News & Media

Estimated net sales of SEK 850-1,050 million and SEK 300-400 million in operational EBIT added during FY 2021/2022

INSIDE INFORMATION: Embracer Group AB (“Embracer”) and its subsidiaries have as previously communicated this morning entered into 13 acquisition agreements (the “Acquisitions”). The acquired businesses are, during the financial year ending 31 March 2022, expected to contribute to Embracer Group’s net sales in the range of SEK 850-1,050 million and contribute to operational EBIT in the range of SEK 300-400 million. In addition, during FY 2021/2022 the expanded studio footprint is expected to bring savings on capitalized game development in the range of SEK 50-100 million. The combined operational EBIT and savings on game development are expected to be in the range of SEK 350-500 million and this profitability is expected to grow in the following years as more game development projects will be completed.

The aggregated day one purchase price for the Acquisitions amounts to approximately SEK 2.0 billion on a cash and debt free basis. Approximately SEK 1.7 billion is paid in cash and SEK 0.3 billion in newly issued Embracer B shares with a maximum additional consideration amounting to SEK 1.8 billion, which is subject to fulfilment of agreed milestones, both operational and financial, over a period of up to 10 years. The additional consideration comprise a maximum of approximately SEK 0.9 billion which may be paid in cash and a maximum approximately SEK 0.9 billion to be paid in Embracer B shares at a price corresponding to the volume weighted average price per Embracer B share at Nasdaq First North Growth Market during 20 trading days up until and including the date of signing of the Acquisitions (VWAP 20). The aggregated maximum consideration amounts to SEK 3.8 billion.

Embracer Group publishes Interim Report Q2, July-September 2020: OPERATIONAL EBIT INCREASED 171% TO SEK 653 MILLION

SECOND QUARTER, JULY–SEPTEMBER 2020 (COMPARED TO JULY–SEPTEMBER 2019)

> Net sales increased by 89% to SEK 2,383.2 million (1,259.7). Net sales of the Games business area increased by 83% to SEK 1,495.4 million (816.1). THQ Nordic SEK 566.9 million (329.6), Deep Silver SEK 506.8 million (441.7), Coffee Stain SEK 129.9 million (44.7), Saber Interactive SEK 259.1 million (-) and DECA Games SEK 32.7 million (-).

> Net sales of Partner Publishing/Film business area increased by 100% to SEK 887.8 million (443.6).

> EBITDA increased by 132% to SEK 969.0 million (418.1), corresponding to an EBITDA margin of 41%.

> Operational EBIT increased by 171% to SEK 652.5 million (240.7) corresponding to an Operational EBIT margin of 27% (19%).

> Cash flow from operating activities amounted to SEK 804.7 million (284.8). Investments in intangible assets amounted to SEK 484.1 million (391.9). Free Cash Flow amounted to SEK 311.5 million (–115.8).

> Adjusted earnings per share was SEK 1.80 (0.65).

> Organic growth in constant currency for the Games Business Area amounted to 61% in the quarter.

> Total game development projects increased 57% to 135 (86). Total headcount increased 49% to 4,445 (2,981) where total game developers increased 58% to 3,593 (2,272).

Announcement from Embracer Group’s extra general meeting

The extra general meeting of Embracer Group AB ("Embracer" or the "Company") was held today on 16 November 2020 in Stockholm and the following resolutions were passed by the meeting.

Notice of extra general meeting in Embracer Group AB

The shareholders of Embracer Group AB, reg. no. 556582-6558, (the "Company") are hereby invited to the extra general meeting on Monday 16 November 2020 at 10.00 CET at Baker McKenzie's premises at Vasagatan 7 in Stockholm.

Embracer Group successfully completed a placement of 35,689,907 new B shares raising proceeds of more than SEK 5.75 billion

Embracer Group announces contemplated directed issue of B shares and sale of existing B shares by co-founders

Announcement from Embracer Group’s Annual General Meeting

The annual general meeting 2020 (the "AGM") of Embracer Group AB ("Embracer" or the "Company") was held today on 16 September 2020 in Karlstad and the following resolutions were passed by the meeting.

