Hi, welcome to this press conference with Embracer Group. For the first part of the conference call, the participants will be in listen-only mode. During the Q&A session, participants are able to ask questions by dialing star 5 on the telephone keypad. Now, I will hand the conference over to CEO, Lars Wingefors, and CFO and Deputy CEO, Johan Ekström. Please go ahead. Good morning, and welcome everyone to this presentation on this morning's announcement. We will give a short presentation followed by a Q&A session. Please queue up for questions by telco details on how it's included in the invitation to this call. To start, I would like to introduce the team of today. Johan, as you have seen many times before, but also online, we have the new Interim Chief Operating Officer, Matthew Karch, and Interim Chief Strategy Officer, Phil. Welcome, guys. Thanks, Lars. Matt, are you online? I'm online. I was on mute. I was told to be on mute. Good to be here. How is yours this morning? I was what? New York? Jersey. Oh, Jersey is wonderful, it's paradise. You should come. Great. Great to have you. You will be presenting a number of slides following the introduction by myself. I would welcome your input very soon into this presentation. Let's move on to this morning's presentation. We announced a comprehensive restructuring program across the Embracer Group for fiscal year 2023, 2024, running until March 2024. This program will enable us to realize untapped potential in Embracer Group and better optimize the use of our resources. It will make us leaner, stronger, and more focused, self-sufficient company. Before moving into the details of the program, let me share some background and context to this decision. We have, during the past year, invested significantly, both in acquisitions and into a strategy of organic growth. We have acquired some of the world's leading entertainment IPs and invested into one of the largest pipelines of games across the industry. The program presented today will transform us from our current heavy investment mode to a highly cash flow generative business this year. It will enable us to meet the worsening economy and market reality as a strong company, and fundamentally change our prioritization of growth, with raised capital towards optimization and growth based on our own cash flows. The program will also lower our net debt significantly. After completion of this program, we will generate growth in profitability with less business risk and with higher margins in the PC console game segment over the coming years. This, in turn, will give us the freedom to continue to grow. The program includes operational and financial measures to increase cash conversion, improve efficiency, and reduce CapEx, reaching a financial net debt below SEK 10 billion by end of this fiscal year. It's expected to reduce CapEx by at least SEK 2.9 billion by fiscal year 2024, 2025, compared to the run rate of SEK 7.9 billion in Q4 2022, 2023. These figures include CapEx related to internal and external game development projects and other intangible assets, as well as tangible assets. The program is also estimated to reduce overhead cost by around 10%, or SEK 800 million, compared to run rate in Q4 2022, 2023 on a yearly basis. The program is expected to be fully implemented by October 1st, and to reduce overhead costs by SEK 400 million in fiscal year 2023, 2024. The program is initiated immediately and will reach full run rate from fiscal year 2024, 2025. I'm very glad to announce that Matthew Karch, currently CEO of Saber Interactive and board member, will take on the role as interim Chief Operating Officer, and that Phil Rogers, CEO of Crystal Dynamics - Eidos, will take on as interim Chief Strategy Officer. Matt and Phil are two of Embracer's most experienced CEOs, with deep knowledge about the company and the history, industry, sorry, with strong focus on operational efficiency. These two new roles are introduced at the time when leadership of Embracer needs to be strengthened, with focus on implementing the restructuring program. Both will join Embracer Group's management team effective immediately. For the restructuring program, Matt and Phil will have an important role as co-leaders of the program planning and implementation, and in close collaboration with each of operating group CEOs and its management teams. They will work to create a more comprehensive, centralized process for game investment and progress review, while maintaining creative freedom. They will also take the lead on further consolidation of operations, including a review of operating group structure. The details and changes for each affected company will be implemented by each operating group CEO and management teams, in collaboration with each operating group CEO and the management teams. I will hand over to Matt and Phil to discuss the main focus areas and actions included in the program. Matt? Good morning again. The stage is yours. Oh, wonderful. It's good to be here at what time is it? Four in the morning here on the East Coast of the United States. I'm Matt, Matthew Karch. I think a lot of you probably know me or seen me on the stage before or met me at lunches or somewhere. I've served as the CEO of Saber Interactive for well over 2 decades, and I resigned from that position, and I've resigned from my position on the board of Embracer as of... Well, I've tendered my resignation. I'll resign at the end of the year from the board to focus exclusively on this new role as Chief Operating Officer on an interim basis for Embracer. I've taken on this role to focus exclusively on implementing