Embracer Group FY2024 Q3 Earnings Release

OCTOBER –DECEMBER 2024
Q3
FY 2024/25
EMBRACER GROUP
INTERIM REPORT

Disclaimer
Q3 FY 2024/25
IMPORTANT INFORMATION –PLEASE READ THE FOLLOWING BEFORE CONTINUING READING
This presentation (the “Presentation ”) has been prepared by Embracer Group AB (“Embracer ” or the “Company”) and
is provided for information purposes only. By attending a meeting where this Presentation is presented or by accessing
information contained in or obtained from the Presentation, including by reading this Presentation, you agree to be
bound by the following limitations and notifications.
This Presentation may not be used for, or in connection with, any offer to, or solicitation by, any person in any
jurisdiction or under any circumstances. This Presentation does not constitute or form part of, and should not be
constructed as, any offer, invitation, solicitation or recommendation to purchase, sell or subscribe for any securities in
the Company in any jurisdiction and does not constitute any form of commitment or recommendation on the part of
Embracer or anyone else. The Presentation is intended to present background information on the Company and is not
intended to provide complete disclosure. Readers of the Presentation should not treat the contents of this Presentation
as an advice relating to legal, taxation, investment or any other matters. Neither the Presentation, nor any part of it, shal l
form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This presentation is not
a research report. The Company and its affiliates, directors, advisors, employees and representatives disclaims any and
all liability for direct and indirect consequences resulting from decisions which are wholly or partly based on information
in the Presentation. The Presentation does not constitute and should not be considered as any form of financial opinion,
advice or recommendation by the Company or anyone else.
This Presentation is not a prospectus in accordance with the (EU) 1129/2019 Prospectus Regulation and has not been
approved or reviewed by any governmental authority or stock exchange in any jurisdiction in the EEA. Nor has the
Presentation been reviewed or approved by any other regulatory authority or stock exchange globally.
The distribution of the Presentation in certain jurisdictions may be restricted by law and persons into whose possession
the Presentation comes should make themselves aware of the existence of, and observe, any such restriction. The
securities of the Company have not been and will not be registered under the U.S. Securities Act, as amended (the
“ Securities Act ”), or under any of the relevant securities laws of any state or other jurisdiction of the United States and
the Company does not intend to make a public offer of its securities in the United States.
Certain information contained in this Presentation (including market data and statistical information) has been obtained
from various sources prepared by other parties (including third party sources) that the Company has deemed to be
relevant and trustworthy. Moreover, certain information in the Presentation is based on assumptions, estimates and
other factors that were available to the Company at the time of when the information was prepared. Such assumptions,
estimates or other factors, either made by the Company or by third parties, may prove to be, or become, incorrect, thus
rendering the information in the Presentation to be inaccurate, incomplete or incorrect. No representation or warranty, express or implied, is made by the Company or any of its affiliates, directors, advisors, employees and representatives
as to the accuracy, completeness or verification of any information contained in this Presentation. The Company has not
made any independent review of information based on public statistics or information from any independent third
parties regarding the market information that has been provided by such third party, the industry or general
publications. Financial information contained in the Presentation is not necessarily directly extracted from the
Company’s accounting systems or records. No information in the Presentation has been independently reviewed or
verified by the Company’s auditors unless explicitly stated otherwise. In addition, certain financial information may be
preliminary and has yet not been finalized, be forward
-looking, or subject to review/audit from the Company’s auditors.
Accordingly, such preliminary financial information may change. Furthermore, certain financial information in this
Presentation has been prepared for illustrative purposes only and is solely intended to describe the hypothetical
situation of if the acquired companies were part of Embracer for the periods referred to in the Presentation.
Statements in this Presentation, including those regarding the Company’s and its industry’s possible or assumed future,
the Company’s business strategies, its expansion and growth of operations, future events, objectives, trend projections
and expectations, or other performance of the Company or its industry, constitute forward -looking statements. By their
nature, forward -looking statements involve known and unknown risks, contingencies, uncertainties, assumptions and
other factors as they relate to events and depend on circumstances that will or may occur in the future, whether or not
outside the control of the Company. No assurance is given that such forward -looking statements will prove to be
correct. Prospective investors should not place undue reliance on forward -looking statements and they speak only as of
the date of this Presentation. Past performance does not guarantee or predict future performance. Moreover, the
Company does not undertake any obligation to review, update or confirm expectations or estimates or to release any
revisions to any forward -looking statements to reflect events that occur or circumstances that arise in relation to the
content of this Presentation unless required by law or Nasdaq Stockholm’sGrowth Market’s Rulebook for issuers. The
Company and its affiliates, directors, advisors, employees and representatives expressly disclaim any liability
whatsoever for such forward -looking statements.
This Presentation as well as any other information provided by or on behalf of Company in connection herewith shall be
governed by Swedish law. The courts of Sweden, with the District Court of Stockholm as the first instance, shall have
exclusive jurisdiction to settle any conflict or dispute arising out of or in connection with this Presentation or related
matters.
2

