Good morning, everyone, and welcome to Next Games' investor briefing, where we shortly cover Next Games' 2021 financials first, and then we will go into today's announcement. My name is Saara Bergström, and I'm the Chief Comms Officer here at Next Games. We will start by going through 2021 key financial figures we published this morning, and we will then move on to covering Netflix's tender offer announcement of all the shares in Next Games. At the end of the session, we will have an opportunity for you to ask questions. The speakers today are Next Games' Chairman of the Board, Petri Niemi; Chief Executive Officer, Teemu Huuhtanen; and Chief Financial Officer, Annina Salvén. Without further ado, let's move on, and let's go through our financials first. Teemu, please go ahead. Thank you, Saara. Very good morning to everyone. Financial highlights for 2021. Revenue was slightly down versus the previous year at EUR 25.2 million. As you can see, the publishing EBITDA and the company EBITDA were mainly affected by the increased marketing spend. Publishing EBITDA was at EUR 5.6 million, which represented 22% of the revenue. Number of employees at the end of 2021 was 121, so that's an increase of 16 versus 2020. Another thing that's visible in executing our strategy is the increase in research and development as we had three new game teams developing three new games, as well as the Stranger Things: Puzzle Tales game in development. Moving on to the company key figures. Annina, please go ahead. Thank you, Teemu. Just very briefly gonna discuss what happened during our second half of the year. Obviously we released Stranger Things: Puzzle Tales, and as you can see, we actually started growing revenues versus our previous year, so July-December 2020. Indeed, the game or we started scaling the game around October, November, so of course, only a portion of the revenues can be seen as having an effect in the revenue. Having said that, our gross profit remained at a good level increasing, and also we had a target of a neutral EBITDA. Didn't quite get there, however, we still had, you know, only the change affecting our EBITDA for the full year really was driven by the scaling during the second half of the year. Otherwise, if we go to the next slide, please, we can talk about our publishing profitability. Our EBITDA for our publishing profitability remained at a pretty good level. We had it at 24% last year versus this year, it was 22%. The main kind of thing affecting our publishing profitability EBITDA was obviously as we started scaling Stranger Things, we used more upfront capital in marketing, and that did affect our profitability. If we look at our research and development key figures, as Teemu already mentioned, our company grew by 16 people. In addition to that, you know, we had a huge focus on R&D all throughout 2021, with our expenditure growing 34% to EUR 9.4 million, and of that was capitalized, so essentially our investment was EUR 5.5 million into R&D. Thank you, Annina. We will now move on to discussing today's announcement. To recap, Netflix announced this morning a voluntary recommended public cash tender offer for all the shares in Next Games. We will first hear from the Chairman of the Board of Next Games, Petri Niemi. Petri, please go ahead. Thank you, Saara. Good morning to all of you as well. I'll go through the announcement in short. As said before, Netflix has announced a voluntary recommended public cash tender offer for all the shares in Next Games. The offer price is EUR 2.1 per share, which means that a premium of approximately 125.6% compared to yesterday's share price is applied. If we look at a longer-term premium compared to a six-month average, the premium is 69.6%. This means that the offer values Next Games' total equity at approximately EUR 65 million. The major shareholders, Jari Ovaskainen and AMC, representing about 43.3% of the shares and votes in the company, have undertaken to accept the offer subject to certain customary conditions. We expect that the transaction expected to close in the second quarter of this year, subject to some customary closing conditions. I'm sure that everybody knows Netflix, but the way we see it is that Netflix is the world's leading streaming entertainment service with about 220 million paid memberships in over 190 countries, enjoying TV series, documentaries, feature films, and mobile games across a wide variety of genres and languages. Netflix has announced earlier, they're entering into the gaming space in November 2021. The way the board of directors views the transaction is that first of all we have a great shared vision and passion for great entertainment in both of the companies. We have a very complementary partnership and it has been ongoing for quite some time, and we have worked together with Netflix on games. Naturally, our understanding is that the location in Finland has some meaning for Netflix as well, because Finland is the hub for gaming in the world. We see the industry consolidating as in many other industries as well, and M&A is a natural part of that. As mentioned earlier, we have complementary expertise and technology