Hello and very welcome to Karlstad and Embracer Group's Fiscal Q3 Presentation. We have a lot to talk about today, including strong back-catalog sales in Q3, a packed game pipeline for the next fiscal year, and also, I have a special interest in talking about the incredible indie success title, Valheim. I will come back for a Q&A presentation later. We will also talk to some Austrian and Italian guests, I believe. First off, I will leave over to Embracer Group CEO and founder, Lars Wingefors, and CFO Johan Ekström, p lease go ahead, guys. Thank you, Oscar, hello, everyone, and very welcome to Värmland and this third quarter report. I'm really glad to report another stable quarter. If you just help me to turn the slide once again here. Thank you, Johan. We were glad to report on sales that increased 44% year-over-year, close to SEK 2.2 billion. We had a performance in the Games Business Segment of net sales of over SEK 1.3 billion, which is a 62% year-over-year increase, and a 21% organic growth in constant currency and a 33% growth on pro forma basis. The Partner Publishing Segment had a 21% year-over-year increase in sales to SEK 813 million, and the profitability came in at just about SEK 600 million, which is 100% increase year-over-year. The free cash flow continues to improve. In the quarter it was SEK 309 million, which is more than half a billion better cash flow than the same quarter last year, despite we had record investments into new games to be released in the future as well in the quarter. The drivers in the quarter was our extensive wide catalog of products, the back-catalog sales, including titles such as Satisfactory, the SpongeBob, Wreckfest, SnowRunner, World War Z, the Saints Row series, the Deep Rock Galactic, and the Metro series. The new release segment had a lower activity in the third quarter. However, I would like to point out two titles from our friends, family members at Milestone, Ride 4 and MXGP. Looking at the KPIs, we had a record of products in pipeline as end of the quarter. We had 150 games under games development projects in the balance sheet. We engaged 113 studios, including 57 internal studios and 4,300 games developers. Again, we invested a record SEK 523 million into the games portfolio that will generate organic growth in the future. Worth pointing out is that's three times the amount we completed games for or released games for in the quarter. Looking into the quarter ending now in March, we're expecting also a lower commercial activity in new releases in value, we're giving a range this morning of completing games of SEK 120 million-SEK 140 million, meaning the full year will be completed games for SEK 840 million-SEK 860 million. Looking into the next financial year, we are expecting a record year driven by many factors, but one factor being the amount of new releases. We're expecting more than 70 premium games development projects to be completed, the value of those are expected to be between SEK 2.5 billion-SEK 3 billion. This is not including the acquisitions we announced on the 3rd of February with Gearbox, Easybrain, and Aspyr. In the quarter and just two weeks ago, we released a indie hit called Valheim. I will come back to that under the Coffee Stain slide. Also in the quarter, we completed the transactions with Coffee Stain Studios, and we are expecting to complete the transactions and acquisitions of A Thinking Ape and IUGO for Vancouver. That was part of the 13 acquisitions we announced in the third quarter. In the current quarter ending in March, we just recently announced the three acquisitions of Gearbox, Easybrain, and Aspyr. Looking at the M&A outlook, it's a very vivid market and we are very active, and I will come back to that on a separate slide. We also announced this morning, and it's worth pointing out the details later. The board have decided that we are to make an IFRS conversion and that we will start the process of becoming listed on a regulated market within 18-36 months. With that said, I will hand over to you, Johan. Thank you very much, Lars. Let's start by looking at our P&L for the third quarter. As said, net sales in the period reached almost SEK 2.2 billion, which is up 44% over the corresponding period last year. We have a healthy improvement or growth in our EBITDA, growing with 70% to SEK 879 million in the quarter. Operational EBIT doubled compared to last year, reaching SEK 603 million in the quarter, yielding an operational EBIT margin of 28% in the quarter, compared to 20% in the same period last year. The improvement in profitability is driven by the healthy growth in our top line, and also by the favored product mix shift since we see a higher growth rate in business area games with 62% compared to partner publishing film. The adjusted EPS for the quarter is SEK 1.06, up 56% compared to last year. If you look at our trailing 12 months financial data, we are close to SEK 8 billion in net sales and operational EBIT at SEK 2,254 million which is a operational EBIT margin of 28%. If you look at our amortizations in the quarter, we split them into operational amortizations and acquisition-related amortizations. The operational amortizations amounted to SEK 276 million in the quarter. The majority of these are related to amortizations of released games. Also, SEK 65 million related to amortizations of film within our film segment. The acquisition-related amortization amounted to SEK 664 million in the quarter, the majority of these are related to amortizations of goodwill which was SEK 536 million. We also have amortizations of IP rights of SEK 118 million. All in all, operational EBIT SEK 603 million and reported EBIT SEK -61 million in the quarter. If you look at our cash flow statement, as Lars mentioned in the beginning, we continue to have a healthy cash flow. Free cash flow was SEK 309 million in the quarter. It's the fourth consecutive quarter with positive free cash flow. On a trailing 12 months basis, our free cash flow amounted to SEK 1.1 billion. In the quarter, the cash flow was driven by improved profitability, increased EBITDA, coupled with very limited investments or change in working capital. We have a SEK 2.3 billion net outflow of cash, which is related to the acquisitions or acquisitive side of the business. Cash flow from financing SEK 5.4 billion in the quarter, mainly related to the share issue that was concluded in the beginning of October. We continue to invest into intangible assets, mainly our games portfolio. It's also worth noting that the free cash flow has increased well while we also invest more than ever into our intangible assets and mainly our games portfolio. If we look more into the investments in intangible assets during the quarter, out of the SEK 558 million that we invested, SEK 523 million is related to investment into our games portfolio, and SEK 35 million is related to investments into the film segment. Out of the SEK 523 million, SEK 370 million is investments made with internal studios and SEK 153 million with external studios. Looking at the development of investments into our games portfolio, we see that we continue to increase, reaching a new all-time high at SEK 523 million, which is up 40% over the same period last year. During the quarter, we completed games developments projects to a value of SEK 156 million. This can also be seen when we look at the continued growth of our pipeline and development capacity. Development studios, 113 at the end of the quarter, of which 56 