Starbreeze Ab Class A · OMXSTO:STAR_A
Starbreeze Ab Class A — Investor Presentation (June 2020)
34 slides from Starbreeze Ab Class A's investor presentation, June 2020
Slide 1: Starbreeze Company Presentation
STARBREEZE COMPANY PRESENTATION
Slide 2: Disclaimer
DISCLAIMER THIS PRESENTATION CONSTITUTES AN ADVERTISEMENT WITHIN THE MEANING OF THE PROSPECTUS REGULATION (EU) 2017/1129. ‘The purpose of this presentation (the "Presentation"? is to provide an overview of Starbreeze AB (publ) (the "Company". This Presentation has been prepared and issued by, and is
Slide 3: Disclaimer - Cont'd
DISCLAIMER - CONT'D Any securities referred to in this Presentation have notbeen, and will not be, registered under the US Securities Act or under the securitieslaws of any state or other jurisdiction of the United States and may not be offered or sold in the United States absent registration or an
Slide 4: Slide / 4
INTRODUCTION TO STARBREEZE THE PAYDAY FRANCHISE rE ON TRANSACTION STRUCTURE GROUP FINANCIALS APPENDIX SLIDE/ 4
Slide 5: Introduction to Starbreeze
INTRODUCTION TOS
Slide 6: Starbreeze in brief
OFFICE LOCATIONS STARBREEZE IN BRIEF AT AGLANCE ~103 = Independent game developer for PC- and console games = Owns and fully controls the PAYDAY franchise, one of the most successful PC games of all times Luxembourg - Total net sales from the PAYDAY franchise since initial release amounts to SEK 1,0
Slide 7: Background
BACKGROUND PRE Hees 2018 In late November 2018, 8, the executive management initiated a review to lower costs and focus on core business Poor performance from Overkill’s The Walking Dead and a high fixed cost base resulted in a cash squeeze In early December 2018, Starbreeze AB (publ) and five Swedi
Slide 8: Focus - back to core Starbreeze
FOCUS - BACK T0 CORE STARBREEZE THE PAYDAY FRANCHISE PROVEN PIPELINE— A PAYDAY STUDIO PUBLISHING DEALS UNDER NEGOTIATION The PAYDAY-franchise is intact, the Company assets are Core PAYDAY competencies still working on the = Publishing deal for PAYDAY 3 highly sought after franchise = Publishing deal
Slide 9: Overview of the management team
MANAGED BY AN EXPERIENCED NEW TEAM. OVERVIEW OF THE MANAGEMENT TEAM MIKAEL NERMARK CEO since December 2018. Deputy CEO since 2009 Born: 1970 Education: Business, Stockholm University Background: Executive and expert in the games industry for 20 years with companies such as GRIN, PAN Vision and Visio
Slide 10: Overview of the Board of Directors
OVERVIEW OF THE BOARD OF DIRECTORS ALONG WITH A NEW BOARD OF DIRECTORS a TORGNY HELLSTROM NEW Chairman of the board since 2019 Born: 1958 Education: LM Stockholm University. Executive education Thunderbird (University of Phoenix) Principal occupation: Torgny Hellstrim san active board director and m
Slide 11: Current team structure
CURRENT TEAM STRUCTURE OFFICE COUNTRY TOTAL Stockholm Sweden 103 Paris France 9 Los Angeles USA 1 Barcelona Spain B Bes V ( \ ‘eB — us LEAN TEAM STRUCTURE WITH LIMITED OVERHEAD DEPARTMENT TOTAL 100% FOCUS ON GAME PRODUCTION Game Production 83 Assignedto Technology /IT PAYDAY, 7 PAYDAY Crime Marketin
Slide 12: The PAYDAY franchise
