#1EMBRACER+ GROUP M&A Medley - 8 Acquisitions August 5, 2021#2We are delighted to present 8 new acquisitions and welcome 560 new colleagues! R Crazy Labs FORCE FS FIELD GHOST SHIP GAMES DIGIX ART S/PEALIST IRONWORKS AD REALMS GRIMFROSTⓇ EMBRACER GROUP 2#3Purchase price (1/2) ● Aggregated day 1 purchase price of SEK 2.7bn in total, on a cash and debt free basis. Approx. SEK 2.1bn is paid in cash and SEK 0.6bn is paid in shares. Maximum additional consideration amounting to SEK 2.0bn, which is subject to fulfilment of agreed milestones, both operational and financial, over a period of up to 8 years. (SEK 1.0bn to be paid in cash and approx. SEK 1.0bn in shares) The aggregated maximum consideration amounts to SEK 4.7bn. EMBRACER* GROUP 3#4Purchase price (2/2) ● To achieve the max additional consideration the acquired companies combined must generate an aggregated Operational EBIT exceeding SEK 6bn by the financial year ending March 2029. To achieve the maximum consideration milestone on year five, the acquired companies combined must exceed SEK 1bn in Operational EBIT for the financial year ending March 2026. The estimated surplus value that will be in the preliminary PPA amounts to approx. SEK 4.5bn. This will be amortized according to Embracer's current accounting principles straight over 5 years. EMBRACER GROUP 4#5Financial impact Net sales contribution: SEK 2,000-3,000m during next FY ending March 2023. ● • Operational EBIT contribution: SEK 350-550m during the next FY ending March 2023. ● • The run rate contribution is expected to be in the lower end of the above-mentioned ranges during Q3 and Q4 current financial year. ● Crazy Labs is the most impactful contributor, estimated to be closed during end Q2. EMBRACER GROUP 5#6Other notes ● Extra general meeting to be held on 23 August 2021, for which a notice will be announced separately shortly. Growth centric capital allocation strategy remains unchanged. We still have a strong balance sheet with a sizable net cash position to support further M&A going forward. We continue to have many ongoing discussions with entrepreneurs, creators and companies to join the family, including large or transformative acquisitions that would create new operating groups. JUMANL EMBRACER GROUP 6#7Embracer Group acquires Crazy Labs DECA Crazy Labs Today's speakers: SAGI SCHLIESSER Co-founder, CEO Crazy Labs GUY TOMER COO Crazy Labs Aman NURIT BENJAMINI CFO Crazy Labs EMBRACER+ GROUP KEN GO Founder, CEO DECA 7#8CrazyLabs overview Developer of hit SuperStylist and long lasting Casual & Lifestyle mobile RPGs targeting a female audience I Also a top Hyper-Casual publisher, with robust infrastructure to rapidly test and scale hundreds of products monthly +4.5bn downloads since inception, of which 1bn in 2020 Released 11 new titles worldwide in 2020, of which 8 reached +20m downloads within 12 months² +110m unique MAUS across portfolio Top 3 Globally in mobile game downloads¹ E Top Parent Companies Heatmap # 1 5 Show change metrics Parent Company Voodoo AppLovin 2 Companies Crazy Labs 4 Companies Jinke Cultur-Outfit7 3 Compes SayGames Change (Value) | Period 107 3 AD AppLovin 2 Companies Crazy Labs 4 Companies Jinke Culture - C 3 Companies vnload AS A41 Om A3 855m 20 848m ^7 1 SUPER STYLIST Dress Up & Style Fashion Guru Super Stylist - Most downloaded fashion game in 2020 Released in May 2019 60m Installs³ ■ ■ Revenue 4: $16m Contribution: $5m Notes: 1). AppAnnie and Sensor Tower for 2020. 2). 