Financial · March 1, 2025

Report of the Board of Directors and Financial Statements 2024

Summary

Remedy Entertainment demonstrated a significant financial recovery in 2024, with revenue growing 49.3% to €50.7 million. This growth was primarily driven by a 58% increase in development fees for high-profile projects, including the Max Payne 1&2 remake and Control 2. While the company recorded an operating loss of €4.3 million, this represents a substantial narrowing from the €28.6 million loss reported in 2023. This improvement was supported by the absence of major project write-downs and a reduction in personnel expenses to €24.7 million, even as the average headcount increased to 351 employees. Strategically, the year was defined by a shift toward a self-publishing model and franchise ownership. Key milestones included the acquisition of full rights to the Control franchise and a partnership with Annapurna for multimedia expansions. To fund these initiatives and maintain liquidity, the company secured a €15 million convertible bond from a Tencent subsidiary and maintained a solid equity ratio of 70.9%. Despite the narrowed loss and a cash position of €21 million, the Board of Directors proposed no dividend for the fiscal year, prioritizing capital allocation for ongoing development projects. The company’s long-term outlook targets a doubling of 2024 revenue by 2027, with an expectation to reach positive operating profit in 2025. Management continues to utilize share-based incentive programs to align key personnel with these growth objectives, recently implementing Option Plan 2024. Operating primarily through its Finnish parent company and a Swedish subsidiary, the group remains focused on managing high customer concentration and foreign exchange risks as it transitions into its next phase of commercial independence.

From the report

REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2024 2 CONTENTS Report of the Board of Directors 3 10 Financial income and expenses 32 Parent company’s financial statement Group financial statements 11 Income taxes 33 Parent company’s statement of profit of loss 54 Group’s comprehensive income statement 15 12 Earnings per share 35 Parent company’s balance sheet 55 Group’s balance sheet 16 13 Intangible assets 36 Parent company’s cash flow statement 56 Group’s cash flow statement 17 14 Tangible assets 38 Parent company’s statement of changes in equity 57 Group’s statement of changes in equity 18 15 Leases 39 Parent company’s notes 58 16 Financial assets 42 The Board of Directors’ proposal for actions regarding Notes to the group financial statements 17 Other receivables 43 the company’s profit/loss 66 1 Basis of preparation 19 18 Capital and reserves 43 2 Revenue 21 19 Financial liabilities 45 Signatures 67 3 Operating segments 23 20 Fair values of financial assets and Auditor’s Report 68 4 Capitalization of development costs 23 financial liabilities 47 5 Materials and services 23 21 Financial risk management 48 6 Other operating income 24 22 Other payables and accruals 51 7 Personnel expenses 24 23 Provisions, contingencies and commitments 51 8 Depreciation, amortization and impairment losses 31 24 Related party disclosures 51 9 Other operating expenses 31 25 Events after the end of the financial year 53

REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2024 3 REPORT OF THE BOARD OF DIRECTORS 1.1.-31.12.2024 Remedy Entertainment Plc (hereafter ”parent company”), and together with it’s subsidiary Remedy Entertainment Group (hereafter ”Remedy” or ”the group”), is a pioneering, globally renowned video game group founded in 1995 and headquartered in Finland with a subsidiary Remedy Entertainment Sweden AB in Stockholm, Sweden. Known for its story-driven and visually stunning action games, Remedy has created multiple successful, critically acclaimed franchises such as Control, Alan Wake and Max Payne. Remedy also develops its own Northlight® game engine and tools technology that powers many of its games. The group employs over 360 game industry professionals from 36 different countries. Relevant events during the fiscal year it and renaming it from codename Vanguard, the cancellation didn’t generate any impairment loss for year 2024. In August, Remedy and Annapurna announced a strategic partnership agreement where Annapurna will finance 50% of the development budget of the upcoming Control 2 video game and gain the rights to expand Control and Alan Wake franchises into film and television. In September, Remedy announced it entered into a EUR 15 million unsecured convertible loan agreement with Tencent’s group company Image Frame Investment (HK) Limited. The material terms of the loan were approved in an Extraordinary General Meeting in October. Remedy also announced FBC: Firebreak (previously known as codename Condor) to be self-published in 2025. In 2024, Remedy’s revenue mostly consisted mostly of development

mage Frame Investment (HK) Limited. The material terms of the loan were approved in an Extraordinary General Meeting in October. Remedy also announced FBC: Firebreak (previously known as codename Condor) to be self-published in 2025. In 2024, Remedy’s revenue mostly consisted mostly of development Remedy acquired full rights to the Control franchise from 505 Games fees related to Max Payne 1&2 remake and Control 2. Royalties in February 2024. Through the transaction, all rights to Control, were recognized from the game sales revenue of Control, older FBC: Firebreak, Control 2 and all future Control products reverted to Alan Wake titles and Alan Wake 2. By the end of 2024, Alan Wake Remedy. In May, Remedy announced canceling of project codename 2 had recouped the development and marketing investments, Kestrel. As Remedy had recognized EUR 7.2 million impairment loss meaning that Remedy started to accrue royalties towards the end in the result of 2023 as giving Kestrel a fresh start after rebooting of the year.

REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2024 4 Financial development and key figures FISCAL YEAR, EUR thousand 2024 2023 2022 The group’s revenue was EUR 50,661 thousand and result for the Revenue 50,661 33,932 43,588 fiscal year was EUR -3,596 thousand. Operating loss for the fiscal Growth in revenue, % 49.3% -22.2% -2.5% year was EUR -4,280 thousand, -8.4 % of revenue. The group’s EBITDA 2,511 -16,951 1,905 equity ratio at the end of the fiscal year was 70.9 %. EBITDA % of revenue 5.0% -50.0% 4.4% Remedy’s revenue increased by 49.3% to EUR 50.7 (33.9) million. Operating profit/loss -4,280 -28,627 -563 Development fees were EUR 45.6 (28.7) million and royalties were Operating profit/loss % -8.4% -84.4% -1.3% EUR 5.1 (5.2) million. The main sources of revenue were development Result for review period -3,596 -22,657 -1,726 fees from Max Payne 1&2 remake and Control 2. Result for review period, % of revenue -7.1% -66.8% -4.0% Remedy’s EBITDA increased to EUR 2.5 (-17.0) million and operating Balance sheet total 99,333 79,260 99,552 loss (EBIT) to EUR -4.3 (-28.7) million, or -8.4% (-84.4%) of the Cash flow from operations 12,268 -16,034 11,069 revenue. Materials and services expenses were 1.7%, personnel Net cash 25,277 23,762 49,860 expenses 8.4%, and other operating expenses 3.2% lower than in Cash position 20,996 20,066 49,034 the comparison period. Net gearing, % -36.9% -35.1% -56.4%

e Cash flow from operations 12,268 -16,034 11,069 revenue. Materials and services expenses were 1.7%, personnel Net cash 25,277 23,762 49,860 expenses 8.4%, and other operating expenses 3.2% lower than in Cash position 20,996 20,066 49,034 the comparison period. Net gearing, % -36.9% -35.1% -56.4% Remedy’s cash flow from business operations amounted to EUR Equity ratio, % 70.9% 85.5% 88.8% 12.3 (-16.0) million. Compared to the comparison period, Remedy Capital expenditures 26,599 9,959 10,657 received significantly more payments, including also a one-time Earnings per share, € -0.27 -1.68 -0.13 payment related to Control 2 development fees from previously Number of shares at the end of the period 13,574,151 13,490,151 13,448,600 done work. At the same time outgoing payments of expenses were slightly lower than in the comparison period. Royalty revenue cash flow is based on agreed payment terms with partners and can differ significantly during certain periods from accrual-based revenue recognized within a period. Cash flow from business operations is also affected by the timing of significant incoming project development fee payments, which vary according to invoicing milestones.

REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2024 5 Remedy’s cash flow from investing activities amounted to EUR -24.2 Long-term business prospects schedule, quality, and budget. Additionally, the company’s games (-9.8) million and cash flow from financing activities amounted to EUR may not generate sufficient sales after their release, even if well 12.9 (-3.1) million. Cash flow from investing activities in 2024 contains We have two established own franchises, Control and Alan Wake, received and of high quality, thus generating less than estimated two of the three instalments related to acquisition of Control franchise which are linked through the Remedy Connected Universe. Remedy game revenue for Remedy. publishing rights. will self-publish all upcoming games, in which Remedy owns the IP. • Remedy has entered into long-term agreements with its partners Growing and expanding the two franchises will be a key part of our related to game projects in development. If the company failed to The group’s salaries and compensations with employer contributions future. In addition, we work with a partner franchise Max Payne that satisfy key contract obligations, its partners could terminate their for the fiscal year were EUR 24,672 thousand and average number of was originally created by Remedy. agreements with, or present claims to, the company. personnel was 351. • Remedy is planning to self-publish its games based on fully owned By 2030, we aim to be a highly regarded creative studio with IPs and is this way taking more financing risk in game development. FISCAL YEAR 2024 2023 2022 sustainable, significant commercial success.

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Type: Financial

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