Right, are we live? Yeah. Hello, everyone. Welcome to the Q2 presentation of financial year 26/27 for the Coffee Stain Group. We are streaming this as usual from the Coffee Stain Studios office in Skövde, the home of Satisfactory. It's been an interesting quarter, a lot of activity generally in the group. And yeah, it's exciting times in the industry generally, I would say, with a lot of just a lot of stuff going on. And like, we are, uh, it's a busy group with, um, we have many companies. And, uh, fun to see, like yesterday we launched Lightyear Frontier from Framebreak. So always nice to wake up in the morning and see some, uh, some, some new games coming out from, from Coffee Stain. So congrats to Framebreak team for, for that release. Let's head into the presentation. Let's just get into it. Okay, this is the agenda for today. We will briefly go to the quarter and then you will talk more in depth on the, on the game portfolio update. I will go through the financial performance and then finally we will have a Q&A session. As usual. So yeah, so feel free to send in questions to our IR email, and, uh, we will try to respond as much as possible. Yes, so Q2 net sales came in 267 million SEK, growth 19% year over year. Our cash EBIT was 75 million SEK with a cash EBIT margin of 28% and free cash flow 68 million SEK with a cash EBIT conversion of 19%. So Anton, what shaped Q2? Q2 was, uh, the big event of this quarter was Valheim, of course, with the 1.0 that came after, after many years, and also the release on PlayStation and the Switch 2. And the other big thing I would say was our Big Break Showcase. That was something new from the Coffee Stain Group, first time for us to do a larger showcase where we both gave some insights into our own portfolio and our pipeline, some, I think, well-received news on some of our core IPs. But also a great event where we invited a lot of other small studios and game developers to, to participate in this. And I think the overall reception was very positive. It was fun, uh, just, uh, to do it our own way, and hopefully something that we might repeat in the future. So, uh, I would say that. But let's, let's, let's move on. Uh, we can jump into the operational highlights, give some more in-depth. Um, so starting off with Valheim. Last quarter, there was a lot of questions on Valheim and what to expect. Obviously, a very important game for, for the group and a release that was honestly quite hard to, to give something. Yeah, to predict. It's like, it's, it's a game that was out for many years in early access, a beloved game, great game that sold many units ahead of its 1.0. And from our point of view, we had a very successful launch. It was nice to see the activity in the game, I would say, especially with over 300,000 concurrent players, and also just nice to see that like the, the crossplay and the, the new platforms since the launch was very stable. And, uh, also, uh, can say that like PlayStation sales has been a pleasant, uh, pleasant surprise for us. So, uh, And I guess generally Coffee Stain, we have been very focused on PC and we are still very focused on PC. So like consoles for us is when it actually does well, it's like, it's nice to see. And I think there's might be even more room to grow there with, with our portfolio in the future. So it is always like a little bit harder, like consoles, it's, uh, for small teams, uh, to do these games on many platforms, it always comes with complexity, but I think to some extent also, uh, new technology and stuff now that we see with, with the help of, uh, agentic coding and stuff can, can kind of empower us a bit in, in those. And, uh, so that's positive. And also like Iron Gate talked about a little bit about the future also. Yeah, yeah, that was, uh, also really nice to, uh, to see. I mean, we get a lot of questions obviously about the future on Valheim and we have been a little bit— it's hard for us to, uh, we don't fully control it since it's not our IP. Uh, and, uh, but it was, uh, positive to see like Iron Gate themselves went out with the announcement that they are indeed working on stuff for Valheim even after, after release. And what that is we'll have to wait and see, but we are very happy with that. And so stay tuned for, for more on that for the future. And then I guess the big, biggest event maybe of the showcase, I would say, was core values for Satisfactory, uh, our own beloved game that has— is a very important, uh, title for the Coffee Stain Group. And, uh, we revealed that, uh, the Coffee Stain team is working on a big expansion, a paid expansion that is, uh, not yet any release date for that, but it's full steam ahead and It was revealed to— I guess the reception from the community seems very positive. And even though there was not so much detail on, on what's going to happen in this expansion. We teased about it, we're going underground, and it's going to be, uh, very exciting to see how that, that plays out. Then we also had announcements on Goat Simulator 3. Goat Simulator is, as always, a strong contributor in the portfolio, and it keeps performing. We revealed now the Disney World expansion that is coming out this month, actually, so it's soon. It's been— Goat Simulator is one of those games that we have a very— had a very steady cadence of DLCs and content generally, and it's on pretty much all platforms you can think of. PC and Steam is not the biggest for that one. So that's going to be really nice to see how that plays out. And we also had like a small platform deal coming for Goat Simulator during the quarter. That's another, I guess, testament of that IP strength where we've been able to do those kind of different types of deals over the years and hopefully something that we can continue doing in the future as well. So I guess those are the, uh, we can also mention on Deep Rock Galactic, there was, uh, not to miss, uh, last quarter there were a lot of focus obviously on Rogue Core, uh, which released earlier this year. It was a big release for Ghost Ship, which has not really played out as hoped. And that was a game that they worked on for a very long time with a larger team. And so that's been a little bit sad to see how that performed. On the positive side, uh, during the