STARBREEZE investor Presentation Carnegie Nordic Gaming Seminar, 31 May 2018 Slide / 1
Starbreeze today Office locations San Francisco Los Angeles Brussels Stockholm (HQ) 620 employees First listed gaming company in Northern Europe founded in 1998 Independent developer and publisher of PC and console games and VR products Paris Luxembourg Bangalore & Dehradun Net sales of EUR 35m Listed on Nasdaq Stockholm Market cap EUR 415m Barcelona Net Sales splits strong ips Retail 7% Starbreeze Games 34% Other 5% Publishing 61% Console 40% PC 60% Digital 93% Psychonauts 2 Slide / 2
The Payday success Case study: payday DLCS AND UPDATES >170 UNITS SOLD >16,000,000 PAYDAY 2 IN GROSS SALES >200M EUR STEAM COMMUNITY MEMBERS 5,600,000 Games as a service model (GAAS) Events r Free game updates T Marketing Y Community DLCs 2 - GAAS sales trend compared to a typical game 100 000 80 000 60 000 40 000 20 000 Crimefest community event Spring break community event Steam summer sale Action / Co-op Release dates August 2013 (PC) Slide June / 2015 3 (Console) 0 PAYDAY 2 Typical game
Key INSIGHTS Gameplay first and Replayability Community it s not about you, it s about them Global relevancy Strong brand long term Slide / 4
STARBREEZE Case study: Dead by Daylight DLCS AND UPDATES >10 UNITS SOLD >3,000,000 DBD IN GROSS SALES EUR 40m STEAM COMMUNITY MEMBERS >800,000 Asymmetric horror Release dates June 2016 (PC) June 2017 (Console) Slide / 5
Building a focused catalogue Own games on our home turf co-operative 1st person shooter Gameplay first Replayability FuN Publishing Expanding market Expanding genres Strong IP And/or top ranked studio/creator Slide / 6
Building strong IP:s Slide / 7
STARBREEZE Global mindset Games should appeal to a global audience Strong distribution partners in place for Europe and the US Expansion to the Asian market Advantages Larger addressable market Geographic diversification Slide / 9
For all platforms PC and Console Main platforms Simultaneous development VR high potential market 9 titles available today PAYDAY 2 for VR largest vr game on the market released March 2018 MOBILE Successful IP:s also to be developed for mobile Drive interest for games PAYDAY CrimeWar to be released in 2018 Slide / 10
From one-trick pony to A gaming powerhouse 2-3 own large titles 3-5 larger publishing titles Aim for Market leadership Slide / 11
$ Illustrative image of current and future service lines Current and Future Revenue streams PAYDAY 3 PAYDAY 3 10 Crowns Slide / 12 Production Live game TIME
accelerating growth ~200 (financial target) Revenue generators 2020 Current revenue generators System Shock 3 35 2017 2020E Net sales (EURm) Slide / 13
Our future stars Slide / 14
STARBREEZE Overkill s the walking dead Starbreeze own development Narrative driven co-operative 1 st person shooter Based on the smash-hit graphic novel series by Robert Kirkman One of the worlds most popular tv series Exclusive rights for all platforms/markets Slide / 15
Project crossfire Starbreeze own production Premium co-operative 1 st person shooter Based on smilegate s mega ip crossfire with 650M players WesterN version of the game Multi platform/global reach Slide / 16
geminose Starbreeze own development a game where Magic, Music and Dance is at the heart of the Geminose Superstars world Own ip Global reach premiering exclusively for the Nintendo Switch Slide / 17 20
psychonauts 2 Publishing title Signed in 2017 third-person action/adventure Creator: tim Schafer Studio: Double Fine Productions Pc/Global reach Investment of 8 MUSD Slide / 18
STARBREEZE System shock 3 Signed in 2017 A SCI-FI RPG FPS game with INTRIGUING CHARACTERS Creator: Warren Spector Studio: Otherside Entertainment PC/global reach Investment of 12 musd Slide / 19
STARBREEZE 10 crowns Signed in 2018 an epic-scale turn-based strategy game Creators behind Civilization Studio: Mohawk Games PC/global reach Investment of 7.7 musd Slide / 20
STARBREEZE Payday 3 Starbreeze own production co-operative 1 st person shooter Own ip Multi platform/global reach Slide / 21
Virtual reality Slide / 22
LBE global VR Revenue Forecast 2017-2021 (MUSD) Source: Location-Based VR entertainment Market Report, 2017-07-12, Greenlight Insights 1 400 >4x increase 1 200 1 000 55 187 global revenues reaching 1.2 billion usd in 2021 Slide / 23 45 134 800 146 35 105 600 110 80 24 400 73 825 55 616 14 457 200 41 31 307 155 0 2017 2018 2019 2020 2021 Asia-Pacific Europe North America Other
Vr strategy become A Leader for premium content Illustrative Profit Premium Content Location-based vr centers StarVR STOR M Time Investments to enable leadership for premium content Slide / 24
StarVR joint venture Starvr to unlock b2b vr verticals IP rights R&D Sales Marketing Support and aftermarket Reference design R&D Ownership 33% 67% Financing Production Listed on Taipei Exchange, market cap 150 MEUR Aim for IPO on Taiwain Exchange Next generation headset reach market 2018 Starbreeze owns and maintains core IPR and trademarks Slide / 25
Vr strategy become A Leader for premium content Illustrative Profit Premium Content Location-based vr centers StarVR STOR M Time Investments to enable leadership for premium content Slide / 26
Vr strategy become A Leader for premium content Illustrative Profit Premium Content Location-based vr centers StarVR STOR M Time Investments to enable leadership for premium content Slide / 28
Financial overview Slide / 29
Starbreeze evolution CAGR: ~28% 34 36 21 14 16 11 8 8 3 5 Founded 1998 2012 2013 2014 2015 2016 2017 Net sales (EURm) EBITDA (EURm) -2 WORK FOR HIRE OWN GAMES DEVELOPMENT PUBLISHING PHYSICAL DISTRIBUTION, FEW PLATFORMS DIGITAL DISTRIBUTION, MULTI-PLATFORM VR Slide / 30
Increased investments driven by initiatives Investments in own development and publishing 2015 2017 113% 412 180 44% 56% 40 195 95 17 78 154 232 2015 2016 2017 Publishing projects (SEKm) Own games and technology (SEKm) Total investments in game and technology development share of net sales Slide / 31
net sales development by title Net sales by title per quarter, 2013 2018 PAYDAY 2 BASE GAME VS DLC sales from PC from launch EURm 9 payday~85 100% payday ~40 60% 12 10 10 10 10 11 100% 90% 80% 70% 96% 77% 79% 4 3 5 3 5 5 7 5 5 4 6 8 60% 50% 40% 30% 20% 54% 46% 56% 44% 54% 46% 23% 21% 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 2018 Q4 Q1 10% 0% 4% 2013 2014 2015 2016 2017 2018 PAYDAY 2 Dead by Daylight RAID: World War II Other Base game DLC Slide / 32
experienced management team Bo Andersson Klint Sebastian Ahlskog Saül Gascon Barba Almir Listo Stéphane Decroix Mikael Nermark Maeva Sponbergs Ann Charlotte Svensson Johanna Wikland CEO CFO Global Development Director Global Brand Director & Producer CDO COO (CEO 2011 2013) EVP of Communications Head of Investor Relations and Corporate Communications Global Human Resources Director Selected work experience Years of relevant experience 20 years 12 years 13 years 10 years 20 years 33 years 18 years 20 years 13 years Slide / 33
THANKS! The Starbreeze team Slide / 34