6 out of the 8 titles reached +20m downloads in 6 months. 3). Until May 2021 4) From release until March 2021. 5). MAU as per Jan21. 6). ARPPU as per Jan21. ■ ■ EMBRACER+ GROUP |N MAU5: 7.2m ARPPU6: $20 8#9Multi-dimensional developer-publisher Strong profitability driven by long-lasting Casual Lifestyle RPG titles while rapidly scaling to become a Hyper-Casual market leader → Casual & Lifestyle Lab Long-lifespan titles, retaining players for multiple years Mix of IAP and ad monetization Higher monetization potential, targeting underserved female demographic CrazyLabs Innovation Lab Continuous R&D and genre experimentation 8₁- Hyper-Casual Lab High release cadence, short development cycles il Mostly monetized though ads EMBRACER+ GROUP Expertise in high volumes UA and ad monetization optimization 9#10Leading mobile games publisher, developer and innovator LEADERSHIP Founded in 2010, HQ in Tel Aviv, Israel Additional offices in China, Macedonia, Germany & Ukraine as well as Hyper-Casual hubs in India, Serbia, Poland, Turkey and South Africa among others SAGI SCHLIESSER CO-FOUNDERS & CEO ■ ■ +11y tenure with CrazyLabs Previous experience from Sapiens, IDIT & HP GUY TOMER COO +9y tenure with CrazyLabs ▪ Previous experience from Unipier & co-founder of attracTV. NURIT BENJAMINI CFO ■ +7y tenure with CrazyLabs ▪ Previous experience from Sigma Designs Israel, Compugen& Wix.com ■ Offers external & internal studios a proprietary publishing platform, game design expertise & analytics capabilities in order to efficiently publish the next #1 hit Rapid iteration and robust publishing infrastructure allowing CL to test continuously during development and stay focused on titles with superior potential +4.5bn Downloads to date Current and future CrazyHubs 11 Hyper-Casual titles released 2020 +300 FTES +350 Developers in network EMBRACER+ GROUP 10#11How Crazy ARE YOU? JUMANJI Casual & Lifestyle RPGs EMBRACER+ GROUP 11#12Casual & Lifestyle RPGs overview 2017 Hotel Miraculous Transylvania Ladybug Adventures & Cat Noir 2018 My Monster Gymnastics Superstar High Bakery Empire Beauty shop My Horse Stories 2019 Once upon a Match COMING SOON JUMANI Super Jumanji Stylist Miraculous Ladybug TBD COMING SOON 2021 Casual games combining CL's leading game development expertise with licensed IPs from top world entertainment brands Mostly female oriented RPG titles with strong long term retention Miraculous Ladybug & Cat Noir game reached 1m downloads in just 2 days after release EMBRACER+ GROUP Most downloaded casual & lifestyle games in 2020: ■ My Bakery Empire: 55m ▪ Super Stylist: 49m ■ Miraculous Ladybug & Cat Noir: 47m Two Casual RPGs currently in testing ■ Once Upon a Match Yet to be announced game with ZAG interactive with the Ladybug license 12#13Casual & Lifestyle RPGs monetization model (USDM) Gross Casual Revenue InApp % of Gross Casual Revenue 40 20% FY19 47 25% FY20 Note: Financials are based on CrazyLabs' financial year (Jan-Dec). 49 27% LTMJun21 EMBRACER GROUP 13#14How Crazy ARE YOU? Hyper-Casual EMBRACER+ GROUP 14#15Strong infrastructure enabling rapid Hyper-Casual growth Light weight, instantly playable and widely appealing games, ensuring user engagement and fast payback periods Focused on recognizing shifts and trends within the gaming sphere In total the Hyper-Casual games had +480m downloads in 2020, one of the fastest growing segments in the mobile industry Strong investments provides promising prospects to become THE Hyper- Casual leader Tie Dye reached 70m downloads