a program that'll greatly improve our operations and profitability. I've been with the company for many years, I've seen vast ways in which we could improve that I consider to be low-hanging fruit, and I'm excited to get these plans implemented and to show some really rapid and visible results. For that purpose, we're initiating multiple actions that are gonna strengthen our cash flow generation and that'll leverage our portfolio of IP, which I consider to be some of the best in the world, to create a stronger company. We need to act quickly, right? The quicker we act, the stronger we're going to emerge as a profitable business with greater cash generation. This particular project is cut in multiple phases because some of those phases are quicker, some of them will take a little bit longer. I'll kind of go over what those are in brief. The first phase is cuts and savings that are initiated immediately, mainly targeted at some cost savings across the group, but they'll be immediate, and they'll be noticeable. The next phase will focus on a deeper dive into our operations, how to improve our efficiency, how to reduce our costs, and this is already starting. In order for us to fully realize the significant effects that we'll be able to achieve, we just need to do some more analysis and be thoughtful about it to make sure that we are doing the right things. Then the final phase will focus on internal consolidation, where appropriate, better utilization of our resources, and a greater focus on collaboration across the group. As many of you know, I've spoken on this in the past, I'm a very strong proponent of the synergies that I think we have. Our group has just been absolutely incredible in acquiring some of the best assets in the game industry, it's now time we take those assets, and we leverage them across the group for everyone's benefit. In order to best leverage those, some consolidation will be required. The extent of that is to be determined as we work on the plan. The two primary focus areas of this plan are both in cost savings and in the identifications improvements to operational efficiency. In terms of cost savings, they're across the book. There's tons of ways to save, from reduction of general overhead, and we've already identified certain areas, and there are tons more. Corporate, you know, publishing and other costs, unfortunately, we're gonna have to close some studios that are underperforming or that are not creating product up to our standard. We're going to terminate projects that have, for the most part, not yet been announced, that wouldn't have a material impact on our profitability and because they're projected lower than expected returns. That's on the cost-saving side. On the efficiency side, we're going to be identifying redundancies amongst the group. When you have such a large group of companies, it's obvious that you're going to have positions which are redundant. You're going to have functions which are redundant, and by combining those functions in a meaningful and intelligent fashion, we'll be able to get a lot more out of, out of our resources and spend less doing so. We're also, you know, trying to find greater alignment amongst our stakeholders, as well as greater accountability. That basically means: How do we incentivize our people to want for this company to succeed, and how are they held accountable? We're also going to be implementing, this is extremely important for us and is going to certainly help us to rectify some of the shortcomings we've had in the past, a much more centralized, standardized, and data-driven approach, which is much more precise to game forecasting and product review. We have a tremendous amount of data that we've collected over our vast number of developers over the years, and we've been working hard to make that data accessible to the group and providing analytical tools that are going to enable us to make more informed decisions on product selection forecasting and to ultimately make games that perform better, and in line with or better than our current expectations. I'm excited to be part of this. This is kind of a dream job for me. I'm extremely confident that we're going to have tremendous success, and I'm proud to say that I get to work with Phil Rogers, who at one time worked across the table from me when he was at Square Enix, and now we're partners on this initiative. Phil is one of the most respected individuals in the industry. He's the guy who's going to keep me in line over the next six to nine months. I need him, and I'm gonna hand it over to him. Thanks, Matt, and I share that sentiment, too. It's, it's good to work alongside you on this one. Just by way of quick introduction, less well known on this stage, I joined Embracer a little under a year ago now, as the CEO of Crystal Dynamics - Eidos, which is an operative group very much focused on the PC console side of gaming. To pick up from Matt's final point then he made, he talked about efficiencies. There's a third really important focus area, too, and that's capital allocation. It's really an area I think we feel it runs throughout all the program that we're outlining here today. We list here some of the capital allocation actions, but it's a non-exhaustive list, so we won't be limited to this, but we just wanted to highlight some this morning. First off, Lars certainly already covered this, but we talk here about the creation of a more comprehensive, centralized process for game investment. You know, Matt also said this, there's new emphasis about how we pull all the extensive data we've got across Embracer to help us take