Digital Bros S.p.a. · MIL:DIB
Digital Bros — Q3 FY2022 Earnings Presentation
34 slides from Digital Bros's earnings presentation, May 2022
Slide 1: May 2022
May 2022
Slide 2: 370 talented employees worldwide to create the next big games
370 talented employees worldwide to create the next big games STUDIOS: PUBLISHING: GAME ACADEMY: IP scouting and selection, Video games training and Creation and development of marketing & PR, sales and professional courses aimed at video games based on an promotions, customer support, shaping young
Slide 3: The video games market is continuously growing
The video games market is continuously growing. In 2024, it is expected to reach $218.7 billion (2019 -2024 8.7% CAGR)* NEW STUDIOS LISTING ON PREMIUM AND F2P BORSA ITALIANA DEVELOPERS ACQUISITION 2000 2015-2017 2020 - 2021 1989 2007 2019 FOUNDATION Brothers Rami and Raffi PUBLISHING FAR-EAST EXPANS
Slide 4: Premium and F2P games revenues
Premium and F2P games revenues* Death Stranding 4% 1% 0,2% 15% 12% First group: Premium 24% 27% 29% & F2P videogames 38% Control, 39% developed by internal 44% Journey to the 41% studios or with IP Savage Planet, Bloodstained ownership 39% Second group: 33% 67% 45% Premium & F2P 56% videogames with
Slide 5: Group
1 GROUP 2 GROUP 3 GROUP May 2022 5
Slide 6: To reduce the risk of unsuccess of a game, we:
To reduce the risk of unsuccess of a game, we: Work with financially independent developers Obtain a contractual way-out at prototype May 2022 6
Slide 7: Planned investment in games during the fiscal year
The Group has planned to invest more than € 50 million during the fiscal year, excluding the incremental investments in internal productions, any future M&A € mil and IP acquisition 100 90 86.7 80 70 60 50 42.6 40 30 23.7 20 14.3 10.6 8.4 10.3 10 0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Act. Act. Act. A
Slide 8: Worldwide multiplatform launch
Worldwide multiplatform launch May 2022 8
Slide 9: Eiyuden Chronicle: Rising
Single-player action RPG, prelude and prologue to the forthcoming Eiyuden Chronicle: Hundred Heroes. Many great fantasy epics are born from tales that went before them and Rising acts as that tale for Hundred Heroes. Rising’s deliberate art style pays image to the traditional telling of folklore, wh
Slide 10: May 2022
May 2022
Slide 11: Nine months EBIT at € 19.1 million, 23% of consolidated net revenues
Euro million 31.03.22 31.03.21 Change Change % Gross revenue 83.1 115.4 (32.3) -28.0% Gross operating margin (EBITDA) 31.5 45.9 (14.4) -31.2% Operating margin (EBIT) 19.1 25.0 (5.9) -23.7% Profit/(loss) before tax 22.4 28.3 (5.9) -20.7% Net profit/(loss) 15.7 20.3 (4.6) -22.5% FI S CA L YEAR ENDING
Slide 12: Premium Games vs Free to Play
4% 7% 89% Premium Games Free to Play Other May 2022 12
Slide 13: Retail vs Digital/Mobile revenues
0% 2% 14% 28% 40% 42% 49% 47% 60% 70% 90% 91% 100% 98% 86% 72% 60% 58% 51% 53% 40% 30% 10% 9% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Act. Act. Act. Act. Act. Act. Act. Act. Act. Act. Act. Act. + Fore. Retail Digital/Mobile May 2022 13
