Hi everyone, and welcome to the Q2 report for Paradox Interactive. Hi everyone. My name is Ebba, I'm CEO. I'm Alexander Bricca, and I'm the CFO. How are you doing, Alex? Good. Good to be back. Yeah. Have you had a nice summer holiday? Yeah, it's been good. Yeah. As you know, it's been warm here in Sweden. Yeah. That has helped. How about you? Yeah. Also, lots of activities outdoors, which has been really nice. Yeah. Now we're back to talk about Q2. Maybe we can flip to the next slide. There we go. We've had a little tough quarter, I think. We're not completely satisfied with where we are. We are seeing a lot of impact from COVID. It's very unfortunate for lots of reasons, and for us, it's mainly that development time is taking longer than we would like it to do. The revenues this quarter were down 13% compared to last year. If we look at the whole year, it's up 11%. Profits before tax, we had a very good quarter last year, it's actually down 44% compared to last year. If we look at the 12 months, it's also down on that. There are a couple of factors that are affecting this. One is the fact that we have canceled a project. This is completely normal for us. We do it quite frequently, not every quarter, but I think. Three out of four. Three out of four quarters. This quarter, the amount is a little bit higher than normal. It is SEK 42 million. The reason for this is that this was a game that initially looked very good, so we decided to continue development, and then it didn't work out. I've said this before, it's something that we work very hard on to try to cancel projects as early as possible. The cancellation itself is a part of the process, of course, we want it to be early so we don't spend too much money. If you look at our investments over time, Alex will show some slides on that later as well, but since CapEx is growing, that also means that from a fixed sum amount, this has gone up over time, but percentage-wise it stays pretty similar and fluctuates a bit quarter by quarter, but if you look over time, it stays quite stable. We've also had some effects that we have every now and then. Yeah. Sometimes it goes in our direction and sometimes not. This quarter it was more against us. That's also normal, so we continue with this. The one thing that I think is positive and that is building for the future is that our player base really keeps on growing. Looking at our PDX accounts, they've increased by 6 million in the past year, which is a huge bump for us. This is very important because we want to communicate directly with our players. The fact that we sell mainly through our partners means that they also have the relationship with the players, so it's important for us to have our own connection, so to speak. This is something we work very hard on to continue to collect and also build on for the future. We also have super stable and good monthly active users, over 5 million players every month who come in and play our games. That we're also very happy about. Of course, this is what builds for the future. You're very fast. We have continued to work on all our games to make sure that the basis for every single game grows, so it's not just one game. Also that we continue to really develop and work on the teams, so the teams have good sizes and good potential to build for the future. Okay, if we move on to one of the highlights of this quarter, we had our annual fan gathering. It actually wasn't annual because it was a year and a half since the last one. PDXCON, this time it was digital due to the pandemic. We managed to reach out to a lot of people. We have over 3.5 million views on our content. Over 250,000 concurrent and unique viewers during the actual weekend. The trailers tend to be the most popular ones, but then also the announcement show is viewed by a lot of people, both live and then, of course, after the event itself. We were sending content for 72 hours, which is definitely a record for us. A lot of hard work from many people in the group and many of our partners, many of our modders who are also involved in this, et cetera. We announced nine things, one new game, and then added content on our live games. Over to the new game, Victoria 3, which I don't think anyone has missed that. Finally. Finally, we have announced. This is one of our most mythical games, and I don't think I've ever posted anything on social media where I haven't gotten a question when Victoria 3 or Vicky 3 is coming? It was incredibly exciting for me, but of course, also for the team who are building this game to get to announce it. It's a grand strategy game. It's quite heavy on the management side. It's known for super complex systems and in terms of how you handle politics and populations. Now we're focusing on getting this to a great game. We haven't announced the release date yet, but more information on that will follow. Other events in the quarter, we had five-year anniversaries for both Hearts of Iron IV and Stellaris. Hearts of Iron has sold more than 3 million copies since we launched it, and Stellaris has sold more than 4 million copies. Almost 4.5 million, actually. These games are continuing to grow over time, and both of course the