Remedy Entertainment Oy · OMXHEX:REMEDY
Remedy Entertainment Oy — Remedy Entmt — Q3 2024 Earnings Presentation
28 slides from Remedy Entertainment Oy's earnings presentation, Nov 1, 2024
Slide 1: Business Review July–September 2024
Business Review July–September 2024 NOVEMBER 1, 2024 © REMEDY ENTERTAINMENT 2024
Slide 2: Agenda
AGENDA © REMEDY ENTERTAINMENT 2024 1 Q3 2024 Review 2 Q3 Financial Results 3 Outlook 4 Questions & Answers Tero Virtala Santtu Kallionpää CEO CFO
Slide 3: Q3 2024 Review
Q3 2024 Review Tero Virtala, CEO
Slide 4: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS © REMEDY ENTERTAINMENT 2024 ‒ Revenue increased by 128.6% to EUR 17.9 (7.8) million ‒ EBITDA increased to EUR 6.6 (-4.2) million ‒ Operating profit was EUR 2.4 (-5.5) million, and the operating profit margin was 13.4% (-70.0%) ‒ Cash flow from operations was EUR 6.6 (-5.1) million
Slide 5: Current Project and Game Portfolio
CURRENT PROJECT AND GAME PORTFOLIO © REMEDY ENTERTAINMENT 2024 Alan Wake Alan Wake 2 Control FBC: Control 2 Max Payne * Remastered Firebreak 1&2 remake LAUNCHED LAUNCHED LAUNCHED FULL PRODUCTION FULL PRODUCTION READINESS PRODUCTION WITH SELF-PUBLISHED WITH
Slide 6: The Lake House – Alan Wake 2 Expansion
THE” LAKE HOUSE ALAN WAKEI EXPANSION
Slide 7: Alan Wake – A Lot of Activity in Q4
ALAN WAKE 2 – A LOT OF ACTIVITY IN Q4 © REMEDY ENTERTAINMENT 2024 PHYSICAL DELUXE THE LAKE HOUSE THE ANNIVERSARY EDITION EXPANSION UPDATE
Slide 8: We Acquired Back Control Rights
WE ACQUIRED BACK CONTROL RIGHTS, AND THE FUTURE OF BOTH OF OUR FRANCHISES IS IN OUR HANDS © REMEDY ENTERTAINMENT 2024 February 2024: Remedy acquired back Alan Wake 2 published by Epic Games, full rights from 505 Games Remedy owns all the sequel rights
Slide 9: We Evaluated the Model to Best Grow the Franchises
WE EVALUATED THE MODEL TO BEST GROW THE FRANCHISES AND BUILD SUCCESS © REMEDY ENTERTAINMENT 2024 PUBLISHING CO- SELF- BY PARTNER PUBLISHING PUBLISHING
Slide 10: Strategic Partnership with Annapurna Pictures
STRATEGIC PARNERSHIP WITH ANNAPURNA PICTURES © REMEDY ENTERTAINMENT 2024 REMEDY INTERNAL Key terms of the deal Benefits of the deal Financing of the development of Control 2 is shared Allows Remedy to move into self-publishing between Annapurna (50%) and Remedy (50%) Gives both parties good revenue
Slide 11: Convertible Loan from Tencent
CONVERTIBLE LOAN FROM TENCENT © REMEDY ENTERTAINMENT 2024 REMEDY INTERNAL ‒ An unsecured loan of EUR 15 million from Tencent was announced in September ‒ 8% p.a. interest that is capitalized annually ‒ Conversion at a fixed price of EUR 27.20 per share starting from the third anniversary until the f
Slide 12: Self-Publishing Strengthens Our Position and Enables Greater Financial Upside
SELF-PUBLISHING STRENGTHENS OUR POSITION AND ENABLES GREATER FINANCIAL UPSIDE, BUT ALSO REQUIRES MORE FROM US REMEDY INTERNAL © REMEDY ENTERTAINMENT 2024 DEVELOPMENT FEES SHARE OF SALES Self-publishing CONTROL 2* In full In production production readiness Co-publishing Own IP with a publishing partn
Slide 13: © REMEDY ENTERTAINMENT 2024
© REMEDY ENTERTAINMENT 2024
Slide 14: FBC: Firebreak
FBC: FIREBREAK © REMEDY ENTERTAINMENT 2024 REMEDY INTERNAL ‒ A three-player cooperative first-person shooter ‒ A stand-alone experience set within the acclaimed Control universe ‒ Self-published in 2025 ‒ Launches for PC via Steam and Epic Games Store, Xbox Series X|S and PlayStation 5 ‒ Will launch
Slide 15: Q3 Financial Results
Q3 Financial Results Santtu Kallionpää, CFO
