Modern Times Group FY2025 Annual and Sustainability Report

Annual and Sustainability
report 2025
20 25

002 Annual and Sustainability report 2025
STRATEGY SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT ● INTRODUCTION
Content
1. INTRODUCTION
MTG today 004
2025 — A year of transformation 005
2025 — A year of record profitable growth 006
Letter from the CEO 007
The power of gaming 010
One Gaming Village … 011
… powered by its Districts 012
Business model 013
Six reasons to invest in MTG 015
2. STRATEGY
Mission and strategy 017
Our strategy 018
3. OUR DISTRICTS
The Midcore District 025
— Plarium 026
— InnoGames 027
— Snowprint 028
— Hutch 029
— Ninja Kiwi 030
— Futureplay 031
The Casual District 032
— PlaySimple 033
4. SUSTAINABILITY
Corporate sustainability strategy 035
Inclusive and welcoming 037
Climate action and resilience 038
Proud and respectful 039

5. DIRECTORS’ REPORT
Business operations 041
Financial overview 042
Other group information 044
The MTG share 045
Financial policies and risk management 048
Corporate governance report 051
Internal control report 055
Board of Directors 056
Group management 059
6. SUSTAINABILITY STATEMENT
General information 062
Environmental information 079
Social information 090
Governance information 105
Appendix 108
7. FINANCIAL STATEMENTS
Group financial statements 116
Parent company financial statement 121
Group notes 125
Parent company notes 163
Signatures 170
Auditor’s report 171
Auditor’s limited assurance 176
8. OTHER INFORMATION
Definitions 179
Alternative measures 181
Five-year summary 182
Financial calendar 183

Content
The formal annual report comprises pages 41–170. The statutory
sustainability statement includes pages 60–114. The statutory
corporate governance report covers pages 51–59.

INTROD U CTION
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT STRATEGY

004 Annual and Sustainability report 2025
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT MTG today
MTG today
What we do
MTG is a listed moblie gaming group that owns seven game studios
with a portfolio of almost 70 active games and over 2,300 employees
globally. Our focus is on recognizable evergreen, and sustainable
games and IPs. We drive organic growth by enabling our studios to
develop, launch, grow, and run their games, and provide them with
scaled, state-of-the-art commercial services and technology. Based
on disciplined, selective M&A, we also strive to be one of the driving
forces in the ongoing consolidation of the gaming industry.
Creating long-term value
We create long-term value through a combination of organic growth,
a District-based platform approach focused on shared tools and
tech, efficiency and agility, and accretive M&A. We are focused on
capital allocation and have a rigorous and data-driven returns-based
approach to our marketing investments. Our business is highly
cash-generative, which enables us to continue to drive organic
growth through developing and scaling games, to explore accretive
M&A opportunities, and to return capital to shareholders such as
through share buybacks.
Well-positioned for long-term success
The global gaming market is significantly larger than other forms of
entertainment like music and video streaming, which makes gaming
the most relevent form of entertainment today. Our industry is
supported by positive long-term social, technological, and demo –
graphic trends. Gamers come from all walks of life. The demograph –
ics of our industry are relatively evenly spread between men and
women 1, and the average player is 31 years old 2.
Udonis (

)
BCG (

)
We are one of the worlds leading mobile-
first gaming groups with iconic evergreen
games and IPs like RAID: Shadow Legends,
Forge of Empires, Warhammer 40,000: Tacticus,
F1 Clash and Word Search in our portfolio.
We have a mobile-first focus, but you will also
find many of our games on your PC or Mac.
MTG is a global Gaming Village, with specialised
Districts, where talented game makers can
find a home that supports and nurtures passion
for making great games, while providing them
with best-in-class shared services and com-
mercial tools.

