YEAR-END REPORTJANUARY - DECEMBER 2019 / NITRO GAMES OYJ

REPORTING PERIOD JANUARY – DECEMBER 2019• Revenues(Jan-Dec):816,2KEUR(2204,2KEURoncorrespondingperiod2018).• EBITDA:-2658,3KEUR(-5101,0KEUR).• EBIT:-3284,5KEUR(-5734,4KEUR).• Netprofit:-3293,4KEUR(-5748,8KEUR).• Cashandcashequivalents:1677,5KEUR,and313,5KEURofshort-termreceivables(31December2019).

OCTOBER – DECEMBER 2019 • Revenues(Oct-Dec):426,6KEUR(407,9KEUR).• EBITDA:-554,6KEUR(-2117,4KEUR).• EBIT:-711,0KEUR(-2280,9KEUR).• Netprofit:-712,0KEUR(-2280,1KEUR).

SIGNIFICANT EVENTS DURING OCTOBER – DECEMBER 2019 • Announcednewgame:Lootland.• SignednewagreementwithExpansiveWorldsAB(“AvalancheStudios”).NitroGamesbuildingaDatastacktoAvalancheStudiostopreparefortheupcomingsoft-launchofanon-disclosedtitle.

• StrengthenedteamandLiveOperationscapabilities.• Completed,basedontheauthorisationofanExtraordinaryGeneralMeeting,adirectedissueofapprox.1,4MEUR(SEK15,0million).

• Received460000EURoffundingfromBusinessFinland.

SIGNIFICANT EVENTS AFTER THE PERIOD• SignedpublishingservicesagreementwithExpansiveWorldsAB(“AvalancheStudios”).• ExpandedsoftlaunchforHeroesofWarlandwithbiggestgameexpansiontodate.• Updatedontheroadmapandnowexpectsatotalofthreegamestoreachatleastsoftlaunchduringthefirsthalfof2020.

2

ABOUT NITRO GAMESNitroGamesisafree-to-playmobilegamedeveloperandpublishermakinggamesforthemid-coreusersegment.TheCompanyfocusesonproducingcompetitivemultiplayergameswithhighproductionvalueandhighrevenuepotentialforsmartphonesandtablets.WithNitroGames’powerfulNGPlatformandNGMVP-process,theCompanyisabletodomarketvalidationduringthedevelopmenttoensurehighproductquality.NitroGameshasdevelopedgamessuchasHeroesofWarland,MedalsofWar,RaidsofGlory,EastIndiaCompany,Commander:ConquestoftheAmericas,PiratesofBlackCove.

NitroGames’sharesarelistedonNasdaqFirstNorthGrowthStockholmwiththetickerNITRO.TheCertifiedAdviserisAugmentPartnersAB,info@augment.se,+468-50565172.

www.nitrogames.comFinnishBusinessID:FI21348196

EXPANDING OUR PORTFOLIO OF SHOOTER GAMES“Weendedtheyear2019withaseriesofgoodprogresshappeningduringthefourthquarter.Overallwearenowinabetterpositionafterexpandingourportfolioofshootergames,sequentiallyincreasingourrevenueandstrengtheningourpositioninbusinessdevelopmentbothwithexistingandnewpartners.

2019wastheyearwhenshootergamesfinallyestablishedthemselvesonmobile.WeareexpectingthecategorytocontinuetogrowandNitroGamesiswell-positionedtotakeadvantageofthis.Iamexcitedtocontinueourjourneyin2020withnewreleasescomingupfromourexpandingportfolioofshootergames.”

saysJussiTähtinen,CEOofNitroGames.

3

KEY FINANCIALS

Oct-Dec2019

Oct-Dec2018

Full Year2019

Full Year2018

AuditedRevenue(EURthousand) 426,6 407,9 816,2 2204,2Operatingprofit/loss(EURthousand) −711,0 −2280,9 −3284,5 -5734,4Operatingprofit/loss%(EBIT%) −166,7% −559,3% −402,4% -260,2%EBITDA(EURthousand) −554,6 −2117,4 −2658,3 -5101,0EBITDA% −130,0% −519,1% −325,7% -231,4%Netprofit/loss(EURthousand) −712,0 −2280,1 −3293,4 -5748,8Cashflowgeneratedfromoperations(EURthousand)

