Embracer Group AB (publ) (EMBRACB) Earnings Call Transcript & Summary

Hello, and welcome, everyone, to Embracer's Annual General Meeting 2023. My name is Erik Larsson. I'm an Equity Research Analyst at SEB, and I will be the moderator this afternoon. Also, of course, a very special welcome to everyone here attending physically to the sunny and beautiful city of Karlstad, hometown of Embracer, but also my hometown. So I'm very excited to be here as well. Anyways, as for the agenda, I will hand over to Kicki Wallje-Lund here in just a second, Chair of the Board, which will be followed by presentations of Embracer, including deep dives of coffee stain and gunfire games as well as the market insights before we circle back to me for some Q&A. So with that said, I'll leave the floor over to you, Kicki.

Well, I also, of course, would like on behalf of the Board, welcome all of you to Embrace's 2023 Annual General Meeting. And I also would like to welcome everyone that participate via the web today. And with that, I want to declare the Annual General Meeting of Embracer Group, opened. But before we start, we are having a question. The Board of Directors propose that the meeting is to be held in English so that everyone can understand what would be said here today. And I'm wondering if we're all okay with that. Great. Thank you. Also, what could be good to know that we will have a public Q&A session during the presentation of the business activities later on. But in this Q&A session will only be opened during the presentation of the business. Now it has been a year of extraordinary and unexpected turns since we last met. This is true on a global level, but also for Embracer. As a company, we have improved on outstanding on several fronts. But we have also had to navigate the most challenging period in the history of Embracer. True to the restructuring commitments we made back in June, we are becoming a leaner, more efficient company and focused creating worldwide world-class entertainment for our customers and lasting value for our investors, who like many of you here today, have been very loyal and stuck with us through good and less good times. I know that while hard the steps we have taken and difficult decisions we have made during the past few months will ultimately build trust in our community. They will strengthen our position as a leader in the gaming and entertainment industry. And they will lead us to a better future together. At the same time, there is so much instability in our world from rising interest rates to continued Russian aggression in Ukraine. I'm reminded of a line from Lords of the Rings, when Frodo expresses his concern to Gandalf about the Quest and how he wishes none of it would have happened. Gandalf tells Frodo, "So the all who live to see such times, but that is not for them to decide. All we have to decide is what to do with the time that is given us. " And that is a statement of trust and belief both in the shared vision and in the power of working together to achieve a mission. As Chair of the Board, I have the privilege of working with the exceptional artists, storytellers and creators in our Embracer family all over the world and see the trust and belief in action. In my conversations over the last or the past several months with many, many embracer team members. I have been inspired a lot by their confidence and commitment to the results we have achieved so far. They believe, as does Embrace's Board and the leadership team in the remarkable company we have built in the unique Embracer model that has attracted so many industry-leading entrepreneurs and in our future and what we're going to accomplish. I have been with Embracer for 7 years now, and I believe now more than ever in what Lars said in 2016 that the best is yet to come. In my heart, I know that is true, and I look forward to helping deliver on that promise. Now market analysts report that the worldwide entertainment sector is expected to continue growing, and consumer spending will increase to more than USD 900 billion in 2027. And according to data recently released on two of our key markets, 53% of Europeans and 65% of Americans play video games, and if we just think about that for a second, this is a major point that is easy to miss in big numbers. While it is a testament to our innovation and creativity that we currently have scores of millions of players around the world. We are just now starting to tap into the total addressable market. And according to Embracer's internal data our game have long tails that lead to incredible retention rates. Speaking plainly, when someone starts playing our games, we know many stick with them and continue to purchase our content well after launch. So this is an exciting time for our industry. There are advancements in tech, yes, of course, including AI that years ago could not have been imagined. At Embracer we do not see these steps forward as the threats to jobs. Rather they create efficiencies that let our artists do what they love, much faster and better. However, if one were to look only at our games, they would get an incomplete picture of our full embracer potential because the transmedia strategy that you have heard us speak about before, now starting to take root and began to bear fruit. What we have worked so hard to achieve is now tangible. A movie goer who enjoy the film adaptation of a video game IP can now become immersed in the video game itself. They can then go deeper into the world with a graphic novel or listen to podcast about the low. If they love the graphic novel or the concept, they can play a board game based on the IP, and then they can purchase the shirt to show the pride to the world about their new passion. This is the holistic experience we are driving towards. Embracer companies working together to maximize our IP and create an integrated experience for fans is real and starting to happen. All of this taking place, while Embracer works nonstop to refine and improve our governance and sustainability standards. This will ensure transparency and meet the requirements of being a publicly traded company. Our uplisting to Nasdaq Stockholm this past December was a great moment for Embracer. As part of the main market, Embracer has a future of greater visibility liquidity and access to capital markets, which can benefit all of us. To conclude, no doubt, it has been a challenging year. But it has also been one of tremendous effort filled with great games created by extremely talented people. Our focus moving ahead is, of course, to build on that. We are taking the needed actions that will let us improve our financial and operational performance. So they are in line with our restructuring program targets. The tough decisions we make today will make us stronger as a company in the long term. I would be remiss if I closed without expressing thanks to our investors who have stuck with us, our gaming community that support us and to our Embracer team members who make all this possible and believe in our future. True to our Swedish values roads, Embracer continues to be humble in success, steadfast in adversity and loyal to those with we work with so closely, thank you. Now next item on the agenda. We will now appoint who -- [indiscernible] -- we will now appoint who will act as a share at today's Annual General Meeting. And the Nomination Committee has proposed that I am elected chair of the meeting, which has also been published in the notice on the 22nd of August. So do we have any other proposals? No? Can we elect me to the Chair of today's meeting then. [Voting]

Thank you. As a clear, yes, No, sorry, here. Thank you for the confidence. I have this wonderful schedule here what to say, and I sort of jumped over sentence. Now due to, amongst other things, including the webcast, there are several unregistered shareholders here and guests at the premises and participating remotely as well. Can we invite this to attend this meeting. [Voting]

Good. I also would like to point out that in addition to the company's representatives and the auditor, only shareholders who are here in person, by proxy or cast their vote in advance and are entered into the share registered for the meeting, the representatives and assistants who have registered for the meeting have the right to speak, vote and give proposals at the meeting. During the Q&A, we will, however, allow everyone present at the meeting and remotely to be asked -- to be able to ask questions. Can we agree on that? [Voting]

That was a very long sentence. You have written from me. I have, of course, asked Ian that is Embracer's Chief of Staff and General Counsel to keep minutes from the meeting -- from this meeting. I also would like to inform you about which board members are here today. In addition to myself, we have Jacob Jonmyren here, as you have probably met many times now. We have Cecilia Driving here as well and of course, Lars. The company's auditor, EY, is also present through the company's main responsible auditor, Johan Eklund also -- there you are. And we also have the Nomination Committee's Chair Per Fredriksson here as well Henrik Olsson from the Nomination Committee in the middle here somewhere. Yes. Now we have come to the item #3 on the agenda, and that is preparation and approval of the voting list, so I will hand over to you, Ian.

Thank you, Kicki. We have ticked off everyone that has passed into the room here today, and we have also received advanced votes, which are included in the voting list. And everyone included in the voting list has notified the company in accordance with instructions in the notice for the general meeting as well as being registered as a shareholder on the record date in the share register for the meeting. So to sum up the final result of all -- everyone present here today and advanced vote that has been cast. We have -- my tongue needs to -- one second, 52,260,204 A shares presented here today, which corresponds to [ 522,640 ] million votes. And we have 604,06-sorry, [ 640,102,459 ] B shares, which corresponds to the same number of votes. In total, we then have [ 600,566,263 ] million shares present, a lot of sixes as you can hear. And in total, we have [ 1,127,400,499 ] votes present here. All of this represents -- the total of the shares, we have 49.04% of the shares in the company present here today. And we have 58.08% of the votes present here today of all the shares and votes in the company.

Thank you. Can we approve the voting list? [Voting]

You would remember the numbers by heart. Okay. We have now come to Item #4 on the agenda, where we will appoint 1 or 2 persons to certify the minutes. And I'm wondering if we have any suggestions.

[indiscernible]

[indiscernible] Okay. Are there any more suggestions? [Voting]

Okay. I find it's not. Can the Annual General meeting result appoint one person to certify the minutes. Then I have to ask Carl, I think I've seen Carl. Would you be prepared to verify the minutes? And will you be around after the minutes that we can sign? After the minutes, you would be around, thank you. Okay. #5 on the agenda, a question whether the meeting has been duly convened. Yoan, could you please inform the meeting regarding the notice to the Annual Meeting?

Yes. Thank you. So the notice has been published on the company's website on the 22nd of August, and at the same time or rather 2 days later, on the 24th of August, the notice was also published in the Swedish Official Gazzet, Post- och Inrikes Tidningar, in Swedish and in -- and at the same time, a notice in Svenska Dagbladet was published as well notifying all shareholders about the meeting. And all of this has been done within the time stipulated in the Articles of Association, which is no earlier than 6 weeks prior to the meeting and no later than 4 weeks prior to the meeting. Sort of pre-requisite for correct convened meeting is there.

Does the meeting consider that the meeting has been duly convened? [Voting]

Good. Thank you. Now we come to the item #6 on the agenda, that is approval of the same -- and the proposal for the agenda have been announced in the notice and distributed to the participants at the meeting here today as well. Can we resolve to determine the proposed agenda. [Voting]

Good. Thank you. I find that the agenda has been approved. Now it's time for the more exciting part of the AGM and that is the presentation of the operations within the group. And I would like to ask our CEO, Lars Wingefors, to take the stage and start the presentation. And also Yoan will join us later.

