Forever Entertainment Sa · NEWCONNECT:FOR
Forever Entertainment Sa — Investor Presentation (January 2023)
21 slides from Forever Entertainment Sa's investor presentation, Jan 13, 2023
Slide 1: Presentation for Investors
PRESENTATION FOR INVESTORS Gdynia, 13th of January 2023
Slide 2: Leading position on Nintendo Switch
LEADING POSITION ON NINTENDO SWITCH PLN 41MLN OF REVENUES +68% CAGR5 years MORE THAN 200 PEOPLE EMPLOYED IN FE GROUP FRONT MISSION REMAKE TRILOGY FROM SQUARE ENIX FE BRAND REPOSITIONING
Slide 3: Forever Entertainment 2017-3Q.2022
FOREVER ENTERTAINMENT 2017-3Q.2022 Revenues THE HOUSE ters OF THE DEAD: quar LTM results quarterly [PLN mln] EBITDA ing REMAKE (SEGA) pcom premiere on NS u Net Profit, adj. * 41,0 PANZER DRAGOON: GREEN HELL 36,8 FRONT MISSION 1st: REMAKE (SEGA) premiere on NS REMAKE premiere on NS (SQUARE ENIX) prem
Slide 4: Nintendo Switch console sales
NINTENDO SWITCH [mln sztuk] SOON # 3 159 PlayStation 2 154 Nintendo DS 117 PlayStation 4 114 104 NINTENDO SWITCH CONSOLE SALES yearly (YTD) * 80 cumulative ** 52 32 27 24 20 15 17 15 11 * by calendar year ** Life-Time data till 3Q2022 17Q4 18Q4 19Q4 20Q4 21Q4 22Q3 Sources: www.nintendo.co.jp, www.vg
Slide 5: Nintendo Switch vs. Next Gens
NINTENDO SWITCH VS. NEXT GENS SALES OF NS CONSOLES VS. NEXT GENS CONSOLES 113 [million pieces] 102 PS5 15% 77 Total Xbox X|S 11% 154 mln pieces 24 17 17 11 4 3 Nintendo Switch 74% 2020 2021 2022 PS5 Xbox X|S Nintendo Switch Sources: www.vgchartz.com, own calculations
Slide 6: Nintendo Switch vs. PC
NINTENDO SWITCH VS. PC NINTENDO PLATFORM STEAM (VALVE) EPIC GAMES SWITCH * Number of consoles / registered 111,1 mln 667,7 mln (2020) >180 mln accounts 120 mln (2020) 56 mln (2020) Number of monthly active users 26 mln (2020) ** 132 mln (2021) 58 mln (2022) 63 mln (2020) Number of daily active users
Slide 7: FESA at Nintendo's Shows
FESA AT NINTENDO’S SHOWS EVENT DATE TITLE PRESENTATION 26.03.2020 Panzer Dragoon: Remake „shadow drop” premiere 14.04.2021 THE HOUSE OF THE DEAD: Remake trailer 15.12.2021 Baby Storm trailer FRONT MISSION 1st: Remake trailer 09.02.2022 FRONT MISSION 2: Remake production announcement gameplay and FRO
Slide 8: The Games Portfolio
FESA THE GAMES PORTFOLIO SIGNED CONTRACTS TILL 06.2022 GAMES ON SALE AT 06.2022 REVENUES 2020-2022.06 14,8% 5,5% 20,1% 1,4% 23,8% Contracts signed for 6,0% Number of premieres Revenue value 184 titles 142 titles PLN 69.3 mln 73,9% 83,8% 70,7% Own titles & Co-productions Remakes Porting & Publishing
Slide 9: Revenue 2017-2022.Q3
FESA REVENUE 2017-2022.Q3 20 000 17 926 [PLN ths.] 18 000 16 000 STAGE IV increase in quarterly revenues r/r 14 000 11 823 - remake games premieres - premierer of ported titles 12 000 - own games 8 241 8 538 10 000 STAGE II 7 663 7 483 revenues up to PLN 8 mln, quarterly - The first remake game rele
Slide 10: Annual Revenue 2017-2022
FESA ANNUAL REVENUE 2017-2022* 45,0 45,0 [PLN mln] 41,0 40,0 40,0 35,0 35,0 35,9 30,0 27,3 30,0 8% 25,8 R +6 25,0 C AG 25,0 25,2 23,0 20,0 20,0 13,7 95 % 15,0 AG R 15,0 9,8 C 10,0 11,6 10,0 5,0 3,1 6,8 5,0 - 1,3 - 2017 2018 2019 2020 2021 2022.Q3 LTM Change in the balance of products 1,8 3,0 2,1 2,1
Slide 11: Annual Costs 2017-2022
