Remedy Entertainment Oy · OMXHEX:REMEDY
Remedy Entertainment Oy — H1 2020 Earnings Presentation
20 slides from Remedy Entertainment Oy's earnings presentation, Aug 14, 2020
Slide 1: Financial Results 14.8.2020
14.8.2020
Slide 2: Agenda
agenda 1 Half-year in review 2 Financial results 3 Summary & outlook Tero Virtala Terhi Kauppi CEO CFO
Slide 3: Half-year in review
HALF-Year in review
Slide 4: H1-2020 highlights
H1-2020 highlights • Revenue 17.0 (13.8) M€, +23%. • Operating profit 3.2 (1.5) M€, 18.6% of revenue. • Remedy signed Epic Games as the publisher for two unannounced games. • Control team released first DLC “The Foundation”, working on “AWE” DLC as well as Steam and next gen versions. • Crossfire te
Slide 5: Market has developed favorably for us
Market has developed favorably for us GLOBAL GAMES MARKET 2020 $159.3Bn PlayStation 4 Demand grows for good +9.3% YoY growth 112 million units games and studios. CONSOLES & PC Xbox One With the ongoing industry BIG 48 million units consolidation, there are SCREEN fewer independent AAA GAMES for stud
Slide 6: Control
control • Award-winning supernatural 3rd-person • Control added to PlayStation Now action-adventure game. subscription service and first expansion “The Foundation” launched in March 2020. • Originally released in August 2019 on PlayStation 4, Xbox One & PC. • Second expansion “AWE” for original plat
Slide 7: Control roadmap
CONTROL roadmap 2019 2020 2021 DLC 1 DLC 2 DELUXE SEASON PASS ULTIMATE EDITION ...and more to come…
Slide 8: Crossfire
crossfire • Crossfire is one of the world’s most • Smilegate and Microsoft are bringing the popular online first-person shooters (FPS): game to the western audience as over 650M registered and 8.5M Crossfire X on Xbox platforms. simultaneous players in 80 countries. • Includes Remedy’s campaign, whi
Slide 9: Vanguard
vanguard • The objective of Vanguard is to create a long-lasting service-based multiplayer game combined with selected Remedy features. We now have an internally playable first development version of the game. • The team has taken the first playable development version further, continuously evaluati
Slide 10: Unannounced projects
Unannounced projects • We have signed publishing agreements on • We had multiple concrete partnership the 3rd unannounced AAA project and a options. Believe that Epic Games was the smaller project with Epic Games. best for the games and Remedy. • For multiple gaming platforms. • Epic is strong in di
Slide 11: Financially, we got a third strong pillar
Financially, we got a third strong pillar 2020 Crossfire and Control revenues continue well. We added a third major pillar – and fourth smaller one. (Unannounced) WITH WITH WITH
Slide 12: Talented and motivated personnel
Talented and motivated personnel 266 full-time employees 30.6.2020 52% 21% 28 nationalities 48% year-on-year growth 69% Finnish employees recruited from outside of Finland
Slide 13: Financial results
Slide 14: Key figures
Key figures Revenue M€ Operating 17.0 (13.8) cash flow M€ 23.0% growth 1.2 EBIT M€ Cash position M€ 3.2 (1.5) 18.6% of revenue 16.8
Slide 15: Financial development
Financial development 35 35% Revenue (M€) EBIT % 31.6 30 30% 25 25% 24.1 % 20.1 20 20.6 % 20% 18.9 % 16.4 17.2 18.6 % 15.5 15 13.7 17.0 15% 11.9 10.5 11.7 % 10 9.8 % 10% 4.7 3.8 6.1 % 5 4.7 % 5% 2.4 % 3.0 % 1.7 % 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1-2020
Slide 16: Growth analysis
Growth analysis Net sales EBIT • Net sales growth driven by 19000 4000 Control revenue share and 3000 Epic publishing deals. 14000 2000 • EBIT growth affected by 9000 1000 revenue growth, capitalization and stable 4000 0 H1-2019 H1-2020 other opex. H1-2019 H1-2020 • Capitalizations increased due Cap
Slide 17: Capitalization logic
Capitalization logic Not capitalized 100% capitalized Capitalized based on future return expectations 2 unannounced projects WITH WITH SELF-FUNDED WITH
Slide 18: Summary & outlook
OUTLOOK } REMEDY @®
Slide 19: H1-2020 summary & outlook for H2-2020
H1-2020 summary & outlook for H2-2020 • We are developing four game franchises • We expect our revenue and EBIT to grow and five game projects under them. during 2020. • Control’s second expansion “AWE” and • Majority of revenue and EBIT growth is Ultimate Edition on Steam to be released estimated t
Slide 20: Thank you!
Thank you!