−309,7 −1579,2 −2661,2 -4939,9

Equityratio(%) 56,44% 84,00% 56,44% 84,00%Numberofshares,average 4151660 3361284 3749055 2668910Numberofsharesattheendoftheperiod

4992897 3616328 4992897 3616328

NumberofShareoptions 459368 307868 459368 307868Equitypershare(EUR) 0,4 1,1 0,4 1,1Earningspershare(EUR)undiluted −0,1 −0,6 −0,7 -1,6Earningspershare(EUR)diluted −0,1 −0,6 −0,6 -1,5Netdebt(EURthousand) −159,0 −2523,8 −159,0 -2523,8Numberofemployees 34 51 39 51

4

A WORD FROM JUSSI TÄHTINEN, CEO

Expanding our portfolio of shooter games

Weendedtheyear2019withaseriesofgoodprogresshappeningduringthefourthquarter.Overallwearenowinabetterpositionafterexpandingourportfolioofshootergames,sequentiallyincreasingourrevenueandstrengtheningourpositioninbusinessdevelopmentbothwithexistingandnewpartners.

Themostimportantvaluedriverwehaveisourteam.Improvingourteamwasoneofthebigfocuspointsfor2019.NitroGamesnowhasastrongseniorteamofprofessionalscoveringallthefunctionsfromgamedevelopmenttoself-publishing,live-operationsandbusinessdevelopment.

Ourvisionistobecomeahouseholdnameintheshootercategory.Shootergameshavehistoricallybecomeadominantgenreonotherplatformsandweexpectthistohappenonmobileaswell.

Ourstrategyistobuildaportfolioofshootergamesonmobile.We’redoingthisutilizingourproprietarytechnologyNGPlatform.Asaresultof2019,wenowhavethreeshootergameprojectsinourportfoliofor2020.

HeroesofWarlandhasgonethroughacompletere-workthroughaseriesofupdateswestartedrollingoutduringthethirdquarter.Movingforwardwe’relookingtocompletetheworkontheupdatesinsoft-launchandmeasuretheresultsofthisre-work.Weareself-publishingthegameonthewesternmarketsandhaveanagreementwithNetmarbleEMEAforpublishingintheMEAregion.

Lootlandisanewgameweannouncedattheendof2019.Weareexpandingourportfolioofshootergamesbyintroducinganeasytoapproachlootershootergamewithaheavyemphasisonco-opgameplay.Basedonourearlytestingresultswe’redelightedtoseeagreatdemandforagamelikethis.Lootlandiscurrentlyindevelopmentandtargetedforsoft-launchasanextstepin2020.

WeareworkingwithAvalancheStudiosinourServicebusiness.Thisprojectisagoodexampleofhowwecanutilizeourexpertise,technologyandpublishingcapabilitiesbeyondourowngames.ThiscreatesstrongsynergiesbetweenServicebusinessandourSelf-publishingbusinessandsupportsourvisionandstrategy.Iamlookingforwardtocontinuingtheco-operationlong-term.

Wehaveseveralinterestingfutureopportunitiesinourbusinessdevelopmentpipelineconcerningnewprojectsandstrategicco-operation,thatallhavestrongsynergieswithourexistingproductportfolioandtechnology.Overallitseemsthatourfocusedvisioncombinedwithrecenttrackrecordintheshootercategoryonmobilehascreatedusgoodmomentuminexploringthesenewopportunitiesnow.Wearealsolookingintonon-organicgrowthandaredeterminedtotakeactiononcewefindtherightfit.

Ourrevenuesgrewduringthefourthquarter.Wecontinuedoursequentialimprovementsthroughoutthesecondhalfoftheyear,Iamexpectingthistocontinuein2020.Ourcashpositionimprovedtowardstheendoftheyearasaresultoftheincreaseinrevenues,maintainingourlowercostbaseandraisingfundingfromBusinessFinland,andinadirectedshareissueinNovember.

2019wastheyearwhenshootergamesfinallyestablishedthemselvesonmobile.WeareexpectingthecategorytocontinuetogrowandNitroGamesiswellpositionedtotakeadvantageofthis.Iamexcitedtocontinueourjourneyin2020withnewreleasescomingupfromourexpandingportfolioofshootergames.

JussiTähtinenCEO,Co-Founder

5

“2019 was the year when shooter games finally established themselves on mobile. We are expecting the category to continue to grow and Nitro Games is well positioned to take advantage of this. I am excited to continue our journey in 2020 with new releases coming up from our expanding portfolio of shooter games.”