in 9 months Notes: 1). From release until May 2021 Release: Downloads¹: Tie Dye Jun 20 102m OS Dentist Bling Jan 20 43m RELEASES FROM 2020 I Can Paint Aug 20 19m ASMR Slicing Apr 20 87m Acrylic Nails Sep 20 70m Foot Clinic Apr 20 43m Flip Jump Stack Apr 20 25m Rubber DIY Phone Band Cutting Case Nov 20 Dec 20 76m 15m EMBRACER GROUP Neon On Jun 20 12m Diamonds Painting Dec 20 16m 15#16The CrazyLabs Hyper-Casual process Driven by: ■ Developer relationships created & cultivated ■ CL's global footprint (through hubs) Strong track record of success Tools & Infrastructure advantage Resulting in.... Driven by: ■ Prototypes Tested on CL's Tech Platform ■ Quantity of quality developers Publishing managers identifying trends and concepts Speed of iteration A Rapid scaling of UA Spend Guided by Automation Driven by: Automated Bid and creative optimization Collaboration with +200 studios monthly to fuel the creation funnel +400 monthly prototype tests by EoY 2021 Driven by: ■ $ ■ Revenue & Contribution Margin Negotiation leverage ■ Efficient UA ROAS Ad monetization il 3-4 monthly Hyper-Casual releases by EoY 2021 EMBRACER GROUP 16#17Cutting-edge technology J ■ ■ Internally-developed BI system, improves the development process through data analysis Ad Monetization Management Dashboard, efficiently handles ad profiling and AB testing procedures The CrazyLabs Integration Kit, accelerates the development process and provides transparency for developers Automated User Acquisition, provides automatic bid optimization and deep creative performance analysis in order to efficiently scale UA Robust publishing infrastructure, allows developers to self service to test marketability and experiment with their game Games Test List BARCH CLIK Dashboard tbny Crtzsrydadhoa ter a gonie person or mude DATE 22.12.20 Deflect Master 22.12.20 Snowball Racer 22.12.20 Ball Defender 30 Fire Art Select a game Gold Digger Pranks Campame ASMR Paintball Blaster 22/12/2020 22/12/2020 Crazy Bil Acrylic Nails! Acrylic Nails! Acrylic Nails! 04/12/2020 23/12/2020 Selest a st Experiment List 21 50% ✔ US ZA Q Search by nome or Firebase it Stylist Monetization_2020... AB Testing Super Stylist DE 09/11/2020-20/11/2020 Crazy Labs Ad Profile Testing BulletMan-GP_1.2..5 AB Testing Bullet Man 3D 15/10/2020-22/12/2020 100% WW DAM TEST STATUS AppLovin d AppLovin NM CU BV RE MG 55 MM RC All Tests AppLovin STOPPED STOPPED Acrylic Nail Acrylic Nail Acrylic Nail TH All Tests Saltanuty Guy Tomer Admin My Bakery Empire V1 AB Testing Sweet Bakery Chef m04/11/2020-22/11/2020 100% Ww d TieDye 1.7.0 AB Testing Tie Dye m 08/10/2020-28/10/2020 1 100% WW bed6c796b517df6844. MP MP AZ ScaBc30608012e418c6d 0.079 cb182352e01b09de4218. 0.055 Date Change 0.168 GT Logout Add Develope STOPPED STOPPED 0.075 0.065 0.165 Active Finished ASMR_Slicing 1.7.0_fixed AB Testing Knife Cutting m01/11/2020-02/12/2020 100% WW d EMBRACER+ GROUP Neon On - IOS,WW-V2 AB Testing NeonOn 08/10/2020-02/11/2020 100% WW d STOPPED STOPPED 17#18Financial overview and new home within the Embracer Group (USDm) Gross Hyper-Casual Revenue Gross Casual Revenue 72 32 40 FINANCIALS FY19 122 75 47 FY20 153 Note: Financials are based on CrazyLabs' EBIT definition and financial year (Jan-Dec). 