Slides
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AGM 2025 SEPTEMBER 18
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2 TODAY’S AGENDA 15.00 Welcome Erik Larsson, equity analyst from SEB Opening of the meeting Kicki Wallje-Lund, Chair of the Board Presentation of the business activities within Embracer Group Phil Rogers, Group CEO & Müge Bouillon, Group CFO Market insights Chris Stanton-Jones, Market Analyst consultant Shaping tomorrow Phil Rogers, Group CEO Q&A AGM (part 2) | item 8-17 ~ 17.00 AGM (part 1) | item 1-7
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KICKI WALLJE-LUND Chair of the Board
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Welcome to Embracer Group’s Annual General Meeting
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A Transformational Year 5
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Foundation for Long-Term Value 6
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Rebuilding Trust 7
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Looking forward 8 Focus on core assets Maximize proven value Step back from non-core activities
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A New Era for Gaming 9
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Gaming Still Strong 10
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AI is driving the future of gaming 11
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The Board’s Ongoing Commitment 12
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Looking Ahead with Confidence 13
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14 1. Opening of the meeting 2. Election of chair of the meeting 3. Preparation and approval of voting list 4. Election of one or two persons to certify the minutes 5. Question whether the general meeting has been duly convened 6. Approval of the agenda 7. Presentation of the business activities in the Embracer Group AGM AGENDA PART 1
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PHIL ROGERS Group CEO MÜGE BOUILLON Group CFO
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16 7 / Presentation of the business activities in the Embracer Group PART 1
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Operational & Financial Highlights FY 2024/25 ANNUAL OPERATIONS OVERVIEW | AGM 2025 17Source: as of March 31, 2025 | Excludes discontinued or divested operations (Asmodee, Easybrain, Gearbox and other divestments Net sales SEK 22,370m -18% YoY (-9% organic) Adjusted EBIT SEK 3,344m -33% YoY Free Cash Flow SEK 1,351m (SEK -819 m) Strong financial position and in process of building a more resilient business Asmodee’s listing completed on Nasdaq Stockholm on February 7th Coffee Stain Group on track for separate listing in 2025 Sustainability Long-term commitment during another transformational year
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24,533 27,409 22,370 18% 18% 15% 0% 5% 10% 15% 20% 25% 30% 0 10,000 20,000 30,000 FY 22/23 FY 23/24 FY 24/25 Net Sales Adjusted EBIT % Softer performance in a year of many transformations FINANCIAL OVERVIEW FY 2024/25 | AGM 2025 Source: as of March 31, 2025 Net sales decreased by - 18% YoY to SEK 22.4 billion, with organic growth of -9%. PC/Console and E&S down organically 13% and 7% respectively; Mobile was largely stable KCD2 was the biggest release in 24/25 Softer Adjusted EBIT margin at 15% Revenue mix and higher UAC investments impacted EBIT margin 18 EXCLUDING ASMODEE
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18.4 22.4 1.7 5.4 0.4 Assets Equity 6.1 1.8 0.3 0.5 0.4 8.5 Assets Equity Balance sheet per 31-03-25 FINANCIAL OVERVIEW FY 2024/25 | AGM 2025 Source: as of March 31, 2025 Financial balance sheet itemsOperational balance sheet items Completed Games On-going Games Net tangibles assets and lease liabilities Other intangibles 8.8bn 24.1bn 24.1bn Provisions additional considerations and deferred tax Net other assets and liabilities 19 8.8bn Equity Net other assets and liabilities Net cash Goodwill / IP-rights Equity
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Transformations drive significantly improved Free Cash Flow and stronger balance sheet FINANCIAL OVERVIEW FY 2024/25 | AGM 2025 20Source: as of March 31, 2025 SEKm FY 24/25 Full Year FY 23/24 Full Year Adjusted EBITDA 6,753 8,932 Cash Tax -705 -609 Other items -846 -1,326 Operating Cash flow 5,202 6,997 Net investment in intangible assets -3,613 -6,809 Net investment in tangible assets -126 -222 Net investment in financial assets -38 -390 Net Investment -3,777 -7,421 Free Cash Flow before WC 1,425 -424 Change in working capital -74 -395 Free Cash Flow after WC 1,351 -819 Cash Flow from financing activities -12,648 2,741 Net cash flow from acquired/divested companies 16,552 -2,585 Cash effect IAC costs -395 -548 Cash Flow for the period 4,860 -1,211 SEKm Mar. 31, 2025 Mar. 31, 2024 Cash 7,097 3,507 Current investments 0 0 Current liabilities to credit institutions -545 -8,994 Current account credit facilities - -35 Non-current liabilities to credit institutions -1,119 -10,885 Net Cash (+) / Net Debt (-) 5,433 -16,407 The divestment of Easybrain, Saber and Gearbox combined with the spin-off of Asmodee facilitated the pay down of external debt, delivering a Net Cash position of SEK 5.4bn at year end Divestments and transformative projects also contributed to the improved Free Cash Flow after WC for the year Share buy-back program of up to 500 mSEK to be initiated, pending authorization at this meeting
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Embracer today FINANCIAL OVERVIEW FY 2024/25 | AGM 2025 21Source: as of March 31, 2025 Embracer Group is present INTERNAL STUDIOS 73 TOTAL HEADCOUNT 7,000+ DEVELOPERS 5,000+WHEREOF ON-GOING PROJECTS 108 FY 22/23 : 221FY 22/23 : 116 FY 22/23 : 14,000+ FY 22/23 : 10,000+
