strategy presentation nov 27, 2018 - focus home interactive€¦ · 2014 2015 2016 2017-2018...
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STRATEGY PRESENTATION27 NOVEMBER 2018
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EXPERIENCED AND MOTIVATED MANAGEMENT TEAM
FOCUS HOME INTERACTIVE STRATEGY | DIRECTOR’S COMMITMENT
▪ 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
NOMINATIONS
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OUR PROVEN MODEL
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DEVELOPMENT STUDIOS
PROJECTSELECTION
PRODUCTIONFOLLOW-UP
DIGITAL & OFFLINE MARKETING
SALES
PUBLISHING
Retail & Digital platforms
Fewer than 1%of projects selected
Nearly
100 distributorsworldwide
Over 50 production staff
Over 290 digital promotions in 2017
DESIGN DISTRIBUTION
A PROVEN MODEL
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A PROVEN MODEL| GENERATING VALUE FROM HIGH-POTENTIAL LICENCES
ORIGINALGAMING
CONCEPTS
FARMING SIMULATOR 19
SPINTIRES: MUDRUNNER AMERICAN WILDS
NEWBRANDS
VAMPYR
POPULARLICENSES
CALL OF CTHULHU
SPACE HULK: DEATHWINGTHE SURGE
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A PROVEN MODEL | DELIVERING RESULTS
43
69,275,6 75,9
100+
2014 2015 2016 2017-2018 2018-2019e
SALES(IN €M)
12 months
+ 3 months
REVENUE
CONSISTENT GROWTH IN SALES
6 MILLION GAMES SOLD IN 2018 VS
4 MILLION IN 2014
AVERAGE PRICE UNIT INCREASE: >30% VS 2014
A CAGR OF REVENUE: +22%
1
89,9
6
20,2
32,0
43,749,0
8,3
2014 2015 2016 2017-2018
DIGITAL SALES(IN €M)GLOBAL REVENUE
INCREASED BOTH FOR RETAIL AND DIGITAL
DISTRIBUTION
35%
65%
SPLIT RETAIL/DIGITAL September 30, 2018*
Retail Digital
A PROVEN MODEL | DELIVERING RESULTS
212
months
57,3
+3 months
7
35,5
56,564,9 67,1
12,7
2014 2015 2016 2017-2018
EVOLUTION OF INTERNATIONAL REVENUES (IN €M)
INTERNATIONAL REVENUE
10%
90%
SPLIT FRANCE/INTERNATIONALMarch 31, 2018*
France International
312
months
+3 months
A PROVEN MODEL | DELIVERING RESULTS
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6
8,9 9,2 9,5
2014 2015 2016 2017-2018
EVOLUTION OF OPERATING PROFIT(IN €M)
CAGR OF OPERATING PROFIT: +12,3%4
A PROVEN MODEL | DELIVERING RESULTS
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A PROVEN MODEL | LOOKING AT THE PEERS
43,8
69,2 75,689,9 100+
19,5 22,8 31,952,7
473,8
19,4
64,6 69,0 84,5100+
116,0 107,2
135,4
70,4
163,3
2014 2015 2016 2017 2018e
PEERS REVENUES* FROM 2014 TO 2018 (IN €M)
Focus Home Interactive THQ Nordics Paradox Digital Bros
*Sources: FactSet as of 2018-11-26 adjusted for 2017/2018 revenues.
Focus delivers consistent revenue, some players show accelerated growth
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A PROVEN MODEL | CREATING SHAREHOLDER VALUE
*Sources: FactSet as of 2018-11-26 adjusted for 2017/2018 revenues.
Peers earning per share*
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15
20
25
30
35
40
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COMPANY | SHARE PRICE AND CAPITAL BREAKDOWN
SHARE PRICE PERFORMANCE(FROM 4 JANUARY 2016 TO 23 NOVEMBER 2018)
31%
3%
8%
58%
CAPITAL ALLOCATION ON 23 NOVEMBER 2018
NabubotoInnelecManagers, employees and othersFree Float
Buy Back Program 2%November 2018
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MARKET INSIGHT
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MARKET INSIGHT | GROWTH OPPORTUNITIES
Sources: Newzoo – Global Games MarketRevenues 2018
GAME MARKET PER PLATFORM GAME MARKET PER REGION
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Content is Key Multiplication ofDistribution Platforms
Emergence ofNew Technologies &
Business Models
Market inConsolidation
Growing Asian Market
1 52 3 4
MARKET INSIGHT | KEY FEATURES
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WHERE WE ARE GOINGEEE STRATEGY
ENHANCE - EVOLVE - EXPLORE
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ENHANCE EXPLOREEVOLVE
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ENHANCE | EXTENDING AND BROADENING OUR STUDIO NETWORK
STILL A FRENCH CHAMPIONWIDENING THE SCOPE
AND MORE TO COME…18
▪ 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.
