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SUMMARY ANNUAL REPORT 2016

THQ NORDIC AB (PUBL.)

Darksiders

THQ NORDIC AB (PUBL) SUMMARY ANNUAL REPORT 20162

SUMMARY ANNUAL REPORT 2016This Summary Annual Report is a condensed summary of the Company's 2016 annual report, which is filed with Bolagsverket (Swedish Companies Registration Office). In case of any discrepancies between this version and the Swedish annual report, the Swedish version shall prevail.

THQ NORDIC IN BRIEF

About Us

3

A Strong Platform For Further Growth

OUR HISTORY 4

Highlights Of The Year

2016 IN BRIEF 6

Strategy For Profitable Growth

COMMENTS FROM THE FOUNDER AND CEO 9

Global Gaming Market Trends

MARKET OVERVIEW 11

Proven Core Business Model

BUSINESS OVERVIEW 14

Strategic Priorities

GOALS AND GROWTH STRATEGY 16

Diversified Games Portfolio

GAMES PORTFOLIO AND PIPELINE 18

Listed on Nasdaq First North Stockholm

THE SHARE AND OWNERS 20

Corporate Governance

BOARD OF DIRECTORS, SENIOR EXECUTIVES AND AUDITOR

FINANCIAL SUMMARY

21

23

CONTENTSUMMARY ANNUAL REPORT 2016


ABOUT US

OWNED GAMES

79 FranchisesApprox. 200 Games

THQ Nordic acquires, develops, publish and distribute games based on owned franchises

FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games

THQ Nordic publishes and distributes games based on franchises owned by a third party

COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

DIGITAL DISTRIBUTION WORLDWIDE PHYSICAL DISTRIBUTION WORLDWIDE

49% of sales (2016) 51% of sales (2016)

Source: Company’s internal accounting and reporting system.

THQ NORDIC IN BRIEF

THQ Nordic acquires, develops and publishes PC and console games for the global games market. The core business model consists of acquiring established but currently underperforming franchises and successively refining them.

The Company has a global presence, with its Group head office in Karlstad, Sweden and its operational office in Vienna, Austria. As of 31 December 2016 the Company had four internal game development studios – two in Sweden, one in Germany and one in the US – and contracts with 19 external game studios in a number of different countries. As of the same date, the Company engaged more than 375 people, of which around 35 people within the publishing business, around 70 people within internal game development and more than 270 contracted external game developers.

THQ Nordic’s game portfolio consists of both owned franchises (IPs) and published titles. The Company focuses on owning its own franchises and developing and publishing these. As of 31 December 2016 it had 79 owned franchises in the portfolio. The

Company also publishes game titles for various strategic partners and at 31 December 2016, it had more than 60 published titles in its portfolio. The Company’s marketing strategy focuses on relationship building with leading digital distribution channels in order to obtain advantageous positioning and placement, marketing via social media such as Facebook, YouTube and Twitch. The strategy also focus on close interaction with and understanding of the fans, for example by participating in gaming conventions and actively maintaining forums and communities.

The Company has global physical distribution capacity via retailers such as Walmart, Gamestop and Amazon, as well as extensive digital distribution capacity through established relationships and agreements with around 50 digital distribution channels such as Steam, PlayStation® Store and Microsoft® Xbox Live.

Financially, THQ Nordic has developed strongly in recent years. Revenue growth in 2016 was 42% compared with 2015. The EBIT margin was stable at 31% both 2015 and 2016.

COMPLEMENTARYFOCUS


OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

A STRONG PLATFORMFOR FURTHER GROWTH

OUR HISTORY

THE TRICK IS TO NEVER GIVE UPIt all began long ago with Lars and his comic books. While his friends were reading them, Lars chose to sell them. And he sold so well that at the age of 15, he was Sweden’s leading mail order retailer. Lars then capitalized on the experience from his comic book sales to take on the next product segment, second-hand video games, with his company Nordic Games. The company grew and was acquired year 2000 by a British games giant in the middle of the IT boom. However, it is apparent that the investment into digitalization was made ahead of time to the gaming industry market need – not unusual at the time.

Lars subsequently bought back the Nordic part and embarked on an amazing journey which today lives on in the company THQ Nordic AB. Along the way, Lars has capitalized on the entire learning curve – the good and the less positive experiences – because they’ve all lead to new ways of thinking. This natural optimism means that Lars is open for opportunties others leave behind. ”We get better over time only by challenging ourselves,” he claims, and adds: ”Sometimes the return is instant, but often it takes time. The trick is to never give up”.

1993

Mail order video games Gaming retail Gaming distribution Games publishing

1996 1999 2004 20102009

LEGACY OF GAMING, ENTREPRENEURSHIP AND DEAL-MAKING


Since 2011, with good growth and profitability, THQ Nordic has succeeded in establishing a strong platform for further growth with – as of 31 December 2016 – around 105 employees and more than 270 contracted developers, around 79 owned franchises and a well-invested pipeline. The foundation for this platform was laid mainly by

the significant IP acquisitions from JoWooD and THQ made in 2011 and 2013 respectively. Since 2011 the Company has made a total of 20 acquisitions and is continuing to make these types of acquisitions on an ongoing basis.

2011: ACQUISITION OF JOWOODThe story of THQ Nordic began in 2011 when the Company acquired all the franchises of the Austrian game publisher JoWooD, which was at that time a public listed company that had become insolvent. The most significant franchises acquired were SpellForce, The Guild and Painkiller.

In conjunction with the acquisition of these assets, the Company also succeeded in recruiting a number of key individuals from JoWooD, including Klemens Kreuzer, who is Managing Director of THQ Nordic’s operational office in Vienna, Austria, and Reinhard Pollice, who is Business and Product Development Director.

2013: ACQUISITION OF SIGNIFICANT FRANCHISES FROM THQA new and important chapter in the story of THQ Nordic was written in 2013 when a number of strong franchises were acquired from THQ Inc., which at that time had become insolvent. THQ was an American game publisher, listed on the Nasdaq stock exchange in New York, which at its height was one of the world’s ten biggest game publishers with market capitalisation of over USD 2 billion.1)

In total, more than 20 franchises were acquired along with the THQ brand. The most significant franchises acquired were Darksiders, MX vs. ATV, Red Faction and Titan Quest. During 2015 the franchises from THQ generated approximately 65% of the Company’s sales.

