#19 Nov 2021 www.acast.com Acast For The Stories. JAN - SEP 2021 INTERIM STATEMENT#2Aca Acas Ross Adams In the "Room" CHIEF EXECUTIVE OFFICER Emily Villatte CHIEF FINANCE OFFICER & DEPUTY CEO 2 A#301 Acast in Brief A#4VICE FT MY DAD WROTE A Porno BERT SHOW (1) 2018-2020 RodEO Walking CREATORS BBC Forever The HEARST Economist x.m OFF RERU AKT www HETE TRAFFIC PLATEM S PBS www. SAVEZ POINTS www ~35,000 SHOWS Acast's Business Strategy Is To become the largest marketplace for podcast monetization globally Acast To get there we are winning the trust of the "Supply" side and the "Demand" Side PERFORMANCE BRIDGE HAVAS MEDIA IPG ARCIS AEGIS ADVERTISERS & LISTENERS VERITONE. accuen AD RESULTS MH.M amnet OXFORD. WPP VIVAKI OmnicomMediaGroup" NITSUS NOTR - Microsoft XAXIS LEGO Google TELE2 EURO SPORT BOSE 68M MAU'S 4,000+ ADVERTISERS(¹) 6 60 60 60 4 A#5CREATORS Everything we do aligns with our mission to support Creators and Advertisers While ensuring a great listener experience. WE ENABLE ALL PODCASTERS, OF ALL SIZES, EVERYWHERE, TO FIND LISTENERS AND MAKE MONEY FROM THEIR PODCASTS - ON THEIR OWN TERMS Acast This is what we do. We are Pure Play podcasting. ADVERTISERS WE ENABLE ADVERTISERS TO REACH ENGAGED, IMMERSED LISTENERS WITHIN THE WORLD'S LEADING PREMIUM PODCAST MARKETPLACE - ALWAYS RESPECTING THE UNIQUE RELATIONSHIP BETWEEN PODCASTER AND LISTENER, TO DELIVER MAXIMUM EFFECTIVENESS AND ROI 5 A#6Acast+ - turning listeners into fans ● ● ● Acast+ introduces a new addressable market and revenue stream to Acast – direct support from listeners Brings new monetization options to podcasters - enabling them to monetize in the way that suits them Ad-free streams, extended episodes and bonus content Number of subscribers are in the thousands Building on the technology we've already been using to serve the biggest enterprise publisher customers Still in beta phase – to be launched before the end of the year Acast+ For The Fans. 6 A#7Let's hear from the podcasters themselves... Trash TV&GayDD with Mattie & Poodle mmm reality Gays Better Than Yesterday :) with Osher Günsberg BOT TOM NG BM Τ ΗΙ GUILT FEMINIST Acast '00⁰ The Worst Idea of All Time. 7#8We operate within the open ecosystem for podcasting HCD PODCASTERS ›A › HOST RSS Podcasts hosted with Acast are available on a vast array of listener apps, web-players and smart speakers A C DEEZER (@ © & (C) DO 8 I STITCHER (Q D) PODCATCHERS LISTENERS 8 A#9When listening grows Acast benefits HCD PODCASTERS ›A › HOST RSS No matter where and how listeners consume their podcasts, if the show is hosted with Acast, we monetize it A C DEEZER (Q C. © & (C) DO 8 I STITCHER D)) PODCATCHERS LISTENERS 9 A#10These are the building blocks needed to create a successful podcast monetization marketplace 1 2 LISTENERS 4 LISTENS 5 RIGHT TO MONETIZE MAUS 6 AD TECH & TARGETING Usage INTERNATIONAL PRESENCE QUALITY CONTENT Inventory Yield Pricing Efficiency 10 A#11'14 SE d- '15 GB ECONOMIST, FT, AFTONBLADET The success of Acast's marketplace has resulted in a track record of hypergrowth |- '16 START-UP PHASE NO TOP 100 STARTUP IN EUROPE QUARTERLY REVENUE (000'S SEK) Q4 Q1 Q2 Q3 Q4 Q1 02 Q3 2014 2015 2015 2015 2015 2016 2016 2016 Q4 2016 '17 AU NZ US NEW MARKET EXPANSIONS Q1 Q2 2017 2017 Q3 2017 '18 PROFESSIONALIZATION PHASE IE CA BBC, DISTRIBUTION PARTNERSHIPS Q4 Q1 Q2 Q3 04 2017 2018 2018 2018 2018 '19 FR DE AUDIENCE GROWTH; HOME DEVICES Q1 Q2 2019 2019 Q3 2019 '20 MX DK PIPPA ACQUISITION, PATREON PARTNERSHIP '21 ROW IPO, RADIO PUBLIC, RE- SIGNING BBC, ACAST+ Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2020 2020 2020 2021 2021 2021 >40-80% MARKET SHARE IN CORE EUROPEAN MARKETS GROWING AT PACE IN ALL MARKETS WHERE WE PLAY FOCUS ON BECOMING #1 PODCAST MARKETPLACE#12AVERAGE ANNUAL GROWTH D 60% ORGANIC NET SALES CAGR 2020-2025 Financial Targets GROSS MARGIN $ Maintain MAINTAIN AT LEAST 37% GROSS MARGIN LEVEL (1) Acast aims to reinvest its cash flows into growth initiatives to support growth and value creation, and therefore does not expect to pay annual dividends in the short medium term EBITDA $ 3-5 Years REACH AN EBITDA BREAKEVEN