Embracer Group FY2025 Q4 Earnings Release

APRIL 2025 –MARCH 2026
Q4
FY 2025/26
EMBRACER GROUP
FULL YEAR REPORT

Disclaimer
Q4 & FULL YEAR REPORT |FY 2025/26
IMPORTANT INFORMATION –PLEASE READ THE FOLLOWING BEFORE CONTINUING READING
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2

What we cover today
Q4 & FULL YEAR REPORT |FY 2025/26
Highlights
Operating segments
 PC/Console Games
 Mobile Games
 Entertainment & Services
Financial performance
The next step for Embracer Group
Q&A
3

Highlights from Q4 & FY 2025/26
Q4 & FULL YEAR REPORT |FY 2025/26
Source: as of March 31, 2026 | 1 Excludes discontinued operations (Asmodee and Coffee Stain) 4
Q4 | SEKm
FULL YEAR | SEKm
NET SALES
3,931 m
-24% YoY (-10% organic)
ADJUSTED EBIT
360m
(997 m)
(or 1,070 m excl. divested assets)
FREE CASH FLOW
883m
(818 m)
Strong KCD2 performance
 METRO 2039 announced for FY 2026/27
 Robust earnings growth for Mobile and E&S
 Strong free cash flow , supported by working
capital release.
NET SALES
15,906 m
-25% YoY (-3% organic)
ADJUSTED EBIT
905 m
(2,793 m)
(or 1,980 m excl. divested assets)
FREE CASH FLOW
50m
(745 m)
Strong year -end, exceeding the FY forecast
 Successful spin -off of Coffee Stain Group
December 2025
 Proposed separation into two groups:
Fellowship Entertainment and Embracer
(CY 2027).

Operating segments
Magic: The Gathering® | The Hobbit , © & TM Mee under lic. to Wizards of the Coast

33%
-1%
-4%
13% 13%
– 10 % – 5%
0% 5%
10% 15%
20% 25%
3 0% 35%
4 0% 0
1,000
2,000 3,000
4,000
Q4 Q1Q2 Q3Q4
FY 24/25 FY 25/26
Stable catalog performance driven by KCD2, but clearly
lower net sales from new releases YoY
 REANIMAL received positive ratings from critics and
users, delivering a strong release quarter for a new IP
 Solid Adjusted EBIT margin, albeit lower YoY due to
successful release of KCD2 in the comparison quarter
 REANIMAL has sold over 1 million units since release.
Source: as of March 31, 2026
PC/Console Games |Q4
SEKm
Net sales Back catalog
Net sales New releases
Net sales Other
Adjusted EBIT
COMMENTS PERFORMANCE
6
NET SALES DRIVERS | Q4 FY 2025/26
SEK
1,554 m
Growth:
-46% | Organic growth: -37%

0x2x 4x
6x 8x
10x 12x 14x
0 4812 1620 2428 323640
The value of completed games
amounted to approximately
633 SEKm in Q4
 The weighted average ROI of all
titles amounted to 1.8x
7
Source: as of March 31, 2026
PC/Console Games |ROI
COMMENTS
1.0x | Break even
ROI (CONTRIBUTION/INVESTMENT)
1.8x | Average
Times
Quarters since release Based on reported numbers until March 31, 2026 |Sample includes projects with sales and/or investments above 40 SEKm
ROI = Contribution / Investment |Contribution = Gross Profit less marketing expenses from release to March 31, 2026
Investment = Capitalized Development Expenses including follow -on investment |Projects released by divested companies and discontinued operations are excluded Dataset 2016 -2026
No. Projects 107
Investments SEK 11.1 bn
Contribution SEK 19.7bn
Net Sales SEK 27.8 bn

8 For latest release dates please refer to above mentioned publishers | * Also includes titles from the Entertainment & Services segment
PC/Console |Pipeline details
Selected upcoming releases
 Gothic 1 Remake |5 June 2026
 Gothic Classic |28 July 2026
 Gothic II Complete Classic |29 September 2026
Still to be dated
 METRO 2039 | Winter 2026/27
 Warhammer 40 000: Dawn of War IV |CY 2026
 Tomb Raider: Legacy of Atlantis |CY 2026
 Tomb Raider: Catalyst |CY 2027
 Fatekeeper
 Darksiders 4
 The Eternal Life of Goldman
 MARVEL 1943: Rise of Hydra
 Deus Ex Remastered
 And more…
30 Announced titles to-date
*