is internal. The number of developers engaged in game development is a bit higher than 4,300 people at the end of the quarter. Also, a record high number of pipeline projects, 150 at the end of the quarter, of which 61 is announced. If we look at the upcoming releases and expectations, we can conclude that we have a release date for Biomutant communicated to 25th of May. The expectations on completed games in this Q4 or the last quarter of the fiscal year is between SEK 120 million and SEK 140 million. Looking at it from a yearly basis, that would mean that for the fiscal year 2021, we would reach SEK 840 million-SEK 860 million. Our quality comes first approach is fundamental. We believe that this is the way to create great games that perform well and over a longer time period. It is also the way where we add to our strong back catalog of games. During this fiscal year, we have postponed about or over 10 games due to applying this quality comes first approach. For next year, next fiscal year, we expect to have the strongest release activity ever with more than 70 premium games being released and total expected value of releases from a development cost perspective is between SEK 2.5 billion and SEK 3 billion. Looking over the course of next year, it will be skewed towards the end of the fiscal year. Worth pointing out, it's 70 premium games development projects, meaning could be porting and other projects. The 10 delayed games that was during the whole financial year, and I would say the quality comes first approach was the most common reason for the delay. Looking at the balance sheet at the end of December, total assets amounts to SEK 24 billion which is 20% more than what it was in the end of September. A large part of our assets in the balance sheet are intangible assets. If you look at the breakdown of these, it can be split between operational intangible assets and acquisition-related intangible assets. The operational intangible assets is about 24% of the total intangible assets, where the largest single item is the investments that has been made into our ongoing games development portfolio. The second largest is the book value of completed games and released games. The acquisition-related intangible assets amounts to SEK 11 billion. Goodwill is the largest component of this, which is about SEK 9.6 billion. We have a healthy financial position at the end of December, where the available funds was SEK 12.5 billion, where available funds is defined as cash and bank balance and unutilized available credit facilities. If we look ahead and include the cash consideration part of acquisitions announced post or expected to be closed after 31st of December, the available funds would equal SEK 10 billion. The net cash position at the end of the current year was SEK 4.9 billion. Moving on to the Games business area. Thank you, Johan. Thank you. Starting with the net sales breakdown of the Games business area. Looking at the trailing 12 months number, we are at close to SEK 5.4 billion, which is at all-time high, compared to the same number last year of SEK 3.3 billion. Looking at the new releases and the share of new releases and back catalog, as mentioned, we had a lower activity of new releases in this quarter ending December, and the share of new release was only 20%. The rest was back catalog sales. Looking at the digital versus physical, we have a stable, very high number of 79% of the revenues coming in from digital channels in the quarter. Looking at the owned titles based on owned IPs and long-term licenses, the share was 69% for the quarter. The release activity and organic growth. Looking at the trailing 12 months basis of value of completed games, we are at SEK 885 million. As mentioned, the value of completed games in the quarter was SEK 156 million. Looking at the organic growth here, looking at this slide, we can see the year-to-date organic growth on a constant currency basis being 54%. In that quarter, it was 22%. Again, on the pro forma organic growth number was 33% in the quarter. That's the estimated number. Obviously, because of all the acquisition, it's the estimated number on accounting and books. That's why we're not providing this as a ongoing KPI and using the organic growth only on a constant currency basis. The business segments and the business groups, looking at THQ Nordic, they had a quarter with a lower release activity. They had a quite wide range, a number of releases, but none of the releases had a notable commercial impact in the quarter. Total revenues was SEK 380 million. Key drivers in the quarter was continued performance on Destroy All Humans!, SpongeBob, and Wreckfest, amongst many other titles. In the quarter, they acquired the Purple Lamp Studios, the developers behind SpongeBob SquarePants: Battle for Bikini Bottom Rehydrated. During the quarter, they have signed several significant commercial deals. On the back of the success of previous license releases, new licensing deals will be pursued. Looking at the selected pipeline, obviously, again, this is a topic coming back every quarter. Biomutant will be released on May 25 or 25th of May next first quarter. In the current quarter, we are expecting to have a lower release activity, and the releases that are lined up are "Kingdoms of Amalur: Re-Reckoning" on Switch and "Monster Jam Steel Titans 2" on PC and console. Looking at business area Deep Silver, they had a quarterly revenue of SEK 497 million, which is a 6% growth year-over-year. On trailing 12 months basis, they are just about SEK 2.1 billion, which is an all-time high. But in general, they didn't really have any significant commercial impacting releases in the quarter. As usual, they had a number of good releases anyhow that contributed well. As mentioned, they had "MXGP 2020" from Milestone, "Ride 4" from Milestone, and "Maneater" from Tripwire, our friends at Tripwire on the next-gen consoles. The back-catalog drivers once again in the quarter was Metro Exodus, the Saints Row series, amongst many others. In the quarter, they completed the acquisition of Flying Wild Hog, one of the leading Polish developers and our first establishment of a developer in Poland. They are the makers behind many games, the one mentioned here is Shadow Warrior series, published by Devolver. They are 260 people across three studios in Poland. Looking at the acquisitions they made in the previous quarter in September, they acquired Vertigo Games, the leading VR developer in Holland. The gross revenues of that business was up 40% year-over-year without any new release. Obviously driven by a successful release of the Facebook Oculus Quest 2, the VR headset, according to SuperData, selling more than one million units. The milestones performance was, as usual, in line with the management expectations. Looking ahead, they having a very wide pipeline of products. On this slide, you can see a few of these products that are pointed out here, and I'm sure Oscar will come back to that in the Q&A session. Now looking at the business segment, Coffee Stain in Skövde. In the quarter, they had SEK 99 million of revenues, which is a year-over-year growth of 175%, driven by a continued good performance of both "Satisfactory" and "Deep Rock Galactic." They did not have any new release in the third quarter, neither did they have any major content updates. On a trailing 12 months basis, they are having revenues of SEK 484 million, which is an all-time high level. In the quarter, they acquired the remaining 40% of the shares in Coffee Stain North. That studio have been working on a unannounced title since 2017. 