Embracer Group Ab Class B · OMXSTO:EMBRAC_B
Embracer Group Ab Class B — Merger or Acquisition (December 2021)
18 slides from Embracer Group Ab Class B's merger presentation, Dec 21, 2021
Slide 1: Embracer Group enters into agreement to acquire Perfect World Entertainment
Embracer Group enters into agreement to acquire Perfect World Entertainment 21 December 2021
Slide 2: Disclaimer
DISCLAIMER IMPORTANT INFORMATION – PLEASE READ THE FOLLOWING BEFORE CONTINUING READING This presentation (the “Presentation”) has been prepared by Embracer Group AB (“Embracer” or the “Company”) and is provided for information purposes only. By attending a meeting where this Presentation is presente
Slide 3: Gearbox Entertainment acquires Perfect World Entertainment (PWE)
GEARBOX ENTERTAINMENT ACQUIRES Perfect World Entertainment (PWE) (PWE) TODAY’S SPEAKERS: LARS WINGEFORS RANDY PITCHFORD YOON IM JASON PARK CEO, Founder Founder CEO VP, Business Development (PWE) P. 3
Slide 4: (PWE)
(PWE) 12/6/2021 © 2020 Perfect World Entertainment Inc. All rights reserved P. 4
Slide 5: Who We Are / Our Mission
(PWE) WHO WE ARE We are gamers, with a passion for sharing the joy of playing games with the epic video games we help bring to life. From iconic franchises to hidden gems from up-and-coming studios, we publish games that challenge and entertain players who seek the thrill of the unexpected. OUR MISS
Slide 6: Geographic Footprint
GEOGRAPHIC FOOTPRINT (PWE) AMSTERDAM (PWEP EU HQ) REDWOOD CITY (PWEP NA HQ) LOS GATOS (Cryptic HQ) ● Founded: 2000 (Cryptic) and 2008 (PWE Publishing) REDWOOD CITY ● Employee Count: 136 (Cryptic) and 101 (PWE Publishing) ● HQ: Los Gatos, CA (Cryptic), Redwood City, CA (PWEP NA), LOS GATOS Amsterdam,
Slide 7: History
HISTORY (PWE) 2008~2011 2011~2013 Coming to America Local Dev. & 3rd Party ● Focused on bringing PW MMOs to Western markets. ● Acquired Cryptic in 2011 from Atari. ● Launched 8 MMOs in 3 years. ● Started licensing business with 3rd party games. ● Profitable in the 1st 3 month. ● Launched Neverwinter
Slide 8: History
HISTORY (PWE) 2014~2016 2017~2021 Platform & Console Premium Games ● Expanded our premium games business by launching ● Launched Arc in 2014. Remnant and Torchlight 3. ● First F2P MMO for Xbox One and PS4. ● Expanded our supported platforms to Switch with Torchlight 2/3 and Hob. P. 8
Slide 9: PWE Management
PWE MANAGEMENT (PWE) YOON IM JASON PARK ZHENG ZENG YANAN WANG CEO VP, Business Development VP, Platform VP, Finance 15+ Years 15+ Years 10+ Years 10+ Years in Gaming in Gaming in Gaming in Gaming P. 9
Slide 10: 1st & 3rd Party Publishing Portfolio
1ST & 3RD PARTY PUBLISHING PORTFOLIO (PWE) F2P $400+ million in revenue $240+ million in revenue $200+ million in revenue 20+ million players 6+ million players 4+ million players Premium $65+ million in revenue $70+ million in revenue 5+ million units sold 3+ million units sold P. 10
Slide 11: Portfolio Strategy
PORTFOLIO STRATEGY (PWE) • PC/Console • Games-as-a-Service & Premium • Core Gaming experiences • Indie & AA • Gameplay First • Global Appeal P. 11
Slide 12: Intellectual Property
INTELLECTUAL PROPERTY (PWE) Beloved ARPG Franchise Other IPs 5M+ Units Sold 20M+ Players P. 12
Slide 13: Cryptic Studios
CRYPTIC STUDIOS (PWE) Founded in 2000, Cryptic has a rich legacy of MMOs with 136 employees and HQ in Los Gatos, California City of Heroes Series Champions Online Star Trek Online Neverwinter Launched 2004 Launched 2009 Launched 2010 Launched 2013 City of Heroes and City of Villains This expansive g
Slide 14: Transaction Overview
TRANSACTION OVERVIEW (PWE) Purchase Price Post Deal Structure • USD $125m at closing • Paid with USD $60m in cash and USD $65m in shares • Purchase price net of cash: USD $103m • Acquired from Perfect World Europe B.V. • Forecast CY 2021 Net Sales: SEK 700m • Forecast Operational EBIT FY 22/23: brea
Slide 15: Company Structure / Transaction Perimeter
COMPANY STRUCTURE / TRANSACTION PERIMETER (PWE) Perfect World Europe B.V. (Netherlands) 100% 100% Perfect World North America Corporation Perfect World Publishing B.V. (Delaware, USA) (Netherlands) 100% 100% 100% Perfect World Cryptic Studios, Inc. Runic Games, Inc. Entertainment, Inc. (California,
Slide 16: Deal Rationale
DEAL RATIONALE (PWE) • Cryptic Studios’ passion for and experience with MMOs is rare and valuable • PWE Publishing’s portfolio and talent is world-class • PWE brings strong financial contribution and strategic value with IP and unique capability to Embracer • The acquisition accelerates Gearbox Ente
Slide 17: Operational Plan
OPERATIONAL PLAN (PWE) • Perfect World Entertainment to operate as a business unit within Gearbox Entertainment • Perfect World Entertainment’s publishing business will combine its work with Gearbox Publishing to deliver world- class entertainment globally • Cryptic Studios will remain a standalone
Slide 18: Embracer Group
EMBRACER® GROUP
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