Thank you, Kicki, and hello, everyone. I guess I will borrow that box. So great to be here in Karlstad, Varmland for another Annual General Meeting and happy to present what now seems a long ago the financial year of '22, '23. First of all, I just would like to take a moment to reflect on what we have built at Embracer. Today, we consist of 12 operating groups, well above 100 game development studios and more than 800 IPs. With a business that is well diversified between 4 operating segments. I firmly believe that our decentralized model that empowering entrepreneurs, creators and our great people is the best model to drive long-term profitable growth in a highly creative industry. Now looking into the highlights of the year. And as we close the books of fiscal year '22, '23, we can conclude that it has been a challenging year. Characterized by a weaker consumer market, but also for Embracer's specifically, game delays and a high-profile deal that did not materialize. The financial and operational development was solid in absolute terms during the year. Net sales grew 121% year-over-year to SEK 37.7 billion, with a 2% organic growth. Adjusted EBIT grew 43% year-over-year to SEK 6.4 billion, corresponding to a margin of approximately 17%. Adjusted earnings per share increased to around SEK 4 from SEK 3.50 in the prior year. The strong earnings development was primarily driven by the addition of our Tabletop Games operating segment, Asmodee and solid earnings performance for Mobile Games. At the same time, the results are not nearly as strong as we expected heading into the year. This is largely due to PC/Console games operating segment, which saw a solid organic growth, but notably lower margins year-over-year due to pipeline shifts, elect lost a reception for certain releases and a weaker consumer purchasing power. It has, however, also been a year in which we have reaching several notable milestones, including the transition to IFRS and segment reporting. The listing change to main market as Nasdaq Stockholm as well as setting our first group sustainability targets. Looking at game titles, our top revenue drivers in PC/Console segment during the year were Saints Row, Valheim, Goat Simulator 3, Deep Rock Galactic and Star Trek online. On the Mobile Game side, the top titles were Blockudoku, Sudoku.com, Jigsaw Puzzle, Art Puzzle and Nonogram. And when I asked or when we asked our operating groups, if there is -- if they have some interesting data to share, which is not purely financial, as such, we got a lot of data, the past days here. But on this slide, and I won't talk you through all that data, but I would like to show that the diversity of the group and that we have millions and millions of consumers enjoying our products every day. And this is some numbers I think it's worthwhile reflecting on if you take a longer perspective. For example, within as for the -- there is more than 50 million Board and Trading Card Games sold from their business every year or last year. Or from Dark Horse comics, they have the #1 manga series comic in the American market, berserk or the amount of minutes people have spent in satisfactory 19 billion minutes or the amount of years people have been spending in Easybrain games, 1.5 million years or also from Easybrain customers are finishing 100 million levels every day -- also encouraging to see that there's as many male and female, enjoying our products across the world. And in a few hours, we are publishing together with the developer, Starbreeze a new title, Payday 3. But we got the data there is actually already 76 million enemies killed in that game. On this slide, the year in brief, you can see some highlights. In the quarters of the year, both in terms of M&A and Operationally, and I won't take you through all this. But just to highlight something, I think the acquisitions of Middle Earth enterprises and Crystal Dynamics - Eidos, has rendered a great excitement within the group and enabled notable partnership opportunities. Both has delivered ahead of their respective business plans at the time of acquisition. Apart from those 2 businesses, we have also acquired some incredible companies such as Limited Run Games and Tripwire that we feel confident will deliver great value in the years ahead. After reaching many operation and regulatory milestones during the year, and following that one major strategic partnership that did not materialize, we also initiated a restructuring program after year-end. And I will talk more about that very soon. Also to give some perspective, I think it's worth seeing the development of Embracer since the IPO 2016. During the past years, Embracer has invested significantly both in acquisitions and into the strategy of accelerated organic growth. We have acquired some of the world-leading entertainment IPs. Through our transmedia strategy, we strive to build an even stronger ecosystem based on diversify -- diversified IP portfolio with an opportunity to cross fertilize IPs and strengthen licensing partnerships across gaming categories different content formats and platforms. I am proud of what we have built over the past years, and I'm happy to see the positive reception for titles such as Dead Island 2 and Remnant II in our PC/Console game segment at the start of the current financial year. We have a business that is well diversified between 4 operating segments, and we have invested into one of the largest pipelines across the industry. We are now a full-scale gaming and entertainment company. Looking ahead, we remain focused on executing on our games pipeline, partnership approach and efficiency improvement initiatives. I'm confident that Embracer will come out stronger. As you all remember and noticed and following our Q4 report on 13th of June, we presented a comprehensive restructuring program. The objective of the restructuring program is to deliver a set of operational and financial measures to increase cash conversion, improve efficiency and reduce CapEx. The initiatives under the program can be grouped under 3 main focus areas: CapEx and OpEx savings, capital allocation and efficiency improvements, which will be delivered in phases. As difficult as some of the decisions that we will take will be, we are confident that we will emerge as a stronger, more efficient company, setting out on a stable future to build even greater value across many studios and uniquely diversified portfolio of IPs. In the 3 months since the announcement, the targets announced have been translated into action. We aim to deliver savings of at least SEK 2.9 billion in CapEx, and at least SEK 0.8 billion in overheads on a full year basis by fiscal year '24, '25. The outcome of the program is expected to nearly half the opening net debt position reaching SEK 8 billion at the end of the current fiscal year. Today, we are in the middle of the implementation of this program, and there is a lot of different work streams and actions across all areas happening. We are confident and determined to deliver on the goals we set out by the end of the fiscal year. With that said, I would like to hand over to Johan.

Thank you, Lars. Always a pleasure. So let us have a look at the financials for fiscal year ending March 2023. The growth journey continued during the year with sales reaching approximately SEK 38 billion for the year. Growth was driven by full year contribution from acquisitions made late in the previous year, mainly Asmodee and Arkos. It was further fueled by acquisitions made during the year, mainly through Crystal Dynamics - Eidos, Middle-earth Enterprises and Tripwire. The EBIT margin reached 17% for the full year, which is lower than previous years and mainly explained by M&A activity, product mix shifts and also a soft performance within the PC/Console segment due to lower ROI on release titles as well as delays. Worth pointing out is that there were key additions to our IP portfolio during the year, where Lord of the Rings and Tomb Raidar stands out. These fantastic IPs strengthen our overall IP portfolio and provides increased opportunities for the future. Turning to our balance sheet as per 31st of March 2023. It's worth noting that we have invested approximately SEK 11.4 billion into our games pipeline. Of this, SEK 9.3 billion is investments into ongoing game development projects. When our pipeline matures and games are released, we expect this to be a driver of future cash flows and profits. Approximately SEK 3 billion were invested in net working capital at the end of the year. This corresponds to roughly 8% of annualized net sales. If you look at the right-hand side, we have SEK 82 billion invested in acquisition-related intangible assets, such as goodwill and IP rights. These have been financed predominantly with equity but also bank loans and provisions for earnouts. And looking at the provisions for additional considerations, approximately SEK 8.5 billion is expected to be settled in cash in the future if certain operational and financial targets, format. If you look at our cash flow for the year, free cash flow was negative SEK 39 million for the year. The main reason for the negative cash flow is the continued high level of investments into our games portfolio. During the year, net investments into games CapEx was SEK 5.6 billion. We also had a large increase in working capital during the year, SEK 2.1 billion. This is mainly related to the buildup of excess inventory at Asmodee, also an increased number of co-publishing and co-development projects with new projects weighted towards the end of the year and a reduction in prepaid income related to a large game release. Looking at the M&A and financial cash flows, they are a negative SEK 1.6 billion as more cash was invested into M&A than was raised through equity and loan net on a net basis. If you look at operational growth and investment growth, the high level of investments also shows in the operational KPIs on the left-hand side. The number of studios increased during the year from 118 to 138. The overall head count increased during the year, reaching more than 16,500 people at year-end. Number of ongoing development projects remained fairly constant at around 220 projects. Over the last years, we have invested 2 to 3x more than what has been completed, thereby growing the value of our games portfolio, setting the stage for future profitable growth. It's also worth noting that there is a significant increase in completed games in the year compared to prior years, and the key driver for this is the release of Saints Row. Saints Row had an ROI below expectations for the year. With that, Oscar.

Thank you, Johan. The mic is working. Good. So -- we are -- I'm happy to see so many shareholders here. And as Johan also noted, with a lot of the shares here today. And I thought this would be a good opportunity to also discuss the share development and with the shareholders, which we don't do that often. So we'll take you through just a few slides on that. So looking at the share price development and also the volume traded. You can see that from a stock market perspective, it has been quite a journey. Over the past 7 years with both ups and downs. The past year, as you know, has been a very humbling one from a stock market perspective, with the shares down around 58% in the past year. As you all know as well and as Lars and Johan have discussed today, it's been a year characterized by a weaker consumer market as well as increased cost of capital. And for us specifically, we've also seen, as Johan said, a mixed reception for some of our key titles and notable game delays. These factors have impacted our earnings and our cash flow during the year as well as, of course, our share price development. Taking a longer-term perspective, which I think is worthwhile doing, of course. You can see that our share price since the IPO is up close to 700%. So that's a longer-term perspective. Of course, as you can also see on the next slide, we'll go through our shareholders. But I think partly looking at the right graph, partly as a result of the trends here in the financial markets and for us, you can see that the active fund ownership has decreased in the past few years, while the passive fund ownership has increased, which is likely a result of both our growth in recent years as well as our uplifting to Nasdaq main market in Stockholm. Looking a little bit closer at our shareholders and some interesting facts on our shareholders. You can here see a distribution of our known shareholders by each category, in this bell curve like graph. An interesting point on this graph, which I think is quite fun, is that we do actually have 8 shareholders between the ages of 101 and 200. So I'm not sure if any of those are here today, but please let me know. Looking also at the number of known shareholders, very humble, of course, to see the strong development in recent years, also, of course, focused on delivering shareholder returns, in the coming years. Our focus is on maximizing long-term shareholder value for all shareholders. As you know, we are a company that is run by entrepreneurs and also partly owned by entrepreneurs, and I think we all truly believe that we have great assets and IP within Embracer and our aim is, of course, to demonstrate the earnings and cash flow power of those assets over time. And with that, I'll leave it over to Emma, I believe.

