starbreeze.

com

Building Community by
Making Games
Third Quarter 2023
2023-11-16
Today’s presenters

TOBIAS SJÖGREN, CEO MATS JUHL, CFO

2
 Agenda

Agenda

1. Starbreeze in Brief
2. Quarter and Period in Brief
3. Our Games
4. Third Party Publishing & Other Projects
5. Group Financials

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Starbreeze in
Brief 01
4
 Starbreeze in Brief

About Starbreeze
• Independent developer and creator of PC
and console games targeting the global
market

• Develops games based on proprietary STOCKHOLM (HQ)

and third-party rights, both in-house and

together with external game developers

• Executing on a multi-IP, cross-media, and

LONDON
Third Party Publishing strategy to broaden
income streams, lower risk and diversify
portfolio

•
PARIS
Famous for the successful PAYDAY™
series

• Stable and predictable revenue streams BARCELONA

from PAYDAY™ 2 since its release in 2013

• PAYDAY™ 3 launched in September 2023

5
 Starbreeze in Brief

1998 2000 2002 2004 2007 2009 2011

It all begins… Listed Enclave Knights of the The Darkness Chronicles of PAYDAY: The Heist
Founded under the on NASDAQ A medieval, Temple Gritty, first-person, Riddick – Assult The original. Co-op
name O3 Games AB multiplayer-only game action-adventure first-person shooter
on Dark Athena
game based on
Chronicles of First-person action
comic book IP
Riddick – Escape and stealth game,
based on movie
from Butcher Bay
license
based on movie license

2012 2013 2016 2017 2021 2022 2023

Syndicate PAYDAY 2 Dead by Daylight PAYDAY 2: Reservoir Co-publishing deal 3rd Party Publishing The year of
The first in a series of The sequel. Selling Publisher of this Dogs Heist with PLAION for re-started PAYDAY 3
science fiction games millions of copies asymmetric co-op and Collaboration with the PAYDAY 3
the first year PvP survival horror biggest heisters in Starbreeze Nebula
game developed by movie history A community platform
Behaviour Studios
10 Years of PAYDAY
“Best multiplayer launched
game of the
year”
 Starbreeze in Brief

Starbreeze in Numbers

FOUNDED IN NET SALES, SEKm (R12)

1998 597.9
INITIAL PUBLIC OFFERING EBITDA, SEKm (R12)

2000 479.3
PERSONNEL CASH & CASH EQUIVALENTS, SEKm

187 312.9
7

Strategy – A Strong Foundation to Deliver and Grow
Core focus created
capacity for growth...
ü Secure PD3 development and
quality
ü Continued monetization of PD2 –
DLC
ü Develop and implement
Starbreeze Nebula – enhanced,
multi-platform community
ü Expanding IP portfolio
2022
…into a broadened IP
portfolio…
ü PAYDAY 3 launching in
September 2023
• Ensuring high LTV for PAYDAY 3
through consistent release of
paid and free DLCs
ü New games in production &
pre-production for release in
2026 onwards
ü Licensed iconic IP for 2026
game
ü Expanding Third-Party
Publishing
2023-2024
Starbreeze in Brief
...building games, IP and
beyond
• Self-publishing of own titles
• Operating several games on the
market – increasing revenue
streams and reducing title-risk
• Continuous monetization of all
titles published by Starbreeze
• Leading co-creation and
building franchises beyond our
games
• Expanding Third-Party Publishing
2025-2027
8
 Starbreeze in Brief

We make cooperative multiplayer

games with a strong focus on
community engagement, committed
to having a long lifetime by updates
and support

9

Our Game Cornerstones
Experience Lifetime
Together Commitment
• Creating a foundation
• Cooperative Multiplayer for engagement to
– where you really work
support growing and
together! expanding the
community over time
• PvE or PvP – both work if • Replayability is absolute
it is a cooperative key for our games
experience
• Undeniable value, added
over time – fair
monetization methods
• Always strong focus on
togetherness – through
modding, community, • A mix of free and paid
streaming etc. updates, ensuring
everyone gets more
Starbreeze in Brief
Community “Larger than Life”
Engagement Experience
• Co-creating the • Focus on gameplay and
gameplay experience embodying iconic
personas
• Co-creative
development
processes • Being part of a crew, or
a journey, together
• Modding and in-game
User Generated • Player evolution, there
Content (UGC) is always a way to
progress and develop
• Social media
engagement and • Our games embodies
integration, in a different play styles,
transparent and always with a feeling of
honest way tension
10
 Starbreeze in Brief

