#1Q1 FY 2023/24 EMBRACER GROUP INTERIM REPORT APRIL - JUNE 2023 EMBRACER* GROUP#2EMBRACER GROUP - INTERIM REPORT Q1 FY 23/24 Disclamer IMPORTANT INFORMATION - PLEASE READ THE FOLLOWING BEFORE CONTINUING READING This presentation (the "Presentation") has been prepared by Embracer Group AB ("Embracer" or the "Company") and is provided for information purposes only. By attending a meeting where this Presentation is presented or by accessing information contained in or obtained from the Presentation, including by reading this Presentation, you agree to be bound by the following limitations and notifications. This Presentation may not be used for, or in connection with, any offer to, or solicitation by, any person in any jurisdiction or under any circumstances. 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The securities of the Company have not been and will not be registered under the U.S. Securities Act, as amended (the "Securities Act"), or under any of the relevant securities laws of any state or other jurisdiction of the United States and the Company does not intend to make a public offer of its securities in the United States. Certain information contained in this Presentation (including market data and statistical information) has been obtained from various sources prepared by other parties (including third party sources) that the Company has deemed to be relevant and trustworthy. Moreover, certain information in the Presentation is based on assumptions, estimates and other factors that were available to the Company at the time of when the information was prepared. 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No information in the Presentation has been independently reviewed or verified by the Company's auditors unless explicitly stated otherwise. In addition, certain financial information may be preliminary and has yet not been finalized, be forward-looking, or subject to review/audit from the Company's auditors. Accordingly, such preliminary financial information may change. Furthermore, certain financial information in this Presentation has been prepared for illustrative purposes only and is solely intended to describe the hypothetical situation of if the acquired companies were part of Embracer for the periods referred to in the Presentation. Statements in this Presentation, including those regarding the Company's and its industry's possible or assumed future, the Company's business strategies, its expansion and growth of operations, future events, objectives, trend projections and expectations, or other performance of the Company or its industry, constitute forward-looking statements. 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The courts of Sweden, with the District Court of Stockholm as the first instance, shall have exclusive jurisdiction to settle any conflict or dispute arising out of or in connection with this Presentation or related matters. 2#3BRIEF SUMMARY Interim Report Q1 FY 2023/24 Net Sales Group SEK 10,450m GROUP ORGANIC GROWTH 20% Adjusted EBIT SEK 1,673m Adjusted EPS AFTER FULL DILUTION SEK 1.23 Adjusted EBIT forecast SEK 7,000m - 9,000m (REITERATED) Source: as of June 30, 2023 YOY GROWTH GROUP PRO FORMA GROWTH 17% 47% YOY GROWTH 27% (1.18) FY 2023/24 AND TECHINT LACREDIT WELCOME TO HELL-A DEAD ISLAND 2 RELEASED IN Q1 REMNANT RELEASED IN Q2 ESTAUR MANOLE PURCE Dead Island 2 and Remnant II performance jumpstart FY 2023/24 The restructuring program is on track Exciting pipeline looking ahead for FY 2023/24... PAYDAY EMBRACER+ GROUP KANAD WARHAMMER SPACE MARINE + a strong slate of other notable releases 3#4+ 00 ▷ Operating segments it#5OPERATING SEGMENTS | Q1 PERFORMANCE Operative Groups by segment PC / CONSOLE GAMES Internal Headcount: 10,469 | Internal Studios: 103 { THONORDIC MOBILE GAMES Internal Headcount: 1,196 | Internal Studios: 11 0 DECA ENTERTAINMENT & SERVICES Internal Headcount: 967 | Internal Studios: 3 ▶ PLAION DARK HORSE MEDIA Source: as of June 30, 2023 Easybrain TABLETOP GAMES Internal Headcount: 2,579 | Internal Studios: 22 PLAION FREEMODE asmodee BY EMBRACER Stain Mamplifier 3,996 837 (21%) NET SALES AND ADJUSTED EBIT PER SEGMENT | Q1 FY 2023/34 PC/ CONSOLE GAMES 1,438 SABER 424 (29%) gearbox entertainment MOBILE GAMES 3,184 206 (6%) TABLETOP GAMES ■Net sales ■Adjusted EBIT and Adjusted EBIT margin CRYSTAL DYNAMICS eidos 4, montréal EMBRACER+ GROUP 1,832 284 (15%) E&S LO 5#6{ DO (PC/Console Games NET SALES REVENUE SPLIT SEKm & ADJUSTED EBIT MARGIN 4,500 4,000 44% 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Q1 35% Q2 Back catalog sales WELCOME TO WELL A DEAD ISLAND 2 32% FY 21/22 Q3 Source: as of June 30, 2023 ORGANIC GROWTH 38% 26% 26% AEW Q4 New releases sales Q1 FIGHT FOREVER NEW RELEASES 34% Q2 Other 16% FY 22/23 Q3 SYSTEM SHOCK 10% Q4 PRO FORMA GROWTH 20% 3,996 21% Q1 FY 23/24 -Adjusted EBIT, margin % MotoGP 23 2,500 2,000 1,500 1,000 500 0 Q1 Q2 BACK CATALOG SALES SEKM Q3 FY 21/22 Q4 Q1 1990 REMNANT II Q2 Q3 FY 22/23 1,589 11 Q4 Q1 FY 23/24 EMBRACER+ GROUP TOP 10 BACK CATALOG STAR TREK ONLINE DEEP ROCK GALACTIC BORDERLANDS 3 NEVERWINTER Welcome to Bloxburg CHIVALRY RISK CRAIN SNOW RUNNER VALHEIM METRO EXODUS 6#7(PC/Console Games Exciting pipeline ahead for FY 2023/24 PAYDAY 3 ALONE DARK SOUTH PARIS SNOW DAY! OUTCAST A NEW BEGINNING— HOTWHEEL UNLEASHED TURBOCHARGED CITT HOMEWORLD 3 TEARDOWN BRIMESS EMBRACER+ GROUP SPACE MARINE#8{ Project ROI (Contribution / Investment) DO (PC/Console Games >100 13.0 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Source: as of June 30, 2023 5 PROJECT ROI (CONTRIBUTION/INVESTMENT) 10 Quarters since release 15 Average title project data: Sales 294 SEKm, Contribution 207 SEKm and Investment 86 SEKm. 20 SEK 20.3 Bn in net Sales SEK 14.3 Bn in Contribution SEK 5.9 Bn in Total Investments 25 ● DETAILS Based on reported numbers until 30 June 2023 Sample includes projects with sales above 40 SEKm or investment above 40 SEKM (69 projects) ROI = Contribution / Investment Contribution = Gross Profit less marketing expenses from release to 30 June 2023. = EMBRACER+ GROUP Investment Capitalized Development Expenses including follow-on investment. 2.41x in average 1.0x in break even 8#9{ 1,800 1,600 1,400 1,200 1,000 800 600 400 200 DO 0 1.8x Q1 (PC/Console Games INVESTMENTS AND COMPLETED GAME DEVELOPMENT 1.4x Q2 3.4x 2.5x GAMIN Q2 Q3 FY 21/22 Q3 FY 20/21 4.8x Source: as of June 30, 2023 2.6x Q4 3.1x Q1 SEK 10,673m in capitalized development as of Q1 3.6x Q4 2.0x Q1 3.2x 0.8x Q2 Q3 FY 22/23 Value of completed game development Investments in game development Investment in game development as X times completed Games 3.3x Q4 2.1x Q1 FY 23/24 250 200 150 100 50 52 73 Q1 Q2 Q3 FY 20/21 Q4 PROJECT PIPELINE # 56 124 Q1 Unannounced Q2 Q3 FY 21/22 Q4 55 167 Q1 Q2 FY 22/23 Announced Q3 EMBRACER+ GROUP Q4 215 62 153 Q1 FY 23/24 9#100 1,488 19% Q1 883 59% Q1 NET SALES SEKm & ADJUSTED EBIT MARGIN 1,441 22% Q2 Source: as of June 30, 2023 Net sales, SEK m Mobile Games 755 52% FY 22/23 Q2 FY 22/23 UAC, SEK m 1,573 29% Q3 USER ACQUISITION COST 733 47% 1,317 Q3 25% Q4 555 42% -Adjusted EBIT, margin % Q4 1,438 -UAC, % of net sales 29% Q1 FY 23/24 641 45% Q1 FY 23/24 ORGANIC GROWTH -12% million 307 DAILY ACTIVE USERS & MONTHLY ACTIVE USERS (PRO FORMA) 316 312 36 Q1 300 36 DRAGONVALE Q2 FY 22/23 283 34 Q3 PRO FORMA GROWTH MAU -12% DAU 34 Q4 33 Q1 FY 23/24 NET SALES DRIVERS 123 6 4 789 Sudoku.com 1 2 3 977 987 Number Match Pixel Art Blockudoku Art Puzzle EMBRACER+ GROUP Solitaire ESS Jigsaw