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Company Presentation Pareto Gaming Seminar Stockholm March 3, 2020 Presenter: CEO & Co-Founder Lars Wingefors 1

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Company Presentation Pareto Gaming Seminar Stockholm March 3, 2020 Presenter: CEO & Co-Founder Lars Wingefors 1 Company Presentation Pareto Gaming Seminar Stockholm March 3, 2020 Presenter: CEO & Co-Founder Lars Wingefors 1. Introduction STORY OF EMBRACER Net sales, SEKm IPO on Nasdaq Strong IPs First North acquired Stockholm from THQ e.g. 5,413 Founding: All assets incl. Darksiders and MX vs. ATV IPs in JoWooD 4,124 acquired and key people recruited 302 508 8 102 2011 2013 2016 2017 2018 2019 Raised equity capital 240 598 1,448 2,090 before transaction costs: Track record of strong growth and value creation through major acquisitions, well-positioned for further growth 3 2. Business GROUP OVERVIEW SEK 5.5bn Net sales, LTM* Group strategy and M&A SEK 1.1bn Operational EBIT, LTM* HQ, Karlstad 2,970 Headcount* * As per Dec 2019 Two complementary business areas Games Partner Publishing Development, publishing and marketing of games Publishing and distribution of (mainly) games and film Four autonomous sub-groups: Munich 13 offices across the world: Selected partners: Vienna Munich Skövde Stockholm Details on next slides 5 Games business area GAMES – OVERVIEW (1 of 2) Four autonomous sub-groups with different core focus % of net sales 30% 62% 8% (LTM Sep 2019) Development size Small to mid-sized Mid-sized to large Small to mid-sized Fewer, larger own IPs and Creative, focused on games Acquire established IPs and build publishing of external products Core focus making and development, new on them that needs powerful marketing and IPs, teams up to ~20 people. distribution power 22 41 52 141 134 24 15 STUDIOS NORTH Skövde Stockholm 20 internal studios 69 64 21 (December 2019) ## = Approx. headcount 173 70 +3 minority-owned 5 22 29 31 Lavapotion studios 200 7 Note: All studios are 100% owned except Coffee Stain North (60%), Lavapotion (60%) and Bugbear (90% but with an option for the remaining 10%) Note: LTM = Last Twelve Months ending 30 Dec 2019. Other figures refer to as per 30 Sep 2019. 6 Games business area GAMES – OVERVIEW (2 of 2) New forth leg: Amplifier Game Invest Rebranding to clarify core mission within Embracer Group (Jan 2020) Strategy Setting up new studios together with splinter industry veterans, e.g. C77 Acquiring creative, well-renowned studios, e.g. Tarsier Wholly or majority owned studios: C77 Entertainment, River End Games, Tarsier Studios, and Misc Games Majority equity investments in strong game studios, developing new IPs for long term growth 7 Games business area GAMES – NET SALES BREAKDOWNS AND DEVELOPMENT Net sales Owned titles Developers (rest is publishing of 3rd-party IP) (both internal and external) Trailing twelve months (TTM), SEKm % of TTM net sales # 3,328 79% 80% 2,272 2,258 3,045 75% 2,447 2,605 67% 1,828 1,803 1,667 1,484 of which 55% 50% internal developers Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2018 2019 2018 2019 2018 2019 Digital New releases Ongoing development projects (rest is physical) (rest is back catalog) % of TTM net sales % of TTM net sales # 68% 75% 96 63% 86 58% 80 81 58% 77 53% 32% 35% of which 44 18% 45% announced Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2018 2019 2018 2019 2018 2019 8 Games business area GAMES – KEY IP:S 100+ IPs 15+ IPs 5 IPs Exclusive license 150+ IPs SEK 10BN+ 100M+ COPIES in total lifetime sales by 10 key IPs lifetime sales by 10 key IPs 9 Games business area INVESTING FOR ORGANIC GROWTH… Most operational cash flow is invested in game development… …o/w large share is growth investment TTM, SEKm TTM, investments-to-amortization ratio EBITDA Investments in game development EBITDA/investments 2,500 160% 3.5x 1,945 140% 2,000 120% 2.6x 2.5x 2.4x 2.2x 2.2x 1,500 1,377 100% 2.2x 2.2x 80% 71% 1,000 60% 40% 500 20% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 2018 2019 • 80% of EBITDA was invested in game development Jan 2017-Dec 2019 • Investments in game development ~2.2x higher than amortization of released games • 71% of EBITDA was invested in game development LTM Dec 2019 Note: Investments = investments in game development Amortization = amortization of capitalized game development for released games EBITDA = Group EBITDA 10 Games business area …INTO STRONGEST PIPELINE TO DATE Selected pipeline projects Balanced pipeline, SEKm Released games Ongoing game development 2,500 1,749 2,000 1,582 1,280 PC PS4 XB1 PC PS4 XB1 PC PS4 XB1 Switch PC PS4 XB1 1,500 1,115 IP: Own IP: 3rd party IP: 3rd party IP: Own 1,000 394 427 393 410 THQ Nordic Deep Silver THQ Nordic Deep Silver 500 0 Mar Jun Sep Dec 2019 Ongoing game development (not yet released or generating sales) is 4.3x released games, on the balance sheet PC PS4 