Q3 Interim Report FY 2024/25
HIGHLIGHTS FROM Q3
3 Source: as of December 31, 2024
Adjusted EBITSEK
1,175 m +
7
%
ORGANIC GROWTH
-11 %
YOY GROWTH
Kingdom Come: Deliverance II
successfully released after the quarter
Healthy organic growth, as well as an
improved margin in PC/Console in Q3
Highlights Q3 FY 2024/25
Free cash flow
SEK
907 m ( SEK 260m)
A strong financial position post –
divestment of Easybrain
Q3 FY 2023/24
-3 %
YOY GROWTH
Continued focus on operational
efficiency and unlocking hidden value
Successful spin- off and listing of
Asmodee on Nasdaq Stockholm
Net Sales Group
SEK
7,364m

Operating segments
1.

5

6

7

8

PC/Console Games
9 Source: as of December 31, 2024
NEW RELEASES
BACK CATALOG SALES | SEK million NET SALES REVENUE SPLIT SEK million & ADJUSTED EBIT MARGIN TOP 10 BACK CATALOG
Operative Groups: 5 | Internal Headcount: 5,170 | Internal Studios: 64
16% 14%
21%
0% 10%
20% 3 0%
4 0% 50%
60% 0
500
1,000 1,500
2,000 2,5003,000 3,500
4,000 4,500
Q3Q4 Q1Q2 Q3Q4 Q1Q2 Q3
FY 22/23 FY 23/24 FY 24/25
Back Catalog Sales New Releases Sales Other Adjusted EBIT Margin, %
NET SALES
2,603
ADJ. EBIT
551
0
500
1,000 1,500
2,000 2,500
Q3Q4 Q1Q2 Q3Q4 Q1Q2 Q3
FY 22/23 FY 23/24 FY 24/25

02 4
6 8
10 12 14
16
0
510 1520 25
Project ROI (Contribution / Investment)
Quarter since Release
PC/Console Games
10 Source: as of December 31, 2024
•Based on reported numbers until
December 31 , 2024
• Sample includes projects with sales
and/or investments above SEK 40
millions (98 projects).
• ROI = Contribution / Investment
• Contribution = Gross Profit less
marketing expenses from release to
December 31, 2024
• Investment = Capitalized Development
Expenses including follow -on
investment
• Projects released by divested
companies are excluded.
DETAILS
SEK 25.9 bn
in net Sales
SEK 19.1bn
in Contribution
Average title project data: Sales SEK 278million,
Contribution SEK 195 million and Investment SEK 94 million
SEK 9 .2bn
in Total
Investments
2.1x in average
1.0x in break even
> 50
PROJECT ROI (CONTRIBUTION/INVESTMENT)

PC/Console Games
11 Source: as of December 31, 2024 | *Gross investments in PC/Console game development
INVESTMENTS AND COMPLETED GAME DEVELOPMENT* | SEK million
Investments and completed game development
531
780
556
1,693
1,492
788
3.2x 3.3x
2.1x
1.5x
1.9x 1.9x
2.8x
1.8x
1.4x
0.0x
0.5x 1.0x
1.5x
2.0x
2.5x 3 .0x
3 . 5x
4 .0x 0
200 400
600 800
1,000 1,200 1,400
1,600 1,800
Q3 Q4 Q1Q2 Q3Q4 Q1Q2 Q3
FY 22/23 FY 23/24 FY 24/25
Value of Completed Game Development Investments in Game Development Investments in Game Development as X times Completed Games

