Remedy Entertainment Oy · OMXHEX:REMEDY

Remedy Entertainment Oy — H1 2023 Earnings Presentation

28 slides from Remedy Entertainment Oy's earnings presentation, Aug 11, 2023

  1. Slide 1: The webcast will begin soon

    ” it t it The webcast will begi - =—— <= ones

  2. Slide 2: Half-Year Review January–June 2023

    Half-Year Review January–June 2023 AUGUST 11, 2023 © REMEDY ENTERTAINMENT 2023 REMEDY CONFIDENTIAL

  3. Slide 3: Agenda

    © REMEDY ENTERTAINMENT 2023 AGENDA 1 Q2 2023 Review Q2 and H1 2023 Financial 2 Results 3 Outlook Tero Virtala CEO Terhi Kauppi CFO 4 Questions & Answers

  4. Slide 4: Q2 2023 Review

    Q2 2023 Review Tero Virtala, CEO

  5. Slide 5: Q2 2023 Highlights

    Q2 2023 HIGHLIGHTS REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 • Revenue decreased by 5.3% to 8.9 M€ (9.4) • EBITDA decreased to -4.1 M€ (-1.8) • Operating profit -4.8 M€ (-2.4), operating profit margin -53.8% (-25.6%) • Cash flow from operations -7.0 M€ (-8.3) • The marketing campaign for Alan

  6. Slide 6: © REMEDY ENTERTAINMENT 2023

    © REMEDY ENTERTAINMENT 2023

  7. Slide 7: Alan Wake Marketing Campaign Kicked Off in May

    ALAN WAKE 2 MARKETING CAMPAIGN KICKED OFF IN MAY REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 Alan Wake 2 gameplay reveal Alan Wake 2 "Saga" demo trailer debuted at the Other media exposure at Summer Games Fest PlayStation Showcase • The gameplay trailer was released • 35-minute live demo on Play

  8. Slide 8: Alan Wake Reception

    ALAN WAKE 2 RECEPTION REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 • The new playable co-protagonist Saga was seen as a positive and the organic engagement for the trailer was excellent. • We received positive sentiment from the demo • Alan Wake 2 was selected as the singular Most Anticipated Tit

  9. Slide 9: Current Project Portfolio

    CURRENT PROJECT PORTFOLIO © REMEDY ENTERTAINMENT 2023 Condor* Control 2 Alan Wake Alan Wake II * Max Payne * Remastered 1&2 remake LAUNCHED PROOF-OF-CONCEPT PROOF-OF-CONCEPT LAUNCHED FULL PRODUCTION PROOF-OF-CONCEPT PROOF-OF-CONCEPT WITH WITH WITH WITH * project codename

  10. Slide 10: We Continue to Grow and Invest into Our World Class Talent Pool

    WE CONTINUE TO GROW AND INVEST INTO OUR WORLD CLASS TALENT POOL REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 381 (348) A development studio Remedy talents * in Stockholm (June 30, 2023) We utilize and continue to expand external development capabilities * Defined as headcount added with people wh

  11. Slide 11: We Have Built a Strong Basis and Invest to Enable Sustainable Long-Term Growth

    WE HAVE BUILT A STRONG BASIS AND INVEST TO ENABLE SUSTAINABLE LONG-TERM GROWTH REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 2023 - 2027 REMEDY in 2022 2017 - 2021 • Ability to develop new games and live operate existing ones. • Ability to develop 5 games in • Game updates, and new parallel. game

  12. Slide 12: Q2 and H1 2023 Financial Results

    Q2 And H1 2023 Financial Results Terhi Kauppi, CFO

  13. Slide 13: Q2 2023: Small Growth in Development Fees Offset by Decline in Game Royalties

    Q2 2023: SMALL GROWTH IN DEVELOPMENT FEES OFFSET BY A DECLINE IN GAME ROYALTIES REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 9.4 9.4 8.9 2.0 1.0 3.3 7.4 7.9 6.1 Q2 2021 Q2 2022 Q2 2023 Royalties (EURm) Development Fees (EURm)

  14. Slide 14: Historical Breakdown of Revenue

    HISTORICAL BREAKDOWN OF REVENUE REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 19.8 1.5 13.6 12.7 1.1 1.0 9.4 8.9 18.3 7.9 7.4 2.0 6.9 1.0 0.4 2.0 12.6 0.5 11.6 7.4 7.5 7.9 5.4 6.4 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Royalties (EURm) Development Fees (EURm)

