Slide 1: Q3 FY 2024/25 Embracer Group Interim Report
Q3 FY 2024/25 EMBRACER GROUP INTERIM REPORT OCTOBER – DECEMBER 2024
Slide 2: Disclaimer
Q3 FY 2024/25 Disclaimer IMPORTANT INFORMATION – PLEASE READ THE FOLLOWING BEFORE CONTINUING READING express or implied, is made by the Company or any of its affiliates, directors, advisors, employees and representatives as to the accuracy, completeness or verification of any information contained i
Slide 3: Q3 FY 2024/25 Highlights
HIGHLIGHTS FROM Q3 Q3 Interim Report FY 2024/25 Q3 FY 2024/25 Highlights ORGANIC GROWTH Healthy organic growth, as well as an Net Sales Group +7% improved margin in PC/Console in Q3 SEK 7,364m YOY GROWTH -3% Kingdom Come: Deliverance II successfully released after the quarter Adjusted EBIT YOY GROWT
Slide 4: Operating segments
1. Operating segments
Slide 5: Kingdom Come: Deliverance
Kingdom Come Deliverance
Slide 6: Kingdom Come: Deliverance II reviews and launch results
“ONE OF THE GREATEST "THE NEW KING OF "ONE OF THE MOST REALISTIC VIDEO GAMES I’VE EVER PLAYED" OPEN-WORLD RPGS" TITLES IN THE GENRE" GAMEHYPE GAMESTAR 3D JUEGOS "A MASTERCLASS IN IMMERSIVE "A TRIUMPHANT SEQUEL" QUEST DESIGN AND EXPLORATION" GAME SPOT THE ESCAPIST yo qo 9/10 90/100 a GAMESTAR 256K 88
Slide 7: First week player stats
(+ FIRST WEEK PLAYER STATS + ) 35M pr Hea on | HOURS PLAYED & 5. Suours DAILY PLAYTIME @& 63M __ 63M TOTAL KILLS “SS 10M GAMES OF FARKLE PLAYED &, 1.5m SPENT DRUNK vw 8.8mM BLACK-SMITHED , 4 600k KILLED
Slide 8: Roadmap and DLC plans
‘25 Spring ™/ Pe Yost Lanne Roadmap+ ’ Summer Autumn Winter + + + Free Updates SrusheswithDeath | Legacy of the Forge ¢ Barber feature « Hardcore mode ¢ Horse racing fb Sa: 2) | (Se Mysteria Ceelesiae INCLUDED IN EXPANSION PASS DLC AND RELEASE WINDOWS SUBJECT TO CHANGE
Slide 9: PC/Console Games
PC/Console Games NET SALES REVENUE SPLIT SEK million & ADJUSTED EBIT MARGIN BACK CATALOG SALES | SEK million TOP 10 BACK CATALOG 4,500 60% 2,500 4,000 NET SALES 2,000 50% 3,500 2,603 3,000 40% 1,500 2,500 30% 2,000 1,000 1,500 21% 20% 1,000 16% 14% ADJ. EBIT 500 500 551 10% 0 0% 0 Q3 Q4 Q1 Q2 Q3 Q4
Slide 10: Project ROI (Contribution / Investment)
PC/Console Games PROJECT ROI (CONTRIBUTION/INVESTMENT) DETAILS 16 > 50 Average title project data: Sales SEK 278 million, • Based on reported numbers until Contribution SEK 195 million and December 31, 2024 14 Investment SEK 94 million • Sample includes projects with sales SEK 25.9 bn and/or investm
Slide 11: Investments and completed game development
PC/Console Games Investments and completed game development INVESTMENTS AND COMPLETED GAME DEVELOPMENT* | SEK million 1,800 4.0x 1,600 1,693 3.5x 3.3x 1,400 3.2x 1,492 3.0x 2.8x 1,200 2.5x 1,000 2.1x 1.9x 1.9x 2.0x 800 1.8x 780 788 1.5x 1.4x 1.5x 600 531 556 1.0x 400 200 0.5x 0 0.0x Q3 Q4 Q1 Q2 Q3 Q
Slide 12: Imminent releases in Q4
PC/Console Games Imminent releases in Q4 Source: as of December 31, 2024 | Release slates can be subject to change, and will in this case be communicated through their respective publisher 12
Slide 13: Mobile Games
Mobile Games NET SALES SEK million & ADJUSTED EBIT MARGIN DAILY ACTIVE USERS & MONTHLY ACTIVE USERS NET SALES DRIVERS 1,800 100% 350 million 100 1,600 1,669 90% 90 1,642 300 1,400 1,573 80% 80 250 283 1,200 70% 70 Sudoku.com Bus Frenzy Blockudoku 1,000 60% 200 236 60 50% 210 50 800 ADJ. EBIT 150 37%
