Stillfront Group AB (publ) (SF) Earnings Call Transcript & Summary

Welcome, everyone to this Stillfront Capital Markets Day. My name is Alexis Bonte. I'm the Chief Operating Officer of the Stillfront Group. It is a pleasure to see so many of you here today physically and also many of you there at home or your offices watching us on stream. We have a packed 3 hours of content ready for you today. You will be hearing from several Stillfront executives. You'll be hearing also from some of our studios. You will be hearing a lot about our -- Stillops growth acceleration platform. I am thrilled to be here today and to be able to share with you how we are going to take Stillfront to the next level, and we have a small video that we prepared for you. And then after that, Jörgen, our Founder and CEO, will start with some opening statements. Thank you. [Presentation]

So hello, everyone. I would like to start off with what this is all about, what Stillfront is all about. And the fact is that what it's all about is that people love games. People love games because they address 3 main, deep human needs: the need to be entertained, the need to compete, and above all, the need to socialize and meet with others. The combination on the phenomena games that is generic and very old and new technology and the ways that we can provide games to our audience make this even more clear. We meet that need in a better way than ever. That is the foundation for Stillfront and our business, and we will go deeper into that during the day. So -- and hence, our vision is that -- our mission is that we would like to make a positive impact in people's everyday life through games. Here's how we looked like 2 years ago. We have our history in strategy product with a niche audience, and that has its merits, but also its limitations. So we decided 2 years ago that we should widen our audience and widen our portfolio. So now we have also casual games from, for instance, Storm8, Property Brothers, Home Design Makeover that meets these -- that caters to casual gamers basically. We also have widened our game in our portfolio so that we can cater people that label themselves as non-gamers. Non-gamer system, massive audience and very attractive audience that we now have games that meets, and not the least coming from, for instance, Moonfrog, and we'll listen later into -- to Anand talking about what their journey have been about. But they cater with traditional board games and tabletop games to so-called non-gamers, a fantastic opportunity for us. But also we added simulation games from Nanobit that has been very successful, narrative simulation games, primarily for a female audience built by female game producers, by the way. And also, we have text-based, live simulation games that we didn't have a couple of years ago from Candywriter. And Nadir from Candywriter will talk about their journey on their games and their very exciting existing games and also, not the least, what they have in their pipeline just being released, very exciting indeed. So now with this much wider portfolio of ours, that you can see an extract from, we can give this positive impact to a larger universe of players out there compared to 2 years ago. And this has been absolutely key in our growth trajectory so far and going forward. The best thing is that we have never had more games on its way out now as we have today, never ever in our history. So we will continue to develop this to even more exciting animation. That's the prerogative as being founder. I have the coolest animation today. Anyway -- by the way, Phillip, our CPO, will elaborate on our product pipeline later on. We have a vision that is intact. We would like to build the leading free-to-play powerhouse. Our strategies on how to achieve that remains intact. They are basically the same as when I founded this company 11 years ago, but we have refined them over and over and over again. We have adopted them for what is -- fills its purpose best for the types of studios we have, the type of people we have and where we stand in our journey. And today, we would like to go into these strategies and understand them better. And you can understand them better and see them more clearly, because they are really making a difference in our company today more than ever as well. So I'm really keen on that. One of the key explanations why we have reached the position that we have today, and I'm sure one of the reasons who -- taking our next -- taking us to the next level is that we have a unique balance between, on one hand, to let the studios and the game teams focus on their core knowledge and what they're really uniquely good at, which is develop, operate games, publish games and take care of their community and the users that they have there. It's absolutely key that, that is made on a studio level and not that we centrally try to manage that. However, if we don't have common things, processes, tools and things that make -- that really makes a difference value-wise, we ultimately don't have any reason to exist. So the trick of the trade. It's easy to say. It is write on a slide, but very difficult to implement and practice, is how to centralize, without centralizing in traditional meaning, but see to that we have the things available from the common ground of what Stillfront is so that we take away hinders, so we can -- so they'll not slow down the studios, and we add components so they can speed up. That is one of the key things in our business today and in order to build a free-to-play powerhouse. As mentioned, we had a Capital Markets Day 2 years ago, the 27th of November, I think it was. We made a lot of statements. We gave several promises and communicated new financial targets way back then, 2 years ago. One was that we said that we aim to create a 2x larger company from 2019 to the end of 2022. Now we have achieved creating almost a 3x larger company in 1 year shorter time. We have done that through the expansion of our audience, as I elaborated on, and through the expansion of the types of games that we have, as I also elaborated on, and we will go deeper into that. That has created also a significant stronger stability and predictability in our business through a further diversification of our revenue streams through geography, obviously, through product and audience. But also since we have the ad revenues, that we said that we aim for being at high teens of our revenues coming from ads, and they were 19% in Q2 and 18% in Q3. We also have implemented an ambitious platform, ESG platform, that really is deployed into our studios. The majority, over 90% of our -- all employees have gone through something at Still academy to be educated in what this means, our code of conduct and so on, but also in our business process for M&A. How we market that we have a responsibility from an ESG perspective, on how we market and obviously, the content of our games. So we have stopped games, we have changed games, we have declined potential M&A opportunities due to ESG. So ESG has really come into being an important part of our business. We also -- we are climate neutral since 2020 fully, including when every of our 60 million players charge their phone, we compensate fully climate-wise. We also have more synergies happening in our business than ever before, and these are accelerating not linearly with the number of studios we are. They are accelerating progressively with the number of studios we are. So these are really, really making a difference through our business platform, Stillops. And this is one of the key things during this day that we will talk about. We also have increased the number of games coming out, which I also touched upon. And our market reach that we mentioned in the short movie here, that we have really improved our capability to market on a global scale through more channels than ever, more products than ever in more markets than ever. And this came in very handy as the IDFA challenge came in this year. So we have leveraged more than ever from that. So basically, we say what we do and we do what we say. The Stillops platform. So this is basically the whole carrier of how we do things, how we create value. And throughout this whole day or this afternoon, you will hear about several examples of how we achieve results. And we have drawn all these processes, tools and things altogether in this business platform called Stillops. We have our knowledge base, the big exchange of knowledge through IDFA topics, for instance, called Stillbase. We have Stillsuite, where we have tools and technologies that we share, save money on licenses and other stuff. But very, very important are the Stillhubs that we have implemented. So today, we will listen to Jochen Gary, heading our -- one of our most important hubs that is the hub for performance marketing, delivering significant value over the whole group of ours. We will also listen to Andreas, our CFO, and Verena talking about other types of hubs that take away the hinders. Again, to get our studios to focus on their core, the Stillhubs is absolutely key for that purpose. We have [ Stillreach ], which is a very, very powerful thing for us in order to shorten time to market, to get out more sophisticated product without just plunging money in development projects with uncertain return. Phillip will elaborate on this. And again, [ Stillreach ], one of my favorites, again, how we can optimize our marketing over a larger, larger universe of opportunities on how to market in different products, in different markets through different channels. All this together is what is building significant value for us. And again, the good thing here is that we feel that we have really pulled things together. This is delivering significant value for us. But we still have so many more things to do to fill in and add into this business platform of ours. So if it's one thing, one thing that you should remember from this presentation and this day, it is Stillops, because that is what explain where we are today. And tomorrow you will hear more things that we achieve through Stillops platform. And tomorrow and the day after tomorrow, even more. So this is something that you really should takeaway from this day and this presentation. We are as committed as ever to our financial targets, SEK 10 billion with 35% EBIT margin 2023. I envision that we look to following in 4 very important dimension. We will not only have 56 games live in our active portfolio, we will have 100 games. We will not only have 60 million people playing our games every month, it will be 100 million players. And then we also will be very active on 100 markets through 100 different channels. If you excel in these 4 dimensions, you can create your own ecosystem, an own ecosystem where you generate a lot of the traffic, not only by -- through buying new traffic from outside to one game, but you can generate a lot of the traffic within your own system. And that is one of the most -- the biggest steps that we or any gaming company that has the ambition to be leading must take and will take. There is a lot of buzz about adtech software, and that is important. You need that, but you can build it. You can buy it. You can partner it. But what you cannot compromise with, and there's only 1 thing of doing it, is these 4 dimensions. You need to be good at the number of games you have actively promoted, the number of players you have, and you also need to master channels in many different markets. Then you can have your own ecosystem, which will be a big thing. Finally, many of you investors, some analysts, myself and my -- our management, people here, we expected to reach higher revenues this year. Not that we should earn more money, and we didn't really expect that we will have as good cash flow as we actually did have, but we expected. So I must say I'm a bit disappointed on that. There are some expected challenge that we faced, IDFA, for instance, and some, a few unexpected. But listen to this: if we grow as much as we did this year, despite these challenges, next year and the year after that, we will not only reach our financial targets, we will beat them. Thank you very much.

Thank you very much, Jörgen, for that introduction and also for the introduction how our Stillops business platform is really going to help Stillfront get to the next level. You'll get a lot more details about concretely how the Stillops platform is going to work, and how it's concretely helping our studios throughout the rest of the sessions. And yes, very much looking forward to beating those targets together. I think that's a good transition now to one of our studios. We have -- we're going to get in touch now with our studio in India in Bangalore, Moonfrog. It's one of the recent additions to the Stillfront family. We'll have Anand, the Chief Operating Officer of Moonfrog, to join us in the Q&A session. And before that, we'll have a small intro video and a presentation from Anand. So let's go. [Presentation]

Anand, how are you doing? Can you hear me?

I'm doing well, Alexis. Thank you.

Excellent. Wonderful. How are things over there in Bangalore?

It's a little wet. It's been raining for the last 4 weeks. So it seems like the monsoon is never ending.

Sounds like Sweden.

Except it's a lot warmer, yes. I'm in a T-shirt. So...

Wonderful. Listen, why don't you take it away. I know you have some really interesting slides to share with us here. And then you and I will do a little Q&A. Please go ahead.

