15 September 2021

DISCLAIMER: This presentation contains forward-looking statements. These statements have been
made by the Directors in good faith based on the information available to them up to the time of
their approval of this presentation. Due to inherent uncertainties, including both economic andbusiness risk factors underlying such forward-looking information, actual results may differ
materially from those expressed or implied by these forward-looking statements. The Directors
undertake no obligation to update any forward-looking statements contained in this presentation,
whether as a result of new information, future events or otherwise.
2

H1 2021 highlights

Financial overview

Strategy & Outlook

3

Strong H1 revenue growth including
significant organic growth despitesome continued COVID-19 related
operational constraints

Continued growth in profitability andcash generation driving strong
balance sheet and liquidity

Continued to deliver on ouracquisition strategy with four highquality acquisitions completed

Good progress with our Responsible
Business agenda; new Group
Environmental policy and Women in
Games partnership

CEO process well advanced – further
announcement expected in comingweeks

H2 has started well with strong
demand for most services driven by abuoyant market and renewed focus on
new content creation

Expect to further cement our position as the‘go to’ provider of technical and creative services to a global client base4

Revenue

Adjusted EBITDA

Adjusted EPS+ 37.6%+ 64.6%+ 64.6%

Revenue up to €238.7m

Adjusted EBITDA €50.7m

Adjusted EPS 41.57c(H1 2020: €173.5m)(H1 2020: €30.8m)(H1 2020: 25.25c)

Organic Revenue growth

Adjusted EBITDA margin

Interim dividend+ 22.9%+ 21.2%0.70p(H1 2020: 8.0%, FY 2020: 11.7%)

Increased by 3.4% pts(H1 2020: 17.8%)

20.7% increase over 2019 interim
dividend(H1 2020: 0.00p, H1 2019: 0.58p)

Definitions of the performance measures are provided in the
Alternative performance measures chart in the Appendix

5

4
Acquisitions completed in 2021

€105m
Total maximum consideration

Strong pipeline with a primary focus remaining
on Game Development and Marketing Services

62021 progress• Women in Games partnership announced
which sees Keywords help power their 500
strong Ambassador programme across 52
countries

Committed to conducting our business
responsibly and operating to the highest
levels of honesty, integrity and ethicalconduct• Group’s first Environmental Policy covering
measures to cut greenhouse gas (carbon)
emissions, energy, waste and otherenvironmental impacts• Various initiatives to help support colleagues,
including COVID-19 vaccine clinics and more
recently, the support for colleagues impacted
by hurricane in New Orleans

7Financial overview

8Revenue

H1 2021€m
238.7

H1 2020€m
173.5%
change37.6%

Organic Revenue growth

22.9%

8.0%

Adjusted EBITDA
MarginEBITDA

50.7
21.2%
40.8

30.8
17.8%
26.2

64.6%

Adjusted PBTMargin

39.7
16.6%

21.7
12.5%

82.9%

PBT

21.9

11.1

97.3%

Adjusted EPS (€ cents per share)

41.57

25.25

64.6%

Adjusted free cash flow before tax

37.7

10.9

245.9%

Adjusted cash conversion rate

94.9%

50.2%

‒

Reported revenue up 37.6%, Organic Revenue up 22.9%‒

Adjusted EBITDA up 64.6% with margin improving 3.4% pts to
21.2%
•

55.7%

Margin benefitted from a full six months of the ongoing
reduction in certain costs during COVID-19 combined withthe revenue improvement following H1 2020 shortfalls thatheld back margins in that period‒

Adjusted PBT up 82.9% with margin improving 4.1% pts to
16.6%; above the Group’s historical range of between 14-15%
due to the short-term benefit from certain costs savings as aresult of COVID-19‒

PBT increased by 97.3%, reflecting the increase in Adjusted
PBT and COVID-19 costs benefits mentioned above

9

% of
revenue

Organic Revenue
GrowthH1 21 H1 20

H1revenue
growth10%25.4%

13.0%*

20.1%% ofrevenue18%

Organic Revenue
GrowthH1 21 H1 20

H1revenue
growth

24.3%

10.7%

20.9%

10.7%

(7.4%)