Thank you very much. I think my slides will be a bit less dramatic. My name is Emma Ihre, and I'm Head of Sustainability at Embracer Group, working together with Karin Edner Karlsson and the rest of the team. So to put it short, our sustainability work is about acting in line with our values and creating long-term value to our stakeholders. And why is this so important for us to create that value and to act in line with our values. It is important because we are human beings running this company and human beings responsible for doing what's in our power to support or to help the world in the right direction. And I personally think it's never been more important to do everything in our power to do what we can do to support the world in the right direction. And the same holds for all companies for Embracer and that is very, very important. But as well, our sustainability work is about risk management and business development. So it's about value, it's about risk management and its business development. And some of our most material issues of doing that is diversity and inclusion among our employees is diversity and inclusion in games and entertainment. It's the well-being of our employees and it is to make games and entertainment accessible for all regardless of abilities. So that's some of our most material issues. And some highlights from the year that passed, our Board of Directors have set 3 sustainability goals for the whole group, which I know, Lars you already mentioned that. And the first goal is about diversity, inclusion and leadership to double the number of females studio heads. That's one way of working on diversity and inclusion. The second goal is about reducing our climate footprint and we signed up 2 science-based target, and the third goal is to use our decentralized business model to promote sustainability in all markets and in all segments. So we work the same way with sustainability as with everything else with you. As well, we have improved some of our ESG or sustainability ratings. We have a great focus on team development and leadership. We do this annual survey for all our employees. But then you have to do something with the result and now we're putting lots of effort on developing our teams and supporting them with leadership coaching. And as well, we have supported the people affected by the war in Ukraine or Russia's second or escalated invasion of Ukraine, so which try to do our best to support everyone affected. So what's the focus for this financial year because we actually already started the next year. The focus now is integration and collaboration, to integrate sustainability in everything we do in the company within the group, but as well collaborate with the rest of the industry and to collaborate with great NGOs like Women in Games, Global Compact and other NGOs and partnership we have. We will also focus on implementation our Board of Directors have set ambitious sustainability goals, and we have great policies in place. But now we kind of put lots of effort in the implementation and monitoring that we are on the right track, and as well as readiness work for new laws and regulations regarding external reporting and due diligence or risk analysis. And like I think most of you know, there are many new laws about reporting external reporting and especially in the area of ESG or sustainability and as well that we have to do a risk analysis of our whole value chain. So that's going to take much of our time. And I'm going to end with these slides, but you know where to find us, you know where we live. And if you have questions, feedback, comments, please contact me or any of my colleagues, thank you. And I don't know who's next on stage, but it's, of course, Lars.

Thank you so much, Emma. Now, I would like to welcome Chris, that we have online here from, I guess, London. Welcome, Chris.

Lars, can you hear me?

I hear you well.

Sorry, I can't be there in person.

So we would like to hear a bit more about the gaming and entertainment market. So I guess you're ready to share some more data.

Absolutely. First of all, pleasure to join you. Good afternoon, everyone. We're going to take a look at the both the market performance and the market trends in the Video Games and the Tabletop market. But let's start with Video Games. Okay. So I like this chart. This basically gives the market some perspective over a number of years, and it shows that the market trend line is very good. We see this shows the market, including all 3 sectors, Console, PC and Mobile in billions of dollars globally. And it shows from 2019 to 2026, the market trend line has generally -- has been positive. Next. The data this year shows that in 2023, the market is expected to grow by about 3% which I think is generally pretty good considering the challenged macroeconomic environment. And there's also well up next. It's also well up on the COVID peak, which happened in 2021. And it just shows a perspective that now we've got through, there's a certain normalization going on now, now where we can look at normal years after the 2 peak years. And if we look at the bottom there, the average CAGR is showing about 6% over the period from 2019 to 2026. So overall, I think the market is in good shape. This kind of trend line is as seen by other analysts as well, not just news who show us this data. And if we put some perspective on it from a real world, company public quarterly reporting. We also see that the most companies that are showing their reports are doing -- showing year-on-year revenue growth as well. And in terms of their releases, a lot of companies, a lot of major releases now are breaking records and selling more than previous versions. So what's driving this? Well, first of all, we have a better comparable period now. Now we're over the hump that was the COVID peak in 2021. There's more consoles available and more bigger games coming out, a lot of them delayed from the COVID period. And of course, there's more people game -- playing games than ever before, and we'll look a little bit more of that at a later time. One thing I do get asked a lot is what are the effects of the spending squeeze, how it's affecting games. It's hard to say, of course, no one knows for sure, but so far, so okay. I think there's certainly evidence that the gaming has -- as in the past, in previous recessions is not so affected by tough times as other categories. I think gaming is generally perceived as a good value for money. And of course, there are many different ways and levels of playing and paying you, can buy some content for GBP 1 or GBP 50. Of course, furthermore, during tight spending times, people are going to spend more time at home, which is beneficial for games. Next. Okay. So now we're going to look at the key market trends. The first trend, we're noticing is that F1's playing games and basically, it's permeating the mainstream. And there's evidence of that from the recent Mario movie, which is currently #2 in the box office ranking so far this year, second only to Barbie. And of course, many other IPs have had great success. HBO -- we've had great success with Last of Us, which broke some records. We still also point out that Embracer have their own Borderlands movie coming out following the Gearbox IP. That's out next year. So there are more people playing there ever before. The player numbers continues to grow. Next, there are currently 3.4 billion playing about 43% of the world, which is up 6% year-on-year. But of course, that means great opportunity. That means there's another 57% of people haven't played, this highlights a point that Kicki mentioned where there are more people playing, but there's still opportunity for many more people to play as well. Another key trend is that the vast majority of revenue is now coming from in-game sales. Now this is relevant for publishers from a couple of points of view. First of all, it enables them to elongate their revenues and timelines that people are playing games, but it also makes games more profitable compared to, say, a business model while you're selling it in box forms. What it does mean is that there are fewer big games generally though, as people focus on existing IPs and also extending the life of their IPs via in-game services. This, of course, is an opportunity. But it does mean that with fewer games, the release schedule can be a little bit patchy from time to time. So I would advise when looking at market data that people should not look at one month on its own, we should look over a longer period. It seems that older games are taking increasing share of the market. There are some surveys I saw in the U.S. and U.K., which showed the gamers in their 30s and 40s were actually playing more regularly than the younger gamers, which was quite surprising. And this is relevant for the gamers' publishers because older gamers generally will have higher income and also and that they will spend more. And there's another study in the same territory where we saw that 50-plus gamers were actually accounting for nearly 1/4 of all gaming spend. What does this mean for games? Well, it means that the older games like retro games, rereleased IPs and sequels will, of course, do well. And as we see it's an opportunity for IP to extend its play. It seems that IP is a kind of a common theme here as through transmedia into the movies, et cetera, and also IPs can be leveraged now across many different platforms, whether you have a console game you put to mobile or mobile to PC or vice versa, et cetera. Next. We're just going to take a quick dive into the main segment, starting with PC and console. The largest -- this is the largest sector for -- sorry, the largest market -- sorry, next slide, please. Is if you look at it geographically, the PC and Console is largest in U.S. and Europe. It makes up about 2/3 with the #2 sector being Asia Pacific making up 1/3. And this, of course, is where Embrace's presence is strongest. Moving on to Console. Console is having a great time at the moment. Thanks lastly to next-gen Consoles. Console is the fastest-growing sector. News here report about plus 7% year-on-year growth, consistent with other analysts as well. Next. And we see in the chart here that Sony announced that PS5 in the first 2.5 years, people are spending about 30% more than they did on PS4 over the previous years, and they're doing that because, of course, it's digitally connected and it's easier to buy digital content than it is boxed content. PS5 is also having success through the console sales with free supply and our console sales have over doubled in the U.S. and Europe in the first half of the year, and that, of course, will have benefits for software companies. So the PC market is very steady. We have an expression in England called Steady Eddie, and that's what the PC sector is. It, of course, doesn't suffer from the peaks and troughs that the console cycles come from. It's just very steady. And largely, thanks as well to the large number of PC hardware that's been put into homes post-pandemic and during the pandemic, thanks to due to home schooling and home working, et cetera. Of course, the market is split into 2, the free-to-play sector has had some headwinds in China with the Chinese approval slowing down. But the premium sector is the star of the show, the premium full game sector has been seeing consistent growth over a 5-year period and that has been evident by games like Diablo, the recent game, which has been breaking all records on PC. Next. So lastly, the mobile sector. This is the largest game sector globally. Next, it's making up about half of all revenues, 49% of the $108 -- $88 billion market with console second on 30%. If we look regionally, where it's strongest, it's strongest in the East and Asia Pacific region. Next, and we see there that Asia Pacific makes up about 61% of the market with U.S. Europe making up about 1/3. If the market is still in growth, although it is proving very unpredictable to forecast and many alerts have changed their forecast down slightly to the recent numbers, most are saying between 1% and 3%. Of course, it's had some ongoing challenges such as the privacy regulations, which have been ongoing for a while, the IDFA as it's known, as well as rising acquisition costs. One last thing, next, one last thing to mention is that ad revenues are not actually included in any of the data that the markets analysts show. It's proven very difficult to track. But anecdotal evidence, looking at certain companies suggest that ad revenues could be as much as the SEK 95-odd billion or even more from a traditional revenues. Okay. And last but not least, the Tabletop Games market. This is the segment, of course, where Asmodee operates and looking at the markets in the U.S. and EU. Next, we're seeing about 2% market growth for the year, just to add a little, that was in the fiscal year ending March 2023. Just a little bit of color on that. The strongest category was strategic trading cards that we're seeing the highest year-on-year growth. The market also had a really strong holiday period at the end of 2022. And similar to games, it's showing good compound average growth rates of about 10% from pre-pandemic to current times, and that's the end of the presentation. Thank you very much.

Thank you so much, Chris.

You're welcome, Lars.

Let's welcome Anton on stage. One of our first entrepreneurs.