Thank you, Alexis. Good morning, good afternoon, good evening. I'm pleased to welcome you to this Capital Day presentation on behalf of Moonfrog Labs and the entire Stillfront Group. As was mentioned, Moonfrog was the 19th studio to join the Stillfront Group in February this year. We're really grateful to be part of this family. I'm coming to you today from the tech capital of India, Bangalore. This is where all the tech action seems to be happening, not just in India, but we are driving technology across the world. The uninitiated international observer, India seems to be an amazing growth story. In fact, for many people, it is mysterious how India is able to achieve these growth numbers. From the time that we opened our economy in the mid-90s, India has made tremendous progress across multiple sectors. None of these match the technology growth. In fact, many people will tell you that India had an advantage because we were a late adopter of technology. And because we were late adopters of technology, we were able to leapfrog all the evolution, all the mistakes, all of the experiments that the other countries had to go through. As a result of this, India has remained in the forefront of, not just IT services, other technologies. We are now slowly part of the mobile revolution, digital economy and certainly the gaming economy. As all of you must be aware, India is a large country. There's over 1 billion people in India. Already the growth that India has seen in the last 5 years, 1/3 of these -- of our population is already using smartphones. And that should tell you the growth opportunity that India has for gaming. I'm going to spend a few minutes walking you through the gaming scene in India and then a brief introduction on Moonfrog and our strengths. And you'll see why we are so bullish about the markets that we are in. India is the fastest-growing gaming market in the world, unquestioned. Now while we may be smaller than other gaming markets like the U.S., just under USD 2 billion this year, what makes India an interesting growth story is the growth rate. India is growing at a CAGR of 38%, and what that means is that the gaming market size is going to double in 3 years. By 2025, India should be reaching the gaming market size of over USD 5 billion. That's a significant growth, probably faster than any other country in the world. Now while gaming itself is big -- I mentioned earlier that India leapfrogged all technologies. So unlike other countries like the U.S. and China, where gaming evolved on consoles and on PCs, India has been a mobile gaming space. 88% of India's gamers use mobile phones to play their games. So like I said, gaming is growing at 38%, and Moonfrog is positioned to take advantage of this, and I'll come to that in a little bit. Now there are 3 main factors that are fueling this growth. Of course, government policies play a large part of this. In the last few years, India has brought policies that makes smartphones available to almost every Indian. We have the lowest data costs. We have the fastest Internet speeds on an average across the world. Like I said earlier, 1/3 of India is already playing games on the mobile phone. There was a recent study made by Google, where they said the average household in India has 2 smartphones. That is an amazing statistic because many still believe that India is a developing country, but the smartphone penetration is so -- is growing so quickly because of the low cost. I'll give you an example. Just a few days ago, one of the largest telecom operators in India launched a full-blown smartphone at USD 20. This is for the entire device. It's just an amazing price point. My own data plan that I have, which is almost unlimited data at 4G speeds, is $30 per year. So imagine a $20 smartphone and a $30 data plan for the entire year, and you can see why India is such a fast-growing market. So majority of India, almost half of Indian users, already connect at very high Internet speeds, over 12 megabits per second. Moonfrog is extremely bullish about this market. We're excited to be where we are. We are already amongst the top 2 gaming companies out of India, and we believe we can consolidate in this space very quickly, derive value not just for our team, but Stillfront and its shareholders. Here is a sort of time line of our history. Moonfrog was founded in 2013 by a bunch of gaming professionals, actually 4 professionals who came out of Zynga. So gaming is in our DNA. From its very early days, we have always believed that mobile games is what we should focus on. In the early days, we built games for the Indian ecosystem. We were aware that the network's speeds were low. And India, 6, 7 years ago, did not have the range of smartphones that we have today. So our games were lightweight and they just worked. The users that we targeted or the users that we imagined was, for example, somebody traveling in a local bus going across mobile towers and still being able to play on their mobile phone. For the most part, Moonfrog builds multi-user games. We allow users to play against each other. By the nature of our games, it's a socialize -- it's an experience for socialization. Friends, family, come in and play our games. Within 1 year of Moonfrog's inception, we had our first major success. This is a game called in Teen Patti Gold. It has nothing to do with a teenager. The word teen means 3 in India. So this is an Indian version of the 3-card poker game. Of course, none of our games are about real money. These are all free-to-play entertainment games. Two years later, we raised our first and only round of venture funds, Tier 1 investors Sequoia, Tiger Global. The growth journey continued. In 2017, we had our next big success. This is a board game that many of you must be familiar with. It's called Ludo Club. Over the span of these years, we came to realize that our strengths lay in board games and card games. We call ourselves a publisher of evergreen games. All the games that we built are games that are familiar to our user base. So we have stayed away from more complex games. The time line over 8 years, a lot of things have happened. Most recently, we have about 160 employees. Our team is about 160. As you are aware, we joined the Stillfront family in February this year. So over our 8-year journey, we have seen success year-on-year. The last 3 years have been good. We continue to grow 30% on an average year-on-year, and we're extremely bullish and confident about our future growth in the next 5, 10 years. Like I already mentioned, we are in the business of evergreen games. So we believe that our games will be played for at least the next 10 years. This is a growing market. We have 2 titles which collectively account for over 6 million daily active users. These 2 games are different in nature. One is a board game, which is more global in nature, the Ludo Club. It's played internationally across America, Latin America, the MENA region and, of course, the Indian subcontinent. Teen Patti Gold is more culturally close to the Indian subcontinent. We are a dominant player in this space, in the Indian subcontinent. So like I said, we are 1 of the top 2 game publishers out of India. Teen Patti is a top 10 game in terms of revenue that it has grossed over its lifetime. This is a sort of quick view of Moonfrog. We have, over time, made several games. Today, I just want to leave behind a set of our current games. We continue to double down focus on board and card game titles. Very recently, we have launched a game called Carrom. This is like a mini pool game. This is a game we're extremely bullish about. We've just launched a Parchisi game and our own Solitaire in the last couple of weeks. Overall, the next year looks extremely good for us. We are going to continue to grow in this space. And just looking at the numbers, all the opportunities that we see, we're very confident of success in the coming years. Being part of the Stillfront family has been an amazing experience. We learned a lot from the other studios. Special mention call out to our sister studios, Goodgames and Candywriter. Later on in this presentation, you'll see how we have worked with them for our mutual benefit. Finally, none of us would be here if it wasn't for our team. Unfortunately, due to the pandemic, this is not a very recent picture, but this is the most recent picture that we could find. So on behalf of everybody at Moonfrog, it's my privilege, my pleasure to talk to you guys. Good luck. All the best.

Thank you very much, Anand. That was great. We just have a few minutes for a few questions, about 5 minutes, to go over those. So we'll run a few and then I will let you know when we run out of time.

I think the first question was -- is how have these kind of first few months within Stillfront, how have they been like?

They've been amazing from a personal standpoint and an organizational standpoint. I think what many people do not realize is that this relationship was constructed over a set of video calls. Even today, Alexis, you and I have never met in person. So it is to me testimony of the trust that we have developed in each other. I think it's a great story for how human relations can develop internationally. Apart from that, just a whole bunch of warm people across the entire group. And of course, we have learned a lot. I mean Moonfrog has been a company that has grown organically for the most part. It's just in recent times that we have spent time with Goodgames, we spent time with Candywriter. We've learned a lot about user acquisition, ad monetization. We continue to learn, and this is not even touching upon all the personal connects and all the knowledge that's shared across the studios from Stillbase. So it's been an amazing experience. We feel part of a larger family. And just on this call, the fact that we are across pretty much all time zones around the world, I think it's a great feeling. Thank you.

Thanks, Anand. I think it's pretty incredible as well that having never met physically -- and I'm traveling there soon now that we can travel. It's just incredible also how -- and shows the power of the Stillops business platform that you've already started doing some collaborations, already started working and leveraging some of the power that gives you, working with GGS on user acquisition, starting to work also on learning from Candywriter in terms of ad monetization. So I think that's a really great sign. Just a follow-up question, a different question on that. You mentioned a little bit briefly the Indian market. I think when Marina and I, when we looked at the pipeline in terms of M&A, what really struck me in terms of Moonfrog is a lot of the things that we saw in the pipeline and a lot of the traditional M&A that's been done in India has been around how can we get cheap development power. How can we -- to basically then sell externally. But what we thought was really exciting, what we thought was the mega, mega opportunity was the Indian market itself. So for us to see that you're 1 of the top 2 Indian continent game developers, we think -- if you're able -- not even to stay top 2 or 3. Of course, you're going to go to #1. But if you should just stay in the top 5 or top 10 over the next 4, 5 years, that is a massive, massive opportunity. So just -- how do you see the development of -- how do you see the Indian market developing over the next few years beyond just the 30% growth or 40% growth?

I think I'll just sort of stay with the growth for a moment, right? So like I mentioned in the presentation, already 1/3 of the Indian population is using smartphones. And the numbers, the growth rates show that in 10 years' time, 96% of India will be connected on a smartphone. And that's basically 1 billion users that we can target in this region alone. Digital economy has got a huge lift from the government policies. India is an economy where small transactions happen in really high volumes. Moonfrog is extremely well placed to address that market. All of our games, we have sachet-level pricing. So essentially, we are very bullish about leveraging the growth that's coming in India. Because of our areas of focus, we remain true to evergreen games. India continues to be a space where people are comfortable playing traditional games. We have such a long history of entertainment. I was reading somewhere recently that fifth century, there was a poet called as Kalidasa. And in those days, apparently, the norm was people used to spend 4 hours a day on leisure and entertainment. This was 1,500 years ago. So all of that tradition, all of those habits carry over. So even today, amazingly, the most recent data shows the average Indian gamer is spending 3.5 hours a day playing games on their mobile device. It's incredible how 1,500 years later, nothing seems to have changed.

Thank you, Anand. We're out of time, but I do want to make one more point and ask you kind of one last question. Because you've been also finding success outside of India. For example, I understand recently, you had the #1 ranked game on Snapchat. And also, if you could briefly go over -- you've got plans for some new games. I understand you're going to reuse the engine for Ludo to do a Parchisi version, which is kind of the Latin America. So if you could just briefly go over those?

Sure. So yes, you're right. We launched our Ludo Game on the Snap game -- on the Snapchat platform a few months ago. We were -- we continue to remain amongst the top 3 to 5 games on Snap. We're just sort of moving our Carrom game to the Snapchat platform. So that's one area of growth. The Ludo Game is growing internationally across Latin America, MENA. You mentioned Parchisi. Because Moonfrog has a proprietary tech stack that we have built over the years for board games, we are able to churn out a board game in a matter of a few weeks. So Parchisi, interestingly, is a game that actually came out of India, but now it seems to be growing in Latin America. So that's an opportunity we identified a little under 2 months ago, and we are already talking about a launch possibly in the next week or 2. That's how quickly we can turn around the new board game. So really excited about the opportunities in Latin America and MENA.

Thank you very much, Anand. Really, really excited to have you guys on board and to be working together and capitalize on this massive opportunity together. Thank you.

Thank you, Alexis. Bye-bye.

Yes. Okay. Perfect. So now I would like to welcome on stage our Head of M&A, Marina. Marina and I are going to talk about the Stillfront model in terms of the acquisition and also organic growth, the 2 engines of growth here at Stillfront. And I think we'll be able to illustrate how closely we work together.

Thank you, Alexis, and hello, everyone. Very nice to see you here. I joined Stillfront in January 2019, and I can really say I've been keeping myself busy since then and I've been having a lot of fun. So there are 10 studios and 1 game asset that joined Stillfront during this time. So it has been intensive indeed. And how could it be even possible? So with the M&A team as of today, we are 2 people, and I was the only 1 when I joined. Well, and that's not without reason that I'm standing here, together with Alexis, just exactly as it was 2 years ago at our Capital Markets Day. Because in our M&A approach, so we always work really closely with our operational leadership. And those are, Alexis, of course; Phillip, our CPO and our senior vice presidents operations who work with our studios. So today, I'm really happy and proud to say that despite the softness we've seen in the market, both COVID and post-IDFA, we do really see solid and strong M&A pipeline. So we are speaking about approximately 120 studios and around 110 game assets that we see as potential near and midterm M&A targets. And with near and midterm targets, I mean like there is a potential deal within probably 18 months. But of course, not every one of those studios and gaming assets will join Stillfront because our approach is being highly selective. We like to speak about M&A approach in terms of strategic chessboard. Like every motion strengthen our position in the market. Also, often, we speak about pieces of the puzzle. Like if there is competence that we lack currently within the group, there is knowledge and expertise, we do not have and cannot build with our own resources within the reasonable time, then probably the best approach to that is to find someone who brings in such competence. And therefore, so we always think about such competence can be a new product, new channel. It can be broadening our audience. It can be becoming more cross-platform with this target. Also establishing better geographic reach, just as we spoke about Moonfrog. So -- and that's all about diversification. It's about mitigating the risk in our portfolio. So this is the importance of our highly selective and truly diligent M&A approach. And we've seen that now in the current market environment, it has become more and more important. And how can we facilitate that? Well, this is our M&A process. So a very important part of that is, of course, sourcing. A lot of sourcing is done with our internal network. So it's people within Stillfront Group. Of course, it's also networking, attending fairs and events and like during screening, following the trends and trying to search for good targets. Also, we have strong and well-established relationships with the banks and M&A boutiques, who have good competence within the right segment, within gaming. And then important part of that -- and that could never be possible with the only M&A team efforts, its assessment and selection of the targets with a good fit. And this is done not with M&A efforts only, but, of course, with the support and collaboration with our operational leadership team. In the M&A approach, so we now have knowledge and competence to work really efficiently. We have our road maps and routines. And there, so we have pretty standardized approach and process that we follow. In this process, we work together with our finance team as well, our legal team. And we have great support from our advisers. And all of that leads one day or another, not always, but in the majority of cases, to the happy day when we sign and close the deal. But we do see it only as the start because from acquisitive growth, the important part to get to successful onboarding and to successful organic growth. And that's also the reason we work so closely together. And with that, I would like to leave the word over to Alexis, our COO, to speak about organic growth.