2016: REBRANDING TO THQ NORDICThe Company announced its rebranding from Nordic Games to THQ Nordic on 12 August 2016. The rebranding and “resurrection” of THQ received a great deal of media coverage all over the world. The rebranding to THQ Nordic is strengthening the Company’s culture and increase its recognition and credibility in the games industry, which may in turn improve the Company’s opportunities to attract and retain employees, fans and partners.

”Our defining moment came in 2013 with the THQ acquisition.”

1) Nasdaq, BATS Exchange, SEC and Xignite Inc. EDGAR online.

LEGACY OF GAMING, ENTREPRENEURSHIP AND DEAL-MAKING

Lars Wingefors, Founder and CEO


THQ Nordic had a successful IPO on Nasdaq First North Stockholm, attracting high demand from Swedish and international institutions, as well as retail investors. All key deliverables met on time or ahead of schedule - MSEK 240 raised on MSEK 1200 valuation. The total transaction were MSEK 440. The available offering was 19 times oversubscribed.

THQ Nordic’s Cornerstone line-up of six tier-1 Swedish institutions

HIGHLIGHTS OF THE YEAR2016 IN BRIEF

SUCCESFUL IPO AN IMPORTANT MILESTONE

and wealth managers and is one of the best in recent IPOs (First North and Main Market). They all represent knowledgeable and long-term investors that will contribute to THQ Nordic's value creation and fully support THQ Nordic in the future.

THQ Nordic's share price rose from the offering price of 20 SEK to 27 SEK after the first day of trading. On December 30 the share price was 33,2 SEK.

THQ NORDIC'S CORNERSTONES:

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

Two more development studios in Sweden, were founded. Mirage Game Studios located in Karlstad and Foxglove Studios, which is based in Stockholm. These studios are part of THQ Nordic’s focus on further enhancing development capacity. These operations, consist of experienced game developers with demonstrated track records of console and mobile game development.

TWO MORE DEVELOPMENT STUDIOS


One key strength of THQ Nordic is our well diversified portfolio of back catalogue products across multiple platforms and genres. The catalogue has continued to deliver growth and profitability during the year.

MAJOR ASSET CARE RELEASESThree of our own titles that performed throughout the year were:

Titan Quest – In September we launched an anniversary edition of Titan Quest for its 10 year anniversary. Despite all owners of a STEAM version of the game being offered a free upgrade, new business sales rose quickly, to No. 1 on the STEAM bestseller rankings in one day. This success proves the business potential of the Company’s asset care philosophy for existing games and gamer communities.

Darksiders Warmastered Edition – A remaster of the first game in the Darksiders series was launched in November for Playstation® 4, Microsoft® Xbox One and for PC. Darksiders is an action role-playing

DIVERSIFIED PORTFOLIO GENERATED PROFITABLE GROWTH

#1ON STEAM

TITANANNIVERSARY EDITION

QUEST HD

hack and slash video games series, inspired by the story of the Four Horsemen of the Apocalypse in the Book of Revelation.

A new version of “MX vs ATV Supercross Encore” for Microsoft® Xbox One was launched in July and in December MX vs ATV 2017 official Track Edition was annaounced. The new edition includes 16 official race tracks for season 2017 and will be available to download a few days before each race during spring 2017. MX vs ATV has a particularly strong position among dedicated motorcross fans in the US market. MX vs ATV was the owned franchise that generated the most revenue in 2016.

PUBLISHING TITLES STRENGHTEN OUR PORTFOLIO

During 2016 we started a new co-operation with Microsoft® regarding their lineup of PC products. During the year we released 3 titles in cooperation with them; Quantum Break, Ori and the Blind Forest and State of Decay. For these Microsoft products, THQ Nordic has exclusive physical distribution rights and non-exclusive rights for certain digital channels.

At the end of the summer, we published the indie-title This is the Police which quickly became a sales success on Steam. In December we aquired all rights for the title from the developers Weappy LLC. It's now a part of the companys growing IP portfolio.

Warhammer: End Times – Vermintide was launched by THQ Nordic for all physical platforms and certain digital PC platforms. The game is developed by the Swedish studio Fatshark.

We are happy to report that THQ Nordic throughout the year acquired multiple franchises as new exciting additions to our portfolio like: ”Delta Force”, ”Comanche”, ”Tachyon: The Fringe”, ”Armored Fist”, ”Wolfpack” and ”Joint Operations” from the American publisher NovaLogic Inc. We also acquired titles like ”Imperium Galactica 2”, ”SineMora” and ”SkyDrift” from Digital Reality as well as ”Sphinx

IP ACQUISITIONS

and the Cursed Mummy” from Mobile Gaming Studios, which was a publishing title of THQ Inc, in the early 2000s. We acquired titles including ”War Leaders: Clash of Nations” and ”Legends of War” from Enigma Software Productions S-L. and finally, ”This is the Police” from Weappy LLC, which was previously a publishing title.

Titan Quest HD Anniversary Edition


Investments in game development, SEK million Investment in game development as a proportion of EBITDA

0

50

100

150

200

201620152014201315

3563

160

31%

121%

60%

0

50

100

150

200

37%

We have delivered sales and profitability growth by executing on our core business model.

FINANCIAL GROWTH

REVENUE GROWTH

EBITDA MARGIN

EBIT MARGIN

42%

44%

31%

174M 54M 7 20ONGOING DEVELOPMENT AS OF 31 DEC 2016

FINISHED OWN DEV & IPS AS OF 31 DEC 2016 PROJECTS IN OUR PIPELINE

BY DECEMBER 31 WE HADSEK SEK

ANNOUNCED UNANNOUNCED

Investments have been made in both Asset Care projects and development of sequels.

INCREASING INVESTMENTS IN GAMES DEVELOPMENT

The financial data in the above chart relating to the 2013 fiscal year is taken from the comparative figures in the Company’s audited accounts for the 2014 financial year.The financial information for the period January–September 2016 and Q3 2016 is taken from the Company’s internal accounting and reporting system. See “Key performance indicators

– definitions of alternative performance mesasures” for the definition of EBITDA.

