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Coffee Stain Q1 FY 26/27 Report Presentation 5 AUGUST 2026
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#ac744c #ece8e0 #c9a58b #e2cec0 #222120 #fefcf4 #AD7E6A #5E4134 This presentation, which should be understood to include these slides, their contents or any part of them, any oral presentation, and any question or answer session (the "Presentation") has been prepared by Coffee Stain Group AB (the "Company") in relation to the presentation of its interim report for the first quarter of financial year ending 31 March 2027. None of the Company, or any of its affiliates or employees, directors, representatives, officers, agents or advisors shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation. The Presentation does not constitute or form part of, and should not be construed as, any offer, invitation, solicitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and the Presentation does not constitute, and should not be considered as, a prospectus within the meaning of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (the "Prospectus Regulation"). The Pr esentation is intended to present background information on the Company, its business and financials and the industry in which it operates and is not intended to provide complete disclosure. The content of this Presentation should not be construed as legal, tax, accounting or investment advice, representation or a personal recommendation. This Presentation includes information pertaining to the Company's market and its competitive position therein. Certain market information has been obtained from sources prepared by other parties that the Company has deemed to be relevant and trustworthy. The Company has not made any independent review of information based on public statistics or information from an independent third party regarding the market information that has been provided by such third party, the industry or general publications. Some of the financial information contained in the Presentation is not directly extracted from the Company's accounting systems or records and/or is not International Financial Reporting Standards ("IFRS") accounting measures. Such information has not under any circumstance bee n independently reviewed, audited or verified by the Company's auditors. Non-IFRS financial measures in the Presentation may not be comparable to similarly titled me asures as presented by other companies, nor should they be considered as an alternative to historical financial results or other indicators of the Company's performance which are based on IFRS. Certain statements in the Presentation, including those regarding the possible or assumed future or other performance of the Company or its industry or other trend projections, constitute forward-looking statements. These forward-looking statements are based on a series of assumptions, both general and specific, and have been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory environment. Although the Company believes its expectations are based on reasonable assumptions, everyone taking part in the Presentation are cautioned that, by their nature, forward-looking statements involve known and unknown risks, 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. The Company is unable to anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences and evaluate the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in the Presentation. No assurance is given that such forward-looking statements will prove to be correct. Undue reliance should not be placed on such forward-looking statements. They speak only as at the date of this Presentation.
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#ac744c #ece8e0 #c9a58b #e2cec0 #222120 #fefcf4 #AD7E6A #5E4134 QUARTER IN BRIEF01. GAME PORTFOLIO UPDATE02. FINANCIAL PERFORMANCE03. Q&A04. APPENDIX AGENDA
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#ac744c #ece8e0 #c9a58b #e2cec0 #222120 #fefcf4 #AD7E6A #5E4134 QUARTER IN BRIEF – Q1 26/27 STRONG CASH GENERATION MIXED RELEASE OUTCOMES 1Note: 1) Constant Currency growth – Comparison period FX recalculated to Current period 2) Cash EBIT = Adjusted EBIT + Operational D&A - Gross investments - Payment of lease liabilities NET SALES 253m YoY Growth: +37% YoY Organic Growth CC¹⁾: +41% CASH EBIT ²⁾ 95m Cash EBIT margin: 38% SEKm FREE CASH FLOW 100m Cash EBIT conversion: 105% WHAT SHAPED Q1 ? Release of Deep Rock Galactic: Rogue Core Key driver of net sales YoY growth. Player reviews were below expectations and momentum faded quickly. Satisfactory 1.2 Update Supported strong cash generation and continued baseline growth.
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#ac744c #ece8e0 #c9a58b #e2cec0 #222120 #fefcf4 #AD7E6A #5E4134 OPERATIONAL HIGHLIGHTS GAME PORTFOLIO UPDATE – Q1 26/27 Q1 SELECTED RELEASES May 20, 2026 Deep Rock Galactic: Rogue Core Early Access June 2, 2026 Satisfactory 1.2 All available platforms June 22, 2026 Fellowship Season 3 Early access Q1 SIGNIFICANT EVENTS Deep Rock Galactic: Rogue Core Strong initial sales, fast decline in engagement. Focused actions and next steps is being evaluated. Valheim 1.0 and PS5/Nintendo Switch 2 release date announced 9th of September, venture into the Deep North after six years in early access. Fellowship Revised development setup materially lowering ongoing investments from Q3 26/27. 2 Satisfactory The factory continues expanding, and the 1.2 release was well received.
