Slide 1: Embracer Group Q4 and Full Year Report FY 2025/26
Q4 FY 2025/26 EMBRACER GROUP FULL YEAR REPORT APRIL 2025 – MARCH 2026
Slide 2: Disclaimer
Q4 & FULL YEAR REPORT | FY 2025/26 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 in
Slide 3: What we cover today
Q4 & FULL YEAR REPORT | FY 2025/26 What we cover today Highlights Operating segments PC/Console Games Mobile Games Entertainment & Services Financial performance The next step for Embracer Group Q&A 3
Slide 4: Highlights from Q4 & FY 2025/26
Q4 & FULL YEAR REPORT | FY 2025/26 Highlights from Q4 & FY 2025/26 Q4 | SEKm NET S A L E S ADJUSTED EBIT FREE CASH FLOW Strong KCD2 performance 3,931 m 360 m 883 m METRO 2039 announced for FY 2026/27 Robust earnings growth for Mobile and E&S Strong free cash flow, supported by working -24% Y
Slide 5: Operating segments
Operating segments Magic: The Gathering® | The Hobbit , © & TM Mee under lic. to Wizards of the Coast
Slide 6: PC/Console Games | Q4
PC/Console Games | Q4 PERFORMANCE COMMENTS SEKm Stable catalog performance driven by KCD2, but clearly Growth: -46% | Organic growth: -37% 4,000 40% lower net sales from new releases YoY REANIMAL received positive ratings from critics and 35% 33% 30% users, delivering a strong release quarter fo
Slide 7: PC/Console Games | ROI
PC/Console Games | ROI ROI (CONTRIBUTION/INVESTMENT) COMMENTS Times Dataset 2016-2026 The value of completed games No. Projects 107 14x amounted to approximately Investments SEK 11.1 bn Contribution SEK 19.7 bn 633 SEKm in Q4 Net Sales SEK 27.8 bn 12x The weighted average ROI of all titles amoun
Slide 8: 30 Announced titles to-date
PC/Console | Pipeline details 30 Announced titles to-date * Selected upcoming releases Gothic 1 Remake | 5 June 2026 Gothic Classic | 28 July 2026 Gothic II Complete Classic | 29 September 2026 Still to be dated METRO 2039 | Winter 2026/27 Warhammer 40 000: Dawn of War IV | CY 2026 Tomb
Slide 9: Mobile Games | Q4
Mobile Games | Q4 PERFORMANCE COMMENTS SEKm Growth: -28% | Organic growth: 2% Improved organic growth sequentially, driven by the successful continued scaling of the game Sled Surfers 1,000 943 30% Strong underlying Adjusted EBIT improvement YoY, excluding Easybrain SEK 682 m Continued focus o
Slide 10: Entertainment & Services | Q4
Entertainment & Services | Q4 PERFORMANCE COMMENTS SEKm Growth: 23% | Organic growth: 36% Strong organic growth primarily driven by two strong new 3,000 12% physical releases within PLAION Partners The higher Adjusted EBIT driven by the strong organic 2,500 growth in PLAION Partners 10% 10% SEK
Slide 11: Financial performance
Financial performance
Slide 12: Financial development
Q4 & FULL YEAR REPORT | FY 2025/26 Financial development NET SALES & GROSS MARGIN DEVELOPMENT | SEKm DEVELOPMENT OF MARKETING EXPENSES | SEKm 15,906 m 1,000 17% 6,000 160% 16% 15% 5,000 750 12% 13% 140% 5,172 237 11% 10% 11% 120% 4,000 8% 9% 500 100% 3,000 3,931 75% 123 7% 80% 68% 65% 61% 2,000 55%
Slide 13: Cash flow and net cash