DIVIDEND POLICY NO DIVIDENDS IN THE SHORT TO MEDIUM TERM (¹) 12 A#1302 CEO Update A#1489% NET SALES GROWTH Financial Highlights Q3-2021 87% organic net sales growth after adjusting for currency effects 36% GROSS MARGIN A healthy gross margin in line with he same quarter in the prior year -16% EBITDA MARGIN A material improvement on Q3-20 EBITDA margin of -22% 14 A#15Business Highlights – Q3 2021 Number of shows on the Acast platform reaches 35,000 including key podcasts such as Fearne Cotton's Happy Place (UK), Donovan Bailey's Running Things (CA) and Comedy Bang! Bang! (US) with listens reaching 891M Americas leading the way with 111% net sales growth or 123% organic growth Following the end of the quarter the BBC announced that it is renewing its contract with Acast to continue to monetize its international listens for the next three years APPY T H GUILTY FEMINIST Acast RUNNING THINGS BONDVAN BAILPY SCOTT AUKERMAN'S COMEDY BANG! BANG! BBC NEWS#16Market Highlights Privacy in Focus - No impact on Acast from recent privacy announcements from Apple New listener data from eMarketer* - in 2021 40% of US internet users (118M MAUS) will listen to a podcast at least 1 / month, projected to grow to 60% by 2024. Europe currently at 78M. Acast continues to take market share - Reach increases to 68M MAUs per month in September - 16M MAUs in the US (13% of total), Europe 34MAU (44% of total). Facebook continues to roll out podcast listening through its platform and Samsung launches a Podcast listener app powered by Acast content. Continued growth of Programmatic sales - 263% Q3-21 * WWW.EMARKETER.COM/CONTENT/REALM-OF-PODCASTING-US-GLOBAL-LEADER-ALL-RESPECTS 16 A#1703 Financial Review A#18Net Sales (SEKm) Q3-21 vs Q3-20 140 Q3-20 +89% Net sales growth of 89% Q3-21 vs Q3-20 All market segments contributing to net sales growth Net Sales Growth of 89% 265 Q3-21 Quarterly Net Sales (SEKm) Organic Net sales YOY growth Net sales YOY growth 73 81 85 123 +55% 113 +22% 98 Organic net sales growth of 87% adjusted for currency effects +66% 140 +95% 240 +74% 197 +130% Q3-21 organic net sales growth of 87% adjusted for currency effects Limited impact from seasonality in Q3. 227 89% 87% 265 Q1-19 Q2-19 Q3-19 04-19 Q1-20 Q2-20 Q3-20 04-20 Q1-21 Q2-21 Q3-21 18 A#19Gross Profit (SEKm) Gross Profit -Gross Margin (%) 50 35,9% Q3-20 Gross profit of MSEK 97 in Q3-21, which is a 93% increase vs Q3-20 A Healthy 36% Gross Margin 97 36.5% Q3-21 Gross profit margin remains at a healthy 36% in Q3-21 compared to Q3-20 Quarterly Gross Profit (SEKm) Gross Profit Gross Margin (%) 29 36,9% 36,3% 27 27 32,4% 45 36,7% 40 35,3% 37 37,1% 50 35,9% 93 Gross profit continues its upwards growth trajectory 38,7% 71 83 97 36,0% 36,5% 36,5% Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 19 A#20EBITDA (SEKM) EBITDA EBITDA margin % -31 -22,0% Q3-20 Continued EBITDA Margin Improvement to -16% -42 -16,0% Q3-21 As the organization continues to grow revenues faster than operating expenses the EBITDA margin has improved from -22% in Q3-20 to -16% in Q3-21 Adj. EBITDA (SEKm) EBITDA EBITDA margin % -31 -22,0% Q3-20 -42 -16,0% Q3-21 Immaterial adjustments related to the IPO generates Adj. EBIDA in line with EBITDA. 20 A#21Listens Listens in Millions -ARPL (1) . Underlying listens growt of 17% to 944M adjusted for the effects of the Apple bug, which is now fixed. 0,17 809 Q3-20 Monetization of Listens Continues to Improve +10.1% 0,30 891 Q3-21 Listens increased by 10.1% compared to Q3-20 ARPL has increased over time due to more effective monetization Quarterly Listens Listens in Millions -ARPL (1) 419 0,17 0,17 476 . . 