ATARI October 2015 7- 8th, 2015

ATARI October 2015 7- 8th, 2015
Summary
1. Atari today
2. Market / Products /
Opportunities
3. Organization
4. Finances
October 2015
2
Atari Today
1. Atari Today
October 2015
3
Atari at a Glance
Atari is a Globally
Recognized, Iconic
Brand
October 2015
With an
Unparalleled,
Rich Library Of
Popular Games
4
Iconic Brands
More than $2 Billion of Historical Revenue
$456
$391
Million
Million
$154
$525
$265
Million
Million
Million
$85
$92
Million
Million
October 2015
5
2013-2015: Turnaround
2006
A London-based hedge fund (BlueBay) started building a
position in the Atari group. They ultimately ended up owning
30% of the Company, while also being the largest lender.
2012
Atari ran into significant financial difficulties.
2013
Early 2013, the
US subsidiaries
filed for
bankruptcy
protection
(Chapter 11).
 A few days later,
BlueBay sold their stake
to Frédéric Chesnais and
Alden.


2014
Mr. Chesnais and
Alden managed the
exit of Chapter 11.
Chesnais is the former DeputyCOO and CFO of the Atari
Group, and was the CEO of Atari
Interactive. He left Atari in 2007.
Alden Capital is a New Yorkbased investment fund.
Relaunch of game production, and completion of the
financial restructuring of the Atari Group.
October 2015
6
Atari Today
Atari is a company implementing a turnaround phase; the company owns
iconic brands in the videogame industry and can capitalize on new
opportunities outside of the gaming market.
Simplified organization
Turnaround, improved
(external studios,
financial structure
digital distribution…)
Cap table simplified,
with only ordinary
shares
October 2015
Opportunities outside
of the videogame
industry: casinos,
drones, tv, licensing…
7
A Simple and Efficient Structure
Atari SA
French-listed entity
Atari Europe
Atari US
100%-owned subsidiaries
The production team
is based in New York
City, with 3rd-party
studios in the US and
in Europe.
October 2015
Products are sold
digitally, on a
worldwide basis.
Atari no longer
manufactures and
distributes boxes
(partnership with
industrial
partners).
8
Turnaround Achieved
(€ million)
2012-2013
2013-2014
2014-2015
Revenue
1,2
3,3
7,6
Current operating income
0,6
0,9
0,2
Operating income
(2,0)
1,3
1,5
Net income (loss)
(35,8)
(2,5)
1,2
Shareholders' equity
(34,9)
(31,3)
(13,1)
Net financial debt
(31,4)
(24,8)
(11,0)
March 2013 -> March 2015 :
From 1,2 M€
revenue to 7,6 M€
October 2015
From a net loss
of -35,8 M€ to a
net profit of 1,2
M€
From a net
debt of -31,4
M€ to -11,0
M€
Equity from
-34,9 M€ to
-13,1 M€
9
Cap Table Simplified, Only Ordinary Shares
September 30th, 2015
shares
% ownership
Ker Ventures, LLC
41 021 916
22,4%
Alden Capital
11 599 000
6,3%
Alex Zyngier
12 013 615
6,6%
Public
98 729 470
53,9%
Treasury shares
19 821 573
10,8%
183 185 574
100%
TOTAL
F Chesnais CEO & Director
Director
Double voting rights: 249 607 (no impact)
Dilution
October 2015
Océane 2020 :
3 384 732
Stock options :
5 481 472
(€0,35 per océane)
(€0,20 per share)
10
Atari
2 - Market / Products/ Opportunities
October 2015
11
Evolution of the Videogame Market
Atari has evolved as the gaming market has
shifted to digital and mobile platforms
Mobile Gaming /
Online Gaming
Continued social evolution
Mobile gaming expansion: iOS,
Android
Casual Mid-core and Core
players
Digital Transaction &
Community Management
Rise of:
Free-to-play / Freemium /
Paymium
Item selling (add-on)
Subscription
Social Gaming
Socialization of casual gaming
Social Networks explosion
Continued casual
game growth
Casual Gaming
PC & Console Gaming
Mostly Hardcore Gamers
Hardware Equipment
Packaged Goods
MMO
October 2015
Impulse by Wii Launch
Handheld consoles: PSP/DS
Beginning of mobile gaming
(Java & Brew)
Retail / Digital Transaction
Beginning of digitalization
of transactions (mobile)
Beginning of Free-to-Play
Freemium
Item selling
Ad supported
In-game Advertising
12
Game Strategy
Adaptation to the
Selectives licences
digital model
(hardware, Casino,…).
