Thunderful Group (THUNDR) Investor Update summary

Strategic restructuring overview

• Initiated a restructuring program to focus on third-party game publishing and reduce internal development investments, aiming for greater flexibility and faster game releases.

• Workforce reductions will impact 80-100 employees, including development, management, and administration roles both in and outside Sweden.

• The program will result in annual cost savings and improved cash flow of 80-90 MSEK, with increased investments in publishing rights of 30–40 MSEK per year.

• One-time costs of 25-30 MSEK will be incurred in Q4, and write-downs of capitalized game development, goodwill, and game rights will total 220-240 MSEK.

• The Co-development and Services segment remains unaffected by these changes.

Rationale and expected impact

• The shift follows earlier cost-saving measures and the divestment of the distribution business, as revenue targets were not met and negative cash flow persisted.

• Emphasizing third-party publishing is expected to reduce fixed costs and enhance cash flow control.

• Most cost savings are expected to take effect starting Q1 2025.

• The restructuring is intended to ensure long-term sustainability and resilience.

Communication and next steps

• The restructuring program is being implemented immediately.

• A webcast will be held on 14 November 2024 at 15:00 CET to discuss the program and answer questions.