Our Approach to Future Projects

• Starbreeze will be publisher by name of PAYDAY™ 3 Branch Bank

all own titles – a significant move

Concept Art
upwards in the value chain
• We will expand our Publishing department
to manage our own titles as well as a
portfolio of third-party games
• We will look for partners where suitable
to achieve a favorable risk/margin-
profile – this can be for physical
distribution, deals with platform owners
(i.e. Xbox Game Pass, Epic Games, Steam)
• Combination of partnerships and
revenue from launched titles to self-
sustain future development

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Quarter &
Period in Brief 02
12
 Quarter & Period in Brief

Key takeaways

PAYDAY™ 3 launched, Starbreeze recoup reached as of September 30th

Resolved SEK 380m in debt (book value), limited indebtness

Cash and cash equivalents of SEK 313m end of quarter

High activity in Third Party Publishing, building breadth and depth

First free DLC for PAYDAY™ 3 announced, coming in November

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 Quarter & Period in Brief

Financial update Q3 2023

NET SALES, SEKm PROFIT/LOSS AFTER TAX, SEKm

494.4 (38.7) 299.8 (-7.5)

EBITDA, SEKm

441.8 (24.4)
DEPRECIATION, AMORTIZATION & IMPAIRMENT, SEKm

142.0 (15.4)
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 Quarter & Period in Brief

Explaining Starbreeze’ revshare

STARBREEZE REVENUE SHARE AFTER DEDUCTION FOR

RUNNING COSTS AND INVOICED RUNNING COST
(POSITIVE CASH FLOW EFFECT WHEN CASH IS
RECEIVED):

PRELIMINARY TOTAL REVENUE FROM PAYDAY 3 UP

UNTIL SEPTEMBER 30, AFTER DEDUCTION OF
SEK 193.7m PAYDAY 3 REVENUE ATTRIBUTABLE TO STARBREEZE
(REVSHARE PLUS REVERSED DEBT FOR HISTORIC
PLATFORM FEES AND LOCAL TAX: FINANCING

SEK 570m PREVIOUSLY RECEIVED GAME FINANCING THAT, IN

ACCORDANCE WITH IFRS, HAS BEEN RECOGNIZED AS
SEK 440.8m
DEBT, AND IS REVERSED DURING THE QUARTER
(HISTORIC POSITIVE CASH FLOW EFFECT WHEN CASH
WAS RECEIVED):

SEK 247.1m
15
 Quarter & Period in Brief

PAYDAY™ 3 launch in numbers

Monthly Active Users (MAU) “Year-1” Paid DLCs

3,167,938 4 packages
Peak Daily Active Users (DAU) Announced Free DLCs

1,347,510 1 (so far…)

Peak Concurrent Players (CCU) Available on:

>220,000 .

16
 Quarter & Period in Brief

Operational Summary
PAYDAY at New York Fashion Week PAYDAY™ 3 launched Sept 21st Roboquest 1.0 launched

Turtle vs Turtle launched GodsTV announced – release in 2026 PAYDAY™ 3 free update, two new heists

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Our Games 03
18
 Our Games

Our Projects OWN TITLES

2026 2027

STATUS: RELEASED SEPTEMBER 21, 2023 STATUS: IN PROUDUCTION STATUS: PROOF-OF-CONCEPT/PITCH

GENRE: CO-OPERATIVE MULTIPLAYER GENRE: CO-OPERATIVE MULTIPLAYER GENRE: CO-OPERATIVE MULTIPLAYER

BUSINESS MODEL: GAMES AS A SERVICE

BUSINESS MODEL: GAMES AS A SERVICE BUSINESS MODEL: GAMES AS A SERVICE

DEVELOPER: STARBREEZE ENTERTAINMENT

DEVELOPER: STARBREEZE ENTERTAINMENT DEVELOPER: STARBREEZE ENTERTAINMENT

DEEP SILVER / STARBREEZE

PUBLISHER: PUBLISHER: STARBREEZE ENTERTAINMENT
ENTERTAINMENT PUBLISHER: STARBREEZE ENTERTAINMENT
THIRD PARTY PUBLISHING

STATUS: TO BE RELEASED 2024 STATUS: RELEASED NOVEMBER 7, 2023 STATUS: RELEASED OCTOBER 26, 2023 STATUS: TO BE RELEASED 2026