Puzzle 12 3 X Nonogram.com Super Stylist Easybrain DECA CrazyLabs 10#114,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Wo 2,665 NET SALES SEKm & ADJUSTED EBIT MARGIN 4,146 17% Q1 THE NUMBER Tabletop Games SE Source: as of 30 June, 2023 3,247 ORGANIC GROWTH 9% 14% Net sales Q2 AFE ANARCHY PANCAKES. www.ately meant GRATIA FY22/23 21% Q3 3,074 NEW RELEASES SETUP 8% -Adjusted EBIT margin, % Q4 3,184 KURVAL DAGGER 6% PRO FORMA GROWTH 7% Q1 FY23/24 CORE SET TAR WARS SHATTER INT 12 A Dissit EDITION Spiel des Kennarspiel Jahres Kinderspiel des Jahres SPIEL DES JAHRES 7173-6 8+ 30 Libelod STRONG PIPELINE STAR WARS UNLIMITED 3 PRESTIGIOUS INDUSTRY AWARDS CHALLENGERS! MYSTER asmodee ENTERTAINMENT ERECHOY TICKET TO RIDE LEGENDS OF THE WEST the Legend of the Five Ringe P PALINGЯOM3 INTERACTIVE consor WOTE MANTIS EMBRACER+ GROUP asmodee CATAN 11#129% 466 Q1 ✪ Fo 14% 465 Q2 Source: as of June 30, 2023 Entertainment & Services FY21/22 NET SALES SEKm & ADJUSTED EBIT MARGIN 1,360 8% Q3 811 4% Q4 Net sales 671 3% Q1 MAGIC THE GATHERING UNIVERSES BEYOND 784 1% Q2 OF THE -Adjusted EBIT margin, % THE LORD RINGS TALES OF MIDDLE-EARTH™ FY22/23 2,328 8% Q3 1,487 4% Q4 1,832 15% Q1 FY23/24 LÖRDRINGS RETURN TO MORIA ORGANIC GROWTH 70% DARK HORSE asmodee LIMITER RUN CLOCK OWER 83% PRO FORMA GROWTH JURASSIC PARK EMBRACER+ GROUP CLASSIC GAMES COLLECTION Ⓒ2022 FREE RANGE GAMES GEX TRILOGY 12#13OPERATING SEGMENTS | Q1 PERFORMANCE Market update USD billion GLOBAL VIDEO GAMES MARKET REVENUE FORECAST 2019 193 179 144 Ill 2020 2021 183 2022 Source: as of June 30, 2023 | * Newzoo | NPD / Circana and Asmodee 188 2023 2019-26 CAGR 6% 196 2024 Forecast 205 2025 212 2026 Source: Newzoo GLOBAL MARKET PC * expected to grow by +0.5% in 2023 Mobile * expected to grow by +0.8% in 2023 EMBRACER+ GROUP Console * expected to grow by +7% in 2023 Tabletop ** down in Q1 by -1.3% YoY The European Tabletop market grew across all key product areas 13#14Sol Financial Performance#15FINANCIAL PERFORMANCE | Q1 Financial development 12,000 10,000 8,000 6,000 4,000 2,000 0 3,000 2,500 2,000 1,500 1,000 500 0 76% Q1 19% 76% Q1 Q2 20% GROSS MARGIN DEVELOPMENT SEKm Q2 66% FY 21/22 Source: as of June 30, 2023 Q3 17% FY 21/22 73% Q3 Q4 Net sales Operating Expenses, net DEVELOPMENT OF OPERATING EXPENSES, NET SEKm 25% 65% Q1 Q4 66% Q2 23% Q1 Gross margin FY 22/23 56% 22% Q2 Q3 21% FY 22/23 58% Q3 Q4 29% 10,450 Q4 63% Q1 FY 23/24 Q1 FY 23/24 Operating Expenses, net, as % of sales 1,400 1,200 1,000 800 600 400 200 0 13% Q1 17% Q2 Q1 Marketing, Non UAC 2,500 2,751 2,000 26% 1,500 37% ===||||[imtttef 1,000 500 0 DEVELOPMENT OF MARKETING COSTS SEKM 30% Q2 20% FY 21/22 || Q3 22% FY 21/22 20% Q3 Q4 16% Marketing, UAC - Mobile 20% Q1 Q4 ADJUSTED EBIT SEKM Adjusted EBIT 13% 19% Q2 Q1 10% 22% Q2 FY 22/23 Q3 17% FY 22/23 Q1 FY 23/24 -Marketing, as % of Net Sales 10% Q3 Q4 Adjusted EBIT margin, % EMBRACER+ GROUP 10% 641 Q4 10% 444 1,673 16% Q1 FY 23/24 15#16FINANCIAL PERFORMANCE | Q1 Cash flow and net debt SEKM Adjusted EBITDA Cash Tax Other items Operating Cash flow Net investment in intangible assets Net investment in tangible assets Net investment in financial assets Net Investment Free Cash Flow before WC Change in working capital Free Cash Flow after WC Cash Flow from financing activities Net investment in acquired companies Cash Flow for the period Source: as of June 30, 2023 FY23/24 Q1 2,697 -229 -319 2,149 -1,911 -103 -223 -2,237 -88 -511 -599 120 -392 -871 FY22/23 Q1 1,867 -180 91 1,778 -1,204 -76 -32 -1,312 466 -1,260 -794 5,860 -1,014 4,052 TTM Q1 10,696 -951 -698 9,047 -6,703 -524 -252 -7,479 1,568 -1,413 155 2,760 -9,444 -6,529 SEKM Cash Current investments Current liabilities to credit institutions Current account credit facilities Non-current