smarter decisions on project spends, but also how we better manage those projects, how we better gate the overall development process. It will include a review of our operative group structure and could involve the consolidation of certain businesses or companies. Again, only where it makes sense to do so, and we're just getting in to start this work now. What's clear, though, as we look forward, is that we do need to better leverage our scale, the quality of our portfolio, and our capabilities. Ultimately, is to empower our creators to continue to deliver amazing games for gamers. We'll also put greater focus onto these internally developed games where we own or control the IP. We'll look to deepen and extend partnerships for sources of capital for these internal partnerships. That's a key aspect of our business today, and we'll look to deepen that. There'll be a reduction in investments into external projects, so these are games made outside of the Embracer Group, using non-Embracer IP. Of course, as we focus now on our business, it's natural, perhaps, that we anticipate a divestment of non-core assets. As we've said, these initiatives, these actions are starting immediately, but the full effect of these actions won't be really seen until fiscal 2024, 2025, in terms of run rate. With that, I'd like to hand over to Johan. Thank you, Phil. Financially, for this year, the overarching goal with the program is to reach a net debt of SEK 10 billion by the end of the fiscal year. The bridge we are looking at illustrates how we expect to reach our target. We had, at the end of last fiscal year, a net debt of SEK 15.6 billion. We expect a operating cash flow for this fiscal year of SEK 10 billion. We have CapEx investments of SEK 6.1 billion, taking into account the reduction in CapEx that we expect to be within this fiscal year. We also have external CapEx funding of SEK 1.6 billion in the plan. Further, cash restructuring costs for this fiscal year, of SEK 0.5 billion. We expect to see a positive contribution from lower working capital, of SEK 0.5 billion. This leads us to a net debt of SEK 10.1 billion after free cash flow. Then we have cash earn-outs to be paid during the fiscal year of SEK 2.6 billion, and we have other initiatives of SEK 2.7 billion that will take us to the targeted SEK 10 billion in net debt. Other initiatives could include further cash savings, not specified under the program, increased level of external CapEx funding, or inclusion of content into various consumer services, as well as the potential divestment of non-core assets. Embracer is well within the covenants levels set forth in our loan agreements, and we intend to extend our loan agreements before the end of August this year. The program is expected to have a neutral impact on adjusted EBIT for this fiscal year. We will have lower overhead costs, but also lower net capitalized development costs and slightly lower net sales. The previously communicated forecast of an adjusted EBIT between SEK 7 billion and SEK 9 billion is reiterated. The forecast is based on the same assumptions as communicated in our Q4 report in mid-May. We will also exclude any items affecting comparability from adjusted EBIT, including potential severance payments and write-downs related to game development projects that are part of this restructuring program. We will clearly specify this for transparency of reported and underlying profitability. Thank you. Thank you, Johan. Thank you. I would like to give a few final remarks before heading over to the Q&A. There is significant untapped potential in Embracer, which we would like work together to unleash. We need to better leverage our scale, the quality of our portfolio, and our capabilities. Ultimately, this will empower our entrepreneurs and creators to continue to deliver outstanding and memorable experiences to gamers and fans across the globe. I'm confident in our team's ability to achieve results and maintain our position as a worldwide leader in the gaming industry. I'm proud of what we have built over the past years, and we should acknowledge that we are heading into a solid year with many amazing releases, such as Remnant II, Warhammer 40,000: Space Marine 2, published title of Payday 3, Hot Wheels Unleashed 2 - Turbocharged, Arizona Sunshine 2, Alone in the Dark, Homeworld 3, and many, many others. Our financial year started with one of our greatest successes so far, Dead Island 2, which exceeded our management's already high expectations. Today, we have presented our short and midterm actions. As announced in the Q4 report on May 23rd, we will hold a capital markets day during the second half of calendar year to give a detailed overview of both strategy, model, and midterm financial targets. Today, our first focus is on execution on the program. The quicker we act, the quicker we will emerge as a stronger company. My management team and I are confident about our future, and that we announced today is what is the best for the long-term success of Embracer. We are setting out on a stable future to build even greater value across our many studios and fantastic portfolio of IPs. Thank you. Now heading over to Q&A. If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. Our first question comes from the line of Rasmus Engberg from Svenska Handelsbanken. Please go ahead. Your line is open. Yes, hi, good morning. Thanks for taking my question. I was interested in hearing, I know Matt and Phil have been in the industry a very long time, but also what their experience is in terms of managing what is a fairly significant restructuring. I can jump at it, and