8.9%

19.6%

1.9%

17.8%

17.7%

5.5%

11.6%

10%

10%
50.6%

30.8%*

213.5%

5%

27%
15.5%

25.7%

63.6%

9%

12%
36.4%

0.5%

35.4%

* The prior year numbers has been re-classified to separately
report Marketing services, previously reported within the Art
Creation service line10

H1 2021

H1 2020

ChangeAdjusted EBITDA

€m
50.7

€m
30.8

€m
19.9

MMTC and VGTR

(3.8)

(4.3)

0.5

Working capital and other items

1.7

(6.6)

8.3

Capex - PPE

(9.4)

(4.9)

(4.5)

Capex - intangible assets

(0.2)

0.0

(0.2)

Payments of principal on lease liabilities

(4.6)

(3.9)

(0.7)

COVID -19 employment support subsidies

-

3.4

(3.4)

Operating cash flows

34.4

14.5

19.9

Interest paid

(0.8)

(0.9)

0.1

Free cash flow before tax

33.6

13.6

20.0

Tax

(9.8)

(2.0)

(7.8)

Free Cash Flow

23.8

11.6

12.2

Adjusted free cash flow before tax

37.7

10.9

26.8

Adjusted cash conversion rate

94.9%

50.2%

•

•

€12.2m increase in Free Cash Flow year on year driven by:•

Increase in Adjusted EBITDA of €19.9m•

Working capital improvement of €8.3m - trade receivable days
reduced to 41 (H1 2020: 46)•€4.5m increase in capex reflecting a return to more normal
levels of spending following the COVID-19 disruption•

The Group received no COVID-19 government employment
retention subsidies in H1 2021•

€7.8m increase in tax payments on the same period when theGroup benefitted from timing differences that resulted in lesspayments in the year in respect of the 2020 tax payable

Improvement in the adjusted cash flow conversion rate to 94.9% (H12020: 50.2%) partly driven by some COVID-19 phasing benefits

Definitions of the performance measures are provided in the
Alternative performance measures chart in the Appendix

11•Free cash flow
M&A - acquisition spend
M&A – acquisition and integration
costs
Dividends paid
Shares issue for cash
Underlying increase / (decrease) in
net cash / (debt)
FX and other items
Increase in net cash / (debt)
Opening net cash / (debt)
Closing net cash / (debt)

H1 2021€m
23.8(44.7)

H1 2020
€m
11.6
(1.3)

Change€m
12.2(43.4)

(1.5)

(1.2)

(0.3)

2.3

110.7

(108.4)(20.1)

119.8(139.9)1.3(18.8)
102.9
84.1

(0.9)
118.9
(17.9)
101.0

2.2(137.7)

Acquisition spend of €46.2m:•€44.7m on acquisitions in respect of the cash component ofboth current and prior year acquisitions•€1.5m of acquisition and integration costs•

Increase in net cash in H1 2020 driven by successful €110m equity
placing was used to pay down drawings on RCF and deployed on thevalue creating M&A programme•

Decrease in net cash of €18.8m versus increase of €118.9m in H1
2020•

Net cash at 30 June 2021 of €84.1m (H1 2020: net cash €101.0m,
FY 2020: €102.9m)

Definitions of the performance measures are provided in the
Alternative performance measures chart in the Appendix

12

Robust financial position to enable strategy••

Full year guidance•Strong H1 performance and expect demand to continue acrossmost service lines•

Organic growth rates expected to moderate against stronger H22020 comparatives

Cash generative business with an adjusted free cash flow
conversion of 94.9% in H1 2021 (H1 2020: 50.2%)
Revolving Credit Facility (RCF) of €100m expiring in 2022with a €40m accordion and option to extend for 1 year
•

•

•

•

€184m of liquidity through cash and undrawn committed
RCF headroom

Adjusted PBT margins expected to exceed 14 – 15% historicrange but return towards this range in 2022 as some costs
return and as we invest further in the business•

