Thank you very much. Good morning new listeners dialing in. With me today, I have Andreas Uddman, CFO, and Marina Andersson, Head of M&A. I will start to present some general facts about Jawaker and the possibilities we see, and the quality we see in this new member of the Stillfront family. Jawaker is the leading, highly profitable mobile gaming company in the Middle East, and they have built a very exciting app or game that consists of actually more than 30 games, in a classical board game genre. That is a genre which is very attractive for us because it has a longevity, which we will comment on in a few minutes. It also allows not only to play, it allows the users to connect with friends, join clubs, and socialize. Socializing is one of the most important drivers behind gaming. What we think is very exciting is that they attract not only social gamers, this is non-gamers. We are broadening our footprint in the region with new types of games and a new type of audience. What is also interesting when you have this one app approach is that you build an ecosystem, and that is something which is highly strategically important for us and for other gaming companies to do the next coming years. Jawaker has been excelling in doing that, not only talking about it, but also making it happen. One of the benefits is obviously that it supports cross-promotion and that you keep the users being able to enjoy many different games and socialize without shifting game. Very strong, obviously in the region where they are located, but they also have a significant audience in the Arabic diaspora in Europe and North America. They are headquartered in Abu Dhabi, in the U.A.E. They have some 3.8 million unique users currently, were in July. They are rapidly growing. Turning to next page. Some comments on the company. They have these assets on classical evergreen games with high retention, exceptional retention, I would say. Premium profitability and very high growth. Again, what we now get into, our presence that we've had since 2016 in the MENA region is that we have this much, much wider audience. We have a leading position within strategy games. Now we get a leading position within the culture so important in the region, classical games of board games and card games. What they have done exceptionally well, besides this one app approach, Jawaker, is that they have been able, through that, but also through the way that they have developed their games and the social features, is to achieve a very high retention. High retention is a key for both being profitable but also to be successful over a very, very long time. Also they have been able to, due to this cleverly designed one app approach, more than 50% currently are playing more than one game, and 25% are playing more than two games. They get players to really step by step play more of the some 35 games or so that are currently in the app. It's really working with this ecosystem approach, which is strategically and obviously operationally successful and important. Further, they have developed a reseller network of physical retailers where they can sell the in-game currency, which is established and very important, but necessary way of getting users in several regions and countries and territories in the world, not the least in the Middle East. We have the same with, or similar with Moonfrog in the Indian subcontinent. By having that, you get an opportunity for mass market consumers to buy your in-game currency in the way that is natural for a cash economy. It also helps profit margins because the gross margin are obviously supported by that. In this slide, you can see also the cohort charts, and that they are describing the exceptional strong retention and this is how spending comes from different cohorts of users coming in. Just look at the pre-2015 cohorts. That is obviously from 6- 10 years ago. They are still growing and have been growing constantly. You can see each layer of new users coming in adding value. You can also note in this slide that they have approximately 100% growth from Q2 2020- Q2 2021. It's very seldom you can see this quality of the cohorts, and that is not something that you're not just lucky with, that is a clear result of clever built business and good execution. Going to next slide five. Our rationale behind this is multiple. There are many reasons for us. As a headline, we would say that we see excellent synergy opportunities and scaling potential for this company coming into the Stillfront Group. As we have already, and since quite some time, an ambition and a strategy to get to more and more traffic generated within our own ecosystem. Jawaker have done that from the beginning, and really excelling in doing that. I think that they should contribute to the group's development in achieving that, but also in other ways to cross-promote. We have a significant scaling potential in the MENA region, and also by addressing the Arabic-speaking population worldwide, or for that sake, Arabic origin people that speak English for that sake as well. For doing that, you need also to have an expertise in User Acquisition and performance marketing, which is one of Stillfront Group's absolute strength, I would say, and the market reach that we have developed through the years. While Jawaker have looked at also at Babil Games, which we acquired in 2016, we can conclude that we have been able to scale that company in a very good way, together with obviously the team at Babil, also our Center of Excellence for marketing has been able, by joint efforts, to scale up that business. We see similar great opportunities to do this for Jawaker as well. Also, there are collaboration potential with Moonfrog regarding further develop and how to work with Reseller Networks, since both these studios work intensively with Reseller Networks. These are some of the most important synergy opportunities and scaling opportunities, there are more to it. We are really happy to take on this journey of creating synergies and scaling together with the guys at Jawaker. With that, I will hand over to Marina on the next slide six. The transaction structure. We pay upfront