Thank you very much, Marina. Appreciate it. I think one of the important things for me as well and that some of you might not know is I'm actually one of the founders of the studios that joined Stillfront, eRepublik Labs back in 2017. And for me, one of the reasons for joining a group like Stillfront was the ability and the possibility to work with incredible talent from around the world, right? And for me, I would have never have dreamed of being able to work with some of the talents, such as Marina, the people that she has in her team or the people that we have here in the group to be able to do what we're doing right now. And that's really something quite special. And I think when we say that we work very closely and that we're always looking for pieces of the puzzle, if you look at our Stillops business platform, every single one of those pillars, we're always looking at every single M&A opportunity. How can we make one of those pillars stronger? We look at Candywriter. They're excellent at ad monetization. That can become ad monetization hub. And then they become part of us. Moonfrog joins us. They help Moonfrog with ad monetization and they have good results. So it's always kind of now almost like we get the snowball effect of additional synergies or additional collaborations with every studio that we get on board. But let's talk about organic growth. As we know, 2020 was a bit of an abnormal year. So I think it's very important with concrete numbers and concrete studios to show you how the engine is working at full steam, and how we are going to be able to improve and improve this engine as we go. So of this 11 studios that made up Stillfront going into 2019, those 11 studios have had a combined growth that is faster than the underlying game market. So in the last 2 years, these 11 studios have grown by 27%. The total games market has grown by 18%. So you can see that all of these here. The growth has been driven really by the strong performance from evergreen titles. There was a Twitter exchange one day that I know somebody was talking about old games, and I replied, Stillfront loves old games. And I've got people talking about it. Yes, we love old games because when you are able to do for years and years and years, you get that predictability, you get that growth. You know that those gains to become a hobby. You know that as long as you're able to capture and care for the community, those games can live forever. We love old games at Stillfront, and you're going to be able to see what that means in reality. You know you can work with live operations and all those sort of stuff. And then on top of that, so if you add the fact that we're being very selective in working with these evergreen games, and you have an increased number of collaborations, increased number of super powers that we can give to the studios through the Stillops business platform, that's part of the secret sauce of how we're able to basically make those old games continue to grow. Second part, obviously, is cross-platform. By applying a cross-platform strategy, you're really able to increase not just the revenues but also the level of the engagement that you get with your games. So that's how you get 11 studios with mostly a old games catalog to continue growing. That and, of course, new launches that our CPO, Phillip, will talk about. Concretely, if we start with the studio that is close to my heart, obviously, eRepublik Labs. So eRepublik Labs was acquired in May 2017. And at the time, it was -- it hadn't launched yet War and Peace. It was just before the launch of War and Peace, so great timing, Jörgen. And -- but we had -- what, Jörgen and, at the time, Sten, which was our CFO the time before Andreas joined us. What they had spotted and very correctly is we were very good in our niche. We were very good at doing 4X strategy games, and we had an engine for making 4X strategy games, and we had the whole technique of doing team selection, and all that. And we had spotted this niche of the American Civil War in terms of 4X games. So we launched this game called War and Peace. We're able to scale it quite successfully in the first year, first 1.5 years, more or less. And then it kind of started declining a little bit. And we have been able to basically get that game that is now 4 years old to actually grow significantly and break records last year, again, by basically getting help from GGS in terms of how do we improve our marketing and all that. Getting tons of information in terms of features from other studios. What are the features that work, what features have you already tested. All that sort of things have allowed the team at eRepublik Labs to find ways to get a 4-year old game, not only to grow again, but to break records. So that's an example. As you can see, we have grown that studio by 77% over the past 2 years. And also, whilst doing this, we've improved the War and Peace engine, and now several studios across the group are looking at that engine for potentially launching their own games on it. Another example is Playa Games. This is a studio that our SVP of Operations, Armin, who's here in the room today supports. And that studio was acquired by Stillfront in December of 2018. And speaking of old games, their main game, Shakes & Fidgets has been around for 12 years. That studio has grown in the past 2 years by 157%. That game is breaking records daily in terms of revenues after 12 years. And what happened there applies. So just -- so you understand better how the sausage gets made. So Playa at the time, when we acquired them, had a big part of their team working on a new game. And they've been working on that new game for over 1.5 years. And we were able to see that, that new game had actually quite low chances of success. And we're also able to see that they were maybe not giving Shakes & Fidgets all of the love that they could give it. The live operations written was not as strong as we could see in other studios and all that. So by sharing those learnings with Playa, not telling them what to do, just giving them the data, sharing the learnings, think, we were able to get them to refocus on Shakes & Fidgets, kill that game, kill the game that was on focus. This is a games industry. When a game is going the wrong direction, the data tells you that it's done, okay, you kill the game. So they were -- they killed the game, refocused on Shakes & Fidgets, and you can see the growth that they've delivered. Marina, anytime you find an old game that can grow by 157% over 2 years, we're takers as you know. So that's really interesting. And now again, Playa is in a position to evaluate, develop like a new game again. And of course, one of the options for developing their new game to go faster go to market, increase their chances of success is to look at the various group -- the various engines that we have within the group to develop that new game. So that's Playa. Another example is Dorado Games. Dorado Games was one of the first acquisitions made by Stillfront. It was acquired in June 2014. And Dorado, at that time, had difficulties in really reaching scale with its existing games portfolio. The declining games portfolio, they were kind of struggling to keep stable. And their big struggle was to basically find a new game to develop. They were trying to find a new game developed. They weren't finding something that was hitting the kind of KPIs that they needed. So at the time, what they did is they simply decided to partner with Bytro. Bytro is a very unique, very special grand strategy engine that is really special in the market and has a very dedicated niche that likes it. But they have limiting developing power in terms of using that engine and making more games about it. So basically, those 2 studios partnered together. Bytro offered up the engine for Dorado. And fast forward a few years, not only was Dorado able to develop a game with a much less risk and much faster at a much lower cost, that is the basis behind them growing over the past 2 years by 279%. But on top of that, Conflict of Nations, which is one of the latest version of the games that they've done on that engine, is now one of our largest strategy titles. And on top of that, because it's not just 2 teams improving -- and it's just not 1 team proving an engine, it's now 2 teams improving an engine, Bytro has also benefited from all of the improvements that Dorado has made to the engine. So you get 2 studios benefiting from that engine share. So that's another example. And then if you look at basically the cross-platform aspect of things, offering games across platforms is really a key component of our product strategy. And it's also another reason why we love these evergreen games. We love these communities, these dedicated communities to games. Basically launching on mobile really increases the engagement that you see in browser and adds additional revenues. And you can see here examples of Supremacy 1914, which is one of the Bytro games. And you can see the impact of the mobile launch to the revenues of that game. Same thing for World War III and then also, obviously, Shakes & Fidgets, where you can see just the impact of the mobile version. And what is interesting in here as well is that it very, very rarely causes cannibalization of the original platform revenues. It's really additional engagement. And more importantly, it enables you to target new players and, therefore, basically creates a profitable user acquisition funnel. So it's really a way, not just to extend the lifetime of the game, not just to increase the revenues, but basically to bring fresh players and new players to a title. And Phillip, we know, will tell us a lot more about interesting things that we have in our engine sharing. So that's really was some examples that I wanted to share with you. Marina, thank you very much for doing this with me. And I think now we're going to transition to Candywriter, where we have Nadir in Miami that's going to join us. We'll start with a short video. And then I think Nadir will have a small presentation, and we'll do a small Q&A. So let's go forward with Nadir. [Presentation]

Hello, Nadir. How are you doing?

Doing great, Alexis. How about yourself?

I'm well. I'm well. Please don't tell me it's miserable and rainy in Miami. I won't believe you.

I don't think it's ever been miserable and raining in Miami, as you'll see next week when you come here and visit us.

Wonderful. I'm really looking forward to that trip.

And we're looking forward to having you.

Excellent. Nadir, I know you've got a few slides that you're going to share and present with us within the next 10 minutes, and then you and I will do a quick Q&A. Are you ready to go?

Let's do it.

Let's do it.