Slide 14: Digital, Retail, Buyout, Far East
3% 36% 55% 6% Digital Retail Buyout Far East May 2022 14
Slide 15: Back catalogue vs new releases
80 89 98 106 14% 40% 46% 28% 86% 60% 54% 72% FY19 Act. FY20 Act. FY21 Act. FY22 Fore. Back catalogue New releases SKUS no. May 2022 15
Slide 16: Assetto Corsa is the quarter best-selling video game
Euro million 31.03.22 31.03.21 Change Change % Gross revenue 74.3 102.8 28.5 -27.8% Net revenue 74.2 101.6 27.4 -27.0% Gross operating margin 36.2 47.3 11.2 -23.6% (EBITDA) Operating margin (EBIT) 26.0 27.9 1.9 -6.7% FI S CA L YEAR ENDING JUNE 30 th , 2022 SOURCE: DIGITAL B RO S - ASSETTO CORSA IS T
Slide 17: Revenues by geography
ROE 17% United States 34% France 3% Germany 6% UK 7% Japan 3% Canada 4% Far East Americas 9% China 4% 13% May 2022 17
Slide 18: Segment results: Puzzle Quest 3 launched globally
Euro million 31.03.22 31.03.21 Change Change % Gross revenue 5.4 8.4 (3.0) -35.6% Net revenue 5.4 8.5 (3.0) -35.6% Gross operating margin 1.1 4.5 (3.4) -76.4% (EBITDA) Operating margin (EBIT) (0.4) 3.9 (4.3) n.m. FI S CA L YEAR ENDING JUNE 30 th , 2022 SOURCE: DIGITAL B RO S - PUZZLE QUEST 3 LAUNCHE
Slide 19: Outlook FY2022 and investments
- Most of the video games currently under development will hit the market starting FY2023.The Group has planned to invest more than € 50 million during the fiscal year. - For the full FY22, the Group expects a decline in revenue without any significant new launch, but higher operating margins (EBIT)
Slide 20: May 2022
May 2022
Slide 21: Assetto Corsa
• THE #1 RACING SIMULATOR WITH OVER 17 MILLION COPIES SOLD • NEW EPISODE ASSETTO CORSA COMPETIZIONE: OFFICIAL GAME OF THE BLANCPAIN GT SERIES • FULLY LICENSED GT CARS FROM TOP MANUFACTURERS: FERRARI, LAMBORGHINI, MCLAREN • UNIQUE SELLING POINTS OF THE GAME: - Extraordinary level of simulation qualit
Slide 22: Control
• CINEMATIC THIRD PERSON ACTION GAME BUILT ON REMEDY’S PROPRIETARY NORTHLIGHT® TECHNOLOGY • DEVELOPED BY REMEDY ENTERTAINMENT, DEVELOPER OF AAA VIDEO GAMES • WORLDWIDE PUBLISHING RIGHTS ON PC AND ALL CONSOLE FORMATS • HIGH METACRITIC SCORE (AVG. 84) • MORE THAN 2 MILLION COPIES SOLD • €25 MIL BUDGET
Slide 23: Bloodstained: Ritual of the Night
• A GOTHIC HORROR ACTION SIDE-SCROLLING RPG SET IN 19TH CENTURY ENGLAND • CREATION OF KOJI IGARASHI, THE FORMER SERIES PRODUCER OF THE CASTELVANIA SERIES • WORLDWIDE PUBLISHING RIGHTS ON PC AND ALL CONSOLE FORMATS • HIGH METACRITIC SCORE (AVG. 81) • MORE THAN 1 MILLION COPIES SOLD May 2022 23
Slide 24: Journey to the Savage Planet / cyberpunk action game
• FIRST PERSON CYBERPUNK ACTION VIDEOGAME SET IN A GRIM, DYSTOPIAN FUTURISTIC WORLD • DLCs LAUNCH PROGRAM (First DLC released in December 2020) • OVER A MILLION COPIES SOLD TO DATE • HIGH METACRITIC SCORE (AVG. 77) • SECOND VERSION IN DEVELOPMENT • NEXT-GEN VERSION RELEASED IN FY22 May 2022 24
