STARBREEZE Company presentation - February, 2021
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STARBREEZE
Company presentation
February, 2021
Slide / 1
Introduction to Starbreeze
Key Strategies
Presentation
outline The payday franchise
GROUP FINANCIALS
Appendix
Slide / 2
Introduction to starbreeze Slide / 3
Office locations
Starbreeze in brief ~124
Employees2)
Stockholm(HQ)
At a glance ~103
▪ Independent game developer for PC- and console games
▪ Owns and fully controls the PAYDAY franchise, one of the most Luxembourg
successful PC games of all times
Paris
− Total net sales from the PAYDAY franchise since initial
~10
release amounts to approx. SEK 1.1bn1)
− >28,000,000 installed base (PAYDAY franchise)
− On average – 134,723 daily active users played PAYDAY 2 in Barcelona
Q4’20 ~11
− Streamlined business with approximately 124 employees
focusing on the core asset PAYDAY
▪ Stable and predictable revenue streams from PAYDAY 2 THE PAYDAY IP
▪ PAYDAY 3 in development and ongoing publishing discussion
▪ PAYDAY : Crime War, mobile game in development and ongoing
publishing discussion
Psychonauts 2
Note: 1) Refers to all Starbreeze revenues from the PAYDAY franchise (excluding publishing share) since
initial release.
Slide / 4
Key strategies Slide / 5
Trends in the gaming industry
In 2020, 91% of the
revenue was made Games with Continuous Technical consolidation
through digital sales a context monetization progress
Source: Newzoo.
New marketing Games as a service and Technical bar and ease Secure talent
channels supports a keeping on releasing of use raised to new production capacity to
much deeper value for the gamers amazing levels keep up with the
community engagement long after the first content release cycle
and user generated release is key
Slide / 6 content
Starbreeze is on a mission
Develop video game ip’s into entertainment PC Games +7.9.% YoY
properties WITH highly engaged communities $34.2 Bn
Console Games +6.8% YoY
Our key target audience are hard core gamers on PC and console
$45.2 Bn
our games builds our Starbreeze brand recognition
Service the community and they will serve you = 49% of the market in 2020
Source: Global Games Market October 2020 by Newzoo.
Slide
Slide / 7/ 7
Key strategies
PAYDAY 3 publishing deal – A great partnership
financial stability while building a world class game studio
PAYDAY IP development and utilisation
Further Grow our development capability
Cutting edge community development
Participatory entertainment and user generated content
Slide
Slide / 8/ 8
The PAYDAY franchise – one of the most successful IPs in the world Slide / 9
The PAYDAY FRANCHISE
Action / Co-op for PC and console PAYDAY 2 release dates
August 2013 (PC) & June 2015 (Console)
PAYDAY FRANCHISE IN GROSS SALES
PAYDAY 1 & 2 STARBREEZE net sales
>300M USD 211
161
INSTALLED BASE SEKm 156
>28,000,000 140
120 98
109
111
DLCS AND UPDATES
>190 15 31
STEAM COMMUNITY MEMBERS
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
>7,100,000
PAYDAY, Net sales Games Other Net Sales attributable to PAYDAY
August 2013 (PC) & June 2015 (Console)
Note: 1) Share of net sales from PAYDAY 2 base games (all units and formats) vs. net sales from PAYDAY 2
DLCs (all units and PC).
Slide / 1010PAYDAY 2 - Revenue and KPI development
PAYDAY 2 – Peak CCU per month (OCT 2018-2020)
70 000
60 000
Grew +700,000 Steam community 50 000
members fall-2019 40 000
30 000
20 000
10 000
96% positive steam reviews 0
rating 30 days post content
release
PAYDAY 2 Base game vs DLC split PD2 Steam launch to date 1)
4%
frequent EXPANSION packs 46%
56% 54%
71% 65% 71%
77%
RELEASEd making 2/3 of revenue 96%
54% 46%
44%
29% 35% 29%
23%
2013 2014 2015 2016 2017 2018 2019 2020
Slide / 1111 Base DLCStrong foundation for a successful launch of PAYDAY 3
A strong franshise built over eight years Launch of PAYDAY 3
Large Installedbase Strong Reviews Well established Multiple platforms Games as a service
>28,000,000 88/100 Community Simultaneous launch on PC
A game designed around content
7,100,000
and console (PAYDAY 2 updates, new functionality
Installed base Current steam rating launched on PC first) added on a frequent basis and
community services
>190
Steam community members
95/100
DLCs and updates Steam rating the past 30 days
>305,000
No. of Steam ratings
Slide / 1212PAYDAY 3 – “Living the Heist fantasy”
Legendary Outlaws Development started in October 2019
Using the Unreal game engine
Urban Mayhem IP developed and owned by Starbreeze
Estimated release date 2022-2023
Execute the perfect heist GAAS MODEL = AddING new functionality and content long
Expansive Universe beyond the original release date
Slide / 1313Summary Q4
PAYDAY 2 sales demonstrate the power of PAYDAY
▪ Increasing High demand for payday 2 and its community - stable foundation for PAYDAY
▪ PAYDAY 3 DEVELOPMENT AND ONGOING 3’s launch in the coming years.
