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

Hi, and welcome to Stillfront's 2023 Capital Markets Day. I am Alexis Bonte, the COO of Stillfront and I cofounded a games company back in 2007 called Erepublik Labs. We joined forces with Stillfront in 2017. Since then, I work as the Group Chief Operating Officer, and I focus on operations and co-leading Stillfront's Game Studios. Last time we met like this was in 2021. And our aim today is to give you an update on market developments, our strategy and most importantly, our next phase as a global games company. I'm happy to be joined on stage today by several of my colleagues in the management team as well as Mo from Jawaker and Rex from 6waves with approximately 2.5 hours of great presentations and discussions ahead. If you have any questions, you can use the chat box below the video window, and our Investor Relations team will be happy to reply. So first, it is my great pleasure to welcome Jörgen Larsson, Stillfront's Founder and CEO, who will reflect back on 2022 as well as walk you through our new phase and updated financial targets. Thank you.

Hello, everyone. I would like to talk about Stillfront's next phase. First, the most important thing, the ultimate purpose of our business is to strive to make a positive impact on our gamers everyday life. Whether they would like to socialize, compete or just get entertained, this is what it's all about. We saw it clearly during the pandemic, but we also see it when our awesome teams are working with the gamers communities around our games, around the globe, that we really can have a very positive impact, and this is why we do what we're doing every single day. We have an updated vision with our company. We would like to build the best games company in the world. With best games company in the world, we don't mean the largest game company. We're the best games company in the world, we don't mean the ones that has the most leading-edge innovative products with the largest budgets. With the best games team -- best games company in the world, we don't mean the ones that are maybe with the most new technology and so on. But what we mean, and this is important, the most efficiently operated games company in the world. We will not be the most innovative company when it comes to the product necessarily, but we will be innovative in the way that we conduct our business, in the way that we refine our processes, in the way that we are operational searching for excellence. So today, I will describe a part of what this is about, but most important is that we will walk you through what this means in practice and why and how we will do this and turn it into something practical and results. Building a company is best done in different well-defined phases. So we have done that, and it's for many reasons, that is very important. Because when you enter into a certain phase, you define your priorities. What is the most important thing in this very phase, different from the previous phases or the coming phases? How should you refine your strategies so that you increase the opportunity to create the most value for that specific phase? Basically, you can say that the whole business, the way of operating our whole business is adjusted accordingly. So basically, the modus operandi is different for different phases. Also, if you do this in a good way, you can keep your corporate development, fast, fluid and flexible so that we adopt for the opportunities that we have in each phase, and we can tackle the challenges that we have in each phase. And also further, it's also the case that if you -- these are well crafted, they can be also vitalizing for all stakeholders, both internally and externally. So we started back in -- when I founded this company with an entrepreneurial phase to figure out how should we create value, what position should we have in the value chain of online gaming, then we entered into the structure phase. So we built and took in and crafted different core elements so that we have a structure to go into the next phase, which was the scale-up phase. We entered into the scale-up phase at our Capital Markets Day in November 2019. And then we said we should build a 3x larger company, I will come back to that later. Now we are entering into the fourth phase of building Stillfront, the synergy phase. We should focus our efforts on leveraging the size that we have built. We should focus our efforts on leveraging all the talent and the awesome people that we have, the absolutely most important asset in our whole company. And we should see to that we leverage not only the scale, but the reach that we have. We are a truly global company, and we can get out -- we already get out several benefits from that, but we can do much more. So this is what the Phase 4 is about, to create synergies, leveraging all the different assets and talents that we have in our group. The second thing which is important when building a company is to think about and act based upon a certain set of pillars that you build your company based upon. So from the very inception, we had 3 different pillars. It was the entrepreneurship, scale and structure. And it's all about balancing this because if you're not balancing this, so you only are focused on scale, on the cost of entrepreneurship, it will not work. If you are too focused on structure, losing out entrepreneurship, it will not work. You need to balance these 3. And I think we've done that fairly good. It's easy to make the slide and it's tricky to do in practice. But through the network of studios and talent that we have in our group, I think we have created good results. But now Phase 4, we are adding a fourth pillar, and that is the synergy pillar. So -- and this is very important. In order to create these synergies, we have built something called Stillops platform, our business platform that will enable and facilitate for all our game teams to create these synergies in collaboration and with each other and us working centrally supporting them. So again, management in -- throughout our group in game teams in the studios as well as us working centrally in different functions, it's all about constantly think about and see to that will balance not only 3 different pillars now, but 4 different pillars. So we're not only working with synergies on the cost of structure, on the cost of entrepreneurship or something else. This is the way. This is a core element in optimizing our business performance and realize maximum value for our shareholders ultimately. So I referred to when we entered into Stillfront 3, as we call it, and that was in November '19, we set up some what we thought was quite ambitious scale targets, we should make the company twice the size in 5 years. This was just before the pandemic when we have exceptional development, as you might recall, if you followed us. So we reached that quite immediately actually. So what we did then was we updated the financial targets in September 2020 at a similar event like this, as also Alexis referred to. But we didn't really reach that fully. But importantly, the most important thing with this is that we have reached enough scale to go into this leverage or synergy phase. It's not necessary -- it also hasn't been necessary to reach the SEK 10 billion revenue scale. We are far ahead of the SEK 4 billion since we today posted the full year showing SEK 7.1 billion in revenue. So we have the scale enough to go into the synergy and leverage scale and create more value going forward. 2022 was a quite difficult year for the mobile games industry. So the global games market was actually down full year approximately 8% for the individual year. Just in Q4, it was approximately down 11%. These are quite big numbers. But importantly is to as shown in this graph, that we grown -- the whole industry grew and so did we by high numbers prior to that through the pandemic, but also the underlying structure growth that is in this industry, and will be for a long time. So the CAGR was actually 9% from prior to pandemic up until including 2022. But the weak ending of 2022 will also spill in. So there is a slightly lower visibility into the first half of 2023. But then we think that we are back on the structural growth that this industry has been enjoying and will enjoy for many years to come. And that's underpinned by several factors, one being that young people see mobile games as their main entertainment tool or entertainment -- source for entertainment. And they will not quit playing just because they become 20, 30, 40, 50 or whatever, they will continue to consume. So we have a backfill of new gamers coming into this market. Also, there are new markets geography-wise, that are growing very fast. The MENA region is very important for us. We will listen to Mo later here from Jawaker that has made a tremendous job in growing there. But also LatAm and not the least, India is really strongly growing other territories. Further, we are reaching new demographics that hasn't previously been playing games. And last but not least, there are [indiscernible] that are not yet developed or even invented yet, that will also underpin the structural growth that we expect to be in the long run 3% to 5%. There are people suggesting that it will come back to 9%. We think that's a bit optimistic, but 3% to 5% for many years to come. So we had some headwinds, as I explained from the market and the circumstances last year, but we could also have done things better in 2022. Certain products investment in the past year have not met our ROI requirements. So we make a one-off amortization as presented in the quarterly report this morning. I think also that we have in some of our studios from time to time, which Andreas will go into later and more in depth, you are in different phases. You are in a growth phase or you're in a harvest phase or you are in different stages, basically. And what we haven't done sufficiently good, I think, in 2022 is that the one that is not growing top line can and should grow margins. I think we can do much more there. And finally, the third point, which I think we can do better is ad revenues. We explained in the -- when we entered into Stillfront 3, that we had an ambition to be on high teens of our percentage points of our total revenues should come from ad revenues. Now we increased in Q4 to 16% from 14%. So it's increasing percentage-wise, but we had 19% a year more -- just over a year ago. So I think we can do better there. And Phillip will elaborate more on how you can hybrid model to optimize your revenue stream. But these are 3 things that I think that we can do better and we will do better and we have activities in place in order to improve ourselves. However, I think we did succeed fairly well in some things. We significantly outgrew the tough market for mobile games in 2022. We generated very strong cash flow despite that we have elevated our product investments, which Andreas will go into depth when he desiccates the Stillfront financials in a few minutes. We also -- which is one of our key competitive advantages, we did maintain our strict payback on marketing, the strict 180 days return on ad spend despite the challenges with marketing and IDFA and other things through our diversification with many products in many territories, working with many different channels and a very good fantastic people working with marketing within our group, we maintained, deployed more money and maintained that strict payback time. Also, we have added 40 new titles into our active portfolio. We will look into those as well, 8 of those organic. And not the least, as you can easily see from the phase that we're entering, we have invested in the Stillops platform, and we will continue to invest. And it's a quite extensive work behind what we should develop and in what way, and in what sequence. And that analysis will Amy present more in-depth later as well. So I think we are working very hard and disciplined to make the Stillops platform better and better and better, and we should refine it and refine it and refine it over and over again because that is a core element in our successful Stillfront for the fourth phase. Franchises. Successful game franchises are very important for us for continued growth and profitability. We have, as I said, and explain why that is so key. We have 7 to 8 different products in our product portfolio, which is key for having a very good allocation of capital for UA. But we also have these products are to a large extent, part of our franchises. We have, in total, 12 franchises that had revenues over SEK 200 million last year, whereof 5 had revenues exceeding SEK 500 million. And this is important because when you have a franchise, you have a large base of users that really enjoy that. They spend a lot of time. They've built relationships within the franchise and they're very hungry for updates and things that comes within the franchise, and we can do a lot of things around our franchise. So it's more or less recurring revenues in many of our franchises. With focusing our capital allocation for product investments to a larger extent, to our franchises, we are convinced that we will increase our return on investment, basically improve our capital allocation results for product development. That is a key theme here, and Phillip will go deeper into that as well. And I think not only Phillip actually. So franchise is a key thing in Stillfront and it will be a very important thing for us to improve our performance for the next coming decade or 2. So the core strategy that we have, now we formulate a core strategy following, we connect and empower the best games team around the world through our unique Stillops platform. And this is important. As you can see, we elevate the Stillops to be core of our core strategy. It hasn't been previously. So now it's absolutely key to create the synergies, to create the leverage that I was talking about a few minutes ago. So that is part of that. We also take the talent, the large pool of talent that we have in our game teams and in our studios to be also the core of our core strategy, and that is different from previously when we focused more on products. So again, Stillops will be the way that how we should receive or get to these results. This is how we illustrate the Stillops platform. It contains of 3 parts. So we have the collabs part, which is more the processes of how to collaborate, to develop jointly co-development projects on localization and many other areas, which we will, as I said, go further into with Amy. We have the hubs, which is more about people. When we have critical areas of expertise where we can focus and support in a better way the game teams and the studios by having hubs close to them or serving them in a different way so that they can keep up the speed and not being slowed down in certain areas or just delivering higher results. That is hubs. And then we have tech and data tools in different ways that also make our -- increase our efficiency, both in the cost side, but also like in IT security and different things. So again, Amy will go further into the different elements of this. But this is how we represent the Stillops platform. And this is a slide, yes. But this is working in practice and it's delivering synergies every single day, and the synergies that we deliver are increasing not only linearly with the number of studios we are, not only linear with the number of game teams, it's actually increasing progressively with a number of studios and the number of game teams we have. Hence, scale, we needed scale before we go into the synergy phase and the leverage phase, as I elaborated on. So we will continue to grow our margins, and we will continue with strong cash generation to deliver value for our shareholders. And this is important. We should leverage both the diversification so that we can continue to be leading on return on ad spend. So we can continue to work with our very strict return on ad spend. Then you need the diversification in the way that I have described. But at the same time, we need on the other axis, our franchises, which enables us to focus the capital allocation, not for UA, but for product development. So both of these should coexist in the way that we and they are already, but we are putting more efforts into that as we speak and for the coming years. We should further invest and develop our Stillops platform, so it's even more efficient in supporting our studios and our great talent teams out there, more synergy projects, more hands-on support, et cetera. And outcome of this should be focused on continued strong cash flow generation. We have -- as you might have noticed, we announced this morning that we will have a share buyback program that we have launched which also shows that we are confident in the cash generation that we have already today, but we have an ambition to improve that further, which Andreas will go into detail in a few minutes. As I said in the beginning, one of the good things will be very disciplined about the different phases you're developing the company within is that you get your priorities right, and your strategies are getting refined for that very specific phase. And hence, it's very natural that we have new financial targets for Stillfront 4 phase. And here they are. They were also announced this morning. First, we should consistently outgrow organically the address market that we have. We define our address market the way that it's the global mobile market excluding China. So that is the #1 growth target. We also think that as an important side note, we should continue to look out for value accretive in a selective way M&A. I don't foresee that we will do much M&A this year or we must wait until the market is right for it, but it is still a core element in developing Stillfront to further levels. So that is the revenue part. Then we have the new profitability target is what we call cash EBITDA, which is EBITDA reduced by the CapEx we have. We have an ambition that, that should be in the range of 26% to 29%, annually again. Then the third target is that we, more or less, we keep our leverage ratio, but we have a new definition. So we include the short-term cash earn-outs to be paid. And then we increase it from 1.5 without earn-outs is still there, but then it becomes that it should be below 2.0. So these are the financial target that fits the priorities, the strategies and the aim and what we would like to do in Stillfront for the synergy phase, the leverage phase, and this will be targets until further notice. So thank you for listening, and stay tuned for more insights and deep dives during the day on how we should achieve these results.