459 0,18 516 0,24 603 0,19 701 0,14 Note: Number of listens per year based on Acast's IAB 2.0 certified measurement. A listen is defined as a minimum download of at least 60 seconds of the episode and Acast only count one listen per listener per episode within 24 hours. (1) Net sales per listens in SEK. Underlying listens adjusted for Apple bug effects 809 0,17 863 872 0,28 0,23 880 0,26 944 Q1-19 Q2-19 Q3-19 04-19 Q1-20 Q2-20 Q3-20 04-20 Q1-21 Q2-21 03-21 891 0,30 Q3-21 listens were negatively impacted by a bug in listens consumed on Apple devices. The bug was consequently fixed during Q3. Adjusted listens were 944M in Q3 or represented 17% growth compared to Q3-20. Adjusted ARPL reached 0.28 SEK. 21 A#22Q3-21 Operating Cash Flow (SEKm) Increase Decrease 0 -10 -20 -30 -40 -50 -60 -70 -31,4 Operating Activities Cash Flow impacted by phasing of working capital -39,4 Working Capital TOTAL -70,8 Q3-20 Operating Cash Flow (SEKm) Increase Decrease 0 -10 -20 -30 -40 -50 -60 -70 -30,7 Operating Activities -7,8 Working Capital TOTAL -38,5 In Q3-21 cash flow from operating activities was impacted by phasing of working capital, mainly from increased accounts receivables. Some of our largest agency clients in the UK have implemented a payments portal, which Acast has integrated to via an API. During the implementation technical issues resulted in a larger amount of overdue accounts receivable as at Q3-21. Once fully operational this API is envisaged to improve collections. 22 A#23Net Sales (SEKm) CBIT(¹) (SEKM) Europe . . . Q3-20 94 Q3-20 CBIT Margin in % 15 15,5% Q3-20 +84% Q3-21 174 Q3-21 26 14,9% Q3-21 Americas Leading the Way for Growth Net sales in Europe increased by 84% in Q3-21 vs Q3-20 All markets within Europe contributed to this growth Flat CBIT margin impacted by IFRS 9 credit loss model accruals in UK (see operating cash flows) Europe also includes newer growth markets such as Norway, Denmark, France, Germany and Ireland Americas Organic net sales growth of 123% adjusted for currency effects 32 Q3-20 -CBIT Margin in % 0,0% -2 Q3-20 +111% 69 Q3-21 1 0,0% Q3-21 Americas growth was impacted by currency and underlying organic net sales growth for the segment was 123% Americas local operating profit positive in Q2-21. Americas mainly includes the US but also newer growth markets Mexico and Canada Other Markets 13 Q3-20 CBIT Margin in % -1 -8,7% Q3-20 +77% 23 Q3-21 1 5,8% Q3-21 Other Markets include AU, NZ, and an international sales team. A#24A 04 Recent Events & Upcoming Areas of Focus#25Recent Events & Upcoming Areas of Focus Three Year renewal of international deal with BBC High-profile podcasters joined Acast Sex with Emily (US), Flashback Forever (SE), Estas Rica (MX) Strengthening leadership team Johan Billgren Chief Innovation Officer, Matt McDonald CPO Focus on expansion through new International Team Pre-launched in 20 markets e.g. The Netherlands, Singapore and Italy Q4 launch of Acast+ 25 A#2605 Q&A A#27Aca Acas Ross Adams CHIEF EXECUTIVE OFFICER Q&A O Emily Villatte CHIEF FINANCE OFFICER & DEPUTY CEO 27 A#28Follow us on Investors.acast.com/subscribe Medium.com/acast А 28 A#29Acast For The Stories.#30Appendix A#31Condensed consolidated statement of profit or loss SEK thousand Net sales Cost of content Gross profit Sales and marketing costs Administration expenses Product development costs Other income Operating loss Financial income Financial costs Loss before income tax Income tax expense Loss for the period Earnings per share, based on loss for the period attributable to Parent Company shareholders: Basic earnings per share, SEK Diluted earnings per share, SEK Average number of shares, thousands 2021 2020 2021 2020 2020 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec 4 265,142 139,975 689,211 351,662 591,530 -89,769 -438,546 -224.953 -372,103 -168,402 96,740 50,206 250,665 126,709 219,427 Note -73,772 -44,230 -31,485 -52,747 9,619 -647 -43,775 -41,425 -195,663 -122,704 -176,883 -27,549 -157,077 -84,244 -112,216 -18,909 -84,932 -56,057 -79,743 260 4,873 -37,417 -182,134 -135,498 -148,538 -0.26 -0.26 176,664 798 877 -8 49,948 3,589 -2,775 -138,970 -10,015 -18,503 -40,192 -271,157 -141,925 -166,996 45 -2,357 -3,948 -2,239 -5,225 -46,132 -40,200 -275,105 -144,164 -172,222 -0.30 -1.36 -1.83 -1.83 -1.16 -1.16 -1.36 -0.30 132,073 150,019 124,454 124,454 31 A#32Condensed consolidated statement of financial position SEK thousand ASSETS Non-current assets Goodwill Intangible assets Tangible assets Right-of-use assets Financial assets Deferred tax assets Total non-current assets Current assets Accounts receivable