11 Bit Studios Sa · GPW:11B
11 Bit Studios Sa — Investor Conference 2021
92 slides from 11 Bit Studios Sa's conference presentation, June 2021
Slide 1: Investor Conference 2021
bit seudias INVESTOR. CONFERENCE 2021
Slide 2: How do we reinforce who we are?
ARE HERE BECAUSE WE RECENTLY neces DO scELUES A VERY IMPORTANT QUESTION HOW DO WE REINFORCE WHO WE ARE? Abit
Slide 3: Partner testimonial from Xbox Gaming Content Partnerships
11 bit studios is one of the most special companies in the games industry. The company includes some of the most talented developers in the world at combining deep emitional themes alongside meaningful and thought provoking gameplay. One of the things that makes 1] bit studios unique is both develop
Slide 4: We have our product identity
WE HAVE OUR PRODUCT IDENTITY MEANINGFUL KNOWLEDGE AND SENSITIVITY
Slide 5: We have our product identity
WE HAVE OUR PRODUCT IDENTITY MEANINGFUL DEVELOPMENT KNOWLEDGE DRIVEN BY AND IDEA SENSITIVITY
Slide 6: We have our product identity
MEANINGFUL KNOWLEDGE AND SENSITIVITY DEVELOPMENT DRIVEN BY IDEA WE HAVE OUR PRODUCT IDENTITY CRAFTSMANSHIP AND UNIQUENESS OF EMERGENT NARRATIVE Mp
Slide 7: We have our product identity
MEANINGFUL KNOWLEDGE AND SENSITIVITY DEVELOPMENT DRIVEN BY IDEA WE HAVE OUR PRODUCT IDENTITY GROWING GAMING COMMUNITY LOOKING FORWARD TO OUR GAMES CRAFTSMANSHIP AND UNIQUENESS OF EMERGENT NARRATIVE Mp
Slide 8: Mp
Mp
Slide 9: We have our corporate identity
WE HAVE OUR CORPORATE IDENTITY COMPLETE STRUCTURES AND DEPARTMENTS
Slide 10: We have our corporate identity
WE HAVE OUR CORPORATE IDENTITY COMPLETE STRUCTURES FINANCIAL AND DECISION-MAKING INDEPENDENCE AND DEPARTMENTS
Slide 11: We have our corporate identity
WE HAVE OUR CORPORATE IDENTITY COMPLETE STRUCTURES FINANCIAL AND A GREAT TEAM AND DECISION-MAKING WE CARE INDEPENDENCE DEPARTMENTS ABOUT Mp
Slide 12: We have our corporate identity
WE HAVE OUR CORPORATE IDENTITY COMPLETE STRUCTURES FINANCIAL AND A GREAT TEAM AND DECISION-MAKING WE CARE INDEPENDENCE CULTURE AND IDENTITY DEPARTMENTS ABOUT Mp
Slide 13: We have our corporate identity
WE HAVE OUR CORPORATE IDENTITY SOMEr rue FINANCIAL AND A GREAT TEAM GROWING STRUCTURES INANCIAL : eae . DECISION-MAKING WE CARE CUT UIs ae MANAGERIAL INDEPENDENCE IDENTITY AWARENESS DEPARTMENTS ABOUT Mp
Slide 14: Management Board
MANAGEMENT BOARD BIZDEV MARKETING DEV TEAM 1 am MCU URE ES _— STRATEGY & INNOVATION ADMINISTRATION
Slide 15: We deliver record results
y WE DELIVER RECORD RESULTS Ab
Slide 16: Selected financial data
SELECTED FINANCIAL DATA PERIOD PERIOD ENDED ENDED DEC 31 2020 DEC 31 2019 CHANGE REVENUE PLN 87.1M REVENUE _— 87,101,774 71,221,248 +22% UP yaa FROM ON UP 6.1% FROM 2018 TOTAL OPERATING EXPENSES (46,635,065) (45,794,927) +2% OPERATING PROFIT OPERATING PROFIT 40,791,867 25,887,955 +58% Pp L N 40.8 M