First, I wanted to thank the investor community. It's both an honor and privilege to be addressing you again. I spoke this time last year at our last Capital Markets Day, and I'm happy to say a lot has changed positively for our company, as we expected it to. BitLife has had a tremendous year. The brand just celebrated its third birthday, and the game remains as popular as ever. Users continue to request new features. We're constantly inundated with comments and suggestions. Really, it just shows us that just like life itself, really the possibilities of the game are limitless. YouTubers continue to make unique and compelling content based on the game. They can rely on BitLife as a vehicle to drive their own engagement. Therefore, the flow of videos on YouTube stays -- remains very high and the user population remains very engaged on that platform. Our advertising continues to bring in new users at scale. We don't seem to have any trouble even 3 years in finding users that haven't been exposed to text-based narrative games. We're capturing those users and keeping them engaged and inside our app. All of this combined has shown us that we've really struck a cord with the user community with these text-based narrative games. They want more games and more content in the BitLife model, and we're more than happy to oblige them. We've been part of the Stillfront family for 18 months now. I remember about 2 years ago, Alexis, you were over here in Miami for dinner and you were describing to myself and Kevin the powers of synergies within the group. You described Stillfront as a place where we could continue our creative vision, but also offload some of the responsibilities that have been bottlenecking our ability to produce new content. Just like our game icon, as you can see above my shoulder here, our product at that time was just an infant. And just like an infant or a child, it requires many hands and minds to help that child grow up to its fullest potential, a whole family, if you will. Stillfront became our family just a few months after we had that dinner, and we're excited to tell you how we're able to nurture this product, together with Stillfront, to set ourselves on the best chance for success. It all started with the initial acquisition about 18 months ago. You may remember in the last couple of Capital Markets Day, our 2 main goals after the acquisition were to: number one, deliver for BitLife in more languages; and number two, to deliver more BitLife apps and story lines in the way of spin-offs. We're happy to say that we were able to achieve that. In order to achieve that, over the course of the last 18 months, we had to kind of cultivate this tree that we were growing. We started by developing BitLife into an extensible, cross-platform narrative engine that we could reuse to create more spin-offs and localize. We set upon partnering with our sister studio, Goodgame, to release the German-localized version or essentially to develop at first, and we're seeing great success with that game. So as we cultivated this tree, we were able to see it start bearing fruit with this very first version of foreign language BitLife in German. I'm happy to say that as of today, it's the #1 game in Germany soon after its launch, and I believe it's going to do many great things. We've been able to see through this localized version that a lot of the great performance that the English version had was able to carry over into this foreign language version. This gives us the great confidence that we need to know that pursuing foreign language versions of BitLife is the right path for our company. Furthermore, continuing along with our growth journey over the course of 2020 and 2021, we were able to use our newly developed BitLife engine to deliver the first spin-off version of BitLife, called DogLife. Upon its release, we were able to rise to the top of most of the English-speaking markets, all of the English-speaking markets that is. We got to #2 overall game here in the United States, #1 in the U.K. and Australia, and the game remains a top 10 game in all of the English-speaking languages. This is especially exciting when you think that we were able to do this with just a nominal amount of user acquisition and cross promotion. As we continued to develop the game based on user feedback, we're really excited to enter into its next stage where we really start going out there to capture new audiences. We're really excited about what the app can do. Much like the German version, the early indicators of the app are showing us that there's indeed a high demand for these spin-offs. More games in the BitLife model, and we're just really happy and excited to bring them to market. So over the course of 2022 and beyond, you could expect a lot more in the BitLife brand from our company and our sister companies in the Stillfront Group, starting with BitLife German, as I mentioned, DogLife, BitLife in perhaps Spanish, Portuguese. Really, the options are limitless and further BitLife spin-offs in English in some of those foreign languages as those opportunities become available to us. In order to have achieved all of what we achieved over the course of the last 18 months, I want to describe how the synergies in the Stillfront Group have allowed us to get to where we've been, where we're at, that is. As I mentioned earlier, BitLife and Candywriter has had a tremendous year of growth. Jörgen mentioned that in both the conference call and the presentation that he made. It was very kind of him to attribute that to Kevin, my partner, and my professional management. But the reality is that they were a result of the synergies that we were able to introduce to our company as being part of the group. We've always considered ourselves a small but efficient studio. But as we started to work with some of these sister companies of ours, we were absolutely impressed with some of the ways that they handled their business. I'll start out with Goodgame. We leaned on good game to lend their localization expertise and project management capabilities to make the monumental task of translating a text life game a reality. One time we measured BitLife, the depth of text in BitLife. And believe it or not, we've determined that there was more text in the game to be displayed than even in Leo Tolstoy's War and Peace, which is a famously large book that you wouldn't want to drop on your foot. That should give you a sense of how big BitLife is from the perspective of text and how monumental a task of translating that into a new language would be. We were able to lean on Goodgame to help us get that done. It was absolutely impressive, how they were able to both manage the project and manage the localization aspect to deliver that game in a relatively short window. And we're -- like I mentioned, we're really happy to see that game at the -- sitting at the top of the charts in Germany and Australia or Austria and Switzerland at the moment. Furthermore, we wouldn't have been able to focus on our engine supporting Goodgame in their effort to localize BitLife or creating DogLife if it wasn't for some of the other synergies that were made available to us. One example of that is Kixeye. Kixeye has essentially removed the accounting burden from our internal team while still being readily accessible and reliable to us. They made themselves feel like their own -- our own internal accounting financial team. And that's allowed us to do what we feel we do best, which is creating engaging product. Furthermore, they keep on this ever-changing regulatory environment and make sure that we're, at any given moment, compliant with all aspects of regulation across the world. Furthermore, we've received a ton of support from Stillfront HQ. At a group level, we benefit from the streamlined processes and assistance in critical areas, such as GDPR compliance. As well we take advantage of the strategic relationships with gatekeepers in the industry, introductions to people from Google, Apple as need be to help move our products along. In addition, we've taken advantage of group-level cost savings that come with being part of a strong and powerful group, such as Stillfront. We were able to drive down costs in key areas such as attribution, drive up things and revenue share such -- in areas of ad monetization, for example. All of this together has resulted in a stronger Candywriter. Taking advantage of the synergies has allowed us to grow and focus ourselves on the areas of our business that, number one, we feel we do best and what we enjoy the most, which is creating compelling product. So these are all synergies that I consider inbound. There are synergies that help us out as a studio. And as these synergies allow us to grow, what are we doing for our sister studios? It's given us the opportunity to contribute to the other 20 studios that we're a part of. Inbound synergies allow us to focus on the areas that we do best as a studio, as a United States-based user base that we could share with our group studios. And furthermore, we've developed several viral marketing techniques, which have made themselves evident in the success of things like BitLife, BitLife German, DogLife. We continue to develop these types of techniques and are ready, willing and looking forward to sharing them with our sister studios. So we see how these inbound synergies and outbound synergies work together, and we can see how these partnerships flow together in this graphic here. Where synergies come into us, we make use of them to create a stronger studio. We, in turn, relay those synergies back out to the rest of the group. It kind of reminds me, Alexis, of a rope and a wheel, right? So these 2 tools have been available to humankind for centuries, generations, millennia. But it wasn't until Archimedes that figured out when you combine the 2 into 1, creating a pulley, that you could literally move mountains. That's what we feel like these synergies have provided us. We've taken the tools that were at our disposal, the tools that were at the disposal of our sister studios, and we were able to combine them essentially into a machine that is able to do great things, as we can see currently on the top charts.

Absolutely. Thank you very much, Nadir. I think we're running out of time. But do you have any other slides or...

Yes. Just one. If we zoom out a little bit more, we could see how countless opportunities, just like in my graphic, illustrates how countless opportunities could combine across 21 studios.

Excellent. Thank you, Nadir. And I think it's just a great illustration, what you've been doing, of the power of the Stillops business platform. And when I mentioned that for me, one of the reasons we're in Stillfront, was the ability to join with incredible talent. Don't forget that behind every pillar in the Stillops platform, there's incredible talent, incredible expertise that as a single studio, you would never have access to. And that makes a huge amount of difference. I'm actually talking about incredible talent. One of the things that I'd like to announce today, that I think we've just announced yesterday, is we have Amy Lee, who is here today with us, who's just joined us from Blizzard Entertainment, where she was leading mobile and also working on synergies with Activision and King. She joined us yesterday, and she will be leading and providing support to our U.S. and Canada-based studio. So welcome, Amy. So you get extra support, Nadir, to do even more synergies and get that flywheel going even faster.

Looking forward to it.

Excellent. Just conscious of time, we'll go through some of the questions that I had. So you mentioned DogLife a few times. Just so you know, I'm in the uncertain position in DogLife of being a rottweiler that's dominated by a chihuahua. So I think I haven't figured out all of the game mechanics yet. So I'm expecting some tips when I come to Miami. But what has the reception been like for DogLife?

Well, I think anybody that's ever owned a chihuahua will tell you that they're very dominant for their size. The reception has been very good. I think we released the game. We didn't -- we made a very passive announcement of it as we wanted to kind of observe the metrics, the reception and tune up the game, just like we did with BitLife. But just like BitLife, the popularity of the game definitely got ahead of itself. It shot up to #2 overall in the United States, #1 -- overall game that is. #1 in the U.K. and #1 in Australia. It remains a top 10 game. Right now, the metrics are indicating that it's a very well-liked game. People enjoy the prospect of playing as a dog. And it provides a whole new facet to the things that they love about their life, a new way to play it.

That's great. And a very, very impressive launch, beyond even my expectations, to be honest, so well done. You've built an amazing community around BitLife, and there's huge following for BitLife in social media. What's the secret sauce? But don't give away too much.

It's conversation and engagement, right, and creating engaging content that speaks to the audience. I think that we stay on the pulse of what's popular, right: meme culture, for instance, current events. And we have a system inside the game that allows us to insert current events and things that are hot right now live. I think people see that. It just keeps the conversation going. People say they game, and they can tell that it's an ever-changing, ever-evolving game that stays current. And just like everything else that's current, the conversation stays alive because of that on social media.

So BitLife Germany just made it to #1, the German version. So what's the next language? Where are we #1 next?

Well, as the polyglot at Stillfront, Alexis, you're the person that knows the most languages. I think I'm going to rely on you to tell me what language may be best, perhaps Spanish? We're getting a lot of demand for Portuguese as well, but I'm just super excited to see the way the German version landed. I think even 3 years into the BitLife brand, that just the sheer launch of the game could rocket it to #1, shows how much people want to play games like this, not only in the United States but all over the world. So I think the future is very bright for original BitLife and the many languages that we can make it available in.

That's great. And just to conclude quickly in the 30 seconds we have left. So what's next for Candywriter? What do you have planned for 2022?

I think we've found a great pattern of success here, right, with foreign language versions of BitLife and spin-off versions of BitLife and narrative games. So I think you're going to see a lot more of that out of us. Now that we have our engine tuned up and firing on all cylinders, we're just really excited to keep using it and delivering more products in this vein.

Wonderful. Well, thank you very much, Nadir, and I look forward to enjoying some of that sunshine in Miami in a week or so. See you very soon.

Looking forward to it.

Thank you. Perfect. And now we are going to transition to product and one of our core new pillars, which is Stillforce, within our Stillops business platform. Our CPO, Phillip, is going to talk about our product pipeline but also engine shares and how that's an essential part of Stillforce, essential part of faster go-to-market for higher chances of success. So Phillip, please if you can come on stage.

