STARBREEZE investor Presentation SEB Nordic Seminar, 10 January 2018 Slide / 1
Introduction to starbreezE Starbreeze games and publishing outline Virtual reality Financial overview Slide / 2
Starbreeze in brief Office locations 650 Stockholm (HQ) San Francisco employees 2) Brussels At a glance Los Angeles § One of the first independent studios in Northern Europe – founded Luxembourg Paris in 1998. Bangalore § Established developer and publisher of PC and console games and & Dehradun VR products. § Net sales of SEK 257.7m and EBITDA of SEK –59.9m in 2017 YTD. Barcelona § Listing on Nasdaq Stockholm in October 2017 Net Sales splits Large portfolio of strong ips By business area 1) By platform 1) Retail Other 5% Console 15% 40% Starbreeze Games 39% Publishing PC System Shock 3 56% 60% Digital 85% 1) 2017 YTD Slide / 3 2) 30 September 2017 including Dhruva Interactive
Starbreeze evolution 357 345 CAGR: ~28% 218 161 142 31 Founded 1998 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 Q3 LTM Net sales (SEKm) VR ECOSYSTEM PUBLISHING AND INVESTING IN VR GAMES DEVELOPMENT PHYSICAL DISTRIBUTION, FEW PLATFORMS DIGITAL DISTRIBUTION, MULTI-PLATFORM PC (retail) Slide / 4 Note: 2012-2015 Jan-Dec figures are not reported fiscal years
Vision > be a leading provider in the entertainment industry by creating world-class experiences. Financial targets Vision and financial Net sales Profitability Dividend policy targets Starbreeze target is to generate No dividend in the next few Starbreeze target is to achieve positive EBITDA for the fourth years, generated cash flow to net sales of at least SEK 2 billion quarter of 2018 and then on an finance the continued growth in 2020 . annual basis for each and development of the subsequent financial year. business. Long-term policy to distribute 50% of net profit after tax. Slide / 5
Strong Portfolio growth ahead future portfolio ~2,000 (financial target) current portfolio System Shock 3 Psychonauts 2 357 ? 2017Q3 LTM 2020E Net sales (SEKm) Slide / 6
Starbreeze GAMES and publishing Slide / 7
STARBREEZE Global consumer spend on games, USDbn Steam is the most important digital platform for pc Current addressable market is growing CAGR 2 x 2016–2020E 11,000+ 75% 6% 129 123 GAMES IN THE STORE OF ALL PC GAMES SOLD 116 THROUGH STEAM 109 101 Large and Y U growing 7,000+ 17.7 addressable ACTIVE FORUM THREADS MILLION CCU AT ONE GIVEN DAILY TIME games market W 5 125 67% MILLION USERS AS OF GROWTH OF USER BASE 2016 2017E 2018E 2019E 2020E FEBRUARY 2015 FROM 2014 TO 2015 Source: Newzoo (2016-2020 Global games market) Slide / 8 Slide / 8
Continuous Virtual consolidation Games with Technical monetization reality a context progress Top 10 public gaming companies market share 1) Trends in M 54 43 % % the games market 2015 2016 1) Game revenue of Top25 public companies up 17% in 2016, top 10 take more than Slide / 9 half of global market.
