Embracer Group Ab Class B · OMXSTO:EMBRAC_B
Embracer Group Ab Class B — Q1 2024 Earnings Presentation
27 slides from Embracer Group Ab Class B's earnings presentation, Aug 17, 2023
Slide 1: Embracer Group Interim Report April–June 2024
Q1 FY 2024/25 EMBRACER GROUP INTERIM REPORT APRIL – JUNE 2024
Slide 2: Disclaimer
Q1 FY 2024/25 Disclaimer IMPORTANT INFORMATION – PLEASE READ THE FOLLOWING BEFORE CONTINUING READING express or implied, is made by the Company or any of its affiliates, directors, advisors, employees and representatives as to the accuracy, completeness or verification of any information contained i
Slide 3: Q1 FY 2024/25 Highlights
HIGHLIGHTS FROM Q1 Q1 Interim Report FY 2024/25 Q1 FY 2024/25 Highlights Net Sales Group YOY GROWTH FY 2024/25 started in line with SEK 7,933m -24% management expectations Adjusted EBIT YOY GROWTH Significantly improved cash flow SEK 828m -51% and lowered net debt Free cash flow Q1 FY 2023/24 Growin
Slide 4: Operating segments
Operatihg segments \ y,
Slide 5: PC/Console Games
PC/Console Games NET SALES REVENUE SPLIT SEK million & ADJUSTED EBIT MARGIN BACK CATALOG SALES | SEK million TOP 10 BACK CATALOG 5,000 ADJ. EBIT 40% 2,500 138 35% 4,000 NET SALES 2,000 2,656 30% 26% 3,000 25% 21% 1,500 1,665 20% 1,589 1,450 2,000 15% 1,000 10% 1,000 5% 5% 500 0 0% Q1 Q2 Q3 Q4 Q1 Q2
Slide 6: Project ROI (Contribution / Investment)
PC/Console Games PROJECT ROI (CONTRIBUTION/INVESTMENT) DETAILS >14.0 50 Average title project data: • Based on reported numbers until June Sales SEK 275 million, 30, 2024 Contribution SEK 192 million and Investment SEK 92 million • Sample includes projects with sales 12.0 SEK 25.0 bn and/or investme
Slide 7: Investments and completed game development
PC/Console Games Investments and completed game development INVESTMENTS AND COMPLETED GAME DEVELOPMENT* | SEK million 1,800 4.0x 1,671 1,693 1,672 1,690 1,600 1,633 3.5x 3.3x 3.2x 1,492 1,400 1,405 1,382 3.0x 2.8x 1,200 2.5x 1,114 1,120 1,000 2.0x 2.1x 1.9x 929 2.0x 1.9x 800 803 780 718 1.5x 600 1.3
Slide 8: Solid pipeline for FY 2024/25
PC/Console Games Solid pipeline for FY 2024/25 Deep Silver | PLAION THQ Nordic Arc Games Milestone Warhorse Studios Purple Lamp Heart Machine Milestone THQ Nordic Tripwire Coffee Stain Publishing THQ Nordic Alkimia Interactive Tripwire Coffee Stain Studios Grimlore Games Source: as of June 30, 2024
Slide 9: Mobile Games
Mobile Games NET SALES SEK million & ADJUSTED EBIT MARGIN DAILY ACTIVE USERS & MONTHLY ACTIVE USERS NET SALES DRIVERS 2,000 350 million 100 70% ADJ. EBIT 90 518 300 60% 307 312 80 1,500 250 1,488 70 1,438 1,389 Sudoku.com Blockudoku Alien Invasion 50% 200 60 1,000 209 37% 40% 50 150 29% 36 36 30% 40
Slide 10: Today's speaker
EMBRACER GROUP INTERIM REPORT Q1 FY 2024-25 Today’s speaker THOMAS KŒGLER DEPUTY COO
Slide 11: Tabletop Games
Tabletop Games NET SALES SEK million & ADJUSTED EBIT MARGIN STRONG PIPELINE 4,500 50% 4,000 ADJ. EBIT 45% 3,500 248 40% 3,000 35% 3,184 3,039 30% 2,500 2,665 25% 2,000 20% 1,500 17% 15% NEW RELEASES 1,000 10% 8% 500 6% 5% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY 22/23 FY 23/24 FY 24/25 Net Sales Adjusted
Slide 12: Entertainment & Services
Entertainment & Services NET SALES SEK million & ADJUSTED EBIT MARGIN 3,000 18% 15% 16% 16% 2,500 14% 12% 12% 2,000 10% 8% 1,832 8% 1,500 ADJ. EBIT -21 6% 4% 1,000 4% 4% 3% 2% 1% 848 500 671 0% -2% -2% 0 -4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY 22/23 FY 23/24 FY 24/25 Net Sales Adjusted EBIT Margin, % Adju
Slide 13: Market update