consideration of $205 million on a cash and debt-free basis, where of cash consideration is approximately $152 million, and share consideration approximately $53 million. Earnout consideration is for 2021, maximum $20 million if Jawaker reaches a certain EBIT target for the year, and such consideration would be zero for the midpoint of the communicated EBIT range. All of consideration for 2021 would be payable in cash. For 2022 to 2026, the earnout is 1x EBIT for each respective year, it will be payable 70% in cash and 30% in newly issued shares. I will move over to the finance consideration. In total, in fact, the transaction is approximately SEK 1.8 billion. Of that, SEK 1.3 billion is cash. We have also published, we did an accelerated book building yesterday. It was 16 months since we raised equity of cash equity the last time. We are using that time to go to market as well, and we were backed by all our big main shareholders, and we raised a total of SEK 1 billion. This is sort of a part of our financing strategy to continue to have our balance sheet in a good position and keep our leverage target around our communicated financial targets. Looking to the next slide, and that's page seven, looking a bit what Jawaker would have added for the first half of 2020, would have been consolidated. Our net revenues would have increased by 5%, with SEK 132 million. Especially as Jörgen was alluding to as well, is a very strong profitability. That would have increased our profits a little bit with SEK 82 million or 9%. There's a very profitable company, partially driven by the reseller networks where we don't have so-called platform fees in the same extent. Also, they are using UA, but not to the extent that we think and Jawaker thinks we can do in the future. They have a very strong underlying margin business, and we do think we can continue to keep a strong margin, but of course, focus on new installs going forward as well. Underlying a strong profit-generating business. With it also, that we are coming close to the year, turning to page eight, provide where we see Jawaker for the full year would have been consolidated for 2021. We expect them to deliver between SEK 270 million and SEK 310 million on net revenues and an adjusted EBIT of SEK 180 million to SEK 210 million. That would, using the mid-range, imply an upfront multiple of 8.9. With that, I hand back to Jörgen. Thank you, Andreas, and thank you, Marina Andersson. To conclude this, I would just like to emphasize that we are continuing our growth journey. Through this transaction, we add rapidly growing revenue with premium sustainable profitability, and this is very important that they have this uniquely strong retention also underpin the sustainability and the profitability, and that is very important. Bundling the players in one ecosystem is state of the art and will be very important and state of the art for any company that would like to be leading in the next coming years, we think. Also, this solidifies our position in the MENA region, and that is a very attractive region. The Arab-speaking, or the Arab population in the world is almost 450 million people. It's a massive market, mainly on mobile. We think it's very good that we're not only now are present in strategy, but also in classical games. This brings substantial, as mentioned, scaling opportunities as being part of Stillfront Group. With this, we're not over and done with. We will continue with working with our pipeline for making more fine deals in the future and take further steps towards our financial targets 2023. That was all from us. We open up for questions. Thank you. If you do wish to ask a question, please press zero one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero two to cancel. We have a question from the line of Nick Dempsey from Barclays. Please go ahead. Good morning, guys. I've got three questions. First of all, did you say that revenues were 100% higher in Q2 2021 than Q2 2020, or was that a different measure you were talking about? Baked into that, did they get a positive effect from the pandemic? Did they have very strong growth in Q2 2020 over Q2 2019? Second question, can you give an example of how Jawaker monetizes its games? Is advertising part of the mix there, or just describe how that works? The final question, would you perhaps lower margin initially by spending more on UA to drive good revenue growth over time, or you think you can manage all of that without initially lowering the high margin? Yes. Thank you. First of all, yes, I said that was what I meant and what you read. Approximately, as you can see on the cohort graph, obviously on the Y-axis is revenue. You can see that it's approximately, not exactly, but 100% increase from Q2 2020- Q2 2021. It's much higher even if you look Q2 2019- Q2 2020. They have been on a very impressive growth trajectory the last two years. As you also can see in that graph, they had a very little, but still some kind of COVID-19 effect in Q2 2020. You can see that it steps up there. These kind of games, just as it is for Stillfront in general, we don't have games that you play intensely for hours and spend more as you play or something, or buy more games or downloads, whatever, because they are not built for that purpose, basically. The effect that Stillfront Group had in general was that we could market our products in a completely different way, but the engagement levels and the cohort behaviors were very similar. That is also the case for the Jawaker. You can see some effects in that, but it's very little, and you can see that how they continue to grow, because their main means of achieving growth is through organic, almost a viral effect amongst the users. The Jawaker app, one should recall, is one of the largest app for classical games globally already. That's quite impressive. It generates a lot of traffic within the ecosystem, so they can continue to grow, hence, since they don't conduct so much UA, they didn't get that fantastic boost in the UA returns that we saw in the group otherwise. On the other hand, they have seen no slowdown either, so that's very solid development performance. That ties