PUBLISHER NEGOTIATIONS Cash position of SEK 157 m enables development
until end 2021+.
▪ Development capital 2021+
Development organization continues to recruit,
▪ Optimising organisation increased focus on marketing and business
development
All this enables Starbreeze to close of a beneficial
publishing agreement for PAYDAY 3.
Slide / 1414Group FINANCIALS Slide / 15
Revenue development - growth In payday
Revenue development Commentary
Annual QUARTER ▪ Net sales in Q4’20 totaled to SEK 32.6m, compared to SEK
51.1m in Q4’19. The PAYDAY franchise accounted for SEK
SEKm 28% 39% 94% 99% 95% 30.6m, compared to 50.8m in Q4’19 whereof extraordinary
posts in Q4’19 amounted to SEK 28.9m.
98m 109m 111m 51m 31m
▪ PAYDAY adjusted growth in net sales 39.7% in Q4’20.
▪ Net sales for the full year of 2020 totaled to SEK 118.0m,
compared to SEK 280.0m in 2019 whereof extraordinary post
in ‘19 amounted to SEK 228.9m.
363,2
13,3 ▪ PAYDAY adjusted growth in net sales 66.7% in 2020.
299,2
19,2 ▪ During Q1’20 PAYDAY 2 and its DLCs met the first sales
criterion in Valve’s stepped approach to a higher revenue
split on 3 January 2020. As a result, Starbreeze now has a
revenue share of 75% on revenues from Steam after tax
350,0 ▪ Other revenue mainly relates to currency effects.
280,0 119,8
1,8 Impact of COVID-19
61,2
118,0 22,6 ▪ No direct impact on ongoing revenue-generating operations
10,1 because the majority of revenues are generated through a
51,1 32,6 digital distribution model
- 10,0
2018 2019 2020 Q4'19 Q4'20 ▪ The effect on Starbreeze’s revenues has been positive due to
PAYDAY 2 - share of net sales, % and SEKm higher volumes
Net sales Other revenue
Other - share of net sales, % ▪ Focus has been on business continuation. Most employees
are currently working from home with limited operational
impact
Source: Company Information.
Slide / 16 ▪ The short-term effect on ongoing projects is viewed as minorOperating expenses
Cost base development Commentary
SEKm NOTE 2018 2019 2020 Q4’19 Q4’20 A▪ Direct costs for Q4’20 amounted to SEK 8.7 million,
compared to SEK 225.5m in Q4’19, and consist of costs
Direct costs A -1,733.9 -661.5 -31.1 -225.5 -8.7 related to game production and game development. Q4’19
contained write-downs of non-core related assets of SEK
% of net sales 495% 236% 26% 441% 27% 205.5m.
Selling and marketing costs B -91.4 -12.0 -8.5 -2.1 -2.2 A▪ For the full year of 2020 direct costs amounted to SEK 31.1m
compared to SEK 661.m in 2019. The decrease is attributable
% of net sales 26% 4% 7% 4% 7% to write-downs of non-core related assets of SEK 293.8m,
capitalized development costs for sold publishing rights of
SEK 169.6m that were expensed in 2019, but also to a
Administrative expenses C -115.7 -109.6 -69.4 -24.5 -16.1
reduction in the workforce and capitalization of a larger
share of development work in 2020.
% of net sales 33% 39% 59% 48% 49%
Other expenses - -20.4 - -3.5 - B▪ Sales and marketing costs amounted to SEK 2.2 million,
compared to SEK 2.1m in Q4’19 and to SEK 8.5m for the full
year of 2020 compared to SEK 12.0m in 2019.
% of net sales n.a. 7% n.a. 7% n.a.
