Frontier Developments PLC · LSE:FDEV
Frontier Developments — Investor Presentation (November 2020)
25 slides from Frontier Developments's investor presentation, November 2020
Slide 1: Creating Authentic Worlds
Slide 2: Investor update November 2020
DAVID BRABEN FOUNDER AND CEO ALEX BEVIS CFO ‘STRICTLY PRIVATE AND CONFIDENTIAL, ep PLANET COASTER FRONTIER DEVELOPMENTS PLC 1 Investor update Nov'20 Investor update November 2020 ¢ Introduction: history and strategy * Roadmap * FY21: major releases ¢ Frontier Foundry * Covid-19 update * Questions i
Slide 3: Overview
OVERVIEW FRONTIER DEVELOPMENTS PLC 2 Investor update Nov'20 Our goal is to be the most respected entertainment company in the world >26 YEARS OF BUILDING A WORLD-CLASS PORTFOLIO + Consistently on time and on budget across many genres and platforms + >20 years as a trusted ‘work-for-hire’ developer +
Slide 4: Our launch and nurture strategy continue to deliver
OUR LAUNCH AND NURTURE STRATEGY CONTINUE TO DELIVER momewereripencners + We reduce risk by identifying opportunities to create genre-leading games that build on our strengths and unique track record. + Post-launch, we nurture our games for many years through community engagement and additional conte
Slide 5: Growing our portfolio
FRONTIER DEVELOPMENTS PLC 4 GROWING OUR PORTFOLIO Investor peat Nov 20 OUR FUTURE PLANS + We now have the resources to achieve two new game releases per year (on average) from FY22 from Frontier Developments + We are targeting to release five or six games per year (on average) by FY23 from Frontier
Slide 6: FY20 releases
FY20 RELEASES rrovmensevnanues (1 JUNE 2019 TO 31 MAY 2020) PLANET COASTER PLANET COASTER JURASSIC WORLD. JURASSIC WORLD JURASSIC WORLD JURASSIC WORLD ELITE DANGEROUS ELITE DANGEROUS GGHOSTBUSTERS PACK QUICK DRAW UPDATE EVOLUTION EVOLUTION EVOLUTION EVOLUTION ‘SEP’ 19 UPDATE ‘ARK VIRTUAL CURRENCY cu
Slide 7: Jurassic World Evolution: Complete Edition
JURASSIC WORLD EVOLUTION: COMPLETE EDITION omnepreraormerens b Life finds a way to Nintendo Switch ¢ Amajor audience expansion following Jurassic World Evolution's success on PC, PlayStation and Xbox from launch in June 2018 + Players can create and manage their own Jurassic World on the go, enjoyin
Slide 8: Planet Coaster: Console Edition
PLANET COASTER: CONSOLE EDITION rommcrmcars 7 The leading creative management coaster park experience comes to console * A major audience expansion following Planet Coaster’s success on PC from launch in November 2016 * Optimised controls with a new radial menu + A fully-voiced tutorial with guidanc
Slide 9: Elite Dangerous: Odyssey
FRONTIER DEVELOPMENTS PLC 8 ELITE DANGEROUS: ODYSSEY Tvestorupate 20 A major new era for the iconic space epic + Elite Dangerous's first full release was on PC in 2014, coming to Xbox in 2015 and PlayStation in 2017 * Almost 4 million base game units sold since launch * Odyssey is our most ambitious
Slide 10: Frontier Foundry - our games label for third-party publishing
O FOUNDRY - our games label for third-party publishing FRONTIER FOUNDRY: OUR GAMES LABEL FOR THIRD PARTY PUBLISHING + Expanding the Company's game portfolio + Brings improved reach and allows coverage of new genres + Expect profitability, but also chance of a break-out hit WHY FRONTIER? + Developer-
Slide 11: Covid-19 update
COVID-19 UPDATE STRICTLY PRIVATE AND CONFIDENTIAL STAY-HOME BENEFIT FOR OUR GAMES + Videogames generally, and in particular Frontier games with immersion, creativity, sharing and long play times, are engaging bigger and wider audiences and provide a low cost per hour of entertainment * Significantly
Slide 12: Current trading and outlook
CURRENT TRADING AND OUTLOOK A strong roadmap for FY21 and beyond * Sales across all our games in FY21 to date have been consistent with expectations after a strong close to FY20 * Our fantastic team continue to deal positively to the challenges posed by Covid-19; continuing to develop new content an