ONGOING AND FINISHED INVESTMENSTS

INVESTMENSTS IN GAME DEVELOPMENT

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

KEY PERFORMANCE INDICATORS

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

SEK m

2016 2015 2014

Net sales 301.9 212.9 178.0

EBITDA 132.4 105.1 95.2

EBIT 95.0 66.6 68.1

Profit after tax 71.9 51.2 52.2

Earnings per share, SEK 1.18 0.85 0.87

Cash flow from operating activities 99.2 109.9 60.4

Sales growth, % 42 20 74

EBITDA margin, % 44 49 53

EBIT margin, % 31 31 38

Net sales split:

– Owned titles, % 71 76 83

– Publishing titles, % 29 22 17

– Other, % 2


first year that we release developed sequels of our own IPs. These new releases are scheduled for the third and fourth quarters of 2017. In the same period, we will also have some major publishing titles ready for release. Announced releases during 2017, in addition to ELEX, include “SpellForce 3”, “The Guild 3”, “Battle Chasers: Night War” and “Aquanox—Deep Descent”. We are expecting to make further product announcements on both owned and publishing titles in the coming year. Some will relate to 2017 releases not publicly announced previously, but will also include some of THQ Nordic’s 2018 and 2019 releases.

KEEP THE EXCITEMENT GOINGAt GamesCom in August 2016, we changed the corporate name to THQ Nordic, a move well received by gamers and the gaming industry we operate in. We are a small player in a big market creating sweet opportunities for us. Therefore we are keen to attract the best talents in the industry. We now have around 35 great people working within the publishing operations and more than 340 experienced game developers in our four internal and 19 external game studios. All of

them smart, dedicated and passionate about their work and who help bring everything that is THQ Nordic to life.

We have also started looking in to the mobile platform and our niche developer Foxglove Studios AB will be soft launching two major multiplayer mobile titles, “Sniper vs Thieves” and “The Muscle Hustle” on iOS and Android. This is

a new market for us, but we have an excellent senior team here that I am proud of and we will also start to look at what mobile can do for our own existing IPs.

I could not be more excited about all opportunities for THQ Nordic. For me, in all of these efforts to continue to make progress, the trust of our shareholders is paramount. I believe in building trust by delivering results. I have been in this business for 23 years and I intend to stay for 23 more and I wish you guys will stay with me on this journey.

- Lars Wingefors, Founder and CEO

2016 was a great year and I’m proud of what THQ Nordic has achieved. The company grew organically through successful sales development of our game portfolio as well as through multiple acquisitions. A major milestone was passed when we went public in November. The IPO on Nasdaq First North Stockholm was a success, attracting high demand from Swedish and international institutions, as well as retail investors. I’m excited to welcome all new shareholders to THQ Nordic!

We continued to deliver growth and profitability during 2016. Net sales increased by 42% to SEK 302 million and EBIT increased by 43% to SEK 95 million resulting in an EBIT margin of 31%.

HOW WE CREATE VALUEWe have been executing according to our core business model, which explores our well-diversified and popular portfolio of franchises. Our millions of devoted and loyal fans, who passionately embrace new game versions as they reach the market, are of the utmost importance for us. We believe that when we pursue our mission of bringing great products to our fans, financial success will follow.

The main driver throughout the year has been continued successful promotions of our broad catalogue of products in digital channels such as Steam, PlayStation® Network and Microsoft® Xbox Live. During 2016, we also substantially increased the investments in acquisitions of IPs. And, we will continue to look for new opportunities to acquire established franchises to add to our current portfolio. Our aim is to refine the value of the franchises acquired as part of our core business model. We will be proactive rather than wait for the deals to come to us and we will stick to the strategy to pay the right price and prevent overspending. Our goal is to be the best home for the franschises that we want to acquire.

INCREASED INVESTMENTS FOR THE FUTUREDuring 2016 we also invested in a number of major development projects in the form of sequels on existing franchises, and in addition we have a completely new franchise, “ELEX”, under development jointly with Piranha Bytes.

We have a strong pipeline for 2017 and onwards. 2017 will be the

STRATEGY FOR PROFITABLE GROWTH

”Our financial targets and strategies are about profitable growth and return for shareholders.”

COMMENTS FROM THE FOUNDER & CEO


Quantum Break®


SIZE OF THE GLOBAL GAMES MARKET 2015–2019E (USD BILLION)

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

SIZE OF THE GLOBAL GAMES MARKET PER REGION 2016

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

Within the global games market there are differences between geographical regions. The Asia-Pacific region is the largest geographical market, with around 47% of the global games market and more than 1 billion gamers. Between 2015 and 2016 growth in this area is expected to amount to around 11%.1) North America and Europe, where THQ Nordic has its greatest market presence,

THE GLOBAL GAMES MARKET BY GEOGRAPHICAL AREA

Games revenues (USD Billions)

Growth (%, 2015–2016)

Revenues/Capita (USD)

Number of gamers (millions)

North AmericaWestern EuropeAsia-PacificEastern EuropeLatin AmericaMiddle East & Africa

251747343

4 %4 %11 %7 %20 %26 %

704312862

1981851,053153209301

Source: Newzoo

together make up around 43% of the global market and growth between 2015 and 2016 is expected to amount to around 4% in both geographical areas. In 2016 the total number of gamers in North America and Europe is estimated to amount to around 535 million, of which around 198 million are in North America and around 337 million in Europe.1)

THQ Nordic operates in the global games market as a developer and publisher of PC and console games and the majority of our end consumers have historically been located in North America and Europe. Some of the most important characteristics of the global games market that the Company considers relevant to THQ Nordic are summarized below. Video games represent one of the largest

GLOBAL GAMING MARKET TRENDS

MARKET OVERVIEW

47%

26%

17%

4%3% 3%

Asia-Pacific

North America

Western Europe

Latin America

Middle East & Africa

Eastern Europe

digital entertainment markets globally. In 2015 the total size of the games market was around USD 92 billion, which is expected to have grown to around USD 100 billion in 2016. Growth in the market is expected to be strong during the coming years with annual growth (CAGR) of around 7% on average between 2015 and 2019, when the size of the market is estimated at around USD 119 billion. 1)

0

20

40

60

80

100

120

140

160

180

2019E2018E2017E2016E2015

92100

113119

107

7%CAGR 2015–2019E

1) Newzoo

Source: Newzoo Source: Newzoo

OVERVIEW OF THE GLOBAL GAMES MARKET BY GEOGRAFICAL AREA 2016

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016


1) Web-based casual games and handheld console games account for the remaining 9%. In 2015 these two categories accounted for around 6% and 3% respectively of the total global games market.2) Newzoo3) “Console games makers defy predictions of doom”, Financial Times, 29 April 2016. Retrieved 23 Septem-ber 2016. https://www.ft.com/content/0d5f2e4a-0e0c-11e6-b41f-0beb7e589515

The Company is of the view that the games market can be split into two segments which each have similar dynamics: PC/console games and mobile games. These two segments together made up 91%1) of the total games market in 20152). At present THQ Nordic operates almost exclusively in the PC and console segment.

