Remedy Entertainment Oy · OMXHEX:REMEDY
Remedy Entertainment Oy — Q3 2022 Earnings Presentation
27 slides from Remedy Entertainment Oy's earnings presentation, Oct 28, 2022
Slide 1: The webcast will begin soon
The webcast will begin soon.
Slide 2: Business Review January-September 2022
BUSINESS REVIEW __. JANUARY=SEPTEMBER 2022
Slide 3: Agenda
1 Q3 2022 Review Q3 2022 Financial 2 Results 3 Outlook Tero Virtala CEO Terhi Kauppi CFO 4 Questions & Answers
Slide 4: Q3 2022 Review
‘ f Y . 022 REVIEW. Tero Virtala, CEO = ry REMEDY
Slide 5: Q3 2022 highlights
• Revenue grew by 6.8% to 7.9 M€ (7.4) • EBITDA decreased to -2.4 M€ (0.4), mainly due to increased external development costs • Operating profit -3.0 M€ (-0.2), operating profit margin -38.4% (-2.9%) • Cash flow from operations 4.7 M€ (4.8) • In August, Remedy lowered its revenue and operating resu
Slide 6: Game project portfolio and development stages
Condor* Heron* Alan Wake Alan Wake II Max Payne * Remastered 1&2 Remake LAUNCHED PROOF-OF-CONCEPT CONCEPT LAUNCHED LAUNCHED FULL PRODUCTION PROOF-OF-CONCEPT CONCEPT WITH WITH WITH WITH WITH * project codename
Slide 7: Condor: Control spin-off co-published with 505 Games
• 4-player cooperative PvE (player vs. environment) spin-off game of Control • Co-published and developed with 505 Games • Initial development budget 25 M€ • In the proof-of-concept stage • Team is currently testing the key gameplay elements and finalizing the main designs before moving the project
Slide 8: Heron: bigger budget Control game
• Bigger budget Control game • High-level collaboration terms agreed with 505 Games • In the concept stage • Team is currently concepting and prototyping the game and developing selected technologies and tools in collaboration with the Northlight team
Slide 9: Alan Wake II
• Long-awaited sequel to the award- winning 2010 psychological thriller • Survival horror game • Published by Epic Games • In the full production stage • The game is coming together on all fronts, user testing continues and the feedback from user research has been encouraging • To be launched in 202
Slide 10: Vanguard: free-to-play co-op game with Tencent
• Free-to-play (F2P), cooperative multiplayer game • Co-published with Tencent • In the proof-of-concept stage • Designs are taken further, prototyped and tested • Team is making sure all key elements merge together in a right way before we make final decisions on the plans for the next development
Slide 11: Max Payne 1&2 Remake
• Remake of the iconic Max Payne and Max Payne 2: The Fall of Max Payne video games • Published by Rockstar Games • Fits well with many of our strengths and has good business potential with well- managed risks • Team is developing the game utilizing production and technology synergies across our pro
Slide 12: A new development studio in Stockholm
360 A NEW DEVELOPMENT STUDIO Remedy talents IN STOCKHOLM (September 30, 2022) UTILIZE and CONTINUE TO EXPAND EXTERNAL DEVELOPMENT CAPABILITIES
Slide 13: Q3 2022 Financial Results
___093 2022 FINANCIAL RESULTS == > REMEDY
Slide 14: Revenue: royalties and development fees
9.9 6.8% 7.9 Royalties (EURm) 3.9 7.4 0.4 2.0 7.5 Development Fees (EURm) 6.0 5.4 Q3 2020 Q3 2021 Q3 2022
Slide 15: Royalties and development fees
Royalties (EURm) Development Fees (EURm)
Slide 16: Operating profit and margin
2.5 25.1% -0.2 -2.9% -3.0 -38.4% Q3 2020 Q3 2021 Q3 2022 Q3 2020 Q3 2021 Q3 2022 Operating Profit (EURm) Operating Profit Margin (%)
Slide 17: External development, personnel and capitalized costs
2.6 1.9 2.1 2.0 2.0 2.1 1.8 1.8 -1.6 -1.4 -1.9 -2.5 -2.9 -3.6 -4.5 -4.9 -6.4 -6.2 -6.3 -6.5 -6.6 -6.6 -6.5 -6.9 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Ext Dev (EURm) Personnel expenses (EURm) Capitalized Dev Cost (EURm)
Slide 18: Cash, financial instruments and operating cash flow
73.4 66.1 64.0 7.0 63.3 FAS IFRS 60.6 58.4 60.4 7.0 6.8 7.0 6.8 17.7 66.4 23.7 57.0 53.6 56.5 51.4 4.2 4.8 4.7 3.0 -0.8 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 -2.2 -8.3 Cash and Cash Equivalents (EURm) Financial instruments (EURm) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2021 2021
Slide 19: Revenue and EBIT % 2010-2022 YTD
FAS IFRS 44.7 45 35% 41.1 Revenue (M€) EBIT % 40 30% 35 25.5% 25% 24.1% 31.6 30.0 30 20.6% 20% 18.9% 17.6% 25 15% 11.7%20.1 20 9.8% 10% 16.4 17.2 15.5 15 4.7% 13.7 6.1% 5% 11.9 2.4% 10.5 3.0% 1.7% 10 0% 4.7 3.8 5 -5% -9.0% 0 -10% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022YTD
Slide 20: Self-published and co-published games
Self- published Co-published Own IP with Publishing Partner Partner IP
Slide 21: Development phases and revenue model by project
DEVELOPMENT PHASE LIVE Self-publishing ROYALTIES Co-publishing Production Readiness DEVELOPMENT FEES R O Y A L T I E S* Proof of Concept Full Production Live stage Concept Own IP with publishing partner DEVELOPMENT FEES R O Y A L T I E S* Partner IP DEVELOPMENT FEES R O Y A L T I E S* Project impact
Slide 22: Outlook
Tero Virtala, CEO
Slide 23: Outlook for 2022
Remedy expects its revenue to remain at the previous year’s level and its operating result to decline significantly compared to the year 2021. In 2021, Remedy’s revenue totaled EUR 44.7 million and operating profit EUR 11.4 million.
Slide 24: Strategic objectives
• To create several successful games, and at least one major hit game. • To own at least three expanding game brands, all with long-term hit potential. • To have capabilities to select the right commercial model for each game: self-finance, self-publish, or work with publishing partners. • To be the
Slide 25: Questions & Answers
Slide 26: Speakers will now take questions
Speakers will now take questions from the investors, analysts and media representatives Web participants: • Type in your question
Slide 27: Contact
Contact ir@remedygames.com investors.remedygames.com RemedyGames