Slide 17: Revenue and operating profit
REVENUE (PLNM) OPERATING PROFIT (PLNM) cAacR=27% CAGR=27% _ — 46,9 87,1 82,1 40,8 71,2 25,9 15,5 26,2 19,2 7,6 | = 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 OWNED IP PUBLISHING ACTIVITY a a bit studios
Slide 18: Cash and cash equivalents; capex on games
CASH AND CASH EQUIVALENTS (PLNM) CAPEX ON GAMES (PLNM) GR=26% GR=41% CAN CAN 94,1 82,2 2318 51,3 14,4 29,1 28,2 ges aus " ia 7 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Slide 19: We skillfully manage our portfolio
y WE SKILLFULLY MANAGE OUR PORTFOLIO Ab
Slide 20: Our activities
OUR ACTIVITIES wv) Abit MADNESS
Slide 21: Our activities
OUR ACTIVITIES STORE FREE GAME
Slide 22: Our activities
OUR ACTIVITIES FROSTPUNK DLC TWOM: FINAL CUT PS5/XBOX
Slide 23: We are a successful business
WE ARE A SUCCESSFUL BUSINESS PRODUCING GAMES WITH MEANINGFUL PLAY WITH OUR OWN IDENTITY AND CULTURE Ab
Slide 24: We evolved
WE EVOLVED WITH EACH SUBSEQUENT GAME WITH EACH SUBSEQUENT MEMBER OF OUR TEAM ORGANICALLY Ab
Slide 25: Like a plant
LIKE A PLANT Ab
Slide 26: We are ambitious
y WE ARE AMBITIOUS
Slide 27: We aspire to grow
y WE ASPIRE TO GROW
Slide 28: Growth while preserving identity
IF WE WERE TO DESCRIBE THIS BUSINESS STRATEGY IN A FEW SIMPLE WORDS IT WOULD BE GROWTH WHILE PRESERVING IDENTITY
Slide 29: We want to grow while preserving our identity
WE WANT TO GROW WHILE PRESERVING OUR IDENTITY IN ORDER TO BECOME (HE LEADER OF MEANINGFUL GAMING IN FIVE TO TEN YEARS Ab
Slide 30: We need tools and solutions to achieve this
WE NEED TOOLS AND SOLUTIONS TO ACHIEVE THIS Ab
Slide 31: DEV
DEV Ab
Slide 32: Our goal to date: three teams creating games
OUR GOAL TO DATE HAS BEEN TO RUN THREE TEAMS CREATING GAMES SIMULTANEOUSLY, DEVELOPING SCALE AND QUALITY WHILE MAINTAINING OUR !/DENTITY AND THIS IS EXACTLY WHERE WE ARE TODAY
Slide 33: Team P8 project
P8 TEAM PROJECT 8 40 PEOPLE TARGET: 70 PEOPLE NEW IP NEW GENRE TPP ACTION GAME WITH STRONG CONSOLE-FIRST NARRATIVE YES, IT |S A GREATER CHALLENGE THAN WE ANTICIPATED
Slide 34: Teams P8 and P9 projects
P8 TEAM PROJECT 8 40 PEOPLE TARGET: 70 PEOPLE NEW IP NEW GENRE TPP ACTION GAME WITH STRONG CONSOLE-FIRST NARRATIVE YES, IT |S A GREATER CHALLENGE THAN WE ANTICIPATED P9 TEAM PROJECT DOLLY 20 PEOPLE TARGET: 40 PEOPLE NEW IP KNOWN GENRE GAME DRIVEN BY A UNIQUE CONCEPT
Slide 35: Teams P8, P9 and P10 projects
P8 TEAM PROJECT 8 40 PEOPLE TARGET: 70 PEOPLE NEW IP NEW GENRE TPP ACTION GAME WITH STRONG CONSOLE-FIRST NARRATIVE YES, IT |S A GREATER CHALLENGE THAN WE ANTICIPATED P9 TEAM PROJECT DOLLY 20 PEOPLE TARGET: 40 PEOPLE NEW IP KNOWN GENRE GAME DRIVEN BY A UNIQUE CONCEPT P10 TEAM PROJECT ELEANOR 60 PEOPL
