Good morning, everyone, and t hank you for joining the Embracer Analyst and Investor call this morning. My name is Ben May, and I'm an equities analyst at Berenberg Bank, and I've been covering Embracer for a number of years now. I'm pleased to have been invited to open up the call this morning on what is an exciting day for Embracer, with the company announcing eight acquisitions this morning, spanning a number of areas in the gaming market, from mobile businesses to development studios, to publishing businesses also. We've kindly got the management teams from the acquired companies with us today. Before we hear from the different management teams, I will hand over to Lars, who's going to run you through the strategic rationale for the acquisitions completed this morning, and will be back at the end of the call, at which point I will host a Q&A. Over to you, Lars. Thank you. Thank you so much, Ben, for being able to join this call with short notice this morning. He llo, everyone, and very welcome to sunny Karlstad here in Sweden. I'm excited and delighted to finally be able to present eight new acquisitions this morning, eight companies, and welcome more than 560 new colleagues to the group. Today, we will present CrazyLabs from Israel, one of the leading hyper-casual mobile publishers. We will present Ghost Ship Games, a well-known name from Denmark, the makers behind Deep Rock Galactic. Also from Denmark, we will have Slipgate Ironworks and 3D Realms. Further, we will have one of the leading VR developers, Force Field, from the Netherlands, and DigixArt from France, one of the leading indie games developers, story-driven, and E asy Trigger, which is close by here in Sweden from Trollhättan. Finally, the leading merchandise company within Viking themes, Grimfrost. With that said, I would like to take you through the summary of the financial terms of the acquisitions disclosed this morning before we enter in the company presentations. The aggregated day one purchase prices for all the acquisitions announced this morning were SEK 2.7 billion on a cash-and-debt-free basis. Approximately SEK 2.1 billion being paid in cash and approximately SEK 0.6 billion is paid in shares. The fairly high ratio of cash paid is driven partly by some VC and financial owners in one of the most significant acquisitions that are exiting the business. The maximum additional consideration amounting to SEK 2 billion, which is as usual, subject to fulfillment of agreed milestones, both operational and financial, over a period up to eight years. Of that SEK 2 billion, up to SEK 1 billion are paid in cash, and furthermore, SEK 1 billion in shares. The aggregated maximum consideration amounts to SEK 4.7 billion. To give you some insight into how this earn-out works, we are sharing the following. To achieve the maximum additional consideration of the acquired companies, the combined aggregated operational EBIT would be exceeding SEK 6 billion from today or up until March 2029, over the upcoming eight years. To illustrate this further, to achieve the maximum consideration milestone on year five, that year only, the acquired companies are estimated to generate SEK 1 billion in operational EBIT during that financial year ending March 2026. The estimated or preliminary surplus value for all acquired companies is SEK 4.5 billion, and this will be amortized as usual over a straight period of five years, according to Embracer's accounting standards principles. Looking at the financial impact of all the acquisitions. The net sales contribution we are estimating to be between SEK 2 billion to SEK 3 billion during the next financial year, starting April 1st, 2022, and ending March 2023. Profitability-wise, we are estimating operational EBIT contribution to be SEK 300 million to SEK 550 million during the same financial year ending March 2023. During the remaining half year, Q3 and Q4, the run rate is expected to be in the lower end of the above-mentioned range. To be clear, CrazyLabs is by far the most impactful contributor, and t hat is estimated to be closed during the end of the current quarter ending March. An extra general meeting will be held the 23rd of August, and it was published in invite for this morning, and t he reason for that is that the board doesn't have a mandate to give out shares enough. We got a new mandate in February, and now we need a new mandate to close all these transactions. That's why we're having this extra general meeting. I would like to repeat that we still have a strong balance sheet with a sizable net cash position to support further M&A going forward. We continue to have many ongoing discussions with entrepreneurs, creators, companies to join the family, including large or even transformative acquisitions that potentially could create new operating groups. With that said, I would like to welcome the team from Crazy Labs and CEO of DECA, o nline. Hello, Ken. Hello Lars. Sagi, Guy, Nurit. Hi. Hi. Hi, guys. How are you in Tel Aviv? Very hot, v ery excited, like h alf an hour ago, we announced to the employees. We asked them to be a little bit more quiet so you can hear us but they're very excited about this, and so they are all excited. Fantastic. You are very welcome to the group, and please send them my best regards here from the headquarters in Sweden. I would like to leave over the stage to you. I will try to manage the slides here. I will leave over to you, Sagi, and then please feel free to introduce yourself, your team, and then the company. Sure. My name is Sagi Schliesser. I'm one of the founders of CrazyLabs and the CEO since 2010. I have a strong technological background. I've done eight years in the army in tech positions. I had a startup in the B2B area and then I've done 14 years of Insurtech. Last position before creating CrazyLabs was in Sapiens, a Nasdaq-traded company. I loved moving from B2B to B2C. For me, it was a big, great change. You go direct to consumer, which is amazing. This is a little bit about me. In the beginning, I used to call myself the chief DNA officer of the company. I believe in DNAs. I believe in the teams, in what we create, and when that aligns, then usually everything else aligns as well. We have an amazing team. Two of them, they will introduce themselves, and then we can introduce a little bit about the company as well. Hi, I'm Guy. I joined Sagi and the team here in 2012 as a COO. I also come from a tech background. Actually, Sagi and I worked in our first startup together in 1999 and 2000 in the B2B, and then I also had my own startup that I founded, and I was very happy to join Sagi again in 2012, and very excited to be here today. I'm Nurit Benjamini, also from Tel Aviv. Joined CrazyLabs about eight years ago. I have financial background, and half of my career was the CFO of public companies registered to Nasdaq, and then I moved to the private market since my kids were born, and I'm very happy and excited about this transaction. Okay. Very welcome. Sagi. Let me tell you a little bit about Crazy Labs. We can talk all day about it but just the highlights. Since 2013, we've been a top downloaded company. We excel in the marketing side but also in game creation. We evolved into two main lines of business that we'll enhance a little bit about them in the next slide. We have both casual with strong lifestyle and female-oriented game roots, with Super Stylist being our frontrunner game, which is consistently growing and showing really a great outcome. We have also really a good pipeline, and h yper-casual, which was the genre that evolved out of the fact that there are billions of people with a gaming device in their pocket, but not all of them are hardcore gamers. Th ey can just play for a few minutes each time and download a lot of games, and we are one of the top hyper-casual publishers. Last year, in 2020 alone, we had almost 1 billion downloads in the app stores. We accumulated so far in our history over 4.5 billion downloads, which is a really nice amount. We have around 110 unique monthly active users, so kind of o ur highlight KPIs. If we look at Super Stylist, then it was released in 2019, and y ou will see the upward trajectory. It started as a game which was doing in the hundreds of thousands, and now it's doing millions on a monthly basis. The revenue is growing, contribution is growing, and also the in-app components. Around that, we've built a lot of knowledge and gained a lot of strong teams that were working on launching Super Stylist and are now also involved in launching other projects. If we look at CrazyLabs, our vision was to have these really strong two pillars. On one side, creating deep casual gaming experiences, and a s we already told you that we started as tech people, we have some tech background. We also love the content part, but everything we create, we create with the mindset that if it's going to be successful, then let's create it in a way which will then enable us to do it again and again in a better way. Every time we create a new game genre or type, we create it actually as