104 49 LTMJun21 ☐ ■ POST DEAL CORPORATE STRUCTURE EMBRACER* GROUP ■ DECA DEAL TERMS ▪ Embracer acquires 100% of the shares in CrazyLabs Purchase price structure is based on an upfront payment as well as earnout components, and contains cash and shares Management is retained through 8-year alignment The parties have agreed not to disclose the terms I I Crazy Labs EMBRACER GROUP 18#19Acquisition rationale 1 2 3 4 Adds a strong entrepreneur-driven team with proven track record in multiple mobile categories with significant organic growth trajectory Significantly increases size of user base and scale of UA. Combined Embracer mobile business will increase marketing efficiency, cross promotion opportunities and purchasing leverage Synergies with DECA will accelerate CrazyLabs efforts in live operations & improve DECA's publishing capabilities Enhanced M&A opportunities in the hyper-casual and casual mobile genres UUUUU M 1811 8 EMBRACER+ GROUP 19#20001 9 Embracer Group acquires Ghost Ship Games Coffee Stain Today's speakers: SEI GHOST SHIP LA Søren Lundgaard CEO, co-founder Ghost Ship Games Mikkel Martin Pedersen Creative Director, co-founder Ghost Ship Games DANGER. DARKNESS. DWARVES. Poans HOA GHOST SHIP 148011 tain GROUP Anton Westbergh CEO, co-founder Coffee Stain Studios 20#21The team behind critically acclaimed Deep Rock Galactic COMPANY OVERVIEW 2016 Founded SØREN LUNDGAARD CEO Sauna ALD Denmark Copenhagen ADAREF 26 Employees MIKKEL MARTIN PEDERSEN HENRIK EDWARDS Creative Director CTO CO-FOUNDING MANAGEMENT Al A JONAS MØLLER Technical Director 1948 THE TEAM 22. PHILIP MYGIND Lead Programmer ROBERT FRIIS Art Director EMBRACER+ GROUP BA NO HOPE UNREA 21#22Award-winning Deep Rock Galactic DEEP H GALACTIC Co-op FPS game published by Coffee Stain Development engine: Unreal Early access / Game Preview in 2018 ▪ Fully released in May 2020 ▪ 2m+ units sold across all platforms (as of Jan 2021) ■ metacritic ROCK 46k DAU 85 8.1 Metascore User Score W PC 310k MAU 83 8.2 Metascore User Score XBOXONE +1m Steam followers DO 9/10 IGN 9/10 EUROGAMER "AN ABSOLUTE GEM" ROCK PAPER SHOTGUN INDIE GAME OF THE YEAR 2021 SXSW Gaming Awards Overall since launch 97% POSITIVE REVIEWS 430ut of 75 265 total reviews on Steam EMBRACER GROUP Steam250.com overall RANK #42 best Steam games of all time according to gamer reviews 22#23Deal structure and acquisition rationale ACQUISITION RATIONALE Solid financial development and profitability Highly passionate team with track record of creating successful IP Close relationship and collaboration with Coffee Stain will continue Embracer Group will support Ghost Ship Games' growth journey going forward ■ POST DEAL STRUCTURE ■ EMBRACER+ GROUP Coffee Stain GHOST SHIP GAMES EMBRACER+ GROUP DEAL TERMS ▪ Embracer acquires the remaining 70% of Ghost Ship Games Purchase price structure is based on an upfront payment as well as earnout components, and contains cash and shares Management is retained through 8-year alignment ▪ The parties have agreed not to disclose the terms Ghost Ship Games will operate as a sister company to Coffee Stain 23#24Embracer Group acquires Easy Trigger Games Coffee Stain ↓ 1135 FEHE GLORY EASY TRIGGER GAMES Today's speaker: Anton Westbergh CEO Coffee Stain Studios HERTS SEKERS Coffee EMBRACER+ Stain GROUP 104 MED 24#25A critically acclaimed game studio ■ Talented team with proven ability to create strong IPS 2016 Founded 5 Employees ****** ||| HQ in Sweden Trollhättan Deal terms ▪ Coffee Stain acquires 100% of the shares Upfront purchase price: a mix of cash and shares ▪ Earnout consideration: based on operational and financial goals for 8 years ▪ The parties have agreed not to disclose the amount ■ ■ ■ HUNTDOWN Coffee Stain Publisher EASY TRIGGER GAMES IP owner