Jussi TähtinenCEO, Co-Founder

A COMMENT FROM CEO

6

SIGNIFICANT EVENTS DURING OCTOBER – DECEMBER 2019

Nitro Games announced new game Lootland. Lootlandisasuper-casualshootergamewithanemphasisonCo-Opmultiplayer.Playersclearwavesofenemiestogether,whilepickingupatonoflootfromthedefeatedmonsters.Lootallowstheplayerstoupgradetheirpreferredweaponsandarmor,whichhelpsthemtoadvancethroughthemoreandmorechallenginglevels.

ThisannouncementfollowsNitroGames’strategywherethecompanyisbuildingaportfolioofmobilegamestobeself-published.LootlandcontinuesNitroGames’focusontheshootercategory.ThegameexpandsNitroGamesportfolio,followingHeroesofWarland,thatiscurrentlygoingthroughaseriesofupdatesinsoftlaunch.

Lootlandiscurrentlyindevelopmentandistargetedforreleasein2020.ThedevelopmentofthegamefollowsNitroGames’MVP–process,wherethegameisbeingtestedwithliveaudiencesduringthedevelopmentphasetoensurethebestpossibleproduct-to-marketfit.

Nitro Games has signed a new Agreement with Expansive Worlds AB (“Avalanche Studios”) to develop a Data stack for Avalanche Studios. ThepartieshavepreviouslysignedanAgreementinJune2019,aboutNitroGamesdevelopingamobilegameforAvalancheStudios,basedonAvalancheIP.

WiththisnewAgreement,thepartiesarepreparingfortheupcomingsoft-launchofthegamethatNitroGamesisdevelopingforAvalancheStudios.TheDatastackisasetoftoolsandprocesses,basedonthedatapipelinethat’spartoftheNitroGames’proprietarytechnology,NGPlatform.

Theordervalueofthisnewagreementis30000EUR,andthereforenotsignificant,butholdsgreatstrategicvaluesinceitutilizesNitroGames’proprietarytechnologyandmobilegamepublishingcapabilitiesforathirdparty

Nitro Games strengthened its capabilities in Live-Operations, to support its strategy and the game release roadmap for 2020.IndustryveteranKennyChanjoinedNitroGamesasaSeniorProductManagerstartingnowinNovember2019.Kennybringsinhands-onexperiencefromlive-operatingfree-to-playmobilegamesandoperatinggamesasadatadrivenservice.PriortojoiningNitroGamesKennyhasworkedinseveralindustryleadingcompaniesincludingWargaming,GumiandUbisoft.

ThisrecruitmentfollowsNitroGamesstrategy,wherethecompanyisnowexpandingitsbusinesstowardslive-operations.Otherrecentactivitiesinstrengtheningthelive-operationscapabilitiesincludehiringSeniorDataAnalystAhmadPatel(Blizzard)andSeniorProducerCaleLares(CriticalForce),aswellasappointingJukkaHilvonenasthePerformanceMarketingManagertosupportgrowingneedsinmanaginguseracquisition.

Nitro Games completed, based on the authorisation of an Extraordinary General Meeting, a directed issue of approx. 1,4 MEUR (SEK 15,0 million.) TheBoardofDirectorsofNitroGamesOyjhasresolved,basedontheauthorisationreceivedbytheshareholdersattheExtraordinaryGeneralMeetingon20November2019,onadirectednewissueof1376569sharesatasubscriptionpriceofSEK10,9pershare,whichisexpectedtoraiseproceedstotheCompanyof1,4MEUR(SEK15.0million)millionbeforeissuecosts.TheproceedswillprimarilybeusedforthefurtherdevelopmentoftheCompany’sgameHeroesofWarland.

OtherinformationrelatedtotheDirectedShareIssuehasbeenpublishedon29October2019inaCompanyRelease.