005 Annual and Sustainability report 2025
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT 2025 – A year of transformation
The acquisition of Plarium, finalized in February 2025, has enabled
MTG to take the next step in its strategic evolution and provided us
with the scale, IPs, tech, tools and teams to be a leader in mobile-
first gaming. The acquisition added the highly successful, evergreen
game RAID: Shadow Legends to our portfolio and significantly
strengthened our commercial toolkit through the addition of
Plarium’s proprietary tools, like the marketing platform GoGame
and the PlariumPlay publishing platform.
New structure and optimization
From the start of 2026 we implemented a new District model, to
accelerate the creation of relevant shared services and commercial
platforms in each of the Districts. Each of these platforms are
custom designed to provide relevant support based on the specific
needs of the studios within that District (more on page 018). We also
2025 was a fundamentally transformative year
for MTG in which we made significant progress
on delivering on our mission and strategy.
We reported high single-digit organic growth
with strong margins and cash generation,
and announced new medium term financial
guidance. We also closed the acquisition of
Plarium, announced a new District-based group
structure to elevate our centralised platforms,
and undertook a pre-IPO study for PlaySimple.
2025 – A year of
transformation
announced a transformation program for our Midcore District which
will result in over USD 20 million in savings by the end of 2026. We
undertook an IPO preparedness study for PlaySimple, which was
concluded in Q1 2026 and we have now proceeded to appoint
advisors to prepare for a potential public listing of PlaySimple in
India during 2026.
Share repurchase program
On 10 October 2025 we launched a new repurchase program
of up to SEK 400 million. The program will run until 15 May 2026.
The repurchased shares will be cancelled through a reduction
Revenue growth
3—7%
Adj. EBITDA margin
> 24%
Unlevered cash conversion
(steady state)
>60%
Updated medium term guidance
In October, key members of our executive management team and
the newly appointed District leadership presented our updated
vision, strategy, and financial goals at our Capital Markets Day
in Stockholm. Our revenue growth ambitions are based on
expectations for established evergreen titles, recently launched
games, and a strong pipeline of games in development. Strong
margin levels will be supported by a highly disciplined and data –
driven approach to marketing investment as well as direct-to-
consumer initiatives. At the same time, we want to continue to
reinvest a healthy proportion of our profits into future organic
growth and the evolution of our platforms.
of the group’s share capital, subject to approval by the 2026 AGM.
The Board’s intention is to seek shareholder approval for a share
repurchase mandate at the 2026 AGM.
For more information about our sustainability work and progress, please see
page 35 and our Sustainability statement.

006 Annual and Sustainability report 2025
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT OTHER INFORMATION
SEKm2023
Q1
Q2 Q3 Q4
2024
Q1
Q2 Q3 Q4
2025
Q1
Q2 Q3 Q4
750
600
450 300150 0
100
200
300 400
500 100
200
300 400
500
2023
Q1 Q2 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 Q1Q2 Q3 Q4
3,000
SEKm
2, 500
2, 000
1, 500
1, 000
0
2025 – A year of record
profitable growth
Revenue generated
by franchise
Group, SEK million 2025 2024
Plarium 1) 5,385 —
Strategy & Simulation 2,247 2,219
Word Games 2,540 2,359
Racing 669 591
Tower Defense 372 456
Other smaller franchises 365 390
Total revenue 11,579 6,015 1 Consolidated from 1 February 2025
Adjusted EBITDA
We delivered record revenue, profitability and
cash generation in 2025. Our 9% year over year
organic growth was driven from across the
portfolio, and in particular by our Word Games
franchise, Warhammer 40,000 Tacticus, F1
Clash and Heroes of History. RAID: Shadow
Legends also delivered healthy 3% growth
on a like for like basis. Revenue
2025 outlook delivered
Organic growth

9%
MTG reported \b% organic year over year growth for the full year 2025, delivering slightly above its updated 7-\b% guidance range.
Adjusted EBITDA
23%
MTG reported a group adjusted EBITDA margin of
for the full year

, delivering on an outlook for a group adjusted EBITDA operating margin of
–
.
Revenues
11,579
MTG reported total full year revenues of SEK ,\b million, which was in the middle of its provided range of SEK .–. billion.
2025 A year of record profitable growth

007 Annual and Sustainability report 2025
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT
Letter from the CEO

A year of growth and
transformation
Dear shareholders and stakeholders,
2025 was a transformative year for MTG and the group that greets
you today is stronger than ever before. The acquisition of Plarium
was the largest acquisition in our history, significantly expanding
our scale and relevance. We added the hugely successful mobile
RPG RAID: Shadow Legends to our line-up, and onboarded Plarium’s
talented and dedicated team, together with their state-of-the-art,
proprietary, commercial tools and tech. The acquisition was also
a catalyst for us to reshape our organization for the future through
our District model.
In October 2025 we announced the implementation of a new
cluster-based organization, effective from January 2026, establish –
ing a Midcore District and a Casual District within our Gaming
Village. This structure reflects the fundamental insight that midcore
and casual games benefit different platforms, player acquisition
strategies, and approaches to development, content and moneti-
zation. By grouping studios with similar characteristics under
dedicated leadership, we enable faster and more relevant know-
ledge sharing, combined with more efficient decision-making
and resource allocation.
As part of this reshaping we also undertook a transformation
programme for our Midcore District, unlocking material savings,
as well as a pre-IPO study for PlaySimple.
We did all of this whilst also reporting a strong financial year as
we delivered on our raised outlook for the year, reporting full-year
organic growth of 9% and healthy adjusted EBITDA margins of
23% supported by strong operational cash flows. Our total revenues
for 2025 more than doubled to SEK 11.6 billion year over year
following the onboarding of Plarium. Also worth noting that we
achieved all of this despite the significant weakening of the USD
against our reporting SEK currency.
Strong organic growth powered by our studios
Our portfolio had strong positive momentum throughout 2025,
with 6% organic year over year growth in Q1, 9% in Q2, 15% in Q3
and 8% in Q4. This performance reflected growth in both established
evergreen games and fast-growing new titles. I am proud that our
organic growth rate was significantly higher than the expected
growth for the global IAP mobile gaming market. For me, this clearly
demonstrates the quality of our portfolio, combined with the strength
and dedication of our teams.
In our Casual District, PlaySimple continued to impress in 2025,
demonstrating the strength of their data-driven technology platform.
The team successfully grew our Word Games franchise by scaling
new titles, both within the word and adjacent puzzle genres, as well
as by expanding key word games into new markets. The latter one of
many examples of PlaySimple’s focus on AI adoption and implemen –
tation throughout the organisation.
Letter from the CEO

