Remedy Entertainment Oy · OMXHEX:REMEDY
Remedy Entertainment Oy — Remedy Entmt — Q1 2024 Earnings Presentation
21 slides from Remedy Entertainment Oy's earnings presentation, Apr 29, 2024
Slide 1: Business Review January–March 2024
Business Review January–March 2024 APRIL 29, 2024 © REMEDY ENTERTAINMENT 2024
Slide 2: Agenda
AGENDA © REMEDY ENTERTAINMENT 2024 1 Q1 2024 Business Review 2 Q1 Financial Results 3 Outlook 4 Questions & Answers Tero Virtala Terhi Kauppi CEO CFO
Slide 3: Q1 2024 Business Review
Q1 2024 Business Review Tero Virtala, CEO
Slide 4: Q1 2024 Highlights
Q1 2024 HIGHLIGHTS © REMEDY ENTERTAINMENT 2024 ‒ Revenue increased by 56.2% to EUR 10.8 (6.9) million ‒ EBITDA increased to EUR -1.2 (-4.9) million ‒ Operating profit was EUR –2.1 (-5.6) million, and the operating profit margin was -19.3% (-81.0%) ‒ Cash flow from operations was EUR 3.3 (-3.9) milli
Slide 5: Current Project Portfolio
CURRENT PROJECT PORTFOLIO © REMEDY ENTERTAINMENT 2024 Alan Wake Alan Wake II Condor* Control 2 Max Payne Kestrel * * Remastered 1&2 remake LAUNCHED LAUNCHED LAUNCHED FULL PRODUCTION PROOF-OF-CONCEPT PRODUCTION READINESS CONCEPT WITH WITH WITH * project codename
Slide 6: Acquiring the full rights to the Control franchise from 505 Games
ACQUIRING THE FULL RIGHTS TO THE CONTROL FRANCHISE FROM 505 GAMES © REMEDY ENTERTAINMENT 2024 ‒ Remedy’s aim is to systematically grow Control into a major gaming franchise. This aim, and actions required, were not aligned with our partner’s interest and abilities. ‒ In February 2024, we acquired al
Slide 7: Evaluating the model to succeed with a game, grow the franchise and maintain control
EVALUATING THE MODEL TO SUCCEED WITH A GAME, GROW THE FRANCHISE AND MAINTAIN © REMEDY ENTERTAINMENT 2024 CONTROL PUBLISHING CO- SELF- BY PARTNER PUBLISHING PUBLISHING
Slide 8: Remedy's Core Management Team
REMEDY’S CORE MANAGEMENT TEAM © REMEDY ENTERTAINMENT 2024 TERO VIRTALA MARKUS MÄKI SAMI JÄRVI MIKAEL KASURINEN Chief Executive Officer Chief Product Officer Creative Director Creative Director TERHI KAUPPI JOHANNES PALOHEIMO MIKA VEHKALA Chief Financial Officer Chief Commercial Officer Chief Technol
Slide 9: We evaluate and develop our business with these guiding principles
WE EVALUATE AND DEVELOP OUR BUSINESS WITH THESE GUIDING PRINCIPLES © REMEDY ENTERTAINMENT 2024 1 Increase focus and synergies 2 Make great games earning back at least double the money invested 3 Grow franchises 4 Strengthen position to maximize the franchise potential
Slide 10: Q1 Financial Results
Q1 Financial Results Terhi Kauppi, CFO
Slide 11: Q1 2024: Meaningful revenue growth driven by development fees
Q1 2024: MEANINGFUL REVENUE GROWTH DRIVEN BY THE DEVELOPMENT FEES RELATED TO MAX PAYNE 1&2 REMAKE © REMEDY ENTERTAINMENT 2024 12.7 1.0 10.8 1.8 6.9 0.5 11.6 9.0 6.4 Q1 2022 Q1 2023 Q1 2024 Royalties (EURm) Development Fees (EURm)