Q4 & FULL YEAR REPORT | FY 2025/26 Cash flow and net cash FY25/26 FY24/25 FY 25/26 FY 24/25 March 31, March 31, SEKm SEKm Q4 Q4 2026 2025 Adjusted EBITDA 1,051 1,823 3,756 6,011 Cash 4,957 7,097 Cash Tax -88 -72 -450 -700 Current liabilities to credit institutions -792 -545 Other items -130 -272 -26
Slide 14: Net cash bridge
Q4 & FULL YEAR REPORT | FY 2025/26 Net cash bridge | Full Year 2025/26 FY 2025/26 | SEKm COMMENTS SEKm FCF after WC 50 m Maintained strong net cash position after key strategic and 3,046 corporate actions completed in FY 2025/26. Estimated earn-out obligations M&A and financial cash flow -1,685 m to
Slide 15: Adjusted EBIT bridge Full year 2025/26
Q4 & FULL YEAR REPORT | FY 2025/26 Adjusted EBIT bridge Full year 2025/26 Items not IFRS expense Items affecting SEKm affecting Cash reported Cash Flow Flow Specification of items affecting comparability Non-cash impairment according to annual impairment process mainly Annual impairment of goodwill
Slide 16: Cash EBIT introduced as key performance measure in FY 26/27
Q4 & FULL YEAR REPORT | FY 2025/26 Cash EBIT introduced as key performance measure in FY 26/27 Adj. EBIT to Cash EBIT – FY 2025/26 | SEKm COMMENTS Adjusted EBIT 905 Better reflects cash economics of game development and internal steering Depreciation & Amortization 2,852 of the business Gross inve
Slide 17: Forecast FY 2026/27: Cash EBIT of at least 1.0 SEK billion
Q4 & FULL YEAR REPORT | FY 2025/26 Forecast FY 2026/27 Cash EBIT of at least 1.0 SEK billion For the financial year 2026/27, a Cash EBIT of at least 1.0 SEK billion is forecasted. A similar difference in absolute terms between Adjusted EBIT and Cash EBIT as seen in FY 2025/26 is expected. In Q
Slide 18: The next step for Embracer Group
The next step for Embracer Group Magic: The Gathering® | The Hobbit , © & TM Mee under lic. to Wizards of the Coast
Slide 19: Built over a decade
LEARNINGS FROM THE PAST BUILT OVER A DECADE TESTED THROUGH CHANGE SHAPED BY HARD LESSONS READY FOR THE NEXT CHAPTER 19
Slide 20: Shaped for tomorrow
SHAPED FOR TOMORROW NOT TAKEN LIGHTLY, BUT THE RIGHT STEP SHARPER FOCUS, STRONGER EXECUTION. LONG-TERM VALUE. A NEW CHAPTER BEGINS FOR FELLOWSHIP AND EMBRACER. 20
Slide 21: Introduction
Introduction Magic The Gathering: Tales of Middle-earth, © & TM Mee under lic. to Wizards of the Coast
Slide 22: Two distinctive businesses, two compelling stories
STRATEGY UPDATE | 20 MAY 2026 Two distinctive businesses, two compelling stories FELLOWSHIP ENTERTAINMENT EMBRACER * An IP-led entertainment company Home of proven entrepreneurial businesses * includes all studios under THQ Nordic Magic The Gathering: Tales of Middle-earth, © & TM Mee under lic. to
Slide 23: Fellowship Entertainment
Fellowship Entertainment Magic The Gathering: Tales of Middle-earth, © & TM Mee under lic. to Wizards of the Coast
Slide 24: Our strategic focus
OUR STRATEGIC FOCUS WORLDS THAT PLAYERS RETURN TO AGAIN… AND AGAIN
Slide 25: Our platform
OUR PLATFORM RENOWNED IPs WORLD CLASS STUDIOS ONE PUBLISHING ORGANIZATION DEDICATED LICENSING DIVISION A PLATFORM FOR BUILDING ONE OF THE GREAT ENTERTAINMENT COMPANIES OF THE NEXT DECADE AND BEYOND
Slide 26: The Portfolio