736
207
10% 11%
12%
14% 14%
0%
5% 10%
15%
20%
25%
3 0% 0
250
500 750
1,000
Q4 Q1Q2 Q3Q4
FY 24/25 FY 25/26
Improved organic growth sequentially, driven by the
successful continued scaling of the game Sled Surfers
 Strong underlying Adjusted EBIT improvement YoY,
excluding Easybrain
 Continued focus on cost efficiency and stable live
operations across the games portfolio
 Top -5 titles
1: Sled Surfers , Glow Fashion Idol, Lamar Idle
Vlogger, Flop House and Party in my Dorm.
Source: as of March 31, 2026 | 1Top -5 revenue generating titles in the quarter
Mobile Games |Q4
SEKm
COMMENTS PERFORMANCE
9
SEK 682 m
Growth: -28% | Organic growth: 2%
NET SALES DRIVERS | Q4 FY 2025/26
Glow Fashion
Idol Party in my
Dorm
Flop House
Lamar Idle
Vlogger
Sled Surfers
Net sales DECA Net sales Easybrain Adjusted EBIT
943

Strong organic growth primarily driven by two strong new
physical releases within PLAION Partners
 The higher Adjusted EBIT driven by the strong organic
growth in PLAION Partners
 Collaboration with internal studios and external partners
around The Lord of the Rings IP continue with strong
momentum.
Source: as of March 31, 2026
Entertainment & Services |Q4
Growth: 23% | Organic growth: 36%
Net sales Adjusted EBIT
COMMENTS PERFORMANCE
Magic: The Gathering® | The Hobbit , © & TM Mee under lic. to Wizards of the Coast
10
SEKm
2%
3% 3%
10%
7%
0%
2%
4% 6%
8%
10%
12% 0
500
1,000 1,500
2,000 2,5003,000
Q4 Q1Q2 Q3Q4
FY 24/25 FY 25/26
SEK 1,695 m

Financial performance

Financial development
Q4 & FULL YEAR REPORT |FY 2025/26
Source: as of March 31, 2026 | 1Excluding Items Affecting Comparability | Excludes discontinued operations (Asmodee and Coffee Stain)
NET SALES & GROSS MARGIN DEVELOPMENT | SEKm DEVELOPMENT OF MARKETING EXPENSES | SEKm
DEVELOPMENT OF OPERATING EXPENSES, NET | SEKm ADJUSTED EBIT | SEKm
12
Net sales Gross profit % 1 Marketing, UAC Marketing as % of Net sales Marketing, non UAC
Operating Expenses (Excl. Marketing) 1 As % of sales Adjusted EBIT Adjusted EBIT %
575 353
237
123
16%
10% 11%
8%
12%
– 1% 1% 3%
5% 7% 9% 1 1%
1 3% 1 5% 1 7% 0
250
500 750
1,000
Q4 Q1Q2 Q3Q4
FY 24/25 FY 25/26
5,172
3,931
75% 68% 65% 55% 61%
0% 2 0% 4 0%
6 0% 8 0% 100% 120%
140% 160% 0
1,000
2,000 3,000
4,000
5,000
6,000
Q4 Q1Q2 Q3Q4
FY 24/25 FY 25/26
1,239
876
24%
36% 32%
24% 22%
0% 1 0%
2 0%
3 0% 4 0%
5 0% 6 0%
7 0% 0
500
1,000 1,500
Q4 Q1Q2 Q3Q4
FY 24/25 FY 25/26
992
360
19% 10% 9% 0% 10% 20%
3 0% 4 0% 50% 60% 70%
80% 90% 100% 0
250
500 750
1,000
Q4 Q1Q2 Q3Q4
FY 24/25 FY 25/26
905m
15,906 m

