CAPITAL MARKETS DAY
8 JUNE 2022

Video ready

VIDEO – KICK-OFF

AGENDA
01

Introduction

02

First 6 Months

03

Igniting GrowthÒ Strategic Partnerships
Ò Technology
Ò One Keywords
Ò Talent & Capabilities
Ò Adjacent Markets

04

M&A

05

Growth Model and Outlook
Keywords Studios – Capital Markets Day June 2022

3

WHAT WE WILL LOOK AT TODAY…

01

02

03

Market leading position as the'go to' provider of technicaland creative solutions

Unrivalled scale, reach andbreadth of capabilities

Excellent track record ofgrowth, organically and via
targeted acquisitions

04

05

06

Well placed in buoyant video
games market trending towards
external service provision

Clear strategic priorities tocapitalize on opportunities invideo games and beyond

Ability to deliver sustained,
compounding growth

Keywords Studios – Capital Markets Day June 20224THE KEYWORDS PLATFORM
AND OPPORTUNITY

KEYWORDS SNAPSHOT#1technical& creative solutions
provider to the video
games industry

23 out of top 25

gaming companies
are clients*Sources: Market sizing conducted by IDG Consulting Inc.

8 service lines

covering entire
gaming value chain

10 out of top 10
mobile games
companies areclients

23 countries
and more thanstudios

70

$35bn

c.
Video game
services market*

$11bn

c.
Video game
services market ofwhich outsourced*

11,000Over
employees that speak
languages

50

€512m
FY21 revenue€86m
FY21 adj. PBTKeywords Studios – Capital Markets Day June 2022

6

2021 FINAL RESULTS

REVENUE

ADJUSTED PBTADJUSTED EPS+ 37.1%+ 56.4%+ 46.5%

Revenue up to €512.2m

Adjusted PBT €86.0m

Adjusted EPS 89.24c(2020: €373.5m)(2020: €55.0m)(2020: 60.93c)

ORGANIC REVENUE GROWTH

ADJUSTED PBT MARGIN

TOTAL DIVIDEND+ 19.0%+ 16.8%2.15p(2020: 11.7%)

Increased by 2.1% pts

33.5% increase over 2018 fullyear dividend(2020: 14.7%)(2020: nil)

Keywords Studios – Capital Markets Day June 2022

7

SERVICING ENTIRE CONTENT DEVELOPMENT LIFECYCLE
Game Development

Player Support
365/24/7, multilingual support delivered in game,on digital community and social platforms

Includes full & co-development, porting &remastering, tool development and consulting
services

Marketing Services

Art Services

Creation of game trailers, marketing art andmaterials, PR and full brand campaign strategies

Creation of video game graphical art, including
concept, 2D and 3D asset production & animation

Localization Testing
Testing for out of context translations,
truncations, overlaps, spelling, grammar,
geopolitical and cultural sensitivities andcompliance requirements

Content
Development
Lifecycle

Audio Services
Multi-language voiceover recording, original
language voice production, music management,sound effects

Localization

Functional Testing

Translation of in-game text, audio scripts, culturaland local adaptation, accreditation, packaging andmarketing materials in 50+ languages

Quality assurance, testing for defects, compliancewith hardware/platform specifications, as well as
test automation tools and services

Keywords Studios – Capital Markets Day June 2022

8

INTERNATIONAL SCALE AND DIVERSIFICATION ACROSSMARKETS
Liverpool

Leamington Spa

ChicagoMexico City
Vancouver

OrlandoBeijing

Dublin (HQ)

Raleigh
Montreal

Newcastle
LondonAustinBerlinDalianKatowice

SeattleBrighton
Quebec CIty
Saint Jerome
OttawaNew Orleans

Game Development

ManilaArt Services

Melbourne

Audio
Functional Testing
Localization

New Delhi

Los Angeles
Pune

Portland

TaipeiMadridLocalization Testing
Marketing Services

An average of 11,000+ people,
working in over 50 languages, morethan 70 studios, in 23 countries,
on 5 continents, providing follow thesun capability

ChengduBarcelona

Player Support

Volgograd

Paris
Rio de JaneiroSão Paulo

The Hague

Saint Petersburg

Hamburg
Krakow
Milan

Rome

Zhengzhou

Singapore

Yogyakarta

ShanghaiTokyo

Keywords Studios – Capital Markets Day June 2022

9

LONG-STANDING RELATIONSHIPS WITH SIGNIFICANTCROSS-SELLING POTENTIAL
We work with 23 of the top 25 games companies by revenue and 10 of the top 10 mobile games publishers by revenue*

No. of clients using 3 or more services

93

99

108

120

Limited customer concentration

High level of ‘sticky’ revenue:Ò High level of repeat business fromtrusted partner relationships

133
28.4%

25.6%

28.1%

29.1%

30.0%

Ò Preferred supplier relationships withmany customers
Ò In addition: 30-40% evergreen revenue

2017

2018

2019

2020

2021

2017

2018

% Revenue top 5 customers* Newzoo, Top 25 public companies by game revenues in Q3 2021 and App Annie, Top publishers of 2021

2019

2020

2021

Ò Highly embedded into customer
systems, tools and workflows

No of customers over 10% of revenue
Keywords Studios – Capital Markets Day June 2022

10

RESPONSIBLE BUSINESSPEOPLE(INCLUDING DE&I)
Ò 2021 MSCI ESG Ratings assessment improved to arating of ‘A’

COMMUNITY

CLIENTKEYWORDS’PRIORITIESPLANETÒ Established a new partnership with Women in Games,
a not-for-profit organization that seeks a gameindustry, culture and community free from gender
discrimination. Planning a number of initiatives toleverage our global platform and client relationships
in 2022
Ò Developed our first Group Environmental policy
covering our energy and recycling practices, which
will further develop our Sustainable Studios
programme

GOVERNANCE

Ò Hardship fund available to help affected employeesof the unfolding humanitarian crisis in Ukraine andKeywords Care CSR fund increased

Keywords Studios – Capital Markets Day June 2022

11

LARGE, DYNAMIC & EXPANDING ADDRESSABLE MARKET
Video Game Services TAM*
01c.$240bn
Video game market
5% CAGR†2026 TAM$48bn

Outsourced %2021 TAM$35bn
10% CAGR

02c.$35bn*
Spend on video gamecontent

$18bn
37%

$11bn
31%
$25bn
69%

03

$30bn
63%

c.$11bn*
Video game services market
of which outsourced
10% CAGR†*Source: IDG Consulting.
† CAGR from 21-26 except for Video game market where CAGR is from 21-24.
Estimates range 5 to 8.7% CAGR, we took most conservative.

Keywords Studios – Capital Markets Day June 2022

12

LARGE, DYNAMIC & EXPANDING ADDRESSABLE MARKET
Video Game Services TAM*
01c.$240bn

Outsourced %

17%

38%

70%

47%

46%

Video game market
5% CAGR†

$40bn

02

c.$35bn*
Spend on video gamecontent$2.7bn$0.7bn$1.8bn$20bn$3.0bn03

c.$11bn*
Video game services market
of which outsourced
10% CAGR†$0bn*Source: IDG Consulting.
† CAGR from 21-26 except for Video game market where CAGR is from 21-24.
Estimates range 5 to 8.7% CAGR, we took most conservative.
1. Post Production includes Functional Testing, Localization Testing and Localization.