We are ahead of time already. So we're ahead of the game. So that's good. But thank you, Jörgen, for that introduction of the new phase of Stillfront that we're entering to now, the synergy phase, one, where we'll become the best games company in the world by focusing on efficiency, adding synergies as a fourth pillar to our DNA alongside entrepreneurship, scale and structure. And we will continue to build up the Stillops platforms that we give our studios, the tools they need to consistently outperform our addressable games market. So thank you, Jörgen. I'm happy to now welcome our CFO, Andreas Uddman, who will share a breakdown of our financials. Thank you.

Thank you, Alexis. Good afternoon, everyone. I will use this session to do a breakdown of the historical financials, but also looking a bit ahead in terms of the financial targets. Firstly, in terms of look back, we have scaled to a global games company. And going back to 3 years to 2019, our revenues have grown 3.6x to over SEK 7 billion. Our adjusted EBIT grew 3.1x to SEK 2 billion. Our cash flow, which has been something we've been focusing on, has been growing 4.2x to over SEK 2 billion, and this is cash flow from operations. But more importantly, we have added 10 studios and with the studios has set a very highly talented game developers and people joining the group. And with the studios and with this growth, it also comes that we added new product areas. We added cash flow mash-up, which we didn't have in 2019. But we also complemented our existing strategy portfolio during this time. But we also entered new geographies. India, we have entered, a highly growing market. Japan, which is a massive market, which we entered just a year ago. And we also increased our North American footprint as well as continued our expansion in the MENA region, which we will talk a bit more in depth about. So looking back, we have scaled this company and that scale in terms of not just the number of studios, but also financially, allows us to move into the next phase. We have some more things to work with to create these synergies. Diversification. We talk about this a lot. It's very important. We run -- Stillfront has always been run looking at the portfolio. We have a portfolio of games. We have a portfolio of studios. And this has enabled us to be very efficient in our capital allocation in terms of user acquisition. And just to demonstrate a bit how this looks at the group level. The top graph here is the adjusted EBITDA margin per studio for the full year 2022. We have some studios that are -- have a margin which is a lot higher than the group's average of 2022 of 37%. And these are either major game franchises as Jörgen was talking about or niche products. But we also have some studios we share in a growth phase. The interesting thing is that on the group level, we have 12 studios that are above the group average and we have 10 that are in a different phase, which are below. And this shift, this is a dynamic shift going through either from games, but also in studios. And it's also, of course, these type of games that are invented that helps to finance the growth of the studios. So we have reached a good balance. But to deep dive on it, what does this mean then? So in the bars in the bottom here, we have studios in scale phase. They grew 110% net revenues 2021 versus 2022. And we allow them through our capital allocation to spend a significant portion of that into UA because they're fueling that growth. That leads to that studio has a lower EBIT. Then we have a studio here as an example, which has a 10% growth, 10% growth is stronger than the group and especially a lot stronger than the market in 2022. They're spending approximately 35% of the net revenues into UA. So they have -- their EBITDA is slightly below the group's average, but the contributing to top line growth. And then we have the mature phase, slightly declining 5% in this example, is still spending some UA, working a lot with Live Ops, which is one of our key levers as well, not just UA and they are delivering a result of 50% EBITDA margin. I think it's also important that a studio can have different games in different phases. So we show this as an aggregated view of all our games, but a lot of studios work with games in different phases. And you can also move in and out of these phases on a very rapid pace. It can go from 1 quarter to another or it can go for from 1 year to another. So it's not like a studio stays here. It's all about keeping the balance in the portfolio as a whole. Looking a bit ahead then. We have set new profitability targets. What is it? Well, it is cash EBITDA. Cash EBITDA is basically taking our adjusted EBITDA as we have reported it, and reducing the investment in products. And we set that to 26 to 29 percentage points. We believe this is a very good measure on the underlying value creation of the business, as it is very close to the cash flow the business generates, and it also captures the fact that you have to invest as a gaming company. So where do we stand today? Well, we had after intentionally investing a lot more in product development in the last 18 months, we ended the year with 22.7% for the full year. And also, it's very important that during the periods in the quarter, et cetera, things will fluctuate. We have different seasonalities in our business. So it will fluctuate between quarters, and we will measure this on a full year basis. So this is something that we have amended and we also have a clear path how we return to these kind of levels of historical profitability because we've been there, but we made intentional choices to do more investments in the last year. So what is this clear path? This is an illustrative example and it should not be seen as a guidance as such. But if we would take the EBITDA -- adjusted EBITDA C -- or cash EBITDA for 2022. And what are we actually working on? I mean, I think you will get more insights both from Phillip, from the studios, but also from Amy. What does it actually? What are we working on? These are practical things that we actually work on. We talked about advertising revenues. We want the advertising revenues to go up to the high teens. And we are working actively, deploying the expertise from studios that are very knowledgeable about this. We brought them in and deploying that to studios that don't monetize either at all in terms of advertising revenues or they don't have the expertise. So that's a clear synergy that we are working on. If, for example, our advertising revenues, which was 15.5% of our total revenue in 2020 would have been the same as there was in Q4 2021 of 18.5%. We would have improved the EBITDAC margin with 1 percentage point. So these are things that we're working on very actively. Third-party publishing. We have some studios that are working with third-party publishing, not something we're going to stop doing. But using our franchises, using our games that we work, take them through different regions, reskilling them, that is something that we will focus much more on. And of course, instead of paying royalties to a third party, you pay them in-house. You see in this example, we leave as it is. We have -- we are maintaining our 180 days payback requirements, and we don't believe that we should either reduce that or increase that. So that, in this example, is left as it is. Then we go to why I think, the [indiscernible] also brings. We have got something that's Stillfront didn't have 3 years ago. We have purchasing power. We can negotiate with our suppliers. We can standardize things. We can go as one group. That we have done quite little of because we were in a different phase, but that is natural when you become bigger as a group to actually do that. You might also that we need to standardize things. When you bring a set of studies into play, you might have this duplicate systems doing the same things. And of course, this is also something that it doesn't happen overnight. But these are clear specific things that we have identified and are working on. And the third one is, of course, product development. We have -- we entered into a high investment pace. So we had 14.1% in the full year of 2022. In Q4, we had 13.3%. So it declined a bit in relation to revenues. I think if we just reduced that number to the same level we have had in 2021, when it was 11.4% of revenues. That will be a 3 percentage point lower investment pace. That doesn't mean we would actually invest less. If we were to invest 11% of our revenues into product development, it will be almost SEK 800 million. So it actually a bigger investment than we had just in 2021 in terms of absolute terms. But it's about how do we capital allocate? How do we put the money where we believe is going to yield the best and especially in our franchises. So all these improvements is not something you're going to switch off the button, and we're going to stop investing tomorrow and we're going to move everything. It's important to remember that this will have a gradual impact. We have a clear plan how to achieve it, but it will not happen overnight. And it will not fully come through in our financials during 2023. But the key takeaway here is that there is a path. Cash flow. Jörgen talked about this as well. We've always been very focused on cash flow. When you build the business, cash is king, something how we have focused since the start of this company. And we have grown just since 2019, our free cash flow. So our cash flow after investing in product development with 4.6x. This has been able to support our M&A agenda and our scaling phase. But also to point out that this scaling phase and the M&A agenda, they have -- we have bought companies with earn-out. But even so, even if we have earn-outs on our balance sheet, and we like to pay earn-outs, we still have a free cash flow after this. After investing actively last year, SEK 1 billion almost in product development, we still had enough cash flow left to fund their earn-out. And over time, as the M&A activity is deemed to be a bit lower in 2022, it will be less earn-outs to finance. But our focus on profitability and cash flow generations we continue and will be growing going forward. We updated our leverage targets. But we didn't often date them down much to bonus. We still remain a conservative approach to leverage. We like that. It's a good mix to have financing portfolio. But what we did is we added in the cash portion of the earn-outs for the next 12 months in the net debt definition. So why did we do that? Well, we think that capture the actual payment obligations that cash flow generates, so just about clarity and also that some of our covenants towards our financing institutions are actually governed like that. They also see it this way. Something we've been tracking internally naturally. So -- but we don't -- but it actually don't increase the leverage by the fact that we're then adding it to 2. It's just the relationship between the 2 of them. So we remain a conservative approach to that. and believe that, that better reflects the nature of our business. In terms of our maturity profile, something we work technically on in terms of our debt portfolio. That is also very important when you talk about conservative leverage because if you have all your maturities at once, and you can have a low leverage, you're not as conservative. So we have worked tactically. And just in the last quarter, we doubled our time to maturity on to over 3 years on our debt portfolio. So we have a good spread, but we also have a good ability because we still have untapped credit facilities. So we have almost SEK 2.3 billion of facilities we don't use. And then we also include our cash generation from the business. So with this and a bit to conclude, we have today -- where we start off today, we have a strong balance sheet. We come from a strong cash flow degenerative business, and this creates flexibility. It creates flexibility to enter into the synergy phase, but it also creates flexibility to be on the M&A market when that market comes in play again. And in addition to that, our increased focus on capital allocation, not just in UA or user acquisition, also in actually the product investment side, that will also improve our ability to generate profitability and cash flow in the future. So with that said, we -- I will hand back to Alexis, and thank you for meeting today.