a small platform that is repeatable. We believe in that way, that is the best way for us to create things. We've done that in the casual, in the lifestyle side, but also in the puzzle RPG, in the games that we'll tell you that we're going to launch. It's a mix there with the in-app component and users that some of them are becoming highly repetitive users, and paying users, and high monetization. We have hyper-casual, t hese are smaller games, a bigger funnel. Out of them, a very small amount of games that we test going to launch. We'll discuss the process a little bit. It really made us a powerhouse of marketing, understanding themes, and what can be successful on the App Store and how, and building a very strong marketing team. We see that it really helps the casual side on the hyper-casual side, bringing from the game expertise, and from the hyper-casual side, the marketing capabilities, being innovative, and being really agile in marketing our games. In the middle, we manage to find opportunities where we are entrepreneurs, and when we find things that are not defocusing for us and can leverage from that, so we also go after them, and it's very interesting and dynamic atmosphere. You heard a little bit about the three of us. We have, by the way, a very strong leadership team on casual, on hyper-casual with the game owners, with a lot of experience in the industry from different companies, and a lot of people that were raised in-house, which is great. A team of over 300 people and expanding, focusing in few main geographies. Here in Israel, where we started, is also our headquarters in Tel Aviv, but we also have a very strong team in China, an amazing team in Macedonia. Recently, we also added offices in Germany, and we also have a very strong team in the Ukraine. Part of the way we feel we are innovative in hyper-casual and in finding developers, we are a developer that at some point started also helping other developers in doing publishing. We have both in hyper-casual, and Guy might talk about it a bit more. We said, let's try and meet developers before they even know that they are developer in hyper-casual. We've built this hubs program where we find really talented individuals. We sort them, they submit tests and games, and we help them become hyper-casual developers and launch their games to millions of people around the world, and it's a very exciting program in many geographies. We started in India and in Israel, and now it's expanded to other territories, Serbia, Turkey, Poland, and South Africa, and more is planned in the pipeline. We bring a lot of value to our external developers because, unlike maybe a lot of other publishers which are pure publishers, we are also developers. They appreciate the fact that we can give them tips both on their game and also on the marketing. It gives us, in hyper-casual, a big competitive advantage, covering a little bit casual and lifestyle RPG. This is our evolution line. We started with smaller casual titles in lifestyle and evolved into bigger games, bigger meta-game, role-playing games, and creating social interactions and PVPs. We also have had good relationship with media partners, and we've launched games with Sony, with Mattel. I think our most significant partner to date is ZAG Entertainment, a French company that has "Ladybug," which we launched a runner game with them, which is very successful. We signed with them to launch next year together with the movie launch, a puzzle RPG game. One of the things that we have done, we identified the puzzle RPG market as a very interesting market for us to evolve into. We are now in soft launch of one of our first titles there, "Once Upon a Match." As I revealed earlier, we build things in a way we believe that can be repeated. We've built it actually as an puzzle RPG platform. When we had the opportunity and Zag asked us to think about what we can launch next, so we proposed to them to do a bubble shooter based on that platform, which is going to launch with the movie in end of Q1, Q2 next year, and soft launch towards the end of this year, so r eally exciting evolution on our casual business. The business is growing in casual. We expect the stronger growth as we go forward and the new launches, which take more time on the puzzle RPG platform, will start materializing. We are constantly increasing and among that, "Super Stylist" is taking bigger and bigger position out of the total pie and getting really high valued users that play for a long time in the game with the social network that is really enthusiastic about the game and where it's going forward. It's the most downloaded fashion game in 2020 on the app stores. If we go to hyper-casual, Guy? In 2020, we had 11 launches, and this year we plan at least twice as many launches in hyper-casual. Some examples that appear here, for example, "Tie Dye," that was one of the biggest one, had 70 million downloads in the first nine months. We are very focused on expanding our presence into countries that are very suitable to the hyper-casual business model today. Turkey is considered probably the most successful country in hyper-casual. There is a gold rush to the hyper-casual today in Turkey that everybody want to develop games now. We opened a hub in Istanbul. We hired a small team there, and we opened a hub together with one of the universities, and we teach them how to make hyper-casual games, and then they continue to work with us at least for one year further and launch game with us. We also are very focused on India, where we just acquired a small studio that is called Filesco, and they already launched with us three games successfully. Two of them appear here, the "Acrylic Nails" and the "Soap Cutting," and t hose are three games that they launched with us already generate nice revenues and reached 200 million downloads, and we acquired them just recently. We actually just closed this deal, and now we have a very strong presence in Mumbai, and we have another studio that we work locally in Hyderabad, and we also opened a hub in Hyderabad. We are very focused on the India market that now we see it as a huge opportunity for us. As Sagi mentioned, we are also doing it in other places such as South Africa and others. In terms of the hyper-casual process, so it's first about the developer relationships, building them. We have it split between external developers, with which we are launching about 70% of the new games, and we have internal studios with whom we are launching about more or less 30% of the new games with the internal studios. It starts with this local presence and with building the relationship, and we work with hundreds of developers around the world. We test hundreds of prototypes every month, and there is a very clear funnel to success. We do it very rapidly, the UA and monetization testing, and eventually we launch the games, and we focus on the contribution margin. By the end of the year, we aim to launch about three new hyper-casual games every month. T o focus what hyper-casual is, for those who don't know, it's like the Snake and the Tetris that all of us used to play. Today, they just got their own genre, and t hey are called hyper-casual. They used to be just games that everybody plays, and today they have a name, it's called hyper-casual games. Very important part of our competitive advantage in hyper-casual is our cutting-edge technology. We have a self-serve dashboard that those 100 developers, they can test the games independently. They don't need us to run the UA campaign and everything for them. We just close the deal with them. We give them the access, and we approve the test in terms of the quality of the test, but they can run it by themselves, the test. They can see the results. It's very transparent, and they get attached to work with us through this dashboard because they really like it that they can iterate and learn how the game works. Other tools that we have are deep machine learning that we use for the ad monetization side, for how aggressive we are with the ad monetization. We run A/B tests, continuous A/B tests to optimize the game in the background, and a few other technologies that we use to make our UA user acquisition and ad monetization as efficient as possible in this industry. It's a big advantage. Yeah. Yeah. Perhaps I could step in here. Nurit, are you online here? Perhaps you can just tell us a bit about your revenue growth. You can see that revenue grew tremendously in the past two years. In 2019, we ended with $72 million revenues. We reached the $100 million mark in 2020. We continue to grow. Here you can see the last 12-month numbers with $153 million and w e continue to work hard to increase these numbers. You can see also the breakdown, the casual and hyper-casual, both segments are growing. Hyper-casual is growing a bit faster, but we expect both segments to continue to grow this year, and the years to come. Thank you. We are expecting, as you're stating, a significant growth coming out from you. You have a fantastic team and pipeline, and a