008 Annual and Sustainability report 2025
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT
“ We did all of this whilst also reporting a
strong financial year as we delivered on
our raised outlook for the year, reporting
full-year organic growth of 9% and healthy
adjusted EBITDA margins of 23% supported
by strong operational cash flows.”
In our Midcore District, within our original studios, Warhammer
40,000: Tacticus continued to go from strength-to-strength, deliver-
ing double-digit year over year growth in 2025. Heroes of History,
which turned one in Q3 2025, also had healthy momentum through –
out the year. To round it off, Racing franchise revenues grew by
double digits year over year, on the back of a highly successful
season reset in F1 Clash.
Following the consolidation of Plarium from 1 February 2025, RAID:
Shadow Legends is now the largest game in our line-up. The game
delivered single-digit growth for the full year on a currency-adjusted
like for like basis. This growth reflected the team’s outstanding
live-ops expertise, combined with a series of highly successful
IP partnerships, which have excited our players, and driven both
engagement and monetization. These dynamics culminated in
the game setting an all-time daily revenue record in December 2025.
This momentum has continued into 2026, and I am excited about
the team’s plans and ambitions for the game.
Plarium’s capabilities enable a strategic leap
The onboarding of Plarium added proprietary technology platforms
for analytics, marketing and publishing to our portfolio. These well-
invested tech and tools complemented our existing infrastructure
and capabilities we already had in place within MTG. Now we are
evolving and elevating our tech, tools and capabilities, so that we
can become even better at empowering our studios to do what they
do best – make great games to engage and entertain passionate
players.
New games and DTC monetization are core strategic enablers
Delivering continued organic growth remains one of our core
priorities. We will achieve this through liveops and new content in
our existing evergreen titles, and by launching new games over time.
Our ambition is to have more shots on goal, with a greater chance
of success, by ensuring that our Gaming Districts support our game
studios with highly competitive centralized platforms adapted to
their specific needs. The ongoing transformation of the Midcore
District is designed to put in place a powerful central organization
for our midcore studios, one that can provide them with key
commercial capabilities in areas like data analytics, live-ops and
marketing. PlaySimple has its own proprietary platform in place,
which is already providing us with these key growth capabilities,
with an attractive pipeline of future games and initiatives. PlaySimple
is also ready to provide support for new casual studios as and when
they join the Casual District.
We expect to benefit from ongoing changes to the regulatory
environment, which improve our ability to directly monetize our
players outside of the big mobile app stores. Our DTC revenues
have significantly lower platform fees and therefore have a positive
impact on our profits and margins. Our DTC strategy is focused
on driving monetization from PlariumPlay, webstores connected
to our games, and providing players with direct in-game monetiza –
tion options.
You can already see the positive impact from initiatives that our
studios have implemented on our business, as the proportion of
our revenues generated directly from consumers went up to 32%
in Q4 2025, from 26% in Q3 and 24% in both Q2 and Q1 of the year.
While the main drivers of the recent growth were the rapidly evolving
web shop in Warhammer: 40,000 Tacticus and the launch of direct
payments in RAID: Shadow legends, we have also evolved our DTC
options in titles like F1 Clash and Heroes of History.
AI accelerates strategic execution and increases our competitive
advantage
The rapid pace at which AI is evolving is accelerating our ability to
drive and monetize our current games and develop and launch new
ones. Our studios already use AI across most functions, which helps
our people speed up and improve output in areas like data analytics,
content production, coding, live-ops and marketing. While these
technologies are still new, we are already seeing tangible benefits
across our studios and in our work.

We see AI as a powerful force multiplier. We are convinced that these
tools will continue to improve our team’s abilities to craft better
player experiences and use data in smarter ways. It will also enable
us to develop, deploy and iterate on games faster and more
efficiently. I also believe that we have only seen a fraction of the
benefits that AI tools can deliver, and I am excited about the potential
Letter from the CEO
Letter from the CEO, cont.

