THQ Nordic AB (publ) acquires Milestone s.r.l. Investor Presentation August 14th, 2019
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
THQ Nordic AB (publ) acquires Milestone s.r.l.
Investor Presentation
August 14th, 2019
THE THE THE
BUSINESS DEAL FUTURE
GLOBALLY LEADING UPFRONT PURCHASE PRICE EUR 55.8M CONTINUED DEVELOPMENT OF
RACING GAMES COMPANY EQUIVALENT TO AN EV OF EUR 44.9M THE BEST RACING EXPERIENCES
IMPRESSIVE PORTFOLIO PURCHASE PRICE STRUCTURE STRONG PIPELINE
50 games developed and • Whereof cash: EUR 44.3m Ten games planned (FY20-22),
8 million games sold since 2013 including five currently in development
• Whereof THQ Nordic B-shares: EUR 11.5m
• Net cash: EUR 10.9m (per closing)
Plus potential earn-out (FY20-22)1 REALIZING POTENTIAL SYNERGIES
A LEADING RACING DEVELOPER based on achieved accumulated Adj. EBIT2 levels
within distribution, marketing, know-how
creating epoch-defining two wheel racing titles and IP development
using state-of-the-art AI technology below 70% of target Adj. EBIT = No earn-out
100% of target Adj. EBIT = EUR 28.9m
above 130% = Earn-out capped at EUR 37.6
ATTRACTIVE BUSINESS MODEL STRONG FINANCIAL CONTRIBUTION
INCREASING ITALIAN PRESENCE
recurring cash flows Net revenues EBITDA Oper. EBIT with established developer and publisher
from yearly/bi-yearly releases 27.5-32.25 MEUR 15.5-18.0 MEUR 10.75-12.5 MEUR
Target financials FY201
1. Refers to Milestone’s financial year July-June
2. Based on agreed adjustments and according to Italian GAAP 3
50 8 MILLION 10
DEVELOPED GAMES SINCE INCEPTION TOTAL # OF GAMES SOLD SINCE FY13 UNRELEASED GAMES1
1994
2019
1. With release dates scheduled during the period Aug 2019 – Mar 2022 4
TEAM
THE
STUDIO
25 MILAN c. 200 LUISA BIXIO IRVIN ZONCA IVAN ORIETO
YEARS IN GAMING ITALY FTEs
CEO Executive Producer Head of Development Oper.
10+ years with Milestone 14+ years with Milestone 2+ years with Milestone
PC/CONSOLE RACING GAMES
across all major platforms
INDEPENDENTLY DEVELOPS & PUBLISHES
LICENSED AND OWN IP ANDREA LOIUDICE MAURO NOTARBERARDINO ALEXANDRE LEBERTRE
Marketing Manager HR Manager Head of Technology
a transition from work-fore-hire since 2013 3+ years with Milestone 8+ years with Milestone 5+ years with Milestone
AWARDS
EXPERT TEAM RENOWNED FOR
CREATIVITY AND EXPERIENCE
and with immense passion for motor sports
MOST LICENSED BIKES BEST TRACK SELECTION BEST TECHNICAL IMPLEMENTATION
IN A VIDEOGAME SLRE (2016) RIDE (2016)
RIDE (2016) BEST SURPRISE BEST TECHNICAL IMPLEMENTATION
RIDE2 (2016) Valentino Rossi the Game (2017)
BEST BIKE GAME BEST VIDEOGAME COMPANY
MXGP3 (2018) (2019)
5
A SOFTWARE HOUSE FIRST MOTOCROSS NEW LICENSE SERIES
INCEPTION ON TWO WHEELS TITLE RELEASED AND IP
First Moto GP and
SBK: Superbike
Founded Graffiti World Monster Energy Supercross
(1994) Championship 2007 First motocross niched title MXGP released
Renamed Milestone titles released released and first MotoGP title
Off-road focused Gravel (own IP)
(1996) published by Milestone
released
1994 1997 2009 2015
- - 2007 - 2013 - 2018
1996 2006 2010 2016
Development of titles such as
Screamer Rally and Superbike World Superstar V8 Racing and World Rally New own IPs RIDE and Extending the MXGP series
Championship series Championship 2010 released, proving Sébastian Loeb Rally EVO with MXGP PRO release
(partnership with Electronic Arts) Milestone’s diverse capabilities released
EARLY SUCCESS STORYS FOUR-WHEEL GAME CAPABILITIES TWO NEW IPS SERIES EXTENSION
6
Three year timeline matched with ending March
Released titles
Unreleased titles
TO BE RELEASED TO BE RELEASED
Apr, 2020 Apr, 2021
UNDISCLOSED TITLE
MOST RECENT RELEASE TO BE RELEASED TO BE RELEASED
6 Jun, 2019 Aug, 2020 Jul, 2021
March 2020 March 2021 March 2022
2019 2020 2021 2022
UNDISCLOSED TITLE
based on new IP
TO BE RELEASED TO BE RELEASED TO BE RELEASED
27 Aug, 2019 Nov, 2020 Aug, 2021
UNDISCLOSED TITLE SUPERCROSS 5
TO BE RELEASED TO BE RELEASED TO BE RELEASED
Feb, 2020 Mar, 2021 Feb, 2022
7
Metascore User score Positive reviews
Developer: Milestone s.r.l.