Thank you, Andreas. Thank you very much for this deep dive into the Stillfront financials, a profitable and growing business. I think you showed very well how our diversified portfolio allows us to be super efficient with our capital allocation of user acquisition budgets and that allows us to achieve a healthy balance between growth and cash flow that we constantly are discussing. Going forward, we'll be able to leverage our size, synergies, investment focus on core franchises, Phillip will tell more about it to further increase our profitability in 2023. And the large increase in our cash flow generation in the past few years, I think, speaks for itself in terms of the strong financial basis we have. So thank you very much, Andreas. I'm happy to now welcome Sofia Wretman. She's the Exec VP and Head of Comms and Sustainability, and she will go over how we are building a sustainable gaming business, Sofia?

Thanks for listening. I'm here today to share a brief update on the work that we do on sustainability. And also, for us, how we try to strive to build this sustainable gaming business. The world loves to play digital games. 3.2 billion people play digital games globally. Out of those, 2.7 billion play on the mobile. That's a severe audience, a diverse audience and a big audience. The average age of a gamer today is 33 years old. And female gamers make up around half of the gaming population. So while digital gaming is a rather young industry, we can see that this is already a habit that many has in their everyday lives. The generation Z and generation alpha already turned to games as their primary source of entertainment and socializing. At Stillfront, today, we have 60 million active players, so our responsibility is big. We need to secure that the content that we have and that we publish and what we produce is in accordance with our values. Therefore, the importance for us is to build in sustainability in our business. Our guiding star and our mission is to make a positive impact in our gamers everyday lives. Gaming needs to be a place where everyone feels welcome, included, and that might be easier said than done. So how do we make this a priority for all 23 studios? For us, it requires a framework of policies, clear rule books that builds ESG into the processes. Jörgen has often said to us that the modern company or a modern company does not push from the top down. We are raised in an organization where we work together, both from the studio level and also from the group. And I think most of our efforts from the group should be how to support our studios. And to better support our studios in ESG and sustainability, we have implemented a playbook, a playbook that contains checklists, activity plans, but it also contains a road map showing the maturity of a studio within ESG. So each studio can see how they were -- on what maturity level they are at. I think that when we last year implemented an online tool for all the studios to report data in all the different ESG pillars, they can also start to benchmark internally and see how they progress yearly on easier on a dashboard. So what kind of achievements have we produced until today? If we start off by looking at the climate area, we started back in 2019, and we focused on looking at how should we collect data on our emissions, our greenhouse gas emissions. And since then, we have yearly gradually collected better and better data quality. And we have already, from the beginning, said that we need to focus on both Scope 1 and 2, which is our own emissions, but also the emissions that derive from when our gamers play our games. And we started also already from 2019 to offset for the emissions that derive from our value chain. So we have been a climate-neutral company since then. But last year, we decided in the climate area that we now have the processes and the tools are ready, so we should start to reduce our emissions instead. And that is very much -- thanks to our studios. We have a climate forum that is up and running in the group and with all the 23 studios together joining in. And I think that when we now have everything in place, we can start to reduce. So at the end of last year, we committed to science-based target initiative. So we will have a reduction place -- soon in place in line with the Paris agreement. But the climate area is, of course, more or less a hygiene factor since we are rather light on the emissions that derive from our industry. The key for us is, of course, the social responsibility that we have, both in terms of our users, our players, but also in terms of the group with all the -- with so many talents. We have more than 1,500 talents in the group right now. And they belong to a smaller studio, differs a little bit between studio sizes, but we also have a group perspective to emphasize. And what we have realized during the last couple of years is that there are so many things on the group level that we would like to achieve. So we have a new forum in place since last year that we call living our values forum. It contains all our studios HR managers and we meet regularly. We have extended the scope of data collection and what we do in the HR area. And this is all to foresee that we dig deeper into how our healthy and diverse teams can further become better, and how we can progress in employee satisfaction and well-being. And also, of course, it is to further look into our whole talent management program. The gaming market and the gaming industry is a global market in terms of talent. So this is key for us. Just to mention a couple of more important ones for us. Back in 2020, we implemented our third declaration which is all about responsible play. Responsible play, responsible marketing. This is a tool that our CPO, Phillip Knust, works with the studios on a regular basis. In the business reviews, in the business meetings, in game development processes, we have this as a base for our values and how we conduct business. And also, just to finalize, I think that what is also important to mention is the whole extensive program that we have in place in terms of data protection and data privacy. This is, of course, key for our studios and for us on a group level. If we look ahead, we have so much more to do and there's just -- we have only scratched the surface of what we can do. But I just want to highlight a couple of areas that we will focus on for this year. So we will continue strengthening our data privacy controls throughout the group. We will even emphasize more focus on the talent management program, and we will implement the reduction plan in accordance with science-based targets initiative. So that was more or less the only thing I wanted to share with you today. In April, we will have our sustainability report being published. So -- and just reach out for an update on the specific meetings, if you want. Thank you.

Thank you, Sofia. Thank you very much for going over how we're building a sustainable gaming business for our means of gamers and aim to have a positive impact on their everyday lives. Since 2019, we've definitely achieved consistent progress in our sustainability goals for environmental impact, social diversity and governance. Our sustainable road map is very clear. And as you know, is -- and as you said, and as I can witness this is fully embraced by the studios who really support all these initiatives, which is amazing to see.

Yes.

But we all know, being a purpose-driven company, it's not just good. It makes good business sense.

Agreed.

And this is also confirmed by the several peers and partners collaborations that we have in this front. I know you have many, many collaborations on that front. So thank you.

Thank you.

Excellent. I'm happy to now welcome Amy. She's our SVP of Operations and Synergies, and she will go over how we are leveraging our Stillops platform to level up synergies, Phase 4. Amy, please?