Cash flow and net cash
Q4 & FULL YEAR REPORT |FY 2025/26
Source: as of March 31, 2026
SEKm FY25/26
Q4 FY24/25
Q4 FY 25/26
FY 24/25
Adjusted EBITDA 1,0511,823
3,756 6,011
Cash Tax -88 -72 -450 -700
Other items –
130
-272 –
260 -833
Operating Cash flow 8331,480
3,046 4,479
Net investment in intangible assets -651 -785 -2,912 -3,387
Net investment in tangible assets -22 -19 -74 -120
Net investment in financial assets -7 -17 -17 -40
Net Investment -680 -821 -3,003 -3,547
Free Cash Flow before working capital
153659
43932
Change in working capital 730
159 7-187
Free Cash Flow after working capital 883818 50745
Cash Flow from financing activities -930 -9,335 -1,505 -12,041
Net cash flow from acquired/divested
companies/ Investments in other companies 209
12,572 -352 16,545
Cash effect IAC costs -103 -116 -273 -383
Discontinued operations -4,666 4955,274
Cash Flow for the period 598,607 -1,585 10,141 SEKm March
31,
2026 March
31,
2025
Cash 4,9577,097
Current liabilities to credit institutions –
792 -545
Non -current liabilities to credit institutions
-366 -1,119
Net Cash(+) / Net Debt (- )
3,799
5,434
Strong Q4 FCF of 883 SEKmdriven by profitability, lower
investments and positive working capital movements
resulting from collections of trade and other receivables.
 Cash Flow for the quarter of 59 SEKm impacted by
repayment of loans and a positive net cash flow from
divestments.
 Full year FCF is positive at 50 SEKm. The comparator
includes 251 SEKmcontribution from divested
companies.
 Available funds at 31st of March 2026 amounted to 6.8
SEKbn .
13

Net cash bridge | Full Year 2025/26
Q4 & FULL YEAR REPORT |FY 2025/26
14 Source: as of March 31, 2026
FY 2025/26 | SEKm
Maintained strong net cash
position after key strategic and
corporate actions completed in
FY 2025/26.
Estimated earn -out obligations
to be paid over the next
five financial years amounts to
approximately 0.5 SEKbn.
COMMENTS
SEKm
5,434
3,046
-3,003
7
-500
-495
105
-729 -66
3,799
FCF after WC 50m
M&A and financial cash flow -1,685 m

SEKmIFRS expense
reported Items not
affecting Cash Flow Items affecting
Cash Flow
Specification of items affecting comparability
Annual impairment of goodwill -5,830 -5,830 0
Write -downs of intangible assets -1,559 -1,559 0
Other IAC related to personnel costs, other external
expenses, other operating income/expenses etc. –
349 -76 -273
Net gains from divestments 303-74 377
Items affecting comparability -7,435 -7,540 105
Specification specific items related to historical acquisitions Personnel costs related to acquisitions 149467-318
Amortization of surplus values of acquired intangible assets -673 -673 0
Specific items related to historical acquisitions -523
-205
-318
Acquisition related expenses for expensed earnouts and planned amortizations of acquisition related surplus values.
Personnel costs related to acquisitions has a positive PnLeffect in Apr -March 2026 due to several changes related to estimations of fulfillment degree and timing of such fulfillment.
1
Adjusted EBIT bridge Full year 2025/26
Q4 & FULL YEAR REPORT |FY 2025/26
15 Source: as of March 31, 2026
Reconciliation of Adj. EBIT FY 2025/26 SEKm
Adjusted EBIT 905
Items affecting comparability -7,435
Specific items related to historical
acquisitions –
523
EBIT -7,053
3 Expenses related to profitability actions 3
Net gains primarily related to divestment of Arc 4
2
4
Non -cash write -downs mainly related to PC/Console segment and
primarily one game development project. 2
Non -cash impairment according to annual impairment process mainly
related to PC/Console operating segment 1

Cash EBIT introduced as key performance measure in FY 26/27
Q4 & FULL YEAR REPORT |FY 2025/26
16 * Includes SEK 7 m of “Other capex” not expectedto recur in future periods
Better reflects cash economics of game development and internal steering
of the business
 Removes timing distortion of accounting treatments for cost capitalization
and amortization
 Supports sustainable capital allocation
 Very close to existing EBITDAC metric
 Uses capital expenditure (CAPEX) instead of depreciation and amortization
and treats lease payments as operating costs
 Will be a core performance indicator going forward. We will provide
forward -looking forecasts on this basis.
COMMENTS Adj. EBIT to Cash EBIT –FY 2025/26 | SEKm
Adjusted EBIT
905
Depreciation & Amortization 2,852
Gross investments in intangible and tangible assets -3,008
EBITDAC 748
Lease payments* -237
Cash EBIT 511