THE PAYDAY FRANCHISE—— MOST SUCGESSFUL TPS IN'THEAWORED
Slide 13: The PAYDAY franchise
THE PAYDAY FRANCHISE >300M USD _ 2 INSTALLED BASE >28,000,000 DLCS AND UPDATES >190 LS a ae 2011 2012 2013 2014 2015 2016 2017 2018 2019 oe >6,600,000 Action / Co-op PAYDAY 2 BASE GAME VS DLC SPLIT PD2 STEAM LAUNCH TO DATE” PAYDAY 2 release dates August2013 (PC) & June 2015 (Console) A franchise for
Slide 14: PAYDAY 2 - revenue and KPI
PAYDAY 2- REVENUE AND KPI (a 3Ru gat) REVIVING THE HUGE PAYDAY 2 COMMUNITY = Production of content to PAYDAY 2 was stopped by late cone 2018, previous mgmt: decided that all updates and : content was to be free 200,000 = Community largelyintact during 2018-2019, buta 190,000 community revival much,n
Slide 15: A strong franchise built over eight years
A strong franshise built over eight years Launch of Payday 3 Slide / 1515
Slide 16: Continued development of the PAYDAY franchise
Continued development of the PAYDAY 2 franchise Release date 2022-2023 “Living the Heist fantasy” KEY DATA IP developed and owned by Starbreeze Multiple platform release (PC, console etc.) New Game engine (Unreal) Continue successful story on the existing franchise and attract PD2 KEY TARGET players
Slide 17: Ongoing discussion with strategic partners
ONGOING DISCUSSION WITH STRATEGIC PARTNERS DEFINITION OF SCOPE OF THE GAME RAMP UP AND FULL TEAM SIZE LIVE OPERATIONS TEAM SIZE I “Ongoing discussions with potential partners Validation of Playable regarding a future publishing agreement for PAYDAY 3 are continuing in a positive spirit, but travel r
Slide 18: Transaction structure
TRANSACTION S!hU0 Uh
Slide 19: Transaction structure
TRANSACTION STRUCTURE KEY FEATURES KEY DATES = Raise approximately SEK 250m by way of a rights issue with preferential right for = August 12, 2020: Planned announcement date of the detailed terms and conditions, existing shareholders (both A- and B-shares) including subscription price and number of
Slide 20: Group financials
GROUP |) ANCIALS
Slide 21: Revenue development and impact of COVID-19
REVENUE DEVELOPMENT AND IMPACT OF COVID-19 REVENUE DEVELOPMENT ANNUAL SEKm » 98m 39% 109m!) 41% 104m] QUARTER 56% \ 22m 27m 56.1 2018 2019 (oe) PAYDAY 2- share of net sales, 9% and SEKm (eo) Other -share of net sales, % SUIDE/ 21 Source: Company Information. Q1'20 LTM ™ Net sales Qu'19 Q1'20 = Other
Slide 22: Operating expenses
OPERATING EXPENSES COST BASE DEVELOPMENT SEKM NOTE 2018 2019 arg 0120 Direct costs fA} 1,733.9 661.5 -170.6 95 96 of net sales 495% 236% 357% 43% Selling and marketing costs (3) 914 -12.0 44 -2.0 % of net sales -26% 4% 9% 9% ‘Administrative expenses (c} “115.7 -109.6 378 -19.5 % of net sales 33% 39%
Slide 23: Balance sheet
BALANCE SHEET 637.6 SEKm 637.6 Current liabilities Current assets PPE Financi assets liabilities Intangible assets EQUITY AND LIABILITIES ASSETS SLIDE / 23 Non-current 421.5 Other non-current liability Non-current lease liability Long-term liability, Starbreeze Paris Longtterm liability, Unity 51.3
Slide 24: Appendix
Slide /24
Slide 25: Post-restructuring legal structure