Thank you, Lars. Hi, everyone. All right. Let's do this. So I'm Anton, I am the CEO and one of the founders of Coffee Stain. We were the third operator group to join and it's been a very interesting period. We've seen this group of companies. It was I think -- we felt it was big when we joined, but it's a totally different company today. So I'm going to give you a little bit of history on Coffee Stain, and then I'm going to give you an update on where we are today. I'm going to talk a little bit about how we work and give you a little peak into our pipeline. So Coffee Stain -- some of you have heard this before, but we started as a group of friends from University of Skovde, 9 co-founders, Skovde has this education for game development in the middle of Sweden. And during the last year in school, we got together and formed a company. And there's an incubator there as well in Skovde, which was quite crowded. And to get into incubator and get some office space, we have to pitch them something. So we said to them that we would make 6 mobile games in 1 year, which was a very naive plan, but this was 2010 and everyone wanted mobile games. So it worked, and they let us in. In the end, we made one mobile game in that year, which I'm still quite proud of. This is actually the first game that Coffee Stain launched, and the incubator told us being new developers that like in order to like launch a game, you need to have a publisher. You need some marketing muscles, someone to help you out. And so we went out and looked and we managed to actually get a publisher, which was a very big name and we were a star struck to set a deal with Atari and we were like, wow. Now they were moving into mobile. It's like the stars were aligned, and we thought that this would be the next Angry Birds. But that didn't really happen. So that was a humbling experience. But for us, it was a very good start of the company, I think, and it made us think a lot. So we went back to the drawing board and we have this game that we had already started in school, which was a mod for unreal tournament called Sanctum. And we -- this was really what we wanted to do. So we get back to focusing on this. And in 2010, Steam was very different compared to what it is today. There was no way to just get in on Steam like it is today. So we spanned like a male address to Valve and finally got the response. And luckily, they said, yes, you can publish our game on Steam. So we got the distribution agreement set up for this. And it turned out quite well. Sanctum launched in April 2011. This top chart is a very old top sellers from Steam chart. This is the first summer sale we had with Sanctum in 2011. Just a couple of weeks before the sale and think about the time perspective, we launched in April and we think the game was quite broken. And we added 4 player co-op. We added a lot of stuff, server browser, lots of these features that typically take a long time, but we just threw it in there. And the timing was right. So we ended up on the top chart #1. And I still remember, we went into the office in the middle of the night when this happened, I was just celebrating, it was crazy. But it's also funny to think back because like during these 24 hours when the game was the first top seller on steam, we made about $100,000. And it's like today, you're not going to be #1 on Steam with that revenue. So -- but for us, it was good enough we were about 10 people, and it gave us the money to keep working, and we did a natural thing. We started working on the sequel, Sanctum 2. And we went out to try to do more platforms, which was the natural thing. But at this time to launch a game on Xbox and PlayStation, you actually needed a publisher or a kind of a recognition with the platforms. So again, we have to get the publisher on board. And well, luckily, we managed to -- we're smart enough to say we're going to keep the PC rights. So we self-published on PC, and we had the publisher published it on Xbox and PlayStation. And in the end, we made about 95% of the revenue from PC and Sanctum 2 was quite well received. It's a good game. But then this happened, which probably most of you know, in 2014, we launched Goat Simulator, and this was the big break for Coffee Stain. And it went crazy. It was like was a game project, game jam thing that we just did in a couple of weeks. And once we put it out on the YouTube, it just exploded. And I think overnight, we had 100,000 views on our channel. We have no subscribers, and it just got picked up everywhere. So these are some examples. Wall Street Journal, I think we were on the front page with some article related to goats and stuff. And like this is another example of how YouTube at that point where -- it was kind of starting to blow up. PewDiePie was in its kind of growth and like all the big streamers wanted to play Goat Simulator. So we got so much visibility. This is another fun thing. We were actually one of the most pirated games as well. So this is Pirate Bay back in 2014. And I guess we can debate on whether that's good or not. But I think we were quite happy at least. So I think it's a testament on how popular the game was. So looking at the numbers, I just wanted to give you a little bit of perspective of like these game launches. Sanctum 1 back there in 2011. The revenue that year was about $1 million, good for a bunch of students, Sanctum 2, I think we did $2 million to $3 million in total on that game in like the first years, and then Goat Simulator happened and like it was this huge break. And we made about NOK 90 million of revenue in 2014. And -- but then you can see the interesting thing, I have after that like the graph, it's quite steady. And this was when we started to get a little bit more serious about the business, and we were starting to think like, okay, this is actually working out really well. And we did a lot of content updates, and we got Goat Simulator out on more and more platforms. And actually started to build the Coffee Stain that is today. So Goat Simulator had a very steady performance for, I would say, about 5 years. And this is kind of closing up on the point where we actually became part of Embracer. So -- but we came into Embracer in 2018, and I wanted to give you a little bit of a picture of how things have went since we went into Embracer. This graph shows when we got acquired by Embracer in 2018. And -- we have satisfactory already in production. It was rather far into production, but we didn't really know how well it would do. For us as developers, it was a title that I think we were really keen on making a real game because Goat Simulator was this kind of weird making fun of games game that no one took really serious. So it was really cool to launch satisfactory in 2019, and it became a really big success, and it kind of makes like even Goat Simulator look tiny compared to it. And then if you extract the graph a little bit further, you have Valheim launching in 2021, and it makes it even more crazy. And in between here, we also have -- which is a bit hard to see in this graph, but we also have Deep Rock Galactic, which we launched in 2018. And that's been a very steady revenue driver and actually growing year-over-year, which has been super interesting. So yes, we -- these are our biggest products today. They are some of the most successful on Steam, and we are going to keep working very actively with just supporting these games. It's -- they are very well received. As you can see, the reuse scores are extremely high. And this is one of the things we work a lot on making our games really good, which is paying off in the long term. We have -- I'm going to talk a little bit more about that in the coming slides. And then we have this little guy, which probably not a lot of you know about. It's been a little bit under cover. But last year, we acquired one of the biggest games on Roblox. And for us, this is a very new thing -- this game was developed by a super smart guy. He had worked on it for a very long time. And what we did was basically help him to build a new home for this game. So we have built a new team, which is now in Gothenburg, about 15 people working with this now and it's starting to pick up some pace. And the idea here is to hopefully, by supplying more content and being more active with the community and like -- I mean, he was a one-man show. So -- but it's a little bit early to say how this is going to turn out, but it's a very big game. And it's actually one of our biggest games now, both by player numbers, but revenue as well. So hopefully more about this in the future. So this slide shows a little bit of how the group looks today. I usually say that Coffee Stain is about 150 people. So we've come quite far from when we started, 9 people, now we're 150 people. But like all these teams are quite small. So they range from 5 to 30-ish people and you probably know most of these companies. You have Ghost Ship there on the right side, which is a company that we worked with for some time. When we got into Embracer we had a minority investment and the publishing deal with them. They later became part of Embracer and they live as a sister company to us. And they are a great example of what we try to do, where we want to empower developers to a point where they can actually do the business themselves. And now they're actually even starting up their own publishing, and they have a really -- I'm super excited to see their coming games. It's -- they are really, really good developers. Then on the right side there, you have Iron Gate as well the developer of Valheim, and we own a minority investment there. So they're -- but they're -- all right -- wanted to touch a little bit on how we do things. We do a lot of things. We're 150 people. We work with about 10 games or a little bit more depending on how you look at it. And we have had this very big success. So -- and it's very hard to say exactly what we're doing, but I'll try to summarize it into a couple of points here. So I'm going to go through them one by one. So small and independent teams. I think this is kind of the most important thing for us is that we keep all our teams very small. And the idea here is that if we have tiny teams, we work with something very creative, everyone can be very involved and feel that they have a big impact on the products themselves. And ultimately, this idea as well, if you want to build a decentralized organization, like people have to like own what they're working on. And I think the only way to do that is just to empower people, a little bit similar to what Embracer tries to do with like empowering entrepreneurs. We want to empower developers and like to add all the skill that we have acquired within Coffee Stain and share that with the people that we work with. So with Ghost Ship, for example, they've come to a point now where they can take that and publish things themselves and starting investing in things, and we have a very agile business approach and this comes back even from when we started the company, but it was not very intentional at that point. As I mentioned with Sanctum 1, it was very broken when we launched it, and that was more out of our inexperienced not knowing what we were doing. But what we did was we improved the game over time and it actually works. And now we work mostly with early access and steam as our main platform because there you can work you can launch a game much earlier. It can be a little bit broken and then you can continuously develop it together with the community and the players. And that kind of reduces the risk because you don't have to figure everything out by yourself. And I think in the end, it makes for better games. And then finally, we also usually add platforms later. So we typically don't do same ship. There are some exceptions to that. But adding platforms right away adds so much complexity. So for us, it's more about we focus on the games, try to get them out quick. If they do well, then we bring them out to more platforms. And yes, this is maybe comes back to all the things with keeping team small, but we are a very decentralized organization and we try to stay as flat as possible and avoiding overhead when possible. And yes, that's what we're going to keep doing. So we have our challenges as well, being this type of organization. I think some of our biggest challenges the last year has actually been being part of a public listed company is a challenge, happy though that we have great support from Embracer and before we joined Embracer, we were considering to do it ourselves, like -- and I'm so happy that we didn't do that because then we -- I wouldn't be involved in games at all. I struggle with it as it is. But we're getting through it. And I'm really confident that we can do this. And I'm a strong believer that like we need to find ways to allow this to -- it is kind of a little bit of a problem to be this very super creative in the developer in a public environment, but I think there's ways to do it. So -- and we are doing it, and we're going to keep doing that. And then the other here is growing while maintaining quality and focus is, it is super hard to grow our organization. So we have to do it slowly. We have grown a lot, though, when we joined in Embracer, we were about 50 people and now we are 150 people over a couple of years, and -- but now we're at the point where we are focusing a lot, and we're going to -- we need to work out more some of the processes. And like, yes, we have felt a little bit of that growth. It's taking at all. So -- and finally, like finding, creating the right products is super hard for us and everyone else in this industry, and it's becoming more and more competitive. But at the same time, it's a very cool industry to be in because like the upside when you hit the right games is bigger than ever. So yes. And finally, I wanted to give you a little bit of a peak into our pipeline. We have a lot of things going on for being a rather small operative group. Coffee Stain has a couple of unannounced titles. And then you also have Ghost Ship, our sister company, that is having their own publishing. And it's some exciting time ahead of us, and I can't wait to announce more of this stuff once it's ready, but you never know. We'll see when that happens. Thank you.

