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Goodbye Kansas Group

Goodbye Kansas Group

Consolidating the XR & AR space

Goodbye Kansas Group is a conglomerate of four companies that leverage its proprietary technology within extended realty (XR), augmented reality (AR), motion capture and visual effects (VFX) with the aim of becoming the global leader within the space. The group has an M&A-driven growth strategy and it recently added ~SEK 200m in sales by acquiring the award winning VFX studio Goodbye Kansas Studios.

We anticipate that Goodbye Kansas Group will enjoy accelerated growth in our forecast period. Key drivers are: the commercialization and appropriate packaging of its platforms via Vobling and Sayduck, the imminent release of Otherworld Heroes and Hello Kitty AR: Kawaii World from Virtual Brains, and Goodbye Kansas Studios opting to enter more extensive framework agreements with its key customers and leveraging its proprietary software through a licensing model.

We see financial risk given if Goodbye Kansas Group's internally developed games, Otherworld Heroes and Hello Kitty AR: Kawaii World, are unsuccessful, Goodbye Kansas Group will likely have to raise additional funds. Furthermore, there is a competitive risk where larger companies with greater funding could develop their own platforms to compete with, for example, Vobling and Sayduck.

SEKm 2020 2021e 2022e
Sales 162 285 360
Sales growth (%) 850 75,7 26,4
EBITDA -41 -19 20
EBITDA margin (%) -25,2 -6,8 5,4
EBIT adj -78 -66 -25
EBIT adj margin (%) -48,1 -23,1 -7,1
Pretax profit -84 -66 -25
EPS rep -0,81 -0,55 -0,22
EPS growth (%) -4,1 31,7 60,8
EPS adj -0,81 -0,6 -0,23
DPS 0 0 0
EV/EBITDA (x) -7,2 -16,3 17,1
EV/EBIT adj (x) -3,8 -4,8 -13,2
P/E (x) -3,3 -4 -10,3
P/E adj (x) -3,3 -3,7 -9,6
EV/sales (x) 1,8 1,1 0,9
FCF yield (%) -68,2 -20,6 -7,9
Dividend yield (%) 0 0 0
Net IB debt/EBITDA -0,5 -3,7 4,7
Lease adj. FCF yield (%) -68,2 -20,6 -7,9
Lease adj. ND/EBITDA -0,5 -3,7 4,7
SEKm 2020 2021e 2022e
Leasing payments 0 0 0
Depreciation and amortisation -37 -46 -45
Of which leasing depreciation 0 0 0
EO items 0 0 0
Impairment and PPA amortisation 0 0 0
EBITDA lease Adj -41 -19 20
EBITDA lease Adj margin (%) -25,2 -6,8 5,4
Sales 162 285 360
COGS -47 -75 -90
Gross profit 116 210 270
Other operating items -157 -230 -251
EBITDA -41 -19 20
Depreciation on tangibles 0 0 0
Depreciation on intangibles -37 -32 -32
EBITA -78 -66 -25
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT -78 -66 -25
Other financial items -3 0 0
Net financial items -6 0 0
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit -84 -66 -25
Tax 0 0 0
Net profit -84 -66 -25
Minority interest 0 0 0
Net profit discontinued 0 5 2
Net profit to shareholders -84 -61 -24
EPS -0,81 -0,55 -0,22
EPS Adj -0,81 -0,6 -0,23
Total extraordinary items after tax 0 0 0
Tax rate (%) -0,1 0 0
Gross margin (%) 71,2 73,8 75
EBITDA margin (%) -25,2 -6,8 5,4
EBITA margin (%) -48,1 -23,1 -7,1
EBIT margin (%) -48,1 -23,1 -7,1
Pretax margin (%) -51,8 -23,1 -7,1
Net margin (%) -51,8 -23,1 -7,1
Growth rates Y/Y 2020 2021 2022
Sales growth (%) 850 75,7 26,4
EBITDA growth (%) -31,6 52,6 200,6
EBIT growth (%) -70,6 15,7 61,3
Net profit growth (%) -84,1 21,7 61,3
EPS growth (%) -4,1 31,7 60,8
Profitability 2020 2021 2022
ROE (%) -61,2 -41,5 -23,6
ROE Adj (%) -61,2 -45,1 -25,4
ROCE (%) -50,3 -31,2 -13,2
ROCE Adj(%) -50,3 -31,2 -13,2
ROIC (%) -60,2 -34,2 -14
ROIC Adj (%) -60,2 -34,2 -14
Adj earnings numbers 2020 2021 2022
EBITDA Adj -41 -19 20
EBITDA Adj margin (%) -25,2 -6,8 5,4
EBITA Adj -78 -66 -25
EBITA Adj margin (%) -48,1 -23,1 -7,1
EBIT Adj -78 -66 -25
EBIT Adj margin (%) -48,1 -23,1 -7,1
Pretax profit Adj -84 -66 -25
Net profit Adj -84 -66 -25
Net profit to shareholders Adj -84 -66 -25
Net Adj margin (%) -51,8 -23,1 -7,1
SEKm 2020 2021e 2022e
EBITDA -41 -19 20
Net financial items -6 0 0
Paid tax 0 0 0
Non-cash items 0 0 0
