Starbreeze Ab Class A · OMXSTO:STAR_A
Starbreeze Ab Class A — Q3 2022 Earnings Presentation
22 slides from Starbreeze Ab Class A's earnings presentation, Sep 30, 2022
Slide 1: Presentation 1 July–30 September 2022
PRESENTATION 1 JULY–30 SEPTEMBER 2022
Slide 2: Today's presenters
Today’s presenters Tobias Sjögren, CEO Mats Juhl, CFO Background: Former CEO of White Wolf Entertainment, previous Background: CFO of Mips AB (publ.), CFO of Tengbomgruppen AB, positions at Paradox Interactive, Stardoll and international video CFO of Sweden Arena Management KB (Friends Arena), Finan
Slide 3: Stepping up to the next level
• HIGHLIGHTS • STARBREEZE & STRATEGY • THE BUSINESS • FINANCIALS Stepping up … … to the next level 3
Slide 4: Highlights
HIGHLIGHTS
Slide 5: Summary Q3
HIGHLIGHTS Summary Q3 • PAYDAY 3, Development according to plan • PAYDAY 2, MAU 727k peak in Q3 • Net Revenue, double-digit growth, 38.7 MSEK • EBITDA, 24.4 MSEK in Q3 • 3rd party publishing relaunched with the game The Tribe Must Survive • Work on new own IP is ongoing. • Next game release after PD
Slide 6: Summary Q3
HIGHLIGHTS Summary Q3 • Net sales growth +12% SEKm Q3 2022 Q3 2021 R12M 2021 • PAYDAY +16% Net sales 38,666 34,703 89,288 125,689 Highest MAU during Q3 2022: 727,095 • Adj. EBITDA* increase SEK 4.5m EBITDA 24,352 19,890 40,076 6,268 • Profit before tax increase SEK EBITDA 24,352 19,890 40,076 74,940
Slide 7: Starbreeze & Strategy
. STARBREEZE & STRATEGY
Slide 8: Long-term game developer, with a big community
STARBREEZE & STRATEGY Long-term game developer, with a big community FOUNDATION FUTURE GROWTH PAYDAY is one of the strongest Maximize the PAYDAY offer brands in the games industry • Complement with other type of video • Starbreeze a leading developer in games and platforms long-term value for its ga
Slide 9: Create value beyond the gaming experience
STARBREEZE & STRATEGY Create value beyond the gaming experience The four pillars for success Developing Games as a games, IP and Service beyond A co-creating The place community to be 9
Slide 10: The Business
THE BUSINESS
Slide 11: The PAYDAY franchise
THE BUSINESS The PAYDAY franchise Co-op for PC and console PAYDAY franchise in gross sales >300m USD Installed base >36,000,000 DLCS and updates >230 Steam community members >8,500,000 11
Slide 12: PAYDAY 2 – KPI development
THE BUSINESS PAYDAY 2 – KPI development PAYDAY–Peak CCU per month PAYDAY 2–Base game vs DLC split PD2 Steam launch to date1 CCU per month % 80 000 100 4 46 55 53 78 71 67 73 76 78 70 000 96 80 60 000 50 000 60 40 000 54 40 45 47 30 000 20 000 33 20 29 27 22 24 22 10 000 0 0 2013 2014 2015 2016 2017
Slide 13: A big community creates opportunities
THE BUSINESS A big community creates opportunities A key factor in PAYDAY’s success is the involvement of players in the product, which includes maintaining a close dialogue between developers and fans Breakdown of Starbreeze’s revenues “ Since 2018, the company has established the world’s largest g
Slide 14: Strong foundation for a successful launch of PAYDAY 3
THE BUSINESS Strong foundation for a successful launch of PAYDAY 3 A strong franchise built over eight years Launch of PAYDAY 3 Large installed base Strong reviews Well established Multiple platforms Games as a service community Simultaneous launch on A game designed around >36,000,000 89/100 PC and
Slide 15: A solid foundation to deliver and grow
THE BUSINESS A solid foundation to deliver and grow Roadmap 2022 2023–2024 2025 and beyond Core focus creates ... into a broadened IP ... to become a GaaS capacity for growth ... portfolio ... leader – building games, IP and beyond. • Secure PD3 development and quality • Launch of PD3 and focus on t
Slide 16: Financials
FINANCIALS
Slide 17: Revenue development – growth in PAYDAY
FINANCIALS Revenue development – growth in PAYDAY 94% 96% 98% 90% 97% 99% 94% 93% • Net sales for Q3 32.6m 27.9m 32.0m 34.7m 31.0m 23.5m 31.8m 38.7m 2022 totaled to SEK 38.7m (34.7m) SEKm • PAYDAY growth of 60,0 +16% Q3 2022, 50,0 compared to Q3 40,0 4 2021. 2 6 3 30,0 5 • Other revenue 1 mainly rel
Slide 18: Operating expenses
FINANCIALS Operating expenses Cost base development SEKm NOTE Q3-22 Q3-21 2021 A Direct costs for Q3 22 amounted to SEK 16.0m (15.4m) and consist of costs Direct costs A 16,007 15,419 56,302 related to game production and game development. 11.5 million of direct cost relates to amortization and depr
Slide 19: EBITDA development
FINANCIALS EBITDA development SEKm 25 24 • EBITDA in Q3 2022 higher than 23 previous quarters, driven by strong 20 Steam sales and stronger US dollar 20 18 exchange rate. 17* 16 16 • Higher personnel cost, non-activated 15 personnel costs and increase in 12 royalty payments compared to 2021 is absor
Slide 20: Balance sheet
FINANCIALS Balance sheet Assets As per September 30, 2022 As per September 30, 2021 • Intangible assets amounted to Liabilities SEK 525m and consist SEKm SEKm • Non-current liabilities primarily of IP rights SEK amounted to SEK 544, Current Current 180m, capitalized costs for 56 60 including assets
Slide 21: Cashflow development
FINANCIALS Cashflow development 1.1 Operating activities SEKm YTD 2022 after changes in working capital, 48 SEK 47.7m 157 2.2 Investing activities, 129 SEK -99.6m (game 43 120 development) 3.3 Financing activities, 83 69 -100 SEK 42.6m (financing for game development 59m and financial lease -16m) Ye
Slide 22: Thank you!
- THANK YOU!