Adjusted Effective Tax rate in line with the 2020 rate of ~21%•

Capex at a higher level to 2020 relative to revenue reflectingsome expansionary capex and investment in equipment•

Adjusted Cash Conversion rate of ~80%•

Following our trading update in early August, all of the above
items are reflected in the current market consensus for 2021

Balance sheet capacity to:•provide flexibility to execute acquisition strategy•

support the business and customers through andbeyond any COVID-19 disruption

Reviewing a strong pipeline of acquisition opportunities

13

Strategy & service line
outlook14

Unique end-to-end global
services platform in a highly
fragmented market

Relationships with the top
games companies; who areincreasingly outsourcing, in amore structured way

Unrivalled scale and flexible
resource, in proximity to ourclients

Attractive employer to talentpools around the world

Resilient business,diversified by geography,
service and client baseCompelling platform fortarget acquisitions

Increasing barriers to entry as a result of reputation for quality, expertise, scale, global reach and full range of services

15

Continue to move up the value chain:

Art Services

Functional Testing

Marketing Services

LocalizationGame Development

Localization Testing

Audio Services

Player Support•

Increasingly integrated with game development pipelines•

Increasing numbers of client specific, dedicated operations•

Highly attached to game titles & client service infrastructures•

Capturing additional share of wallet, moving beyond game production
budgets to marketing spend

6%
21%

12%

7%
20%
10%

15%

8%

10%

5%
10%

2020

17%

14%

2019

11%

2018

€326.5m€250.8m

13%€373.5m

11%

H1 2021

27%

12%

12%

€238.7m

14%

17%

13%
20%

15%
21%

18%

21%

9%
10%

16

Art Services
Marketing Services
Game Development
Audio Services
Functional Testing
Localization
Localization Testing
Player Support

An average of 8,944 people in
H1 2021, working in over 50
languages, more than 70
studios, in 23 countries, on 5
continents

17

We work with 23 of the top 25 games companies by revenue
and 10 of the top 10 mobile games publishers by revenue.*

150
100

No. of clients using 3 or more
129
services
120
93

99

2017

2018

108

50
0
2019

2020

H1 2021

Limited customer concentration
30%

1

28%
26%
24%
22%

0
2017

2018

2019

2020

H1 21

% Revenue top 5 customers
No of customers over 10% of revenue* Newzoo, Top 25 public companies by game revenues in Q3 2020 and
App Annie, Top publishers of 2020/21

18

•

•

•

Favourable
marketgrowthdrivers

Fast growing games industry – c. 9% CAGR
Industry growth in 2020 of 20%, primarily driven
by uplift in gamers and game play of existing
content
Increased focus in 2021 on content following
production constraints in 2020•

Content demand is strong driven by with newconsole launches, streaming platform
developments and Games as a Service•

Trend towards outsourcing as the industry deals
with an increasingly complex environment•

Supply chains are becoming more structured as
the industry gradually matures•

Fragmented industry provides opportunities forselective consolidation+9.1% CAGR
$204.6bn$177.8bn$175.8bn

2020

2021

$144.4bn

2019

2023

Source: Newzoo 2021 Global Games Market Report, May 2021

19

Keywords
best placed
to exploit
marketgrowthdrivers•

Only global, full service provider in the market•

Scale begets scale in an otherwise highly
fragmented market•

Balanced business across service lines andgeographies•

Increasingly predictable and repeating revenue
base•

Local business development supplemented by
global sales team and continued cross sellopportunity•

Able to provide infrastructure and funding for
acquisitions to grow

22.9%

15.5%

15.0%

11.7%
10.1%

2017

2018

2019

2020

H1 21

20

€500m€450m

Total consideration and number of acquisitions€171m

Average organic
growth +15%

€120m

€457m

€100m

€400m

6

€350m

€80m

€270m

€300m

9

€250m

€60m

€200m

7

€40m

€150m

9

4

€100m
€50m

4

11

€20m

4

€16m
€0m

2013 revenue

Acquired revenue

Organic revenue

2014

H1 2021 Pro Forma
Revenue

2015

2016

2017

2018

2019

2020

2021

Art Services

54

Marketing Services
Game Development
Audio Services
Functional Testing

Value creating acquisitions since IPO

Localization
Localization Testing€184min net cash and undrawn RCF

Player Support

Strong pipeline from which we are selecting
highest quality opportunities
Particular focus on Marketing Services andGame Development

