#1EMBRACER+ GROUP M&A Medley - 13 Acquisitions 18th November 2020#2Today's Speakers: 29 Ken Founder & CEO, DECA Games A THINKING APE KINGDOMS WAR Canina X Party DORM Kenshi Co-founder & CEO, A Thinking Ape KINGDOMS EMBRACER+ GROUP#3A Thinking Ape: Mobile FTP games with a social core Party DORM Q 2008 ANNO Community 11% 82 FTES Kenshi Arasaki Co-founder & CEO Admin 12% CHE Developers 75% ga Notes: 1) Including both active and discontinued games 59% 4% 37% c.97% RETENTION COTONE ODOLO Best Workplaces™ Great Place To Work. CANADA 2020 IN MY KINGDOMS WAR Cantre'X KINGDOMS All time high revenues 10 years after first release $190m Lifetime revenue¹ 30m EMBRACER+ GROUP Accounts created¹ 1/3 Of DAC >3yrs old BASED IN VANCOUVER: ONE OF THE LARGEST HUBS FOR GAME DEVELOPMENT IN CANADA 3#4Deal terms 31 WK KINGDOMS PURCHASE PRICE DE 320M $31m with a corresponding Enterprise Value of $28m on a cash and debt free basis Paid with $20m in cash and $11m in shares Acquired from founders: Kenshi Arasaki (CEO), Wilkins Chung (non- active), Eric Diep (non-active) and financial investors TEN YEAR ALIGNMENT 4 Up to $74m in additional consideration paid in cash and shares over ten years, mainly conditioned on cumulative EBIT targets with thresholds in years 3, 5 and 10 Maximum earnout achieved by reaching cumulative EBIT in year 10 of $200m or more AYAWAZI WWW A Thinking Ape remains independent in the DECA operating group with continued focus on F2P games EMBRACER+ GROUP 71 4#5Today's Speakers: Ken Founder & CEO, DECA Games Hong-Yee Founder & President, IUGO Games THE WALKING DEAD ROAD TO SURVIVAL 16 IUGO mobile entertainment#6HERE 20 UGO: Mobile F2P game developer with 17 year track record BASED IN VANCOUVER: ONE OF THE LARGEST HUBS FOR GAME DEVELOPMENT IN CANADA LIIMPITEL TEAM OF INSPIRED GAME CREATORS AND TECHNOLOGY EXPERTS NXA Hong-Yee 2003 Wong Founder & President ANNO YK Hun CEO THE WALKING DEAD ROAD TO SURVIVAL 45m+ INSTALLS GLOBALLY 86 FTES UNICORN IN DINTA EMBRACER+ GROUP #2 B2B PROXECTS IN OPELINE PIA IN Pioneering studio producing chart-topping titles for major global publishing partners MIDDLE EARTH SHADOW OF WAR Knight's & Dragons DEAL TERMS Through the acquisition 100% of the shares in IUGO games are acquired. The purchase price consists of cash and shares and includes an additional consideration based on financial targets over 10 years 6#7The new DECA operating unit - A decentralized ecosystem for mobile and FTP acquisitions Ken CEO of DECA Operating unit and DECA Games Full scale mobile/FTP operation with expertise across IP origination, development UA and Live ops Each business is run independently by founders and local management, but cooperate to achieve win-win synergies Kenshi CEO of ATA and part of DECA op. unit steering team Hong-Yee President of IUGO and part of DECA op. unit steering team DECA OPERATING UNIT DECA GAMES A THINKING APE EMBRACER+ GROUP IUGO 7#8Today's Speakers: Matt Co-founder and CEO, Saber 17 ICK ACK Andrey Co-founder and COO, Saber BR US zen STUDIOS JACKPOT zen Mel COO Zsolt Co-founder & Managing Director, Zen Studios Zen Studios INATION TRIUMPH 17 Shoot Agai MEE THE ER KICK BAC THE CONQUEROR FAUTEU A#9zen : Developer of the world's leading Pinball game platforms STUDIOS Collaborated