Cash flow before change in WC -47 -19 20
Change in WC -11 0 0
Operating cash flow -57 -19 20
CAPEX tangible fixed assets -2 -2 -3
CAPEX intangible fixed assets -29 -29 -36
Acquisitions and disposals -99 0 0
Free cash flow -187 -50 -19
Dividend paid 0 0 0
Share issues and buybacks 159 0 0
Other non cash items -108 -2 1
Decrease in net IB debt -57 -52 -9
Balance Sheet (SEKm) 2020 2021 2022
Goodwill 180 164 148
Indefinite intangible assets 0 0 0
Definite intangible assets 23 21 21
Tangible fixed assets 31 35 37
Other fixed assets 1 0 0
Fixed assets 234 219 212
Inventories 0 0 0
Receivables 48 48 48
Other current assets 0 0 0
Cash and liquid assets 25 10 11
Total assets 308 277 271
Shareholders equity 179 113 88
Minority 0 0 0
Total equity 179 113 88
Long-term debt 8 44 63
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 0 0 0
Lease liability amortisation 0 0 0
Other intangible assets 23 21 28
Right-of-use asset 0 0 0
Total other fixed assets 1 0 0
Leasing liability 0 0 0
Total other long-term liabilities 0 0 0
Net IB debt excl. leasing 21 73 91
Net IB debt / EBITDA lease Adj (%) -50,7 -373,6 465,2
Short-term debt 39 39 39
Accounts payable 0 0 0
Other current liabilities 82 82 82
Total liabilities and equity 308 278 271
Net IB debt 21 73 91
Net IB debt excl. pension debt 21 73 91
Capital invested 200 185 179
Working capital -34 -34 -34
EV breakdown 2020 2021 2022
Market cap. diluted (m) 274 244 244
Net IB debt Adj 21 73 91
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity 0 0 0
EV 295 316 335
Capital efficiency (%) 2020 2021 2022
Total assets turnover (%) 78,4 97,4 131,3
Capital invested turnover (%) 125,3 146 187,5
Capital employed turnover (%) 100,5 135,6 181
Inventories / sales (%) 0 0 0
Customer advances / sales (%) 1,1 0 0
Payables / sales (%) 0,6 0 0
Working capital / sales (%) -11,2 -11,8 -9,3
Financial risk and debt service 2020 2021 2022
Net debt / equity (%) 11,6 64,2 103,8
Net debt / market cap (%) 5,4 30,9 38,7
Equity ratio (%) 58,1 40,8 32,3
Net IB debt adj. / equity (%) 11,6 64,2 103,8
Current ratio (%) 61,1 48,5 49
EBITDA / net interest (%) -1387,3 0 0
Net IB debt / EBITDA (%) -50,7 -373,6 465,2
Interest cover (%) -2643,8 0 0
SEKm 2020 2021e 2022e
Lease adj. FCF yield (%) -68,2 -20,6 -7,9
Shares outstanding adj. 100 106 106
Fully diluted shares Adj 104 110 110
EPS -0,81 -0,55 -0,22
Dividend per share Adj 0 0 0
EPS Adj -0,81 -0,6 -0,23
BVPS 1,79 1,07 0,83
BVPS Adj -0,23 -0,67 -0,83
Net IB debt / share 0,2 0,7 0,9
Share price 3,84 2,22 2,22
Market cap. (m) 385 235 235
Valuation 2020 2021 2022
P/E -3,3 -4 -10,3
EV/sales 1,82 1,11 0,93
EV/EBITDA -7,2 -16,3 17,1
EV/EBITA -3,8 -4,8 -13,2
EV/EBIT -3,8 -4,8 -13,2
Dividend yield (%) 0 0 0
FCF yield (%) -68,2 -20,6 -7,9
P/BVPS 1,47 2,08 2,68
P/BVPS Adj -11,29 -3,3 -2,68
P/E Adj -3,3 -3,7 -9,6
EV/EBITDA Adj -7,2 -16,3 17,1
EV/EBITA Adj -3,8 -4,8 -13,2
EV/EBIT Adj -3,8 -4,8 -13,2
EV/cap. employed 1,3 1,6 1,8
Investment ratios 2020 2021 2022
Capex / sales 18,8 10,8 10,8
Capex / depreciation 82,4 66,4 86,5
Capex tangibles / tangible fixed assets 5,3 6,6 7,8
Capex intangibles / definite intangibles 128,3 137,8 130
Depreciation on intangibles / definite intangibles 164,5 224,2 162,3
Depreciation on tangibles / tangibles 0 0 0

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Bublar Group - Company presentation with CEO Maria Grimaldi & Founder Magnus Granqvist (in Swedish)

Main shareholders - Bublar Group

Main shareholders Share capital % Voting shares % Verified
Lars Johan Karlsson 9.8 % 9.8 % 31 Mar 2021
Nogatolp AB 5.3 % 5.3 % 31 Mar 2021
Avanza Pension 3.7 % 3.7 % 31 Mar 2021
Connecting Capital Ventures 3.4 % 3.4 % 31 Mar 2021
Peter Levin 2.8 % 2.8 % 31 Mar 2021
Magnus Granqvist 2.5 % 2.5 % 31 Dec 2020
Kenneth Häggmark 2.4 % 2.4 % 31 Mar 2021
Per-Anders Wärn 2.0 % 2.0 % 31 Mar 2021
Anders Björkedal 1.9 % 1.9 % 31 Mar 2021
Noah Clason Diop 1.8 % 1.8 % 31 Mar 2021
Source: Holdings by Modular Finance AB