CONTENTS Corporate responsibility and sustainability priorities are covered in MTG’s Annual Corporate Responsibility Report, published on www.mtg.com

02 2019 IN BRIEF 03 CEO STATEMENT 06 MTG EVOLVED 10 KEY EVENTS 14 WHY ESPORT MATTERS 18 B USINESS OPERATIONS 19 S EGMENTAL PERFORMANCE 22 DIRECTORS’ REPORT 23 Business Operations 26 Financial Overview 29 Business Segments 31 Other Group Information 32 The MTG Share 34 Financial Policies and Risk Management 36 Governance and Responsibilities 41 Internal Control Report 42 Board of Directors 44 Group Management 46 FINANCIAL STATEMENTS 58 NOTES TO THE ACCOUNTS 94 SIGNATURES 95 AUDIT REPORT 99 THREE YEAR SUMMARY 100 DEFINITIONS 101 ALTERNATIVE PERFORMANCE MEASURES 102 FINANCIAL CALENDAR

+10% Sales, SEKm Sales growth +13% 1,712 Esport sales ᵍʳᵒʷᵗʰ 239 Esport sales, SEKm Group adjusted EBITDA, SEKm +141% Growth

STRONG PERFORMANCE – AND NEW BREAKING GROUND It’s impossible to reflect on 2019 without first commenting on the split of MTG into two companies in March – Nordic Entertainment and new MTG. This was the conclusion of a transformative journey that MTG began several years ago to ensure a competitive entertainment group that could accommodate two strong and relevant equity stories in a fast-changing entertainment landscape. It was also a commitment to focus on what we strongly believe will be the entertainment of tomorrow – esport and gaming. Looking ahead, I believe we have more hard work ahead of us, and the promise of a very bright future. Today, we are the world’s leading esport company with our investments in ESL and DreamHack, which offer best-in-class national and international events, leagues and festivals. Esport is one of the most viewed and fastest growing sports in the world. ESL and DreamHack are already global brands and the preferred choices for viewers, players, partners and publishers. Our first year as the new MTG has been “THE VIDEO GAMING extremely exciting and rewarding. Through- MARKET IS TODAY out 2019, we have continued to develop our WORTH WELL OVER business verticals esport and gaming with an USD 100 BILLION, emphasis on becoming even more commercially professional. As a result, we have seen WHICH IS MORE THAN both increased sales, through a transforma- THE MOVIE AND tion from ad hoc to more sustainable revenue MUSIC BUSINESSES streams, as well as a continued improvement COMBINED. of our business profit.

mphasis on becoming even more commercially professional. As a result, we have seen WHICH IS MORE THAN both increased sales, through a transforma- THE MOVIE AND tion from ad hoc to more sustainable revenue MUSIC BUSINESSES streams, as well as a continued improvement COMBINED. of our business profit. And from a strategic ” perspective, several important milestones have been achieved: We have launched the We are in a very strong position with key ESL Pro Tour format attracting the best investments in InnoGames and Kongregate. teams in the world, landed new publisher InnoGames runs a portfolio of seven sucrelationships including a multi-year agree- cessful free-to-play games that are played ment with Blizzard, and entered a very prom- on PC and mobile devices, including titles ising strategic alliance with Nielsen – the such as ‘Forge of Empires’ and ‘Elvenar’. leading source of truth for esport sponsor- Kongregate is firmly established as a leading ship valuation and media measurement. publisher of casual and hyper casual mobile and PC games. An important decision we took during the year was to launch a strategic review of our Esport – the future of entertainment gaming vertical, to evaluate possible routes To build and develop a new sport is a journey, to create shareholder value. especially when it comes to creating a highly

never move beyond being entertainment for and we made the necessary changes to its As many times before in the history of MTG, the few rather than for the masses, and operational model, focusing more on direct we are venturing into new commercial terrihence not become a commercially viable publisher relationships, rolling-up success- tories. Our belief in tomorrow’s entertainproduct capable of attracting a meaningful ful IPs that we have had a publisher relation- ment – esport and gaming – is strong. Sucnumber of eyeballs. ship with and tightening up the total scope cess in creating value will only come of the games portfolio. In the second half of through relevant products, creativity and However, esport is different. The number of the year, the turnaround was clear and innovation. We are in pole position with an gamers worldwide is expected to grow to 2.9 Kongregate ended the year on a high note opportunity to establish MTG as a global billion in 2022, up from 2.4 billion in 2018 – with a strong momentum going into 2020. leader in the esport industry and we will and the global esport audience is expected accelerate value creation by further drawing to grow to 645 million by 2022, up from 395 We are proud owners of two very strong and on synergies from our ownership of the two million in 2018. Games – whether played at relevant companies within our gaming verti- strongest esport brands globally, aided by home on a computer, on the go, or in an cal.