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Pareto SecuritiesGaming Seminar 2017

Lars Wingefors, Co-Founder & Group CEO Senta Jacobsen, CEO, Foxglove Studios AB Florian Emmerich, PR-Manager Global, THQ Nordic GMBH

Presenters:

THQ Nordic – Quick overview

- Bohemia, NY- 1 personnel

- Phoenix, AZ- 21 personnel

Group HQ

- Karlstad, SWE- 4 personnel- Group CEO/CFO

- Vienna, AUT- 33 personnel- Operational CEOOperational HQ

- Munich, GER- 29 personnel

Development studio Development studio Distribution office

• Global Video & Computer games publisher

• Publishing & Ops HQ in Vienna

• HQ in Karlstad

• Founded 2011

• Business model of aquiringIPs and catalogues of assets

• 20 acquisitions – THQ Inc (2013), Novalogic (2016),

Jowood (2011) etc

• Management has extensive industry background

8 external announced external studios

Piranha Bytes

Airship Syndicate

Digital Arrow

Weappy Studio

Golem Labs

Wired Productions

11 unannounced external studios

EXTERNAL STUDIOS

.

KING Arts

Kaiko

- Stockholm, SWE- 15 personnel

Foxglove Studios1)

- Karlstad, SWE- 4 personnel

Mirage Games1)

THQ Nordics strategy

3

Growth strategy

We will leverage our growth strategy on 1) our recent complete rebranding and 2) our IPO

AccelerateAsset Care and sequel releases

FurtherIP acquisitions

Addingstudios

Now Future

Focus on sequel releases on our well-established franchises

Examples of sellers include: distressed companies unable to develop the game further, or a seller unwilling to develop the game further since it is not a core title

Adding more internal and external studios, both organically and through acquisitions

Growth goals: Considerable growth in the coming years

Acquiresmaller

publishers

Explore IP licensing and mobile

Acquire smaller publishers

Explore opportunities for licensing of games into new geographies

Responsibly explore venturing into mobile

Source: Company information

Core business model

Now

We acquire, develop, publish and distribute our own games

~79 IPs/FRANCHISES AND 200+ GAMES

O W N E D G A M E S

51% of sales (2016)

DIGITAL DISTRIBUTION WORLDWIDE

49% of sales (2016)

PHYSICAL DISTRIBUTION WORLDWIDE

Core

60+ TITLES

We publish and distribute others’ games

P U B L I S H I N G D E A L S

71%of 2016net sales

29%of 2016net sales

40+% growth in both revenue and ebit during 2016

5

2016: 59% catalogue income (MSEK

178)

2016: 41% Asset Care and publishing

releases (MSEK 124).

Still no sequel released during 2016.

2016 2015

Net Sales 302 213

Ebit/Operating profit 95 67

Ebitda 132 105

Depriciation - own development -24 -26

Depriciation - IP rights -13 -12

Ebit Margin 31% 31%

Ebitda Margin 44% 49%

All figures in MSEK

Strong cash & equity position – substantially increased investments during 2016

6

Unutilized credit facilities of

MSEK 71, the group’s total

available cash were MSEK 238

IPO at Nasdaq First North raised

MSEK 222 in November 2016.

2016-12-31 2015-12-31

Cash 167,5 25,6

Equity 345,1 84,2

Equity/assets ratio 74% 48%

Cashflow from operations 99,2 109,9

Own developed, finished products 18,3 26,6

IP-rights 36,1 26,6

Ongoing development 174,3 51,3

Total intangible assets 228,7 104,5

All figures in MSEK

Strong pipeline for 2017 and onwards

Major sequelbased on key franchise

Brand-new games based on best-selling

comic book

7

SEK174MOngoing development

as of 31 Dec 2016(investments in “ongoing projects””)

SEK54MFinished own dev & IPs

as of 31 Dec 2016

By December 31,

we had 7 announced

and 20 unannounced

projects in our pipeline.

Major sequelbased on key franchise

Our first majorbrand-new game

development

“Elex is definitely the most ambitious game that

we saw at E3 this year”– NewGameNetwork

€$59.99 €$49.99€$29.99 €$49.99 €$49.99

Premium pricings

Original studios and/orwell-suited quality studios

Owned, 70% Publishing, 100% Owned, 100% Owned, 100% Owned, 100%

Major sequelbased on key

franchise

Only Asset Care and publishing releases in Q1 & Q2.

