17 September 2020

DISCLAIMER: This presentation contains forward-looking statements. These statements have been made by
the Directors in good faith based on the information available to them up to the time of their approval of thispresentation. Due to inherent uncertainties, including both economic and business risk factors underlying suchforward-looking information, actual results may differ materially from those expressed or implied by theseforward-looking statements. The Directors undertake no obligation to update any forward-looking statements
contained in this presentation, whether as a result of new information, future events or otherwise.

2

H1 impact:
resilientbusiness model
despiteconstraints
under COVID-19

Outlook:
Steadilyimproving
operational
performance
under COVID-19•

January and February was in line with expectations•

Demand for most of our services has remained strong throughout the operational disruption•

From May the vast majority of our business has been operated in a work from home model•

Since June, some select studios have re-opened (most Audio studios and some Testing locations)•

Trading in July and August have been strong despite some continued disruption from COVID-19•

Constraints on recruitment should lessen as governments ease back on COVID-19 support for
unemployed•

We are retaining a very flexible approach to where and how we work over the months ahead•

Continue to see good demand for services, as clients look for support during this challenging time andreappraise their production arrangements•

Dividend: Board remains committed to resuming its progressive dividend policy in 2021

Expect good revenue growth and incremental margin increases as our operational environment
stabilises further and our structural drivers remain intact

3

•
•

Fast growing games industry – c. 8% CAGR
+7.7% CAGR

Content demand remains strong: Upcoming new
console launches, streaming platform
developments and increased game play

$159.3bn$138.5bn•

Trend towards outsourcing as the industry deals
with an increasingly complex environment•

Supply chains are becoming more structured as
the industry gradually matures•

Scale begets scale in an otherwise highly
fragmented market•

Fragmented industry provides opportunities forselective consolidation$200.8bn

2018$145.7bn

2019

2020

2023

Source: Newzoo 2020 Global Games Market Report, May 20204

+ 13.3%
Reported growth in H1 2020
to €173.5m (H1 2019: €153.2m)+ 8.0%
Organic Revenue growth (H1 2019: 17.3%)+ 19.3%
Increase in H1 Adjusted EBITDA
to €30.8m (H1 2019: €25.8m)

17.8%
Adjusted EBITDA marginincreased by 0.9% pts (H1 2019: 16.9%)

Definitions of the performance measures are provided in the
Alternative performance measures chart in the Appendix

5€110mraised in May placing

3
Acquisitions since placing•

Marketing services:
Maverick - consideration of up to £3.6m•

Game development:
Coconut Lizard – consideration of up to £2m
Heavy Iron – consideration of up to US$13.3m

6

H1 Financial overview
Jon Hauck, CFO

7

Definitions of the performance measures are provided in the
Alternative performance measures chart in the Appendix

Revenue

H1 2020€m
173.5

H1 2019€m
153.2% change

Organic revenue growth

8.0%

17.3%

Adjusted EBITDA
Margin

30.8
17.8%

25.8
16.9%

19.3%

Adjusted PBTMargin

21.7
12.5%

18.4
12.0%

17.9%

PBT

11.1

6.7

66.0%

Adjusted EPS (€ cents per share)

25.25

21.53

17.3%

Adjusted free cash flow

10.9

5.5

96.8%

Adjusted cash conversion rate

50.2%

30.0%

13.3%

•

Reported revenue up 13.3%, Organic revenue up 8.0%•

Adjusted EBITDA up 19.3% with margin improving to 0.9% pts
17.8%•

Margin improvement from leverage of prior year investments
held back by revenue shortfalls•

Adjusted PBT up 17.9% with margin improving to 0.5% pts to 12.5%•

PBT increased by 66%, reflecting the increase in Adjusted PBT,COVID-19 government employment retention subsidies of €3.4m
offset by a €1.9m non-cash impairment of intangible assets and anincrease in the charge for share options schemes

8

% of
revenueTotal
growthOrganic
growthH1 2020 progress• Good revenue performance despite some COVID-19 disruption

