Report

Annual Financial Report and CSR Report: 2021/2022

Summary

ANNUAL FINANCIAL REPORT AS OF 31 MARCH 2022 1. INTRODUCTION pages 3 to 7 2. DECLARATION BY THE PERSON RESPONSIBLE page 8 3. MANAGEMENT REPORT pages 9 to 24 4. BOARD REPORT ON CORPORATE GOVERNANCE pages 25 to 33 5. AUDITOR’S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2022 pages 34 to 36 6.

From the report

CONTENTS ANNUAL FINANCIAL REPORT AS OF 31 MARCH 2022 1. INTRODUCTION pages 3 to 7 2. DECLARATION BY THE PERSON RESPONSIBLE page 8 3. MANAGEMENT REPORT pages 9 to 24 4. BOARD REPORT ON CORPORATE GOVERNANCE pages 25 to 33 5. AUDITOR’S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2022 pages 34 to 36 6. CONSOLIDATED ACCOUNTS AS OF 31 MARCH 2022 pages 37 to 58 7. AUDITOR’S REPORT ON THE PARENT COMPANY’S FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2022 pages 59 to 61 8. PARENT COMPANY’S FINANCIAL STATEMENTS AS OF 31 MARCH 2022 pages 62 to 77 9. AUDITOR’S SPECIAL REPORT ON THE RELATED-PARTY AGREEMENTS FOR THE YEAR ENDED 31 MARCH 2022 pages 78 to 80 10. CORPORATE SOCIAL RESPONSIBILITY (CSR) REPORT MESSAGE FROM THE CEO page 82 INTEGRATING CSR INTO FOCUS ENTERTAINMENT’S ACTIVITIES pages 83 to 86 PILLAR 1: BE A PUBLISHER OF ENTERTAINING VIDEO GAMES THAT ARE SAFE AND RESPECTFUL OF OUR PLAYERS pages 86 to 88 PILLAR 2: BE AN ATTRACTIVE AND RESPONSIBLE EMPLOYER pages 88 to 91 PILLAR 3: BE A PUBLISHER THAT IS COMMITTED TO THE ENVIRONMENT AND SOCIETY pages 91 to 94 METHODOLOGICAL NOTE/ABOUT THIS REPORT pages 95 to 96

MESSAGE FROM THE CEO After the 2020/21 year, during which the video gaming industry benefited greatly from the lockdown measures implemented worldwide, FOCUS ENTERTAINMENT recorded turnover of €142.6M for FY 2021/22, including a contribution of €5.6M by Dotemu. SnowRunner, Insurgency: Sandstorm and A Plague Tale: Innocence made major contributions to the period’s business thanks to the release of additional content and supplementary revenue from one-off deals, thereby confirming the Group’s capacity to generate long-term revenue on flagship franchises. The year also benefited from the success enjoyed by Necromunda: Hired Gun developed by Streum On Studio, a member of the Group since April 2021, and by Aliens: Fireteam Elite, both of which were launched during the year. In 2021/22, we also confirmed our desire to create our own franchises and bring together talents. Our strategy is to move up the value chain, evolving our business model from publisher/distributor to developer/publisher, increasing the portion of Intellectual Property (IP) held in our game portfolio. The long-term aim is to reach 50% of turnover generated by games, whose IP is held by the Group. To this end, this year should constitute a turning point: • the Group carried out no fewer than 4 external growth operations during the year. After the 2020/21 Deck13 Interactive acquisition, the group acquired Stream On Studio (April 2021) and Dotemu (September 2021), followed by Douze Dixièmes (October 2021) and welcomed a fifth studio with the purchase of Leikir Studio (February 2022). • The Group has secured the most ambitious game line-up in its history with 31 new games that are to be launched by March 2025.

