements. That's also a very large chunk, for example, coming from the WildTangent portfolio. While 8% is coming from PC and mobile casual games, and that's mainly subscription-based. All the segments we currently see a strong organic growth, and especially the advertisement is a part which we focus really on. Therefore, MGI, through the synergies, can really show strong organic growth in both segments and even have been able, with the hard comps of last year, to really accelerate and show 36% year-on-year. 51% of the group revenues is coming from the Media segment. Here it's very important to focus also on the supply-side platform and the demand-side platform, because that is what Ionut and Sameer were talking about. That's a software-as-a-service business, which is scaling quite heavily and where we have this high retention rate of 59%, while we're also adding constantly new clients with 20% increase in software-as-a-service accounts in the second quarter. We're adding new clients, we're scaling the existing clients, and therefore showing the strong growth of 159%. While the performance platform and influencer platform, where we entered quite early already in 2017 with the Mediakraft acquisition, for example, is something which is not as scalable, especially the influencer business. There's a lot of manual work included, et cetera. The margins are not so high, so that will most likely not be a focus area in the future and be rather focus full on the automated software-as-a-service, full transparent business and therefore, we might let run it out over the time. Coming now on page 88 to the operating cash flow and CapEx development. We have received over the last periods a lot of questions, how is the free cash flow evolving, et cetera, and therefore, I think last quarter we started with it, also showed in detail the free cash flow generation, maintenance CapEx, and these kind of things. This is what we see here on the left side. The operating cash flow has increased actually over the last years from zero in 2014. That's where more or less the story started after the start in 2012, has increased year-on-year quite substantially. We reached now EUR 33 million on a last 12 months basis. As mentioned earlier, we also had a working capital effect of EUR 8.7 million. That actually then also deducted a little bit to operating cash flow, while we still saw a strong increase, but without that, it would even have been better with EUR 41 million. Looking at the free cash flow generation of EUR 26 million, we also see that it has grown over the last years quite a bit. That's achieved because we have a very limited maintenance CapEx. Maintenance CapEx and MGI centers in the end, the further investments into our IP on games to sort of keep the revenue stable or to let them grow organically by a very low percentage point. That's EUR 7 million, and that's because we don't do the EUR 5 million-EUR 50 million investments into a fully new game, which means we have limited maintenance CapEx and rather than invest into expansion, which means, for example, also in a Nintendo Switch or also on the Media side on the HyBid Cloud or the ATOM product. Expansion CapEx has increased quite a bit to EUR 130 million now on a last 12 months basis. It includes also the purchase price payments for the KingsIsle acquisition. That's a majority actually of the expansion CapEx, but it also includes the investments, as mentioned, into new game IPs, new Media products, and we still therefore have a very strong free cash flow due to the limited maintenance CapEx. Going a bit more into the detail of the balance sheet, and here we see on the left side actually the intangible assets, which is the majority of the assets, which is normal, I would say, for a Gaming and a Media company, and EUR 437 million we have on the intangible side. Important to mention here that on an annual regular basis, actually we do it 2x per year with them, Deloitte is testing all the impairments and all the intangibles, which is also super important for us that we have a really a Big Four spend on that. On top, also the M&A transactions, which we do three to five per year. It's really a material thing which we have on the balance sheet, is then valued also by Ernst & Young. All the purchase price allocations we're doing with them, and therefore we have a pretty good setup, I would say, and very professional for the main asset, which is the intangible assets on our balance sheet. The trade and other receivables, if you look quarter-on-quarter, they have also increased quite a bit, also causing the working capital effect. Here it's important to mention that especially also on the Media side, the majority of the receivables are towards listed companies, which have a multi-billion cash position. There's a very low credit risk on our trade receivables. The cash and cash equivalents, EUR 246 million. Quite a strong cash position, I would say. We have used part of the cash already for the Smaato acquisition. To be in detail, EUR 101 million on a net cash-out basis has been paid for Smaato. After the Smaato acquisition, we still have EUR 145 million cash on our bank account, plus a EUR 30 million RCF from UniCredit Bank, which is currently undrawn. There's quite a lot of cash position for further investments in the future. On the total liabilities and equity side, EUR 292 million equity, a 38% equity ratio, also very healthy from my point of view. Out of the long-term liabilities, that's also important point, EUR 293 million is