with: Revenue split LUCASFILM 2003 Founded 100m lifetime players 67 FTES THE TEAM STAR WARS PINBALL PINBALL FXS) UNIVERSAL CLASSICS. PINBALL Metascore 85 89 90 B ab Zsolt kigyossy Co-founder and Managing Director UNIVERSAL A COMCAST COMPANY BASED IN BUDAPEST eft Non- Pinball Games 35% 7777 Pinball Games 65% EMBRACER+ GROUP Non-Pinball successes CastleStorm Operencia THE STOLEN SUN KICH DEAT DEAL TERMS Through the acquisition 100% of the shares in Zen Studios are acquired. The purchase price consists of cash and shares and includes an earnout consideration based on financial targets over 5 years 9#10SNAPSHOT GAMES Today's Speakers: Matt Co-founder & CEO Saber Andrey Co-founder and COO, Saber David Co-Founder & President Snapshot 99 Chaos Reborn - A true wizard's wheeze, and a fine return for one of gaming's oldest tactical classics PC GAMER 24 4-5 52PM Phoenix Point is, without a doubt, one of the best strategy games to come out in the last few years -noisy pixel.. Phoenix Point - A very solid first entry for a new IP, and we hope it continues to grow - the foundation is so good it could easily be one of the best strategy franchises VANDAL#11M Snapshot Games - Independent developer of premium strategy games JULIAN GOLLOP CO-FOUNDER THE TEAM w DAVID KAYE CO-FOUNDER MultiSport 2 IPS IN PORTFOLIO 65 FTES LA & SOFIA ▪ HQ in Los Angeles, USA with the majority of the team in Sofia, Bulgaria ■ ▪ Two IPs released to date (Chaos Reborn & Phoenix Point) Currently working on a major title that is planned to be released 2023 PHOENIX POINT PHOENIX POINT 2 SIT +$12m lifetime revenues SITES STEAM RELEASE DEC20 TO BE I RELEASED 2021 STEAM® XBOX ONE PS4. STADIA DEAL TERMS Through the acquisition 100% of the shares in Snapshot Games are acquired. The purchase price consists of cash and shares and includes an earnout consideration based on financial targets over 5 years EMBRACER+ GROUP 11#12Today's Speakers: Matt Andrey Co-founder & Co-founder and CEO, Saber COO, Saber Martin CEO Nimble Giant NIMBLE GIANT ENTERTAINMENT#13NGE: Sizeable Latin American premium game developer 2002 75 founded FTES BASED IN BUENOS AIRES Example customers QDISI WARGAMING.NET CN CARTOON NETWORK GAMES Martin Cao CEO ✪ AMPLITUDE STUDIOS Andrés Chilkowski Co-founder & CCO 2 games with owned ip, 1 published MANAGEMENT TEAM CHAMPIONS REGNUM HELLBOUND EMBRACER GROUP Nicolas Maier CTO QUANTUM LEAGUE Lucas Wall COO DEAL TERMS Through the acquisition 100% of the shares in Nimble Giant are acquired. The purchase price consists of cash and shares and includes an earnout consideration based on financial targets over 5 years 13#14Today's Speakers: Matt Co-founder & CEO, Saber AI Andrey Co-founder and COO, Saber B4BigThings Valerio Founder & CEO, 34 Big Things#1534BT: Award winning developer of premium games OWNED IPS 2 13 GAMES SP PREMIUM GAMES AWARDS RELEASED IN PIPELINE BASED IN TURIN FUAIRIS 2013 10 ANNO MANAGEMENT TEAM AND FOUNDERS Valerio Di Donato Giacomo Ferronato Founder & CEO Co-Founder & Game Developer 28 FTES EMBRACER+ GROUP Redout HYPERDRIVE Redout SPACEWASSAULT Giuseppe Franchi Ivano Zanchetta Co-Founder & Co-founder & Lead Game Designer Game and Cinematic Director SUPER INEFFICIENT COLF Marco Tansini Co-founder & Lead UI Programmer