11 Bit Studios Sa · GPW:11B
11 Bit Studios Sa — Yearly Investors Conference 2022
50 slides from 11 Bit Studios Sa's conference presentation, June 2022
Slide 1: Yearly Investors Conference 2022
bit studios YEARLY INVESTORS CONFERENCE 2022 ; Eos
Slide 2: Promise, Facts, Reveals, Future
PROMISE FACTS | REVEALS | FUTURE LET’S GO! Mp
Slide 3: Promise: Long Term Strategy
PROMISE long term strategy LEADERS OF MEANINGFUL ENTERTAINMENT creating increasingly bigger project toward meaningful aaa broadening and growing expenditure and portfolio through xdev long term brands building creating a group of interconnected dev teams maintaining strong & unique identity
Slide 4: Selected Financial Data
SELECTED FINANCIAL DATA 2020 2021 2021 VS 2020 REVENUES ee 87101774 70122691 =————S~S*«CS 0% TOTAL OPERATING EXPENSES (46 635065) (40347514) -13% OPERATING PROFIT 40 791 867 30 031 002 -26% PROFIT BEFORE TAX 40 651 821 31 834 464 -22% NET PROFIT 37 363 131 28 685 582 -23% EBITDA ? 51 057 081 38 9511
Slide 5: Selected Financial Data
SELECTED FINANCIAL DATA OPERATING MARGIN NET MARGIN EBITDA MARGIN m= OPERATING MARGIN == NET MARGIN m= EBITDA MARGIN 80% 56% 60% Sor . 43% 40% . a Le ae 20% 18% 0% 2017 ~ 2018 2019 2020 2021 Mp
Slide 6: Selected Financial Data
SELECTED FINANCIAL DATA - CASH AND CASH EQUIVALENTS (PLN M) CAPEX ON GAMES (PLN M) 125,00 40,0 CAGR=40% ‘ CAGR=45% 100,00 30,0 75,00 ‘ 20,0 50,00 : 10,0 i ae & 0,00 oR 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Mp
Slide 7: Employee Motivation Program
EMPLOYEE MOTIVATION PROGRAM - PROGRAM’S 2021 Ql 2022 CURRENTLY GOALS 2021-2025 FULFILLED CUMULATIVE 656 000 000 70122691 17745 553 13% REVENUE CUMULATIVE 328 000 000 31 834 464 5 351 957 11% GROSS PROFIT Mp
Slide 8: Product Lifecycle Management
PRODUCT LIFECYCLE MANAGEMENT WE HAVE GREAT PORTFOLIO AND WE KNOW HOW TO MONETIZE IT EACH DAY WE HAVE A SALE SOMEWHERE IN THE WORLD
Slide 9: Sales Channels Diversification
SALES CHANNELS DIVERSIFICATION 43 PARTNERS AROUND THE WORLD STEAM CONTRIBUTION IN TOTAL REVENUE OVER THE YEARS: 2021 - 43% 2020 - 58% 2019 - 52% 2018 - 73%
Slide 10: Deals with Biggest Partners
DEALS WITH BIGGEST PARTNERS - NO STONE UNTURNED, NO DEAL MISSED WE PROVED TO BE AGILE PARTNER WITH GREAT CONTENT amazon © STADIA “(@NGAMEPASS <P PlayStation. Mp
Slide 11: Long Term Monetization
LONG TERM MONETIZATION FOR SOME DEVS 2 YEARS OLD GAME IS FINISHED. FOR US IT’S ONLY THE BEGINNING. REVENUE DISTRIBUTION OVER THE FIRST 4 YEARS
Slide 12: Internal Dev
INTERNAL DEV EACH WITH WE ARE 3 DISTINCT CHALLENGES VALUED FOR IDEA DRIVEN UNIQUENESS PROJECTS AND GROWTH
Slide 13: Internal Dev: Growth
internal dev | GROWTH OF TEAMS OF PROFICIENCY OF EXPERTISE 3 GAME TEAMS + UNREAL TECH BACK CATALOGUE R&D PROGRAMS IN ALL TEAMS LAUNCHED VARIED GENRES ~145 DEVELOPERS AND COUNTING
Slide 14: Kuba S.
KUBA S.
Slide 15: Kuba S.
KUBA S.