interest-bearing debt, while we actually also have made here, very transparent, so I split out the KingsIsle deferred purchase price payments, which are currently EUR 21 million in the long-term liabilities and EUR 11 million in the short-term liabilities, which needs to be paid over the next 12 months exactly. Leverage ratio is currently at 1.0x, and interest coverage ratio is at 4.3x. After the Smaato acquisition, obviously after the cash out, also the leverage increases a bit. 1.9x is it now on a pro forma basis, but there we also take the last 12 months' Smaato EBITDA into account and the last 12 months' KingsIsle into account. Leverage has decreased over time quite a bit. We started with 7x in 2014. That's after the company was restructured, then we also increased the EBITDA and free cash flow. Leverage was decreasing, and then we traded between 2x and 3x in the last five years. That's also what we have set as our financial target to be very transparent and to also make sure that we don't overdo it in terms of leverage. 1.9x, I think, is a pretty decent number. What we have announced yesterday morning together with the second quarter release is that we're also looking into another tap issue, raising up to EUR 80 million bonds, especially also here under our Nordic bond format. EUR 25 million out of it, we also want to use to refinance our unsecured German bond with a quite high interest of 7%, also decreasing financing cost over time. The debt profile we see on the slide as well. After the bond issue, if it is successful, which we expect, obviously, EUR 145 million will be the cash on bank, plus the EUR 55 million which we'll put on an escrow for further M&A transaction, which means EUR 200 million cash for further investments, plus EUR 30 million RCF, while we, again, also want to make sure that our net leverage stays over the years between 2x and 3x. Coming now a little bit more into the valuation part. That is something also how we position MGI. On the left side, we actually see the pure ad-tech players. We have Verve standalone, what to compare with. Here we see quite a lot of companies which recently also IPO'd like PubMatic, Viant. All of them have made an IPO in the United States. We can also see that the valuations have gone up quite a bit. While on the pure Gaming side, that's more the gamigo business, standalone business model. We see, for example, Embracer, Still front, Zynga and Skillz, which have more comparable multiples with us. Zynga and Skillz, for example, they're now also entering more the vertical part. Zynga, for example, acquired Chartboost, Skillz acquired Aarki, and therefore they go vertical, but I would say they're not as far as we yet, and therefore we're positioning ourselves more as an owned and operated ad-tech player with a very strong own content from the games, and that's more the MGI business model, I would say. What we can see here also is in a comparison with U.S. players, AppLovin and ironSource have also recently just have done their IPOs, that the valuation gap is quite high and that there's much more work which we also need to do and put this story into the market. That's also the reason why, for example, Sameer and Ionut are here to really explain what we do, how the synergies work, and how the overall MGI business model comes together with a very strong Gaming part. Coming now to the financial outlook of MGI after Remco will then give more the commercial outlook. The 2020 numbers were already quite strong, I would say. We issued an initial financial guidance of EUR 220 million-EUR 240 million, with a strong EBITDA of EUR 60 million-EUR 65 million, and just recently updated this guidance because Smaato we expect to be first time consolidated in the last quarter. Here we now expect EUR 234 million revenues and up to EUR 254 million, and EUR 65 million-EUR 70 million EBITDA, which means a revenue growth of 67%-81%, and an EBITDA growth of 123%-141%, which we see here as well is that the EBITDA is increasing much faster than the revenues, which means we're really scaling into a much higher profitability over time now, and that also the EBIT, for example, will increase quite a bit in 2021. That brings us to the last part of the presentation, or at least of the financial part. The midterm financial targets, we have put them in place already two years ago and have not changed them yet, and also don't want to change them because we want to grow sustainable with a 25%-30% CAGR over the coming years, while we actually have achieved now a 36% organic growth in the second quarter, 38% in the first quarter. Outperformed already that target standalone just with organic growth, while the target was set as a combined basis, M&A and organic. Nevertheless, we also want to achieve that in the coming years and rather being conservative and don't overdo it because we don't want to be forced to also do further M&A to show all our growth numbers. Adjusted EBITDA margin 25%-30%, there we had 27% in the second quarter. EBIT margin 15%-20%, 19% achieved in the second quarter. Net leverage of 2x to 3x, 1.9x now on a pro forma basis after the Smaato acquisition and taking also the last 12 months EBITDA into account. We can really tick the box for all the financial targets here and also want to achieve them on the mid-term basis. That brings me to an end already of the financial part, and then I would like to hand over to Remco for an outlook. Thank you. Yeah. Thanks, Paul. I promise to keep it a bit shorter this time. Coming to the