liabilities to credit institutions Net Debt (-) / Net Cash (+) June 30, 2023 3,952 17 -17,962 -88 June 30, 2022 10,227 1,533 -13,865 -208 EMBRACER+ GROUP March 31, 2023 4,662 18 -683 -17 -2,671 -9,172 -19,560 -16,752 -11,486 -15,581 16#17FINANCIAL PERFORMANCE | Q1 Adjusted EBIT forecast reiterated ■ ■ FORECAST Financial Year 23/24 ADJUSTED EBIT SEK 7,000 - 9,000 million EMBRACER+ GROUP Based on the performance year-to-date, we have increased confidence in our forecast range. In the PC/Console Games segment, a solid earnings growth is expected, driven by the release of more large- and mid- sized, internally developed games during the financial year. Adjusted EBIT within the PC/Console Games segment weighted towards H2, driven by improved ROI for releases in H1 and a strong lineup of new releases in H2. In the Mobile Games segment, a low single-digit organic growth is expected, with gradually stronger growth during the financial year. The Adjusted EBIT margin is expected to be largely in line or slightly above FY 2022/23. In the Tabletop Games segment, high-single-digit organic growth is expected, driven by the trading cards product area, with an Adjusted EBIT margin slightly below FY 2022/23. Earnings seasonality is expected to be more pronounced, driven by cost phasing, timing of new releases and product mix.#18casearen KIERO 47622AZOZIR OLSOFA NSPOISONEIN тојO око TOMASE CX FA SUUR PX Team Bl 58 LAS 120012018 GEDOIZODEN - M Q1 update on the restructuring program ~ 2049147012 Ad 700 Ko 01900120 LOU#19Q1 UPDATE ON THE RESTRUCTURING PROGRAM Today's speaker MÜGE BOUILLON FINANCE WORKSTREAM LEAD, EMBRACER GROUP & CFO, ASMODEE EMBRACER+* GROUP 19#20Q1 UPDATE ON THE RESTRUCTURING PROGRAM Reminder of the objectives Increased cash conversion, improved efficiency and reduced capex targeting : At least SEK 2.9bn annual capex savings Compared to Q4 FY 22/23 run-rate At least SEK 0.8bn annual overhead savings Compared to Q4 FY 22/23 run-rate EMBRACER+ GROUP Net debt below SEK 8.0bn by end of FY 23/24 Including impact of SEK 2.0bn direct share issue completed in July 2023 Measures to be implemented over FY 23/24 reaching full financial run rate impact in FY 24/25.#21Q1 UPDATE ON THE RESTRUCTURING PROGRAM Program focus areas and phases Main Focus Areas being addressed in phases Capex and Opex savings Capital allocation Efficiency improvements 13 June 2023 1st phase 2nd phase 3rd phase Opex and initial phase capex savings Further capex savings and capital allocation initiatives Further capital allocation initiatives and efficiency improvements including consolidation EMBRACER+ GROUP 31 March 2024 Clearly defined structure in place under leadership of Executive Management with the engagement and commitment of Senior Management from across the Group For illustrative purposes, not to scale 21#22Q1 UPDATE ON THE RESTRUCTURING PROGRAM Where we are today Capex and Opex savings Capital allocation Efficiency improvements Good progress being made and tracking towards the targets First round review of Capital Expenditure completed - initial initiatives to reduce number of projects and studios have commenced ● ● EMBRACER+ GROUP Review of Overheads completed - overhead savings initiatives identified within the range of targets communicated Global review of the existing pipeline in progress New group-wide investment greenlighting process designed and being rolled out Increased external funding of internally developed games and potential divestment opportunities being worked on as a matter of high priority Important steps taken to create a new process for game investment and game development progress review. 22#23EMBRACER GROUP | Q1 FY 2023/24 A FEW FINAL REMARKS 23#24LESERS Q&A Until 10:00 CEST#25EMBRACER GROUP +