7

SIGNIFICANT EVENTS AFTER THE PERIOD

Nitro Games has signed a Publishing Services Agreement with Expansive Worlds AB (“Avalanche Studios”), for a non-disclosed title. ThepartiesoriginallysignedanAgreementinJune2019,aboutNitroGamesdevelopingamobilegameforExpansiveWorlds,basedonExpansiveWorldsIP.WiththisAgreement,NitroGameswillperformpublishingservicesforJanuary–April30th2020.ThegoalofPublishingServicesistoprepareandexecutetheupcomingsoft-launchaccordingtoindustrystandardswithNitroGamespublishingteam.Theordervalueofthisnewagreementis100000EUR.Nitro Games introduce the biggest update so far to Heroes of Warland, expanding the game with a whole new meta game. Also,thegametestinghasbeenexpandedtonewmarkets,suchasCanada,UK,BrazilandMexico.Ascommunicatedearlier,NitroGameshasbeenworkingonaroadmapofupdatestothegameandthisroadmapisnownearingthecompletionduringthefirsthalfof2020.Withthisnewupdate,thegamenowhasacompletelynewmetagamelayer,consistingofanentirelynewprogressionsystemfortheherocharacters,anewseasonalBattlePasssystem,completelyrevisedin-gamestoreandvariousothersmallernewfeatures,suchasboostersthatgivetheplayersanedgeintheheatofthebattle.Movingforward,theexecutionoftheroadmapforHeroesofWarlandcontinueswithdeliveringmoreupdatesandopeningmoremarkets.Theplanistoexpandthegamestep-by-steptowardsmeasurementofresultsaftertheroadmapiscompleted.Paralleltothis,NitroGamesisworkingtogetherwithNetmarbleEMEAinpreparingthegameforthesoft-launchintheMEAregion.Nitro Games updates on the roadmap and now expects a total of three games to reach at least soft launch during the first half of 2020. NitroGameshasgainedexperienceinthecategoryofshootergameswithitslatestproductsandisnowfocusingonexpandingitsportfolioofshootergameswithfutureproducts,totakeadvantageofthemarketopportunityinthecategory.

Thecompanyiscurrentlyworkingonthreeshootergames,eachwithnewreleasesplannedforthefirsthalfoftheyear.ThegamesincludeHeroesofWarland,LootlandandayetunannouncedgamewithExpansiveWorldsAB(“AvalancheStudios”).HeroesofWarlandjustsawthebiggestexpansionsofarinJanuary,andthismarksmostoftheworkdonewiththenewroadmapofupdates.TheworkonHeroesofWarlandcontinueswithafocusonthecoregameplayandexpandingthegametomoremarkets.Lootlandiscurrentlyindevelopmenttowardsasoft-launchthatistargetedforthefirsthalfof2020.NitroGamesisalsoworkingonnewun-announcedshootergamesaspartofitsMVP-process,wherethecompanyisutilizingitstechnologyNGPlatformtoproducenewgameconceptstoaplayablestageatafastpace.

8

REVENUES & PROFIT / LOSS

RevenuesduringtheperiodJanuary–December2019were816220,35EUR(2204249,35EURoncorrespondingperiod2018),whichisandecreaseof62,97%comparedtothecorrespondingperiod2018.Majorityoftherevenuescameduringthesecondhalfoftheyear,asthecompanyfocusedonstreamliningitsoperationsduringthefirsthalfoftheyear.

EBITDAduringtheperiodJanuary–December2019was-2658265,71EUR(-5100979,73EURoncorrespondingperiod2018).

EBIT:OperatingresultbeforefinancialitemsfortheperiodJanuary–December2019amountedto-3284503,05EUR(-5734357,07EUR).

ThenetresultfortheperiodJanuary–December2019amountedto-3293425,94EUR(-5748806,324EUR).

Thecompanyexecutedacostsavingsplanandstreamliningofitsoperationsduringthefirsthalfoftheyear,whichreflectedinimprovementinthefiguresabove.

REVENUE DEVELOPMENT

The above graph illustrates the development of Revenue generation per quarter in 2019.

300,00

200,00

100,00

0,00

400,00

Q1 Q2 Q3

500,00

Q4

9

The above graph illustrates the development of EBITDA per quarter in 2019. The company had one-off costs related to the directed share issue during the fourth quarter.

Materialsandserviceswere-951386,19EUR(-1409296,96EUR).Thisincludesthirdpartycostsrelatedtogamedevelopmentandmaintenance(outsourcedservices),hostingcosts,aswellasmarketingcosts,suchasuseracquisition(AU)costs.

Thecompanymadechangesinterminologyusedinitsfinancialreportingatthebeginningof2019.Inthepastyears,thecostofuseracquisition(UA)hasbeenbookedunderOtheroperatingExpenses.Startingfrom2019,thesecostsweremovedunderMaterialandServices.UAcostsin2019were-521277,84EUR(-1657714,75EURoncorrespondingperiod2018).Thecomparativefigures2018havenotbeenchanged.