I'm fine with that. I, you know, I've built Saber to about 700 or 800 people prior to joining the group. Since then, we've built the company up to about 2,300 or so. We had different groups. Kind of, in many respects, we operated like a mini Embracer within Embracer. For the past three years, we've had to expend significant resources to take those assets and to make them work better within the system and to make them work better with each other, because that integration process is a challenge. If you have 20 different companies that you've acquired, and those companies are all operating on their own, you know, and their own way of doing things, it's going to create a mess, and we noticed that relatively early on. We had to do some significant restructuring and integration in order to take all of those disparate acquisitions and to make them part of a unified whole, and we've been very successful at that at Saber in the last year-... I would say, 3 years. The learnings that I have from Saber and organizing exactly what we did there is what we plan on doing here, only on a larger scale. Identifying all of the excess costs and you find there seem to be patterns among developers about how they operate. There are things that can be fixed. You find the redundancies, you find, you know, multiple people working in positions that don't necessarily need to be working in those positions. One person might be enough. When you scale that across 17,000 employees, you can imagine there are significant savings to be had there, and we'll find them. Now, that's my experience, Phil, I know you come from a very different background, which is fantastic as well because it's complementary. I mean, it's a great question. I think the one thing about our games industry is it does constantly change. With 20-odd years of experience, the last part of that very much within the Square Enix world, we have had restructurings, and I have been at the helm of restructurings as we adapt to market conditions. It's often around quality, on game portfolio. You know, I've led those and, you know, feel that learn a lot through it, especially how you take people with you. We're a creative company, that's very important that people understand the paths ahead and how decisions are being taken. Like Matt said, I think there's plenty of opportunities here. I think people see what has to be done, and now it's just a question of ordering it, and I hope my experience puts me in good position for this. Thanks. Just, generally speaking, it seems to me that this, maybe you've said that, but this is mainly about the PC console business that we're talking about here, or is other assets as well, or? Well, I think as. I, go ahead. Sorry, Matt, you start. No, no, look, there's obviously areas to improve everywhere, but PC console is one of our larger businesses. PC console is one of those businesses that's dealt with some delays and that's dealt with some with some projections, which could probably be a little bit more accurate. It's one of those areas because we have so many resources in those areas that it's in many respects, the lowest hanging fruit because it can. There's so many things that could be done to improve and optimize, and where necessary, consolidate, that not to say that we're not obviously willing to do the hard work, 'cause we are, but there's a lot of easy work within PC console, that's really where the performance at this point has been lagging. Yes, we are going to start with that, but it, that doesn't mean we're going to ignore the other sectors, the other groups, the other verticals. We will, but they are not the priority at the moment because frankly, they're performing very well. We want to focus on those areas that just make the most sense. I think Lars wants to say something here. I see him. Rasmus, just to be clear, the restructuring program is not also wider than the PC console game segment. It's mainly relating to OpEx, and obviously there is certain companies excluded also within the group. The OpEx savings are, in general, across the group. Mm. Thanks a lot. The next question comes from the line of Erik Larsson from SEB. Please go ahead. Your line is open. Good morning, thank you. First question: what baseline of EBIT are you assuming when you expect SEK 10 billion in operating cash flow? Yeah, I can answer that. The adjusted EBIT forecast for the year is between SEK 7 billion and SEK 9 billion. I'll interpret it as somewhere in the middle then. Another question on the CapEx and external CapEx funding. Have I interpreted it correctly that SEK 6.1 billion would be the new sort of run rate CapEx, and that SEK 1.6 billion is proceeds from selling capitalized assets, so that the net investment would be SEK 4.5 billion for the year then? In terms of run rate, we said that it will be reduced by SEK 2.9 billion over Q4's SEK 7.9 billion. We will reach that in 2024, 2025. In terms of expected CapEx for this fiscal year, it's the SEK 6.1 billion. Okay. Yeah, and then the next question is, the SEK 1.6. That are deals similar to what we have done previously, for example, with Amazon. And that includes a initial catch-up part as well, in the cash flow statement. Yeah. Whether it's reported as a reduction of CapEx or or not, it will improve the cash flow for the year and help us reach the target of net debt. Okay, perfect. Just a final question: How do you sort of view the appetite from external publishers or you're mainly thinking of the game platforms or traditional publishers when you want to find external partners for some of the larger games? Yeah, I think, Phil, perhaps you could answer