outlook, Paul has shown the financial outlook already, it needs to be done, of course, it needs to be realized. Therefore we have just split it a bit in one slide, I'll highlight the different parts of it. First, to get into Gaming, what we further do is further drive organic growth with multiple initiatives. Many are on the way. There are new ones started all the time. Targeting three DLCs per game per year, per large MMO, I have to say here. Geo expansion of the existing portfolio. KingsIsle, for example, we'll see those things. That's actually one thing. KingsIsle growth this year is of course not in our current organic growth numbers because it was just acquired this year, so it will only come in next year, but it is growing. That's the good news. Increase efficient marketing new users, and we will launch three new games still this year. On the M&A side, we're targeting three to five transactions per year within the Gaming segment. We have done one transaction so far, so there's still hopefully a bit more to come. We will not let us forced to exactly stick to the three to five. I mean, the one acquisition, KingsIsle, was a big one and we rather don't do more acquisitions than bad acquisitions, but we like to do a few more, and as you saw on the target list, there are a few more lined up. Important here that we further stick to our conservative multiples and that it is really the same kind of synergetic business, so sustainable games and that with that we can further grow. Focus on mobile, I mentioned already before and further when we buy something, consequent integration. On the Media side, we need to still close Smaato. Interesting story there. The previous owner of, let's say, let go the former CEO and there's now an interim CEO in Smaato, after signing, which is one of our people already, Matthew Deets. We are already managing the company before it's closed, which is really pretty unique. It's also a lot of trust, of course, of the sellers. We hope to close the transaction soon. What we're really working on, we have a great platform, we have great services, but great services also need to be sold. Stephanie Vandenberg just joined us, really stepping up the whole sales in the U.S. We are really investing also a lot in adding extra salespeople. Very important. Rollout of AdCloud and ATOM, very important as products and with a lot of possibilities, opportunity. Implement pod structure. We've grown so large in the Media side that we really want to organize ourselves a bit different. Ionut, Sameer each had 20 direct reports kind of, a bit overdoing it. We have now really said, okay, we make more business unit structure. We are there also building up team-wise, also hiring some extra managers. Important of course, because with further M&A also it needs all to be managed and with each M&A case, we get good management on board, good new people, but still sometimes it makes sense to add also some external people. Optimizing innovation, very important. Further international expansion also here, focus on Asia also, for next year, further increasing sales force, further increasing the technology, the product innovation, et cetera. Also here, on the M&A side, three to five targets per year that we typically would like to do. Also here with conservative multiples, which in the U.S. is getting a little bit more difficult because a lot of companies are trying to buy Media companies. Further targeting scale here or missing parts. Focus on Asia is important. It has a bit to do with also the multiples. We see very nice opportunities there and having a tech platform, it makes sense to go international. For example, in Indonesia we have with the Smaato deal a joint venture already with one of the telcos. That's a nice way to also build that further out. Southeast Asia especially is giving us a good opportunity there. Consequent integration and optimization also on the Media part. In general, or more on the synergy part, actively driving forward the synergies, and that's what Paul also showed. Our EBITDA as a percentage of revenue, is getting better and better, and this has to do with all these synergies and we further will continue to drive that. It's a combination of saving costs, but also more scale of course. Filling in the missing parts. Also further working on the synergies between Media and Gaming, strengthening game launches by the Media part and improving the data optimization part. Especially on the data part, we think we can do a lot more than we're doing today. On the corporate side, relocation, mentioned that before, so that's one of our high focus points there. We want to get out of Malta. It's a nice island to go on holiday. We want to be somewhere else. We're working on that. ESG, further professionalization of the organization. M&A department, we've just done some steps. Jens-Christian Fritz, who was on one of my first slides, joined us as the Chief Investment Officer. He has a big career in, let's say, Moonfare, EY, and several other companies that he worked. A lot of experience on M&A front. He will build up a team of up to 10 people, because so far we've been doing M&A, either Jens or myself or somebody else out of the organization was doing it and grabbing some people and doing the M&A case. We want to professionalize there. Also to be able to do those three to five cases in both of the segments per year. Capital markets, of course, extremely important to do presentations like this, to talk to our investors, to thank them for their trust, and to