Embracer Group FY2024 Q4 Earnings Release

APRIL 2024 –MARCH 2025
Q4
FY 2024/25
EMBRACER GROUP
YEAR-END REPORT

Disclaimer
Q4 & YEAR-END REPORT FY 2024/25
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2

Q4 & Year-End Report FY 2024/25
HIGHLIGHTS FROM Q4 & YEAR -END REPORT FY 2024/25
3 Source: as of March 31, 2025 | Excludes discontinued or divestedoperations (Asmodee, Easybrain, Gearbox and other divestments)
Highlights Q4 FY 2024/25
Full Year FY 2024/25
Net Sales Group
SEK
19,261m
Free cash flowSEK
956m
Q4 FY 2023/24
(SEK – 272m)
Solid slate of exciting new releases for
FY 2025/26 and beyond
Solid organic growth and earnings
development driven by Kingdom Come: Deliverance II
Strong financial position and in process of building a more resilient business
Coffee Stain Group to be listed by end of 2025
Evaluating further separations and M&A to unlock further value Adjusted EBIT
SEK
2,360m -40 %
YOY GROWTH
PRO FORMA
-10 %
YOY GROWTH
Adjusted EBIT
SEK
1,077m 3 %
YOY GROWTH
4
4 % PRO FORMA
Net Sales Group
SEK
5,386m –
6 %
YOY GROWTH
1 9 % PRO FORMA

Operating segments
1.

PC/Console Games
5 Source: as of March 31, 2025
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: 4,918 | Internal Studios: 62
10% 16%
34%
0% 10%
20% 3 0% 4 0% 50%
60% 70%
80% 90%
100% 0
500
1,000 1,500
2,000 2,5003,000 3,500
4,000 4,500
Q4Q1Q2 Q3Q4 Q1Q2 Q3Q4
FY 22/23 FY 23/24 FY 24/25
Back Catalog Sales New Releases Sales Other Adjusted EBIT Margin, %
NET SALES
3,069
0
500
1,000 1,500
2,000 2,500
Q4Q1Q2 Q3Q4 Q1Q2 Q3Q4
FY 22/23 FY 23/24 FY 24/25
ADJ. EBIT
1,029

PC/Console Games
6 Source: as of March 31, 2025
•Based on reported numbers until
March 31 , 2025
• Sample includes projects with sales
and/or investments above SEK 40
millions ( 101projects).
• ROI = Contribution / Investment
• Contribution = Gross Profit less
marketing expenses from release to
March 31, 2025
• Investment = Capitalized Development
Expenses including follow -on
investment
• Projects released by divested
companies are excluded.
DETAILS
1.0x in break even
PROJECT ROI (CONTRIBUTION/INVESTMENT)
0.02.0 4.0
6.0 8.0
10.0 12.0 14.0
0 510 1520 2530 35
> 50
SEK 29.4 bn
in net Sales
SEK 20 .6bn
in Contribution
Average title project data: Sales SEK 292million,
Contribution SEK 204million and
Investment SEK 100 million
SEK 10.1bn
in Total
Investments
2.0x in average

PC/Console Games
7 Source: as of March 31, 2025 | *Gross investments in PC/Console game development
INVESTMENTS AND COMPLETED GAME DEVELOPMENT* | SEK million
Investments and completed game development
501
718
974
1,633
1,382
704
3.3x
2.1x
1.5x
1.9x 1.9x
2.8x
1.8x
1.4x
0.7x
0.0x
0.5x
1.0x 1.5x
2.0x
2.5x
3 .0x
3 . 5x 0
200 400
600 800
1,000 1,200 1,400
1,600 1,800
Q4 Q1Q2 Q3Q4 Q1Q2 Q3Q4
FY 22/23 FY 23/24 FY 24/25
Value of Completed Game Development Investments in Game Devlopment Investments in Game Development as X times Completed Games

PC/Console Games
8 Source: as of March 31, 2025 | Release slates can be subject to change, and will in this case be communicated through their respective publisher | Assets not placed in release order.
Solid pipeline for FY 2025/26 and beyond
Notable announced upcoming releases including 2 AAA titles
EARLY ACCESS
1.0

