Take Two Interactive Software : Q4 2021 Earnings Presentation

Take -Two Interactive Software, Inc .

( N A S DAQ : T T WO)

Fourth Quarter and Fiscal 2021 Results

Cautionary Note:

Forward Looking Statements

The•statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for the Company's future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties including: the uncertainty of the impact of the COVID- 19 pandemic and measures taken in response thereto; the effect that measures taken to mitigate the COVID-19 pandemic have on our operations, including our ability to timely deliver our titles and other products, and on the operations of our counterparties, including retailers and distributors; the effects of the COVID-19 pandemic on consumer demand and the discretionary spending patterns of our customers, including as the situation with the pandemic continues to evolve; the impact of reductions in interest rates by the Federal Reserve and other central banks, including on our short-term investment portfolio; the impact of potential inflation; volatility in foreign currency exchange rates; our dependence on key management and product development personnel; our dependence on our NBA 2K and Grand Theft Auto products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation 5 and Xbox Series X; the timely release and significant market acceptance of our games; the ability to maintain acceptable pricing levels on our games; and risks associated with international operations.

Other important factors and information are contained in the Company's most recent Annual Report on Form 10-K, including the risks summarized in the section entitled "Risk Factors," the Company's most recent Quarterly Report on Form 10-Q, and the Company's other periodic filings with the SEC, which can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

4Q2021 AND FY2021 RESULTS SUMMARY: GAAP

FINANCIAL SUMMARY ($ in millions, except EPS)

		Q 4			FY21
	A C T U A L	G U I D A N C E		A C T U A L	G U I D A N C E
GAAP Net Revenue	$ 8 3 9	$ 7 0 2 T O $ 7 5 2	$ 3 , 3 7 3	$ 3 , 2 3 5	T O $ 3 , 2 8	5
Operating Expenses	$ 3 0 4	$ 3 1 6 T O $ 3 2 6	$ 1 , 2 0 8	$ 1 , 2 2 0	T O $ 1 , 2 3 0
GAAP Net Income	$219	$102 TO $113	$589	$472 TO $484
G A A P E P S	$ 1 . 8 8	$ 0 . 8 8 T O $ 0 . 9 8	$ 5 . 0 9	$ 4 . 0 8 T O $ 4 . 1 8

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4Q2021 AND FY2021 RESULTS SUMMARY: SELECT MANAGEMENT RESULTS

SELECT FINANCIAL DATA ($ in millions)

		Q 4			FY21
	A C T U A L	G U I D A N C E		A C T U A L	G U I D A N C E
Net Bookings	$ 7 8 5	$ 6 0 2 T O $ 6 5 2	$ 3 , 5 5 3	$ 3 , 3 7 0 T O $ 3 , 4 2 0
R e c u r r e n t C o n s u m e r	+17%	+5%	+48%	+45%
S p e n d i n g G r o w t h ( R C S )
Digitally-Delivered Net	+ 8 %	- 1 0 %	+ 2 7 %	+ 2 0 %
Bookings Growth
N o n - G A A P A d j u s t e d	-	-	$ 9 2 0	O V E R $ 7 5 0
U n r e s t r i c t e d O p e r a t i n g
C a s h F l o w ( A U O C F )

• Highest level of 4Q Net Bookings on record
• RCS outperformance primarily driven by NBA 2K
• Digitally delivered Net Bookings exceeded expectations, due to outperformance of RCS and digitally- delivered game sales

• FY Net Bookings exceeded our initial guidance by ~$1 billion
• RCS accounted for 63% of Net Bookings, a new record level
• Digitally delivered Net Bookings exceeded expectations, due to outperformance of RCS and digitally-delivered game sales
• AUOCF reached a record level and exceeded

initial expectations by $570 million

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N e t R e ve n u e & N e t B o o k i n g s

GAAP Net Revenue

$ in Millions

$3,089	$3,373	$3,140 -
$453	$3,240

$710	62% of
	Total

$761		$839	45% of
	$86
$126	67% of	Total	$2,919
54% of	Total			$2,379
Total		$753
$635

Q4 FY20		Q4 FY21				FY20	FY21			FY22E
Recurrent Consumer Spending		Physical & Other		Digital		Recurrent Consumer Spending		Physical & Other			Digital

Net Bookings (Operational

$3,553

$3,200 -

Metric)

$458

$3,300

$ in Millions

$2,990

$550

63% of

Total

59% of

51% of

Total

$729

$785

Total

$3,095

67% of

$61

87% of Total

61% of $57

$2,440

Total

Total

$672

$724

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Q4 FY20

Q4 FY21

FY20

FY21

FY22E

Recurrent Consumer Spending

Physical & Other

Digital

Recurrent Consumer Spending

Physical & Other

Digital