Soft launch of Foxglove mobile titles in H1.

Major sequels of our own IPs & publishing titles in Q3 & Q4.

As of today no delays confirmed however product quality is always key for

longtail/term value.

We are expecting to make further product announcements on both

owned and publishing titles in the coming quarters. Some will release

already 2017, but foremost will they tease about 2018 and onwards.

2017

Trade Show Line-Up 2017

February March May June August September October

PC Gamer Weekend PAX East Role Play Convention 2017 E3 2017 Gamescom 2017 GameStop Conference Igromir

London, UK Boston, MA, US Cologne, Germany Los Angeles, CA, US Cologne, Germany Las Vegas, NV, US Moscow, Russia

18-19 Februar 2017 10-12 March 2017 27-28 May 2017 13-15 June 2017 22-26 August 2017 date tbd date tbd

EGX Rezzed PAX West Warszawa Games Week Paris Games Week

London, UK Seattle, WA, US date tbd date tbd

31 March - 1 April 2017 Date still tbd (end of august)

Tokyo Games Show

Tokyo, Japan

15 - 18 September 2017

GAME OVERVIEW

• Product Name: SpellForce 3

• Release Date: 2017

• Platform(s): PC

• Product Genre: Real-Time Strategy, RPG

• MSRP: €/$ 49.99

SpellForce 3 - The perfect blend between RTS and RPG! SpellForce 3 goes back to the roots of the SpellForce saga andcombines the RTS and RPG genre in a unique way - all in real time! Explore the world of Eo and become a true legend.

• RTS/RPG Mix: Unique gameplay combining RTS and Top Down RPG genres

• Create & Customize: Create your own hero and develop his skillset as you prefer!

• Build to Fight: Build your own army and fight epic mass battles with it.

• Epic Storyline: Unravel a deep and epic story in the SpellForce universe that doesn’t require having played any

ofthe former SpellForce games.

• Rich Universe & Lore: Explore the world Eo and discover intrigues, secrets and a lot of loot for your hero.

• Apply Some Tactics: Use advance tactics with your RTS army to defeat your enemies

• Multiplayer: Strong multiplayer component with various modes - Play cooperatively or compete against each

other

• Gamestar.de calls it: “The Age of Empires of the Fantasy Genre”

GAME OVERVIEW

• Product Name: Battle Chasers - Nightwar

• Release Date: 2017

• Platform(s): PC/Mac/Xone/PS4

• Product Genre : Role-Play Game, Dungeon, JRPG, Turn-based

• MSRP: €/$ 29.99

Battle Chasers: Nightwar is a new RPG coming to PC, Mac, Xbox One and Playstation 4. Inspired by theclassic console greats, Nightwar features deep dungeon diving, turn-based combat in classic JRPG fashion,and tons of secrets, story and randomly-generated replay greatness.

The Grey Line. An impenetrable wall of mist hovering over the West Waters, stretching endless fromnorth to south, and towering from ocean crest to dark sky above.

Nothing has ever come from, or survived entering, the historic monolith. The great hero Aramus felt acalling from the Grey Line and crossed, despite the dangers. And like countless warriors, vagabonds,fugitives and fortune seekers before him, never returned. Now, his daughter Gully and her unlikely bandof heroes venture into the mist to uncover her father's mission.

Along the way they'll meet friend and foe alike while piecing together the silent history of the Grey Line,and the dark secrets of the hidden continent within. A continent now known as the Crescent Isle.Can anyone escape its dangers?

Classic BattlesThe turn-based combat in Battle Chasers is inspired by the great JRPGs of years past, with three major features: the Dual Mana system; an Active Initiative Bar with random buffs and debuffs; and momentum-shifting super attacks called Battle Surges.

Random Dungeons in Your ControlThe Grey Line has cast an enigma over the Crescent Isle, meaning no two dungeons are alike. Rooms move, yes. But so do monsters, traps, treasure, secrets, rare vendors, weapon enhancement shrines, NPCs, puzzle elements and resources. And you can affect just how that happens.

Exploration and DiscoveryExplore an overworld presented in classic form, peppered with hidden dungeons, rare bosses and randomly appearing creatures and NPCs.