$2.9bnGame
Development

Art
Services

Audio

PlayerSupport

Post
Production1

Keywords Studios – Capital Markets Day June 2022

13

CONTENT CONTENT CONTENT
Demand for content continues to grow:Ò Content demand is strong driven by new consoles,
streaming platform developments, mobile growthand constantly evolving new platforms
Ò Game demand continues even after COVID
Ò AAA console/PC remains strong with next-gen
consoles starting to scaleÒ LiveOps, cross platform , increase variety of gamedevelopment engines all drive the need forspecialist support

Live approach
Title A - I
Title A - IITime

Title A
Player Engagement from launchÒ Growth in Games as a Service (GaaS) is driving
more and more continuous content development

Product approach
Player Engagement from launchÒ Increasing complexity in game development
leading to higher costs and driving outsourcing
demand… budgets are skyrocketing

Time

Keywords Studios – Capital Markets Day June 2022

14

CLEAR MARKET LEADER
5%

Clear market leader,but only 5% of market
Balanced business across content
development lifecycle

Market share versus competitors (%)

1

c.3x

9% 5%

10%

27% 2021 Revenue 12%
€512m
9%
#2

#3

#4

#5

Unrivalled global scale in a market
with large white space

Market share of outsourced game services

#6

#7

#8

#9

18%
10%

Game Development
Art Services
Audio
Functional Testing
Localization
Localization Testing
Marketing Services
Player Support#10

Only full-scale service platform
across the entire content
development lifecycle

Highly fragmented industry
provides opportunities forselective consolidation
Keywords Studios – Capital Markets Day June 2022

15

KEYWORDS STUDIOS SINCE IPO
An incredible journey so far, but plenty of road lies ahead

Revenue

400
200

€512m

47%
:
R
G
A
C

600

€16m

0
2013

2014

2015

2016

2017

2018

2019

2020

2021

4 acquisitions

4 acquisitions

7 acquisitions

12 acquisitions

10 acquisitions

8 acquisitions

6 acquisitions

6 acquisitions

Service lines

4

5

6

6

7

7

7

7

8

People

371

978

1,273

1,818

3,150

5,238

7,424

8,353

9,493

Countries

8

9

13

15

20

21

21

22

23

€19.0m€10.9m€32.6m€101.4m€61.7m€22.5m€80.7m€126.0m

Acquisitions

Total cost – includes all cash, deferred and equity portion of consideration
Keywords Studios – Capital Markets Day June 2022

16

STRONG GROWTH ACROSS KEY FINANCIAL METRICS

Revenue – 4 year CAGR of 36%€m

Strong Organic Revenue growth
%

600

20
19

500
400

15.5

15

300

11.7

10.1

200
100
0

0
2017

2018

2019

2020

2021

2017

2018

2019

Adjusted PBT – 4 year CAGR of 39%€m

Adjusted EPS – 4 year CAGR of 30%
c

100

100

80

80

60

60

40

40

20

20

0

2020

2021

2020

2021

0
2017

2018

2019

2020

2021

2017

2018

2019

Keywords Studios – Capital Markets Day June 2022

17

KEYWORDS’ INORGANIC GROWTH ENGINE€540m

Average organic growth€215m

Total consideration and number of acquisitions

€528m

+15%

6

€120m

€440m

11

€100m

6

€80m

€340m

€297m

9

€60m

4

€40m
€240m

€20m

7

9

4

€0m
2014

€140m

€40m

2015

2016

2017

2018

2019

2020

2021

€16m
2013 revenue

Acquired revenue

Organic revenue

2021 Pro Forma
Revenue

56€256m

Value creating acquisitions
since IPO

in net cash and undrawn RCF

Art Services

Marketing Services

Game Development

Audio Services

Functional Testing

Localization

Localization Testing

Player Support

Keywords Studios – Capital Markets Day June 2022

18

KEYWORDS’ INORGANIC GROWTH ENGINE (CONT’D)
01

ORIGINATIONÒStrong pipeline of +90 opportunities
identified globally from which only
highest quality opportunities selectedÒParticular focus on Game Development
and Marketing Services

05
02

EXECUTION

LONG-TERM VALUECREATION

Ò Accelerate and drive organic growthÒ In-house expertise with provencapabilities in market consolidation

Ò Achieve group margin rangeÒ Strong balance sheet to supportacquisition opportunities

Ò 5 – 7x EBITDA multiple

03 INTEGRATION
Ò Tried and tested integration process withsuccessful track record
Ò Detailed integration plans tailored to eachbusinessÒ Achieve market leader status04

ENHANCEÒ Develop, enhance and cross-pollinate to
generate synergies
Ò Keyword’s platform, scale and global
reach eliminates constraints to growth

Keywords Studios – Capital Markets Day June 2022

19

KEYWORDS STUDIOS: STRONG FOUNDATION TO BUILD ON

Clear market
leader…

…in a large
and growing
addressable
marketStrong & sticky
customer
relationships

Working withcustomers acrossall platforms,
without IP risk

Present acrossthe entire content
development
cycleInternational
scale brings
solutions to
global clientsDiverse andskilled workforce
providing soughtafter expertise

Track record oforganic andinorganic growthsince IPO

Sources: IDG Consulting.

Keywords Studios – Capital Markets Day June 2022

20

CAPITALIZING ON OUR MARKET OPPORTUNITY

01

02

03

Developing strategic customer
partnerships to create and capture
more value together

Harnessing technology to worksmarter, do more and stay at theforefront of our industry

Galvanising our "One Keywords"
culture of entrepreneurialism andcollaboration

04

05

06

Establishing Keywords as thedestination for talent and careerdevelopment

Leveraging our capabilities inadjacent markets increasingly
requiring games expertise

Building our platform through M&A

Keywords Studios – Capital Markets Day June 2022

21

FIRST 6 MONTHSStrategy in Action
50+ Leaders
Mobilized around
5 Workstreams

THE VOICE OF THE CUSTOMER“I need more Devs, today.
Do we need a dedicatedrecruiting team? How do
we manage retention?
How do we keep visibility
on capacity & skills?”“We’re a team of 50
and we don’t want toscale to 300 ourselves.
We need help.”
CXO“I didn’t realize you had
such a breadth of Service
Lines and could add suchvalue. Can you also help
me on Tech opportunities
we have internally?”

President, Top 10 Publisher

Top 10 Publisher

Multiple CXOs

Multiple CXOs

“We have a series of pain points
including the race for talent &resources, increasingly complex
teams and technology
requirements and ability to manage
bigger games effectively.”“Should we really have c.500-1000+
testers internally? How could wetake this on, economically? Are
trusted partnerships more valuable
to us, where partners can support on
E2E services, not just QA?”“KWS is a trusted partner:
we will show you our 2027
roadmap, tell us how tobest use KWS end-to-end
for the work”"We’re improving Player
Support / Engagement we’re even starting totalk about Marketing 360
beyond ATL.”