1,317 1,366
943
25%
38%
10%
0% 10%
20%
3 0% 4 0%
50% 60%
70% 0
300
600 900
1,200
1,500 1,800
Q4Q1Q2 Q3Q4 Q1Q2 Q3Q4
FY 22/23 FY 23/24 FY 24/25
Net Sales Adjusted EBIT Margin, %
Mobile Games
9 Source: as of March 31, 2025 | * Easybrain divestment closed January 23, 2025
DAILY ACTIVE USERS & MONTHLY ACTIVE USERS NET SALES DRIVERS
USER ACQUISITION COST | SEK million
NET SALES SEK million & ADJUSTED EBIT MARGIN
Operative Groups: 1* | Internal Headcount: 743 | Internal Studios: 8
Adjusted EBIT million
316
229 222
34 29 28
0 10
20
30 40
50 60 70
80 0
50
100 150
200 250300 350
Q4 Q1Q2 Q3Q4 Q1Q2 Q3Q4
FY 22/23 FY 23/24 FY 24/25
MAU DAU
555
478
575
42%
35%
61%
3 0% 35%
4 0% 45% 50% 55%
60% 65% 70% 0
150
300 450
600 750
900
Q4 Q1Q2 Q3Q4 Q1Q2 Q3Q4
FY 22/23 FY 23/24 FY 24/25
UAC, SEK m UAC, % of Net Sales
BUS FRENZY – TRAFIC JAM
GLOW: FASHION IDOL
ALIEN INVASION
COFFEE MANIA
PARTY IN MY DORM
ADJ. EBIT
91

1,487
1,265 1,373
4%
15% 16%
12%
4%
-2%
2%
9%
2%
– 5% 0%
5% 10% 15%
20% 25% 3 0%
35%
4 0% 0
500
1,000 1,500
2,000 2,5003,000 3,500
Q4 Q1Q2 Q3Q4 Q1Q2 Q3Q4
FY 22/23 FY 23/24 FY 24/25
Net Sales Adjusted EBIT Margin, %
10 Source: as of March 31, 2025
Entertainment & Services
NET SALES SEK million & ADJUSTED EBIT MARGIN
Adjusted EBIT
Operative Groups: 3 | Internal Headcount: 738 | Internal Studios: 3
Magic The Gathering: Tales of Middle -earth, © & TM Mee under lic. to Wizards of the Coast.
ADJ. EBIT
32
The Brandywine Festival by Middle -earth Adventures, © & TM Mee under lic. to Burgschneider .

Comments on FY 2025/26 and beyond
OPERATING SEGMENTS
Q1 FY 2025/26
 PC/Console: stable Adjusted EBIT YoY, with <10% of the completed games development in FY 2025/26
 Mobile: limited topline growth YoY on a pro forma basis, with asomewhat higher pro forma Adjusted EBIT contribution
sequentially compared to Q4
 E&S: no Adjusted EBIT contribution in Q1, with no noteworthy product releases
FY 2025/26
 Killing Floor 3 is now scheduled for Q2, with a 24 July release date
 Marvel 1943: Rise of Hydra is now scheduled for early 2026 – notable revenues expected but lower margins due to
shared economics with several other partners
 Management is taking a more prudent view that the third expected AAA game will likely need a few more quarters to
polish and subsequently would release in FY 2026/27
 Overall, on a pro forma basis, we expect net sales to be slightly above FY 2024/25 with both EBITDAC and Adjusted
EBIT to be broadly in line with FY2024/25
FY 2026/27 & 2027/28
 In FY 2026/27 and FY 2027/28, we have 9 additional AAA games currently slated
 A clear increase in release cadence expected compared to our average of just over 1 AAA game per year since FY
2020/21
11 Source: as of May 22, 2025

Financial performance
2.

