Bigben Interactive

Earnings Release • Apr 26, 2021

FY 2020/21 SALES TARGET EXCEEDED AT 292.9 M€ (+11.2%)

SOLID SALES GROWTH IN Q4: + 36.7%

• STRONG MOMENTUM OF NACON GAMING
• RETURN TO GROWTH FOR AUDIO/TELCO

CONFIRMATION OF A FY 2020/21 COI RATE (1) EXCEEDING 12%

IFRS – M€ Sales	2020/2021	2019/2020	Change
st Half 1	135.8	127.0	+6,9%
Nacon Gaming	86.6	63.7	+35.9%
Bigben Audio / Telco	49.2	63.3	-22.4%
rd Quarter (October, Nov., Dec.) (2) 3	87.3	85.4	+2.3%
Nacon Gaming	48.6	40.4	+20.3%
Bigben Audio / Telco	38.7	44.9	-13.9%
th Quarter (Jan., Feb., March) (2) 4	69.8	51.1	+36.7%
Nacon Gaming	42.6	25.3	+68.7%
Bigben Audio / Telco	27.2	25.8	+5.2%
2020/2021 (12 months) (2)	292.9	263.5	+11.2%
Nacon Gaming	177.9	129.4	+37.5%
Bigben Audio / Telco	115.0	134.1	-14.2%

(1) Current Operating Margin = Current Operating Income rate = Current Operating Income as a percentage of sales.

(2) Non audited data

36.7 % sales growth in Q4 2020/21

In Q4 2020/21, Bigben's sales rose by 36.7% to 69.8 M€ thanks to the strong increase in sales of Nacon Gaming (+68.7%) and the return to growth of Bigben Audio/Telco (+5.2%).

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NACON GAMING

• Games: Video game sales rose 41.9% to 22.4 M€.

The increase in business was driven by:

• the very good sales of the Werewolf® : the Apocalypse – Earthblood action-RPG,
• the releases of the PlayStation®5 / Xbox Series X|S versions of Monster Truck®, Tennis World Tour®2 and Hunting Simulator® 2,
• the contribution of the back catalogue (3), which doubled compared to Q4 2019/2020.

Digital sales now represent 75% of game sales compared to 70% in the previous year.

• Accessories: Pending the take-off of new consoles, Accessories sales nevertheless rose sharply by 125.5% to 19.1 M€ with:

• Nacon's anticipation of supplies in a context of component shortages, which guaranteed regular deliveries to distribution channels;

• the installed base of more than 110 million PS®4 consoles worldwide, which generated sustained sales volume, notably with the success of the Pro Compact Controller® and Asymmetric Wireless Controller®.

BIGBEN AUDIO/TELCO

In Q4 2020/21, sales from the business unit returned to growth despite the closure of more than a third of points of sale in March 2021 during the 3rd population lockdown.

• Mobile: Sales of mobile accessories rose by 3.5% to 21.6 M€ with a growing contribution from the premium brands Force Case®, Force Power® and Just Green®. The success of TWS Bigben® wireless earbuds was confirmed.
• Audio: Sales of Audio products rose by 12.4% to 5.8 M€ thanks to a favourable sales trend, particularly at the beginning of the quarter, and the success of ranges aimed at new distribution channels in the decoration and well-being sectors.

FY 2020/21 sales exceed target

In the 2020/21 financial year, Bigben achieved an 11.2% increase in sales to 292.9 M€, exceeding the upper end of the target range set at 290 M€.

This growth was driven by the performance of Nacon Gaming, whose annual sales rose by 37.5% to 177.9 M€, exceeding the 160/170 M€ target set last November.

• The Accessories business achieved record sales of 103.2 M€, up 96.1% thanks to the contribution of RIG® premium headsets, sustained sales of licensed controllers, and the launch of accessories for the new Xbox® Series X|S console at the end of the fiscal year.
• The video Games business was characterised by a tripling of sales from the back catalogue (3) to 31.0 M€, and the success of the year's releases. Despite the postponement of major game releases to 2021/22, sales were down only slightly (-2.4%) to 69.1 M€ when compared with FY 2019/20.

At the same time, Bigben Audio/Telco faced three lockdowns that strongly impacted its distribution networks. Against this backdrop, the business unit demonstrated its resilience by limiting its sales decline to 115.0 M€, i.e. -14.2%, and by optimising its margins thanks to a more favourable Audio/Telco product mix:

• Despite slow 5G network deployments, Mobile sales reached 87.9 M€ (-15.3%) with a very significant contribution from the premium Just Green® and Force Case® ranges.
• Audio sales reached 26.9 M€ (-9.3%). This reflects strong sales of the Thomson® range and the successful listing of the product ranges in 600 new sales outlets across the decoration and well-being sectors.

Favourable outlook

Bigben anticipates brisk business in FY 2021/22, which should be supported by the growth of Nacon Gaming and the commercial recovery of Audio/Telco, which remains nevertheless sensitive to the impact of the health crisis on retail.

NACON GAMING

The fundraising carried out during its IPO in March 2020 enabled Nacon to acquire studios and finance the development of new games scheduled for release between 2022 and 2024. The financial benefits of these investments should enable NACON to increase both its sales and its operating margin for FY 2022/23 and 2023/24.

At the same time, the Accessories business should continue to grow as the installed base of new consoles increases. Nacon is therefore particularly confident of achieving further growth momentum in the coming years.

BIGBEN AUDIO/TELCO

In a context of limited visibility, Audio/Telco intends to accentuate its commercial recovery and continue to improve its margins. The Mobile market will benefit from the gradual 5G network deployments, which should support sales of accessories for premium brands. Audio should also continue to deliver its ranges within the new referenced channels.

Confirmation of a COI target exceeding 12%

Bigben confirms its 2020/21 target of a COI (1) rate exceeding 12% compared to 9% in FY 2019/20, thanks to the expected increase in profitability of Nacon Gaming (4) and the growing success of Bigben Audio/Telco's high value-added brands and ranges.

At the presentation of FY 2020/21 Annual Results, the Group will disclose its forecast for FY 2021/22 and its guidance revised upwards for 2022/23.

(4) Nacon press release on 26 April 2021

Next publication:

Annual Results 2020/21: 31 May 2021 (Press release after close of the Paris stock exchange) SFAF meeting: Tuesday 1 June 2021 (Presentation to the financial community – French language)

ABOUT BIGBEN INTERACTIVE

SALES 2020-2021 292.9 M€	Bigben Interactive is a European player in video game development and publishing, in design and distribution of smartphone and gaming accessories as well as in audio products. The Group, which is recognized for its capacities in terms of innovation and creativity, intends to become one of Europe's leaders in each of its markets
HEADCOUNT Ca. 750 employees	Company listed on Euronext Paris, compartment B – Index : CAC Mid & Small – Eligible SRD long ISN : FR0000074072 ; Reuters : BIGPA ; Bloomberg : BIGFP
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22 subsidiaries and a distribution network in 100 countries www.bigben-group.com	CapValue – Gilles Broquelet gbroquelet@capvalue.fr - +33 1 80 81 50 01