Otheroperatingexpenseswere-1561603,23EUR(-3609601,83EUR).Thisincludesthirdpartycostsrelatedtoaccounting,legal,fundingcosts,stockmarketexpenses,hardwareandsoftware,travelexpenses,officecostsandothercosts.

Thecompanyexecutedacostsavingsplanandstreamliningofitsoperationsduringthefirsthalfoftheyear,whichreflectedinlowercostbaseduringtheyear2019,comparedtothepreviousyear.

-1000,00

-1500,00

-500,00

0,00

Q1 Q2 Q3 Q4

EBITDA DEVELOPMENT

10

CASH FLOW AND FINANCIAL POSITIONNetcash,operatingactivitiesduringtheperiodJanuary-December2019was-2661,2KEUR(-4939,9KEURin2018forthecorrespondingperiod).Netcash,investingactivitieswas-1169,4KEUR(0,0KEUR).Netcash,financingactivitieswas2247,9KEUR(5832,4KEUR).Cashandcashequivalentsattheendoftheperiodwere1677,5KEUR,andthecompanyhad313,5KEURofshort-termreceivablesasof31December2019.

INVESTMENTS AND DEPRECIATION Partoftheexpensesfromgamesinproductionwereexpensedascosts.Partoftheexpensesfromthedevelopmentofthere-workednewversionofHeroesofWarland,andrelatedtechnologywerecapitalizedduringtheperiodagainstexpectedfutureprofits.ThisisvisibleintheIncomestatementunderManufacturingfortheenterprise’sownuse.

NewdevelopmentcostswerecapitalizedfromJanuary-Decemberbyatotalof1169400,33EUR.Thisincludesthirdpartycostsrelatedtothegamedevelopmentandmaintenance(outsourcedservices),personnelcosts,andothercosts,whicharedirectlyrelatedtotheproject.Thesecapitalizeddevelopmentcostsareamortizedoverafive(5)yearperiodonastraight-linebasisstarting1.1.2020.

Depreciationsweredoneaccordingtothedepreciationplan,consistingmostlyofcapitalizeddevelopmentcostsfrompreviousyears.Thedepreciationsamountedtoatotalof–626237,34EUR.

EMPLOYEESTheaveragenumberofemployeesin2019was39.ThenumberofemployeesonDecember31,2019was34.

MARKETNitroGamesoperatesintheglobalgamesmarketasadeveloperandpublisherofmobilegames.Historically,theCompanyhasoperatedinavarietyofmarketsegments,includingPCandconsolegamesaswellasmobilegames.NitroGamesnowfocusesonoperatinginthemobilegamesmarket.

2019globalgamesmarketwasestimated$152,1billioninrevenues,Mobilegamingwasthelargestsegmentin2019,totalingestimated$68,5billionandaccountingfor45%ofthetotalglobalmarket.Themajorityofgamersinmobilesegmentareplayingwithsmartphones.2,4billionpeopleplayedmobilegamesaroundtheworldin2019.

AccordingtoindustryresearchfirmNewzoo,theglobalgamesmarketisexpectedtogrowtomorethan$196billionin2022.

Source: NewZoo 2019

11

THE SHARE AND SHAREHOLDERSNitroGames’sharesaretradedonNasdaqFirstNorthGrowthStockholmsinceJune16,2017.

ThelargestshareholdersasofDecember31,2019were:.

Shareholders Number of shares % of shares and votes JasperusS.A.1 835977 16,74SavoxS.A.2 598341 11,98SwedbankRoburNYTeknikBTI 291340 5,84AvanzaPensionförsäkringAb 273633 5,48NordnetPensionsförsäkringAb 254873 5,10LudvigStrigéus 232645 4,66FeatInvestAb3 229717 4,60AktiaNordicMicroCap 138150 2,77AnttiVillanen 129254 2,59AjorantaGroupAb4 117103 2,35OP-FinlandMicroCapFund 108400 2,17Others 1783464 35,72The total number of shares 4 992 897 100,00

1JasperusS.A.iscontrolledto100%byJacobEhrnrooth. 2SavoxS.A.iscontrolledbyJacobEhrnroothwithfamily. 3FeatInvestAbiscontrolledbyJohanBiehl. 4AjoRantaGroupAbiscontrolledto100%byCFOMattiNikkola.ThetotalnumberofsharesasofDecember312019is4992897.