expansions that we had to the game, but also the base games actually also continue to grow over time, which is super cool to see. We have released four expansions and three content packs. There is a question on if we are releasing things or what. We are releasing things. It's just that it takes longer to get things to a state where we can release them, basically. Nemesis for Stellaris, Federations for Stellaris Console, Second Chances for Prison Architect, and Leviathan for EU4. The first three were great and very well-received. We sometimes release patches on the base game at the same time as expansions. That's an interesting concept because it really adds to the value of the expansions. It's often systemic changes to the game, so it can also disturb how the players are used to playing a little bit. That was something that happened with Nemesis. We are now talking about is it better to split these two and do all the free patches in one point and expansions in another. We had issues with Leviathan, which did not live up to our standards when it comes to quality and how we want the expansions to go when we release them. This is not the first time it happened and not the last time it happened, but for every time, we learn and we really improve on how we work and how we work with the whole process of getting a game out the door or an expansion out the door. Now the team are working very hard on getting this expansion to be in a good state. We've done many patch releases already, so it's looking a lot better. Then we've had two sales during the quarter, the Steam Publisher Weekend, which we had at the same time as the PDXCON, and then the Steam Summer Sale, which started in the end of the quarter and actually continued a bit into the third quarter. These Steam sales are always very important for us. It's a great way also to get into our quite content-heavy games for new players. We always see a very nice uptick during these sales. Last but not least, we have top earners. You're happy to see it's the usual suspects, I would say. Cities, Crusader Kings III, EU4, Hearts of Iron IV, and Stellaris. I would also think it's worth mentioning that Surviving Mars is also doing super well, and it is close up there, but it goes up and down a little bit. I think it really just proves our point around our strategy and what we do, that our games live on for a very long time, and it's very much about building a base and continue to build that over the years, which of course is the case with all of these games, really. I think that was. No. The constant topic of COVID as well, of course. COVID, as you know, and we can see it in the comparables, we did see a big uptake in sales, especially last year. We're still seeing that we have a lot of players who come in and play. We are seeing some downside effects as well, which mainly has to do with our speed of production. It's not so much about the amount of time people work because people do work a lot. It's more that every single feedback loop takes a lot of time. It makes it very clear that we are here to make games. For us to be able to make games, we need to have more frequent and in-person contact. For us as a company, the office will be our main place of work as soon as we can. We're trying to follow recommendations in every country, so it's a little bit different from country to country where we are. We are now seeing that a very big and growing part of our teams are getting vaccinated. While we are still working from home, we are looking at slowly getting people back into the offices during the fall. It won't be a switch on a day. It will more be a very gradual thing, but that's definitely the plan. That I think was my last slide. Yes. Perfect. Thank you. Let's go through the numbers a bit more in detail. The revenues for the quarter came in at SEK 403 million. That is a 13% decrease compared to last year's second quarter where we did SEK 465 million, which was a fantastic quarter in many ways. Ebba mentioned the top five contributors are the usual suspects, Cities, CK3, EU4, Stellaris, and Hearts of Iron IV. Operating profit for the period came in at SEK 111 million. Q2 last year, the operating profit was SEK 199 million, so it's a 44% decrease. This is where you can see a big impact of the write-off of the canceled game, right? Yes. Three things that makes this difference. One is the write-off. SEK 42 million impacted this year's Q2. Last year's Q2, we actually had SEK 0. Mm-kay. That was an exceptionally good quarter in that way. Comparing the quarters, it's a SEK 42 million difference there. Of course, we take the full impact the day we decide to cancel the game. Yeah. Of course, the money has been spent throughout the longer period, but everything ends up in one quarter, so it hits the quarter where we decide to cancel the game, of course, a lot. Then you mentioned FX. The dollar has gone down from last year's Q2 average to this year's Q2 average with 13%. We have 97% of our revenues in foreign currencies. Dollar is the biggest, a lot in EUR and GBP as well. Those currencies has also declined against the SEK. Okay. Not as much as the dollar, but still a lot. When you have a turnover of SEK 