GENRE: SINGLE-PLAYER STRATEGY GENRE: CO-OP FPS ROUGELIKE GENRE: FORNITE ISLAND GENRE: CO-OP SHOOTER

BUSINESS MODEL: GAMES AS A SERVICE

BUSINESS MODEL: GAMES AS A SERVICE BUSINESS MODEL: N/A BUSINESS MODEL: GAMES AS A SERVICE

DEVELOPER: WALKING TREE GAMES GmbH

DEVELOPER: RYSEUP STUDIOS DEVELOPER: TORUS GAMES DEVELOPER: MELBOT STUDIOS

PUBLISHER: STARBREEZE ENTERTAINMENT

PUBLISHER: STARBREEZE ENTERTAINMENT PUBLISHER: STARBREEZE ENTERTAINMENT PUBLISHER: STARBREEZE ENTERTAINMENT

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starbreeze.com

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 Our games

PAYDAY™ 2 KPI development

Base game vs DLC split Breakdown of
MAU development last PD2 Steam launch to Starbreeze’s revenues
Peak CCU per month 12 months date from Steam by region
%

100 000 1 800 000 100

4 46 55 53 78 71 67 73 76 77 77 Oceania, 3% Middle East, 1%
96
Latin America, 4%
1 500 000
80
North America, 47%
75 000 Russia/CIS, 6%

1 200 000
60

50 000 900 000 54 Asia, 15%

40 45 47

600 000 33
25 000 29 27
20 24 23 23
22
300 000

0 Europe, 24%
0 0

TD
21
20

23 22
13

15

19
14

16
17
18
Jun 21

Sep 23
Sep 22

Jun 23
Jun 22
Sep 21
Dec 21

Dec 22
Mar 23
Mar 22

Sep 23
Sep 22

Jun 23
Dec 22

Mar 23

20
20
20
20

20

20
20

20

20

20 20
-Y
Base DLC

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Third Party
Publishing &
Other Projects 04
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 Third Party Publishing & Other Projects

Third Party Publishing

• Established during 2022 Games reviewed and declined

• Leveraging Starbreeze experience as
developer and publisher to help
developers bring their games to
market
>150
• Looking for games with Games currently in review
Starbreeze pillars;
•
•
•
Experience Together
Lifetime Commitment
Community Engagement
~20
• Larger Than Life Experience

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 Third Party Publishing & Other Projects

Roboquest 1.0

Steam® reviews, positive Units, Early Access W1 vs 1.0 launch W1

94 percent +850 percent

Peak Daily Active Users (DAU) GaaS roadmap

~100,000 To Be Announced
Average increase in DAU Available on:

+1,000 percent

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 Third Party Publishing & Other Projects

GodsTV

About:
A multi-player “cartoon punk”, top down action title,
stylized, irreverent and frantic, set for release in early
2026. Starbreeze will support Melbot Studios with
funding for the game’s development, marketing,
community management and release management.

In GodsTV players are contestants in a deranged TV–

show, a mashup of action, humor, and bizarre
characters. Alien corporations, who present
themselves as “Gods”, offer players unique abilities
and products to fight for ultimate stardom. Choose
your God, unlock their powers and weapons, and
venture solo or in teams into an edgy and irreverent
new universe.

Coming in 2026

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 Third Party Publishing & Other Projects

Turtle vs Turtle

About:
Turtle vs Turtle is a Fortnite Island where two giant
moving battle platforms set the stage for an epic
conflict! The game is played in two teams (1 vs 1 to 8
vs 8 ) and players need to gather resources around
the map to fund the building of turrets and defenses,
and in order to take out their opponents’ platform
while protecting their own.

Developed by the Australian game developer Torus

Games in UEFN (Unreal Editor for Fortnite), Turtle vs
Turtle is available in Epic Games’ Fortnite under the
Fortnite Creator 2.0 program.

Available on:

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 Third Party Publishing & Other Projects

The Tribe Must Survive

About:
Set in a gloomy lovecraftian stone age The Tribe Must
Survive is about finding ways to grow and to protect
your tribe from what lurks in the shadows around it.

All your tribe members have their own personality

and AI-will and generally only do what they want.
Fortunately you can manipulate them with rituals,
buildings, upgrades and other difficult decisions to
get things done.

Developed by Walking Tree Games and published by

Starbreeze Entertainment.

Launching 2024 on:

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 Group financials

Group
financials 05
28
 Group financials

Revenue development – growth in PAYDAY

90% 97% 99% 94% 99%

93% 96% 99% 100%

34.7m 31.1m 23.5m 31.8m 38.7m 33.6m 26.7m 43.2m 494.4m • Net sales for Q3 2023 totaled
to SEK 494.4m (31.8m).
SEKm
• Massive growth in revenues
490,0 6,3 in total as for PAYDAY as
franchise due to the release
390,0 of PAYAY 3.

