Table of Contents Table of Contents Message From The President and CEO Message From The President and CEO .............................................3 Message From The Chair ...................................................................4 PHAC My Why......................................................................................5 Recycling Guide .................................................................................6 Economic Study .................................................................................7 Media Relations .................................................................................8 Thought Leadership ..........................................................................9 Government Relations .....................................................................10 Management’s Discussion and Analysis ........................................ 13 Independant Auditors’ Report .........................................................14

Message From The President and CEO The Entertainment Software Association of Canada’s (ESAC) mandate is to promote and protect the interests of Canada’s video game industry from coast to coast. By engaging with governments across the country and advocating for the best possible environment to make and publish video games, our efforts continue to result in policies that are increasing job creation and corporate investment in Canada’s video game industry. In fiscal 2022 our elevated engagement with the media has resulted in dozens of articles and news pieces highlighting the many positive benefits of both video games on Canadians and of the video game industry on the Canadian economy. Fiscal Year 2022 has been another unfortunate one, with COVID-19 pandemic measures, lock downs and closures impacting industries across Canada, including our own. It has been another year of not seeing industry peers and friends in person. Another year of missing our industry’s biggest events; and another year advocating for our industry via digital means and media. While most of us did not expect a second year of the pandemic I am pleased to report that our industry continues to thrive in the face of these challenges we all continue to face. With our continued partnership with Nordicity and the generous and incredibly valuable information that industry from across Canada shared, we completed and launched our latest economic study, Canada’s Video Game Industry in 2021. The study would not have been possible without the overwhelming response from more than 150 game studios that provided their employment and financial data; allowing Nordicity to complete their economic impact analysis.

d and launched our latest economic study, Canada’s Video Game Industry in 2021. The study would not have been possible without the overwhelming response from more than 150 game studios that provided their employment and financial data; allowing Nordicity to complete their economic impact analysis. What the 2021 study found was an industry that was thriving in the most challenging of times. One that embraced its digital underpinnings and reached both its employees and consumers mostly without physical contact. With close to 1,000 studios from coast to coast, Canada’s video game industry now employs more than 32,000 full-time talented individuals, while supporting an additional 23,000 indirect jobs. Now contributing $5.5b to the country’s GDP, Canada’s video game industry is a national champion that is truly making a global impact. Games made in Canada by Canadian talent continue to dominate global sales charts, raise brand awareness, be rooted in cultural significance, and involve innovative leaps forward. But most importantly games continue to play a role in keeping people connected, improving the mental health of those who enjoy our products and giving parents an outlet to spend more time with their children in their own environments.

in cultural significance, and involve innovative leaps forward. But most importantly games continue to play a role in keeping people connected, improving the mental health of those who enjoy our products and giving parents an outlet to spend more time with their children in their own environments. If the past two years have done anything for video games, it is that they have allowed the industry to reach a level of mainstream significance we have always felt we deserved. Our industry joins music and cinema, as leading creative forms of entertainment where people can fully immerse themselves in worlds and stories unlike ever before. Each one of us should be proud of what we do each day and of the impact our contributions make on the lives of our players. As we move to a more “normal” post-pandemic world I look forward to seeing everyone in-person again soon at industry events across the country and around the world. While we have all professionally risen to the challenge of the past two years, there is still no real substitute for in-person relationships. Take care and see you soon. Jayson Hilchie President & CEO

Message From The Chair Canada is home to one of the world’s most vibrant video game industries. The Entertainment Software Association of Canada (ESAC) is the voice of Canada’s video game industry and serves its member companies by engaging on relevant issues with government and public policy stakeholders nationally and internationally. The role of the ESAC Board (Board) is to ensure good governance of ESAC with respect to activities carried out in support of our industry. The Board provides oversight of ESAC and supports its strategic direction to ensure that the organization’s activities benefit all members. As the board and staff of ESAC enter into the development of our next three-year strategic plan, I am proud of the work the organization has done this past fiscal. In another tough and challenging year of COVID lockdowns and restrictions, our ability to be out in the public realm was once again severely limited. And even still I am happy to report that ESAC made tremendous strides in promoting the positive impacts of the video game industry to both policy makers across the country and to the media. In fact, our economic study launch in November 2021 recorded the most media hits of any launch we have ever done. A fantastic achievement in the face of an incredibly competitive media landscape where multiple industries are competing to get their messages out.

across the country and to the media. In fact, our economic study launch in November 2021 recorded the most media hits of any launch we have ever done. A fantastic achievement in the face of an incredibly competitive media landscape where multiple industries are competing to get their messages out. Not only did the dissemination of the economic impact study exceed our goals as a board, the study itself exceeded everyone’s expectations with respect to the continuing growth of Canada’s video game industry. In a period of broad-based economic contraction, physical store closures, supply chain challenges and competition for entertainment dollar, video games continue to fill a void with consumers by helping them connect with their friends, improve their well-being and find enjoyable entertainment. Perhaps this was most notable with respect to the impressive growth of our development industry during the pandemic. Canada’s industry continued to add new studios, talented developers, and direct GDP impact to the economy. Now pushing $5.5b in economic impact, our industry is one of the world’s most important and vibrant. And it is our job as ESAC’s board to ensure that the association continues to work hard to protect the business environment for making games in this country and to promote the positive impacts games have on our players.