Starbreeze Ab Class A · OMXSTO:STAR_A
Starbreeze Ab Class A — Q2 2021 Earnings Presentation
29 slides from Starbreeze Ab Class A's earnings presentation, August 2021
Slide 1: Starbreeze Company presentation
STARBREEZE Company presentation August, 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 ~136 Employees2) Stockholm(HQ) At a glance ~122 ▪ 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: 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 7: 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 8: 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 / 8
Slide 9: 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 >35,000,000 140 120 98 109 111 DLCS AND UPDATES 58 >200 15 31 STEAM COMMUNI
Slide 10: 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 Steam community members 50 000 continues to increase 7.5 M 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
Slide 11: PAYDAY 2 – MAU and DAU
PAYDAY 2 – MAU and DAU PAYDAY 2 – highest MAU per month June 2020 – June 2021 1 200 000 1 000 000 800 000 Highest mau during q2 2021: 804 029 600 000 400 000 200 000 Highest dau during q2 2021: 159 652 0 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 PAYDAY 2 – highest DAU per month June 2020 – Ju
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 >35,000,000 88/100 Community Simultaneous launch on PC A game designed around content 7,500,000
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: Summary Q2 2021
Summary Q2 2021 Q2 2021– solid growth for payday 2 ▪ Licensing deal Payday crime war PAYDAY 2 sales demonstrate the power of PAYDAY IP and ▪ Great growth in sales for payday 2 its community - a stable foundation for PAYDAY 3’s launch in the coming years. Currency adjusted growth of 38% on ▪ Fully fu
Slide 15: Group Financials
Group FINANCIALS Slide / 15
Slide 16: Revenue development - growth in PAYDAY
Revenue development - growth In payday Revenue development Commentary Annual QUARTER ▪ Net sales in Q2’21 totaled to SEK 32.0m, compared to SEK 31.3m in Q2’20. The PAYDAY franchise accounted for SEK SEKm 28% 39% 94% 90% 98% 31.5m, compared to 28.1m in Q2’20. 98m 109m 111m 31m 32m ▪ PAYDAY growth in
Slide 17: Operating expenses
Operating expenses Cost base development Commentary A▪ Direct costs for Q2’21 amounted to SEK 14.2 million, SEKm NOTE 2020 Q1’20 Q1’21 H1’20 H1’21 compared to SEK 6.3m in Q1’20, and consist of costs related to game production and game development. The increase is Direct costs A -31.1 -6.3 -14.2 -15.
Slide 18: Balance sheet
Balance sheet Balance sheet as per JUNE 30, 2020 Balance sheet as per june 30, 2021 Commentary SEKm Assets held for Liabilities held Assets sales 634.3 634.3 for sales 627.7 627.7 Current assets 41,6 ▪ Intangible assets primarily consists of IP rights (SEK 214.2m), Current assets 54,3 Current capita
Slide 19: Appendix
APPENDIX Slide / 19
Slide 20: Managed by an experienced new team
MANAGED BY An EXPERIENCED NEW TEAm Overview of the management team TOBIAS SJÖGREN MATS JUHL 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 since 19
Slide 21: 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 22: Ownership and share price development
Ownership and share price development Major shareholders (As per JUN 30, 2021) 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 28.86 120 000 000 SWEDBANK ROBUR 1) 20,360,306 86,655,786 1
Slide 23: 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 Crimefest Summer sale / sys
Slide 24: 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 25: Consolidated income statement
Consolidated income statement KSEK 2020 Q2’20 Q2’21 H1’20 H1’21 Net sales 118,006 31,281 32,010 53,318 59,933 Direct costs -31,074 -6,281 -14,201 -15,789 -25,791 Gross profit (-loss) 86,932 25,000 17,809 37,529 34,142 Selling and marketing costs -8,464 -2,334 -2,957 -4,353 -5,343 Administrative expe
Slide 26: Balance sheet
Balance sheet KSEK 2020 2021 KSEK 2020 2021 30/06/20 30/06/21 30/06/20 30/06/21 ASSETS Non-current assets EQUITY AND LIABILITIES Intangible assets Equity attributable to owners of the parent Goodwill 43,736 40,188 Other intangible assets 233,294 214,197 Share capital 7,246 14,492 Capitalized develop
Slide 27: Consolidated statement of cash flows
Consolidated statement of cash flows SEKk 2020 Q2’20 Q2’21 H1’20 H1’21 Operating activities Cash flow from operations 10,875 4,926 -67,398 11,440 -59,279 Adjustments for non-cash items 37,053 13,250 85,350 9,178 96,457 Interest paid -385 - -3,394 - -3,394 Income taxes paid - - -852 - -1,846 Cash flo
Slide 28: 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 29: 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