showcase now we revealed that Ghost Ship is going to release Season 7 and Season 8, 2 new seasons for Deep Rock Galactic. It's very diverse in terms of generating copies in all platforms. Yes. But our normal game, this is quite different. Yes. Where Goat Sim is usually like And also the first kind of content paid expansion for the game that will come out— Summer '27. Summer '27, exactly. Hopefully we will be able to see some positive momentum in the Deep Rock Galactic franchise from, from those future events. So very exciting. Great. progress. Yeah, and both of those studios, Lava Potion and Framebreak, are really healthy. Yes. And like manage themselves with trying to build on these IPs and also new stuff, of course. All right. Also, just some general words on the overall pipeline. We have gotten a lot of questions. Usually it's like always, what's next for Coffee Stain? What's in the pipeline? And we are, as always, we reveal things as the teams are ready to reveal them. That said, we, we did have with the showcase the big break. It was a natural kind of point for us to do some, some new— show some stuff, and I hope it gave some clarity. Uh, to just highlight a bunch of them here, we had, as I mentioned already, introduction Lightyear Frontier 1.0 released yesterday. And then we have Wielders of the Essence from Lava Potion coming out today, which is a smaller game that they have developed, and it's a short timeframe. So it's a smaller title from one of our smaller studios. But yeah, it's going to be really fun. And then there's a bunch of other things like you will see here. We will keep keeping you informed as things Absolutely. Cool. And I think we can then head into the financials. Yes. So as Anton told, the quarter was a lot about Valheim, drove the growth in the quarter. We could see like we had a lower cash EBIT margin caused by like the revenue share agreement we have with Iron Gate, where we share a big share of revenue that make COGS increase a lot. Then you can see on the operational cost base, In terms of that baseline, slightly declined where we were mainly Deep Rock and Welcome to Bloxburg were drivers there where we put in actions to try to return those games to growth with the studios. Other than that, we can say that the operational cost base is very stable. Like the same cash OpEx, ca. $130 million, as previous years, where we expect lower third-party costs starting from Q3 with fellowship going down in the team and also initiatives on having lower, smaller, doing more ourselves and not having as much consultants that we had before. Yeah. Zooming out to look at the trailing 12-month basis, We still see growth on the top line. Also, if you look at the organic growth with the US dollar, it's 16% plus year over year. Very solid cash EBIT margin. And also what we— our split in operational cost is pretty much the same as previous quarter. 75% go into our core IPs and the rest go into new IPs and third-party titles. Our financial position, obviously very, very strong, and also the cash generation still very good. The board have decided to return $300 million to shareholders. We have now AGM in this quarter and we will, we will initiate the buyback program when it's possible in December, early December. And also to mention on the financial position that we, we got 105 million SEK from Iron Gate after the quarter, so not included here. Which also was a very nice thing, of course. Yeah, I think that was Everything for this. Yeah. So let's, let's head into the Q&A. Yes. So we have the first question from Rasmus Engberg on Kepler Cheuvreux. He asked about the 27th, 28th release outlook versus '26, '27, like this current year. Yep. In terms of content release, taking account both Valheim and Rogue War released in 2026, 2027. How should investors think about the schedule for 2027, 2028 in comparison to this? Yeah, the question is about the pipelines. Pipeline as usual. Yes, I think like we don't sit here and reveal new stuff. So, uh, but I think like generally the, the best is probably just to look at historical, uh, historical like how our release cadence usually looks. And also, like, worth mentioning, our group is— we have a lot of the studios are working. We are fully busy on our core IPs and and also these other titles, the smaller ones. And so I would— there's no kind of big change in our tempo on anything, and we are like as we now showed with, with Deep Rock Galactic, for example, there's Season 7, 8, then there's a paid DLC coming. And I would assume that as long as that turns out well, there probably gonna be more coming for that. I mean, we have— that is our strategy, is like we always are kind of evaluating how our games perform, and then we try to just make the best kind of decisions based on that and based on our kind of team sizes. And just also, if you look at history, you can look at historical figures, we can see that we every year have something. Yeah, there's usually something happening every year. So it's, yeah, we haven't revealed anything, everything. Exactly. I would say that, I mean, first off, like, when we started publishing, now this is almost 10 years ago, even at that point, we never had the ambition to build a traditional publisher. And I think we went into publishing with the mindset of being a business-minded developer who knew how to sell games and understand community, the importance of that, and also just more as a business partner. So we have never attempted to be a traditional publisher, and I think that still stands true today. When it comes to friend-slop, I would say that Coffee Stain also, we are not like followers in the sense we try to avoid just jumping the bandwagon on trends, and I would guess that there will be a lot of attempts to mimic these titles, and it's, it's not that easy. Okay, so next question is from Lukas. He has a question about publishing strategy and friend-slop. So how do you view your publishing business and the current publishing trends? Through Goat Simulator and to some extent Deep Rock, you naturally had exposure to friend-slop before the term even existed. Given the Swedish success over the past year, is this an area you want to and will focus on more? I think like, That said, there's a lot of like factors