There are clear differences between the two segments when it comes to which games are suited for each segment, which fans the segments attract and the type of revenue models in the different segments.

To understand the different segments it is important to understand the principal consumers within each segment. Within the games industry it is usual to describe end consumers as belonging to one of two categories: “hardcore gamers” and “casual players”. Games that attract hardcore gamers are usually referred to as “hardcore games” and games that attract casual players are often called “casual games”. The two groups of consumers differ in terms of the types of games they play, how much and how often they play, and in what way and how much they are prepared to pay for a game. Casual and hardcore players can be said to represent two extremes of player type.

PC AND CONSOLE GAMESIn recent years, a clear trend towards digitalization of the distribution of PC and console games has been evident. In 2016 digital PC and console games are expected to make up around 47% of the total games market, while physical PC and console games are expected to make up around 16%. The trend towards digital distribution is largely driven by the emergence of purely digital platforms such as Steam and the production of digital services on traditional physical distribution channels such as PlayStation® and Microsoft® Xbox Live. Despite this trend, the physical market still makes up a significant part of the total games market, and is expected to amount to around USD 16 billion in 2016.2)

SEGMENTS IN THE GLOBAL GAMES MARKET

Other Mobile Console PC

0

20

40

60

80

100

120

140

2019E2015

26 26

31

53

5

28

30

8

CAGR 2015–2019E

+4%

+3%

+15%

–13%

7%

SIZE OF THE GLOBAL GAMES MARKET PER SEGMENT 2015–2019E (USD BILLIONS)

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

Source: Newzoo

MOBILE GAMESIn 2015, the mobile segment made up around 33% of the total games market, corresponding to around USD 30 billion. Between 2015 and 2019 the mobile segment is expected to grow by an average of 15% per year so that it amounts to around USD 53 billion in 2019, corresponding to 45% of the total games market.2)

In contrast to PC and console games, the mobile segment is largely made up of casual games. This type of game can usually be developed in a much shorter time and with considerably fewer resources than hardcore games within the PC and console segment. The entry barriers to this segment are thus lower than in the PC and console segment.

Mobile games are by nature less advanced and not as engaging as PC and console games. Partly as a result of this, life cycles for mobile games are often shorter and the number of mobile game developers that have succeeded in repeating their success is relatively limited3).

Warhammer: The End Times - Vermintide®


GAMERS

2.1 billion

gamers world wide

The global games market’s value chain can be split into four different stages before a finished game reaches the end consumer. THQ Nordic is primarily active as an owner of intellectual property (“IP owner”) and publisher, but also has four internal game development studios

THE GAMES MARKET’S VALUE CHAIN

DEVELOPER PUBLISHER DISTRIBUTOR

• Develop and produces games

• May own, in whole or in part, the development project, alternatively act as an external contractor for a fixed payment and royalty payments after the game is launched

• Financing, in whole or in part, of the development

• Controls and assures the quality of the devel-opment

• Marketing

• Sales

• Owns distribution channels and sometimes the platform

• Distribution can be digital, through for example steam, or through traditional physical channes such as Gamestop or Amazon

IP OWNER

Digital

Physical

that develop games for the publishing operations. The table below sets out the Company’s analysis of the different parts of the value chain and THQ Nordic's role in the global games market.

DEVELOPERSThe game developers are the creators of a game. It is often the game developers that come up with the game’s concept, develop the game’s characters and the story of the game, and finally it is the game developer who in purely technical terms writes the code and develops the game.

Game development studios can be either external and independent, or internal. External game development studios act independently and develop games either for a large publisher or publish the game themselves on a smaller scale. Internal game development studios are owned by a publisher and work more or less exclusively on the owning publisher’s game development projects.

PUBLISHERSPublishers are the next step in the games market’s value chain and it is within this part of the chain that THQ Nordic primarily operates, as well as owning the intellectual property.

The publisher’s role involves financing the development project, either in full or in part, and controlling the development process, the content and the quality of the game being developed. Once the game is ready for launch, it is the publisher that markets the game and ensures that the game is distributed via the right distributors and channels.

Publishers may own all or parts of a development project, or alternatively may act solely as a publisher for a third party that owns all the IP rights.

DISTRIBUTORSThe last stage in the value chain before the game reaches the end consumer is game distribution. The distributors own the channels via which the games are distributed and/or the platforms on which the games are played. Distributors may be physical and/or digital. Examples of physical distributors are classic retailers such as Walmart, Amazon and Gamestop. Digital distributors include Sony and Microsoft®, which also own the two biggest platforms for console games (PlayStation® and Microsoft® Xbox), and together account for 73% of the games consoles sold worldwide in 2015.1) The largest individual digital distribution channel for PC games is Steam which has a 75% share of the digital PC games market2). Steam, which is owned by Valve Corporation, had more than 125 million registered users in 2015.3)

IP OWNERS4) A further important part of the games market’s value chain is the owner of the intellectual rights on which the game is based (the IP owner). The IP owner controls which game projects they want to be implemented based on the franchise. The IP owner could be a game development studio that has developed a game title itself, a publisher that owns a portfolio of franchises or, for example, the copyright holder of a film or book title on which a game is to be based. THQ Nordic is an example of a publisher that owns a portfolio of intellectual property (franchises) and is therefore also an IP owner.

1) VGChartz., www.vgchartz.com., Retrieved 17 March 2016.

2) Edwards, Cliff (4 November 2013).”Valve Lines Up Console Partners in Challenge to Microsoft®, Sony”. Bloomberg. Retrieved 23 October 2016.3) Saed, Sherif (24 February 2015). ”Steam has over 125 million active users, 8.9M concurrent peak”. VG247. Retrieved 23 October 2016.4) IP stands for Intellectual Property. Within the games industry, IP is often used as a collective term for a particular franchise, game title or other copyrighted material.