Relaunch of the classical
franchises :
Roller Coaster Tycoon ;
Asteroids ;
Simulation games;
Etc.
October 2015
13
Intellectual Property Portfolio
3D Asteroids
3D Tic-Tac-Toe
A Game of Concentration
Act of War: Direct Action
Act of War: High Treason
Adventure
Adventure II
Agent X
Airborne Ranger
Air-Sea Battle
Akka Arrh
Alien Brigade
Alone In the Dark
Alpha 1
Anti-Aircraft
Aquaventure
Asteroids
Atari Classics: Evolved
Atari Greatest Hits
October 2015
Atari Greatest Hits: Vol. 1
Atari Greatest Hits: Vol. 2
Backgammon
Barroom Baseball
Black Belt
Breakout
Canyon Bomber
Centipede
Circus Atari
Combat
Countermeasure
Crystal Castles
Dark Chambers
Fatal Run
Food Fight
Gravitar
Haunted House
Lunar Battle
Lunar Lander
Major Havoc
Meebzork
Millipede
Mind Maze
Minimum
Missile Command
Night Driver
Ninja Golf
Pong
RollerCoaster Tycoon
Franchise
Solaris
Super Breakout
Swordquest: Earthworld
Swordquest: Fireworld
Swordquest: Waterworld
Test Drive Unlimited Series
Warlords
Yar's Return
Yar's Revenge
14
And More…
3D Asteroids
3D Tic-Tac-Toe
A Game of
Concentration
Act of War: Direct Action
Act of War: High
Treason
Adventure
Adventure II
Agent X *
Airborne Ranger
Air-Sea Battle
Akka Arrh *
Alien Brigade
Alone In the Dark
Alpha 1 *
Anti-Aircraft *
Aquaventure
Asteroids
Asteroids Deluxe *
Asteroids On-line - Atari
GO version
Asteroids: Gunner
Asteroids: Gunner+
Atari 80 Classic Games
in One!
Atari Anniversary
Advance
Atari Anniversary Edition
Atari Anthology
Atari Arcade Hits:
Volume 1
Atari Arcade Hits:
Volume 2
Atari Baseball *
Atari Basketball *
Atari Casino
Atari Classics: Evolved
Atari Football *
Atari Greatest Hits
Atari Greatest Hits:
Volume 1
Atari Greatest Hits:
Volume 2
Atari Mini Golf *
Atari Outlaw
Atari Revival
Atari Soccer *
Atari Video Cube
Aquaventure
Avalanche *
Backgammon
Barroom Baseball
Basic Programming
Basketball
Basketbrawl
Bionic Breakthrough
Black Belt
Black Jack
Black Widow *
Boogie Demo
Booty,
Bowling
Boxing *
Brain Games
Breakout
Breakout *
Breakout Boost
Canyon Bomber
Casino
Castles and Catapults
Caverns of Mars
Centipede
Centipede: Infestation
Centipede: Origins
Championship Soccer
Circus Atari
Cloak & Dagger *
Cloud 9 *
Codebreaker
Combat
Cops 'N Robbers *
Countermeasure
Crash 'N Score *
Crystal Castles
Dark Chambers
Demons to Diamonds
Desert Falcon
Destroyer *
Doctor Pong "aka
Puppy Pong"
Dodge ’Em
Dominos *
Double Dunk
Drag Race *
Fast Freddie *
Fatal Run
Final Legacy
Fire Truck *
Firefox *
Flag Capture
October 2015
Flyball *
Food Fight (Charley
Chuck's)
Football
Frisky Tom
Frog Pond
Fun With Numbers
Gerry the Germ Goes
Body Poppin
Goal 4 *
Golf
Gotcha *
Gran Trak 10 *
Gran Trak 20 *
Gravitar
Hangman
Haunted House
HiWay *
Holey Moley
Home Run
Human Cannonball
Hunt & Score
I, Robot
Indy 4 *
Indy 500
Jet Fighter *
LeMans *
Liberator *
Lunar Battle *
Lunar Lander *
Major Havoc *
Maze Craze
Meebzork
Meltdown
Micro-gammon
Millipede
Mind Maze
Miniature Golf
Minimum
Missile Command
Missile Command 2 *
Missile Command 3D
Monstercise
Monte Carlo *
Moto Psycho
MotoRodeo
Night Driver
Ninja Golf
Off the Wall
Orbit *
Outlaw
Outlaw *
Peek-A-Boo
Pin Pong *
Planet Smashers
Pong *
Pong Doubles *
Pong Tournament
Pong World
Pong: The Next Level
Pool Shark *
Pursuit *
Quadra Pong *
Quadrun
Quantum *
Quiz Show *
Qwak! *
Radar Lock
Realsports Baseball
Realsports Basketball
Realsports Boxing