Financial development
FINANCIAL PERFORMANCE
Source: as of March 31, 2025 | 1Excluding Items Affecting Comparability
NET SALES & GROSS MARGIN DEVELOPMENT | SEK million DEVELOPMENT OF MARKETING EXPENSES | SEK million
DEVELOPMENT OF OPERATING EXPENSES, NET | SEK million ADJUSTED EBIT | SEK million
13
6,282 5,757 5,386
68% 74% 75%
– 5% 5% 15%
25%
35% 45% 55%
65%
75% 85% 0
1,500
3,000 4,500
6,000 7,500
9,000
Q4 Q1Q2 Q3Q4 Q1Q2 Q3Q4
FY 22/23 FY 23/24 FY 24/25
Net Sales Gross Margin
555478575
268
90
243
13% 10%
15%
0% 5% 10%
15%
20% 25% 3 0%
35%
4 0% 45% 0
200 400
600 800
1,000 1,200
Q4 Q1Q2 Q3Q4 Q1Q2 Q3Q4
FY 22/23 FY 23/24 FY 24/25
Marketing, UAC – Mobile Marketing, Non UAC, Net of Income Marketing as % of Net Sales
1,817 1,698
1,284
30% 29% 24%
0% 10% 20%
3 0%
4 0% 50% 60%
70% 80% 90%
100% 0
500
1,000 1,500
2,000 2,500
Q4 Q1Q2 Q3Q4 Q1Q2 Q3Q4
FY 22/23 FY 23/24 FY 24/25
Operating Expenses, net Operating Expenses, net, as % of sales
665
1,046 1,077
11%
18% 20%
0%
5% 10%
15% 20%
25% 3 0%
35% 4 0% 45% 50% 0
400
800
1,200
1,600
Q4 Q1Q2 Q3Q4 Q1Q2 Q3Q4
FY 22/23 FY 23/24 FY 24/25
Adjusted EBIT Adjusted EBIT % 11

Cash flow and net debt
FINANCIAL PERFORMANCE
Source: as of March 31, 2025
SEKmFY24/25
Q4 FY23/24
Q4 FY 24/25
Full Year FY 23/24
Full Year
Adjusted EBITDA 1,9522,007 6,7538,932
Cash Tax -95 -99 -705 -609
Other items –
279
-380 –
846 -1,326
Operating Cash flow 1,5781,528
5,202 6,997
Net investment in intangible assets -830 -1,461 -3,613 -6,809
Net investment in tangible assets -19 -29 -126 -222
Net investment in financial assets -17 -41 -38 -390
Net Investment -866 -1,531 -3,777 -7,421
Free Cash Flow before WC 712-3
1,425 -424
Change in working capital 244
-269 -74 -395
Free Cash Flow after WC 956-272 1,351 -819
Cash Flow from financing activities -9,478 363-12,648 2,741
Net cash flow from acquired/divested companies 12,583-137 16,552 -2,585
Cash effect IAC costs -121 -177 -395 -548
Cash Flow for the period 3,940-223 4,860 –
1,211 SEKm Mar. 31,
2025 Mar.
31,
2024
Cash 7,0973,507
Current investments 00
Current liabilities to credit institutions –
545 -8,994
Current account credit facilities —
35
Non -current liabilities to credit institutions
-1,119 -10,885
Net Debt ( -) / Net Cash (+)
5,433
-16,407
 Free cash flow after WC increase versus previous year
driven mainly by lower net investment due to effects
from divestments and actions made in the restructuring
program.
 SEK 12.6 billion net proceed for the divestment of
Easybrain received in the quarter.
 Cash Flow from Financing activities SEK – 9.5 billion
mainly relates to reduced debt in the quarter (SEK -5.1
billion) and net effect of equity contribution to Asmodee
(SEK -4.7 billion).
14

