Investment

PCF Group S.A. has entered into a conditional agreement with Square Enix Limited to finalize the financial settlement of the Gemini project and formally terminate existing development and publishing partnerships. This agreement marks the conclusion of two long-standing collaborations, specifically the 2020 production-publishing contract for the Gemini project and the 2016 agreement concerning the Madness project. As part of this settlement, both parties have agreed to waive all potential claims arising from their previous professional relationship.

The effectiveness of this agreement is subject to a specific condition precedent involving the transfer of technical assets. PCF Group is required to deliver a comprehensive closing kit containing all development materials related to the Gemini project within 30 days of the agreement date. Square Enix Limited then has a subsequent 30-day window to verify and accept these materials. Should the publisher fail to respond or formally reject the contents of the closing kit, the agreement will expire, and the stipulated legal consequences, including the termination of the contracts and the waiver of claims, will not take effect.

This development represents a strategic shift in the operational relationship between the Warsaw-based developer and the London-based publisher. By resolving these outstanding project obligations, the parties aim to clear the path for future independence or alternative partnerships. The company intends to provide further updates as the verification process for the closing kit progresses and the final status of the agreement is confirmed.

PCF Group S.A. has officially entered into formal negotiations regarding a new service agreement and statement of work with a prominent, unnamed publisher. This development follows the receipt of a formal proposal on December 20, 2025, which the company analyzed before committing to the negotiation process on December 23, 2025. The potential partnership centers on the development of a new video game title, structured under a work-for-hire model where the company will act as the developer in exchange for agreed-upon compensation.

The decision to pursue this collaboration aligns with the company’s long-term strategic goals, specifically the updated corporate strategy announced in January 2023. This strategy explicitly prioritizes the pursuit of high-quality work-for-hire opportunities with reputable industry partners to diversify revenue streams and leverage internal development capabilities. The terms currently under discussion are consistent with standard service agreements typical for large-scale game development projects within the global interactive entertainment industry.

While the initiation of these talks marks a significant step toward securing a new project, the company emphasizes that the negotiations do not guarantee a final binding agreement. The outcome remains subject to the successful conclusion of discussions between the parties. Further updates regarding the status of the contract will be disclosed to the public once a definitive agreement is reached or if the negotiations are terminated.

PCF Group S.A. has initiated significant asset impairment charges following a performance review of the project Victoria, specifically the game Lost Rift, alongside the PCF Framework and associated intangible assets. This decision, finalized in November 2025, reflects a strategic reassessment of the carrying value of these assets as of September 30, 2025. The impairment was triggered by disappointing sales data following the early access launch of Lost Rift on September 25, 2025, compounded by unfavorable player reception and a downward revision of projected future cash flows.

The financial impact of these adjustments is substantial, affecting both the company’s standalone and consolidated financial statements. On a standalone basis, the company recognized an impairment of 88% of the relevant asset value, resulting in a reduction of 126,348 thousand PLN. On a consolidated level, the impairment accounts for 85% of the asset value, totaling 92,045 thousand PLN. While these figures significantly lower the value of fixed assets reported on the balance sheet for the third quarter of 2025, the charges are non-cash in nature and do not impact the company’s EBITDA.

Management maintains the possibility of reversing these impairment charges, either in whole or in part, should market conditions or the commercial performance of the affected assets improve. These figures remain estimates and are subject to final audit verification before the publication of the full 2025 financial statements. The scope of this adjustment is limited to the specific cash-generating unit associated with the Lost Rift project and its supporting technological framework within the broader PCF Group portfolio.

PCF Group S.A. has established its financial reporting schedule for the 2026 fiscal year, ensuring compliance with regulatory requirements for issuers of securities. The primary objective of this disclosure is to provide stakeholders and the investment community with a transparent timeline for the release of audited annual, semi-annual, and quarterly financial statements. This schedule facilitates market predictability and aligns with the company’s obligations under current financial regulations.

The reporting calendar begins on April 23, 2026, with the publication of both the standalone and consolidated annual reports for the 2025 fiscal year. Subsequent disclosures include the consolidated quarterly report for the first quarter of 2026 on May 28, 2026, and the consolidated semi-annual report for the first half of 2026 on September 17, 2026. The final scheduled disclosure is the consolidated quarterly report for the third quarter of 2026, set for November 26, 2026.

In accordance with specific regulatory exemptions, the company will not publish standalone quarterly or semi-annual reports. Furthermore, the company has opted to forgo the publication of quarterly reports for the fourth quarter of 2025, as well as the second and fourth quarters of 2026. By focusing exclusively on consolidated reporting, the company streamlines its financial communication strategy while maintaining adherence to the disclosure standards mandated for the 2026 reporting period.

