Focus Entertainment — Board/Management Information 2018

Nov 27, 2018

FOCUS HOME INTERACTIVE

EEE - STRATEGY PLAN

Enhance - Evolve - Explore

Leveraging our strengths, Reinforcing our leading position in the AA video game market

French video games publisher FOCUS HOME INTERACTIVE (FR0012419307 ALFOC) is pleased to unveil its new strategy plan.

Since its listing on the stock market, FOCUS has shown strong performance, both in terms of growth and profitability. It is now generating annual revenue growth of 22%*, while operating profit is rising at a CAGR of 12,3%**.

In a competitive market, FOCUS HOME INTERACTIVE has the talents and organization needed to maximize value from its licences. Today, the Group is unveiling the key milestones in its strategy to become a leading global player in the AA - games market.

Content is key

The video games market's momentum is driven by fundamental trends:

• Launching new technologies and offering new business models,
• A growing range of platforms,
• Territorial expansion with Asia accounting for more than half of sales,
• The arrival of new big players,
• A consolidation of the market.

These trends have increased the need for high quality content and cemented the publisher's central role. The main thrust of our strategy is to continue enhancing our range of original AA games, adding value to strong licences.

Our strategy can be expressed through 3 major points: Enhance, Evolve, Explore.

ENHANCE: Investing in quality content

We continue providing ever more ambitious AA games, with the range of development budgets evolving from 1 to 7M€ today, to 1 to 15M€ tomorrow.

The additional money invested in games will result in even better content allowing the Group to engage players for longer periods (DLCs, Expansions, Sequels…) and adding new revenue streams.

In addition to working with the most talented French studios, FOCUS HOME INTERACTIVE will soon be in a position to announce partnerships with new international studios.

EVOLVE: An M&A strategy aimed at cementing our ties with key studios and increasing control on intellectual property

FOCUS HOME INTERACTIVE has started talks with key studios that share our vision of content and market trends. This strategy will increase control over our intellectual property, improve margins, and allow the Group to create its own franchises.

We will also extend our footprint in high-potential territories, such as Asia and South America.

EXPLORE: Fresh opportunities to boost the value of our flagship licences

Focus Home Interactive is ready to expand its offer by proposing its content on new promising platforms and using new business models. The Group will explore opportunities available on additional segments like AR/VR and the mobile market via licensing with strong partners. Focus will continue to develop its catalogue for key distribution models such as streaming.

A strengthened management team to match our goals

To steer these changes effectively, we recently strengthened our corporate team with the appointment of John Bert as Chief Operating Officer. John Bert held the position of Business Director for many years. His considerable management experience and his extensive knowledge of the market have always been major assets for the group. John Bert and his team have contributed greatly to the Group's international expansion and the marketing of our titles across all distribution media (retail, digital, streaming, etc.). He has also helped to form and consolidate partnerships with Focus's key studios. The appointment of John Bert as COO ensures true continuity in the Group's skills and expertise.

Aurélie Rodrigues has been made Sales Director, while Vincent Chataigner will manage the Business Development team (Business Development Director). Both are long-standing members of the team. The Management team also has the pleasure of welcoming the talented Dessil Basmadjian, who will be in charge of the Group's Creative Department (Creative Director).

These appointments come in step with the new management package covering a period of 3 years and approved by the Supervisory Board and now being implemented for top and middle management and for key talent.

"FOCUS's success stems from the quality of its high-potential licences and its ability to adapt swiftly to a shifting market. We are determined to enhance the quality of our content and licences and, especially, to leverage them more effectively. Our entire team is driven by a shared ambition: To become a global leader in AA games", says FOCUS HOME INTERACTIVE's Management Board Chairman, Jürgen Goeldner.

*2014 to 2018 (guidance) **2014 to March 2018

About Focus Home Interactive

FOCUS HOME INTERACTIVE is a French publisher of video games. Its mission is to support development studios in overseeing the production, marketing, sales and financing of their projects. The publisher of successful original titles such as Vampyr, Mudrunner, The Surge and Farming Simulator, the Group recorded 2017 revenues of €89.9m, generated over a period of 15 months. FOCUS HOME INTERACTIVE generates more than 90% of its sales internationally.

Upcoming events

2018/2019 H1 results & 2018/2019 Q3 revenues

Thursday 24 January 2019

All financial information pertaining to FOCUS HOME INTERACTIVE can be found on www.focus-home.com

Financial communications contacts

FOCUS HOME INTERACTIVE

Deborah Bellangé Tel.: + 33 (0) 1 55 26 85 00 mail : dirgen@focus-home.com Investor Relations – ACTIFIN Benjamin Lehari Tel.: + 33 (0) 1 56 88 11 25 mail : blehari@actifin.fr

Press Relations – ACTIFIN Jennifer Jullia Tel.: + 33 (0) 1 56 88 11 19 mail : jjullia@actifin.fr