Good afternoon, everyone, and thank you for joining Remedy's Webcast. My name is Veli-Pekka Puolakanaho, and I manage the Investor Relations at Remedy. Today, we will go through Remedy's half year review for the H2 of 2023. With me are Tero Virtala, Remedy CEO, and Terhi Kauppi, Remedy CFO. We will have a Q&A session after the presentation. Tero, the floor is yours. All right, everyone. Thank you also on my behalf. If we look at the second quarter highlights, our revenue was EUR 8.9 million. It was a decrease of 5% from the comparison period. Our operating profit, -EUR 4.8 million, cash flow, -EUR 7 million. Overall, as we have been emphasizing during this whole year, this is an investment year, and our numbers do reflect that. We have currently 5 games in development. 4 of them are co-financed by Remedy. This impacts our profitability now, but will increase the future potential for bigger, profitable growth. It's also good to bear in mind that high quality of our games is of major importance to us. We know that quality will always eventually pay off. It affects each game's sales opportunities, the value of the game brand, and interest that partners overall have for Remedy. We also know that making high quality games requires many right ingredients and actions throughout the game's long development cycle. One key phase of ensuring the final quality is in the later phases of game production. In innovative and ambitious games like the ones we do, no one can beforehand say, estimate exactly how much work it takes to get the final quality in place, and making that quality happen is always in our hands as a developer, not in our partner's hands. We are the ones developing these games. This fact is also reflected in our own investments. We do invest into our game projects during the whole development cycle. Overall, our investments are often skewed towards the later phases of the production. The game that we now have in the very late phase of production is, of course, Alan Wake 2. A big event for this second quarter was the start of Alan Wake 2's marketing campaign. Now, before we talk a bit more on that, let's watch the gameplay reveal trailer and remind everyone what Alan Wake 2 is about. PEGI 18. I'm trapped here, in this nightmare. I write to escape. Every word is a step forward... Into darkness. I'm glad you're on this case with me, Anderson. It's right up your alley. The victim was one of their own, FBI Special Agent Robert Nightingale. You knew our victim? Only the rumors. He was chasing a writer. Someone knew they were here, was playing a game with them. Killer left a message. It's for us. The text is about us. We were all trapped in a horror story. The horror story wanted us dead. Fade again. Cloud of darkness. Cloud of darkness. There's something... I'm forgetting. Something important. Something's not right! Easy now. First things first, what's your name? All right, the marketing campaign for Alan Wake 2 officially began in May. Together with our publishing partner, Epic Games, we had secured a good place in Sony's big PlayStation Showcase, we came out with this gameplay reveal trailer that you just saw. Alan Wake 2, overall, is our biggest game project ever, the original game, Alan Wake, launched 13 years ago. It's fair to say that Alan Wake 2 has been in our minds for a long time. It's an ambitious game. Alan Wake 2 builds strongly on the foundation of the original Alan Wake, it also takes it significantly further. Now, the first gameplay trailer that we gave out gives one glimpse to the game, introducing Saga Anderson as the new playable co-protagonist. Marketing after the reveal trailer continued in June with behind the closed doors demo at the Los Angeles Summer Game Fest Play Days event. It was a 35-minute live demo, and there was a lot of interest for that. In fact, every one of our 15 demo sessions was full, and we needed to take more people than originally had been anticipated. This was naturally a change that we gladly welcomed. The audience also liked what they saw, as Alan Wake 2 was selected as the singular Most Anticipated Title in the event. Additionally, other PR and marketing activities have been carried out, like we had selected European and Finnish media outlets, to whom we also showed the demo. There was good media coverage by big gaming medias like GameSpot, IGN, and other high-profile medias, and naturally, some selected social media campaigns were being carried out. Now, marketing campaign will of course continue also with new activities closer, the closer we get towards the launch. If we sort of talk about the reception that we had, first of all, the new playable character, Saga Anderson, was seen as a positive thing. Many guests that we had, due to Alan Wake, the first version of Alan Wake, being launched already 13 years ago, many guests were new to the series overall. After watching the demo, the consensus was that newcomers will have no problem in jumping into Alan Wake 2, and this is also supported by the fact that in addition to Alan Wake, we have the new character as a playable one, Saga Anderson. Alan Wake 2, as I just mentioned, was selected as the singular Most Anticipated Title, as