give them as much information as we can to also help you taking your decisions. Also to the analysts, of course. The last point, refinancing the German bond, which I already talked about. This bring me to the last slide. It is a slide just summarizing. Clear roadmap. We're doing this now for a bit over eight years. In October, it will be nine. Yeah, low business risk focus. I think that's one of the things that really makes us a bit outstanding in the Gaming segment. We try not to go into big launch risks, all these kind of things, development risks. Really keep it low and concentrating on games with steady revenue streams. Strong organic growth. Many projects that we're working on for the organic growth. Not all will be successful, but the mix does it, utilizing synergies between Media and Gaming, synergetic M&A, and integrating the acquired targets. That brings us to the end of the presentations, and time for questions. Time for questions. I think we start with asking the team to step up on the stage together with you, right, Remco? Yeah. Okay. Now we also have the phone line open, we're going to check that one. Let's start to see if we have, yeah, over here, we have the first question coming in. Please introduce your name and representation. Yeah. Marlon Värnik, Pareto. Just a question on the organic growth, 36%. It's pretty impressive. 26 Media, 10 Gaming. Can you just comment a bit more here what reopening effects you've seen, and also IDFA potential impacts and so on, if you can dig into more of in this number? Yeah. You want to take it, Paul, or should I? I can start. Yeah. Is it on? Yeah. We actually made much more large content updates, which means the existing games showed a pretty strong growth even year-on-year. Looking on the player activity and these kind of things, especially in the last year, second quarter, we saw a strong increase in players. What we have been able actually is to maintain that player base. Even the play activity has gone down already in Q3 2020 quite a bit after some lockdowns were vanished during the summer season. Afterwards, we saw more normal playing behavior, and therefore, since the Q3 last year, actually, it's more or less back to a normal playing behavior while we have been kept the players, and therefore have maintained a much, much higher revenue base. All the content updates, especially, which we have patched to the games, have been then received by a much higher player base, and that has made us able to also show strong organic growth. I think the difference, especially on the gamigo portfolio, is also that we have a lot of sustainable long-term games, which means the players also intend to stay in the games. While if you have more casual games, players intend also after a strong spike might to drop out after a few quarters, and therefore we are in a pretty strong position. The mobile part, the IDFA change doesn't really hit us hard on the Gaming. It doesn't really had any impact as we were still with a very strong focus on the PC and in-house client games. Even if we would have mobile games, there's also a reason that we're looking at mobile game acquisitions with the tools that we have on the Media side with ATOM, with the other things. We're also not afraid of IDFA. We see it as an opportunity for us as a company to further drive revenues. Thank you. Okay, I put in one of mine while it's a soft one. I think it's for you, Remco. There is a saying, right, that culture beats strategy. I know it's a challenge in fast-growing companies. Maybe can you share some light on how you work with it? Yeah. Company culture, important thing. There is one nice anecdote that when we acquired Aeria Games, we found meters of books about company culture and all kinds of phrases for company culture. Company culture is really an important issue, but you cannot only read it in books. We are a company that did, let's say, a lot of acquisition cases. We have people from different companies, different nationalities, in different locations. For that, it is really important to drive a similarity. Now with COVID, people not being in the offices, it is even more difficult because you need to do this now over a Zoom conference or over Teams conference. As such, it is really putting a lot of, let's say, focus of us as management on it and also below. I think the most important point that is driving and that's making it easy for us is success. People are really seeing that they are part of a company that's going forward, and that's much more fun than a party that's under distress or that's suffering. What a lot of our team members have seen before. The second point is really a no nonsense integrity culture, where we really, if there's problems, raise them, solve them, take your own responsibility. I think we are pretty also here for the management talking. Feet on the ground, no nonsense team, no politics. That's very important. We don't want politics in this company. It's really about being successful, but also enjoying being successful. Yes, company culture is important, and it's something that's part of our daily jobs to make sure that we motivate our teams and also that everybody has the MGI feeling. Yeah. Okay. I have one coming in from online, and it's from James Edward, Berenberg, and the first goes like this. Ideal game question. The tick box chart showed that MGI is looking to expand into hyper-casual games. Could you discuss how the synergies from the hyper-casual games are different to other mobile games, given their ad-only