Starbreeze Ab Class A · OMXSTO:STAR_A
Starbreeze Ab Class A — Q3 2023 Earnings Presentation
34 slides from Starbreeze Ab Class A's earnings presentation, Nov 16, 2023
Slide 1: Building Community by Making Games
starbreeze.com Building Community by Making Games Third Quarter 2023 2023-11-16
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. Quarter and Period in Brief 3. Our Games 4. Third Party Publishing & Other Projects 5. Group Financials 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 597.9 INITIAL PUBLIC OFFERING EBITDA, SEKm (R12) 2000 479.3 PERSONNEL CASH & CASH EQUIVALENTS, SEKm 187 312.9 7
Slide 8: 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 9: 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 9
Slide 10: 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 – where you really work gameplay experience embodying ico
Slide 11: 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 12: Quarter & Period in Brief
Quarter & Period in Brief 02 12
Slide 13: Key takeaways
Quarter & Period in Brief Key takeaways PAYDAY™ 3 launched, Starbreeze recoup reached as of September 30th Resolved SEK 380m in debt (book value), limited indebtness Cash and cash equivalents of SEK 313m end of quarter High activity in Third Party Publishing, building breadth and depth First free DL
Slide 14: Financial update Q3 2023
Quarter & Period in Brief Financial update Q3 2023 NET SALES, SEKm PROFIT/LOSS AFTER TAX, SEKm 494.4 (38.7) 299.8 (-7.5) EBITDA, SEKm 441.8 (24.4) DEPRECIATION, AMORTIZATION & IMPAIRMENT, SEKm 142.0 (15.4) 14
Slide 15: Explaining Starbreeze' revshare
Quarter & Period in Brief Explaining Starbreeze’ revshare STARBREEZE REVENUE SHARE AFTER DEDUCTION FOR RUNNING COSTS AND INVOICED RUNNING COST (POSITIVE CASH FLOW EFFECT WHEN CASH IS RECEIVED): PRELIMINARY TOTAL REVENUE FROM PAYDAY 3 UP UNTIL SEPTEMBER 30, AFTER DEDUCTION OF SEK 193.7m PAYDAY 3 REVE
Slide 16: PAYDAY 3 launch in numbers
Quarter & Period in Brief PAYDAY™ 3 launch in numbers Monthly Active Users (MAU) “Year-1” Paid DLCs 3,167,938 4 packages Peak Daily Active Users (DAU) Announced Free DLCs 1,347,510 1 (so far…) Peak Concurrent Players (CCU) Available on: >220,000 . 16
Slide 17: Operational Summary
Quarter & Period in Brief Operational Summary PAYDAY at New York Fashion Week PAYDAY™ 3 launched Sept 21st Roboquest 1.0 launched Turtle vs Turtle launched GodsTV announced – release in 2026 PAYDAY™ 3 free update, two new heists 17
Slide 18: Our Games
STARBREEZE Our Games
Slide 19: Our Projects
Our Games Our Projects OWN TITLES 2026 2027 STATUS: RELEASED 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 SERVICE
Slide 20: Starbreeze Entertainment
starbreeze.com STARBREEZE ENTERTAINMENT
Slide 21: PAYDAY 2 KPI development
Our games PAYDAY™ 2 KPI development Base game vs DLC split Breakdown of MAU development last PD2 Steam launch to Starbreeze’s revenues Peak CCU per month 12 months date from Steam by region % 100 000 1 800 000 100 4 46 55 53 78 71 67 73 76 77 77 Oceania, 3% Middle East, 1% 96 Latin America, 4% 1 500
Slide 22: Third Party Publishing & Other Projects
Third Party Publishing & Other Projects 04 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 >150 • Looking for games with Games currently in review Starbreeze pillars
Slide 24: Roboquest 1.0
Third Party Publishing & Other Projects Roboquest 1.0 Steam® reviews, positive Units, Early Access W1 vs 1.0 launch W1 94 percent +850 percent Peak Daily Active Users (DAU) GaaS roadmap ~100,000 To Be Announced Average increase in DAU Available on: +1,000 percent 24
Slide 25: GodsTV
Third Party Publishing & Other Projects GodsTV About: A multi-player “cartoon punk”, top down action title, stylized, irreverent and frantic, set for release in early 2026. Starbreeze will support Melbot Studios with funding for the game’s development, marketing, community management and release man
Slide 26: Turtle vs Turtle
Third Party Publishing & Other Projects Turtle vs Turtle About: Turtle vs Turtle is a Fortnite Island where two giant moving battle platforms set the stage for an epic conflict! The game is played in two teams (1 vs 1 to 8 vs 8 ) and players need to gather resources around the map to fund the buildi
Slide 27: The Tribe Must Survive
Third Party Publishing & Other Projects The Tribe Must Survive About: Set in a gloomy lovecraftian stone age The Tribe Must Survive is about finding ways to grow and to protect your tribe from what lurks in the shadows around it. All your tribe members have their own personality and AI-will and gene
Slide 28: Group financials
Group financials Group financials 05 28
Slide 29: Revenue development – growth in PAYDAY
Group financials Revenue development – growth in PAYDAY 90% 97% 99% 94% 99% 93% 96% 99% 100% 34.7m 31.1m 23.5m 31.8m 38.7m 33.6m 26.7m 43.2m 494.4m • Net sales for Q3 2023 totaled to SEK 494.4m (31.8m). SEKm • Massive growth in revenues 490,0 6,3 in total as for PAYDAY as franchise due to the releas
Slide 30: EBITDA development
Group financials EBITDA development SEKm 500 479,4 • EBITDA in LTM Q3 2023 amounted to SEK 479.4m (62.7m) 400 • A special quarter with the PAYDAY 3 release leads to extraordinary figures 300 incomparable to anything reported in the past. 200 100 64,6 74,9 62,7 66,4 65,9 61,9 55,1 56,4* 56,9 58,2 0 L
Slide 31: Cashflow development
Group financials Cashflow development SEKm YTD 2023 1. 1 Operating activities after changes in working capital, SEK 302 313 51.9m 2. 2 Investing activities, SEK -148.9m (game development) 3 3. Financing activities, 157 52 SEK 301.6m (share 129 issue 414.2m, 108 convertible loan 83 -149.0m, financing
Slide 32: Operating expenses
Appendix Operating expenses Cost base development SEKm NOTE Q3’23 Q3’22 2022 Direct costs for Q3’23 amounted to SEK 164.7m (16.0m) and consists of costs Direct costs A 164,677 16,007 60,527 A related to game development, depreciations of IP:n, royalty payments and non-activatable personnel expenses.
Slide 33: Balance sheet
Appendix Balance sheet Assets Liabilities As per December 31, 2022 As per Sept 30, 2023 SEKm SEKm • Intangible assets amounted • Non-current liabilities to SEK 540m and consist amounted to SEK 2.4m, Current primarily of IP rights SEK including Current 52 assets Current assets 172 161m, capitalized c
Slide 34: Building Community by Making Games
starbreeze.com Building Community by Making Games 34