into your next question. They market very limited today through UA, and these guys are clever in many ways. Obviously, they have built a fantastic high-quality company. They have a very clear vision of how they have come to this point, but many years to come, how they should continue to build their position. They also are clever in the way that they know and see what they are not mastering that well, and that is UA. It's exceptionally difficult to build from a small studio's perspective, the kind of market reach that we have built in the group for many, many years now. They can tap into the formidable market reach that we have with more than 50 channels in almost 100 countries worldwide. Definitely, and maybe both in the MENA region and the Gulf States and so on, but also in many of the other territories where their target audience does exist. You need to master UA, so that is definitely something we can add. Doing that, as you rightly are into, would mean that potentially margin goes down, but then it goes down for the very good reason that we further fuel higher growth. I think that to what extent we will work with UA is, of course, a bit premature to say, but we hope, we think, and we are convinced that we can add that to the marketing blend and not only rely on which works quite well, the organic development of cross-promotion within the app. I hope that answers your question. Okay. Can I just clarify one thing? I meant do they generate revenues through advertising or is it all in-game spend? That was one of my questions, sorry. Sorry. No, very limited, I should say. Very limited ad revenues. Okay, that's great. Thank you. The next question comes from the line of Oscar Erixon from Carnegie. Please go ahead. Thank you. Good morning, guys. First of all, I don't know if you mentioned that, could you discuss what growth rate the Jawaker game grew in Q1 and Q2? Also how much have they spent on UA? I mean, is it 5%? Is it nothing, or just would be interesting to hear that. Thank you. Thank you, Oscar. Well, as you can see on slide four with the cohort graph, that is revenues on the Y-axis. You can pick any month to any month, basically, and see approximately the growth. I think that you have the answers on the growth. As I said, it's approximately 100% growth if you take April to April or May to May. They have been growing by 100% that. If you look 2019- 2020, it's more than 100%. I think that's a very impressive number. When it comes to UA. When it comes to UA, it's below 10%, so it's around 8%. Yeah. Okay, great. A question for you, Jörgen, and maybe Marina can help as well. The structure of the deal with an upfront payment, obviously, and two different earn-outs. The longer-term earn-outs with one tied to EBITDA and 2022, 2026. My take is sort of that you obviously expect the upfront multiple to be significantly lower in 2022, 2023, given strong growth here. You also pay the earn-out in 30% shares at the VWAP at the time. How do you think about the structure of the deal, which is quite interesting? Thank you. Yes. There are always many factors that comes in when you figure out what kind of deal structure is suitable for a certain transaction. In this case, it's a balance between that we would like to have a very clear incentive over a long time for the guys to really do what they are convinced they will do and more by having a longer earn-out than we usually have. At the same time, from our perspective, on the buying side perspective, of course, if they double, triple, quadruple their profits over a certain time or a longer time period, six years from now, then of course, the value of that company at that point in time is much higher. If you sum all the earn-out we have paid and the upfront we have paid on the lower profitability, the actual total multiple that we will have paid, I think will be very attractive. It also will be good because the seller rightly have been paid a good price for a top-quality company. Basically, we share the risk award over a longer time. I think that is one of the key elements of the construct in this case. Excellent. I mean, the company seems super interesting, not least the cohort behavior here. I mean, what can you take from this and sort of incorporate and learn from for the rest of your group in a quite interesting time in mobile gaming here with low value in keeping users in your own ecosystem? If you could elaborate on that a little bit further, would be really interesting. Yeah, that is true. They are an exceptionally high-quality company for sure. You can see that, and you have read that in the cohort thing. We have said for quite some time, and we are conducting work internally in Stillfront beside the transaction on how to establish our own ecosystem, so to speak, so that we basically We're not as we traditionally have done, we buy one user to one game, we buy another user to another game. That has been convenient, profitable, and straightforward in every way. At some point in time, you can and at some point you must buy one user to one game and get that user to play not only that game, but several games in your portfolio. To get to that point, you need to have a lot of things in place. It's not as easy as it might sound. You need mechanisms, processes, and a lot of supportive software to get this happening. I think it's very encouraging to see someone that thought with that mindset could achieve that with 50 people over this soon 10 years in a really perfect way for their kind of product. I think that we will see learnings from that, and they will be able to contribute with their experiences, obviously. That is definitely the case. I think also the way that they work with reseller network for other cash economies, they can share their learnings, and they can learn from Moonfrog and others. That is an important thing. Cash economies will be around for many years, and they create tremendous moats for competition. In mass market, in such cash economies, you need to have a reseller network, and that is also something which is very tricky to do and takes some time, and it requires knowledge. I think with this acquisition, we get a much wider footprint. We