16 days ago, or a bit over two weeks ago, they released a publishing title, "Valheim", that I'm sure I will have a lot of question on during the Q&A session. I'm super glad and excited to see that the Iron Gate team in Skövde, being just a handful of people, are able to achieve such a success. I personally have been enjoying watching this on Twitch for a number of hours, and it's just amazing how we can create such a game. The commercial performance has been solid, as been communicated by Coffee Stain, and this morning we are communicating it has sold, as of this morning, close to 3 million copies. The commercial relationship with Iron Gate are in line with what Coffee Stain normally has with external development teams. Having a publishing agreement where the developer gets a healthy majority of the revenues and having a minority ownership in the studio, creating over time a potential net contribution that will contribute to the operational EBIT as well. That could potentially be over longer time, and that's net from taxes, obviously. Coffee Stain have many other titles than Valheim, even though I'm sure it's a lot of focus right now for them. They're having an amazing pipeline for the coming year and years that I'm truly excited about. Here pointing out two titles, Midnight Ghost Hunt and Songs of Conquest, but they have many others. I will let them communicate when they are ready. Moving over to Saber Interactive. They had a continued stable performance in line with our expectations of SEK 307 million in the quarter. They didn't really have any new releases, the revenues was driven by a number of factors. One factor is obviously continued performance of SnowRunner and the World War Z games, as well as a continued business with the external business partner under the work for hire. During the quarter, they acquired six companies. Zen Studios, the leading pinball games developer in Hungary. That deal closed just a few days ago. Snapshot Games, the developer behind Phoenix Point, also title worth pointing out that contributed a bit in the end of the quarter, with 65 employees both in USA and Bulgaria. Nimble Giant, the leading LatAm PC console games developer in Argentina with 75 employees. Mad Head Games in Serbia with 130 employees. 34BigThings in Italy with 28 employees, one of the leading indie developers in Italy, Sandbox, the PR and influencer relationships agency based in New York with 13 employees. On the third of February, they announced the acquisition of Aspyr that we're expecting to close in the coming month, which is one of the leading indie developers and publishers with a 24 years track record of profitable business with 140 people in Texas. Saber are building an amazing pipeline of products and driven by obviously their organic teams at Saber, but as well as with all the acquisitions they are doing and all the organic hiring they're doing with people. Worth pointing out here, they announced the title "Evil Dead" that has been well-received. Moving to DECA Games, the mobile games business. They had the first full quarter generating revenues of SEK 73 million in the quarter. The driving titles was "DragonVale," "Almost a Hero," "Gods of Glory," and a continued performance especially of "Realm of the Mad God." In the quarter, they announced two acquisitions that we are expecting to close in this quarter. It's not closed yet. We're expecting to close this quarter ending March of two leading companies in Vancouver in mobile games, one called A Thinking Ape, and the next one being IUGO. Those companies will form the DECA Games group. Moving to Amplifier Game Invest. I'm super thrilled. I spoke to the CEO of Tarsier the other day here and congratulated him to the critical success of Little Nightmares II. It's an IP they created, but it's owned by Bandai Namco and published by Bandai Namco, so it doesn't really have any significant commercial impact for us, even though if it does really well, it could have some royalty revenues over time. I'm super excited about them achieving such game again because the first game was very well-received, and this game looks as well-received. Now, having that game completed, they will move over to create new IPs, and I'm super excited, and that was the main reason we made this acquisition a bit over a year ago. Also in the quarter, we released the self-published the game "Fishing: North Atlantic" that had a bit of issues in the start, but I know the team are working on it, and we are looking forward to what that IP and other IPs could bring for that studio. We are still committed to the team, and we really believe in that business. Also, we acquired or welcomed the Silent Games Studio in Newcastle that has very high ambitions to become 30 people over time. Finally, we welcomed Plucky Bytes actually here in Karlstad, run by three industry veterans. Moving to the partner publishing and film business area, which had a stable performance, a bit over management expectations of SEK 813 million in the quarter. That is a 21% year-over-year increase. On a trailing 12 months basis, they are just about SEK 2.5 billion of revenues. Drivers were Dirt 5, Yakuza 7, the Mortal Kombat 11 Ultimate, and a general COVID-19 recovery effect at retail. The Films Business Segment in that business area had a really good quarter, exceeding the management expectations. They had a successful theoretical release of Parasite, and they also signed exclusive distribution contracts with Paramount for Italy territory. The digital sales are within films booming for them, and they are really having much more difficulties with the physical film distribution. Worth pointing out is the video subscription channels aniverse for the anime segment on Amazon Prime has continued to perform well for them. In the partner publishing business area is two businesses that is not under Koch Media, but reported in this business area, and that is Game Outlet, the original business I was part of founding here in Karlstad, that had another stable quarter with a strong back catalog sales, with a very deep catalog of physical games, mainly distributed to e-tailers and Amazon and many others. The acquisition and then inclusion of the QA business of Quantic Lab in Romania of more than 350 people, and they will have the first full quarter in the current quarter ending March. Looking ahead, we see this quarter ending March that there is no notable release with a significant commercial impact for the partner publishing business area expected. This will be a quarter with a lower commercial activity in that business area. However, they, as usual, have hundreds of different games and SKUs they're selling, pointed out in this presentation here, they have a few games, and the distribution varies in various countries. For example, they have Hitman, they have Persona 5 Strikers, and a few others. Okay, t alking a bit of M&A. I would like to recap a bit of the KPIs on the mergers and acquisitions. Going back to where we started our journey with acquisitions 2017, that year we acquired companies for SEK 92 million. 2018 for SEK 2 billion, roughly. 