Slide 1: 1H24 Results Presentation
SA eee. PlaySide’ Bf J i 3 om, g » 1H24 RESULTS PRESENTATION
Slide 2: Revenue more than double pcp with record profit and free cash flow
PlaySide’s revenue was more than double that of the pcp, with record profit and free cash flow. 2
Slide 3: First Half Highlights: Original IP revenues growing faster than Work for Hire
FIRST HALF HIGHLIGHTS ORIGINAL IP REVENUES GROWING FASTER THAN WORK FOR HIRE A$m 1H23 2H23 FY23 1H24 CHG Underlying Revenue 16.5 21.9 38.4 36.2 119% Original IP 5.6 9.4 14.9 17.7 218% Work for Hire 10.9 12.6 23.5 18.5 69% EBITDA (2.7) 0.9 (1.8) 12.2 D&A (1.4) (3.0) (4.4) (2.6) 86% EBIT (4.1) (2.1) (
Slide 4: First Half Highlights: Leverage from Original IP growth and low overheads
FIRST HALF HIGHLIGHTS LEVERAGE FROM ORIGINAL IP GROWTH AND LOW OVERHEADS A$m 1H23 2H23 FY23 1H24 Cash receipts 14.0 22.9 36.9 35.4 Operating cash flow (5.3) 3.7 (1.6) 12.8 Capitalised dev (2.4) (0.5) (2.9) (5.5) PP&E, leases (0.6) (0.6) (1.2) (1.0) Net cash flow (8.2) 2.6 (5.7) 6.3 Forex movements 0
Slide 5: Quarterly Revenue
QUARTERLY REVENUE QUARTERLY REVENUE DUMB WAYS TO DIE HAS BEEN A MEANINGFUL DRIVER IN 2023 21 15 13 10 9 6 6 5 5 4 SEPT DEC MAR JUN SEPT DEC MAR JUN SEPT DEC 21 21 22 22 22 22 23 23 23 23 Note: Figures rounded to the nearest million. Excludes $9m NFT sales across MarQ-22 and JunQ-22. 5
Slide 6: Annual Revenue
ANNUAL REVENUE ANNUAL REVENUE HIGH GROWTH RATE HAS CONTINUED IN FY24 60-65 ANNUAL COMPOUND REVENUE GROWTH 38 67% REVENUE GROWTH IMPLIED BY GUIDANCE 21 56-69% 12 5 8 Note: Rounded to nearest million. Pre-IPO figures are FY24 FY19 FY20 FY21 FY22 FY23 6 GUIDANCE
Slide 7: Capitalising on the viral success of Dumb Ways to Die
PlaySide was able to capitalise on the viral success of Dumb Ways to Die during the half, extending the brand into new platforms. 7
Slide 8: Dumb Ways to Die brand metrics and license deals
1.3M 527M 2BN 7.6M 453K SUBS VIEWS VIEWS FOLLOWERS FOLLOWERS LICENSE DEALS OWNLOADS 500M+ D VR title under Premium mobile Physical card license title under game under license license 8
Slide 9: Next growth phase with major PC/Console titles in development
PlaySide has entered its next growth phase, with several major PC/ Console titles in development. 9
Slide 10: Warner Bros. Interactive
LAUNCH TBA WARNER BROS. INTERACTIVE • Agreement signed December 2023 • PlaySide to develop two PC/Console game titles using WB IP (development of first title is underway) • Highly recognisable, premium franchise • PlaySide to pay several license payments during development and a royalty on revenue d
Slide 11: Publishing agreement with Fumi Games
LAUNCH 2025 • Publishing agreement signed with Fumi Games in December 2023 • PlaySide to provide advances progressively during the remainder of development • PlaySide responsible for publishing and marketing the title • Anticipated investment in the mid-single digit millions • PlaySide to pay Fumi G
Slide 12: Early indications
EARLY INDICATIONS • MOUSE Official Gameplay Trailer was released in December 2023 at the same time as The Game Awards • Similar viewership stats to many AAA titles announced at The Game Awards, over 25m total views across tier one gaming news channels and social media. • 1930s ‘rubber hose’ animatio
Slide 13: Dumb Ways to Die
CONSOLE LAUNCH 2025 DUMB WAYS TO DIE • Development underway on a multiplayer title using Dumb Ways to Die IP • Will be the first Dumb Ways title on PC/ Console, leveraging its multiplayer capabilities • Expected launch calendar 2025 13
Slide 14: Original IP titles with shorter development lead times
ORIGINAL IP PlaySide complements its major projects with a regular cadence of Original IP titles with shorter development lead times. 14
Slide 15: Kill Knight
