Publishing 4 1 H1 2020 HIGHLIGHTS NEW EXPERTISE

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Publishing 4 1 H1 2020 HIGHLIGHTS NEW EXPERTISE 2020 H1 RESULTS September 29, 2020 1 DISCLAIMER This presentation does not constitute or form part of any offer or invitation to purchase No express or implicit representation or warranty is given as to the accuracy, fair or subscribe for shares. Neither this document nor any part of it constitutes the basis for presentation, completeness or relevance of the information contained in this document. any agreement or undertaking whatsoever, and shall not be used to support such The Company, its advisors and their representatives shall not be held liable for any loss agreement or undertaking. or damage arising from any use of this presentation or its content, or relating in any way Any decision to acquire or subscribe for shares as part of any future offer may only be to this presentation. The Company is not required to update the information contained taken on the basis of information contained in a prospectus approved by the French in this presentation; any information contained herein is liable to be modified without Financial Markets Authority (Autorité des marchés financiers or AMF) or in any other prior notice. offer document prepared and issued by the Company in relation to such offer. This presentation contains indicators regarding the Company’s targets and development This presentation has been personally provided to you for information purposes only and priorities. These indicators may be identified by the use of the future or conditional is intended to be used solely for the purposes of presenting the Company. tense and forward-looking expressions such as “expects to”, “may”, “estimate”, “intends to”, “plans to”, “anticipates” and other similar expressions. This data is subject to risks This presentation and its content are confidential in nature and may not be copied, and uncertainties that may subsequently result in substantially different actual data. distributed or forwarded to any other person or published or reproduced, directly or These targets and development priorities do not reflect historical data and shall not be indirectly, in whole or in part, by any means, on any medium and for any purpose interpreted as guarantees that the information and data presented will materialize, that whatsoever. You must comply with applicable laws regarding possession of such assumptions will be confirmed or that targets will be achieved. Naturally, these targets information, including laws on insider trading, applicable regulations and may not be achieved and statements or information included in the presentation may recommendations issued by the AMF. Neither this presentation, nor a copy hereof nor prove incorrect, without the Company, its advisors and their representatives being any information that it contains may be directly or indirectly carried to or forwarded or required in any way whatsoever to update such information, subject to applicable distributed in the United States, Canada, Japan or Australia, or to any resident of these regulations. countries. Non-compliance with any of these restrictions may constitute a breach of legal restrictions regarding the offering of financial instruments in the United States, Canada, Japan or Australia. The distribution of this document in other countries may be subject to legal restrictions and persons coming into possession hereof must take note of and comply with any such restrictions. This presentation was prepared by the Company under its sole responsibility. The information presented below has not been independently verified by the Company, its advisors or any other person, and may be significantly updated, supplemented or revised. 2 SPEAKERS Oskar Guilbert Abrial Da Costa Benoît Gisbert-Mora Chairman and CEO Business Development CFO Director Founder - 2008 3 Creator of original intellectual property Bearer of strong and engaging values ​​resonating with our communities of players With a leading position on narrative games (Life is Strange franchise) In partnership with industry leaders such as Microsoft, Square Enix, EPIC Games, Bandai Namco, Capcom, Focus Home Interactive, … Developing PC and consoles video games (budgets between €10-20m) Combining 2 revenue sources: secured publisher fees and royalties ensuring a return on the commercial success of games A strategy that creates more value with mixed contracts: classicals, co-production and self-publishing 4 1 H1 2020 HIGHLIGHTS NEW EXPERTISE New department New department MARKETING PUBLISHING Sophie Filip Xavier Spinat Former Marketing Global Former Production Director Manager Ubisoft Wargaming Expertise allowing DONTNOD to publish more of its own games and leverage the disintermediation trend in favor of development studios. STRONG VALUE CREATION 6 A STRATEGIC