Slide 13: Questions
FRONTIER DEVELOPMENTS Pit Investor update Nov'20 QUESTIONS Sag @® FRONTIER® PLANET PLANET FOUNDRY COASTER zea ‘STRICTLY PRIVATE AND CONFIDENTIAL, (© 2020 FRONTIER DEVELOPMENTS PLC. ALL RIGHTS RESERVED
Slide 14: Resources
Resources FRONTIER DEVELOPMENTS PLC Investor update Nov'20 Websites Youtube channels Latest videos Gpntier https://www.frontier.co.uk/ https://www.youtube.com/c/FrontierDevelopments :/ /yout [37luv5\ https://www.elitedangerous.com, https://www.youtube.com/c/elitedangerou: https://youtu.be/3wu8oq\xUa
Slide 15: Appendix
FRONTIER DEVELOPMENTS PLC /, Investor update Nov'20 APPENDIX Sag @® FRONTIER® PLANET PLANET FOUNDRY COASTER zea ‘STRICTLY PRIVATE AND CONFIDENTIAL, (© 2020 FRONTIER DEVELOPMENTS PLC. ALL RIGHTS RESERVED
Slide 16: Growing & nurturing our internal portfolio
GROWING & NURTURING OUR INTERNAL PORTFOLIO FRONTIER’S LAUNCH AND NURTURE PORTFOLIO STRATEGY CONTINUES TO DELIVER + Frontier reduces risk by identifying opportunities to create genre-leading games that build on its strengths and unique track record. + Post-launch, Frontier nurtures its games for many
Slide 17: FY20 strategic progress - IP licences
FY20 STRATEGIC PROGRESS - IP LICENCES monies wpaatneraa 1 O Investor update Nov'20 Two major new IP licences signed + Two additional partnerships follow the success of Jurassic World Evolution with Universal, the Ghost Busters pack with Sony Pictures for Planet Coaster and a long history of working
Slide 18: Our people
FRONTIER DEVELOPMENTS Pic 77 OUR PEOPLE tea A safe, collaborative and rewarding workplace Frontier's team of amazing people are instrumental in making games that define genres, break boundaries and sell millions of copies to gamers around the world. What we offer Our stats exciting people centric pa
Slide 19: Our impact - Environmental, Social and Governance
OUR IMPACT - ENVIRONMENTAL, SOCIAL AND GOVERNANCE A responsible and considerate approach Since the founding of the company in 1994, Frontier has endeavoured to conduct business in a considerate, responsible and ethical manner. We have placed our key stakeholders - our people, our players, our partne
Slide 20: FY20 financial highlights
FY20 FINANCIAL HIGHLIGHTS mronmeserncatenevae | Another strong year ¢ Another successful launch - Planet Zoo released exclusively on PC in FY20 FYI9 (12 months to — (12 months to November 2019 and is Frontier's biggest selling game to date on PC during an 31 May 2020) 31 May 2019) equivalent time pe
Slide 21: Income statement
INCOME STATEMENT sronren oemaarMenTsmie 9) £m FY20 FYI? % change Revenue 76.1 89.7 (15%) Cost of sales (24.5) (35.0) (30%) Gross profit 51.6 54.6 (5%) GM% 68% 61% Tpp Gross R&D 24.6 20.5 20% Capitalised costs (game dev & tech) (19.8) (13.4) 48% % of gross R&D capitalised 80% 66% 14pp Amortisation (g
Slide 22: Cash flow
CASH FLOW Tomrwerirapanenorz® 2 | 80.0 70.0 169 60.0 16.6 50.0 occ 09 19 04 45.8 (21.0) o7 . — <= £m 400 (08) (1.6) 35.3 30.0 20.0 10.0 STRICTLY PRIVATE AND CONFIDENTIAL (© 2020 FRONTIER DEVELOPMENTS PLC. ALL RIGHTS RESERVED
Slide 23: Balance sheet
BALANCE SHEET FroNTERDEVELOPMENTE ME Investor update Nov'20 31 May 2020 31 May 2019 £m £m Intangible and tangible assets 58.6 42.8 Right of use asset (building lease) 22.7 - Receivables and other short term assets 12.3 5.2 Tax assets 8.6 3.3 Cash 45.8 35.3 Total assets 147.9 86.6 Payables (21.9) (10
Slide 24: Disclaimer
DISCLAIMER The information contained in this confidential document ("Presentation") has been prepared by Frontier Developments ple (the "Company". This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 ("FSMA") and
Slide 25: Creating Authentic Worlds
(Finer gz | CREATING AUTHENTIC WORLDS a
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