RELATED PARTY TRANSACTIONSTherewerenosignificantrelatedpartytransactionsduringtheInterimPeriod.

12

ACCOUNTING AND VALUATION PRINCIPLESTheCompanypreparesitsfinancialstatementsinaccordancewiththeFinnishAccountingAct(31.12.1997/1336,asamended),FinnishAccountingOrdinance(31.12.1997/1337,asamended),andinstructionsandstatementsoftheAccountingBoardoperatingundertheMinistryofEmploymentandtheEconomy(the“FinnishAccountingStandards”,“FAS”).InapplicablecasesTheCompanycapitalizestheexpensesusedfordevelopmentofproductsandtechnology,includingpersonnelcostsandprocurement,subtractedwithsubsidiesandgrantsreceivedforthese,totheextentthattheyareexpectedtogenerateeconomicbenefitsinthefuture.Amortizationanddepreciationforintangibleandtangibleassetsarecalculatedbyusingtheestimatedusefullifeoftheasset.Fortangibleassetsdepreciationaccordingtoplanstartsduringthecalendarmonthwhenthecommoditywastakenintouseandforintangibleassetswhenrevenuestartstoaccruefromthedevelopmentwork,typicallyduringtheyearafterthedevelopmentwork.

TheCompany’scapitalizeddevelopmentcostsareamortizedoverafive(5)yearperiodonastraight-linebasis.Formachinesandequipmenta25%expenditureresiduedepreciationismadeyearly.

REVIEWThisreporthasnotbeenreviewedbythecompany’sauditors.

CERTIFIED ADVISERNitroGames’CertifiedAdviserisAugmentPartnersAB,phone+46850565172,email:info@augment.se.

INVESTOR CONTACTThelatestinformationonthecompanyispublishedonthecompany’swebsitewww.nitrogames.com/investors.Thecompanycanbecontactedbyemailjussi@nitrogames.com,orbyphone+358443881071.

FINANCIAL CALENDARAnnualReport2019,17April2020,tobepublishedonthecompany’swebsiteandmadeavailableatthecompanyheadquartersatJuhaVainionkatu2,48100Kotka,Finland.InterimReport,Jan–Mar2020,27April2020.AnnualGeneralMeeting2020,8May2020.Half–YearReports,Jan-Jun2020,24August2020.InterimReport,Jan–Sep2020,26October2020.

13

PROPOSED ALLOCATION OF PROFITTheAnnualGeneralMeetingofNitroGamesOyjwillbeheldon8May2020.TheBoardofDirectorsproposestotheAnnualGeneralMeetingthatthelossforthefinancialyear(–3293425,94EUR)betransferredtotheprofit/lossaccountofthepreviousperiodsandnodividendbedistributed.

NOTEThiscompanyannouncementcontainsinformationthatNitroGamesOyjisobligedtomakepublicpursuanttotheEUMarketAbuseRegulation.Theinformationwassubmittedforpublicationbycontactpersonmentionedbelowon17February2020at09:00(EET).

FOR FURTHER INFORMATION, PLEASE CONTACT:Jussi Tähtinen, CEO, Co-founder +358443881071jussi@nitrogames.com

BOARD DECLARATION

TheBoardofDirectorsand theChiefExecutiveOfficerherebycertify that this InterimReportgivesa trueandfairviewofthecompany’sandthegroup’soperations,financialpositionandresultsofoperations,anddescribessignificantrisksanduncertaintiesfacedbythecompanyandthecompaniesinthegroup.

Kotka, Finland, 17 February 2020

JacobEhrnrooth,Chairman

AnttiVillanen IlkkaLassila SverkerLittorin

OliverKern WilhelmTaht JohanBiehl

JussiTähtinen,CEO

Sverker Littorin, Board member, IR-Advisor+46708755309sverker.littorin@nitrogames.fi

14

KEY FINANCIALS

Oct-Dec2019

Oct-Dec2018

Full Year2019

Full Year2018

AuditedRevenue(EURthousand) 426,6 407,9 816,2 2204,2Operatingprofit/loss(EURthousand) −711,0 −2280,9 −3284,5 -5734,4Operatingprofit/loss%(EBIT%) −166,7% −559,3% −402,4% -260,2%EBITDA(EURthousand) −554,6 −2117,4 −2658,3 -5101,0EBITDA% −130,0% −519,1% −325,7% -231,4%Netprofit/loss(EURthousand) −712,0 −2280,1 −3293,4 -5748,8Cashflowgeneratedfromoperations(EURthousand)