Other receivables Prepaid expenses and accrued income Cash and cash equivalents Total current assets TOTAL ASSETS Note 30 Sep 2021 26,337 36,827 1,649 45,976 2,822 331 113,943 318,967 6,159 22,092 1,360,623 1,707,845 1,821,784 30 Sep 2020 31 Dec 2020 26,956 26,311 2,713 52,549 2,264 1,450 112,243 159,516 7,067 17,394 253,632 437,609 549,852 24,485 27,303 2,396 47,975 2,047 433 104,639 279,108 3,120 12,172 288,599 582,999 687,638 SEK thousand EQUITY AND LIABILITIES EQUITY Share capital Other paid in capital Translation reserves Retained earnings (including loss for the period) Total equity attributable to Parent company shareholders LIABILITIES Non-current liabilities Lease liabilities Long-term loans from credit institutions Deferred tax liabilities Total non-current liabilities Current liabilities Accounts payable Other payables Current tax liabilities Lease liabilities Accrued expenses and prepaid income Total current liabilities TOTAL EQUITY AND LIABILITIES Note 30 Sep 2021 1,159 2,300,675 -5,257 -790,752 1,505,824 26,412 8,332 34,744 55,771 49,169 3,706 20,153 152,417 281,216 1,821,784 30 Sep 2020 856 841,290 -1,642 -508,868 331,636 36,395 6,350 42,745 24,562 44,606 14,802 91,501 175,471 549,852 31 Dec 2020 856 840,221 483 -535,655 305,905 32,769 100,361 6,613 139,743 50,012 45,579 874 13,994 131,532 241,991 687,638 32 A#33Condensed consolidated statement of cash flows SEK thousand Operating activities Operating loss Adjustments for non-cash items Interest received Interest paid Income taxes paid Changes in working capital Accounts receivable (increase - / decrease +) Other current receivables (increase - / decrease +) Accounts payable (increase + / decrease -) Other current liabilities (increase + / decrease -) Total change in working capital Cash flows from operating activities 2021 Note Jul-Sep -52,747 22,303 -997 - -135,498 -148,538 23,758 23,222 45 45 -164 -3,515 -654 -196 -1,775 -1,109 -31,441 -30,726 -122,174 -114,579 -128,950 -55,255 14,083 -7,902 2020 2021 2020 Jul-Sep Jan-Sep Jan-Sep 9,686 -39,389 -70,830 -31,535 1,659 -41,531 -7,720 -182,134 64,330 5,474 -4,370 -26,534 -49,973 -11,463 -13,048 5,652 2020 Jan-Dec -4,314 -169,983 -4,105 21,264 35,963 20,328 48,075 92,974 -7,814 -12,017 -19,260 -59,850 -38,540 -134,191 -133,839 -188,800 SEK thousand Investing activities Investment in equipment Investment in intangible assets Long-term asset (increase - / decrease +) Cash flows from investing activities Financing activities Proceeds from borrowings Repayment of loans Principal elements of lease payments Long-term incentive programs Issue of new shares Cash flows from financing activities Cash flows for the period Cash and cash equivalents at the beginning of the period Effect from movements in exchange rates on cash and cash equivalents Cash and cash equivalents at the end of the period 2021 2020 2021 2020 Note Jul-Sep Jul-Sep Jan-Sep Jan-Sep -6,906 -149 -7,055 -4,930 36,791 31,861 -46,024 1,402,608 4,039 1,360,623 -3,241 -22,164 -42 -104 -3,283 -22,886 -618 -101,889 -4,879 -13,167 86,173 249,919 1,249,135 245,040 1,220,252 50,923 203,217 1,063,175 -508 288,599 8,849 -1,355 -13,315 -99 -14,769 -12,248 682 250,000 238,434 89,826 2020 Jan-Dec -2,121 -1,122 -17 089 19 -18,192 100,361 -16,729 657 248,956 333,245 126,253 165,927 165,927 -3,591 253,632 1,360,623 253,632 288,599 33 A#34Note: Jan-Jun 2021 figures are unaudited Condensed consolidated statement of changes in equity Opening balance at 1 January 2020 Loss for the period Other comprehensive income Total comprehensive income for the period Transactions with owners Issued warrants Repurchased warrants Net issue of ordinary shares Employee share schemes -value of employee services Total transactions with owners Closing balance at 30 September 2020 Opening balance at 1 October 2020 Loss for the period Other comprehensive income Total comprehensive income for the period Transactions with owners Repurchased warrants Net issue of ordinary shares Employee share schemes - value of employee services Total transactions with owners Closing balance at 31 Dec 2020 Note Share capital Other