009 Annual and Sustainability report 2025
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT
for AI to drive both top-line growth and operational efficiency across
our portfolio in the years ahead.
At the same time, our data, craftsmanship and creativity, mastery of
both proprietary and third-party IPs and our own tech and tools
continue to create tangible long-term advantages and barriers to
entry that are resilient to disruption. By harnessing AI, we elevate our
craft even further, unlocking new possibilities while creativity
remains our ultimate competitive advantage.
M&A continues to be a key strategic focus
M&A also remains firmly embedded in our long-term growth
strategy and our approach remains highly consistent. We focus on
studios with proven, high-quality games, healthy financial trajecto –
ries, experienced teams and cultures that fit with our Gaming Village.
Our goal is to provide future members of our Gaming Village access
to strong, proven commercial tools and platforms. This will enable
each new studio to focus on making and running great games while
benefiting from our commercial strength and expertise. Our current
primary focus is to broaden our casual portfolio through selective
acquisitions that will benefit from PlaySimple’s data-driven technolo –
gy platform and expertise, but we will also explore other exciting
opportunities as and when they present themselves.
We always evaluate M&A both through the lens of relative return on
investment compared to organic investment opportunities, and
relative returns and value creation for our shareholders relative to
capital returns. As we discussed at our Capital Markets Day in
October 2025, we will prioritise value accretive organic and inorgan –
ic opportunities, but will return excess liquidity to shareholders.
We remain focused on driving a sustainable business
In 2025 we made important progress in strengthening the founda –
tions of our sustainability work. We enhanced governance, complet –
ed a double materiality assessment and resilience analysis, and
developed our first climate transition plan, aligned with sci –
ence-based targets. This work provided us with greater clarity on
how sustainability-related risks and opportunities intersect with our
business, which was particularly important during a year when we
onboarded Plarium, took an evolutionary leap in our business model
and continued driving strong organic growth.
2026 will be an important year also from a sustainability standpoint.
We will build on everything we accomplished in 2025 to develop a
new sustainability strategy. This will be fully aligned with MTG’s
business strategy and value creation goals. From 2027 and onwards,
sustainability will be increasingly embedded into our strategic
planning, risk management and decision-making. This integration is
essential to strengthening MTG’s resilience, supporting profitable
growth and meeting the expectations of our players, employees and
shareholders over time. By aligning our ambitions with international
frameworks and stakeholder expectations, we are ensuring that our
business is resilient over the long term as we continue our evolution
as a gaming industry leader.
Looking ahead into 2026 and beyond
In October 2025 we announced several major value creation
initiatives. The first was the transformation program for our Midcore
business, which is currently on track to deliver USD 20 million in
annualized savings by the end of 2026. The second was our ambition
to explore a public listing of our market-leading casual studio
PlaySimple on the Indian stock exchange. On 6 February 2026,
we confirmed the completion of our IPO preparedness study for
Letter from the CEO
PlaySimple and have proceeded to appoint advisors to prepare
for a potential listing in 2026.
As I write this in early 2026, we have good operational momentum
and continue to execute on our strategy and plans. Our new
organizational structure has been implemented and we have strong,
newly established leadership teams in both Districts. We have
multiple positive catalysts ahead of us. These include continued
organic growth, the increase of direct-to-consumer monetization,
future game launches, the potential listing of PlaySimple, and
additional targeted M&A to build out the Casual District.
I am mindful that our operational progress has not yet been fully
reflected in our share price. We will continue to work hard to drive
growth, deliver value and demonstrate the stability and future
potential we have in our business.
2025 was the year we built the platform. 2026 is the year when we
demonstrate what it can deliver. I want to thank our players, our
people across the world, our Board, and our shareholders for your
continued trust and support.
Maria Redin
President & CEO, MTG
Letter from the CEO, cont.

010 Annual and Sustainability report 2025
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT The power of gaming
One of the most popular ways to enjoy games today is on your mobile
phone. Now, more than ever before, people can easily discover
games from a wide array of different genres and gameplay styles,
and download titles that appeal to their specific preferences and
interests. This has resulted in mobile already representing half of the
total revenues generated by the gaming industry. According to the
market research company Newzoo, global revenues from mobile
gaming amounted to USD 108 billion in 2025 (excluding in app
advertisement revenue). We expect our overall industry to grow
annually by low to mid-single digits going forward.
Gaming is also supported by positive tailwinds when it comes
to tech and demographic trends. Our players come from all walks
of life, and the average age of players today is 31. Both men and
women enjoy gaming, and today our industry has a 50/50 gender
split 2, 3. None of our games target children, but we know that nearly
all young people enjoy and play games. Because of this, we expect
our market to be resilient and profitable over the long term. As an
operator of live games with long life cycles across multiple gaming
categories, we are well positioned to continue benefiting from this
vibrant and exciting segment of the overall entertainment market. We
are also benefiting from the rapid adoption of AI across the whole
game development value chain, which is helping us deliver more in
less time and to benefit more from the extensive data we have on
player behavior and spending.
Today, three billion people around the world play and
enjoy games of all kinds. With a market size of nearly
USD 190 billion, this means that gaming is larger
than both video and music streaming put together 1.
The power of gaming
1 Newzoo (2025)2 Udonis (2025)3 BCG (2023)