Slide 36: Milestones acceptances
MILESTONES ACCEPTANCES P8 TEAM PROJECT 8 MILESTONE PLAYTESTS MAY 2021
Slide 37: Milestones acceptances
MILESTONES ACCEPTANCES P8 TEAM PROJECT 8 MILESTONE PLAYTESTS MAY 2021 P9 TEAM PROJECT DOLLY MILESTONE PLAYTESTS MAY 2021 Ab
Slide 38: Milestones acceptances
MILESTONES ACCEPTANCES P8 TEAM PROJECT 8 MILESTONE PLAYTESTS MAY 2021 P9 TEAM PROJECT DOLLY MILESTONE PLAYTESTS MAY 2021 P10 TEAM PROJECT ELEANOR MILESTONE PLAYTESTS APRIL 2021 Ab
Slide 39: Milestones acceptances
MILESTONES ACCEPTANCES P8 TEAM PROJECT 8 MILESTONE PLAYTESTS MAY 2021 PROTOTYPE PLAYTESTS: GREENLIGHTED P9 TEAM PROJECT DOLLY MILESTONE PLAYTESTS MAY 2021 P10 TEAM PROJECT ELEANOR MILESTONE PLAYTESTS APRIL 2021 Ab
Slide 40: Milestones acceptances
MILESTONES ACCEPTANCES P8 TEAM PROJECT 8 MILESTONE PLAYTESTS MAY 2021 PROTOTYPE PLAYTESTS: GREENLIGHTED P9 P10 TEAM TEAM PROJECT DOLLY PROJECT ELEANOR MILESTONE PLAYTESTS MILESTONE PLAYTESTS MAY 2021 APRIL 2021 PROTOTYPE PLAYTESTS: GREENLIGHTED Ab
Slide 41: Milestones acceptances
MILESTONES ACCEPTANCES P8 TEAM PROJECT 8 MILESTONE PLAYTESTS MAY 2021 PROTOTYPE PLAYTESTS: GREENLIGHTED P9 TEAM PROJECT DOLLY MILESTONE PLAYTESTS MAY 2021 PROTOTYPE PLAYTESTS: GREENLIGHTED P10 TEAM PROJECT ELEANOR MILESTONE PLAYTESTS APRIL 2021 PROTOTYPE PLAYTESTS: GREENLIGHTED Mp
Slide 42: Total investment in internal dev
TOTAL INVESTMENT IN INTERNAL DEV ~PLN 110M WE WANT OUR IDEAS AND CONCEPTS TO BE MANIFESTED THROUGH SCALE AND QUALITY Ab
Slide 43: What next?
WHAT NEXT? AS A STUDIO, WE WANT TO GROW SO THAT IN TWO OR THREE STAGES WE ARE ABLE TO CREATE AAA QUALITY MEANINGFUL GAMES WHAT DOES THAT MEAN?
Slide 44: We want to make games with the scale of Control or Civilization VI
WE WANT TO MAKE GAMES With THE SCALE AND MARKET IMPACT, LIKE THAT OF CONTROL OR CIVILIZATION VI BUT WITH OUR IDENTITY
Slide 45: To do this, we must
TO DO THIS, WE MUST: DEVELOP OUR UNIQUE CRAFTSMANSHIP
Slide 46: To do this, we must
TO DO THIS, WE MUST: DEVELOP OUR EXPAND OUR UNIQUE CRAFTSMANSHIP EEN ES Ab
Slide 47: Team objectives
TEAM OBJECTIVES P8& TEAM LEADERS BLAZING THE TRAIL IN ACTION GAMES WITH MEANINGFUL NARRATIVE - ON CONSOLES DIRECTION: CONTROL’S SCALE DEVELOPING COMPETENCIES IN THE GENRE Ab
Slide 48: Team objectives
TEAM OBJECTIVES P8& TEAM LEADERS BLAZING THE TRAIL IN ACTION GAMES WITH MEANINGFUL NARRATIVE - ON CONSOLES DIRECTION: CONTROL’S SCALE DEVELOPING COMPETENCIES IN THE GENRE P9 TEAM UNIQUE IDEAS AND BUILDING ON OUR EXPERIENCE IDEA-DRIVEN GROWTH FRESH IDEAS AND CRAFTSMANSHIP DEVELOPMENT
Slide 49: Team objectives
