Remedy Entertainment FY2024 Earnings Release

© REMEDY ENT ERT AINMENT 2025
Financial Statements
January – December 2024
FEBRUARY 12, 2025

© REMEDY ENTERTAINMENT 2025
AGENDA
1
Q4 2024 Review
2
Q4 and FY Financial Results
3
Outlook
4
Questions & Answers
Tero Virtala
CEO
Santtu Kallionpää
CFO

Q4 and Full Year 2024
Review
Tero Virtala, CEO

© REMEDY ENTERTAINMENT 2025
Q4 2024 HIGHLIGHTS
‒ Revenue increased by 13.1% to EUR 11.7 (10.3) million
‒ EBITDA increased to EUR – 0.6 ( – 3.9) million, 4.9% ( – 37.4%) of revenue
‒ Operating profit was EUR – 1.4 ( – 12.8) million, and the operating profit
margin was – 11.9% ( – 123.9%)
‒ Cash flow from operations was EUR – 1.2 (0.1) million
‒ In October, Remedy announced The Lake House expansion to Alan
Wake 2 and the physical edition became available
‒ In October, Remedy announced FBC: Firebreak, a three – player
cooperative multiplayer first – person shooter set in the mysterious
world of Control that will be self – published in 2025
‒ Alan Wake 2 sales exceeded two million units and the game
recouped its development fees and marketing investments

© REMEDY ENTERTAINMENT 2024
ALAN WAKE 2 SALES AND RECOUP
Sales exceeded 2M
units by the end of 2024
Recouped
the development fees
and marketing investments
Royalties
accrued towards
the end of the quarter

© REMEDY ENTERTAINMENT 2025
FULL YEAR 2024
HIGHLIGHTS
‒ Revenue increased by 49.3% to 50.7 million (33.9)
‒ EBITDA was 2.5 million ( – 17.0), 5.0% ( – 50.0%) of revenue
‒ Operating profit was – 4.3 million ( – 28.6), and
the operating profit margin was – 8.4% ( – 84.4%)
‒ Cash flow from operations was 12.3 million ( – 16.0)
‒ In February, Remedy acquired full rights to the Control
franchise from 505 Games
‒ In August, Remedy and Annapurna announced a
strategic partnership agreement
‒ In September, Remedy entered into a EUR 15 million
unsecured convertible loan agreement with Tencent
‒ In October, we announced FBC: Firebreak, which
will be self – published in 2025

© REMEDY ENTERTAINMENT 2025
ꟷ Greatly improved ways of working
ꟷ Major technology and tools progress
ꟷ Strengthened game teams
ꟷ Control rights acquired
ꟷ Annapurna Pictures partnership
ꟷ Convertible loan from Tencent
SIGNIFICANT DEVELOPMENTS IN 2024
Transition to self -publishing Clearly better development velocity
Steady release cadence for the next years

© REMEDY ENTERTAINMENT 2025
PUBLISHING
BY PARTNER
CO –
PUBLISHING
SELF –
PUBLISHING
DEVELOPMENTS IN 2024 ALLOWED US TO
TRANSITION TO SELF – PUBLISHING

© REMEDY ENTERTAINMENT 2025
WE SECURED A STRATEGIC PARNERSHIP AND
ADDITIONAL FINANCING

© REMEDY ENTERTAINMENT 2025
TRANSITION TO SELF – PUBLISHING ENABLES FINANCIAL
UPSIDE, BUT ALSO REQUIRES MORE FROM US
Self -publishing
Co -publishing
Own IP with publishing partner
Partner IP
INVESTMENT needs from Remedy SHARE OF SALES to Remedy
+
+ –
–
– –
+
++
+++
?
CONTROL 2

© REMEDY ENTERTAINMENT 2025
QUANTUM BREAK CONTROL ALAN WAKE 2 FBC: FIREBREAK
PR & media
Community
Influencers
Demoing
Events
Analytics
Marketing strategy
Branding
Trailers and marketing assets
Sales promotions
Monetization
Paid media advertising
Submission and release
User research
Business development
SELF – PUBLISHING CAPABILITIES HAVE BEEN BUILT
OVER TIME