a clarification, this was just by more than 40 global media outlets and their professionals who had seen most of the games of the whole event. So far, the start of marketing campaign has been very promising. Marketing will naturally continue with new activities the more we go towards August, September, October. It's definitely going to be a busy and exciting fall also in the marketing front. When we look at the wider project portfolio, Alan Wake 2, as was mentioned, is in full production and progressing towards its October launch. In relation to Alan Wake, it's also good to mention that Alan Wake Remastered did not yet generate royalties in the second quarter. Our plan with Alan Wake Remastered has all the time been that it's part of the wider Alan Wake 2 plan. Alan Wake Remastered in itself is a great game, but also a means to introduce the world of Alan Wake and build awareness for Alan Wake 2. As the marketing campaign for Alan Wake 2 kicked off, more players will find Alan Wake Remastered. That was our plan, and that was the expectation, and in fact, that has happened. The game has now reached break-even after the reporting period in July. As Alan Wake 2 is now getting closer to launch, more developers will free up from the project and move to our other projects. These other projects have been longer in the earlier development phases. On one hand, making sure that the groundwork is done well before moving to next phases in 2023 and 2024, but also on one hand, that they are expecting now to get more people. This fall, we are getting more people from Alan Wake 2, and other projects are ready to take them on board. Control 2, out of the games, continues in proof of concept stage. Codename Condor, the spin-off of Control, service-based co-op multiplayer game, is also in proof of concept phase, but now quite close already to production readiness stage. With Codename Vanguard, our free-to-play co-op multiplayer game, we are aiming to complete this long proof of concept phase by the end of the year. Max Payne 1 and 2 Remake is also in proof of concept stage, and one of those projects that will expand during 2023 as we get people freeing up from Alan Wake 2. Overall, there has been progress with our projects, and our projects are ready to take on more people as they are now freeing up from Alan Wake 2, and then move towards their next development phases. Okay, then a few words on a highly important topic, in a way, our people. The people, as we have so often emphasized, are at the heart of Remedy, world-class talents that we have. We now have, at the moment, over 380 world-class talents, supported by better external development capabilities and good partners in that front. We are selectively still recruiting new talent. There are areas where team strengthenings are justified. However, it is good to note that these new recruitment needs are not anymore that big, that high as they used to be in the past years. We do still expect a slight increase in our total headcount due to the targeted recruitments to further strengthen our teams, and we are in a good position to successfully do that. On one hand, Remedy is a highly regarded employer in the industry. On the other hand, we also have very interesting game projects for and roles for talented people. Thirdly, at the same time, there is uncertainty in the global economy and also among many gaming companies in the industry. Our position now to get those selected targeted recruitments is strong. Also in people front, as our recruitment needs are not as big as they used to be in the past years, even more focus than before goes to professional development, career progress of our people, leadership training, ways of improved working, how our teams work and develop the games, and how we collaborate internally all the time, better and better. All right. Few words also, in a way, on the wider context. I just want to remind everyone that where we come from, where we are at the moment, and where we are aiming to go. We now have all the key elements in place to develop our roadmap of these current five games and succeed with them in the future. Reaching that this point has been a long process. 6 years ago, we started the transformation to be able to develop longer engaging games on top of our unique strengths, to make multiple of these games in parallel, and while doing this, also to gain a stronger position in the value chain and therefore eventually get more of the value created from our games. This has been a long transformation. We have faced our challenges, but we have been able to take these learnings and all the time improve. All this has taken time, and now end of 2022, we reach our goal to have a strong organization and ability to develop the games we have in our hands. We now have a high portfolio of 5 games. It consists of longer engaging single-player games, which are closer to the strengths that we have always had, but also two service-based multiplayer games that are building us capabilities that we can utilize in many of our future games. We have trusted partners in place for all of these five games, partners that are the right ones for these games. Overall, we have