15%

18.5%

7.9%

• Early stages of the COVID-19 affected our five studios in China and some earlier
stage Marketing services held back as marketing plans were reassessed• Our largest service line, Game Development delivered strong H1 performance

22%

30.7%

25.7%

• Growth supported by continued recruitment across all studios with additional newstudios in Leamington Spa, Singapore and Austin also helping to meet the strong
demand we are seeing for our services• Audio impacted by studio closures reducing voice over recording capacity

12%

12.6%

0.5%

• Partially mitigated with remote recording and since June, most studios are now
operational

9

% of
revenue
21%

12%

Total
growthOrganic
growthH1 2020 progress• Robust performance given the operational constraints created by the COVID-19
lockdown measures

12.6%

10.7%

(4.8%)(7.4%)• While constrained at the beginning of the lockdown, in consultation with our clients,
transitioned quickly to move the majority of project teams to remote working and are
now using the studios for priority activities• Growth held back by delays in the receipt of content as production schedules further
upstream were disrupted by work from home transitions at some of our clients• Return to growth in July and August of H2

6%

3.9%

1.9%

• Similar operational constraints as Functional Testing, compounded by some lack ofnative language resources as they returned to their home countries• Successfully transitioned the majority of project teams to remote working and now
able to use our studios for priority activities

11%

8.2%

5.5%

• Returned to growth in H1, representing a good performance in the context of the
COVID-19 disruption• Successfully transitioned teams around the world to remote working arrangements
enabling Player Support to provide continuous support to its clients10Definitions of the performance measures are provided in the
Alternative performance measures chart in the Appendix

H1 2020€m

H1 2019€m

Change€m

Adjusted EBITDA

30.8

25.8

5.0

MMTC and VGTR

(4.3)

(7.0)

2.7

Working capital and other items

(6.6)

(5.8)

(0.8)

Capex

(4.9)

(5.4)

0.5

Payments of principal on lease liabilities

(3.9)

(3.2)

(0.7)

COVID -19 subsidy claims

3.4

-

3.4

Operating cash flows

14.5

4.4

10.1

Interest paid

(0.9)

(0.7)

(0.2)

Free cash flow before tax

13.6

3.7

9.9

Tax

(2.0)

(3.8)

1.8

Free cash flow

11.6

(0.1)

11.7

Adjusted free cash flow

10.9

5.5

Adjusted cash conversion rate

50.2%

30.0%

•

•

€11.7m increase in free cash flow year on year driven by:•

Increase in Adjusted EBITDA of €5.0m•€2.7m increase for MMTC/VGTR credits due to phasing of
VGTR receipts and lower MMTC claims in Canada•

Trade receivable days of 46 in line with the prior year•

€0.5m reduction in capex despite higher revenue reflecting
lower levels of expansionary capex and reduced equipment
purchased during COVID-19 period•€3.4m receipt of COVID-19 overseas government employment
retention subsidies in the period•€1.8m decrease in tax payments in the period largely due to aprior year tax settlement

Improvement in the adjusted cash flow conversion rate to 50.2% (H1
2019: 30.0%) for the seasonally lighter first half11Definitions of the performance measures are provided in the
Alternative performance measures chart in the Appendix•
H1 2020€m

H1 2019€m

Change€mFree cash flow

11.6

(0.1)

11.7

M&A - acquisition spend

(1.3)

(7.0)

(5.7)

M&A – acquisition and integration costs

(1.2)

(1.7)

0.5

-

(0.8)

0.8

Shares issue for cash
Underlying increase / (decrease) in
net cash / (debt)
FX and other items

110.7

0.6

110.1

119.8

(9.0)

128.8

(0.9)

0.4

(1.3)

Increase in net cash / (debt)

118.9

(8.6)

127.5

Opening net cash / (debt)(17.9)(0.4)

Closing net cash / (debt)

101.0

(9.0)