STRATEGY UPDATE | 20 MAY 2026 The Portfolio OWNED. CONTROLLED. COMPOUNDING. COMMERCIAL RIGHTS COMMERCIAL RIGHTS OWNED COMMERCIAL RIGHTS OWNED OWNED OWNED OWNED 26
Slide 27: Illustrative financials and reporting changes from Q1
STRATEGY UPDATE | 20 MAY 2026 Illustrative financials and reporting changes from Q1 Segment reporting to be aligned to new structure from Q1 FY 2026/27 Provides early visibility of the two groups financials performance ahead of the separation The illustrative financials presented today are sub
Slide 28: Fellowship illustrative historical key financials
STRATEGY UPDATE | 20 MAY 2026 Fellowship illustrative historical key financials FY 2024/25 FY 2025/26 KEY DRIVERS FY 2025/26 SEKm Full Year Q1 Q2 Q3 Q4 Full Year Net sales mainly back catalog driven, with KCD2 as Total net sales 5,584 1,067 1,084 1,380 862 4,393 standout title. The two upcoming To
Slide 29: Collaboration, shared tech, services, AI
DEVELOPMENT KEY TENETS COLLABORATION SHARED TECH, SERVICES AI: A POWER MULTIPLIER
Slide 30: Fellowship | Publishing & Licensing
FELLOWSHIP | PUBLISHING & LICENSING “Where external talent brings a stronger fit, we will partner, publish, or license. It's about reaching the widest possible audience with the very best experiences.”
Slide 31: Fellowship studio capabilities & pipeline
STRATEGY UPDATE | 20 MAY 2026 Fellowship studio capabilities & pipeline ■ Full development □ Preproduction ● Concept Support 1,600+ developers Pipeline 250+ 175+ 275+ 175+ 200+ 200+ 200+ 10+ 70+ Open-world / RPG Action / Adventure FPS / Action FPS / Survival Co-op FPS / ARPG Survival Horror Action /
Slide 32: In full development
A NEW ADVENTURE AWAITS In full development MORE DETAILS TO COME
Slide 33: More details to come
ae ______________* ONE MORE THING | Mi00Le-earth » WARIDRSE & AN Open-WORLO Middle-earth RPG in deveLopment MORE DETAILS TO COME
Slide 34: Fellowship studio capabilities & pipeline
STRATEGY UPDATE | 20 MAY 2026 Fellowship studio capabilities & pipeline ■ Full development □ Preproduction ● Concept Support 1,600+ developers Pipeline 250+ 175+ 275+ 175+ 200+ 200+ 200+ 10+ 70+ Open-world / RPG Action / Adventure FPS / Action FPS / Survival Co-op FPS / ARPG Survival Horror Action /
Slide 35: Fellowship Entertainment
FELLOWSHIP ENTERTAINMENT PUBLISHING & DEVELOPMENT LICENSING TM MEE. All third-party trademarks are the property of their respective owners. 35
Slide 36: Fellowship licensing & IP management
STRATEGY UPDATE | 20 MAY 2026 Fellowship licensing & IP management CORE TIER. FULL FRANCHISE ORCHESTRATION COMMERCIAL RIGHTS COMMERCIAL RIGHTS OWNED 36
Slide 37: Middle-earth licensing opportunity
STRATEGY UPDATE | 20 MAY 2026 Middle-earth licensing opportunity | VIDEO GAMES | TABLETOP GAMES | TRADING CARD GAMES | LOCATION-BASED EXPERIENCES | MERCHANDISE | MOVIES TM MEE. All third-party trademarks are the property of their respective owners. 37
Slide 38: Fellowship licensing & IP management
STRATEGY UPDATE | 20 MAY 2026 Fellowship licensing & IP management CORE TIER. FULL FRANCHISE ORCHESTRATION COMMERCIAL RIGHTS COMMERCIAL RIGHTS OWNED SPECIALIST TIER. GAME-FIRST RHYTHM, SELECTIVE CATEGORY EXTENSION COMMERCIAL RIGHTS OWNED OWNED OWNED OWNED 38
