11 Bit Studios Sa · GPW:11B
11 Bit Studios Sa — Investor Presentation (March 2019)
62 slides from 11 Bit Studios Sa's investor presentation, March 2019
Slide 1: Make Your Mark 11 bit studios
Make YOUR rok oe bit SeUdiIOS
Slide 2: The best year in the company's history
44 @ Cl ) THE BEST YEAR IN THE COMPANY'S HISTORY | VP Vivad VP AV VAv’d Vr AV OV
Slide 3: 2018 revenue and net profit
2018 REVENUE NET PROFIT 82,113,506 37,549,897
Slide 4: Key events 2018
2018 KEY EVENTS MOONLIGHTER ata STRON SALES OF RELEASE THIS WAR OF MINE
Slide 5: Years of 11 bit studios
10 YEARS OF
Slide 6: Anomaly: Warzone Earth
THE FIRST GAME | April 8th 2011 ANOMALY: WARZONE EARTH USD 10 apiecelaunch price USD 16,651first day’s revenue USD 1,260,036aggregate revenue until the end of 2018, 93 months
Slide 7: This War of Mine
THE SECOND GAME | November 14th 2014 THIS WAR OF MINE USD 20apiece launch price USD 170,792first day’s revenue USD 19,456,674aggregate revenue until the end of 2018, 49.5 months
Slide 8: Frostpunk
THE THIRD GAME| April 24th 2018 FROSTPUNK USD 30apiece launch price USD 1,798,947first day’s revenue USD 12,980,342 aggregate revenue until the end of 2018, 8 months
Slide 9: More than 10,000,000 games sold
We are a globally-operating company To date, we have sold more than 10,000,000 games
Slide 10: Key markets of 11 bit studios
EU RU US 35% 4% 29% ASIA 21% OC KEY MARKETS 4% OF 11 BIT STUDIOS
Slide 11: How does this affect our financial performance?
HOW DOES THIS AFFECT OUR FINANCIAL PERFORMANCE? 2010 2011 2012 2013 2014 2015 2016 2017 2018 REVENUE (PLN M)
Slide 12: Financial results with incentive scheme costs
* * - PLN 6.15m – non-cash costs related to the Incentive Scheme
Slide 13: Change of 11 bit studios scale over years
CHANGE OF 11 BIT STUDIOS SCALE OVER 10 YEARS October 28th 2010 | Capitalisation on first listing on NewConnect PLN 7,390,000 March 28th 2019 | Current capitalisation on the main WSE market PLN 700,000,000+
Slide 14: Return on 11 bit studios shares
RETURN ON 11 BIT STUDIOS SHARES October 28th 2010 Trading price on first listing on NewConnect was PLN 3.75 March 27th 2019 Current share price on the WSE main market is PLN 313 (up 8,346.7%)
Slide 15: Visual aid placeholder: studio development
Now, picture a nice visual aid showing our budding company, starting from ANOMALY, throughTHIS WAR OF MINE, FROSTPUNK, PROJEKT8 and vroom into the future. We haven’t got the visual aid ready yet, but imagine that it looks good. OK? Thank you.
