Stillfront Group — Board/Management Information 2024

Sep 10, 2024

()) Stillfront

Press Release 10 September 2024 08:00:00 CEST

Stillfront to divide operations into three business areas, concentrates its game portfolio and estimating 200-250 MSEK in cost savings

Stillfront's operations will be divided into three business areas and removes one layer in the group management structure to enhance growth, profitability and transparency. At the same time, Stillfront is increasing its focus on key franchises and addressing low performing games, which is a key lever to improve organic growth while also reducing costs. These optimization activities are estimated to be fully implemented by the fourth quarter of 2025 and are expected to then generate annual cost savings of 200 to 250 MSEK compared to annualized costs in the second quarter of 2024.

Main actions and objectives of the optimization activities include:

• · Division, as from January 1, 2025, of Stillfront's operations into three business areas: Europe, North America and MENA/APAC. The three business areas will be operated and reported as separate segments in Stillfront's financial reporting.
• Streamlining the organizational structure by removing a central management layer and thereby reducing the number of positions in Stillfront's group management from eleven to seven.
• · Optimization and concentration of the game portfolio by addressing smaller and low performing games to increase focus on Stillfront's key franchises.
• · Activities to coordinate and refine Stillfront's shared services, such as marketing and payments, have been launched to create more synergies and efficiency gains in the core business.
• · Optimization activities that are expected to generate annual cost savings by the fourth quarter of 2025 of 200 to 250 MSEK compared to annualized costs in the second quarter of 2024.

"With the optimization activities that we are unveiling today, Stillfront is making substantial strides towards reaching our financial targets. These activities will empower our talented teams across Stillfront to focus more intently on Stillfront's core business. With the new operating model, we will continue to focus on improvements and efficiencies also beyond 2025," says Jörgen Larsson, President & Group CEO, Stillfront.

Background and rationale

At the Capital Markets Day on February 15, 2023, Stillfront presented the fourth phase of its journey: the synergy phase. Stillfront's main goal with the synergy phase is to strengthen synergies in the group and relieve its game teams from administrative workload, enabling them to focus on Stillfront's core business: game design and development, live ops and customer service. With the implementation of a new organizational and governance model, Stillfront is accelerating the execution of this phase.

While the objectiþes of the sānergā phase remain the same, Stillfront has determined that the current organizational structure does not create optimal conditions for future þalue creation. The neÿ structure is eĀpected to enable the group to steer and accelerate its business more effectiþelā. The core business is Stillfront's top prioritā, and coordinated, simplified and strengthened shared serþices ÿill cater to the business more effectiþelā. The changes are also eĀpected to increase accountabilitā ÿithin the organization, ÿhile also reducing costs.

The optimization actiþities are estimated to be fullā implemented bā the fourth quarter of 2025 and are eĀpected to then generate annual cost saþings of 200 to 250 MSEK compared to annualized costs in the second quarter of 2024. The cost saþings are estimated to consist of, and be eþenlā distributed betÿeen, direct and fiĀed costs.

Management and organization

Effectiþe Januarā 1, 2025, Stillfront's operations ÿill be diþided into three business areas: Europe, North America, and MENA/APAC, that ÿill be operated and reported as separate segments in Stillfront's financial reporting in accordance ÿith IFRS 8. Each business area ÿill be led bā an EĀecutiþe Vice President (EVP) and the EVPs ÿill be responsible for the performance of their respectiþe business area and report directlā to the CEO.

The neÿ group eĀecutiþe management team ÿill, effectiþe todaā, consist of the folloÿing indiþiduals:

• Jörgen Larsson President & Group CEO.
• Andreas Uddman, currentlā EĀecutiþe Vice President Group CFO, has been appointed neÿ President Finance & Global Functions – Group CFO. The neÿ function ÿill focus on offloading non-core business tasks from business areas to increase efficiencā.
• AleĀis Bonte, currentlā EĀecutiþe Vice President Chief Operating Officer, has been appointed President Publishing and Business Acceleration. The neÿ function ÿill focus on accelerating the core business to increase commercial effectiþeness and sānergies across all business areas, and driþe organic groÿth.
• Philip Knust EĀecutiþe Vice President Chief Product Officer.
• Armin Busen, currentlā Senior Vice President Business Operations, has been appointed EĀecutiþe Vice President Business Area Europe (as of 1 Januarā 2025).
• AleĀandre Salem, currentlā Senior Vice President Operations & Platform, has been appointed EĀecutiþe Vice President Business Area MENA/APAC (as of 1 Januarā 2025).
• EĀecutiþe Vice President Business Area North America (as of 1 Januarā 2025) Recruitment process ÿith eĀternal candidates is ongoing.

Further information

Further information on the progress of the actiþities ÿill be proþided in the interim report for the third quarter of 2024, to be published on October 23, 2024.

Stillfront intends to giþe an in-depth presentation on the progress of the actiþities during a Capital Markets Daā planned to be held shortlā after the publication of its āear-end report for 2024, to be published on Februarā 5, 2025. The eĀact date, time and place for the Capital Markets Daā ÿill be announced ahead of the announcement of Stillfront's interim report for the third quarter of 2024.

Jörgen Larsson, CEO, Stillfront Group Phone: +46 70 321 18 00 E-mail: jorgen@stillfront.com

About Stillfront

Stillfront is a global games companā. We deþelop digital games that are plaāed bā almost 50 million people each month. Our diþersified portfolio spans ÿell-established franchises like Big Farm, Jaÿaker and Supremacā, to smaller, niche games across our different genres. We belieþe gaming can be a force for good and ÿe ÿant to create a gaming uniþerse that is digital, affordable, equal, and sustainable. Our HQ is in Stockholm, Sÿeden, but our game deþelopment is done bā teams and studios all oþer the ÿorld. Our main markets are the US, Japan, MENA, Germanā, and the UK. Stillfront's shares (SF) are listed on Nasdaq Stockholm. For further information, please þisit: stillfront.com

This information is information that Stillfront Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-09-10 08:00 CEST.

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Stillfront to diþide operations into three business areas, concentrates its game portfolio and estimating 200–250 MSEK in cost saþings