STARBREEZE investor Presentation - Carnegie Nordic Gaming Seminar, 31 May 2018 (2024)

STARBREEZE investor Presentation Carnegie Nordic Gaming Seminar, 31 May 2018Slide / 1

Starbreeze today Office locations 620 San Francisco Stockholm (HQ) employees Los Angeles Brussels§ First listed gaming company in Northern Europe founded in 1998 Paris Luxembourg§ Independent developer and publisher of PC and console games Bangalore and VR products & Dehradun§ Net sales of EUR 35m Barcelona§ Listed on Nasdaq Stockholm – Market cap EUR 415mNet Sales splits strong ips Retail Other 5% 7% Publishing PC 61% 60% Starbreeze Games 34% Console 40% Psychonauts 2 Digital 93%Slide / 2

The Payday successCase study: payday Games as a service model GAAS sales trend compared to a typical game (GAAS)DLCS AND UPDATES>170 Marketing 100 000 Crimefest Spring breakUNITS SOLD Y community event community event>16,000,000 Events Community 80 000 rPAYDAY 2 IN GROSS SALES - 60 000>200M EUR Free game Steam summer sale DLCs 40 000STEAM COMMUNITY MEMBERS updates T 25,600,000 20 000Action / Co-op 0Release datesAugust 2013 (PC) PAYDAY 2 Typical gameSlideJune /2015 3 (Console)

Key INSIGHTS Gameplay first Community – Strong brand and Replayability it’s not about you, Global relevancy long term it’s about themSlide / 4

STARBREEZECase study: Dead by DaylightDLCS AND UPDATES>10UNITS SOLD>3,000,000DBD IN GROSS SALESEUR 40mSTEAM COMMUNITY MEMBERS>800,000Asymmetric horrorRelease datesJune 2016 (PC)June 2017 (Console)Slide / 5

Building a focusedcatalogueOwn games – Publishing –on our home turf Expanding market§ co-operative § Expanding genres§ 1st person shooteR § Strong IP§ Gameplay first § And/or top ranked§ Replayability studio/creator§ FuNSlide / 6

Building strong IP:sSlide / 7

STARBREEZEGlobalmindsetGames should appeal to a globalaudience Expansion to theStrong distribution partners in Asian marketplace for Europe and the US Advantages Larger addressable market Geographic diversificationSlide / 9

For all platforms PC and Console VR MOBILE § Main platforms § high potential market § Successful IP:s also to be § Simultaneous development § 9 titles available today developed for mobile § PAYDAY 2 for VR largest vr § Drive interest for games game on the market released § PAYDAY CrimeWar to be March 2018 released in 2018Slide / 10

From one-trick pony to A gaming powerhouse 2-3 own 3-5 larger Aim for Market large titles publishing titles leadershipSlide / 11

Illustrative image of current and future service lines $Current and PAYDAY 3 10 CrownsFuture PAYDAY 3RevenuestreamsSlide / 12 TIME Production Live game

accelerating growth ~200 Revenue generators 2020 (financial target) Current revenue generators System Shock 3 35 2017 2020E Net sales (EURm)Slide / 13

Our future starsSlide / 14

STARBREEZEOverkill’s thewalking deadStarbreeze own developmentNarrative driven co-operative1st person shooteRBased on the smash-hit graphicnovel series by Robert KirkmanOne of the worlds most populartv seriesExclusive rights for allplatforms/marketsSlide / 15

ProjectcrossfireStarbreeze own productionPremium co-operative 1st personshooteRBased on smilegate’s mega ipcrossfire with 650M playersWesterN version of the gameMulti platform/Global reachSlide / 16

geminoseStarbreeze own developmenta game where Magic, Music andDance is at the heart of theGeminose Superstars worldOwn ipGlobal reachpremiering exclusively for theNintendo Switch 17Slide / 20

psychonauts 2Publishing title Signed in 2017third-person action/adventureCreator: tim SchaferStudio: Double Fine ProductionsPc/Global reachInvestment of 8 MUSDSlide / 18

