Embracer Group Ab Class B · OMXSTO:EMBRAC_B
Embracer Group Ab Class B — THQ Nordic — Merger or Acquisition (February 2018)
24 slides from Embracer Group Ab Class B's merger presentation, Feb 14, 2018
Slide 1: THQ Nordic AB (publ) acquires Koch Media
THQ Nordic AB (publ) acquires Koch Media Investor Presentation February 14, 2018
Slide 2: Acquisition rationale
Acquisition rationale AAA intellectual property rights Saints Row and Dead Island Long-term exclusive licence within Games for “Metro” based on books by Dmitry Glukhovsky 4 AAA titles in production including announced Metro Exodus and Dead Island 2 2 AAA studios Deep Silver Volition (Champai
Slide 3: Creating a European player of great scale
Creating a European player of great scale Internal development studios1 7 3 10 External development studios1 18 8 26 Number of IPs1 91 15 106 Announced 12 5 17 Development projects1 Unannounced 24 9 33 Headcount (internal and external)1 462 1,181 1,643 Net sales 2017 9m, Apr-Dec SEK 426m SEK 2,548m
Slide 4: High level transaction structure
High level transaction structure THQ Nordic AB (publ) Koch Media Holding GmbH, seller (Sweden) (Germany) Purchase price EUR 91.5m 100% 100% SALEM einhundertste Koch Media GmbH, Operations Holding GmbH operative company 100% (Austria) (Austria) Pre-transaction Transaction Transaction information Pu
Slide 5: Strong platform and operational setup
Strong platform and operational setup Group HQ # = Headcount Karlstad, Sweden 5 Group CEO/CFO No changes in Koch Media company structure post transactions Klemens Kundratitz will Operational HQ Operational HQ continue to run Koch Media Vienna, Austria Munich, Germany operations 457 Klemens Kreuz
Slide 6: Koch Media has a long track record in Games, Partner Publishing, and Film
Koch Media has a long track record in Games, Partner Publishing, and Film Founded by Klemens Kundratitz along key Koch Films is founded management 1994 1996 2002 2003 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Deep Enters the Silver is Deep Silver scores its Deep Silver acquires Opens US bran
Slide 7: Strong combination of business areas within Koch Media
Strong combination of business areas within Koch Media Partner Games Publishing Film Independent distributor and co- Publishing labels: Deep Silver & Market leading in Europe producer of films Ravenscourt 11 offices across the world. Digital and physical sales Four AAA titles in developm
Slide 8: Volition – Highly praised open-world developer
Volition – Highly praised open-world developer Overview Selection of titles Game development studio in Champaign, IL World class studio of open-world, action/destruction genre games Proprietary engine Volition has enabled games like Red Faction and Summoner Focus on PC and console Jim Boone is Studi
Slide 9: 25 years of game development experience
25 years of game development experience History 1993 Game studio established 1996 Split from Parallax Software 2000 Acquired by THQ 2013 Acquired by Koch Media / Deep Silver Restructuring after release of Agents of 2017 Mayhem where the number of employees went from 200 to 150 Source: Koch Media 9
Slide 10: Dambuster Studios
Dambuster Studios Overview Selection of titles Game development studio in Nottingham, UK Historical focus on console games Lean and efficient team with thin layer of management Robert Matthews is the Studio Development Director 108 employees1 Timeline of released games 1) December 31, 2017. Source:
Slide 11: 20 years of game development experience
20 years of game development experience History 1999 Founded as Free Radical Design Acquired by German game developer 2009 Crytek GmbH and rebranded Crytek UK Acquired by Koch Media / Deep Silver 2014 and rebranded Dambuster Studios After the release of Homefront: The Revolution, Dambuster Studios i
Slide 12: Deep Silver Fishlabs – Game development studio in Hamburg