PC/Console Games
12 Source: as of December 31, 2024 | Release slates can be subject to change, and will in this case be communicated through their respective publisher
Imminent releases in Q4

Mobile Games
13 Source: as of December 31, 2024 | * Easybraindivestment closed as of January 23, 2025
DAILY ACTIVE USERS & MONTHLY ACTIVE USERS NET SALES DRIVERS
Sudoku.com
Nonogram.com Blockudoku
USER ACQUISITION COST | SEK million
NET SALES SEK million & ADJUSTED EBIT MARGIN
Alien Invasion
Operative Groups:
2* | Internal Headcount: 1,092 | Internal Studios: 10
Adjusted EBIT
Art Puzzle
1,573 1,642 1,669
29%
37%
24%
0% 10%
20%
3 0% 4 0% 50%
60% 70%
80% 90%
100% 0
200 400
600 800
1,000 1,200 1,400
1,600 1,800
Q3Q4 Q1Q2 Q3Q4 Q1Q2 Q3
FY 22/23 FY 23/24 FY 24/25
Net Sales Adjusted EBIT Margin, %
ADJ. EBIT
400
283
236
210
34 30 26
0 10
20 30 40 50
60 70 80 90
100 0
50
100 150
200 250300 350
Q3 Q4 Q1Q2 Q3Q4 Q1Q2 Q3
FY 22/23 FY 23/24 FY 24/25
MAU DAU
million
733
646
840
47% 39%
50%
0% 10% 20%
3 0% 4 0% 50%
60%
70% 80% 90% 100% 0
100
200 300
400
500
600 700
800
900
Q3 Q4 Q1Q2 Q3Q4 Q1Q2 Q3
FY 22/23 FY 23/24 FY 24/25
UAC, SEK m UAC, % of Net Sales
Jigsaw Puzzle Number Match
Crossword
Master
Bus Frenzy
*

14 Source: as of December 31, 2024
Entertainment & Services
NET SALES SEK million & ADJUSTED EBIT MARGIN
Adjusted EBIT
Operative Groups: 3 | Internal Headcount: 845 | Internal Studios: 3
2,328
2,604
3,093
8%
12%
9%
– 4% 1%
6% 11%
16% 21% 0
500
1,000 1,500
2,000 2,5003,000 3,500
Q3 Q4 Q1Q2 Q3Q4 Q1Q2 Q3
FY 22/23 FY 23/24 FY 24/25
Net Sales Adjusted EBIT Margin, %
ADJ. EBIT
284
© 2024 New Line Cinema. The War of the Rohirrimand The Lord of the Rings and the characters, places, events, and items therein are trademarks or registered trademarks of Mi ddle-earth Enterprises, LLC,
used under license by New Line Cinema. All rights reserved.
ATH

Financial performance
2.

Financial development
FINANCIAL PERFORMANCE
Source: as of December 31, 2024
NET SALES & GROSS MARGIN DEVELOPMENT | SEK million DEVELOPMENT OF MARKETING EXPENSES | SEK million
DEVELOPMENT OF OPERATING EXPENSES, NET | SEK million ADJUSTED EBIT | SEK million
16
733646 840
249
179
214
13% 11% 14%
0% 5% 10%
15%
20%
25%
3 0%
35% 4 0% 45% 50% 0
200 400
600 800
1,000 1,200
Q3 Q4 Q1Q2 Q3Q4 Q1Q2 Q3
FY 23/24 FY 24/25
Marketing, UAC – Mobile Marketing, Non UAC, Net of Income Marketing as % of Net Sales
7,476 7,625 7,364
64% 67% 60%
– 10 % 10%
3 0% 50% 70% 90%
110%
1 30 % 150% 0
1,000
2,000 3,000
4,000
5,000
6,000 7,000
8,000
Q3Q4 Q1Q2 Q3Q4 Q1Q2 Q3
FY 23/24 FY 24/25
Net Sales Gross Margin
1,819 1,912
1,368 24% 25%
19%
0% 10%
20% 3 0% 4 0%
50% 60% 0
500
1,000 1,500
2,000 2,500
Q3Q4 Q1Q2 Q3Q4 Q1Q2 Q3
FY 23/24 FY 24/25
Operating Expenses, net Operating Expenses, net, as % of sales
1,070
1,317
1,175
14% 17% 16%
0% 10%
20% 3 0% 4 0%
50% 60% 0
500
1,000 1,500
Q3 Q4 Q1Q2 Q3Q4 Q1Q2 Q3
FY 23/24 FY 24/25
Adjusted EBIT Adjusted EBIT %
FY 22/23
FY 22/23
FY 22/23 FY 22/23

