#1EMBRACER+ GROUP M&A update 18th November 2020#2We are delighted to present 13 new acquisitions and welcome 1 259 new colleagues A THINKING APE LUGO mobile entertainment zen STUDIOS TM TIM QUANTIC LAB Quality Assurance. SILENT GAMES FLYING WILD HOG NIMBLE GIANT ENTERTAINMENT PURPLE LAMP ISANDBOX STRATEGIES SNAPSHOT GAMES Stain NORTH MADHEAD GAMES EMBRACER+ GROUP 34BigThings 2#3The new combined group Internal development studios External development studios Number of IPs Development projects Developers Announced Unannounced Internal External EMBRACER* GROUP Pre. Acq. 46 56 195 53 82 Total: 135 2,551 1,042 Total: 3,593 Acquitions announced 18th of November¹ 12 0 19 3 16 Total: 19 767 7 Total: 774 EMBRACER* GROUP Post. Acq. 58 56 214 56 EMBRACER+ GROUP 98 Total: 154 3,318 1,049 Total: 4,367 Note: 1) A Thinking Ape, IUGO, Zen Studios, Snapshot Games, Nimble Giant, 34Big Things, Mad Head Games, Sandbox Strategies, Purple Lamp, Quantic Lab, Coffee Stain North, Silent Games, Flying Wild Hog 3#4Organizational overview post transaction ORGANIZATION i POST ACQUISITION A Thinking Ape and IUGO will remain independent studios within DECA Games Zen Studios, Snapshot Games, Nimble Giant, 34Big Things, MadHead Games and Sandbox Strategies will remain independent within Saber Interactive Purple Lamp will operate within THQ Nordic Quantic Lab will remain independent within Embracer Group Coffee Stain North will operate within Coffee Stain Silent Games will remain independent studios within Amplifier Game Invest Flying Wild Hog will remain independent within Koch Media 1,388 THQ Nordic Vienna, Austria Klemens Kreuzer Operational CEO Studios 16 Internal 26 External PURPLE LAMP 2,364 Koch Media Munich, Germany Klemens Kundratitz Operational CEO Studios 10 Internal 25 External FLYING WILD 107 Group HQ Karlstad, Sweden CEO Lars Wingefors Coffee Stain Skövde, Sweden Anton Westbergh Operational CEO Studios 4 Internal 5 External Stain NORTH 175 Amplifier Game Invest Stockholm, Sweden Per-Arne Lundberg Operational CEO Studios 9 Internal 0 External SILENT GAMES 1,334 Saber Int. Maplewood, US Matthew Karch Operational CEO Andrey lones COO Studios 14 Internal 0 External SNAPSHOT GAMES zen NIMBLE STUDIOS GIANT SANDBOX STRATEGIES MADHEAD GAMES 305 EMBRACER+ GROUP DECA Games Berlin, Germany Ken Go Operational CEO Studios 5 Internal 0 External A THINKING APE UGO mobile entertainment 4#5Purchase price for Acquisitions ● ● The aggregated day one purchase price for the Acquisitions amounts to approximately SEK 2.0 billion on a cash and debt free basis. Approximately SEK 1.7 billion is paid in cash and SEK 0.3 billion in newly issued Embracer B shares. Maximum additional consideration amounting to SEK 1.8 billion, which is subject to fulfilment of agreed milestones, both operational and financial, over a period of up to 10 years. Maximum approximately SEK 0.9 billion is paid in cash and a maximum approximately SEK 0.9 billion in Embracer B shares at VWAP20 at time of signing. The aggregated maximum consideration amounts to SEK 3.8 billion. EMBRACER+ GROUP 5#6Estimated net sales and operational EBIT of acquisitions FY 21/22 Estimated Net Sales, SEK million Estimated Operational EBIT, SEK million Savings on capitalized game development, SEK million Combined operational EBIT and savings on game development, SEK million. This is expected to grow in the following years as more game development projects will be completed. Acquisitions announced 18th of November ¹ 850 to 1,050 300 to 400 50 to 100 350 to 500 EMBRACER+ GROUP Note: 1) A Thinking Ape, IUGO, Zen Studios, Snapshot