Starbreeze Ab Class A · OMXSTO:STAR_A

Starbreeze Ab Class A — Q1 2022 Earnings Presentation

23 slides from Starbreeze Ab Class A's earnings presentation, March 2022

  1. Slide 1: Presentation 1 January–31 March 2022

    PRESENTATION 1 JANUARY–31 MARCH 2022

  2. Slide 2: Today's presenters

    Today’s presenters Tobias Sjögren, CEO Mats Juhl, CFO Background: Former CEO of White Wolf Entertainment, previous Background: CFO of Mips AB (publ.), CFO of Tengbomgruppen AB, positions at Paradox Interactive, Stardoll and international video CFO of Sweden Arena Management KB (Friends Arena), Finan

  3. Slide 3: Stepping up to the next level

    • HIGHLIGHTS • STARBREEZE & STRATEGY • THE BUSINESS • FINANCIALS Stepping up … … to the next level 4

  4. Slide 4: Highlights

    HIGHLIGHTS

  5. Slide 5: Summary Q1

    HIGHLIGHTS Summary Q1 • PAYDAY 3, Development according to plan • PAYDAY 2, MAU + 800k in line with previous year • PAYDAY 2, facing high growth numbers in 2021, hence a decrease in Q1 2022 • New IP, we have started the development of a new IP for future game release 6

  6. Slide 6: Summary Q1

    HIGHLIGHTS Summary Q1 • Net sales growth -15.7% SEKm Q1 2022 Q1 2021 R12M 2021 • PAYDAY -13.4% Net sales 23,532 27,923 121,299 125,689 Highest MAU during • Adj. EBITDA* decrease SEK -18.0m Q1 2022: 801,974 EBITDA 4,554 22,595 -11,742 6,268 • Profit before tax decrease SEK -19.5m ____________________

  7. Slide 7: Starbreeze & Strategy

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  8. Slide 8: Long-term game developer, with a big community

    STARBREEZE & STRATEGY Long-term game developer, with a big community • Owns one of the strongest brands in the games industry – PAYDAY • Focuses on its core business of developing great games for PC and console • Proven track record in developing long-term value for its games • Experienced managemen

  9. Slide 9: Create value beyond the gaming experience

    STARBREEZE & STRATEGY Create value beyond the gaming experience The four pillars for success Developing Games as a games, IP and Service beyond A co-creating The place community to be 10

  10. Slide 10: The Business

    THE BUSINESS | unaudth

  11. Slide 11: Net Sales and EBITDA

    THE BUSINESS Net Sales and EBITDA Net Sales 95% 99% EBITDA* SEKm SEKm FY 2021 125.7m 23.5m Q1 2022 2021 FY: SEK 74.9m 2022 Q1: SEK 4.6m SEKm SEKm 60 25 50 20 40 30 15 20 10 10 5 0 -10 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 0 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 EbitDA PAYDAY 2 Ot

  12. Slide 12: The PAYDAY franchise

    THE BUSINESS The PAYDAY franchise Co-op for PC and console PAYDAY franchise in gross sales >300m USD Installed base >36,000,000 DLCS and updates >220 Steam community members >7,900,000 13

  13. Slide 13: PAYDAY – KPI development

    THE BUSINESS PAYDAY 2 – KPI development PAYDAY–Peak CCU per month PAYDAY 2– Base game vs DLC split PD2 Steam launch to date1 CCU per month % 70 000 100 4 46 55 53 78 71 67 73 76 96 60 000 80 50 000 60 40 000 54 30 000 40 47 45 20 000 33 20 29 27 22 24 10 000 0 0 2013 2014 2015 2016 2017 2018 2019 20

  14. Slide 14: A big community creates opportunities

    THE BUSINESS A big community creates opportunities A key factor in PAYDAY’s success is the involvement of players in the product, which includes maintaining a close dialogue between developers and fans Breakdown of Starbreeze’s revenues “ Since 2018, the company has established the world’s largest g

  15. Slide 15: Strong foundation for a successful launch of PAYDAY 3

    THE BUSINESS Strong foundation for a successful launch of PAYDAY 3 A strong franchise built over eight years Launch of PAYDAY 3 Large installed base Strong Reviews Well established Multiple platforms Games as a service Community Simultaneous launch on A game designed around >36,000,000 89/100 PC and

  16. Slide 16: A solid foundation to deliver and grow

    THE BUSINESS A solid foundation to deliver and grow Roadmap 2022 2023–2024 2025 and beyond Core focus creates ... into a broadened IP ... to become a GaaS capacity for growth ... portfolio ... leader – building games, IP and beyond. • Secure PD3 development and quality • Launch of PD3 and focus on L

  17. Slide 17: Financials

    FINANCIALS

  18. Slide 18: Revenue development – growth in PAYDAY

    FINANCIALS Revenue development – growth in PAYDAY 95% 97% 94% 96% 98% 90% 97% 99% • Net sales for Q1 31,3m 32.0m 32.6m 27.9m 32.0m 34.7m 31.0m 23,5m 2022 totaled to SEK 23.5m compared to SEK 27.9m in Q1 SEKm 2021. 60,0 50,0 • PAYDAY negative 40,0 6,4 10,0 2,4 growth of -13.4% Q1 1,7 4,9 3,3 2022, co

  19. Slide 19: Operating expenses

    FINANCIALS Operating expenses Cost base development SEKm NOTE Q1-22 Q1-21 2021 A Direct costs for Q1’22 amounted to SEK 14,0m, compared to SEK 11.6m Direct costs A 13,965 11,590 56,302 in Q1’21, and consist of costs related to game production and game development. 10.5 million of direct cost relates

  20. Slide 20: EBITDA development

    FINANCIALS EBITDA development SEKm 25 • *Adjusted EBITDA, adjusted for one 22,6 time effect related to PopReach 19,9 licensing agreement in Q2 2021. 20 16,8* • EBITDA in Q1 2022 mainly impacted 15,5 15,6 by lower sales, higher personell cost 15 for LTI, non activated personell 11,7 costs and increas

  21. Slide 21: Balance sheet

    FINANCIALS Balance sheet Assets Liabilities As per March 31, 2022 As per March 31, 2021 • Intangible assets amounted to • Non-current liabilities SEK 471m and primarily amounted to SEK 453m, SEKm SEKm consists of IP rights SEK compared to 338m in 2021, 192.9m, capitalized costs for including Current

  22. Slide 22: Cashflow development

    FINANCIALS Cashflow development 1.1 Operating activities SEKm Q1-2022 after changes in working capital, 157,4 19,2 SEK 19.2m 128,6 2.2 Investing activities, 112,6 SEK -31,2m - 31,2 - 4,1 3.3 Financing activities, 82,8 SEK -4,1m 69,3 Year-End 2018* Year-End 2019* Year-End 2020* Year-End 2021* 1 2 3 E

  23. Slide 23: Thank you!

    THANK YOU! __

Starbreeze — Q1 2022 Earnings Presentation on 6ix