Thank you, Alexis. Hello, everyone. I am very excited to be here with you today to talk about Stillfront's latest efforts around synergy. First, I'd like to introduce myself. And by the way, I think this image of myself doesn't do justice to how I actually look. I won't say better looking, but much more colorful in person. My experience in the gaming industry began at a time when free-to-play was still somewhat new in the U.S. I started out in corporate strategy and eventually performance marketing at Nexon. Then, I later joined Disney Interactive, where I had led live ops for Disney's codeveloped free-to-play mobile titles, such as Frozen Free Fall. More recently, prior to joining Stillfront, I was at Blizzard Entertainment as Head of Product Management for Mobile Titles, where I built and led product management group for mobile titles such as Diablo Immortal. I was busy working with an extremely talented group of people trying to figure out how to monetize responsibly, and how to go to market successfully. Any Diablo fans out there, raise your hand? Well, I can't see you, but I'd like to -- I think that there was at least one hand raised. At Blizzard, I also drove the efforts to level up its mobile capability efforts across game development to publishing, and I led a company-wide effort to assess its mobile capabilities. Since joining Stillfront in November 2021, I have been focused on 2 key responsibilities: first, leading the business operations for our North American studios, and providing support and governance; and second, maximizing the value of synergy at Stillfront. And on that note, today, I'm here to talk about our latest efforts around synergy. Next slide, please. So at Stillfront, we have been very focused on leveling up Stillops, which is our key business platform and our core underlying asset that powers up our studios capabilities. As the market continues to evolve, taking a disciplined and structured approach to leveling up Stillops and operationalizing ensures that we are able to make clear targeted synergy investments so that we are well positioned for success. And as a first step in our disciplined approach, we conducted a comprehensive capabilities assessment across Stillfront studios to determine their key strengths and gaps and the approach to closing the gaps. The assessment result helped set a clear priorities for 2023 to ensure that an appropriate level and type of investments were being made to level up Stillops. We also defined clear success metrics to measure the impact of synergy, which is being rigorously tracked. And we will be communicating these metrics out on a regular basis. Next slide. So -- now this slide looks a little bit overwhelming, but please rest assured, I won't be going into every one of these 50 capabilities. I just wanted to give you a glimpse under the hood, so you can get a sense of the kind of capabilities that the studio is assessed. The assessment looked at the adequacy of the capabilities from a score of 1 to 4, what's 1 being messy and 4 being world class. The studios were also asked to indicate how critical they deem these capabilities to be for their respective studio and their level of interest and collaboration. These last 2 points criticality and collaboration were very important for us to understand because at the end of the day, we want to make sure that we are prioritizing our key synergy initiatives and investments in the areas that would provide maximum value and impact for the studios. So what were the results? Next slide, please. The results showed that we are strong in user acquisition and live ops. And we are doubling down on our investments in these areas to continue to be effective and impactful. The result also shows that we have an opportunity to improve our capital allocation for a new game development. Now this goes hand in hand with our 2023 focus on market validation, on soft launch testing strategy and go-to-market capabilities to ensure that we continue to successfully develop and launch games that resonate strongly with our players. We see that even with the biggest developers, they struggle to go to market successfully. And we are constantly challenging ourselves to be best positioned for success in a continuously changing market landscape. Furthermore, we are also leveling up our capabilities around in-game advertisements and cross promotions. Now having these clearly defined prioritized set of key capabilities has allowed us to be disciplined and focused in determining the appropriate level and type of investments in Stillops. And most important of all, we are being very intentional about the specific investments we are making in Stillops to best support the prioritized capabilities for 2023 so that they translate into measurable impact in terms of revenue and cost savings. Next slide, please. And now here is a high-level snapshot of the kinds of investments we are making to continue leveling up Stillops. On the collaboration side, we're continuing to be deliberate about organizing knowledge-sharing sessions among our studios. And a good example of this is actually the LiveOp Summit, where we will be sharing key product insights and live-ops insights with the ultimate goal of translating these learnings into something that's actionable and impact driving across Stillfront studios. We are also doubling down our efforts to push for co-development and expanding our franchises across our studios and regions, which Phillip, our CPO, will talk about more later on. On the hub side. Our hubs offer productized services with clear service level agreements and highs of use. These hubs are also continuously expanding their services to ensure that they can support the needs of the studios. As an example, the global marketing hub is comprised of veteran marketing experts and offer mature productized services around paid user acquisition. It now has expanded its services to include product marketing and go-to-market-related capabilities. I'd like to point out that this hub approach is our key competitive advantage as it also allows us to draw key insights across the studios. It helps us connect the dots, gather trends, ensure key learnings across the studios that the other studios can then take and apply, thereby maximizing the value and impact. In 2023, we're also investing to further grow additional hubs. With the in-game advertisement hubs, we are at leveraging an existing group of experts with a Stillfront to broaden their reach and provide concrete support. With the talent and recruiting hub, we're identifying ways to be efficient and strategic in recruiting and retaining talent. And last, but not least, with the Art Hub, we are leveraging our existing group of talent to produce art for in-game and UA. With tech and data, we are making significant strides on the data platform side to standardize and share game in UA data. We also have been able to make substantial cost savings by bringing together individual level studio deals and tying them into group-level enterprise solutions. So as you can see, we have been very busy throughout 2022 and we are confident that our structured and disciplined approach to leveling up Stillops, sets us up for success in 2023. Thank you, everyone.

Thank you, Amy. Thank you very much for taking us over how we are leveraging and scaling up Stillops to level up synergies. This is an area where I know you have a lot of experience, and I know the preparation work down in 2022 is going to be key to the delivery of increased synergies across our studios in 2023, which is the fourth pillar in this fourth phase of Stillfront. So thank you, Amy and team for the hard work there. Thank you very much. I'm happy to now welcome Rex, Co-Founder and President of 6waves who have joined the Stillfront family in February of 2022. Rex, good to see you.

Alexis, good to see you, too.

How's everything over there?

It's early, very busy. But yes, a lot of stuff going on.

Excellent. Listen, Rex, why don't you start with a quick intro of 6waves and then we'll do some Q&A.

Sure, definitely. So let's jump into the first slide. Okay. Yes. So I will be here to tell you guys a little bit more about 6waves. Again, I'm Rex. I'm the President and Co-Founder of 6waves. 6waves is a leading mobile gaming publishers in Asia, in particular, we focus in Japan, which is a very lucrative market that I will tell you guys a little bit more about. From an operation perspective, we have actually offices across Asia. So starting out with our Tokyo office, we have like 25 headcount, and then they focus on publishing and operation in Japan as long -- as well as community management, customer support. So that's our team in Japan. And then in Beijing is where our gaming development studio lies. So this is actually responsible for our in-house development. And right now, the team is actually working on some collaboration projects within Stillfront, which I will tell you guys a bit more about. And also in Beijing is our business development team that actually help us source game from different parts of China for second-party and third-party publishing. And finally is Hong Kong, which is where our headquarters is. This is actually where we do worldwide publishing, operation support and also business support, and we have 33 headcounts there. So in total, we have 114 headcounts in Asia, working on different projects, spanning first-party, second-party and third-party games. Okay. Let's go to the next slide. So let me talk a little bit more about the genre that we focus in. So these are -- on this side is our top games in Japan. These are what we call 4X Strategy games, which are very highly engaging and they have a super long product life cycle. That's why we like it. We call them our 4X franchises. And something special about this is aside from the 4X Strategy genre, they were using like the Three Kingdoms and also Sengoku themes. These are based on historic characters in China and Japan, and they are almost like a free public domain IP that works really well in Japan. It helped us like lower our user acquisition costs and also help us connect with our core target audience, which tend to be elder audience of age between 30 and 55. Okay. Next slide. Okay. So here is just a quick preview of one of the collaboration projects that we've been working on with another franchise within Stillfront. So there's a game called Home Design Makeover by a studio named Storm8. So we've been eyeing this game, and we think that it's actually ripe for a remake in Asia. So why I call it a remake, it's not just purely localizing and translating the game for Asia and Japan, we are actually changing out everything within the game, like from the characters, making them more like Japanese anime style, the high saturation graphics, which resonate better with like the Asian audience all the way down to like the tile, making them super cute and like the color text. So basically, it's a remake of the entire game using the Storm8 engine. So we're looking forward to launching this game in Q2. Okay. So this is just a quick overview of 6waves and what we're currently working on. So maybe I'll turn this back to Alexis and we can do a little bit more of a deep dive about the Asian market and 6waves.

Thank you very much, Rex. That was great. Let's deep dive into a few things. Could you please maybe elaborate on the mobile games publishing landscape in Japan?

Yes. So just to give you guys a little bit more a context, right? So in terms of like mobile gaming revenue, Japan is actually ranked #3 in the world, right behind China and a close second to the U.S. In terms of like population, like Japan is probably like 1/3 of the U.S. But what it has going is actually because of the deep gaming culture, the players are really willing to spend in the game. So the average revenue per user is almost like 2 to 3x of that compared to like Western players. So that's why it is always like a very close second to the U.S. in terms of like revenue generated. And the majority of the games in Japan is actually some variant of RPG games, which are loved by the Japanese players. And they are being produced by big Japanese publishers. And oftentimes, they have like a tie-in with a massive IP like Dragon Ball or like One piece. So for us, where we see the opportunity lie is not to really compete with these big Japanese publishers on RPG-type style games. So we are able to identify like the 4X Strategy genre as a niche genre that the Japanese publishers are not good at, but the Chinese developers are very good at. So we're able to double down on the strategy to bring 4X Strategy games into Japan.

Yes, excellent. And obviously, we have many studios in the group who are also very good at strategy genre, and we have other genres that we can bring to you, but we'll talk about that later. As a second question, can you please tell us more about the genres that you are present in and what are the challenges and opportunities in the Japanese market at the moment?