Games portfolio a 89% SWITCHUP 9/10 THE SIXTH AXIS QOC 5/5 DAILY STAR NINTENDO LIFE 10/10 GAME REACTOR Platforms 4.5/5 B GAME RANT 9/10 10) (2.5 10) (2.510 NOISY NEXT PLAYER 9/10 PC INVASION Strategic focus and deal rationale ▪ Continued focus on development of creative indie games as an independent studio under Coffee Stain Already established relationship with Coffee Stain Increased 1st party development capabilities Original IP that will strengthen the Coffee Stain brand EMBRACER+ GROUP 25#26Embracer Group, through Koch Media subsidiary Vertigo Games, acquires Force Field VR VERTIGOGAMES F FORCE FIELDⓇ Today's speakers: Arthur Houtman CEO Force Field FORCE FIELD VERTIGOGAMES KOCH MEDIA Martin de Ronde Creative Director Force Field EMBRACER GROUP John Coleman Dir. Of Business Dev. Vertigo Games 26#27A pioneering AAA VR studio Experienced team with strong development capabilities ■ 2015 Founded ■ 65 C. Employees HQ in Netherlands Deal terms Vertigo Games acquires 100% of the shares Upfront purchase price: a mix of cash and shares ▪ Earnout consideration: based on operational and financial goals for 5 years ▪ The parties have agreed not to disclose the amount Amsterdam I 11 owned portfolio IPS Games portfolio and project extract STAR TREK BRIDGE GREW DELLE Dec 2019 oculus Note: Star Trek IP not owned by Force Field COASTER Jul 2020 oculus Pet Lab May 2018 oculus SAMSUNG Gear VR TIME STALL Jul 2020 KOCH MEDIA GROUP oculus TERM 1 NA L May 2017 SAMSUNG Gear VR EMBRACER+ Darty R Jul 2020 PlayStation VR Feb 2017 oculus Strategic focus and deal rationale Continued focus on development of innovative VR games as an autonomous studio under Vertigo Games ▪ Increased 1st party VR development capabilities to fuel more rapid growth in the VR market Pipeline of multiple AAA VR game productions 27#28Embracer Group acquires DigixArt KOCH MEDIA DIGIX ART Today's speakers: Yoan Fanise Founder, Creative Director DigixArt DIGIX RT KOCH MEDIA GROUP EMBRACER+ A Anne Laure Fanise Klemens Kundratitz Founder, CFO DigixArt Co-founder, CEO Koch Media ROAD 96 28#29$2 Award winning creative team focused on narrative games Studio based in vibrant gaming city lead by experienced founders 2015 Founded The Team EVENT France Montpellier 1525 21 Employees incl. freelancers A mix of veterans from the AAA industry and young talents with high potential Games development and portfolio OST IN HARMONY KAITOS ADVENTURE ■ Lost in Harmony Released 2016 IP owner 1. Best of The Year App Store 2016 Best of Google Play Google Play 2016 11-11 Memories Retold Released 2018 Creator & Developer PS4 0.0 THE GAME AWARDS Nominee "Game for Changes" BAFTA Nominee WINNER GAMES Game Beyond Entertainment" EPIC EMBRACER+ GROUP Road 96 To be released on Aug 16th, 2021 IP owner AD STORE ROAD 96 gog Com Deal terms Koch Media acquires 100% of the shares ▪ Purchase price is based on upfront and earnout components for 6 years and consist of a mix of cash and shares ▪ The parties have agreed not to disclose the amount 29#30Today's speakers: FALM Frederik Schreiber Founder, CEO of Slipgate Ironworks CEO of 3D Realms Tim Willits CCO Saber Interactive AD EMBRACER+ SIGNES REALMS SABER GROUP INTERACTIVE Embracer Group acquires Slipgate Ironworks and 3D Realms T SABER INTERACTIVE SLIPGATE (S IRONWORKS AD REALMS 30#31Studio with rich heritage and strong development capabilities Slipgate in brief Games development and portfolio extract 2017 Founded I 100 ■ C. Developers Deal terms Acquisition of 100% of the shares