Cash flow and net debt
FINANCIAL PERFORMANCE
Source: as of December 31, 2024
SEKmFY24/25
Q3 FY23/24
Q3 FY 24/25
Q3 TTM FY 23/24
Q3 TTM
Adjusted EBITDA 2,0012,346 6,808 8,520
Cash Tax -210 -158 -709 -616
Other items –
369
-321 –
947 -892
Operating Cash flow 1,4221,867
5,152 7,011
Net investment in intangible assets -890 -1,623 -4,244 -7,112
Net investment in tangible assets -26 -35 -136 -284
Net investment in financial assets 99-64 -62 -283
Net Investment -817 -1,722 -4,442 -7,680
Free Cash Flow before WC 605145
710-670
Change in working capital 302
115-587 -516
Free Cash Flow after WC 907260 123-1,186
Cash Flow from financing activities -250 253-2,807 1,837
Net cash flow from acquired/divested companies -432 -1,971 3,828 -2,593
Cash effect IAC costs 15-236 -450 -371
Cash Flow for the period 242-1,694 696-
2,313 SEKm Dec. 31,
2024 Dec.
31,
2023
Cash 3,2583,683
Current investments -0
Current liabilities to credit institutions –
589 -2,874
Current account credit facilities —
18
Non -current liabilities to credit institutions
-5,883 -16,918
Net Debt ( -) / Net Cash (+)
-3,215
-16,127
 Free cash flow after WC increase versus previous year
driven mainly by lower net investment due to effects
from divestments and activities made in the
restructuring program
 Embracer Group AB has a leverage covenant in its
credit agreements with substantial headroom to it per
December 31, 2024
 Total available liquidity by February 7, 2025 was
approximately 12.7 bn SEK
17

Net Cash and earnout
FINANCIAL PERFORMANCE
18
Net Cash bridgeSEK, billion
Reported Net debt 31/12 -2024 -3.2
Estimated effect from divestment of Easybrain 12.8
Equity investment in Asmodee -4.6
Estimated pro forma Net cash 5.0
Net Cash bridge
Source: as of December 31, 2024 | 2working names
SEK, billion
“Coffee Stain & Friends
2” 0.9
“Middle -earth & Friends
2” 1.4
Cash obligation 2.3
Earnout obligation (cash –pro forma)
No. of shares after reverse split Expected range
No. of outstanding shares 225 million
Earnout shares to be issued expected range 1 million
No. of shares –full dilution 226 million
Earnout obligation (shares –pro forma)

Comments on Q4
FINANCIAL PERFORMANCE
19 Source: as of December 31, 2024
ADJUSTED EBIT -Q4 FY 2023/24 PROFORMA AND FY 2024/25 COMMENTS
Segment Q4 FY 2023/24
Reported Impact of divestments
and spin-off Q4 FY 2023/24
Pro forma Comments on Q4 FY 2024/25
PC/Console
514+59 572
Higher Adjusted EBIT YoY – driven by Kingdom Come:
Deliverance II, late Q4 release of Killing Floor 3, mixed
reception for Hyper Light Breaker in early Q4
Mobile 514-387 127 Limited Adjusted EBIT contribution due to increased user
acquisition investments
Tabletop 380-380 0 –
E&S 48 48 Limited Adjusted EBIT contribution
Corporate-30 -30
Group 1,426-709 717
ENTITIES/ASSETS DIVESTED
Certain assets Certain assetsJanuary 23, 2025
June 11, 2024
March 28, 2024
ENTITIES SPUN -OFF
February 7, 2025

