SUMO GROUP PLCUNAUDITED HALF YEAR RESULTS 2019

01

Certain statements included or incorporated by reference within this presentation may constitute “forward-looking statements” in respect of the Group’s operations, performance, prospects and/or financial condition.

By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, no assurance can be given thatany particular expectation will be met and reliance should not be placed on any forward-looking statement. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting from new information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast.

This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other securities in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares and other securities of the Company. Past performance cannot be relied upon as a guide tofuture performance and persons needing advice should consult an independent financial adviser.

Statements in this presentation reflect the knowledge and information available at the time of its preparation. Liability arising from anything in this presentation shall be governed by English Law. Nothing in this presentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

DISCLAIMER

H1 19 results in line with expectations

with significant H2 weighting as

previously flagged

Acquisition of Red Kite Games in

January 2019

Mobile focussed Leamington Spa studio opened in

March 2019

Strong growth in headcount to 711 at

end of August – 20% increase from

December 2018

Announcement of work with 2K at

Sheffield and Red Kite Games

Two Own-IP games announced for release:

• Pass the Punch

• Dear Esther iOS

Strong cashflow performance YTD

Current trading in line with

management expectations and outlook positive

02

INTRODUCTION

Appointment of Ian Livingstone as Chairman

Contracted/near-contracted development fees

94.6% 2019

41.1% 2020at September 2019

Definition of financial terms shown in the appendix

03

FINANCIAL HIGHLIGHTSALL FIGURES IN THIS PRESENTATION ARE UNAUDITED UNLESS STATED OTHERWISE

Revenue

£20.8m

+7.5%

(H1 18: £19.3m)

Adjusted gross profit

£9.8m

+13.7%(H1 18: £8.6m)

Adjusted gross margin excluding royalties

46.3%(H1 18: 43.6%)

Utilisation (Group)

94.8%(H1 18: 93.2%)

Adjusted EBITDA

£5.2m

+4.5%(H1 18: £5.0m)

Cash flow from operations

£3.5m(H1 18: £(3.4m) outflow)

Net cash

£4.3mJune 2019

(Dec 18 £3.7m)

CONSOLIDATED INCOME STATEMENTY/e 31 December

H1 19 H1 18 FY 18 YoY growth Notes

£m £m £m

Revenue

Core development fees 20.4 18.9 37.5

Own IP 0.1 0.3 0.4 Snake Pass launched March 2017

Royalties 0.3 0.1 0.8 FY 18 includes £0.2m recognition of variable consideration under IFRS 15

Total Revenue 20.8 19.3 38.7 7.5%

Adjusted revenue 20.8 19.6 38.9 6.1% Includes IFRS 15 adjustment of £0.2m in H1 18 and FY 18

Adjusted gross profit 9.8 8.6 18.8 13.7%

Gross Margin 44.8% 43.1% 47.6%

Adjusted gross margin excluding royalties 46.3% 43.6% 47.6%

Adjusted EBITDA 5.2 5.0 10.4 4.5%

Adjusted EBITDA margin 25.1% 25.5% 26.8%

Profit / (loss) before tax 1.3 (2.1) (0.9)

04

REVENUE AND GROSS PROFITRevenue Gross profit

H1 19£m

H1 18£m

FY 18£m

H1 19£m

H1 18£m

FY 18£m

Statutory 20.8 19.3 38.7 9.3 8.3 18.4

Customer revenue included within finance income

- 0.3 0.4 - 0.3 0.4

Accrued royalty not yet received and contingent on future sales

- - (0.2) - - (0.2)

Investment in co-funded games expensed

- - - 0.5 - 0.2

Adjusted 20.8 19.6 38.9 9.8 8.6 18.8

05

EBITDAH1 19 H1 18 FY 18

£m £m £m

Statutory operating profit / (loss) 1.4 (2.1) (1.1)

Amortisation 0.5 5.0 6.9

Depreciation 1.0 0.5 1.1

Share based payments charge after prior year adjustment 2.0 1.3 3.0

Customer revenue included within finance income - 0.3 0.4

Accrued royalty not yet received and contingent on future sales - - (0.2)

Investment in co-funded games expensed 0.5 - 0.2

Operating lease costs capitalised under IFRS 16 (0.5) - -

Exceptional items (transaction fees) 0.3 - 0.1

Adjusted EBITDA 5.2 5.0 10.4

06

June 2019 June 2018 December 2018 Notes

£m £m £m

Goodwill and intangibles 23.4 23.4 22.4

PPE 8.2 2.6 2.5 Additions include computer hardware £1.1m and IFRS 16 right of use asset £5.3m