LOCATION IN MONTREAL FOR A NEW NARRATIVE IP Luc Baghadoust, Executive Producer Michel Koch, Creative Director Hiring wave Life Is Strange™ members +10 people by the end of 2020 A complete and A highly skilled and Advantages for diversify network creative workforce multimedia companies + 140 studios 15,000 industry Up to 37.5% tax credit for professionals games available in French 7 PROVEN TRACK RECORD AND A ROBUST PIPELINE 2013 2018 2018 2018/19 2020 2020 2015 2021 + One Shot Episodic One Shot Prelude Episodic Episodic One Shot +1.2 million +3 million +1 million Millions of free 2020 2021 Royalties in royalties sales 1 paying sales downloads royalties 2020 & 2021 players2 CLASSIC CLASSIc CO-PRODUCTION CLASSIC CLASSIC CLASSIC SELF-PUBLISHING 3 SELF-PUBLISHING CO-PRODUCTION SELF-PUBLISHING Project Project Project Project 7 9 10 M1 PUBLISHER FEES SOURCES OF ROYALTIES PUBLISHER’S COST RECOUPMENT IN PROGRESS CAPITALIZED PROD. 1 Excluding PS+ and/or Game Pass downloads 2 June 2017 8 3 on PC only 2 2020 H1 RESULTS A MIXED BUSINESS MODEL THAT OPTIMIZES RISK / REWARD DONTNOD ROYALTIES CLASSIC PUBLISHER PUBLISHER FEES + Tax credit1 RECOUPMENT PUBLISHER MARGIN (Milestones, marketing, etc.) CO-PRODUCTION DONTNOD co-production share DONTNOD royalties DONTNOD royalties PUBLISHER MILESTONES + Tax credit1 PUBLISHER MARGIN Controlled investments Mutual recoupment Intellectual co-property SELF-PUBLISHING DONTNOD investments DONTNOD ROYALTIES2 GUARANTEED MINIMUM + Tax credit1 7 M1 Controlled investments PC Intellectual property 1 Video game tax credit (CIJV) 2 Before any third-party payments Royalties received by DONTNOD DONTNOD co-production share Publisher fees paid to DONTNOD Publisher revenue 10 RAMP-UP OF PROJECTS UNDER DEVELOPMENT PUBLISHER -6.6% OPERATING INCOME1 FEES 6,5 6,1 • TELL ME WHY • TWIN MIRROR 2019 H1 2020 H1 + 19.9% ROYALTIES -29.6% 1,3 0,9 • Back catalog revenue • LIFE IS STRANGE 2 and €m 10,8 TELL ME WHY costs recovery in progress 9,0 2019 H1 2020 H1 CAPITALIZED Ramp-up of X 3.2 2 developments: 2019 H1 2020 H1 PRODUCTION 3,8 • TWIN MIRROR • New co-production with Focus 1,2 • Project 7 and M1 fully self- 2019 H1 2020 H1 published 1 Royalties + fees + capitalized production 11 2 Costs incurred on co-produced or self-published games until release PROFIT MARGINS IN LINE WITH PROGRESS ON PROJECTS Income statement - French GAAP - €000 2019 H1 2020 H1 Revenues 7,810 6,993 Ramp-up of games under development: - incl. royalties 1,306 920 - TWIN MIRROR - Project 7, first game fully self-published - incl. fees 6,504 6,073 - new Focus co-production Capitalized production 1,214 3,825 - Project 9 Total operating income1 9,025 10,819 Increase in staff costs +27.4% to support 6 ongoing Other income 107 3 production Total operating expenses (excl. depreciation, amortization and provisions) (9,371) (11,373) Video game tax credit (CIJV) 2,563 2,290 Decline in profit limited despite no game releases Operating EBITDA2 2,323 1,739 Depreciation and amortization (1,270) (909) Continued amortization of VAMPYR (as from June 2018) Operating EBIT3 1,053 830 Financial income/(expense) (67) (11) CIJV provision arrangements Non-recurring income/(expenses) (422) 4 DN11 acquisition in June 2018 Amortization of goodwill (157) (157) Consolidated net income/(loss) 406 667 Consolidated net income up 64% 1 Royalties + fees + capitalized production 2 Operating income + Depreciation and amortization charges & provisions net of reversals + Video game tax credit (CIJV) 3 Operating income + Video game tax credit (CIJV) 12 A SOLID FINANCIAL STRUCTURE ASSETS (€000 - French GAAP) 31/12/2019 30/06/2020 EQUITY & LIABILITIES (€000 - French GAAP) 31/12/2019 30/06/2020 Post-closing event Shareholders’ equity 1 Fixed assets 15,673 18,364 Shareholders’ equity 32,859 33,518 strengthened by €6.7m Inventories and work in progress - - Provisions 2,330 2,393 (July 2020) Trade receivables 3,050 4,679 Borrowings 1,560 4,488 3 2 Other receivables 5,977 3,280 Trade payables 401 402 Cash & cash equivalents 16,955 20,002 Other payables 4,505 5,524 4 TOTAL 41,655 46,325 TOTAL 41,655 46,325 1 Including €2,483k of goodwill of DONTNOD ELEVEN merged over the period Including €13,337k of intangible assets(+28.9%) in progress for games in which DONTNOD holds all or part of the intellectual property rights 2 Including €2,974k in tax credits not received as of June 30, 2020 3 Including €3,570k state-guaranteed loan (PGE) 4 Including €2,655K€ of deferred income 13 CAPITAL INCREASE OF €6.7m TO RAMP-UP THE IMPLEMENTATION OF OUR DEVELOPMENT STRATEGY GEARED TOWARDS INCREASED SELF-PUBLISHING 14 CASH FLOW STATEMENT €000 - French GAAP 2019 H1 2020 H1 Gross operating cash flow 2,283 1,728 Change in working capital (3,702) 2,088 Operating receivables impact Cash flow from operating activities (1,418) 3,816 Cash flow from investing activities
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