Embracer Group (EMBRAC) AGM 2024 summary

Opening remarks and agenda

• The meeting opened with a welcome, agenda overview, and confirmation to conduct proceedings in English for inclusivity.

• Meeting opened by Chair Kicki Wallje-Lund, with a welcome from equity analyst Erik Larsson and presentations by CEO Lars Wingefors and CFO Müge Bouillon.

• The agenda included presentations, a market update, operational and financial reviews, ESG/sustainability, market insights, and a Q&A session.

• AGM held on 19 September 2024 in Karlstad, Sweden, with resolutions passed on key governance and financial matters.

• Q&A session hosted by Erik Larsson followed the main presentations.

Financial performance review

• Net sales for FY 2023/24 reached SEK 42.2 billion, up 12% year-on-year, with 1% organic growth, driven by acquisitions and strong performance in tabletop and entertainment segments.

• Adjusted EBIT was SEK 7,063m, up 11% year-on-year, with a stable 17% margin.

• Free cash flow improved to SEK 1.5 billion, reversing a negative trend from the previous year.

• Operating cash flow was SEK 9.0bn, with SEK 6.4bn invested in game development and a year-end cash balance of SEK 3.5bn.

• Income statement and balance sheet, including consolidated accounts, were adopted for the financial year 2023/2024.

Board and executive committee updates

• The board held 54 meetings, focusing on restructuring, divestments, and the proposal to split into three standalone, publicly listed companies.

• New board member Brian Ward was elected, bringing extensive industry and M&A experience; several directors were re-elected.

• Cecilia Driving and David Gardner not re-elected; Kicki Wallje-Lund re-elected as chair.

• PwC was re-elected as auditor, with Magnus Svensson Henryson as lead auditor.

• Special review and comprehensive restructuring program implemented, with attention to balance sheet strength and capex reduction.