Remedy Entertainment Oy · OMXHEX:REMEDY
Remedy Entertainment Oy — Q1 2021 Earnings Presentation
29 slides from Remedy Entertainment Oy's earnings presentation, May 2021
Slide 1: Q1 2021 review
ly A (ck i 2 ¢2021 REVIEW |i eaes 6 REMEDY
Slide 2: Agenda
agenda 1 Q1 2021 in Review 2 Financial Results 3 Outlook 4 Questions & Answers Tero Virtala Terhi Kauppi CEO CFO
Slide 3: Q1 2021 in review
Q1 2021 in review Tero Virtala, CEO
Slide 4: Q1 2021 summary
Q1 2021 summary • Revenue 8.1 M€ (7.8), +3.4%. • Operating profit 0.9 M€ (1.1), 10.5% of revenue. • Control Ultimate Edition released on PlayStation 5 and Xbox Series X|S. • Remedy raised 41.5 million euros with a directed offering of new shares to a limited number of domestic and international inst
Slide 5: Our production capabilities have grown
OUR production capabilities have grown In 2020 we worked on: 5 15 to 10 main games projects different platforms 274 Remedy Talent 31 external development partners Representing 14 disciplines 370 external talent
Slide 6: Games we are now working on
Games we are now working on Two unannounced Unannounced projects new project WITH WITH WITH
Slide 7: Control keeps growing over time
CONTROL KEEPS GROWING OVER TIME Selling stronger than ever NOVEMBER 2020 2M OVER Expanding to new platforms and services CONTROL ULTIMATE EDITION STRONGEST TWO METASCORE MONTH MILLION 85 on PlayStation 5 87 on Xbox Series X|S (copies sold) COPIES SOLD 12/2020
Slide 8: Crossfire – 2 games to launch in 2021
CROSSFIRE – 2 games to launch in 2021 Developed by Smilegate Developed by Smilegate Published by Tencent Published by Microsoft Platform: PC Platforms: Xbox One & Series X | S Closed alphas and open-beta phases held To be released in 2021 throughout 2020 Continuation to the Crossfire game in China A
Slide 9: Epic Publishing & Remedy
EPIC PUBLISHING & REMEDY • 2 games in development: AAA project and a smaller project • Remedy to retain IP ownership • Epic will fully fund the development • For console and PC platforms • Significant marketing investment • Net revenues shared 50/50 • The AAA project is close to moving into full pro
Slide 10: Vanguard
vanguard • Long-lasting service-based co-op multiplayer game combined with selected Remedy world- building and narrative strengths • Iteratively developing the first playable version • Being designed as a Free-to-Play game • Publishing model yet to be decided • Many of the core elements of the game
Slide 11: Global Games market 2020
Global Games market 2020 TOTAL MARKET North $175Bn America Europe, Middle +20% YoY $44.7Bn East & Africa Asia-Pacific $84.3Bn +21% YoY $39.1Bn MARKET SHARES +21% YoY +17% YoY PC Console +6% YoY +21% YoY Latin 21% 29% America $6.8Bn +25% YoY Mobile +26% YoY 50% SOURCE: NEWZOO
Slide 12: Our focus stays the same
Our focus stays the same CONSOLES & PC PC Cloud / Subscription BIG SCREEN PlayStation 4 Steam Xbox Cloud & Game Pass GAMES for CASUAL PLAYERS CORE GAMERS PlayStation 5 GAMERS Nintendo Epic Google Stadia Switch Games Amazon Luna Xbox One Store Xbox Series X|S PlayStation Now GOG.com Switch Cloud MOBI
Slide 13: Gaming console user base continues to grow
Gaming console user base continues to grow INSTALL BASE Strong demand for new generation consoles, but: • Supply is still limited. 115M 50M • New gen is backwards compatible. • Still only few "new gen exclusive" games. 84M New generation: Long-term outlook good, growth takes time. Previous gener
Slide 14: Western PC-market has two strong marketplaces
Western PC-market has Two strong marketplaces Steam (Valve, 2003) Epic Games Store (Epic Games, 2018) 2020: 2020: • 120M active monthly users (2019: 95M) • 56M active monthly users (2019: 32M) • 21% increase in games sold • Number of games 471 (2019: 190) • 103 weekly free games
Slide 15: Subscription & streaming services grow and evolve
Subscription & streaming services grow and evolve
Slide 16: High demand for good AAA games, but fewer studios
High demand for good AAA games, but fewer and fewer available studios to create them ~ 150 AAA-studios in the world. Building new AAA studios is slow. Most are already owned by publishers and platform owners. 35 Independent studios remain.
Slide 17: Conclusions for Remedy
Conclusions for remedy We have a very strong basis to build on. Market has developed favourably to us. We are aiming for bigger opportunities.
Slide 18: Long-term objectives
Long-term objectives • To create several successful games, and at least one major hit game. • To own at least three expanding game brands, all with long-term hit potential. • To have capabilities to select the right commercial model for each game: self-finance, self-publish, or work with publishing
Slide 19: Share issue in February 2021
Share issue in February 2021 • We raised EUR 41.5 million to support the implementation of our updated strategy • Gives us the possibility to expand our capabilities and to self- finance and self-publish selected future games
Slide 20: Category-defining, creative super-developer
Category-defining, creative super-developer • Creator of world-class gaming brands. • Developer of distinctive, benchmark-setting games. • Professional multi-project developer. • Ability to self-publish, and partner with publishers. • Highly attractive home to world-class talent. • Profitable growth
Slide 21: Financial results
Financial results Terhi Kauppi, CFO
Slide 22: Key figures Q1 2021
Key figures Q1 2021 Revenue M€ Operating cash flow M€ 8.1 (7.8) 4.0 (-0.4) 3% growth EBIT M€ Net cash M€ 0.9 (1.1) 62.4 (14.0) 10.5% of revenue
Slide 23: We have progressed in a sustainable way
We have progressed in a sustainable way 45 35% 41.1 Revenue (M€) EBIT % 32.2 % 40 30% 35 31.6 25% 30 24.1 % 20.6 % 20% 25 18.9 % 20.1 20 15% 16.4 17.2 15.5 15 13.7 11.7 % 11.9 10.5 % 10% 9.8 % 10.5 10 8.1 4.7 6.1 % 3.8 4.7 % 5% 5 2.4 % 3.0 % 1.7 % 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 24: Growth analysis
Growth analysis Net sales Staff expenses 9000 7000 8000 6000 • Both royalties and 7000 5000 development fees increased 6000 4000 slightly net sales. 3000 5000 2000 • EBIT affected by 4000 1000 increased headcount and Q1 2020 Q1 2021 Q1 2020 Q1 2021 outsourcing as well as change in timing Capital exp
Slide 25: Multi-project future with more games: balancing risk and reward
Multi-project FUTURE with more games: Balancing risk and reward Self-published Own IP with Publishing Partner Subcontracting Work
Slide 26: We are in a strong position for the future
We are in a strong position For the future
Slide 27: Outlook
outlook Tero Virtala, CEO
Slide 28: Outlook for 2021
outlook for 2021 • We continue according to our long- term growth plans with an aim to launch at least one game or game expansion annually. • CrossfireX on Xbox platforms and Crossfire HD on PC expected to be released by Smilegate during 2021. • We expect 2021 to be a good year and expect our revenu
Slide 29: Thank you!
THANK YOU! Contact ir@remedygames.com investors.remedygames.com RemedyGames