Embracer Group Ab Class B · OMXSTO:EMBRAC_B
Embracer Group Ab Class B — Q3 2023 Earnings Presentation
24 slides from Embracer Group Ab Class B's earnings presentation, Feb 16, 2023
Slide 1: Q3 FY 2023/24 Embracer Group Interim Report
Q3 FY 2023/24 EMBRACER GROUP INTERIM REPORT OCTOBER – DECEMBER 2023
Slide 2: Disclaimer
INTERIM REPORT Q3 FY 2023/24 Disclaimer IMPORTANT INFORMATION – PLEASE READ THE FOLLOWING BEFORE CONTINUING READING express or implied, is made by the Company or any of its affiliates, directors, advisors, employees and representatives as to the accuracy, completeness or verification of any informat
Slide 3: Highlights
Interim Report Q3 FY 2023/24 Highlights Net Sales Group YOY GROWTH SEK 12,050m 4% Our diverse business delivered an all-time high quarter GROUP ORGANIC GROWTH GROUP PRO FORMA GROWTH -4% -2% Tracking towards capex and opex targets as we approach the final stretch of the program Adjusted EBIT YOY GROW
Slide 4: Operating segments
1. Operating segments
Slide 5: PC/Console games
PC/Console games NET SALES REVENUE SPLIT SEKm & ADJUSTED EBIT MARGIN BACK CATALOG SALES | SEKm TOP 10 BACK CATALOG 2,500 40% 4,000 3,379 35% 32% 2,000 2,107 30% 3,000 25% 2,066 1,500 1,653 20% 2,000 16% 14% 15% 1,000 469 10% 1,000 5% 0 0% 500 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 21/22 FY 22/23 FY 23/24 0 B
Slide 6: Project ROI (Contribution / Investment)
PC/Console Games PROJECT ROI (CONTRIBUTION/INVESTMENT) DETAILS >100 14.0 Average title project data: • Based on reported numbers until 13.0 Sales 272 SEKm, Contribution 193 SEKm and Investment 87 SEKm. December 31, 2023 12.0 • Sample includes projects with sales SEK 24.5 bn above 40 SEKm or investme
Slide 7: Investments and completed game development
PC/Console Games Investments and completed game development INVESTMENTS AND COMPLETED GAME DEVELOPMENT* | SEKm TTM SEK 9,728m 8,000 in capitalized development as of Q3 3.5x 7,000 2.9x 3.0x 2.9x 6,487 6,000 2.6x 2.5x 5,000 2.3x 5,162 2.0x 2.0x 4,000 1.8x 1.8x 1.7x 1.5x 1.5x 3,000 3,140 3,204 3,009 1.
Slide 8: Strong pipeline of new games in Q4
PC/Console Games Strong pipeline of new games in Q4 RELEASED BEFORE THE REPORT Q4 FY 2023/24 MAY 2024 Source: as of December 31, 2023 | Release slates can be subject to change, and will in this case be communicated through their respective publisher 8
Slide 9: Mobile Games
Mobile Games NET SALES SEKm & ADJUSTED EBIT MARGIN DAILY ACTIVE USERS & MONTHLY ACTIVE USERS NET SALES DRIVERS 2,000 70% 350 140 million 60% 300 120 1,500 1,642 292 283 1,545 1,573 50% 250 100 Sudoku.com Alien Invasion Blockudoku 200 236 37% 80 40% 1,000 29% 611 30% 150 60 23% 100 500 34 34 20% 40 3
Slide 10: Tabletop Games
Tabletop Games NET SALES SEKm & ADJUSTED EBIT MARGIN STRONG PIPELINE 5,000 40% 4,500 35% 4,000 4,425 4,146 30% 3,500 3,000 25% RELEASED AFTER THE QUARTER 2,500 21% 19% 20% 2,000 832 15% NEW RELEASES 1,500 10% 1,000 500 5% 0 0% Q3 Q4 Q1 Q2 Q3 FY 22/23 FY 23/24 Net Sales Adjusted EBIT Margin, % Adjust
Slide 11: Entertainment & Services