Yes. So yes, again, the genre is 4X Strategy with the tie-in of like a Three Kingdom or Sengoku themes, which we feel very special about because we've been doing this and doubling down on this strategy for a while now. It's almost like the 6waves brand. A lot of our players, they know us for Three Kingdoms 4X Strategy games. So this is working out really well for us. In terms of challenge, I'm pretty sure there's plenty of challenge always like with the mobile gaming like app discovery, UA, like content treadmill and all that. But maybe I'll talk a little bit something specific to Asia. So one of the things that has happened like throughout most of 2021 and into 2022 is that the Chinese government has decided to freeze approval for all new games in China. So -- because of that, a lot of like projects were kind of like cut due to downsizing even from like Tier 1 publishers like Tencent or NetEase, they were kind of like reducing the number of projects that they're working on. And because like they were not able to get a lot of organic growth in China via new games, many of these developers, they choose to pivot and self-publish their own game in other markets like Japan, Korea, U.S. and like the rest of the world. So as a result, like the pool of games to choose from, from a publishing perspective, has shrunk during those 2 years. And we're -- it was more difficult for us to find high-quality games during that period of time.

Yes. But now that's changed quite radically, right?

Yes. So yes, maybe I'll talk about kind of like the flip side, like the opportunity side of things. Since like Q4 of 2022, the Chinese government again decided to start opening things up and start granting new licenses going into 2023 as well. So we are already seeing like many more new projects that are underway that are very compelling. And the same developers also pivoted back to focus on the Chinese market which gives more opportunity for us to publish the game for overseas. And then I think on top of that, one thing that I want to point out from an opportunity perspective, it's also like the collaboration with like Stillfront existing games, we are -- because of that, we're also less reliant on just like the Chinese market and like the game that we can source from them, we can now start sourcing game from any 1 of the 22 other studio that's part of the Stillfront Group.

Yes. I mean it's always a pleasure now to go over the pipeline with you because now you have the embarrassment of choice of all these excellent, not only external games, but also internal games to choose from. So it's always -- and I know a lot of studios are pitching you to try and enter Japan. So you get to choose, so that's great. And...

That's correct.

But if we look into -- more into Japan and more like the marketing side of things because I was always surprised by how different it is to market a game in Japan. So which marketing channels are important in Japan? And what are your strengths there?

Okay. Yes. So yes, Japan is actually literally very different than the rest of the world and even the rest of Asia. So even before we start doing what we call traditional user acquisition, we start with like a prelaunch. So preregistration, a lot of like PR on like local gaming website, preregistration website. And even like gaming magazine, which is still popular in Japan. So with this, one of our top games called Shishi, which is a Sengoku 4X Strategy game. We're able to garner 120,000 preregistration prior to the game's launch. That's like probably 4 weeks before the game's launch. And as a result, we're able to capture the golden cohort before the game is even launched and able to populate -- when the game is launched, we're able to populate the initial servers to ensure a very healthy ecosystem within the game. Now going into the actual kind of day-to-day UA in the traditional, maybe like Western side of the world, if Facebook or Google UAC would be kind of like the go-to channels where you capture a lot of your UA traffic. But for Japan, that's probably represent less than 30% of the marketing channel that we use. In particular, Facebook is not as popular in Japan, it represent only maybe like 5% to 10% of our UA channels. So we rely a lot on local ad networks like nend, like Mox, like [ Asax ], there's like probably 20 to 30 different mores that we use like for the rest of the 70% of the marketing channels. And that's what we need to do in order to scale a game in Japan.

Yes. And it takes years to learn how to work with those networks in the proper way and build the relationships and all that. Absolutely.

That's correct.

And -- yes, go ahead.

Yes. So I think you asked about like our strength in Japan. So to boil down, I think it's just like our extensive knowledge of the Japanese market, starting from like something like the right game with a good product market fit. As I talked about earlier, like 4X Strategy has become a very good product market fit for Japan. And then going to like the day-to-day operations and live ops, that's super important for Japan as well because Japanese player has a super high consumption. To give you an example, like our games, people spend around 120 minutes or 2 hours per day playing our games. And one of the key reasons because when Japanese spend the day out, they don't drive, they take the train and commute to work and the train take a long time. So that's why people play like a long time with games while they commute. And as a result, our content treadmill is like crazy and our live-op schedule is actually very frequent. So we just need a lot of like new features and a lot of like live-op events to keep our players engaged. And then finally, I kind of like covered a bit on local marketing tactics already. So from preregistration to knowing what ad networks to use. And it's almost like an art in terms of like creating the creatives that would actually attract Japanese players through these games.

Absolutely. Yes.

Yes. So finally, I also want to add, like before we're really leveraging most of this, like in-house like for 6waves, right? But now that we're part of like the Stillfront Group, we start leveraging our knowledge for the Japan's market and Asia in general to help out other studios within Stillfront. In particular, I think one to name out, a studio called Sandbox, you have a game called Albion Online that we had to help them conduct a whole bunch of like test campaign in Japan, and we're really glad to see that they're finally bringing their game to Asia.

Yes, absolutely. And I think I really invite everyone who is watching this after to go on YouTube and watch the Albion Online coming to Asia trailer. I think it's about 1.2 million views on YouTube already. So that's a pretty good work, a pretty good help that you've done there. Thank you.

Sure.

So actually double clicking on that point. What opportunities do you see in leveraging the group's assets in Japan, if we go a bit deeper into that?

Yes. So Well, currently, we're working on like 3 different inter-studio projects. I think one of the key thing is because like a lot of the Stillfront studio is actually very good at actually Western genre. So there is not a lot of actually good Western game in the Japanese market. So we really see that as a good opportunity to bring some of these genres such as puzzle and decorate like into the Japanese market and also like Asia in general. And I think like with these assets and with like a lot of the proven game franchise within Stillfront, one of the things is actually we can reduce like our time to the market, which is really hugely important for any game to have like a first-mover advantage in any given market. It also requires less resources and headcount because a lot of the big gaming engine is built out. So we can actually work on like multiple collaboration at the same time. And finally, I think it's just very important too, is because like the game franchise has been proven and battle tested by players, there's less critical bugs and the issues that we have to deal with.

Yes. And absolutely. I mean, having built games myself, as you know, and publish them, it's a massive advantage. And of course, being part of the same family, the exchange of information and KPIs and all that is super fluid. So it's a really great opportunity. We still have a minute. So let's just wing it in terms of what's your experience from the first year as part of Stillfront? What would you say is -- how does it feel?

I feel very busy, but I would say, productive at the same time as I just talked about we are doing into three inter-studio collaboration already. So time fly by very quickly. It has been a year already, but just super busy. But I think at the same time, I want to add like there's actually good camaraderie with our peer studio. Mobile gaming is difficult before just like me and my team we were facing a lot of challenges alone and trying to figure everything out. I -- work like trial and error. But nowadays, I think being part of Stillfront, as 1 of the 23 other studios, I can just ask like about level design, live-ops, ad monetization, IDFA and get very timely response like from a peer studio with like domain expertise. So I think it's quite reassuring to be not alone and it has been a very good experience.

Thank you, Rex. I confirm you are not alone. Thank you very much for this. Thanks for this deep dive into 6waves. I'm personally, as you know, very excited about what you can do to expand some of our Stillfront franchises into the Japanese market. And of course, the synergies, the positive growth and margin impact this can create. So thank you very much for all that. I'm now happy to welcome our CPO, Phillip Knust, who will go over how we are outgrowing a challenging market. Phillip?

