Paradox Interactive Ab · OMXSTO:PDX
Paradox Interactive Ab — Investor Presentation (January 2018)
18 slides from Paradox Interactive Ab's investor presentation, January 2018
Slide 1: Paradox Interactive: A Grand Strategy for Success and Growth
Paradox Interactive A GRAND STRATEGY FOR SUCCESS AND GROWTH
Slide 2: Publisher and Developer of games, primarily on PC
Publisher and Developer of games, primarily on PC 100 + games and 6 active brands expansions in strong 250 + employees Recognized games IP portfolio with loyal fans 6 million + Employees 47% registered gamers speak 20 + revenue CAGR globally different languages last five years 2 million 4 owned stud
Slide 3: Continued increase in revenue from established games and long history of profitable growth
Continued increase in revenue from established games and a long history of profitable growth PARADOX’S REVENUE DIVIDED INTO ESTABLISHED VS NEW GAMES, AND NET PROFIT
Slide 4: Strategy for continued growth
Strategy for continued growth Benefit from digitalization Penetrate categories Platform expansion Geographic expansion Other Strategy MOBILE - 1% LATIN AMERICA - 2% Simulation Paradox Interactive PHYSICAL - 5% Role Play Well positioned to benefit from Use strong IP and gamer Lead our fans to Use str
Slide 5: Games a 116 BUSD entertainment market globally
Games a 116 BUSD entertainment market globally WORLD DIRECT CONSUMER SPEND ON GAMES SPLIT BY PLATFORM 2017 GAMES SPLIT BY GEOGRAPHY 2017 ENTERTAINMENT 2016 LATIN AMERICA - 4% Games Industry growing faster than expected, up to 10.7% to $116 billion 2017 Source: Newzoo, IFPI, Statista
Slide 6: Publishers play a central role in bringing games to market
Publishers play a central role in bringing games to market for a large and engaged community DEVELOPERS PUBLISHERS DISTRIBUTORS PLAYERS Vast amount of developers with Strong publishers with proper Distributors rely on publishers to 1.9 B + gamers world wide. games want access to gamers but knowledge
Slide 7: Paradox' Three Corner Stones
Paradox’ Three Corner Stones PEOPLE • • PLAYERS PRODUCTS •
Slide 8: Publisher and Developer of games, primarily on PC
Publisher and Developer of games, primarily on PC MANAGEMENT / SIMULATION STRATEGY GAMES ROLE PLAYING GAMES
Slide 9: New game launches and expansions 2015
New game launches and expansions 2015 FOCUS: SEVERAL NEW GAMES LAUNCHED
Slide 10: New game launches and expansions 2016
New game launches and expansions 2016 FOCUS: INTERNAL RELEASES AND EXPANSIONS Snowfall Conclave Here be Dragons Art Deco The White March Tyranny Natural Disasters EXPANSION EXPANSION EXPANSION EXPANSION EXPANSION NEW GAME EXPANSION Stellaris Hearts of Iron IV Mare Nostrum The Reaper’s Due Rights of
Slide 11: Game launches and expansions 2017
Monks and Mystics Steel Division Mandate of Heaven Utopia Mass Transit Death or Dishonor EXPANSION NEW GAME EXPANSION EXPANSION EXPANSION EXPANSION Game launches and expansions 2017 FOCUS: EXPANSIONS AND NEW PLATFORMS Cities: Skylines - Xbox CONSOLE Tales from the Tiers Third Rome Prison Architect C
Slide 12: Publisher and Developer of games, primarily on PC
Publisher and Developer of games, primarily on PC IP PORTFOLIO = SHARE OF RELEASES DEVELOPMENT TEAM = PEOPLE* DISTRIBUTION CHANNEL Source: *Management estimate, based on 2015
Slide 13: Paradox Game Pillars
Paradox Game Pillars Replayable One does not simply “finish” a Paradox Game. System-driven games with WHAT WE ARE LOOKING FOR IN A GREAT GAME challenging sandbox environments make for unique game sessions each time you play. Intellectually Challenging Paradox games are played with your mind, not you
Slide 14: Games with highly engaged players
Games with highly engaged players USER GENERATED CONTENT PARADOX GAMES ARE VERY “STICKY” 15h 23min 14h 6min 8h 44min Europa Universalis IV Crusader Kings II Steam Average Steam workshop: 130.000 + user made items for Cities Skylines PLAYER INTERACTION STREAMS Paradox forum: 1.3 M + posts in 2017
Slide 15: Paradox Online Services
Paradox Online Services PLATFORM AGNOSTIC Player profile Multiplayer Content management Publishing tools Social Analytics Dev resources Game support
Slide 16: Key figures for the Group
Key figures for the Group STRONG MARGINS AND HIGH PROFITABILITY Q3 2017 Q3 2016 Q1-Q3 2017 Q1-Q3 2016 Revenues 180.7 MSEK 127.2 MSEK 591.4 MSEK 455.4 MSEK Operating profit 52.9 MSEK 54.6 MSEK 253.1 MSEK 222.1 MSEK Operating margin 29% 43% 43% 49% Cash flow from operations 70.3 MSEK 102.7 MSEK 295.7
Slide 17: Listed the "Paradox Way"
Listed the “Paradox Way” + — In 2016 Paradox performed a very successful IPO’s on First North and offered 15% of the company. + Through unconventional methods like a crowdfunding campaign, the primary aim was to invite employees, fans and the general public a chance to join the company’s future jour
Slide 18: Questions?
Questions?
Paradox Interactive — Investor Presentation (January 2018) on 6ix