A GAME FOR GAMERS KILL KNIGHT • Development on Kill Knight commenced in JuneQ23 • Original project mandate: • Small (~12) team of highly experienced developers • Continue to build the company’s reputation in PC gaming • Smaller scope/shorter development time • Trailer and dedicated Steam page expect
Slide 16: Thrive: Heavy Lies the Crown
PLAYSIDE PUBLISHING THRIVE HEAVY LIES THE CROWN • Second title signed by PlaySide Publishing • Developed by Canada-based Zugalu Entertainment • Medieval fantasy city builder - adjacent genre to PlaySide’s Age of Darkness: Final Stand • Steam page live, actively marketed on socials • Currently partic
Slide 17: Dynasty of the Sands
PLAYSIDE PUBLISHING DYNASTY OF THE SANDS • First title signed by PlaySide Publishing • Developed by UK-based Rocket Flair Studios • Ancient Egypt-inspired creative/survival city builder - adjacent genre to PlaySide’s Age of Darkness: Final Stand • Progressing through development milestones • Steam p
Slide 18: Current Projects
CURRENT PROJECTS CURRENT PROJECTS MAJOR PROJECTS OTHER ACTIVE PROJECTS 18
Slide 19: Strong operational controls as pipeline builds
PlaySide continues to Monitoring project progress through strict development milestones maintain strong operational controls Disciplined expense management across fixed overheads and hiring as its pipeline of opportunities builds. Strong processes for green lighting new projects 19
Slide 20: Outlook
LOOKING FORWARD OUTLOOK • Warner Bros IP and first game title to be announced this half • FY24 revenue guidance of $60-65m (+56-69% on pcp) ✦ Assumes no further signings • FY24 EBITDA guidance of $11-13m • Investor day to be held in the June quarter 20
Slide 21: Questions?
PlaySide” QUESTIONS?
Slide 22: Company Overview & Key Themes
APPENDIX 1 COMPANY OVERVIEW & KEY THEMES 22
Slide 23: Largest game developer and publishing studio in Australia
PlaySide is the largest game developer and publishing studio in Australia, having worked on 70+ titles since 2011 across mobile, virtual and augmented reality, and PC. 23
Slide 24: Measured approach to project investment after 2021 IPO
Shortly after IPO in Acquires the Dumb Ways to Die franchise and the licenses to develop mobile titles based on 2021, PlaySide took a Legally Blonde and The Godfather measured approach Signs contract with influencers Fresh and to project Lazarbeam to jointly develop first person investment as it sho
Slide 25: Age of Darkness: Final Stand launched October 2021
PlaySide launched real-time strategy title Age of Darkness: Final Stand in October 2021. This was the company’s first Original IP title on PC and received a ‘Very Positive’ rating by gamers on Steam. 25
Slide 26: Larger Work for Hire projects on valuable franchises
This success created opportunities to take on larger Work for Hire projects, providing end-to-end development on valuable franchises for the world’s largest gaming companies. 26
Slide 27: Publishing Division established in 2022
GAME IN DEVELOPMENT The Publishing Division was PUBLISHER AGREES TO FUND established in 2022 to REMAINDER OF DEVELOPMENT ON A MILESTONE BASIS AND TAKE THE leverage PlaySide’s game GAME TO MARKET (INCL. MARKETING SPEND) development expertise, complementing its GAME LAUNCHED internally developed IP wi
Slide 28: Dumb Ways to Die has been a highly successful IP
Dumb Ways to October 2021 February 2022 Acquired for $2.2m from Metro Trains Increased investment in social media content Die has been a December 2022 Signs license deal with Netflix Games to develop Dumb Ways to Survive highly successful January 2023 Launches Dumb Ways to Draw 2 on mobile IP for Pl
Slide 29: Next phase of growth with PC/Console titles
PlaySide’s next phase of growth involves launching several PC/Console titles with longer development lead times, both as a developer and publisher. 29
Slide 30: Historical Financials