All right. Thank you, Alexis. So as part of my CPO update, I want to talk about how we achieve and sustain organic growth due to our product pipeline. This is all part of Stillops, which is namely new game development, engine shares, we touched on it already and, of course, also, platform and regional expansion of existing titles. There are, of course, many more aspects in Stillops, which are also helping to organic growth like life operations, marketing for existing games. But today, I will focus on the new games, which is often the most fun. So we did a major step-up compared to previous years. In 2021, our Stillfront studios have been working on more than 40 new games. And so far, we have only canceled about 15 of those productions at various stage, which is significantly lower than what we are expecting before. And to a large extent, this is the way how we changed our approach to games, which I will come to in a moment. Even more important is that right now in Q4 of this year, we are on 15 games in soft launch. We already teased a couple of these, and I have the chance to show you a few more. And all these games are in various degrees of soft launch. Some are in more early technical launch phase. Others are currently optimizing the retention or the optimizing the monetization, and others are already at the point where we are testing the waters for marketing scalability. And the way how we achieved this of so heavily increasing the amount of shots we have to find more successes is our even more enforced focus on spin-off and engine shares. So basically not always trying to reinvent the wheel to make a new game, but much more relying on existing technologies, existing infrastructure in these aspects. This also allowed us to significantly reduce the cost per game. So we not only have much more games in production and in soft launch, but we could also do this on average much cheaper. And when we look at the games which are currently in Q4 on soft launch and we look at our usual general split, then I'm very happy to see from a product strategy-wise that it was a very even split. So if you look at simulation, RPG action, then Casual and Mash Up and strategy, fairly evenly distributed. Strategy is slightly smaller but is also just naturally because strategy games are just bigger production, which take longer. But of course, when they succeed, they usually also have the longest lifetime. So just about -- thinking about Goodgame Empire, it just had its 10-year anniversary and still contributes heavily to the group. And we hope to achieve this again with future titles. Now to be able to do this, to manage like the production of more than 40 games this year, we had to further improve the support that Stillfront can give to the studios. And I'm very happy to report that we reached a point that it's very clear when a studio joins Stillfront, it will have major advantage to developing new games compared if it would do this alone. And this all starts with sharing of KPIs. Because at the end, it's all about this. Like the game's essence, the KPIs, they need to be good. And we at Stillfront with 21 studios, we have access to KPIs and all kind of channels, stores and platforms. So when a company wants to soft launch a strategy game on Android in Poland, then we can give them the right KPIs. So what would be a good loading time for a strategy game on Android in Poland? And this is so important, right, because the studio doesn't need to find them out for themselves. At the same time, we can also support them through all the soft launch phases. That would mean, let's say, a given company has issues with resolving the loading time on the Android devices, which is a common problem. And then generally, when it's about making new game developments, there are many problems which are just coming over and over again. So when a company develops a new game and has a challenge, chances are very good that at least 1 of our 21 studios did already have this challenge and overcame it. Even if they have not overcame it, they can still at least share their learnings out of the failure, which is already great. So this also can even help us to cancel the game faster, if it needs to be. But of course, most of the time, it's about like supporting them and getting over this. We do this by conducting the peer reviews with both on the group headquarters side, so it would be Alexis and me and other supporting units, but also even more important, have -- giving them access to experts from the different studios. So imagine a studio wants to do a new puzzle game, and they try to figure out, how do I best balance the difficulty of the puzzles. On one side, if they are too hard and it's frustrating, and people churn. But if they're too easy, then player would just burn through the content and don't pay. So it needs to be like the sweet spot in the middle, and you can try to figure this out on your own with like testing and so on. But you could also talk to the experts at Storm8, who are basically living and breathing puzzle games. And this is what we can offer to them. And that's why it was also important for us to expand the genres, the platforms in the group to just to expand this access. And a perfect example for this wide range of coloration is BitLife Germany. So it's the reason that the text here is German, no mistake on this site, which we already touched about. But I just want to get a bit more in detail how complex such a production is because BitLife is one of our top games already in Stillfront. But it's only available in English. So it was, from the very beginning, absolutely natural and clear to us that we want to localize this game. But this much -- it sounds much easier than it actually is because it's not only there's tremendous amount of range of text that needs to be translated, but more complicated is actually that this game, which may look like simple on the surface, is highly complex in terms of how sentences are generated both on players' choices and on randomness. So the English version may generate a sentence like "I bought a car for my mother." And it can easily replace it to "I bought a house for my father," very simple. However, try doing this in German, whereas the gender of the persons and also gendering of the object changes the sentence structure. So what we needed to do and what Candywriter solved by working with Goodgame is basically partnering on developing a completely new stand-alone product. So this game is a stand-alone app published by Goodgame to overcome this like with a complex grammar tool behind, and it would be the same for future languages. And by the way, the game has been launched in Germany because Germany is a strong -- the second strongest market in the whole Stillfront portfolio right after English. So there may be other languages like Spanish and Portuguese, which obviously have a higher range in terms of addressable audience. But Germany is just so strong because of our marketability. And we are, indeed, right now at the point that we are in a more advanced stage of soft launching this game, treading the waters of seeing how much we can scale the game. And as Nadir already mentioned, I was very happy to see that just today, the game hit the #1 download spot on iOS Germany. So -- and we will, of course, see how this goes and, at the same time, consider more languages as we touched on. And what was very important is due to this collaboration, Candywriter had the chance to focus less themselves on the spin-off, on DogLife. And DogLife is a great example for what I mean with spin-offs. So it's really all about not always trying to reinvent the wheel, starting from scratch with doing a game, but rather also looking at what do we have which is already successful and how can we like make a new game out of it, more than just like changing the setting but actually adding new game play elements and new story aspects. So while BitLife is all about living the life of a human from birth to death and having careers or like crazy challenges and a lot of humor in it, now it's about actually being a dog. So how is it to be living a pet or even being a street dog and doing all kind of mischief with it. Another example for an upcoming spin-off is a new match-3 and build project by Storm8, where we don't have a final name on it yet. Storm8 already had seen great success with Property Brothers, which was the first spin-off. So they had Home Design Makeover!. Then they went to Property Brothers new setting, also a new puzzle layer on it. And now there will soft launch another title. Again, new setting, it will be around of the gardening and again, a completely new take to the puzzle segment. But of course, a lot of learnings and also a lot of technology from this, which allowed them to develop this game much faster and with higher chance for success and just starting from scratch. The last one example for a spin-off would be Iron Order 1919, which is another game on the grand strategy engine by Bytro Labs. As you may know, the strategy game of these engines World War I, World War II, modern military, while this one is giving it a more fictional spin to basically an extended World War I with fictional elements like maps and so on to -- again, based on some marketing tests, seeing like some new audience and some new variations. And this project is especially interesting to me to present you here because it shows great what we mean with this engine approach because we already talked about the success we had with sharing the engine between Bytro Labs and Conflict of Nations to launch more games. And now we go even further. So on this 1 engine, we currently have 5 games developed by 3 studios. So the first 2 ones are the Bytro Labs games. Then we have Conflict of Nations, which were very successful with the web and mobile version. Then we have Iron Order, which is the spin-off at Bytro Labs, currently in a very early phase of test launch. And on the right side, we have an upcoming Arabic version and coloration with Babil Games, which I will talk about in a moment. But just again, to go a bit in detail what we mean with engines, it's really about not only like reusing certain features, which is great, but it's much more about the tool sets and infrastructure. Think about like how levels are generated or even how like certain assets are generated and combined. And at the same time, also back end, like such a strategy game like Conflict of Nations needs a significant server architecture behind, which can simulate all the thousands of battles in real time. And this is something you don't want to develop from scratch if you don't have to. And that's why it's so great to try to reuse these engines as we did here. And this is not only about doing spin-offs, which is already great. But in Stillfront, we also put great efforts in setting up our studios to share the engines. So to be able -- so that Bytro in Hamburg can share the conflict of -- like the engine for Conflict of Nations with Dorado off in Malta and extend further this. And it's also an example where the engine share product was actually more successful than the original games, which then the game went back to Bytro, as Alexis already touched on. We definitely wanted to further enhance this. And during 2021, we started various new engine share projects, and a couple of these are already in soft launch. So I will touch on 2 of these. The first one would be Love and Passion. This is a new narrative game based on Nanobit's narrative engine in collaboration with another division at Goodgame Studios. So Nanobit has been very successful with this romance narrative games in modern settings. So it was very attractive for us to look into ways of expanding the audience reach here. And what the studios have found due to testing is going in a Regency England style, even working with famous piece like Jane Austen novels. And at the same time, also going further, modernizing the genre, adding some diversity as shown here. So it's a great success on ESG. So modernizing, giving something new. And again, it's much more than just sharing technology. It's also sharing experience in terms of actually writing guidelines like how to write a story which is engaging and gives me choices which are meaningful, and that's the right side. Like which -- on one side, keep me engaged, don't frustrate me, but can also encourage me to monetize. And this is what the 2 studios that collaborate very closely, and this game will soft launch in Q4. On the right side, another great example, which is SIEGE: Apocalypse, which is a collaboration of 3 studios, which would be, at the beginning, Simutronics developed SIEGE: World War II. Then they gave this game, which they transferred it to Imperia, because Simutronics wanted to focus on a completely new game development. So Imperia took over the life operations and the marketing, continued to grow and improve the game. And now this engine came to Kixeye for them to create a new game. So while SIEGE: World War II is, as the name suggests, in the Second World War, this game will be in a modern military setting, which fits great to what Kixeye is already known for with their game, War Commander: Rogue Assault. And this game will also soft launch in Q4. And looking at this example of 3 studios collaborating, this is exactly what we want to see. And I'm extremely happy to report that with our Stillops initiative, we have counted more than 100 such collaborations. And I'm talking about real significant collaborations like performance marketing, shared financial hubs and region and platform expansions, so everything which does either generate revenue or save costs. This does not count in 2 game designers exchanging experiences. This is, of course, extremely valuable, but this happens every day all the time. So this is uncountable. These are all big collaborations. And I think we have a very good year, but we want to grow even further. And I think this is also visible in our acquisitions. So that's why I want to highlight a couple of acquisitions we did in 2021. So first of all, Moonfrog, we already talked about it. It's not only maybe the fastest-growing market, but it's already, in fact, the biggest market when it comes to downloads on mobile. Still, many, especially Western companies, are struggling to monetize in this market. And we really believe the only way to be successful there is work with a local player. Let's say someone like Moonfrog, who is actually having deals with local corner stores to give people who don't have access to online banking still opportunities to pay in the game because they can literally do it in an Indian corner store, which is something which, without a partner like Moonfrog, would be not possible for a Western company. Then we also expanded our strength in the MENA region further with Jawaker. And so not only in the MENA region, but also the 420 million Arabic-speaking people worldwide that we want to address. And Jawaker also has quite success with their own reseller networks in this Arabic region. And these 2 studios are already working together to improve this and learn from each other. And then the last group would be both Sandbox Interactive and Game Labs, which both brought in very successful titles, which are only available on PC Client. And as Alexis has already shown, we had seen great success with bringing new games to mobile, and we believe that both of the studios could do much better if we were to support them on expanding their platform reach. And the first one would be, of course, Albion Online, from which we launched the mobile version already this summer. And of course, it's not only a significant technical challenge to transfer your game from PC to mobile, but for example, also a completely different way of doing marketing for this. And this is something which we can support. And we are still doing. So this game still has a lot ahead in terms of reaching further scale on mobile. Then in the middle, I have The General, which is the Arabic version of Conflict of Nations, which is, again, a 3-studio collaborations: Dorado as the developer of Conflict of Nations, Bytro Labs as a marketing power behind Conflict of Nations and Babil as our traditional local expert in the MENA region. And this was about like localizing the game, especially culturizing the game, which is very important for the region. And this game is currently in an early soft launch phase where we are checking the tech KPIs, and then we'll continue. And then, as a conclusion, I want to give a bit of an outlook with Naval Action because it's another way of collaboration we do. So Naval Action is literally the flagship game by Game Labs. It's a very successful PC premium title, and we believe this game can be much stronger and much bigger if it were a free-to-play game. And we are working with them. And we are expecting to soft launch the free-to-play version in 2022, which will be one -- hopefully one of the first game which will help us to maintaining this very strong pipeline also in the years to come. All right. I hope this gave you a good overview about everything which is going on and a slight outlook. Yes, again, a couple of these games are already in soft launch, so I recommend checking them out.

Perfect. Thank you very much, Phillip. And I've got to say that in the years I've been here at Stillfront, this is by far the most exciting new product pipeline that I've seen. It is really impressive. So at Stillfront, we don't just love old games, we also have studios who are capable of doing very interesting and very exciting new games. And that capacity has really been boosted, I hope you've seen, by things like engine shares basically by our Stillops business operations platform. So very, very exciting times in terms of the pipeline and also a great time to take a small break of 15 minutes. So please. [Break]

Welcome back, everyone, to the Stillfront Capital Markets Day. I hope you've enjoyed the first part of these sessions. I hope you've learned about how we are basically leveraging the Stillops business platform to deliver some very special superpowers to our studios and really accelerate our growth. Now I would like to introduce to you 2 very special people: Andreas, our CFO, who's going to talk to us about basically our financial model and setup; and also Verena, who leads one of our financial ops, who will explain also what that means and how that works. Please come on stage.

