Starbreeze Ab Class A · OMXSTO:STAR_A
Starbreeze Ab Class A — Q1 2023 Earnings Presentation
28 slides from Starbreeze Ab Class A's earnings presentation, May 8, 2023
Slide 1: Building Community by Making Games
starbreeze.co m Building Community by Making Games Starbreeze Q1 2023
Slide 2: Today’s presenters
Today’s presenters TOBIAS SJÖGREN, CEO MATS JUHL, CFO Background: Former CEO of Background: CFO of Mips AB White Wolf Entertainment, (publ.), CFO of previous positions at Paradox Tengbomgruppen AB, CFO of Interactive, Stardoll and Sweden Arena Management KB international video game (Friends Arena),
Slide 3: Agenda
Agenda Agenda 1. Rights Issue & Transaction 2023 2. Quarter in brief 3. The PAYDAY™ franchise 4. Group financials 5. Appendix 3
Slide 4: Rights Issue & Transaction 2023
Rights Issue & Transaction 2023 Rights Issue & Transaction 2023 1 4
Slide 5: Summary of the Rights Issue and Transaction
Rights Issue & Transaction 2023 Summary of the Rights Issue and Transaction Rights Issue Transaction • SEK 300m to secure long-term growth and value creation • SEK 150m to settle refinancing charge owed to Digital Bros (nominal amount • Game production – two projects, one SEK 165m) of which started
Slide 6: A solid foundation to deliver and grow
Rights Issue & Transaction 2023 A solid foundation to deliver and grow Core focus creates …into a broadened IP ...building games, IP and capacity for growth... portfolio… beyond Secure PD3 development and • Launch of PD3 in 2023 and focus • Self-publishing, own the full quality on the foundation for
Slide 7: Focus on growth and generating value
Rights Issue & Transaction 2023 Focus on growth and generating value AAA Games (own IP, licensed IP, acquired IP) Powered by 2025 2027 The hub that connects our community with our DELIVER ON OUR IP DELIVER ON OUR SKILLS DELIVER ON OUR SKILLS games and our gamers TV, Game, Mobile, other genres Cooper
Slide 8: PAYDAY 3 Coming Soon
PAYDAY™ 3 PAYDAY™ 3 • Over 1,000,000 additions on Steam PAYDAY™ 3 Wishlist. Coming Soon • Gameplay reveal this summer. • ESRB/PEGI-rating process initiated. • Verification process to enable simultaneous launch on PC + console initiated. • Transfer strategy from PAYDAY 2 to PAYDAY 3 initiated in Apri
Slide 9: 9
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Slide 10: The quarter in brief
Quarter in brief The quarter in brief 2 10
Slide 11: Summary – Q1 2023
Introduction & 2022 recap Summary – Q1 2023 Financial • Q1 2023 revenue, 26.7 MSEK (23.5), an increase of 13.6 percent • EBITDA, 4.1 MSEK (4.6) • Depreciation, amortization and impairment totaled SEK 15.6 million (14.5) • Profit/loss before tax amounted to SEK -24.7 million (-23.8). Operational • PA
Slide 12: The PAYDAY franchise
The PAYDAY™ franchise TM The PAYDAY franchise 3 12
Slide 13: PAYDAY franchise key figures
The PAYDAYTM franchise The PAYDAY™ franchise Franchise gross sales Years of live operations >300m USD 11 Installed base Consistent CCU-rank on Steam® >38,000,000 Top-20 DLCs and updates Steam community size >240 >8,600,000 13
Slide 14: PAYDAY 2 – KPI development
The PAYDAYTM franchise PAYDAY™ 2 – KPI development PAYDAY™ – Peak CCU per month MAU development last 12 months CCU per month 1 200 000 80 000 70 000 900 000 60 000 50 000 600 000 40 000 30 000 300 000 20 000 10 000 0 0 Feb 22 Mar 22 Feb 23 Mar 23 Apr 21 Okt 21 Apr 22 Oct 22 May 21 Jul 21 May 22 Jul
Slide 15: PAYDAY 2 – KPI development
