Remedy Entertainment Oy · OMXHEX:REMEDY
Remedy Entertainment Oy — FY2022 Earnings Presentation
29 slides from Remedy Entertainment Oy's earnings presentation, Feb 10, 2023
Slide 1: The webcast will begin soon
The webcast will begin soon.
Slide 2: Financial Statement Bulletin January-December 2022
FINANCIAL STATEMENT BULLETIN JANUAR¥=BECEMBER 2022 — * - February 10, 2023 -
Slide 3: Agenda: Q4 2022 Review, Financial Results, Outlook, Q&A
1 Q4 2022 Review Q4 and FY 2022 2 Financial Results 3 Outlook Tero Virtala CEO Terhi Kauppi CFO 4 Questions & Answers
Slide 4: Q4 2022 Review
, . fo? REVIEW. Tero Virtala, CEO = ry REMEDY
Slide 5: Q4 2022 highlights
• Revenue decreased by 31.2% to 13.6 M€ (19.8) • EBITDA decreased to 2.8 M€ (10.9), mainly due to a significantly lower level of revenue than in the comparison period • Operating profit 2.1 M€ (10.3), operating profit margin 15.6% (52.2%) • Cash flow from operations -3.8 M€ (-2.2) • In November Reme
Slide 6: FY 2022 highlights
• Revenue decreased by 2.5% to 43.6 M€ (44.7) • EBITDA was 1.9 M€ (14.5) • Operating profit -0.6 M€ (11.4), operating profit margin -1.3% (25.5%) • Cash flow from operations 11.1 M€ (6.1) • In April, Remedy announced it will remake Max Payne and Max Payne 2: The Fall of Max Payne with Rockstar Games
Slide 7: Agreements in place for all five game projects
• Agreements in place for all five game projects with world- class partners. • Balanced portfolio: Longer-engaging single-player, and service-based multiplayer games • Strong cash position, increased own investments to games, with good royalty upside. • Path set to becoming a co-publisher, in co-ope
Slide 8: Game project portfolio and development stages
Condor* Control 2 Alan Wake Alan Wake II * Max Payne Remastered * 1&2 remake LAUNCHED PROOF-OF-CONCEPT PROOF-OF-CONCEPT LAUNCHED FULL PRODUCTION PROOF-OF-CONCEPT CONCEPT WITH WITH WITH WITH * project codename
Slide 9: A new development studio in Stockholm
366 A NEW DEVELOPMENT STUDIO Remedy talents IN STOCKHOLM (December 31, 2022) UTILIZE and CONTINUE TO EXPAND EXTERNAL DEVELOPMENT CAPABILITIES
Slide 10: People and talent in 2022
• In 2022 we almost doubled the number of new Remedians compared to 2021. • We succeeded in retaining our people despite of the competitive talent market and overall increased employee turnover in gaming industry (after pandemic). • We continued to provide opportunities for professional development,
Slide 11: Remedy 2017-2021 and 2023-2027
2023 - 2027 REMEDY in 2022 Ability to develop new games 2017 - 2021 • and live operate existing ones. • Ability to develop 5 games in • Game updates, and new parallel. game launches every year. • Building scalable multi- • Longer-engaging games with • Longer-engaging single- project organization. re
Slide 12: Q4 and FY 2022 Financial Results
T onoco=r _Q4 AND FY 2022 FINANCIAL RESULTS =) REMEDY
Slide 13: Q4 revenue: royalties and development fees
19.8 1.5 14.2 13.6 1.1 7.6 18.3 12.6 6.6 Q4 2020 Q4 2021 Q4 2022 Royalties (EURm) Development Fees (EURm)
Slide 14: Royalties and development fees
Royalties (EURm) Development Fees (EURm)
Slide 15: Q4 operating profit and margin
10.3 52.2% 38.8% 5.5 2.1 15.6% Q4 2020 Q4 2021 Q4 2022 Q4 2020 Q4 2021 Q4 2022 Operating Profit (EURm) Operating Profit Margin (%)
Slide 16: FY revenue: royalties and development fees
44.7 43.6 41.1 8.7 4.5 15.0 39.1 36.0 26.1 FY 2020 FY 2021 FY 2022 Royalties (EURm) Development Fees (EURm)
Slide 17: FY operating profit and margin
11.4 25.5% 7.2 17.6% -0.6 -1.3% FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 Operating Profit (EURm) Operating Profit Margin (%)
Slide 18: External development, personnel and capitalized costs
2.6 1.9 2.1 2.0 2.0 2.1 2.0 1.8 -1.6 -1.4 -2.5 -2.9 -3.6 -4.5 -4.2 -4.9 -6.4 -6.2 -6.3 -6.6 -6.6 -6.5 -6.9 -6.9 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Ext Dev (EURm) Personnel expenses (EURm) Capitalized Dev Cost (EURm)
Slide 19: Cash, financial instruments and operating cash flow
73.4 66.1 64.0 7.0 63.3 60.6 58.4 60.4 7.0 6.8 55.9 7.0 6.8 18.0 6.8 66.4 57.0 53.6 56.5 51.4 49.0 4.2 4.8 5.0 -0.8 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 -2.2 -3.8 -8.0 Cash and Cash Equivalents (EURm) Financial instruments (EURm) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2021 2021 2021
Slide 20: Revenue and EBIT history 2010-2022
FAS IFRS 44.7 45 43.6 35% 41.1 Revenue (M€) EBIT % 40 30% 35 25.5% 25% 24.1% 31.6 30 20.6% 20% 18.9% 17.6% 25 15% 11.7%20.1 20 9.8% 10% 16.4 17.2 15.5 15 4.7% 13.7 6.1% 5% 11.9 2.4% 10.5 3.0% 1.7% 10 -1.3% 0% 4.7 3.8 5 -5% 0 -10% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 21: Self-published and co-published games
Self- published Co-published Own IP with Publishing Partner Partner IP
Slide 22: Development phases, fees and royalties by model
DEVELOPMENT PHASE LIVE Self-publishing ROYALTIES Co-publishing Production Readiness DEVELOPMENT FEES R O Y A L T I E S* Proof of Concept Full Production Live stage Concept Own IP with publishing partner DEVELOPMENT FEES R O Y A L T I E S* Partner IP DEVELOPMENT FEES R O Y A L T I E S* Project impact
Slide 23: Proposed dividend of 0.10 euros per share
The Board of Directors proposes a dividend of 0.10 (0.17) euros per share.
Slide 24: Outlook
Tero Virtala, CEO
Slide 25: Outlook for 2023
Remedy expects its revenue to decline from previous year and a negative operating result. In 2022, Remedy’s revenue totaled EUR 43.6 million and operating profit EUR –0.6 million.
Slide 26: 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 partners. • To be the
Slide 27: Questions & Answers
Slide 28: Speakers will now take questions
Speakers will now take questions from the investors, analysts and media representatives Web participants: • Type in your question
Slide 29: Contact
Contact ir@remedygames.com investors.remedygames.com RemedyGames