President, Top 10 Publisher

Top 10 Publisher"Quality, Relationships,
Flexibility andProactivity of ourteams are the mostimportant things for us
from KWS.”
H2 2021 Customer Survey &KWS Summit Survey

Keywords Studios – Capital Markets Day June 202224

THE VOICE OF THE STUDIO
100 Days survey –Studios’ top pain points:
Studio Heads would
like more red taperemoved, so they
can respond toopportunities quickly
and grow faster• Talent andRecruitment
HR, IT and Finance could
do more to support thestudios in taking on
bigger opportunities• Alignment ofcentralized services
and systems

100 Days survey –Studios’ top things
clients value about
KWS:• Global reach• Quality &Relationships

Studios believe there
is bigger opportunity if
we make it easier tobundle our capabilities,
services and products
together, becoming
an even greater
services platform forthe industry• Breadth ofservices

Keywords Studios – Capital Markets Day June 202225

THE VOICE OF THE EMPLOYEE
Salary andcompensation isvery important toemployees, weneed to ensure fullunderstanding andthat we remaincompetitive

Employees are looking
for more opportunity
for growth anddevelopment

Global eNPS has
increased year on
year, but there areareas where we needto improve

Leadershipcommunication has
vastly improved,
consistentmessaging andactivedemonstrationneed to continue

Key areas ofimportanceare professional
development
opportunities andunderstanding how
they can contributeto the KWS Vision& Mission, andmore purposedriven agendas

Keywords Studios – Capital Markets Day June 2022

26

IGNITING GROWTH
Most Compelling Solutions‘GAME MAKERS’
GlobalExcellence

Best Clientsand Titles

Best People

Targets

5 WORKSTREAMS, 3 FOCUS AREAS EACH

1. Managing Our
Top 25 StrategicPartners
2. Internal Capability
and Capacity toManage The Top25
3. Top 5-10
Lighthouse Deals

1. Internal Tech
Spine
2. Service Line
Automation
3. Innovation /Mindset1. Values andLeadership
Principles
2. Spine Business
Partnering

1. Compensation‘Clear as a Bell’2. Specialized
Recruitment &Development
Pathways

1. Live Operations
2. Media &Entertainment
Sector (Incl.
VirtualProduction)

3. M&A Integration
3. Keywords
Academy for
Excellence

3. Metaverse

Keywords Studios – Capital Markets Day June 2022

28

STRATEGIC PARTNERSHIPS

5 WORKSTREAMS, 3 FOCUS AREAS EACH

1. Managing Our
Top 25 StrategicPartners
2. Internal Capability
and Capacity toManage The Top25
3. Top 5-10
Lighthouse Deals

1. Internal Tech
Spine
2. Service Line
Automation
3. Innovation /Mindset1. Values andLeadership
Principles
2. Spine Business
Partnering

1. Compensation‘Clear as a Bell’2. Specialized
Recruitment &Development
Pathways

1. Live Operations
2. Media &Entertainment
Sector (Incl.
VirtualProduction)

3. M&A Integration
3. Keywords
Academy for
Excellence

3. Metaverse

Keywords Studios – Capital Markets Day June 2022

30

LONG-STANDING RELATIONSHIPS WITH SIGNIFICANTCROSS-SELLING POTENTIAL
We work with 23 of the top 25 games companies by revenue and 10 of the top 10 mobile games publishers by revenue*

No. of clients using 3 or more services

93

99

108

120

Limited customer concentration

High level of ‘sticky’ revenue:Ò High level of repeat business fromtrusted partner relationships

133
28.4%

25.6%

28.1%

29.1%

30.0%

Ò Preferred supplier relationships withmany customers
Ò In addition: 30-40% evergreen revenue

2017

2018

2019

2020

2021

2017

2018

% Revenue top 5 customers* Newzoo, Top 25 public companies by game revenues in Q3 2021 and App Annie, Top publishers of 2021

2019

2020

2021

Ò Highly embedded into customer
systems, tools and workflows

No of customers over 10% of revenue
Keywords Studios – Capital Markets Day June 2022

31

FROM TACTICAL TO STRATEGIC
Deeper understanding and more integrated end-to-end approach, including at the title level

Current Tactical

Future StrategicÒ Multiple studios engaged

Ò Secure resources for longer timeframes

Ò Good service line coverage but with white spaces

Ò More cross service line and studio collaboration

Ò Fraction of what we can doÒ Orchestrate solutions for longer pipelines

Ò We have a global and complete offeringÒ Create and capture more value together
e.g. QA, co-development of tech, influencing M&A

Ò High levels of trust and quality

Ò Make even more of our entrepreneurial spirit

Ò Entrepreneurial spirit
Example of title level analysis across Top 25:

Elden Ringby Bandai Namco
Entertainment

Launched
February 2022

Multiple KWS
engagements
happening attitle level

Marketing

GNET

Art

LAKSHYA

Audio Localization

JINGLEBELL

Audio Dev (incl. Casting)

LIQUID VIOLET

Localization Testing

KEYWORDS KATOWICE=

Opportunities to deliver
more value throughout theContent Development Lifecyclewith joined-up end-to-end
approach at the title level

Keywords Studios – Capital Markets Day June 2022

32

VOICE OF CUSTOMERJOHN DOYLE
COO, RIOT GAMESKeywords Studios – Capital Markets Day June 2022

34

VOICE OF CUSTOMERJOHN DOYLE
COO, RIOT GAMESVOICE OF CUSTOMERFREDRIK RUNDQVIST,
CEO & JAMES DOBROWSKILONDON MD, SHARKMOBKeywords Studios – Capital Markets Day June 2022

37

FIRESIDE CHATJAMES DOBROWSKILONDON MD, SHARKMOBINVESTING IN STRATEGIC PARTNERSHIP CAPABILITY
Client Partners
Blandine Prost

Ò Trusted advisor to Strategic Partners
Ò Leads client relationship and businessdevelopment effort across all service lines
within Keywords
Ò Point of contact for resolution and escalationof all key items with the client and internallyÒ Recognized ambassador of Keywords Studios
global platform

Integrated Solution
Producers
Claudia Moscoso

Ò Coordinates the development and deliveryof complex solutions
Ò Engages talent across Keywords promoting
a client first mindset
Ò Identifies opportunities to increase
efficiency, effectiveness and quality across thesolution scope and lifecycle
Ò Looks for opportunities to support mutual
benefit

Keywords Studios – Capital Markets Day June 2022

39

Key takeaways
Ò With a more strategic response to our clientneeds, there will be much more demand for
Keywords services
Ò The timing is right for our clients – they arelooking for true partnering relationships
Ò In response, we are investing in our StrategicPartnering Capability

Keywords Studios – Capital Markets Day June 2022

40

TECHNOLOGY5 WORKSTREAMS, 3 FOCUS AREAS EACH

1. Managing Our
Top 25 StrategicPartners
2. Internal Capability
and Capacity toManage The Top25
3. Top 5-10
Lighthouse Deals

1. Internal Tech
Spine
2. Service Line
Automation
3. Innovation /Mindset1. Values andLeadership
Principles
2. Spine Business
Partnering

1. Compensation‘Clear as a Bell’2. Specialized
Recruitment &Development
Pathways

1. Media &Entertainment
Sector (Incl.
VirtualProduction)
2. Live Operations

3. M&A Integration
3. Keywords
Academy for
Excellence

3. Metaverse

Keywords Studios – Capital Markets Day June 2022

42

TECHNOLOGY PLATFORM OVERVIEW
SalesStudios/Service Lines• Global sales• Studio sales• Service Line Operations• Studio Heads• Studio Operations• Studio Delivery Teams

