Guillemot Corporation

Annual / Quarterly Financial Statement • Mar 23, 2023

Carentoir, March 23, 2023

EARNINGS GROW IN FULL-YEAR 2022

Guillemot Corporation's financial statements (audited financial statements approved by the Board of Directors at its meeting held March 22, 2023, with the statutory auditors' report relating to certification pending) may be summarized as follows:

(€ millions) January 1 – December 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Change
Turnover	188.0	176.8	+6%
Thrustmaster	175.5	167.8	+5%
Hercules	12.5	9.0	+39%
Net income from ordinary activities	34.2	33.0	+4%
Net operating income	34.2	33.0	+4%
Net financial income*	-6.7	-16.4	-
Corporate income tax	-7.2	-2.9	-
Consolidated net income	20.4	13.7	+49%
Basic earnings per share	€1.33	€0.90	+48%

* Net financial income includes the cost of net financial debt as well as other financial expenses and income.

The Group's turnover grew 6% in full-year 2022 to €188 million, with turnover up 5% at Thrustmaster and 39% at Hercules. The Group achieved record turnover and profit in a complex market.

Net income from ordinary activities totaled €34.2 million in 2022, up 4% year on year and equivalent to 18% of turnover. The Group maintained an accounting gross profit margin of over 54%.

At the same time, total expenses increased 6%. The Group's investment in research and development increased to €8.4 million in 2022, equating to 4.5% of consolidated turnover.

The net financial expense of €6.7 million included a €7.4 million revaluation loss on current financial assets (available-for-sale securities) consisting of 443,874 Ubisoft Entertainment shares.

Consolidated net income for the year totaled €20.4 million. At its meeting held March 22, 2023, Guillemot Corporation S.A.'s Board of Directors agreed to propose the payment of a dividend of €0.25 per share.

Balance sheet items

(€ millions)	Dec. 31, 2022	Dec. 31, 2021
Shareholders' equity	104.4	90.4
Inventories	57.2	40.9
Net debt*	-21.3	-5.2
Current financial assets (AFS securities)	11.7	19.1

* Available-for-sale (AFS) securities are not taken into account when calculating net debt.

Group shareholders' equity stood at €104.4 million at December 31, 2022.

Net debt at December 31, 2022 was negative at -€21.3 million, with the Group having positive net cash of €35.3 million.

Net cash flows from operating activities were positive at €32.8 million, with working capital requirements rising slightly by €1.9 million, linked to a 40% increase in inventories over the year.

In the second half of the year, the Group purchased 200,000 treasury shares under the share buyback program approved at the shareholders' general meeting held June 9, 2022.

The Group has a portfolio of 443,874 Ubisoft Entertainment shares valued at €11.7 million at December 31, 2022.

Strategic assessment and development priorities

The Group's investments in research and development enable it to remain at the cutting edge of technology and open up new market segments.

The Group is working on broadening the scope of its Hercules and Thrustmaster product ranges and is pursuing its strategy of shifting its products upmarket, for example by incorporating Direct Drive technology into its racing wheels and an innovative racing functionality into its gamepads.

The Group also aims to satisfy a more elite and passionate customer base in the flight-related segment, with plans to launch new high-end products in this category in the third quarter.

Hercules is finalizing the development of a new category of products that will expand the brand's sales. In the DJ market, Hercules will be unveiling a major new release at the forthcoming NAMM Show in America this April.

2023 outlook

Given a particularly unfavorable base effect compared with the first half of 2022, which was boosted by two major events (launch of the game Gran Turismo 7 and release of the Top Gun: Maverick movie and DLC), and distribution networks' will to reduce inventory levels resulting in significant delays in restocking, 2023 is set to be a mixed year, with turnover sharply down in the first half but expected to grow in the second half.

The second half of 2023 will bring a strong crop of new racing games (Forza Motorsport, Test Drive Unlimited Solar Crown, a new WRC game by EA/Codemasters, F1®23, The Crew®2 Season 8, Rennsport, etc.), giving a significant boost to consumer needs in terms of racing accessories.

For fiscal year 2023, the Group now expects turnover of approximately €140 million and is targeting a net operating profit.

The potential offered by the Group's new product ranges provides good prospects for a return to significant growth as of 2024.

