Digital Bros S.p.a. · MIL:DIB
Digital Bros — Investor Presentation (September 2021)
30 slides from Digital Bros's investor presentation, September 2021
Slide 1: September 2021
oS noe _— — % Nam September 2021
Slide 2: 325 talented employees worldwide to create the next big games
325 talented employees worldwide to create the next big games STUDIOS: PUBLISHING: GAME ACADEMY: IP scouting and selection, Video games training and Creation and development of marketing & PR, sales and professional courses aimed at video games based on an promotions, customer support, shaping young
Slide 3: The video games market is continuously growing
The video games market is continuously growing. In 2024, it is expected to reach $218.7 billion (2019 -2024 8.7% CAGR)* LISTING ON PREMIUM AND F2P NEW STUDIOS BORSA ITALIANA DEVELOPERS ACQUISITION ACQUISITION 2000 2015-2017 2020 - 2021 1989 2007 2019 FOUNDATION Brothers Rami and Raffi PUBLISHING FAR
Slide 4: Premium and F2P games revenues
Premium and F2P games revenues* Death Stranding 4% 1% 0,3% 15% 15% 13% First group: Premium 24% 28% & F2P videogames 40% Control, developed by internal Journey to the studios or with IP Savage Planet, 52% 59% ownership Bloodstained 57% 44% 43% Second group: 67% 45% Premium & F2P 58% videogames with
Slide 5: Group
1 GROUP 2 GROUP 3 GROUP September 2021 5
Slide 6: To reduce the risk of unsuccess of a game, we:
To reduce the risk of unsuccess of a game, we: Work with financially independent developers Obtain a contractual way-out at prototype September 2021 6
Slide 7: Over €76 million invested on 22 intellectual properties
At June 30th, 2021, the Group has over €76 million invested on 22 intellectual properties, excluding the incremental investments in internal productions, any € mil future M&A and IP acquisition 100 90 86.7 80 70 60 50 42.6 40 30 23.7 20 14.3 10.6 8.4 10.3 10 0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Act.
Slide 8: A Games
Next-gen consoles Worldwide multiplatform launch Next-gen consoles Mobile version 2 A Games Worldwide multiplatform launch September 2021 “A games”: brand new titles with a development budget of max €5 million 8
Slide 9: Financial results
September 2021
Slide 10: EBIT increased at €30.6 million, 20.5% of consolidated net revenues
Euro million 30.06.21 30.06.20 Change Change % Gross revenue 150.7 139.0 11.7 8.4% Gross operating margin (EBITDA) 57.8 34.7 23.1 66.7% Operating margin (EBIT) 30.6 20.1 10.5 52.3% Profit/(loss) before tax 34.8 20.7 14.1 68.3% Net profit/(loss) 31.9 14.9 17.0 n.m. FI S CA L YEAR ENDED JUNE 30 th , 2
Slide 11: Premium Games, Free to Play, Other
4% 7% 89% Premium Games Free to Play Other September 2021 11
Slide 12: Our digital partners
12% 30% OUR DIGITAL PARTNERS: 40% 60% 86% 98% 88% 70% 60% 40% 14% 2% FY12 FY13 FY15 FY19 FY20 FY21 Digital/mobile Retail September 2021 12
Slide 13: Premium games results
Euro million 30.06.21 30.06.20 Change Change % Gross revenue 134.7 122.3 12.4 10.1% Net revenue 133.4 116.5 16.9 14.5% Gross operating margin 60.0 44.3 15.7 35.4% (EBITDA) Operating margin (EBIT) 34.8 31.7 3.1 10.0% FI S CA L YEAR ENDED JUNE 30 th , 2021 SOURCE: DIGITAL B RO S - PREMIUM GAMES ACCOUN
Slide 14: Revenues by geography
ROE 16% United States 38% France 3% Germany 6% UK 7% Japan 3% Far East Canada 9% 4% China Americas 10% 3% September 2021 14
Slide 15: Free to play results
Euro million 30.06.21 30.06.20 Change Change % Gross revenue 10.7 7.5 3.2 42.8% Net revenue 10.7 7.5 3.2 42.8% Gross operating margin 5.7 2.1 3.6 n.m. (EBITDA) Operating margin (EBIT) 4.8 0.7 4.1 n.m. FI S CA L YEAR ENDED JUNE 30 th , 2021 SOURCE: DIGITAL B RO S - F2P REVENUES GREW BY 42.8% THANKS T
