Starbreeze Ab Class A · OMXSTO:STAR_A
Starbreeze Ab Class A — Q4 2023 Earnings Presentation
34 slides from Starbreeze Ab Class A's earnings presentation, Feb 15, 2024
Slide 1: Building Community by Making Games
starbreeze.com Building Community by Making Games Fourth Quarter 2023 2024-02-15
Slide 2: Today's presenters
Today’s presenters TOBIAS SJÖGREN, CEO MATS JUHL, CFO 2
Slide 3: Agenda
Agenda Agenda 1. Starbreeze in Brief 2. Quarter and Period in Brief 3. Our Games 4. Third Party Publishing 5. Group Financials 3
Slide 4: Starbreeze in Brief
STARBREEZE Starbreeze in Brief
Slide 5: Starbreeze in Numbers
Starbreeze in Brief Starbreeze in Numbers FOUNDED IN NET SALES, SEKm (R12) 1998 633.5 INITIAL PUBLIC OFFERING EBITDA, SEKm (R12) 2000 439.3 PERSONNEL CASH & CASH EQUIVALENTS, SEKm 196 347.8 5
Slide 6: About Starbreeze
Starbreeze in Brief About Starbreeze • Independent developer and creator of PC and console games targeting the global market • Develops games based on proprietary STOCKHOLM (HQ) and third-party rights, both in-house and together with external game developers • Executing on a multi-IP, cross-media, a
Slide 7: Starbreeze history and game timeline
Starbreeze in Brief 1998 It all begins… Founded under the name O3 Games AB 2000 2002 2004 2007 2009 2011 2012 Listed Enclave Knights of the Temple The Darkness Chronicles of PAYDAY: The Heist Syndicate on NASDAQ A medieval, multiplayer-only Gritty, first-person, Riddick – Assult on The original. Co-
Slide 8: Quarter & Period in Brief
STARBREEZE Quarter & Period in Brief a :
Slide 9: Financial update, Q4 2023
Quarter & Period in Brief Financial update, Q4 2023 NET SALES, SEKm DEPRECIATION, AMORTIZATION & IMPAIRMENT, SEKm 69.2 (33.6) 74.4 (15.0) EBITDA, SEKm PROFIT/LOSS AFTER TAX, SEKm -20.6 (19.4) -91.5 (-12.3) CASHFLOW FROM OPERATING ACTIVITIES 62.7 (10.1) 9
Slide 10: Financial update, Full-year 2023
Quarter & Period in Brief Financial update, Full-year 2023 NET SALES, SEKm DEPRECIATION, AMORTIZATION & IMPAIRMENT, SEKm 633.5 (127.6) 249.0 (59.6) EBITDA, SEKm PROFIT/LOSS AFTER TAX, SEKm 439.3 (66.4) 207.7 (-54.4) CASHFLOW FROM OPERATING ACTIVITIES 114.6 (57.8) 10
Slide 11: Operational Summary
Quarter & Period in Brief Operational Summary Roboquest 1.0 launched Dungeons & Dragons® license DLC 1: “Syntax Error” launched Two legacy heists + improvements PAYDAY™ 3 Strike team announced 11
Slide 12: Long-term focus on PAYDAY 3
Our Games Long-term focus on PAYDAY™ 3 • Successful pre-launch period with initial recoup, • Technical issues related to third party services plagued launch week • Launched DLC:s, Quality of Life updates, fixes, features and content – but not at the pace we want • Strike team established – identifyi
Slide 13: Quarter – Key Takeaways
Quarter & Period in Brief Quarter – Key Takeaways PAYDAY™ 3 sales and activity significantly lower than we want to see Strike team working closely with co-publisher to identify prioritized initiatives Dungeons & Dragons® license for Baxter announced High activity in Third Party Publishing, launch of
Slide 14: Full-year – Key Takeaways
Quarter & Period in Brief Full-year – Key Takeaways Rights issue to resolve historic debt and finance our next big project Closing the year with a strong financial position and clean balance sheet License of Dungeons & Dragons® for Project Baxter, release 2026 Expanding on third-party publishing, su
Slide 15: Our Strategy
STARBREEZE Our Strategy
Slide 16: Strategy – A Strong Foundation to Deliver and Grow
Starbreeze in Brief Strategy – A Strong Foundation to Deliver and Grow Core focus created …into a broadened IP ...building games, IP and capacity for growth... portfolio… beyond ü PAYDAY 3 launching in • Self-publishing of own titles ü Secure PD3 development and quality September 2023 • Operating se
Slide 17: We make cooperative multiplayer games with a strong focus on community engagement
Starbreeze in Brief We make cooperative multiplayer games with a strong focus on community engagement, committed to having a long lifetime by updates and support 17
Slide 18: Our Game Cornerstones
Starbreeze in Brief Our Game Cornerstones Experience Lifetime Community “Larger than Life” Together Commitment Engagement Experience • Creating a foundation • Co-creating the • Focus on gameplay and • Cooperative Multiplayer for engagement to gameplay experience embodying iconic – where you really w
