Embracer Group (EMBRAC) investor relations material

Opening remarks and agenda

• AGM held in Karlstad on 24 September 2026; shareholders approved the chair, meeting language, voting list, due convening, and agenda.

• Represented capital was 62.22% and represented votes 72.09%, including 9 million A shares and 133,394,375 B shares.

Financial performance review

• FY 2025/26 net sales were SEK 15.9bn, down 25% reported and 3% organically; adjusted EBIT was SEK 905m, with a 6% margin.

• Free cash flow was SEK 50m; operating cash flow of SEK 3bn fully funded game-development capex, and year-end net cash was SEK 3.8bn, including SEK 5bn gross cash and SEK 1.2bn debt.

• Q1 FY 2026/27 organic growth was 33%; Cash EBIT increased SEK 146m YoY and cash flow increased SEK 386m YoY, with improvements expected to carry into Q2.

• No major PC/Console releases, divestments, FX, and the prior-year Easybrain sale weighed on comparisons; around half of the seven-point software-adjusted EBIT margin decline was attributed to Easybrain’s divestment.

• Cash EBIT was introduced alongside adjusted EBIT as a primary profitability measure from Q1 FY 2026/27 to better reflect game-development economics and internal business steering.

Board and executive committee updates

• Lars Wingefors was re-elected Chair and Kicki Wallje-Lund appointed Deputy Chair; Jacob Jonmyren, Yasmina Brihi, Cecilia Qvist, and Brian Ward were re-elected.

• Bernt Ingman stepped down after three years; Lars Wingefors recognized his work as Audit Committee chair, citing discipline, attention to detail, and cost oversight.

• Audit and Sustainability Committee and Remuneration Committee memberships were confirmed; PwC was re-elected auditor, with Magnus Svensson Henryson as lead auditor.