Slide / 10
1 2 3 4 Business Be a market Drive Grow the new plat- leader in growth in the game portfolio forms and strategy own games existing game through geographies development portfolio publishing for existing game portfolio Slide / 11
Case study: PAYDAY 2 DLCS AND UPDATES Strategy and focus in Case study: >160 games development OVERKILL’s The Walking Dead Release 2018 H2 1 § Develop games based on strong UNITS SOLD >16,000,000 IPs, owned or licensed. Be a market § Hardcore action games in co-op and first person shooter PAYDAY 2 IN GROSS SALES leader in segments. >2bn SEK ‹ § Multi-platform strategy games including PC, console and VR. STEAM COMMUNITY MEMBERS § Large, high quality, replayable development 2 5,450,000 games with state of the art Narrative driven co-operative 1 st person shooteR gameplay. § Storylines with repeatability to M Based on the smash-hit enable games as a service to graphic novel series with long revenue tails. Extremely strong brand, 8 th TV-series season on air, 11.3M Action / Role play average viewership during season 7. Release dates August 2013 (PC) Slide / 12 June 2015 (Console)
Games as a service activities PAYDAY 2 case study: 2 create long-term player sales trend compared to a typical game stickiness PAYDAY2 was released in August 2013. The comparison game was released October 2014. Drive growth The chart shows the number of players until September 2015 (thus, one year after PAYDAY was released). 100 000 in the Spring break Marketing Crimefest Y community event community event existing 80 000 Events Community r - game 60 000 portfolio Steam summer sale Free game 40 000 DLCs updates 2 T 20 000 0 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 PAYDAY 2 Typical game Slide / 13
Case study: Dead by Daylight Strategy and Publishing games DLCS AND UPDATES 3 >10 focus in publishing in development Grow § Broader catalogue of games UNITS SOLD with lower cost per game to >3,000,000 the game decrease individual game risk and a more steady flow of revenues. portfolio DBD IN GROSS SALES SEK 400m § Explore non-core genres. through § Storylines with repeatability to The raft Hero enable games as a service to 85% STEAM COMMUNITY MEMBERS publishing 15% with long revenue tails. >800,000 § Flexible financing arrangement ? ? and IP management (~0–50% APE-X ownership). Publishing is a complementary business model to own games with lower investments and risk per game. Asymmetric horror Release dates June 2016 (PC) Slide / 14 June 2017 (Console)
4 new plat- Expansion Virtual Launching an forms and to the Asian reality established geographies market IP on mobile for existing § Develop games. § Using successful IPs from its § Enter partnerships with local growing game portfolio to partner for distribution. § Publishing to widen How? How? How? game attract mobile users within § Strategic collaboration with portfolio. its existing user base. Smilegate initiated in 2016. portfolio § Large potential market § Increase interest for § Asian gaming market is for premium content. forthcoming title PAYDAY 3. large and fast-growing. why? why? why? § Mobile games market is § Geographical diversification. large and growing. § VR centers to be § PAYDAY Crime War is in § Strategic collaboration opened soon. development with release through partnerships when? when? when? during 2018. for distribution in Asia. § Games in production. Slide / 15
Virtual reality Slide / 16
LBE global VR Revenue Forecast 2017-2021 (MUSD) >4x 1 400 increase 1 200 55 global 187 1 000 revenues – 45 134 800 146 reaching 1.2 35 105 600 110 billion usd 80 24 825 400 in 2021 73 55 616 14 457 41 200 31 307 155 0 2017 2018 2019 2020 2021 Asia-Pacific Europe North America Other Source: Location-Based VR entertainment Market Report, 2017-07-12, Greenlight Insights Slide / 17
Zero Latency IMAX The Void 5-25 minutes 45 minutes 10 minutes $55 $7-10 $70 Examples 1 user 4 players 6-8 players Title: John Wick VR Title: Ghostbusters: Dimension Title: Zero Latency LBE VR Location: LA Location: Utah, Dubai Location: Japan, US, Spain centers Slide / 18 Source: Location-Based VR entertainment Market Report, 2017-07-12, Greenlight Insights
ARCADE MULTIPLAYER THEATRICAL SEATED LARGE FIELD 1 User 4 Users 20+ Users 100+ USERS Types of player experiences Slide / 19
Vr strategy – to enable premium content Illustrative Premium Content Profit Location-based vr centers StarVR headset STOR M Time Large investments to enable sale of content Slide / 20
Business model Dynamics by type of center Tech and content Share of ticket Wholly-owned Partnership supplier (IMAX) price 15 USD (Stockholm) (Dubai) Headset, tech, pods 20-40% Location 20-40% Content based vr to 20-40% - - Operations (landlords) provide additional Costs carried by Costs for headset, - All costs No costs revenue Starbreeze tech, pods and content Slide / 21
Slide / Slide / 22 CONFIDENTIAL
Large and growing addressable games market Established and successful games development with gaas revenue model Proven publishing business Starbreeze highlights large pipeline of new titles based on strong global franchises Large potential for content within location based virtual reality attractive financial profile of high growth and profitability Slide / 23
Contact us Sebastian Ahlskog Ann Charlotte Svensson CFO Head of IR and Corporate Communications sebastian.ahlskog@starbreeze.com anncharlotte.svensson@starbreeze.com Slide / 24
OUR ADDRESSES: STARBREEZE STUDIOS OUR CONTACTS: WWW.STARBREEZE.COM IR@STARBREEZE.COM S T O C K H O L M Slide / 25
THANKS! The Starbreeze team Slide / 26
Recommend
More recommend