paid in capital 775 590,690 81 81 856 856 Equity attributable to the equity holders of the parent company Retained earnings (including loss for the period) -373,502 -144,164 856 797 -115 249,919 250,601 841,290 841,290 -25 -1,044 -1,069 840,221 Translation reserves 292 -1,934 -1,934 -1,642 -1,642 2,125 2,125 483 -144,164 8,797 8,797 -508,868 -508,868 -28,058 -28,058 1,271 1,271 -535,656 Total equity 218,255 -144,164 -1,934 -146,098 797 -115 250,000 8,797 259,479 331,636 331,636 -28,058 2,125 -25,933 -25 -1,044 1,271 202 305,905 34 A#35Note: Jan-Jun 2021 figures are unaudited Condensed consolidated statement of changes in equity, cont. Opening balance at 1 January 2021 Loss for the period Other comprehensive income Total comprehensive income for the period Transactions with owners Issued warrants Utilized Warrants Repurchased warrants Net issue of ordinary shares Costs related to listing Employee share schemes - value of employee services Total transactions with owners Closing balance at 30 September 2021 Note Share capital Other paid in capital 856 840,221 48 254 Equity attributable to the equity holders of the parent company Retained earnings (including loss for the period) 303 1,159 26 86,125 -72 1,425,018 -50,643 1,460,454 2,300,675 Translation reserves 483 -5,740 -5,740 -5,257 -535,656 -275,105 -275,105 20,009 20,009 -790,752 Total equity 305,905 -275,105 -5,740 -280,845 26 86,173 -72 1,425,272 -50,643 20,009 1,480,765 1,505,824 35 A#36DISCLAIMERS A FORWARD LOOKING STATEMENTS This presentation includes forward-looking statements, including statements reflecting management's current views relating to the growth of the market, future market conditions, future events, financial condition, expected operational and financial performance, including, in particular the following: - Our goals, strategies, planning assumptions and operational or financial performance expectations; - Industry trends, future characteristics and development of the markets in which we operate; - Our future liquidity, capital resources, capital expenditures, cost savings and potential profitability; - The expected demand for our existing and new products and services as well as plans to launch new products and services; - The ability to deliver on future plans and to realize potential for future growth; - The time to integrate any acquired entities and businesses; - Technology and industry trends. The words "believe," "expect," "foresee," "anticipate," "assume," "intend," "likely," "projects," "may," "could," "plan," "estimate," "forecast," "will," "should," "would," "predict," "aim," "ambition," "seek," "potential," "target," "might," "continue," or, in each case, their negative or variations, and similar words or expressions are used to identify forward-looking statements. Any statement that refers to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. We caution investors that these statements are subject to risks and uncertainties many of which are difficult to predict and generally beyond our control that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Important factors that could affect whether and to what extent any of our forward-looking statements materialize include, but are not limited to, the factors described in the section Risk factors in the most recent Annual Report and/or Prospectus and in our quarterly reports. These forward-looking statements also represent our estimates and assumptions only as of the date that they were made. We expressly disclaim a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this presentation, to reflect events or changes in circumstances or changes in expectations or the occurrence of anticipated events, whether as a result of new information, future events or otherwise, except as required by applicable law or stock exchange regulation. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any of our securities. It does not constitute a prospectus or prospectus equivalent document and investors should not make any investment decision in relation to any shares referred to in this presentation.#37Acast For The Stories.