© REMEDY ENTERTAINMENT 2025
Game and project
portfolio

© REMEDY ENTERTAINMENT 2025
GAMES LAUNCHED AND SELLING
WITH
Alan Wake
Remastered
Alan Wake 2
LAUNCHED LAUNCHED LAUNCHED
Control

© REMEDY ENTERTAINMENT 2025
CONTROL
Launched in 2019, over 4.5M units sold
600 000 units sold in 2024
We continue to support the game
LAUNCHED

© REMEDY ENTERTAINMENT 2025
ALAN WAKE 2
In October, we announced The Lake House
expansion and released a physical edition
Sold well during the 2024 holiday period
2M units sold and the game has recouped the
development fees and marketing investments
LAUNCHED
High – quality games have good
long – term sales potential

© REMEDY ENTERTAINMENT 2025
CURRENT PROJECT PORTFOLIO
New project Control 2 FBC:
Firebreak
WITH
Max Payne
1&2 remake
FULL
PRODUCTION
FULL
PRODUCTION
FULL
PRODUCTION

© REMEDY ENTERTAINMENT 2025
FBC: FIREBREAK
In October, the announcement of FBC:
Firebreak was very well received
In December, we carried out a closed
technical test with external players
The game will be self – published in 2025
IN FULL PRODUCTION

© REMEDY ENTERTAINMENT 2025
WE NOW HAVE THE ABILITY TO
‒ Create and launch excellent
games more regularly
‒ Expand our franchises to new
games and mediums
‒ Grow our audiences

DOUBLE THE 2024 REVENUE BY 2027
WITH CONTINUED GROWTH BEYOND THIS MILESTONE
EBITDA MARGIN OF 30% BY 2027
AND MAINTAIN THAT MINIMUM LEVEL
THROUGHOUT THE STRATEGY PERIOD
2025 STARTS AN ERA OF
SUSTAINABLE, PROFITABLE GROWTH

Q4 and Full Year
Financial Results
Santtu Kallionpää , CFO

© REMEDY ENTERTAINMENT 2025
Q4 2024: REVENUE GROWTH DRIVEN BY THE DEVELOPMENT
FEES RELATED TO MAX PAYNE 1&2 REMAKE AND CONTROL 2
12.6
7.6
10.2
1.1
2.7
1.5
Q4 2022 Q4 2023 Q4 2024
13.6
10.3
11.7
Royalties (EURm) Development Fees (EURm)

© REMEDY ENTERTAINMENT 2025
HISTORICAL BREAKDOWN OF REVENUE
6.4
7.9
6.7 7.6
9.0 9.4
17.0
10.2
2.7
1.8
1.5
0.5
Q1 2023
1.0
Q2 2023
1.1
Q3 2023 Q4 2023 Q1 2024
0.9
Q2 2024
0.8
Q3 2024 Q4 2024
6.9
8.9
7.8
10.3 10.8 10.3
17.9
11.7
+13%
Royalties (EURm)
Development Fees (EURm)

© REMEDY ENTERTAINMENT 2025
Q4 2024: PROFITABILITY IMPROVED DRIVEN BY HIGHER SALES
AND LOWER COST LEVEL
2.1
-12.8
-1.4
-140
-120
-100
-80
-60
-40
-20
0
20
40
-14
-12
-10
-8
-6
-4
-2
0
2
4
EURm %
Q4 2022 Q4 2023 Q4 2024
EBIT(EURm)
EBIT margin
2.8
-3.9 -0.6
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
-8
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
EURm %
Q4 2022 Q4 2023 Q4 2024
EBITDA (EURm)
EBITDA margin

© REMEDY ENTERTAINMENT 2025
FULL YEAR 2024: REVENUE HAS INCREASED FROM PREVIOUS YEARS
DRIVEN BY DEVELOPMENT FEES FROM MAX PAYNE 1 & 2 REMAKE
AND CONTROL 2
39.3
28.7
45.6
4.3
5.2
5.1
FY 2022 FY 2023 FY 2024
43.6
33.9
50.7
Royalties (EURm) Development Fees (EURm)