Deferred tax asset 2.7 1.7 2.0

Trade and other receivables 29.3 18.2 25.2

Cash 4.3 6.5 3.7 No debt. Cash at end August 2019 £8.9m

Trade and other payables (15.6) (11.0) (11.5)

Corporation tax payable (0.7) (0.9) (0.8)

IFRS 16 lease liabilities > 1 year (4.0) - -

Net assets 47.6 40.5 43.5 Positive net tangible assets

CONSOLIDATED BALANCE SHEET07

TRADE AND OTHER RECEIVABLES & TRADE AND OTHER PAYABLESJune 2019£m

June 2018£m

December 2018£m

Revenue in excess of billings

Contract 1 2.3 5.3 7.8

Contract 2 2.3

Contract 3 - 2.6 -

Contract 4 - - 1.9

Other 1.0 0.5 1.6

Trade debtors* 11.1 2.7 5.9

Work in progress 0.8 - -

VGTR 10.0 5.7 6.3

Other 1.8 1.4 1.5

29.3 18.2 25.2

Trade creditors (6.3) (3.8) (4.6)

Contract liabilities (0.8) (1.0) (0.5)

IFRS 16 lease liabilities > 1 year (1.0) - -

Other provisions (7.5) (6.2) (6.4)

(15.6) (11.0) (11.5)

08

*Includes £3.5m for Contract 1 for which cash was received 9 July 2019

WORKING CAPITAL09

June 2018£m

December 2018£m

June 2019£m

August 2019£m

Net contract debtors 10.1 16.9 16.7 11.3

VGTR 5.7 6.3 10.0 5.3

Other debtors 1.4 1.5 1.8 1.0

Trade creditors (3.8) (4.6) (6.3) (2.3)

Other creditors* (6.2) (6.4) (7.5) (6.3)

Net working capital 7.2 13.7 14.7 9.0

Cash 6.5 3.7 4.3 8.9

*Excludes IFRS 16 liability

£0.0

£2.0

£4.0

£6.0

£8.0

£10.0

£12.0

£14.0

£16.0

Jun-18 Dec-18 Jun-19 Aug-19

£m

Cash Net Working Capital

CONSOLIDATED CASH FLOW STATEMENTY/e 31 December

H1 19 H1 18 FY 18 Notes

£m £m £m

Operating profit / (loss) 1.4 (2.1) (1.1)

Depreciation 1.0 0.5 1.1

Amortisation 0.6 5.0 6.9 Accelerated amortisation in 2018 from 2017

Share based payment charges 2.0 1.3 3.0

Movement in trade and other receivables (4.1) (8.1) (13.7)

Movement in trade and other payables 2.6 - (1.1)

Net cash flow from operating activities 3.5 (3.4) (4.9)

Net finance costs (0.1) - 0.2

Tax paid (0.8) (1.0) (1.7)

Capex (1.6) (1.5) (2.2)

Outflow of financial debt – IFRS 16 (0.4)

Net cash flow 0.6 (5.9) (8.6)

10

GUIDANCE / UPDATETax • Tax charge driven by deferred tax on share based payment charge, VGTR and timing of game launches

Working capital• Net working capital reduced from £14.7m at 30 June 2019 to £9.0m at 31 August 2019• Expected inflow in 2019

Capex• Now expecting c £4.5m in 2019 on premises and new systems including audio studio and Leeds• c £5m in FY 20 including audio studio and Newcastle

Red Kite Games• Expect £0.2m EBITDA in 11 months to December 2019• Transaction costs £0.1m• Capital cost of investment low – relocation to Leeds

Foreign Currency

• Significant contracted revenue in US $ as previously flagged• Hedging in place

IFRS 16• Adopted in FY19 using grandfathering , short-term and low-value lease exemptions & modified

retrospective methodology• Impact on EBITDA expected to be c £1m : details in appendix

FY 2019 • Expecting significant H2 weighting due to phasing of projects including Own-IP and royalties