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Embracer tomorrow FINANCIAL OVERVIEW FY 2024/25 | AGM 2025 Source: as of September 18, 2025 In the past year, we've advanced the group's transformation, with Asmodee listed in February Coffee Stain Group is progressing well and is set for a separate listing this year, supported by strong IPs, active communities, and talented teams. COMMENTS ASMODEE Spin-off completed 7 February 2025 COFFEE STAIN GROUP Spin-off expected Year-end 2025 FELLOWSHIP ENTERTAINMENT Expected Year-end 2025 | 2025 | 2024 | 2026 1st SPIN-OFF 2nd SPIN-OFF | 2016 BECOMES 22
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Coffee Stain Group FINANCIAL OVERVIEW FY 2024/25 | AGM 2025 23Source: as of September 18, 2025 On track for listing on Nasdaq First North Premier Growth before end of calendar year 2025 Strong Board in place complementing experienced executive management team led by Anton Westbergh, CEO and Co-Founder of Coffee Stain Proven track record of creating long- lasting game experiences that grow over time—made by small, passionate teams and thriving communities Long-term opportunity in growing existing franchise universes, introducing new IPs, and partnering with the best independent like-minded talents
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Market Insights
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Guest speaker MARKET INSIGHTS BY CHRIS STANTON-JONES, MARKET ANALYST & CONSULTANT | AGM 2025 25 CHRIS STANTON-JONES Catapult Business Solutions
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Total Gaming Market MARKET INSIGHTS BY CHRIS STANTON-JONES, MARKET ANALYST & CONSULTANT | AGM 2025 1 Newzoo (NB: Market numbers, including historical ones, have been adjusted down slightly since previous update) Influencing Factors • Market is strong and stable with its value at a record high • Buoyant console market • Switch 2 launch and PS5 peak software years • GTA VI impact for 2026+ Economic Backdrop • Difficult trading conditions – high costs / spending squeeze • Re-structuring in the industry continues but worst could be over Market trendline is for “low but steady” growth from already high values USD billions 2019-2027 CAGR +5%Global game revenue1 139 173 185 174 177 183 189 196 202 2019 2020 2021 2022 2023 2024 2025 2026 2027 COVID PEAK FORECAST +3% 26
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Entertainment industry sales Estimates 2024 TV2 USD 171 billion Home Entertainment2 USD 143 billion Games1 USD 183 billion Music3 USD 21 billion Box Office2 USD 28 billion Games Market Trends MARKET INSIGHTS BY CHRIS STANTON-JONES, MARKET ANALYST & CONSULTANT | AGM 2025 TOTAL MARKET 1. Games is still the single largest entertainment sector 2. The market is now truly mainstream - 3.6 bn players (2025) 3. Hyper-competition for both spend and playtime between 1/other game titles as well as 2/ other entertainment and social media 4. De-risking strategies of publishers in a low-growth era Increased focus on remasters, AI and single-player games 5. Mobile is the largest sector, but Console and PC will see good growth Games market by sector1 Forecast 2025 Mobile +3% YoY PC +3% YoY Console +6% YoY $189bn 271 Newzoo | 2 Ampere Analysis | 3 IFPI
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Shaping Tomorrow
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Stronger foundation for our forward journey SHAPING TOMORROW | AGM 2025 29Source: as of September 18, 2025 | Run rate capex 2022/23 to Q1 2025/26 | Net debt and development projects March 2023 to June 2025 SEK 8 billion SEK 3 billion CAPEX NET DEBT/CASH DEV PROJECTS SEK -16 billion SEK +5 billion 221 116 NOWTHEN
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/ Near-term focus 30 Successful Coffee Stain Group spin-off Executing on FY 2025/26 pipeline and upside potential to our forecast Free up capital to deploy with better returns elsewhere
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31 / Medium-term focus Continue to systematically rewire and refocus our business Increased cost focus and AAA releases provides room for earnings inflection point from next year Smarter collaboration, streamlining, shared services, AI utilization
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32 AI as a strategic catalyst
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Our teams own the creative and final product 33 AI is a force multiplier to empower our people
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AI in use today 34 Animation Engineering Asset creation Design
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Empower, never replace 35 Human authorship Transparency Partnership
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Elevating our craft 36
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/ Long-term focus A truly IP-first company centered around our best creators, studios and franchises in a structure enabling focus and operational discipline 37
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Our IPs and Studios SHAPING TOMORROW | AGM 2025 38Source: as of September 18, 2025 And more… And more…
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We must continue to sharpen our focus and execution. We aim to lead with distinctive IP; deliver with clarity and discipline; and realize our full potential 39
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hosted by Erik Larsson, equity analyst from SEB Now we will have a ~20-minute Q&A 40