ENHANCE | IMPROVING THE QUALITY OF OUR CONTENT
2015 2017 FUTURE
1-3M1-7M
1-15M
DEV
ELO
PMEN
T BU
DG
ET
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ENHANCE | ENGAGING GAMERS FOR A LONGER PERIOD
PREMIUMGAMES DLCs EXPANSIONS SEQUELS
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ENHANCE | GREEN LIGHT PROCESS
ACQUISITION DATABASE
STAGE 1 STAGE 2 STAGE 3
GREENLIGHT STAGE
EXISTINGPARTNERS
TRADESHOWS
EXTERNALPROPOSALS
DIGITALSOURCING
COLLECT AND ORGANIZE
OVERVIEW PASS BYEVALUATION BOARD
VALIDATION BY EVALUATION BOARD
INTEREST PASS BY SPECIALIST SQUAD
IN-DEPTH ANALYSIS BYSPECIALIST SQUAD
VALIDATION BY EVALUATION BOARD
DECLINE THE PROPOSAL AND ARCHIVE THE PROJECT
PRODUCTION ANALYSIS FORECASTS
MEETINGS VISIT DEVELOPER’S OFFICES
NEGOTIATIONS
CONTRACT
FINAL APPROVAL PROJECTSIGNED
NO NO NOMAYBE MAYBE MAYBE
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LUC HENINGER
Production Director -Management Board
Member
TRADE MARKETING
VINCENT CHATAIGNIERBusiness Development
Director
DESSIL BASMADJIAN Creative Director
EVENT MANAGERRELEASE
MANAGEMENT TEAM
PRODUCTION TEAM
SOCIAL MEDIA
ADVERTISING
BRAND MANAGER TEAM
AURELIE RODRIGUESSales Director
FINANCIAL TEAM EVALUATION TEAM
ART TEAM
SALES TEAM
SALES ADMINSTRATION
PRESS RELATION
MANUFACTURING EDITO TEAM
VIDEO TEAM
QUALITY ASSURANCE
WEB TEAM
ACCOUNTING
HUMAN RESOURCESINFORMATION SYSTEMS
THOMAS BARRAU
Marketing Director -Management Board
Member
JOHN BERT
COO - Management Board Member
DEBORAH BELLANGÉ
CFO - Vice Chairman of the Management Board
JÜRGEN GOELDNER
CEO - Chairman of the Management Board
NIRMALA CHANEMOUGAME
Deputy CFO
BUSINESS AFFAIRS BUSINESS DEV. TEAM
ENHANCE | ORGANIZATION CHART
PLAYTESTS
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ENHANCE EXPLOREEVOLVE
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EVOLVE | STRENGTHENING OUR TIES TO KEY STUDIOS
©Control over IP Improve margin Extra revenue with extended
exploitation of the brand
High potential partnersWith proven experience
Common vision Synergies
CRITERIA FOR POTENTIAL PARTNER
OBJECTIVES OF M&A
Create own franchises
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CONTINUE CAPITALIZING ON OUR GLOBAL DISTRIBUTION NETWORK
(200+ TERRITORIES)
IMPROVE PRESENCE IN TERRITORIES WITH HIGH POTENTIALLIKE ASIA AND LATIN AMERICA
EVOLVE | TERRITORY EXPANSION
SETTING UP COMMUNICATION STRATEGY IN CHINA
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ENHANCE EXPLOREEVOLVE
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NEW OPPORTUNITIES FOR EXTRA REVENUETO BE EXPLORED WITH FOCUS’ APPROACH AND RESPECT OF VALUES
EXPLORE | MOBILE, LICENSING, MERCHANDISING, PLATFORMS, TECHNOLOGIES, BUSINESS MODELS
New Platforms New waysof licensing
New push towards Streaming
New distribution
models
1 2 3 4
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LEVERAGE OPPORTUNITIES VIA LICENSING AND OUTSOURCING
ADDITIONAL PLATFORMS
EXPLORE | ADDITIONAL PLATFORMS
PREPARING FORTAKE-OFF
AR/VR MOBILE
SELECTION WITHIN FOCUS PORTFOLIO
1
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LEVERAGE OPPORTUNITIES VIA LICENSING AND OUTSOURCING
EXPLORE | LICENSING & MERCHANDISING
TV SERIES & MOVIEADAPTATIONS
LICENSING
EXPLORE NEW OPPORTUNITIES
MERCHANDISING
NEW WAYS OF LICENSING
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EXPLORE | NEW PUSH TOWARDS STREAMING
NEW PUSH TOWARDS
STREAMING3
▪ 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
THE BIG PLAYERS ARE ALREADY JUMPING IN
THE FUTURE OF GAMING IS IN THE CLOUD
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OPPORTUNITIES
GAME ASA SERVICE
AMAZON
DATA DRIVEN
DECISIONS
CLOUD GAMING
(PLAYSTATION NOW…)
SUBSCRIPTION MODEL
(XBOX GAME PASS…)
NEWCOMERS (GAFA...)
SOLID CONTENT IS KEYAND DRIVES GROWTH
EXPLORE | ADDITIONAL OPPORTUNITIES
NEW DISTRIBUTION
MODELS
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