Forecast FY 2026/27
Q4 & FULL YEAR REPORT |FY 2025/26
17 Source: as of March 31, 2026
 For the financial year 2026/27, a Cash EBIT of at least 1.0 SEK billion is forecasted.
 A similar difference in absolute terms between Adjusted EBIT and Cash EBIT as seen in
FY 2025/26 is expected.
 In Q1, we expect a negative Cash EBIT, similar to Q1 last year, with the potential that the
catalog, which is delivering strongly, can offset this.
Cash EBIT of at least 1.0 SEK billion

The next step for Embracer Group
Magic: The Gathering® | The Hobbit , © & TM Mee under lic. to Wizards of the Coast

19
BUILT OVER A DECADE
TESTED THROUGH CHANGE
SHAPED BY HARD LESSONS
READY FOR THE NEXT CHAPTER
LEARNINGS FROM THE PAST

20
NOT TAKEN LIGHTLY, BUT THE RIGHT STEP
SHARPER FOCUS, STRONGER EXECUTION.
LONG-TERM VALUE.
A NEW CHAPTER BEGINS
FOR FELLOWSHIP AND EMBRACER.
SHAPED FOR TOMORROW

Introduction
Magic The Gathering: Tales of Middle-earth, © & TM Mee under lic. to Wizards of the Coast

Two distinctive businesses, two compelling stories
STRATEGY UPDATE | 20 MAY 2026
* includes all studios under THQ Nordic
EMBRACER FELLOWSHIP ENTERTAINMENT
An IP-led entertainment company Home of proven entrepreneurial businesses
*
Magic The Gathering: Tales of Middle -earth, & TM Mee under lic. to Wizards of the Coast

Fellowship Entertainment
Magic The Gathering: Tales of Middle-earth, © & TM Mee under lic. to Wizards of the Coast

OUR STRATEGIC FOCUS
WORLDSTHAT PLAYERS
RETURN TO
AGAIN… ANDAGAIN

OUR PLATFORM
RENOWNED IPs
WORLD CLASS STUDIOS
ONE PUBLISHING ORGANIZATION
DEDICATED LICENSING DIVISION
A PLATFORM FOR BUILDINGONE OF THE GREAT ENTERTAINMENT
COMPANIES OF THE NEXT DECADE AND BEYOND

The Portfolio
STRATEGY UPDATE | 20 MAY 2026
26
OWNED.CONTROLLED .COMPOUNDING .
COMMERCIAL RIGHTS COMMERCIALRIGHTS OWNED
COMMERCIALRIGHTS OWNED OWNED OWNED OWNED

Segment reporting to be aligned to new structure from Q1 FY 2026/27
 Provides early visibility of the two groups financials performance ahead of the separation
 The illustrative financials presented today are subject to audit and potential changes.
Illustrative financials and reporting changes from Q1
STRATEGY UPDATE | 20 MAY 2026
27

Fellowship illustrative historical key financials
STRATEGY UPDATE | 20 MAY 2026
28 Does not include corporate costs which will be reported in a separate Governance segment. Excludes discontinued operations (Asmodee and Coffee Stain).
KEY DRIVERS FY 2025/26
Net sales mainly back catalog driven, with KCD2 as
standout title. The two upcoming Tomb Raider games,
Dead Island 2 and KCD1 also contributed. FX effects
from strengthening SEK impacts negatively.
 Continued capex and opexsavings through to the
current quarter.
 Resilient Cash EBIT margin despite limited new game
releases.
 Capex relative to D&A drives the difference in
absolute terms between Adj. and Cash EBIT.
 As release cadences increase, we expect a steady
improvement in the cash EBIT margins over time. FY 2024/25
SEKm Full Year
Total net sales 5,584
Gross profit 4,641
Opex -1,926
Adjusted EBITDA 2,714
Adjusted EBIT 1,903
Cash EBIT 1,273
Gross margin (%) 83%
Adjusted EBIT margin (%) 34%
Cash EBIT margin (%) 23%
s
Capex -1 ,350
FY 2025/26
Q1 Q2 Q3Q4Full Year
1,0671,084 1,380 862 4,393
908 8901,106 701 3,604
– 465 -504 -488 -365 -1,823
443 386 617335 1,781
233 243482 214 1,172
151 94208 11464
85% 82%80% 81% 82%
22% 22% 35%25% 27%
14% 9%15% 1% 11%
– 271 -271 -390 -307 -1,238
Illustrative historical financials subject to audit and potential changes