Thank you, Anton. Thank you so much. I think from Texas, we have another entrepreneur and creator online.

Yes, hi, Lars.

You were one of the first entrepreneurs joining as well, not as early as Anton, but a year later, I think. So happy you are taking the time to present a little bit more about yourself and Gunfire. So the stage is yours.

Good to be here. I am David Adams. I'm one of the co-founders and the CEO of Gunfire Games. Gunfire Games was founded in 2014. There were about, I think, 12 or 13 of us initially, and we had all worked together for many years. We worked and created the Darksiders IP for LTHQ and we just like working together, so we decided to start gunfire games to continue to work. We -- for several years, we worked on a lot of the yard stuff, so we did some titles not on this slide. We had a game called Hero Band. We did another game called Dead and Buried. And then one of the big things we wanted to do with our studio, is we wanted to develop and create our own IP. So the first thing we did was from us which was initially a VR title, although it's been later released on PC, and that was a launch title for the Oculus Rift. It did really well. It was like the #1 selling reptile for a while. And then we moved on and did from Other Sons, which is another original IP. And other thing we've always done with -- even though we've worked with various colors when we're independent, we insisted on owning our own IP. So we owned all these IPs, which is really nice. And some are along the way because we've been in contact with THQ Nordic, which is, I guess, before it was called the -- before Embracer, the name existed. And because we've worked on Darksiders 1 and 2, they really want to work with us. So we started initially and we did the port for Darksiders 2 to current gen consoles at the time, call it attentive addition. And that's sort of morphed into us also working on Darksiders 3. And this is all we're still pretty small at this point. I think we still only had like at the time, 30 people, 20 to 30 people. But the whole time we've been working on our own IP -- another original IP in the background. And as a studio, we really specialize in first person, action adventure, shooters, RPGs, having worked on Darksiders, even [indiscernible], we wanted to maintain a certain style of our games, and it gives us a certain amount of synergy when we're working on projects that we tend to work on things along the same lines and within the same genres. So the next probably 2 weeks after we got acquired, we got acquired in 2019 -- August of 2019. I think it was 2 weeks later that Remnant I came out, which we have been working on for maybe 2.5 years prior to that. So Remnant I came out, did really well, a lot better than we'd hope it would do well, but we weren't sure. So we were really surprised by the perception of that, came out strong as #1 seller in Steam even in our early access period. And we went on to make several DLCs for that game, coming in a pretty big expansion pack called Subject 2423 and pretty much from that point from acquisition 2019 until now, really, we're working on Remnant II. So Remnant II was kind of what we had always wanted to do with Remnant I because we partially funded Remnant I ourselves and didn't -- had a pretty -- a relatively small budget. It was published by Perfect World so was Remnant II, which later got acquired by Embracer. So that was convenient that our publisher came under the same umbrella as Gearbox. And Remnant II came out this past July on the 25th and it's so far, pretty much exceeded all our expectations and did really well. Between the 2 titles, we've sold around 7 million copies. We -- it's got a combined revenue of SEK 200 million. Remnant II hit a peak of 110 concurrent users on Steam and was #1 on the sales chart for quite a while until Baldur's Gate 3 came out. But yes, we've been really proud of the game. It's done really well, and we -- we continue to support it over time. We've got 3 major DLC packs and already announced for the game that we're well underway working on. We've done a few quality of life patches already, but we plan to continue to support and update the game over time and really see where we can drive the installed base and the player base by continuing to support the game. That's it. That's in a nut shell.

Thank you so much, David. It was great to have you here, and thank you so much, and please send the best regards to the team, and thank you so much for contributing to the group.

Thank you, Lars.

So with these presentations, I would like to give some final remarks before heading over to Q&A. So to wrap up, it has been a challenging year, yet a very eventful year where we took many strategic steps to build a stronger and more resilient group. This has been made by hard work from our great people. And for that, I would like to say thank you. It's, however, the most challenging time of Embracer's history and we are now adjusting to a new reality. We need to continue making tough decisions following the restructuring program initiated in June. And it's challenging time for everyone impacted. But it's important to remember that is needed, and we are becoming a leaner more efficient company focused on creating world-class entertainment on a global market for the long term. The long-term ambition for Embracer is to continue to build something significant long-lasting and to do it together with successful entrepreneurs like David and Anton and other creators. We have a solid foundation with predictable, profitable and cash-generative businesses including a roaster of renewed PC/Console franchises that gradually grows stronger. The demand for content has never been greater, and we are well positioned to leverage on that demand. We have fantastic people and many world-class IPs. We aim to demonstrate the growing earnings power of this combination over time. We have had a great start of this fiscal year that gives me and the management team great confidence to deliver what we set out to do. Looking ahead of this year, we will still see growth for the years to come, driven by a more focused pipeline of investments. To shareholders, I want to make clear that we will continue the focus on delivering long-term growth of both adjusted earnings per share and free cash flow per share. I would like to send my thanks to all our shareholders. employees, customers and business partners for the support and contributing to the continued success of Embracer. Thank you.

All right. Let's start the Q&A. The physical audience will be able to ask questions as well. I think we have a microphone somewhere, but I thought I'll start. And I would start by asking you to summarize the year, but you just did that very good. So maybe I'll ask you the same question, Johan, how would you summarize this past year from your perspective with the IFRS conversion, change of listing and all those milestones.

No, I think it's -- I mean, obviously, it was a big project for the year, and I'm very happy that we have done it. I'm also happy that it's done. So obviously, a benchmark improvement and a very good opportunity for us to improve in the areas that are relevant and highlighted in the process of uplisting. But a lot of hard work involved and also thank everyone that has been participating in the project.

I think hard work is good work, good word.

So any questions from the physical audience to begin with. Raise your hand. We have a raised hand over here.

My name is Fredrik Baggle. I'm quite interested on this adjusted EBIT, almost the whole adjusted EBIT is the EBIT. So what is the logic behind this measurement, now when your IFRS and is also very close to EBITDA. Can you explore and explain to me exemplify maybe what's in this SEK 6 billion?

Thank you, Fredrik. Appreciating your coming to the AGM, a great questions. Johan, will you like to start adjusted EBIT? Why not just EBIT?

I think -- well, to get a good understanding for why we are presenting Alternative Performance Metrics, APMs which adjusted EBIT is. It is described in our quarterly report or in detail as well as in the annual report. To keep it short, it is what we internally use to measure operational profitability of entities within the group. The main reason for why it is needed is that in an entity that makes a lot of acquisitions -- you will have the accounting becomes quite complex. And it's difficult to see the operational performance in the reported EBIT. So basically, what is -- what we do is that we remove nonoperational items from EBIT to arrive at adjusted EBIT to give a better view of the underlying operational performance.

Perfect. My turn. Should we talk some Payday maybe? I think it's less than an hour until release actually. And it's a very well anticipated game for Embracer and for the Payday community as a whole. And I'm just curious how your expectations have trended over the last few months going into the release today.

No. I think Payday 3 is one of a handful -- important titles for the year. We had two so far [ The Dial-in ] and Remnant 2 that has been performing well for us, early in the year, which is good. Now we have Payday 3 fairly early or midyear. No, I feel confident that it will be a good experience but this is live operated games with a lot of content and service structures. And so I know that there will be game that will be built over a long time. So I hope and I believe a lot of players will enjoy the game tonight. I got some early data. I'm sorry, I can't share the data on preorders and so on, but I feel confident that it would deliver. Now it's important that Starbreeze and our publishing team continues to work on this and bring more content and listen to the community and do all that. But obviously, they've been doing this before with Payday 2. So if there is anyone in the world being able to ship this and successfully, it should be Starbreeze.

And it's interesting that you have with Payday, you have a game pass deal with Microsoft on day one, and we could talk about that, but I think it's also a very good segue into a discussion on the broader markets. We heard some insights here previously. But I think if we could talk from the platform providers perspective, being Microsoft, Sony, Epic, and so forth, besides the consumer sentiments weighing on the market, how do you perceive these platforms investment appetite in when they need to secure their content? Have they affected this softer market in any way?

Well, it was a bit of craziness a few years ago with platform signing a lot of titles and potentially titles that didn't have the success rate as a stand-alone game justifying that the price, some platforms paid. I wouldn't say we use that to a very high degree. Obviously, we had a few titles, but I think it's for a bit different kind of companies partly. But in general, there is a great demand from consumers, and there is many platforms that the big companies, platform companies are trying to build and they need content, would it make sense for us to sign more content on to these services. I think we need to look at each and every game. Is it suitable for the audience and so on. So now on Payday 3, I have full confidence in Klemens and the PLAION and Starbreeze in their analysis of if this is right for Payday 3. I'm sure it will bring a lot of players, which is good in a game like Payday so.

And another change quite recently was Epic changing their exclusivity, call it, arrangement where you in such a case, would get 100% of the revenues, the first 6 months, I think. And you've used Epic as a partner a few times. Have you had any early reflections of this change?

Well, I think that's a longer conversation. In the end of the day, I think it's good with competition to team as well because it put them on toes to deliver the best experience. Obviously, we would like to pay less fees to platforms. In reality, we are paying more fees to platforms than we spend on games development every year. And if you just think about that number, it's crazy. So there is margins with the platforms that I would preferably have within building more games and some more margins. But -- and that's, I think, it's great that Epic is there, trying to build a competitive platform. At the same time, consumers are perhaps looking at things differently. They want to be able to pick their platform. So there is many different perspectives in this, and I don't want to go too deep into that, but I think competition in general is great.

And we have a question from the stream, and I'll just read it here. But regarding your slightly more centralized greenlighting process of game projects going forward that you talked about a few months ago. Are you also adjusting your risk profile in how much development time you spend on trying innovative features or experimental elements? Or will this be unchanged on an aggregate level?.