I will start my presentation with looking back at the games market in 2022. I think it's well known that the market was under heavy pressure due to the comparison to the tough boosted COVID years. And in addition, we have seen a generally challenging market environment. I think this is -- a good visible when we look at the chart on the right side, where you can see Stillfront's organic growth in red and our addressed market in black. So here you can see how Stillfront outperformed the market throughout the year. And especially in the last 3 quarters, there was a significant gap between us and our peers. Now one of the main reasons for this is our strength in live operations, especially in the strategy product area, but across all our product areas equally. And this is about being able to activate our players, reengage them, monetize them and being able to compensate for potential weakness in consumer spending due to the right live-ops tactics, boosted by the Stillops platform. Also as part of the Stillops platform, we have launched and established our LiveOps Summit which was an in-person event, where we are getting more than 40 monetization live-op experts from all around the world in one room to discuss how do we tackle the strategic market environment? How do we raise the bar for live operations now and going forward? And this is an ongoing effort with the next LiveOps Summit already being in March. We've also seen a particular challenging ad monetization environment, which we could partly compensate by further boosting our hybrid monetization, and I will talk more about this in one of the coming slides. Lastly, I want to also point out how our investment in new games delivered significant growth of revenue coming from these new games, further delivering and contributing to the success story. Now looking ahead, we expect at least the first half of 2023 to remain tough due to this tough market environment. At the same time, our fundamentals will continue to be strong and maintain to be an edge, allowing us to continue outperforming our peers in the long run. Now the first deep dive I want to do is about performance marketing. We need to keep in mind that last year was the first post-pandemic year with no lockdowns in our target regions. And we have seen high spring and summer seasonality, at least as high it was prior to the COVID years. And in addition, there was the FIFA World Cup event in fall, which is very unusual because typical such long sport events are in summer, where we have low seasonality anyway. Then of course, a major factor for performance marketing last year was the changes by Apple on their privacy policy. This affected most of our marketing partners, platforms and channel. So generally, I think it can be summarized to say that we see lower performance on iOS and at the same time, higher prices on Android. So even so the Android platform was not directly affected, we see how marketers are shifting their UA spending budget to Android, increasing the competition and rising the prices. On a channel level, we have seen major movement, beginning with Facebook to rapidly decline in its market share and at the same time, other channels benefiting from this, especially the video networks have been doing very well in the early days of the post-IDFA phase. Now we have also seen that some of our competitors are reacting to these challenges by further expanding their own return of investment windows, which is putting additional pressures on our strict 180 days return of investment profitability standard. So without a doubt, we would have been able to spend even more UA on our games if we were to steer our breakeven to multiple years, but this would not be in line with our profitability strategy. So all these challenges were significant. And to some extent, we highly benefited from our diversification on platforms and channels. So on the platform side, we have not been overly reliant on iOS. We were always good partners with Google, and we continue to work with the smaller platforms such as the Microsoft Store. And when it comes to channels, we are working with more than 100 different partners. And here, we are constantly evaluating, benchmarking and assessing which are the best-performing channels and focusing on dynamically allocating our UA spend where we currently see the best return. And it's important to understand that -- it's a constantly moving target as on one side, Apple's ATT solution is getting better and better and on the other side, the partners are beginning to improve the algorithms and seeing some more successes. And this allows us, on one side, to move to successful channels, for example, decreasing UA spend on Facebook, moving it to TikTok, which emerged as a strong partner last year, but also doing this on a game base and even on a genre basis, like moving away UA spend from casual games to strategy games. Another key for success last year and going forward was creative testing. So this was especially important because last year, multiple of the larger partners did change their policies for marketing creatives, meaning, for example, how close marketing material needs to be to the actual gameplay. This required high dynamic work from our studios on one side, working closely with the marketing partners and then being able to fastly iterate on testing new creatives, finding successes, being able to share the successes and apply them to different games often new games from different genres. This, I think, also highlights how even the smaller teams can benefit from the Stillops platform because some of our game teams do have -- like some of our teams and games only have small teams, but they still have access to the -- to the knowledge and leverage of the marketing hub, allowing the small teams to spend UA on volumes, which is significantly higher than they would ever be able to spend on their own. Then, of course, lastly, I want to talk about limitation and marketing targeting on iOS. This was a major topic before it even happened, and there were a lot of voices in the industry who believe that especially games which require a high lifetime value, like our strategy games, would potentially not be able to do any performance marketing at all on iOS. So here, I'm glad to confirm that this is not the case for Stillfront. On one side, we definitely benefited from our diversification on channels, games and markets, but we -- especially we're able to leverage our strength in data analytics. So being able to work with the early tracking signals to assess if a registration becomes a player who is continuing to play the game, to eventually pay in the game or rather churns away is key to be able to model the lifetime value and to cohort return of investment. So being able to predict how the return of investment will evolve after a few days, week, months and even years. And being able to do this early and fast with the initial tracking data is key to be able to judge if the channel and the source is the right performance or we should rather shift budget somewhere else. Now the biggest disadvantage we have seen on limitation marketing tracking. We're clearly affecting launching new games where we are not having the loyal existing user base, which is sending so many crucial and important game KPIs and signals that we can benchmark against. So to summarize the performance market situation that despite this very challenging market environment, our Stillops platform allowed us to continue spending on a stable UA level compared to the boosted COVID years due to our ability to effectively allocate UA investment where we see the best return. This can be on a channel level, this can be on a game level and then genre level. And sometimes, this requires very tough calls and tough decisions, but the results also speak for themselves. Now next, I want to talk about ad monetization. We have seen, especially in the second half of last year, a particularly challenging environment for ad revenue. This came due to the big brand partners cutting down their spending due to economic uncertainties, which negatively affected revenues that ads generate, which are shown to our players and games. So for ad monetization partners who prioritize the brand marketing, we have observed that the eCPM was declining by more than 70% year-over-year. eCPM being a common benchmark to measure how much revenue you make from showing ads to your players. Now this demand of the brand marketers was going down, however, these partners are often set up to only deliver brand marketing, for example, by showing certain banners in the game. So this is not performance-driven. That means even though there was less demand, it didn't mean that our marketing teams couldn't return just much cheaper acquiring the users via the same partners. And this resulted in a certain imbalance of having a low eCPM, so lower revenue coming from ads displayed in the game compared to a high CPI. So high cost per install of acquiring users into the game. And this was a tough environment for our casual games. And it's also for sure, especially tough for the hyper-casual games market, but this is a segment where we don't have exposure to. Now we did react to this challenging environment by further diversifying our ad monetization partners and especially by boosting hybrid monetization for studios where it was applicable. So while ad bookings declined by 8.8% organically on the group level, having a toll on our margin, we have studios like Candywriter, which grew by 19%. And I think this is greatly illustrated here in the chart on the right side. This is showing Candywriter's quarterly bookings divided by in-game monetization or in-game purchases in red and ad monetization in blue. And we should focus on the first quarter because this is traditionally the strongest quarter for ad revenue because here, the big brands are pushing their budget for the holiday and Christmas season. And you can clearly see it if you look at the first quarter of 2021, where the ad bookings were leading to a peak in overall revenue and 53% of this revenue came from ads. Now if you look at the fourth quarter of 2022, the picture is entirely different. It is the ad bookings that not only decline in share, but also in volume. So the only reason how Candywriter could contain its very strong growth was by boosting their in-game monetization by being able to leverage the live-ops expertise and going for a stronger, more healthy hybrid monetization. Now this sets up Candywriter in a very good position going forward because regardless of when the brand marketing will pick up, and it will pick up eventually, they are already in a good position and then they can further benefit from when ad bookings are stronger again. Then I want to talk about the new games. So as I mentioned earlier, it was particularly difficult to scale new games into the market. To bring them from an early soft launch phase to a significant volume due to the challenges I've mentioned. However, we have seen success with launching new games in our core franchises. While at the same time, we have seen that we have to cut back further on less promising project outside of these. We did manage to grow our active portfolio by 13 games, of which 8 were organic launches. And if you look at the chart on the right side, you can see that bookings of new games immediately reacted, growing by 220%. bookings of all games growing by 29% and CapEx growing by 60%. So this clearly shows that last year for us was an investment year. We have invested significantly more and launching new games and soft launching the game, scaling these games in the soft launch phase. And we have been immediately seeing the impact of new games to also deliver revenue. Here, it's key to understand that many of the games that we started last year are not even launched at all or in very early soft launching phase. That means going forward this year and the years beyond, we expect our margin to further improve due to bookings on new games improving. And at the same time, CapEx going further down, as we also continue to laser focus our allocated capital on these areas where we see the best returns, which leads me to the franchises. So I think it's well known that Stillfront has a highly diversified active portfolio of now 78 game titles across all our 3 product areas. However, it's key to understand these are not just small niche products, many of them are large established franchises. So if you look at the numbers, 12 of our largest franchises, each generated more than SEK 200 million bookings last year. And the top 5 franchises generate more than SEK 500 million. So these are large established franchise with a loyal user base resistant against uncertainty and fluctuation in the market, strong brands that we can work with, and they're still evenly distributed across our product areas, still enabling us to shift spending where we see the best opportunity. Is it currently the high LTV strategy game, or is it again more the casual game, which is benefiting from a resurging ad market. And we have been focusing our investment on these franchises, identifying where we see the best potential, decreasing spend outside of this. And I think this is also very well visible when we look at the games that we launched because 7 of the 8 games that we added organically to the active portfolio last year were part of these large franchises. So to further illustrate franchises, I brought a couple of examples, and I want to start with home design, which is one of our strongest franchises, delivering SEK 820 million bookings last year, despite having significant exposure due to the -- to the ad market. Then there's the Empire franchise, which crossed SEK 11 billion lifetime value showing remarkable stability and margin contribution. And one of our, yes, rising stars franchises is definitely the supremacy franchise, where we now have 5 studios working on, achieving more than 100% year-over-year growth last year. Here again, it's important to point out, these are strategy games. So despite the challenging market environment, despite concerns about doing performance marketing and strategy games, these games grew by more than double. Now a good example for our diversification is in BitLife because BitLife is another great franchise. It's the #1 life simulator worldwide, which is an entirely different genre with entirely different audience to our strategy games, and it's still performing so good. So I've just shown how Candywriter evolved throughout the last year. But it's important to keep in mind that this is not only part of the BitLife franchise because we also have Goodgame, which is working with Candywriter to do all the localized and culturized spin-offs. And during the year, we have launched, especially the Portuguese and Spanish version to successfully tackle the South American market. Now we also have franchises, which are leaders in sub-genres a certain reason. And definitely the largest and most successful one is Jawaker, which is the #1 classic games in the MENA region, which we love to see because the MENA region is the fastest-growing games market in the world. And Jawaker is a very strong brand in this region, making it even more profitable. Now to add additional examples for how we grow our franchise, I also want to highlight Albion again. So we did expand it to mobile already during 2021. And we further grew it last year by also rolling out the version, improving it and scaling performance marketing on it. And we are entering the next phase with launching the Asia version this year. It's actually starting next month. And yes, coming to how we further grow our franchises. So it's really -- the key is allocating our CapEx in profitable franchises to optimize the return on investment, while at the same time, cutting back the spending on areas where we don't see this clear return. This also frees up additional capacity for co-development with multiple studios for either new game development because must not underestimate the value of life operations of adding new feature -- features to existing games. But in addition, also being able to co-develop some multiple studios contributing to one's franchise and launching new games. So Goodgame is a great example, which did establish itself as a very strong partner to Candywriter to do this BitLife spin-off, and we are continuing to do it. Just in January, we launched BitLife France, which immediately became the #1 app in the France app store. And another good example for upcoming culturalization is, of course, what we just talked about on 6waves side, taking a strong franchise like Home Design and, yes, interpreting it and modeling it to the Japanese market. So we're not just talking about let's do marketing in Japan, but really adjusting the games to have highest chance of success, which is something the [indiscernible] studio would not be able on their own -- to be able to do on their own. We also continue our marketing channel and audience diversification. I just want to, again, repeat that this is really an ongoing and moving effort because the channels are changing, there are new channels emerging as a lower performing. We will also never give up of testing all channels. For example, Facebook is doing much better now than it did a year ago. And who knows how it will do in half a year. And we are constantly moving forward. We are exploring certain channels that may work on a strategy game but not on the casual game and trying to understand if we can't [attribute this]. Good example would again be TikTok. Some of our strategy games highly benefited from TikTok, which you may not think because I think many people think about TikTok as being more of a younger audience and not our male 40-plus strategy audience. We will also focus our special project on the most valuable franchises, we have the clearest and tangible return, special projects being, for example, generative AI across promotion. And lastly, I want to highlight that we continue our IP licensing and partnership track. For IPs, it's always worth highlighting Property Brothers, one of the strongest games in the group and part of the Home Design franchise. And for partnership, I definitely want to talk about our work with Netflix. So we did launch Too Hot to Handle for Netflix last year, which became the strongest Netflix launch so far, and I look forward to continuing the collaboration with them. So this concludes my segment, and I hope this gave you a good overview about how we will continue to allocate our capital on the most profitable franchises and on the most profitable channels to improve our return of investment.