strategy to achieve this, which I highly believe in. We have a very long-term commitment earn-out model as well to incentivize you and the management team. Yes. We are very excited to continue and do this together for a really long time and it's great. Yeah. Sagi, just coming into the rationale, I can just say a bit here, but I would like to just hear you out as well. Obviously, I just felt a very strong entrepreneurship from you and the team. It's amazing you've been through a lot of ups and downs, but you are really an amazing company to adapt to changes, and I think you are the winner of tomorrow. You have a strong pipeline, and hyper-casual in the way how you work is somehow a bit similar to what you 're doing in Premium Games, even though the games is very different. You work with external developers, and you publish them, in combination to have your own in-house development. Ken, are you online here as well? Yep, I'm here. Ken, being the leader of the DECA Games and now having CrazyLabs being part of the vertical and assist the company to the existing companies within DECA, what synergies do you see here? I see a lot. I'm really excited to have the team join. There's a lot of similarities between our companies, even though we're doing very different types of businesses. We felt that the culture, the people, the drive, there's so much similarities, and they're going to fit in really well with the rest of the group. In particular, CrazyLabs has this immense dynamic business where they've been able to be successful in all different types of the industry, and I think that's really important going forward as the mobile industry is adapting, is changing very quickly. It's really based on their technology and the team that they have. DECA, I think, can really utilize their publishing capabilities and the technology that they have to support the products that we have, not only within DECA's live operations business, but also within the studios in Canada that already are with us. Vice versa, I think that DECA has an immense foundation in live operations, which can only help CrazyLabs in their casual titles. Thank you. Sorry, the last thing is that together, we plan to tackle a lot more M&A as well. I think both DECA and CrazyLabs will be very active on the M&A side. Yeah, it's quite funny that we saw this morning the press release of the Crazy Labs acquisition India, that Guy mentioning. That, I think, is fantastic. It's already happening. Yeah Within a few minutes. A word on our side, I think for us, it's all about people, and this is what we liked about Embracer meeting Lars and Jacob and Ken, and for us, we connect with people. It's the most important thing, and we felt entrepreneurs to entrepreneurs and people to people, that we share values, the way we look at teams, the way we look at gaming, and the way we look at what we want to do next, which is continue to grow amazing business in gaming and do it together. For us, it was critical. We found a place where we feel that is our next home, which is really an emotional word for us. Home is not anywhere, and we feel that Embracer can really be our home. As I said, Embracer also has this amazing name because it already makes you feel embraced. Thank you. Thank you for the kind words, Sagi and, l ikewise, I can't wait to meet your team one day and to see how you are able to be integrated and how to work together with the rest of the company. It will be very exciting. With that said, I would like to thank the team from Crazy Labs and Ken, I would like to move over. Thank you very much. Thank you. Feel free to stay online. We move over from Tel Aviv to Copenhagen. Welcome, Søren, Mikkel, and Anton from Coffee Stain. Thank you, Lars. Hi, Lars. Hey. Welcome to the group. Thank you. Thank you. We are super excited about joining Embracer Group, v ery, if our voices are a little rusty, it's because we celebrated this yesterday with team, which is also very excited. Yeah, m y name is Søren, and I'm the CEO and co-founder of Ghost Ship. My name is Mikkel, and I am creative director and also co-founder of Ghost Ship Games. We are six founders of Ghost Ship, and we will get back to that. Maybe you can change the slide, Lars. Sure. We can see the team here. Actually, as you can see, we started in 2016. Let Mikkel start that because I was not part of that initially. No. Besides Soren, we were five people coming from another company that was closed, and j ust as when the company was closed, we got together and said, "Hey, shouldn't we start our own company?" We had an idea for a game, that was to be Deep Rock Galactic. The five of us had the skills to actually create this game ourselves. We are a team that have more than 20 years of experience in the game industry. Each of us, yeah, n ot together. We are a group of three highly skilled programmers, an art director, and me as a game director, game designer. We got together, and we started working on Deep Rock Galactic, and we very quickly realized that we were needing a dedicated CEO, both to help us fund the company, but also build the company. Fate would have it that you moved your office into the same office building where I was working in a different game company, just on the second floor. I was invited down by Mikkel. Me and Mikkel, we worked together for 10 years back in the days. We kind of had an unsaid thing that we wanted to work together someday. Yes Again and do our own company. I was down there, and I was very envious. This was just the startup smell, right? This was so exciting. I went back and, "Yeah, good luck. Yeah. Then we talked about it, and then we basically just offered Søren to become CEO for the company. I said yes, which is a decision I do not regret. No. Because it's been an amazing journey since then. Of course, we got some money, we got some investment, we got on a collaboration with Coffee Stain, which has been throughout all these years almost. We've been building up a team. You can see the beautiful picture of this pirate developer team. We've been skillfully selecting these people, some of them from our existing network, some new people, some young blood as well. We're trying to still keeping a lean, efficient machine with everybody having hands on the product, being as effective as possible. Maybe we should talk about the game that made us, the Deep Rock Galactic game that made us. Deep Rock Galactic is a first-person co-op shooter, and in the game, you play as a team of four dwarves who work for this mining corporation, Deep Rock Galactic, and they send you on missions into alien planets in order to mine them for precious minerals. It's all about getting out alive. It's all about going on adventure with your friends and having a fun time. Yeah, there's a lot of camaraderie in this game. Yeah. It's about this thing about working together. We set out a mission to create the best co-op game ever. Right. We also put that as a statement for the company. The company motto was, "Co-op first," which also relates to the way we work with our fans, where we have a collaboration with the fans, you can say. When we started working on the game, we made a decision that we wanted to develop the game in what we call open development, which means that we have very few secrets. We put out what we're working on and tell our fans about it. We have not much secrecy about what we do in the company. That has two huge benefits to producing a game in open development. The first is that we don't waste much time on working on features that are not going into the game, because we make our decision based on what our audience and fans already want and are demanding. We shape those features together with them, which means that we basically deliver 100% of the work we put into producing the game is actually ending up in the game. That's very effective. Obviously, producing a game in open development for the whole developing team is just immensely satisfying because we get instant feedback from our community, and that's just satisfying. It's also a way to make this big game compared to how small a team we are because we have all the contributions from the fans in terms of finding bugs and helping us translate the game and promote the game to their friends and so on. Yeah. To some degree, I think you could say that it's also part of our marketing strategy. Now we're part of Embracer Group, and we are extremely proud to be now a sister company to Coffee Stain. We've been working together very closely with Anton and Albert and the other great guys from Coffee Stain, and now being in this position in Embracer Group just feels like the natural next step for Ghost Ship and a way for us to further expand on the Deep Rock Galactic IP to create new IPs and to also move on on our interest in investing into game startups. Yeah, you are well-positioned with your colleagues in Denmark and elsewhere in the world as well, obviously, but you already have made a few investments into other companies in Denmark, haven't you? We've made one, and we have one ongoing, which will likely