Slide 39: Fellowship licensing & IP management
STRATEGY UPDATE | 20 MAY 2026 Fellowship licensing & IP management CORE TIER. FULL FRANCHISE ORCHESTRATION COMMERCIAL RIGHTS COMMERCIAL RIGHTS OWNED SPECIALIST TIER. GAME-FIRST RHYTHM, SELECTIVE CATEGORY EXTENSION COMMERCIAL RIGHTS OWNED OWNED OWNED OWNED VAULT. UNDERLEVERAGED BRAND EQUITY THAT WE I
Slide 40: Fellowship licensing & IP management
STRATEGY UPDATE | 20 MAY 2026 Fellowship licensing & IP management CORE TIER. FULL FRANCHISE ORCHESTRATION COMMERCIAL RIGHTS COMMERCIAL RIGHTS OWNED SPECIALIST TIER. GAME-FIRST RHYTHM, SELECTIVE CATEGORY EXTENSION COMMERCIAL RIGHTS OWNED OWNED OWNED OWNED VAULT. UNDERLEVERAGED BRAND EQUITY THAT WE I
Slide 41: Our story
OUR STORY PREMIUM IP A TIGHT INTEGRATED GROUP CAPITAL EFFICIENCY BUILT-IN A DEDICATED LICENSING BUSINESS A PIPELINE TO DELIGHT AND BUILD FANS CLEAN STRUCTURE. NO LEGACY COMPLEXITY. A CLEAR PATH FOR GROWTH. © & TM Mee under lic. to Rings Scenic Tours and Wingnut Film Productions 41
Slide 42: Embracer
_ < py _Embracer _ |
Slide 43: Lean(er) and more focused
DECENTRALIZED, WITH LEARNINGS LEANER AND MORE FOCUSED RESPECTED, RESILIENT BUSINESSES SUPPORTED, WHILE KEEPING THE UNIQUE
Slide 44: Quote on 30 years of making games
“Some of the companies within Embracer have been making games, working with games for 30 years. That’s not luck. It's culture, craft, and community built over decades.”
Slide 45: Durable businesses with extraordinary heritage
STRATEGY UPDATE | 20 MAY 2026 Durable businesses with extraordinary heritage Heritage of building and Creators of Killing Floor, One of the world’s leading Long-tail engagement and rebuilding beloved bringing a dedicated community motorsport video game strong community retention franchises of co-op
Slide 46: More than making games
STRATEGY UPDATE | 20 MAY 2026 More than making games Specialism in physical distribution A leading position in film distribution across Europe BOTH GENERATING STABLE, NON-CYCLICAL REVENUE. 46
Slide 47: Where gaming history lives on
STRATEGY UPDATE | 20 MAY 2026 Where gaming history lives on 47
Slide 48: Leaner focused group of durable businesses
STRATEGY UPDATE | 20 MAY 2026 Leaner focused group of durable businesses GREAT COMPANIES STRONG GAMING IPs * * includes all studios under THQ Nordic Source: as of 31 March, 2026 48
Slide 49: Embracer illustrative historical key financials
STRATEGY UPDATE | 20 MAY 2026 Embracer illustrative historical key financials FY 2024/25 FY 2025/26 KEY DRIVERS FY 2025/26 SEKm Full Year Q1 Q2 Q3 Q4 Full Year Net sales driven by PLAION Partners, CrazyLabs and THQ Nordic with successful release of REANIMAL Total net sales 15,812 2,115 2,557 3,820
Slide 50: Selective M&A
SELECTIVE M&A ACQUSITIONS DIVESTMENTS IF IT STRENGTHENS OUR NICHES IF IT INCREASES OUR FOCUS 50
Slide 51: A compelling story
A COMPELLING STORY 30+ YEARS OF HISTORY DECENTRALIZED AND DISCIPLINED PREDICTABLE REVENUE STREAMS DEEP IP PORTFOLIO, DEEP CATALOG THE ORIGINAL EMBRACER THESIS — ADJUSTED FOR 2026 AND BEYOND.