Comments on FY 2025/26 and beyond
FINANCIAL PERFORMANCE
20 Source: as of February 13, 2025 | Release slates can be subject to change, and will in this case be communicated through their respective publisher
AN EXCITING SLATE OF MID-SIZED RELEASES EXPECTED IN FY 2025/26
 For the coming three financial years, we currently have 10 AAA PC/Console games in active development whereof 2
currently are scheduled to be released in the end of next FY 2025/26
 In addition, we have a slate of exciting mid -sized releases, including Gothic 1 Remake, REANIMAL, Fellowship, Deep
Rock Galactic: Rogue Core, Titan Quest II, Screamer, Satisfactory (console) and the full release of Wreckfest2 across
platforms. We also have a similar amount of unannounced titles scheduled for release next FY
 In Q1 FY 2025/26, we have no notable PC/Console game releases
 In H1 FY 2025/26, Mobile Games segment will be in “growth mode”, implying high UAC- to-sales with positive ROI
expected
 Efforts to address fixed operating costs and improve profitability and cashflow is expected to have some effect in
FY 2025/26

Closing remarks
EMBRACER TODAY
21 Source: as of January 23, 2025
Some of our beloved IPs
INTERNAL STUDIOS
75
OWNED AND CONTROLLED IPs
450
GAME DEVELOPMENT PROJECTS
118 OVER
WHEREOF
DEVELOPERS
5,000
PEOPLE ENGAGED
7,500
OVER OVER

Until ~10:00 CET
Q&A

Appendix
3.

Pro forma financials excluding Easybrainand Asmodee
APPENDIX
24 Source: as of December 31, 2024 | 1includes corporate (HQ) pro forma financials, figures above are adjusted for acquired and divested entities | 2EBITDAC = Adjusted EBITDA less Gross investment in intangible and tangible assets | 3working names
“Coffee Stain & Friends 3” “Middle-earth & Friends 3” Embracer Group 1
SEK, billion (TTM) FY
22/23 FY
23/24 Q3 FY
24/25 FY
22/23 FY
23/24 Q3 FY
24/25 FY
22/23 FY
23/24 Q3 FY
24/25
Net sales 7.37.36.612.3 14.2 11.819.6 21.518.4
Adjusted EBITDA 2.83.12.6 3.24.63.05.8 7.55.4
Adjusted EBIT 1.61.8 1.11.6 2.4 1.23.0 4.0 2.1
Capex -2.2 -1.9 -1.5 -3.3 -2.7 -2.3 -5.5 -4.6 -3.8
EBITDAC
2 0.6 1.11.1-0.1 1.9 0.7 0.3 2.8 1.6
Internal Studios 6052 47 3129 29 918175
Internal Headcount 3,1922,7102,668 4,8924,305 4,1518,135 7,069 6,816

Pro forma financials | Mobile Games
APPENDIX
25 Source: as of December 31, 2024 | 1EBITDAC = Adjusted EBITDA less Gross investment in intangible and tangible assets
SEKm Q3
FY 22/23 Q4
FY 22/23 Q1
FY 23/24 Q2
FY 23/24 Q3
FY 23/24 Q4
FY 23/24 Q1
FY 24/25 Q2
FY 24/25 Q3
FY 24/25 FY 22/23
FY 23/24 TTM Q3
FY 24/25
Net sales 744677687 667 691569 595 5767332,795 2,613 2,473
Adjusted EBITDA 143133142 148170136159 11780530 595492
Adjusted EBIT 13470133 139162 127153 11175442 561465
Capex -1 -2 -3 1-5 -6 -2 -1 -1 -41 -13 -10
EBITDAC
1 142 131139 149165 129 157 11579489 582 481