DEAL TERMS Through the acquisition 100% of the shares in 34Big Things are acquired. The purchase price consists of cash and shares and includes an earnout consideration based on financial targets over 6 years 15#16612 30 A MADHEAD GAMES Today's Speakers: SRD Matt Co-founder and CEO, Saber Andrey Nenad Co-founder and Co-founder & CEO, Mad Head Games COO, Saber#17● Mad Head Games: Extensive and efficient developer in Serbia MAD HEAD GAMES IN BRIEF 2011 130 founded employees THE FOUNDERS 4 offices Nenad Tomić Uroš Banješević Aleksa Todorović Co-founder & CEO Co-founder & CCO Co-founder & CTO THE TEAM ut UNREAL ENGINE PARTNERSHIPS BIG FISH KOCH MEDIA WARGAMING.NET BASED IN BELGRADE & NOVI SAD DEAL TERMS Through the acquisition 100% of the shares in Mad Head Games are acquired. The purchase price consists of cash and shares and includes an earnout consideration based on financial targets over 6 years 17#18wwwwww wwwww LFLAS ******* CONCER --------- HHHHH ****** ******* Today's Speaker: E36 Matt Co-founder and CEO, Saber Andrey Co-founder and COO, Saber HPE TORROE TRIBERY Corey Co-founder and Partner, Sandbox Strategies HATHER BRODE#19Sandbox Strategies: Veteran PR and influencer relations agency SANDBOX STRATEGIES IN BRIEF 2005 founded Rob Fleischer Co-founder & Partner Corey Wade Co-founder & Partner wam Shaun Norton Partner 13 employees Example Customers jackbox DEVOLVER DIGITAL focus HOME INTERACTIVE LARIAN STUDIOS u CODEMASTERS SABER INTERACTIVE [adult swim] redhill GAMES Avalanche Studios Group CRYTEK ? ROVIO THE TEAM D TRANSACTION Acquired 100% of the shares from owners Robert Fleischer and Corey Wade for an undisclosed consideration Management is retained and incentivized 19#20Today's Speaker: Klemens Managing Director, THQ Andrew Co-founder & CEO Purple Lamp PURPLE LAMP#21Purple Lamp: Game studio with established relationship with THQ Nordic THE TEAM The EXAMPLES OF GAMES (CO-)DEVELOPED Guild3 Sea of Thieves SBBATTLE BIKINI BO Roby w 2018 founded !!!!!!!!! PURPLE LAMP IN BRIEF 38 employees BASED IN VIENNA ADDED EDUSCH LLOYD Wolford Andrew Hance Co-founder & CEO Tanja Gönye COO DEAL TERMS Through the acquisition 100% of the shares in Purple Lamp are acquired. The purchase price consists of cash and shares 21#22TM QUANTIC LAB Quality Assurance. Today's Speaker Stefan Founder and CEO, Quantic Lab#23Quantic Lab: a growing specialist within gaming quality assurance QUANTIC LAB IN BRIEF 2006 390 founded employees Specialized in all-platform high quality testing solutions Functionality tests for the entire games production cycle, user-experience testing, and localization 3 offices Will work with both external and internal clients at arms length distance, continuing Embracer's "partner with the industry" strategy CLUJ-NAPOCA "THE SILICON VALLEY OF ROMANIA" CHIH Stefan Seicarescu Founder & CEO Providing services to more than 20+ notable game companies the past year CD PROJEKTⓇ OFT UBISOFT THONORDIC DEAL TERMS Through the acquisition 95% of the shares in Quantic Lab are acquired. The purchase price consists of cash BIOMUTANT 21 WIEDZIN 32783 WIEDZAN 32779 THONOR WITCHE № B WITCHER CO MIN WIEDŹMIN $2781 www EMBRACER+ GROUP itaqu 23#24Today's Speakers: Anton Sebastian Co-founder and Co-founder and