© REMEDY ENTERTAINMENT 2025
FULL YEAR 2024 OPERATING PROFIT IMPROVING CLEARLY FROM
THE COMPARISON PERIOD, BUT STILL NEGATIVE
-0.6 -28.6 -4.3
-90
-75
-60
-45
-30
-15
0
-30
-25
-20
-15
-10
-5
0
FY 2022 FY 2023 FY 2024
EBIT (EURm)
EBIT margin
1.9
-17.0
2.5
-100
-90
-80
-70
-60
-50
-40
-30
-20
-10
0
10
-30
-27
-24
-21
-18
-15
-12
-9
-6
-3
0
3
EURm %
FY 2022 FY 2023 FY 2024
EBITDA (EURm)
EBITDA margin
EURm %

© REMEDY ENTERTAINMENT 2025
Q4 2024: EXTERNAL DEVELOPMENT COST DECREASING, CAPITALIZED
DEVELOPMENT COST ON HIGHER LEVEL
-3.8
-4.7 -4.9
-5.7
-4.6
-5.0 -5.0
-4.5
-7.5 -7.6
-6.8
-7.6 -7.6
-8.1
-6.5
-8.0
1.0 1.3 1.4 1.1
2.0 2.2
1.7
2.0
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024
Ext Dev (EURm) unnetted
Personnel expenses (EURm) unnetted
Capitalized Dev Cost (EURm) unnetted

© REMEDY ENTERTAINMENT 2025
Q4 2024: ALAN WAKE 2 DEPRECIATIONS WERE STARTED
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024
-0.7 -0.7
-1.3
-8.9
-0.9 -0.8
-4.2
-0.8
Depreciations and impairments related to game projects
Other depreciations

© REMEDY ENTERTAINMENT 2025
Q4 2024: OPERATING CASH FLOW AFFECTED BY TIMING OF REVENUE
PAYMENTS
-3.9
-7.0
-5.1
0.1
6.0
0.9
6.6
-1.2
Q1
2023
Q2
2023
Q3
2023
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
Operating Cash Flow (EURm)

© REMEDY ENTERTAINMENT 2025
Q4 2024: CASH POSITION INCREASED FOLLOWING THE CONVERTIBLE
LOAN
39.8
28.9
21.7 20.1 17.0
22.4 21.2 21.0
9.9
10.1
10.0 10.3
10.4
10.0
20.1
Q1
2023
Q2
2023
Q3
2023
Q4
2023
Q1 2024
3.7
Q2 2024 Q3 2024 Q4 2024
49.7
39.0
31.7 30.4
27.4 26.1
31.2
41.1
Cash and Cash Equivalents (EURm)
Financial instruments (EURm)

© REMEDY ENTERTAINMENT 2025
HISTORICAL REVENUE AND PROFITABILITY PROFILE
4.7
10.5
20.1
41.1
44.7
50.2
-20
-15
-10
-5
0
5
10
15
20
25
30
35
40
45
50
55
0
10
20
30
40
50
60
45
55
65
5
-10
-85
-5
15
25
35
2020 2021 2022 2023 2015 2010 2011 2012 2013 2014
15.5
2016 2017 2018
33.9
43.6
2024
31.6
17.2
13.7
11.9
3.8
2019
% M€
16.4
Revenue (M€) EBITDA % EBIT %
FAS IFRS

© REMEDY ENTERTAINMENT 2025
DIVIDEND PROPOSAL
The Board of Directors proposes that
no dividend will be paid for the year 202 4.

Outlook
Tero Virtala, CEO

© REMEDY ENTERTAINMENT 2025
OUTLOOK FOR 2025
Remedy expects its revenue and operating
profit (EBIT) to increase from the previous year
and operating profit (EBIT) to be positive.

Contact:
ir@remedygames.com
investors.remedygames.com
RemedyGames