THE GAME GROUP PLC

Interim Results 26 weeks to 31st July 2009 WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 Lisa Morgan Chief Executive WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 Agenda

 Overview

 Finance and property

 Market update

 Our specialist proposition

 Divisional performance

 Current trading & Outlook

 Summary WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 2 Overview

 Gross margin improvement of 190bps

 Revenues down 7.0% and LFL sales down 16.3%

 Half year PBT* of £14.8m (2008: £36.3m) in line with guidance

 Preowned momentum accelerating

 UK integration completed successfully

 Hardware and software activity to drive second half

*before non-recurring costs and accounting adjustments WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 3 The First Half

 Challenging macro economic environment

 Tough H1 comparables – Hardware installed base growing but at slower rate – More “seasonal” software release schedule

 Maintained our competitive position or outperformed the market

 Focus on delivering our specialist proposition

 Operational readiness for peak WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 4 Ben White Group Finance Director WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 Income Statement

Period ended 31st July (£m) 2009 2008 Turnover 690.8 742.6 Gross margin % 28.9% 27.0% Operating expenses 186.9 164.7 Operating profit* 13.0 35.5

Net interest payable (2.3) (2.7) Pre tax profit 10.8 32.8 IFRIC13 impact on profit 0.3 0.5 Non-recurring costs 3.7 3.0 Pre tax profit before non-recurring and IFRIC13 14.8 36.3 Tax charge (effective rate) 28.3% 30.2%

Dividend per share 1.88p 1.79p

* After non-recurring costs of £3.7m in 2009 and £3.0m in 2008 WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 6 Turnover Analysis - Geographic

Period ended 31st July (£m) 2009 2008 UK 428.3 499.3 France 76.9 78.3 Iberia 105.9 97.1 Scandinavia 19.5 19.7 Australia 24.5 18.5 Czech 2.5 - Total - International 229.3 213.6 Online 33.2 29.7 Group Total 690.8 742.6 WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 7 Turnover and Margin Analysis - Product

Period ended 31st July (£m) 2009 2008 Turnover New hardware 146.7 21.2% 187.9 25.3% New software 282.8 40.9% 318.6 42.9% New hardware & software 429.5 62.1% 506.5 68.2% Preowned 177.3 25.7% 157.8 21.3% Peripheral and other 84.0 12.2% 78.3 10.5% Total 690.8 100.0% 742.6 100.0%

Gross Margin % New hardware & software 23.9% 23.8% Preowned 41.0% 38.1% Peripheral and other 29.6% 25.1% Total 28.9% 27.0% WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 8 Operating Profit Bridge (£m)

-3.9 Annualising -13.3 13.1 Stores Cost -9.6

Sales GM New Stores -5.1 Volume Increase Cost -1.5 38.5 Decrease -1.5 Underlying Head Stores Online Cost Office Costs Costs

16.7

HY 08/09 HY 09/10 Ops Profit Ops Profit WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 9 Income Statement Extract

Period ended 31st July (£m) 2009 2008 Net interest payable (2.3) (2.7) Pre tax profit 10.8 32.8 Tax charge (effective rate) 28.3% 30.2%

Dividend per share 1.88p 1.79p WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 10 Balance Sheet

As at 31st July (£m) 2009 2008 Y/E Jan 2009 Tangible fixed assets 162.2 144.9 165.6 Intangible fixed assets 181.4 175.6 182.3 Stock 166.5 184.0 182.0 Trade and other payables (192.4) (265.3) (349.2) Net cash and borrowing (80.2) (57.8) 81.4 Other 42.1 38.0 22.9 Net assets 279.6 219.4 285.0 WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 11 Cashflow

Period ended 31st July (£m) 2009 2008 Cash inflow from operations 29.9 48.9 Working Capital Movements (139.5) (97.7) Tax and interest (24.1) (15.2) Cashflow generated from operations (133.7) (64.0) Capital expenditure and financial investment (14.0) (21.8) Acquisitions (0.0) (1.6) Dividends paid (12.8) (10.3) Share movements and other (1.1) (2.7) Decrease in net cash (161.6) (100.4)

Half Year net debt (80.2) (57.8) WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 12 Treasury