11

CLIENT AND PROJECT CONCENTRATION

FY 2017 FY 2018 H1 2019

A 1ST 2 PROJECTS 2ND 2 PROJECTS 3RD 3 PROJECTS

B 2ND 1 PROJECT

C 3RD 3 PROJECTS 1ST 3 PROJECTS 1ST 3 PROJECTS

D 3RD 1 PROJECT

E 2ND 2 PROJECTS

6 PROJECTS58%

6 PROJECTS53%

8 PROJECTS65%

12

CL

IEN

T

VIDEO GAMES TAX RELIEF13

H1 2019: £3.7m(H1 2018: £3.0m)

Included with Direct

Costs

Maintains broad

political support

RECENT GAMES RELEASED AND GAMES OR CLIENTS ANNOUNCED

STRATEGICPARTNERS

14

LIVE PROJECTS15

SHEFFIELD PUNE, INDIA NOTTINGHAM NEWCASTLE BRIGHTON(THE CHINESE ROOM)

HUDDERSFIELD(RED KITE GAMES)

LEAMINGTON ATOMHAWK

275 116 84 51 31 28 13 46

SPYDER(Apple)

WORK-FOR-HIREPASS THE PUNCH

(New-IP)

NEW-IP(Focus Home Interactive)

LITTLE ORPHEUS(Apple)

CO-DEVELOPMENT NEW-IP

MORTAL KOMBAT 11 - DLC

(NetherRealm/ WB Games)

NEW-IP NEW-IP WORK-FOR-HIREMINECRAFT EARTH

(Microsoft)

NEW-IP CO-DEVELOPMENT WORK-FOR-HIRE

+14 OTHER LIVE PROJECTS

INCLUDING:

MULTIPLE AAA NEW-IP

MULTIPLE AAA LICENSED IP

NEW-IP PORTING WORK-FOR-HIRE

FRANCHISE

CO-DEVELOPMENT

ANNOUNCED UNANNOUNCED

SUMO DIGITAL

Headcount figures are studio based staff at 31 August 2019

Project initiation → Concept → Prototype → Pre-production → Production → Feature Complete → Content Complete → Post-launch → Project Closedown

• Gated Process

CAPITAL MARKETS DAY 2ND JULY 201916

GAME DEV PROCESS

ART IMPLEMENTATION

• Characters, vehicles, environments

• Inter-action with physical media

• Challenges, experience &

expertise

• In-house engine technology

• Starlight, Sumo Engine &

Sumo Libraries

• AMP

• Cloud Technology

SUMO TECHNOLOGY

• “Goldilocks Zone” – neither too

hard nor too easy

• Player satisfaction &

engagement

• Design → Implement → Tune

• Make change → Gather data

• Tinker Tool – proprietary Sumo

software

• Playtesting / Beta testing

GAME DESIGN & BALANCE

GROSS MARGINUnderpinned by:

Strong demand Core tech Cost structure

17

H1 19£’000s

H1 18£’000s

FY 18£’000s

Royalties received 168 100 515

Accrued royalty 91 - 250

Reported Royalty 259 100 765

Royalty accrued in H2 18 excluded from FY18 Adjusted EBITDA

250

509

ROYALTIES18

• Prevalent in development contracts

• Terms vary

• Timing of receipt outside developers control

Promote long-term relationships

Align publisher and developer interests

Recognise importance of

developer

OWN-IP19

OWN-IP RELEASED

iOS

OWN-IP ANNOUNCED FUTURE ROYALTIES FROM OWN-IP

BOOSTING SUMO’S CREATIVITY20

REGULAR GAME JAMS

PROTOTYPING

CONCEPTTEAM

SUMO DIGITAL AND ATOMHAWK STUDIOS21

BRAND STUDIOS CITY STUDIOSNEWCASTLE VANCOUVER

HEADCOUNT, RECRUITMENT AND UTILISATION

Recruitment

• Proven track record of out performing targets

• Attractions of Sumo Digital include multiple platforms, genres & technologies

• Multiple locations & talent pools

• Strong relationships with universities

• Incentive structures

• Attrition rates running at acceptable levels – 6.4% YTD to August in UK and 8.3% in India

Headcount 31 December 2018 30 June 2019 31 August 2019

Direct 488 560 588

Indirect 104 119 123

Total 592 679 711

22

Utilisation

• Based on available billable Man Months

• Factors in annual holiday entitlement and reflects the delivery model - very little administration or business development responsibilities for most

• Aim for 95% utilisation – achieved 94.8% for the group in H1 19 (93.2% in H1 18 and 94.7% in FY18)

• Use contractors for specialist skills or capacity –can be up to 10% of revenue – 4.8% of revenue in H1 19 (FY18 : 4.9%)

