Starbreeze Ab Class A · OMXSTO:STAR_A
Starbreeze Ab Class A — Q2 2023 Earnings Presentation
37 slides from Starbreeze Ab Class A's earnings presentation, Aug 17, 2023
Slide 1: Building Community by Making Games
starbreeze.com Building Community by Making Games Second Quarter 2023 2023-08-17
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. Our Games 3. Third Party Publishing & Other Projects 4. Quarter and Period in Brief 5. Group Financials 6. Appendix 3
Slide 4: Starbreeze in Brief
STARBREEZE Starbreeze in Brief
Slide 5: 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 6: It all begins… Listed on NASDAQ
Starbreeze in Brief 1998 2000 2002 2004 2007 2009 2011 It all begins… Listed Enclave Knights of the The Darkness Chronicles of PAYDAY: The Heist Founded under the on NASDAQ A medieval, Temple Gritty, first-person, Riddick – Assult The original. Co-op name O3 Games AB multiplayer-only game action-adv
Slide 7: Starbreeze in Numbers
Starbreeze in Brief Starbreeze in Numbers FOUNDED IN NET SALES, SEKm (R12) 1998 142.2 INITIAL PUBLIC OFFERING EBITDA, SEKm (R12) 2000 61.8 PERSONNEL CASH & CASH EQUIVALENTS, SEKm 179 498.6 7
Slide 8: Starbreeze Highlights
Starbreeze in Brief Starbreeze Highlights Oversubscribed Rights Issue – SEK 453m before transaction costs Resolved SEK 380m in debt (book value) Net cash position and strong financial foundation to execute on strategy PAYDAY™ 3 is #6 Most Wished games on Steam® with ~1,700,000 PAYDAY™ 2 launch on Ep
Slide 9: 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 September 2023 quality • Operating se
Slide 10: 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 10
Slide 11: 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 12: Our Projects
Starbreeze in Brief Our Projects OWN TITLES 2026 2027 STATUS: RELEASE SEPTEMBER 21, 2023 STATUS: IN PROUDUCTION STATUS: PROOF-OF-CONCEPT/PITCH GENRE: CO-OPERATIVE MULTIPLAYER GENRE: CO-OPERATIVE MULTIPLAYER GENRE: CO-OPERATIVE MULTIPLAYER BUSINESS MODEL: GAMES AS A SERVICE BUSINESS MODEL: GAMES AS A
Slide 13: 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 14: Our Games
STARBREEZE Our Games
Slide 15: starbreeze.com
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Slide 16: Organic Trailer Views – Xbox Showcase (24h)
PAYDAY™ 3 Organic Trailer Views – Xbox Showcase (24h) 800000 600000 400000 200000 0 FABLE PAYDAY™ 3 STARFIELD STAR WARS: FORZA SENUA'S SAGA PERSONA 3 PERSONA 5 SEA OF THIEVES OUTLAWS MOTORSPORT 16
Slide 17: PAYDAY 3 Preview Reactions
PAYDAY™ 3 PAYDAY™ 3 Preview Reactions 17
Slide 18: Technical Beta Highlights
PAYDAY™ 3 Technical Beta Highlights Signups for beta 882,000 Access tokens sent (Xbox & Steam) 290,000 No. of heists played 450,000 18
Slide 19: starbreeze.com
PAY DAY, 3 ALIENWARE 00 TIME » IVGET TIME | TEASER TRAILER
Slide 20: starbreeze.com
starbreeze.com STARBREEZE ENTERTAINMENT
Slide 21: PAYDAY 2 KPI development
PAYDAY™ 2 PAYDAY™ 2 KPI development Base game vs DLC split Breakdown of Peak CCU per month MAU development last PD2 Steam launch to Starbreeze’s revenues (Steam®) 12 months date from Steam by region % 100 000 100 1 500 000 4 46 55 53 78 71 67 73 76 77 80 Oceania, 3% Middle East, 1% 96 Latin America,
Slide 22: Third Party Publishing & Other Projects
starbreeze.com Third Party Publishing & Other Projects 22
Slide 23: Third Party Publishing
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 >100 • Looking for games with Games currently in review Starbreeze pillars
Slide 24: Third Party Publishing & Other Projects
