Focus Entertainment : Annual Results and Lineup Overview

FY 2021/2022 Annual Results and Lineup Overview

Paris, June 16th, 2022

DISCLAIMER -

This presentation ("Presentation") has been produced by FOCUS

ENTERTAINMENT (the "Company") for the sole purpose of being used at

investor presentations.

By receiving this Presentation, and/or attending this meeting, you

acknowledge yourself to be acquainted with the restrictions detailed at

the end of this presentation.

2

FY 2021/2022

AUDITED ANNUAL RESULTS

Audit reports not yet issued

3

FY 2021/22 - P&L and EBITDA

(in millions of euros)	FY 2021 2022	FY 2020 2021	Variation
31/03/2022	31/03/2021	%
Revenue	142,6	100%	171,0	100%	-17%
Gross margin	42,2	30%	51,1	30%	-17%
Production costs	(7,7)	-5%	(7,4)	-4%	3%
Sales and marketing expenses	(13,1)	-9%	(10,3)	-6%	27%
General and administration expenses	(8,4)	-6%	(8,6)	-5%	-3%
Other operating income (expenses)	0,1	0%	0,1	0%
EBITA1	13,2	9%	24,8	15%	-47%
Amortization of goodwill	(4,0)
EBIT	9,1	6%	24,8	15%	-63%
Financial income (expenses)	(1,7)		(1,7)
Exceptional income (expenses)	(1,3)		(3,0)
Income tax	(3,0)		(6,8)
Consolidated net income	3,1	2%	13,3	8%	-77%
Minority interests	(0,1)		-
Group net income	3,0	2%	13,3	8%	-78%
EBIT	9,1		24,8		-63%
D&A and provisions	(33,0)		(25,7)		30%
EBITDA	42,1	30%	50,5	30%	-16%

KEY TAKEAWAYS

Revenue at €142,6m, including a €5,6m contribution from Dotemu*

• Very high comparable basis with the worldwide lockdown in 2020/21 that drove the back catalogue sales up (+60% YoY)
• Contrasted successes of games launched during the year
• Evil West and Hardspace Ship Breaker release delayed to 2022/23

Gross margin rate resilience at 30% : the overall product mix improvement offsets the accelerated amortization on 2 games

Production costs show a limited increase thanks to higher capitalization of our development teams costs which partially offset the higher costs generated by more launches this year

Marketing costs increase reflects a more games launched this year

Financial result is related to the debt financing plan secured in July 2021; FX impact is unsignificant in 2021/22

EBITDA margin is maintained 30% of revenue

1 EBITA: Adjusted EBIT, ie. EBIT before amortization and depreciation of goodwill * DOTEMU is consolidated since September 30th,2021

4

FY 2021/22 - Balance Sheet

(in millions of euros)	31/03/2022	31/03/2021
ASSETS
Intangible assets	81.1	67.7
Goodwill	68.7	6.2
Property, plant & equipment	0.8	0.7
Financial assets	1.2	1.4
Total Non-Current Assets	151.9	76.0
Inventory and works in progress	0.9	1.5
Trade receivables	13.4	15.4
Other receivables, accruals and deferrals	22.4	6.7
Investment securities	0.6	-
Cash and cash equivalents	62.0	19.5
Total Current Assets	99.2	43.1
Total Assets	251.0	119.2
EQUITY & LIABILITIES
Capital	7.8	6.4
Share premium	90.2	22.4
Reserves	32.7	26.5
Profit(loss) for the year	3.0	13.3
Total Equity (attributable to the group)	133.7	68.5
Minority Equity	1.6	-
Provisions	0.9	1.7
Borrowings and financial debt	66.1	12.5
Trade payables	19.0	23.4
Other payables, accruals and deferrals	29.7	13.0
Total Liabilities	251.0	119.2

KEY TAKEAWAYS

Intangible Assets related to Games represent €79.4m compared

to €67,3m a year before, +18% YoY

The group acquired 4 studios in 2021/22 representing a €66.5m

Goodwill

that is amortized over 10y.

• Streum On Studio 60% acquired in April 2021
• Dotemu 77,5% acquired in Sept 21
• Douze Dixièmes 50,01% acquired in Oct 21
• Leikir Studio 60% acquired in Feb 22

Total Equity more than doubled at 133,7m€ following the May 2021 capital increase

The financial debt is at €66,1m following the financing plan secured in July 2021

Net Treasury stands at €(14m), including a payable related to earn outs), versus €7m as of March 31,2021

5