2020/2021
The year in brief

Embracer Group is the parent company of businesses developing and publishing PC, console and mobile games for the global games market.

Embracer Group continued on its long track-record of successful acquisitions of new game publishers, development studios, game IPs and other assets. Moreover, investments in game development increased to a record SEK 1,987 million during the year, laying the foundation for future organic growth. All in all with the aim of building a diverse business that stands on many revenue streams. We call us An Ecosystem for Entrepreneurial Companies in Gaming and Entertainment.

Welcome to our financial year in brief and the figures as of March 31, 2021.

End of Financial year March 31 2021

6,325

Total headcounts

Operative groups

126

Game studios

Investing in future growth

Embracer Group continued its ambitious merger and acquisition agenda during the financial year 1 April 2020 – 31 March 2021, expanding the group from 4 to 6 operative groups, while investing a record SEK 1,987 million in game development, laying the foundation for growing revenues from future releases. Operational EBIT increased 170% to 2,871 million SEK. A series of strategic investments were made, including onboarding two new operative groups; DECA Games and Saber Interactive. During the year we were also pleased to announce the merger with Gearbox Entertainment, a highly creative AAA developer and the merger with Easybrain, a leading mobile game developer of puzzle and logic games. Post closing, in April 2021, Gearbox and Easybrain became the seventh respective eighth operative group of Embracer.

Finance

Net sales

9,024

SEK million

Net sales – games

6,448

SEK million

Operational EBIT

2,871

SEK million

Gross margin

5,406

SEK million

Games Portfolio

Project pipeline

160

Projects under development

Completed

837

SEK million in game development investments

Invested

1,987

SEK million in game development

Some highlights of the year

Added

Internal studios

We introduced Embracer Stories!

We are building a Games Archive

Digital sales

80%

Net sales – games

Digital sales

5.2

SEK billion
Net sales – games

Growth from 3,109 to

6,325

total headcounts in one year

Two new groups

New segment – VR

New segment – Mobile

Organic growth

70%

Net sales, CCY

Organic growth in constant currency for the Games Business Area amounted to 70 percent for the financial year.

50%

completed the training of our compliance code

By the financial year end, 50% of all employees have participated in our interactive compliance code training. Considering that 2,500 new colleagues joined us this financial year, we are on track to reach our goal of everyone taking the training.

Selected launches

Directed issue

1.6

SEK billion
in April 2020

Pressrelease April 8, 2020

Directed issue

5.75

SEK billion
in October 2020

Pressrelease October 7, 2020

Directed issue

7.6

SEK billion
in March 2021

Pressrelease March 17, 2021

New board members – Welcome David and Matthew

11 examples of how sustainability matters throughout the group

Audit Committe and Remuneration Committee established

The Board of directors decided on the Board Meeting 17th of February to convert to the reporting standard IFRS and thereby start the process to become listed on a regulated market. The first set of milestones within the Corporate Governance structure workstream was implemented 17th February with the decision to establish an Audit Committee and a Remuneration Committee.

Comments

Lars Wingefors, founder and ceo

Our strategy is increasingly paying off

Despite a challenging environment with the covid-19 pandemic affecting individuals, businesses and society at all levels, we are humbly summing up another stable year for Embracer Group. Across the Group, our colleagues and business partners have demonstrated impressive resilience, flexibility and operational performance.

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Kicki Wallje-Lund, Chairman of the board

Our journey continues

Things keep moving quickly here at Embracer Group. This year we continued to grow, from 26 to 60 studios, and we are now almost 6,500 people in the family. And our journey continues. This year we have taken even more steps on our sustainability journey by strengthening the foundation that keeps our company on track.

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