close quite soon. We are looking at several more. When we started announcing that we were interested in doing this and had the ability to do it, we got quite a lot of attention. Especially also, of course, people want money, but they also want the knowledge that we and Coffee Stain have on how to develop and publish indie games. Early access games. Early access games, specifically, and the Steam platform expertise. Yeah. Yeah, I think it's very interesting, and I highly believe in the vision and the strategy you put forward, and super excited that you also have agreed on a very long-term alignment, eight years incentive for you. I think you will contribute a lot to both the Coffee Stain ecosystem, but obviously the wider Embracer Group. Yeah. We expect to. Yes. Thank you very much. With that said, I would like to say again thank you to Copenhagen and then move over to Anton and Trollhättan, in a way. Hi, everyone. Very exciting day, obviously. Super happy about Ghost Ship. It's been long discussions with you guys to get you into the group. I was happy that we finally could make it work out. Today we also have another announcement. That is the Easy Trigger acquisition. Easy Trigger is a quite small company down in Trollhättan, which we have been working with for a couple of years now as well. It was actually one of the first games that we signed in our publishing after publishing was started as a separate company. Easy Trigger is mainly known for Huntdown, which is an old-school arcade platformer shooter, which when it was pitched to us, it was supposed to take one year to develop. In the end it took four years to get it to the market. It takes a lot of time to make great games and it turned out well. Yeah, it just felt like a small, nice team that I think is going to be a very natural addition to the Coffee Stain Group. Easy Trigger is becoming a part of Coffee Stain, not as Ghost Ship, which is going to live as a sister company. Yeah, just super happy pretty much to have Easy Trigger as part of Coffee Stain now, and the plan with Easy Trigger is to establish this little company in Trollhättan that will grow just as Coffee Stain does, slowly, but with the development, as they need more people, they will grow and create new amazing IP, just like Huntdown. Hopefully new IP as well. Yeah, can't wait to see what we will make with Easy Trigger in the coming years. Thank you, Anton. I think all of us who love retro and arcade are absolutely amazed of the product of Huntdown. It is really well-received, great reviews, and I know there is a lot of love from a lot of fans out there, and it is also now actually coming in a physical edition, close to my heart, and super excited to have them on board. Thank you, Anton. With that said, we are leaving Trollhättan and moving over to Amsterdam. Arthur, Martin, John. Thank you, Lars. Obviously, we're very excited to be welcoming Force Field to the Vertigo and Embracer family, but I'm going to let them speak and introduce their company. I think that's a better way to approach this. Arthur Houtman, as you can see, is the CEO of Force Field and Martin de Ronde is the Creative Director. I thought, Arthur, if you would introduce the company to our audience and give a little bit of description of your journey and how you've moved into VR. Hello, Arthur, s orry for jumping in here. We spoke yesterday, and I'm very highly impressed about your background, why don't you tell us about your background before starting Force Field, and then jumping over to Force Field? Sure, Lars, can do that. Thanks, John, for the introduction. Good morning, everyone. Yes, myself in the industry since the early '90s, with the arrival of CD-ROM at the time, multimedia, CD-i was a whole road to where we are today. I've worked at companies like Infogrames, Atari, Disney in the U.S. I've been hopping around from country to country a lot and now back where I'm originally from in Amsterdam. The Force Field studio, the core team, has been working together for well over 15 years, so we have a really very senior management team on board. Always been very interested in new emerging technologies. That's how I got into the industry as well when I saw digital distribution being possible on CDs, and that's been more or less through our history as a company, and my own runway as well in my career. Things, we worked for Amazon on new platforms. We worked for Microsoft porting Halo to mobile devices. Yeah, we did a lot of OEM work and very specialized work for hire, making showcase software for new platforms, new devices. When we saw VR starting to emerge and the affordability of the new devices that started to come up, we got very interested and started working on some R&D next to our other work, and very quickly we got in contact with Oculus, who was of course preparing the launch of the Rift platform, the Rift device. Yes, they asked if we wanted to make a game for the Oculus Rift when that was still in gestation at Facebook. Yeah, that was 2015, and we haven't looked back. Over the time, we've done a very wide variation of all kinds of VR experiences and games, always trying to explore and demonstrate what the possibilities of VR are. Through that time also, we're also quite a technically oriented company. We've been able to develop an enormous amount of technology specific to VR, and we've worked with great franchises. We worked on the Star Trek franchise. We worked with National Geographic doing travel applications. Today, of course, seeing the market grow, we were looking what the next step for the company was, v ery excited, of course, to go into less business to business and more consumer related business. That's when we started talking with Vertigo, and here we are today. Thanks, Arthur. Diving in a little bit further to that process as you started talking with us and what led you to joining the Vertigo and Embracer families, could you sort of walk us through the rationale for the deal from your perspective and what opportunities do you see this creating for Force Field? Yeah, as I said, the business to business of course, was a great way to get on board with VR, as there was not a big market in 2015, 2016. That definitely gave us the opportunity to explore the possibilities and to work on our pipeline, our technologies, and grow the team. We saw, of course, with the rapid growth that the market's been doing over the last 18 months, we definitely saw, okay, now is the moment that we can do the next step and go over to more of the passion of the studio, is making games that we want to make and not being asked to make a specific kind of game by a client. We knew Richard and Vertigo, of course, as fellow countrymen, an extremely successful VR company. We've had continuous talks with Vertigo over the time, and when we wanted to make that step, we had a discussion with Richard and it was clear that this was a really good match to join the two companies and come together and being actually the biggest dedicated VR studio in the world today with, I think, over 140 employees. Martin, from your perspective in terms of the creative view of the type of games you're looking at, what does this combination do from that perspective? Yeah, I think as Arthur mentioned, you know I think it's fair to say that we've more or less grown along with the growth of the VR market over the past six years. As Arthur just pointed out, we really enjoy a very close partnership with Oculus, working on creative work-for-hire launch titles for almost every single one of their VR devices that they launched. Because of that, we've been able to more or less build and grow this, what I think is amazingly talented and wonderful group of people that are now capable of delivering best-in-class VR experiences and games. Obviously now that the VR market is growing and you've got next gen devices that are going to be hitting the market soon, I believe that we're starting to see the moment where consumers are going to be looking for full-featured, console-style, triple-A VR games. I'd like to think that with our fantastic team, we're more or less perfectly positioned to deliver on those kinds of expectations. The only question that remained for us was, will we be doing that independently or as part of a larger group? The answer was more or less quite simple. When you have the opportunity to partner with yourselves, arguably one of the most successful developer publishers in VR over the past five years, and you're also located in the same neighborhood, this opportunity to create the world's biggest VR studio, a true VR powerhouse, which will allow us to focus on truly creative triple-A VR development instead of exciting, but still creative work-for-hire stuff that we've been doing, was simply an opportunity that we couldn't pass on. That's obviously even disregarding the fact that Vertigo is part of the Embracer Group and a subsidiary, of course, in Deep Silver, because as far as I'm concerned, that was the icing on the cake. Being part of such a large and diverse group with all these amazingly