STRATEGY PRESENTATION 27 NOVEMBER 2018

Transcription

1 STRATEGY PRESENTATION 27 NOVEMBER

2 FOCUS HOME INTERACTIVE STRATEGY DIRECTOR S COMMITMENT EXPERIENCED AND MOTIVATED MANAGEMENT TEAM NOMINATIONS JOHN BERT CHIEF OPERATING OFFICER THOMAS BARRAU NEW MEMBER OF THE MANAGEMENT BOARD VINCENT CHATAIGNIER BUSINESS DEVELOPMENT DIRECTOR AURELIE RODRIGUES SALES DIRECTOR DESSIL BASMADJIAN CREATIVE DIRECTOR 2

3 OUR PROVEN MODEL 3

4 A PROVEN MODEL DESIGN PUBLISHING DISTRIBUTION PROJECT SELECTION Fewer than 1% of projects selected DEVELOPMENT STUDIOS Retail & Digital platforms PRODUCTION FOLLOW-UP DIGITAL & OFFLINE MARKETING SALES Over 50 production staff Over 290 digital promotions in 2017 Nearly 100 distributors worldwide 4

5 A PROVEN MODEL GENERATING VALUE FROM HIGH-POTENTIAL LICENCES ORIGINAL GAMING CONCEPTS NEW BRANDS POPULAR LICENSES FARMING SIMULATOR 19 THE SURGE SPACE HULK: DEATHWING SPINTIRES: MUDRUNNER AMERICAN WILDS VAMPYR CALL OF CTHULHU 5

6 A PROVEN MODEL DELIVERING RESULTS SALES (IN M) + 3 months 89,9 REVENUE CONSISTENT GROWTH IN SALES 1 6 MILLION GAMES SOLD IN 2018 VS 4 MILLION IN 2014 AVERAGE PRICE UNIT INCREASE: >30% VS 2014 A CAGR OF REVENUE: +22% 43 69,2 12 months 75,6 75, e 6

7 A PROVEN MODEL DELIVERING RESULTS GLOBAL REVENUE INCREASED BOTH FOR RETAIL AND DIGITAL DISTRIBUTION SPLIT RETAIL/DIGITAL September 30, 2018* DIGITAL SALES (IN M) +3 months 57,3 8,3 2 65% 35% 43,7 12 months 49,0 32,0 20,2 Retail Digital

8 A PROVEN MODEL DELIVERING RESULTS INTERNATIONAL REVENUE SPLIT FRANCE/INTERNATIONAL March 31, 2018* EVOLUTION OF INTERNATIONAL REVENUES (IN M) +3 months 12,7 3 10% 90% 35,5 56, ,9 67,1 months France International

9 A PROVEN MODEL DELIVERING RESULTS EVOLUTION OF OPERATING PROFIT (IN M) 4 CAGR OF OPERATING PROFIT: +12,3% 6 8,9 9,2 9,

10 A PROVEN MODEL LOOKING AT THE PEERS PEERS REVENUES* FROM 2014 TO 2018 (IN M) 473,8 43,8 135,4 116,0 107,2 69,2 75,6 64,6 69,0 84,5 19,4 19,5 22,8 31,9 163,3 89, ,4 52, e Focus Home Interactive THQ Nordics Paradox Digital Bros Focus delivers consistent revenue, some players show accelerated growth *Sources: FactSet as of adjusted for 2017/2018 revenues. 10

11 A PROVEN MODEL CREATING SHAREHOLDER VALUE Peers earning per share* *Sources: FactSet as of adjusted for 2017/2018 revenues. 11

12 COMPANY SHARE PRICE AND CAPITAL BREAKDOWN 45 SHARE PRICE PERFORMANCE (FROM 4 JANUARY 2016 TO 23 NOVEMBER 2018) 40 CAPITAL ALLOCATION ON 23 NOVEMBER % % 8% 3% Nabuboto Innelec Managers, employees and others Free Float Buy Back Program 2% November

13 MARKET INSIGHT 13

14 MARKET INSIGHT GROWTH OPPORTUNITIES GAME MARKET PER PLATFORM GAME MARKET PER REGION Sources: Newzoo Global Games Market Revenues

15 MARKET INSIGHT KEY FEATURES Content is Key Multiplication of Emergence of Distribution PlatformsNew Technologies & Business Models Market in Consolidation Growing Asian Market 15

16 WHERE WE ARE GOING EEE STRATEGY ENHANCE - EVOLVE - EXPLORE 16

17 ENHANCE EVOLVE EXPLORE 17

18 ENHANCE EXTENDING AND BROADENING OUR STUDIO NETWORK STILL A FRENCH CHAMPION WIDENING THE SCOPE AND MORE TO COME 18

19 DEVELOPMENT BUDGET ENHANCE IMPROVING THE QUALITY OF OUR CONTENT Higher production value Top tier AA quality. Solid content is key and can generate revenue through all distribution channels and on all platforms available in the market. 1-3M 1-7M 1-15M FUTURE 19