XB

OX

PL

AY

ST

AT

ION

SW

ITC

H

PC

MO

BIL

E

VR

E-S

PO

RT

S

THE MARKET AND GROWTH DRIVERS

Sources: Newzoo, ESA, UK Government, IDC, British Council, UKIE, Deloitte, Statista, *in the US

2019

$152BN2022

$196BN

APPLE ARCADE

GOOGLE STADIA

AVERAGE AGE 34*

45% FEMALE*

TAX INCENTIVES

UK UNIVERSITIES

23

Accelerated organic growth• Headcount growth achieved across 9 studios• New studio locations UK, India & Europe since IPO• Leverage concept creation opportunities while keeping relatively

low risk model

H1 2019 – organic revenue growth 2.0%

M&A• Atomhawk: June 2017• CCP Newcastle: January 2018• The Chinese Room: August 2018• Red Kite Games: January 2019

H1 2019 – revenue growth including acquisitions 7.5%

• New UK studio locations actively being explored

• Strong acquisitions pipeline

STRATEGY24

SUMMARY AND OUTLOOK• H1 2019 results in line with management expectations following

successful transition to new projects

• Increased investment in Own-IP on low risk basis

• Acquisition of Red Kite Games

• Opened Leamington Spa studio focussed on mobile games

• On track to deliver significant revenue and profit growth in FY 19

• Investing in people and systems for future growth

• Strengthening strategic partnerships

• Strong pipeline of opportunities in growing market

• Board confident in the prospects of the Group in the near term and beyond

WELL POSITIONED TO DELIVER THE GROWTH STRATEGY

25

APPENDICES

26

FINANCIAL CALENDAR

Announcement of half-year results 26 September 2019

Financial year end 31 December 2019

Preliminary announcement of full-year results April 2020

Publication of Annual Report and Accounts May 2020

Annual General Meeting June 2020

27

THE TEAM

• Co-founded Sumo Digital in 2003

• Over 20 years of industry experience having previously been VP of Development at Infogrames

• 2015 recipient of the TIGA Most Outstanding Individual Award

• Led secondary buy-out with Perwyn in 2016

Carl Cavers Co-Founder & Chief Executive Officer

• Co-founded Sumo Digital in 2003

• Over 25 years of industry experience having previously been Head of Core Technology at Gremlin Interactive

• Previously Managing Director of Sumo Digital

• Appointed COO in April 2019

Paul PorterCo-Founder & Chief Operating Officer

• Big Four qualified chartered accountant with c.30 years post-qualified experience as Finance Director, Non Executive Director and Consultant. Previously worked in M&A with Rothschild

• Experience of PLC and Private Equity roles including as Group Finance Director of WYG plc and as Non Executive Director and Chair of the Audit Committee of Sweett Group plc

• Appointed CFO in 2017

David WiltonChief Financial Officer

28

SUMO’S REVENUE MODEL

14

29

THE SUMO CORE DEVELOPMENT REVENUE MODELVisibility of development fees with upside from back-end royalties

Contracted Development Fees – Paid on a 4-6 week development cycle based on milestones

Royalties

Concept & Pre- Production Production and Finalisation Downloadable Content & Games as a Service

Sumo control production and delivery…

Illustrative Project

… and share in upside on strategic projects

Revenue – Development Fees (LHS) Revenue – DLC (LHS) Revenue – Royalties (LHS)

100

200

300

400

500

600

700

800

900

1,000

Re

ven

ue

an

d c

ost

pro

file

(£’0

00

)

T0 T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14 T15 T16 T17 T18 T19 T20 T21 T22 T23 T24 T25 T26 T27 T28 T29 T30 T31 T32 T33 T34 T35 T36 T37 T38 T39 T40 T41 T42 T43 T44 T45

30

NOW HAVE THREE TYPES OF CONTRACT

Contract type Game Development(Turn Key or Co-Dev)

Own IPOriginal concept creation developed in partnership

with third party

Funding Publisher Sumo or third partyCo-funded with or fully funded by

partner

Control of IP Publisher SumoPublisher

(Sumo may retain legal ownership)

Payment modelMilestones payments plus royalties

as earnedGame sale revenues or guaranteed

royalty (if developed by a third party)Milestones and royalties

Accounting

Development fees recognised using estimate of contract margin &

percentage of completion

Royalties earned subject to IFRS 15 recognition principles

Development costs expensed as incurred

Recognise revenue as earned or guaranteed royalties as contractual

obligation triggered

Capitalise development costs as intangible asset with regular impairment reviews (IAS 38)