 Refinanced facilities of £175m over 3 years

 LIBOR + margin of 250-300bps

 Syndicate of five banks, including existing lenders – repaid previous facility (expiry May 2010) – cover working capital requirements – increase financial flexibility for the future WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 13 GAME / Gamestation Synergies

Op costs £16m

Margin £10m Revenue

2008-09 YE 2009-10 FC WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 14 Property Review WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 Property Review Number of Stores opened (including franchises)

Additional 50-60 stores to end of year

97 26 84 77 267 646 670 512 21 96

410 290

649 696 698 410 407

2005- 2006- 2006- 2006- 2007- 2007- 2007- 2008- 2008- 2008- 2009- 2009- 06 YE 07 H1 07 H2 07 YE 08 H1 08 H2 08 YE 09 H1 09 H2 09 YE 10 H1 10 HY

UK International New Stores WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 16 GAME Group Worldwide (at 31 July 2009)

UK & Eire Scandinavia Basingstoke Stockholm 698 stores Sweden: 45 stores Norway: 13 stores Denmark: 9 stores www..se

254 stores 444 stores www.gamestation.co.uk www.gameplay.com www.game.co.uk

Australia Sydney France Czech Republic 109 stores Paris Prague www.game.com.au 198 stores 21 stores www.game.fr www.jrc.cz

Iberia Madrid 275 stores www.game.es - Head office and DC www.game.pt WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 17 Lisa Morgan Chief Executive WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 The Marketplace

Global Market 2008: $46.6bn Europe Market: 2008: $19.8bn

Scandinavia 2008: $1.4bn

UK & Ireland 2008: $6.0bn

France 2008: $4.2bn

Czech Republic Australia 2008: $0.1bn 2008: $1.4bn Iberia 2008: $1.9bn

Source: IDG Report, 2008 WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 19 UK Market Evolution

Third Generation

25.0m consoles sold to date £4,000m

£3,600m

£3,200m Second Generation £2,800m 16.5m consoles £2,400m First Generation sold £2,000m 10.0m consoles £1,600m sold

£1,200m

£800m

£400m Console Peripherals £0m PC games 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Chart Track UK market value including hardware, software and peripherals WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 20 Evolution – Third Generation

= Hardware = Software

£m PS3 PS3 (SW) launch £425 (SW)

XB360 (SW) Wii launch £179 PS3 (HW) £249 360 launch £279 Wii (HW) £179

XB360 (HW) £199

2004 2005 2006 2007 2008 65% 56% 55% 45% Hardware mix WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 21 UK Customer Evolution

1st Generation 2nd Generation 3rd Generation

88% 12% 75% 25% 64% 36%

1995 2000 2005 2008

Source: GAME reward card WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 22 Our Specialist Offering WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 23 Preowned

 Increased revenues to £177.3m from £157.8m

 25.7% of turnover (H1 2008: 21.3%)

 Increased gross margin from 38.1% to 41.0%

 Our value proposition

 Proven growth strategy in place WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 24 UK & Ireland Stores

 No. 1 in market

 Change in competitive landscape

 Successful dual brand strategy

 Integration complete

 Delivering operational efficiency WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 25 International Stores

 Revenues up 7.3%, lfl down 15.5%

 Challenging markets in all territories

 Store portfolio increased by 24 to 670 stores

 Operational efficiency is key WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 26 eCommerce

 Revenues up 12.1%

 www.game.co.uk www.gamestation.co.uk www.gameplay.co.uk

 6 transactional sites internationally

 Using online to support stores

 Extending eCommerce reach

 Investment in eCommerce proposition (£5m) WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 27 Online Initiatives

 Establish our role as Aggregator of Choice

 Online gaming

 Digital distribution

 Community interaction

 Mobile and new applications

– Mobile / iphone store finder WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 28 Current Trading and Second Half Expectations

 Group sales down 9% and lfl sales down 16.6%

 Prior year comparative softening

 Hardware price cuts and new models

 Strong Christmas software line up WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 29 New Software in H2 WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 30 Summary and Outlook

 Well positioned to take advantage of: – Wider installed base – Hardware price cuts – Exciting product line up

 Excellent momentum on preowned

 Improved gross margin guidance

 Ongoing cost control disciplines

 Leveraging specialist proposition WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216 31 Q&A WorldReginfo - af42532c-e4da-4747-8abb-cf9d75078216