Starbreeze Ab Class A · OMXSTO:STAR_A
Starbreeze Ab Class A — Q1 2021 Earnings Presentation
30 slides from Starbreeze Ab Class A's earnings presentation, May 2021
Slide 1: Starbreeze Company presentation May 2021
STARBREEZE Company presentation May, 2021 Slide / 1
Slide 2: Presentation outline
Introduction to Starbreeze Key Strategies Presentation outline The payday franchise GROUP FINANCIALS Appendix Slide / 2
Slide 3: Introduction to Starbreeze
Introduction to starbreeze Slide / 3
Slide 4: Starbreeze in brief
Office locations Starbreeze in brief ~133 Employees2) Stockholm(HQ) At a glance ~116 ▪ Independent game developer for PC- and console games ▪ Owns and fully controls the PAYDAY franchise, one of the most Luxembourg successful PC games of all times Paris − Total net sales from the PAYDAY franchise si
Slide 5: Key strategies
Key strategies Slide / 5
Slide 6: Trends in the gaming industry
Trends in the gaming industry In 2020, 91% of the revenue was made Games with Continuous Technical consolidation through digital sales a context monetization progress Source: Newzoo. New marketing Games as a service and Technical bar and ease Secure talent channels supports a keeping on releasing of
Slide 7: Starbreeze is on a mission
Starbreeze is on a mission Develop video game ip’s into entertainment PC Games +7.9.% YoY properties WITH highly engaged communities $34.2 Bn Console Games +6.8% YoY Our key target audience are hard core gamers on PC and console our games builds our Starbreeze brand recognition $45.2 Bn Service the
Slide 8: Key strategies
Key strategies financial stability while building a world class game studio ▪ PC & CONSOLE, A great partnership with Koch Media for PAYDAY 3 ▪ MOBILE, A LICENSING AGREEMENT WITH popreach FOR PAYDAY CRIME WAR Further Grow our “Games as a service” development capability ▪ development and utilisation o
Slide 9: The PAYDAY franchise – one of the most successful IPs in the world
The PAYDAY franchise – one of the most successful IPs in the world Slide / 9
Slide 10: The PAYDAY franchise
The PAYDAY FRANCHISE Action / Co-op for PC and console PAYDAY 2 release dates August 2013 (PC) & June 2015 (Console) PAYDAY FRANCHISE IN GROSS SALES PAYDAY 1 & 2 STARBREEZE net sales >300M USD 211 161 INSTALLED BASE SEKm 156 >28,000,000 140 120 98 109 111 DLCS AND UPDATES >190 15 31 27 STEAM COMMUNI
Slide 11: PAYDAY 2 - Revenue and KPI development
PAYDAY 2 - Revenue and KPI development PAYDAY 2 – Peak CCU per month (OCT 2018-2021) 70 000 60 000 Grew +700,000 Steam community 50 000 members fall-2019 40 000 30 000 20 000 10 000 96% positive steam reviews 0 rating 30 days post content release PAYDAY 2 Base game vs DLC split PD2 Steam launch to d
Slide 12: Strong foundation for a successful launch of PAYDAY 3
Strong foundation for a successful launch of PAYDAY 3 A strong franshise built over eight years Launch of PAYDAY 3 Large Installedbase Strong Reviews Well established Multiple platforms Games as a service >28,000,000 88/100 Community Simultaneous launch on PC A game designed around content 7,200,000
Slide 13: PAYDAY 3 – Living the Heist fantasy
PAYDAY 3 – Living the Heist fantasy ▪ ▪ Development started in October 2019 Using the Unreal game engine Legendary Outlaws ▪ Estimated release date 2023 ▪ Co – publishing with Koch media Urban Mayhem ▪ IP developed and owned by Starbreeze ▪ GAAS MODEL = AddING new content long after the release Exec
Slide 14: PAYDAY 3 – co-publishing
PAYDAY 3 – co-publishing The future challenges with Koch Media – the perfect partner publishings games includes being able to reach a global market and at a publisher with a long track record and a the same time be local and close to worldwide distribution network the specific communities. Full set
Slide 15: Summary Q1 2021
Summary Q1 2021 Q1 - A great start of 2021 ▪ Co-Publishing deal PAYday 3 PAYDAY 2 sales demonstrate the power of PAYDAY IP and ▪ Licensing deal Payday crime war its community - a stable foundation for PAYDAY 3’s launch in the coming years. ▪ Increasingly High demand for payday 2 Beneficial co-publis
Slide 16: Group Financials
Group FINANCIALS Slide / 16
Slide 17: Revenue development - growth in PAYDAY