OVERVIEW OF THE GAMES MARKET VALUE CHAIN

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016


BUSINESS MODEL OVERVIEW

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

PROVEN CORE BUSINESS MODEL

BUSINESS OVERVIEW

Attractive price for acquisition of the franchise

Value of franchise after THQ Nordic’s

initiative

Step 1:THQ Nordic buys

a franchise

Step 2:THQ Nordic refines the

franchise

Result:The value of

the franchise increases

SEQUELS

Release of sequel

First game ➞ sequel I➞ sequel II ➞ sequel III

+

DISTRIBUTION EXPANSION

Add digital channels

Add and reactivate physical channels

+

+

”ASSET CARE”

Porting to new platforms

Release of remasters, new versions, patches and upgrades

Swords, helmets etc.

Remaster IIVersion Remaster II

+

Release of DLCs +

+

➚➘

➞ ➞ ➞

CORE BUSINESS MODEL

THQ Nordic’s core business model consists of acquiring established franchises and then gradually refining the value of these franchises in the following three steps: 1) Distribution expansion, 2) Asset Care and 3) Sequels.


DISTRIBUTION EXPANSION The first step in refining the value of an acquired franchise is to expand its distribution. This step usually takes between a few months and up to years to complete. It consists of expanding the distribution of an acquired game so that it is available to the end consumer via multiple suitable physical and digital distribution channels.

For example, at the time of acquisition an acquired game may no longer be available on the market and, if it is considered appropriate at the time, the game may be made available via all or some of the Company’s approximately 50 digital channels, as well as via all suitable physical distribution partners. This makes the game once again available to more consumers and can contribute to sales increasing relatively quickly.

ASSET CAREThe second stage in refining the value of an acquired franchise is what the Company calls Asset Care. This consists of improving the game itself in various ways and comprises: porting to new platforms, launch of remastered versions (remasters) and the launch of download able content (DLC).

Porting to new platforms consists of making a game available on a new platform. For example, a game may only be compatible with the PlayStation® 3 platform, in which case the game is developed so that it can also be played on, for example, the later generation platforms PlayStation® 4 and Microsoft® Xbox One.

The launch of remasters involves graphically and/or technically polishing and upgrading an existing game. A graphical remaster might mean an HD (High Definition) version that looks better graphically, while the rest of the game’s content remains unchanged. A technical

remaster might consists of fixing bugs in the game or adding a new function to the game. In other respects the underlying code and the game remain unchanged.

The launch of DLC consists of various types of add-ons for the existing game. Such add-ons require the gamer to already own the basic game. DLC is downloaded digitally and usually consists of, for example, a new motorbike, a new weapon or a new track to use in the game. How suitable such peripheral sales are will depend on the type of game concerned.

DEVELOPMENT AND LAUNCH OF SEQUELS Developing and launching brand new game titles in an already established game series is the third and final stage in the process of increasing the value of an acquired franchise. Developing a sequel means using an established game concept but developing a brand new game, with new code, new action and new content. The launch of completely new games is usually associated with a certain degree of risk because it is difficult to assess beforehand how the new game will be received by the end consumer. THQ Nordic assesses that it has succeeded in reducing this risk because it prefers to develop new games based on already proven game concepts and franchises with existing fans.

At the end of 2014 THQ Nordic started developing a number of sequels to some of its acquired franchises. However, the Company has not yet launched any of these sequels as they are still in development in the Company’s pipeline. In the Company’s assessment, it is this stage that has the greatest potential and that can generate the most value in the form of increased sales.

COMPLEMENTARY TO THE CORE BUSINESS MODEL

As a complement to the core business model the Company may, very selectively, develop its own entirely new franchises and also publishes game titles for various strategic partners.

The Company's marketing strategy focuses on relationship building with leading digital distribution channels, marketing via social media, and close interaction with and understanding of the fans.

The company has global physical distribution capacity and

extensive digital distribution capacity. In addition, THQ Nordic may in the future make other types of

investments and acquisitions within the games industry where company management believes that the Company can add value by utilizing its existing expertise and organization. For example, this could involve adding new game developments studios, acquiring small publishers, and exploring IP licensing and mobile games.

Titan Quest HD Anniversary Edition


STRATEGIC PRIORITIESGOALS AND GROWTH STRATEGY

Since 2011, THQ Nordic has established a strong platform with strong growth and profitability from which the Company will accelerate its growth with profitability, as will be further supported by the successful IPO on Nasdaq First North, Stockholm, as well as the rebranding to THQ Nordic.

THQ Nordic's goal is to achieve significant growth in earnings per

PROFITABLE GROWTH AND RETURN FOR SHAREHOLDERS

share. This growth will primarily be driven by launch of the games that are currently in the Company's pipeline and by accelerating the core business model. This means acceleration of the Company's Asset Care for the existing game portfolio and launch of sequels, and continued acquisition of further intellectual property rights to integrate into the existing core business model.

GROWTH MODEL OVERVIEW

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

ACCELERATE ASSET CARE AND THE DEVELOPMENT AND LAUNCH OF SEQUELSTHQ Nordic will have a clear focus going forward on continuing to invest in further launches of sequels to the Company’s already well-established franchises. In addition, there will be a clear focus on continuing with and accelerating the Company’s existing core business model of developing further and adding value in the existing game portfolio.

FURTHER ACQUISITIONS OF FRANCHISESTHQ Nordic will continue its current core business model based on acquiring franchises. Examples of potential sellers include companies in financial difficulties that are unable to develop the franchise further themselves or a seller that does not intend to develop the franchise further because the seller has decided to focus on other franchises.

ADD GAME DEVELOPMENT STUDIOSThe Company sees growth opportunities in adding further internal and external game development studios to its existing business.

These additions may take place both organically through the Company starting its own game development studios, or alternatively through the acquisition of existing external game development studios.

ACQUIRE SMALL PUBLISHERSTHQ Nordic sees growth opportunities in acquiring parts or all of the franchise portfolios of small publishers and integrating these products into the Company’s existing business.

EXPLORE IP LICENSINGThe Company sees growth opportunities in exploring licensing of the Company’s franchises for the development of new games and to new geographical markets, for example distribution on the Asian market.