FinanceHR• Studio Operations• Service Line Operations• Finance Teams• Studio Operations• Service Line Operations• HR Teams

Reporting and Insight (Data Lake & Power BI)
Data Transformation and Aggregation

Salesforce

Clients/Opps

Clients
Opportunities
Contracts

CronosNetSuite Finance

Projects
Invoices
Time Tracking
Rate cards/quoting
Vendor Management

Financial Data

HR Platform(s)Candidates
Employee Profile/skills
Employee Training
Employee Performance
Employees

Finance Data

Tagetik
BPS
Projects
Invoices

BudgetConsolidated Financial Data
NetSuite HR
Employees

Employees

Service Requests (ServiceNow)

Fully implemented

In evaluation

Partial adoption

Partial implementation

To be decommissioned

Keywords Studios – Capital Markets Day June 2022

43

TECH CASE STUDYEXPERT-IN-THE-LOOP
AUTOMATION AT MICROSOFT
ROMINA FRANCESCHINA & TONY O’DOWD

MICROSOFT ASKED AND KEYWORDS DELIVEREDVolumes at speed with simplicity
930,000 words a
month

300
strong crowd
community
End to End
Automation(lights out)

15 Titles

1
ticketing system
Content: ingame + other

31 MT/TMengines

Post MT
Edit + quality
0% Late delivery
KPI

31
languages

MonthlyreportingIntegrated
terminology
management

24/7+365 days
delivery cycle
6 weeks
development
window

Go-live
18 May 2022
@11am BST

Technological ability with workflow expertise
Keywords Studios – Capital Markets Day June 2022

45

TRADITIONAL WORKFLOW LOOKS LIKE THIS
Project Workflow

2 hours

Duration

3 hours

3 hours

2 hours

1 hourPM
resources the
project

PM receives
files backLoc Eng rebuild assets

PM delivers
31
translations

13

hours

Agree Terms

Client asksfortranslation

PM prepares
a quotex31
times

File analysis

Loc Eng
prepares files
x31
times

Lights-always-on
project management
team

PM briefs
translator and
sends
files
PM briefs
translator and
sends
files
PM briefs
translator and
sends
files
PM briefs
translator andsends files

PM updates
TMs

PM briefs QA

x31
times

PM briefs QA

PM updates
linguists’ records
for payment

PM briefs QA
PM briefs QA
x31
times

x31
times

x31
times

x14 times a day

Keywords Studios – Capital Markets Day June 2022

46

AUTOMATED WORKFLOW FOR MICROSOFT
Project Workflow

Duration

15 minutes

5 minutes

8 minutes

15 minutes

Clientpushingtranslation

System preps
files

Systempushes next
step

Systemdelivers

PM briefs
translator and
sends
files
PM briefs
translator and
sends
files
PM briefs
translator and
sends
files
PM briefs
translator andsends files

Expert-in-the-loop
manages expectations

43

minutes

Systemupdates TMs

PM briefs QA

x31
times

PM briefs QA
PM briefs QA

System approves
payments

PM briefs QA
x31
times

x31
times

x31
times

x14 times a day

Keywords Studios – Capital Markets Day June 2022

47

LET US SHOW YOU THE RESULTS…

Community
Management

Artificial
Intelligent

Expert-inthe Loop

Automated
Payments

Financial
Management

KPI
Management

AI DataModelling

Job Delivery

Microsoft

Direct toTranslator

Microsoft

MICROSOFT HIGH VOLUME TRANSLATION SERVICE

Keywords Studios – Capital Markets Day June 2022

49

Community
Management

Artificial
Intelligent

Expert-inthe Loop

Automated
Payments

Financial
Management

KPI
Management

AI DataModelling

Job Delivery

Microsoft

Direct toTranslator

Microsoft

MICROSOFT HIGH VOLUME TRANSLATION SERVICE

Keywords Studios – Capital Markets Day June 2022

50

Community
Management

Artificial
Intelligent

Expert-inthe Loop

Automated
Payments

Financial
Management

KPI
Management

AI DataModelling

Job Delivery

Microsoft

Direct toTranslator

Microsoft

MICROSOFT HIGH VOLUME TRANSLATION SERVICE

Keywords Studios – Capital Markets Day June 2022

51

Community
Management

Artificial
Intelligent

Expert-inthe Loop

Automated
Payments

Financial
Management

KPI
Management

AI DataModelling

Job Delivery

Microsoft

Direct toTranslator

Microsoft

MICROSOFT HIGH VOLUME TRANSLATION SERVICE

Keywords Studios – Capital Markets Day June 2022

52

Community
Management

Artificial
Intelligent

Expert-inthe Loop

Automated
Payments

Financial
Management

KPI
Management

AI DataModelling

Job Delivery

Microsoft

Direct toTranslator

Microsoft

MICROSOFT HIGH VOLUME TRANSLATION SERVICE

Keywords Studios – Capital Markets Day June 2022

53

Expert-inthe Loop

Automated
Payments

Financial
Management

KPI
Management

AI DataModelling

Riot Games

Artificial
Intelligent

Microsoft

Community
Management

Machine Zone

Riot Games
Microsoft

Direct toTranslator

Electronic Arts

Machine Zone
Electronic ArtsHIGH VOLUME TRANSLATION SERVICE

Keywords Studios – Capital Markets Day June 2022

54

MICROSOFT IS LIVE!
ü Go live 18th May@11:00 BST
ü First job fully
processed in
24 minutes
ü First linguist
to pick up a job,
8 minutes fromreceipt of alert
ü First feedback
received fromMicrosoft

Deployment StatsÒÒÒÒ

913 projects ingested
859 projects delivered
438k words delivered
475k words managed

Ò 121 Linguists engaged
Ò Average TAT – 36 hours

Next PrioritiesÒÒÒÒ

Dev of file prioritization criteria
Expansion of community
Invoicing process
Additional dashboards
and reports

Ò On-boarding 15 Game Titles

Keywords Studios – Capital Markets Day June 2022

55

Key takeaways
Ò Strengthened internal capability supporting
larger more complex work
Ò Automation enabling us to deliver much more
for clients without people constraints
Ò Innovation set up to scale and keep us at theforefront of the industry
Ò Planned 2-3 years timeframe

Keywords Studios – Capital Markets Day June 2022

56

ONE KEYWORDS

5 WORKSTREAMS, 3 FOCUS AREAS EACH

1. Managing Our
Top 25 StrategicPartners
2. Internal Capability
and Capacity toManage The Top25
3. Top 5-10
Lighthouse Deals

1. Internal Tech
Spine
2. Service Line
Automation
3. Innovation /Mindset1. Values andLeadership
Principles
2. Spine Business
Partnering

1. Compensation‘Clear as a Bell’2. Specialized
Recruitment &Development
Pathways

1. Live Operations
2. Media &Entertainment
Sector (Incl.
VirtualProduction)

3. M&A Integration
3. Keywords
Academy for
Excellence

3. Metaverse

Keywords Studios – Capital Markets Day June 2022

58

EXECUTIVE AND SENIOR LEADERSHIP(GUIDING PRINCIPLES)• Simplify the service line structure to enable more collaboration• Amplify the voice of the studios• Retain entrepreneurial DNA – it is what makes us magic!
• Reflect our 5 workstreams

