Take Two Interactive Software : 2021 Annual Report

CREATIVITY

INNOVATION

EFFICIENCY

2021 ANNUAL REPORT

Generated significant cash flow and ended the year with

$2.7 BILLION

in cash and short-term investments

Delivered record operating results, including	Net Bookings from recurrent
Net Bookings of approximately	consumer spending grew

$3.6 BILLION	48%to a
	new record
Net Cash from Operating Activities of	and accounted for
$912 MILLION 63%
	of total Net Bookings

		One of the most	Participation levels
		reached an all-time
		critically-acclaimed
		high for new and
		and commercially
		returning players, and
		successful video
		recurrent consumer
		games of all time
		spending grew
		with over
		31%
	units sold-in to date
145 MILLION
				Developers working
Digitally-delivered		5,000+ around the world
Net Bookings grew				in game development
27%				and 26 studios
to a new record
and accounted for
87%		Sold-in over 10 million
	units and recurrent consumer
		spending for the
		NBA 2K series grew

of total Net Bookings	73%

DEAR

SHAREHOLDERS,

Fiscal 2021 was an exceptional year for Take-Two. We delivered a diverse array of content, provided innovative ways for our audiences to remain captivated and engaged, and enabled our communities to stay connected with family and friends. We achieved record operating results, including Net Bookings of approximately $3.6 billion - representing 19% growth compared to the prior year - and Net Cash from Operating Activities of $912 million. Net revenue grew 9% to $3.4 billion.

Through the efforts of our colleagues around the world, we achieved these results despite significant, unforeseen and prolonged challenges, which was truly a reflection of our collective resilience and singular commitment to excellence. We are immensely grateful to our teams for their professionalism and passion as we navigated the COVID-19 pandemic together.

ENHANCING OUR ORGANIZATION FOR THE FUTURE

During the year, we enhanced our organization for the long term. We bolstered the depth of our creative teams by hiring more than 700 new developers, including through the acquisition of several talented studios. We invested in IT and infrastructure, which will support us through our next phase of growth. In addition, we deepened our focus on data analytics, which is helping us better understand our players' behaviors and preferences.

To meet the needs of our diverse player base, we broadened our portfolio of offerings and capitalized on diverse business models, including new free-to-play and standalone online titles. We also made several of our games available on streaming and subscription services and further established our direct-to-consumer platforms to offer more variety and convenience for our players.

Our strong balance sheet is a key competitive advantage, and we leveraged our solid financial position to acquire several development studios during the year, including Playdots, Ruffian Games, HB Studios, and HookBang. We ended our Fiscal 2021 with $2.7 billion in cash and short-term investments, which enabled us to continue our strategy of pursuing select inorganic growth opportunities, such as the acquisitions of Nordeus and Dynamixyz during the first half of Fiscal 2022. We are excited about the capabilities that each bring to our business.

In addition, we used the past year to strengthen our culture and expand our philanthropic efforts. We came together with our labels to initiate new fundraising efforts, which supported charities dedicated to COVID-19 relief efforts, as well as initiatives that seek to enhance diversity, equity, and inclusion within our industry and to help eradicate racial injustice within our communities.

We are proud of our collective accomplishments and are very excited about what the future holds for our Company. As a result of the actions we initiated this past year, we believe that Take-Two is in the strongest position in our Company's history, and that we will deliver sustainable, profitable growth for our shareholders for years to come.