−309,7 −1579,2 −2661,2 -4939,9

Equityratio(%) 56,44% 84,00% 56,44% 84,00%Numberofshares,average 4151660 3361284 3749055 2668910Numberofsharesattheendoftheperiod

4992897 3616328 4992897 3616328

NumberofShareoptions 459368 307868 459368 307868Equitypershare(EUR) 0,4 1,1 0,4 1,1Earningspershare(EUR)undiluted −0,1 −0,6 −0,7 -1,6Earningspershare(EUR)diluted −0,1 −0,6 −0,6 -1,5Netdebt(EURthousand) −159,0 −2523,8 −159,0 -2523,8Numberofemployees 34 51 39 51

15

INCOME STATEMENT

EUR thousand Oct-Dec2019

Oct-Dec2018

Full Year2019

Full Year2018

AuditedRevenue 426,6 407,9 816,2 2 204,2Manufacturingforenterprise'sownuse

263,5 0,0 1169,4 0,0

Otheroperatingincome 2,1 44,2 9,0 69,0Rawmaterialsandservices −227,1 −415,1 −951,4 −1409,3Personnelexpenses −538,8 −714,0 −2139,9 −2355,3Depreciationandreductioninvalue −156,5 −163,6 −626,2 −633,4Otheroperatingcharges −480,8 −1440,3 −1561,6 −3609,6Operating profit (loss) −711,0 −2 280,9 −3 284,5 −5 734,4Financialincomeandexpenses −0,9 0,9 −8,9 −14,4Profit before taxes and appropriations

−712,0 −2 280,1 −3 293,4 −5 748,8

Appropriationsandtaxes 0,0 0,0 0,0 0,0Financialstatementtransfers 0,0 0,0 0,0 0,0Profit (loss) for the fiscal year −712,0 −2 280,1 −3 293,4 −5 748,8

Theseunauditedfinancialstatementsreportfortheperiod1.1.-31.12.2019havebeenpreparedaccordingtoFinnishAccountingStandards(FAS)andNasdaqFirstNorthGrowthmarketplacerulesandregulations.

Comparability of data against the previous financial year

Thecompanymadechangesinterminologyusedinitsfinancialreportingatthebeginningof2019.Inthepastyears,thecostofuseracquisition(UA)hasbeenbookedunderOtheroperatingExpenses.Startingfrom2019,thesecostsweremovedunderMaterialandServices.UAcostsin2019were-521277,84EUR(-1657714,75EURoncorrespondingperiod2018).Thecomparativefigures2018havenotbeenchanged.

16

BALANCE SHEET

17

EUR thousand 31 Dec 2019 31 Dec 2018

ASSETSNon-currentassetsIntangibleassets 1465,9 922,4Tangibleassets 1,3 1,7Non-currentassetstotal 1467,2 924,1CurrentassetsReceivablesLong-termdebtors 27,7 33,6Short-termdebtors 313,5 379,0Totalreceivables 341,2 412,6Cashinhandandatbanks 1677,5 3260,1Currentassetstotal 2018,7 3672,7ASSETS TOTAL 3 485,9 4 596,8

EQUITY AND LIABILITIESEquity Sharescapital 80,0 80,0Investedunrestrictedequityreserve 18469,4 17069,0Retainedearnings(loss) −13288,6 −7539,8Profit(loss)forthefiscalyear −3293,4 −5748,8Equitytotal 1967,4 3860,4LIABILITIES Non-current Loansfromcreditinstitutions 986,1 129,6

Othercreditors 0,9 0,9Non-currenttotal 987,0 130,6Current Loansfromcreditinstitutions 94,1 94,1AccountsPayables 228,8 259,3Othercreditors 39,2 47,7Accrualsanddeferredincome 169,5 204,7Currenttotal 531,5 605,8Liabilitiestotal 1518,5 736,4EQUITY AND LIABILITIES TOTAL 3 485,9 4 596,8

CASH FLOW STATEMENT

18

EUR thousand Oct-Dec2019

Oct-Dec2018

Full Year2019

Full Year2018

Cash flows, operating activities:

Netprofit(loss)beforetaxation,andextraordi-naryitems(+/–)

−712,0 −2280,1 −3293,4 −5748,8

Adjustmentsfor:

