Remedy entertainment

Pareto Securities’ Investor Call 18.5.2020 agenda

1 Market overview 2 Strategy & Remedy now 3 Financials and outlook

Tero Virtala CEO Remedy in a nutshell

• Video game company from Finland, • AAA console and PC games that expand founded in 1995. into long-lasting franchises. • 270 professionals, 27 nationalities, • Immersive worlds and stories with 1 studio based in Espoo, Finland. memorable characters. • Focused, highly polished action gameplay.

1996 2001 2003 2010 2012 2016 2019 Market overview 2019 Global games market: growth CONTINUES

TOTAL MARKET $148.8Bn North America +7.2% YoY $38.4Bn +8.3% YoY Europe, Middle Asia-Pacific East & Africa $71.6Bn $33.4Bn +6.6% YoY +7.1% YoY PC $35.3Bn 24% CONSOLE $45.3Bn Latin +2.8% YoY 30% America +7.3% YoY $5.5Bn +8.8% YoY 2022 market estimated at $189.6Bn +8.1% CAGR MOBILE $68.2Bn 46% +9.7% YoY

SOURCES: NEWZOO GLOBAL GAMES REPORT 2019 & OCTOBER 2019 UPDATE Market has developed favorably for us

TOTAL MARKET GROWS $148.8Bn PlayStation 4 Demand grows for good +7.2% YoY 110 million units games and studios. CONSOLES & PC One With the ongoing industry 47 million units BIG consolidation, there are SCREEN fewer independent AAA

GAMES for HARDCORE GAMERS studios. GAMERS Remedy has developed well to take

CASUAL PLAYERS CASUAL 55 million units advantage of the growing and changing market.

MOBILE & TABLET Remedy’s segmenting of the market

Massive game services • broad feature-set, strong multiplayer- & long-term service AAA FREE-TO-PLAY approach BLOCKBUSTER SERVICES • for wide gamer audience GAME SERVICES • giant budgets

Massive games AAA • broad feature-set BLOCKBUSTER • for wide gamer audience GAMES • large budgets Focused games • focused feature-set and scope, FOCUSED As the industry grows and distinctive theme / uniqueness AAA GAMES • for targeted core & hard-core changes, other smaller, audiences growing segments exist. • medium budgets BIG AA GAMES

Unique smaller games INDIE for niche audiences • GAMES • small budgets

$10 $50 $100

PRICE (OF THE FULL GAMING EXPERIENCE FOR THE CONSUMER) Strategy & remedy now 2019: first phase of the growth strategy successfully completed

STRATEGIC PILLARS 2017–2018: BY THE END OF 2019 WE HAVE:

4 games in development, advancing well. Games that stand out in the market and expand Grown to 250 people + outsourcing + support functions 1 into long-term franchises Developed and released Control in 3 years.

Operating on a Finalized one Crossfire project, working on second. 2 multi-project model Invested into own IPs, technology and ways of working.

Stronger position Shown the first step of the aimed growth, profitably… 3 in the value chain …and maintained a good work atmosphere! Strategic pillars set in 2019

…that guide us for the next 2-3 years. 1 2 3 4 Longer-lasting games Strong business Professionally Empowered in engaging worlds. ownership managed teams and people. of our games. game development. • Supernatural 3rd-person action- • Average review Metascore 84/100. adventure game. • Game of the Year awards from a number of • Released in August 2019 on PlayStation 4, gaming media. & PC. • Developed in 3 years with less than €30 • Game IP created and owned by Remedy. million. • Published by . • Free Photo Mode and Expeditions updates released in October and December 2019. • Revenues based on development payments from the publisher and share • Two paid expansions to be released in 2020. of game sales net revenue. • Steady sales continue with a relatively high average sales price. • PR, marketing and sales activities continue. • Crossfire is one of the world’s most • Operation Frost single player campaign popular online first-person shooters (FPS): has been completed – Remedy's first FPS over 650M registered and 8.5M game. simultaneous players in 80 countries. • Remedy is working on a second Crossfire • Created and owned by . project with Smilegate. • Remedy creates single-player experiences • Microsoft and Smilegate announced at E3 for Crossfire. 2019 that CrossfireX will launch on Xbox One during 2020. • Remedy revenues based on development payments from the publisher and potential • Crossfire X also includes Remedy’s single royalties. player campaign. unannounced 3rd project & vanguard