talented and different development studios, some of which we have been listening to today, I think it's tantalizing from a creative and a commercial point of view in terms of VR. The fact that we're able now to engage in discussions with our fellow new colleagues and studios about bringing some of these beloved franchises into the world of VR is extremely exciting. Certainly from our perspective, bringing together these two studios allows us to much more rapidly grow in terms of our internal development capability and what we can bring in terms of triple-A VR. We've talked about this a lot as a group, but for those who may not know, certainly the VR market continues to grow rapidly. We're seeing continued growing investments from first party platforms to grow the install base of this market, and really believe that this transaction helps us stay in, and continue to be a leader in this segment. From your perspective, Arthur and Martin, what does this mean for the VR landscape? Maybe a little bit more of what you see the group's ability to do. I think we're definitely showing the larger game industry the route to success in VR. Vertigo has already done that, now we're really upgrading the whole company to a new level. A lot of the bigger publishers and colleague studios have always been waiting for it to happen, and I think we're definitely sending out a clear signal together with, of course, the growth that everybody is noticing in the market. I think we're going to be taking a lot of people along in our slipstream into this new and exciting entertainment platform. I echo that. It feels like a perfect combination. We've got Vertigo and Force Field as veteran VR developers, you've got the very successful publishing power and know-how of Vertigo Publishing, we have the, if I can call it that, the IP candy shop of Embracer, which I think is a recipe for creative and commercial success because the market is growing, the stakes are getting bigger, and you've got consumers craving for console-style, triple-A VR experiences. I think there's never been a more exciting moment for VR, both commercially and creatively, and I think the coming five years are going to be amazing. If you're a hardcore VR gamer and you like some of Embracer's most popular IP, I think you have every right to be excited by this announcement and partnership. Thank you so much. Thank you, John, Arthur, and Martin. I am super excited about what the future will bring with you and we are. With that said, I would like to thank you, the team in Amsterdam and L.A., and move over to somewhere in France. Where are you? You are at the camping. Yes, we are. I don't know if Klemens is there today. Yes. I absolutely am, following the presentation of friends in VR. For Koch Media, this is a big day. This industry is about creativity, other companies believe in building a few IPs bigger every year. We believe in diversification. VR is very close to our heart because it's growing at a fast pace in the general business. There are other areas where we believe we can play. This is narrative games. This takes me to Digixart, which we are presenting now. Two years ago, this was the first touch point with Digixart, was that Road, the Road, I think it was called at the time. We see hundreds and hundreds of games, right? We are all looking for the hidden gem. We are looking for something we have not seen before, and the R oad really ticked all these boxes. We were really following closely the development of the game itself, and then got in touch with the team behind it. I must say, it was great to see the team in Montpellier in their office now, and we immediately clicked. Yoan and Laure, please tell us all about your story and your vision. It's an amazing, unique setup that you have there. First of all, we are really happy and excited to join the Koch and Embracer family today. We founded DigixArt, Yoan and I, six years ago, and our goal is to create meaningful narrative stories. I will let Yoan explain. Yeah, we are working on the third title right now, like you said, Klemens, Road 96, with launching, in fact, in a few days, on August 16, on the Switch and PC. It's a very exciting moment. It's a big year for us, and we are really happy to join the group. That will allow us to expand and to double the studio very soon, because we have a lot of ideas, we have a lot of things we want to make, and now we can do it, so it's a really nice thing. We are based also in the south of France, as you can see on the map, in Montpellier. It's a very nice area for video games. There are a lot of developers and talents here, a lot of nice schools also in the area. It allows us to expand quickly in the next months because we have so many ideas we want to try in the narrative adventure space, more than just narrative, in fact. We want to explore new fields, like how can multiplayer interact with narrative, for example. This is the kind of thing we want to try. We are really innovative-based. Road 96 is a procedural narrative game. That can sound a bit strange, but we managed to make this, so we believe we can do other new things in the future, very exciting for players. When we see all the hype around the game, we are pretty sure it's a good way to go to try very different things. It's a very exciting moment. Yeah. As a publisher, we are always looking for the next thing, yeah. We are always looking for innovative studios. This team, it is a small team, it's an indie studio, but strategically, I believe that this is a great launch for us as a global publisher and big waits until Road 96 launches. The future will really show a good potential for many similar games. This is a new area and a new type of game in our roster. We, as you know, Deep Silver and Prime Matter, and Ravenscourt, we have a wide portfolio of games, but n arrative games are underrepresented. This is now the starting point of, we are opening a door into a new era. Yeah. When we look at all the IPs that are within Embracer, we really think there are good synergies we can make. I think we lost you there, Yoan. Sorry. Yeah, don't worry. I think we need to thank you very much, and again, very welcome to the group. Thank you, Klemens, for joining this presentation as well. Leaving France. Thank you very much. heading over to Denmark again, and Jutland. I think we have Frederik and Andrey here. Andrey from Saber on the call. Yes, and me. Tim. Yes. Sorry. Great. Great to see you all here. Yeah, we're all here. all here. We're all here. I know it's in the middle of the night in the States, but thank you for staying awake. No problem. It's very exciting for us. The Slipgate and 3D Realms, we've always been a big fan of what they've done, the legacy of 3D Realms, and the exciting new projects that Slipgate has currently worked on and is currently working on are very exciting to us, and we feel that we'll have many opportunities to do something exciting. Frederik, are you online? Yes, I'm here. Hi, Lars. Hi, Tim. Hey. Finally, we got together in the same family. We got to know each other a few years now through THQ Nordic, I think. Yeah, absolutely, I think we've been working together for, it's almost five, six years now. Yeah In different capacities. Yeah. Why Embracer, Frederik, and Saber? We started working with Saber, I think it's almost a few years ago now. We had a very aligned strategy overall. Also with Tim and Todd joining Saber, there's a lot of both creative and business alignments with Saber Interactive. We've had the honor and pleasure of working together with Saber now for some time on various projects. When this opportunity came to us, it was very clear that Saber was the perfect home for us. We also knew you, Lars, and we knew Embracer from previous collaborations, previous IP that we have worked together on a few years ago. This was pretty much a match made in heaven for us. Thank you. Why don't you tell us a bit about how Slipgate is looking today? Absolutely. Slipgate was founded in 2017. The core team was established way back in 2011 under the name Interceptor. We did, you can call it, the first boomer shooter, that kind of created this whole sub-genre of old-school, retro, first-person shooters with a very obscure game called Rise of the Triad. It became kind of a viral hit. It was a very janky game, but a very fun game. This was way back when Steam was still in its infancy almost. The game did incredibly well for us, and we built up Interceptor and our team. We did a few more games. The last game we did, we sold to THQ under Embracer. Then we, in 2017, rebranded as Slipgate, and we almost exclusively do hardcore action games and first-person shooters. As some of you might know, Slipgate actually stems from a series that Tim was very involved with, the Quake series, where the Slipgate portals were essentially ways that you go through the different universes in the Quake universe. We named our studio Slipgate because that resonates really well with what we do. We primarily focus on hardcore, old-school shooters. Over the past four years, we started