Revenue development - growth In payday Revenue development Commentary Annual QUARTER ▪ Net sales in Q1’21 totaled to SEK 27.9m, compared to SEK 22.0m in Q1’20. The PAYDAY franchise accounted for SEK SEKm 28% 39% 94% 99% 96% 26.9m, compared to 21.7m in Q1’20. 98m 109m 111m 22m 28m ▪ PAYDAY growth in
Slide 18: Operating expenses
Operating expenses Cost base development Commentary SEKm NOTE 2018 2019 2020 Q1’20 Q1’21 A▪ Direct costs for Q1’21 amounted to SEK 11.6 million, compared to SEK 9.5m in Q1’20, and consist of costs related Direct costs A -1,733.9 -661.5 -31.1 -9.5 -11.6 to game production and game development. The in
Slide 19: Balance sheet
Balance sheet Balance sheet as per March 31, 2020 Balance sheet as per March 31, 2021 Commentary SEKm Assets held for Liabilities held Assets sales 637.6 637.6 for sales 712.6 712.6 Current assets 37,9 ▪ Intangible assets primarily consists of IP rights (SEK 221.4m), Current assets 49,4 Current capi
Slide 20: Appendix
APPENDIX Slide / 20
Slide 21: Managed by an experienced new team
MANAGED BY An EXPERIENCED NEW TEAm Overview of the management team TOBIAS SJÖGREN MATS JUHL Acting CEO since 2020 CFO since May 2020 Born: 1975 Born: 1973 Education: Eexc-MBA at MGruppen Education: Masters Degree in Finance, Lunds University Principal occupation: Active in the video games industry s
Slide 22: Board of directors
Board of directors Overview of the Board of directors TORGNY HELLSTRÖM JAN BENJAMINSON Chairman of the board since 2019 Director since 2019 Born: 1958 Born: 1958 Education: LL.M Stockholm University. Executive education Thunderbird (University of Phoenix) Education: Degree of Master of Science in Bu
Slide 23: Ownership and share price development
Ownership and share price development Major shareholders (As per APR 30, 2020) Nasdaq Stockholm Share price development, B-shares Shareholder STAR A STAR B Holding, % Votes, % 20 140 000 000 DIGITAL BROS S.P.A 18 61,758,625 24,890,329 11.96 28.59 120 000 000 SWEDBANK ROBUR 1) 20,360,306 86,655,786 1
Slide 24: PAYDAY 2 Since Launch – Active releases
PAYDAY 2 Since Launch – Active releases PAYDAY 2 - Net Sales per Month KUSD Release PAID 14 000 PD2 Free to Play / 8 FREE Yakuza Character Summer sale / Biker million copies given Summer sale / Big Pack Pack away Bank release Resumed development, 12 000 new cosmetic “suit Summer sale / Ultimate syst
Slide 25: Overview of global Gaming market
Overview of global Gaming market Large and growing addressable games market Size and growth of game market USDbn ▪ Global sales estimated to USD 159bn in 2020 CAGR: 10% ▪ Expected annual growth (CAGR) of 9,3% year on year 196 201 165 178 ▪ Market expected to generate sales of USD 201bn by 2023E 139
Slide 26: Consolidated income statement
Consolidated income statement KSEK 2019 2020 Q1’20 Q1’21 Net sales 280,002 118,006 22,037 27,923 Direct costs -661,52 -31,074 -9,508 -11,590 Gross profit (-loss) -381,52 86,932 12,529 16,333 Selling and marketing costs -12,048 -8,464 -2,019 -2,386 Administrative expenses -109,61 -69,428 -19,541 -10,
Slide 27: Balance sheet
Balance sheet KSEK 2020 2021 KSEK 2020 2021 31/03/20 31/03/21 31/03/20 31/03/21 ASSETS Non-current assets EQUITY AND LIABILITIES Intangible assets Equity attributable to owners of the parent Goodwill 46,816 41,092 Share capital 7,246 14,492 Other intangible assets 236,998 221,446 Capitalized develop
Slide 28: Consolidated statement of cash flows
Consolidated statement of cash flows KSEK 2019 2020 Q1’20 Q1’21 Operating activities Cash flow from operations -504 362 10 875 6 514 8 119 Adjustments for non-cash items 586 897 37 053 -4 072 11 107 Interest paid -9 301 -385 - - Interest received - - - - Income taxes paid - - - -994 Cash flow from (
Slide 29: Typical development process
Game development process and scalability Example Game design stage Pre-production Production Release -> LIVE SERVICE Typical DEVELOPMENT Definition of scope of the game Ramp up and full team size Live operations team size process Feature set definition Build out feature set Continued developement Te
Slide 30: Starbreeze in the value chain
Starbreeze in the value chain IP Developers Publishing DISTRIBUTORS ▪ Develop and produce games ▪ Finance all or part of development ▪ Own distribution channels or the platforms on which the games are ▪ May wholly or partially own the ▪ Control and quality assure played development project or be dev