Thank you, Alexis. And I'm Andreas. Today, I have Verena with me as well, and she will talk a bit about the organizational setup after my little session here. So it's 2 years since we have our Capital Markets Day. So what have we achieved? Jörgen talked a bit about how we have expanded our portfolio. But in terms of revenue, so we have increased our net revenues with 154%. And we have also added a significant amount of active games. So we have 56 games in our active portfolio, excluding Jawaker, it's actually 57 today, and versus the 23 we had just 2 years ago. We also have a quite large portion, we had SEK 78 million in Q3 of recorded revenues that is our nonactive portfolio. These are, of course, long-term games but also some of the games that are in soft launch, which Phillip just talked about as well. If you were taking that SEK 78 million and compare it to the revenues just 2 years ago, that would have been 15% of our total revenue portfolio. We have grown our player base by 11x. We had 62 million monthly active users in the last quarter. And what does this create? Well, this creates a diversification. We have also moved the type of players we have. We went from having 85% male, 35- to 45-year-olds playing our games just 2 years ago to a much more equal division of players between gender, geographies, et cetera. And that, of course, has created a significant diversification in our revenue streams. We also moved to a higher share of mobile. So we now have, in the last quarter, 74% of our revenues coming from mobile from 56%, just 2 years ago. That is, of course, fits into the growth of the market, and we have a better distribution of our own player games versus how the markets look, even if we still have strong desktop games. And ad revenues. Ad revenues, we said just 2 years ago, that's a critical base to grow. We were now in 18% of our revenues just in Q3. And that is very critical because that is our natural hedge versus our -- one of our biggest spends, which is user acquisition costs. So when prices go up on user acquisition costs, our income goes up as well. So what has this created? Well, we all like to think about growth, and that's important. But it's also how this has been created in terms of how we have grown. Is it diversification? And this diversification brings a few things. Well, it brings stability. It brings predictability, which derisks our revenue streams. And why is this important? Well, because we come from gaming. We know gaming. Each studio, each game go through cycles. They are in development phases. They're in soft launch phases, and they are in a scaling phase. And this portfolio and this diversity creates this natural hedge and derives our revenue streams. So how have we grown? Well, we talk about Stillops, but that's something real. I mean, we have the synergies in terms of the networks, the exchanges of best practices that we've spoken about. We have the actual collaborations that has -- are now at 100 but are yielding already and have been yielding significant amount of revenues. But Stillfront also can provide financial support. Of course, when you have your own studio, you might not want to spend all the money you have or cannot spend all the money to actually scale a game. That's exactly what Stillfront can provide to the studios. And here, we're showing what -- how our studios have developed. So these are all the studios that we have acquired, that are coming out of earn-out this year and how they have grown. And all of the studios, except for one, has grown versus the year of acquisitions. Some of them -- 2 of them more than 10x, and some of them, of course, have grown in terms of times X a bit lower. But of course, Storm8 came in and they have $118 million Q3 LTM numbers. But they're still growing, and they're still delivering on a very high level. And we also, of course, acquire a company. So we acquire in terms of upfront consideration, and we also pay earn-out. Stillfront likes to pay earn-out. And I will get to that more in details a bit shorter -- further ahead in my presentation. So we -- for these companies, we have paid approximately SEK 5.2 billion. So what has this delivered us then? Well, we can do M&A at attractive multiples. When you look at -- you acquire a company, you need to look at the upfront multiple. What do you pay? But our model is set up that we encourage growth. As I disclosed on the last slide, all our studios are growing. And looking at what we paid for the SEK 5.2 billion and looking at the Q3 LTM numbers, these studios would have been acquired at a multiple of 4.9. But of course, it doesn't stop there. That's just a measurement point. They will continue. They're continuing to grow. They need to continue to deliver profits and to continue to support the growth of this business. So we are -- we have been able to do this at very attractive total multiples so far. And I'm sure if we forward that tape a bit, it will be even better. So we, of course, have enjoyed support from our equity shareholders, our equity investors and shareholders. That's one key fundamentals to our financing model, but we have 3 other pillars as well. We have a very strong cash flow generation, which I will touch a bit about more, and we have access to the debt capital markets and how we developed that. And we have self-financed earn-outs. And then if we look at our cash flow generation first, which is, I would say, it's an underlying pillar for Stillfront, I would say it's probably an underlying pillar for any company that you actually make money. So here is the development of Stillfront's cash flow generation since the last time we stood here. We have increased our cash flow after investments by 5x. So in Q3 this year, LTM, we delivered an operative cash flow of about SEK 1.5 billion. We continue to invest heavily, over SEK 0.5 billion, in our product pipeline. But that still yields a free cash flow of over SEK 1 billion, and that is a very fundamental strength of our financing model. This is the foundation of how we operate our business. And if we put that in relationship to our number of shares and look at the average number of diluted shares, that is increasing 3x since the 2 years. And this is very key for how we can actually continue to use because we have reduced debt as part of our finance model. We still have a conservative leverage ratio target of 1.5 net debt-over-EBITDA. But we have moved that. We always consider debt in terms of our maturity profile. We're always trying to slot in the debt that we don't have too close of the debt maturing. So that is a very critical pillar how we fund this. So we have 3 outstanding bonds, but I think one of the key aspects here through our diversification of revenues, through our cash flow generation, we've been able to move our interest margins from 500 basis points to 275. So that's almost halving the actual costs, which, in the end, actually saves money because we pay less absolute interest. And this has been key. We also have, since the last 2 years, partnered up with 3 banks. We had one bank that was a partnership bank. And what does the bank create as well? They give us flexibility in terms of having a big credit facility of almost SEK 3.8 billion, but it gives us the flexibility and the firepower to actually be able to execute on M&A activity. And then the earn-outs. Before I jump into this, I mean, we think earn-outs is a very good way of acquiring companies from both a management perspective and operations perspective but also from the fundamentals of -- on the financial side. So first, in terms of why do we use earn-outs? Well, the management, they are incentivized. They're incentivized to grow, to continue to expand their business because they get a reward for it. It also creates a hedge. If it doesn't go that well, they are -- we are actually hedged. It's not we're paying everything upfront. That's why also, that bridge into actually how we finance this. And these numbers, just looking at the actual numbers that we paid, we paid approximately SEK 600 million in cash earn-outs in Q2 this year. So this relates to 2020 EBIT. And this is actually not just a theoretical exercise, but this is the amount of money that the studios generated in cash and the free cash flow. And that matches the cash earn-out. Of course, we have studios that are not in earn-out. So of course, we have a continuous amount of studios that come into earn-out or go out of earn-out. And of course, this -- the absolute cash flow of the business covers that by far. But this is a very key principle that we structure earn-out so they are self-financed. So before handing over to Verena, who will talk about what I would say is only non-optional things when you join Stillfront Group, and to summarize a bit, we have continued -- we have revenue growth, but especially we have a strong diversification and how that growth has been created through the types of games, types of players, types of geographies and demographies. We have been able to do M&A at very attractive valuations. And the underlying pillar of this is also we have a strong cash flow, and the cash flow is improving. And we have -- couple that, that we can access cheaper debt capital, we can have more banks to partner with and a bigger flexibility. And we have a self-financed earn-out model. And with this said, I will move to Verena. As I mentioned, finance and being at a listed entity, our group has implications that a normal gaming studio needs to adhere to when it comes to reporting and control environment. And that, Verena will talk about how we do most efficiently in Stillfront.

Thank you, Andreas. Good afternoon, everybody. I'm Verena Schnaus. I'm Managing Director and CFO of Goodgame Studios. And additionally to my local role at Goodgame Studios, I lead one of our finance hub we established at Stillfront. And today, I would like to take the opportunity to talk about the role within Stillfront Group of those finance hubs. So as Andreas already mentioned, a new studio coming into the group, for them, the finance requirements of a listed company is probably the biggest change. So what we could do as a hub, we could offer to support the finance services such as handling the IFRS reporting, such as financial planning and analysis, internal control, supporting with taxation. So to summarize the services we could offer to the studios, I would say that it is the fulfillment of the finance compliance framework. And a number of studios have already outsourced their finance functions to the regional hubs, of which we established 3 in the Stillfront Group already. One is located here at headquarters with Andreas in Stockholm. One is with me in Germany at Goodgame Studios, and one is led by my colleague, Tim Holland, CFO of Kixeye, in Canada. So what are the key benefits of the financial hubs? With the regional financial hubs we established, we want to make sure that the businesses could focus on their core business. This is what Nadir already told us in his presentation about Candywriter that this is the benefit for them, that they could free up time to focus on core business. Because imagine, not every studio at Stillfront Group runs its own finance department due to size nor do we want the studios to free up resources to support finance matters or finance requirements. Instead, what we built is a foundation of knowledge, resources and processes so that eventually, the hub structure creates scalability of finance expertise. But not only that the finance hub supports the established studios we have in the Stillfront Group, we also enable, from a finance perspective, an efficient M&A process. And we support the group to continue to grow constantly without building a huge central finance function. So the regional finance hub play an active role within our M&A projects around the globe. We come into the project as a finance deal lead and are in very close contact during due diligence processes with our external advisers that time already. We also support and prepare for the pro forma financials. And by the time of the finance integration of a new family member, the finance hub take over full responsibility for finance matters for that new subsidiary. So let me give you an example on a postmerger integration on the acquisition of Sandbox Interactive. By that time last year, we had 3 M&A projects running simultaneously at Stillfront Group, which were Moonfrog, Super Free and Sandbox Interactive. So the acquisition of Sandbox was announced on December 18, and it was closed on December 30. That means that by the time of January 1, we were required, financially required, to have our local accounts converted into IFRS reports and consolidated into our group financials January 1. But not only that this happened comfortably in time for our Q1 external report. Moreover, with the hub, we were able to consolidate those financials, not only on preliminary numbers or on pro forma numbers, but on actual numbers into our group consolidation system within the deadline of our January report. So with the hub, we were able to have, for our internal addressees, a full January financial group statements, including Sandbox Interactive actual numbers from day 1. So with this, you can see that with the finance hub models, we create an economy of scale and not only that. But moreover, we also support the further development of our resources, of our already existing finance resources with new projects coming in all the time. And for the Sandbox Interactive acquisition, I personally must say that this has been outstanding because with Sandbox, every gear of the local team and the finance hub team, every gear just meshed each other. But I would not call it extraordinary because due to that solid rock we built to that expertise and structure we built underneath, it is repeatable. Thank you.

Thank you very much. Thank you very much, Andreas. Thank you very much, Verena. That was great. And I think it's -- after you've seen and heard a little bit about how our Stillops platform can help us in the -- in terms of the product. I think to see also how the finance hubs can free up so much time for the studios and help them, and Nadir at Candywriter spoke a little bit about it, I think -- I hope Verena's intervention gave you a bit more color about what that means and how that works. I think now we're ready for Sandbox, I mean, online, Robin. So I think we'll have a short video now, and then we'll do some Q&A with Robin. [Presentation]

Robin, how are you doing?

I'm doing well. Thank you. Hello. Good to be here.

How are things in Berlin?

Great. Great. Just a week from a major update. Everybody is excited about what's happening at Sandbox. So the team is in very good spirits.

It's wonderful. Listen, Robin, could you just take like a few minutes just to introduce Sandbox Interactive, what Albion Online is? And maybe kind of give a bit of background on the studio and the game and also what your role is? You're one of the new family members. Not many people know you. So please go ahead.

Absolutely. Yes, we are Sandbox Interactive, a studio dedicated to the development of Albion Online, a game which we believe to be the best sandbox MMORPG in the world. MMORPG stands for massively multiplayer online role-playing game. We're a team of 60 people located in Berlin, Germany, and we are driven by our passion of growing Albion Online and improving the game together with our community. If you're not familiar with Albion Online, it's a single persistent world, which you can -- which players can join with their avatars and that they can then participate in shaping the future of this single world. They can harvest resources, craft these resources into equipment items like swords, wands, bows, armors. They can then build characters with these equipment items, basically building their own unique character classes. And then they can take these characters that they have built into battle against other players or against creatures of the world. And these battles against other players can take on very massive proportions. Hundreds of players can join into these battles. And this is why there are fought between large social groups called guilds. And the game is very much about driving players into these guilds and, therefore, builds very much on the social foundations and builds on building these social foundations, which gives us not only the strength of the game that players stick around for but also for the friends that they make in the game. My own role in this is that I am, as CEO of Sandbox Interactive, responsible for the company, the well-being of the employees and, of course, the direction of the company. But I'm also a Game Director for Albion Online. So I am creatively responsible for the direction of Albion Online and also of the production of the game.