expanding what we do to other sub-genres of the games industry. We started helping out some of our good friends with some of their games. We built up an expertise for almost a decade in specifically Unreal Engine, going back to the early days of Unreal Engine 3, and then, of course, following all the different revisions. We started helping out other studios within also the THQ Nordic and Embracer Group family with their games, using the Unreal Engine, helping them port the different games to other platforms. This was a way for us to both learn more, but also help out studios that we really liked working with on other projects. As part of that, we established a porting department, where we don't necessarily market ourselves as a porting studio, but we like helping out studios that make games that resonate really well with what we like to do. We then, as part of that, also started co-developing. The biggest game, one of the biggest games of this year, Ghostrunner, we co-developed almost from day one. We were presented with an early vertical slice of the game a few years ago and have been working on that game together with All in, One More Level, and 505 for a few years. The game was released recently to fantastic reviews. We have also done all of the ports for the game, including all the way from Switch to the next-gen ray traced ports for PS5 and Series X. Last but not least, we have our internal development, where we're currently making four games internally at Slipgate, almost all original IP. The games range from classic hardcore first-person shooters. We also have an unannounced real-time strategy game that we're working on with some great partners, one of them also being THQ from Embracer. We have our hands in a lot of different things these days, but I think what's common for all of it is that it's all within this genre that we feel really comfortable with, hardcore action games. Yes, as a hardcore action game studio, they fit so well with Saber and what we do and how we are improving our portfolio. As Frederik said. His old retro shooters are some of the games that I worked on. I feel like I'm getting old. Their future is more than just updating retro shooters. Like he said, the portfolio is increasing, and we really see exciting things, Frederik, for you and your teams in the future as well. Thank you so much, Tim. Yes. I moved slide over to the 3D Realms. Could you explain the connection here and what the ambition is with 3D Realms? I know it's a well-known brand for a lot of people. Absolutely. We have been working with 3D Realms from day 1. The first game we did under Slipgate, under the Interceptor name, was actually a 3D Realms IP. Way back in the early days of the first-person shooters, they made a game under the Apogee name called Rise of the Triad, which was originally called Wolfenstein 2: Rise of the Triad. The first game we did was a remake, a reboot of that game. We had a long relationship with 3D Realms. In 2014, we were lucky enough to acquire parts of 3D Realms and help build up a new version of 3D Realms, which harks back to the, you can call it, the good old days of what 3D Realms were known for in the mid-1990s. Games like Duke Nukem, Max Payne, Shadow Warrior, Prey, and so on. A lot of classic games that many of us grew up playing. These days, we have built up 3D Realms as a new publisher and call it a team builder. What we primarily do is build smaller development teams and create new IP, just as 3D Realms did back in the day. Among those are games like Ion Fury, which came out last year, which was a big success for us, a spiritual successor to the classic first-person shooter made popular with games like Quake and Duke Nukem. We also have brand-new IP and new teams that we're working together with, Core Decay and WRATH being some of them. We're working together with other great partners, such as Interplay and Nightdive, on bringing back some of the old-school shooters, which were part of the legacy of the '90s. Games like SiN, which was a game originally done by Ritual Entertainment, which was a studio formed by previous 3D Realms employees. Kingpin as well, kind of a forgotten classic also from the mid-'90s, a first-person shooter. As you can see, the theme under 3D Realms is mostly what it was back in the '90s. We focus on what we're good at and what we know best, which is hardcore first-person shooters. We also have some new titles that are unannounced. We have a big event coming up here in a few weeks where we're going to announce a range of new titles under the 3D Realms label. We're incredibly excited to have the honor to follow and build this company that was founded the year I was born. Yes. That's fantastic. Yes. For us, having 3D Realms has a name that we are all familiar with, and to now have these titles and these legacy brands in our portfolio, and to now be able to do and excite with them for Saber, working with Frederik and his team is, again, very exciting for us. We're looking forward to it. Andrey, I know you have been working hard to get this done as well. Do you have any last comments here from the Saber side on this? Well, I certainly want to welcome Slipgate and 3D Realms and Frederik personally into the family of Saber and Embracer family. Like Frederik said, we met a few years ago. I guess it was love from the first sight. We always looked at Slipgate and Frederik as, I guess, Saber in its younger days, meaning these guys are doing some work for hire. They are working on original IPs. They are publishing some of their games through some other publishers. They are bringing some other titles to market themselves, which is similar to what we do. We certainly respect their creative abilities. We certainly respect their technical chops. I would say that Frederik is a little bit of a fearless kind of guy, which I certainly appreciate. When we started working together, we tried to encourage him to take on one of our super challenging project, which he was a little bit hesitant of engaging. I managed to convince him. He and his team did a very good job. Now we can clearly see the results of those efforts. I have a very high degree of confidence that Slipgate and 3D Realms will do very well as a member of Saber family. We will be able to grow this team and help elevate them to graduate to the next level. Thank you so much, and I would like to say as well, I'm happy to see that one of the founders is also staying on board as advisor, Mike Nielsen, one of the most brilliant guys I know in the industry, and I know since the '90s, and the founder or the past CEO of 3D Realms. Thank you so much, and very welcome to the family. With that said, we would like to leave Denmark and move over to Sweden again. I have the honor to present the last acquisition of this morning, which is a bit different from the others, and it's Grimfrost. Grimfrost is the leading e-commerce merchandise specialist with high-quality Viking merchandise under their own brand. They built a very successful business since the foundation 2014, with three amazing entrepreneurs, actually located here in both Karlstad and very close by to Linköping, Skövde. The idea is to bring them on board, and obviously, I see a number of potential synergies within the group. First of all, the knowledge how to build a global merchandise e-commerce business under one brand, but also the Viking-themed merchandise are very well-suited against the Viking-themed games within the Embracer Group. Please stay tuned for further announcements in the future on that regards. We are acquiring 70% of the business, and the founders remain with 10% each, and have a very long-term commitment. By this investment, the company will be able to grow even faster and more, offering a wider range of products, and a better supply of products to consumers. They already grown substantially the past years, but we're looking forward to grow even further the coming decade. I know they are one of the most respected companies within the Viking merchandise products, and I know they've been supplying leading TV series and films across the world the past years. With that said, I know they are online listening here, so very welcome to the Embracer family. With that said about Grimfrost, I could just say a final words that I'm really pleased to see all these companies joining. It's been a lot of hard work during the summer for all of us in this call and I can't wait to see what the future will bring. I think all companies have a strategic rationale why they are joining, and it's all making us, the combine of us, stronger. As you've been hearing today, it's all about creativity and entrepreneurship, and that's what Embracer is all about. I really feel a strong connection with all of you guys and in that regards. With that said, I would like to leave over. Please stay online. It might be a few questions from Ben that I can't answer, and you might be able to answer them during the Q&A session. Benjamin from Berenberg? Yes. Thank you very much Lars, and to each of the management teams who presented