TAKE-TWO INTERACTIVE SOFTWARE, INC. 2021 ANNUAL REPORT 1

OUR KEY ACHIEVEMENTS

• We delivered record digitally-delivered net revenue and Net Bookings. Digitally-deliverednet revenue grew 23% to $2.9 billion and digitally-deliveredNet Bookings grew 27% to $3.1 billion.
• We generated record net revenue and Net Bookings from recurrent consumer spending ("RCS"). RCS accounted for 62% of total net revenue and 63% of total Net Bookings.
• NBA 2K21 exceeded our expectations, with strong unit sales and RCS growing 73%. Consumer engagement with NBA 2Kwas outstanding, with approximately 2.1 million users playing the game daily. In April 2021, 2K and Visual Concepts expanded the NBA 2K franchise with the release of NBA 2K21for Apple Arcade - our first offering for the platform that quickly became one of its most popular titles.
• Grand Theft Auto continued to expand its audience and set new benchmarks. Grand Theft Auto Online's participation levels reached an all-timehigh from both new and returning players, and RCS grew 31%, achieving a new annual record. Sales of Grand Theft Auto V also surpassed our expectations, and in calendar 2020, more copies of Grand Theft Auto V were sold than in any other year except for when it first launched in 2013.
• Red Dead Online grew its audience, with active players increasing significantly and RCS performing above our plans. The title's success was due in part to our release of a standalone version of Red Dead Online that for the first time, allowed players who did not already own Red Dead Redemption 2to experience Red Dead Online, including access to all future content updates.
• PGA TOUR 2K21 surpassed our expectations. To drive momentum in the series further, 2K entered into an exclusive, long-term agreement with golf legend and icon, Tiger Woods, to serve as its Executive Director and consultant. We believe this partnership will enhance the series' ongoing innovation and authenticity.
• We announced a partnership with OneTeam Partners and the National Football League Players Association that will allow 2K to include the names, numbers, images, and likenesses for over 2,000 current NFL players in its non-simulationfootball games that are currently in development and planned to launch in the coming fiscal years.
• Private Division continued to contribute to our results and now has three titles that have sold-in over 1 million units. This includes, Ancestors: The Humankind Odyssey, Kerbal Space Program (which has sold-inover 5 million units) and The Outer Worlds (which has sold-inover 3 million units). Private Division signed new publishing agreements with top independent developers Moon Studios and Roll7, with the first title, OlliOlli World, expected to launch this winter during Fiscal 2022.
• We experienced strength in our mobile games, with Dragon Cityand Monster Legends exceeding our expectations. Strong seasonal content and features, as well as increased marketing investments, helped drive Net Bookings growth of 44% for Social Point during the year.

• TAKE-TWOINTERACTIVE SOFTWARE, INC. 2021 ANNUAL REPORT

• We leveraged our balance sheet to unlock shareholder value through strategic acquisitions, including:
• • Playdots (September 2020)- a mobile game developer best known for Two Dots, which has been downloaded approximately 100 million times since its launch six years ago.
  • Scotland-basedRuffian Games (October 2020)- now operates under the name of Rockstar Dundee to support the label's projects in development.
  • HB Studios (March 2021)- developer of PGA TOUR 2K21, underscoring 2K's commitment to our successful and growing golf franchise.
  • HookBang's Austin-based video game division (March 2021)- renamed Visual Concepts Austin to help collaborate on the NBA 2K series.
  • Nordeus (June 2021)- mobile game developer best known for Top Eleven, the world's most successful mobile soccer management game with over 240 million registered users.
  • Dynamixyz (July 2021)- France-based world-class leader in video-based facial animation services that will be providing its cutting-edge proprietary technology exclusively for our publishing labels and development studios.

OUR COMMITMENT TO ENVIRONMENTAL,

SOCIAL, AND GOVERNANCE (ESG) ACTIVITIES

This past year has been like no other in our history and reflected the increasing need for corporations to operate responsibly and responsively to help address both the societal challenges of today and those that we may face in the future.

Now more than ever, we are focusing on and measuring the impact of our ESG activities, which is critical for all of our various stakeholders - our consumers, employees, business partners, stockholders, and more. Key highlights from the year include:

• Our number one priority has remained the health and safety of our employees and their families: All of our offices moved largely to work-from-homeenvironments by mid-March2020, and our unwavering practice has been that we will not sacrifice safety for speed. As we begin to open many of our offices in the coming months, we are following strict protocols from local governments and health officials to ensure that we are adhering to their safety standards.
• We enhanced our philanthropic efforts: Rockstar Games, 2K, Private Division, and Social Point
  joined together and donated nearly $20 million, providing support to approximately 200 organizations throughout the world. Our efforts supported COVID-related charities and other causes.
• We supported educational programs for students: We believe that to enact meaningful, sustainable change, especially for those in underserved and underrepresented communities, there needs to be a continuum of activism and engagement, with educational programs serving as a core foundation. We support a variety of organizations that provide STEM and entry game design programs for students in elementary, middle and high school. This is in addition to providing financial support and endowing scholarship programs with a variety of key partners in our industry.

TAKE-TWO INTERACTIVE SOFTWARE, INC. 2021 ANNUAL REPORT 3