Development fees as for publisher funding

Sumo investment expensed as incurred

*NEW*

06

31

KEY RISKS

RECRUITMENT & RETENTION

TAX INCENTIVES (VGTR IN UK)

CLIENT CONCENTRATION

Strong growth sector with limited supply of high quality talent

£3.7m in H1 2019 (H1 2018: £3.0m) included within direct costs

Relatively small number of publishers who are often very large global

corporations

Sumo has consistently grown headcount with active recruitment in several talent pools & relatively low

attrition

UK VGTR committed to 2023 and has demonstrably created jobs and tax

revenueTax incentives in many other countries

including Canada, US and France

Strong strategic partnerships with large publishers and winning new

clients including Apple

32

Gaming tax credits make the UK more competitive whilst increasing HMRC receipts

• VGTR introduced in 2014 as part of Creative Sector Tax relief and we believe has cross-party support

• The EU commission announced in 2017 that the VGTR scheme will continue until at least 2023

• Provides tax relief at the lower of 100% EEA core expenditure (designing, producing and testing), or 80% total core expenditure

• Since April 2014 £230m paid for 770 claims on 480 video games

• To qualify for VGTR a game must satisfy three conditions:

• Intended for supply to general public

• Passes a points based British cultural test

• At least 25% core expenditure on the game must arise in the EEA

• Similar tax incentive arrangements in place in other countries including Canada, the US and France and being considered in Germany, the Republic of Ireland and Poland

BFI report in October 2018 shows in 2016:

• Total development spend in video games sector was £1.25bn of which £390m accessed VGTR

• For every £1 spend, the UK has seen an additional £4 of gross value added and VGTR has helped generate c9,170 FTEs

VIDEO GAMES TAX RELIEFAs the video game developer, Sumo is eligible to claim the VGTR

• Sumo sets up SPVs to maximise and ring fence the VGTR

• Moved to short accounting periods for SPVs to improve cash flows

• Agree the basis of VGTR treatment with customers

• VGTR (which is typically around 20% of contract value) can benefit Sumo in the following ways:

• Receive full cash flow benefit

• Reinvest to achieve improved back-end royalty deal

• Pass to customer for increased contract margin

• Majority of current Sumo games qualify for VGTR and Sumo is the UK’s largest developer

33

VIDEO GAME ECOSYSTEMHardware Royalty/ Manufacturing fee

Middleware/Tool Providers

Game Developers Game Publishers

Licence Fees Hardware Revenue

Software Revenue

Game sales

Prepaid Development Fees & Incremental Royalty

Game DevelopersIN-HOUSE DEVELOPERS INDEPENDENT THIRD PARTY DEVELOPERS

Hardware manufacturing

Retail and Distribution

Consumer

34

STUDIO TIMELINE

released to-date and many more on the way...

2004 2019 -2008 2012 2016

Over 60 Games

35

Mike Allen & Damian Dunn

James Lockyer

Patrick O’Donnell

Benjamin May

Andy Bryant

Katie Cousins

ANALYSTS AND SHAREHOLDERS

Significant shareholdersNumber of shares

% Holding

Perwyn Bidco (UK) Limited 41,170,961 27.3%

BlackRock Inc 14,395,963 9.6%

Directors & related holdings 14,141,475 9.4%

Liontrust Investment Partners LLP 8,000,000 5.3%

Swedbank Robur Fonder AB 7,807,391 5.2%

Schroder Investment Management 6,500,000 4.3%

Aghoco 1337 Limited (as trustee of the Sumo Group plc EBT)*

4,618,735 3.1%

Total number of shares in issue 150,578,159

Fully diluted share capital 157,861,430

*Includes 6,601,907 shares owned by Carl Cavers and 6,202,091 shares owned by Paul Porter

The analysts who have published research on Sumo The shareholders who own Sumo

Kevin Ashton

Also comments from

36

Ken Rumph Peter Smedley Steve Robertson

SHARE BASED PAYMENTS

Management incentive schemes

2018 2019 2020 2021 Total

Actual £m £m £m £m £m

Nil cost options at or after IPO 0.8 0.4 - - 1.3

LTIP awards 2.1 3.4 3.4 1.2 10.1

Share Incentive Plan with 3:1 matching and 200 free shares – launched July 2018

0.1 - 0.1 - 0.2

Total 3.0 3.8 3.4 1.2 11.6

Redesigned bonus scheme introduced from 2018

• SMART objectives

• Broader and deeper participation – additional c.50 senior employees provided with specific targets including Operating Board, Studio Directors, Discipline Directors and Development Directors, some of whom had smaller discretionary bonuses in the past

