Company Description │ June 2021 Listing of shares on Nasdaq First North Iceland This Company Description (hereafter referred to as the “Company Description”) has been prepared by and under the responsibility of Fly Play hf., reg. no. 660319-0180, Reykjavíkurvegur 76, 220 Hafnarfjörður, an Icelandic public limited company (hereinafter referred to as the “Company”, “Play” or the “Issuer”) in relation to a proposed listing of Play´s shares on the Nasdaq First North Growth Market Iceland (“First North” or “First North Iceland”), and has been reviewed by Nasdaq Iceland hf., reg. no. 681298-2829, Laugavegi 182, Reykjavík, Iceland, as the operator of First North Iceland (the “Exchange”). The listing of shares on First North Iceland completes a financing round by Play, consisting of two separate offerings of shares. In March 2021 Play launched the first part of the round of financing, intended and structured to secure sufficient working capital for at least the first year of operation. Play initiated a private placement with Arctica Finance hf. with the goal to raise USD 35 million. The private placement was successfully completed in April with a total transaction size of USD 47 million in new equity. The private placement attracted strong support and interest and was oversubscribed at the subscription price. In parallel with the issuance of this Company Description, the Company will launch the second part of the round of financing, an IPO in two separate tranches, offer book A and offer book B (together the “IPOs” or “Offerings”), with the aim to raise around ISK 3.9 – 4.3 billion in new equity. Offer book B, structured for larger investors, is expected to raise up to ISK 2.84-3.16 billion. Offer book A is limited in size to the equivalent of EUR 8,000,000 in ISK, around 1.15 billion ISK on the current exchange rate. The subscription period in the Offerings is scheduled to open on 24 June and the Offerings are expected to close on 25 June 2021, and the shares subsequently admitted to trading on the First North market. The admission to trading and listing of shares in Play completes the financing and funding of the Company´s operations given its current growth plan and market conditions. This Company Description does not constitute a prospectus under the Act on Prospectus for Securities When Offered to the Public Offering or Admitted to Trading on a Regulated Market no. 14/2020 or Regulation (EU) 2017/1129 of the European Parliament and of the Council. Arctica Finance hf. Certified Adviser to Play in relation to its listing on First North Iceland + Nasdaq First North Disclaimer Nasdaq First North Growth Market Iceland is an MTF, as defined in EU legislation (as implemented in national law), operated by Nasdaq Iceland hf. Issuers on Nasdaq First North Growth Market Iceland are not subject to all the same rules as issuers on a regulated main market, as defined in EU legislation (as implemented in national law). Instead they are subject to a less extensive set of rules and regulations adjusted to small growth companies. The risk in investing in an issuer on Nasdaq First North Growth Market Iceland may therefore be higher than investing in an issuer on the main market. The Exchange approves the application for admission to trading. + TABLE OF CONTENTS 1 General Information ...................................................................................................................................... 5 1.1 Reasons for Trading on First North ............................................................................................................... 5 1.2 Important Information for Investors .............................................................................................................. 5 1.3 Dating of Information and Updates ............................................................................................................. 6 1.4 First North Iceland and Certified Adviser .................................................................................................. 7 1.5 Market Making .......................................................................................................................................................... 7 1.6 Taxation Issues in Iceland .................................................................................................................................. 8 1.7 Liability Statement of the Board of Directors .......................................................................................... 8 1.8 Liability Statement of Certified Adviser ...................................................................................................... 8 1.9 Potential Conflicts of Interest .......................................................................................................................... 8 1.10 Investor Examination and Analysis ............................................................................................................... 9 2 Risk Factors ..................................................................................................................................................... 9 2.1 Equity Investment Risks ...................................................................................................................................... 10 2.2 Issuer and Market Specific Risks ................................................................................................................... 11 3 Economic and Market Overview ............................................................................................................... 21 3.1 Overview..................................................................................................................................................................... 21 3.2 Competitive Situation ........................................................................................................................................ 23 3.3 Principal Markets.................................................................................................................................................. 23 4 Business Description ................................................................................................................................... 26 4.1 General Overview and History ...................................................................................................................... 26 4.2 Business Structure and Strategy ................................................................................................................. 30 5 Corporate Governance............................................................................................................................... 38 5.1 Articles of Association ....................................................................................................................................... 38 5.2 Board of Directors ............................................................................................................................................... 38 5.3 Management Team ............................................................................................................................................. 40 5.4 Bonus schemes and share based incentive programs .................................................................. 42 + 5.5 Potential Conflict of interests and Related Party Transactions ................................................ 43 5.6 Involvement in bankruptcy, liquidation or fraud related convictions .................................... 43 6 Share Capital and Shareholders ............................................................................................................. 44 6.1 Share Increase Allowances and Options ............................................................................................... 45 6.2 Share Ownership by Stakeholders ............................................................................................................. 46 6.3 Transferability of the Company’s Shares ............................................................................................... 47 6.4 The Offerings .......................................................................................................................................................... 47 6.5 The Admission and Listing of Shares ........................................................................................................ 48 7 Financial Overview ...................................................................................................................................... 50 7.1 Working Capital Statement ........................................................................................................................... 50 7.2 Significant Developments After the Latest Reporting Date ......................................................... 50 7.3 Income Statement ................................................................................................................................................ 50 7.4 Balance Sheet ......................................................................................................................................................... 51 7.5 Capitalisation and Indebtedness ............................................................................................................... 52 Appendices ............................................................................................................................................................