2019 for SEK 2 billion, roughly. Now talking total maximum consideration. Last calendar year, we acquired companies for a bit over SEK 13 billion. This year, we have started announcing acquisitions or mergers of close to SEK 22 billion. Looking at the number of transactions, that has obviously also increased over time. Just looking at adding new, here as mentioned, verticals, we call it operating groups. We started 2018 adding two groups, the Koch Media, Coffee Stain. One more group 2018. Last year, we added two groups, Saber and Deca. This year we started off adding or plan to add when the deals are closing for Gearbox and Easybrain. The rest of the acquisitions are acquisitions or mergers driven by the operating models. It's worth pointing out one of the strengths of Embracer is our very decentralized operating model. That is also driving a lot of M&A. Again, we announced the two landmark mergers forming two new verticals after the quarter end of Gearbox Software and Easybrain. Looking at the outlook. Again, starting with the capabilities. Our M&A capabilities are stronger than ever with now zone eight operating units across the globe scouting and researching for suitable entrepreneurs and creators and companies to join the family. Consequently, we are in more dialogues than ever, and our ambition is to continue to grow our M&A activity going forward. That is driven by that we are increasing the number of operating groups. The mindset and philosophy of Embracer, I'm a firm believer of, obviously, and when we are out and speaking to the entrepreneurs and companies and creators, it's very attractive, and I'm super humbled by hearing the stories and why people would like to become part of Embracer. Obviously, we are not alone in the market. We define it here as a vivid M&A market. You can say a very active market. There is the SPACs, there is the IPOs, there is the private equity, venture capitalists. There is other companies on the public markets trying or doing similar acquisitions. However, I still believe we are able to continue our strategy, being disciplined under the same principles going forward. I would like to point out that we are a truly independent company and platform with only approximately 1% of the global gaming market. The main competitors we are facing out there in the dialogues on a daily basis are companies that are significantly larger than us, sometimes up to 100 times or more larger than Embracer Group's in terms of market cap. I'm humbled to hear that many of the entrepreneurs and creators would like to join Embracer rather than those companies. Johan? Yes, t hank you. Okay, s uper excited to inform that the board of directors decided yesterday to convert to IFRS, and also start the process to become listed on a regulated market. When we look at this, the work will be done or executed through a project. We will have three work streams in this project. One is for financial reporting and principles. The second one is for internal control processes, and the third relates to corporate governance structure. We have the clear ambition to achieve industry-leading efficiency and transparency for each of these work streams. If you look at the overall timeline for this whole process, it's estimated, as said in the beginning, to be between 18 and 36 months. When you look at it, the timing is, of course, dependent on the pace of training, recruiting, onboarding key employees, and also the need for business support and financial integration of future mergers and acquisitions. Also, the corporate governance work stream delivered its first milestone already today with the implementation of an audit committee and a remuneration committee that become effective immediately. Johan, sorry for stepping in here, this has been a discussion we had for a number of years. Obviously, I've been hearing the demands from especially institutional shareholders why this is important, why are we doing this main listing. From the beginning, it was many reasons. Now there is a bit less reasons, still very important reasons that the capital market are changing and the inclusion in indexes are very important for the capital resources to the group. There is also other reasons for the institutional shareholders why we should do the main listing. Obviously, there is many positive things here in terms of transparency, the quality in processes, the controlling's, the good thing of the governance and corporate control. For me, it's important also that we're not becoming this corporate machine without the soul destroying our businesses. I will keep a strict eye on that we are finding this balance. Doing this process, becoming mainly as a company, and can keep our business a strategy. Also worth pointing out is we will continue our strategy doing M&A meanwhile we're doing this process, which will put further pressure, obviously, on the teams doing this. Not saying that alone, it's also worth pointing out that this is, I think, over time important, and when doing this, I think we have very high ambitions. We've been talking a lot about how to become a benchmark in terms of reporting within our segment. We have a very interesting 18 -36 months ahead of us. Please continue, Johan. As we all know, we have a very efficient M&A process within the Embracer Group. The M&A activity is extensive and continues to be that. That puts requirements on our ability to integrate or onboard new companies into the Embracer Group. We just wanted to share with you the onboarding process. If you look at it, we have a one-year onboarding process within Embracer. We split it into four phases, where there are different priorities in each of the phases. We're not trying to do everything at once. We prioritize. Phase I, prioritization on finance, phase II, compliance, phase III, introduction of the smarter business framework, and then last but not least, reconciliation of the previous phases to make sure that we have done what we set out to do in the beginning. We will not go through this in detail, but if you look at the high-level onboarding timeline and the key actions that is being performed in each of the phases we see or we can show that we have four work streams that we are doing the onboarding process through. The work streams are centered around the themes where we do the onboarding, which is mainly finance and regulatory and compliance. On top of that, it is important to have robust supporting activities throughout the onboarding process, and also to handle communication throughout the process. Between each phase, we have review meetings to make sure that we are on track before moving on to the next phase. In this onboarding process, we try to front-load as much as possible to be prepared and do as much of the work possible pre-closing when it comes to preparing ourselves and understanding the capabilities of the companies to be a part of this onboarding process. I think also examples of the key activities in phase I, of course, it's about aligning accounting principles to K3, conducting the preliminary purchase price analysis, while also following up on any due diligence findings, making sure that they are closed throughout the process. The second phase is much more centered around compliance, where we implement the global policies of Embracer. Then the third phase, there we have the introduction of the smarter business and our sustainability framework. This is super important for us. We need to do this while maintaining the decentralization and that the standalone entities maintain responsibility, authority and remaining independent. That's a critical part of our business strategy, and we need to be aware of that throughout the onboarding process. Of course, also it's critical that this is being paired with what