Remedy Entmt Oyj

Hello everyone and thank you for joining this Remedy Entertainment webcast. My name is Liisa Laranta and I run the investor relations at Remedy. Today we will go through Remedy's business review for July-September 2024. With me here are Tero Virtala, Remedy CEO and Santtu Kallionpää, Remedy CFO. We will have a Q&A session after the presentation. Tero, the floor is yours.

Welcome everyone. All right. So let's have a look at the third quarter highlights. In the third quarter, our revenue was 17.9 million euros, which is over two times more than last year in the comparison period. Our operating profit was 2.4 million euros last year. In the third quarter, it was minus 4.2 million euros. It's good to highlight that the big contributor to our third quarter numbers was a one-time payment that from our new partner Anna Purna came in. So this one-time payment from them will not repeat in the same amount in the upcoming quarters. But all in all, we have been building a tremendous basis for growing profitable business for a long time. And when we look at our development in the past quarters and now the third quarter following, our trajectory is definitely pointing at the right direction. Also, cash flow from our operations was positive, 6.6 million euros. Two important events in the quarter were the strategic partnership with Annapurna and convertible loan made with Tencent. As we discussed in our previous quarter info, we don't anymore have a need to significantly grow the organization. At the same time, our ways of working have all the time improving, which continued now in the third quarter. We have, during the third quarter, also reviewed our operations and cost, done some prioritizations, gotten more focused, and also some cost savings in our operations. Overall, we can clearly see that with the people and partners we now have, how we work at the moment, with the current size remedy, we are getting more and better output than we have had in the past, which is, of course, great for our current games in development. After the reporting period, we also had big events. Alan Wake 2's second expansion, The Lake House, was launched, and the new Remedy game, Firebreak, was announced. Then let's go through the status of our game and project portfolio. As said, in Alan Wake 2 second expansion The Lake House was launched. FBC Firebreak, the project previously known as codename Gondor, is now in full production. Control 2 continues in production readiness and is advancing step by step towards production phase. Max Payne 1 and 2 remake is all the time making good progress in production phase. Overall, throughout 2024, our game projects have been advancing at improving speed. Many of the developments we have done throughout Remedy during the past couple of years have now started to bear fruit. We are definitely not stopping here. The basis for creating great games more predictably and with a bit better velocity is stronger than it has ever been in the past. But we still need and have good possibilities to improve and we are focused to make these type of developments all the time happen. We will have even more development efficiency as we move forward and with that also more space for creativity in areas where it matters most for the players. On the Alan Wake 2 front, we launched the second expansion, The Lake House. The first expansion, Night Springs, was released back in June. Here, the development team went for a more lighthearted, fan-pleasing, episodic expansion, which featured versions of some of our fan-favorite characters from Remedy's games. Now, the second expansion, The Lake House, is a more serious return to the Alan Wake 2's tone of survival horror featuring the playable character of Agent Estevez. There are strong connections to Remedy Universe and Control franchise in this experience. And as I said, Remedy Connected Universe is strongly present. So let's now, at this point, have a look at the Lake House trailer.

I keep coming back to this page. The author's clearly awake. It's like he's warning us, but about what? I mean, what does it mean? There was a crack in the lake house. The Marmonts had let the lake in.