400 million, it has a huge impact. Just the FX impact and the fact that we didn't have any write-downs last year and a lot this year, that almost makes up the difference. As always, our quarterly revenues and profits are highly dependent on the content that we release in the quarter. If we look at the quarter, Ebba went through which expansions we did this quarter, the lineup is similar to last year. It's a similar amount of expansion, similar sizes of expansions in terms of price points, and similar sizes of the base games that we did the expansions on. I think two differences. One is last year's expansion on EU4 was Emperor. Which was fantastic, which generated a lot of sales. This year's expansion generated less sales, of course. I think a bigger difference between the quarters are that last year we had two big content releases just before the quarter started. In Q1, in March 2020, we came out with expansions for Cities: Skylines and Stellaris, and Cities came out, I think it was the March 26th. Of course the sales coming through most of the revenues came in in Q2. That, of course, impacted the difference quite a lot. Earnings before tax or profit after financial items came in at SEK 110 million. Similar difference there, SEK 198 million Q2 last year, and profit after tax SEK 88 million this Q2 compared to SEK 155 million Q2 of 2020. Operating profit margin for Q2 came in at 28% compared to 43% last year second quarter. Here, this of course fluctuates since revenues varies quite a lot between the quarters, but cost is more fixed. Cost grows with our ambition to grow the company to a large extent. Therefore, when we have a high revenue quarter, the margins tend to accelerate quite a lot. Profit margins after tax, 22% this second quarter compared to 33% the last quarter. Equity to asset ratio slightly increased. It's going to continue to increase, this has to deal with the fact, I think it was a year and a half ago, or actually it was two years ago, when the accounting rules changed and we had to take the lease agreements as an asset and as a debt. Towards the end of 2020, we entered into new lease agreements in Stockholm, in Seattle, in Delft. I don't know if it was maybe Malmö as well. Yeah. That became a huge debt and a huge asset on the balance sheet. That is, by every quarter, it's getting less and less. Therefore, this equity to asset ratio is increasing. Employees at the end of the quarter, 715. 534 last year's end of June. A big part of that is the addition of Playrion and Iceflake to the company group, which is- A year ago now. A year ago, yes. A year and a month almost. Yes, it was in the first half of July, I think, both those merges went through. Yeah, time flies. Let's go through the cost base a bit more. This relies on our revenue and our main three cost items. The revenue, as shown many times before, tends to go up and down. It has gone up compared to Q1. The cost are fairly flat compared to Q1. The total costs, all the three cost item, cost of goods sold, selling expenses, and administrative expenses amounted to SEK 289 million for the quarter. In Q1, it was 1% less. If you look four quarters to the left, if you look at the Q2 last year, it was SEK 250 million. From SEK 250 million to SEK 289 million, that's a 15% increase. These costs, they will continue to increase as long as we have a growth strategy with more and bigger studios, we will increase these costs. Not each quarter, over time they will increase. The largest of the cost group is the cost of goods sold. That item includes all the costs for our nine internal development studios now. All the costs for our external development studios or our development partners. It includes the depreciation when we have acquired assets and companies, almost everything comes up as an asset that we depreciate. It varies depending a bit on what the company includes, but some of the assets we depreciate over one and a half year, but most part of it is over five years. This has an impact, I think it was SEK 20 million just in the second quarter. Even though we believe that the asset we have acquired, they are not going down in value. Yeah. They are hopefully- We still have to take the depreciation. That's the way we account for it. The COGS, and thus the profit every quarter now is taking a SEK 20 million write-down. Sorry, depreciation. We like it that way. The SEK 42 million write-down of the unannounced game is also part of this COGS of SEK 200 million. What else? Yes, royalties. Yeah. It includes royalties. That tends to go up on especially Cities. If we do a lot of sales on Cities. Royalties is to all the studios that are developing games for us that aren't owned by us, basically. Exactly. How the normal setup is that once we reach a certain threshold of revenues, we start to share a part of the revenues with the studio. That depends, of course, a bit, but all external games that become successful. We start to pay a royalty. Amortization, when we develop games, we capitalize, and when we release a game, we start to amortize it. That is up compared to the second quarter last year, and that has to do with we have released more and bigger games. Compared to last year's