011 Annual and Sustainability report 2025
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT One Gaming Village …
MTG is an international Gaming Village
where game makers and studios can
find a home that lets them preserve their
unique creativity and expertise and do
what they do best, which is making great
games. We do this by providing them
with powerful shared commercial services
to help them scale and drive performance
in their games.
To succeed in our highly competitive industry, we blend
the passion and creativity of our studios with state-of-the
art technology and tools in key areas like marketing, data i
ntelligence, and publishing. To find the right balance, we make
sure to preserve what makes each of our game studios unique,
while we power up our central services to offer value-add
commercial tech, tools and support. Knowledge sharing is
also a critical part of our success and we actively encourage
increased collaboration between our studios and Districts.
One Gaming Village …

012 Annual and Sustainability report 2025
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT … powered by its Districts
… powered by its Districts
In October 2025 we announced that we would move to
a new operating structure from the beginning of 2026.
The new structure (under which we are operating at the
time of the publication of this report) comprises two business
clusters that we have dubbed Districts of our Gaming
Village – the Midcore District and the Casual District.
Each District is home to game studios that share similar
operating and commercial opportunities, and has a central
organization and platform designed to support the specific –
needs of its studios.
The Midcore District is, from the start of 2026, home to
four of our original studios: Hutch, InnoGames, Ninja Kiwi,
and Snowprint, as well as the Plarium organization,
including Futureplay, that was aquired during 2025.
The Casual District currently contains PlaySimple and
our ambition is to expand this District over time.

013 Annual and Sustainability report 2025
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT Business model
Business model
MTG owns and operates studios and companies
that develop and run mobile-first titles in the
midcore and casual segments of the gaming
market. Our commercial advantage and our
competitive moat consist of our portfolio of
evergreen games, many of which are category
leaders, the experience of our teams, and our
state-of-the-art platforms providing tech and
tools for each of our Districts.
Game development
Our game studios focus on the development and evolution of our
games. Each of our studios explore new concepts and develop,
launch and test new games. Once a new game’s KPIs provide
evidence that it can deliver long-term growth and success, our
studios scale the game with marketing support and focus on content
updates and live-ops to drive player engagement and retention:
● Content updates: Each of our live games periodically receives
both minor and major content updates that evolve the gameplay
and offer players a reason to continue engaging with the title.
Updates range from smaller balance tweaks to major reconfigura-
tions of a game’s economy and features, or significant updates
with large amounts of new content to explore.
● Live-ops: Our live games are also supported by ongoing live-ops
initiatives, with a range of new and recurring events that players
can encounter within our games. Each event engages players with
a key element of the gameplay and also serves as additional
opportunities for in-app purchases (IAP).
Our midcore games are typically designed to retain players over long
periods of time, often over five or even ten years. Our casual games
typically have shorter player lifecycles, but appeal to much wider
player demographics and reach, and can often retain players
through cross-promotion to our own adjacent titles.
Almost all our games are available to consumers on a free-to-play
(F2P) basis. We generate a majority of our revenues through in-game
purchases (77% in 2025). In-app advertising represented 21% of our
revenues in 2025. We also generate revenue through third-party
platforms like Steam, Apple Arcade, and Netflix.
Strong IPs improve discoverability and retention whilst
supporting marketing efficiency
We have a focus on strong IPs. While many of our most successful
games are based on proprietary IP’s, we also partner with leading
global entertainment IPs like the Warhammer 40,000 and Formula 1
Racing.
Some of our most successful games that are based on proprietary
IPs include RAID: Shadow Legends, Forge of Empires, Bloons TD6
and our word games. Our most successful games based on third
party IPs are Warhammer 40,000: Tacticus and F1 Clash. While