Thank you. Thank you very much, Phillip. Thank you for going over how we outgrow a challenging market in 2022. And it's -- but I say it's been really a pleasure to work very, very closely together with our teams and the studios to make sure that we not only leverage our strong live operations, but synergies, investments in new games and make sure that we counter a weaker ad market with hybrid monetization. And I think the -- we just launched recent France BitLife [Technical Difficulty] #1 in both platforms. So there you go. And also, obviously, in addition to our Stillfront platform -- sorry, Stillops platform and ability to work with the diversified marketing channels, definitely helped our studios better navigate the rough waters of 2022 and that was quite important. And going forward, we'll be able to drive further efficiency in our new games development by focusing on further leveraging the 2 core franchises that you introduced. And one of them is Jawaker, and we'll be talking to the Jawaker founder now. So thank you, Phillip. Thank you very much. And I'm happy to now welcome Mo, the Co-Founder and CEO of Jawaker [ at studio ] that joined the Stillfront family in October of 2021. Mo? How are you doing?

Hi, Alexis. How are you?

Not too bad, how are things in Amman? Yesterday, you told me it was even colder than here in Stockholm.

A little bit of an exaggeration, it's cold, not colder than Stockholm though.

Excellent. Good. Well, I'm glad to hear that. Listen Mo, why don't start with a quick introduction of Jawaker and then we'll do some Q&A, you and I.

Absolutely. Absolutely. Let me dive in. So I don't know if the slide is up, but it's sort of just like a one-page kind of overview of Jawaker, but I'll just talk to it. The first thing that I kind of want the audience to know is what Jawaker means actually in Arabic. It's the plural for jokers. So effectively, the actual name is very -- it has become a household brand. So playing a certain social card game on Jawaker versus playing it on any other app has a different meaning to a lot of our players. So effectively, we really have built a brand, and we've built a brand around our understanding of what these card and board games actually mean in our part of the world. So another thing I kind of wanted to make sure that the audience kind of understand is what these games mean to our part of the world. They're inherently social, so kids play with their parents, friends who were together in university, who are now living all over the world are playing these games together. And that inherent social nature of these games is deeply rooted in sort of the cultural identity. We like to say that Arabs living across the world, like they connect to their culture first, based with food and then second on these card and board games. That's something we understood from day 1, and we've built our application kind of around that. So even though the interaction happens over games or the people play games, it's actually a social interaction around games. And that's a very important thing to understand. It's social features and the innovation that we did around the games, the actual basic layer of the games is what actually makes Jawaker special and unique. And essentially by kind of not by design, more kind of by coincidence, we've built this ecosystem and this marketplace for all these different games because of the different nuance tools of these different markets. So you might have a game that is called Tarneeb that is played in one part of the Levante, but then you'll find the Lebanon, it's called 400. And it is just a slight rule change but means a lot to the different players that play in these markets. So we are actually based out of the UAE. So geographically focused out of the region with a large technical team out of Jordan, which is known for its available and very qualified technical talent, and that sort of -- the nature of our business, we actually have grown the company by building products. So we're very technical in nature, everything we build and we innovate in-house. And that's kind of been our ethos from day 1. We haven't been really good at performance marketing, at least before joining the Stillfront Group. And that's one of our unique kind of angles to -- and additions to the group is effectively we've built a brand, and we've built this sort of household name around the genre that we have. So our actual organic growth and sign-ups is a big driver of our growth that we're actually looking to boost with some performance marketing as we kind of leverage the group's capabilities.

Wonderful. Thank you very much, Mo. You've touched on some of them, but what would you say really are the keys behind the success of the Jawaker app? And also, I think it would be good if you could explain what you're saying that the -- like go deeper into culture aspects and explain how your games have nothing to do with gambling basically.

Okay. So that's an important question because anyone who hasn't visited the region or spend some time here doesn't maybe understand that nuance. So first of all, the -- our games are actually played physically like in real life, mostly during the holy month of Ramadan, right? That's actually a time where people, whether before they break their fast or even mostly after they break their fast kind of sit with each other and socialize. It's actually, ironically, they play less of our games online and more off-line. We like that because it's kind of a reminder for our people of how fun these games are and we actually usually see an uptick after Ramadan because some kind of old users are activated. So that's one thing that's very important. These are cultural social games that are played between parents and children, between friends in college, they're used as a means of continuing sort of those conversations that happened over Ramadan outing or even sort of a social outing, while you were at college, et cetera. They're very, very, very -- they're woven into the social fabric. And that's something that we see across the Middle East. It's very important to understand that, that there are different games for different cultures. However, that dynamic of card and board games is similar to -- similar from a user. In Saudi Arabia, they play baloot but a user in Lebanon might play Leekha. And those it's the same dynamic, but a different game. So that's something that maybe is very important for people who haven't visited the region to understand.

Thank you, Mo. Can you -- I mean, you mentioned a little bit how -- the strength of the Jawaker brand, right? Can you maybe explain how you successful -- actually you have build this brand with very little -- I mean, I remember when we first met, I was just amazed by how little performance marketing you deploy to build that brand.

Absolutely. So what we do on our social media channels, sort of how we listen to our users and try to mimic the social -- the off-line social interaction into our application is actually what has been our biggest driver of growth and our biggest sort of brand catalyst, if you will because what happens is -- and I'll give maybe some examples. So we have an innovation called clubs, which are effectively large groups of people that come together that kind of play. And that online activity mimics how our users actually interact with our games in real life. A lot of users actually go to a cafe and frequent the same cafe and meet other people within that context of the cafe while paying these card games. What we've done is we've taken that off-line experience and created an online kind of meeting point for that. And then we've taken that to the next level, where clubs can kind of compete against each other as to who sort of earns the most experience points, et cetera. And that's really been pivotal to our strategy so far, which is, we listen to our users, we have a deep understanding of how they actually live the games that we play and live it in real life and then take that experience and map it online in a way that no other game has or can do, and that has been a big driver and catalyst for our brand.

That's excellent. And also, I mean, the way you do your product launches and your go-to-market model in terms of entering a new market is quite unique to you and -- the MENA region but quite unique to you. Can you maybe take us through that?

Absolutely. So again, maybe a few examples might help, and I'll give you the example of because we have a deep understanding of the social dynamics of our players, it's -- one important thing to note is Arabs in general, live all over the world. And there are at least within the world, a lot of, say, Lebanese who live and the UAE, or a lot of sort of diaspora who live in Europe, whether it be Germany or Sweden or even the U.S. So we understand those dynamics and sort of how they interact with each other. So for example, we wanted to target the UAE, which is known to have a large population but a very small population of local Emirati nationals and just sort of the remaining are from all over the world. But there are a lot of Lebanese who live and work in the UAE and have high purchasing power. So one thing that we sort of did is we kind of targeted the Lebanese speaking in Lebanon, and that was relatively cost effective to target, but then they kind of built a critical mass of users and then they were reaching out to their friends who are living in the UAE. So those -- we were able to get those users effectively kind of in an indirect way in a very cost-effective way and then benefiting from the high ARPUs in a country like the UAE or even Saudi Arabia. And we constantly do things like that. We've done similar sort of targeting of diaspora in -- of Arab diaspora in Germany. So if I put an ad in Arabic, it might not be very sort of -- there might be not a lot of people kind of looking at that. On another angle like a country like Egypt, where a lot of word of mouth and a lot of sort of offline activities are important, sometimes we feel the need to just roll up our sleeves and just kind of send the team to better understand those nuances. And doing things as basic as run the kind of -- distribute flyers, which can be a very cheap way of sort of spreading the word and creating that word of mouth. So we always think creatively, and we take it market by market. It's never a one-size-fits-all for us.