Entertainment & Services NET SALES SEKm & ADJUSTED EBIT MARGIN 3,000 30% 2,500 2,604 25% 2,328 2,000 20% 1,500 15% 1,360 12% 1,000 305 10% 8% 8% 500 5% 0 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 21/22 FY 22/23 FY 23/24 THEATRICAL RELEASE OF THE LORD OF THE RINGS: THE WAR OF THE ROHIRRIM, Net Sales Adjusted
Slide 12: Market update
OPERATING SEGMENTS Market update GLOBAL VIDEO GAMES MARKET REVENUE FORECAST GLOBAL MARKET USD billion Forecast PC1 Console1 expected to grow by expected to grow by +3% +4% 3% 205 193 197 189 in 2024 in 2024 183 184 179 COVID PEAK 144 Mobile1 Tabletop2 expected to grow by grew by +2% +0.4% in 2024 Yo
Slide 13: Financial performance
2. Financial performance
Slide 14: Financial development
FINANCIAL PERFORMANCE | Q3 Financial development GROSS MARGIN DEVELOPMENT | SEKm DEVELOPMENT OF MARKETING EXPENSES | SEKm 14,000 100% 1,400 25% 12,000 90% 1,200 11,622 12,050 20% 80% 20% 10,000 1,000 733 66% 70% 881 646 8,000 56% 57% 800 60% 15% 50% 6,000 600 10% 40% 10% 4,000 5,091 30% 400 8% 20% 2
Slide 15: Cash flow and net debt
FINANCIAL PERFORMANCE | Q3 Cash flow and net debt FY23/24 FY22/23 TTM Dec. 31, Dec. 31, March 31, SEKm SEKm Q3 Q3 Q3 2023 2022 2023 Adjusted EBITDA 3,269 3,005 10,827 Cash 3,683 6,198 4,662 Cash Tax -266 -361 -896 Current investments - - 18 Other items -349 34 -1,229 Current liabilities to credit in
Slide 16: EBITDAC by Segment
FINANCIAL PERFORMANCE | Q3 EBITDAC by Segment PC/CONSOLE GAMES | SEKbn TTM MOBILE GAMES | SEKbn TTM 8.0 2.0 1.8 1.8 6.0 6.9 1.5 5.7 4.0 1.0 2.0 0.5 0.0 0.0 0.0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -1.2 -2.0 FY 21/22 FY 22/23 FY 23/24 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 21/22 FY 22/23 FY 23/24 Adjusted EBITDA Capex EBITDA
Slide 17: EBITDAC for the Group and excluding PC/Console
FINANCIAL PERFORMANCE | Q3 EBITDAC for the Group and excluding PC/Console TOTAL | SEKbn TTM TOTAL EXCLUDING PC/CONSOLE | SEKbn TTM 10.8 10.8 10.0 10.0 9.5 8.0 8.0 7.8 6.0 6.4 6.0 6.1 5.1 4.4 4.3 4.0 4.0 3.4 3.9 3.0 3.3 2.0 2.0 0.7 0.9 0.0 0.0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 18: Forecast
FINANCIAL PERFORMANCE | Q3 Forecast FORECAST ADJUSTED EBIT Financial Year 2023/24 SEK 7,000 – 9,000 million For the overall group, we reiterate our Adjusted EBIT forecast of SEK 7.0-9.0 billion in FY 2023/24, and now see it as likely that we will reach the low-end of the forecast range. This is dr
Slide 19: Update on restructuring program
3. Update on restructuring program
Slide 20: Today's speaker
UPDATE ON RESTRUCTURING PROGRAM | Q3 Today’s speaker PHIL ROGERS INTERIM CHIEF STRATEGY OFFICER
Slide 21: Update on restructuring program
UPDATE ON RESTRUCTURING PROGRAM | Q3 Update on restructuring program Improve efficiency and cash generation, transforming Capex Opex Net debt SEK 2.9bn+ annual SEK 0.8bn+ annual Below Objective Embracer into a leaner, stronger, more focused and Targets savings* in FY24/25 savings* SEK 8.0bn by cash
Slide 22: Slide 22
Slide 23: Q&A
Q&A Until ~10:00 CET
Slide 24: Embracer Group
EMBRACER* GROUP