Realsports Football
Realsports Soccer
Realsports Tennis
Realsports Volleyball
Rebound *
Red Baron *
Retro Atari Classics
Return to Haunted House
Roadrunner
RollerCoaster Tycoon
Runaway *
Saboteur
Save Mary*
Space War
Space War 2000
Spike *
Spitfire
Sprint *
Sprint 4 *
Sprint 8 *
Sprintmaster
Star Raiders
Star Raiders II
Star Ship
Steeplechase
Steeplechase *
Stellar Track
Stock Car *
Street Racer
Stunt Cycle *
Submarine
Commander
Subs *
Super Asteroids &
Missile Command
Super Baseball
Super Breakout
Super Bunny Breakout
Super Football
Superbug *
Surround
Swordquest:
Earthworld
Swordquest: Fireworld
Swordquest:
Waterworld
Tank *
Tank II *
Tank III *
Telepathy
Tempest
Tempest 2000
Tempest: Menace of
the Arcade Dwellers Online version
Test Drive Series
Tournament Table *
Triple Hunt *
Tubes *
Typo Attack
Ultra Tank *
Video Checkers
Video Chess
Video Olympics
Video Pinball *
Warlords
Wizard
Wolf Pack *
Xari Arena
Yar's Return
Yar's Revenge
Zulu
15
RollerCoaster Tycoon Franchise
RollerCoaster Tycoon
Popular management simulation franchise
that allows players to construct the theme
park of their wildest dreams
The franchise
has generated
over $220
million in
North America
sales
The franchise popularity
extends to Europe and
has a strong presence in
the UK and Germany,
with more than 4.6 million
units sold in Europe
Sales with over
14.4 million units
sold worldwide
RollerCoaster Tycoon 4
Mobile: 15 millions
download since April
2014
License extends through 2019
October 2015
17
RollerCoaster Tycoon
1999
2002
PC
Edited by
Hasbro
Interactive
6.7m sold units
2004
2014
PC
Edited by
Infogrames
Launched on PC
Edited by ATARI
3.7m sold units
4.0m sold units
PC
Aggregate
total
sales:
14.4m
Units 1
Launch of
mobile
version
Excellent feedback from
press
• GameSpot: 8.6/10
• IGN: 8.5/10
• Jeuxvideo.com: 15/20
• Global: 87%
Multi-revenue
streams
October 2015
RCT licensed until 2019
Source: Vgchartz, Internet ,
proprietary data
Next sequel: “Rollercoaster
Tycoon World” - release
scheduled for 2015
Note: (1)includes total sales, add-ons,
international sales and digital
18
Opportunities
Development opportunities outside
of the videogames market
 Casino online – real and virtual
money gambling, casinos in virtual
currency now available in 2015
 Transmédia opportunity ( Movies,
TV, etc…)
Other licensing opportunities:
hardware, drones, etc.
October 2015
19
The Atari Spirit
Time Magazine’s, “50 Best Websites 2012”
October 2015
“Pong! Atari Marks 40 Years of Gaming”
20
Atari
3. Organization
October 2015
21
Strong Management Team
Fred Chesnais - Chief Executive Officer, Member of the Board of
Directors
•
•
•
Largest shareholder of Atari, Chairman of the Board and CEO.
Deputy-COO and CFO of the Atari Group 2001-2004, CEO of Atari
Interactive until 2007
Brings recent experience with online MMOs;
Todd Shallbetter – Chief Operating Officer
• Key executive at Atari, managing multiple business lines including
digital distribution, rev share/royalty management; solid knowledge of
Atari’s global business
• Expertise in business development
Philippe Mularski – Chief Financial Officer
• Certified accountant and Auditor
• Joined Atari Group in 2014
October 2015
22
Organization
Atari is a content production company aiming at maximizing the value of its
brands and IP portfolio in the interactive entertainment industry.