gained a stronger position in value chain. Out of the five game projects, four are based on Remedy brands. Remedy is a co-publisher in three of these. Max Payne is the only one owned by our partner, Rockstar, but it's a great match to our portfolio. We have a strong cash position, high-potential games in development, and ability to develop them. According to our strategy, we have, in collaboration with our partners, started to invest also more of our own money to these games to gain bigger benefits when we get these games into the markets. We are therefore currently in an investment phase. These investments are done to enable major growth opportunities in the future and even stronger position to benefit from this growth. In a way, this strategy, we see that in the coming years, we have ability at the same time to develop new games and live operate existing ones. We can have game updates and game launches every year. We have longer engaging games, which also gives a possibility to longer reoccurring revenue. There is a higher royalty upside with these games. Also with the co-publishing arrangement, we have a direct involvement in game marketing and sales. Also stronger ability to build, connect, and serve our gaming communities. Having said that, I'll hand over to Terhi to talk a bit more on the financials. Thank you, Tero, and good afternoon to everyone also on my behalf. Let's go through the financial a little bit more in detail. Q2, our revenue decreased EUR 500,000 from comparison period, and in percentages, that was 5.3%, ending up to a revenue level of EUR 8.9 million. Out of that, development fees were 89% and royalties 11%. The decrease in royalties was 52%, and that's EUR 1 million due to Control game. Like mentioned, Alan Wake Remastered did not yet fail to recoup and thus did not yet generate royalties for us. Our development fees grew by 7%. We received development fees from all of our projects in development phase, and their amounts vary from comparison period based on projects' different phases.... When looking at historically and reminding again, there has been and there will be quarterly variation in revenues, and thus also in profitability. The level of royalties has been low for quite a while now, due to Control being old game and lack of new major releases. We are in an investment phase, and that is reflected in the profitability. For quarter two, the EBIT was negative by EUR 4.8 million, and that's -54% of revenue. The decrease in profitability was due to a bit lower level of revenue, but also due to higher outsourcing, staff, and other operating expenses, as well as lower level of capitalizations. We are now, as planned action, financing a larger share ourselves during project development phase to ensure higher future revenue shares. When looking at the first half together, our revenue was EUR 15.8 million, and the decrease was 28.3% from comparison period. The decrease mainly was due to timing of the project milestones and related revenue recognition, but also, again, lower level of Control royalties. Here, out of total first half revenue, the development fees were 91% and royalties 9%. Yes, the investment phase is reflected in the profitability also for the first half. Here, for the first half of this year, the EBIT was negative by EUR 10.4 million, and that's minus 66% of revenue. Whereas in comparison period, we had a slightly positive EBIT of EUR 0.4 million. Decrease for the first half in profitability was due to clearly lower level of revenue, but also due to higher expense level and lower level of Capitalizations. For transparency reasons, we also present here the unnetted amount of expenses, because in IFRS, we need to net the expenses with the Capitalizations. When looking at these numbers, we see that the external work performed was on slightly lower level than in comparison period, EUR 4.7 million versus EUR 4.9 million in comparison period. The IFRS format netted amounts are EUR 4.1 million versus EUR 3.5 million, and the difference is due to Capitalizations of external development costs. In personnel expenses, we had 10% increase due to increase of about 9% in personnel, to 347 people from 318 people. Capitalizations were on 37% lower level than in comparison period, mainly due to project Condor's lower level of external development work. Our operating cash flow was negative by EUR 7 million in quarter two, in comparison period, it was negative by EUR 8.3 million. The total cash level was EUR 39 million, which is still strong, although there has been about EUR 17 million deduction in liquid funds during the first half of this year. In addition to pure bank account balances, we have now about EUR 10 million in liquid instruments like interest funds. Yes, the current profitability level is impacted by increased investments to product development and by composition of revenue, i.e., we bear more own risk in development, and we have had lower level of Royalties. Overall, we see possibilities for our top-line growth and improved profitability in the long run. That in mind, we make operatively wise decisions, although in the shorter term, this impacts our numbers. With still a strong cash