Embracer Group publishes Annual Report 2019/2020

Embracer Group today publishes its Annual Report for the financial year 2019/2020. The Annual Report is enclosed this press release and also available at the company’s website: https://embracer.com/investors/reports-presentations/

NOTICE OF ANNUAL GENERAL MEETING IN EMBRACER GROUP AB

The shareholders of Embracer Group AB, reg. no. 556582-6558, (the "Company") are hereby invited to the annual general meeting on Wednesday 16 September 2020 at 15.00 CET at Elite Stadshotellet, Kungsgatan 22 in Karlstad.

Embracer Group publishes Interim Report Q1, April-June 2020: OPERATIONAL EBIT INCREASED 249% TO SEK 712 MILLION

FIRST QUARTER, APRIL–JUNE 2020 (COMPARED TO APRIL–JUNE 2019)

• Net sales increased by 81% to SEK 2,068.7 million (1,142.0). Net sales of the Games business area increased by 153% to SEK 1,622.1 million (641.3). Net sales of Partner Publishing/ Film business area decreased to SEK 446.5 million (500.7).
• EBITDA increased by 148% to SEK 965.2 million (389.5), corresponding to an EBITDA margin of 47%.
• Operational EBIT increased by 249% to SEK 711.8 million (204.0) corresponding to an Operational EBIT margin of 34% (18%).
• Cash flow from operating activities before changes in working capital amounted to SEK 869.8 million (306.0).
• Cash flow from operating activities amounted to SEK 732.3 million (441.3).
• Earnings per share was SEK 0.26 (0.17).
• Adjusted earnings per share was SEK 1.51 (0.51).

Matthew Karch joins Embracer Group’s Board of Directors

The Extraordinary General Meeting of Embracer Group AB (publ) held today, has elected Matthew Karch as a new board member. Matthew has a solid industry background, and for the past 19 years, Matthew has served as CEO of Saber and has grown the company from a two-person studio to one of the larger independent developers in the industry.

Embracer Group publishes Full Year Report and Q4, January-March 2020: OPERATIONAL EBIT INCREASED 35% TO SEK 1,033 M FOR THE FINANCIAL YEAR

FOURTH QUARTER, JANUARY–MARCH 2020 (COMPARED TO JANUARY–MARCH 2019)

• Net sales were SEK 1,339.1 million (1,630.5). Net sales of the Games business area decreased to SEK 903.5 million (1,034.9). Net sales of Partner Publishing/Film business area decreased to SEK 435.6 million (595.6), mainly due to the covid-19 pandemic closing of retail outlets towards the end of the quarter.
• EBITDA amounted to SEK 495.2 million (618.6), corresponding to an EBITDA margin of 37%.
• Operational EBIT amounted to SEK 286.0 million (395.9) corresponding to an Operational EBIT margin of 21%.
• Cash flow from operating activities before changes in working capital amounted to SEK 384.6 million (527.1).
• Cash flow from operating activities amounted to SEK 765.7 million (777.2).
• Earnings per share was SEK 0.42 (0.37).
• Adjusted earnings per share was SEK 0.97 (1.00).

FULL YEAR, APRIL 2019–MARCH 2020 (COMPARED TO APRIL 2018–MARCH 2019)

• Net sales increased 3% to SEK 5,249.4 million (5,121.2). Net sales of the Games business area grew 31% to SEK 3,196.5 million (2,447.1), whereas the Partner Publishing/Film business area decreased to SEK 2,052.9 million (2,674,1).
• EBITDA increased 33% to SEK 1,821.3 million (1,366.7), corresponding to an EBITDA margin of 35%.
• Operational EBIT rose 35% to SEK 1,033.0 million (765.8), corresponding to an Operational EBIT margin of 20%.
• Cash flow from operating activities before changes in working capital amounted to SEK 1,604.2 million (1,248.2).
• Cash flow from operating activities amounted to SEK 1,728.3 million (656.6).
• Earnings per share was SEK 0.91 (1.19).
• Adjusted earnings per share was SEK 2.81 (2.12).