CORE BUSINESS MODEL

Now Future

Now

Accelerate Asset Care and sequel releases

Further IP acquisitions

Addingstudios

Acquire smaller

publishers

Explore IP licensing and

mobile

Focus on sequel releases on our well-established franchises

Examples of sellers include: distressed companies unable to develop the game further, or a seller unwilling to develop the game further since it is not a core title

Adding more internal and external studios, both organically and through acquisitions

Acquire smaller publishers

Explore opportuni-ties for licensing of games into the new geographies

Responsibly explore venturing into mobile


Our success is built on, and dependent on, our people's knowledge and long-standing experience in the industry. THQ Nordic's employees represent about 15 nationalities. Skills and experiences from different organizations and cultures contribute positively to the Company's development. Every employee makes a difference in the work to

create the best offering and the best customer experience. Therefore, it is essential that we manages to attract and retain important people and that our employees experience THQ Nordic as a stimulating employer.

EMPLOYEES´COMMITMENT IS KEY TO OUR SUCCESS

Ori and the Blind Forest®


OVERVIEW OF THQ NORDIC’S GAME PORTFOLIO

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

THQ Nordic’s game portfolio can be split into owned franchises and “published titles”. Owned franchises consist of game franchises that THQ Nordic itself owns all the rights to and thus itself controls how the franchise is to be developed in the future. Published titles are

DIVERSIFIED GAMES PORTFOLIO

GAMES PORTFOLIO AND PIPELINE

OWNED FRANCHISES PUBLISHED TITLES

79FRANCHISES

more than 200games

30 remasters

330 DLCs

more than 60games (PUBLISHED TITLES)

game titles that THQ Nordic does not own the intellectual property rights to, but fully or partly owns the publishing rights to and thus publishes the titles for various partners.

Explanation of franchise, game, remaster and DLC:A franchise is a label that is used for a series of games. Several different games can be released as one franchise. Each franchise has an overarching game concept but each game has its own storyline that fits into the overarching game concept of the franchise. A remaster is a graphic or technical upgrade of a previously released game where the storyline of the game remains unchanged. For every game and remaster, DLC (downloadable content) such as swords, helmets and new levels can then be developed and marketed.


Completely new game based on a bestselling comic book series

THQ Nordic’s first major development project of its own

Sequel to one of THQ Nordic’s biggest

franchises

Sequel to one ofTHQ Nordic’s biggest

franchises

Sequel to one of THQ Nordic’s biggest

franchises

Major development project based on an existing franchise

Plus another 20 ongoingdevelopment projects

+20

Major development project based on an existing franchise

€$59.99Owned, 70%

€$59.99Owned, 100%

€$29.99Published titles

€$59.99Owned, 100%

€$49.99Owned, 100%

€$49.99Owned, 100%

€$49.99Owned, 100%

THQ Nordic considers itself to have a strong and well- invested pipeline involving various kinds of development projects, such as sequels and remasters of owned franchises and new titles for publishing. In total, the Company had by Decemer 31, 27 projects in the pipeline, 7 of which have been announced while 20 were unannounced. The pipeline includes THQ Nordic’s three largest development projects to date, each with a development budget of SEK 65–125m.

THQ Nordic sees it as one of the most important factors for success that the projects are developed by well-reputed studios. As a starting point, the Company always tries to work with all or part of the original development team and creators as developers of sequels.

The Company’s most important pipeline projects at present are shown in the figure below.

STRONG AND WELL INVESTED PIPELINE

OVERVIEW OF THQ NORDIC’S PIPELINE

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016


0

300

600

900

1,200

0

10

20

30

40

Dec 302016

Dec 1Nov 232016

Share turnover, thousandSEK

LISTED ON NASDAQ FIRST NORTH STOCKHOLM

THE SHARE AND OWNERS

INFORMATION ABOUT FIRST NORTH Nasdaq First North (”First North”) is an alternative marketplace operated by the constituent exchanges of NASDAQ Stockholm. It does not have the same legal status as a regulated marketplace. Companies quoted on First North are subject to First North’s rules, rather than the legal requirements set for trading on a regulated marketplace. An investment in a company trading on First North implies higher risk than one in a listed company. Companies must

OWNERS AS OF DECEMBER 31 2016

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

SHARE PRICE DEVELOPMENT AND SHARE TURNOVER

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016

NAMN CLASS A SHARES CLASS B SHARES SHARE OF CAPITAL, % SHARE OF VOTES, %

Lars Wingefors AB 1) 6 501 467 29 523 732 50,01 61,79

Xagonus AB 2) 1 407 724 6 392 600 10,83 13,38

Swedbank Robur 3) 0 3 985 928 5,53 2,61

Handelsbanken fonder 4) 0 2 990 062 4,15 1,95

CMB Holding AB 5) 483 378 2 195 063 3,72 4,59

Didner & Gerge småbolag 0 2 250 000 3,12 1,47

RAM ONE AB 0 1 765 000 2,45 1,16

Lumarisimo AB 6) 289 966 1 316 760 2,23 2,76

Försäkrings AB, Avanza pension 0 1 414 253 1,96 0,92

Novobis AB 0 1 250 000 1,74 0,82

Övriga 317 465 9 949 102 14,25 8,56

Total number of shares (A/B) 9 000 000 63 032 500

Total number of votes 153 032 500

1) Lars Wingefors AB is controlled to 100% by CEO Lars Wingefors.2) Xagonus AB is controlled to 100% by CFO Erik Stenberg.3) Swedbank Robur consists of two funds; Småbolagsfond Sverige and Småbolags-fond Norden.

4) Handelsbanken Fonder consists of three funds; Sverige, Svenska Småbolag and Nordiska Småbolag5) CMB Holding AB is controlled to 100% by Mikael Brodén6) Lumarisimo AB is controlled by Pelle Lundborg with family

apply to the exchange and gain approval before trading on First North can commence. A Certified Adviser guides the company through the listing process and also ensures that the company continuously satisfies First North’s standards.

FNCA Sweden AB is THQ Nordic’s certified adviser.


CORPORATE GOVERNANCE

BOARD OF DIRECTORS, SENIOR EXECUTIVES AND AUDITOR

THQ Nordic’s board consists of five ordinary elected board members, including the Chairman, which all have been elected until the end of the annual meeting in 2017. Board members, their position, when they were elected for the first time and if they are regarded as independent in relation to the company, senior executives and in relation to the major shareholders are presented in the table below.