monetization and large audience? That was the first one, and here comes the second. First about the monetization and large audience, and then as a follow-up, hyper-casual games are naturally very short lifetime games, and therefore, developers need to churn out new titles at a rapid rate, which seems against your core strategy on long lifetime cycle games. Who's picking up that one? I can take it and share it. You start. Share it with Ionut a little bit. The second question answers already a little bit the first question. You have a much lower lifetime with hyper-casual games, which means the synergies between games and Media is getting even more important because hyper-casual works the way that you acquire a user much, much cheaper than you show him a few ads, because the lifetime of a hyper-casual game is one or two weeks for a customer. You show him five to 10 ads, he's churning off. This means you have a high need of constant user acquisition in the game. Very short lifetime requires a very high need of acquiring users. To answer the second question, yes, indeed, you need to push live many games, to have some hit. On the other side, the games are also not comparable with PC or core gaming. The games are much, much smaller. They are built for people to play 5x to 10 x. It's really clicking one or two weeks, game's out. This means the development cycle of developing a hyper-casual game is much, much smaller. We are working with some external studios over there who do that, and they develop a game in a couple of days, two or three days, and that's also, we are not talking about development cost of EUR 5 million - EUR 10 million. We are talking about development cost of a game EUR 20,000 -EUR 50,000 each. I think that answers, at least from the Gaming side, the two questions already. Yeah. Okay. I can add from the Media side, maybe slightly. Actually, most of the ads within those games, which have high reach but low retention, it's actually mid-core and the IAP kind of games. The guys who actually build the game for, I don't know, hundreds of thousands or millions and then monetize to IAP, right, which is a bit more of our bread and butter. That's one part. The other part is how fast the iteration and the synergies actually work for hyper-casual. You need to show ads, monetize as fast as you can with the ads. Gain the users through ads, monetize through ads, and so on. That learning curve actually accelerates all of our other flywheels in terms of both monetization and user acquisition, right? With the creative part playing a huge role at the top of the, let's say, value chain. Just that. It's nice to see that Jens answered this question first because I would almost say as a Gaming standalone company, we would never have started hyper-casual games. As an integrated Media and Gaming company, it makes sense because it's more a Media product than a Gaming product, actually, even though it's a game, which will help us with collecting a lot of data and a lot of ad spaces, et cetera, and therefore it makes sense. Nevertheless, we need the Gaming know-how for it. Absolutely. Okay, good. We continue with the Media questions here. The Media division has exceptional underlying growth, and thanks to recent M&A, is now positioned to compete head-to-head within many of the largest ad-tech businesses globally, as you have shown. The question is, what are the growth constraints or hurdles to maintain this level of growth for the next five to six years? Sameer? I can take that. I love to use the word sky's the limit. Our expansion strategy is where we go and buy the next set of companies or how we utilize, how we integrate, how we focus on the synergies, right? As a group, I think we do a very decent job in identifying the synergies first, then we have some master plans of integrating and what integration for us, for the full platform actually means, right? We are not going to disrupt the existing way and means of how the revenues are generated, right? Synergies, integration plans, and the fitment into our complete platform story are those some of the core tenets that we really focus on. Otherwise, yeah, it's a nightmare. If I may add something here. We have plenty of M&A candidates. We have plenty of organic growth possibilities, and our main constraining factor at the moment is basically the team. We see that we've been growing so fast, that we need to hire extra people, that we need to build other management structures, and that's what I had also on the slide with the pod structure, pod or business unit structure, whatever you call it. We are organizing ourselves in a way that we can do the next wave of growth on the Media side. It's people at the moment, that's I would say the limiting factor. Okay. Okay, Edward, I hope that actually did the job for you. If not, you dial in and we pick you up again, right? We have another question coming in online, and it's from First Berlin, Ellis Acklin. The question goes like, can you break down the organic growth by segment and give us the absolute figures? I'm looking at you, Paul. 10% on the Gaming side means roughly EUR 2 million organic growth there. On the Media side, 26% of the EUR 29 million. That's the numbers. That's the numbers. Okay, we take the next question coming in online. It's from Sven Sauer from Kepler Cheuvreux. Question goes like, "Could you elaborate a little bit more why you are not planning to update your medium-term guidance? On the one hand, you are presenting all the plan synergies you will presumably