Q2, we have released Empire of Sin and Crusader Kings 3, and they of course impact this quarter. Since Q3 last year, we changed amortization model, so it's degressive. That means for each quarter that passes, we amortize less and less. Therefore, the amortization is less in Q2 than it was in Q1. It's going to be less in Q3 unless we release a new game where it bumps up again. Royalties, I mentioned, should reasonably be a bit lower because last year's Q2, we had quite a lot of revenues on Cities. What else should we mention? That, I think, is it about the COGS. Selling expenses and administrative expenses have been fairly flat over quite some time. Which is the way we want it, right? Yes. Yeah. Administrative expenses is everything else that is not the items I mentioned in COGS and selling expenses. That will go up over time as we grow the company or the company group. Selling expenses will fluctuate perhaps a bit more than we have seen because with bigger releases, we will see bigger spending. This shows each quarters, this goes back, is it five years now? Yeah, five years. Quarterly revenues and operating profit. What it shows is what we have stated many times, it fluctuates quite a lot, and percentage-wise, profit fluctuates more than the revenue, but it has an ongoing trend. That's the other thing you see here. Not every quarter to quarter, but over time it has an ongoing trend, which is very important. We can lump it all together, or not all together, but four quarters together so we have a year, and that is what is shown here. Each bar and each point of the line shows the rolling 12-month revenue and the rolling 12-month operating profit. The revenues for the last four quarters is just a little bit more than SEK 1.7 billion. Mm-hmm. This is why we say that we aren't really happy with the quarter, because we don't want it to go down over time like this. No. That it has done now two quarters in a row. We do believe that it's connected to getting more content out. Yes. Over time. Yes, it is. Yeah. Which we are working very hard on. If we go back to the previous quarter, if we look at the profit for the last three quarters, you can see it has gone up two quarters in a row. In that short term, it is an upcoming trend. When we group it together, it goes down, and that has to do with the fact that for each quarter, we replace the last quarter, kind of, that was in here. This goes down because we are comparing the last three quarters with three great quarters. Yeah. That started off Q4 2019 and then continued through Q1 to Q3 last year. Super strong. Very good quarters to compare with. On top of that, each of the last three quarters, the dollar has been decreasing year-on-year quite a lot. That has a big impact. Has a huge impact, of course. As you mentioned, we have geared up our company to deliver more content than we are able to get out at the moment. That we would like to see a pickup on, of course. Cash flow, very strong. I think it was SEK 262 million, the cash flow from the operating activities in Q2. Grouping it together the last four quarters, it's just above SEK 1 billion. Quite strong. What do we do with it? We invest it into new games. Not only new games, but game development. It can be new games and it can be expansions. Record again, SEK 212 million invested into game development. I think if we look at the last four quarters, it's SEK 715 million that went into just game development. If you add these bars together, it's going to be more, but that's because it includes acquisitions of certain companies as well. SEK 715 million investment into game development. The year before that it was SEK 521. It's a huge uptake. Yeah. It shows our growth and our ambitions, I think. Non-current assets and total equity continues up. This chart kind of shows that our non-current assets, which are capitalized development is the biggest one, which is SEK 1.120 billion now. The other two, one I mentioned, it's the asset we have in our lease agreements. The third one, not necessarily size-wise, but that is the intellectual properties that we have acquired. These assets, you could say, are quite well covered by equity. Equity goes up compared to Q2 last year, but this goes down against Q1, and that is due to the fact that we paid SEK 105.6 million in dividends to the shareholders in May, in the second quarter. That's it that I have. Yes. Questions. All right. We actually have a whole bunch of questions. All right. I'll kick off here from the screen. What is the next plan for PDX? Will you continue the strategy game path or are you thinking about something new? Well, I would say we have increased over the past year our focus on strategy and management games, which really are our core games. This is both about making sure that we invest everything we can into the games that are live, that are super important and continue to grow over time, and also look at what's next for a franchise, like for instance, Victoria 3. We intend to continue on this path as this is the games that we know well. On top of this, we're also venturing out to slightly less proven worlds, like Bloodlines is an example of that, for instance, and that's also important to