INDEPENDENT IN RELATION TO:

NAME POSITION MEMBER SINCE

THE COMPANY AND THE COMPANY MANAGEMENT

MAJOR SHARE- HOLDERS

Kicki Wallje Lund Board member (Chairman) 2016 Yes Yes

Lars Wingefors Member of the board 2002 No No

Erik Stenberg Member of the board 2002 No No

Maria Segolsson Member of the board 2016 Yes Yes

Pia Rosin Member of the board 2016 Yes Yes

KICKI WALLJE LUND Born: 1953Chairman of the board

Education/background: Kicki Wallje Lund has experience in business development from a variety of international companies, especially in the IT sector. She has held leading positions in companies like NCR, Digital Equipment, AT & T, Philips, ICL and Unisys. Kicki Wallje Lund is currently CEO of Wellnet AB.

Current assignments: Board member and CEO of Wellnet AB. Board member of C-Rad AB (publ), Betsson AB (publ) and Linkura AB.

Holdings in the Company: On the publication date of the Prospectus, Kicki Wallje Lund holds 12,500 class B shares in THQ Nordic AB (publ).

LARS WINGEFORS Born: 1977Founder of THQ Nordic. Board member and CEO

Education/background: Lars Wingefors is founder and CEO of THQ Nordic-group. Lars Wingefors started his first company at the age of thirteen. He has a broad and long experience in entrepreneurship and business management.

Current assignments: He is a board member and CEO of Lars Wingefors AB. Lars Wingefors is also a board member of The Crate Inventors AB, Inission AB (publ), Handelskammaren Värmland Service

AB, Calmark Sweden AB, Hemänglarna AB, Bra mat Hemma BMH AB.Holdings in the Company: Lars Wingefors holds, via companies,

6,501,467 class A shares and 29,523,732 class B shares in THQ Nordic AB (publ).

ERIK STENBERG Born: 1963Co-founder, board member and CFOEducation/background: Erik Stenberg has a Degree of Master of Science in Business and Economics from Högskolan Karlstad (today Karlstad University) and a long and solid experience in business management.

Current assignments: Erik Stenberg is a board member of Xagonus Aktiebolag. Holdings in the Company: Erik Stenberg holds, via companies, 1,407,724 class A shares and 6,392,600 class B shares in THQ Nordic AB (publ).

MARIA “MIA” SEGOLSSONBorn: 1968Board member

Education/background: Maria Segolsson has a three-year financial education and an education in advertising and marketing from Bergh’s School of Communication. Maria Segolsson has more than 15 years of experience from the international music industry both as a

BOARD OF DIRECTORS

OVERVIEW BOARD OF DIRECTORS

OWNED GAMES



FOCUS

71%Net

revenues 2016

82%Gross profit

2016

PUBLISHING DEALS

Approx. 60 Games


COMPLEMENTARY

29%Net

revenues 2016

18%Gross profit

2016


marketing manager and as General Manager.Current assignments: Maria Segolsson is General Manager at Polar

Music International AB and a board member of Ma & Ma Consulting AB and Stiftelsen ABBA The Museum.

Holdings in the Company: As of the date of the Prospectus, Maria Segolsson 15,000 holds class B shares in THQ Nordic AB (publ).

PIA ROSINBorn: 1976Board member

Education/background: Pia Rosin has a master’s degree in economics from the University of Lund. She has many years of experience in financial communication of listed companies, including

SENIOR EXECUTIVES

the Kinnevik Group, the defence company Saab and an IT company listed on Nasdaq First North. Pia Rosin is currently vice President of Corporate Communications at Betsson AB.

Current assignments: Pia Rosin is board member of Rosinius Konsult AB.

Holdings in the Company: As of the date of the Prospectus, Pia Rosin 5,000 holds class B shares in THQ Nordic AB (publ).

LARS WINGEFORS Born: 1977Founder of THQ Nordic. Board member and CEO of THQ Nordic.See ”Board of Directors” above.

ERIK STENBERGBorn: 1963Board member and Financial Director (CFO) See ”Board of Directors” above.

REINHARD POLLICE Born: 1988Co-founder and Director of business and production development.Education/background: Reinhard Pollice has a Bachelor degree in Project Management and IT from the University of Applied Sciences BFI in Vienna.

KLEMENS KREUZER Born: 1976Co-founder and Managing director of THQ Nordic GmbH Education/background: Klemens Kreuzer has a Masters degree in Business Administration from the Vienna University of Economics and Business.

AUDITORThe auditor of THQ Nordic is Ulrich Adolfsson (born in 1965), as auditor-in-charge since the 2006 annual general meeting. Ulrich Adolfsson is an authorized auditor at Ernst & Young AB and member of FAR.


Financial metrics defined or specified pursuant to Swedish Accounting Standards Board standards (BFNAR)

Full year 2016

Full year 2015

Net sales, SEK 000 301,878 212,851

Operating profit, SEK 000 95,015 66,566

Profit before tax, SEK 000 92,896 65,473

Profit after tax, SEK 000 71,947 51,238

Number of shares at end of period, thousands * 72,032 60,000

Average number of outstanding shares, thousands * 61,121 60,000

Average number of full-time employees in the period 68 38

Number of employees at the end of the period 85 38

* Original number of shares was 1,000, a bonus issue of 499,000 shares was executed in 2016 and in end of 2016 a split were performed there 1 old share gave 120 new shares. All periods are restated as if these transactions had been executed as of 1 January 2015. In November there was a new share issue of 12,032,500 shares.