20 ENHANCE ENGAGING GAMERS FOR A LONGER PERIOD PREMIUM GAMES DLCs EXPANSIONS SEQUELS 20

21 ENHANCE GREEN LIGHT PROCESS EXISTING PARTNERS TRADE SHOWS EXTERNAL PROPOSALS DIGITAL SOURCING ACQUISITION DATABASE COLLECT AND ORGANIZE DECLINE THE PROPOSAL AND ARCHIVE THE PROJECT STAGE 1 STAGE 2 STAGE 3 OVERVIEW PASS BY EVALUATION BOARD INTEREST PASS BY SPECIALIST SQUAD VALIDATION BY EVALUATION BOARD IN-DEPTH ANALYSIS BY SPECIALIST SQUAD VALIDATION BY EVALUATION BOARD NO MAYBE NO MAYBE NO MAYBE GREENLIGHT STAGE PRODUCTION ANALYSIS MEETINGS FORECASTS VISIT DEVELOPER S OFFICES NEGOTIATIONS CONTRACT FINAL APPROVAL PROJECT SIGNED 21

22 ENHANCE ORGANIZATION CHART JÜRGEN GOELDNER CEO - Chairman of the Management Board DEBORAH BELLANGÉ CFO - Vice Chairman of the Management Board JOHN BERT COO - Management Board Member THOMAS BARRAU Marketing Director - Management Board Member LUC HENINGER Production Director - Management Board Member NIRMALA CHANEMOUGAME Deputy CFO AURELIE RODRIGUES Sales Director VINCENT CHATAIGNIER Business Development Director DESSIL BASMADJIAN Creative Director FINANCIAL TEAM ACCOUNTING BUSINESS AFFAIRS TRADE MARKETING SALES TEAM BUSINESS DEV. TEAM EVALUATION TEAM BRAND MANAGER TEAM PRODUCTION TEAM INFORMATION SYSTEMS HUMAN RESOURCES EVENT MANAGER SALES ADMINSTRATION ART TEAM ADVERTISING RELEASE MANAGEMENT TEAM MANUFACTURING EDITO TEAM SOCIAL MEDIA QUALITY ASSURANCE VIDEO TEAM PRESS RELATION PLAYTESTS WEB TEAM 22

23 ENHANCE EVOLVE EXPLORE 23

24 EVOLVE STRENGTHENING OUR TIES TO KEY STUDIOS CRITERIA FOR POTENTIAL PARTNER High potential partners With proven experience Common vision Synergies OBJECTIVES OF M&A Control over IP Improve margin Extra revenue with extended Create own franchises exploitation of the brand 24

25 EVOLVE TERRITORY EXPANSION CONTINUE CAPITALIZING ON OUR GLOBAL DISTRIBUTION NETWORK (200+ TERRITORIES) IMPROVE PRESENCE IN TERRITORIES WITH HIGH POTENTIAL LIKE ASIA AND LATIN AMERICA SETTING UP COMMUNICATION STRATEGY IN CHINA 25

26 ENHANCE EVOLVE EXPLORE 26

27 EXPLORE MOBILE, LICENSING, MERCHANDISING, PLATFORMS, TECHNOLOGIES, BUSINESS MODELS NEW OPPORTUNITIES FOR EXTRA REVENUE TO BE EXPLORED WITH FOCUS APPROACH AND RESPECT OF VALUES New Platforms New ways of licensing New push towards Streaming New distribution models 27

28 EXPLORE ADDITIONAL PLATFORMS LEVERAGE OPPORTUNITIES VIA LICENSING AND OUTSOURCING AR/VR MOBILE 1 ADDITIONAL PLATFORMS PREPARING FOR TAKE-OFF SELECTION WITHIN FOCUS PORTFOLIO 28

29 EXPLORE LICENSING & MERCHANDISING LEVERAGE OPPORTUNITIES VIA LICENSING AND OUTSOURCING LICENSING MERCHANDISING 2 NEW WAYS OF LICENSING TV SERIES & MOVIE ADAPTATIONS EXPLORE NEW OPPORTUNITIES 29

30 EXPLORE NEW PUSH TOWARDS STREAMING THE BIG PLAYERS ARE ALREADY JUMPING IN 3 NEW PUSH TOWARDS STREAMING THE FUTURE OF GAMING IS IN THE CLOUD Instant access to a large catalog of video games No need to update hardware to access the latest titles New and attractive subscription models (Netflix/Spotify etc ) An increasing number of households equipped with fiber will help cloud gaming to become more accessible 30

31 EXPLORE ADDITIONAL OPPORTUNITIES GAME AS A SERVICE NEWCOMER S (GAFA...) AMAZON 4 NEW DISTRIBUTION MODELS SOLID CONTENT IS KEY AND DRIVES GROWTH SUBSCRIPTI ON MODEL (XBOX GAME PASS ) OPPORTUNITIE S DATA DRIVEN DECISIONS CLOUD GAMING (PLAYSTATIO N NOW ) 31