Financial · January 1, 2015

Company Description

Summary

Stillfront Group AB established this company description in December 2015 to facilitate its listing on Nasdaq First North, signaling its transition from a private conglomerate to a public entity. The group utilizes a "PLEX" strategy, managing a portfolio of near-autonomous subsidiaries that focus on long-lifecycle, cross-platform games. By leveraging shared game engines and intellectual property, the company aims to mitigate the high risks inherent in game development while capturing synergies across its diverse titles. The scope of operations is global, with primary markets in the United States, Germany, and Sweden, and a workforce distributed across nine subsidiaries. Financial performance in 2015 was characterized by significant growth, including a 63% increase in organic sales and an underlying EBITDA margin of 23.1%. This momentum was largely driven by the success of the war strategy title *Call of War* from Bytro Labs—which contributed 62% of group revenue—and the anticipation surrounding *Unravel*, a partnership project between Coldwood Interactive and Electronic Arts. To sustain this trajectory, the company raised SEK 75 million through a private placement to fund new game development and the acquisition of remaining stakes in its subsidiaries, targeting a net revenue of SEK 300 million by 2020. Despite strong growth, the business faces operational risks including a heavy reliance on a limited number of key titles and the challenge of navigating rapid technological shifts in mobile and social platforms. The global games market, projected to exceed $100 billion by 2017, presents opportunities in the "free-to-play" and "mid-core" segments but also introduces barriers such as rising user acquisition costs and complex multi-jurisdictional regulations. The group’s governance is centralized under a management team with significant equity stakes, though the concentrated ownership structure and the lower regulatory requirements of the First North market remain notable considerations for new investors.

From the report

Stillfront Group AB (publ) Stillfront Group AB (publ) Company Description Company Description December2015 Pareto Securities

Important information This company description (the “Company Description”) has been produced by Stillfront Group AB (“Stillfront” or the “Company”) as an information only document for the purpose of providing certain information in conjunction with a listing (the “Listing”) of the Company’s shares on Nasdaq First North. The “Group” refers to Stillfront Group and its subsidiaries. The distribution of this Company Description in certain jurisdictions is restricted by law. No action has been taken by the Company or any other person to permit a public offering in any jurisdiction. Persons into whose possession this Company Description may come are required to inform themselves about and to observe such restrictions. This Company Description may not be used for, or in connection with, any offer to, or solicitation by, anyone in any jurisdiction or under any circumstances in which such offer or solicitation is not authorised or is unlawful. This Company Description does not constitute an offer to sell or a solicitation of an offer to buy any shares in the Company. This document is not a prospectus and it has not been approved or reviewed by any governmental authority or stock exchange in any jurisdiction. The shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or under any of the relevant securities laws of any state or other jurisdiction of the United States of America. The shares may not be offered or sold in the United States, except pursuant to an exemption from the Securities Act or in a transaction not subject to the registration requirements of the Securities Act.

e relevant securities laws of any state or other jurisdiction of the United States of America. The shares may not be offered or sold in the United States, except pursuant to an exemption from the Securities Act or in a transaction not subject to the registration requirements of the Securities Act. In this Company Description, the terms “we”, “our” and “us” all refer to Stillfront Group. No representation or warranty, express or implied, is made by Pareto Securities AB (“Pareto”) as to the accuracy or completeness of any information contained in this Company Description. In making an investment decision, investors must rely on their own assessment of Stillfront. No person is or has been authorised to give any information or make any representation under this Company Description other than those contained in this Company Description and, if given or made, such information or representation must not be relied upon as having been authorised by the Company who does not accept any liability with respect to any such information or representation. Neither the delivery of this Company Description nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since the date hereof or that the information contained herein is correct as of any time subsequent to its date.

r the delivery of this Company Description nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since the date hereof or that the information contained herein is correct as of any time subsequent to its date. It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for Stillfront’s development and profitability and statements preceded by “expects”, ”estimates”, ”forecasts” or similar expressions, are forward-looking statements. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected for Stillfront. This Company Description is governed by Swedish law. The courts of Sweden have exclusive jurisdiction to settle any conflict or dispute arising out of or in connection with this Company Description. Investing in the Company involves a high degree of risk. For a discussion of certain of the risk factors that should be considered in connection with an investment in the company, please see the section “Risk Factors”.

lict or dispute arising out of or in connection with this Company Description. Investing in the Company involves a high degree of risk. For a discussion of certain of the risk factors that should be considered in connection with an investment in the company, please see the section “Risk Factors”. First North is an alternative marketplace operated by an exchange within the Nasdaq OMX group. Companies on First North are not subject to the same rules as companies on the regulated main market. Instead they are subject to a less extensive set of rules and regulations adjusted to small growth companies. The risk in investing in a company on First North may therefore be higher than investing in a company on the main market. All companies with shares traded on First North have a Certified Adviser who monitors that the rules are followed. The exchange approves the application for admission to trading.

Table of Contents Board of directors, management Risk factors 4 and auditors 62 Background and reasons 13 Corporate governance 67 Investment highlights 14 Share capital and ownership structure 69 Market overview 16 Articles of association 73 History 24 Legal considerations and Business overview 25 supplementary information 74 Use of proceeds and IPO rationale 49 Tax considerations in Sweden 83 Financial overview 50 Documents incorporated by reference 85 Definitions 86 Addresses 87 Summary of the listing Total number of shares: ISIN code: 5,006,583 shares SE0007704788 Preliminary first day of trading: Exchange: 8 December 2015 Nasdaq First North Ticker: SF Financial Calendar Annual report 2015: 25 February 2016 Annual General Meeting: 18 May 2016 Interim report January–March 2016: 18 May 2016 Interim report January–June 2016: 26 August 2016 Interim report January–September 2016: 9 November 2016 Annual report 2016: 23 February 2017

Pages: 87
Words: 41,032
Format: PDF
Type: Financial

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