The PAYDAYTM franchise PAYDAY™ 2 – KPI development PAYDAY™ 2 – Base game vs DLC split PD2 Breakdown of Starbreeze’s revenues from Steam Steam launch to date by region % Oceania, 3% Middle East, 1% 100 North America, 47% 4 46 55 53 78 71 67 73 76 77 79 Latin America, 4% 96 Russia/CIS, 6% 80 60 Asia,
Slide 16: PAYDAY 2 – Unit sales, Steam
The PAYDAYTM franchise PAYDAY™ 2 – Unit sales, Steam® 3 000 000 3 000 000 2 500 000 2 500 000 2 000 000 2 000 000 1 500 000 1 500 000 1 000 000 1 000 000 500 000 500 000 0 0 Month 1 Month 24 Jan, 2021 Dec, 2022 Base game DLC Base game DLC 16
Slide 17: PAYDAY licenses and collaborations
The PAYDAYTM franchise PAYDAY™ 2 licenses and collaborations Goat simulator Hotline Miami The Alesso Heist Alienware Coffee Stain Alesso Scarface John Wick Point Break Lions Gate Ent. Warner Brothers Universal pictures 17
Slide 18: PAYDAY Crime War
The PAYDAYTM franchise PAYDAY™ Crime War • License agreement signed with PAYDAY™ Crime War PopReach in 2021 Popreach Corporation • We will receive tiered royalties on net sales • We retain all IP rights • Moving towards global release • Soft-launch Philippines in Q4’22 • Soft-launch Australia in Q1’
Slide 19: Strong foundation for a successful launch
The PAYDAYTM franchise Strong foundation for a successful launch 1. Franchise built over a decade 2. Driving 3. Launch of PAYDAY™ 3 transition Strong reviews to Well established A core component Multiple Games as a this day community Feature set designed to platforms service transition , engage and
Slide 20: Group financials
Group financials Group financials 4 20
Slide 21: Revenue development – growth in PAYDAY
Group financials Revenue development – growth in PAYDAY 96% 98% 90% 97% 99% 94% 93% 96% 99% 27.9m 32.0m 34.7m 31.1m 23.5m 31.8m 38.7m 33.6m 26.7m • Net sales for Q1 2023 totaled to SEK 26.7m (23.5m). SEKm 60,0 • PAYDAY growth of +13% Q1 50,0 2023, compared to Q1 2022. 40,0 3,7 • Other revenue mainly
Slide 22: EBITDA development
Group financials EBITDA development SEKm 80 74,9 • EBITDA in LTM Q1 2023 amounted to SEK 65.9m (56.9m) 70 64,6 66,4 65,9 62,7 56,9 58,2 • More activatable costs and 60 55,1 56,4* stable net sales leads to a higher 50 level of EBITDA the last quarters of 2022 and beginning of 2023 40 compared to 2021
Slide 23: EBITDA development
Group financials EBITDA development SEKm 80 • EBITDA in Q1 2023 amounted to SEK 4.1m (4.6m) 70 • Higher non-activatable personnel 60 cost and increased marketing 50 activities leads to higher costs YoY. 40 • Net Sale increase on SEK 3.2m in 30 24,3 the quarter off-sets the higher 22,6 19,9 18,1 19,3
Slide 24: Cashflow development
Group financials Cashflow development SEKm YTD 2023 1. Late payment of SEK 25m received early April, would make cash position SEK 103m 2. 1 Operating activities after changes in working capital, SEK 20.7m 2 3. Investing activities, SEK -46.8m (game development) 4. 3 Financing activities, SEK -4.2m (
Slide 25: Appendix
Appendix Appendix 5 25
Slide 26: Operating expenses
Appendix Operating expenses Cost base development SEKm NOTE Q1’23 Q1’22 2022 Direct costs for Q1’23 amounted to SEK 15.8m (14.0m) and consists of costs Direct costs A 15,791 13,965 60,527 A related to game development, depreciations of IP:n, royalty payments and non-activatable personnel expenses. T
Slide 27: Balance sheet
Appendix Balance sheet As per March 31, 2023 As per December 31, 2022 Assets SEKm SEKm • Intangible assets amounted to SEK 589m and consist primarily of IP rights SEK 173m, capitalized costs for own game Current and technology development SEK 368m and Goodwill SEK 48m Current 75 52 assets assets Cur
Slide 28: Thank you!
starbreeze.co m Thank you! 28