FESA ANNUAL COSTS 2017-2022* 40,0 40,0 [PLN mln] 33,6 35,0 35,0 30,0 30,0 6,5 25,1 25,0 25,0 19,8 20,0 5,6 20,0 3,7 15,0 15,0 10,8 25,8 10,0 6,8 18,0 10,0 2,7 14,8 5,0 3,8 5,0 2,2 6,4 1,5 3,2 - 0,6 - 2017 2018 2019 2020 2021 2022.Q3 LTM Other costs 1,5 1,1 0,7 0,3 0,3 0,6 A&D 0,2 0,2 1,0 1,1 1,2 0,8
Slide 12: FE Group Employment
FE GROUP EMPLOYMENT* 250 [number of persons] 214 EMPLOYMENT STRUCTURE IN FE GROUP 200 49 Other companies 164 Other Forever companies Entertainment Storm Trident 150 23% 36% 31 MegaPixel Studio Forever Entertainment FE GROUP 98 214 persons 56 at the end of 2022 100 82 Storm Trident 15% 52 50 28 78 60
Slide 13: FE Group Group Schema
FE GROUP GROUP SCHEMA DOMESTIC COMPANIES FOREIGN COMAPNIES GAMES DEVELOPERS JOINT VENTURE INVESTMENTS 38,70% 20,00% 36,96% 45,22% 45,00% 100,00% 49,00% 10,00% TA MEGAPIXEL STORM FEARFUL FOREVER PUBLISHING RAINY FROG UF GAMES ENTERTAIN. SEED FUND (JAPAN) STUDIO TRIDENT (FRANCE) w. Ultimate Games COOP
Slide 14: FE Group Gamedev Teams in Poland
FE GROUP GAMEDEV TEAMS IN POLAND GDYNIA GDAŃSK WARSZAWA WROCŁAW KRAKÓW planned for 2023 KATOWICE Source: Company
Slide 15: FE Group Front Mission Trilogy
FE GROUP FRONT MISSION TRILOGY MegaPixel Studio Storm TBA Trident Forever 2023 U P E GRO Entertainment H IN F FESA BENEFITS 2022 Q4 N WIT R AT IO § increase in the number of fans of the Trilogy E § another Trilogy title increases sales of the previous one COO P in the series § A trilogy has a longer
Slide 16: Release Plan of Remake Games
FESA RELEASE PLAN OF REMAKE GAMES FOREVER MEGAPIXEL STORM TA TITLE PREMIERE ENTERTAINMENT* STUDIO TRIDENT PUBLISHING Panzer Dragoon: Remake 2020.03 developer THE HOUSE OF THE DEAD: Remake 2022.04 developer FRONT MISSION 1st: Remake 2022.11 developer FRONT MISSION 2: Remake 2023 developer Fear Effect
Slide 17: Newzoo Nintendo in 2025
NEWZOO NINTENDO IN 2025 „As you can see in the chart below, we expect to see significant console growth in 2025, marking year five of the current console generation and assuming that Nintendo will release a successor to its Switch console. The success of the Switch OLED model and the ongoing popular
Slide 18: President, CFO and IR Contact
ZBIGNIEW DĘBICKI PRESIDENT - FOREVER ENTERTAINMENT S.A. PIOTR WOŹNIAK CFO - FOREVER ENTERTAINMENT S.A. IR CONTACT: JOANNA PRUŚ - JOANNA.PRUS@FOREVER-ENTERTAINMENT.COM PIOTR WOŹNIAK - PWOZNIAK@ZENIT.COM.PL
Slide 19: Disclaimer
DISCLAIMER This presentation has been prepared by Forever Entertainment S.A. (“FESA” or “Company”) for its shareholders, analysts, and other contractors. This presentation has been prepared solely for information and is not an offer to buy or sell or a solicitation of an offer to buy or sell any sec
Slide 20: Key Metrics
FESA KEY METRICS COMPANY INFORMATION ANNUAL RESULTS IN YEARS 2017 – 2022.Q3 (LTM) FOREVER ENTERTAINMENT S.A. VIDEO GAMES - sector FOREVEREN - abbreviation [PLN mln] FOR - ticker at the WSE FOR:WA - Reuters ticker 41,0 NCIndex - index at NewConnect market x 13,2 2,50% - share of FOR in the NCIndex [N
Slide 21: Market Metrics
FESA MARKET METRICS MARKET DATA QUOTES 12.11.2020 - 12.11.2021 10,0 [ PLN] 5.50 closing price on 11.01.2023 [PLN] 4.26 | 7.12 min (22.06.24) | max (22.04.04) 52 weeks [PLN] 27,200 number of outstanding shares [ths. shares] 8,0 15,679 Free-Float [ths. shares] 149,600 Market Cap. [PLN ths.] 86,232 Fre
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