Dividends paid

Acquisition spend of €2.5m:•€1.3m on acquisitions in the first half following the resumptionof M&A programme in May - further cash spend of c. €6m in H2
to date following Maverick and Heavy Iron acquisitions•€1.2m of integration costs including €0.4m consideration in
respect of a prior year acquisition•

Net proceeds of €110.7m from equity placing used to pay down
drawings on RCF and available to deploy on the value creating M&A
programme•

Increase in net cash of €118.9m versus decrease of €8.6m in H1
2019•

Net cash at 30 June 2020 of €101.0m (H1 2019 net debt €9.0m)

12Resilient business model
•

•

•

•

•

13

Cash generative business with an adjusted free
cash flow conversion of 50% in H1 (H1 2019: 30%)

Robust balance sheet•

Continued strong demand for the Group’s services•

Ability to operate almost all services in a work fromhome model if studios are temporarily closed•

Ability to flex the cost base in response to a
reduction in production capacity•

The historical resilience of the broader video games
industry in times of economic downturn

Recent placing provided net proceeds of ~€110m to
deploy on M&A programme
Revolving Credit Facility (RCF) of €100m expiring in
2022 with option to extend for 2 years€201m of liquidity through cash and undrawn
committed headroom on the facility
Balance sheet capacity to:•provide flexibility to execute acquisition strategy•

support the business and customers throughand beyond any COVID-19 disruption[Placeholder design]13

H1 Strategic overview
Andrew Day, CEO14

To become the ‘go to’ provider for technical and creative services to the video games industry•

a unique end-to-end global services platform in a highly fragmented market•

relationships with the top games companies who are increasingly outsourcing; in a more structured way•

unrivalled scale and flexible resource, in proximity to our clients•

attractive employer to talent pools around the world•

a resilient business, diversified by geography, service and client base•a compelling platform for target acquisitions

Increasing barriers to entry as a result of reputation for quality, expertise, scale, global reach and full range of services

15

•
•
•
•

Increasingly integrated with game development pipelines
Increasing numbers of client specific, dedicated operations
Highly attached to game titles & client service infrastructures
Moving beyond game production budgets to marketing spend

Art & Marketing Services
Game Development
Audio Services

7%

Functional Testing

20%

Localization

15%

8%

10%

Localization Testing
2%

Player Support

17%

14%
6%

6%

13%

11%

22%

17%
6%

12%

12%

17%

17%

28%

9%
33%
18%

12%

14%

17%

11%

13%

20%

21%

15%

21%

14%

20%

2016

2017

2018

2019

H1 2020

€97m

€151m

€251m

€326m

€173m
16

Art & Marketing Services
Game Development
Audio Services
Functional Testing
Localization
Localization Testing
Player Support

An average of 8,002 people in
H1 2020, working in over 50
languages, more than 60
studios, in 21 countries, on 4
continents17* Newzoo, Top 25 Games Companies by Revenue, Q4 2019
and Sensor Tower, Top Apps Games publishers, Q2 2019

We work with 23 of the top 25 games companies
by revenue and 10 of the top 10 mobile games
publishers by revenue.*18

Definitions of the performance measures are provided in the
Alternative performance measures chart in the Appendix* Adjusted EBITDA Pre-IFRS 16

Revenue – 50% CAGR 2016-2019

Organic Revenue growth 2016 - H1 2020

350
300
€m 250
200
150
100
50
0

25
%

20
15
10
5

0
2016

2017

2018

2019

2016

H1 20

2017

2018

2019

H1 20

Adjusted EBITDA – 44% CAGR 2016-2019*

Adjusted PBT – 40% CAGR 2016-2019

70
60
50
40
€m 30
20
10
0

45
40
35
30
25
20
15
10
5
0

€m

2016*

2017*

2018*

2019

H1 20

2016

2017

2018

2019

H1 20
19

Definitions of the performance measures are provided in the
Alternative performance measures chart in the Appendix