21

% of
revenue

Organic Revenue
GrowthH1 21 H1 20

H1revenue
growth

20.1%

Art Creation is expected to continue to deliver strong growth in thesecond half given that we have better than normal visibility and as
this service line is well placed to scale to meet buoyant demand213.5%

Marketing to build on a successful H1 with continued growth in H2,albeit at a more moderate level given the exceptional organic
growth in H1 and the stronger comparatives in H2 of the prior year

63.6%

Game Development demand remains very strong and we expect
continued good growth in H2 as we focus on talent acquisition andresources globally, to service as much of that demand as possible

35.4%

Audio demand remains strong albeit we are expecting growth rates
to moderate in H2 due to the stronger comparatives in H2 of theprior year

10%
25.4%

13.0%*

10%
50.6%

30.8%*

27%
15.5%

25.7%

12%
36.4%

0.5%

* The prior year numbers has been re-classified to separately
report Marketing services, previously reported within the Art
Creation service line

22

% of
revenue18%

Organic Revenue
GrowthH1 21 H1 20

24.3%

10.7%

H1
revenue
growth20.9%

Functional Testing operates at the later stages of the gamedevelopment cycle and are experiencing some delays in content
flow following the previous disruption to earlier stage content

8.9%

Localization: Having strengthened our sales efforts we expect tocontinue to deliver growth reflecting underlying momentum
moderated by some delays in the flow of content

17.8%

Localization Testing is not expected to see the typically higher
seasonal activity due to a shift in the flow of content but is expected
to recover as content reflows in to these service lines during H2

11.6%

Player support’s specialist video games DNA continues to position
us well in terms of the quality of our service and we expect to makefurther progress in H2, albeit at a more moderate growth rate

10%
10.7%

(7.4%)

5%

19.6%

1.9%

9%
17.7%

5.5%

23

Organic Revenue growth 2017 – H1 2021

Revenue – 4 year CAGR of 39%
500

25
%

20

€m

15

300

10

200

5

100

0

0
2017

2018

2019

2020

2017

H1 21

Adjusted PBT – 4 year CAGR of 41%

€m

400

80

60

60
c

20

0

0
2018

2019

2020

LTM*

2020

LTM*

40

20
2017

2019

Adjusted EPS – 4 year CAGR of 32%

80

40

2018

2017

2018

2019

2020

LTM*

* LTM: Last twelve months
CAGR is calculated using LTM figure for H1 2017 and H1 2021

24

Group outlook

25

Positive start to H2 2021

We continue to see strong demand across most of our service lines but expect growth rates tomoderate in H2, given stronger comparatives in H2 2020 – working to mitigate some of therecruitment constraints as we seek to meet the strong demand.

Maintain hybrid working model inmost locations

With a fully established flexible hybrid working model across all service lines and our 65+ locations,
we do not expect to be operationally constrained as we saw last year

Continued strong margins

2021 adjusted profit before tax margins are now expected to exceed our 14 – 15% historical range
but we expect margins to return towards this range in 2022 as we continue to invest in the businessWell-funded to deliver ouracquisition and growth strategy

Well-funded to deliver on our value accretive acquisition strategy and we are actively engaging withselected targets from an healthy pipeline of opportunities

Well positioned in a growth market

Well placed as a diversified provider of scale to deliver on the opportunity presented by the strong
underlying and structural market drivers

26

Jon Hauck

Sonia Sedler27

Scale - Large clients need large suppliers

Global presence – proximity to talent and clients,
multiple time zones



Knowledge and expertise – Breadth and depth ofcapabilityTechnology - Regular investment, security

Scalable model – flexibility to meet clients needs

Acquisition track record – disciplined, build out
the platform, cultural fit, integration