how you see the landscape in the industry about, well, both the appetite for content, and our games and, you know, what sort of business partners could you imagine without obviously disclosing them? It's a great question. I think the appetite is strong. I mentioned before, the industry changes. I think part of this evolution is actually finding partnerships industry on how great content gets to market. I mean, making games today is way more complex than it was 10 years ago, there's naturally, you know, more partners involved with that. From our experiences of finding partnerships for big games like Tomb Raider, it was a really good experience. You know, that next game will come through a partnership with Amazon Games, and you know, I feel the market right now is really looking for content, and Embracer is really unique in terms of its portfolio that it has in the market, and this will hold us in good position. I think it's important also to highlight that obviously, Erik, you know that we came out from a situation on May 23rd, that we had a partnership that didn't materialize. We had a quite significant pipeline, or we have a quite significant pipeline of amazing games that has not been available to partners during a period of time. I think we are, you know, well-invested and have some absolutely amazing games, and I would say that now we put forward the management plan to the market today to be very transparent. I think our own ambitions at the management level are higher than we put forward, especially relating to finding partners on the content side on a number of the projects. Okay, great. Thank you. The next question comes from the line of Marlon Värnik from Nordea Markets. Please go ahead. Your line is open. Yeah, thank you, and good morning. Just a couple here. First, to follow up, just so I understand here correctly, why do you include external deals of SEK 1.6 billion for the outlook before you sign anything? We put forward a complete plan to the market with a high transparency. Obviously, this is a plan, whether it's the actions or the numbers. Obviously, we have been discussing the communication of today. I think it's important for all stakeholders to understand our plan and our ambitions, and then, you know, it would help us to deliver on that. If you say very, very little, it would raise a lot of questions, not only from financial market, but also from other stakeholders. I think to have a more complete package this morning was the way we decided together with many stakeholders, was the way forward to communicate this. I don't know, Matt, if you have something. Yeah. to add to that. I do. Sorry. You know, sometimes I interrupt because you take pauses, and I think you're done. You know me, it's 3 years of doing this already. Look, we don't take any of these decisions or comment slightly, you know, we're in the business of making games and selling games and finding partnerships, and we know what's out there. We've had numerous conversations, we're not being overly aggressive whatsoever, and our level of confidence is justified. I feel very strongly based upon our knowledge of the market, the conversations that we've had, that we'll be able to achieve the objectives that we've set out. That's why we're confident in being able to say them here. Yeah, fair enough, but when including it, do you see a potential problem in terms of negotiations? No. No, there's so many options out there for our products that in many respects, we're controlling the dialogues here. It's not like we have one partner necessarily. We for our products, especially with our high-quality studios and some of our best IP, we have a range of suitors to choose from, and it's just a question of finding the terms that we feel give us the best balance of cash and that also, you know, that offload our risk, but continue to give us the upside. Okay, perfect. just the last one from my end then. You also mentioned that you expect neutral effect on adjusted EBIT for 2024, how should we see the effect on adjusted EBIT for 2024, 2025 when the program is actually fully implemented? If you can give some color here on the capitalized effect for 2024-2025, that would be great. Thanks. Obviously, we haven't disclosed, or forecasted the numbers for next financial year. We will come back to the market on that. What we said is that we see growth, also post this restructuring program, in the financial years ahead. Thank you. Thank you, over me. The next question comes from Thomas Singlehurst from Citi. Please go ahead. Your line is open. Thanks so much. It's Tom here from Citi. Thank you for doing the presentation. It provides a lot more flesh on the bone. Of course, I've got to ask for more detail, if that's okay. Maybe to start with, I mean, you talked about the sort of federal nature of the organization within PC Console and more broadly. Just to help us, can you give us a sense of, you know, just how autonomous the different operative groups are in areas like finance reporting, sort of HR, property? Just so we can get a handle on whether the head count reductions are likely to cut into the bone, if you will. That was the first question. Second question was, you explicitly talk about implementing all the actions by October. That's good. It's nice and quick. You also say that you're in talks about extending loans by August. I was just wondering whether you had preliminary discussions with lenders and whether at this stage you can absolutely rule out an equity raise. I suppose the final question is on the other initiatives, and it's similar to the point about CapEx. I mean, obviously, lots of