Well, I prefer to use the word group-wide rather than centralized because it won't be a centralized thing here in Karlstad. It would be a group-wide effort. But in general, I think it's good that more eyes are looking at investments and games and also give inputs to the teams and use their combined intelligence to making sure that we are investing in pulling perhaps more effort into certain games and then we are -- might be deciding not to do some games. In the end of the day, I believe that will bring greater products to the consumers and ultimately a better financial return as well. I'm sure there will be a very high creativity that remains within the group's, Anton and many, many others, David here. So I am not worried about the level of creativity will be damaged.

And on the topic of the restructuring, it's been about 3 months since you announced it. And I assume it is a tough process. And I'm not sure if this is the right word to use, but are you satisfied with the progress so far?

That's definitely the wrong word to use. It's tough. It's tough from any standpoint. Obviously, but we are determined to deliver on this. But the way there is different. Preferably, I would like to find where we would like to find new opportunities for the employees even if it's outside of Embracer Group potentially through sometimes a divestment or that we are working with partners to finance some projects. So we don't have that CapEx and we get that cash flow. So we could still have the employees. But ultimately, we are making decisions to either restructure to downsize some teams or and there will be a few cases of closures. But it's difficult, and it takes time. But we announced this in June, and now we are in the end of September, and we are confident to deliver on the targets we set out for end of the fiscal year.

And thinking about the long term, you have your debt target by March of next year. But long term, I guess hypothetically speaking, do you see Embracer as a company that will utilize debt at all? arguably.

I think it's wrong by me to set out any new information regarding that, but I don't think there's a secret that I'm quite conservative to debt in general, but the group has debt targets, which is onetime forward-looking adjusted EBIT, correct me if I'm wrong here, Johan.

That's correct.

So -- and we will reach that roughly by end of this fiscal year. But in general, I don't think you should carry too much in this industry in general, you don't see too much of debt. And in general, I don't think you should carry too much debt as a gaming company because of the volatility of game releases sometimes, which is one reason.

And when it comes to these other initiatives needed such as potential divestments or publishing agreements when you need to balance sort of getting good commercial terms with the time line. Is that a sort of trade-off there?

It's sometimes difficult and sometimes -- sometimes it's -- you need to put deadlines and work against those deadlines. And if there is nothing on the table, you ultimately need to make a different decision. I think on the divestment side, there is a strong vibrant market with many, many active players, both financial sponsors and big industry players but it's easier to run proper processes for, I would say, more high-value assets than smaller assets. And I think that's what we have experienced now as well.

I think we are a bit behind schedule. So I'll see if there are any final questions from the audience. Here. . .

My name is Fredrick and I have a question about the financial target that you said. You realize that you made a mistake with setting like forecast for the sales in the last year. And isn't this like a similar forecast for the cash flow? And isn't it a risk to make the same mistake?

You mean the net debt targets we put out. Well, you can debate whether it's a mistake or not, but we had obviously the conversations around it, if it makes sense to be very firm on a net debt target. It has some pros. It has some cons. And I've been hearing from shareholders, you don't really need to reach that debt level and why do you put that target. At the same time, I think it drives the whole organizations against one goal here to reduce the net debt to a certain target. And there is different ways to achieve that. And as I state today, we feel determined and confident in that. But to your point, we started out as a public company without providing guidance and forecasts. And if you ask me philosophically long term, is it easier to manage a company without having such promises? Yes, in theory, it would be because you are more flexible. At the same time, you have analysts like Erik calling you or us every day, chasing, and when you have 19 of them is becoming very complex. And as a public company, you don't own that expectations anymore. So it's a complex matter.

Isn't it a risk that you make short-term decisions if you have...

I wouldn't say necessarily short term. We decided, as you noticed in July to raise some more capital, in order to avoid that short-term decisions during this restructuring phase that was one reason. So I think we have what we need to make the right decisions. I think that's my view on that. So we are not in a situation where we need to make a stupid decision that destroys a lot of shareholder value. And when we are in the end of this program, I would like -- I'm happy to answer questions, why did you do that? Or why did you do that? There is a lot of color and sometimes the perspective in media and especially on social media is a bit -- but people doesn't have all the information.

A final question for me then before going to the rest of the AGM but I think it's an interesting one here. So buckle-up. At the AGM, 2 years ago, you mentioned Transmedia several times. And a few months later, you acquired Asmodee and Dark Horse among other things. And last year, you mentioned cost of capital a lot of times and a lot of things have happened since then. So are there any words you would like to emphasize extra today?

Well, it's not for me to -- it's not for me to disclose that word. We are trying not to give any new information today that we should not be giving. Obviously, our quarterly reporting is that's the day we're giving new information.

Fair enough. Okay. I think it's part of the second part of the AGM.

Thank you very much, Eric.

Okay, put it here, so you can reach it. Okay. We have now come to item #8 on the agenda, that is the presentation of accounting documents. The annual report for the financial year '22 '23 has been published on our website since 21st of June, and it's also been available here today. And I wonder if we have any questions about the annual report. No. Then I would like to ask the company's main responsible auditor, Johan Eklund from EY to present the auditor's report. Welcome, Johan.

Not too fancy, slides perhaps. Thank you, Kicki. My name is as Kicki said Johan Eklund and I'm the main responsible partner for representing EY, and I've been the auditor for Embracer Group during last year. And I thought I'll first give you a short briefing -- around our audit work that we have performed and then I will take you through the important parts of the recommendations that actually are in the audit report for you at this AGM. So we have performed the audit according to international standards of audits and also standards, and we have also performed it according to [indiscernible] audit standards. The group audit has been coordinated through a primary team here in [ Kosta ] and Stockholm. And the primary team work has been mainly to give instructions to and receive a reporting from our different group entities around the world. And then, of course, handling a lot of central figures and issues. And as you have heard earlier here, we have had interesting issues during the year. For example, the transfer to IFRS is one part that has -- we have spent a lot of work around. And we have also had a lot of meetings, both with the group management, of course, but also with our component audit teams around the world. We have also had meetings and attended meetings with the Audit Committee and the Board. And -- as you also have seen related to what Johan and Lars has presented earlier. We had a balance sheet and income statement that are having a lot of interesting position in it, and we have done a lot of work around it. And two of the main parts has been described in the audit report as key audit matters. And one of the key audit matters is related to accounting for business combinations. And this relates, of course, to -- for us as auditors to evaluate the processes that Embracer has, around the accounting for this. And we also examine purchase agreements. We test the purchase price allocations. We evaluate the method and models that are used and we also assess the material assumptions and judgment that the company actually do. And for this, we use also internal expertise. The second key audit matters that also as stated in the annual report -- audit report is the evaluation of goodwill. And the important part there is, of course, the impairment test. And all the procedures related to that are strongly connected to that we evaluate the process around the impairment test that the company has. We have like also there the methods and the models that are used. We assess the material assumptions and judgments that the company does, and we also review sensitivity analysis. So based on the audit work performed, we have issued this formal audit report that have been published in June. And there, you can see two specific recommendations to this AGM. And first, we recommend that the general meeting adopts the income statement and balance sheet for both the group and the parent company. And second, we also recommend that the General Meeting appropriates the profit in accordance with the adjusted proposal and also that the members of the Board and the managing directors shall be discharged from liability for the financial year. And in addition to this, we have also explained the ESEF report that's new for Embracer this year. An opinion there is that the report has been prepared in the format that is electronic reporting. Then outside the ordinary audit report, we have also on Page 71 in the annual report, released our audit opinion regarding the sustainability reporting with no remarks. And on Page 93, we have also released our audited expansion of the corporate governance statement also with no remarks. So that was the total.

Great. Thank you very much, Johan. Do we have any questions regarding the audit report from the audience? [Voting]

Okay, I then find that the annual report and consolidated accounts as well as the auditor's report have been presented. Thank you Johan. As we heard, the auditor support that the Annual General Meeting approves the presented income statement and balance sheet as well as the consolidated income statement and consolidated balance sheet. Can the Annual General Meeting approve the presented income statement and balance sheets? [Voting]

Thank you. The Board of Directors' proposal regarding the allocation of the company's results is included in the annual report and has been included in the notice for the meeting as well. The Board proposed that no dividend shall be paid for the financial year '22/'23. The Board proposed that the funds availability Annual General Meeting of approximately SEK 59.6 billion shall be carried forward. Does anyone want to comment on the Board's proposal? [Voting]

And as we heard, the auditors support that the Annual General Meeting resolves to allocate the company's profits in accordance with the Board's proposal. Can the Annual General Meeting result that the approved result is allocated in accordance with the Board's proposal, which was also endorsed by the auditor? [Voting]

Great. Thank you very much. We have previously heard that the auditors support discharge from liability. I would also like to inform the Annual General Meeting that the Board members and the CEO may not participate in the resolutions concerning each of themselves. Can the Annual General Meeting in accordance with the auditor's endorsement approve discharge from liability to the directors of the Board and the Managing Director for past financial year. [Voting]

All right. Thank you very much. Considering the votes provided in advance, we can note that the resolution is passed with sufficient majority. Then we have now come to the item where we should determine the number of Board of Directors and auditors, fees to the Board of Directors and the auditors and the election of Board of directors and auditors. And again, the proposal has -- the proposals have been available since the 21st of -- now the 22nd of August, actually, on the company's website. Also, it was included in the notice and it has been available here today. So by that, I would like to ask our Chairman of the Nomination Committee, Per Fredriksson to present the proposals for all these items. And then later, we will manage to vote on all of them together, if that's okay.