Slide 12: Historical Breakdown of Revenue
HISTORICAL BREAKDOWN OF REVENUE © REMEDY ENTERTAINMENT 2024 13.6 0.9 +57% 10.3 10.8 9.4 8.9 1.8 7.9 7.8 2.7 2.0 6.9 1.0 0.4 1.1 12.7 0.5 9.0 7.4 7.5 7.9 7.6 6.4 6.7 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Royalties (EURm) Development Fees (EURm)
Slide 13: Q1 2024: Improvement in profitability impacted by higher subcontracting revenues
Q1 2024: IMPROVEMENT IN PROFITABILITY IMPACTED BY HIGHER SUBCONTRACTING REVENUES © REMEDY ENTERTAINMENT 2024 2.8 21.8% -19.3% -2.1 -5.6 -81.0% Q1 2022 Q1 2023 Q1 2024 Q1 2022 Q1 2023 Q1 2024 Operating Profit (EURm) Operating Profit Margin (%)
Slide 14: Q1 2024: Significant pickup in external development
Q1 2024: SIGNIFICANT PICKUP IN EXTERNAL DEVELOPMENT TO SUPPORT MORE PROJECTS IN LATER STAGES OF DEVELOPMENT © REMEDY ENTERTAINMENT 2024 2.0 2.1 2.0 2.0 1.3 1.4 1.1 1.0 -3.8 -4.5 -4.3 -4.7 -4.6 -4.9 -4.9 -5.7 -6.9 -6.5 -6.9 -6.8 -7.5 -7.6 -7.6 -7.6 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2
Slide 15: Q1 2024: Operating cash flow clearly positive
Q1 2024: OPERATING CASH FLOW CLEARLY POSITIVE IN THE FIRST QUARTER 2024 © REMEDY ENTERTAINMENT 2024 4.7 3.3 0.1 -3.8 -3.9 -5.1 -7.0 -8.3 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2023 2023 2023 2023 2024 Operating Cash Flow (EURm)
Slide 16: Q1 2024: Cash position decrease impacted by Control franchise payment
Q1 2024: CASH POSITION DECREASE IMPACTED BY CONTROL FRANCHISE PAYMENT © REMEDY ENTERTAINMENT 2024 60.4 63.3 6.8 6.8 55.9 6.8 49.7 9.9 39.0 10.1 31.7 30.4 27.4 53.6 56.5 10.0 49.0 10.3 39.8 10.4 28.9 21.7 20.1 17.0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 2022 2022 2022 2023 2023 2023 2023 2024 Cash and Cash Equivale
Slide 17: Historical Revenue and Profitability Profile
HISTORICAL REVENUE AND PROFITABILITY PROFILE © REMEDY ENTERTAINMENT 2024 FAS IFRS 50 40 44.7 43.6 35 45 41.1 40 30 24.1 31.6 25.5 35 33.9 25 20.6 18.9 17.6 20 30 11.7 15 25 9.8 6.1 20.1 10 20 4.7 2.4 1.7 16.4 17.2 3.0 5 15.5 15 13.7 -1.3 11.9 10.8 0 10.5 10 -5 4.7 3.8 5 -10 0 -15 -19.3 -5 -20 -10 -2
Slide 18: Multi-project future with more games: balancing risk and reward
MULTI-PROJECT FUTURE WITH MORE GAMES: BALANCING RISK AND REWARD © REMEDY ENTERTAINMENT 2024 Self-publishing Co-publishing Reward possibility Own IP with a publishing partner Codename Unassigned Kestrel Partner IP Risk
Slide 19: Outlook
Outlook Tero Virtala, CEO
Slide 20: Outlook for 2024 (Unchanged)
OUTLOOK FOR 2024 (UNCHANGED) © REMEDY ENTERTAINMENT 2024 Remedy expects its revenue to increase from the previous year and operating profit to improve. The revenue growth rate and EBIT improvement are meaningfully dependent on the choice between self-publishing and/or choosing a new publishing partn
Slide 21: Contact
Contact: ir@remedygames.com investors.remedygames.com RemedyGames