Third Party Publishing & Other Projects 24
Slide 25: Popreach Corporation
Third Party Publishing & Other Projects PAYDAY™ Crime War • Licenses content from PAYDAY™ 2 – PAYDAY™ Crime War Starbreeze retains all IP rights Popreach Corporation • Utilizes Starbreeze Nebula as player account platform • Starbreeze receives tiered royalties on sales • Launched globally in early J
Slide 26: Starbreeze Entertainment
Third Party Publishing & Other Projects Stockholm Syndrome • Partnership with LA-based production Stockholm Syndrome company Stockholm Syndrome Starbreeze Entertainment • Goal of the project is to develop a PAYDAY story for tv or film, and find a partner to distribute it worldwide • Progressing acco
Slide 27: Quarter & Period in Brief
Quarter & Period in Brief 02 27
Slide 28: Operational Summary Q2 2023
Quarter & Period in Brief Operational Summary Q2 2023 PAYDAY™ 2 Epic Games Store PAYDAY™ 3 Arrives September 21st Roboquest – Third Party Publishing PAYDAY™ 2 Crude Awakening Heist PAYDAY™ 3 Campaign Dev Diaries 28
Slide 29: Financial update Q2 2023
Quarter & Period in Brief Financial update Q2 2023 NET SALES, SEKm PROFIT/LOSS AFTER TAX, SEKm 43.2m (31.8) 24.1 (-10.8) EBITDA, SEKm RIGHTS ISSUE, SEKm 14.1m (18.1) 453 DEPRECIATION, AMORTIZATION & IMPAIRMENT, SEKm CASH & CASH EQUIVALENTS 17.0 (14.8) 498.8 29
Slide 30: Group financials
Group financials Group financials 05 30
Slide 31: Revenue development – growth in PAYDAY
Group financials Revenue development – growth in PAYDAY 98% 90% 97% 99% 94% 93% 96% 99% 99% 32.0m 34.7m 31.1m 23.5m 31.8m 38.7m 33.6m 26.7m 43.2m • Net sales for Q2 2023 totaled SEKm to SEK 43.2m (31.8m). 60,0 • PAYDAY growth of +42% Q2 50,0 2023, compared to Q2 2022. 40,0 3,7 • Other revenue mainly
Slide 32: EBITDA development
Group financials EBITDA development SEKm 80 74,9 • EBITDA in LTM Q2 2023 amounted 66,4 to SEK 61.9m (58.2m) 70 64,6 65,9 62,7 61,9 56,4* 56,9 58,2 • More activatable costs and stable 60 55,1 net sales leads to a higher level of 50 EBITDA the last quarters of 2022 and beginning of 2023 compared 40 to
Slide 33: EBITDA development
Group financials EBITDA development SEKm 80 • EBITDA in Q2 2023 amounted to SEK 14.1m (18.1m) 70 • Higher non-activatable personnel 60 cost and increased marketing 50 activities leads to higher costs YoY. 40 • Net Sale increase of SEK 11.5m in 30 24,3 the quarter off-sets the higher 19,9* 18,1 19,4
Slide 34: Cashflow development
Group financials Cashflow development SEKm YTD 2023 1. 1 Operating activities after changes in working capital, SEK 40.8m 445 499 2. 2 Investing activities, SEK -95.0m (game development) 3 3. Financing activities, SEK 444.8m (share issue 416.8m, financing for game 157 41 development 36.3m 129 108 an
Slide 35: Operating expenses
Appendix Operating expenses Cost base development SEKm NOTE Q2’23 Q2’22 2022 Direct costs for Q2’23 amounted to SEK 17.5m (15.1m) and consists of costs Direct costs A 17,482 15,142 17,482 A related to game development, depreciations of IP:n, royalty payments and non-activatable personnel expenses. T
Slide 36: Balance sheet
Appendix Balance sheet Assets Liabilities As per December 31, 2022 As per June 30, 2023 SEKm SEKm • Intangible assets amounted • Non-current liabilities to SEK 625m and consist amounted to SEK 2.6m, Current primarily of IP rights SEK including Current 78 52 assets assets 162m, capitalized costs for
Slide 37: Building Community by Making Games
starbreeze.com Building Community by Making Games 37