Studio (April 2021) and Dotemu (September 2021), followed by Douze Dixièmes (October 2021) and welcomed a fifth studio with the purchase of Leikir Studio (February 2022). • The Group has secured the most ambitious game line-up in its history with 31 new games that are to be launched by March 2025. Throughout the period during which these games are to be marketed, 30% of turnover should come from games for which the Group holds the IP directly (15%) or jointly (15%). In a parallel fashion, to give us the means to achieve our ambitions, the Group has continued to boost its financing, with the successful €70.4M capital increase by Private Placement in May 2021 and by signing a new loan for a total amount of €140M in July 2021. At the same time, we are continuing to implement all the tools necessary to gather and gain the loyalty of our talented staff, like the capital increase reserved for Group employees carried out this year. Value creation also goes hand-in-hand with changes to our governance, establishing a Board of Directors and separating the duties of the Chairman of the Board of Directors and the CEO. Frank Sagnier has thus been appointed Chairman of the Board of Directors and I myself have been appointed as CEO. In compliance with the Middlenext Code, three independent directors have been appointed to the Board of Directors: Frank Sagnier, Virginie Calmels and Irit Hillel. These structural changes were concluded with a new name for our Group, now called FOCUS ENTERTAINMENT.

self have been appointed as CEO. In compliance with the Middlenext Code, three independent directors have been appointed to the Board of Directors: Frank Sagnier, Virginie Calmels and Irit Hillel. These structural changes were concluded with a new name for our Group, now called FOCUS ENTERTAINMENT. It aims to offer players across the world unique experiences with a publishing line that stands out thanks to its innovative concepts, alternative game plays and original worlds that go beyond the boundaries of video games. eau CEO df FOCUS ENT Christophe Nobileau, CEO of FOCUS ENTERTAINMENT

FOCUS ENTERTAINMENT IS A EUROPEAN LEADER IN VIDEO GAME DEVELOPMENT AND PUBLISHING Our objective is to offer unique experiences to players throughout the world. Our editorial line stands out due to innovative concepts that transcend beyond the bounds of video games. With 20 years of know-how, we bring together talented individuals and game creators, to whom we offer top-level services, provided by publishing experts. We support innovative projects without compromising on quality, with investments ranging from participation in financing new games through the partial or complete integration of a studio. Our developer partners become part of a strong Group that develops successful franchises such as A Plague Tale and SnowRunner and that is able to give their game a worldwide reach. Initially created as a Farming Simulator Deck13 became Evolution of the governance distribution company, became the year’s first acquisition, IP structure by implementing FOCUSmoved into top-selling PC game in acquisition strategy, a Board of Directors and interactive software France with over 100K f inancial capacity of adopting the new name with the famous music copies sold. €46M for M&A and FOCUS ENTERTAINMENT. studio tool Ejay. game development. FOCUSbecame an international publisher Private capital raise of with TrackMania, €13.3M from qualified Private placement of Sherlock Holmes investors, largely €70.4M from authorised and Runaway. oversubscribed with a 3.7% investors, with a limited discount on the share price. discount of 0.89% and new loan of €140M. 1995 2000 2006 2009 2011 2015 2017 2020 2021 2022

rackMania, €13.3M from qualified Private placement of Sherlock Holmes investors, largely €70.4M from authorised and Runaway. oversubscribed with a 3.7% investors, with a limited discount on the share price. discount of 0.89% and new loan of €140M. 1995 2000 2006 2009 2011 2015 2017 2020 2021 2022 Creation of the Deck13 Montreal studio, acquisitions of the FOCUSlaunched studios Streum On Studio, its first console games. Dotemu and Douze Dixièmes. Renewal of the partnership with Saber Interactive. IPO, €12.7M in funds raised FOCUSobtained the rights (including €8.5M in a capital to distribute Sudden Strike increase) - oversubscribed in France. 12.2 times; Euronext “Jury prize” First success as a video and BFM Business “Best IPO of game distributor. the year” New leading shareholder Acquisition of Leikir Studio. Neology Holding. SUPPORT FOR CREATIVE FREEDOM The FOCUS ENTERTAINMENT editorial line is unique thanks to truly original experiences that are also respectful of our players. Our catalogue is composed of a variety of titles in all genres (action, simulation, RPG, strategy, etc.). Whether it is a young “Indie” studio, or a studio composed of industry veterans, our developer partners share a strong vision: the desire to create games and franchises with unique content and strong commercial potential. Our games are designed for all types of players, everywhere in the world, of all ages, genders, origins and cultures. Creativity, for everyone’s pleasure.

Pages: 97
Words: 59,219
Format: PDF
Type: Report

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