19 slides from Take-two Interactive Software's investor presentation, Jul 7, 2014
Slide 1: Shareholder Outreach July 2014
Shareholder Outreach July 2014
Slide 2: TTWO: Industry Leader
TTWO: Industry Leader We seek to be the most creative, most innovative and most efficient company in our business Our commitment to creativity and innovation enables us to consistently differentiate our products We combine leading technology with deep creative content to provide unique gameplay expe
Slide 3: Track Record of Strong Shareholder Returns
Track Record of Strong Shareholder Returns 3 Strong Share Price Growth: 5-Year Performance vs. Peers Leader in Shareholder Returns: 5-Year TSR vs. Peers Share price increased 38% in FY2014 Repurchased $277 million in shares in FY2014 FY2014 Achievements Peer Group UBI: Ubisoft EA: Electronic Arts AT
Slide 4: Record Results in a Growing Industry
Record Results in a Growing Industry 4 Record Financial Results in FY20141 Non-GAAP EPS Non-GAAP Net Income Non-GAAP Revenue 1083% (y-o-y) 1444% (y-o-y) 97% (y-o-y) $4.26 $510.7M $2.4B 33% CAGR (Non-GAAP Revenue) 5.1% CAGR Positioned to Capitalize on Expected Global Video Game Market Growth3 Strong
Slide 5: Well-Positioned For Continued Growth
Well-Positioned For Continued Growth 5 Invested to grow and diversify the Company’s portfolio of hit video game franchises 7 new hit franchises launched since 2007 10 franchises with individual titles that have sold-in to retail more than 5 million units More than 40 multi-million unit selling title
Slide 6: Proven Strategy Focused On Franchise Management
Proven Strategy Focused On Franchise Management World Class Creative Teams Compelling Interactive Entertainment Franchises Innovative Marketing Distribution Across All Relevant Platforms Emerging Platforms Traditional Retail New IP IP Launched Pre-2006 Diverse portfolio of industry-leading intellect
Slide 7: World Class Creative Teams Fundamental to Success
World Class Creative Teams Fundamental to Success 7 Released in 2013, was the fastest-selling entertainment product in history Generated retail sales of $1 billion in its first three days The foundation of our success is the creative talent at our labels – Rockstar Games and 2K From 2010-2013, we ac
Slide 8: Retaining Creative Talent Through The Use of Equity Grants
Retaining Creative Talent Through The Use of Equity Grants 8 Retaining Key Talent is Core to Our Business We Use Equity Incentives Throughout TTWO to Motivate and Retain Key Talent Our creative employees at our wholly-owned labels drive our business, are critical to our continued success, and help u
Slide 9: Alignment of Executive Pay and Performance
Alignment of Executive Pay and Performance 9 Equity is a major component to our compensation program Our Compensation Committee considers this a critical compensation element that motivates our executives and creative talent and aligns them with our shareholders The performance based nature of our c
Slide 10: Management of Equity To Create Shareholder Value
Management of Equity To Create Shareholder Value 10 In 2011, our Board made a burn rate commitment related to our equity granting practices When presented with the opportunity to lock up key creative talent, our Board determined it was in shareholders’ best interests to execute those agreements In c
Slide 11: Responsiveness to Shareholder Feedback
Responsiveness to Shareholder Feedback 11 During 2013 and 2014, we engaged with our shareholders to better understand their perspectives, particularly with respect to key elements of both our ZM management agreement and our executive compensation program In response to shareholder feedback, we made
Slide 12: Independent Board with Deep Industry Experience
Independent Board with Deep Industry Experience 12 Extensive industry knowledge and strong global outlook Director backgrounds in internet, sports media, social media, music, television and cinema New director Susan Tolson brings key insight to financial, governance and entertainment industry issues
Slide 13: Appendix
Appendix Take-Two Interactive Software 13
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures 14 In addition to reporting its financial results in accordance with U.S. generally accepted accounting principles (GAAP), Take-Two Interactive Software, Inc. (the “Company”) uses Non-GAAP measures of financial performance. Included in this presentation are certain Non-GA
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures 15 Loss on extinguishment of debt – the Company recorded a loss on extinguishment of debt as a result of settling its 4.375% Convertible Notes in August 2013. The Company excludes the impact of such transactions when evaluating the Company’s operating performance. Managem
Slide 16: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures 16 Fiscal Year Ended March 31, 2014 Net Revenues GAAP Net Revenues $ 2,350,568 Net effect from deferral in net revenues 63,152 Non - GAAP Net Revenues $ 2,413,720 Net Income GAAP Net Income $ 361,605 Net effect from deferral in net revenues and related cos
Slide 17: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures 17 Total weighted average shares out standing-basic 95,347 Add: dilutive effect of common stock equivalents 29,363 Tot al weighted average share sout standing-diluted 124,710 Less: weighted average participating shares outstanding (10,828) Weighted average
Slide 18: Proxy statement and participant notice
18 Take-Two Interactive Software, Inc. (the “Take-Two”) intends to file a definitive proxy statement with the Securities and Exchange Commission ("SEC") with respect to its 2014 Annual Meeting of Stockholders. Stockholders should read the definitive proxy statement carefully when it becomes availabl
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