150

No of clients using 3 or more
services
93

100

99

40%

124

108

Limited customer concentration

2

30%

64

20%

50

1

10%
0%

0
2016

2017

2018

2019

H1 20

0
2016

2017

% Revenue top 5 customers

2018

2019

H1 20

No of customers over 10% of revenue

Revenue and margin growth
350
300
250
€m 200
150
100
50
0

20
15
10
5
0
2016

2017

Revenue (€m)

2018

2019

H1 20

Adj. PBT Margin (%)%

Revenue by service line (€m)

80
70
60
50
€m 40
30
20
10
0
Art Services

Audio
Production

2016

Localization

2017

Functional
Testing

Localization
Testing

2018

2019

PlayerSupportGame
Development

H1 20
20

% of
revenueTotal
growthOrganic
growth

18.5%

7.9%

Demand for all our services in this area has been building and we expect to maintain
good levels of activity through to the end of the year complemented by acquisitions

30.7%

25.7%

COVID-19 is resulting in some delays in getting new projects started which may hold itback the very strong growth seen in H1, albeit underlying trend is extremely positive

12.6%

0.5%

Normalised COVID-19 measures should see Audio benefit from a better H2 for AAA
game releases / new console launches

12.6%

10.7%

Seeing increased demand and beginning to see an easing in recruitment constraints.
Expect to scale quickly into peak months, albeit against strong comparatives(4.8%)(7.4%)

H2 performance improving with content volumes picking up. Expect to return to organic
growth in H2, with Localization’s flexible production model able to respond quickly

3.9%

1.9%

Expect strong demand from a stronger H2 for AAA game releases / new console
launches. Ability to meet this demand should continue to improve through H2

8.2%

5.5%

Expect Player Support to trade strongly through H2 as focussed business development
activities have started to produce interesting new business prospects

15%

Outlook

22%

12%

21%

12%

6%

11%

21

€116m

€350m

€347m

Average organic
growth +15%

€300m

Art & Marketing Services

11

Game Development
Audio Services

99Functional Testing€250m

Localization

€215m

7

Localization Testing
Player Support

Number of acquisitions

€200m
€150m
€100m
€50m

€16m

4

3

2014

2013 revenue

Acquired revenue

Organic revenue

4

2015

2016

2017

2018

2019

YTD

12m trailing revenue

47
Value creating acquisitions since IPO€201m
in cash and undrawn RCF

Strong pipeline from which we are selecting
highest quality opportunities

Particular focus on Marketing services andGame Development
22

Building our platform
Organic growth•

Continue to expand our end-to-end global services

Focused M&A•

platform•

Enhancing our service lines through further investment in

Development to establish them as go to providers•

capacity, capabilities and geographies•

Leveraging our platform in a cost-efficient manner•

Addressing more of our clients’ outsourcing needs with

Particular focus on Marketing Services and Game

More selective acquisitions to enhance and extend otherservice lines•

Healthy M&A pipeline of high quality opportunities

increased specialism, proximity and flexibility

23

Outlook
Andrew Day, CEO24

Positive start to H2

Trading in the second half has been good with continued growth across all service lines, despiteongoing headwinds from the disruption caused by COVID-19, trading against stronger comparatorsand possibility of continued USD weakness

Maintain remote working model inmost locations

Maintain effective remote working model in the majority of locations for the rest of the year, with afocus on certain priority activities taking place in studios

Margins to increase incrementally

Expect to continue to drive incremental margin increases in the second half and beyond towards
historic norms by the end of 2021

Well positioned in a growth market

Well placed as a diversified provider of scale to deliver on the opportunity presented by the strong
underlying and structural market drivers

Well-funded to deliver ouracquisition and growth strategy

Well-funded to deliver on our value accretive acquisition strategy and we are actively engaging withselected targets from an expanded pipeline of opportunities