Financial strength – performance, stability andresilience

Reputation for quality – culture of delivery

28

Year

Art Services

2014

Marketing
services

Game
Development

Audio

Functional
Testing

Localization

Localization
Testing

Lakshya Digital

Liquid Violet
Binari Sonori

Babel MediaBabel Media
Binari Sonori

Babel Media

2015

LiquidDevelopment

ReverbKite Team2016

Mindwalk
Volta

Synthesis
Sonox

EnzymePlayer Research

Synthesis
Sonox

2017

RedHot

VMC

VMC
XLOC
Around the Word
La Marque Rose
Dune Sound
AsRec
LOLA

SPOV

GameSimd3t
Sperasoft

La Marque Rose
Dune Sound
AsRec

2018

Fire Without
Smoke
Trailer Farm

Snowed In
Studio Gobo
Electric Square
Yokozuna Data

MaximalCord
Laced
Blindlight2019

Sunny Side Up
Ichi Worldwide

GetSocial
Wizcorp

Descriptive
Video Works
TV+SYNCHRON
Syllabes

2020

Maverickg-Net
Indigo Pearl

Coconut Lizard
High Voltage

Jingle Bell

2021

AMC

ReverbKite Team

PlayerSupport

Total Cost*€19.0mAlchemic Dream€10.9mSynthesis
EnzymeAnkama€32.6m

VMC

VMC€101.4m€61.7mAppSecTest**

Kantan€22.5m€80.7mHeavy Iron
Tantalus
Climaxc. €105m* Includes all cash, deferred and equity portions of consideration** 48% subsidiary interest*** 85% interest

29

The Group reports a number of alternative performance measures (APMs) to present the financial performance of the business which are not GAAP measures as
defined by International Financial Reporting Standards (IFRS). The Directors believe these measures provide valuable additional information for the users of thefinancial information to understand the underlying trading performance of the business. In particular, adjusted profit measures are used to provide the users of theaccounts a clear understanding of the underlying profitability of the business over time. For full definitions and explanations of these measures and areconciliation to the most directly referenceable IFRS line item, please refer to the APMs section at end of the Group’s Interim Results announcement.
Organic Revenue at constant exchange rates is calculated by adjusting the prior year revenues, adding pre-acquisition revenues for the corresponding period of ownership,
and applying the prior year foreign exchange rates to both years.
EBITDA comprises Operating profit as reported in the Consolidated statement of comprehensive income, adjusted for amortisation and impairment of intangible assets,
depreciation, and deducting bank charges. Adjusted EBITDA comprises EBITDA, adjusted for share option expense, costs of acquisition and integration and non-controllinginterest. In order to present the measure consistently year-on-year, the impact of COVID-19 government subsidies claimed in the prior year and investment income are also
excluded.

Adjusted profit before tax comprises Profit before taxation as reported in the Consolidated statement of comprehensive income, adjusted for share option expense, costs ofacquisition and integration, amortisation and impairment of intangible assets, non-controlling interest, foreign exchange gains and losses, and unwinding of discounted liabilities.
In order to present the measure consistently year-on-year, the impact of COVID-19 government subsidies claimed in the prior year and investment income are also excluded.
Adjusted earnings per share comprises the adjusted profit after tax divided by the non-diluted weighted average number of shares as reported. The adjusted profit after tax
comprises the adjusted profit before tax, less the tax expense as reported in the Consolidated statement of comprehensive income, adjusted for the tax impact of the adjusting
items in arriving at adjusted profit before tax.
Adjusted cash conversion rate is the adjusted free cash flow as a percentage of the adjusted profit before tax.
Adjusted free cash flow is a measure of cash flow adjusting for capital expenditure that is supporting growth in future periods (as measured by capital expenditure in excess ofmaintenance capital expenditure). In order to present the measure consistently year-on-year, the impact of COVID-19 government subsidies claimed in the prior year is also
excluded.
Pro Forma Revenue is calculated by adding pre-acquisition revenues of current year acquisitions to the current year revenue numbers, to illustrate the size of the Group had
the acquisitions been included from the start of the financial year.

30