in Slipgate, including existing 40% ownership in 3D Realms ■ HQ Aalborg, Denmark including contractors REALME SLIPCATES Sil STO ▪ Purchase price structure is based on an upfront payment as well as earnout components, and contains cash and shares Management retained through 6-year alignment The parties have agreed not to disclose the terms Note: Slipgate was founded as Interceptor in 2011, and rebranded as Slipgate in 2017. AAA-Indie Genre Current projects AAA RTS + a number of unannounced projects Fuar PARADISE LOST AAA FPS POLY ALL IN! CORE DECAY TALL WRATH uunity Engines upcoming AA porting project from THQ Nordic ANCESTORS -LEGACY- Portfolio 2013-2020 16 KINGPIN Thanks Notable recent projects 2019-2021 CHOD/RUnnes white Shay DAYMARE Stanis PS5 Co-Development All console ports (current, next-gen) OME GHOST RUNNER EPIC GAMES Platforms and Partners ALL IN Shamy SlipGRE (st GROUP e STEAM Tutomik myths apports ALL IN! EMBRACER+ Slipgate has worked with several entities within Embracer Group Original IP Development for PC/Consoles Bird gog com ALL IN Cage RISENTRIAD 31#32AD EMBRACER REALMS GROUP Game publishing and distribution heritage - built up during 35 years Most recent published titles CORE DECAY KIKIPIN WRATH 1987 Founded ■ HQ Aalborg, Denmark 7 Employees Incl. US and Denmark Deal terms Acquisition of 60% of the remaining shares ▪ Purchase price is paid with cash and shares ▪ Includes earnout consideration based on financial targets over 3 years ▪ The parties have agreed not to disclose the terms JON FURY Owned IP Zwa REAB A successful partnership that has already started REALMS ca RELOADED REAVAMS VALON Owned IP B 3D Realms has worked with Saber on several titles 32#33Acquisition rationale and post-deal structure ACQUISITION RATIONALE Buncian H Founder-led development and publishing studios with significant experience and ambition to expand Highly passionate teams with excellent track record of publishing, development and porting of games across genres and platforms Longstanding relationships with Saber that will be explored further Focus remain on new IP development and business expansion Embracer Group will support Slipgate and 3D Realms on their growth journeys going forward POST DEAL STRUCTURE EMBRACER+* GROUP SABER INTERACTIVE IPGATE (S IRONWORKS im AD REALMS EMBRACER+ GROUP A Slipgate and 3D Realms will operate as subsidiaries under Saber 33#34Embracer Group acquires GRIMFROST Today's speaker: Lars Wingefors CEO, co-founder Embracer Group EMBRACER+ GRIMFROST GROUP 34#35E-commerce specialist within high-quality Viking merchandise Company overview Large community of fans 2014 Founded Ismo Arvenhav CEO Co-founder ■ HQ, Karlstad Stefan Sjöberg Co-founder 12 FTES Johan Hegg Co-founder Deal terms ▪ Embracer acquires 70% of the shares, founders remain with 10% ownership each ▪ Purchase price is paid in cash upfront The parties have agreed not to disclose the amount f +1m followers O 190k followers 70k followers Valuable knowledge and experience within global B2C e-commerce LET THE PAST INSPIRE THE PRESENT JOIN OUR HORDE Supplied TV and movie productions FAST WORLDWIDE SHIPPING Crafted reproductions for museums A global and well-known brand the transactions enables further collaboration with other "Viking-themed" games within Embracer Group GAME OF THRONES BIRKA VIKINGASTADEN AMON Merchandise for brands BARTH FROM THE HEART OF SWEDEN Home of the Vikings νικ NGS EMBRACER GROUP iOS app WARDRUNA 35#36Final words and Q&A#37EMBRACER+ GROUP 37