Hi everyone, and I appreciate to be here. I realize listening to David and Anton that this is the more formal and maybe boring part of AGM but still bear with me. I will go through the Nomination Committee's proposal and recent statements. In accordance with the principles for the Nomination Committee, which were established at the Embracer Group AGM last year, the Nomination Committee shall consist of representatives of the 5 largest shareholders registered in the register of shareholders held by Euroclear Sweden AB at the end of November each year. With the Chairman of the Board as an adjunct to the Nomination Committee. The Nomination Committee in respect of the AGM, this AGM has been comprised by myself appointed by [ Lars Wingefors ]. [ Michael Levy ] appointed by S3D Media Inc. [ Olla Olman ] appointed by Savvy Gaming Group; [ Leonard Frank ] appointed by [indiscernible] Founder and [ Henrik Olson ] appointed by Canada Pension Plan Investment Board. Chairman of the Board, Kicki Wallje-Lund, has been adjunct to the Nomination Committee, and I have been Chairman of the Nomination Committee. A few words on the work we have done. Ahead of this AGM, the Nomination Committee has held 12 recorded meetings and has had regular contacts in between. For the Nomination Committee has reviewed and considered the internal evaluation of the work that has been conducted by the Board of Directors and the Chairman's statement regarding the Board's work. The Nomination Committee has also reviewed the company's strategies and interviewed all individual members of the Board. The task of the Nomination Committee, as you might know, is to submit proposals to the AGM concerning the election of Chairman of the general meeting, the election of members of the Board and the Chairman of the Board; the election of auditor; as well as remuneration for the Chairman and other members of the Board, including remuneration for committee work as well as remuneration to the company's auditor. In respect of the General Meeting 2023, the Nomination Committee has unanimously resolved to submit the following proposals. Now I relate to Item 10, 11 and 12 as Kicki said. The nomination proposal for candidates for the Post of Chair and other Directors of the Board. The Nomination Committee proposes the following that the Board shall consist of 8 directors without Deputy Directors, that Kicki Wallje-Lund, Lars Wingefors, Jacob Jonmyren, Cecilia Driving, and David Gardner shall be reelected and Yasmina Brihi, Cecilia Qvist and Bernt Ingman should be elected as new board members. And that Kicki Wallje-Lund is reelected as Chair of the Board. Our reasoning behind this, in preparing its proposal for the Board, the Nomination Committee is focused on strengthening the Board as a whole, bring particular attention to its composition and competencies with respect to the company's strategic position, development, international operations, governance and financial controls. The Nomination Committee has also taken into account the Board's need for versatility and breadth in terms of skills, experience and background, while maintaining the continuity in the work of the Board. The Nomination Committee has applied rule 4.1 of the Swedish Code of Corporate Governance as a diversity policy entailing that the Board of Directors shall, with regards to the company's business phase of development and other relevant circumstances, have an appropriate composition of Board members elected by the general meeting that collectively displayed diversity and breadth in respect of skills, experience and background and strive for an equal gender distribution. As you might have noticed, half of the proposed Board members are women. In addition, the Nomination Committee has assessed the independence of the Board members. The Nomination Committee proposal regarding the composition of the Board meets the requirements of independence as stipulated in the code. In preparing majority -- in preparing its proposal, the Nomination Committee has considered that the majority of the proposed directors are to be regarded as independent in relation to the company and the executive management and that at least two of the Board members who are independent of the company and executive management shall also be independent in relation to the company's major shareholders. Furthermore, no more than one elected member of the Board may be a member of the Executive Management of the company or a subsidiary. That is in accordance with rule 4.3 of the code. Consequently, Erik Stenberg and Matthew Karch are thanked for their contributions within the Board of Directors. And the new Board members proposed for new election, they are Yasmina Brihi, Bernt Ingman and Cecilia Qvist, and they will be presented shortly. I move on to Item 11, which is proposal for fees and other remuneration. The Nomination Committee proposes that the level of remuneration for the Board, excluding remuneration for committee work, shall remain unchanged and we paid with a total of SEK 6.3 million, of which SEK 2.1 million is remuneration for the Chairman of the Board of Directors. And SEK 600,000 to every other member of the Board, which are not employed by the company. And in addition, the Nomination Committee proposes remuneration for work in the Audit Committee shall remain unchanged. And will be paid with SEK 275,000 to the Chairman of the Audit Committee and SEK 175,000 for every other member of the audit commit. Remuneration for work in the Remuneration Committee shall remain unchanged and we paid with SEK 150,000 to the Chairman of the Remuneration Committee and SEK 100,000 to every other member of the Remuneration Committee. Our reasoning behind this. The Remuneration Committee has done a thorough benchmark of remuneration levels from the Scandinavian and international point of view. Swedish remuneration levels for board assignments are relatively low from an international perspective. The Nomination committee decided not to adjust existing levels of remuneration for the upcoming term at Embracer Group. However, the Nomination Committee advices Embracer Group and the future Nomination Committee to initialize a review of future remuneration structure in anticipation of the AGM 2024. And to consider a compensation structure that includes higher levels of remuneration and the requirements, possibilities for Board members to receive shares in the company. And then in relation to Item 12, proposal for election and remuneration for competing auditor. The Nomination Committee proposes that the registered audit company is appointed as auditor until the end of the next Annual General Meeting. Further, the Nomination Committee proposes in accordance with the Audit and Sustainability Committee's recommendation, election of the registered audit company earnings, PricewaterhouseCoopers AB as auditors in the company for the period until the end of the next Annual General Meeting. PwC has informed that authorized public accountant, [indiscernible] shall be the auditor in charge. He is also present here. Remuneration for the auditor shall be paid in accordance with the approved invoices. That is what we have in relation to Items 10, 11 and 12. However, I'd like to thank -- also express my thanks to my fellow members of the Nomination Committee. Thanks for your availability, hard work and for fruitful discussions. Finally, this is the sort of a wish from my personal side, but also a piece of advice to the five largest shareholders of Embracer Group in the future. So it's still one thing for you to improve, and that would be gender distribution of future nomination committees. Thank you very much.

Thank you very much, [ Bernt ]. Yes, before we continue, I will give you just a short presentation of the Board's work during last year. We did have 86 recorded meetings last year. It's quite a lot. Lars always said he wanted to engaged for it, and I think he got it. Now last year, we have what we call an annual Board calendar where we have all the different tasks that the Board must perform during the year. But the last year, I would say it was a very -- an extraordinary year to say the least. Now -- so we did have 86 recorded meetings. But only 15 of those were physical or video conferences and 71 [ per capsulam ]. Now almost -- I think it was -- I know, it was 64 of those 71, that all related to acquisitions that we had made. But still, it's quite a lot of meetings taking place. Now we did have also 11 Audit and Sustainability Committee things that's also more than normal. And we -- that is, of course, also extraordinary, but it was because of the IFRS conversion and the listing change that we did last year. Now -- and 4 remuneration committee meetings as well. Now the process for us to become listed on the regulated market was a huge -- I mean it was a big milestone for us. But if we keep in mind that it was Nordic's biggest listing change, it was and also the largest IFRS conversion ever, you can imagine how much time this took for us. Not to talk about Johan and his team and also from all the operative groups that they were also very much involved in the task to make this happen. Now just one example of all the things that we went through during this process. These are the things that are listed here are the things that happened during this process. I mean we got 3 new operating groups. We increased the headcount, as you see, with more than 6,000 people. We made 27 acquisitions since start of this project. And of course, the IFRS conversion was successfully completed just that, we had 120 milestones completed in the different work streams and thousands of controls that were implemented. And there were 7 reviews performed on Embracer during this period of time, as you see, they're listed here. And the Board, we were more or less involved in all these activities. Now of course, also because of the macroeconomic conditions, your political changes and all that happening, we also had to adapt to this new reality. So focus was also on all the things that you see here on the list. And those were, of course, we wanted to improve our businesses, and we spend a lot of time on that, especially if you look at -- we have talked a lot about the targets we have set up for project for the restructuring project. I mean, it relates very much back to these things that we started to work on during the year. Now also when we look at the regular board meetings that we have, there are a lot of reporting that we receive from management. And also one thing that I would just highlight here that I think adds a lot of value to the Board is actually the reports and the information we get from all our operative group, what's happening in each and one of the operating groups. And there is so much information that we get in these reports. And those are also the most exciting ones, I would say, because that's what's really happening out in the group. Also, ordinary course of business is, of course, we have our strategy reviews. We have had a number of acquisitions and 2 transformative acquisitions, as you probably recognize here. And of course, the M&A process as is a well-established part of our governance model. We continue to focus a lot of our -- on our corporate governance and also on sustainability as is an integral part of our strategy of the Embracer Group. And of course, risk management, internal control, lots of focus on that as well. We have spent a lot of time on the issues relating to the war in Ukraine and also, as you very well know by now on partnership deals. That was the description of the work in the Board during the year. Now to come back to the decisions we have to make now, it is proposed that the Board of Directors shall consist of 8 directors without any deputies and that the number of auditors shall be one registered audit firm. It is further proposed that the remuneration to the Board of Directors shall be SEK 600,000 to each nonemployee director, SEK 2.1 million to the share of the Board, SEK 175,000 for members of the Audit and Sustainability Committee, SEK 275,000 for members of the audit and sustainability. Did I say that already -- there's so many leases -- now SEK 275,000 to the share of the Audit and Sustainability Committee. And SEK 100,000 for members of the Remuneration Committee and SEK 150,000 to the share of the Remuneration Committee. It is further proposed that the remuneration to the auditor is to be paid according to approved invoice. And it is proposed to re-elect Cecilia Driving, David Gardner, Jacob Jonmyren, Kicki Wallje-Lund, and Lars Wingefors. It is also proposed to elect 3 new directors, Yasmina Brihi, Bernt Ingman and Cecilia Qvist. Matthew Karch, and Erik Stenberg do not run for reelection. Kicki Wallje-Lund is proposed to be reelected as Chairman of the Board of Directors. And finally, it is proposed to elect the registered audit firm, PwC, as new auditors for the period until the end of the Annual General Meeting 2024. PwC has announced its appointment of Magnus Svensson Henryson as main responsible auditor. And I wonder, are there any questions regarding the proposals? No. Thank you. Now that we then have heard the proposals for Item 10 to 12, I will ask the meeting to approve all these items together. Before we proceed to voting, are there any other proposals for item 10 to 12. Okay. Can the meeting then resolve in accordance with the proposal?

Yes.