Slide 16: 11 bit studios has reached its targets
11BIT STUDIOS HAS REACHED ITS TARGETS
Slide 17: Frostpunk and publishing success
FROSTPUNK Meaningful game as a creative and commercial success PUBLISHING Not an experiment anymore, but a well-oiled machine whose success is evidenced by the figures
Slide 18: Large projects, alternative to AAA games
We are eager to embark on large projects We want to be an alternative to AAA games
Slide 19: Cross-platform gaming at heart
& Sil | q f . | ay CROSS-PLATFORM GAMIN AT HEART VP Vivad VP AV VAv’d Vr AV OV
Slide 20: Value of the games market in 2018
VALUE OF THE GAMES MARKET IN 2018 USD 134.9bn [+10.9% YoY] PCs CONSOLES MOBILE 33.4 38.3 63.2 Source: gamesindustry.biz
Slide 21: Cross-platform: studio, publishing, marketing
CROSS-PLATFORM | STUDIO | PUBLISHING | MARKETING VP Vivad VP AV VAv’d VV AV OV
Slide 22: Cross-platform: studio
CROSS-PLATFORM STUDIO VP Vivad VP AV VAv’d VV AV OV
Slide 23: We do not port games
We do not port games We design them with key platforms in mind TECHNOLOGY | PLAYABILITY | PARTNERSHIPS
Slide 24: First game developed from scratch for consoles
is our first game developed from scratch, intended for consoles
Slide 25: Console-first approach for upcoming projects
is our first game developed from scratch, intended for consoles We will stick to this approach for upcoming projects (current/next-gen)
Slide 26: Studio evolves: independent teams, new office
THIS DRIVED THE WAY STUDIO EVOLVES 3 INDEPENDENT TEAMS NEW OFFICE OF 50-60 PEOPLE EACH WITH NEW INFRASTRUCTURE
Slide 27: Cross-platform: studio
CROSS-PLATFORM STUDIO VP Vivad VP AV VAv’d VV AV OV
Slide 28: Cross-platform: publishing
CROSS-PLATFORM PUBLISHING VP Vivad VP AV VAv’d VV AV OV
Slide 29: First game launched same day on all consoles
This will be the first game developed by 11bit to be launched on the same day on all consoles
Slide 30: Priority to large platforms, not forgetting mobile
While giving priority to large platforms, we do not forget about the mobile market
Slide 31: Mobile and stand-alone releases
Release date: March 5th Release date: March 27th Release planned for: summer 2019 The mobile version Game released paid back in a week as a stand-alone product It will not be ported, after the launch and is Lower entry barrier but fully adapted now another source of revenue ---- ---- New customer ba
Slide 32: Mobile and stand-alone releases
Release date: March 5th Release date: March 27th Release planned for: summer 2019 Game released The mobile version as a stand-alone product It will not be ported, but fully adapted paid back in a week after Lower entry barrier ---- the launch and is now ---- New control model New customer base ----
Slide 33: Mobile and stand-alone releases
Release date: March 5th Release date: Release planned for: March 27th summer 2019 The mobile version paid back in a week It will not be ported, after the launch Game released as a but fully adapted and is now another stand-alone product ---- source of revenue New control model ---- Lower entry barri
Slide 34: Mobile and stand-alone releases
Release date: March 5th Release date: March 27th Release planned for: summer 2019 The mobile version Game released paid back in a week as a stand-alone product after the launch It will not be ported, and is now another Lower entry barrier but fully adapted source of revenue ---- ---- New customer ba
Slide 35: Cross-platform: publishing
CROSS-PLATFORM PUBLISHING VP Vivad VP AV VAv’d VV AV OV
Slide 36: Cross-platform: marketing
CROSS-PLATFORM — VP Vivad VP AV VAv’d VV AV OV
Slide 37: Close cooperation means new opportunities and marketing tools
Close cooperation means new opportunities and marketing tools
Slide 38: Xbox One Nindies showcase
A) XBOX ONE (| Nindies showcase
Slide 39: The first publisher week
THE FIRST PUBLISHER WEEK earned us more in just 7 days than the first 3 years of our presence on STEAM
Slide 40: Xbox dashboard campaign
XBOX DASHBOARD CAMPAIGN the first dedicated campaign, run directly on consoles
Slide 41: Event presence: Children of Morta
EVENT PRESENCE Children of Morta at the Nintendo and Microsoft stands in London
Slide 42: Nindies/Blockbusters official partner channels
NINDIES/BLOCKBUSTERS We are present in official partner channels
Slide 43: Summary: what multiplatformity means
SUMMARY FOR 11BIT STUDIOS, MULTIPLATFORMITY MEANS THAT: 11BIT PORTFOLIO WILL BE AVAILABLE 11bit portfolio Simultaneous ON ALL KEY PLATFORMS Greater marketing available releases and sales potential on key platforms (current/next gen) GAMES WILL BE RELEASED SIMULTANEOUSLY FOR PCs AND CONSOLES
Slide 44: Strong portfolio
- - As la 4 ee RAE 8 d STRONG PORTFOLIO VP Vivad VP AV VAv’d Vr AV OV
Slide 45: Portfolio visual aid placeholder
Remember how you pictured the visual aid showing the development of our studio? Now, do the same please for our portfolio. You know, a shelf with boxes on it. Each one cute as a button, with a logo and stuff. Lovely as a flower.