25

Andrew Day

Jon Hauck

26

The Group reports a number of alternative performance measures (APMs) to present the financial performance of the business which are not GAAP measures
as defined by International Financial Reporting Standards (IFRS). The Directors believe these measures provide valuable additional information for the users of
the financial information to understand the underlying trading performance of the business. In particular, adjusted profit measures are used to provide theusers of the accounts a clear understanding of the underlying profitability of the business over time. For full definitions and explanations of these measuresand a reconciliation to the most directly referenceable IFRS line item, please refer to the APMs section at end of the Group’s Half Year Results announcement.
Organic Revenue at constant exchange rates is calculated by adjusting the prior year revenues, adding pre-acquisition revenues for the corresponding period of ownership,
and applying the prior year foreign exchange rates to both years.
EBITDA comprises Operating profit as reported in the Consolidated statement of comprehensive income, adjusted for amortisation of intangible assets, depreciation, anddeducting bank charges. Adjusted EBITDA comprises EBITDA, adjusted for share option expense, costs of acquisition and integration and non-controlling interest. In orderto present the measure consistently year-on-year, the impact of COVID-19 government subsidies claimed is also excluded. Both EBITDA and Adjusted EBITDA include theimpact of IFRS 16 in the current and prior year periods.
Adjusted profit before tax comprises Profit before taxation as reported in the Consolidated statement of comprehensive income, adjusted for costs including share option
expense, costs of acquisitions and integration, amortisation of intangible assets, non-controlling interest, foreign exchange gains and losses, and unwinding of discounted
liabilities. In order to present the measure consistently year-on-year, the impact of COVID-19 government subsidies claimed is also excluded.
Adjusted earnings per share comprises the adjusted profit after tax divided by the non-diluted weighted average number of shares as reported. The adjusted profit after
tax comprises the adjusted profit before tax, less the Tax expense as reported in the Consolidated statement of comprehensive income, adjusted for the tax impact of theadjusting items in arriving at adjusted profit before tax.
Adjusted cash conversion rate is the adjusted free cash flow as a percentage of the adjusted profit before tax.
Adjusted free cash flow is a measure of cash flow adjusting for capital expenditure that is supporting growth in future periods (as measured by capital expenditure inexcess of maintenance capital expenditure). In order to present the measure consistently year-on-year, the impact of COVID-19 government subsidies claimed is also
excluded.

27



Scale - Large clients need large suppliers

Global presence – proximity to talent and clients,
multiple time zones



Knowledge and expertise – Breadth and depth ofcapabilityTechnology - Regular investment, security

Scalable model – flexibility to meet clients needs

Acquisition track record – disciplined, build out
the platform, cultural fit, integration

Financial strength – performance, stability andresilience

Reputation for quality – culture of delivery28

* Includes all cash, deferred and equity portions of consideration** 48% subsidiary interest

Year

Art Services

2014

Game
Development

Audio

Functional
Testing

Localization

Localization
Testing

Lakshya Digital

Liquid Violet
Binari Sonori

Babel MediaBabel Media
Binari Sonori

Babel Media

2015

Liquid Development

ReverbKite Team2016

Mindwalk
Volta

Synthesis
Sonox

EnzymePlayer Research

Synthesis
Sonox

2017

SPOV
RedHotGameSimd3t
Sperasoft

La Marque Rose
Dune Sound
AsRec

VMC

VMC
XLOC
Around the Word
La Marque Rose
Dune Sound
AsRec
LOLA

2018

Fire Without Smoke
Trailer Farm

Snowed In
Studio Gobo
Electric Square
Yokozuna Data

MaximalCord
Laced
Blindlight2019

Sunny Side Up
Ichi Worldwide

GetSocial
Wizcorp

Descriptive VideoWorks
TV+SYNCHRON
Syllabes

2020

Maverick

Coconut Lizard
Heavy iron

ReverbKite Team

Player Support

Total Cost*€19.0mAlchemic Dream€10.9mSynthesis
EnzymeAnkama€32.6m

VMC

VMC€101.4m€61.7mAppSecTest**

Kantan€22.5mc. €17.6m

29