options, but can you just talk about what you have a line of sight on? I suppose, given our experience from the last few weeks, just, you know, how confident can we be that, you know, it won't be a mirage and things that you think might come through don't come through at the last moment? Thank you. Starting on the structuring point, Johan, if you start highlighting, perhaps. Okay, as you mentioned, you mentioned financial reporting. I mean, when you are part of the Embracer Group, you are part of a listed company, a listed family. That there we have had from the beginning a strict centralized view with global guidelines. Obviously, that's required for us to be able to report in accordance with what we need on a re-regulated market. I don't know, Matt, if you have some more color to share on the, on the overhead structures we have across the group. Absolutely. Look, when you acquire studios as rapidly as we have, part of that, one of the downsides of that rapid acquisition is that you really can't integrate in a meaningful fashion. What you end up with are a lot of studios that have their own organizations and their own departments, which do things, which are also being done in parallel by other units. When you have as many companies as we do, the duplication could be significant. Yes, we have multiple IT divisions, and yes, we have multiple HR divisions, and yes, we have multiple finance divisions, and we even have on the development side, multiple resources that are doing similar products, similar things, but that may not all be necessary. This gives us a real opportunity, and that's why I said it's kind of low-hanging fruit because it's just there for the taking, and it's not something we've really had time to address explosive, I guess we call it inorganic growth, that now we can focus on. You know, it may sound ironic to say that we're gonna grow by cutting, but that's always part of it, and that's also part of how we're going to get our cash under control and to create efficiencies. There's a lot of that within the company, and there's a lot of ways to streamline. That's the way I like to put it, and we will be doing that, and this is exciting. I feel like I got a block of ice, and Phil and I are gonna carve a beautiful sculpture out of it, and we're gonna do it relatively quickly. It's there for the taking. Well, on your second point, Tom, you know, obviously, we have a strong working relationship with our lenders and as well informed, so. On the third point on CapEx, was it relating to the external funding again, or could you give some more, Tom, color on your question here? Yeah. Actually, it was to do with the other initiatives, actually. Oh. the balance of cash. Oh You know, think it's gonna hopefully offset the cash earn-out payment. Just what, you know, what do you have a line of sight on, you know, relative to what is, at this stage, sort of speculative? You know, obviously, we have a management plan covering many areas. Again, on the business development side, I think there is tremendous opportunity, again, to work with the industry. I think the ambitions with the management are higher than we put forward here. Whether it's investing into our pipeline or whether it's inclusion of our content into various services. Again, we have been on hold for a number of months or half a year, now being able to free up a lot of, you know, that content, I think, creates a lot of opportunities. On top of that, I think Phil and Matt would create a very strong business development unified approach in many of these conversations. On top of that, you know, we see the potential to potentially divest some non-core assets. Again, if obviously we've been acquiring some absolutely amazing assets and companies over the past 6 years, and, but obviously there is also a lot of those assets that are not the main business areas of the plan going forward. We will do this, you know, with patience and so to maximize the shareholder value. Obviously, as I wrote in my open letter this morning, I would like to thank, you know, all the industry partners that has been reaching out and, you know, obviously willing to do business in many ways, both on content, but also on non-core assets. I'm confident that we will find, you know, everything we need to take our net debt down to below SEK 10 billion by end of the year. 100%. If I could get one follow-up, actually, this is maybe for Johan. I mean, obviously, lost in all the drama of the last few weeks is the strong performance of Dead Island 2. Can you talk about the implications that has for the phasing of cash generation through the year? Does the strong initial reception to Dead Island 2 mean that actually relative to other years, we might get more of that cash generation sort of in the first half of the year, or is it not as simple as that? I think on the dynamics for cash flow generated by Dead Island 2, we obviously there are lead times towards our digital platform partners, but we expect to see that cash flow coming in in the first half of the year, and end of Q1, but also slipping over into Q2. Obviously, what happens after that depends on how the game continues to sell. I think we are, the management are confident of the continued success of Dead Island 2. Also, I think you see now across the various game shows in the industry the past week, we have been, you know, showing, or our companies and teams have been showing some absolutely amazing games that we feel confident will, you know, generate strong cash flow during the year. Again, for example, Remnant II, Space Marines, Payday 3, and many others. Very clear. Thank you. The