Slide 52: Capital allocation & process ahead
Capital allocation & process ahead Magic The Gathering: Tales of Middle-earth, © & TM Mee under lic. to Wizards of the Coast
Slide 53: Capital needs and capital distribution
STRATEGY UPDATE | 20 MAY 2026 Capital needs and capital distribution SEKm Net cash at 31 March 2026 3,799 Share buy-back of 750 SEKm announced today To be executed over the remaining period to the end of the 2026/27 financial year - Remaining cash-settled earn-out obligations -464 We maintain
Slide 54: Process ahead
STRATEGY UPDATE | 20 MAY 2026 Process ahead TIMELINE INTENDED LISTING NASDAQ LISTING NASDAQ CAPITAL MARKETS DAY COMMITTEE DECISION STOCKHOLM EMBRACER GROUP FELLOWSHIP ENTERTAINMENT (PLANNED FOR CY 2027) INFORMATION EXTRAORDINARY PROSPECTUS BROCHURE GENERAL MEETING SPIN-OFF GOVERNANCE CEO Phil Roge
Slide 55: Closing remarks
Closing remarks Magic: The Gathering® | The Hobbit , © & TM Mee under lic. to Wizards of the Coast
Slide 56: Iconic IP, greatest games, licensing business
ICONIC IP ENTREPRENEURIAL OWNERSHIP GREATEST GAMES OPERATIONAL FREEDOM LICENSING BUSINESS DISCIPLINED EXECUTION RECURRING HIGH-MARGIN REVENUE ENDURING BUSINESSESS FELLOWSHIP ENTERTAINMENT EMBRACER Magic: The Gathering® | The Hobbit , © & TM Mee under lic. to Wizards of the Coast
Slide 57: The direction we've been building towards
THE DIRECTION WE’VE BEEN BUILDING TOWARDS OUR FOCUS NOW IS CONSISTENT DELIVERY Magic The Gathering: Tales of Middle-earth, © & TM Mee under lic. to Wizards of the Coast
Slide 58: Q&A
Q&A Magic: The Gathering® | The Hobbit , © & TM Mee under lic. to Wizards of the Coast
Slide 59: Appendix
Appendix
Slide 60: Group key financials including Cash EBIT, by quarter
STRATEGY UPDATE | 20 MAY 2026 Group key financials including Cash EBIT, by quarter ACT FY 2025/2026 SEKm Q1 Q2 Q3 Q4 FY Net Sales 3,171 3,628 5,176 3,931 15,906 Adj EBIT 18 -1 528 360 905 EBITDAC -33 1 410 371 748 Cash EBIT -99 -66 350 326 511 ACT FY 2024/2025 SEKm Q1 Q2 Q3 Q4 FY Net Sales 4,673 4,4
Slide 61: Fellowship Entertainment Companies
STRATEGY UPDATE | 20 MAY 2026 Fellowship Entertainment Companies 4A Games Flying Wild Hog Crystal Dynamics Gunfire Studios Dambuster Studios Middle-earth Enterprises Dark Horse Media Redoctane Games Eidos-Montréal Warhorse Studios Fishlabs Source: as of March 31, 2026
Slide 62: Embracer Companies
STRATEGY UPDATE | 20 MAY 2026 Embracer Companies A Thinking Ape DPI Merchandising Purple Lamp Alkimia Interactive Embracer Games Archive Snapshot Games Ashborne Games Experiment 101 Tarsier Studios Aspyr Game Outlet Europe Tatsujin Beamdog Gate21 THQ Nordic Black Fore
Slide 63: Embracer Group
EMBRACER* GROUP