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Q2 2025 PRESENTATION SEPTEMBER 2025
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DISCLAIMER DISCLAIMER This presentation (“Presentation”) has been prepared by Huuuge, Inc. (the “Company”). By reading the Presentation, you agree to be bound by the following limitations. The Presentation is protected by copyright law, in particular the Polish Act of February 4, 1994 on Copyright and Related Rights. Copying, duplicating and use of part or all of the photos and graphics contained in the Presentation without the Company's permission is prohibited. The Presentation does not constitute an offer to sell or subscribe for or a solicitation of an offer to purchase or subscribe for securities. This Presentation is provided for informational purposes only. This Presentation does not constitute or form part of and should not be construed as an offer, solicitation or invitation to sell or issue, or an offer, solicitation or invitation to, subscribe for, underwrite, buy or otherwise acquire, securities of the Company or any of its subsidiaries in any jurisdiction, or an inducement/recommendation to enter into investment activity in any jurisdiction. Neither this Presentation nor any part hereof, nor the fact of its distribution or issuance, shall form the basis of, or be relied on in connection with, any contract, commitment or investment decision whatsoever. The information contained herein is only preliminary and indicative and does not purport to contain the information that would be required to evaluate the Company, its financial position and/or any investment decision. This Presentation is not intended to provide, and should not be relied upon for, accounting, legal or tax advice nor does it constitute an investment recommendation. This Presentation is given in conjunction with an oral presentation and should not be taken out of context. No information included in this Presentation may be considered as investment advice or investment recommendation. The information contained in the Presentation has not been independently verified. No representation, warranty or undertaking, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. Matters discussed in this Presentation may constitute forward-looking statements. Forward-looking statements constitute statements that are other than statements of historical fact. Statements which include the words “expects,” “intends,” “plans,” “believes,” “projects,” “anticipates,” “will,” “targets,” “aims,” “may,” “would,” “could,” “continue” and similar statements of a future or forward-looking nature identify such forward-looking statements. Forward-looking statements include in particular statements regarding the financial performance, business strategy, plans and objectives of the Company for future operations (including growth potential). All forward-looking statements included in this Presentation address matters that involve known and unknown risks, uncertainties and other factors which could cause the Company’s actual results, performance or achievements to differ materially from those indicated in such forward-looking statements and from past results, performance or achievements of the Company. Such forward-looking statements are based upon various assumptions and estimates regarding future events, including numerous assumptions regarding the Company’s present and future business strategies and future operating environment. Although the Company believes that these estimates and assumptions are reasonable, they may prove to be incorrect. The information, opinions and forward-looking statements contained in this Presentation speak only as at the date of this Presentation and are subject to change without notice. The Company, its directors, agents, employees and advisors do not intend to, and expressly disclaim any duty, undertaking or obligation to, make or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this Presentation to reflect any change in events, conditions or circumstances. To the extent permitted under the applicable provisions of law, neither the Company nor any of their affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation. This Presentation is not for distribution or use by any person or entity in any jurisdiction where such distribution or use would be contrary to local law or regulation or which would subject the Company or any of its affiliates to authorization, notification, licensing or other registration requirements under applicable laws. Any failure to comply with this restriction may constitute a violation of United States securities laws. Persons into whose possession this Presentation comes should observe all such restrictions.
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Wojciech Wronowski Chief Executive Officer Maciej Hebda Treasurer, EVP Finance To learn more please visit: https://ir.huuugegames.com/governance TODAY’S PRESENTERS
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$59m Revenue-7.2% YoY, -5.8% QoQ $24m Adj. EBITDA+23.4% YoY, -5.1% QoQ $120M SBB and Capital Distribution Policy Announced Q2 2025 HIGHLIGHTS 41% Adj. EBITDA Margin+10.1pp YoY, +0.3 pp QoQ Direct-to-Consumer hit another record high in Q2 2025 DTC responsible for 22% of sales in Q2 2025 and 24.6% in August 2025 Executing USD 120m SBB this autumn USD 360m returned to shareholders over the last 4 years Third quarter in a row with profitability over 40% USD 25m net OCF in Q2’25 - continued strong cash generation Regular cash distribution policy announced 50–100% of annual FCF to be distributed to shareholders
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STRATEGIC PRIORITIES UPDATE Priority #1 Stabilize the core business Priority #2 New Market Entry Priority #3 M&A Priority #4 Capital Distribution Policy ● Focus on closing the revenue dynamics gap between Huuuge and the broader Social Casino market ● Product longevity - focus on player retention over short term monetization ● D2C ● Doubling down on successful features ● Exploring strategic entry into the iGaming market ● We are refining the market entry strategy ● We are building internal capabilities ● Build vs Buy vs Rent - all options are being considered ● We are no longer pursuing potential acquisitions in the casual mobile F2P gaming space ● The company shifted its focus and is exploring M&A iGaming opportunities to accelerate entry into new markets; however, the initiative remains at an early stage ● We have a clearer view of the potential investment required for iGaming market entry ● Reviewed balance sheet position and all investment needs and we resolved to return all surplus cash to shareholders and to commit to a disciplined, long-term capital deployment strategy UPDATE UPDATE UPDATE
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CAPITAL DISTRIBUTION POLICY - DETAILS Share BuyBack in 2025 ● Executing USD 120m SBB this autumn ● Invitation to Sell published on September 18th ● Acceptance of Sale Offers: September 19th – October 18th, 6:00 a.m. Warsaw time / 12:00 a.m. (midnight) New York time ● Buy Back shares to be retired, except for those needed to satisfy employee stock option plans #1 Capital distribution policy ● Range: 50%–100% of annual Free Cash Flow (FCF) to be distributed ● Timing: Based on FCF of a given year, distribution occurs in the subsequent fiscal year #2
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BUSINESS UPDATE
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Q2 2025 CORE FRANCHISES ● The YoY revenue decline in Q2 2025 was consistent with the softening social casino market. ● DAU decreased by 14.1% YoY and by 6.5% QoQ ● ARPDAU increased by 9.3% YoY and by 1.1% QoQ ● ARPPU increased by 0.8% YoY by 2.5% QoQ Marketing spend in Q3 2025 (relative to revenue) could increase slightly comparing to Q2 2025. Maintaining stable and long-term profitability across our core portfolio remains our primary focus.