today, and j ust as a reminder, you can submit your questions onto the message board, and I'll be able to pick up some of those. Perhaps jumping straight into a question from myself, Lars, and before we go into some of the nitty-gritty on some of the businesses you are acquiring or merging with today. We've seen a lot of news in the industry that acquisitions are becoming increasingly difficult to complete in the video gaming space, given it's very hot right now. Tencent, EA, Microsoft paying big sums for businesses. You've clearly not had that issue. You've managed to do eight acquisitions this morning in very different areas of the market too. Can you maybe just give us an update on practically how you've been able to achieve completing all of these deals in such a competitive market? Well, I think that question is somehow better answered obviously by the sellers and entrepreneurs. I think to answer it from my side, obviously Embracer is offering a different proposition, and it's all about the long-term alignment with creating something greater and bigger in the future. That's why you can see this long-term alignment and earn-outs over up to right years. I think, yes, it's a competitive environment. There is a lot of activity. At the same time, it's a lot of fantastic entrepreneurs and creators out there, and I think our operating model really is the strength here in terms of M&A, obviously having eight management teams all across Embracer, most of them working on M&A on a daily basis. It's not all about acquisitions and driving all these financials. It's all about connecting with people, and I think in most cases when you connect with people, you start doing business, publishing business, you are creating a relationship that might end up just in a relationship or in a publishing relationship or in an M&A. I'm super long-term, and I think we all are very long-term aligned here at Embracer. I have decades in my horizon building this. For me, it's important not to rush any M&A, and I know some shareholders are a bit impatient, and they're emailing me, "Why can't you make an announcement?" I'm please asking all shareholders to have some patience. It's important that we don't rush, and we're making things patiently, and that we are bringing the right companies on board with quality. With that said, as I stated this morning, Ben, that I stated that last report, but we have a lot of ongoing conversations all the time, I think more now than ever, and including large or even transformative conversation. Whether they will end up in acquisition or not remains to be seen. I'm confident about the future of Embracer, on the M&A side, but also obviously on the organic side for most. Okay, t hat's very helpful. One of the areas that clearly with the acquisition of CrazyLabs this morning that you ventured deeper into is the mobile space, and I have to say, looking at some of the KPIs from CrazyLabs, I was particularly impressed, which is interesting because there's been nervousness amongst the investor community in the mobile gaming space in the last few months as a result of IDFA and the challenges it could have potentially on customer acquisition. Growth at CrazyLabs doesn't seem to be affected at all seemingly by this. I'm just interested to hear how they've been able to achieve this when seemingly some of their peers have been struggling. Do we still have a team from Israel on board here? Sagi? I think, Ben, either Sagi is on board here and answering that questions for you, otherwise, we need to wait until our public reporting on August 18th. As you know, we are in a silent period, and I don't want to comment on things that are outside these acquisitions, and I think that question partly is a bit outside CrazyLabs, but j ust to say, I'm confident about the team, the CrazyLabs business, their growth, and their success. I'm highly impressed about what they are able to achieve. Yeah. Well, you know how analysts are, we're always trying to get as much information as possible. I know, Ben, I know. I know. It does seem like a great acquisition and one that's bucking the trend and doing very well. Onto the indie space. I think I'm right in thinking that Ghost Ship and Easy Trigger are Coffee Stain's first, or at least amongst their first acquisitions. I know Ghost Ship will operate separately. With 3D Realms also joining Saber, which will have a strategic focus on publishing of independent developer titles also, it seems like you're doing more in this space. Is that a strategic push? Was it sort of opportunistic as these good businesses came about, and you had started to have discussions with them? Talk to us a little bit about that. I think talking about Coffee Stain, obviously, it's been a great success and amazing team, and you're right, they haven't been doing a lot of acquisition. Obviously, Ghost Ship has been one of their key products under the publishing label over the past years and highly successful. I'm really pleased to see that team joining now as a sister company. There is some substantial ambitions in the future, you know, what we're able to create within that, let's call it operating group, with further successful in the companies. I think stay tuned on that part, what will happen in the future. Ghost Ship is a way in Coffee Stain, but they are in Denmark. They are very well connected to the Danish or the global industry, and well respected. I think it's a strategic value for us to actually being able to fully having Ghost Ship within the group. Not only financially, obviously, it helps. To be clear, financially, on Ghost Ship, it doesn't actually add any revenues because the revenues is already coming on a Deep Rock Galactic right now under the publishing, but it always helps the operational EBIT because we're getting the full margin. Obviously, in the future, they will be able to hopefully have more product lines and investments going in under the Ghost Ship. Anton, are you still online here? Perhaps you can just share a bit what you saw with Ghost Ship and Easy Trigger. Yeah, sure. I think, like as mentioned here, we haven't done a lot of acquisitions, which has been, I guess, natural of how we built Coffee Stain. It's always been about 100% focus on the products and just not focusing on just growing the company in any way, pretty much. Acquisitions has maybe not been a natural part of how we wanted to build Coffee Stain. I think when it comes to Ghost Ship, for example, it became very clear for us early that there were so many similarities. The first time I met Søren, I think I was super impressed with their thinking being, they were a new company at that time, they are super experienced. They've been in the gaming industry for a long time, I was so impressed by seeing all their thoughts on how they wanted to run Ghost Ship. I think it was very clear already from the beginning that they were very independent. When we joined as a publisher on the title, it was also, I guess, a special publishing relationship where they do a lot themselves. When we started discussing, you know, we wanted to get them into the group for quite some time, but it was not maybe super clear to them what the benefit would be. I think in the end, when we figured out this way where we would set up this structure where they will reside as a sister company to us and operate kind of independently, that opened up that door. I think it's a very interesting way forward. Yeah, super happy about that. When it comes to Easy Trigger, I think it's more of a natural acquisition for us. We've been working with them, I guess, a little bit even more closely as a publisher, and they are a small company in Sweden. It makes total sense for us to get them into the Coffee Stain Group. Yeah. Thank you, Anton. Maybe just one very quick follow-up on that. When you're having those conversations, Anton, and looking to publish a title within Coffee Stain, how important is it to see a pathway to potentially acquiring the developer going forward? Is that important to you, to be able to think that that's a possibility? It hasn't been that important, to be honest. I think that our strategy has already, from the beginning, been a little bit different, where we've always been very flexible with how we do our publishing and investments. In the Ghost Ship case, we had the 30% that we owned in Ghost Ship from the start. The idea with that at that point was maybe not necessarily to acquire them at some point, but we just wanted to align ourselves more tightly with them. Obviously, if you just go in with only publishing, it's a little bit more short-term than what we wanted. Having that minority share from the get-go made it more clear that it was a long-term commitment, but we didn't really know whether it would end up in an acquisition or not. Everything worked out, and then now we're here, and that's great, obviously. Okay, great. Well, one of the other areas that clearly you've bought into today, Lars, is the VR space. We know that Oculus is a big area of focus from Facebook's, they've been making big