XB1 PC PS4 XB1 PC PC PS4 XB1 IP: Own IP: Own IP: Own IP: Own # of pipeline projects THQ Nordic Deep Silver Coffee Stain THQ Nordic 96 86 77 80 81 54 51 55 36 of which 44 announced Deep Silver Deep Silver Coffee Stain Deep Silver Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 11 3. Acquisition of Saber Interactive SABER INTERACTIVE AT A GLANCE GLOBAL BUSINESS TRACK RECORD OF OWN/LICENSED IPs • US-based game developer • Founded by Matthew Karch (CEO) and Andrey Iones (COO) in 2001 • Entrepreneur-driven company which has grown organically from 3 to c. 600 internal developers over a 20 year period 20YRS 5 c. 600 30M+ EXPERIENCE STUDIOS DEVELOPERS1 GAMES SOLD FINANCIAL PERFORMANCE PROPRIETARY TECHNOLOGY USD, preliminary figures2 3D ENGINE GAME OPS Enables high-quality game development m 105m 62 rd REVENUE 2019 EBIT 2019 Reduces 3 party dependency Note: 1) Developers including technology R&D personnel. 2) Financials based on management account actual figures for the period 1 January – 30 November 2019 and preliminary management accounts for the period 1-31 December 2019 13 THE NEW COMBINED GROUP Internal development studios 26 5 31 External development studios 58 3 61 Number of IPs 154 91 163 Announced 44 4 48 Development projects Unannounced 52 8 60 Internal 1,237 590 1,827 Developers External 1,021 150 1,171 Revenue 2019 Jan-Dec SEK 5,541m SEK 981m3,4 SEK 6,522m4 3,4 4 Adj. EBIT2 2019 Jan-Dec SEK 1,143m SEK 591m SEK 1,734m Note: Number of studios and Saber Interactive KPIs as per 19 February 2020. Other numbers as per 31 December 2019. 1) Excluding 5 licensed IPs of which 2 through partner. 2) Operational EBIT for Embracer Group and reported EBIT for Saber Interactive. 3) Unconsolidated, non-GAAP numbers. 4) FX rate USD/SEK of 9.4582 14 ACQUISITION HIGHLIGHTS Senior management with highly experienced and efficient development teams Strong profitability with high cash conversion Additional stable and recurring revenue stream from Work-for-hire / royalty based projects Portfolio of recurring titles and a solid and growing pipeline from 2020 and onwards Long term synergy opportunities within publishing, development and IP utilisation Platform for further organic growth and acquisitions 15 TRANSACTION TERMS TRANSACTION TERMS POST DEAL CORPORATE STRUCTURE • Asset deal • Sellers receive a combination of A and B shares, priced at SEK 78.4510 per share1 (40 day volume weighted average price up to and including 18 February 2020) • Founders become two of the largest Embracer shareholders with a combined 11% and 15% of the capital and votes, respectively1 • Lars Wingefors and Erik Stenberg have committed to vote in favour of appointing Matthew Karch to the board of directors • As employees of Embracer, the Sellers receive a fixed salary and a 20 year incentive package based on future performance of Saber Interactive (10% profit share of Saber Interactive’s EBIT above USD 76m per year (accumulated)) • The Transaction expected to close during the second calendar quarter 2020 Saber Interactive USA HQ and Business operations PURCHASE PRICE Development studios • USD 150 million upfront payment • USD 100 million in cash • USD 50 million in equity St Petersburg Sundsvall Minsk Madrid Porto Russia Sweden Belarus Spain Portugal • USD 375 million earn-out payment over six years, of which USD 100 million in cash and USD 275 million in equity Note: 1) Assuming full Earn-out and fully vested shares. 16 EXPERIENCED FOUNDERS AND MANAGEMENT Group management team MATTHEW KARCH ANDREY IONES TIM WILLITS Co-founder and CEO Co-founder and COO Chief Creative Officer +20 years +23 years +24 years industry experience industry experience industry experience Joined in Q3-2019 9 Managed Saber Interactive from a 3- The pulsing heart of Saber person start-up to a large Creative mind behind success stories Interactive, leads operations and international gaming group. Quake, Doom and Rage leads and contributes to creative ideas and instrumental in crafting Saber supervises creative vision concept development Interactive’s vision 17 4. Embracer strategy GROWTH STRATEGY Invest for long-term organic growth Financial model Investments in development should outpace finalised game development . Diversified portfolio/pipeline – reduces operational risk . Develop and expand IP portfolio – including currently dormant IPs . Strong balance sheet – reduces financial risk . Develop and expand internal studios . Reinvests as much as possible of operating cash flow and willingness to issue equity – to capture . Establish new studios with top talent developers attractive organic and acquisitive growth Organic growth . Development projects with external studios opportunities (ROI > WACC) . Continue to consolidate partner publishing market Buy to build Empowering people Continue acquiring great companies that share our .
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