Slide 19: Our Approach to Future Projects
Starbreeze in Brief Our Approach to Future Projects • Starbreeze will be publisher by name of PAYDAY™ 3 Branch Bank all own titles – a significant move Concept Art upwards in the value chain • We will expand our Publishing department to manage our own titles as well as a portfolio of third-party gam
Slide 20: Our Games
STARBREEZE Our Games
Slide 21: Our Projects
Our Games Our Projects 2026 2027 OWN TITLES STATUS: RELEASED SEPTEMBER 21, 2023 STATUS: RELEASED SEPTEMBER 21, 2023 STATUS: IN PROUDUCTION STATUS: PROOF-OF-CONCEPT/PITCH GENRE: CO-OPERATIVE MULTIPLAYER GENRE: CO-OPERATIVE MULTIPLAYER GENRE: CO-OPERATIVE MULTIPLAYER GENRE: CO-OPERATIVE MULTIPLAYER BU
Slide 22: Third Party Publishing
Third Party Publishing 03 22
Slide 23: Third Party Publishing & Other Projects
Third Party Publishing & Other Projects Third Party Publishing • Established during 2022 Games reviewed and declined • Leveraging Starbreeze experience as developer and publisher to help developers bring their games to market >200 • Looking for games with Games currently in review Starbreeze pillars
Slide 24: Roboquest 1.0
Third Party Publishing & Other Projects Roboquest 1.0 Steam® reviews, positive Units, Early Access W1 vs 1.0 launch W1 94 percent +850 percent Peak Daily Active Users (DAU) GaaS roadmap ~100,000 To Be Announced Average increase in DAU Available on: +1,000 percent 24
Slide 25: The Tribe Must Survive
Third Party Publishing & Other Projects The Tribe Must Survive About: Set in a gloomy lovecraftian stone age The Tribe Must Survive is about finding ways to grow and to protect your tribe from what lurks in the shadows around it. All your tribe members have their own personality and AI-will and gene
Slide 26: Turtle vs Turtle
Third Party Publishing & Other Projects Turtle vs Turtle About: Turtle vs Turtle is a Fortnite Island where two giant moving battle platforms set the stage for an epic conflict! The game is played in two teams (1 vs 1 to 8 vs 8 ) and players need to gather resources around the map to fund the buildi
Slide 27: GodsTV
Third Party Publishing & Other Projects GodsTV About: A multi-player “cartoon punk”, top down action title, stylized, irreverent and frantic, set for release in early 2026. Starbreeze will support Melbot Studios with funding for the game’s development, marketing, community management and release man
Slide 28: Group financials
Group financials Group financials 05 28
Slide 29: Revenue development – growth in PAYDAY
Group financials Revenue development – growth in PAYDAY 97% 99% 94% 93% 96% 99% 99% 100% 81% 31.1m 23.5m 31.8m 38.7m 33.6m 26.7m 43.2m 494.4m 69.2m • Net sales for Q4 2023 totaled to SEK 69.2m (33.6m). SEKm • PAYDAY Generated 54.5m out 490,0 6,3 of Net sales (32.4m). 390,0 • Other revenue mainly rel
Slide 30: EBITDA development
Group financials EBITDA development SEKm 500 479,4 439,3 • EBITDA in LTM Q4 2023 amounted 400 to SEK 439.3m (66.4m) • PAYDAY 3 release in third quarter 300 2023 200 100 64,6 74,9 62,7 66,4 65,9 61,9 55,1 56,4* 56,9 58,2 0 LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
Slide 31: Cashflow development
Group financials Cashflow development SEKm YTD 2023 1. 1 Operating activities after changes in working capital, 327 348 SEK 114.6m 2. 2 Investing activities, SEK -202.4m (game development) 115 3 3. Financing activities, SEK 327.4m (rights 157 issue 414.2m, 129 convertible loan 108 -149.0m, financing
Slide 32: Operating expenses
Group financials Operating expenses Cost base development SEKm NOTE Q4’23 Q4’22 2023 2022 A Direct costs for Q4’23 amounted to SEK 111.3m (15.4m) and consists of costs related to game development, depreciations of IP:n, royalty payments and Direct costs A 111,321 15,413 309,271 60,527 non-activatabl
Slide 33: Balance sheet
Group financials Balance sheet Assets Liabilities As per December 31, 2022 As per December 31, 2023 SEKm SEKm • Intangible assets amounted • Non-current liabilities to SEK 518m and consist of IP amounted to SEK 2.0m, rights SEK 142m, capitalized including Current Current Current 52 costs for own gam
Slide 34: Building Community by Making Games
starbreeze.com Building Community by Making Games 34