COLLABORATION
SHARED TECH, SERVICES
AI: A POWER MULTIPLIER
DEVELOPMENT KEY TENETS

“Where external talent brings a stronger fit,
we will partner, publish, or license. It’s about reaching the widest possible audience with the very best experiences.”
FELLOWSHIP |PUBLISHING & LICENSING

Fellowship studio capabilities & pipeline
STRATEGY UPDATE | 20 MAY 2026
31
Pipeline250+ Open
-world / RPG
175+
Action / Adventure
275+
FPS / Action
175+
FPS / Survival
200+
Co -op FPS / ARPG
200+
Survival Horror
200+
Action / ARPG
10+
Rhythm / Music
70+
Co -dev / Porting
Metro 2039 ■
TR: Catalyst ■ ■ ■
TR: Legacy of Atlantis ■■
Darksiders 4 ■
Dead Island ■
Stage Tour ■
Unannounced ■□
● ●
□ □
■ ●
External Co-development
CAPITAL EFFICIENCY |CREATIVE FOCUS |BETTER GAMES
1,600+ developers
Full development
Preproduction Concept
Support ■
□ ●

A NEW ADVENTURE AWAITS
In full development
MORE DETAILS TO COME

MORE DETAILS TO COME

Fellowship studio capabilities & pipeline
STRATEGY UPDATE | 20 MAY 2026
34
Pipeline250+ Open
-world / RPG
175+
Action / Adventure
275+
FPS / Action
175+
FPS / Survival
200+
Co -op FPS / ARPG
200+
Survival Horror
200+
Action / ARPG
10+
Rhythm / Music
70+
Co -dev / Porting
Metro 2039 ■
TR: Catalyst ■ ■ ■
TR: Legacy of Atlantis ■■
Darksiders 4 ■
Dead Island ■
Stage Tour ■
Unannounced ●●
□ □
■ ●
External Co-development
Kingdom Come ■
Middle -earth RPG □
PIPELINE TO DELIVER GROWTH | INCREASING RELEASE CADENCE
1,600+ developers
Full development
Preproduction Concept
Support ■
□ ●

35 TM MEE. All third-party trademarks are the property of their respective owners.
FELLOWSHIP ENTERTAINMENT
PUBLISHING & DEVELOPMENT LICENSING

Fellowship licensing & IP management
STRATEGY UPDATE | 20 MAY 2026
36
CORE TIER.FULL FRANCHISE ORCHESTRATION
COMMERCIAL RIGHTS COMMERCIAL RIGHTS OWNED

Fellowship licensing & IP management
STRATEGY UPDATE | 20 MAY 2026
38
COMMERCIAL RIGHTS COMMERCIALRIGHTS OWNED
COMMERCIAL RIGHTS OWNED OWNED OWNED OWNED
SPECIALIST TIER. GAME-FIRST RHYTHM, SELECTIVE CATEGORY EXTENSION
CORE TIER. FULL FRANCHISE ORCHESTRATION

Fellowship licensing & IP management
STRATEGY UPDATE | 20 MAY 2026
39
VAULT.UNDERLEVERAGED BRAND EQUITY THAT WE INTEND TO ACTIVATE
OWNED
AND MORE…
COMMERCIAL RIGHTS OWNED OWNED OWNED OWNED
SPECIALIST TIER. GAME -FIRST RHYTHM, SELECTIVE CATEGORY EXTENSION
COMMERCIAL RIGHTS COMMERCIAL RIGHTS OWNED
CORE TIER. FULL FRANCHISE ORCHESTRATION

Fellowship licensing & IP management
STRATEGY UPDATE | 20 MAY 2026
40
VAULT.UNDERLEVERAGED BRAND EQUITY THAT WE INTEND TO ACTIVATE
OWNED
AND MORE…
COMMERCIAL RIGHTS OWNED OWNED OWNED OWNED
SPECIALIST TIER. GAME-FIRST RHYTHM, SELECTIVE CATEGORY EXTENSION
CORE TIER. FULL FRANCHISE ORCHESTRATION
COMMERCIAL RIGHTS COMMERCIAL RIGHTS OWNED