• Scope for self-funded element for outperformance

37

IFRS 16: LEASES• Adopted in FY19 using the modified

retrospective approach

• Right of use assets recognised as if IFRS16 has always applied

• Taken advantage of the short term and low value exemptions

• This resulted in the recognition of a right of use asset of £5.2m on transition and a lease liability of £5.4m, offset by the release of a lease liability of accrual for £0.2m

• The impact of the transition on EBITDA for the full year 2019 is expected to be an increase of £1.0m

The impact on the H1 19 accounts is as follows:

38

Pre IFRS 16H1 19

Impact on transition

1 Jan 19

Movement in the year

Post IFRS 16H1 19

£m £m £m £m

Income statement

Gross profit 9.3 - - 9.3

Operating expenses excluding depreciation, amortisation & exceptional items

(6.5) - 0.5 (6.0)

EBITDA 2.7 - 0.5 -

Depreciation, amortisation, exceptional items & net finance costs

(1.5) - (0.5) (2.0)

Profit before taxation 1.2 - 0.0 1.3

Balance sheet

Assets 63.1 5.15 (0.36) 67.9

Liabilities (15.5) (5.16) 0.36 (20.3)

Net assets 47.6 (0.01) 0.00 47.6

Cash Flow

Cash generated from operating activities 3.0 - 0.51 3.5

Tax and interest cash flows (0.8) - (0.07) (0.9)

Cash generated from financing and investing activities

(1.5) - (0.44) (2.0)

Net increase in cash 0.6 - - 0.6

RECONCILIATIONS39

Unaudited H1 19£m

Adjustment£m

Underlying H1 19£m

Unaudited H1 18 £m

Adjustment£m

Underlying HY 18£m

Revenue 20.8 - 20.8 19.3 0.3 19.6

Gross Profit 9.3 0.5 9.8 8.3 0.3 8.6

Operating expenses excluding depreciation, amortisation & exceptional items

(6.0) - (6.0) (4.9) - (4.9)

Customer revenue included within finance income - - - 0.3 (0.3) -

Investment in co-funded games expensed 0.5 (0.5) - - - -

Operating lease costs capitalised under IFRS 16 (0.5) - (0.5) - - -

Share based payments 2.0 - 2.0 1.3 - 1.3

Adjusted EBITDA 5.2 - 5.2 5.0 - 5.0

Depreciation (1.0) - (1.0) (0.5) - (0.5)

Amortisation of software (0.1) - (0.1) (0.1) - (0.1)

Net finance costs (0.2) - (0.2) 0.1 (0.1) (0.1)

Customer revenue included within finance outcome - - - (0.3) 0.3 -

Investment in co-funded games expensed (0.5) 0.5 - - - -

Operating lease costs capitalised under IFRS 16 0.5 - 0.5 - - -

Adjusted profit before tax, share based payment charge, exceptional items and amortisation of customer contracts and customer relationships

4.0 - 4.5 4.2 - 4.3

Amortisation of customer contracts and customer relationships (0.5)(4.9)

Share based payment charges (2.0) (1.3)

Operating expenses – exceptional (0.3) -

Profit / (loss) before taxation 1.3 (2.1)

DEFINITIONS 1. Adjusted revenue is stated after inclusion of £0.3m of customer revenue included in finance income as

required by IFRS 15. No adjustment has been made for H1 19.

2. Adjusted Gross Profit is stated after the adjustments to revenue included in note 1 above and excluding expenses incurred on investment in co-funded games (H1 19 £0.5m, H1 18 £Nil)

3. Adjusted gross margin excluding royalties is calculated as adjusted gross profit excluding royalty income, as a percentage of adjusted revenue excluding royalty income

4. Adjusted EBITDA is profit before tax stated after the adjustments in notes 1 and 2 above and before finance costs, depreciation, amortisation, share based payment charges, exceptional costs of £0.3m (H1 18: nil) and the impact of IFRS 16 on operating expenses

5. Adjusted profit before tax is stated after adjustments included in notes 1 and 2 above, excluding share based payment charges, exceptional costs and the amortisation of customer contracts and relationships of £0.5m (H1 2018: £5.0m).

40