Keywords Studios – Capital Markets Day June 2022

59

SIMPLIFYING THE SERVICE LINE STRUCTURE
Art Services+

Audio Services

Game
Development

Functional QA+* includes Media & Entertainment

Globalize*
Localization
QA

Localization

MarketingServices

Create+PlayerExperience

EngageKeywords Studios – Capital Markets Day June 2022

60

SENIOR EXECUTIVE TEAM
CEO

Chief Commercial
Officer

Chief Shared

COO/CSO
CreateIncremental $100m

Sales
Account Management
Sales Operations
Sales Events

Globalize

CIO

Chief Culture
Officer

Run the Machine
Serve the Studios
Enable 10x (Scale)

Performance & KPIs
Scale by Acquisition
Governance & Control

Future Proof
Automation
1-2 Bolder Moves

Employer of Choice
Talent Density
CultureBack office operations(Shared Services)

Finance Operations &Performance

Technology Strategy

HR OpsRegional Directors(in support of Studios)

M&A

CTO
IT Ops & Change

Talent(Attract & Retain)

Studio Integration

Legal and Compliance

Security

ESG (with CFO/COO)

Services Officer

Engage*Innovation

Run and grow the Business - $500m +Service Line Strategy
Strategic Account Development
Create• Game Dev• Art

Globalize

Engage• Marketing• Player Support +M&E• Audio Dev• Audio M&E

•
•
•
•

CFO

FQA
LQA
LOC
Audio

Investor Relations

Enterprise
Programme

Internal Audit

Internal Communications

Strategic Partnership Operations + Growth

CAO* Includes Group Marketing

Keywords Studios – Capital Markets Day June 2022

61

CREATE SERVICES
Our connected network of studios and specialist teams deliver a range of Create Services to clients and partners globally.

€190m FY 2021
Create Revenue
37% FY 2021
% of Group Revenue

3,000+ Create Employees

41 Create Locations
24 Create Studios
Keywords Studios – Capital Markets Day June 2022

62

GLOBALIZE SERVICES
Our connected network of studios and specialist teams deliver a range of Globalize Services to clients and partners
around the world.

Audio Services
Functional QA
Localization
Localization QA€230m FY 2021
Globalize Revenue
45% FY 2021
% of Group Revenue

4,900+ Globalize Employees

46 Globalize Locations
35 Globalize Studios
Keywords Studios – Capital Markets Day June 2022

63

ENGAGE TODAY
Bringing together experts from across the network into a simple service offering, supercharging decision making in today’scomplex marketing landscapeMarketingServices2021 €46m

ENGAGE

Servicing clients via specialist teams

MarketingCommunity Management

Player Support& Research2021 €46m€92m FY 2021
Engage Revenue
18% FY 2021 %of Group Revenue

Player Experience
2021 €92m

2,000+ Engage Employees

Supported by operational excellence from service line

Strategic Account Planning
Market Intelligence & Data Insights Team
Integrated Solutions & Production Team
Unified Production Platform
30 Engage Locations
28 Engage Studios
Keywords Studios – Capital Markets Day June 2022

64

SENIOR EXECUTIVE TEAM
CEO

Chief Commercial
Officer

Chief Shared

COO/CSO
CreateIncremental $100m

Sales
Account Management
Sales Operations
Sales Events

Globalize

CIO

Chief Culture
Officer

Run the Machine
Serve the Studios
Enable 10x (Scale)

Performance & KPIs
Scale by Acquisition
Governance & Control

Future Proof
Automation
1-2 Bolder Moves

Employer of Choice
Talent Density
CultureBack office operations(Shared Services)

Finance Operations &Performance

Technology Strategy

HR OpsRegional Directors(in support of Studios)

M&A

CTO
IT Ops & Change

Talent(Attract & Retain)

Studio Integration

Legal and Compliance

Security

ESG (with CFO/COO)

Services Officer

Engage*Innovation

Run and grow the Business - $500m +Service Line Strategy
Strategic Account Development
Create• Game Dev• Art

Globalize

Engage• Marketing• Player Support +M&E• Audio Dev• Audio M&E

•
•
•
•

CFO

FQA
LQA
LOC
Audio

Investor Relations

Enterprise
Programme

Internal Audit

Internal Communications

Strategic Partnership Operations + Growth

CAO* Includes Group Marketing

Keywords Studios – Capital Markets Day June 2022

65

Key takeaways
Ò Simplify the service line structure to enable
more collaboration and scalability
Ò Retain entrepreneurial DNA and amplify thevoice of the studiosÒ Global platform with local knowhow
Ò Spine business partnering to support studio
growthKeywords Studios – Capital Markets Day June 2022

66

TALENT AND CAPABILITIES5 WORKSTREAMS, 3 FOCUS AREAS EACH

1. Managing Our
Top 25 StrategicPartners
2. Internal Capability
and Capacity toManage The Top25
3. Top 5-10
Lighthouse Deals

1. Internal Tech
Spine
2. Service Line
Automation
3. Innovation /Mindset1. Values andLeadership
Principles
2. Spine Business
Partnering

1. Compensation‘Clear as a Bell’2. Specialized
Recruitment &Development
Pathways

1. Live Operations
2. Media &Entertainment
Sector (Incl.
VirtualProduction)

3. M&A Integration
3. Keywords
Academy for
Excellence

3. Metaverse

Keywords Studios – Capital Markets Day June 2022

68

TALENT TOUR
Game Development

CanadaPost-Production

EuropeUS

Talent Development& Academies

RussiaKorea
China

Mexico

India

Japan

TaiwanPhilippines

Singapore

Indonesia

BrazilAustralia

11,000+ people, working in over 50 languages, more than 70 studios, in 23 countries,
on 5 continents, across 20 time zones, providing follow the sun capability
Keywords Studios – Capital Markets Day June 2022

69

TALENT TOUR – OTTAWA – SNOWED IN STUDIOS
Game Development

CanadaEuropeUS

RussiaKorea
China

Mexico

India

Japan

TaiwanPhilippines

Singapore

Indonesia

BrazilAustralia

11,000+ people, working in over 50 languages, more than 70 studios, in 23 countries,
on 5 continents, across 20 time zones, providing follow the sun capability
Keywords Studios – Capital Markets Day June 2022

70

TALENT CASE STUDYSNOWED IN STUDIOSJEAN-SYLVAIN SORMANYTIMELINE

CORE FOCUS

2010 Founded, Ottawa, Canada

Engineering Projects

2018 Joined Keywords Studios
2022 Studio +150 employees

LQA

GAMES INCLUDE

Keywords Studios – Capital Markets Day June 2022

EMPLOYEE FRONT AND CENTER

78 %
ENPS

Exciting Work

Variety of Projects

Variety of Skills

Culture + Environment

Employees get access toand involvement in work andIP that they find exciting

Options to work on alarge variety of projects
across Keywords Studios

Diversification of work:
Co-Dev, Porting, Fulldevelopment, Live-Ops

Strong culture and best
working conditions,
including a no-crunch policy
and transparency

