Embracer Group Ab Class B · OMXSTO:EMBRAC_B
Embracer Group Ab Class B — Merger or Acquisition (February 2020)
18 slides from Embracer Group Ab Class B's merger presentation, Feb 19, 2020
Slide 1: Embracer Group acquires Saber Interactive
Embracer Group acquires Saber Interactive Investor presentation 19 February 2020
Slide 2: Saber Interactive at a glance
Saber Interactive at a glance GLOBAL BUSINESS TRACK RECORD OF OWN/LICENSED IPs • US-based game developer • Founded by Matthew Karch (CEO) and Andrey Iones (COO) in 2001 • Entrepreneur-driven company which has grown organically from 3 to c. 600 internal developers over a 20 year period 20YRS 5 c. 600
Slide 3: The new combined group
The new combined group Internal development studios 26 5 31 External development studios 58 3 61 Number of IPs 154 91 163 Announced 44 4 48 Development projects Unannounced 52 8 60 Internal 1,237 590 1,827 Developers External 1,021 150 1,171 Revenue 2019 Jan-Dec SEK 5,541m SEK 981m3,4 SEK 6,522m4 Ad
Slide 4: Acquisition highlights
Acquisition highlights ✓ Senior management with highly experienced and efficient development teams ✓ Strong profitability with high cash conversion ✓ Additional stable and recurring revenue stream from Work-for-hire / royalty based projects ✓ Portfolio of recurring titles and a solid and growing pip
Slide 5: Transaction terms
Transaction terms TRANSACTION TERMS POST DEAL CORPORATE STRUCTURE • Asset deal • Sellers receive a combination of A and B shares, priced at SEK 78.4510 per share1 (40 day volume weighted average price up to and including 18 February 2020) • Founders become two of the largest Embracer shareholders wi
Slide 6: Experienced founders and management
Experienced founders and management Group management team MATTHEW KARCH ANDREY IONES TIM WILLITS Co-founder and CEO Co-founder and COO Chief Creative Officer +20 years +23 years +24 years industry experience industry experience industry experience Joined in Q3-2019 9 Managed Saber Interactive from a
Slide 7: A global organization in six countries
A global organization in six countries Key information Current Retention Function Growth workforce split ambitions ▪ Studio founded in 2001 ▪ Headquartered in New Jersey, USA 7% Ambition to grow the workforce 93% past 1,500 FTEs 630+ 95%+ Developers and R&D FTEs 2019 (Tech) HQ Overhead 10 FTEs Busin
Slide 8: History of Saber Interactive
History of Saber Interactive ESTABLISHES PRESENCE IN SPAIN ACQUIRES STEEL MONKEYS ACQUIRES BIGMOON FOUNDED ENTERTAINMENT TEAMED UP Start up phase Market penetration, building capabilities & expertise Leading game developer 2001 2010 2019 INITIATED WORK-FOR-HIRE COLLABORATIONS TIM WILLITS JOINS THE T
Slide 9: History of Saber Interactive
History of Saber Interactive WORK-FOR-HIRE/ ROYALTY BASED PROJECTS 15 NOVERMBER 2011 11 NOVEMBER 2014 10 JUNE 2018 15 OCTOBER 2019 2001 2010 2015 2018 2019 OWNED/ LICENSED IP 31 OCTOBER 2017 16 APRIL 2019 15 OCTOBER 2018 4 OCTOBER 2019 9
Slide 10: Own proprietary technology platforms
Own proprietary technology platforms +20 55 YEARS DEVELOPED DEDICATED TECH. FTEs Integrated with multiple online game stores Full featured cloud platform for F2P games 3D engine for game Back-end tool for live development operations Multi platform functionality Online services supporting millions of
Slide 11: World War Z game and reviews
‘‘ One of 2019’s biggest and best suprises ‘‘ DEVELOPER SABER INTERACTIVE One of the best left 4 dead-inspired PUBLISHERS games in years MAD DOG GAMES (SABER INTERACTIVE), FOCUS INTERACTIVE, KOCH MEDIA, SOLUTIONS TO GO LICENSOR PARAMOUNT PICTURES ‘‘ It’s visually stunning GENRE ACTION, THIRD-PERSON
Slide 12: Spintires: MudRunner game and reviews
DEVELOPER ‘‘ If you are a fan of non-conventional PC games, I cannot recommend Spintires: SABER INTERACTIVE MudRunner enough PUBLISHER MAD DOG GAMES (SABER INTERACTIVE) IP OWNER 9/10 Nov 2017 SABER INTERACTIVE GENRE OFF-ROAD SIMULATION ‘‘ This game is quite easily one of the finest indie titles to h
Slide 13: NBA Playgrounds 2 game and reviews
DEVELOPER ‘‘ Fun, old school gameplay with over the top action, beautiful dunks and awesome power-ups SABER INTERACTIVE 80/100 PUBLISHER Oct 2018 2K SPORTS LICENSOR NBA GENRE SPORTS, ARCADE ‘‘ NBA Playgrounds 2 is a great buy 92/100 Oct 2018 ‘‘ The core arcade gameplay remains as fun and enjoyable a
Slide 14: Upcoming off-road simulation release
CONQUER DANGEROUS TERRITORY ALONE OR WITH FRIENDS IN THIS NEXT- DEVELOPER GENERATION OFF-ROAD SABER INTERACTIVE EXPERIENCE PUBLISHER FOCUS HOME INTERACTIVE IP OWNER SABER INTERACTIVE GENRE SIMULATION RELEASE DATE 28 APRIL 2020 14
Slide 15: Strong Revenue and EBIT development driven by strategic shift to owned/licensed IPs
Strong Revenue and EBIT development driven by strategic shift to owned/licensed IPs REVENUE DEVELOPMENT 2019E revenue growth driven by shift to USDm owned/licensed IPs and success of WWZ High cash conversion No capitalization of development Applying Embracer’s accounting policies will likely have so
Slide 16: Organizational overview
Organizational overview ORGANIZATIONAL STRUCTURE Group HQ ORGANIZATION Karlstad, Sweden CEO Lars Wingefors POST ACQUISITION 9 THQ Nordic Koch Media Coffee Stain Amplifier Saber Int. Vienna, Austria Munich, Germany Skövde, Sweden Game Invest Maplewood, US SABER INTERACTIVE REMAINS Klemens Kreuzer Kle
Slide 17: Illustrative combination of the two entities
Illustrative combination of the two entities ILLUSTRATIVE COMBINED INCOME STATEMENT ILLUSTRATIVE COMBINED BALANCE SHEET • Saber Interactive financials based on preliminary December 2019 figures converted at yearly • Saber Interactive and Embracer balance sheet per 31 December 2019 average FX rates •
Slide 18: About Embracer Group
Embracer Group is the parent company of businesses developing and publishing PC and console games for the global games market. The group has an extensive catalog of over 150 owned franchises, such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplit
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