Remedy Entertainment Oy · OMXHEX:REMEDY
Remedy Entertainment Oy — FY2019 Earnings Presentation
23 slides from Remedy Entertainment Oy's earnings presentation, Feb 14, 2020
Slide 1: FY2019 review
FY2019 review 14.2.2020
Slide 2: Agenda
agenda 1 Year in review 2 Financial results 3 Summary & outlook Tero Virtala Terhi Kauppi CEO CFO
Slide 3: Year in review
Year in review
Slide 4: FY2019 highlights 1/2
FY2019 highlights 1/2 • Revenue 31.6 (20.1) M€, +57%. • Operating profit 6.5 (0.6) M€, 21% of revenue. • Board of Directors proposes a dividend of 0.11 € per share. • First phase of the growth strategy successfully completed.
Slide 5: FY2019 highlights 2/2
FY2019 highlights 2/2 • Control released on PlayStation 4, Xbox One and PC in August and selected as Game of the Year by over 20 major gaming media outlets. • Remedy was part of the Crossfire presentation at X019, a major Xbox consumer event. • Single player campaign developed by Remedy will be part
Slide 6: Remedy now
REMEDY NOW (Unannounced) VANGUARD REMEDY ©
Slide 7: Control
• Supernatural 3rd-person action- • Average review Metascore 84/100. adventure game. • Game of the Year awards from a number of • Released in August 2019 on PlayStation 4, gaming media. Xbox One & PC. • Developed in 3 years with less than €30 • Game IP created and owned by Remedy. million. • Publish
Slide 8: Crossfire
• Crossfire is one of the world’s most • Operation Frost single player campaign popular online first-person shooters (FPS): has been completed – Remedy's first FPS over 650M registered and 8.5M game. simultaneous players in 80 countries. • Remedy is working on a second Crossfire • Created and owned
Slide 9: Unannounced 3rd project & Vanguard
unannounced 3 project & vanguard rd • Unannounced third project is proceeding well with a team of 20 people. • Vanguard, the fourth project, has a team of 15 people. • The objective of Vanguard is to create a long-lasting service-based multiplayer game combined with selected Remedy features. We now
Slide 10: Northlight game engine and tools
adaptable Game engine Specialized development tools • Core engine • World creation tools • Gameplay tools • Graphics engine • Content creation tools • Selected 3rd party tools • Game tech-modules • Storytelling tools Expert team Tailored pipelines & workflows • 40 specialist people • Data pipelines
Slide 11: Key benefits of Northlight
Key Benefits of northlight • Tech & tools tailored to exact needs of our games. • Industry-leading graphics engine. • Focused developments that enable innovative gameplay. • World-class games done with small gameplay programmer teams. • Game teams get strong specialized support by discipline experts
Slide 12: Talented and motivated personnel
Talented and motivated personnel 248 full-time employees 31.12.2019 50% 24% Finnish employees 50% year-on-year growth 258 26 nationalities headcount 14.2.2020
Slide 13: 2019: first phase of the growth strategy successfully completed
2019: first phase of the growth strategy successfully completed STRATEGIC PILLARS 2017–2018: BY THE END OF 2019 WE HAVE: 4 games in development, advancing well. 1 Games that stand out in the market and expand Grown to 250 people + outsourcing + support functions into long-term franchises Developed a
Slide 14: Strategic pillars set in 2019
Strategic pillars set in 2019 …that guide us for the next 2-3 years. 1 Longer-lasting games 2 3 4 Strong business Professionally Empowered in engaging worlds. ownership managed teams and people. of our games. game development.
Slide 15: Executive team, expanded in 2019
executive team, expanded in 2019 Tero Virtala Terhi Kauppi Markus Mäki Sami Järvi CEO CFO CTO, Chairman of Board CREATIVE DIRECTOR Mikaela Öberg-Mattila Johannes Paloheimo Christopher Schmitz HR DIRECTOR CHIEF COMMERCIAL OFFICER CHIEF OPERATING OFFICER
Slide 16: Financial results
Financial results
Slide 17: Key figures
Key figures FAS, unaudited H2-2019 H2-2018 FY-2019* FY-2018* Revenue M€ 31.6 Revenue, 1 000 € 17 846 10 922 31 645 20 146 Revenue growth, % 63.4% 23.3% 57.1% 17.3% EBIT, 1 000 € 5 073 997 6 534 609 % of revenue 28.4% 9.1% 20.6% 3.0% 57% Result for review period, 1 000 € 4 068 880 5 238 532 growth %
Slide 18: Financial development
Financial development 35 35% Revenue (M€) EBIT % 31.6 30 30% 25 25% 24.1 % 20.1 20 20.6 % 20% 18.9 % 16.4 17.2 15.5 15 13.7 15% 11.9 10.5 11.7 % 10 9.8 % 10% 4.7 3.8 6.1 % 5 4.7 % 5% 2.4 % 3.0 % 1.7 % 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 19: EBIT analysis
Ebit analysis • Revenue increased due to Control launch and two production phase projects. • Capitalization of product development expenses impacted EBIT positively. • Flexible production models increase outsourcing expenses. • Staff expenses increased due to growth of personnel. • Depreciations gre
Slide 20: Cash flow analysis
Cash flow analysis • Cash position decreased by 3.5 M€. • Revenue recognition rules and actual payments’ timetable can differ, especially for royalties. • Capitalized development expenses are affecting cash flow. • Other investments to IT equipment. • Financing cash flow includes dividend payment of
Slide 21: Summary & outlook
Summary & outlook
Slide 22: FY2019 summary & outlook for 2020
FY2019 summary & outlook for 2020 • First phase of the growth strategy • We expect our revenue and EBIT to grow successfully completed. during 2020. • Control launched to a great reception, • Majority of revenue and EBIT growth is winning multiple awards. Post-launch estimated to materialize during
Slide 23: Thank you!
Thank you!