us to grow. Really the key focus is on our core. Alex, this one we almost answered, but SEK 42 million is a very large or quite large write-off. The game asset belongs to you, but written down to zero and work stopped at the external studio. How long in development? A strategy management game or another genre? It was an external studio. The game, as Ebba mentioned, looked good at early stages. I think we have gone through this before. Normally we divide our development into different phases. We, of course, aim to decide early on, before we have spent too much money and too much resources on the game, if we should take it over the finish line or cancel it. This we decided kind of early on, this looks good. Let's continue. At a later stage, we decided that now we think it's better, even though SEK 42 million is a lot, it's better to stop the development and reallocate further investments into other games. It's an external studio. They have stopped working on the game, of course. We haven't said anything about the game. We can say we primarily work on our own IPs. It's a fairly safe bet to think that we own the IP, right? Yeah. I think also, we will see when we cancel games, as CapEx is growing. Yeah. Those amounts are also going up. It's, I would say, more relevant to look at the percentage than the number itself over time. Yeah. If we went back and looked at this, I think it's around 1.5%-2% every quarter of the capitalized development on average that we write down. This will fluctuate, of course. This time it was exceptionally high. Last Q2, it was exceptionally low. Yeah. All right. There's a question on productivity and work from home. What would be a normal amount of content for the current size of the group annually, for example, DLCs annually? It's very hard to say that there's a normal amount. Of course, as we are growing, our intention and ambition is to also grow, but it's not necessarily growing the amount. It can also be the size of what we put out or what we release. It's not only about the amount. There's a follow-up question here. Is there a growing backlog of nearly finished content that you can't quite get ready, or are the staff producing content more slowly? When do you think it will be back to normal? I think it's just really clear that making games is a group activity, and it's very dependent on a lot of feedback loops and a lot of discussions in the teams, and that takes more time when everything is a meeting and everything has to be scheduled and everything has to be a call. It's more of the latter, so that it's actually a slower process than that. That would be it. We are aiming to slowly start going back. Some of our studios are actually almost back already, but most of them aren't. The intent is to do this throughout the fall. I don't think it's not going to be a one-date switch, which means that progressively we will get to a better stage here during the fall is the intention. Of course, we don't know what will happen with the pandemic, but that's definitely the intention. All right, next question. Just let me see here. What are your thoughts about your opportunities for growth in China, given the past week's reports? How will it impact you, Alex, maybe? Yeah, I think they refer to a statement that first went up saying that certain types of games is similar like drugs or something like that. That statement was taken down within a day or so. China and Asia is a very interesting market for us. It's a fast-growing market for everyone. For us, our biggest markets are still by quite far North America and Europe. China is getting there. In Q1, we had a lot of sales in especially China because we had the Lunar New Year. Yeah. Where we did a lot of promotions. We can't speculate in what kind of regulations is going to come, but it's a fast-growing market, and of course, with that, there will be regulations a bit, I'm sure. I think it's going to continue to be an interesting market for us for many years. What are the key factors projects that PDX is looking for right now? I think I almost answered it before, but we are very much into our core, which is strategy and management games, and that's primarily where we look. Then we have this unproven track where we also have interesting initiatives. The unproven is really about identifying what could become our next proven thing. That's how we work. A common critique you get is that your DLCs for any given game amounts to quite a bit of money, which might scare some potential customers not getting to even try our fantastic games. Are you looking on or into other types of pricing? We are actually. Do you want to- Yeah. We've done a lot of things here. Yeah. Sure, if you're going to go out and buy the base game and all expansions from start, yes, it's a fairly big chunk of money. A good thing with that setup is that you can start off by buying the base game. Playing it for free in a lot of cases. Playing it for free in a lot of cases. We have done that with CK2, where there we have the base game for free. We participate in subscription services like Game Pass for a lot of our games. Game Pass, we have quite a lot there. What else? We have the Humble Bundle, one of our