CEO, CEO, Coffee Stain Coffee Stain North Coffee Stain NORTH#25Coffee Stain North COFFEE STAIN NORTH IN BRIEF Founded in 2013 and in co-operation with Coffee Stain for many years Subsidiary of Coffee Stain since 2018, currently an integrated part of the Coffee Stain family Stockholm - based with 23 employees ENTIAL Title in production Estimated 2021 In development with Coffee Stain since 2017 Sebastian Erikson CEO & Co-founder THE TEAM fet Coffee Stain NORTH DEAL TERMS Through the acquisition 40% of the remaining shares in Coffee Stain North are acquired. The purchase price consists of cash and shares and includes an earnout consideration based on financial targets over 8 years#26SILENT GAMES Today's Speaker Per-Arne CEO, Amplifier Game Invest Sally Co-founder & CEO, Silent Games#27+ Silent Games Studio: RPG game developer SILENT GAMES IN BRIEF Founded in 2018, by Sally Blake and Joseph Rogers, based in Newcastle Upon Tyne, currently 4 team members WOMG SILENT GAMES Sally Blake Joseph Rogers Nick Twigger Game Director Developer & Co-founder CEO & Co-founder LITE GAMES IN PRODUCTION TITLE IN PRE-PRODUCTION Third-person multiplayer action RPG ONFIDENCED TITLE In development Single player RPG Silent games remains independent under Mamplifier GAME INVEST DEAL TERMS Through the acquisition 100% of the shares in Silent Games are acquired. The purchase price consists of cash and shares and includes an earnout consideration based on financial targets over 10 years#28FLYING WILD HOG NING WILD HOG # EMBRACER+ CROUP TODAY'S SPEAKERS: Klemens Co-Founder & CEO Koch Media Michal Co-Founder & CEO Flying Wild Hog#29A GREAT PLACE TO WORK POLAND IS IMPORTANT & GROWING HUB FOR GAME DEVELOPMENT WARSAW SINCE 2009 RZESZÓW SINCE 2018 CRACOW SINCE 2016 TEAM PAST HITS: THE WITCHER <ybERFUNK DYING LIGHT Суветерник WILD HUNT THE WITCHER ASSASSINS OF KINGS THE WITCHER POLAND - ENHANCED EDITION - LORDS OF THE FALLEN FABLE III DEAD ISLAND TOM CLANCY'S HEDIVISION 266 FTES ~24% CY20 HC GROWTH 92% TEAM RETENTION TECHNOLOGY: u UNREAL ENGINE LEADERSHIP: PS5 MICHAL Szustak Co-Founder & CEO MICHAL Kuk Head of studio Cracow GRZEGORZ Rdzany Head of Technology XBOX X Windows SWITCH EE PAWEL Libiszewski CCO MARCIN Kryszpin Head of studio Rzeszów KATARZYNA Sekula Head of HR FLYING WILD HOG 10 YEARS OF WILD PASSION EMBRACER+ GROUP MICHAL Hrydziuszko COO KATARZYNA Ludwiczak Head of Production JOANNA Staniszewska Head of Marketing & PR#30PAST & FUTURE UNDATION 2009 2011 HARD RESET HARD RESET FAST-PACED ACTION SHADOW TACOL 2013 WARRIOR +5M units & game pas C JUJU 2015 NEW STUDIO IN CRACOW 2016 HARD 2016 GAMEPLAY LABORATORY HARD RESET REDUX RESET REDUX SHADOW SHADOW 2016 WARRIOR 2 +4M units & game pass WARRIOR 2018 supernova CAPITAL SUPERNOVA PARTNERSHIP IRREVERENT HUMOUR NEW STUDIO IN RZESZÓW 2018 2020 N DEVOLVERLAND EXPO DEVOLVERLAND EXPO SHADOW WARRIOR 3 SHADOW WARRIOR ? UNANNOUCED PROJECT UNANNOUCED PROJECT X JAGEX focus HOME INTERACTIVE UNANNOUNCED PROJECT EMBRACER+ GROUP DEAL TERMS The upfront purchase price amounts to $135m for 100% of the shares in Flying Wild Hog, paid in cash to the seller group. Additionally, an earnout consideration of $7.1m conditioned on fulfilment of agreed milestones is paid in shares over 5 years#31EMBRACER+ GROUP