Slide 25: Death Stranding
• GROUNDBREAKING EXPERIENCE FROM LEGENDARY GAME CREATOR HIDEO KOJIMA • DIRECTORS’ CUT RELEASED ON MARCH 30TH, 2022 • WORLDWIDE PUBLISHING RIGHTS ON PC (CONSOLE VERSION PUBLISHED BY SONY INTERACTIVE) • EXPECTED LIFETIME REVENUES IN EXCESS OF € 50 MILLION • HIGH METACRITIC SCORE (86) • “PC GAME OF THE
Slide 26: Eiyuden Chronicle: Hundred Heroes
• RPG CREATION OF YOSHITAKA MURAYAMA AND JUNKO KAWANO, THE FORMER CREATORS OF SUIKODEN AND CASTLEVANIA • WORLDWIDE PUBLISHING RIGHTS ON PC AND ALL CONSOLE FORMATS AND CO-OWNERSHIP OF THE IP • PARTIALLY FUNDED BY THE LARGEST VIDEOGAME KICKSTARTER OF 2020, RAISING A TOTAL OF JPG 482 MILLION (USD 4.6 M
Slide 27: Puzzle Quest 3
• DEVELOPED BY INFINITY PLUS 2 ACQUIRED BY THE GROUP IN JANUARY 2021 • WORLDWIDE MULTIPLATFORM RELEASE (PC AND MOBILE) ON MARCH 1ST, 2022 • F2P PUZZLE HYBRID THAT FEATURES HERO CLASSES WITH DEEP RPG MECHANICS AND 1vs1 BATTLES IN A FULLY 3D GAME WORLD • A NEW INSTALLMENT TO ORIGINAL SERIES FIRST RELE
Slide 28: Hawken
• MECH GENRE: COLLECT, BUILD AND CUSTOMIZE YOUR MECH • STRONG F2P SYSTEM WITH PVE ELEMENTS • THE ACTUAL PRODUCTION IS NOT EVEN A SEQUEL: • New game design • Objective-based PVE to maximize revenues without being “pay-to-win” & to create sustainable long- term product growth • Enhanced mech customiza
Slide 29: Tactical adventure set in post-apocalyptic America
• TACTICAL ADVENTURE SET IN A POST- APOCALYPTIC AMERICA RAVAGED BY A FORCE KNOWN AS THE “MIASMA” • JOIN ELVIS AND HIS ROBOTIC OLDER BROTHER IN THE SEARCH FOR THEIR MISSING MOTHER AND DEFEAT THE MIASMA • DEVELOPED BY THE BEARDED LADIES, DEVELOPER OF MUTANT YEAR ZERO: ROAD TO HEAVEN • WORLDWIDE PUBLIS
Slide 30: Action RPG developed by Point Blank Games
• ACTION RPG: EXPLORE ACREA IN THE COMPANY OF THE ADVENTURER FARREN AND THE LITTLE WOLF BOJI, ON A JOURNEY FULL OF ACTION AND MYSTERIES. FACE HORDES OF LETHAL ENEMIES, WHILE RECOVERING THE FRAGMENTS OF ACREA’S MAGICAL SEAL • DEVELOPED BY POINT BLANK GAMES • WORLDWIDE PUBLISHING RIGHTS ON PC, PS5 and
Slide 31: Appendix
ri * a APPENDIX —_ May 2022
Slide 32: Starbreeze AB stake
– Starbreeze AB (SB) is a Swedish videogame developer and publisher owner of the famous PAYDAY IP that suc c e ssful ly exited a reconstruction period on December 6th, 2019. – In February 2020 Digital Bros acquired all Starbreeze assets held by Smilegate Holdings for €19.2 m. The overall assets nomi
Slide 33: Shaping the next generation of Game Developers
Shaping the next generation of Game Developers - Founded in 2014, Digital Bros Game Academy (DBGA) is a Milan-based academy dedicated to all young talents wishing to pursue a career in the gaming industry. - With two-year courses in Game Design, Game programming, Concept Art or Game Art 3D, the Acad
Slide 34: Digital Bros S.p.A. contact details
Digital Bros S.p.A. Via Tortona, 37 - 20144 Milan, Italy For more info: www.digitalbros.com - ir@digitalbros.com