December 2019 Presentation DISCLAIMER

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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

 With a leading position on narrative games ( franchise)

 In partnership with industry leaders such as Microsoft, , EPIC Games, Bandai Namco, Capcom, Focus Home Interactive, …

 Developing PC and consoles video games (budgets of €10 to 20m)

 Combining 2 revenue sources: secured publisher fees and royalties ensuring a return on the commercial success of games

 NEW : Contracting directly with distributors () more profitable and secured agreements 4 A DYNAMIC MARKET

GLOBAL VIDEO GAME MARKET 2021 forecast ($bn)1 164.6 152.1 178 138.7 BILLION USD 121.7 2019

+10%

2017 2018 2019 2020

1Source : Newzoo, 2019 Global Games Market Report 5 MORE THAN 40% OF THE MARKET COVERED REPARTITION OF LIFE IS STRANGE PLAYERS

35+ y.o Racing Other 10% 6% Action Strategy 22% 4% 25-35 y.o 30% BY AGE 60% Fighting 18-24 y.o 6% GENRE BREACKDOWN Role-playing Sports OF VIDEO GAME SALES 11% 12% BY GENRE IN 2017 5.3+ million gamers1

First person shooter (FPS) Adventure 26% 9% 40% By Female genre 60% Source: The NPD Group/ Retail Tracking Service/Digital Male Games Tracking Service

1 As of March 2018

6 THE INTERNATIONAL REACH OF GAMING

9% 31% 39% EASTERN EUROPE NORTH EU AMERICA 16% ASIA-PACIFIC Breakdown of 1% Vampyr sales by MIDDLE EAST AFRICA volume in 2018* 2% LATIN AMERICA

* Company source: breakdown of Vampyr’s gamers on STEAM 7 A KEY POSITIONING IN THE VALUE CHAIN

Development CD Projekt SA, Remedy Entertainment Oy, 11 bits Studios, Paradox studios Entertainment, Avalanche Studios, etc.

Contracting directly with distributors Creation of original intellectual property (EPIC Games Store) more profitable and secured agreements

Square Enix, Bandai Namco, Publishers Focus Home Interactive, etc. PUBLISHING

Epic Games Store, Steam, Distributors Playstation Store, Xbox Live, Appe Appstore, Google DISTRIBUTION Playstore, etc.

Apple, Google, Microsoft, Platforms Nintendo, Sony, Samsung TV, Orange Box, etc.

8 A PROVEN TRACK-RECORD AND A STRONG PIPELINE

COPRODUCTION COPRODUCTION PUBLISHING PC COPRODUCTION

Project Project Project 7 9 10

2013 2018 2018 2018/19 2020 2015 2020 + One Shot Episodic One Shot Prequel Episodic Episodic

1.2+ million 3+ million 1+ million Millions Sales volume sales 1 paying gamers2 sales of free trending downloads LiS

1 Excluding downloads on PS+ or/and Game Pass 2 As of June 2017

9 A VIRTUOUS CYCLE Create FRANCHISES

DONTNOD, LIFE is STRANGE, VAMPYR Strong presence on Natural drivers of

ONLINE STORES SALES

Back catalog Each release boosts sales development of prior episodes and the series Products

ACCESSIBILITY

Games mechanics and price (from €5/episode)

10 STRATEGY

MORE GAMES DEVELOPED

MORE VALUE HARNESSED MORE EACH GAME RECURRING SALES

11 1 2019 HIGHLIGHTS : STRATEGIC PARTNERSHIP WITH EPIC GAMES

1 2 3 CONSERVING MINIMUM REVENUE SHARE INTELLECTUAL GUARANTEE TO FINANCE PROPERTY DEVELOPMENT 88% FOR DONTNOD

DONTNOD, A STRONG CAPACITY TO TAKE ADVANTAGE OF NEW MARKET TRENDS

13 &

announced their first-ever collaboration for the development of an original episodic game: TELL ME WHY

OUT SUMMER 2020 , Windows 10 PC et Steam®

14 HIGHLY ACCLAIMED IN THE PRESS

EPISODE 1 EPISODE 2 OUT 27Septth September 27th 2018 18 OUTJanuary 24th January24th 2019 19 OUT 9th May 19 OUT 22th August 19 OUT 3rd December 19

81 79 78 82 84 Metacritic Metacritic Metacritic Metacritic

“A road trip that's worth looking forward to" - "Crafted brillantly" **** - Daily Express “Absolutely Stellar" - Trusted Reviews “Emotionally intense" - "Each episode of Life Is Strange 2 is a delight" - Kotaku 1 Metacritic at 12.08.2019 "Why Life Is Strange 2 is a new Masterpiece of video game" - Les Inrocks 15 A NEW COLLABORATION FOR A NEW GAME IN CO-PRODUCTION

16 2 H1 2019 RESULTS A MIXED BUSINESS MODEL

DONTNOD SECURED ROYALTIES CLASSIC PUBLISHER’s PUBLISHING FEES + CIJV1 OVERLAPPING PUBLISHER MARGIN (Milestones, marketing ...)