  15. Slide 15: Q2 2023: Current Investment Phase Was Reflected in Profitability

    Q2 2023: CURRENT INVESTMENT PHASE WAS REFLECTED IN PROFITABILITY REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 1.5 15.7% -2.4 -25.6% -4.8 -53.8% Q2 2021 Q2 2022 Q2 2023 Q2 2021 Q2 2022 Q2 2023 Operating Profit (EURm) Operating Profit Margin (%)

  16. Slide 16: H1 2023: Higher Amount of Own Investments in Game Projects

    H1 2023: HIGHER AMOUNT OF OWN INVESTMENTS IN GAME PROJECTS, LESS DEVELOPMENT FEES. REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 22.1 3.0 17.5 15.8 5.3 1.4 19.1 14.4 12.3 H1 2021 H1 2022 H1 2023 Royalties (EURm) Development Fees (EURm)

  17. Slide 17: H1 2023: Investment Stage Reflected on Profitability

    H1 2023: INVESTMENT STAGE REFLECTED ON PROFITABILITY REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 1.3 7.3% 0.4 1.6% -10.4 -65.7% H1 2021 H1 2022 H1 2023 H1 2021 H1 2022 H1 2023 Operating Profit (EURm) Operating Profit Margin (%)

  18. Slide 18: Q2 2023: Y-O-Y Increase in Personnel Costs

    Q2 2023: Y-O-Y INCREASE IN PERSONNEL COSTS TO SUPPORT A LARGER GAME PORTFOLIO REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 2.6 2.0 2.0 2.1 2.0 1.8 1.0 1.3 -2.5 -2.9 -3.6 -3.7 -4.5 -4.2 -4.9 -4.7 -6.2 -6.3 -6.6 -6.5 -6.9 -6.9 -7.5 -7.6 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 202

  19. Slide 19: Q2 2023: Strong Cash Position

    Q2 2023: STRONG CASH POSITION GIVES THE BACKBONE FOR THE CURRENT INVESTMENT PHASE WITH MORE CO-FINANCED PROJECTS REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 18.0 73.4 7.0 64.0 63.3 60.4 7.0 58.4 6.8 6.8 55.9 7.0 6.8 49.7 9.9 4.8 5.0 39.0 66.4 10.1 57.0 53.6 56.5 51.4 49.0 -2.2 39.8 -3.8 -3.9 28.

  20. Slide 20: Historical Revenue and Profitability Profile

    HISTORICAL REVENUE AND PROFITABILITY PROFILE REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 FAS IFRS 52 40% 47 44.7 43.6 9.8% 18.9% 41.1 20% 42 11.7% 6.1% 24.1% 25.5% 4.7% 20.6% 17.6% 37 31.6 0% 32 2.4% 1.7% 3.0% -1.3% 27 -20% 22 20.1 16.4 17.2 17 15.5 15.8 -40% 13.7 11.9 12 10.5 -60% 7 4.7 3.8 -65

  21. Slide 21: Multi-Project Future with More Games: Balancing Risk and Reward

    MULTI-PROJECT FUTURE WITH MORE GAMES: BALANCING RISK AND REWARD REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 Self-published Co-published Own IP with Publishing Partner Partner IP

  22. Slide 22: Multi-Project Future with More Games: Balancing Risk and Reward

    MULTI-PROJECT FUTURE WITH MORE GAMES: BALANCING RISK AND REWARD REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023

  23. Slide 23: Outlook

    Outlook Tero Virtala, CEO

  24. Slide 24: Outlook for 2023 (Unchanged)

    OUTLOOK FOR 2023 (UNCHANGED) REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 Remedy expects its revenue to decline from previous year and a negative operating result. In 2022, Remedy’s revenue totaled EUR 43.6 million and operating profit EUR –0.6 million.

  25. Slide 25: Our Long-Term Objectives (Unchanged)

    OUR LONG-TERM OBJECTIVES (UNCHANGED) REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 ‒ To create several successful games, and at least one major hit game. ‒ To own at least three expanding game brands, all with long-term hit potential. ‒ To have capabilities to select the right commercial model for

  26. Slide 26: Questions & Answers

    Questions & Answers

  27. Slide 27: Q&A Instructions

    Q&A INSTRUCTIONS REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2023 ‒ Speakers will now take questions from the investors, analysts and media representatives ‒ Web participants: type in your question

  28. Slide 28: Contact

    Contact: ir@remedygames.com investors.remedygames.com RemedyGames

Remedy Entertainment — H1 2023 Earnings Presentation on 6ix