achieve with both segments, and in addition, you have already partially reached the guidance excluding Smaato. Does this mean you are expecting lower growth and lower margin expansion going forward?" That one might be for you, Remco, right? I'll take this one. Yeah. The right answer to this is we are a conservative company, even though we grow so fast, and we don't want to overpromise. It's much easier to afterwards say, we were better than what we. Our target is already pretty fast growth, actually, altogether. We rather don't want to overpromise, but over-exceed. Okay, from the room. Here we go. We have Carnegie coming in with question. Yep. Hello? Hello? There we go. Yeah, Jamie from Carnegie again. Just quickly on the synergies between the Media and the Gaming side. On the slide that mentioned there were some missing parts that you're working on in the outlook, can you touch on what those would be, what a couple of those things you're working on? The biggest one is on the data side. There's so many more optimizations that we can do between the two segments. A lot of it is really also trial and error. Like Ionut and Sameer both showed an example in the slides, the WildTangent, where we're selling the ads now via Verve, which is a pretty simple one, just easy to understand. Also the retargeting of the Trove customers that we are now testing with connected TV, and there's a whole list of projects that we're working on, and it's not only the project. In many cases, we need data engineers, artificial intelligence, because in the beginning, you have human beings basically working out how the concept works, and then we want to automate it, or we automate it, because then only then we can scale it. There is still tons of opportunities that we go forward. Also with now adding, for example, Smaato. Smaato has brought in a lot more web capacity, or let's say Media capacity on the web part, which will also open up new synergy possibilities with the games. There is still tons of projects that we would like to do and cannot do all at the same time. Okay. More questions from the room? Yeah, here we go. Pareto, Marlon here again. Hey. Remco gave us, I think, a five-year revenue figure for MGI earlier today or something. A bit earlier, I think. Three-year, maybe. Either way, is it possible if you can dig into how it would look like, more longer term MGI in terms of Gaming and Media and so on, with margins and so on? If you maybe dig into, comment on more the long-term MGI. We have our long-term targets, which Paul showed on the slide, which is what is 25%-30% growth per year, which looks like moderate compared to our 70+% that we had in the last few years. We also need to take into account that we get larger, and as such, absolute growth numbers will be much higher if we're 25%, 30%, if you're much larger yourself. We see ourselves as a really integrated ad-tech was on the slide of Paul, but an integrated Gaming and Media company. If this is now exactly 50/50 or 60/40, at a certain point, it will depend a bit on organic growth and also on M&A, of course. We will further see the advantages of the two. We're seeing how we can even bring the parts closer. That's the projects that I was just mentioning. As such, we see there's so much further organic growth potential, we see now already that organic growth, it's not yet bypassing non-organic growth, I think it will be bypassing the non-organic part, that's also, of course, make us even stronger. The possibility still in both of the models, if you have a good IP or if you have a good technology that you can scale, like on the Media side, the more volume you bring on it, the more efficient you get. We are still weak on the EBITDA percentage on the Media part. Gaming, we have said we want to get to, what, 30%-40% EBITDA, where we are now really on the higher side. On the Media side, we have now passed, or let's say realized 16% EBITDA already in Q2, where we had a forecast of 15%-20% in the second half. We will be better there. Smaato is showing 30% EBITDA, we expect also the Media side to get more towards the 25%-30% EBITDA, which would in the mix also, of course, make it better. This is giving a bit of guidance on the numbers. It's not growth at any price. We want to have profitable growth, I think that it's also what we're proving that our EBITDA percentages goal is increasing faster than our growth percentage, that's also not indefinite, of course. I hope it answers your question. Yes. Thank you. Okay, let's check for final questions. Anything from the room? I see no questions in the room. What about the phone line? No. It's time to wrap up. Remco, actually, some final remarks from you before we close, right? Yeah. Yeah. I would like to thank all people online, all people later also looking to the video, all people who took the effort to come here to see us, all investors who trust us, all the analysts that do a lot of work of trying to understand what we are doing, and yeah, also my colleagues, of course, for the joy I am having, and also, I hope they are having working together, building this company. Yeah, we are extremely happy with these quarterly results, and second good quarter this year, and yeah, there's two more quarters to come. Looking forward to see you again, and really great to see people live again. Yeah of only having Zoom and this kind of things. Thank you. Great having you in Stockholm. Thanks to Jenny. Okay of course, for hosting this. I think with that, thank you everyone, and let's close for today.