014 Annual and Sustainability report 2025
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT Business model
strong IPs do not replace the need for extremely high standards for
game quality, and excellence in all areas of a game’s execution, they
do significantly enhance discoverability, improve player acquisition
efficiency, and support long-term engagement. This positively
contributes to higher retention and monetization.
Our data is a major competitive advantage and moat
Today, we are the #1 listed mobile-first gaming company in Europe
and one of the global leaders in mobile gaming. Our leading position
is based on years of experience in operating games at a scale that
generates deep, proprietary datasets on player behavior, monetiza –
tion, and engagement. Our in-house expertise, data and algorithms
represent a significant competitive advantage and are difficult for
competitors to copy or replicate.
This data underpins our ability to continuously test, iterate and
innovate on our product with real-time feedback. This way, our game
updates and features can be designed in a data driven way to
maximize engagement. This data also enables us to have highly
accurate, proprietary predictive models that assess the return on
each incremental dollar of marketing we invest in a specific time
period, allowing us to optimise group returns.
D2C monetization
A majority of our revenues (68% in 2025) are generated on mobile
platforms through the Apple and Google app stores. Improving our
direct-to-consumer (DTC) offering proportion of our revenues is a
key strategic priority, as revenues generated outside of the leading
mobile app stores have significantly lower platform fees and
contribute positively to the long-term profitability of our business
cial areas such as data analytics, marketing, AI acceleration and
publishing and distribution.
Our Midcore District is elevating the combined capabilities of
Plarium’s proprietary tech and services with those we already had
within the group to offer state-of the art, scaled and highly competi –
tive services for our studios. Our Casual District is leveraging
PlaySimple’s well-invested data-driven technology platform that
currently serves just PlaySimple but is plug-and-play as the District
expands over time.
A flexible business model designed to drive growth and deliver
value
Our business model is designed to generate long-term value for our
shareholders by delivering consistent organic growth, healthy
margins, and strong cash generation. The nature of our business and
the industry mean that we can take more shots on goal as we
continue developing, launching and scaling new games while
maintaining low levels of investments in capital assets. We also have
a high degree of control and flexibility around our costs. The largest
proportion of our costs are related to performance marketing, and
we are focused on ensuring healthy return on advertising levels in
our games.
and our ability to invest in developing, scaling and running future
games.
We are focused on three primary avenues of DTC monetization:
Distributing games through Plarium Play, a proprietary, free, desktop
game launcher; expanding the webstores where we can offer
players in-game currency and resources outside of the game apps;
and through direct payments in our games.
AI empowerment
The rapid evolution and adoption of large language models-enabled
tools and other AI solutions are enabling us to integrate AI across
the entire value chain of game development. AI tools accelerate
prototyping and creative exploration in early-stage concept and
design, enhance coding speed and efficiency through AI-assisted
development, and improve our ability to analyze and act on the large
proprietary datasets our games generate. This helps our studios
move faster from idea to playable product, iterate more efficiently,
and extract greater value from our data, reinforcing the competitive
advantages that come with operating category-leading IPs at our
scale.
Our Districts provide shares services and commercial tech and
tools tailored to our studios’ needs
The acquisition and onboarding of Plarium in 2025 was the catalyst
for our new operating structure with a Midcore and Casual District.
Each of our Districts provides tailored value-add shared commercial
services and tools that are designed to help the District’s studios
develop, launch, scale and drive games with greater agility, efficien –
cy and success. These centralised capabilities cover key commer –

015 Annual and Sustainability report 2025
STRATEGY ● INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT Six reasons to invest in MTG
Six reasons to invest in MTG

Our games generate large amounts of proprietary data, which provides us with significant competitive advantages. It enables us to test, iterate and optimise our in-game content to resonate best with players. It also enables us to use our highly accurate, proprietary predictive models to improve our marketing efficiency, reducing our execution risk and allowing us to
optimize the return on each incremental dollar of user acquisition spend.
Our portfolio contains iconic evergreen IP’s and many of our games are genre or category leaders. Our strongest franchises include RAID: Shadow Legends, Forge of Empires, Warhammer 40:000 Tacticus, and PlaySimple’s word games. While many of our games are based on proprietary IP’s, we also partner with some of the biggest entertainment and sports IPs in the
world.
Gaming is the world’s largest and most relevant form of entertainment with 3.6bn players and a nearly USD 1\b0 billion market size 1. It is bigger than music and video streaming combined. Mobile gaming is growing, and already represents more than half of the total gaming market. We are also benefitting from positive long-term demographic and technological trends including AI
aceleration.
Since 2022 we have generated SEK 11 bn in cash from the divestment of assets and organic cash flow. We have returned over SEK 4 bn directly to shareholders, both directly and through share buybacks, and redeployed a total of SEK 10 bn into new acquisitions, raising SEK 3 bn in new debt in 2025. We are continuously exploring further value creation opportunities, which at present include a potential public listing of PlaySimple in India.
Our strategy is focused on growing our current live games through in-game content and liveops and to continuously launch new games to find the evergreen titles of tomorrow. In addition, DTC monetization and AI are core strategic drivers for our group. We are also focused on expanding the group through accretive and highly selective M&A.
The acquisition and onboarding of Plarium in 2025 was a catalyst for the creation of our new cluster-based operating model with a Midcore and Casual District. Each District provides centralized commercial tools and shared services tailored to the studios within them, to ensure that each studio can continue focusing on doing what they love – running and making games, and to do so in an agile and efficient manner.
We are data-
driven, which
improves exe-
cution accuracy
and reduces risk
We are one of
the clear leaders
in our market, with
category leaders
and iconic IPs
Gaming is the
most relevant
form of enter
–
tainment today
Our strong and
stable cash flows
enable us to
continue driving
long-term
shareholder value
We have a proven
and consistent
stra tegy and clear
goals in place
Evolving our
business to
become faster,
better and more
resilient
3 2 1
6 5 4
1) Newzoo