Market update GLOBAL VIDEO GAMES MARKET REVENUE FORECAST GLOBAL MARKET USD billion Forecast PC1 expected to grow by 2% +4% 207 in 2024 199 193 184 188 179 183 Mobile1 expected to grow by COVID PEAK 144 +3% in 2024 Console1 expected to decline by -1% in 2024 Tabletop2 grew by 2019 2020 2021 2022 2023
Slide 14: Financial performance
wat Pi Financial performance
Slide 15: Financial development
FINANCIAL PERFORMANCE | Q1 Financial development GROSS MARGIN DEVELOPMENT | SEK million DEVELOPMENT OF MARKETING EXPENSES | SEK million 14,000 100% 1,400 40% 12,000 1,200 95% 35% 90% 10,000 1,000 221 30% 10,450 85% 444 25% 8,000 800 80% 7,933 75% 258 20% 6,000 7,118 600 70% 16% 15% 4,000 65% 64% 65%
Slide 16: Cash flow and net debt
FINANCIAL PERFORMANCE | Q1 Cash flow and net debt FY24/25 FY23/24 FY 24/25 FY 23/24 June 30, June 30, SEKm SEKm Q1 Q1 Q1 TTM Q1 TTM 2024 2023 Adjusted EBITDA 1,869 2,697 10,549 10,696 Cash 3,221 3,952 Cash Tax -83 -229 -831 -951 Current investments - 17 Other items -354 -319 -1,399 -698 Current liab
Slide 17: Pro forma financials
FINANCIAL PERFORMANCE | Q1 Pro forma financials Asmodee “Coffee Stain & Friends3” “Middle-earth & Friends3” Embracer Group1 SEK, billion (TTM) FY FY Q1 FY FY FY Q1 FY FY FY Q1 FY FY FY Q1 FY 22/23 23/24 24/25 22/23 23/24 24/25 22/23 23/24 24/25 22/23 23/24 24/25 Net sales 13.4 14.8 14.6 10.5 10.7 10
Slide 18: Net debt and earnout
FINANCIAL PERFORMANCE | Q1 Net debt and earnout Pro forma Net debt Earnout obligation (cash) Pro forma Net debt SEK, billion SEK, billion Pro forma Net debt 30/6-2024 14.3 “Coffee Stain & Friends2” 1.0 Estimated cash inflow from divestments (2.1) “Middle-earth & Friends2” 1.9 Estimated pro forma Net
Slide 19: Update for the spin-off processes
3. Update for the spin-off processes
Slide 20: Spin-off processes proceed according to plan
STATUS UPDATE ON SPIN-OFFS Spin-off processes proceed according to plan Reminder Unlocking value in the high-quality assets of Embracer Group, enabling each entity to better of rationale focus on their core strategies and to drive long-term value creation EMBRACER GROUP ”MIDDLE-EARTH & FRIENDS1” I
Slide 21: Q&A
Q&A Until ~10:00 CEST
Slide 22: Appendix
5. Appendix
Slide 23: Asmodee Group
PRO FORMA FINANCIALS | Q1 FY 2024/25 Asmodee Group Asmodee Group FY 2023/24 FY 2024/25 SEK, billion Q1 Q2 Q3 Q4 Q1 TTM Net sales 3.2 4.1 4.4 3.1 3.0 14.6 Adjusted EBITDA 0.3 0.8 0.9 0.5 0.3 2.4 Adjusted EBIT 0.2 0.7 0.8 0.4 0.2 2.1 Capex -0.1 -0.1 -0.1 -0.1 -0.1 -0.3 EBITDAC1 0.2 0.7 0.8 0.4 0.3 2.2
Slide 24: "Coffee Stain & Friends"
PRO FORMA FINANCIALS | Q1 FY 2024/25 “Coffee Stain & Friends” “Coffee Stain & Friends” FY 2023/24 FY 2024/25 SEK, billion Q1 Q2 Q3 Q4 Q1 TTM Net sales 2.4 3.0 2.8 2.5 2.4 10.7 Adjusted EBITDA 0.9 1.3 1.2 1.1 1.1 4.7 Adjusted EBIT 0.6 0.9 0.9 0.7 0.6 3.1 Capex -0.6 -0.5 -0.4 -0.4 -0.4 -1.8 EBITDAC1 0
Slide 25: "Middle-earth & Friends"
PRO FORMA FINANCIALS | Q1 FY 2024/25 “Middle-earth & Friends” “Middle-earth Enterprises & Friends” FY 2023/24 FY 2024/25 SEK, billion Q1 Q2 Q3 Q4 Q1 TTM Net sales 4.2 3.1 4.2 2.7 2.1 12.1 Adjusted EBITDA 1.6 0.9 1.2 0.9 0.5 3.5 Adjusted EBIT 1.0 0.4 0.7 0.4 0.1 1.5 Capex -0.8 -0.7 -0.6 -0.6 -0.6 -2.
Slide 26: Embracer Group
PRO FORMA FINANCIALS | Q1 FY 2024/25 Embracer Group1 Embracer Group1 FY 2023/24 FY 2024/25 SEK, billion Q1 Q2 Q3 Q4 Q1 TTM Net sales 9.8 10.2 11.4 8.3 7.6 37.4 Adjusted EBITDA 2.7 2.9 3.3 2.5 1.9 10.5 Adjusted EBIT 1.7 1.9 2.3 1.5 0.8 6.5 Capex -1.4 -1.3 -1.1 -1.1 -1.0 -4.6 EBITDAC1 1.2 1.6 2.2 1.4
Slide 27: Embracer Group
EMBRACER* GROUP