Remedy Entertainment Oy · OMXHEX:REMEDY

Remedy Entertainment Oy — Investor Day (2024)

25 slides from Remedy Entertainment Oy's investor day presentation, 2024

  1. Slide 1: Remedy's Capital Markets Day 2024

    REMEDY’S _ CAPITAL . ‘MARKETS DAY 2024

  2. Slide 2: Remedy's Business Logic and Value Creation

    © REMEDY ENTERTAINMENT 2024 REMEDY'S BUSINESS LOGIC AND VALUE CREATION SANTTU KALLIONPÄÄ CHIEF FINANCIAL OFFICER

  3. Slide 3: Agenda

    AGENDA © REMEDY ENTERTAINMENT 2024 WHERE DO WE COME FROM? OUR BUSINESS LOGIC VALUE CREATION OUR AMBITION

  4. Slide 4: Where do we come from?

    © REMEDY ENTERTAINMENT 2024 WHERE DO WE COME FROM?

  5. Slide 5: We have transformed via phases, which shows in financials

    WE HAVE TRANSFORMED VIA PHASES, WHICH SHOWS IN FINANCIALS © REMEDY ENTERTAINMENT 2024 IFRS Net sales € EBIT-% 50 30 25 40 20 30 15 20 10 10 5 0 0 -5 -85 2016 2017 2018 2019 2020 2021 2022 2023 Q1-Q3 2024 Royalty / game sales Development fee EBIT % Growth investments

  6. Slide 6: Current organization size is on a correct level

    OUR CURRENT ORGANIZATION SIZE IS ON A CORRECT LEVEL, AND WE DON’T SEE A NEED TO INCREASE IT © REMEDY ENTERTAINMENT 2024 Costs M€ FTE 50 400 40 300 30 20 200 10 0 100 2020 2021 2022 2023 2024 Average FTE amount Personnel Materials and services Capitalized development costs

  7. Slide 7: Improved cash position enables the next steps in strategy execution

    IMPROVED CASH POSITION ENABLES THE NEXT STEPS IN THE STRATEGY EXECUTION © REMEDY ENTERTAINMENT 2024 Cash M€ 50 45 40 35 30 25 20 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2023 2023 2023 2024 2024 2024 Financial Instruments Cash and cash equivalents

  8. Slide 8: Longevity of high-quality games: Control as prime example

    LONGEVITY OF HIGH-QUALITY GAMES: CONTROL AS PRIME EXAMPLE © REMEDY ENTERTAINMENT 2024 Illustrative: Control sales and average net sales price 4000 45 Cumulative copies sold ‒ IP created by Remedy Avg. price 3500 40 3000 35 ‒ Sold 4,5 million copies in 5 30 years, continues to sell 2500 25 ‒ Control

  9. Slide 9: Our business logic

    © REMEDY ENTERTAINMENT 2024 OUR BUSINESS LOGIC

  10. Slide 10: Self-publishing strengthens our position and enables financial upside

    SELF-PUBLISHING STRENGTHENS OUR POSITION AND ENABLES FINANCIAL UPSIDE, BUT REQUIRES © REMEDY ENTERTAINMENT 2024 MORE FROM US INVESTMENT needs from Remedy SHARE OF SALES to Remedy Self-publishing – – +++ CONTROL 2 Co-publishing – ++ Own IP with publishing partner –+ + Partner IP + ?

  11. Slide 11: Assumptions

    ASSUMPTIONS © REMEDY ENTERTAINMENT 2024 M€ Game sales 100 Platform fees 30 Game development costs 30 Marketing 10

  12. Slide 12: P&L logic from Remedy point of view: self-publishing scenario

    P&L LOGIC FROM REMEDY POINT OF VIEW SCENARIO: SELF-PUBLISHING © REMEDY ENTERTAINMENT 2024 ASSUMPTIONS: Game sales 100, platform fees 30, game development costs 30, marketing 10 ILLUSTRATIVE Publisher, Remedy investment. as publisher, Recouped no partner Development fees 30 Royalty 15 Game sales reve

  13. Slide 13: Scaling up the sales: updated assumptions

    SCALING UP THE SALES: UPDATED ASSUMPTIONS © REMEDY ENTERTAINMENT 2024 M€ Game sales 100 → 200 Platform fees 30 → 60 Game development costs 30 Marketing 10