position, we build up the basis for long-term success. We have a balanced portfolio of projects. We have a subcontracting type agreement with Rockstar Games for Max Payne. We are working with 505 Games and Epic in a model where Remedy owns the IP, publishing partner funds the development partly, and we share game sales profits. We have co-publishing deals with projects Condor and Control 2, as well as Vanguard, and these are IPs owned by Remedy. Here is the same portfolio described by the type they generate revenue for us, especially taking the timeline in account as we are in investing phase. The higher we move up in the picture, the more there are models where the profitability of game project is depending on game sales rather than development fees received from publishing partner. If you look at the pluses and minuses related to development phase, you see that in partner IP subcontracting type project, we usually have margin already during the development phase, but in other models, not. Please, Tero, you can continue from here. Thank you. Just then shortly, recap on our outlook. Outlook stays changed, unchanged. We expect our revenue to decline from previous year and a negative operating result. Before we jump into questions, just a reminder that our long-term objectives remain the same. The objective is that by the end of 25, we have created several successful games and at least one major hit game. This meaning a game that reaches the global top-selling charts and can keep on succeeding also after reaching it. We have the unique creative skills, and we can create worlds, characters, stories, that really build powerful brands. We will own at least three expanding game brands, all with long-term hit potential. We also will have commercial capabilities so that we can ourselves select the right commercial model for each of our future games. Whether in some games it would be self-financing, self-publishing, or if it's working with publishing partners with the specific model. Great people also continue to be a key focus for us. We aim to be the most attractive gaming industry employer in Europe, and as has been said, in the long term, we aim to reach each of these objectives while having a long-term, profitable, and growing business in which we are managing our risks well. That's it on the presentation side. I guess now it's a time for questions and answers. Yes. Thank you, Tero. Thank you, Terhi. If you want to ask your questions, type in your questions into the Q&A. We are now ready for questions. Actually, there are a few questions already there. Terhi, how much intangible assets in game development versus game engine expenses? Can you break that a little bit? Yeah, I would say that overall, the capitalization of game projects is based on the future expected returns for that project. They are based on a project's business cases. Yes, surely, some of the work performed for the projects also include work for the game engine, but that cannot be directly separated. Thank you. Then there's a question, was Alan Wake 2 total budget increased or, or bigger than initially expected? How do we view the prospects of game revenue potential versus total budget compared to what Control has achieved? Yes. Alan Wake 2 development budget has increased during the development. It was end of 2021 when we, in a way, evaluated the game with a big, ambitious game, big game. We saw there a lot of potential, certain innovation that we wanted to realize, and they would have required more work. It was at that point evaluated with our partner, Epic, that making the game bigger than originally was planned, made sense, and we decided then to increase the game size and the budget. At that point, it was also decided that Epic is bearing significant part of the cost, but we are also ourselves investing into the game. Was there another part of the question? How do you view the prospects of game's revenue potential versus total budget compared to what Control has achieved? Well, I think, I think Control was definitely a great achievement for us. It was, in a way, done with a very manageable Triple-A budget. At the same time, it was also justified that it was done with a smaller budget because it was a first installment of a completely new brand, which in itself then always includes quite a lot of risk. We were able to do it in a way, the break-even point was lower, and after that, when the game has continued to sell, it has been a success and a very profitable one, both for us and for our partner, 505 Games. Now, Alan Wake 2 has a bigger budget. It does need to sell more, in comparison to most other AAA games, our budgets are still very manageable and clearly kind of like on the lower end of the really big budget games that there are in the market. Together with our partner, Epic Games, we do see that the, in a way, business game, business case for a high-quality game is still kind of like a very reachable, a good business case. That's where we are aiming. Both us and our partner, Epic, are confident that Alan Wake has the potential to become a good success. Thank you. Are you, are you still confident in one game launch per year after Alan Wake 