distribution partner. Yeah, they do a lot of group. Also Steam sales, of course, are great. The other thing that we are doing with two of our games, and I think we will continue to do it more, is that you can subscribe to all of the DLCs and expansions. For CK2, you can play the base game for free, and then you can subscribe. I think it's SEK 5 a month or something. Yes. You can play it all. We are definitely playing around with different alternatives to get into this, and it is also a lot about packaging and how you present the DLC. If you are only interested in playing in one way, which DLC should you go for, et cetera. How do you ensure an equitable workplace culture at Paradox? This is a very interesting question, and I think it has been a hot topic throughout the summer in our industry. I believe very much, or we believe very much in a fair and inclusive workplace. To me, that also boils down to the culture in the company, what type of culture we have. We work very hard on this, and while we have studios in several different locations that might differ a lot, we all unite over this inclusiveness and respect for others. We are by no means perfect, and I don't think anyone should ever claim that they're perfect because that's when you run into problems. This is something we work on every day, and we also need to continue to work on every day. We have all the policies and the tools that we think are good with education for managers and other types of educational opportunities for our colleagues, but also things like policies around anti-harassment and equality, et cetera. A lot of different paths into this, but I have to say, I think the main important thing is to continuously, every single day, work with the culture in the group as a whole. Especially when you grow as much as we've done over the years, this becomes increasingly important, I think, because once you start going down the wrong path, it's a big job to get it back to a good state. Yeah, we work a lot with this. Will continue to do so. Is CK3 just cannibalizing on the revenue from CK2, or did it actually improve the revenue? Do you know? If the question is what happened with the CK franchise revenue, when we added CK3, did the revenue go up or did it just go up as much as the revenue from CK2 went down? We don't disclose that, I think that the assumptions or the conclusions you can draw from, for example, the Q3 revenues. Q2. No, I mean Q3 last year. Last year. Okay, sorry. Especially from last quarter, it's easy to see that it should go up. If you have had a game like CK2, I think it had been live for eight and a half years or something like that. Of course, the revenues are still important at that stage. If you can come out with a new game on the same franchise that the player group has been waiting for some time, and it's a good game, it's going to have a significant sale impact, of course. Since you cancel projects fairly regularly, do you ever pick up some of these projects later from the pile? At times we have, if it was an external studio working on it, the external studio has continued to work on it. It is quite hard to just leave all the code and then come back to it later. We have one example of Bloodlines where we've actually switched studios, which is a big endeavor to do. That's, I would say, a more likely outcome. Then it's not a question of a cancellation, it's more a question of a switching of studio. I think there has also been the other way, where we have canceled the project, but then later on picked up the same idea. Yes, that happens a lot. For example, with a different studio because for different reasons. That happens a lot. I've said this before as well, a lot of the times, the reason for the cancellation is not that the idea is bad, it's just that for some reason, it's not working out in the way that we intended to. We do keep the ideas and rework them. Are you able to discuss the average development cost or budget for your games? How expensive is it to develop a game at PDX, and how does this cost look like after the release, Alex? We don't disclose the cost per title. You can get some view watching how much we have written down this quarter. It was one game that was not completed, of course, that was somewhere in between, and that was SEK 42 million, and that's all development cost. You can expect it, at least for that game, to be a bit more than that. It takes three, four years to make a game, a complete new game. The big chunk of the development cost is spent up to the release of the base game. After that, to continue to come out with content requires a bit less. For the same kind of money, you can continue for many, many years than to support the game. I noticed that we have a lot of questions here. Okay. I'm going to run through. All right. What measures are you taking to improve quality of your games? It's not a one-size-fits-all. It depends on the game and it depends on the studio. All of the studios are continuously working on this. It's also about management, what the expectation is from the fan base, right? It's also about making sure that fans know what's going to come, so it's not a huge disappointment. All of this is really