Starbreeze StudiosStarbreeze Studios

A stock listed A stock listed games developergames developerg pg p

Johan Kristiansson, CEOJohan Kristiansson, CEO

8 Sept 20098 Sept 2009

AgendaAgendagg

Videogame Videogame industryindustry introductionintroductiongg yy

Starbreeze Starbreeze introductionintroduction

BeingBeing a stock a stock listedlisted companycompany

The videogame The videogame industryindustry has a 51 BUSD has a 51 BUSD turnoverturnover (S/W (S/W onlyonly))and a 7% and a 7% expectedexpected growthgrowth raterate

Global industry revenues in 2008 and expected CAGR 2009-13

0 %

1 %1 %

4 %

-1 %

7 %

(BUSD)

-3 %

7 %

Source: PwC, Global entertainment and media outlook 2009-2013

(BUSD)

The key The key plaformsplaforms of the of the currentcurrent generationgeneration

Starbreeze works with 360, PS3 and PCStarbreeze works with 360, PS3 and PC

The videogame The videogame industryindustry valuechainvaluechain

Sub-contractors Developers Publishers Distributors/

Retailers Consumers

Motion capture studios

Independents, e.g.:

Epic

EA

Activision

Boxed sales

Download sales

USA: ~30%

Europe: ~30%3D-modeling studios

Writers

p

Valve

Crytek

Take Two/2K

Ubisoft

p

Asia: ~30%

Actors

etc.

Starbreeze

Publisher owned, e.g.:

THQ

Sony

DICE/EA IO/Eidos Massive/Ubisoft

Microsoft

The value chain for boxed products is currentlyThe value chain for boxed products is currentlyThe value chain for boxed products is currently The value chain for boxed products is currently going through a shakegoing through a shake--out, where players below out, where players below the topthe top--tier are being erasedtier are being erased

DevelopersDevelopers get a get a fixedfixed feefee for a for a projectproject, with , with additionaladditionalsalessales royaltiesroyalties ifif the game is the game is successfulsuccessful

Revenue(MUSD)

(Illustrative graph, not based (Illustrative graph, not based on actual contract)on actual contract)

20(MUSD) on actual contract)on actual contract)

Developer revenue

10

0,5 1,0 1,5 Units sold (millions)

AgendaAgendagg

Videogame Videogame industryindustry introductionintroductiongg yy

Starbreeze Starbreeze introductionintroduction

BeingBeing a stock a stock listedlisted companycompany

RiddickRiddick and and DarknessDarkness are are ourour latestlatest releasesreleasesRiddick – Dark Athena, for 360, PS3, PC The Darkness, for 360, PS3

• Released in April 2009

•• 82% 82% averageaverage reviewreview scorescore

• Released in June 2007

•• 82% 82% averageaverage reviewreview scorescoregg

•• ””RequelRequel” to ” to RiddickRiddick 1 from 20041 from 2004 •• SalesSales exceedingexceeding 1 million 1 million unitsunits

TitlesTitles in in productionproduction

Jason Bourne gameJason Bourne game Publisher: Electronic ArtsPublisher: Electronic Arts Contract signed in end of 2008Contract signed in end of 2008

”P j R dLi ””P j R dLi ” ”Project RedLime””Project RedLime” Publisher: Electronic ArtsPublisher: Electronic Arts Signed end of 2007Signed end of 2007

Starbreeze Starbreeze staffstaff countcount, , sincesince JanuaryJanuary 20042004

100~105 in June 2009 ~105 in June 2009

40

60

80

~25 in June 2004~25 in June 2004

0

20

40

0

Q3

Q4

005 Q

1

Q2

Q3

Q4

006 Q

1

Q2

Q3

Q4

007 Q

1

Q2

Q3

Q4

008 Q

1

Q2

Q3

Q4

009 Q

1

Q2

Q3

Q4

2004/2

0

2005/2

0

2006/2

0

2007/2

0

2008/2

0

( S )( S )

Revenues and Revenues and earningsearnings per per quarterquarter, , sincesince JanuaryJanuary 20042004

20

25

R (R ( kk))

(MSEK)(MSEK)

15

20 Revenues (Revenues (msekmsek))

5

10

EBT (EBT (msekmsek))

-5

0

Q3

Q4

05 Q

1

Q2

Q3

Q4

06 Q

1

Q2

Q3

Q4

07 Q

1

Q2

Q3

Q4

08 Q

1

Q2

Q3

Q4

09 Q

1

Q2

Q3

Q4

(( ))

-10

5

2004

/20

2005

/20

2006

/20

2007

/20

2008

/20

Starbreeze share price since Jan 2005Starbreeze share price since Jan 2005

0,6

0,3

0,45

0,15

Starbreeze share price

OMX30 Index

0

Market Cap: 112 MSEK at 0 30 SEK per shareMarket Cap: 112 MSEK at 0 30 SEK per shareMarket Cap: 112 MSEK at 0,30 SEK per shareMarket Cap: 112 MSEK at 0,30 SEK per share

~5500 owners. Largest owner is Peter Törnquist with 5,3% of shares~5500 owners. Largest owner is Peter Törnquist with 5,3% of shares

Starbreeze Starbreeze futurefuture plansplans

•• SuccessfullySuccessfully launchinglaunching BourneBourne and ”and ”RedLimeRedLime””yy gg

•• Ambition to Ambition to keepkeep buildingbuilding a a strongerstronger industryindustryposition,position, givinggiving usus higherhigher budgets andbudgets and betterbetterposition, position, givinggiving usus higherhigher budgets and budgets and betterbettercontractualcontractual termsterms

•• EarningEarning royaltiesroyalties!!EarningEarning royaltiesroyalties!!

AgendaAgendagg

Videogame Videogame industryindustry introductionintroductiongg yy

Starbreeze Starbreeze introductionintroduction

BeingBeing a stock a stock listedlisted companycompany

Discussion topics related to being stock listedDiscussion topics related to being stock listed

•• IR policy: openness to shareholders vs. confidentiality agreements withIR policy: openness to shareholders vs. confidentiality agreements withIR policy: openness to shareholders vs. confidentiality agreements with IR policy: openness to shareholders vs. confidentiality agreements with publisherspublishers

-- This is a tricky issue for SBZ. Our confidentiality agreements are This is a tricky issue for SBZ. Our confidentiality agreements are very strict.very strict.

•• Review horizon: long term vs. short termReview horizon: long term vs. short term-- Each production is 2Each production is 2--3 years, which is a long time for a small listed 3 years, which is a long time for a small listed

companycompany

•• Cash reserve policy: dividends vs. security Cash reserve policy: dividends vs. security -- There is always a high risk of cancelled productions, which creates a There is always a high risk of cancelled productions, which creates a

need for a substantial cash reserveneed for a substantial cash reserve

•• Choice of trading list: Aktietorget vs. First North vs. OMX SmallCapChoice of trading list: Aktietorget vs. First North vs. OMX SmallCap-- We are satified with Aktietorget for now, but other options are We are satified with Aktietorget for now, but other options are

evaluated for the futureevaluated for the future

•• Management attention: making games vs. admin&IRManagement attention: making games vs. admin&IR-- This is a difficult tradeThis is a difficult trade--off for a small listed company. Admin&IR can off for a small listed company. Admin&IR can

be expensive and consume too much time.be expensive and consume too much time.be expensive and consume too much time. be expensive and consume too much time.