TEAM OBJECTIVES P8& P9 ale) TEAM TEAM TEAM LEADERS BLAZING THE UNIQUE IDEAS AND CLIMATE AND EMERGENT TRAIL IN ACTION GAMES BUILDING ON OUR NARRATIVE LEADERS WITH MEANINGFUL EXPERIENCE IN STRATEGY GAMES NARRATIVE - ON CONSOLES DIRECTION: IDEA-DRIVEN DIRECTION: CONTROL’S GROWTH CIVILIZATION’S SCALE SC
Slide 50: We strengthen specialisation and competence
WE STRENGTHEN BUILDING SPECIALISATION AND COMPETENCE TO START WITH, ADDITIONAL INVESTMENT OF PLN 5M UNTIL THE END OF 2025 INTO
Slide 51: We also need top-notch tools
WE ALSO NEED TOP-NOTCH TOOLS Ab
Slide 52: Unreal Engine
y UNREAL ENGINE
Slide 53: Unreal Engine: reducing technology and process risk
UNREAL ENGINE WE REDUCE TECHNOLOGY AND PROCESS RISK OUR FOCUS IS ON GAMES, NOT TECHNOLOGY Ab
Slide 54: Unreal Engine in all internal projects
UNREAL ENGINE WE REDUCE TECHNOLOGY AND PROCESS RISK OUR FOCUS IS ON GAMES, NOT TECHNOLOGY IN ALL INTERNAL PROJECTS UNREAL ENGINE IS ALREADY USED WE HAVE BEEN EVALUATING UES FOR TWO MONTHS Ab
Slide 55: Talks with Epic Games on cooperation
UNREAL ENGINE TALKS ARE UNDERWAY WITH EPIC GAMES ON SPECIAL TERMS OF COOPERATION AT THIS POINT LIQUID ENGINE IS CLOSED, AT NO ADDITIONAL COST TO THE COMPANY Ab
Slide 56: XDEV
XDEV
Slide 57: Achievements to date
ACHIEVEMENTS TO DATE PREMIERES
Slide 58: Achievements to date
ACHIEVEMENTS TO DATE FIVE = 2 2 — CAPITAL SUCCESSFUL = 2 EXPENDITURE PREMIERES = 2 = ON COMPLETED PROJECTS Ab
Slide 59: Achievements to date
ACHIEVEMENTS TO DATE FIVE = — CAPITAL = — REVENUE SUCCESSFUL = 2 EXPENDITURE = = 2 ~— FROM XDEV PREMIERES == 2 2 ==ON COMPLETED = ~— PROJECTS PROJECTS Ab
Slide 60: Achievements to date
ACHIEVEMENTS TO DATE Bees CAPITAL = 2 — REVENUE = = ~— ROYALTIES SUCCESSFUL = 2 EXPENDITURE = = 2 ~— FROM XDEV PREMIERES == 2 2 ==ON COMPLETED = ~— PROJECTS PROJECTS
Slide 61: XDEV today
xDEV TODAY CURRENTLY
Slide 62: XDEV today
xDEV TODAY 350M BIG 3D GAMES CAPITAL CURRENTLY EXPENDITURE IN PRODUCTION ON ONGOING PROJECTS Ab
Slide 63: Future
4 FUTURE Ab
Slide 64: XDEV as the second business pillar
XDEV AS THE SECOND BUSINESS PILLAR THROUGH DISTINCTIVE IP BUILDING A PORTFOLIO BASED ON MATURE
Slide 65: XDEV as the second business pillar
XDEV AS THE SECOND BUSINESS PILLAR THROUGH DISTINCTIVE ROBUST IP GROWTH BUILDING A PORTFOLIO ACQUISITION OF LARGER s BASED ON MATURE PROJECTS AND SIGNIFICANT AND UNIQUE TITLES EXPANSION OF THE CATALOGUE
Slide 66: XDEV as the second business pillar
XDEV AS THE SECOND BUSINESS PILLAR THROUGH DISTINCTIVE ROBUST STREAMLINED IP GROWTH PROCESSES BUILDING A PORTFOLIO ACQUISITION OF LARGER EFFECTIVE HANDLING OF s BASED ON MATURE PROJECTS AND SIGNIFICANT PROJECTS OF VARIOUS SCALE AND UNIQUE TITLES EXPANSION OF THE CATALOGUE AND CHARACTER