Yes. I love the example of Egypt, where you have somebody that spends time there, goes to the cafes, goes -- understands what works, what doesn't work there, I mean it's really, really good. But moving on to something else. What would you say are the advantage of the Jawaker ecosystem? I mean, one of the things that blew me away as well when we looked at your data for the first time, was just superior level of engagement and sometimes you even refer to it as a social network, so can you get a bit more into that?

Again, this is -- it's kind of like when you look back with 2020 hindsight, thinking that it was all planned, it was actually not [ ineffectively ] like planned strategically, it was kind of organic. But what we have seen right now is an application ecosystem. So first and foremost, we understood inherently that a lot of our players play multiple games. So I don't -- even a user in Saudi Arabia doesn't just play 1 type of card game, there may be one that is more popular than the other, but usually, people play 2 or 3. So by adding these different games in a single app, has -- gives the sort of users more loyalty, so they can play their favorite games within the app and also an outlet to learn how to play other games that they might have heard of that effectively increases the retention and time on site. So that's one element of Jawaker that makes it unique. So then the other thing is that when you develop kind of -- or you build these sort of -- that layer of social features, those can be leveraged across games. So right now, I have friends, some of which may play game A, some of which may play game B, but they are all friends. And we've also sort of seen the impact of that, where we've launched games, card and board games that are extremely competitive on the App Store. But when we launched them on Jawaker, people say, I'd rather play that game on Jawaker than play it as a stand-alone. And it also reduces the -- or let's say, increases the opportunity cost of user kind of leaving Jawaker or deleting the app because effectively, they're not deleting a single game, they're deleting 40 games. So they just stay there and continue to engage. And it's our job to continuously listen to our users and stay ahead of the game in terms of the features and the games that we add.

Deleting 40 games and their friends and their networks so they kind of social...

Absolutely.

Yes. So that explains in part the incredible engagement there. How about -- I mean, can you explain to me as well, what would you say are the challenges in building a strong employer brand in what is a competitive global tech industry in your part of the world?

That's definitely a challenge and a challenge we recognized honestly early on because, again, I'll go back to sort of who we are as a company and that we are a technical company, and we have a significant part of our employee base, our engineers building product. Those types of jobs usually are much more marketable both locally, regionally and effectively, internationally, to be honest. And we've seen that sort of difficulty with retention early on, but we preempted that. So the culture that we have in our office and the way we think about retention is quite forward-looking for the region. And I would say, if not on par, probably even above average from sort of the thinking that, that happens globally. We thought of remote work before remote work became sort of popular in this part of the world. So culture is very important. We've implemented cultural values that we stick to kind of like our constitution. We very much focus on peace of mind and sort of creating an environment of creativity for our team. And I can safely say that we really are, I think, again, ahead of the curve in terms of sort of retaining talent and sort of making it a very difficult decision for you to sort of decide whether you want to be with Jawaker or sort of leave. And our touch wood, but our turnover has been extremely low. And I think we've been successful with that, but it's primarily due to the mindset of what we want to do and sort of the environment that we want to create for our team.

Yes. And I have to say that when you hosted us a few months ago, I think, in October, November for the gathering of all the Stillfront Studios Stillcon, alongside Babil, I mean all the feedback I got from all of the different studio heads and all that was how impressed they were with your team, the diversity, the tech expertise of the team and all that. We're very, very impressed by your team. Let's do a final question. We have a bit of time still. So you've been now part of the group for 15 months, more or less, I think. What would you say are the main learnings? And what kind of synergies are you planning to leverage? Phase 4 synergies.

So it's -- it has been a real eye-opening experience. I mean -- again, I'll touch upon sort of the most impactful things that I felt myself personally, and I think the company has felt over the past 15 months. I think one thing that comes top of mind is the introduction of systems in the way we work. I'm a big fan of systems, I'm a big fan of just an institution not being sort of exposed to any key person risk, if you will. And that's something that coming into Stillfront, getting that advice and that feedback has really been transformational. Honestly, like I myself now feel plugged into a system of -- the way we sort to have processes to run things, it is just -- has really been amazing because it gives comfort that this engine runs based on those systems. And I think that's something that companies in our part of the world don't really appreciate as much and just getting the exposure to that best-in-class way of running an organization has been, I think, extremely helpful for us. Another thing that I will kind of touch upon is the people, really, it's, we have been to Stillcons. They have been back on after sort of I think the initial period because of -- towards the end of COVID, we didn't, I think, have the first one, but then we've experienced 2. And genuinely amazing people both on the sort of HQ level and on the other studios. And just engaging with people that are going through the same things that can help you out, it's not immediately tangible, but it is extremely valuable to be able to be part of that large network of decent smart sort of ambitious people, and you feel it. It's been energizing for us.

And I know you're already working with other studios in terms of boosting your -- the in-game advertising in your game sort of things. I know you're also working with the marketing up to -- because you haven't been doing much performance marketing. So there's some unused potential there.

Absolutely. And I think in addition to sort of -- we haven't made -- at least prior to joining Stillfront, we haven't made any money from in-game advertising, and that's obviously something that is a low-hanging fruit that we haven't even touched. The other thing is also our brand, right? The Jawaker brand is huge, and it has tremendous value. We're exploring -- again, I don't want to give obviously too much, but exploring, leveraging that brand in the MENA region, which, as I think was mentioned before, is one of the fastest-growing regions in terms of gaming. And having Jawaker positioned the way we are and sort of to leverage into kind of adjacent genres that if you just slap on the Jawaker name has tremendous value, and we are in discussions around that actually within the group. So that's on the synergy level.

Absolutely. Thank you, and the Jawaker brand is -- it is an amazing franchise in the region. We know that and Phillip briefly mentioned it. So thank you, Mo, for this deep dive into Jawaker. I personally love -- you have created a real ecosystem of games in the Jawaker app. And this is definitely very inspiring for when we're thinking about the wider Stillfront ecosystem, we're gathering lots of learnings from what you're doing. And -- so we are also learning a lot from you guys. Thank you, Mo.

Awesome. Thank you.

I'm now happy to welcome back Jörgen, the Founder and CEO of Stillfront for a wrap up and to conclude our Capital Markets Day. Jörgen?

Hello, everyone. I hope you have enjoyed and found it interesting with the capital markets that we have today. I hope that you have been able to take part of insights and learnings from both individual studios and the amazing successes from Jawaker, and I can really confirm and echo the strength of the Jawaker brand. As an example, we were invited to participate in the state visit when the Swedish Royal family visited Jordan a few months ago. And when they were asked the big 500 people audience that were there from the industry, from the authorities, do you know Jawaker and more than half of the people raised their hand. I think that's a lot. And the average age was maybe 50 or even higher, including parts of the Royal family. So that's a really fantastic strong brand indeed. But also listened to Rex and the guys from 6waves. We have gone into our deep dives on our financials with the hope that you should understand how we are geared up to reach our ambition to be the best games company in the world, not the most fanciest product, as I said, but we are innovative, not in the product in itself as much, to some extent, but not as much as we are in the way that we conduct our business. And as also Mo pointed out, the way that we identify elements and processes that really make a difference for all the great talent that we have out there, the 1,500 people and their game teams because that is the true core of the whole business that we have. As someone pointed out, we are 80% centrally with supporting the core of our business so that we can grow and be more efficient in many different aspects because that is the best games company in the world. So we have geared up our ambition indeed. We also have been very clear about when we saw how Andreas pointed out, how we have ongoing activities because it's one thing that I show some slides about Stillfront IV and we should be the best company, but it's all about execution, it's all about deploying that Stillops really in the way that Amy pointed out is making a difference and it's identify what priorities we should have during 2023 but also 2024 and onwards. We have a very clear road map towards reaching our increased profitability targets. We also -- Sofia described how we paired this ambition with ESG and sustainability aspects, which is absolutely core. Otherwise, we will not be either the best games company in the world if we do this without taking into account sustainability. We love cash flow. Cash is king or even King Kong, as we say sometimes, so we should continue to improve our cash flow so that we are leading. We have now changed our primarily profitability targets, so it better reflects the cash that we are generating. The market is tough. It has been tough, but we have shown that even though we're not happy with being at a minus level last year, we have shown that we can outgrow the market when it's difficult. We have shown that we can market in the toughest possible way like Phillip elaborated on. When it's tough out there, our strong franchises and the way that we can leverage our diversification is really something to -- it's very important for me that you can see that clearly, not only me saying it, but you can clearly see how we have done that and will intend to do for many years to come. So we are in a position that we would like to continue our strong growth journey for many years to come. We should leverage, we should leverage through the synergies that we can create and have created and even more so will create in the future. We are into the synergy phase, we are into the leverage phase, we should leverage the talent that we have, we should leverage the product portfolio we have, the diversification of it, but also -- and to a larger extent, leverage the big massive franchises that we also have. So by working both these axis, we can optimize our capital allocation for UA that we are really, I would say, world-class in already but also in capital allocation for product development so we do that even more cleverly in the future. We should continue with a strict payback for user acquisition, but we are increasing the ROI requirements on product -- capital allocation for product development. Of course, we will continue to invest in the Stillops platform. Amy described what diligent work -- we have a very detailed work in identifying the road map, the elements down to various clear elements that needs to be improved, refined over and over again to suit our 1,500-or-some people out there to make our company even better. Again, the financial targets should better reflect now the value creation that we are making every day, working very hard and with a big smile every single day. So thank you all for participating. Thank you all speakers. Thank you, Alexis, for navigating, as always, elegantly through the day like this. Thank you for the people making the practical arrangements, many of you, but thank you all great awesome people in our studios making our journey possible and even more exciting the next coming years. See you around. Thank you very much.