● STRATEGY INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT ● STRATEGY INTRODUCTION
STRA TEGY

017 Annual and Sustainability report 2025
●STRATEGY INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT
MTG is an international Gaming Village
— the best home for game makers and
entrepreneurs.
Mission and strategy
MISSION
STRATEGY

Steady state unlevered cash conversion
>60%

Adjusted EBITDA margin
>24%

Revenue growth
3–7%
Medium-term targets:
To build an international Gaming Village where game makers
come to benefit from a vibrant ecosystem of tailored shared
tech, tools and knowledge. Here, game makers and entrepre –
neurs can be inspired by a strong community of their peers, and
studios can scale faster and work smarter, without losing their
creative spark and unique culture — building for the long term
while keeping the joy of the game alive.
We drive organic growth through live-ops and in-game
content in our established games and by continuously
launching and scaling new titles. We drive and benefit from syn –
ergies by providing our studios with best-in-class commercial
platforms for scaling and running games. And we boost our
growth through highly selective accretive M&A.
Mission and strategy

3
018 Annual and Sustainability report 2025
●STRATEGY INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT
Our strategy
Our strategy
4
Strategic and accretive M&A
Be one of the drivers of the ongoing
industry consolidation through
highly selective M&A, focused on
popular, evergreen IPs, healthy
financial dynamics with good growth
prospects, experienced founders
and teams, and a strong culture that
aligns with our own.
1
Organic growth
Offer players around the world a
wide range of popular game
franchises from our existing studios.
Continue to en hance our current
portfolio of quality, evergreen IPs
through a mix of live-ops, continu –
ous content updates, and product
innovation. Also develop, launch and
scale new games to con
tinuously
expand our line-up over time.
2
Focus on culture and people
Preserve the unique cultures and
identities of our studios, while
focusing on driving a highly collabo –
rative, agile and entrepreneurial
culture across the group. Our culture
and identity makes game makers
proud to be part of MTG, helps us
retain key talent and helps us attract
new studios and partners.
Value enhancing Districts
Drive commercial and operating
synergies with two platforms,
tailor-made for each District of our
Gaming Village. Provide our studios
with state-of-the art shared services
and commercial tech and tools
enabling them to focus on their
games and execution.

SuSTAINAblE
pREdIcTAblE
GROwTh
OuR GROw Th
FlYwhEEl
Established
games
New games Rising stars
019 Annual and Sustainability report 2025
●STRATEGY INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT Our strategy
Organic growth
Organic growth is the foundation of our long-term success. We have
the tools, platform and processes in place to help our studios do
what they do best – continue to drive the success of their current
titles, and to develop, launch, scale and monetize new games.
Our growth flywheel
Our ambition is to deliver organic growth of between three and
seven percent in the medium term. We will deliver on this target
though active portfolio lifecycle management, which should be seen
through the lens of our growth flywheel. In this flywheel, established
titles provide the foundation for us to develop, launch and grow new
games.

Our popular established titles like RAID: Shadow Legends, Forge of
Empires, and F1 Clash provide scale, stability, strong cash flows and
large amounts of proprietary data. We use this cash flow to fund
innovation, which leverages our proprietary data to optimize iterative
testing and portfolio expansion in our studios’ respective develop –
ment pipeline of new games, which strengthens our competitive
advantage. Once a new game is ready, it enters soft launch and is
made available in several test markets. The studio gathers perfor –
mance data, implements improvements, and optimizes the game.
Once we are happy with a new title’s performance, it enters commer –
cial launch and we begin utilizing our marketing platform to scale the
game by attracting new users.
The cash flows from our established games are used to fund this
marketing spend behind scaling these new growth games. The level
of marketing invested in each title is determined by the performance
data and therefore predicted returns provided by our proprietary
algorithms. Well-performing titles, or our rising stars, are supported
with live-ops and content updates throughout their life cycles. In
turn, some of these well-performing scaling games will become
established titles. Some established games are also actively put into
harvest mode with more limited investment in marketing or new con –
tent.
Sometimes new titles do not manage to get the traction and player
engagement that we are looking for. In such cases, the game teams
evaluate what to do next, which could include reallocating resources
to other games or new development projects.
Direct-to-consumer (DTC) distribution strengthens our business
Today, MTG derives a majority of its revenues from monetizing its
games on the major Google and Apple mobile app stores. Driving
DTC revenues is a key strategic priority for MTG, as it lowers our cost
base, due to reduced fees payable to the app stores, and strength –
ens our profitability and cash flows. Our DTC strategy is focused on
three key elements: the efficient utilization of the proprietary tools
that have been developed by Plarium within PlariumPlay; expanding
webstore offerings to enable players to spend outside of the
app-store environments; and providing players with direct payment
opportunities.
AI is empowering and accelerating everything we do
AI is a key accelerator and a critical enabler of our future success.
Our studios and teams are already using AI extensively across a wide
variety of tasks and processes that include art production, data
analytics, coding and game development and user acquisition. We
believe that providing scaled centralized AI tools, support and skills
can significantly benefit our game studios and our commercial
execution. We are also embracing the curiosity and creativity of our
1

