Strategy

By leveraging the Group's operating cash flows in a responsible and well-considered manner, the Group can implement identified investments while maintaining a good financial stability.

In conjunction with the restructuring of the Thunderful and Bergsala corporate groups, the Group identified three strategic focus areas to which it intends to allocate cash flows from its distribution operations.

• Increased investments in the development and publication of games.
  For the Group, this means that the Games business segment, with its already strong portfolio of games, can develop – and accelerate the development of – more and larger games, all with the same philosophy as for the Group's previous games. Internally secured financing means, among other things, that the Group can employ more staff to maintain good growth and retain the same high quality despite the games increasing in both number and size.
  
  
• Investments that enable use of intellectual property rights and brands to a greater extent than before to create and develop experiences in new mediums and for new platforms.
  This could entail, for example, creating board games based on proprietary games, partnering with a gaming accessory developer or licensing intellectual property rights to a TV series developed and produced by a third party.
  
  
• Acquisitions of complementary businesses and intellectual property rights.
  For some time, the global gaming industry has been marked by extensive consolidation, and this has created opportunities for financially strong players to strengthen their portfolios of intellectual property rights while also promoting organic growth. Thunderful Group intends to continue to grow organically by means of investments in game development and the acquisition of, primarily, independent game developers with strong intellectual property rights and proven track records in organic growth. The Group has previous experience of acquisitions and integration, such as in the case of the game developers Guru Games, which was acquired in December 2019 and Coatsink that was acquired in October 2020.
  
  
• Maintain and develop IP-centric operations
  Thunderful Group's business strategy is characterised by a focus on intellectual property rights. Together, the Group's subsidiaries have access to a broad portfolio of both internally and externally owned intellectual property rights and brands. The Group takes a holistic approach to its brands in all activities and processes. At the same time, the Group constantly strives to retain and develop its own intellectual property rights in order to identify new distribution channels to reach existing and potential consumers. For the Group, this means, among other things, proactively managing close relationships with platform owners to ensure a presence in their channels and on their platforms. Good relationships with platform owners can also result in deepened commercial relationships, for example through investments in Thunderful Group's game development projects to ensure an influx of new content to their platforms. 
  
  
• High-quality performance in all core segments
  One important component of Thunderful Group's business strategy is to maintain and continue to develop the Group's staff and in-house expertise alongside its collaborations and partnerships. In order to retain the Group's competitive strength in game development, game publishing and distribution, it is important that all Thunderful Group subsidiaries carefully manage the Group's assets, which can include, for example, porting a game to a new platform or developing new content or sequels within the same game series. Another fundamental component of Thunderful Group's business strategy is to retain and develop the Group's partnerships and important contractual relationships to maximise the growth of the subsidiaries, to obtain new brands and to enable access to marketplaces and consumers as well as cost-effective processes and solutions. Furthermore, Thunderful Group's business strategy depends on the Group's ability to retain existing and establish new channels for selling and distributing its entertainment products. Among other things, the Group is largely concentrating on diversifying the channels used by its distribution operations with a focus on digital marketplaces. In order for Thunderful Group to be able to implement all strategic initiatives, the Group needs to retain and develop the organisation while still promoting the Group's strong entrepreneurial culture.