HISTORICAL FINANCIALS A$m FY21 FY22 1H23 2H23 FY23 1H24 Underlying Revenue 10.9 20.2 16.5 21.9 38.4 36.2 Original IP 7.3 10.0 5.6 9.4 14.9 17.7 Work for Hire 3.6 10.2 10.9 12.6 23.5 18.5 EBITDA ($4.6m) (4.6) (1.7) (1.7) (2.7) 0.9 (1.8) 12.2 D&A (0.2) (1.0) (1.4) (3.0) (4.4) (2.6) EBIT (4.4) (2.7) (4
Slide 31: Current Industry Drivers
APPENDIX 2 CURRENT INDUSTRY DRIVERS 31
Slide 32: Interactive entertainment is the #1 entertainment vertical globally
Interactive entertainment is the #1 entertainment vertical globally, with an estimated 3.2 billion video game players globally. Source: Take Two Interactive JunQ23 report 32
Slide 33: Video games industry approaching US$200bn
65% THE VIDEO GAMES 32 INDUSTRY IS APPROACHING US$200BN OF AMERICANS PLAY VIDEO GAMES IS THE AVERAGE AGE OF A VIDEO FOR AT LEAST AN HOUR EACH WEEK GAME PLAYER CONSOLE PC US$56BN US$39BN US$188BN 76% +2.6% VS PCP OF US PARENTS PLAY VIDEO GAMES WITH THEIR CHILDREN MOBILE US$93BN 45% OF GAMERS ARE FEMA
Slide 34: Public Gaming Majors
QQ Hinicrosot (A) ROBLEX SONY T2 Tencent KRAFTON CAP@@)i" KONAMI SQUARE ENIX & PROJEKT © G Netéase UBISOFT SEGA EMBRACER’ @netmarble @NEXON
Slide 35: Global Listed Peers
GLOBAL LISTED PEERS RANKED BY APPROXIMATE MARKET CAP A$1bn+ A$500m - 1bn A$250 - 500m A$100 - 250m <A$100m Note: Not intended to be an exhaustive list. STRATEGIC STAKE FROM LARGER GAMING CO Figures estimated at 15 Feb 2024. 35
Slide 36: Global IPs using transmedia to add depth, breadth and reach
Global IPs are using transmedia to add depth, breadth and reach to their stories, with some of the worlds hottest properties starting as gaming IP. Note: Image is the property of Nintendo 36
Slide 37: Slide 37
Slide 38: Success of Hogwarts Legacy a milestone for non-gaming IP in 2023
The success of Hogwarts Legacy was a milestone for non-gaming IP in 2023 • Hogwarts Legacy is an action role-playing game based on the Harry Potter franchise • Developed by Avalanche Studios and published by Portkey Games (both owned by Warner Bros.) • Sold 22m+ copies (US$1bn+) making it the #1 sel
Slide 39: IP demand driving significant industry consolidation
The demand for IP continues to drive significant industry consolidation. 39
Slide 40: Recent M&A Activity
RECENT M&A ACTIVITY ACQUIRER: MICROSOFT ACQUIRER: SEGA ACQUIRER: SAVVY ACQUIRER: TAKETWO ACQUIRER: SONY TARGET: ACTIVISION BLIZZARD TARGET: ROVIO TARGET: SCOPELY TARGET: ZYNGA TARGET: BUNGIE US$69BN (OCT 2023) US$775M (AUG 2023) US$5BN (MAY 2022) US$13BN (MAY 2022) US$4BN (JULY 2022) BLIZZARD ENTERT
Slide 41: Newer Entrants
NEWER ENTRANTS EXPANDING INVESTMENT NETFLIX GAMES META REALITY LABS INVESTMENT FUND LAUNCHED IN 2021 LAUNCHED IN 2020 LAUNCHED IN 2021 86+ GAMES IN CATALOGUE ACQUIRED OCULUS VR FOR FULLY OWNED BY THE SAUDI LAUNCHED 40 GAMES IN 2023 US$2BN (2014) ARABIAN GOVERNMENT 20M+ QUEST HEADSETS SOLD US$38BN SL
Slide 42: Indie titles with smaller budgets continue to rank among top Steam sellers
Despite the investment in major IPs, indie titles with smaller development budgets continue to rank among the top sellers on Steam. 42
Slide 43: Palworld and Lethal Company as top-selling Steam games
• Survival/builder title Palworld was the #1 selling game on Steam in January 2024 • US$7m development budget • US$300m estimated revenue - sold 12m units on Steam, 7m units on Xbox/Xbox Game Pass • Second-highest concurrent players on Steam ever • Co-op survival horror title Lethal Company was the
Slide 44: Dave the Diver and Dredge
• Single player adventure sim Dave the Diver was the #1 selling game on Steam for two weeks in July 2023 • Developed and published by Nexon • Estimated development budget under US$10m • 3m unit sales - estimated revenue US$35m+ • Fishing/inventory management game Dredge launched in March 2023 • Deve
Slide 45: www.playsidestudios.com
www.playsidestudios.com