Alternative key performance indicators not defined or specified pursuant to BFNAR

Full year 2016

Full year 2015

Net sales growth, % 42 20

EBITDA, SEK 000 132,369 105,060

EBITDA margin, % 44 49

EBIT, SEK 000 95,015 66,566

EBIT margin, % 31 31

Amortization of IP rights, SEK 000 –13,039 –12,324

Equity/assets ratio, % 74 48

Earnings per share, SEK 1.18 0.85

Dividend per share, SEK - 0.67

Derivation of the alternative KPIs and EBITDA

EBIT, SEK 000 95,015 66,566Depreciation and amortization, SEK 000 37,354 38,494

EBITDA, SEK 000 132,369 105,060

KEY PERFORMANCE INDICATORS, GROUP

FINANCIAL SUMMARY


DEFINITIONS OF ALTERNATIVE KPIS

DEFINITIONS OF KPIs, GROUP

Earnings per share Profit after tax divided by the average number of shares in the periodEBIT margin EBIT as a percentage of net sales EBITDA Earnings before interest taxes, depreciation and amortization EBITDA margin EBITDA as a percentage of net sales Equity/assets ratio Equity as a percentage of total capital Net sales growth Net sales for the current period divided by net sales for the corresponding period of the previous year

THQ Nordic’s definitions of a number of alternative KPIs used in this Interim Report are stated below. Net sales growth is reported by the Company because it regards this KPI as contributing to investor understanding of the Company’s historical progress. EBITDA and EBITDA margin are reported because these are metrics commonly used by certain investors, financial analysts and other stakeholders to measure the Company’s financial results. The equity/assets ratio is stated because the Company regards this as a metric commonly used by certain inves-tors, financial analysts and other stakeholders to measure the Company’s financial position. Dividend per share is stated in the Interim Report to illustrate the dividend yield the Company’s previous shareholders received.


SEK 000Full year

2016Full year 2015 **

Net sales 301,878 212,851

Work performed by the Company for its own use and capitalized 36,199 -

Other operating income 8,747 5,038

Total operating income 346,824 217,889

Operating expenses Goods for resale –118,828 –70,096

Other external expenses –42,825 –28,334

Personnel expenses –52,315 –14,399

Depreciation, amortization and impairment of property, plant and equipment and intangible assets –37,354 –38,494

Other operating expenses –487 -

Total operating expenses –251,809 –151,323

Operating profit 95,015 66,566

Profit from financial items

Other interest income, etc. 1 32

Other interest expenses, etc. –2,120 –625

Total financial items –2,119 –593

Profit after financial items 92,896 65,973

Group contributions - –500

Profit before tax 92,896 65,473Tax –20,949 –14,235

Net profit for the period 71,947 51,238

Attributable to:

Equity holders of the parent 71,947 51,238

Non-controlling interests - -

Earnings per share, SEK 1.18 0.85

Average number of outstanding shares, thousands * 61,121 60,000

CONSOLIDATED INCOME STATEMENT

* Original number of shares was 1,000, a bonus issue of 499,000 shares was executed in 2016 and in end of 2016 a split were performed there 1 old share gave 120 new shares. All periods are restated as if these transactions had been executed as of 1 January 2015. In November there was a new share issue of 12,032,500 shares.

** Work performed by the Company for its own use and capitalized” has been recognized as revenue effective 1 January 2016. Comparative figures for the interim periods of 2015 have been restated in accordance with this new accounting policy. If the full year 2015 had been reported in the same manner, Work performed by the Company for its own use and capitalized would have amounted to SEK 8,374,000, Other external expenses would have increased by SEK 607,000 and Personnel expenses would have increased by SEK 7,767,000.


SEK 00031 Dec

201631 Dec

2015

Intangible assets 228,699 104,498

Property, plant and equipment 3,592 1,794

Financial assets 194 -

Inventories 18,430 12,835

Current receivables 46,576 30,683

Cash and bank balance 167,445 25,606

Total assets 464,936 175,416

Equity 600 100

Other capital reserves 226 945 -

Recognized profit including results for the period 117,543 84 117

Provisions 11,460 7,548

Non-current liabilities - 1,400

Current liabilities 108 388 82,251

Total liabilities and equity 464,936 175,416

Interest-bearing assets amount to 167,445 25,606

Interest-bearing liabilities amount to 28,752 10,000

Pledged assets 100,000 60,000

Contingent liabilities None None

CONDENSED CONSOLIDATED BALANCE SHEET

SEK 000 Share capitalOther paid-up

capitalOther equity

including net profitConsolidated

equity

Amounts as of 1 Jan. 2016 100 84,117 84,217Bonus issue 400 –400 -

Dividend –40,000 –40,000

Translation difference 1,879 1,879

Rights issue * 100 226,945 227,045

Net profit 71,947 71,947

Amounts as of 31 Dec. 2016 600 226,945 117,543 345,088

CONSOLIDATED STATEMENT OF EQUITY

* Rights issue consist of; right issue SEK 240,650 m, cost for raising new equity SEK –17,442 m. and tax effect on the cost SEK 3,837 m.


SEK 000Full year

2016Full year

2015

Cash flow from operating activities before changes in working capital 107,896 93,624Change in working capital –8,660 16,307

Cash flow from operating activities 99,236 109,931

Cash flow from investing activities –159,732 –68,531

Cash flow from financing activities 201,960 –33,600

Cash flow for the period 141,464 7,800Cash and cash equivalents at beginning of period 25,606 17,638

Translation difference in cash and cash equivalents 376 168

Cash and cash equivalents at end of period 167,446 25,606

CONDENSED CONSOLIDATED CASH FLOW STATEMENT


SEK 000Full year

2016Full year

2015

Net sales 121,036 96,358

Other operating income 8,031 -

Total operating income 129,067 96,358

Operating expensesGoods for resale –523 -

Other external expenses –3,792 –2,558

Personnel expenses –1,348 -

Depreciation, amortization and impairment of property, plant and equipment and intangible assets –33,812 –38,099

Other operating expenses –45 –1,107

Total operating expenses –39,520 –41,764

Operating profit 89,547 54,594

Result from participations in group companies –905 6,066

Interest income, etc. 413 4

Interest expenses, etc. –2,092 –597

Total financial income/expenses –2,584 5,473

Profit after financial items 86,963 60,067

Appropriations –18,792 –13,890

Profit before tax 68,171 46,177Tax –15,272 –8,845

Net profit for the period 52,899 37,332

PARENT COMPANY INCOME STATEMENT


SEK 00031 Dec

201631 Dec

2015

Intangible assets 51,447 56,106

Property, plant and equipment 71 124

Financial assets 712 369

Current receivables 177,734 56,253

Cash and bank balances 147,984 19,105

Total assets 377,948 131,957

Equity 286,238 46,294

Untaxed reserves 51,960 34,179

Non-current liabilities - -

Current liabilities 39,750 51,484

Total liabilities and equity 377,948 131,957

CONDENSED PARENT COMPANY BALANCE SHEET

THQ NORDIC AB (PUBL)ÄLVGATAN 1

SE-652 25 KARLSTADSWEDEN

WWW.THQNORDIC.COMWWW.THQNORDIC-INVESTORS.COM

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