020 Annual and Sustainability report 2025
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teams, who continuously explore and adapt new and rapidly evolving
AI-driven tools and solutions to improve efficiency and output.
In addition, our Midcore District is creating a centre of excellence
around AI, whilst our Casual District is integrating AI at the core of its
technology platform and across its whole casual game development
value chain. This will enable our studios to launch, iterate and scale
games faster and better than ever before.
While we see AI as a significant accelerator, we continue to believe
in the power and excellence of our teams, who build and monetize
multi-year titles of incredible depth and complexity. Our future
success will be built on a foundation of strong, evergreen IPs and
the highly competitive skills of our teams, empowered by AI.
Community
Our games engage passionate player communities across the world.
Our studios actively nurture and engage these communities on
different digital platforms, focusing both on direct engagement with
players through user forums, and on content creators and streamers
on platforms like YouTube, TikTok, and Twitch. The significant brand
awareness and affinity for our games generated in this way help in
lowering our overall user acquisition and retention costs over time.

021 Annual and Sustainability report 2025
●STRATEGY INTRODUCTION SUSTAINABILITY OUR DISTRICTS FINANCIAL REPORTS SUSTAINABILITY STATEMENT OTHER INFORMATION DIRECTORS’ REPORT Our strategy
Strategic and accretive M&A
M&A is key element of our strategy, and our ambition is to add more
high-quality studios and market-leading games and IPs to our
Gaming Village over time. Our Casual District is comprised of one
company today, PlaySimple, and our ambition is to grow this District
through M&A leveraging PlaySimple’s plug-and-play technology
platform. The potential listing of PlaySimple could be an accelerator
of casual M&A in our portfolio. Our Midcore District already has
significant scale with a number of studios, and our centralized
Midcore platform is able to offer game studios value-add capabilities
in key commercial areas. This means that we are able to explore
exciting, accretive midcore opportunities, if and when they arise.
Our M&A strategy is guided by four main principles:
● Strategic fit: We seek to acquire game studios that fit well
strategically within one of our Districts. Our key areas of focus are
evergreen games, a long-term player fanbase, and franchise
potential. We are looking for complementary strengths and
capabilities to help us expand and enhance our existing offering,
as well as game titles that have a high degree of affinity with titles
already in our portfolio
● Strong financials: We target companies with strong financials
and healthy operational KPIs in their games, to ensure that we can
maximize growth potential and long-term success

● Cultural fit: We want the game makers and entrepreneurs who
are part of our Gaming Village to to share our values and culture.
We want new members of our Gaming Village to buy into our
shared vision and belief in our hybrid operating model and ways of
working. We truly believe that we are better together, and that
connecting and empowering our talented people is what makes a
difference
● Synergies: We want to provide value to each company or studio
that joins our Gaming Village. This is why we have a strong focus
on shared services and our Districts’ commercial platforms and
the potential additional value they could bring to any newly
acquired company
Plarium a case in point
The transformative acquisition of Plarium, which was completed in
February 2025, was closely aligned with our M&A principles. RAID:
Shadow Legends is one of the strongest evergreen mobile-first IPs
on the market today. Furthermore, the proprietary commercial tech
and tools developed by Plarium are now critical building blocks in
the creation of our Midcore District and the shared services
organization that is going to power its growth. The acquisition also
let us onboard an outstanding, experienced and passionate team
into our group.
2

3
022 Annual and Sustainability report 2025
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Value enhancing Districts
Our studios are experts at designing, developing and running
amazing, fun games and we want to make sure that they keep their
cultures and identities that make them special. At the same time,
we have conviction that scale and collaboration is a critical competi –
tive advantage in the gaming industry when it comes to commercial
areas like data analytics, marketing, AI acceleration and publishing
and distribution. That is why part of our strategy is to build powerful
shared services platforms that can provide value-add tech, tools
and skills to our games and studios.
When we onboarded P