Slide 1: Corporate Overview May 2021
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Slide 2: We develop, publish and distribute multiplatform video games
WE DEVELOP, PUBLISH AND DISTRIBUTE MULTIPLATFORM VIDEO GAMES 250 talented employees worldwide to create the next big games ▪ STUDIOS: ▪ PUBLISHING: Creation and development of video games based on IP scouting and selection, marketing & PR, an original idea/successful brand/owned IP sales and promoti
Slide 3: Our milestones
OUR MILESTONES In an ever-growing market, expected to reach $204.6 billion in 2023 (2018-2023 7.2% CAGR)* Digital Bros Group develops, publishes and distributes both Premium and Free-to-Play videogames on an international scale. LISTING ON MOBILE AND CONSOLE NEW STUDIOS BORSA ITALIANA DEVELOPER ACQU
Slide 4: IP portfolio
IP PORTFOLIO MAY 2021 1 GROUP 2 GROUP 3 GROUP OWNED INTERNAL CO-OWNED LONG TERM WORLDWIDE IP STUDIOS IP AGREEMENTS PUBLISHING AA Game MAY 2021 4
Slide 5: 505 Games investment selection
505 GAMES INVESTMENT SELECTION TBA game with To minimize the risks, we: AA game • Work with financially independent developers • Have a contractual get-out at prototype MAY 2021 Average investment above €10 million 5
Slide 6: A strong investment plan
A STRONG INVESTMENT PLAN € mil 70 66.6 Based on the current line up, 60 net of any future M&A and/or IP 50 acquisition 42.6 40 38.2 32 28.9 30 23.7 20 14.3 10.6 10.3 8.4 10 0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Act. FY22 FY23 FY24 Act. Act. Act. Act. Act. Act. + Fore. Fore. Fore. Fore. MAY 2021 6
Slide 7: Release schedule
RELEASE SCHEDULE 13 new products expected in FY22 for a total of 38 skus Worldwide multiplatform launch AA Game Q1 Q2 Q3 Q4 4 4 2 A Games A Games A Games MAY 2021 “A games”: brand new titles with a development budget of max €5 million 7
Slide 8: An ongoing complete transformation
AN ONGOING COMPLETE TRANSFORMATION Premium and F2P games revenues* Death Stranding 4% 2% First group: Premium 13% & F2P videogames 19% 31% 30% developed by internal studios or with IP 55% Control, 51% ownership Journey to the 56% Savage Planet, 44% Bloodstained Second group: Premium & F2P videogames
Slide 9: Covid-19 update
COVID-19 UPDATE The impact of the pandemic Worldwide higher videogame demand Growth in digital revenues and significant increase in Digital Bros’ operating margins Drastic reduction of retail and distribution revenues The response of the Group Roll-out of business continuity plan including work from
Slide 10: Financial results
MAY 2021
Slide 11: P&L – FY21 Q3 Actual
P&L – FY21 Q3 ACTUAL Euro million 31.03.21 31.03.20 Change Change % Gross revenue 115.4 99.1 16.3 16.4% Gross operating margin (EBITDA) 45.9 20.6 25.3 x2.5 Operating margin (EBIT) 25.0 10.2 14.8 x2.5 Profit/(loss) before tax 28.3 9.9 18.4 x3 Net profit/(loss) 20.3 6.4 13.9 x3 FI S CA L YEAR ENDING J
Slide 12: Revenue breakdown by segment
REVENUE BREAKDOWN BY SEGMENT FY21 Actual + Forecast 3.5% 0.4% 7.2% 88.9% Premium Games Free to Play Italian Distribution Other Projects MAY 2021 12 12
Slide 13: Revenues trend - digital and retail
REVENUES TREND - DIGITAL AND RETAIL 10% OUR DIGITAL PARTNERS: 30% 40% 60% 86% 98% 90% 70% 60% 40% 2% 14% FY12 Act. FY13 Act. FY15 Act. FY19 Act. FY20 Act. FY21 Act+Forecast Digital/Mobile Retail MAY 2021 13 13
Slide 14: Premium Games – FY21 Q3 Actual
PREMIUM GAMES – FY21 Q3 ACTUAL Euro million 31.03.21 31.03.20 Change Change % Gross revenue 102.8 86.8 16.0 18.5% Net revenue 101.6 81.3 20.3 25.0% Gross operating margin 47.3 24.8 22.5 90.6% (EBITDA) Operating margin (EBIT) 27.9 16.6 11.3 68.0% FI S CA L YEAR ENDING JUNE 30 th , 2021 SOURCE: DIGITA
Slide 15: Revenues by country / area
REVENUES BY COUNTRY / AREA FY21 Q3 YTD – Premium Games Digital Revenues ROE 16% United States 38% UK 7% France 3% Germany 6% APAC 5% China Americas 10% Far East 7% 7% MAY 2021 15
Slide 16: Free to Play – FY21 Q3 Actual
FREE TO PLAY – FY21 Q3 ACTUAL Euro million 31.03.21 31.03.20 Change Change % Gross revenue 8.5 5.1 3.4 65.2% Net revenue 8.5 5.1 3.4 65.2% Gross operating margin 4.5 1.2 3.3 n.m. (EBITDA) Operating margin (EBIT) 3.9 (0.8) 3.1 n.m. FI S CA L YEAR ENDING JUNE 30 th , 2021 SOURCE: DIGITAL B RO S - F2P
Slide 17: Outlook for full-year revenues and margins