Slide 16: Internal Dev: Our Strategy P8
internal dev | OUR STRATEGY P8
Slide 17: Team at ~65 Devs & Growing
TEAM AT ~65 DEVS & GROWING TACKLED TECH & ORGANISATION CHALLENGES FIRST EXTERNAL FOCUS TESTING Q4 2021 PROMISING RESULTS CURRENT MILESTONE CLOSING END OF JUNE ON TRACK WITH ROADMAP
Slide 18: Revealed 8/2021, Wishlists 3x Bigger Than Frostpunk
REVEALED 8/2021 WISHLISTS 3X BIGGER THAN FROSTPUNK ON DAY BEFORE RELEASE #8 MOST WISHLISTED ON STEAM BIG EXPECTATIONS - WE’RE BUILDING A BRAND (WE’LL COME BACK TO THIS)
Slide 19: P8 Team at ~45 Developers
P8 TEAM AT ~45 DEVELOPERS RECENT INTERNAL FEEDBACK ROUND REVEALED KEY CHALLENGES THAT HAVE TO BE ADDRESSED
Slide 20: P8 Challenging Topic, Roadmap Delayed
P8 CHALLENGING TOPIC. MORE THAN ANTICIPATED. ROADMAP DELAYED WE DON’T COMPROMISE ON HOW WE MAKE GAMES THE TEAM IS HARD AT WORK ON A KEY MILESTONE FOR Q3 2022 HAS TO PROVE THE MOST DIFFICULT AREAS IN THE GAME VISION
Slide 21: Team at ~35 Devs and Growing
TEAM AT ~35 DEVS AND GROWING FIRST TO APPLY INTERNAL R&D PROGRAMME BUILDING CAPABILITIES IN ADVANCED FACIAL FX LAYING FOUNDATIONS FOR OUR LONG TERM AAA-ALT STRATEGY MILESTONE CLOSED Q1 2022 TO VERY GOOD INTERNAL FEEDBACK CURRENT MILESTONE AIMING FOR Q3/Q42022 ROADMAP ON TRACK
Slide 22: Global Reveal June
GLOBAL REVEAL JUNE 127 ROERS
Slide 23: Meaningful Game, Idea Driven, Unique Concept
MEANINGFUL GAME IDEA DRIVEN UNIQUE CONCEPT
Slide 24: The Alters
TOMEK K. The Alters GAME ABOUT LIFE CHANGING MOMENTS DECISIONS THAT INFLUENCE OUR ENTIRE LIFE AND THE UNDERLYING QUESTION: ‘WHAT IF?’
Slide 25: PC Gaming Show: Great Reception from the Media
PC GAMING SHOW over 500 000 views GREAT RECEPTION FROM THE MEDIA
Slide 26: YouTube The Alters Comments
“This game intrigued me more than Starfield, no sh*t.” “This looks amazing, 11 bit studios moving up in the world!” “Well that's a hell of a trailer. I look forward to hearing more about this project!” “All my alternate versions are waiting for this game!” “This is such a creative idea. I really want
Slide 27: Slide 27
Slide 28: Our First Brand: Frostpunk
our first brand | FROSTPUNK PHYSICAL GAMES | MOBILE | BOOKS | SERIES 10 YEAR COMMITMENT
Slide 29: Building Brands: Philosophy
building brands | PHILOSOPHY BUILD BRANDS LIKE WE BUILD GAMES: PROJECTS HAVE TO BE MEANINGFUL TAKE WHAT’S UNIQUE ABOUT THE IP WE’VE BUILT SAY WORTHWHILE THINGS USING STRENGTHS OF A SPECIFIC MEDIUM
Slide 30: xDEV
xDEV 5 ANNOUNCED TITLES IN DEVELOPMENT: ○ 2 REVEALED PROJECTS - SOUTH OF THE CIRCLE, THE INVINCIBLE. ○ 3 UNREVEALED PROJECTS CODENAMED - AVA, BOTIN, VITRIOL. AIMING TO SIGN TWO MORE TITLES IN 2022. ON TRACK TO REACHING A STEADY FLOW OF 3 PUBLISHED GAMES YEARLY BY 2025.
Slide 31: Growing Project Size
GROWING PROJECT SIZE - 80M PLN 65M PLN 45MPLN 40M PLN ‘ TIM PLN THE TOTAL COST THE TOTAL COST THE ESTIMATED TOTAL THE ESTIMATED TOTAL THE ESTIMATED TOTAL OF DEVELOPING OF DEVELOPING COST OF THE TWO NEW COST OF THREE TITLES COST OF THREE TITLES AND MARKETING 3RD PARTY ANDMARKETING PROJECT TITLES WE'R
Slide 32: xDEV Project Evaluation Funnel (H1 2022)
4 . . XDEV PROJECT EVALUATION FUNNEL (H1 2022) ~ PROJECTS THAT REACHED OUR EYES ‘ PROJECTS THAT PASSED THE INITIAL SELECTION ‘= PROJECTS THAT MADE IT TO THE EXTENDED EVALUATION PROJECT SIGNED Mp
Slide 33: Slide 33
Slide 34: Fool's Theory
FOOL’S THEORY INDEPENDENT GAME DEVELOPMENT STUDIO FOUNDED IN BIELSKO-BIAŁA IN POLAND. 65 DEVELOPERS IN ALL TEAMS. JAKUB ROKOSZ, KRZYSZTOF MĄKA AND 11 BIT STUDIOS ARE SHAREHOLDERS. CORE DEVELOPERS WITH SIGNIFICANT ROLES ON SEVERAL MAJOR POLISH TITLES LIKE: THE WITCHER 2: ASSASSINS OF KINGS, ANCIENT S
Slide 35: Project "Vitriol"
PROJECT “VITRIOL” GENRE: RPG MAIN GOAL: TO PRESENT TO PLAYERS A MATURE, MEANINGFUL AND VIBRANT STORY. ENGINE: UNREAL ENGINE 4 PLATFORMS: PC | (CONSOLE PORTS POSSIBLE IN CLOSE FUTURE). PREMIERE: TBA THIS SUMMER.
