Slide 1: Embracer Group Interim Report Q2 FY 2024/25
Q2 FY 2024/25 EMBRACER GROUP INTERIM REPORT JULY – SEPTEMBER 2024
Slide 2: Disclaimer
Q2 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: Q2 FY 2024/25 Highlights
HIGHLIGHTS FROM Q2 Q2 Interim Report FY 2024/25 Q2 FY 2024/25 Highlights Net Sales Group YOY GROWTH Asmodee showed solid earnings growth SEK 8,552m -21% YoY, softer quarter for our other segments ORGANIC GROWTH PRO FORMA GROWTH -14% -14% For PC/Console, we now expect lower earnings this year partly
Slide 4: Operating segments
1. Operating segments
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 4,500 50% 2,500 ADJ. EBIT 4,000 45% 175 3,500 40% 2,000 NET SALES 3,000 34% 2,121 35% 30% 1,500 2,500 25% 2,000 20% 1,000 1,500 16% 15% 1,000 500 8% 10% 500 5% 0 0% 0 Q2 Q
Slide 6: Project ROI (Contribution / Investment)
PC/Console Games PROJECT ROI (CONTRIBUTION/INVESTMENT) DETAILS >1450 Average title project data: Sales SEK 276 million, • Based on reported numbers until Contribution SEK 194 million and September 30, 2024 Investment SEK 93 million 12 • Sample includes projects with sales SEK 25.9 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 4.1x 1,600 1,671 1,690 3.6x 3.2x 3.3x 1,400 3.1x 1,405 2.8x 1,200 2.6x 1,120 1,000 2.1x 2.1x 1.9x 1.9x 1.8x 800 1.5x 1.6x 817 600 1.1x 0.8x 400 455 0.6x 200 0.1x 0 -0.4x Q2 Q3
Slide 8: Over 120 game development projects in the pipeline
PC/Console Games Over 120 game development projects in the pipeline CONSOLE Q3 Q4 Q4 TBA Aspyr Deep Silver | PLAION Aspyr Coffee Stain Publishing Crystal Dynamics Warhorse Studios Crystal Dynamics Coffee Stain Studios | Fishlabs TBA TBA TBA TBA THQ Nordic Tripwire Arc Games THQ Nordic Alkimia Intera
Slide 9: Mobile Games
Mobile Games NET SALES SEK million & ADJUSTED EBIT MARGIN DAILY ACTIVE USERS & MONTHLY ACTIVE USERS NET SALES DRIVERS 2,000 100% 350 million ADJ. EBIT 100 374 90% 90 300 300 80% 80 1,500 250 1,471 70% 1,441 70 1,358 253 Sudoku.com Blockudoku Jigsaw Puzzle 200 60% 60 1,000 50% 214 50 150 36 40% 40 28
Slide 10: Today's speaker
EMBRACER GROUP INTERIM REPORT Q2 FY 2024/25 Today’s speaker THOMAS KŒGLER CEO
Slide 11: Tabletop Games
Tabletop Games NET SALES SEK million & ADJUSTED EBIT MARGIN STRONG PIPELINE 5,000 ADJ. EBIT 50% 4,500 695 45% 4,000 40% 4,070 3,500 3,826 35% 3,000 3,247 30% AFTER THE QUARTER AFTER THE QUARTER 2,500 25% 2,000 18% 20% 1,500 16% NEW RELEASES 14% 15% 1,000 10% 500 5% 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY
Slide 12: Entertainment & Services
Entertainment & Services NET SALES SEK million & ADJUSTED EBIT MARGIN 3,000 27% 2,500 22% 2,000 ADJ. EBIT 16% 29 17% 1,500 12% 1,381 1,000 1,247 7% 500 784 1% 2% 2% 0 -3% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY 22/23 FY 23/24 FY 24/25 Net Sales Adjusted EBIT Margin, % Adjusted EBIT Operative Groups: 3 | Inter
Slide 13: Financial performance
2. Financial performance
Slide 14: Financial development
FINANCIAL PERFORMANCE | Q2 Financial development NET SALES & GROSS MARGIN DEVELOPMENT | SEK million DEVELOPMENT OF MARKETING EXPENSES | SEK million 14,000 160% 1,400 40% 12,000 1,200 140% 523 35% 10,000 431 120% 10,831 1,000 30% 9,569 100% 8,000 25% 800 295 8,552 80% 20% 6,000 66% 600 63% 59% 13% 60
Slide 15: Cash flow and net debt
FINANCIAL PERFORMANCE | Q2 Cash flow and net debt FY24/25 FY23/24 FY 24/25 FY 23/24 Sept. 30, Sept. 30, SEKm SEKm Q2 Q2 Q2 TTM Q2 TTM 2024 2023 Adjusted EBITDA 2,055 2,923 9,681 10,563 Cash 4,052 5,520 Cash Tax -416 -243 -1,004 -991 Current investments - 2 Other items -317 -310 -1,406 -846 Current l
Slide 16: Easybrain Divestment
3. Easybrain Divestment
Slide 17: Transaction highlights – Easybrain Divestment
EMBRACER GROUP DIVESTS EASYBRAIN TO MINICLIP FOR A CONSIDERATION OF USD 1.2 BILLION Transaction highlights – Easybrain Divestment Key components The buyer is Miniclip Purchase price on a cash and debt free basis amounts to USD 1.2 billion (SEK 12.9 billion) to be paid in cash at closing Expect
Slide 18: Transaction highlights – Easybrain Divestment
EMBRACER GROUP DIVESTS EASYBRAIN TO MINICLIP FOR A CONSIDERATION OF USD 1.2 BILLION Transaction highlights – Easybrain Divestment Strategic rationale Financial impact Transforms Embracer’s financial position with Embracer net debt transforms: stronger position to drive value SEK -13.2 bn SEK -0.
Slide 19: Q&A
Q&A Until ~10:00 CET
Slide 20: Appendix
- ‘ . | 4 Appendix | 4 4, io Ww . q a
Slide 21: Net debt and earnout post divestment of Easybrain
FINANCIAL PERFORMANCE | Q2 Net debt and earnout post divestment of Easybrain Net debt bridge Earnout obligation (cash – pro forma) Net debt bridge SEK, billion SEK, billion Reported Net debt 30/9-2024 13.2 “Coffee Stain & Friends 2” 0.8 Estimated cash inflow from divestment of Easybrain (12.7) “Midd
Slide 22: Pro forma financials excluding Easybrain
FINANCIAL PERFORMANCE | Q2 Pro forma financials excluding Easybrain Asmodee “Coffee Stain & Friends3” “Middle-earth & Friends3” Embracer Group1 SEK, billion (TTM) FY FY Q2 FY FY FY Q2 FY FY FY Q2 FY FY FY Q2 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 13.1 14
Slide 23: Embracer Group
EMBRACER* GROUP