2? Could this goal push the firm and the employees too hard and, and, and lead to rushed releases? Well, that is our plan at the moment, that that's, in a way, where we have been developing Remedy to have that ability, and in that front, nothing has changed. Would we push the firm to rushed releases in order to, in a way, set it in stone that we have one game per year? Definitely not. No matter if we would have one game launch per year, it's still not that much, and in a way, the high quality of our games not just affects the potential of that individual game, but the value of the overall game plan, the opportunities that we have for spin-offs and sequels for that game, our value and interest in the eyes of our future publishing partners, so we don't rush releases if they jeopardize the quality. Then the other aspect is that currently our plan is to have one game launch per year. Now, of course, we are eyeing the situation all the time and evaluating. Is the game, in a way, the next game progressing in the time and quality that we want to release it exactly in that timeline? Currently it is, but as an example, when we launched Control in 2019, we had an early idea to move that team earlier to the next project. Control ended up being so successful that the business opportunities that presented in 2020 and still in 2021, in a way, made all the sense that we kept the team longer with Control, which, in a sense, pushed then the future releases of the next games, but I think it was a very justified call. That's also when we have more games, a positive, in a way, situation where we may end up at some point, but at the moment, we are in a way planning to have 1 game launch per year, and at the moment, we are on track to do that. Thank you. Next question relates to Vanguard and Condor. In a market where players tend to play biggest online games, how will Remedy cooperative multiplayer games differentiate themselves? Well, I can't yet reveal too much. That's always, in a way, part of then the marketing campaign, once they when they start, that we are utilizing. What we have already said, I think the question in itself is very relevant, 'cause in a way, it is quite a biased market in that sense, and polarized market, in a way. The biggest and most successful games take a big part of the market, and in order to be able to enter into that space, one needs to have a high quality games, but the game also needs to be unique. It does need to stand out and differentiate, and that is definitely in our mind when we build our games. I guess it's understandable and, and, and, and fair to say that we are building games, also the multiplayer online games, partly utilizing the strength that Remedy has in the world-building, in the characters, in the narrative and story side. Of course, applying these to multiplayer service-based games is different, but that is one angle where we believe and are now in the games in development, seeing that we can bring something in new into the genres. A question for Terhi. Will Q3 and Q4 be more cost-heavy on goods, of course, goods of costs sold, or, and operating expenses, since you release a game, or how you-- we should think about the costs? The short answer is not really, because our operating costs are consisting of staff expenses, external development costs, and then other operating expenses, and they do not directly vary according to the game launches. The marketing campaigns are organized and primarily paid by, by publishing partners. Good. Thank you. How should we think about the length of the full production stage for Vanguard and Condor? Is it fair as assumption, is it fair to assume a shorter duration from the start of full production to launch than for Triple-A games like Alan Wake 2? I wouldn't generalize in that way, 'cause all these games, they are unique projects. Vanguard has been long in development, and it's mainly been for a reason, that it's something very new to us. It's a massive game, Free-to-play, Service-based, really long-lasting game. We have been learning on the way. In a way, there have been changes that we have been making for the team. Now, in a way, it has been progressing better and better all the time, but it's still in a way, there is still a lot of development to be done before we one day are able to launch it. Naturally, overall, for this type of Service-based games, the difference does come in the production that the game is never ready. One day it is possible that it will then, in a way, have its beta phase launches, early, early, early stage launches. In that sense, it doesn't need to be perfected on every single angle like a traditional Triple-A, a single-player game needs to be. That is true in that sense. Condor, on one hand, kind of like, it is a co-op multiplayer service-based game, but it's more contained. It's not kind of like as big and as complex for us to make as a free-to-play game like Vanguard. Good. Can you give any comment on Alan Wake 2 pre-sale figures? At the moment, in a way, no, we cannot give anything, anything concrete on that. That's, of course, also based on the agreement that we have with our partner, Epic Games. Pre-sales overall, what can