STARBREEZESystem shock 3Signed in 2017A SCI-FI RPG FPS game withINTRIGUING CHARACTERSCreator: Warren SpectorStudio: Otherside EntertainmentPC/global reachInvestment of 12 mUSDSlide / 19

STARBREEZE10 crownsSigned in 2018an epic-scale turn-basedstrategy gameCreators behind CivilizationStudio: Mohawk GamesPC/global reachInvestment of 7.7 mUSDSlide / 20

STARBREEZEPayday 3Starbreeze own productionco-operative 1st person shooteROwn ipMulti platform/Global reachSlide / 21

Virtual realitySlide / 22

LBE global VR Revenue Forecast 2017-2021 (MUSD) Source: Location-Based VR entertainment Market Report, 2017-07-12, Greenlight Insights >4x 1 400 increase 1 200 55 187 1 000 45 134global 800 35 146 105revenues 600 110 80reaching 400 24 73 55 8251.2 billion 616 14 457 200 41 31 307usd in 2021 0 155 2017 2018 2019 2020 2021 Asia-Pacific Europe North America OtherSlide / 23

Vr strategy – become A Leader for premium contentIllustrative Profit Premium Content Location-based vr centers StarVR STOR M Time Investments to enable leadership for premium contentSlide / 24

StarVR joint venture IP rights Reference design FinancingStarvr R&D R&D Productionto unlock Ownership 33% 67%b2b vr Listed on Taipei Exchange, market cap 150 MEURverticals Sales Aim for IPO on Taiwain Exchange Next generation headset reach market 2018 Starbreeze owns and maintains core IPR and trademarks Marketing Support and aftermarketSlide / 25

Vr strategy – become A Leader for premium contentIllustrative Profit Premium Content Location-based vr centers StarVR STOR M Time Investments to enable leadership for premium contentSlide / 26

Vr strategy – become A Leader for premium contentIllustrative Profit Premium Content Location-based vr centers StarVR STOR M Time Investments to enable leadership for premium contentSlide / 28

Financial overviewSlide / 29

Starbreeze evolution CAGR: ~28% 34 36 21 14 16 11 8 8 3 5 Founded 1998 2012 2013 2014 2015 2016 2017 -2 Net sales (EURm) EBITDA (EURm) WORK FOR HIRE OWN GAMES DEVELOPMENT PUBLISHING PHYSICAL DISTRIBUTION, FEW PLATFORMS DIGITAL DISTRIBUTION, MULTI-PLATFORM VRSlide / 30

Increased investments driven by initiatives Investments in own development and publishing 2015–2017 113% 412 180 56% 195 44% 40 95 232 17 154 78 2015 2016 2017 Publishing projects (SEKm) Own games and technology (SEKm) Total investments in game and technology development share of net salesSlide / 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 100% payday~85–100% payday ~40–60% 96% 12 90% EURm 11 80% 77% 10 79% 10 10 10 9 70% 8 60% 56% 7 54% 54% 50% 6 46% 46% 5 5 5 44% 5 5 40% 4 4 3 3 30% 23% 20% 21% 10% 4%2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 2016 2017 2018 PAYDAY 2 Dead by Daylight RAID: World War II Other Base game DLCSlide / 32

experienced management team Bo Andersson Sebastian Saül Almir Stéphane Mikael Maeva Ann Charlotte Johanna Klint Ahlskog Gascon Barba Listo Decroix Nermark Sponbergs Svensson Wikland CEO CFO Global Development Global Brand Director CDO COO EVP of Head of Investor Global Human Director & Producer (CEO 2011–2013) Communications Relations and Resources Director Corporate CommunicationsSelectedworkexperienceYears ofrelevantexperience 20 years 12 years 13 years 10 years 20 years 33 years 18 years 20 years 13 yearsSlide / 33

THANKS! The Starbreeze teamSlide / 34