are strong on strategy. Now we are strong on classical games and more mass market, non-gamer product, and then you need this. I think there are several areas where we can learn mutually from Jawaker, and they can learn from other studios. I mean, just to add to that on UA again, UA has been very limited historically. What I mentioned below 10% is on the upper end, I would say it has been historically lower, 5%-10%. There we see a lot of potential within the group where we can scale and add our competence and our knowledge. Great. Just one follow-up here. Just interested to hear your rollout plans ahead. You mentioned, I think in the press release, India as a region that likes these types of games and similar dynamics, of course, with cash economies. Where is Jawaker not today, and where do you plan to roll out ahead? They have 3.2 million unique players today, which is a significant number. Again, there are between 430 million and 460 million Arabs globally. Obviously they have a fantastic market to go with. The reason why I'm emphasizing that is this is culturally strongly interwoven games. They are so specific for the cultures, and there is a culture of playing these kind of games, which is very strong. I think they have a massive market still to go for. They're definitely not nearby having reached the potential growing there. I think classical games and board games is an area that we have set up as strategically very important for Stillfront since several years back. Now we have a top-quality studio in a region where board games also is very important and strong. I think that we should add other board games into Stillfront's portfolio as well. In the Indian subcontinent is also important, but also in Western countries. I think and hope that their experience of how you optimize and how you fine-tune and add social features and other features into apply that to these kind of games is really applicable for other regions as well. You cannot take all of these games and market them to Western community because they are culture-specific, basically. The generic knowledge we can use. Understood. Thank you very much. Just as a final reminder, if you do wish to ask a question, please press zero one on your telephone keypad now. We have another question from the line of Martin Arnell from DNB Markets. Please go ahead. Good morning, everyone. I want to ask you about the customer base, how much is Europe and U.S. so far? First of all we're checking that. Is it minor or is it like- Just a second. First of all, the user base, you are not allowed to play if you are beneath 18 years. This is for Stillfront in general, we are addressing people that are typically 25 to 45. That goes for these games as well. The revenue distribution for 2021, Marina will mention. Primarily in Europe and also U.S. and Turkey, it's diaspora who is playing those games because they are cultural games, so cultural specific games. For Turkey, U.K., Germany, U.S. and France in total, we have approximately 30%, a bit more than 30% for 2021. Okay. Excellent. Thank you. When you look at the ARPDAU in these classic board games, how does it compare to your other genres? We haven't gone out with the ARPDAU, so that is not a public number yet. We can come back to that. Importantly, the more we have dug into the product-related and game-related KPIs, the happier we've been because it's really solid, and they have been able to step by step by step for 10 years improve those numbers, including ARPDAU. Of course, these games are not strategy games where you have much higher numbers, but they are improving, and they're working very systematically with listening to its community, adding attractive content and thereby increasing the ARPDAU. We will come back to that when we have consolidated Jawa ker into our books. Excellent. Thank you. Just on the margin and growth expectations here going forward, even sort of how to calculate those forecasts trying to get the full picture of what price this will be. How should we look at the higher margins in this business? Will it be growth above the average here going forward, do you think? We don't give forecast for several years ahead for one single studio. If you look at the cohort graph on slide four, you can see how they have been able to grow, not the least during Q2 this year. I think that this is a high-growth company that we can easily conclude, and they're not like if they would have had 80% of the target audience already, that will of course have limited their opportunities. Again, they have 3.2 million MAUs out of, in theory, a couple of hundred million that could be in their audience. I think that they definitely have, even though they are the leading one by far, and one of the largest classical game apps globally already, but still they have so much more to grow. I think we will see a very strong growth for a very long time. If we also can add to that UA, they can more easily grasp even though as Marina pointed out, they have actually over 30% in the diaspora. Arabs not being in the Arab region, that could be more easily grasped that pocket, or not only pocket, but that area of growth with UA that they don't master today, but we can add from our center of excellence. I think this, without giving any forecast, we don't do that, but this is a high-growth company for many, many years to come. Excellent. When it comes to margins, just to clarify that, if we don't add any UA, they will grow at high numbers as they have done for 10 years, just through the fact that they have this one app approach and cross-promote between that and a viral marketing that is of course, very profit-oriented since you don't pay any UA. If we add UA, we accelerate growth further, but of course the margins percentage-wise will go down. In absolute numbers, the company will earn more money. That is the dynamic as you probably already have understood. Excellent. Thank you, Jörgen, for that. As there are no further questions, I'll hand back to the speakers for closing remarks. Thank you for dialing in, and we are thereby concluding this presentation. Thank you all.
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