Publisher: Milestone s.r.l. 79 8.5 82%
Genre: Racing, Simulation, Sports
Modes: Single/Multi-player online
First series release: 2007
Most recent series release: June, 2019
Licensed title
‘‘
Physical Digital
should be at the top of your list 36%
when picking up a new racing game 64%
2.5 million
80/100
Sold main games Physical vs Digital sales FY19
GAMESPEW since 2013
10 June,2019
Note: Data from Metacritic related to The 2019 XBOX ONE release 8
Metascore User score Positive reviews
Developer: Milestone s.r.l.
Publisher: Milestone s.r.l. 72 6.9 64%
Genre: Racing, Simulation, Sports
Modes: Single/Multi-player online
First series release: 2014
Most recent series release: June, 2018
Licensed title
Physical Digital
‘‘ certainly one of the best
bike racers out there
2.3 million
30%
70%
90/100 Sold main games Physical vs Digital sales FY19
THE XBOX HUB since 2013
10 July,2018
Note: Data from Metacritic related to The 2018 XBOX ONE release 9
Metascore User score Positive reviews
Developer: Milestone s.r.l.
Publisher: Milestone s.r.l. 69 8.3 67%
Genre: Racing, Simulation, Sports
Modes: Single/Multi-player online
First series release: 2018
Most recent series release: February, 2019
Licensed title
Physical Digital
‘‘ It might even be the best
supercross game ever made
0.9 million
72%
28%
80/100 Sold main games Physical vs Digital sales FY19
GAMESPEW since 2018
5 February, 2019
Note: Data from Metacritic related to Monster Energy Supercross XBOX One, and Steam review to the PC release 10Metascore User score Positive reviews
Developer: Milestone s.r.l.
Publisher: Milestone s.r.l. 76 7.5 75%
Genre: Racing, Simulation, Sports
Modes: Single/Multi-player online
First series release: 2015
Most recent series release: November, 2018
Own IP
Physical Digital
‘‘ definitely a game to get
for every motorcycle lover
1.4 million
45%
55%
86/100 Sold main games Physical vs Digital sales FY19
MONDXBOX since inception
9 December, 2018
Note: Data from Metacritic related to RIDE 2018 release, and Steam review to the 2015 initial PC release 11T h a n k Yo u
12Extra slides
13Acquiring entity: Koch Media GmbH
Income statement Balance sheet
Milestone s.r.l. Milestone s.r.l.
(as adjusted) (as reported)
EURm Jul 2018 - Jun 2019 EURm 30 Jun, 2019
Net revenues 28.20 Intangible assets 0.26
Other revenues 11.89 Property, plant and equipment 0.39
Total Revenues 40.09 Financial assets 0.14
General operating expenses -25.09 Inventories 2.96
EBITDA 14.99 Current receivables 10.03
Depreciation, amortization and write-downs -5.69 Cash and bank balance 10.70
EBIT 9.31 Total assets 24.48
Financial items -0.13
EBT 9.17 Equity 15.93
Taxes for the period -2.71 Provisions 3.77
Net result for the period 6.47 Current liabilities 4.79
Total equity and liabilities 24.48
▪ Excess of purchase price over book value of EUR
▪ Net revenue driven by successful releases of RIDE III,
39.9m based on the above Balance Sheet
Supercross 2 and MotoGP 19
▪ EBIT-margin of c. 33%1 driven by continued growth in
online sales
Note: Financials to be consolidated from the date of closing (14 August 2019)
Note: After applying estimated adjustments to align with THQ Nordic’s accounting principles.
1) EBIT-margin calculated on Net Revenues
14You can also read