it means to be part of a listed company. Yeah. A favorite slide you're on, isn't it? Yes. It's a favorite. It was first shown at the AGM in September. There we looked at releases until 30th of June 2020. We have rolled it forward to 31st of December 2020 in this slide. What we see are a scatter shot of project ROI. The sample includes projects which are sales above SEK 40 million or investments above SEK 40 million. In the sample, it's 30 projects. ROI is calculated as contribution in relation to the investment, where the contribution is the gross profit less marketing expenses from release date up until 31st of December 2020. It's basically cash contribution, i t's nothing to do with amortization. No, w e also refer to this as cash flow project ROI. It's on an accumulated basis from the release date. The investment is to capitalize the development expenses for completing the project, and also any follow-on investment that might be. Looking at the outcome, of course, if you are at 1.0, the low line here, that's when we break even. If you look at the average of these 30 projects, we are at 2.9x the invested amount, which is slightly above what we had in the same picture when we looked at the data until the 30th of June 2020. It's very interesting. Yeah, w e have a forecast relating to non-operational amortizations or acquisition-related amortizations. This forecast includes all signed deals as per today. The forecast is based on the purchase price allocations as per today. These contain both preliminary and finalized purchase price allocations. Acquisition values are converted to SEK using the exchange rates per end of December 2020. The consideration shares are valued at the value up as set forth in each SPA. Looking at the forecast, the Q4 forecast is based on the average exchange rate during the quarter Q3. Looking ahead, we are using the exchange rate as per end of December 2020. Also this forecast assumes closing dates of transactions that are still to be closed, where Gearbox, Easybrain, and Aspyr is assumed to be closed on first of April. IUGO, ATA, and Zen assumed to be closed mid Q4. Looking at this, non-operation amortization is estimated to SEK 750 million in Q4 this fiscal year, then SEK 6.4 billion in the next fiscal year. Worth pointing out here is that assumed closing dates of Gearbox, Easybrain, Aspyr is not any confirmed expected closing dates. It could be much later in that quarter. This is just for the technical purposes of this forecast. Yeah, w e look at our initiatives within ESG. We are super excited about the sustainability report that will be included in the annual report for this fiscal year. We are putting a lot of attention and resources into the work of completing this. Also during the Q3 quarter, we rolled out and implemented a trade compliance policy throughout the group. I think that went very well, that rollout process. Training is of course very important for the development of all the people within Embracer. During the fall, we have had global trainings centered around our compliance code. By the end of the year, about 50% had completed the training, and we will continue to push for this as it's a very important matter, and we really would like all the employees of Embracer to understand and take part of our compliance code. We continue to develop and work relentlessly with our ambassador program. As new companies join Embracer, also the participation and the members of the ambassador group is extended. Last quarter, focus has been on initiatives through the four pillars of our smarter business framework, and such things as recruitment, data protection, and inclusion, important areas that was discussed. Thank you, Johan. I have a final two slides here that for me are very important, and it's a bit of culture. Being in the games industry since I was 16 and growing up with the NES and the SNES and all other formats, going way back, game collecting and retro gaming and the heritage and history of our industry, I think is very important for me, but I know it's very important for many of my colleagues, for the businesses, and for the industry. I've been game collecting a bit myself the past years, as well as collecting many other things, but game collecting has been very interesting. I decided, why do I collect this myself? Why don't I give this rather to the company? I decided to give my base collection to the company, of quite a lot of Nintendo games. We have at Embracer level decided to put this as a project at the Embracer Group level to create the archive of all video games. We have acquired a few significant collections across Europe the past month or year, and we approximately have about 50,000 pieces of games and consoles and peripherals and arcades. Quite a lot that are extremely rare and almost unique. This collection or archive is by no means complete, and this will take decades, if ever, to get complete. It will be a true joy for myself and many of my colleagues, and the ambition is perhaps to have part of this present at the headquarter here in Värmland or at some other location here. Of course, to use it with our subsidiaries, to have perhaps specific exhibitions about their creative history or certain IPs, or to have exhibitions that could potentially travel the world or to do something online. This is obviously a black hole of time, so even though I love it, I tend to not spend too much time on this. We have a few people working on this, and Thomas Sunhede, you can see mentioned here, are heading up the project. If you have any amazing collections or are interested to know more, please feel free to reach out to Thomas. I promise to give you updates over the coming decades how this proceeds. With that said, thank you, Johan. We are moving to the next part here. Thank you. I'm to share you a slide here where you can see a bit of the overall Embracer, we will end this session that I will welcome one of our entrepreneurs with us. Before doing that, I would like to point out the Embracer Group, what we are and how we operate. Starting by saying founded by entrepreneurs, run by entrepreneurs. Here on this slide, you can see the Embracer Group in the middle where we are creating this inorganic growth, then having our operating groups with these fantastic entrepreneurs and creators that are creating all the organic growth, as well as further acquisitions. I'm a true believer of letting great people making their own decisions. The decentralized philosophy, empowering individuals, creativity, and speed is critical to our success. We are offering the benefits of a large structure for most access to capital. The knowledge sharing and all our soft synergies across the group, but quite strict synergies on daily basis more within the groups. We believe this is the most attractive model for long-term creatives and entrepreneurs will help bring more publishers and studios on board this group. This ecosystem we are creating, I think, becomes stronger the more people we bring on board. Investors often ask, "What's the strategy?" Often, they mean, what the strategy of what games do you do, or what business model do you do within the games? You need to realize that each operating group has their own DNA, their own culture, and strategy, how they operate their business, you know, whether it's free to play premium, what kind of games, how to do the publishing, how do you the games development? Now it's most quite exactly three years ago, we added our second operating groups to