Games, Nimble Giant, 34 Big Things, Mad Head Games, Sandbox Strategies, Purple Lamp, Quantic Lab, Coffee Stain North, Silent Games, Flying Wild Hog 6#7THE STRENGTH OF EMBRACER'S OPERATING MODEL ENABLES CONSIDERABLE GROWTH Four years from IPO and counting... Verticals: 1 Studios: 4 Headcount: 372 Acquisitions: - M&A Consideration: - 2016 I I I I I I I Verticals: 6 Studios: 58 Headcount: 5,697 Acquisitions: 25 M&A Consideration: 12,4bn 2020-11-18 EMBRACER+ GROUP 7#8PLATFORM AND BOLT-ON ACQUISITIONS SINCE EMBRACER FOUNDING ● ● ● Platform M&A Bolt on M&A THQNORDIC THQ Nordic Gunfire • Bugbear Piranha • E101 • Handy Games Black Forest Pieces • Purple Lamp ● SABER INTERACTIVE ● ● ● Saber Snapshot NWI • 34 Big Things Nimble Giant 4A Games ZEN Games ● Madhead • Sandbox Strategies Coffee Coffee Stain Mamplifier DECA S DEEP SILVER • Tarsier • Palindrome Vermila Rare Earth River End Misc Games Destiny Bit ● ● ● Amplifier ● • Silent Games ● Deca A Thinking Ape • IUGO ● All operating units have further room to grow both organically and inorganically. ● ● Koch Media Deep Silver FWH Vertigo Milestone Warhorse Voxler KOCH MEDIA KOch films EUROPEAN PUBLISHING PARTNER NO ● Koch Media P. Publishing • 18Point2 Gaya • Game Outlet ● ● Koch Films KSM Sola Media = Business area Games = Business area Partner Publishing Embracer Group has grown into a diversified, fast growing and high ROIC business through a collection of previously independent, generally self-funded companies, run by successful gaming entrepreneurs,. Embracer Group has transformed from one to six operating units, across two business areas, which jointly has completed 36 bolt on acquisitions. The Group operates with a decentralized, highly scalable governance model, where all operating units and most acquired subsidiaries are run independently by original founders and management. The main strategic objectives for leaders of all operating units are to generate organic growth with high incremental ROIC and to scout their network for suitable, attractive bolt on acquisitions of entrepreneur-led companies. EMBRACER+ GROUP 8#9Capital structure ● ● ● ● Embracer Group's capital allocation strategy is essential for continued growth Embracer reiterates the ambition to maintain a strong balance sheet and strives to maintain a net cash position to maintain maximum strategic flexibility. For the right inorganic growth opportunity, financial leverage could temporarily exceed 1,0x operational EBIT to net debt, where operational EBIT is measured as management expectations for the coming twelve months. Cash at hand and available credit facilities post the cash payment of the Acquisitions amounts to more than SEK 8.5 billion. On 16 November 2020, the extra general meeting authorized the board of directors to issue B shares in the amount not exceeding ten (10) percent of the total number of shares in the Company. EMBRACER+ GROUP 9#10M&A Outlook ● The gaming M&A market is more active than ever. Ongoing scouting and research activity at HQ in Sweden, Saber Interactive, THQ Nordic Vienna, Koch Media Deep Silver, Coffee Stain, Deca Games and Amplifier Game Invest Substantial watchlist of IPs, development studios and publishers Embracer's operating model with autonomy to local management teams within a highly diversified group is remain attractive to many gaming entrepreneurs. During the past three months we been engaging with more than 100 entrepreneurs about joining the Embracer family, including a dozen sizable businesses that has the potential to create new operating units. EMBRACER+ GROUP 10#11EMBRACER+ GROUP