The BANDAI NAMCO Group develops entertainment-related products and services in a wide range of fields, including toys, game software, arcade game machines, visual content, music content, and amuse- ment facilities. We aim to become a “Globally Recognized Entertainment Group” by establishing a strong operational foundation in Japan while aggressively developing operations in overseas markets to secure “Dreams, Fun and Inspiration” are the Engine of Happiness.

The BANDAI NAMCO Group develops entertainment-related products and services in a wide range of fields, including toys, arcade game machines, home video game software, visual software, network content, and amusement facilities. In April 2012, we started a Mid-term Plan that includes the vision of “Empower, Gain Momentum, Accelerate Evolution.” Aiming to be No. 1 with strong conviction, we are committed to being the “Leading Innovator in Global Entertainment” and recording strong growth.

I N T E G R AT E D R E P O R T 2 0 2 0 The BANDAI NAMCO Group develops entertainment-related products and services in a wide range of fields, including toys, network content, home video games, amusement machines, amusement facilities, and visual and music content. “Dreams, Fun and Inspiration” are the Engine of Happiness.

14.59 Moscow Stockholm CEO’s Review 1 CFO’s Review 4 Five Year Summary 6 Modern Responsibility 10 Directors’ Report 16 The MTG Share 46 Corporate Governance Report 50 Board of Directors 60 Executive Management 63 Consolidated Financial Statements 67 Parent Company Financial Statements ...

CEO’s Review 1 Directors’ Report 11 The MTG Share 32 Corporate Governance Report 36 Board of Directors 46 Executive Management 49 Consolidated Financial Statements 54 Parent Company Financial Statements 59 Notes to the Accounts 64 Audit Report 119 Definitions 121 Glossary 12...

The Q4 2025 investor presentation details a period of record financial performance for the company, characterized by significant revenue growth and successful strategic integration. The primary thesis centers on the company’s transformative year, highlighted by the successful consolidation of Plarium and a shift toward a midcore gaming focus. For the fourth quarter of 2025, the company achieved net sales of SEK 3,123 million, representing an 8% organic growth rate and a 108% increase in constant currency year-over-year. Adjusted EBITDA reached SEK 717 million, maintaining a 23% margin, while unlevered free cash flow totaled SEK 878 million with a 66% conversion rate.

The scope of the report covers the global gaming operations of the company throughout the 2025 fiscal year, with specific emphasis on the fourth quarter. Key operational findings indicate that user acquisition (UA) spending rose to 38% of revenue in Q4, a 98% year-over-year increase in constant currency, largely driven by the integration of Plarium and the scaling of casual and racing franchises. Revenue streams showed a notable shift, with direct-to-consumer contributions rising 600 basis points to 32% of the total. Franchise performance was bolstered by strong results in the racing and word game segments, which saw year-over-year growth of 43% and 28%, respectively.

Methodologically, the financial data is presented on a reported basis, with constant currency adjustments applied to isolate organic growth trends. The report incorporates full-year 2025 figures and highlights the impact of the Plarium acquisition, which was integrated into the group starting in February 2025. Looking ahead, the company concludes the period with a stable leverage ratio and a new organizational structure, positioning itself for continued midcore expansion and the potential public offering of its PlaySimple division.

The Modern Times Group Q1 2025 investor presentation outlines a period of significant financial expansion, primarily driven by the strategic acquisition of Plarium. The company reported a 79% year-over-year increase in net sales in constant currencies, reaching SEK 2,557 million for the quarter. This growth is supported by a 6% organic sales increase, reflecting sustained performance across the company’s existing gaming portfolio.

Key operational metrics highlight the impact of the Plarium integration, which contributed to a shift in revenue streams and user development. The company maintained a healthy adjusted EBITDA margin of 24% for the quarter, despite increased investment in marketing to scale new and established titles. Cash flow remains a central pillar of the company’s financial health, with SEK 538 million generated from operations in Q1 2025 and a free cash flow of SEK 143 million after accounting for earnout payments. The company’s leverage ratio stands at 0.82x, supported by an LTM EBITDA of SEK 3,058 million.

The scope of the presentation covers the global gaming operations of the company, with a specific focus on the transition period following the February 1, 2025, consolidation of Plarium. The portfolio includes a diverse range of franchises, such as strategy, simulation, racing, and word games. Looking ahead, the company maintains a positive outlook for the full year 2025, projecting organic sales growth between 3% and 7% and an adjusted EBITDA margin in the range of 21% to 24%. Future performance is expected to depend on disciplined marketing investments, the successful scaling of new game titles, and continued geographical expansion efforts.