Slide 16: Investment plan to continue in the next few years
The significant investment plan implemented by the Group in the last few fiscal years will continue in the next few years: the Group has over €76 million outstanding investments on 22 intellectual properties already confirmed, excluding the incremental investments in internal productions as a result
Slide 17: Acquisitions and investments
September 2021
Slide 18: Starbreeze AB
– Starbreeze AB (SB) is a Swedish videogame developer and publisher owner of the famous PAYDAY IP that 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. The overall assets nomi
Slide 19: Continuously growing our IP portfolio
Continuously growing our IP portfolio - Infinite Interactive and Infinity Plus 2 (IP2) are videogame development studios located in Melbourne , Australia and founded by industr y veteran Steven Fawkner in 1989. - Specialized in the creation of original intellectual properties, puzzle and strategy ga
Slide 20: 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 talents wishing to pursue a career in the gaming industry. - With courses in Game Design, Game programming, Concept Art or Game Art 3D, the Academy foste
Slide 21: Games
September 2021
Slide 22: Assetto Corsa
• ASSETTO CORSA IS THE #1 RACING SIMULATOR WITH 14 MILLION COPIES SOLD • NEW EPISODE ASSETTO CORSA COMPETIZIONE: OFFICIAL GAME OF THE BLANCPAIN GT SERIES • FULLY LICENSED GT CARS FROM TOP MANUFACTURERS: FERRARI, LAMBORGHINI, MCLAREN • UNIQUE SELLING POINTS OF THE GAME: - Extraordinary level of simul
Slide 23: Control
• CINEMATIC THIRD PERSON ACTION GAME BUILT ON REMEDY’S PROPRIETARY NORTHLIGHT® TECHNOLOGY • DEVELOPED BY REMEDY ENTERTAINMENT, DEVELOPER OF AAA VIDEO GAMES • WORLDWIDE PUBLISHING RIGHTS ON PC AND ALL CONSOLE FORMATS • HIGH METACRITIC SCORE (AVG. 84) • MORE THAN 2 MILLION COPIES SOLD • €25 MIL BUDGET
Slide 24: Bloodstained
• CREATION OF KOJI IGARASHI, THE FORMER SERIES PRODUCER OF THE CASTELVANIA SERIES • WORLDWIDE PUBLISHING RIGHTS ON PC AND ALL CONSOLE FORMATS • HIGH METACRITIC SCORE (AVG. 81) • MORE THAN 1 MILLION COPIES SOLD September 2021 24
Slide 25: Journey to the Savage Planet / cyberpunk action game
• FIRST PERSON CYBERPUNK ACTION VIDEOGAME SET IN A GRIM, DYSTOPIAN FUTURISTIC WORLD • DLCs LAUNCH PROGRAM (First DLC released in December 2020) • MORE THAN HALF A MILLION COPIES SOLD TO DATE • HIGH METACRITIC SCORE (AVG. 77) • SECOND VERSION IN DEVELOPMENT • NEXT-GEN RELEASE IN Q1 FY22 September 202
Slide 26: 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 • EXPECTED LIFETIME REVENUES IN EXCESS OF € 50 MILLION • HIGH METACRITIC SCORE (86) • “PC GAME OF T
Slide 27: Eiyuden Chronicle
• RPG CREATION OF YOSHITAKA MURAYAMA AND JUNKO KAWANO, THE FORMER CREATORS OF SUIKODEN AND CASTLEVANIA • WORDWIDE PUBLISHING RIGHTS ON PC AND ALL CONSOLE FORMATS AND CO-OWNERSHIP OF THE IP • PARTIALLY FUNDED BY THE LARGEST VIDEOGAME KICKSTARTER OF 2020, RAISING A TOTAL OF JPG 482 MILLION (USD 4.6 MI
Slide 28: 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 29: Hawken
• MECH GENRE: COLLECT, BUILD AND CUSTOMIZE YOUR MECH • STRONG F2P SYSTEM WITH PVE ELEMENTS • WORLWIDE MULTIPLATFORM RELEASE IN Q4 FY22 • THE ACTUAL PRODUCTION IS NOT EVEN A SEQUEL: • New game design • Objective-based PVE to maximize revenues without being “pay-to-win” & to create sustainable long- t
Slide 30: Digital Bros S.p.A.
Digital Bros S.p.A. Via Tortona, 37 - 20144 Milan, Italy For info: www.digitalbros.com - ir@digitalbros.com
Digital Bros — Investor Presentation (September 2021) on 6ix