continuous work. Of course, the aim is never to release something that people don't like. It's something that we work hard to avoid, and we will continue for all time to work hard on to avoid it. How is Paradox working with accessibility in games? Is it possible to implement some sort of colorblind mode option in the settings? Well, we always also try to work with accessibility. I don't know specifically around colorblind mode, but I can say that we're working with both the AbleGamers and SpecialEffect, which are two charities that work with us as developers to help us see what's good to implement in a game for accessibility, but also they actually build tools that help with accessibility. Very good. Very great organizations, I must say. Are we looking to open more studios in the future, Alex? Maybe. Maybe. Maybe we could. Maybe we could do that. I think I saw one of those questions. I think it came to the mail. Where are we looking to open studios? I think the answer there is wherever we can find the right talent. That is a reason, for example, why we choose Barcelona for opening Tinto. We consider that to be a good pool for the talent we are looking for. Bloodlines 2, any news? We don't have anything more to share at this point. It won't be released this year, as we have said, but the project is moving along with our new partner. As soon as we have something to say, we will. We promise. How involved are testers in PDX game development process? Do you run a lot of internal tests? Yes- Yeah. is the short answer. Yeah. A lot. Yeah. We have QA testers that are embedded in the development teams. We have external QA as well. We do the peer kind of reviewing as well with internal teams. One game team will look at another team's game and come with the suggestion. At certain key gates. Mm-hmm. Also we have a lot of fans who test the games. Yes. Some beta test and stuff. If you're interested in that, you can actually sign up on our site for that. All right. Are you planning on doing subscription services, which includes all of our games? Currently, that's very difficult from a technical point of view. I think it's interesting, so it's definitely something we're looking into, and also because we like the results that we have from the subscriptions, but we're not quite there yet. Alex, this is for you. Additional overhead with additional headcount. Did Paradox counter that by shedding CapEx assets? I don't quite understand. Did Paradox counter that by shedding CapEx assets? I don't know exactly what that means. If we look at the increase from, what was it, 534 to 715, I think 75% of that is studio personnel. At least 75% is studio personnel. That is development staff. That doesn't have a big impact on the cost because if they work with game development, as they do, it's being capitalized and becomes an asset until we decide to release the game. Maybe that was the question. Have we acquired any foreign capital during the last quarter to basically hedge FX? No. We accept this. This is the reality that at the end of the day, we could hedge, but at the end of the day, the movement in FX are going to be what they are. If COVID returns and the development of your games slow in, as you've mentioned was a factor for this Q2, how will you tackle it? Earlier releases, more sales weekends? A very good question that we're talking about a lot right now because we don't know what's going to happen in the fall. I think we have learned so much about how to work in a distributed manner. It's fair to also mention that we have some teams that always work in a distributed manner. It does depend on the team size, and I think it also very much depends on where in the process of a game development you are, where if you're very late in the process and are mainly working on bug fixes, for instance, it was very clear in the case of CK3 that that team worked like magic up until the release on CK3 because everyone knew what they were doing. It's more in the whole creative process. I think we have to look at much more interactive virtual work rooms and things like that. We're also gathering all the learnings we have from this year and a half on what has worked and what has maybe not worked, and how can we help the teams going forward. Especially to be clear that we want to make sure that we remember the learnings from this. Now, it's been 46 minutes, and we only have one more question. That is Tencent still holding shares at Paradox? Yes, they are. They own 5%, right? Yeah. They are a silent owner, I would say. They are very helpful if we have any questions around things that they know. They own parts of so many companies throughout the world, so it's a very strong network of gaming companies. They tend to stay out of our business and what we do at Paradox, I think is the short answer to that. Yeah. Yeah. That was a lot of information and a lot of questions. Very happy to see so many questions. Yeah. Fantastic. It's always fun. Thank you so much for tuning in. We will see you at our next quarterly report, which I believe is on the November 1 6th. It is. November 16th. That will be the Q3 report. See you then. Thank you. Thank you. See you. Bye. Have a nice day. Bye.