SEK, millionIFRS expense
reported Items not
affecting Cash Flow Items affecting
Cash Flow
Specification of items affecting comparability Net gains from divestments 8,658-3,982 12,640
Impairment of acquired IP rights -378 -378 0
Write -downs of intangible assets -404 -404 0
Other IAC related to personnel costs, other external
expenses, other operating income/expenses etc. –
371 -250 -121
Annual impairment of goodwill -3,727 -3,727 0
Items affecting comparability 3,779-8,740 12,519
Specification specific items related to historical acquisitions Personnel costs related to acquisitions -257 -227 -30
Amortization of surplus values of acquired intangible assets -277 -277 0
Specific items related to historical acquisitions -534 -504 -30
Acquisition related expenses for expensed earnouts and planned amortizations of acquisition related surplus values.
In -line with expectations except for accelerations in conjunction with the divestments of Saber and Gearbox.
1
Adjusted EBIT Bridge
FINANCIAL PERFORMANCE
15 Source: as of March 31, 2025
Reconciliation of Adjusted EBIT Q4
2024/25 SEK, million
Adjusted EBIT 1,077
Items affecting comparability 3,779
Specific items related to historical
acquisitions –
534
EBIT 4,322
3
Write-downs related to a range of game development
projects across Amplifier and THQ Nordic 3
Expenses related to profitability actions 4
2
4
Non -cash impairment according to annual impairment
process mainly related to PC/Console operating segment 5
5
Impairment of acquired IP rights 2
Net gains primarily related to divestment of Easybrain 1

3.

“Coffee Stain & Friends” becomes Coffee Stain Group
EMBRACER TO SPIN OFF COFFEE STAIN GROUP –REMAINING BUSINESS TO BE RENAMED FELLOWSHIP ENTERTAINMENT
17 Asset distribution still subject to change
Coffee Stain Group
A group of over 250 passionate game developers and
publishers, focused on delivering high quality experiences
All studios are based in Scandinavia
Anton Westbergh, CEO and Co -Founder of Coffee Stain, will
become Group CEO
Nasdaq First North Premier Growth |Calendar year 2025
Long -term opportunity in attracting and enabling partnerships
with like -minded independent game developers and talents
And many others …
All creators behind IPs include award -winning, community driven,
evergreen games such as:

“Middle-earth & Friends” becomes Fellowship Entertainment
EMBRACER TO SPIN OFF COFFEE STAIN GROUP –REMAINING BUSINESS TO BE RENAMED FELLOWSHIP ENTERTAINMENT
18 Asset distribution still subject to change
Fellowship Entertainment
Fellowship Entertainment will be uniting top creators and
intellectual properties, fostering creativity to build unforgettable experiences for the fans
And 40 more…
 A single operational powerhouse within
IP licensing, PC/console, retro and mobile
gaming, as well as within comics,
merchandise, film and distribution
 Steward of the commercial rights to J.R.R.
Tolkien’s work The Hobbit and The Lord
of the Rings

Pro forma financials
EMBRACER TO SPIN OFF COFFEE STAIN GROUP –REMAINING BUSINESS TO BE RENAMED FELLOWSHIP ENTERTAINMENT
19 Source: as of March 31, 2025| 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
Coffee Stain Group Fellowship Entertainment Embracer Group 1
SEK, million FY
23/24 FY
24/25 FY
23/24 FY
24/25 FY
23/24 FY
24/25
Net sales 1,0841,08920,403 18,17121,488 19,260
Adjusted EBITDA 7627346,856 5,2637,398 5,749
Adjusted EBIT 6145443,520 2,0733,904 2,360
EBITDAC
2 548 5262,446 1,8142,7712,090
Internal Studios 121269 618173
Internal Headcount 2462456,769 6,1487,069 6,456
Note : Figures shown are unaudited and may be subject to change dependent on final asset distribution and finalization of standalo ne financials in accordance with the requirements for the spin -off

Until ~10:00 CEST
Q&A

Appendix
4.

Pro forma financials | Mobile Games
APPENDIX
22 Source: as of March 31, 2025 | 1EBITDAC = Adjusted EBITDA less Gross investment in intangible and tangible assets
SEK million 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 Q4
FY 24/25 FY 22/23
FY 23/24FY 24/25
Net sales
677687 667 691569 595 5767337362,795 2,6132,640
Adjusted EBITDA 133142 148170136159 11780 51530 595407
Adjusted EBIT 70133 139162 127153 1117545442 561384
Capex -2 -3 1-5 -6 -2 -1 -1 -1 -41 -13 -5
EBITDAC
1 131 139 149165 129 157 1157950489 582402