Depreciationaccordingtoplan 156,5 163,6 626,2 633,4

Unrealisedforeignexchangewinsandlosses(+/–)

0,0 0,0 0,0 0,0

Othernon-cashitems(+/–) 0,0 −39,2 0,0 −39,2

Financialincomeandexpenses(+/–) 0,9 −0,9 8,9 14,4

Otheradjustments(+/–) 0,0 0,0 0,0 0,0Operatingprofitbeforeworkingcapitalchanges −554,6 −2156,6 −2658,3 −5140,2

Workingcapitalchanges: 0,0 0,0 0,0

Increase(–)ordecrease(+)inlong-termtradeandotherreceivables

0,0 0,0 5,9 −17,0

Increase(–)ordecrease(+)intradeandotherreceivables

134,5 493,0 65,5 −24,0

Increase(–)ordecrease(+)ininventories 0,0 0,0 0,0 0,0

Increase(+)ordecrease(–)intradepayables 110,4 84,3 −74,3 241,3

Cashgeneratedfromoperations −309,7 −1579,3 −2661,2 −4939,9

Cashflowbeforeextraordinaryitems −309,7 −1579,3 −2661,2 −4939,9

Cashflow,extraordinaryitems(+/–) 0,0 0,0 0,0 0,0

Net cash, operating activities (A) −309,7 −1 579,3 −2 661,2 −4 939,9

Cash flows, investing activities:

Purchaseoftangibleandintangibleassets(–) −263,5 0,0 −1169,4 0,0

Net cash, investing activities (B) −263,5 0,0 −1169,4 0,0

Cash flows, financing activities:

Proceedsfromissuanceofsharecapital 1400,4 4585,5 1400,4 5954,7

Purchaseofownshares(–) 0,0 0,0 0,0 0,0

Proceedsfromsaleofownshares 0,0 0,0 0,0 0,0

Proceedsfromshort-termborrowings 0,0 0,0 0,0 0,0

Preceedsfromshort-termreceivables 0,0 0,0 0,0 0,0

Repaymentofshort-termborrowings(–) 0,0 −8,6 0,0 −8,6

Proceedsfromlong-termborrowings 460,0 0,0 950,6 0,0

Repaymentoflong-termborrowings(–) −23,5 −27,5 −94,1 −98,4

Intrestpaidandcontributionsfromfinancialexpenses(-)

−0,9 0,7 −8,9 −15,3

Dividends(-) 0,0 0,0 0,0 0,0

Taxes 0,0 0,0 0,0 0,0

Net cash, financing activities (C) 1 836,0 4 550,1 2 247,9 5 832,4

Net increase/decrease in cash and cash equivalents (A + B + C)

1 262,8 2 970,8 −1 582,6 892,6

Cashandcashequivalentsatbeginningofperiod

414,7 289,4 3260,1 2367,5

Cash and cash equivalents at end of period 1 677,5 3 260,1 1 677,5 3 260,1

CHANGE IN EQUITY

Asummaryreportshowingchangesinequityduringthefinancialquarterlyperiod,includingcomparativefiguresforthesameperiodduringthepreviousfinancialyear.

EUR thousand Share capital

Invested unrestricted

equity reserve

Retained earnings

(loss)

Profit (loss) for the financial

year

Total equity

Equity 1 Oct 2019 80 17069 −13289 −2581 1279Sharesissued 1400 1400Profit(loss)forthefinancialperiod −712 −712Equity 31 Dec 2019 80 18469 −13289 −3293 1967

Equity 1 Oct 2018 80 12483 −7540 −2476 2141Sharesissued 4586 4586

Profit(loss)forthefinancialperiod −2280 −2280Equity 31 Dec 2018 80 17069 −7540 −5749 3860

Equity 1 Jan 2019 80 17069 −13289 0 3860Sharesissued 1400 1400Profit(loss)forthefinancialperiod −3293 −3293Equity 31 Dec 2019 80 18469 −13289 −3293 1967

Equity 1 Jan 2018 80 11114 −7540 0 3654Sharesissued 5955 5955Profit(loss)forthefinancialperiod −5749 −5749Equity 31 Dec 2018 80 17069 −7540 −5749 3860

19

Kotka office:Juha Vainion katu 248100 KotkaFinland

Helsinki office:Kaisaniemenkatu 2 B, 5th floor 00100 HelsinkiFinland

Nitro Games Oyjwww.nitrogames.com/investorsVAT: FI21348196