41
PREMIUM IP
A TIGHT INTEGRATED GROUP
CAPITAL EFFICIENCY BUILT-IN
A DEDICATED LICENSING BUSINESS
A PIPELINE TO DELIGHT AND BUILD FANS
CLEAN STRUCTURE. NO LEGACY COMPLEXITY. A CLEAR PATH FOR GROWTH.
OUR STORY
© & TM Mee under
lic. to Rings Scenic Tours and Wingnut Film Productions

Embracer

DECENTRALIZED, WITH LEARNINGS
LEANER AND MORE FOCUSED
RESPECTED, RESILIENT BUSINESSES
SUPPORTED, WHILE KEEPING THE UNIQUE

“Some of the companies within Embracer have been making games, working with games for 30 years.
That’s not luck. It’s culture, craft, and community built over decades.”

Durable businesses with extraordinary heritage
STRATEGY UPDATE | 20 MAY 2026
One of the world’s leading motorsport video game companies
Creators of Killing Floor,
bringing a dedicated community of co-op action fans
Long
-tail engagement and
strong community retention
Heritage of building and
rebuilding beloved franchises
45

More than making games
STRATEGY UPDATE | 20 MAY 2026
Specialism in
physical
distribution
A leading position
in film distribution
across Europe
BOTH GENERATING STABLE, NON-CYCLICAL REVENUE.
46

Where gaming history lives on
STRATEGY UPDATE | 20 MAY 2026
47

Leaner focused group of durable businesses
STRATEGY UPDATE | 20 MAY 2026
Source: as of 31 March, 2026
STRONG GAMING IPs GREAT COMPANIES
* includes all studios under THQ Nordic
*
48

Embracer illustrative historical key financials
STRATEGY UPDATE | 20 MAY 2026
49 Does not include corporate costs which will be reported in a separate Governance segment. Excludes discontinued operations (Asmodee and Coffee Stain).
KEY DRIVERS FY 2025/26
Net sales driven by PLAION Partners, CrazyLabs and
THQ Nordic with successful release of REANIMAL
 Effects from closed and divested assets approx.
SEK -3.7 bn and FX impacts negatively
 Lower margin YoY due to divestment impact from
Easybrain .
 Margins impacted by revenue mix between business
areas
 Significant opexand capex reductions driven by
divestments, closures and restructuring actions
 Solid foundation for future improvements in financial
performance and cash EBIT margins FY 2024/25
SEKm Full Year
Total net sales 15,812
Gross profit 10,222
Opex -6,678
Adjusted EBITDA 3,544
Adjusted EBIT 1,145
Cash EBIT 1,168
Gross margin (%) 65%
Adjusted EBIT margin (%) 7%
Cash EBIT margin (%) 7%
Capex -2,165
FY 2025/26
Q1 Q2 Q3Q4 Full Year
2,1152,557 3,820 3,075 11,567
1,248 1,480 1,7551,703 6,186
– 931 -1,006 -1,122 -934 -3,993
317 474 633 769 2,193
– 156 -189 101201 -43
– 191 -106 196370 269
59% 58% 46%56% 54%
– 7% -7% 3% 7% 0%
– 9% -4% 5%12% 2%
– 465 -534 -397 -373 -1,770
Illustrative historical financials subject to audit and potential changes

50
SELECTIVE M&A
ACQUSITIONS
IF IT STRENGTHENS OUR NICHES
DIVESTMENTS
IF IT INCREASES OUR FOCUS

A COMPELLING STORY
30+ YEARS OF HISTORY
DECENTRALIZED AND DISCIPLINED
PREDICTABLE REVENUE STREAMS
DEEP IP PORTFOLIO, DEEP CATALOG
THE ORIGINAL EMBRACER THESIS —ADJUSTED FOR 2026 AND BEYOND.