Great. Thanks, Robin. And I mean, as a studio, you've grown significantly over the past few years. To what do you attribute that success?

Well, first off, to a lot of hard work, but mostly due to, I think, our sort of uncompromising approach to building this game, which is a very unique game, which we believed in from the very beginning. And we just constantly innovated to overcome challenges in the development process because Albion Online is a game about making a very deep experience available to a massive number of people, having a fair monetization model underneath and making that experience accessible to many, many, many players. And that is a challenge. And on top of that, making it available as a true cross-platform game available both on PC and mobile devices and being able to play in the same world with players on both platforms with the same accounts. So there's a lot of technical challenges that needed innovation. And there were a lot of game play challenges that needed innovation as well, which we were able to overcome with the help of our awesome player community that helped us constantly with great feedback and rewarded us with their loyalty.

Actually, on that cross-platform experience, I mean, you've become a true cross-platform experience this summer, as you were saying, with the launch of what I think is probably the only proper MMO game on mobile, which is a pretty impressive feat. Can you tell us a bit more about that experience? What has the reception been like? What have you learned?

Yes. I mean, it's been an awesome journey. Albion was developed from the very beginning to become a cross-platform game. Even in 2012, when we started, we made the plans and we laid the foundations for launching this cross-platform version. But it took 9 years to actually make that vision come true and release the cross-play version on iOS and Google Play store this summer. The reception has been great. Our existing player community was very excited to check out this new version and see how it would integrate with their way of playing Albion Online. But most importantly, it also has reached a massive new audience, lots of new players coming in via the mobile version and exploring Albion Online for the first time, which obviously is a huge benefit for us.

Yes. And what would you say has been the most difficult? I mean, one of the things that we did, and a lot of people think the parent companies would push you to launch earlier or get growth faster, we actually did the opposite. We told you, "Wait a second. We think there's a few things missing in terms of the mobile experience." The UI is not quite there. We actually kindly nudged you to delay the launch a little bit until it would be ready. What was the most difficult things that you had to face there?

Well, there were quite a number of challenges. You already mentioned one of them, getting the user interface for such a complex game into a state where it can be played both on PC and mobile seamlessly. Players would obviously expect the mobile to handle -- sorry, the mobile version to handle well but also would expect to find the same things that they find on the PC in similar places. So this has, of course, been a big challenge and which, yes, in collaboration with Stillfront, we basically decided to take several extra months to polish this up. But on top of that, of course, just fundamentally building a game like that has been a massive challenge. I mean, like I said, we planned for it from the very beginning. This is not something that you can decide at a later stage that you want your game that has hundreds of players in the same battle to suddenly be run -- able to run on a mobile phone. We had to optimize memory massively. We had to optimize -- make many decisions on a technological level to make this work.

Yes. That's probably one of the reasons there's not many real MMO games on mobile. There's just massive barriers to entry and a massive technical challenge to get it there. What impact does it have on the community to now be able to play their favorite game both on PC and mobile?

Yes. It was actually -- I mean, for us, it was very exciting to see what would actually happen because we've been pursuing this idea for a very long time. And the original idea really was to future-proof Albion Online because when we started, we always had the vision of making a game that would run 10, 20, 30 years. If you look at the MMO market, this is the sort of life span that games are supposed to have and that we want Albion Online to have. And we just said we need to be able to run the mobile devices because we don't know what the desktop market will look like 10 years down the road. So for us, it was an essential sort of survival goal or planning ahead goal. And seeing how the community would react was an interesting -- something we were really looking forward to. So the reaction has been basically that the core player base, the existing player base has integrated the mobile devices into their daily playing experience, how we kind of anticipated. They're using it to check their market on the go. Albion has a very strong in-game economy. There's lots of reasons to interact constantly. So they're using this to check on their own personal player islands or check on the marketplaces or even play some dungeons on the go. But on the other hand, on the other side, like I said, a lot of new players have been coming to Albion Online via the mobile channels because it's so much easier to do marketing for the mobile channels. Most of the ads that we show are being seen on mobile devices. So it's much easier to get people to install the app than it is to get them to install a PC version. So we acquire a lot of new players via the mobile version. And then eventually, these players discover that Albion is a full cross-platform game, and they may decide that they actually start playing on the PC as well. So it's very much a great new acquisition channel, and it is really helping us reach markets and communities that we couldn't reach before because there's obviously countries that are much stronger in mobile. And these are now accessible to Albion Online as well.

Yes. Thank you. And you joined Stillfront in January this year. What has your first 10 months as part of the group been like? And I know you mentioned kind of the marketing launch and the marketing possibilities with the mobile version. I know that Jochen is going to be next, and he's leading our marketing hub at Goodgame Studios. I know that his team helped you strategize kind of your marketing launch on mobile, of which we had no previous experience. So tell us a bit more, how have these first 10 months been for you guys?

Yes. I would love to. So the -- I mean, the month started really with what Verena just mentioned, the integration into Stillfront, which I have to give thanks for her praise and give the praise back. It really has been a very smooth process and was a very pleasant experience, although, obviously, a completely new challenge for us. Beyond that, really, what's been the most influential being part of Stillfront has been the ability to get expert knowledge at sort of the length of an e-mail or a Slack message where previously, as an independent company, we had difficulties benchmarking our own efforts acquiring information about new channels or new directions that we wanted to take. Now we can basically, on any topic that we have questions on, anything we want to explore, we can reach out to experts in the Stillfront Group and ask them about their experience with these topics and also ask them for benchmarks because in many cases, we weren't doing too bad, but we didn't know how we were doing. So we were maybe spending resources that we didn't need to spend to improve things that were already pretty good. So there's a lot of value in just having this expert knowledge directly available and learning from each other.

Yes. I think it gives -- I don't know about you, but I remember, it absolutely gave me the confidence many times to invest more because I knew the KPIs were right, and they could invest more. And without that information, I would not have done that.

Absolutely. Actually, on the marketing side, we've learned a lot there this year.

Yes. And what would you say are the main focus areas right now and what is next for Albion Online?

Well, what's next? The most important thing that's next is coming up next week is the release of our major new content update called Lands Awakened, which basically is a complete visual overhaul of the game world of Albion Online and plenty of new features, revolutionizes our seasoned game play, which is essential to the guild conflict, adds a lot of new things to the game. And the only thing that we're sad about with that update is really that we can only bring it to the community now. The mobile launch took us quite -- it was quite an effort. So we're happy to get that out now before the end of the year. And then for next year, we've already drawn up the release schedule for several new updates, which always expand the world of Albion with more exciting features for our players but also always aimed to widen the accessibility. And especially in terms of accessibility, we have some pretty exciting plans for next year where we really want to expand the global reach of Albion Online and resolve some problems that our community has with the global version of Albion that we're really excited to, yes, talk about next year when we're closer to the release.

Yes. I'm very, very excited about the release of Lands Awakened in, I think, November 24, right? I think you...

Just 1 week from now.

1 week from now. So you're a busy man right now with a busy team. So I'm going to do one final question, and then I'll let you go back to work. The influencer program, I understand you guys are also starting an influencer program.

Yes. Absolutely. I mean, I think we've all seen -- actually, we have quite a bit of experience with influencers at Sandbox Interactive. We were one of the first studios to really work with influencers back in our early access days when Albion Online was in an early access program in 2015. And we saw the power of influencers back then. And we've always had a lot of presence on Twitch and on YouTube. But we've now really seen the need to support our influencers much more strongly. And we've set up a new content creator program which directly supports these creators in generating content about Albion, which we've just seen with the launch of New World from Amazon Studios. It's a massively powerful tool to move large amounts of players, and we're -- yes, we're hoping to massively expand the coverage of Albion on these platforms.

Very exciting times coming ahead. Thank you very much, Robin, for your time, and I look forward to playing the new expansion. I think that's going to steal many hours of my time, but they will be hours well invested.

Looking forward to seeing you there.

Thank you. Take care. Bye-bye.

Bye-bye.

Excellent. So now we're going to transition to Jochen. Jochen leads the marketing hub at Goodgame Studios. So you've heard about how in our Stillops operations -- business operations platform, we have Stillforce with engine sharing. You've seen all of the pipeline from Phillip that is being facilitated by that. You've understood from Verena, and many of the people who have spoken now, just even Robin, how within Stillhubs, the financial hubs are a really important component for us and I think one of our great kind of synergies, and there is definitely our marketing hub. So Jochen, please come up and tell us about it.