that we really like in the— and I think like there's, if you look at friend-slop games, they're usually made quickly, it's small teams, it's social, it's community-driven, factors that we always take into account when we look at new things. So from that point of view, yes, we are obviously looking at titles that are similar. I'm personally not a huge fan of the term friend-slop. I think it sounds a bit, yeah, like bad. It's like, and I think ultimately it's about building great game experiences where people have fun together and that's something that we, of course, will try to do in the future as well. I mean, we, like Coffee Stain, obviously, like, we go through, like, all our studios, like, it's like a, you have your different kind of periods where, like, you know, it's a lot of— some of our teams are very focused on the existing core IPs with, like, Satisfactory team working on core values and And then at the same time, we obviously want to take some, some new bets, and that could come both from internal teams and studios as well as through kind of the publishing with investments or, or publishing titles. But We definitely pay attention to the friend-slop phenomenon. And yeah, but it's not like we're going to go out there and just try to do a lot of exactly that type of game because I think that will be a very competitive niche. Answer. So next question is about our cash balance. Christian Eklund from Bamba Capital, he asked, the 105 million dividend from Iron Gate is, of course, positive. But your cash balance remains very large even after the 150 million dividend and the 150 million share buyback. Do you plan to return more capital? Through a special dividend or a larger buyback, or are you retaining cash for potential acquisitions? I don't know, Erik, if like, would you want to comment on that? In the end, it's like a board decision, of course, what we'll do. This was not— this 105 million we got from Iron Gate was not like in, in our plan or like the board's decision for when they decided this return to shareholders. So that would be, of course, something we need to discuss with the board now. After we got it. So, but it's never bad to have some money in the bank. And I think like generally the industry right now is in a state where Yeah, there's— it's not as easy. I think like obviously there's no need to have it. We have a very good cash flow, so there could be I mean, as you said, it's a board decision in the end, but we, I mean, we could, I think it's still good for us to have this war chest to be able to act when and if we find good opportunities. And that's actually a good segue to the next question then, because is there a question about how do we actually search and find opportunities to use our cash position to, to do acquisitions or make new bets. I guess generally, like, we are very picky when it comes to— and like, I think I've talked a little bit about this in the past as well. It's pretty tough to do big acquisitions. It's like, for us, it's Making games is, um, It's a lot about having a great team, and it's important for us to make sure that the people that we work with share kind of our values and can be integrated into the Coffee Stain kind of culture and the way of thinking. And we are It's so much focused on making great games. And, um, uh, and it's like, oh, you— it's not our— the targets for us, if we go out and look, yeah, it it's not very— it's quite few, few companies that fulfill those kind of criteria that we really look for. And that then it usually can become quite pricey. So, and we obviously also want to make deals that make sense for our shareholders. So, um, um, I would say right now we are more— and that's not right now, it's like always been like that— we prefer to invest in small teams early on and build them over time where we think that that's has been historically the best way to kind of add shareholder value, where like, and build this organic, um, like structure where our studios ideally keep the founders incentivized over a long time and make sure we sit in the same boat. So But we are active, we are always actively looking, and like, but we are also, we're very aware of how this industry is, is very, it's hard, it's hard to invest in games, and it's, it's a volatile industry, and we are cautious about how to place our bets. Yeah. You want to add anything there, Erik? No, I think it was like, of course, we were having eyes open and having a cash balance in the gaming industry in this point is. like, yeah, picky on that. Very picky. Yes, it's very hard. And also next question, kind of same theme here is, have you considered— it's from Lukas— have you considered course, make it easier to have good opportunity if things will happen. So that's also something. It's not hard to find things to spend money on in this industry. Everyone is looking for money. So it's more about picking the right bets. And that's— you need to be really buying out Valheim IP from— I think we've had this question before. And I think, like, this is, like, we are very happy with our collaboration with Iron Gate. And it's nothing that I would say we are— we're happy with, like, the situation. It's just a good— we have a good collaboration with them right now. We want to keep supporting them. Doing whatever we can to help boost Valheim over time as publishing publisher of it. And then we'll see. But like they are, like we are usually, we actually like the setup where we not own full part of the companies. We think incentives are easier over time where, like, you have other shareholders, you are sitting in the same boat. It's like very clear direction. Share the risk and the reward. Yes. So, no. Okay. I think that was every question we got, actually. All right. Do you have any final Thoughts? Final thoughts? No, it's, as I said in the start, like a fun time right now with a lot of things generally. High activity. High activity in the group. Personally, I think it's very fun that we have these coming expansions for our big games. It's going to be super exciting to see how they, how that turns out when we release them. And then also looking forward to even like Wildish of the Essence today, I'm going to play it myself. And Lightyear as well. So, yeah. Cool. All right.