Thank you. I, therefore, find the directors and auditors and fees to each of one of them have been approved in accordance with the proposals presented. I also would like to inform the meeting, who our Audit and Sustainability Committee and Remuneration Committee will be composed. The Audit and Sustainability Committee will be shared by Bernt Ingman and Jacob Jonmyren; and Kicki Wallje-Lund will be members of the committee. The Remuneration Committee will be shared by Cecilia Driving. And together with David Gardner and Yasmina Brihi would be members of the committee. Before we go to the next item on the agenda, I now can say a warm welcome to our new members of the Board. And also, I would like to welcome our new main responsible auditor, Magnus. Magnus is here with us. So that's Magnus. And of course, it's very important as well to say a big thank you to our previous main responsible auditor, Johan Eklund and to your whole team, Johan. I have to say we have all been extremely impressed and thankful for all the hard work that you always put in to support us and help us, I would say day and nights and weekends sometimes. Thank you so much. And I think if you come here, I think, Johan, maybe would like to say a few words or...

Very short. Thank you very much. Thank you. It's been a pleasure. And here we have some nice flowers. Thank you.

Thank you, Johan. I also would like to take this opportunity to turn to Matt Karch that do not run for reelection. Well, Matt is unfortunately not here today, but I do know that he's watching us. So I'm looking into the camera now. And I would like Matt on behalf of the Board, express our great thanks for your contribution and also for your deep passion in our business. And you have always created lots of dynamic in the Board. And also to say -- that's to say the least. And it will be so extremely boring when you're not there. We will miss you a lot. But you're still with us in the company. So we will continue to work together in one way or another. Thank you, Matt. Now I would like also to turn to Erik. He is not here today. He couldn't make it, unfortunately. But I do know that many of you here today know Erik very well. Erik is the cofounder of Embrace together with Lars. And so he's been with us on this journey from the very start. Now it would be difficult to imagine the Board meeting without Erik's Smile and wits. He had a great humor and he also contributed a lot with lots of his experience and competence of course. So I know that we will be many that will be miss him deeply. Also out in the organization because he always travel a lot and met with many of our members in the whole Embrace Group. Now the good thing is that Erik will actually be a senior adviser to us and to the Board so that we could continue to work with him or to use his experience going forward when needed. Okay, Per, I think maybe you would like to come up again and ask our new Board members to come and present themselves.

Please. We can have all 3 of you at the same time, I guess, just to make it quicker -- it's my pleasure just to present to you, and let's take -- you can start Cecilia.

Yes, I think we have to be very diversified here. So.

Okay. You have got quite a lot of information regarding me earlier. So maybe I should just add some things here. I've been involved in a number of companies as a CFO. First of all, it's 7 different companies, which were not listed, so it was private companies. Then I had the pleasure to introduce or be responsible for introducing Munters. I hope you know what Munters is, what kind of company it is. It was a part of the incentive group, and we put that on the stock exchange. It was very interesting and a very nice company to work with. And after that, I think I was 6 years in Munters. After that, it was the next time to put the company in the stock exchange, and that was Husqvarna. And as you know, Husqvarna is making boy toys and it's very, very fun things. I have a garage up in my summer cottage which is full of Husqvarna items. During the last few years, I've also tried other -- like the competitors, [ Steele ] and Ryobi and these kind of companies. Then I have during a number of years, been engaged in board -- different boards never with 86 board meetings during the year. I can assure you that. And I hope I'm not going to travel here 86 times during the coming year, but we will see. The companies which I've been involved in, which has been on the stock exchange is [ SBC ] which is a service company for [indiscernible] I don't really know the -- I don't know if there is an English word for it. BEIJER REF, which I was in from 2006 to 2021. And during the last 7 years as the Chairman, and before that, as a Board member. Then Micro Systemation. You know the company, which is if you are doing something bad, they will take -- or they will use micro systemations, things for taking out the information from your -- from mobile phone. So that was an interesting place to be in the Board. It's a lot of things which happens on that side throughout the world. And then another company was Pricer, I was earlier in between 2014 and 2001. And then I was during 4 years at the end there, I was the Chairman. I was out of the Board for 2 years, but now they asked me this year to come back as a Chairman, and I'll start with that job too. And then the last company which are publicly quoted is TagMaster, which I also are the Chairman of the Board there. So that's my background really on this side.

Thank you. Quite impressive, I have to say. So Cecilia Qvist is my name. First and foremost, I want to say thank you so much for this opportunity. As a swede living abroad, I keep quite a lot of track on the global brands that I think will make it. I'm super excited to be part of Embracer in the future. I have had the fortune to work with a few brands out there that have had incredible journeys, both as listed assets and nonlisted assets. So I'm really looking forward to hopefully contribute as we move forward here. Thank you.

Hi, everyone. I'd like to echo that. Thank you so much for the opportunity. I'm both honored and very excited to be here with you. I'll maybe give you a bit about my professional background. Most of it is captured here. So I started out in Strategy consulting at the time where I just wanted to discover as many industries and businesses as possible. I spent about 6 years there. And then after my MBA, decided that I wanted to discover the more fun side of the business world. So I joined [ WPP ] in their marketing fellowship program. It was supposed to be a 3-year program. I sort of got interrupted halfway by what looked to me like a small search engine. And I met the team and I actually love the team. I often realize that the decisions I make really have to do with the people that I need, and that's very relevant to the people I have met as part of Embracer. And so I love the team. I love the culture. Joined Google, and I ended up spending over 16, almost 17 years building and scaling high-growth businesses across Europe, the Middle East and Africa. And the businesses spanned hardware, software apps, e-commerce as well as across mobile, fitness, smart home, gaming. You may recognize some of those businesses. So they include the likes of Android, Chromebooks, the Chrome browser, Google Play, Fitbits, Pixel, Nest and [ Stadio ]. So that's my background in terms of where I've been. In terms of the skills that I have, I have obviously a deep experience in tech and have got experience in products, strategy, marketing across all the disciplines of it and partnerships. As it says there, I've got quite a lot of experience building and scaling organizations, transforming cultures, even especially in difficult times and managing and leading across large, diverse, complex, decentralized organizations with silos spanning geographies. So that's me on the professional side. In terms of my personal side, I am born and raised in Lebanon, I've lived in France, the U.S., I'm currently based in London. I love skiing, I love swimming. I love hacking. And I have a slight addiction to Sci-Fi. But that's maybe oversharing a bit, so I will stop here.

Thank you very much.

Thank you very much and good luck.

Okay. Per. I think you have to tell us a little bit about the principles for the Nomination Committee.

Yes. That's Item 13 then.

Yes. Exactly. On the...

The Nomination Committee has proposed that the Annual General Meeting resolves to adopt principles and instructions for the appointment of a Nomination Committee. Only minor adjustments, as you might have seen, are proposed and the proposal has been included in the notice for the meeting and has been available on the company's website prior to the meeting and has also been distributed here today. I therefore don't intend to go through it in detail. Are there any questions on this?

No question. Can the meeting then resolve in accordance with the proposal?

Yes.

Great. Thank you very much. Only a few more items to go now. #14. The Board of Directors has, after a recommendation from the Remuneration Committee proposed that the Annual General Meeting approves the remuneration report. The proposal has been included in the notice for the meeting, and it has been available on our website. So I will not -- I do not intend to go through it here in detail. In this context, I would like to point out that the auditor statement regarding guidelines for remuneration for senior executives are available here today and has been available as well on our website. In addition, the current guidelines are kept unchanged and will unless adjusted in the future remain in force until 2026. Are there any questions regarding the report. No? Can annual general meeting resolve in accordance with the proposal?

Yes.

Great. Thank you. #15. The Board of Directors has proposed that the Annual General Meeting shall resolve on authorization for the Board of Directors to issue shares, convertibles and/or warrants. The proposal has been included as well in the notice of the meeting and been on our website. So therefore, I do not intend to go through this either in detail. It can be noted that the authorization may comprise a maximum of 10% of the total number of shares in the company per day when the authorization is first used, i.e., based on the number of shares today. How many?

You want me to say?

Yes.

Okay, the numbers guy. 100 million -- 133,944,860 B shares.

Thank you, Ian. Are there any questions regarding the proposal? Can Annual General Meeting be resolved in accordance with the proposal?

Yes.

Considering the votes provided in advance; Ian, can we then note that the resolution is passed with sufficient majority of 2/3 of the votes cast and present at the meeting?

Yes.

Thank you. I'm now in charge of this... #16. The Board of Directors has proposed that the Annual General Meeting shall resolve on authorization for the Board of Directors to repurchase own B shares. The proposal has been included in the notice and have been on our website as well. So I will not intend to go through these details either. It can be noted that the authorization may be made after a maximum number of B shares that the company is holding of own shares corresponds to no more than 1/10 of all shares in the company. Do we have any questions regarding the proposal? Can the Annual General Meeting then resolve in accordance with the proposal?

Yes.

Great. Thank you. Considering the votes provided in advance, we can note that the resolution is passed with sufficient majority of 2/3 of the votes cast and present at the meeting. The Board of Directors has also proposed that the Annual General Meeting shall result on authorization for the Board of Directors to transfer own shares. And this proposal has also been included in the notice for the meeting and been on our website prior to the meeting. So therefore, I will not go through this in detail either. So do we have any questions regarding this proposal? No. Can the Annual General Meeting resolve in accordance with the proposal?

Yes.

Great. Thank you. And considering the votes provided in advance, we can note that the resolution is passed with sufficient majority of 2/3 of the votes cast and present at the meeting. Well. Dear shareholders. With this meeting, we can put 2022 behind us. And I would like to take this opportunity to ask Lars to come up. He's already here, to say a few final words.

Well, I don't have any final words, but I would like to invite, and I guess all of you here are Swedish, but we'll continue to talk English. Outside, there's a bit of drinks, I guess. I sneak. But for most, there is a complete collection of all Tomb Raider games made and Lord Of The Rings games. So please enjoy the -- it's exhibition setup in a short notice by Embracer game archive. So enjoy the games. Thank you.

Thank you, Lars. And also thank you for all participating in our Annual General Meeting. And of course, we hope to see you here in [indiscernible] next year again. So if -- as we have no other questions, I hereby declare the meeting closed. Thank you.