Embracer Group Results Presentation Deck slide image

Embracer Group Results Presentation Deck

EARNOUTS AND APM UPDATE FY 2022/23 -– derivation of EPS and BS metrics Earn out Derivation Cash obligation included in purchase price Cash obligation classified as personnel cost Total cash obligation Share obligation included in purchase price Share obligation classified as personnel cost Total share obligation GAAP 5,595 SEKM 3,065 SEKM 8,595 SEKM 173 million shares 65 million shares 238 million shares NON-GAAP 8,595 SEKM 0 SEKM 8,595 SEKM 238 million shares 0 million shares 238 million shares To reflect a true and fair picture of the Obligations related to historical acquisitions, obligations treated as personnel liability is included as part of the purchase price under NON-GAAP. Hence, operationally it is more representative to include all of the cash and shares obligations as part of purchase price. Adjusted earnings per share Derivation Net profit Average number of shares, no dilution Dillution Average number of shares, dilluted Earnings per share after full dilution Not adjusted (GAAP) 4,454 SEKM 1,069 million +12 million 1,081 million 4,12 Adjusted (NON-GAAP) 5,515 SEKM 1,252 million +108 million 1,360 million 4,06 Average number of diluted shares under GAAP is lower due to that shares that has not been released to the recipients due to target achievement is excluded. The overall higher share count in NON-GAAP is used to reflect the actual shares outstanding and the maximal amount of shares that could be issued to settle future obligations. Hence the diluted share count is 279 million higher. 42
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