5th Planet Games A/S — Earnings Release 2015

Aug 28, 2015

Q2 2015 report for Hugo Games -NO. 14.2015

Q2 2015 report for Hugo Games -NO. 14.2015

COPENHAGEN, August 28th. Hugo Games A/S (OAX: HUGO) a mobile

interactive entertainment developer and publisher of mobile

games, today reported financial results for the second quarter

KEY HIGHLIGHTS press release

- IPO was successfully completed and oversubscribed

- Cash position significantly strengthened as a result of

the IPO

- Publishing agreement with MyGamez regarding distribution

of Ronaldo game in China

- Agreement with Nike regarding the use of Nike styles

within the football game with Ronaldo

- Strengthening of the organization with key appointments

- Strengthening of the IR Organization

- All costs regarding the IPO incurred in Q2 figures

Financials

- Revenue amounts to 1.897TDKK.

- Gross profit equals 810 TDKKkr.

- EBIDA equals -15.072 TDKK. and net loss for the first

half was -14.747 TDKK.

- Total equity equals 66.941 TDKK. and total liabilities

amounts to 26.421 TDKK.

- The IPO was oversubscribed and now cash holding exceeds

45.000 TDKK.

Income statement: (all numbers in DKK)

Total revenue in first half of 2015 reached 1,897t (first half

2014 3,939 TDKK) and total other external expenses reached 8,663

TDKK (first half 2014: 2,877 TDKK). In 2014, we soft-launched

two games, which explains the higher turnover compared to 2015.

On a general level, the turnover reflects the fact that we are

developing several games scheduled for the upcoming quarter.

Increase in external expenses is mainly due to marketing cost

when launching the game with Ronaldo and Hugo.

Balance sheet:

Hugo Games' total assets as of 30 June 2015 were 93,362 TDKK and

total intangible assets amounted to 41,487 TDKK. The total

assets have increased compared to 31 December 2014 primarily due

to increase in cash of 33,106 TDKK and increase in intangible

assets of 5,891 TDKK. The increase in intangible assets reflects

the accelerated activity level related to game development.

Cash flow and cash position

In H1 2015 the cash flow from operating activities totalled

-8,909 TDKK, compared to -279 TDKK in H1 2014, and cash flow

from investing activities (game development) reached -8,328

TDKK. Cash flow from financing activities totalled net 39,064

TDKK due to IPO. Cash position as of 30 June 2015 is45,064 TDKK.

IPO successfully completed

The IPO was carried out with great success and was

oversubscribed. We are proud that the process went fast and

smooth. We see this as a strong signal of trust in Hugo Games

and the strategy set forth; especially as Hugo Games is the

first mobile gaming company to be listed in Scandinavia.

The company's last six months of operations have been influenced

by the company's recent IPO, requiring resources and sharp focus

from the company's relatively few employees. There is no doubt

that the resources involved in preparing Hugo Games for the

stock exchange listing has had its impact on daily operations

and to some extent product development. However, we are

convinced that we are now in an advantageous situation where we

can look forward to executing the business strategy.

We are aware that the stock price following the IPO has been

declining, thus showing a high degree of volatility. However, it

should be noticed that we have not changed our expectations or

ambitions described in the prospectus. We are determined to

executive our strategy and have already strengthened both our

production team and the IR organization considerably.

Furthermore, the first half of 2015 was impacted by costs of 6m

related to the IPO process and the listing on the Oslo Stock

Exchange/Axess, which took place in June 2015. The costs have

been treated accordingly to the IAS32 and this number covers all

costs related to the IPO process.

Utilizing the full potential of Cristiano Ronaldo and Hugo the

troll separately

We experienced that the partnership between our Hugo troll and

Cristiano Ronaldo proved too difficult to communicate towards

their fans, respectively. Furthermore, we learned how important

it is that Ronaldo is engaging in a football friendly context.

Based on our experience, it is our assessment that there is

great potential in creating game concepts that exclusively

address Cristiano Ronaldo's fan base. With his almost 200

million fans across various social media sites Cristiano Ronaldo

has by far the largest platform in the world.

We are convinced that there is unlimited potential in a game

concept that addresses this fan base.

Consequently, we have changed strategic focus and will separate

the current Ronaldo & Hugo: Superstar Skater into two separate

game experiences. This means bringing Ronaldo into his own game,

which will be a true Cristiano Ronaldo game set in a football

universe.

New agreement with Nike

We are also very pleased to announce that we have entered an

agreement with Nike, making it possible for Ronaldo to be

featured in a Nike football universe. The agreement with Nike

allows us to use a number of Nike styles in game. This is

considered a major advantage, as this will bring Ronaldo's

character much closer to his "real-world" image among his many

fans.

This opportunity is also an important part of the development of

the revitalized game strategy, as this strengthens the

conditions in making the game into a global blockbuster.

The game is expected to launch in 4-6 months and marketed

directly to Cristiano Ronaldo's more than 200 million followers

on Facebook, Instagram, and Twitter.

Pipeline

We have entered into an agreement with MyGamez in connection

with the release of the Ronaldo game in China. Looking at

MyGamez previous success with Fingersoft's "Hill Climb Racing"

expansion to China, we believe that this deal has a very

promising potential.

China is currently the world's biggest gaming market and given

the strong brand value of Ronaldo (his awareness degree equals

95 percent, source: Repucom), we are very optimistic about

developing a tailor made Chinese version of the Ronaldo game in

China.

"Hugo Flower Flush", is set for soft-launch in approximately 2

months.

Our second title "Axe in Face" is also set for soft-launch in

approximately 2 months and is the sequel to the original "Axe in

Face" which among others was awarded the Best Nordic Game in

Following "Hugo Flower Flush" and "Axe in Face", we will be

releasing the revitalized Cristiano Ronaldo football title as

well at Hugo's own skater game, "Hugo Troll Race II", which is

the follow-up of the commercial success, Hugo Troll Race.

We are very confident about the future and look forward to

execute in accordance with our strategy.

We have six games that all are in the last development stages,

and most of these are expected to soft-launch in the coming

year. Furthermore, we are strengthening our operational focus

and investor communication as we during the second quarter have

increased our resource capacity in Copenhagen, aiming at

continuing the process according to the strategy set forth.

We believe that Hugo Games stands much more streamlined in the

future in order to satisfy our ambition of becoming a

significant mobile game company. We expect to be able to create

a positive cash flow as several games are to be launched in the

coming months. This is especially the case with regard to the

Ronaldo game, which is in the process of undergoing a

transformation into his own football universe.

NOTICE!

In connection with this Q2 release there will arranged a

telephone conference August 27, 2015 at 08.30, where CEO Henrik

Kølle will be given an opportunity to answer questions from

investors.

Call in numbers (confirmation code is: 4002624:

Norway: +47 2316 2787

Denmark: +45 3271 1658

International Dial In: +44(0)20 3427 1913

Contact information:

COO and IR manager Søren Kokbøl Jensen

soren@hugogames.com

Tel. +45 2944 5001