Slide 36: Starward Industries
CX m/ STARWARD INDUSTRIES
Slide 37: Starward Industries
STARWARD INDUSTRIES INDEPENDENT GAME DEVELOPMENT STUDIO FOUNDED IN 2018 IN POLAND. 25 DEVELOPERS AND 35 PEOPLE IN ALL TEAMS. CORE DEVELOPERS WITH SIGNIFICANT ROLES ON SEVERAL MAJOR POLISH TITLES. LISTED ON NEW CONNECT (WARSAW STOCK EXCHANGE). FIRST GAME IN DEVELOPMENT: THE INVINCIBLE. OUR GOAL FOR T
Slide 38: The Invincible
THE INVINCIBLE NARRATIVE SINGLE PLAYER ADVENTURE GAME, SCI-FI THRILLER, RETRO-FUTURISTIC ATOMPUNK ART STYLE. AN ADAPTATION OF STANISLAW LEM’S NOVEL “THE INVINICIBLE”. MAIN GOAL: FOR THE GAME IS TO CREATE A FUTURE REFERENCE FOR NARRATIVE GAMES ENGINE: UNREAL ENGINE PLATFORMS: PLAYSTATION 5 | XBOX SER
Slide 39: We Are a Group Already
we are a GROUP already HUGE MILESTONE FOR 11 BIT STUDIOS | FOOL’S THEORY | STARWARD INDUSTRIES
Slide 40: Minority Approach
minority approach FOOL’S THEORY STARWARD INDUSTRIES 40% 5% OWNERSHIP IN CREATIVITY & DECISION MAKING AS PARADIGM
Slide 41: Investment Amplifies Relations
investment amplifies relations WE CARE AND SHARE EVEN MORE & WE HAVE ONE GOAL - GROWTH AND FUTURE OF OUR CONNECTED COMPANIES
Slide 42: Quite a Lot Is Happening
quite a lot is happening HOW WE MANAGE IT?
Slide 43: 1. Team
1. team HARD AT WORK TO BUILD & SUPPORT BEST POSSIBLE TEAM REVEALED SALARY SCALES INDUSTRY PIONEERS IN POLAND | NO EXCEPTIONS | TRANSPARENCY | TRUST HYBRID WORK MODEL INTRODUCTIONS STARED APRIL 1ST | TAKING CARE OF “I” & “WE” MAINTAINING PURCHASING POWER INCREASED SALARY BUDGET BY NOVEMBER 2021 INFL
Slide 44: 2. Identity
2. identity STRENGTHENING OUR UNIQUE 4 ELEMENTS PROPOSITION AWESOME TEAM WITH VALUES COMPETITIVE SALARIES MAKING GAMES & MISSION MISSION NOT ONLY IN GAMES BUT ALSO IN ACTIONS STRONG STAND AGAINST RUSSIA’S INVASION ON UKRAINE REACTION IN FIRST DAY OF WAR PS - THIS WAR OF MINE AS SCHOOL READINGS STILL
Slide 45: Summing It Up
summing it up PROMISE > FACTS & REVELATIONS > FUTURE
Slide 46: Future, Now, Directions
cross media next establish next complement brands ed brand Frostpunk antholo ary "keiretsu" specialised 2 group gy connection s new board planned game initiatives Fool's Frostpunk Theory Starward mobile 1 Industries game brands group FUTURE strong NOW second 11 plus bit studios 2 more +50 mln DIRECT
Slide 47: Is It Valid?
is it valid? LET’S HEAR OUR PLAYERS
Slide 48: We Are Growing While Keeping Our ID
“I'm glad the studio keeps making varied and creative games. This War of Mine is one of the most emotionally impactful video games I've ever played, and Frostpunk is an excellent twist on the city builder formula. “Beginning to become fond of 11 bit studios. Reminds me of the days how Ubisoft use to
Slide 49: We, the Team, Are So Focused on Delivering It
and we, the team are so focused on delivering it! BIG THANKS TO EVERY 11 BIT STUDIOS TEAM MEMBER FOR THIS COMMITMENT
Slide 50: Thank You!
THANK YOU!