Slide 46: Q1 2019 revenue higher than Q1 2018
In Q1 2019, the game generated higher revenue than in Q1 2018
Slide 47: More than 4,500,000 copies sold
To date, the game has been sold in more than 4,500,000 copies on all platforms
Slide 48: Content updates and community growth
• We have published 5 large content updates • Since its release, the Steam community has almost tripled, and total media reach has quadrupled • Very positive reviews: • 84% steam reviews • 84% metascore
Slide 49: Available for PC, more than 1,400,000 copies sold
At present, the game is available only for PCs and so far has been sold in more than 1,400,000 copies
Slide 50: First paid DLC and season pass
• We will release the first paid DLC of a scale comparable to the main scenario • A season pass will be available for the second season of the game • We are preparing two announcements related to our IPs
Slide 51: Spring quotation
4p gush of pird song, a patter A cloud and a rainbow’s warning; Snddenly sunshine and perfect blue An-April day in the morning!” - Harriet Elizabeth Prescott Spofford
Slide 52: Available on all current generation consoles
• The game is available on all current generation consoles • Total sales exceeded 500,000 copies, including more than 140,000 copies for NINTENDO SWITCH • This year, we will release the first large paid DLC
Slide 53: Moonlighter released in Japan
MOONLIGHTER has been released in Japan today This is the first official release by 11bit on the Japanese market (digital + box version to be released soon)
Slide 54: Release planned for summer 2019
• Release planned for: summer 2019 • Wishlists are already two times larger than for: • Moonlighter three months prior to its release • Frostpunk six months prior to its release • Simultaneous release for:
Slide 55: Two new internal projects and publishing
THIS YEAR WE ARE GOING TO START TWO NEW INTERNAL PROJECTS. Z WE HAVE SIGNED TWO PUBLISHING PROJECTS THE FIRST ANNOUNCEMENT EXPECTED BY THE END OF 2019 WE ARE INCREASING THE SCALE OF PUBLISHING INVESTMENTS. (TO PLN 2M >TO PLN 5M/PROJECT)
Slide 56: Expansion
VP Vivad VP AV VAv’d Vr AV OV
Slide 57: 2019 releases and plans
CHILDREN OF MORTA NEW PUBLISHING RELEASE MOONLIGHTER / THIS WAR OF MINE / BEAT COP RELEASES FOR NEW PLATFORMS JAPANESE MARKET THE FIRST OFFICIAL RELEASE BY 11BIT FROSTPUNK / MOONLIGHTER LAUNCHES OF PAID ADD-ONS TWO NEW PUBLISHING CONTRACTS DEVELOPMENT OF THE PUBLISHING BUSINESS LAUNCH OF TWO INTERNA
Slide 58: New distribution channels
In addition to regular sales, we explore new distribution channels to further consolidate our business position We are in the process of finalising a numberof agreements with key partners:
Slide 59: Agreements totalling USD 3,000,000
TOTALLING 4 USD 3,000,000 this year's revenue | no cannibalisation of sales expanding the customer base | stronger visibility of our games VP Vivad VP AV VAv’d Vr AV OV
Slide 60: New objectives
~ 4 ~NEW -OBJECTIVES _ VP Vivad VP AV VAv’d Vr AV OV
Slide 61: Medium-term objectives
LARGER SCALE AND COMMERCIAL POTENTIAL Presence on key platforms (larger market, larger commercial potential) 3 parallel internal projects (one major release a year) 4 releases a year (publishing) /medium-term objectives/
Slide 62: Make Your Mark 11 bit studios
Make YOUR rok oe bit SeUdiIOS