Deep Silver Fishlabs – Game development studio in Hamburg Overview Selection of game titles Game development studio and publisher in Hamburg Historical focus on mobile games but present in PC and console which is focus going forward Well established relationships to platform holders and store manage
Slide 13: Metro IP
Metro IP To be released: 2018 Overview 3.5m views of Post-apocalyptic, first person shooter Metro Exodus3 trailer on Youtube First title released in 2010 Deep Silver has a long agreement with the rights Release date: May 2013 to make games of Metro Userscore Userscore EUR 95m in lifetime revenues1 ~
Slide 14: Dead Island IP
Dead Island IP Overview 16m views of Dead Island trailer Open world survival, horror action and role-playing and 9m views on Dead Island 2 trailer First title released in 2011, developed by on Youtube3 Techland, to critical acclaim Release date: Apr 2013 EUR 185m in lifetime revenues1 Userscore User
Slide 15: Saints Row IP
Saints Row IP Release date: Aug 2013 Overview Open world action-adventure, non-linear Metascore Userscore gameplay with comedic elements 86 92% First title released in 2006 , all titles developed by Volition Release date: Nov 2011 The Saints Row IP has been one of THQ Inc’s Userscore Userscore large
Slide 16: Other IPs – Agents of Mayhem and Homefront
Other IPs – Agents of Mayhem and Homefront Open world action-adventure game developed by First-person shooter in open world environment Volition Same fictional universe as Saints Row series Dambuster studios finished development Released in August 2017 Released in May 2016 EUR 19m in lifetime revenu
Slide 17: Deep Silver has a strong pipeline of new games
Deep Silver has a strong pipeline of new games Release date: 13 February 2018 Release date: 2018 Release date: 2018 GENRE: RPG PLATFORMS: Windows PC, Xbox One, PlayStation 4 GENRE: Racing PLATFORMS: Windows PC, Xbox One, PlayStation 4 GENRE: FPS PLATFORMS: Windows PC, Xbox One, PlayStation 4 +7 more
Slide 18: #1 European publishing partner with global presence
#1 European publishing partner with global presence Overview of publishing and distribution capabilities Local distribution presence in major geographies Strategic planning and product launch Distribution centre Höfen, Austria Serving continental Europe within 24 hours Manufacturing and local distri
Slide 19: Stable sales development in recent years
Stable sales development in recent years Net sales development for Koch Media standalone EURm 350 300 250 200 150 100 50 0 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 (9m, (9m, Jul-Mar) Apr-Dec) Games Partner Publishing Film Note: Management accounts. Source: Koch Media 19
Slide 20: The post deal group
The post deal group Each organisation maintains full operational focus on executing its own business plan for 2018 No cost savings programme planned No operational changes to each entity management Primary focus to deliver on THQ Nordic’s, Deep Silver and Koch Media’s respective full release
Slide 21: Pro forma financials for the combined entity
Pro forma financials for the combined entity April-Dec 2017 THQ Koch Adjustments Proforma Income statement April – December 2017 Swedish GAAP (K3) Nordic Media SEK 2,933m Net sales SEKm Unaudited Unaudited Unaudited Unaudited Net sales 426 2,548 -41 2,933 SEK 505m Adjusted EBIT Asset impairmen
Slide 22: Koch Media Group structure and management
Koch Media Group structure and management Koch Media GmbH Höfen – Austria Dr. Reinhard Gratl Dr. Klemens Kundratitz Stefan Kapelari CFO CEO and founder COO Employed since 1997 Employed since 1994 Employed since1995 Koch Media GmbH Koch Films GmbH Planegg – Germany Planegg – Germany Deep Silver Fishl
Slide 23: Appendix
Appendix 23
Slide 24: Pro forma detailed financials for the combined entity
Pro forma detailed financials for the combined entity Income statement Balance sheet April-Dec 2017 December 31, 2017 THQ Nordic Koch Media Adjustments Pro forma THQ Nordic Koch Media Adjustments Pro forma Swedish GAAP (K3) Swedish GAAP (K3) SEKm Unaudited Unaudited Unaudited Unaudited SEKm Unaudite