Number of employees at the end of the C▪ Administrative expenses amounted to SEK 16.1 million,
D 604 127 124 127 124 compared to SEK 24.5m in Q4’19, and refer to items
period
including office costs and payroll for employees who do not
Average number of employees 634 331 123 138 123 work in game production or marketing, as well as costs
related to the reconstruction process. Extraordinary
expenses in the quarter of SEK 6.3 million.
C▪ The reduction over years is mainly due to lower costs related
to the reconstruction process and lower studio costs and
lower headcount.
Significant headcount reduction following discontinuation
D▪ and divestment of non-core operations
Source: Company Information.
Slide / 17Balance sheet
Balance sheet as per DECEMBER 31, 2019 Balance sheet as per DECEMBER 31, 2020 Commentary
SEKm
Assets held for Liabilities held Assets
sales 592.0 592.0 for sales
708.7 708.7
Current assets 41,4 ▪ Intangible assets primarily consists of IP rights (SEK 228.5m),
Current assets 46,9
Current capitalized costs for own game and technology development
150,4 liabilities (SEK 171.4) and Goodwill. Goodwill consists of synergies and
Cash &
equivalents 82,8 Cash & other intangible assets such as market position and personnel
equivalents 157,4
relating to past acquisitions (SEK 38.8m)
Current
PPE 76,6 ▪ PPE (property, plant and equipment relates to Right of use assets
liabilities IFRS/PPE 55,6 of SEK 48.9 m and IT and other equipment of SEK 6.7 m
Financial 400,2 Financial
15,2 11,5
assets assets ▪ Current assets consists of
– Cash and equivalents of SEK 157.4m
329,8 Non-current
– Prepaid expenses and accrued income of SEK 34.7m
liabilities
– Trades and other receivables of SEK 4.1m
– Current lease receivable of SEK 2.6m
Intangible Liabilities
assets 369,4 Intangible 442,8
assets
▪ Non-current liabilities amounted to SEK 329.8m, compared to
184.2m in 2019, including:
Non-current – Convertible debt of SEK 270.1m
184,2 liabilities 228,5
– Long-term debt to Nordea of SEK 11.0m
– Lease liabilities of SEK 37.1m
– Other SEK 11.6 m (Unity)
6,2 Equity Equity
▪ Current liabilities amounted to SEK 150.4m, compared to 400.2m
in 2019
Assets Equity and Assets Equity and
– Trade and other payables of SEK 103.3m, compared to SEK
Liabilities Liabilities 342.5m in ‘19 - out of which SEK 45 m refers to Nordea debt and
SEK 44 m relates to advance royalty.
– Accrued expenses and deferred income SEK 27.9m.
Source: Company Information.
– Lease contracts SEK 19.1 m.
Slide / 18
• Final settlement of reconstruction debt SEK 76.8 m and
amortization of Nordea debt SEK 55 m.APPENDIX Slide / 19
MANAGED BY An EXPERIENCED NEW TEAm
Overview of the management team
TOBIAS SJÖGREN MATS JUHL
Acting CEO since 2020 CFO since May 2020
Born: 1975 Born: 1973
Education: Eexc-MBA at MGruppen Education: Masters Degree in Finance, Lunds University
Principal occupation: Active in the video games industry since 1996. Recently CEO of White Wolf Background: CFO Mips AB (publ.), CFO Tengbomgruppen AB, CFO Sweden Arena Management KB
Entertainment and previously executive positions at Fox in a Box, Paradox Interactive, Stardoll, (Friends Arena), Finance Director Ticnet AB (Ticketmaster), Ekonomomichef Enea AB (publ.)