• Unannounced third project is proceeding well with a team of 20 people. • Vanguard, the fourth project, has a team of 15 people. • The objective of Vanguard is to create a long-lasting service-based multiplayer game combined with selected Remedy features. We now have an internally playable first development version of the game. • Both projects have focused on concepting, market research, designing, building the technical foundation, prototyping, iterating and assessing the biggest risks to have the design and related production plans clear. • Both projects are proceeding to pre-production. • March 2020, we signed publishing • We had multiple concrete partnership agreements on the 3rd unannounced options. Believe that was AAA project and a smaller project with the best for the games and Remedy. Epic Games. • Epic is strong in digital, and already has • For multiple gaming platforms. a global presence. • Epic will fully fund the development. • Aims to shake the publishing business. Has shown they can very successfully • Net revenues shared 50/50. build new business areas.

• Remedy to retain IP ownership. • We are a key partner for them. FINANCIALLY, WE GOT A THIRD STRONG PILLAR

2020 Crossfire and Control revenues continue well. We added a third major pillar – and fourth smaller one.

(Unannounced)

WITH WITH WITH adaptable Specialized development tools • Core engine • World creation tools • Gameplay tools • Graphics engine • Content creation tools • Selected 3rd party tools • Game tech-modules • Storytelling tools

Tailored pipelines & workflows Expert team • Data pipelines & • E.g. digital double • 40 specialist people management character & animation • Support & development power systems, asset library, • Tool & engine also to game teams. global illumination workflows Key Benefits of northlight

• Tech & tools tailored to exact needs of our games. • Industry-leading graphics engine. • Focused developments that enable innovative gameplay.

• World-class games done with small gameplay programmer teams. • Game teams get strong specialized support by discipline experts.

• Additional way to attract world-class programmers to Remedy. Talented and motivated personnel 248 full-time employees 31.12.2019 50% 24% Finnish employees year-on-year growth 50% 258 26 nationalities headcount 14.2.2020 financials & outlook Financial development

35 35% Revenue (M€) EBIT % 31.6 30 30%

25 25% 24.1 % 20.1 20 20.6 % 20% 18.9 % 17.2 15.5 16.4 15 13.7 15% 11.9 10.5 11.7 % 10 9.8 % 10%

4.7 6.1 % 5 3.8 4.7 % 5% 2.4 % 3.0 % 1.7 % 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Key figures

FAS, unaudited H2-2019 H2-2018 FY-2019* FY-2018* Revenue M€ Revenue, 1 000 € 17 846 10 922 31 645 20 146 Revenue growth, % 63.4% 23.3% 57.1% 17.3% EBIT, 1 000 € 5 073 997 6 534 609 31.6 % of revenue 28.4% 9.1% 20.6% 3.0% 57% Result for review period, 1 000 € 4 068 880 5 238 532 growth % of revenue 22.8% 8.1% 16.6% 2.6% Average headcount during review period 243 179 228 169 Result per share, € 0.337 0.073 0.434 0.044 EBIT M€ Balance sheet total, 1 000 € 35 896 28 261 Net cash, 1 000 € 15 876 20 089 Cash position, 1 000 € 19 550 23 028 6.5 Net gearing, % -60.2% -89.9% 21% of Equity ratio, % 73.5% 79.1% revenue Dividend proposal per share, € 0.11 0.10

* AUDITED FY2019 summary & outlook for 2020

• Revenue 31.6 (20.1) M€, +57%. • We expect our revenue and EBIT to grow during 2020. • Operating profit 6.5 (0.6) M€, 21% of revenue. • Majority of revenue and EBIT growth is estimated to materialize during H2-2020. • First phase of the growth strategy successfully completed. • We continue according to our long-term growth plans. • Control launched to a great reception, winning multiple awards. Post-launch sales • Our goal is to have consistent game have settled on a good level. Two paid releases, with an aim to launch at least one expansions to be released in 2020. game or game expansion annually. • Remedy’s single player campaign to be • Even though the launch of our next new released as part of CrossfireX in 2020. game brand will go beyond 2020, we expect 2020 to be a financially good year. • 3rd unannounced project and Vanguard are both preparing for pre-production. Thank you!

Questions?