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#ac744c #ece8e0 #c9a58b #e2cec0 #222120 #fefcf4 #AD7E6A #5E4134 ROADMAP AHEAD GAME PORTFOLIO UPDATE – Q1 26/27 Expanding Core IPs Extending proven franchises Build/Grow Other IPs Small teams, selective bets, scale when proven success + more Teardown Multiplayer Console releases Wielders of the Essence 1.0 Release – 5th November 2026 Lightyear Frontier 1.0 Release - 2026 Into the Unwell 1.0 Release - 2027 Valheim 1.0 + PlayStation 5 & Switch 2. 3 + more
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#ac744c #ece8e0 #c9a58b #e2cec0 #222120 #fefcf4 #AD7E6A #5E4134 Q1 GROWTH AND CASH EBIT FINANCIAL PERFORMANCE – Q1 26/27 Cash EBIT SEKm QoQ - Cash cost base down SEK 21m Lower COGS and third-party support drove the decrease from Q4. YoY - Launch activity supported growth Rogue Core contributed SEK 48m of launch uplift. 4Note: 1) Game launch uplift: impact of releases and deals within 60 days post-launch 2) Baseline net sales: Recurring part driven by our existing games and back catalogue 180 234 190 26 63 36 69 146 81 95 60 67 65 69 75 66 20 37 27 148 154 147 179 158 Q1 25/26 Q2 Q3 Q4 Q1 26/27 Personnel Cost Other operating expenses COGS QoQ - Baseline net sales decreased vs strong Q4 The decrease mainly reflected the timing of publisher-sale activity in Q4. Net sales increased 37% year-on-year, with a Cash EBIT margin of 38%. 184 224 260 293 253 Q1 25/26 Q2 Q3 Q4 Q1 26/27 OPERATIONAL COST BASE NET SALES AND CASH EBIT Game launch uplift1) Baseline net sales2) SEKm
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#ac744c #ece8e0 #c9a58b #e2cec0 #222120 #fefcf4 #AD7E6A #5E4134 FINANCIAL PERFORMANCE – Q1 26/27 NET SALES FINANCIAL POSITION • Core Ips generated ~90% of net sales. • Constant Currency growth was +10%, including +9% baseline growth. • Cash EBIT margin remained strong at 38%. • ~75% of SEK 520m Cash operating expenses allocated to Core IPs. • LTM Free Cash flow of SEK 315m equals 81% of Cash EBIT. • The Board’s ambition is to return approximately SEK 300m to shareholders. • Proposed dividend of SEK 152m. • Intended share repurchase program of up to SEK 150 million. CASH EBIT 1 029m CC1) Growth: +10% 391m Cash EBIT margin: 38% 722m Cash at quarter end LAST TWELVE -MONTH PERFORMANCE AND CASH POSITION LTM - Q1 26/27 LTM - Q1 26/27 Q1 26/27 Note: 1) Constant Currency growth – Comparison period FX recalculated to Current period 5
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#ac744c #ece8e0 #c9a58b #e2cec0 #222120 #fefcf4 #AD7E6A #5E4134 Q&A
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#ac744c #ece8e0 #c9a58b #e2cec0 #222120 #fefcf4 #AD7E6A #5E4134 APPENDIX
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#ac744c #ece8e0 #c9a58b #e2cec0 #222120 #fefcf4 #AD7E6A #5E4134 Q1 26/27 - CASH FLOW AND NET CASH 26/27 SEKm Q1 Cash EBIT 95 25/26 Q1 36 Tax paid 16 43 Other cash flow items -2 -2 Free cash flow before working capital 109 77 Changes in working capital -9 8 Free cash flow after working capital 100 85 Transactions with owners2) 0 -161 Cash flow from financing activities 3 1 Earnouts 0 0 Cash effect IAC costs -3 0 Cash flow for the period 100 -75 Cash Conversion (%)1) 105% 239% APPENDIX – Q1 26/27 Note: 1) Free cash flow after working capital / Cash EBIT 2) Corresponding to transactions with Embracer Group Q1 26/27: Cash flow 105% Cash Conversion due to positive tax paid effect. YoY decrease in cash conversion % driven mainly by extraordinary changes in tax paid in the comparison period. SEKm Q1 Cash 722 Earnout liability -25 26/27 697Net Cash Dividend proposed Proposed return to shareholders of SEK 300m, of which cash dividend of 152m paid in 4 equal installments.
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#ac744c #ece8e0 #c9a58b #e2cec0 #222120 #fefcf4 #AD7E6A #5E4134