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EY Corporate Finance Embracer Group acquires New World Interactive 13 August 2020 DRAFT DEVELOPED BY RELEASE OF CONSOLE VERSIONS IN H1’21 IN COLLABORATION WITH SABER INTERACTIVE ” New World Interactive has shown once again they know what makes for thrilling multiplayer combat ” It’s one of the most harrowing and thrilling depictions of combat I’ve ever seen… It’s a goddamn work of art ” One of the best multiplayer games of the year NWI: Indie-spirited FPS specialist with AAA potential THE THE THE BUSINESS DEAL FUTURE CREATOR OF UNDISCLOSED FPS IPs FOR PC PURCHASE PRICE 3 proprietary titles that have collectively Embracer expects to recoup generated $50m+ in revenues its investment over c.3 years1 Denver, CO Calgary, ON RECURRING GOAL ALIGNMENT HQ Studio PREMIUM GAAS MODEL Keith Warner (CEO) and serves dedicated 10m+ fanbase leadership are retained through quarterly releases Embracer supports and enable EMBRACER’S FIRST NWI’s operating goals CANADIAN STUDIO NEW TITLE IN DEVELOPMENT Canada ranks third in the world for games development2 potential to achieve AAA results in the marketplace SYNERGIES cross-platform releases PARTNERSHIP WITH SABER expand service capabilities to be further exploited going forward realize expansion plan in Canada Note: 1) Total transaction consideration paid up-front in cash and newly issued EMBRAC B shares priced at VWAP20 with clawback rights. 2) Entertainment Software Association of Canada (2019) 3 Passionate and growing team LEADERSHIP Keith Warner Christophe Martin Michael Grills Derek Czerkaski CEO Head of Product Creative Director Head of Production 10 years in Gaming 18 years in Gaming 10 years in Gaming 8 years in Gaming Released titles: 3 Released titles: 20+ Released titles: 30 Released titles: 5 TEAM CALGARY: 42 FTEs DENVER: 6 FTEs ADMIN 14% c.48 87% c.95% FTEs people DEVELOPERS retention NEW STUDIO IN MONTREAL CANADIAN 50+ FTEs EXPANSION NEAR TERM TODAY TARGET 4 History of New World Interactive RELEASE OF CONSOLE VERSIONS IN H1 2021 IN COLLABORATION WITH SABER INTERACTIVE NEXT MAJOR IP IN DEVELOPMENT Metascore Userscore Metascore Userscore Metascore Userscore 74 8.5 77 8.3 78 8.2 2010 2014 2015 2016 2017 2018 2019 2020 2021 Founded in Team doubled in Established Experiment with Expand footprint Denver, CO size ‘New World North’ shift to premium in Canada by Jeremy Blum as from remote to in Calgary, ON GaaS and LiveOps New studio to be a remote team increasingly onsite launched in Montreal presence Add 50+ people in Canada Note: 1) Entertainment Software Association of Canada (2019) 5 Expand and amplify NWI’s capabilities within Saber PARTNERSHIP Bringing NWI’s hit titles Leverage Saber’s backend WITH SABER to new platforms technology RESOURCES Access to development, Enable the bulk of revenues for TO GROW publishing, marketing and other NWI’s games to be captured AND SCALE development resources internally Deep talent pool in Montreal with CANADIAN Growing the Calgary team and reduced cost relative to EXPANSION open a new studio in Montreal other territories 6 Embracer Group is the parent company of businesses developing and publishing PC and console games for the global games market. The group has an extensive catalog of over 170 owned franchises, such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdom Come: Deliverance, TimeSplitters, Satisfactory, Wreckfest, Destroy All Humans!, World War Z and SnowRunner, amongst many others. With its head office in Karlstad, Sweden, Embracer Group has a global presence through its five operative groups: THQ Nordic, Koch Media/Deep Silver, Coffee Stain, Amplifier Game Invest and Saber Interactive. The group has 33 internal game development studios engaging more than 4,000 employees and contracted employers in more than 40 countries..
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