the company, Koch Media, in a transformative acquisition. I would like to celebrate that three years of Koch Media within the group by welcoming Klemens Kundratitz online here. Welcome, Klemens. Hello, Lars, h ello, everybody. Hello, w elcome on stage. I can see Luisa as well, w elcome, Luisa. Hi, Lars, h i, everybody. Klemens, I introduced you, and I will leave over for you to tell the audience here about Koch Media and how it has been over the past three years to be part of Embracer. A lot of things have happened. We have evolved from a mostly European sales organization, with three studios, to a truly global games developer, with 10 internal studios now, growing our network of publishing companies to reach the globe. On top of that, we have developed our film company and created a game merchandising company. It's been a very interesting journey for the first three years. I would first like to spend a minute or two about how we arrived at the decision to join you, Lars. To join your machine, as you call it. It's not really a machine, I can tell you that, but it is certainly a member of a group of entrepreneurs that steer this company forward. When we joined the group, we were at a junction of our group development. We saw that for 24 years, we have built this company forward, but there was a next level that we wanted to achieve. By joining the Embracer Group, we thought this would be the right solution for us to unlock our potential and to grow further. We really liked the principle of entrepreneurship, the global vision that Embracer brought along, and the very unique corporate structure. Also, the fact that you work very much on trust and for the family feel rather than a corporate structure it appeals to us a lot. Again, you came at the right time. It was the right decision for us at the time. I can tell you, I have not, and nobody here at Koch has regretted it. How did the M&A phase work? It was marked by a very personal approach. It was Lars, yourself, and Erik Stenberg, your second in command. You came along and we got to know each other. I think you always said, "I really want you to continue running your company. I want to help you run the company, but not interfere." That promise, I must say, is 100% kept here. What you promised before the transaction happened after the transaction. That long-term attitude that you have and the Embracer Group has, not one year, not five years, it's 20 years, is something that takes us forward. The M&A project was swift. We didn't spend months and months. We were accompanied by very professional advisors, which is very important on both sides to keep this on track. It was not disruptive to our organization, which was really important for us as well. The journey began, as I said, a journey marked by a lot of organic growth as well as acquisitions. You can see here on this chart the kind of milestones in our development, and how we evolved from a European company headquartered in Munich to a truly global company. We can also see that growth when we look at our talents in the company. When we joined the group, we were 770 people in total, and had 10 publishing units, a film company, and three studios. When we see our development or our organic development in the three years, organically, we grew by 39% in those three years. When we look at our inorganic, our acquisition-based growth, you can see that we grew up to 1,900 employees. As you also see, by far, the majority of our talents are in game creation and development. Also the other units increased. We are now 14 territorial publishing offices, and we have four film and game merchandise companies in the group. This is our global setup, and it is fair to say we are founded in Europe, and this is where our core markets are. We are now very much present also in the Asian markets and in Australia. We have our two American companies in publishing and in development. Our talents are, in terms of nationality, very well distributed around the globe. Looking at our company, what is Koch? We appreciate that Koch is, for some people, hard to understand because we are quite a diversified company, therefore, let me explain to you the three main business areas here. Development and publishing, partner business, and film business, and game merchandise. All three of them are very strategic for us. When we look at the global development and publisher business, it's first and foremost the IPs that we are proud about and the long-term licenses that our catalog is built upon. What started historically as a single label company with teams in various locations has become a solid group tree with multiple branches of publishing units and owned products. Creating games and nurturing and monetizing IPs is of central importance for us, and we will certainly continue our journey and build that catalog forward. Our internal studios, as I mentioned, we have 10 studios. Flying Wild Hog is the latest entry in our studio portfolio, with three studios in Poland are at the heart of the company. We are very proud of their expert knowledge, and each studio has their own special sauce. They have their own expertise, and Volition is obviously our studio of open world games. Dambuster stands for first-person shooters. Warhorse Studios is our action RPG studio, and so on. We have studios in many genres and disciplines, and we are very proud about what they are achieving. One of the studios that we already mentioned in this presentation is Milestone. Milestone is in Milano, is our racing expert, and I brought to you the CEO of Milestone, Luisa Bixio, to talk about her journey into Koch Media and the Embracer Group, Luisa? Thank you very much, Klemens, and hello, everybody, and I'm very glad to share my experience in Embracer. Milestone. Milestone is a developer and publishing company. We are based in the very center of Milan, and we are close to 250 people, and w e do racing since '90s, so 25, 27 years. In August 2019, we entered in Embracer Group under Koch. Klemens, if you want go on the other chart. If you look at this more or less 18 months, I would like to say that I'm really very glad to be in Embracer, and I'm very glad of how we work in this period, and the result we reach in this period. About how we worked as Milestone in Koch and in Embracer, I think I would like to point out some pillars or some summaries. As a first, at beginning, we defined with Lars, with Klemens, the strategy and the goal at medium long term for Milestone. After this, I started again to manage a company, as I used to do before join the group, with a complete relation of trust and autonomy. On the same time, we have been able to implement a very good visibility relation at all the level, IT level, and even very good communication flow. Koch and Embracer are completely updated of what's happening in Milestone. We have very frequent call with Klemens, sometimes with Lars, but I manage the company, again, with the possibility to very fast decision and reaction and what is needed. The other point that I think is very important, we've been able in this 18 month to implement many synergies, mainly with Koch. We implemented synergies at distribution level. All our title are in all the world through Koch distributors. At relation with the platform holder, digital strategies and opportunity, market view, operation, so at many different level, including development, and I think that has been very important for Milestone. The last point on how we are working, I would like to emphasize