Slide 14: Entertainment & Services
Entertainment & Services NET SALES SEK million & ADJUSTED EBIT MARGIN 3,500 3,000 3,093 21% 2,500 2,604 16% 2,000 2,328 12% 11% 1,500 9% 8% ADJ. EBIT 6% 1,000 284 500 1% ATH 0 -4% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 22/23 FY 23/24 FY 24/25 Net Sales Adjusted EBIT Margin, % Adjusted EBIT © 2024 New Line Ci
Slide 15: Financial performance
2. Financial performance
Slide 16: Financial development
FINANCIAL PERFORMANCE Financial development NET SALES & GROSS MARGIN DEVELOPMENT | SEK million DEVELOPMENT OF MARKETING EXPENSES | SEK million 8,000 150% 1,200 50% 7,000 7,476 7,625 7,364 45% 130 % 1,000 6,000 214 40% 249 110% 800 35% 5,000 179 90% 30% 4,000 67% 600 64% 70% 60% 25% 3,000 50% 20% 400
Slide 17: Cash flow and net debt
FINANCIAL PERFORMANCE Cash flow and net debt FY24/25 FY23/24 FY 24/25 FY 23/24 Dec. 31, Dec. 31, SEKm SEKm Q3 Q3 Q3 TTM Q3 TTM 2024 2023 Adjusted EBITDA 2,001 2,346 6,808 8,520 Cash 3,258 3,683 Cash Tax -210 -158 -709 -616 Current investments - 0 Other items -369 -321 -947 -892 Current liabilities t
Slide 18: Net Cash and earnout
FINANCIAL PERFORMANCE Net Cash and earnout Net Cash bridge Earnout obligation (cash – pro forma) Net Cash bridge SEK, billion SEK, billion Reported Net debt 31/12-2024 -3.2 “Coffee Stain & Friends2” 0.9 Estimated effect from divestment of Easybrain 12.8 “Middle-earth & Friends2” 1.4 Equity investmen
Slide 19: Comments on Q4
FINANCIAL PERFORMANCE Comments on Q4 ADJUSTED EBIT - Q4 FY 2023/24 PROFORMA AND FY 2024/25 COMMENTS Q4 FY 2023/24 Impact of divestments Q4 FY 2023/24 Segment Comments on Q4 FY 2024/25 Reported and spin-off Pro forma Higher Adjusted EBIT YoY – driven by Kingdom Come: PC/Console 514 +59 572 Deliveranc
Slide 20: Comments on FY 2025/26 and beyond
FINANCIAL PERFORMANCE Comments on FY 2025/26 and beyond For the coming three financial years, we currently have 10 AAA PC/Console games in active development whereof 2 currently are scheduled to be released in the end of next FY 2025/26 In addition, we have a slate of exciting mid-sized releases
Slide 21: Closing remarks
EMBRACER TODAY Closing remarks 75 OVER 450 118 INTERNAL STUDIOS OWNED AND CONTROLLED IPs GAME DEVELOPMENT PROJECTS OVER OVER 7,500 WHEREOF 5,000 PEOPLE ENGAGED DEVELOPERS Some of our beloved IPs Source: as of January 23, 2025 21
Slide 22: Q&A
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Slide 23: Appendix
3. Appendix
Slide 24: Pro forma financials excluding Easybrain and Asmodee
APPENDIX Pro forma financials excluding Easybrain and Asmodee “Coffee Stain & Friends3” “Middle-earth & Friends3” Embracer Group1 SEK, billion (TTM) FY FY Q3 FY FY FY Q3 FY FY FY Q3 FY 22/23 23/24 24/25 22/23 23/24 24/25 22/23 23/24 24/25 Net sales 7.3 7.3 6.6 12.3 14.2 11.8 19.6 21.5 18.4 Adjusted
Slide 25: Pro forma financials | Mobile Games
APPENDIX Pro forma financials | Mobile Games SEKm Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 TTM Q3 FY 22/23 FY 23/24 FY 22/23 FY 22/23 FY 23/24 FY 23/24 FY 23/24 FY 23/24 FY 24/25 FY 24/25 FY 24/25 FY 24/25 Net sales 744 677 687 667 691 569 595 576 733 2,795 2,613 2,473 Adjusted EBITDA 143 133 142 148 170 136 159
Slide 26: Embracer Group
EMBRACER* GROUP