Thanks to Q3 positive revenue trend and Q4 forecasts, the Group expects higher full- year revenues and higher operating margins compared to FY20. In a constantly growing videogames market, the group continues to reinvest a large portion of its cash flow in the acquisition and development of new IPs
Slide 18: Investments and acquisitions
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Slide 19: Starbreeze investment
STARBREEZE INVESTMENT – Starbreeze AB (SB) is a Swedish videogame developer and publisher owner of the famous PAYDAY IP t h a t suc c e ssful ly exited a reconstruction period on December 6th, 2019. – In February 2020 Digital Bros acquired all Starbreeze assets held by Smilegate Holdings for €19.2 m
Slide 20: Infinity Plus 2 acquisition
INFINITY PLUS 2 ACQUISITION Continuously growing our IP portfolio - Infinity Plus 2 (IP2) is a videogame development studio located in Melbourne , Australia and founded by industr y veteran Steven Fawkner in 1989. - Specialized in the creation of original intellectual proper ties, puzzle and strateg
Slide 21: Shaping the next generation of game developers
Shaping the next generation of Game Developers - Founded in 2014, Digital Bros Game Academy (DBGA) is a Milan-based academy dedicated to all young talent wishing to pursue a career in the gaming industry. - With courses in Game Design, Game programming, Concept Art or Game Art 3D, the Academy foster
Slide 22: Key games
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Slide 23: Assetto Corsa
• ASSETTO CORSA IS THE #1 RACING SIMULATOR WITH 12 MILLION COPIES SOLD AND REVENUES OF MORE THAN € 66 MILLION • NEW EPISODE ASSETTO CORSA COMPETIZIONE: OFFICIAL GAME OF THE BLANCPAIN GT SERIES (3 YEARS PARTNERSHIP) • FULLY LICENSED GT CARS FROM TOP MANUFACTURERS: FERRARI, LAMBORGHINI, MCLAREN • UNIQ
Slide 24: Control
• CINEMATIC THIRD PERSON ACTION GAME BUILT ON REMEDY’S PROPRIETARY NORTHLIGHT® TECHNOLOGY • DEVELOPED BY REMEDY ENTERTAINMENT, DEVELOPER OF AAA VIDEO GAMES (MAX PAYNE, ALAN WAKE AND QUANTUM BREAK) • WORLDWIDE PUBLISHING RIGHTS ON PC, PS4, PS5, XBOX ONE & XBOX SERIES X • PUBLISHING PARTNERSHIP WITH E
Slide 25: Bloodstained
• LATEST CREATION OF KOJI IGARASHI, THE FORMER SERIES PRODUCER OF THE CASTELVANIA FRANCHISE • WORLDWIDE PUBLISHING RIGHTS ON PC AND ALL CONSOLE FORMATS • HIGH METACRITIC SCORE (AVG. 81) • € 30.2 MILLION LTD REVENUES - MORE THAN 1 MILLION COPIES SOLD • EXPECTED LIFETIME REVENUES OF AT LEAST € 30 MILL
Slide 26: The Ascent
• FIRST PERSON CYBERPUNK ACTION VIDEOGAME SET IN A GRIM, DYSTOPIAN FUTURISTIC WORLD • DLCs LAUNCH PROGRAM (First DLC released in December 2020) • IP BUY-OUT OF € 5 MILLION EXERCISED IN APRIL 2021 • € 8.2 MILLION LTD REVENUES – MORE THAN HALF A MILLION COPIES SOLD TO DATE • HIGH METACRITIC SCORE (AVG
Slide 27: Death Stranding
• GROUNDBREAKING EXPERIENCE FROM LEGENDARY GAME CREATOR HIDEO KOJIMA • CONSOLE VERSION PUBLISHED BY SONY INTERACTIVE ENTERTAINMENT IN NOVEMBER 2019 • WORLDWIDE PUBLISHING RIGHTS ON PC FOR DIGITAL BROS • € 23.2 MILLION LTD REVENUES - EXPECTED LIFETIME REVENUES IN EXCESS OF € 50 MILLION • HIGH METACRI
Slide 28: Upcoming JRPG title
• LATEST JRPG CREATION OF YOSHITAKA MURAYAMA AND JUNKO KAWANO, THE FORMER CREATORS OF SUIKODEN AND CASTLEVANIA • CO-OWNERSHIP OF THE IP & WORLDWIDE PUBLISHING RIGHTS ON PC AND ALL CONSOLE FORMATS • PARTIALLY FUNDED BY THE LARGEST VIDEOGAME KICKSTARTER OF 2020, RAISING A TOTAL OF JPG 482 MILLION (USD
Slide 29: Puzzle Quest 3
• DEVELOPED BY THE NEWLY ACQUIRED STUDIO INFINITY PLUS 2 • F2P PUZZLE HYBRID THAT FEATURES HERO CLASSES WITH DEEP RPG MECHANICS AND 1vs1 BATTLES IN A FULLY 3D GAME WORLD • A NEW INSTALLMENT TO ORIGINAL SERIES FIRST RELEASED IN 2007, AND WITH SPIN-OFFS IN PARTENERSHIP WITH MARVEL AND CARTOON NETWORK
Slide 30: Hawken
• MECH GENRE: COLLECT, BUILD AND CUSTOMIZE YOUR MECH • STRONG F2P SYSTEM WITH PVE ELEMENTS • LARGE POPULATION OF GAMERS • THE ACTUAL PRODUCTION IS NOT JUST A SEQUEL: • New game design • Objective-based PVE to maximize revenues without being “pay-to-win” & to create sustainable long-term product grow
Slide 31: Digital Bros S.p.a. contact details
Digital Bros S.p.a. Via Tortona, 37 20144 Milan, Italy www.digitalbros.com