the concept of family that was touching Lars and perhaps even Klemens. Being in Embracer, there is a very informal relation. All the doors are always open. There is independency, respect, and on the same time, it's very simple to implement synergies or to have communication, and that's very motivating. What we did in this period. In this 18 month, Milestone continued the growth at many levels. As a first, we go up in terms of revenue and even more profitability. We grow in terms of numbers of people because we are doing more project and bigger project and talent is very important for us. Even for the strength of Embracer Group, we have been able to sign or renew very important licensing deal that are basic for the future of Milestone. Just two days ago, we announced the renew agreement with Dorna for MotoGP till 2026. Then we renew for five years the licensing of Supercross with Feld, for three years with for MXGP, a motocross title. Then we sign another very important deal some month ago that will be announced at the end of this month. As last point that I think is very important, we've been able to increase a lot in terms of high-level technology, the technology that is so important for us because it's the technology that allows grow our title in terms of quality, innovation. We've been between the first to arrive to the new console, we develop a lot for the future. To close, I think that my experience is very positive, I'm very glad to be here. Thank you, Luisa, t hat's great. When we report our game section, we normally just use Deep Silver as the sort of name for all of our labels within the Koch group, and Milestone and is part of that group. I talked about the multi-label strategy, and it encompasses, on the one hand side, Deep Silver, which is obviously our label for "Saints Row," "Dead Island," "TimeSplitters," and many others. It is also the Vertigo Games, our VR publishing group from Holland. Ravenscourt, our German-based label, most notable release is the Let's Sing series and Milestone. With a focus on specific areas of expertise within each label, their own dedicated team of specialists across all disciplines, the labels work semi-autonomously while sharing best practices and learning across the group as a whole. It is my pleasure to tell you today that we have plans to even further increase this number of publishing teams and labels to realign both our existing and future portfolios of products that we are invested in. Stay tuned on that. Going to our second strategic pillar, our partner business. Partner business is built on long-term partnerships since decades, that we are very glad to have. Our company's DNA is very much built on partnerships as well. Global publishing partners include Square Enix or Sega, Warner Games, Capcom, Bethesda, Paradox, and many, many more. I can't name them all, but these are our publishing partners. On the other hand side, we have very important partnerships also with leading developer publishers, like Techland or Bloober Team or TaleWorlds or Pearl Abyss, and many more as well. Publishing, helping other people, bringing their products to the global market, is a key area of our business. We will continue to nurture these relationships and also add new partners in the future. People talk to me about the publishing business and then our commitment. I can tell you, in the physical space, we are very well established, and we are long-term committed to the physical space, and we will act as a consolidator going forward in that physical space. We are there for our partners to help them sell their products in all channels. Going to the third strategic pillar, the European films business. Over the last 18 years, we have steadily developed a European independent film publisher and acquired literally thousands of films. This part of the business represents around about 10% of the overall revenue of the business, v ery profitable as well. Is currently well established in the German-speaking Europe and in Italy. We have recently acquired Sola Media, that you may have seen in the chart before, a world sales agent which co-produces and distributes selected family and animation movies. Here is a small selection of the films that we have been engaged with. Obviously, we are extremely proud that last year we had the South Korean film, "Parasite" in our portfolio, which, among its numerous accolades, won four Oscars at the Academy Awards. Best Picture, Best Director, Best Original Screenplay, and Best International Feature Film, becoming the first non-English language film to win the Academy Award for Best Picture. We publish and distribute this film in German-speaking Europe across all channels and had incredible success with it. This is the short introduction to the Koch Media Group as it stands today and being part of the Embracer Group. I would now like to just shed some light on the question of synergies, which many people talk about. What relevance has synergies in our group? It is interesting to see that what you hear about the Embracer Group as a whole, in a smaller scale, applies to the Koch Media Group inside Embracer. Below Koch Media, for example, our subgroups like Vertigo or Milestone or Flying Wild Hog, we have this principle of subsidiarity and entrepreneurship all the way through the entire group. Synergies are not at the heart of our strategic considerations, I must say. We are one of those companies where acquisitions are not made in order to create synergies. They are not the key driver. Much more important is to enable great entrepreneurs to develop and run their businesses with the support of a bigger operational group and financial backing of a public company. Yes, synergies do work and are beneficial in certain areas. Certainly, within the Koch Media Group, we have a very strong central finance department, legal team, IT, and also M&A is done centrally. We have established knowledge sharing, data sharing, asset databases, market intelligence. It's a long list of things where we can help each other. Obviously, having a global physical distribution network benefits everybody in the Koch Media Group. That is also, as you can appreciate, similar synergies are within the Embracer Group. Physical distribution, I just mentioned, important is that we have equity for acquisitions from our parent company. We can work with our sister companies on common development projects. We have already announced last year that we are swapping IPs so that game IPs are being better exploited, intelligence, and so on. There's certainly a lot to do, but we are not forcing synergies in the group. What does the future hold for us? Looking ahead, we see some very good potential for further organic growth as well as M&A opportunities. Notable organic growth in the game segment, we have some significant products ahead of us which we'll release this year and beyond. Also, our partner business will continue to grow, and we are adding partners to our base, and those two parts of the business work very well hand in hand to give everybody a full global reach physically and digitally for all content. There is M&A opportunities. Lars, you know Lars, yeah? We are all very clearly able to grow and scale our organizations, and it is not all hinging on one person or two. It is very much a group effort to grow also through acquisitions. In summary, I can only say it's been an amazing three years, and we are glad that we joined the Embracer Group, and we can continue following our entrepreneurial