Slide 67: Distinctive IP
DISTINCTIVE | UNIQUENESS UNIQUE SOLUTIONS AT THE CONCEPT, MECHANICS OR NARRATIVE LEVEL Ab
Slide 68: Distinctive IP
DISTINCTIVE ||P UNIQUENESS VALUE UNIQUE SOLUTIONS VALUE BEYOND AT THE CONCEPT, MECHANICS ENTERTAINMENT OR NARRATIVE LEVEL Ab
Slide 69: Distinctive IP
UNIQUENESS UNIQUE SOLUTIONS AT THE CONCEPT, MECHANICS OR NARRATIVE LEVEL DISTINCTIVE ||P VALUE VALUE BEYOND ENTERTAINMENT PRODUCTION VALUE UNCOMPROMISING QUALITY, DISTINCTIVE CHARACTER, STRONG TECHNOLOGICAL FOUNDATIONS
Slide 70: Distinctive IP
UNIQUE SOLUTIONS AT THE CONCEPT, MECHANICS OR NARRATIVE LEVEL DISTINCTIVE ||P VALUE VALUE BEYOND ENTERTAINMENT PRODUCTION VALUE UNCOMPROMISING QUALITY, DISTINCTIVE CHARACTER, STRONG TECHNOLOGICAL FOUNDATIONS GAMEPLAY PRODUCTS AIMED AT A WIDE AUDIENCE
Slide 71: Distinctive IP: elements determining market potential
DISTINCTIVE ||P PRODUCTION VALUE VALUE GAMEPLAY UNIQUE SOLUTIONS VALUE BEYOND UNCOMPROMISING PRODUCTS AIMED AT THE CONCEPT, MECHANICS ENTERTAINMENT QUALITY, DISTINCTIVE AT A WIDE AUDIENCE OR NARRATIVE LEVEL CHARACTER, STRONG TECHNOLOGICAL FOUNDATIONS ELEMENTS DETERMINING MARKET POTENTIAL
Slide 72: Strong growth 2021-2023
STRONG GROWTH 2021-2023 OBJECTIVE 6+ SUBSEQUENT GAMES IN PRODUCTION ++» TO PRESERVE PUBLISHING CONTINUITY «+. TO BOOST MARKET PRESENCE . TO DIVERSIFY RISK Ab
Slide 73: Strong growth 2021-2023
STRONG GROWTH 2021-2023 OBJECTIVE 6+ SUBSEQUENT GAMES IN PRODUCTION + TO PRESERVE PUBLISHING CONTINUITY +» TO BOOST MARKET PRESENCE «.. TO DIVERSIFY RISK OBJECTIVE 3 GAME PREMIERES EACH YEAR AS OF 2023 + TO SIGNIFICANTLY INCREASE THE QUALITY AND SCALE OF PRODUCTION ++» TO REACH A WIDER AUDIENCE +. T
Slide 74: Strong growth 2021-2023
STRONG GROWTH 2021-2023 OBJECTIVE 6+ SUBSEQUENT OBJECTIVE 3 GAME PREMIERES GAMES IN PRODUCTION EACH YEAR AS OF 2023 . TO PRESERVE PUBLISHING CONTINUITY «+» TO SIGNIFICANTLY INCREASE THE QUALITY «+. TO BOOST MARKET PRESENCE AND SCALE OF PRODUCTION . TO DIVERSIFY RISK ++» TO REACH A WIDER AUDIENCE ..
Slide 75: We increase capital expenditure by another PLN 50M
WE INCREASE CAPITAL EXPENDITURE FOR 2021-2023 BY ANOTHER PLN 50M Ab
Slide 76: We build brands
WE BUILD BRANDS Ab
Slide 77: The future of 11 bit lies in strong brands
y THE FUTURE OF 11 BIT LIES IN STRONG BRANDS Ab
Slide 78: Frostpunk: a 10-year growth plan
y FROSTPUNK: A 10-YEAR GROWTH PLAN
Slide 79: Frostpunk: the board game
FROSTPUNK: THE BOARD GAME Ab
Slide 80: Frostpunk Mobile with NetEase Games
y FROSTPUNK MOBILE WITH NETEASE GAMES Ab
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Slide 89: Slide 89
Slide 90: Frostpunk: Anthology artistic supervision by Jacek Dukaj
Slide 91: Brand management new unit
Slide 92: 11 bit family