Embracer Group Results Presentation Deck
EARNOUTS AND APM UPDATE
Earnout effects on P&L, BS, CF and dilution
Non-GAAP
Earnout liability 1
Cash/Shares5 outflow
Personnel expenses 0
Personnel liability
IFRS
Earnout liability²
Personnel expenses³
Personnel liability4
Year 1
Cash/Shares outflow
900
0
600
Year 1
600
100
100
600
Year 2
900
0
0
0
Year 2
600
100
200
0
Year 3
900
0
0
0
Year 3
600
100
300
0
Year 4
0
0
0
900
Year 4
0
0
0
900
1. Corresponding to total liability in obligation table at page 21 of the quarterly report
2. Corresponding to contingent consideration presented in note 5 of the quarterly report
3. Corresponding to amount presented in Adjusted EBITDA/EBIT derivation table of the quarterly report
4. Corresponding to liabilities to employees presented in note 5 of the quarterly report
5. Assuming a share price of 1 per share
NON-GAAP
The full value of the earnout is recognized at day 1
No costs is accrued over the PL
In year 4 when the conditions for earnout has been met 900 is
paid to settle the earnout
I
Total cash flow/shares paid for the acquisition sums up
to 1500 (600+900)
IFRS
Only the part of the earnout (part of the PPA) is recognized day 1
A yearly personnel cost of 100 is accrued in the PL (300/3 years)
▪ In year 4 when the conditions for the earnout have been met,
900 is paid to settle the earnout part of the PPA and the
employee liability not part of the PPA.
▪ Total cash flow/shares paid for the acquisition sums up to
1,500 (600+900)
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