Talent Growth

Education + Mentoring

Diversification

Team Expansion

Addition of a dedicatedTalent Acquisition
Specialist

Increasing ties witheducation, on programadvisory boards andstudent mentoring

Expanding service
offerings, including LQA
and exploring more
Service LinesEngineering 170+,
Art 30+, Design 10+,
LQA 200+ and R&D division
Keywords Studios – Capital Markets Day June 202273

THE EMPLOYEE NUMBERS…

550

200

EMPLOYEE
GOAL:
by 2027

180
160
140
120

3
100
80
60

2

40

1

20
0
1/7/2011

1

5/21/2012

10/3/2013

2/15/2015

Acquired by Keywords Studios in July 2018
Grew staff from 29 at acquisition to 63
Significant revenue growth since acquisition

6/29/20162

11/11/2017

3/26/2019

LQA joins the Snowed In Team,
March 20193

8/7/2020

12/20/2021

Talent Acquisition Specialist joins
Snowed In, April 2021

74

TALENT TOUR – KATOWICE – POST-PRODUCTION
Post-Production

CanadaEuropeUS

RussiaKorea
China

Mexico

India

Japan

TaiwanPhilippines

Singapore

Indonesia

BrazilAustralia

11,000+ people, working in over 50 languages, more than 70 studios, in 23 countries,
on 5 continents, across 20 time zones, providing follow the sun capability
Keywords Studios – Capital Markets Day June 2022

75

TALENT CASE STUDYKEYWORDS KATOWICEKeywords Studios – Capital Markets Day June 2022

77

THE EMPLOYEE NUMBERS…

+SLs
Looking
at addingEngineering& Art Services

1200

1000

800

600

3

400

200

2

1

01
/0
4/
20
22

01
/0
1/
20
22

01
/1
0/
20
21

01
/0
7/
20
21

01
/0
4/
20
21

01
/0
1/
20
21

01
/1
0/
20
20

01
/0
7/
20
20

01
/0
4/
20
20

01
/0
1/
20
20

01
/1
0/
20
19

01
/0
7/
20
19

01
/0
4/
20
19

01
/0
1/
20
19

0

Total

1

Official opening July 2019, FQA+LQA withadoption of PS staff as overflow of Dublin office.
Rapid growth of own client base.

2

Third building expansion

3

Fourth building expansion
78

TALENT TOUR – INDIA/IRELAND – TALENT DEVELOPMENT
Talent Development& Academies

CanadaEuropeUS

RussiaKorea
China

Mexico

India

Japan

TaiwanPhilippines

Singapore

Indonesia

BrazilAustralia

11,000+ people, working in over 50 languages, more than 70 studios, in 23 countries,
on 5 continents, across 20 time zones, providing follow the sun capability
Keywords Studios – Capital Markets Day June 2022

79

TALENT DEEP DIVE
DESTINATION INDIA& KWS ACADEMIESMANVENDRA SHUKUL, LAKSHYA DIGITAL& JON GIBSON, ELECTRIC SQUAREWHY INDIA?
Keywords Advantage
Proven record with 850 people
across Art, FQA, LOC

Gaming Industry In India
400+ million Gamers

Global Companies
Games companies set up in India; EA,
Ubisoft, Rockstar, Zynga, Sumo, etc.

Talent LandscapeIndia Advantage
Large pool of service focused, diligent
and ambitious talent with 24x7 shift
working in highly acceptable form

One million Engineers coming out ofUniversity annually
Keywords Studios – Capital Markets Day June 2022

81

Keywords Studios – Capital Markets Day June 2022

82

TALENT DEEP DIVE
DESTINATION INDIA& KWS ACADEMIESMANVENDRA SHUKUL, LAKSHYA DIGITAL& JON GIBSON, ELECTRIC SQUAREKey takeaways
Ò Destination for talent and career development
Ò Global footprint gives the ability to scaleÒ Focusing on all aspects of people and culture,continuously improving our EVPÒ Strategic investment in talent e.g. Academies

Keywords Studios – Capital Markets Day June 2022

84

ADJACENT MARKETS

5 WORKSTREAMS, 3 FOCUS AREAS EACH

1. Managing Our
Top 25 StrategicPartners
2. Internal Capability
and Capacity toManage The Top25
3. Top 5-10
Lighthouse Deals

1. Internal Tech
Spine
2. Service Line
Automation
3. Innovation /Mindset1. Values andLeadership
Principles
2. Spine Business
Partnering

1. Compensation‘Clear as a Bell’2. Specialized
Recruitment &Development
Pathways

1. Live Operations
2. Media &Entertainment
Sector (Incl.
VirtualProduction)

3. M&A Integration
3. Keywords
Academy for
Excellence

3. Metaverse

Keywords Studios – Capital Markets Day June 2022

86

Publisher
Activities

LIVE OPERATIONSIn Game Support

Content Production

TestingÒ More and more Games are moving to a 'Games as aService' model – led by Mobile but increasingly prevalent inConsole and PC
Ò Keywords already provides numerous services to games where
content is continually updated (Games as a Service and Mobile)Ò We also provide Player Support services and now have thecapability to provide Community Management through our
Waste Creative agency
Ò Currently these services are sold as a point solution through theService Lines but there is an opportunity to go to market as a
LiveOps Service

Community
Management

Playeracquisition

Localization

Product approach`` Player Support

Game Analytics

Live approach
Title A - I
Title A - IITime

Title A
Player Engagement from launchContent
Development /Art / Audio

Player Engagement from launchContent Ideation

LiveOps
Activities

TimeÒ We are already doing this in some parts of the business andhave launched our first LiveOps studio in the UK
Keywords Studios – Capital Markets Day June 2022

87

MEDIA & ENTERTAINMENT MARKETMedia & Entertainment Market ($bn)
160
GR
7% CA

140

+$150 billion market for HomeEntertainment (streaming)and Box Office

120
100

Convergence at the customer level

80

Video game technology increasingly
being used as a means to develop
Film & TV content

60
40
20
0
2019

2020

2021

2022

2023

2024

2025

Source: IDG, includes Home Entertainment a(streaming) and Box Office
Keywords Studios – Capital Markets Day June 2022

88

GAME DNA IS ENABLING NEW OPPORTUNITIESVideo Games Technology isincreasingly disrupting the
traditional content production
process in Film & TV
Game Engines

Game
Production
workflowFilm & TV
Production
workflow

Testing

Production scheduling

Developing, rendering

Audio post-production

Early prototyping

Physics, mechanics

Localisation

Background design

Audio, VFX

Support

Storyboarding

Modeling, designing

Marketing
Editing

Storyboarding
Set design

Filming

VFX

Production schedulingLighting

Audio post-production

CastingSound

Globalisation

Facility Management

Behind the scenes

Marketing

Pre-Production

Production

Post-Production
Keywords Studios – Capital Markets Day June 2022

89

FILM & TV DUBBING & SUBTITLING OPPORTUNITY
Film & TV Dubbing & Subtitling Services Market:
New Content ($bn)
2.0

Keywords Film & TV Globalization InitiativeÒ Dubbing & subtitling services for the Film & TV
industry

R
10% CAG

1.6

Ò Capitalizing on existing skills and recording studioinfrastructure

1.2

Ò 6 locations presently

0.8

Ò Serving Netflix, Amazon, DreamWorks Studios, etc.