Thank you, Alexis. Very happy to be here and to talk about the evolution from the Goodgame marketing team to the Stillfront marketing hub. We heard about this Stillops model today multiple times, and the Stillhubs is a really important pillar of the Stillops model. And Stillhub actually is looking for expertise within the group and then bringing it to the group to other studios as a service. And that's exactly what we do with the Stillfront marketing hub, and I'm very happy to actually run this operations. And we have a very clear vision for the marketing hub for Stillfront, and that is to build a full-service marketing agency for the group that we can offer to the studios. And this is in-house, and that's why I think it's much better than any agency because we are really much deeper integrated. We can be really a team to those studios. Obviously, if you want to provide a service, you have to be excellent. So excellence is one of our key elements we want to achieve with the hub. You've heard about Stillfront, and it's definitely an offering. So there are great marketing teams in the group already. Many gaming studios have great marketing teams, and we don't want to break up. We don't want to kill winning teams. This is an offer to studios that would like to have support and would like to get additional expertise in. That's quite important to us as well. And in order to allow that, it's easy access. So we make it quite easy. We are, as heard, available on Slack. You can just chat to us. You don't have to go into like a long-term agreement with us. We can just team up, do something and see where is it going. Easy access also means fair pricing. So we have quite a competitive pricing for the marketing hub, and that's also helping very much for studios to use our service. And why is Goodgame Studios a really good home for such a marketing hub? And I can tell you why. It's -- I mean, Goodgame Studios is running 2 of the most successful IPs, game IPs from Germany with Empire and Big Farm. And from that history, we are used to manage complexity of big games. So since years, we are running marketing campaigns that bring millions of installs to those games and to other games. And we are used to manage millions of euros of ad spend every month, and that from time to time can be complicated to really make sure you invest in the efficient pockets and get the money back. We are used to run on multi-platforms. We heard about Android, iOS. We also run desktop. We have Steam and also Microsoft Store, and we are used to run multiple games. It's always easy to focus on one game only. But as soon as you have multiple studios, multiple games, it can become quite complex to manage, worldwide campaigns, running a lot of different networks at the same time, not only focusing on the top 1 or 2. Managing the marketing art operation. Art is quite important for marketing campaigns. So without a good creative, you cannot run a campaign. So pumping out those assets every month, hundreds of them to really drive these campaigns is also what we can do. And then bringing all the data together, connecting hundreds of sources, be it from the cost side, being from the performance side, being from the game back end side, bringing everything together to be able to optimize efficiently and then running like billions of impressions every month on multiple networks. So I think we are used to manage complexity and can do that as well as the Stillfront marketing hub. We also have this broad experience of running a lot of different networks. I mean, the obvious one is quite clear, Facebook, Google and then Apple Search Ads, TikTok, Snapchat and so on. We also know how to run video ad networks, so be it like an ironSource, AppLovin, Vungle or Unity Ads. We know how to run native ads with Taboola, Outbrain. We did a lot of pre-installed campaigns already with Digital Turbine. We worked with incentive platforms like Mistplay, for example. And last but not least, also, we work with DSPs, which would be Xandr or MOLOCO. So we know a lot of tools and a lot of back ends and marketing networks to optimize. And as I already touched, we have a really great marketing art team internal that can produce great art for a lot of games, and they are also used to coordinate outsourcing activities. So we do as much outsourcing as we produce in-house. And there, we work with multiple outsourcing companies already today. One of them is like Babil Games, which also specialize in the marketing art production, which is really going great, and they produce really, really competitive marketing art already. But that allows us to also scale really fast when there is a new game and we should take care of it. So how is that possible? How can like one team run for multiple studios with multiple games, marketing art operations? And the key here is that we separated the marketing team into 2 areas: One, on the right side, you see the studios; and on the right side, you see the game teams. So the game teams are very specific for each studio. They are supporting each studio in the marketing, and they really deeply connect to the studio. They understand the games. They understand the workflow in the studio. They understand what events are running in the games. They also understand what players work for the game, what art works for the game. So they build the product-specific knowledge and team up with the studios. And these game teams are supported by shared teams, which then create the deep knowledge and expertise that you need to really excel on running a certain task. So here, we, of course, have paid user specialists, who really know how to run campaigns in certain networks. We have marketing art, as I said, but also marketing analytics, bringing together the data, where we standardize and we can roll out standard reports to new games rather quickly. Influencer marketing and content marketing, which we have done before and we just activate existing deals to bring in new games on the same. Then the app store relations, where what we've seen today with BitLife, from time to time, are very successful, bringing us to #1. But we have really good connections to stores, can partner on content integrations there as well. The conversion team, doing like app store optimization, A/B tests, optimizing keywords to foster that organic growth for existing game. Marketing tech, which becomes more and more important, you heard from Jörgen about it, like the whole marketing tech. So really connecting all the dots on the marketing tech side and really deeply understanding each switch and each back end from a marketing tech platform to really optimize the most of it. We have like reengagement experts who know how to use the data that we have for reengagement campaigns. Business development, to integrate with different platforms for like long-running deals. And last but not least, we also see ourselves for studios as like a single point of contract -- contact into the Stillfront studio network because there's still a lot of expertise in Stillfront, and we might have come across it much easier than a new studio joining or a studio focusing on game production. So we can like bring those -- that knowledge to the person who needs it from the network. So with this model, we can bring together expertise and scale in one go. The kind of services we offer, I would say, we have core service, which is really about running UA for games. So scaling UA to the max for a live game, so trying to put as much ad spend, getting us much users to a game as possible by aligning the marketing strategy, coming up with the channels, with the geos, with the networks that would work for this game. But also, we have deep expertise on soft launching a game. We have done it multiple times. The soft launch planning, understand what a game needs to be tested. So does it need like a critical mass when it's more like PvP? Is the studio more focusing on the tech aspect of the launch or the retention or the monetization? And last but not least also, testing different directions the game could take with like acid testing, for example. We increase the marketability by really optimizing the conversion funnel. So every dollar or euro we spend, we want to make sure it flows through the conversion funnel as efficiently as possible. So from very early on, already in soft launch, we start testing in the stores, what is like the best icon, what's like the best screenshot that we can use and optimize basically the keywords. And then securing efficiency. So we have a standard data model already, where we bring every new game, every new studio to this data model, and then we can roll out our standard approaches on reporting and data integration. And that allows us to really quickly pump out that like return on ad spend reports that you need to optimize the game on performance. There's also additional services that we do. Some studios like to create their own art because typically, they have like really great artists in the studios. So that's totally fine. We would connect to them, and they work with us. But we can also support, as I said, with our internal team or with outsourcing, coming up with like a really strong art pipeline. So making sure that the next best idea is already there when there's like creative fatigue or like a slowing down of a campaign. So there, we have a strong pipeline in place. And then the last one here is business planning. So we did this also for a few studios because it's not so easy sometimes to connect the marketing view of watching things to the finance view, so from a cohort model to more like a P&L model. And we have also like the planning models that support that. And yes, this brings great benefits to the studios, quite obvious. You heard about this also today is that the studios can focus on what they do best, right? They can focus on doing great games and leave the marketing to experts. This creates again a win-win situation that we can focus on what we like, and the studio can focus on great game development. Also, that allows us to bring like the best practice and the expertise to the games, resulting in really top results for our games. We can be much faster in terms of time to market because if a studio is reaching a point where they would need marketing expertise, they don't have to do like a beauty contest, find the next best agency or start like a cumbersome hiring process in this very competitive market right now. But they just reach out to us and have an expert at hand that either consults them or either takes -- or takes over the operations of running the marketing for them. So we can be much faster. And it's quite likely that we did it before like in the genre or with a test that's needed. And we might have experience already. That leads also to less mistakes or at least some learnings we can contribute, also helping us to get faster in soft launch to the point where we can make a decision. And this is because we drive one learning curve together by working together. There's also great economies of scale. Obviously, we standardize. We standardize data and analytics. So that allows us to provide the benchmarks that help everyone. That also allows us to pump out reports rather fast. We can together buy much more from one network that allows us access for discounts and really special deals. So we might get a kickback when we reach a certain ad spend level and so on, which, at the end, really contributes to the ROAS. And what is quite important for performance is we have access to betas. So when there is a change in the market, and change happens quite often, there's usually a reaction by the networks. So they try something new. They have a new feature, a new functionality that allows to target users better or differently. And when you are in the AAA teams, which we are most of the times, you get early access to these new technologies. And that brings you a competitive advantage and ahead of the pack before it's rolled out to the market. And the last advantage definitely is, for me, in collaboration. So I mentioned on the benchmarks. We mentioned about the knowledge exchange. So we don't have to 100% support a studio, but we have regular things in the marketing teams between the different Stillfront Studios do the marketing with us or not. But we learn from each other. We team up if there's like a market challenge, for example, IDFA, as we will hear in a second. And quite important to me is the honesty and the cooperation on eye level. So I've heard multiple times with agencies. And often, you have this feeling, can you really trust them? Or are they optimizing for their own revenue and so on? And because we are all the same group, there is no need to not tell the truth, to not really go fully and solve a problem at the core. We don't have to sugarcoat anything, and I think that's really a high value we can create here. So I mentioned on the topic of IDFA, and I would like quickly to explain how we -- at Goodgame Studios and also in the Stillhub, we addressed it. Just to recap, I mean, I guess everybody knows, but Apple made quite some like big changes this year, what kind of user data is available to marketing companies. So they introduced the AppTracking Transparency framework and ask every user if they want to share their data. If you say no, you cannot share user-level data. And then they introduced like a new own attribution tool, which is called SKAdNetwork, which then they provide like attribution data independent from a device or user level but more on an aggregated level. And I think we managed that quite well. One reason is that we have a very diverse platform portfolio. So not all of our traffic is on iOS. In fact, every time we talk to a studio, we look at, okay, what other platforms are there that we can like grow and add to the mix? And that leads to a very healthy mix, for example, of Android and iOS. So 65% of our traffic is not directly affected by iOS changes. Also, the networks are affected differently, and every network has like a different reaction to the changes. And by having a strong diversification, we can shift budgets from one network that has a bit more challenges to another one which at the moment can benefit from the changes. And in the last 6 months, we had more than 30 networks running, and that allowed us to switch budgets quite quickly whenever we see that someone struggled with the IDFA changes or someone was benefiting from it. As one example, our top network at the moment is only 35% of ad spend. We are very close with our like networks. We are very close with our tech partners, and they come up with best practices. So we have the team that really understands what needs to be done, to understand these best practices and to apply them. Not every studio can do that. And so we are able to roll out best practice setups. And to me also, quite important is the point of -- that we have to live with the change, right? So I mean, mobile marketing has been changing, I guess, every year quite a lot, and there's always been change. And all the companies have to adapt to the change. And this is, for me, just another change that's happening, and we have to embrace it. So the users are still out there. There's still plenty of people that want to play games, and it's just a question of how can we reach them. It's not that the market is gone, and we still have data. So there is still -- there's no SKAdNetwork data, which looks different from the data we had before, but we can work with it. And that's what we do. So we look at the data. We made dashboards quickly available for the whole marketing team, so everybody can start working with the data and come up with their conclusions. So there is still users that allow us to track. So they say, "Yes, you can track," and this data is there. So we can use it for sampling to see, okay, what does this part of the traffic do? And how can we make conclusions for the whole traffic? Then every game is different, and the few values we can push through SKAdNetwork has to be very specific for each game. So we spend quite a lot of time already for our top games to do in-depth game analysis on what events do we need to pass on and so on through SKAdNetwork to optimize on the best value user. And these custom conversion schemas help to make the best out of the data that we can get. And then when you do this right, you can start again doing like prediction of return on ad spend on that data. And that's what we also do at the moment. Obviously, if paid marketing changes, we can also focus on other areas, which would be organic growth. So we -- the last year, we already spent a lot of time getting more knowledge and expanding our activities on influencer marketing and other organic growth channels. And the last point I want to put here is that if the device- and user-level data is harder to access, we can still go with contextual data, so see in which environment our ads work well and then optimize more on that. And we already have multiple marketing partners where we test these optimization techniques. So looking forward, what do we aim for? So we want to grow the Stillhub marketing team within the Stillops universe, and we want to cover multiple time zones. We want to further standardize the data so that we can even be faster adding new games, doing decisions on those games. We want to continue having the best creative because creative will be key. And we want to scale our expertise in the organic channels and organic growth, especially in influencer marketing. And then with that, we will roll out to more games and drive more success. Yes. Yes. That's it from my side today. Thank you very much.

Thank you very much, Jochen. We're reaching the end of our Capital Markets Day. I hope that we've given you insights and a better understanding of how our Stillops platform is really delivering superpowers to our group of studios, how it's really giving them access to incredible talent that they would normally not have access to. And in the end, really resulting in better fundamentals, better profitability, better cash flow, better ability to do marketing and in time, also better growth. Now I think I'm going to invite Jörgen back up on stage to wrap up and summarize the day. Thank you, Jörgen.

Thank you, Alexis. So I -- last week, I received the question that I received many times this year, "What value do the structure bring to the individual studios?" I've tried to answer that question as good as possible. But when I say it, it's one thing. But when it comes from the studios and when we have heard today the different hubs and the different processes or representative for different processes tell how this really is creating value, hopefully, that are new proof points to the kind of value that we actually are creating. One of the key elements here, as I mentioned in the beginning of this Capital Markets Day, is the balance. Because if you centralize completely, you kill a business in a superfast-moving consumer business like online gaming, in particular. So the unique thing is to figure out the balance. It's easy to say -- that's probably why the question come back to me all the time. But now we have added some more flavor to it and some more proof points to see what we should and could and we do centrally and what we will add in the future and what must be locally conducted to keep the proximity to the users so that we serve and make this every day better for our users, which is our mission. So as I told you in the beginning, it's one -- if it's one thing you should remember from this day, it's the word Stillops and what that means. And I hope and think that you have heard that through the day. And hopefully, you will remember that tonight, even though we will have some wine afterwards, you will still remember that and tomorrow and for a long time because we will definitely continue our efforts so that we remain fast, fluid, flexible to reach our financial targets, not only reach them, beat them the next -- for 2023. And thank you for attending here physically, which is great stuff and unique stuff the last years, hopefully not in the future, and all of you that has been participating online. And thank you, Alexis, for running the day; and for Sofia and Ludvig, organizing and with support from everyone here; and not the least, all speakers; and most of all, your listeners. And hope you stay for a short while over something to drink and a small chat, that will be great. Thank you all.