be said is that during the past years, the tendency has even more been that pre-sales are one part of the marketing campaign, and pre-sales are very much focused in the last weeks before the launch of the game. Overall, in a way, on marketing front, I can say, as, as, as was said in the presentation, that the early reception and what we have seen, it has been very promising. Are you seeing a possibility for a delay in the release of Alan Wake 2? At the moment, we are heading to the October launch. Now, in a way, if one asks on any developer of triple-A game that, "Do you see a possibility for delay?" If one would say that there is absolutely no possibility, they would be lying. It's always a race to the finish line, in a way. We have to get the game to the highest quality that we can make. That's in a way, what promises, what provides the, in a way, big long-term potential. Always in these big and complex games, there are still at that phase a lot of bugs left. There is a lot of optimization, a lot of polish work to be done, balancing that the story is delivered in the right way. We have different platforms. The performance needs to be optimized. Overall, there is nothing individual that couldn't be done. There is still just a lot of work to be done. At the moment we are tracking well towards the October launch. There is, in a way, nothing that's at the moment in the vision that would prevent that. If that question is asked from a game developer, it's really hard to say that there wouldn't be a possibility for that in any future scenario. Fortunately, we are not at the moment seeing that. We know well what we are doing. Good. Good. Terhi, how much do you expect depreciations to increase as a result of Alan Wake Remastered? Will these depreciations impact mostly 2023 and 2024? The first part, how much that we cannot comment. We are not splitting our depreciations by project currently out. Yeah. What years will they impact? Well, first we need to make sure that the game is, has recouped and started to generate royalties for us, so it's difficult to estimate, but starting from 2024 onwards, I would say generally. Good. Two questions on Condor and Vanguard. Are you planning to have both Condor and Vanguard in full production simultaneously? We cannot comment at the moment on the, in a way, on the exact of the production schedules, because those would then also indicate quite well the planned launch dates. Another question regarding resourcing: How many employees are required to support Condor and Vanguard when they go live? Do we have the personnel to support these multiplayer games and also develop new games simultaneously? Well, without saying the exact numbers that we have in our plans, Condor requires less people. Do we then have personnel to support the multiplayer games and develop new games simultaneously? We have been building a structure and organization that can do that in the future. Do we, at the moment, have all these people and all these partners in place? Of course, not yet, because we are not yet in that phase. Then, in a way, I would say that I would also welcome the scenario that we wouldn't have all these people, because then it would indicate that one of these games would have been such a massive success that it makes sense as to focus more on that individual game, maybe instead of starting something new. At the moment, what we have have in our plans, every single game we see has a big possibility. In a way, we are making, I would say, realistic business plans for our games, in a way, not over-optimistic. What these games require, we see that the structure and organization is developing to a direction where we can have personnel for that. Thank you. There's a lot of games coming to the market this autumn. Are you worried about the crowded launch window for Alan Wake 2? Well, it is crowded, but then at the same time, in a way, if we are launching games, in September, October, early November timeframe, we knew that that has been an evaluation that we have been doing with our partner, Epic Games. It's also that, in a way, making the game launch dates public has, in a way, nowadays become more and more delayed. As has been said, that some of the industry's biggest games, in a way, the launch dates being released only a few months before their launch. Definitely, we at the moment see that, we have a launch opportunity and launch window in October. With our partner, Epic, we are naturally all the time evaluating, and we don't actually yet believe that not all the games have yet even made public their, their, their launch dates. At the moment, we are progressing with the current one, and if changes one day for one of our games would need to be done, those are then in our publisher's hands as well. Good. That's all the questions. One final remark for us and, and also the game team, making Alan Wake, that Alan Wake looks amazing. Thank you. Thank you. It's, it's becoming a great game. Thank you. I think that was all the questions for today. Thank you for the call and the questions. We will be back with the next earnings webinar on October 31st. That's all for now. Thank you, everyone, and have a great weekend.