0.4

Ò c. €16m of Revenue in FY21

0.0

Ò …with room to leverage Keywords footprint further(e.g.: Mexico, Brazil, Spain, France, Tokyo)

2018

2019

2020

2021

2022

2023

$1.7 billion market for New Content+$4 billion market in total
Highly fragmented landscape
Source: New Content / Caretta Research

Keywords Studios – Capital Markets Day June 2022

90

VIRTUAL PRODUCTION OPPORTUNITY
Global Virtual Production Market ($bn)$1.7bn in
VirtualProduction$2.9 billion market

3.0
2.5
2.0
1.5
1.0
0.5
0.0

9% CAGR

2020 2021 2022 2023 2024 2025 2026 2027 2028
Source: Ampere Markets

Source: Statista

Increased appetite for Video Game IPs in the Film & TV industry – most of which Keywords has worked on“Content war” fueling a buoyant demand for VFX capabilities and capacity
Virtual Production disrupting the Film & TV making process, leveraging game engine technology
Keywords is the largest global provider of game technology experts, with +2,700 specialists in our Create Service Line… and we’re already utilizing Virtual Production to deliver on our clients’ needs
Keywords Studios – Capital Markets Day June 2022

91

Keywords Studios – Capital Markets Day June 2022

92

A KEYWORDS STUDIO

“The metaverse doesn’t
exist! You’re talking about
gaming” – The DrumIDEALLY POSITIONED FOR THE METAVERSE

More limited role for Keywords to play inthe infrastructure of the Metaverse…

Cloud / Scalability

Game Development

Art Services

Audio Services

User Interface
Gateways will require reliable additional
capacity to create and maintain content

Economic

Infrastructure

Connectivity

Marketing / Adtech
Functional QA…but content, regardless of target audience, will
require similar services to create and maintain

SocialLocalization

Creative

Marketing services

Player Experience

Other participants likely to seek turnkey solutions to
put their content into the Metaverse

Digital EventsContent

Localization QA

Traditional Gaming
Educational / Professional
Keywords Studios – Capital Markets Day June 2022

94

Key takeaways
Ò Development of Live Ops offeringÒ Expanding relevance of Games DNA into natural
adjacencies
Ò Strong convergence of M&E towards games –both customers and technology (Initial focus on
Dubbing & Subtitling and Virtual Production)
Ò Well positioned for the Metaverse

Keywords Studios – Capital Markets Day June 2022

95

M&A

USING M&A TO BUILD OUT OUR PLATFORM€540m

Average organic growth

€215m

€528m

+15%

Total consideration and number of acquisitions
€120m

€440m

11

€100m

6

€80m

€340m

€297m

9

€60m
€40m

€240m

4

€20m

7

9

4

€0m

€140m

€40m

6

2014

2015

2016

2017

2018

2019

2020

2021

€16m
2013 revenue

Acquired revenue

Organic revenue

2021 Pro Forma
Revenue

56€256m

Value creating acquisitions
since IPO

in net cash and undrawn RCF

Art Services

Marketing Services

Game Development

Audio Services

Functional Testing

Localization

Localization Testing

Player Support

Strong pipeline from which we are selecting highest quality opportunities
Particular focus on Game Development, Marketing Services, Technology
and selective Adjacencies
Keywords Studios – Capital Markets Day June 2022

97

KWS M&A VERTEXEXECUTION

M&A FUNNEL

WHY WE DO IT

DISCIPLINED
PROCESS

WHAT WE
TARGET AND
WHY

WHAT WE ARELOOKING FOR

Keywords Studios – Capital Markets Day June 2022

98

WHY WE DO IT

Executeon building the Keywords platform

Addcapabilities, talent, client relationships,
technology

Accelerate
profitable growth

Strengthen
leadership position

Deploycapital at attractive valuations

Keywords Studios – Capital Markets Day June 2022

99

WHAT WE TARGET AND WHY

Globalize

EngageCreateOffering Components

Art
Game Development
MarketingPlayer Support
Testing

What we target
Capability

Geography

ü
ü

ü
ü

ü

ü
ü

ü

ü

ü

Localization

Relationships

TechnologyüWhy we target it

Expertise
Access to talent and talent pools
CapacityüüüüServe and execute at scale
Reach
Into clients, both new & existing
Efficiency
More, better, faster

Potential Adjacencies
Keywords Studios – Capital Markets Day June 2022

100

WHAT WE ARE LOOKING FOR
We’re only as strong as the next studio that joins Keywords

CultureQuality

Performance“One Keywords”

Well established reputation

Growth and profitability

Entrepreneurial mindset

Strong pedigree teams

Track record of delivery

Humble, yet ambitious

Exposure to high-profile
clients and titles

Ambitious growth plans

Shared values & attitudes

Repeat business

Keywords Studios – Capital Markets Day June 2022

101

INDICATIVE M&A FUNNEL
At any point in time, Keywords is considering c. +30 M&A opportunities
Qualification+90
Opportunities

Identified in the market

Assessment+30

Engaged and assessing

Deal Discussions+10

Due Diligence+3

Advanced discussions~5-10 studios joining per year, ~€50-100m yearly spend
Strategy-driven target prioritization defined with Service Lines
Disciplined approach, with regular reviews
Strong in-house capabilities, engaging proactively with sellers
Keywords Studios – Capital Markets Day June 2022

102

DISCIPLINED PROCESSThe “Keywords experience”
Origination

Execution

Integration

Trust-based relationship

Internal team with external support

Dedicated onboarding resource

Reputation as "good acquirer"

Highly repeatable process

Careful balance:

Early involvement of Service Lines

Continued involvement of theService Lineso Preserve studio’s entrepreneurialDNA

Development of integration plano KWS spine absorbs support
functionsInternal team reinforced
Introduction to former sellers

Due Diligence report signed off byBoard

o Lay foundations for scaling-up

Constant proximity with Sellers throughout the process
Established process, +50 acquisitions completed
High LOI-to-Completion conversion
Keywords Studios – Capital Markets Day June 2022

103

WHAT WE TARGET AND WHY

Globalize

EngageCreateOffering Components

Art
Game Development
MarketingPlayer Support
Testing

What we target
Capability

Geography

ü
ü

ü
ü

ü

ü
ü

ü

ü

ü

Localization

Relationships

TechnologyüWhy we target it

Expertise
Access to talent and talent pools
CapacityüüüüServe and execute at scale
Reach
Into clients, both new & existing
Efficiency
More, better, faster

Potential Adjacencies
Keywords Studios – Capital Markets Day June 2022

104

ENGAGE TODAY
Bringing together experts from across the network into a simple service offering, supercharging decision making in today’scomplex marketing landscapeMarketingServices2021 €46m

ENGAGE

Servicing clients via specialist teams

MarketingCommunity Management

Player Support& Research2021 €46m€92m FY 2021
Engage Revenue
18% FY 2021 %of Group Revenue

Player Experience
2021 €92m

2,000+ Engage Employees

Supported by operational excellence from service line

Strategic Account Planning
Market Intelligence & Data Insights Team
Integrated Solutions & Production Team
Unified Production Platform
30 Engage Locations
28 Engage Studios
Keywords Studios – Capital Markets Day June 2022

105

ENGAGE TOMORROW: HOW WE WILL SERVE CLIENTS’
MARKETING NEEDS
Strategic &Creative Planning
Product & Franchise Planning
Brand Identity
Campaign Planning
Community Strategy

LA
TE
DE
V.