POST-RESTRUCTURING LEGAL STRUCTURE COMMENTARY ILLUSTRATIVE LEGAL STRUCTURE PRE RECONSTRUCTION = December 3, 2018 Stockholm District Court approved Starbreeze’s COMPANIES BEFORE THE RECONSTRUCTION (SIMPLIFIED) (“SBZ”) reconstruction Starbreeze AB (publ) - The Court appointed Lars Séderqvist from WSA
Slide 26: Ownership and share price development
OWNERSHIP AND SHARE PRICE DEVELOPMENT SHAREHOLDER STARA STAR B HOLDING, VOTES, 250,000 DIGITAL BROS S.P.A 26,695,287 9,733,948 10.05% 24.45% a1) Of 25 ‘SWEDBANK ROBUR’ 10,180,153 43,327,893 14.77% 12.82% 200,000 FJARDE AP-FONDEN 11,320,895 - 3.12% 10.00% FORSTAAP-FONDEN 7,195,179 34,999,996 11.81% 9
Slide 27: PAYDAY since launch - active releases
PAYDAY 2 SINCE LAUNCH — ACTIVE RELEASES PAYDAY 2 - NET SALES PER MONTH kusD Release PAID 14,000 FREE 7 Summer sale / Big Yakuza C r sale / Biker PD2 Free to Play /8 f million copies given Bank release Pack 12,000 Eh A Resumed development, Armored ; netic“ immer sale / Ultimat new cosmetic “suit Tran
Slide 28: Starbreeze in the value chain
STARBREEZE IN THE VALUE CHAIN Illustrative example, Self Publishing Illustrative example, Publishing Selling price (USD) 49.9 Selling price (USD) 49.9 VAT, % 10 VAT, % 10 Cost per unit sold, % - Cost per unit sold, % - Distribution fees, % 30 Distribution fees, % 30 ‘Starbreeze’s netsales 314 Publis
Slide 29: Trends in the gaming market
TRENDS IN THE GAMING MARKET four _ _ _ _ eo wm GAMES WITH CONTINUOUS TECHNICAL CONSOLIDATION \ a )\, ACONTEXT MONETIZATION PROGRESS SLIDE / 29
Slide 30: Overview of global gaming market
OVERVIEW OF GLOBAL GAMING MARKET SIZE AND GROWTH OF GAME MARKET * Global sales estimated to USD 152bn in 2019 UsDbn CAGR: 9% 7 = Expected annual growth (CAGR) of 9% until 2022E 196 178 165 = Market expected to generate sales of USD 196bn by 2022E 139 152 = Market growth drivers are target groups suc
Slide 31: Overview of global gaming market
OVERVIEW OF GLOBAL GAMING MARKET Games played on mobile devices (smartphones/tablets) Short playing sessiohSiandhiarrowehaction Development budgets and production time is shorter Target group is casual gamers Digital and physical games played on a stationary or = Games played on a PC handheld consol
Slide 32: Consolidated income statement
CONSOLIDATED INCOME STATEMENT KSEK 2018 2019 Quis Qu'20 iNet sales 345 385 380,002 Lae) 2037 Direct costs 733,503 661,520 170,565 9,508 Gross profit -loss] 71,383,948 381,518. 22,773 72,529. Selling and marketing costs i387 “i048 G38 “3018 ‘Administrative expenses “115,722 “108,609, ETAL “9541 Other
Slide 33: Balance sheet
BALANCE SHEET KSEK 2018 2019 Quis 120 KSEK 2018 2019 Quis 120 ayi2/18 syns 3103/19 31/03/20 34/a2)18 syns 31/03/19 31/03/20 ASSETS. EQUITY AND LIABILITIES. Non-current assets Equity attributable to owners of the parent. dntangible assets Share capital 6,506. 6,587. 6,506. 7,246, ood ste 28 sat sem E
Slide 34: Consolidated statement of cash flows
CONSOLIDATED STATEMENT OF CASH FLOWS KSEK 2018 2019 Quis Qu'20 Operating activities Cash flow from operations 577,805 504 362 156,620, 159, ‘Adjustments for non-cash items, 1,570,700 586,897 116,365 2,283 Interest paid 14,440 “13,433. : : Interest received : > 5 : Income taxes paid 473 731 Cash flow