DDM Agents and DICE. Other assignments: Owner Juhl Management AB
Other assignments: Member of the board in Fox in a Box Stockholm AB Holdings in the Company: Directly owns 200 000 shares of series B
Holdings in the Company: Directly owns 70 000 shares of series B and 30 000 shares of series A
Petra Takeva PER JUHLÉN
Chief Growth Officer since 2021 Head of Production since 2019
Born: 1977 Born: 1976
Education: IHM Business School, Forsbergs School, Bergs School of Communication Education: -
Background: Petra has over18 years of experience working with marketing and business Background: Has substantial industry experience, latest from 7 years as Senior Development
development on both the agency and client side. She has developed concepts and formats for Director at DICE, Starbreeze (2011-2012) and Hansoft
product, services and marketing, primarily in the tech and entertainment industry. Other assignments: –
Other assignments: - Holdings in the Company: –
Holdings in the Company: -
MARTIN TERNHEIM Staffan Nyström
HR Director / Chief People Officer sedan 2019 VP of Publishing since 2021
Born: 1977 Born: 1978
Education: Master degree in HRM, University of Greenwich, 2004, and Bachelor in HRM, Unitec, Education: Master of Science - Industrial Economics, Luleå Technical University
2002 Background: Marketing professional with more than 18 years of experience on both the agency
Background: : HR professional with more than 16 years experience, recently as HR Manager at and client side. Previously ran Wargaming internal full service marketing agency and has been the
Telenor and prior as an HR Consultant at EY working mainly with HR in M&As Head of Marketing for Expansive Worlds (Avalanche Studios)
Other assignments: – Other assignments: –
Holdings in the Company: Directly owns 300 000 shares of series B Holdings in the Company: –
Slide / 20Board of directors
Overview of the Board of directors
TORGNY HELLSTRÖM JAN BENJAMINSON
Chairman of the board since 2019 Director since 2019
Born: 1958 Born: 1958
Education: LL.M Stockholm University. Executive education Thunderbird (University of Phoenix) Education: Degree of Master of Science in Business and Economics, Lund University
Principal occupation: Torgny Hellström is an active board director and management consultant Principal occupation: Long standing experience as a CFO from different listed and private
and has held leading positions as Chairman of DDM Holding AG and MagComp AB, Director to the software companies in Sweden and is currently holding the position of CFO for G-Loot, an e-sports
board of Ture Heading AB and Seapilot and within Anoto Group, most recently as CEO company. Jan has previously held the position of CFO and CEO for TargetEveryOne
Other assignments: Chairman of the Board Precise Biometrics Other assignments: Chairman of Level Eight AB and Board member in Oxcia AB
Holdings in the Company: Directly owns 500,000 Class B shares Holdings in the Company: –
KERSTIN SUNDBERG TOBIAS SJÖGREN
Director since 2019 Acting CEO since 2020
Born: 1954 Born: 1975
Education: Degree of Master of Science in Business and Economics, Stockholm University Education: Eexc-MBA at MGruppen
Principal occupation: Background as an authorised auditor and financial advisor, the most recent Principal occupation: Active in the video games industry since 1996. Recently CEO of White Wolf
17 years as a partner with Deloitte Entertainment and previously executive positions at Fox in a Box, Paradox Interactive, Stardoll,
Other assignments: Chairman of the Board and chair of the audit committee in World Wide Fund DDM Agents and DICE.
for Nature (WWF) Other assignments: Member of the board in Fox in a Box Stockholm AB
Holdings in the Company: – Holdings in the Company: Directly owns 70 000 shares of series B and 30 000 shares of series A
ANNA LAGERBORG
Director since 2020
Born: 1966
Education: Bachelor in systems science
Principal occupation: Executive Search and Business Development for Safemind
Other assignments: –
Holdings in the Company: –
Slide / 21Ownership and share price development
Major shareholders (As per DEC 31, 2020) Nasdaq Stockholm Share price development, B-shares
Shareholder STAR A STAR B Holding, % Votes, % 20 30 000 000
DIGITAL BROS S.P.A 18
61,758,625 24,890,329 11.96 28.57
SWEDBANK ROBUR 1) 25 000 000
20,360,306 86,655,786 14.77 12.91 16
FÖRSTA AP-FONDEN 15,590,358 58,000,000 10.16 9.51
14
20 000 000
FJÄRDE AP-FONDEN 21,241,790 1,400,000 3.12 9.51
FÖRSÄKRINGSAKTIEBOLAGET. AVANZA 12
PENSION 2) 5,096,984 56,059,394 8.44 4.76
10 15 000 000
SWEDFACT HOLDING AB 5,173,890 - 0.71 2.30
8
MICHAEL HJORT 3) 2,858,210 121,600 0.39 1.28
10 000 000
NORDNET PENSIONSFÖRSÄKRING AB 1,113,578 11,667,264 1.76 1.01 6
FREDRIK LUNDGREN 505,762 8,723,029 1.27 0.61 4
5 000 000
WILHELM RISBERG - 13,000,977 1.79 0.58
2
Sum of major shareholders 133,699,503 260,518,379 54.37% 71.04%
Other 35,622,045 294,769,339 45.63% 28.96% 0 0
Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20
Total 169,321,548 555,287,718 100.00% 100.00%
Source: Euroclear as of September 30, 2020 and Factset as of August 18, 2020. Note: 1) Swedbank Robur consists of three funds; Ny Teknik BTI, Småbolagsfond Sverige and Småbolagsfond Norden. 2) FÖRSÄKRINGSAKTIEBOLAGET, AVANZA PENSION. 3) Michael
Hjorth owns shares via Indian Nation Aktiebolag.