NOTICE OF EXTRA GENERAL MEETING IN EMBRACER GROUP AB

The shareholders of Embracer Group AB, reg. no. 556582-6558, (the "Company") are hereby invited to the extra general meeting on Wednesday 20 May 2020 at 08.30 am CET at Baker McKenzie''s premises at Vasagatan 7 in Stockholm. The doors to the meeting will open at 08.15 am CET.

Embracer Group successfully completed Direct issuance of 18.5 million new B shares raising proceeds of SEK 1,646.5 million

INSIDE INFORMATION: The Board of Directors of Embracer Group AB (“Embracer Group” or the “Group”) has, following its intention of a placement as communicated in the Group’s press release yesterday, resolved to issue 18,500,000 Class B shares, based on the authorization granted by Embracer's annual general meeting on September 17, 2019 (the “Directed new share issue”). The subscription price in the Directed new share issue is SEK 89.0 per share and has been determined through a so-called “accelerated book-building” procedure led by Carnegie Investment Bank AB (publ) and Joh. Berenberg, Gossler & Co. KG (“Berenberg” and jointly with Carnegie Investment Bank AB referred to as "Managers"). Embracer Group will receive gross proceeds amounting to SEK 1,646.5 million (approximately USD 164 million) through the Directed new share issue.

Embracer Group announces intention to carry out a Directed new B share issue

INSIDE INFORMATION: Embracer Group AB (“Embracer Group” or the “Group”) hereby announces its intention of a placement of approximately 5% new Class B shares (the “New shares”) through the issuance of new shares directed to institutional investors, which is intended to be carried out based on the authorization granted by the annual general meeting September 17, 2019 (the “Directed new share issue”). Embracer Group has engaged Carnegie Investment Bank and Joh. Berenberg, Gossler & Co. KG (“Berenberg”), to investigate the conditions for a placement of new

Embracer Group reflects on impact of covid-19 and provides management update

INSIDE INFORMATION: Embracer Group AB (publ) (“Embracer Group” or the “Group”) today provides a management update regarding the Group’s current business performance and comments on the impact from covid-19 on its operations.

EMBRACER GROUP COMPLETES THE ACQUISITION OF SABER INTERACTIVE

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

On 19 February 2020 Embracer Group AB ("Embracer") entered into an agreement regarding the acquisition of the assets in Saber Interactive Inc., which was announced through a press release on 19 February 2020, for an initial purchase price of USD 150 million, on a cash and debt free basis, and a potential earn-out payment of USD 375 million. The total consideration, assuming full earn-out, thus amounts to USD 525 million. All conditions for the transaction have now been fulfilled and the transaction is thereby completed.

Announcement from Embracer Group’s extra general meeting

The extra general meeting of Embracer Group AB ("Embracer Group" or the "Company") was held today on 11 March 2020 in Karlstad, and the following resolutions were passed by the meeting.

David Gardner joins Embracer Group’s Board of Directors

The Extraordinary General Meeting of Embracer Group AB (publ) held today, has elected David Gardner as a new board member as of 1 April 2020. David Gardner has a solid industry background and his professional experience includes entrepreneurial and senior management positions in both Electronic Arts and Atari S.A.

NOTICE OF EXTRA GENERAL MEETING IN EMBRACER GROUP AB

The shareholders of Embracer Group AB, reg. no. 556582-6558, (the "Company") are hereby invited to the extra general meeting on Wednesday 11 March 2020 at 10.00 am CET at Baker McKenzie's premises at Vasagatan 7 in Stockholm. The doors to the meeting will open at 09.45 am CET.