instincts, and think of the group more of a global village than a skyscraper. Embracer is a global village of great companies, and I think that concept is unique and very scalable. Our philosophy is about enabling, connecting, empowering this industry, where we know that we don't know what's going to happen next year, is, I think, very well suited for our company philosophy. It inspires creators and entrepreneurs and dreamers alike and captures our imagination. Thanks very much for the time and your attention. Lars said to me a few days ago, "Never underestimate the power of dreams." I could not agree more, t hank you, Lars? Thank you, t hank you, Klemens. I'm as glad as I were three years ago to have you on board and still on board, and I just love seeing your and your team's very hard effort to continue operating and growing the Koch Media business. Thank you, Luisa, very much for joining the session and joining the group. I just love having you on board. We're a bit over time here, so we will cut the line to Austria and Milano, and we would move over to the Q&A session. Stay with us. Great, b ack for a Q&A with both Lars and Johan. We have a lot of questions from myself today, but also from the message board. Remember that you can ask questions directly in the webcast, but not on YouTube. You can ask the questions via the message board. Already getting a lot of questions in. I'll start with a few questions from myself, starting with you, Lars, and discussing the Q3 results. What drove the results in Q3? My instinct is that digital sales and the back catalog, obviously the key driver behind very strong growth margins and growth this quarter. Yes, I think it was a general performance. We had a market with the pandemic that I would imagine helped the demand for our products across the line, and also on digital channels with a higher profitability margin. Comparing to last year, obviously the addition of especially Saber Interactive definitely helped the profitability in the quarter. We didn't really have any new release worth mentioning specifically that were driving the revenues. I think it was a very strong performance across the board. Great, t he second half of the fiscal year, obviously a bit slower in terms of new releases. What can we say about Q4? Are there any titles that you would point out? There are quite a lot of titles at least, but smaller ones. I see in this quarter ending March, a very low activity from the new releases, let alone the Valheim topic alone. In general, across the board, I think the big things are coming in the next financial year. Obviously, we have very nice titles coming out and it's great products, but I'm not really expecting any major commercial impact from those new releases during this quarter. Yep, t urning to Valheim quite early here in the Q&A session, but I think, fascinating to follow it, the concurrent players, the activity on Twitch. Starting with the team that has developed this, I'm hearing three people in Skövde. Can you tell me more about the fantastic team behind this game? Well, in the respect of them, to start with, Iron Gate and Richard and the team, they are an external company, even though we have a minority interest. I think that gives this Q&A session a bit delicate because I have so much respect for what they have been building, and I would like them really to talk about the success and how they did it and so on. I'm just truly impressed what they have been able to achieve, that's why I love the games industry, that you actually are able, if you're just a handful of people, to create such a game that amaze so many millions of players, spending hundreds of hours and creating, obviously, this business as well, just engaging so many people. I've never seen such a thing like Valheim, at least within Embracer Group. I think it's something that I'm truly happy about. Also, the quality of the product stands out. It's just Viking, being Swedish. I just love the theme of it. I note in your sort of ROI plot chart here that you're going to have to have a bigger plot for the next presentation, perhaps. Looking at also Coffee Stain, I think is worth highlighting here. One of the early eight operating units, they seem to have, don't have the English word for it, but finger top feeling when it comes to both development, when it comes to publishing, and in general, fantastic company. With all the respect, I have to say, they are able to really find these amazing talents and games. That's the thing, to be able in your daily work to pick these things and do the right decisions. Obviously, I always had a full trust for them. Obviously, this further nails that they are game makers. They know how to make games. They make community-driven games. They are different as we all are. Indeed, y ou mentioned Richard before. I guess they're very busy now with updates and patches. Yeah. What's the plan over the next sort of one to three years for the game in terms of console, in terms of other platforms and development? Yeah, I'm sure they are bombarded with requests and questions about what happens next. As we all could see, they have shared the plan for the game, I noticed on Steam. I think they're just very focused on executing their daily. Again, they're a very small team, so I think we should leave them alone, make their magic, and I'm sure they will communicate when they're ready about what else could happen in the future. Yep, t his is Embracer Group, t his is not Iron Gate. We have to ask a little bit about the details that you mentioned. You touched upon it in the presentation earlier. You mentioned a typical deal with an external developer, and you have a minority interest, e xcuse me. My take is that a normal deal could perhaps be that you have a 30%-50% share of the revenues, you pay out the rest in royalties. Is that sort of fair assumption? Well, I can't go into details. Again, what I mentioned, the developer in the publishing agreement has a healthy majority, a good majority. I think that is much more in the first number rather than the second number. I think looking in, without specifically talk about Iron Gate, what could a typical external publishing relationship potentially bring to Coffee Stain and Embracer Group, both from the publishing side and from the minority interest side to the operational EBIT level? Well, it depends on obviously the publishing margin along with the potential contribution for the minority interest and the profitability in that company over time, net on the tax side, and that we are able to do the pro forma accounting in time for reporting as well. It could be delays in this as well. Over longer time, I would say perhaps not 50%, but it's definitely something closer to that at least in combination. In combination, g reat. I'll try to interweave some questions here from the audience as well. We have a question on this topic from Thomas Singlehurst at Citi. Does the strength of "Valheim" mean that it doesn't matter that you're sort of reducing the launch cadence in the fourth quarter? Well, now he's talking about his forecast and consensus, I would imagine. I don't know. I think it's hard to comment on that. Obviously, looking on your expectations and others' expectations on the business, I realizing we had Biomutant that many people expected in the quarter moving into next quarter. We might had a bit lower commercial activity than expectations, I would say, especially perhaps at THQ level and partly also at Deep Silver level.