CO-PRODUCTION Co-production DONTNOD share DONTNOD royalties DONTNOD royalties

PUBLISHER MILESTONES + CIJV1 PUBLISHER MARGIN

Controlled investments Mutual overlapping Intellectual co-property

SELF-PUBLISHING DONTNOD investments DONTNOD ROYALTIES MINIMUM GARANTEED + CIJV1

Controlled investments Intellectual property

1Video games tax credit

Royalties received by DONTNOD Co-production DONTNOD share Publisher milestones received by DONTNOD Publisher’s revenues 18 STRONG INCREASE OF REVENUE REVENUE + 66.8%

7.8 In €m 4.7

H1 2018 H1 2019

ROYALTIES + 58.0% MILESTONES + 68.7%

● LIFE is STRANGE 2 ● VAMPYR ● TWIN MIRROR 1.3 6.5 ● LIFE is STRANGE ● TELL ME WHY 0.8 3.9 ● REMEMBER ME In €m In €m ● NEW CO-PROD WITH FOCUS H1 2018 H1 2019 H1 2018 S1 2019

19 STRONG IMPROVEMENT IN PROFIT MARGINS

Financial results- French GAAP – €’000 S1 20181 S1 2019

Revenue 4,683 7,810 + 66.8 % - Of which royalties 815 1,288 + 58 %, commercial success of Vampyr Capitalized production 410 1,214 Ramp-up of games in production: Twin Mirror and the Other products 420 107 new co-prod with Focus Total operating income 5,513 9,131 Total operating expenses (excl. depreciation and provisions) (7,625) (9,371) CIJV: video game tax credit 1,952 2,563

2 Operating EBITDA (159) 2,323 EBITDA margin of 29.7% vs 26.2% at 31.12.2018 Depreciation and amortization (447) (1,270) Amortization of the intangible asset Vampyr since H2 2018 Operating EBIT (606) 1,053 Financial income / (expenses) (126) (67) Non-recurring income / (expenses) (276) (422) CIJV (video games tax credit) mechanism including the extension of Twin Mirror development Amortization of goodwill (26) (157) Consolidated net revenue (1,033) 406

1 Consolidated statement including DONTNOD ELEVEN since 01/06/2018 2 EBITDA : Operating income + Depreciation and amortization charges & provisions net of reversals + Video game tax credit (CIJV)

20 STRONG FINANCIAL STRUCTURE

ASSETS (€’000 – French GAAP) 2018 H1 2019 EQUITY & LIABILITIES (€’000 – French GAAP) 2018 H1 2019 1 Fixed assets 7,334 12,102 Equity equivalents 32,974 33,359 Inventories and work in progress - - Provisions 1,672 2,172 Trade receivables 3,993 5,319 Borrowings 2,224 2,142 3 2 Other receivables 4,873 8,585 Trade payables & related accounts 743 799 Cash & cash equivalent 24,415 18,698 Other payables 3,003 6,233 4 TOTAL 40,616 44,705 TOTAL 40,616 44,705

1 Including €2,796 k related to DONTNOD ELEVEN goodwill Including €8,666 k of intangible assets in progress for games of which DONTNOD has all or part of the intellectual property

2 Including €6,675 k of uncashed tax credit (CIJV) as of June 30, 2019

3 Main shareholders' current accounts

Including €2,056 k of deferred income versus €631 k as of 31/12/2018 4 Including €1,950 k of debt relating to the IP acquisition of Twin Mirror

21 CASH FLOW STATEMENT

€’000 – French GAAP H1 2018 H1 2019

Gross operating cash flow (459) 2,283 Gross operating cash flow improvement

Change in working capital 1,608 (3,702) Uncashed tax credit (CIJV) as of June 30, 2019 Cash flow from operating activities 1,149 (1,418)

Cash flow from investing activities (284) (4,195) Investments link to the acquisition of Twin Mirror IP and to the conception phase of the news co-prod with FOCUS Cash flow from financing activities 26,194 (103)

Opening cash 692 24,415

Closing cash 27,750 18,698

Change in cash 27,716 22(5,716)

22 3 OUTLOOK CO-PRODUCTION, A PROVEN BUSINESS MODEL NINTENDO SWITCHTM 29 OCTOBER 2019

Ambition

more than 2,000,000 copies to be sold during the game lifetime

24 25

25 25 2020: 2 NEW RELEASES

TWIN MIRROR

TELL ME WHY

26 26 IN A CHANGING ECOSYSTEM NEW OPPORTUNITIES OPENING UP FOR DONTNOD

New disruptive players to compete with Steam with better royalties for video game studios

Consoles manufacturers with Google and Apple launching their A new generation streaming services of consoles offering even bigger creative field for video game studios!

Interactive fictions available on Netflix, and YouTube Walmart embarking The difference between video games and TV series is collapsing… 27 Appendices SHAREHOLDER INFORMATION

FR0013331212 – ALDNE Share price at 9/12/19: €14,7 8,3% Number of share: 4,673,522 29,7% Market capitalization: Shareholding €69m structure as of 30/06/2019 1,2% Listing sponsor: 2,3% 58,5% Allegra Finance

Liquidity agreement: Gilbert Dupont Société de Bourse

Loskent (99% owned by O. Guilbert) Analysts: Kostadin Yanev SG Gilbert Dupont Cely Finance Ning Godement Douglas Hawes Public Midcap Partner Charles-Louis Planade 29 WWW.DONTNOD-BOURSE.COM

Métropole 19, Bâtiment A 140 rue d’Aubervilliers 75019 PARIS [email protected]