Slide / 22PAYDAY 2 Since Launch – Active releases
PAYDAY 2 - Net Sales per Month
KUSD
Release PAID
14 000 PD2 Free to Play / 8 FREE
Yakuza Character Summer sale / Biker
million copies given
Summer sale / Big Pack Pack
away
12 000 Bank release Resumed development,
new cosmetic “suit
Summer sale / Ultimate system”
Crimefest 2014 Spring break 2015 Goat Simulator Pack
Armored Edition
10 000 Transport DLC
Scarface Pack Summer sale (95% Buluc’s
Diamond Heist / Summer sale /
Death Wish discount first time) Mansion Heist
Clover / New Bundles Sokol / Golden Grin
update Silk Road
8 000 Spring Break 2016 / Spring Break 2017 / The
Campaign
Mask packs Hard Core Henry Search for Kento Free to Play release
Crimefest 2015 Crimefest Free to Play
6 000 San Martìn
2016
Bank Heist
Crimefest 2017 Summer sale
Summer
4 000 sale/Breakfast in
Tijuana Heist
2 000
0
Sep-13
May-14
Sep-14
May-15
Sep-15
Sep-16
Sep-17
Sep-18
Sep-19
Sep-20
Nov-13
Nov-14
Nov-15
Nov-16
Nov-17
Nov-18
Nov-19
Nov-20
May-13
Jul-13
Mar-14
Jul-14
Mar-15
Jul-15
Mar-16
May-16
Jul-16
Mar-17
May-17
Jul-17
Mar-18
May-18
Jul-18
Mar-19
May-19
Jul-19
Mar-20
May-20
Jul-20
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Slide / 2623Overview of global Gaming market
Large and growing addressable games market Size and growth of game market
USDbn
▪ Global sales estimated to USD 159bn in 2020
CAGR: 10%
▪ Expected annual growth (CAGR) of 9,3% year on year 196 201
165 178
▪ Market expected to generate sales of USD 201bn by 2023E 139 152
▪ Market growth drivers are an increased ability to go online and
mobile platforms
2018 2019E 2020E 2021E 2022E 2023E
Revenue split by region
2020, %
22% Europe, Middle East & Africa
Latin America
49% 4%
North America
Asia-Pacific
25%
Source: Global Games Market Report 2020 by Newzoo.
Slide / 24Consolidated income statement KSEK 2019 2020 Q4’19 Q4’20 Net sales 280,002 118,006 51,108 32,592 Direct costs -661,52 -31,074 -225,464 -8,73 Gross profit (-loss) -381,52 86,932 -174,356 23,862 Selling and marketing costs -12,048 -8,464 -2,05 -2,16 Administrative expenses -109,61 -69,428 -24,453 -16,11 Other revenue 19,221 1,835 10,191 -9,973 Other expenses -20,408 0 -3,542 0 Operating profit (-loss), EBIT -504,36 10,875 -194,21 -4,381 Financial income 84,266 0,628 46,757 0,3 Financial expenses -30,866 -139,864 -8,239 -11,91 Share of profit or loss from holdings recognized using the equity method of accounting -1,462 -2,112 -1,043 -0,365 Profit (-loss) before tax -452,42 -130,473 -156,735 -16,356 Income tax 51,325 0,193 58,456 -0,238 Net profit (-loss) for the period -401,099 -130,280 -98,279 -16,594 Slide / 25
Balance sheet
KSEK 2019 2020 KSEK 2019 2020
31/12/19 31/12/20 31/12/19 31/12/20
ASSETS
Non-current assets EQUITY AND LIABILITIES
Intangible assets
Equity attributable to owners of the parent
Goodwill 43,601 38,827
Other intangible assets 240,221 228,514 Share capital 6,587 14,492
Capitalized development costs for own Other contributed capital 1,711,334 1,979,111
81,518 171,435
games and technology development Reserves 21,400 21,646
Investments in publishing projects 4,056 3,974 Retained earnings including net profit for the -1,733,163 -1,786,751
period
Financial assets - -
Non-controlling interest
Financial assets 6,258 7,683
Total equity 6,158 228,498
Investments in joint ventures 3,195 1,083
Non-current lease receivable 5,716 2,612
Deferred tax assets - 161 Non-current liabilities
Non-current liabilities, earnouts 62 -
Property, plant and equipment Deferred tax liability 7,853 -
IT equipment and other equipment 12,850 6,704 Non-current lease liability 55,272 37,147
Right-of-use assets - buildings 63,764 48,866 Other non-current liabilities 121,009 292,702
Total non-current assets 461,179 509,859 Total non-current liabilities 184,196 329,849