V.
DE

GAME
ENGAGEEXPERIENCESERVICES
LIFECYCLE

E
VIC
ER
ES
LIV

Primary Research
Audience, Brand & Marketplace Analysis
Sentiment Analysis
Analytics
Insights

Y
RL
EA

Data/
Insights

R&
D

PLANNINGLAUNCHCampaign
Execution
DesignAV / content creation
PR
Influencer Marketing
Esports Marketing
Retail / Platform
Metaverse / Experiential
MarketingVR / ARLive Service /Sustained Marketing
Social & Digital Marketing
Community Management
Player Experience / support
Performance Marketing
User Acquisition
Customer Service Tech

* Capabilities we’re interested in

Keywords Studios – Capital Markets Day June 2022

106

Key takeaways
Ò Core part of strategy to build out platform
through M&A
Ò Track record of execution, with disciplined
and consistent processÒ Strong pipeline of opportunitiesÒ Current focus on Game Development,
Marketing capabilities, Technology andselective Adjacencies

Keywords Studios – Capital Markets Day June 2022

107

IGNITING GROWTH
Most Compelling Solutions‘GAME MAKERS’
GlobalExcellence

Best Clientsand Titles

Best People

Targets

KEYWORDS GROWTH
MODEL

KEYWORDS' MEDIUM-TERM GROWTH MODEL

10%+€50-100m

Organic Growth

Acquisition spend per yearD

80%+
Cash conversion~15%
Adjusted PBT margin

Keywords Studios – Capital Markets Day June 2022110

10%+ ORGANIC REVENUE GROWTH…

10%+Organic
Revenue
GrowthÒ

Large addressable TAM of €11bn growing by 10%ÒOnly global, full-service provider in the market

Ò

Scale begets scale in an otherwise highly
fragmented market

Ò

Organic Revenue Growth
19.0%

Balanced business across service lines andgeographiesÒ

Increasingly predictable and repeating revenue baseÒ

Local business development supplemented by
global sales team and continued cross sellopportunityÒ

Clear strategy to develop strategic partnerships

15.5%

15.0%

11.7%
10.1%

2017

2018

10%+

2019

2020

2021

Medium-term

Consistent 10%+ Organic Revenue Growth

Keywords Studios – Capital Markets Day June 2022

111

STABLE ADJUSTED PBT MARGINS…

Ò Service Line structure to drive operational
excellenceÒ Investment in regionalized back office todrive efficiencies of scale~15%
Adjusted
PBT
marginAdjusted PBT Margins
16.8%
15.2%

15.1%

~15%

14.7%
12.5%

Ò Investment in technology and automation(e.g. Kantan)
Ò Investment in Talent development
particularly Game Development
Ò Pricing and right shoring to lower costlocations (Poland, Mexico, India,
Philippines)

2017

2018

2019

2020

2021

Medium-term

Stable Margin Delivery

Keywords Studios – Capital Markets Day June 2022112

80%+ FREE CASH FLOW CONVERSIONÒ Inherently cash generative
business
Ò Favourable working capitaldynamics

80%+
cash
conversion

Cash Conversion Ratio
107%
82%

79%

2018

2019

Ò Low capital requirements

97%

80%+

Ò Provides ‘organic’ funding for
M&A

2020

2021

Medium-term

Robust And Consistent Cash Conversion

Keywords Studios – Capital Markets Day June 2022113€50-€100M ACQUISITION SPEND PER YEAR

56

Value creating acquisitions since IPO

€540m

€440m

Key growth
driver

Disciplined andtargeted M&A
programme

Robust funding
positionÒ Acquisitions converted into resilient
growth enginesÒ Virtuous circle of organic cash
generation from M&A investment
Ò Large and highly fragmented market
Ò Game Development, Marketing andTechnology focus
Ò Selective Adjacent Market expansion
Ò Executed at attractive valuations;5 - 7x EBITDA multipleÒ €253m in cash and undrawn RCF
Ò Organic cash generation
Ò Ability to leverage balance sheet

Average organic
growth

€215m

€528m

Organic revenue

2021 Pro Forma
Revenue

+15%

€340m

€297m

€240m

€140m

€40m

€16m
2013 revenue

Acquired revenue

Strong pipeline from which we are selecting
highest quality opportunities
Particular focus on Game Development, Marketing
services, Technology Keywords
and selective
Adjacencies
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114

RESILIENT BUSINESS WITH STRONG BALANCE SHEET
Resilient business modelÒ ‘Sticky’ revenue base with strong long-standing
relationships with customers and high level of repeat
business
Ò Increasingly embedded into customers systems andworkflowsÒ Video games industry historically resilient in times of
economic downturnÒ Ability to operate almost all services in a work fromhome model if studios are temporarily closed
Ò Highly cash generative business with flexibility to flex
cost base

1. Subject to lender consent

Robust balance sheet
Ò Net cash of €103m at end of December 2021
Ò Revolving Credit Facility (RCF) of €150m expiring in
2025 with option to extend for 2 years and accordion
feature to increase by €50m1
Ò Net debt to EBITDA covenant of 3 x providing
flexibility to leverage the balance sheetÒ Over €250m of liquidity through cash and undrawn
committed headroom on the facility to:Ò Provide flexibility to execute the acquisition
strategyÒ Continue to invest in the business

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STRATEGIC PRIORITIESContinuing to build our platform
Organic investment

M&A investment

Ò Continue to expand our end-to-end global services
platform

Ò A particular focus on Marketing Services and Game
Development to establish them as go to providers

Ò Enhancing our service lines through further
investment in technology, capacity, capabilities andgeographies

Ò More selective acquisitions to enhance and extend
other service lines and investment in technology

Ò Leveraging our platform cost-efficiently throughinvestment in automation and innovation

Ò Selective adjacent market expansion

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116THE PATH TO A €1BN REVENUE BUSINESS
10%+ organic growthcompounding

Revenue€mStable Adjusted
PBTA Margins ~15%

€1bn+
Revenue

80%+ Cash
Conversion€512m

2021 Actual€50 - €100m M&A
spend p.a.

Mid-term
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OUTLOOK AND WRAP UPGROUP OUTLOOK

01

02

03

Positive start to 2022 – strongorganic revenue growth in thefirst 4 months

Confident of FY22 performancein line with expectations

Continued investment in theplatform and capabilities

04

05

06

Continued strong margins
moving back towards 15%

Well-funded to deliver ouracquisition and growthstrategy

Well positioned to take businessto the next level

Expect to further cement our position as the ‘go to’ providerof technical and creative solutions to a global client base
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KEYWORDS STUDIOS: THE INVESTMENT CASE

Lots of runway.
Clear market leader,but only 5% of market

Source: IDG Consulting.

Picks-and-shovels
in a buoyant market

Strong andresilient platform

We are in motion
and have the plan

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