Atari capitalizes on:
•
•
•
•
A huge IP’s portfolio
An efficient and
operational production
A good marketing digital
management
An experienced
Management team
October 2015
To maximize profits:
•
•
•
Fixed costs are at the lowest
levels and the production
management is externalized
Co-investment are favored
with studios or third party
Digital distribution is fully
implemented
23
Traditional Value Chain
Rights
 Integration of the key functions;
limited use of third party studio
 Great dependence on the
physical distribution
 Limited level of ancillary
revenue (digital, licenses,
merchandising,…)
Prod / Dev
Publishing
Distribution
October 2015
24
New Value Chain
 Intensification of
externalization


Team
Diversification
of the
distribution
channel and
sources of
income
IPs
€
Executive
Production
External Studios
Digital
Distribution
Others (TV Casino)
October 2015
Digital
Distribution
Licensing
Box distribution
25
Strong Digital Gaming Platform
Strong positioning
PC Download
Partners
Console Online
Partners
October 2015
Streaming
Partners
Mobile/Online/
Casino Partners
Promotional
Partners
26
Atari
4 – Finances
October 2015
27
Full Year Consolidated Statements as of March 31st, 2015
An increase of turnover (x)2 compared to the previous year
Profitable Company
(€ Million)
Net revenue
Gross Margin
% of the net revenue
Current operating income
% of the net revenue
Operating income
Profit (loss) from continuing operations
Net income (loss)
Net revenue : 7,6 M€
 An increase of turnover (x2) compared to the
previous year
 More than 15 million downloads of RollerCoaster
Tycoon for mobiles.
Current operating income : + 0,2 M€
 R&D expenses: - 5,2 M€ including 2,8 M€ fixed;
 Marketing costs: - 0,9 M€
 Control of overhead costs
October 2015
2014/2015
2013/2014
7,6
6,3
83,8%
0,2
2,3%
1,5
1,2
1,2
3,3
3,2
96,5%
0,9
27,7%
1,3
-2,5
-2,5
Operating income : +1,5 M€
 Restructuring costs: +0,4 M€
 Other non- recurring revenue: +1,0 M€
Net income : + 1,2 M€
 Cost of debt : - 1,4 M€
 Other financial income : +1,1 M€
28
Full Year Consolidated Statements as of March 31st, 2015
ASSETS (€ million)
March 31
2015
Intangible assets
Property, plant and equipment
Non-current financial assets
Non-current assets
Inventories
Trade receivables
Current tax assets
Other current assets
Cash and cash equivalents
Current assets
Total Assets
Development cost are
capitalized for 2,8 M€
October 2015
March 31
2014
2,8
-
0,2
3,0
0,2
0,2
-
0,7
0,6
0,9
3,7
5,9
8,9
•
•
•
•
0,4
0,2
1,4
5,8
7,8
8,0
RollerCoaster Tycoon World
Alone in the Dark : Illumination
Asteroïds
Pridefest
29
Full Year Consolidated Statements as of March 31st, 2015
Equity & liabilities (€ million)
March 31
2015
Total equity
-13,0
Non-current financial liabilities
1,8
Other non-current liabilities
0,1
Non-current liabilities
1,9
Provisions for current contingencies and losses
1,2
Current financial liabilities
12,8
Trade payables
4,6
Current tax liabilities
0,3
Other current liabilities
1,1
Current liabilities
19,9
Total equity and liabilities
8,9
Equity improved
from -31,3 M€ in
2014 to -13,0 M€
October 2015
March 31
2014
-31,3
30,5
0,6
31,1
1,6
0,0
4,4
0,1
2,1
8,2
8,0
Financial debt
decreased from -30,5
M€ in 2014 to -14,6 M€
30
Full Year Consolidated Statements as of March 31st, 2015
Net financial debt
(€ million)
March 31
2015
March 31
2014
Non current financial debt
Current financial debt
Gross financial debt
1,8
12,8
14,6
30,5
0,0
30,5
Cash and cash equivalents
Net financial debt
3,7
11,0
5,8
24,7
Net debt significantly reduced from 24,7 M€ to 11,0 M€
Net financial debt
decreased from -24,7 M€
as of march 31st, 2014
to -11,0 M€ as of March
31st, 2015.
October 2015
Alden’s loan
represents12,1M€ of the
gross debt with 10,6 M€
in principal and 1,5 M€ of
interest.
Pending litigation
against Alden (cf.
annual report)
31
Quarterly Revenue
(€ million)
2014-2015
Q1
USD
2,2
EUR
1,6
Q2
2,5
1,9
Q3
2,9
2,3
Q4
2,0
1,8
Total
9,6
7,6
Fiscal year from
April 1st to March
31st
2015-2016
USD
3,1
EUR
2,8




Evolution
% USD
42%
% EUR
76%
Q1: from April 1st, to June 30th
Q2: from July 1st, to September 30th
Q3: from October 1st to December 31st
Q4: from January 1st to March 31st
Atari
Thank you for your attention
www.atari.com
October 2015
33