Financial Statement January-December 2023

MARCH 20, 2024

© REMEDY ENTERTAINMENT 2024

AGENDA

1

Q4 2023 Review

2 Q4 and FY 2023 Financial Results

3

Outlook

4

Status Update

5 Questions & Answers

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Tero Virtala

Terhi Kauppi

CEO

CFO

Q4 and Full Year 2023

Review

Tero Virtala, CEO

Q4 2023 HIGHLIGHTS

  • Revenue decreased by 24.4% to 10.3 M€ (13.6)
  • EBITDA decreased to -3.9 M€ (2.8)
  • Operating profit -12.8 M€ (2.1), operating profit margin -123.9% (15.6%)
  • Cash flow from operations 0.1 M€ (-3.8)
  • Alan Wake 2 was launched on October 27, 2023
  • Alan Wake 2 has since won several awards including Best Game Direction, Best Narrative and Best Art Direction at The Game Awards
  • Codename Vanguard getting a fresh start under the name Codename Kestrel. We recognized an impairment charge of EUR 7.2m impacting Q4 and FY2023 operating profit.
  • Markus Mäki assumed the role of Chief Product Officer and Mika Vehkala was appointed as Chief Technology Officer

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FULL YEAR 2023

HIGHLIGHTS

  • Revenue decreased by 22.2% to 33.9 M€ (43.6)
  • EBITDA decreased to -17.0 M€ (1.9)
  • Operating profit -28.7 M€ (-0.6), operating profit margin -84.4%(-1.3%)
  • Cash flow from operations -16.0 M€ (11.1)
  • Alan Wake 2 was launched on October 27, 2023
  • Alan Wake 2 has since won several awards
  • The Board of Directors proposes that no dividend will be paid (EUR 0.10 for 2022) for the year 2023

© REMEDY ENTERTAINMENT 2024

ALAN WAKE 2 DEVELOPMENT AND ROAD TO LAUNCH

  • Intensive year of development and launch preparations.
  • To finalize the game and ensure top quality, we kept more developers for a longer time with the project than initially planned.
  • While this caused a scarcity of talents for other projects causing some delay, it was proven to be the right decision.
  • Great marketing and promotion campaign by Epic Games Publishing and Remedy Publishing Unit got the game good visibility ahead of launch.

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ACCOLADES ACROSS THE GAMES INDUSTRY

Over 200 awards

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ALAN WAKE 2 SALES AND THE FUTURE

1M 1.3M

Units sold

Units sold

by the end of

by the beginning of

Q4 2023

February 2024

© REMEDY ENTERTAINMENT 2024

ALAN WAKE 2: GOOD GAMES SELL FOR A LONG TIME.

Alan Wake is in the very early phase of sales: We have so far just reached part of the fanbase, and not yet the larger audiences.

Based on Control-learnings (2019 - 2023), there is lot of sales potential ahead of us.

Genre

enthusiasts

Extended

Fan- fanbase Core base

fans

Genre

tryouts

Alan Wake

Buyers at full

fans who

price at launch

preorder

and very early in

the game.

the lifecycle.

Buyers with high interest for the game, but start to activate later, especially with light discounts.

Fans of the genre: buy games mainly at discounts later in the lifecycle.

Anyone interested in good games and genre: Get games with exceptional offers or for free.

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Disclaimer

Remedy Entertainment Oyj published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 07:34:05 UTC.