Capital allocation &
process ahead
Magic The Gathering: Tales of Middle-earth, © & TM Mee under lic. to Wizards of the Coast

Capital needs and capital distribution
STRATEGY UPDATE | 20 MAY 2026
53 Source: as of March 31, 2026
Share buy -back of 750 SEKm announcedtoday
 To beexecuted over the remaining periodto the end
of the 2026/27 financialyear
 We maintain a healthy net cash position post- the
intended buy -back
 Capital needs of each group to be analyzed in
advance of the intended the spin -off of Fellowship
Entertainment
 Respective boards to decide on appropriate capital
allocation and distribution policy Net cash at 31 March 2026 3,799
– Remaining cash -settled earn -out obligations -464
Net cash after earn -outs 3,335
– Share buy -back announced today -750
Net cash after earn -outs and share buy -back 2,585
SEKm

Process ahead
STRATEGY UPDATE | 20 MAY 2026
54 Source: as of March 31, 2026SPIN
-OFF
INTENDED LISTING
NASDAQ
STOCKHOLM
GOVERNANCE
 CEO Phil Rogers , CFO Müge Bouillon and COO Lee Guinchard remain in Embracer Group positions – and then transition to Fellowship Entertainment
upon spin -off
 An enhanced governance structure for the Embracer business segment is being put in place by Group CFO and Deputy CEO Müge Bouillon
 A recruitment process for a CEO and CFO for Embracer has been initiated, with a plan to have appointments in place well ahead ofthe spin -off of
Fellowship Entertainment.
INFORMATION BROCHURE
CAPITAL MARKETS DAY
EXTRAORDINARY
GENERAL MEETING
NASDAQ LISTING
COMMITTEE DECISION
PROSPECTUS FELLOWSHIP ENTERTAINMENT (PLANNED FOR CY 2027)
EMBRACER GROUP
TIMELINE

EMBRACER FELLOWSHIP ENTERTAINMENT
ICONIC IP
GREATEST GAMES
LICENSING BUSINESS
RECURRING HIGH-MARGIN REVENUE ENTREPRENEURIAL OWNERSHIP
OPERATIONAL FREEDOM
DISCIPLINED EXECUTION
ENDURING BUSINESSESS
Magic: The Gathering® | The Hobbit , © & TM Mee under lic. to Wizards of the Coast

THE DIRECTION WE’VE BEEN BUILDING TOWARDS
OUR FOCUS NOW IS CONSISTENT DELIVERY
Magic The Gathering: Tales of Middle-earth, © & TM Mee under lic. to Wizards of the Coast

Appendix

Group key financials including Cash EBIT, by quarter
STRATEGY UPDATE | 20 MAY 2026
Source: as of March 31, 2026
ACT FY 2025/2026
SEKm Q1Q2 Q3Q4 FY
Net Sales 3,1713,628 5,1763,93115,906
Adj EBIT 18-1 528 360905
EBITDAC -33 1410 371748
Cash EBIT -99 -66 350 326 511
ACT FY 2024/2025
SEKm Q1Q2 Q3Q4 FY
Net Sales 4,673
4,480 6,985 5,17721,314
Adj EBIT 470
378948 9972,792
EBITDAC 386
232 8571,018 2,494
Cash EBIT 298
1627819472,187

Fellowship Entertainment Companies
STRATEGY UPDATE | 20 MAY 2026
Source: as of March 31, 2026
 4A Games
 Crystal Dynamics
 Dambuster Studios
 Dark Horse Media
 Eidos-Montréal
 Fishlabs
 Flying Wild Hog
 Gunfire Studios
 Middle -earth Enterprises
 Redoctane Games
 Warhorse Studios

Embracer Companies
STRATEGY UPDATE | 20 MAY 2026
Source: as of March 31, 2026
 A Thinking Ape
 AlkimiaInteractive
 Ashborne Games
 Aspyr
 Beamdog
 Black Forest Games
 Bugbear Entertainment
 Campfire Cabal
 Clear River Games
 CrazyLabs
 DECA
 Demiurge
 DigixArt
 DPI Merchandising
 Embracer Games Archive
 Experiment 101
 Game Outlet Europe
 Gate21
 Grimfrost
 GrimloreGames
 HandyGames
 Kaiko Games
 Limited Run Games
 Milestone
 PLAION Partners
 PLAION Pictures
 Purple Lamp
 Snapshot Games
 Tarsier Studios
 Tatsujin
 THQ Nordic
 Tripwire
 Vertigo Games
 Voxler
 Zen Studios