hiring into that business unit for them, and they're providing big incentives to developers who create content onto that platform. You completed the acquisition of Vertigo last year and now Force Field today. Is this a strategic push into VR? How do you see this market developing over the coming years? H ow much does VR excite you over the next few years? Well, obviously, as stated with the acquisition of Vertigo, VR really excites me. First of all, it's a commercially viable platform now for developers to build VR products. Vertigo proved they could be highly profitable as a business. I see further growth in that market. As Klemens stated, I think that market will grow with a higher pace than the rest of the more traditional gaming market. I think the plan with Vertigo from the beginning was to also expand their business by allocating further capital or resources to Vertigo so Vertigo becomes kind of an even stronger VR company. I'm really pleased to see these morning acquisitions and John, are you still on the call here? I am. Do you believe in the VR market, John? Yes, I do. Obviously. I think the big picture of what we're seeing, as I hinted at in the comments earlier, is a rapidly growing ecosystem and certainly something that Vertigo sees, and I believe, as Lars has said, Embracer and Koch Media do as well, that this is an area that's going to grow faster than the overall gaming market because what you're seeing is, one, the creation of a new medium and different creative expressions of what gaming can be, and Martin's talked about that a little bit from Force Field. Then also there's this amazing opportunity to bring classic and well-known IP from other g aming mediums into VR and allow people to experience these worlds in a way they've never had before. We think that also that dynamic creates a lot of opportunity for growth. I know it's said about VR, I know there is a number of other VR games under development across the group, and there is efforts being taken against VR. We have a long-term commitment against VR, and I know we are working closely with the platforms to support them with content in the coming years, so I'm super excited. Is Vertigo, in time if you make more acquisitions in that space, could it become its own operating segment, or will it still remain within Koch Media/Deep Silver? No, it's not a discussion. I think it will remain within Koch Media. I don't think it makes sense. I think Koch Media has a very strong ecosystem, and it makes sense to have the synergies with that ecosystem with Vertigo. What I'm hearing, the synergies and cooperation works out very well. With that said, personally, I love to see more acquisitions or capital allocation and bringing more fantastic creators and entrepreneurs on board Vertigo in the future. It's really up to John and Arthur and Martin and Richard and Kumar and the team to do that. It's their business and then they are driving it. Okay. Maybe last question from me before I take a couple from the web. There has been a lot of companies of late who have been delaying titles because of challenges with development. Clearly, a lot of the businesses you have today have got big plans for their pipelines over the next few years. When constructing your earn-out payments, some of which is financial, some of which I know is operational, how important is getting titles out on time for you when creating and structuring those agreements with regard to milestone payments? Yeah. Well, there is a few milestones. It depends on the agreements, that there is a definition of number of titles to be released over a number of years. Obviously, again, it's important for us not to construct these milestones that we push, or the companies are pushing releases too early. I think we have taken enough space here to be aligned on that. Quality comes first. That's important all across Embracer. Yep, it's something that's put you in good stead in many years in the past, so n ot changing that is probably the right thing to do. A couple of questions from the web here, one of which is on China. There's been a lot of news surrounding stricter rules around younger players in China in the past week. I know Embracer hasn't historically had a huge amount of exposure to the Chinese market. Of the acquisitions this morning, do you anticipate these new regulations being an issue for any of the businesses being acquired? No. Okay, t hat's very simple. We had an announcement from Team17 a few weeks ago when they acquired StoryToys, and albeit in a completely different market, one of the reasons why they bought that business was to expand their knowledge of sort of regulatory hurdles in selling to younger audiences. Is that something that Embracer is concerned about at all, like, across the broader business, or is it something that you feel is in check and it is more noise in the market than anything else? It's a delicate question you could spend hours answering. Obviously, we do have products for children. Not that much in China, I would say, but obviously for the Western market, even though our core, I would say, is still older audience. I'm confident about my management teams, how they develop and manage these products against these audiences. It's not a concern for me. Obviously, we've done a lot of due diligence, and so I'm sorry, Ben, I can't really give you any more color on that. No, that's absolutely fine. One of the other questions from the web is with regard to sort of first-person shooters, with Slipgate and 3D Realms acquisitions this morning. There's an expansion deeper into this market, and you already have a lot of presence in that area already. The question is how much shared learning do you get from bringing more experience and expertise into a specific genre into the group, given how sort of decentralized the model works? Well, I think just from my own point of view, you learn things new every day, and you can never get enough learning and context. The sharing of knowledge across Embracer and each operating unit just becomes greater every quarter and/or every year. I'm confident that there is a lot of synergies in that regard, and let alone the commercial reasons that IPs is king and having more IPs available and resources to develop them. Again, remember, the bottleneck for growth is the talent. That is always to find the talents and the creators, the developers, and the business people to bring more products to the market. That's the bottleneck, and that's why we are making all these mergers or acquisitions this morning. Okay. Well, that's very helpful, and I think we've run through most of my questions and those on the web as well. Perhaps the last question I'll ask you is, over the next, or maybe perhaps longer-term, a few years, clearly Embracer's got significant opportunities, very well respected for being a group that sort of harnesses the opportunities of the businesses that join you. What is it that you're most excited about from an acquisition perspective over both with these acquisitions and over the coming years? That would be my last question, then I'll let you wrap up, Lars. No, I'm excited about just seeing all my colleagues and the teams really buy into the model and continue to grow the model. We continue to find and hire more talents, but we also continue bringing more fantastic creators and entrepreneurs onto this platform. I think the greater and the bigger we get in a way, the greater we become. I think the ecosystems we are building, it's unique in many ways, and I think it will leverage a lot of businesses that we get on board. I think it just makes complete sense for people to join, because they could see the benefit of becoming part of a group. Obviously capital we could bring them, but also all the synergies, IPs, distribution, marketing, technologies. We have seen nothing yet of this coming out, or we have seen a bit, but over the coming decade or decades, I think you will see some amazing things coming out from this ecosystem. I think that's why it makes sense, and that's why that excites me, that the greater and bigger it becomes, the more rationale there is for people to join. Remember, it's not all about owning everything everywhere. It just makes sense, and we are an independent platform. We have no ambition to build our own exclusive end consumer platform, for example. We are complementing the industry. We work with our industry partners. We work with the leading platforms, and we would like to continue doing that. They are business partners and friends to us. We are just 1%, roughly, of the global gaming market. I could see plenty of growth the coming years and decades come. Great. Well, thank you so much for having me, Lars. Thank you to all of the management team who presented and a ppreciate that some of my questions were a little bit tricky to answer this morning. I appreciate you taking the time. No problem. Thank you, everyone, and remember, we have our quarterly report coming up August 18, and I'm sure there will be a lot of more questions then from everyone. Thank you.