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● DTC revenue reached 22% of the total revenue in Q2 2025 and 24.6% in August 2025 ● We continue to invest further in this channel and we expect more long-term upside, with DTC as % of revenue ● Since May, our iOS game in the US includes in-game links to our D2C platform, enabled by Apple’s post-Epic case policy changes. Direct-To-Consumer (Webshop) Revenue as % of Total Revenue CORE FRANCHISES: DTC CHANNEL GROWTH
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FINANCIALUPDATE
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FINANCIAL PERFORMANCE Constant focus on profitability; positive impact of the collective layoffs on costs expected in H2 2025 $ m Q2 25 Q2 24 YoY Q1 25 QoQ Revenue 58.8 63.4 -7.2% 62.4 -5.8% Gross profit/(loss) on sales 44.1 45.7 -3.5% 46.9 -5.8% Sales and marketing expenses -11.5 -15.6 -25.9% -11.1 4.0% Research and development expenses -4.1 -5.9 -31.0% -6.0 -32.4% General and administrative expenses -6.9 -7.8 -11.7% -7.5 -8.3% Other operating income/(expense), net -0.9 0.0 n/a 0.2 n/a Operating result 20.8 16.5 26.0% 22.4 -7.3% Finance income/expense, net -0.4 1.9 14.5% 1.0 n/a Profit/(loss) before tax 20.4 18.4 11.0% 23.4 -13.0% Income tax -3.1 -3.3 -5.2% -3.6 -13.4% Net result for the period 17.3 15.1 14.5% 19.8 -12.9% Adjusted EBITDA 24.0 19.4 23.4% 25.3 -5.1%
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CASH FLOW STATEMENT Even after factoring in the announced $120m share buyback, we will maintain a strong cash balance. This allows us to pursue a wide range of potential growth options $ m Q2 2025 Q2 2024 HY 2025 HY 2024 Pre-tax profit 20.4 18.4 43.8 38.5 Net Operating CF 25.3 18.3 47.6 32.7 Net Investing CF 1.8 0.1 2.9 -2.5 Net Financing CF -1.1 -71.4 -2.6 -72.5 Change in cash 26.0 -53.0 47.9 -42.2 Cash End of Period 188.6 109.6 188.6 109.6
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2025
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MARKET POSITIONING 2025 KEY HIGHLIGHTS ● Marketing spend to slightly increase in H2, but it should remain in the low teens (% of revenue) and we reiterate our guidance for a significant decline YoY. Maintaining strict payback discipline remains a priority ● Following recent company-wide restructuring we expect operating costs (ex-UA) to decline YoY in 2025 and to be lower by ~$12m on an annualised basis ● High confidence that these measures will lead to a YoY increase in Adjusted EBITDA and higher profitability Revenue Marketing spend Opex (non-marketing) Adjusted EBITDA Adjusted EBITDA margin (%) INCREASE INCREASE DECLINE SIGNIFICANT DECLINE SLIGHT DECLINE Guidance for 2025 (% YoY dynamics)
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For more information, please visit ir.huuugegames.com THANKYOU Direct-to-Consumer hit another record high in Q2 2025 DTC responsible for 22% of sales in Q2 2025 and 24.6% in August 2025 Executing USD 120m SBB this autumn USD 360 m returned to shareholders over the last 4 years Third quarter in a row with profitability over 40% USD 25m net OCF in Q2’25 - continued strong cash generation Regular cash distribution policy announced 50–100% of annual FCF to be distributed to shareholders
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FINANCIAL DATA
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APPENDIX - KPI’S
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ARPDAU Average revenue per daily active user. ARPPU Average revenue per paying user. DAU The number of individual users who played a game on a particular day. DPU The number of players (active users) who made a purchase on a given day. EPS Earnings per share Live Ops Activities aimed at increasing the player engagement, among others, by adding new features to games, recurring and one-off virtual events in which players can participate, and active management of promotions within the game. MAU The number of individual users who played a game during a particular month. Monthly Conversion The percentage of MAU that made at least one purchase in a month during the same period In-app purchases. Payments made by users after downloading a game, in connection with the purchase of additional game features. In-app purchases can be made through various non-cash payment instruments (e.g. payment card, transfer), various electronic channels (e.g. e-banking, mobile phone) or using payment service providers (e.g. PayPal). MPU MPU is defined as the number of players (active users) who made a purchase at least once in a given month. Retention The number of users who continued to use the game after a certain period of time after downloading the application. UAMC User acquisition marketing campaigns Process of the acquisition of users through paid campaigns or promotional offers APPENDIX - GLOSSARY