in the companies. For the stakeholders, the employees, this means a lot of potential for exciting opportunities going forward in other roles at Netflix as well. For the players, it means that there's longevity and continuation for the existing games and some improved and better ones to come. For shareholders, we feel that the price is fair. I will come back to that a bit later. To the recommendation by the board of directors of Next Games. The board of directors of Next Games, represented by a quorum comprising the non-conflicted members of the board of directors, has unanimously decided to recommend that the shareholders and holders of stock options of Next Games accept the tender offer. The board of directors will issue its statement on the tender offer before the commencement of the offer period. To support its assessment of the tender offer, the board of directors of Next Games has received a fairness opinion from Next Games' financial advisor, which is Alexander Corporate Finance. According to which, the share price or the share offer price and the stock option offer price are fair, from a financial point of view, from the perspective of the shareholders and the holders of stock options. The complete fairness opinion will be attached to the statement of the board of directors of Next Games. The statement of the board of directors of Next Games regarding the tender offer will be published prior to the commencement of the offer period and appended to the tender offer document. Everybody will be able to see it at that point. How do we go forward from here? Some of the key dates. Today, second of March, we have signed the combination agreement and are now announcing the tender offer. On 14th March or about there, the offer period commences, and it will end on the 8th of April. We expect that the transaction will be closed in the second quarter of 2022, subject to customary closing conditions. Next Games CEO Teemu Huuhtanen. Teemu can take it from here. Yes, thank you, Petri. Petri covered really well the rationale from the shareholder perspective. I'm gonna go into why this makes a whole lot of sense to especially the staff and talent at Next Games, and Next Games as a company and of course, Netflix. From day one, Next Games has been executing pretty much on the same vision and mission. We've always seen ourselves that we would be the partner of choice for global entertainment businesses, such as Netflix, to craft authentic and long-lasting interactive entertainment based and games based on the world's most beloved franchises, such as Stranger Things. At the same time, the mission has been the fact which we have demonstrated starting from The Walking Dead: No Man's Land, that we refine the way the entertainment franchises transform into engaging mobile games. This is what we've been doing since 2013. This is definitely a very clear continuation of the vision and mission in all the possible ways. If we look at it from the, you know, the talent and staff perspective and Next Games perspective, this is, you know, if not the best, probably the best opportunity to level up all aspects of the business operations and so forth. Together with Netflix, you know, we're gonna be having access to the biggest streaming company on the planet that has all that great IP, you know. Especially the creative talent on their side, you know, talking about the biggest Hollywood directors and the great team at Netflix Games. For the existing employees, absolutely exciting opportunity to level up. You know, Netflix will continue to invest in this studio and it will bring amazing opportunities to work with great talent around the world and in Helsinki. Of course, we see this as a great opportunity to attract new talent from Finland, Europe, globally to Helsinki. All in all, like a great thing for Helsinki and Finland as well. From Netflix perspective, obviously what Next Games has been doing since day one, and especially the partnership with them on Stranger Things, you know, we provide a strong track record in the industry and proven ability to craft and operate authentic mobile gaming experiences, and especially based on the world's biggest entertainment brands for a global audience. You know, since we were founded in 2013, we have solid and existing operations to manage the whole value chain in mobile gaming and including, for example, world-class live operations set up. Again, you know, Next Games has great talent in already, but in a broader perspective, Helsinki is one of the capitals of mobile gaming and the Nordics and Europe in large. You know, great opportunity internally and externally as well. Thank you, Teemu. More information regarding this transaction and the announcement will be available on the Next Games website, and the website will be updated as things move forward. At the moment, it seems that we do not have any questions online. Let's see if we have any on the phone lines. At the moment, it seems that there are no questions for the time being. In that case, we thank you all for joining us on this briefing today, and we wish you a nice day.
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