290,0 • Other revenue mainly relates

494,4 to forwarded costs related
190,0 to PD3, revaluations and
currency effects.
90,0
2,4 3,3 6,3 3,7 8,1 -0,4
34,7 31,1 1,5 31,8 38,7 33,6 1,6 43,2
23,5 26,7
-10,0
Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23

n Other revenue n PAYDAY 2 - share of net sales, % and SEKm

n Net sales n Other - share of net sales, % 29
 Group financials

EBITDA development

SEKm
500 479,4 • EBITDA in LTM Q3 2023 amounted
to SEK 479.4m (62.7m)
400 • A special quarter with the
PAYDAY 3 release leads to
extraordinary figures
300
incomparable to anything
reported in the past.
200

100 64,6 74,9 62,7 66,4 65,9 61,9

55,1 56,4* 56,9 58,2

0
LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23

* EBITDA adjusted for one time effect related to PopReach licensing agreement in Q2 2021

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 Group financials

Cashflow development

SEKm
YTD 2023
1.
1 Operating activities
after changes in
working capital, SEK 302 313
51.9m

2.
2 Investing activities,
SEK -148.9m (game
development)

3
3. Financing activities, 157 52
SEK 301.6m (share
129
issue 414.2m,
108
convertible loan
83
-149.0m, financing for 69
game development
47.9m and financial
lease -11.5m) -149
Year-end 2018* Year-end 2019* Year-end 2020* Year-end 2021* Year-end 2022* 1 2 3 End Q3 2023
*Cash and cash equivalents

31
 Appendix

Operating expenses
Cost base development

SEKm NOTE Q3’23 Q3’22 2022

Direct costs for Q3’23 amounted to SEK 164.7m (16.0m) and consists of costs
Direct costs A 164,677 16,007 60,527 A related to game development, depreciations of IP:n, royalty payments and
non-activatable personnel expenses. The increase from Q3’22 mainly comes
% of net sales 33% 41% 47% from depreciations of IP of 138.0 million compared to 11.5m in Q3’22.

Selling and marketing costs B 18,316 3,670 15,795 Selling and marketing costs amounted to SEK 18.3m (3.7m). The increase from
B
Q3’22 mainly relates to increased activity for PAYDAY 3 and the community
% of net sales 4% 9% 12% platform Nebula.
Administrative expenses C 17,850 13,686 64,074
% of net sales 4% 35% 50% Administrative expenses refer to items including office costs and payroll for
C
employees who do not work in game production or marketing. The higher costs
Number of employees at the are mainly attributable to higher personnel-related costs and reserved salary
191 159 165
end of the period costs related to the company's long-term incentive program regarding PAYDAY
3.
Average number of
D 187 156 154
employees We continue to grow the organization and number of employees increased
Source: Company information.
D with 27 during 2022 and additional 22 during the first quarters of 2023.

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 Appendix

Balance sheet
Assets Liabilities As per December 31, 2022 As per Sept 30, 2023
SEKm SEKm
• Intangible assets amounted • Non-current liabilities
to SEK 540m and consist amounted to SEK 2.4m, Current
primarily of IP rights SEK including Current
52 assets Current
assets 172
161m, capitalized costs for – Lease liabilities of SEK 0.2m liabilities
Current
own game and technology – Tax SEK 1.4m Cash &
liabilities
283
2 Non-current
development SEK 317m and – Other SEK 0.8m equivalents 108
liabilities
Goodwill SEK 50m • Current liabilities amounted 303
to SEK 172.0m, including PPE 23
• PPE (property, plant and Financial 9
– Trade and other payables assets
equipment) relates to right Cash &
of SEK 78.2m
of use assets of SEK 9.7m equivalents
– Accrued expenses and 313
and IT and other equipment deferred income SEK 82.9m
of SEK 3.7m
– Derivative 0.9
– Lease contracts SEK 10.2m
• Financial assets of 8.7m, PPE 13
consists of long-term Non-current Financial 9
deposit 7.4m and liabilities assets 983
investments in joint ventures
1.3m 555
Intangible
assets 387
• Current assets consists of
– Cash and equivalents of Intangible
540
SEK 313m assets
– Prepaid expenses and
accrued income of SEK
250.4m
– Trades and other
receivables of SEK 32.3m 57 Equity Equity
0

*Reclassified from non-current since loan was converted and related debt was amortized in July.
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starbreeze.com

Building Community
by Making Games

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