Current assets Current liabilities
Inventories - - Current liabilities, earnouts - 18
Trades and other receivables 10,391 4,061
Trade and other payables 342,468 103,345
Current lease receivable 3,106 2,627
Current lease liability 19,181 19,135
Prepaid expenses and accrued income 33,425 34,736
Accrued expenses and deferred income 38,506 27,861
Cash and cash equivalents 82,787 157,423 Total current liabilities 400,155 150,359
Total current assets 129,709 198,847
Assets held for sale 1,084 - Liabilities held for sales 1,463 -
TOTAL ASSETS 591,972 708,706 TOTAL EQUITY AND LIABILITIES 591,972 708,706
Slide / 26Consolidated statement of cash flows KSEK 2019 2020 Q4’19 Q4’20 Operating activities Cash flow from operations -504 362 10 875 -4 381 -194 210 Adjustments for non-cash items 586 897 37 053 14 561 225 446 Interest paid -9 301 -385 - -7 947 Interest received - - - 709 Income taxes paid - - - - Cash flow from (-used in) operating activities 73 234 47 543 10 180 23 998 Cash flow from changes in working capital Increase (-) / decrease (+) in operating receivables 32 538 66 851 8 735 -98 784 Increase (-) / decrease (+) in operating liabilities -56 264 -139 034 -24 434 77 858 Cash flow from (-used in) operating activities 49 508 -24 640 -5 519 3 072 Investing activities Purchase of property, plant and equipment -2 092 -944 -493 - Sold non-current assets 217 51 25 217 Divested subsidiaries 67 202 -472 - - Investments in other financial assets -1 067 - - -6 205 Investments in own games and technology -92 412 -94 541 -23 862 -28 340 Investments in publishing projects -8 087 -309 -132 - Cash flow from (-used in) investing activities -36 239 -96 215 -24 462 -34 328 Financing activities New issue - 270 999 - - Increase in non-current liabilities - -1 598 -884 2 185 Repayment of loans - -55 000 - -1 214 Effect of financial lease - -18 802 -4 775 - Cash flow from (-used) financing activities - 195 599 -5 659 971 Cash flow for (-used in) the period 13 269 74 744 -35 640 -30 285 Cash and cash equivalents at the beginning of the period 69 289 82 787 193 200 113 192 Exchange difference in cash and cash equivalents 229 -108 -137 -120 Cash and cash equivalents at the end of the period 82 787 157 423 157 423 82 787 Slide / 27
Game development process and scalability Example
Game design stage Pre-production Production Release -> LIVE SERVICE
Typical DEVELOPMENT
Definition of scope of the game Ramp up and full team size Live operations team size
process
Feature set definition Build out feature set Continued developement
Technical Scope & Validation Build out content
Design Documentation Release & Live operations
Technical playable Vertical Slice Marketing / PR plans & execution
Team size over project
Design Pre-Prod Production Release Live
Slide / 28Starbreeze in the value chain
IP
Developers Publishing DISTRIBUTORS
▪ Develop and produce games ▪ Finance all or part of development ▪ Own distribution channels or the
platforms on which the games are
▪ May wholly or partially own the ▪ Control and quality assure played
development project or be development
externally contracted and work ▪ Distribution may be digital or
against fixed compensation and ▪ Marketing through traditional physical
royalty after game release ▪ Sales channels
Illustrative example,
Self Publishing
Selling price (USD)
VAT, %
49.9
10
Illustrative example,
Publishing
Selling price (USD)
VAT, %
49.9
10
Digital:
2.2BN
gamers globally
Cost per unit sold, % - Cost per unit sold, % -
Distribution fees, % 30 Distribution fees, % 30
Starbreeze's net sales 31.4 Publisher’s netsales 31.4 Physical:
Rev. share ext. dev.,% 50
Publisher’s share 15.7
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