SurvivalPlan for survival. The desolate town of Harm's Way is your only place to prepare. Choose three of the heroes you've unlocked, fill your travel backpack with items from your stash, make sure you've chosen the best equipment and abilities for each hero... and then strike out.

GAME OVERVIEW

• Product Name: ELEX

• Release Date: 2017

• Platform(s): PC/PS4/Xone

• Product Genre: RPG, Open-World, Action, Adventure, Sci-fi

• MSRP: €/$ 49.99 (PC), 59.99 (Consoles)

Elex is a handcrafted action role-playing experience from the award-winning creators of the Gothic series, setin a brand new post-apocalyptic Science Fantasy universe that puts players into a huge seamless game worldfull of original characters, mutated creatures, deep moral choices and powerful action.In Elex, you join the war over a powerful resource that gives people great magic-like powers, but turns theminto indifferent cold creatures. You decide if emotions and humaneness or cold synthetic logic will rule theworld of Magalan.

• Completely seamless Open World experience without borders and loading zones for the ultimateexploration experience

• Vertical Exploration: Use the jetpack to reach any place in the game world• Simulated game world where everything reacts to the players actions and provides for an authentic

atmosphere• Highly interconnected quest system that supports true player choices• Tactical and challenging combat system for close and ranged combat• Universe set in a post apocalyptic science fantasy universe that combines the most interesting aspects of

both genres

GAME OVERVIEW

• Product Name: The Guild 3 / Aristocratic Edition

• Release Date: 2017

• Platform(s): PC

• Product Genre: Eco-Sim, Strategy, RPG

• MSRP: €/$ 49.99 (Standard) 79.99 (Collector’s)

We find ourselves in middle Europe of the year 1400. The dark middle ages, once dominated by nobles and the clergy, ends and a new era begins: the age of free cities, trading and a free mind!

In the The Guild series you create a family dynasty which can last for centuries. While the world around you and your dynasty rearrange themselves again and again – all non-player figures make their own decisions – you have to prove your skills in handicrafts and trading, at social occasion and finally in politics and in malicious intrigues.

For the sequel of the popular The Guild series THQ Nordic, holder of rights and publisher of the series, was able to hire the Canadian developer GolemLabs in 2014. GolemLabs has a lot of experience with strategy games and artificial intelligence, as they developed the renown Superpower 2. The Guild 3 makes use of the very powerful Darksiders engine.

GAME OVERVIEW

• Product Name: Aquanox Deep Descent

• Release Date: 2017

• Platform(s): PC/PS4/Xone

• Product Genre : Underwater, Shooter, Action, Simulation, RPG

• MSRP: €/$ 29.99

Fight - Action-packed vehicle shooter combat that supports a wide variety of play styles

Co-op - 4 player drop-in co-op, with four unique pilots who are all involved in the game story

Customize - Create your ship from an extensive range of ship pieces and various customization options

Explore - Discover the deepest corners of the ocean

RPG Elements - Mining, salvaging, trading and looting

PVP - Classic multiplayer modes, including Deathmatch and Team Deathmatch Dogfighting

18 people across 10 nationalities

Average 10.7 years of experience

Have both console and mobile knowledge

Broad experience within those backgrounds

Been together for 5 years

Joined THQ Nordic in September 2016

Currently developing 2 F2P mobile games

The Muscle Hustle

Snipers vs Thieves

Partnering with PlayLabas the publisher

Currently soft-launched in Malaysia, Philippines, and Indonesia to test retention

Adding Nordics and The Netherlands at the beginning of March to test monetization

Adapt Japanese style mechanics for the western audience

Tactical slingshot wrestling

Card collection / battle game with fusion and evolution mechanics

Gacha based monetization model

SP and PvP modes

Wrestling is popular at the moment

Team “Fortress 2” meets “Deer Hunter”

Defend your bank or rob someone else’s

Asymmetric, synchronous, multiplayer game

3rd person action gameplay with one-finger controls

1st person shooter with tons of weapons and upgrades

Customization & Clans

Currently on Google Early Access

Soft-launched on iOS

2.4 million people have installed

100k DAU

Monetiziation and retention needs to improve before global launch.

THANK YOU!