Guillemot Corporation is a designer and manufacturer of interactive entertainment hardware and accessories. The Group offers a diversified range of products under the Hercules and Thrustmaster brand names. Active in this market since 1984, the Guillemot Corporation Group is currently present in 11 countries (France, Germany, Spain, the UK, the United States, Canada, Italy, Belgium, Romania, the Netherlands and China [Shanghai, Shenzhen and Hong Kong]) and distributes its products in more than 150 countries worldwide. The Group's mission is to offer high-performance, ergonomic products which maximize the enjoyment of digital interactive entertainment for end users. Contact: Guillemot Financial Information — Telephone: +33 (0) 2 99 08 08 80 — www.guillemot.com

APPENDICES

(All figures in €k)

Consolidated income statement at December 31, 2022

(€k)	Dec. 31, 2022	Dec. 31, 2021
Net turnover	188,047	176,755
Purchases	-105,064	-102,391
External expenses	-31,931	-31,372
Employee expenses	-14,421	-12,825
Taxes and duties	-806	-714
Additions to amortization and depreciation	-5,444	-4,453
Additions to provisions	-2,206	-2,226
Change in inventories	18,553	21,782
Other income from ordinary activities	289	341
Other expenses from ordinary activities	-12,774	-11,898
Net income from ordinary activities	34,243	32,999
Other operating income	0	0
Other operating expenses	0	0
Net operating income	34,243	32,999
Income from cash and cash equivalents	135	12
Cost of gross financial debt	100	124
Cost of net financial debt	35	-112
Other financial income	706	0
Other financial expenses	-7,397	-16,293
Corporate income tax	-7,235	-2,887
Net income before minority interests	20,352	13,707
O/w net income from discontinued operations	0	0
Attributable to minority interests	0	0
Net income attributable to equity holders of the parent	20,352	13,707
Basic earnings per share	1.33	0.90
Diluted earnings per share	1.34	0.89

Consolidated balance sheet at December 31, 2022

ASSETS (€k)	Dec. 31, 2022	Dec. 31, 2021
Goodwill on acquisitions	* 0	0
Intangible assets	23,276	16,176
Property, plant and equipment	8,184	5,176
Financial assets	668	473
Tax assets	495	359
Deferred tax assets	4,267	5,312
Non-current assets	36,890	27,496
Inventories	57,203	40,925
Trade receivables	34,743	59,872
Other receivables	4,079	6,609
Financial assets Current tax assets	11,723	19,118
Cash and cash equivalents	318 35,245	157 12,027
Current assets	143,311	138,708
Total assets
	180,201	166,204
LIABILITIES AND EQUITY	Dec. 31, 2022	Dec. 31, 2021
(€k)
Capital (1)	11,771	11,771
Premiums (1)	10,551	10,551
Reserves and consolidated income (2)	81,645	67,411
Currency translation adjustments	438	693
Group shareholders' equity	104,405	90,426
Minority interests	0	0
Consolidated shareholders' equity	104,405	90,426
Employee benefit liabilities	1,586	1,377
Borrowings	8,345	2,096
Other liabilities	0	0
Deferred tax liabilities	14	0
Non-current liabilities	9,945	3,473
Trade payables	38,887	38,068
Short-term borrowings	5,636	4,770
Taxes payable	2,437	2,725
Other liabilities Provisions	18,734 157	26,684 58
Current liabilities	65,851	72,305
Total liabilities and equity	180,201	166,204

(1) Of the consolidating parent company.

(2) Of which net income for the period: €20,352k.

Consolidated statement of cash flows to December 31, 2022

(€k)	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net income from consolidated companies	20,352	13,707
+ Additions to amortization, depreciation and provisions (except on current assets)	5,803	4,880
- Reversals of amortization, depreciation and provisions	-117	-23
-/+ Unrealized gains and losses arising from changes in fair value	7,395	15,877
+/- Expenses and income arising from stock options	550	50
-/+ Capital gains and losses on disposals	1	-7
Change in deferred taxes	1,057	-1,828
Operating cash flow after cost of net financial debt	35,041	32,656
Cost of net financial debt	35	112
Operating cash flow before cost of net financial debt	35,076	32,768
Currency translation adjustment on gross cash flow from operations	-295	23
Inventories	-16,278	-20,314
Trade receivables	25,129	-31,627
Trade payables	818	7,061
Other	-11,612	8,205
Change in working capital requirements	-1,943	-36,675
Net cash flows from operating activities	32,803	-3,996
Cash flows from investing activities
Acquisitions of intangible assets	-4,974	-3,324
Acquisitions of property, plant and equipment	-2,961	-2,115
Disposals of property, plant and equipment and intangible assets	19	8
Acquisitions of non-current financial assets	-205	-8
Disposals of non-current financial assets	13	21
Net cash from acquisitions and disposals of subsidiaries	0	0
Net cash flows from investing activities	-8,108	-5,418
Cash flows from financing activities
Increases in capital and cash injections	0	0
Buybacks of treasury shares	-2,629	0
Dividends paid	-3,813	-3,818
Borrowings	10,098	1,328
Repayment of shareholders' current accounts	0	0
Repayment of borrowings	-4,578	-5,120
Repayment of debt and interest (IFRS 16)	-631	-222
Other cash flows from financing activities	57	0
Total cash flows from financing activities	-1,496	-7,832
Impact of foreign currency translation adjustments	20	239
Change in cash	23,219	-17,007
Net cash at the beginning of the period	12,006	29,013
Net cash at the end of the period	35,225	12,006