  14. Slide 14: Doubling the sales provides significant upside when self-published

    DOUBLING THE SALES PROVIDES SIGNIFICANT UPSIDE WHEN THE GAME IS SELF-PUBLISHED © REMEDY ENTERTAINMENT 2024 ASSUMPTIONS: Game sales 100 → 200, platform fees 60, game development costs 30, marketing 10 ILLUSTRATIVE SALES X 2 SALES X 2 Publisher, Publisher, Remedy Remedy investment. investment. as publ

  15. Slide 15: Self-publishing model scales strongly

    SELF-PUBLISHING MODEL SCALES STRONGLY © REMEDY ENTERTAINMENT 2024 ILLUSTRATIVE NET SALES NET SALES NET SALES 50 M€ 100 M€ 200 M€ PLATFORM FEES PLATFORM FEES PLATFORM FEES 28–30% 25–28% 23–26% EBITDA EBITDA EBITDA 0€ > 30 M€ > 90 M€ EBITDA MARGIN EBITDA MARGIN EBITDA MARGIN 0% > 30% > 45%

  16. Slide 16: Value creation

    © REMEDY ENTERTAINMENT 2024 VALUE CREATION

  17. Slide 17: Remedy is in a good position to start growing own game sales

    REMEDY IS IN A GOOD POSITION TO START GROWING OWN GAME SALES © REMEDY ENTERTAINMENT 2024 2024 REVENUES 2024 REVENUES DEVELOPMENT FEES PARTNER ROYALTIES REMEDY OTHER GAME SALES REVENUES

  18. Slide 18: 100% ROI target: budget adjusted to enable meeting the target

    100% ROI TARGET: BUDGET ADJUSTED TO ENABLE MEETING THE TARGET Size of the genre Development budget 100% minimum Sales Successful potential 10 5% Fanbase Development velocity ROI for the game game project project New players True player value Optimize the potential Remedy is capable of making for a h

  19. Slide 19: Balancing the risk is an important part of business case evaluation

    BALANCING THE RISK IS AN IMPORTANT PART OF BUSINESS CASE EVALUATION © REMEDY ENTERTAINMENT 2024 100% ROI reached → Target ROI exceeded Game development payback PROBABILITY

  20. Slide 20: With self-publishing, 100% ROI level is realistic to reach

    WITH SELF-PUBLISHING, 100% ROI LEVEL IS REALISTIC TO REACH © REMEDY ENTERTAINMENT 2024 GAME DEVELOPMENT REQUIRED SALES BUDGET PRICE POINT FOR 100% ROI* EXAMPLES OF GAMES ca. 30 M€ Mid-price 3 M copies PvE shooter LIFETIME ca. 50 M€ AAA game 3-4 M copies Action RPG LIFETIME CONTROL 2 * Includes assum

  21. Slide 21: Our ambition

    © REMEDY ENTERTAINMENT 2024 OUR AMBITION

  22. Slide 22: Self-published games revenue growth is the main driver of profitability

    SELF-PUBLISHED GAMES REVENUE GROWTH IS THE MAIN DRIVER IMPACTING OUR PROFITABILITY © REMEDY ENTERTAINMENT 2024 EBITDA margin improvement 20–25%p. 5–15%p. 2027 2024 REMEDY SELF-PUBLISHED REVENUE GROWING SYNERGIES OTHER BENEFITS AMBITION TODAY NEW GAME SALES FROM EXISTING AND IMPROVING FROM FRANCHISES

  23. Slide 23: Self-published games driving the revenue growth

    SELF-PUBLISHED GAMES DRIVING THE REVENUE GROWTH © REMEDY ENTERTAINMENT 2024 Game Genre Genre size* Potential PvE shooter 13 M avg monthly active players Attracts completely new fans 130 M lifetime players Builds on already existing world Provides long sales curve Action RPG 21 M avg monthly active p

  24. Slide 24: Double the 2024 revenue by 2027

    © REMEDY ENTERTAINMENT 2024 DOUBLE THE 2024 REVENUE BY 2027 WITH CONTINUED GROWTH BEYOND THIS MILESTONE EBITDA MARGIN OF 30% BY 2027 AND MAINTAIN THAT MINIMUM LEVEL THROUGHOUT THE STRATEGY PERIOD

  25. Slide 25: Investor relations contact

    ir@remedygames.com | investors.remedygames.com

Remedy Entertainment — Investor Day (2024) on 6ix