next question comes from Nick Dempsey from Barclays. Please go ahead. Your line is open. Thank you. I've got three. First of all, a key risk around restructuring of video games groups is that when some staff are departing and some projects being cut, you might lose some of the most talented staff that you want to keep and are critical to other projects. How do you plan to prevent that from happening in this situation? Second question, the restructuring charges of half a billion SEK looks pretty low when you are looking at saving combined 3.7 billion in CapEx and OpEx. Is that because an important part of related partners, or should we expect another note? Third question, you're releasing quite a few games- We're not really hearing you, I don't think. I'm hearing... Are you guys hearing? No, we won't. No, we can't hear you, Nick. Sorry. Can you hear me now? Yeah, we hear you now. Yes. All right. Sorry, did you catch the second question? Yes, we did. Yep. Okay, I'll just go with my third one then. Sorry. The third question, you're releasing quite a few games in FY 2024, and cutting back on your CapEx, and looking for publishing deals where you'll give up some of the economics. Should we not expect organic revenue growth to be negative in FY 2025 in particular? Okay. Thank you, Nick, for the questions. Why don't we start with the first point, and Phil, perhaps you can give some color again on the risk for creative talents and key people leaving the group. Yeah. I. How we mitigate that. I accept the risk. I mean, I've mentioned it before, we have to have run a very, you know, transparent process on this. I think from my experience, people understand where our end result wants to be in terms of what this would enable for the group, how it will streamline the group and make it more efficient. For many teams there, as long as we are increasing their capabilities, ultimately, enabling their focus to deliver on great games, we will find that retention. We will, of course, look to introduce local plans, you know, for retention within the operative groups that best fit the needs. You know, we've been through this before, and I think with care and attention and explanation, people will understand it. We want to set up the environment where they continue to make the games that we need and we want. I think it's a more of a day-to-day risk. I know these restructurings, you know, strike us, you know, very significantly, but, you know, on that particular risk, I think it's something that's well within our toolkit to manage well. Johan, perhaps on the second point on the restructuring. I think, yeah, looking at the SEK 500, that's SEK 500 cash out estimated for this fiscal year, included in the net debt bridge. If you compare it to the savings, so you're looking at the run rate, the savings, it's also important to recognize that there will be CapEx savings made during the year that is not that does not have any restructuring related to it. We think that the amount is the cash out for the year is a prudent estimate of what needs to be paid for this fiscal year. on the third point, again, we are not giving any financial forecasts, you know, but when we are modeling the business forward, post the restructuring program, we still see growth and a higher margin in PC console. Obviously, the ambition is to take away a lot of those projects that likely has a lower ROI, opposed to taking the higher ones away. I think it's. We will need to come back to that in the capital markets day. I don't know, Matt, if you would like to share anything more on the potential of our future growth? Well, you know, I think sometimes growth comes by cuts. I mean, you refocus your efforts. You do a better analysis of the talent that you have. Sometimes teams get put on projects because the team is has availability. In a structure which is not quite as consolidated, there aren't necessarily the shared resources. Mm-hmm ... to put that team on the best products. With some more centralization, and I'm not obviously implying that we're moving from one model to another, but we are going to incorporate elements of consolidation and centralization into certain aspects of our business, we are going to have a much better picture of the teams that are coming available, and we're going to have much better data to support product selection and to create product, which is going to ultimately achieve better results than some of our past products have. I have a high degree of confidence that this entire process is going to easily translate into better product selection that's more profitable, and that gives us a greater opportunity for growth in the future. That helps to leverage the IP that we own within our organization. I mean, we own The Lord of the Rings, you know, we know we need to be exploring The Lord of the Rings in a very significant fashion and turning that into one of the biggest gaming franchises in the world. That's obviously something that we're going to be doing. That's a much better use of resources than some of the other projects that some of our teams have been working on. Working together, we have those opportunities, and we're super excited to see that put to work relatively quickly. Thank you, Nick. Next? There are no more questions at this time, so I hand the conference back to you, Lars, and Johan for any closing comments. Okay, thank you, everyone, for listening to this morning's presentation, and we will share more information with the market in due course. Information will also be shared throughout our operating groups and companies during this process. Thank you very much, everyone.