Slide 16: Santtu Kallionpää, CFO
Santtu Kallionpää CFO
Slide 17: Q3 2024: Revenue Growth Driven by Development Fees
Q3 2024: REVENUE GROWTH DRIVEN BY THE DEVELOPMENT FEES RELATED TO CONTROL 2 AND MAX PAYNE 1&2 REMAKE © REMEDY ENTERTAINMENT 2024 17.9 0.8 7.9 7.8 17.0 0.4 1.1 7.5 6.7 Q3 2022 Q3 2023 Q3 2024 Royalties (EURm) Development Fees (EURm)
Slide 18: Historical Breakdown of Revenue
HISTORICAL BREAKDOWN OF REVENUE © REMEDY ENTERTAINMENT 2024 +129% 17.9 0.8 13.6 0.9 10.3 10.8 10.3 8.9 1.8 0.9 6.9 1.0 7.8 2.7 17.0 0.5 1.1 12.7 9.0 9.4 7.9 6.7 7.6 6.4 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Royalties (EURm) Development Fees (EURm)
Slide 19: Q3 2024: Profitability Impacted by One-Time Payment Regarding Control 2
Q3 2024: PROFITABILITY IMPACTED BY ONE-TIME-PAYMENT REGARDING CONTROL 2 © REMEDY ENTERTAINMENT 2024 2.4 13.4% -38.4% -3.0 -5.5 -70.0% Q3 2022 Q3 2023 Q3 2024 Q3 2022 Q3 2023 Q3 2024 Operating Profit (EURm) Operating Profit Margin (%)
Slide 20: Q1-Q3 2024: Revenue Has Increased From Previous Years
Q1-Q3 2024: REVENUE HAS INCREASED FROM PREVIOUS YEARS DRIVEN BY STRONG THIRD QUARTER REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2024 +65% 39.0 3.6 30.0 3.4 23.6 2.5 35.4 26.6 21.1 Q1-Q3 2022 Q1-Q3 2023 Q1-Q3 2024 Royalties (EURm) Development Fees (EURm)
Slide 21: Q1-Q3 2024: Profitability Improvement Driven by Revenue Growth
Q1-Q3 2024: PROFITABILITY IMPROVEMENT DRIVEN BY REVENUE GROWTH REMEDY CONFIDENTIAL © REMEDY ENTERTAINMENT 2024 -2.7 -9.0% -7.4% -2.9 -15.9 -67.1% Q1-Q3 2022 Q1-Q3 2023 Q1-Q3 2024 Q1-Q3 2022 Q1-Q3 2023 Q1-Q3 2024 Operating Profit (EURm) Operating Profit Margin (%)
Slide 22: Q3 2024: Own Investments Into Control Franchise Game Projects
Q3 2024: OWN INVESTMENTS INTO CONTROL FRANCHISE GAME PROJECTS SHOW AS A HIGHER LEVEL OF CAPITALIZED DEVELOPMENT EXPENSES © REMEDY ENTERTAINMENT 2024 2.0 2.0 2.2 1.3 1.4 1.7 1.0 1.1 -3.8 -4.3 -4.7 -4.6 -4.9 -5.0 -5.0 -5.7 -6.9 -6.8 -6.5 -7.5 -7.6 -7.6 -7.6 -8.1 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
Slide 23: Q3 2024: Operating Cash Flow Highly Positive
Q3 2024: OPERATING CASH FLOW HIGHLY POSITIVE IN THE THIRD QUARTER OF 2024 © REMEDY ENTERTAINMENT 2024 6.6 3.3 0.9 0.1 -3.8 -3.9 -5.1 -7.0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2023 2023 2023 2024 2024 2024 Operating Cash Flow (EURm)
Slide 24: Q3 2024: Cash Position Increased in the Third Quarter
Q3 2024: CASH POSITION INCREASED IN THE THIRD QUARTER OF 2024 © REMEDY ENTERTAINMENT 2024 55.9 6.8 49.7 9.9 39.0 10.1 31.7 30.4 31.2 27.4 26.1 49.0 10.0 10.3 3.7 10.0 39.8 10.4 28.9 21.7 20.1 22.4 21.2 17.0 Q4 Q1 Q2 Q3 Q4 Q1 2024 Q2 2024 Q3 2024 2022 2023 2023 2023 2023 Cash and Cash Equivalents (EU
Slide 25: Historical Revenue and Profitability Profile
HISTORICAL REVENUE AND PROFITABILITY PROFILE © REMEDY ENTERTAINMENT 2024 FAS IFRS 50 40 44.7 43.6 45 35 41.1 40 39.0 30 35 25.5 33.9 24.1 31.6 25 30 20.6 18.9 17.6 20 25 17.2 11.7 20.1 15 20 9.8 15.5 13.7 16.4 15 10.5 10 11.9 6.1 4.7 10 2.4 3.0 5 1.7 4.7 3.8 -1.3 5 0 0 -5 -7.4 -5 -10 -10 -15 -80 -84
Slide 26: Outlook
Outlook Tero Virtala, CEO
Slide 27: Outlook for 2024 (Unchanged)
OUTLOOK FOR 2024 (UNCHANGED) © REMEDY ENTERTAINMENT 2024 Remedy expects its revenue to increase from the previous year and operating profit (EBIT) to improve. As we have announced earlier, the revenue growth rate and EBIT improvement in 2024 are meaningfully dependent on the choice between different
Slide 28: Contact
Contact: ir@remedygames.com investors.remedygames.com RemedyGames