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41 8. Presentation of the annual report and the auditors’ report and the group annual report and the group auditor’s report 9. Resolutions regarding: i. adoption of income statement and balance sheet and the group income statement and the group balance sheet, ii. decision regarding the profit or loss of the company in accordance with the adopted balance sheet, and iii. discharge from liability of the board of directors and the CEO. 10. Determination of the number of directors and auditors 11. Determination of fees to the directors and auditors 12. Election of the directors and auditors 13. Presentation and approval of the board of directors’ remuneration report 14. Resolution regarding authorization for the board to issue shares, convertibles and/or warrants 15. Resolution regarding authorization for the board to resolve on repurchase of own shares 16. Resolution regarding authorization for the board to resolve on transfer of own shares 17. Closing of the meeting AGM AGENDA PART 2
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Proposed for new and re-election AGM 2025 42 KICKI WALLJE-LUND Born: 1953 Education/background: Kicki Wallje-Lund has experience in business development from a variety of international companies, especially in the IT sector, primarily for the banking and finance industry as well as board assignments for listed companies on Nasdaq Stockholm, Large and Small cap. She has held leading global positions in companies like NCR, Digital Equipment, AT & T, Philips, ICL and Unisys. Current assignments: Kicki Wallje-Lund is deputy chair of the board of Asmodee Group AB. CHAIR OF THE BOARD BOARD MEMBER LARS WINGEFORS Born: 1977 Education/background: Lars Wingefors is founder and former CEO of Embracer Group. Lars Wingefors started his first video games company at the age of sixteen. He has broad and long experience in entrepreneurship and business management. Current assignments: Lars Wingefors is board member and CEO of Lars Wingefors AB, and chair of the board of Asmodee Group AB.
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Proposed for re-election AGM 2025 43 JACOB JONMYREN Born: 1980 Education/background: Jacob Jonmyren holds a M.Sc in Accounting and Financial Management from Stockholm School of Economics and has studied Finance at University of Wisconsin and Media & Communication Studies (Master level) at Stockholm University. Jacob Jonmyren has long experience from the financial markets. Current assignments: Jacob Jonmyren is CEO and board member at Jacob Jonmyren Kapital AB, chair of the board of Lars Wingefors AB, Consilio International AB and Wise Birds AB, and a board member of Asmodee Group AB and Keep Pushing Group AB. YASMINA BRIHI Born: 1975 Education/background: Yasmina Brihi holds an MBA from Harvard Business School. Yasmina has held several senior management positions within Google, including Senior Director Marketing and Senior Product Manager. She is well experienced in building and scaling businesses in multiple industries such as devices, music, gaming and e- Commerce. This includes vast experience in leading and growing large organizations, shaping and transforming team culture across geographies. Current assignments: No other current assignments. BERNT INGMAN Born: 1954 Education/background: Bernt Ingman holds a Bachelor of Economics from Uppsala University. Bernt has broad competence in strategic and operational business development, divestments and restructuring from different industries and service businesses. He has held senior management positions within international companies, both within business-to-business and business-to-consumer companies, such as Alimak, Gunnebo, Husqvarna and Munters. Bernt has more than 25 years broad experience from board work in listed as well as private companies. Current assignments: Bernt Ingman is chair of the board of TagMaster Aktiebolag and Pricer Aktiebolag, and board member of SolTech Energy Sweden AB (Nasdaq First North).
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Proposed for re-election AGM 2025 44 BRIAN WARD Born: 1957 Education/background: Brian Ward holds both business and law degrees and practiced law for several years. He has nearly 30 years of studio and operations video game experience, including senior positions at Electronic Arts, Microsoft (Xbox), and Activision Blizzard. Brian led Worldwide Studios at Activision, managing all game development and a dozen studio acquisitions, quadrupling revenue and posting industry-leading margins. He has since led several more successful mergers, acquisitions and company reorganizations. Current assignments: CEO of Savvy Games Group. CECILIA QVIST Born: 1972 Education/background: Cecilia Qvist holds an MBA from the University of Edinburgh. Cecilia has extensive leadership experience in fast-paced, technology-driven companies undergoing transformational growth, including Leia Inc., Spotify, LEGO Ventures, and NASDAQ. For more than 20 years, she has worked with companies around the world on building dynamic, scalable business. Current assignments: Cecilia Qvist is chair of the board of Apotea AB (publ).
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“Coloring” 46
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2024-11-14 Embracer Group Interim report Q2 FY 2024/25 47 Lars Wingefors, CEO Embracer Group AB & Martin Arnell, Equity Analyst at DNB
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2024 - 11 - 14 Embracer Group Interim Report Q2 FY 2024/25
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2024 - 11 - 14 Embracer Group Interim Report Q2 FY 2024/25
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2024 - 11 - 14 Embracer Group Interim Report Q2 FY 2024/25
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2024 - 11 - 14 Embracer Group Interim Report Q2 FY 2024/25
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Thank you