ATARI October 2015 7- 8 th , 2015 Summary 1. Atari today 2. Market - - PowerPoint PPT Presentation

ATARI October 2015 7- 8th, 2015

Summary

• 1. Atari today
• 2. Market / Products /

Opportunities

• 3. Organization
• 4. Finances

2 October 2015

Atari Today

• 1. Atari Today

3 October 2015

Atari at a Glance

4 October 2015

Atari is a Globally Recognized, Iconic Brand With an Unparalleled, Rich Library Of Popular Games

Iconic Brands

5 October 2015

$92

Million

$265

Million

$391

Million

$85

Million

$154

Million

$456

Million

$525

Million

More than $2 Billion of Historical Revenue

2013-2015: Turnaround

6 October 2015

A London-based hedge fund (BlueBay) started building a position in the Atari group. They ultimately ended up owning 30% of the Company, while also being the largest lender. Atari ran into significant financial difficulties. Early 2013, the US subsidiaries filed for bankruptcy protection (Chapter 11).

• A few days later,

BlueBay sold their stake to Frédéric Chesnais and Alden.

• Chesnais is the former Deputy-

COO and CFO of the Atari Group, and was the CEO of Atari

• Interactive. He left Atari in 2007.
• Alden Capital is a New York-

based investment fund.

• Mr. Chesnais and

Alden managed the exit of Chapter 11.

Relaunch of game production, and completion of the financial restructuring of the Atari Group.

2014 2013 2006 2012

Atari Today

7 October 2015

Atari is a company implementing a turnaround phase; the company owns iconic brands in the videogame industry and can capitalize on new

• pportunities outside of the gaming market.

Simplified organization (external studios, digital distribution…) Opportunities outside

• f the videogame

industry: casinos, drones, tv, licensing… Turnaround, improved financial structure Cap table simplified, with only ordinary shares

A Simple and Efficient Structure

The production team is based in New York City, with 3rd-party studios in the US and in Europe.

8 October 2015

Atari no longer manufactures and distributes boxes (partnership with industrial partners). Products are sold digitally,

• n

a worldwide basis. Atari SA

French-listed entity 100%-owned subsidiaries

Atari US Atari Europe

Turnaround Achieved

9 October 2015

From 1,2 M€ revenue to 7,6 M€ From a net loss

• f -35,8 M€ to a

net profit of 1,2 M€ Equity from

• 34,9 M€ to
• 13,1 M€

From a net debt of -31,4 M€ to -11,0 M€

March 2013 -> March 2015 :

(€ million) 2012-2013 2013-2014 2014-2015 Revenue 1,2 3,3 7,6 Current operating income 0,6 0,9 0,2 Operating income (2,0) 1,3 1,5 Net income (loss) (35,8) (2,5) 1,2 Shareholders' equity (34,9) (31,3) (13,1) Net financial debt (31,4) (24,8) (11,0)

Cap Table Simplified, Only Ordinary Shares

Stock options : 5 481 472

(€0,20 per share)

Double voting rights: 249 607 (no impact) 10 October 2015

Dilution Océane 2020 : 3 384 732

(€0,35 per océane)

September 30th, 2015 shares % ownership Ker Ventures, LLC 41 021 916 22,4% F Chesnais CEO & Director Alden Capital 11 599 000 6,3% Alex Zyngier 12 013 615 6,6% Director Public 98 729 470 53,9% Treasury shares 19 821 573 10,8% TOTAL 183 185 574 100%

Atari 2 - Market / Products/ Opportunities

11 October 2015

12 October 2015

Evolution of the Videogame Market

Atari has evolved as the gaming market has shifted to digital and mobile platforms

PC & Console Gaming

Mostly Hardcore Gamers Hardware Equipment Packaged Goods MMO

Casual Gaming

Impulse by Wii Launch Handheld consoles: PSP/DS Beginning of mobile gaming (Java & Brew)

Retail / Digital Transaction Beginning of digitalization

• f transactions (mobile)

Social Gaming

Socialization of casual gaming Social Networks explosion Continued casual game growth

Beginning of Free-to-Play Freemium Item selling Ad supported In-game Advertising

Mobile Gaming / Online Gaming

Continued social evolution Mobile gaming expansion: iOS, Android Casual Mid-core and Core players Digital Transaction & Community Management Rise of: Free-to-play / Freemium / Paymium Item selling (add-on) Subscription

Game Strategy

13 October 2015

Adaptation to the digital model Relaunch of the classical franchises :

Roller Coaster Tycoon ; Asteroids ; Simulation games; Etc.

Selectives licences (hardware, Casino,…).

Atari Greatest Hits: Vol. 1 Atari Greatest Hits: Vol. 2 Backgammon Barroom Baseball Black Belt Breakout Canyon Bomber Centipede Circus Atari Combat Countermeasure Crystal Castles Dark Chambers Fatal Run Food Fight Gravitar Haunted House Lunar Battle Lunar Lander Major Havoc

Intellectual Property Portfolio

3D Asteroids 3D Tic-Tac-Toe A Game of Concentration Act of War: Direct Action Act of War: High Treason Adventure Adventure II Agent X Airborne Ranger Air-Sea Battle Akka Arrh Alien Brigade Alone In the Dark Alpha 1 Anti-Aircraft Aquaventure Asteroids Atari Classics: Evolved Atari Greatest Hits Meebzork Millipede Mind Maze Minimum Missile Command Night Driver Ninja Golf Pong RollerCoaster Tycoon Franchise Solaris Super Breakout Swordquest: Earthworld Swordquest: Fireworld Swordquest: Waterworld Test Drive Unlimited Series Warlords Yar's Return Yar's Revenge

14 October 2015

And More…

15 October 2015

3D Asteroids 3D Tic-Tac-Toe A Game of Concentration Act of War: Direct Action Act of War: High Treason Adventure Adventure II Agent X * Airborne Ranger Air-Sea Battle Akka Arrh * Alien Brigade Alone In the Dark Alpha 1 * Anti-Aircraft * Aquaventure Asteroids Asteroids Deluxe * Asteroids On-line - Atari GO version Asteroids: Gunner Asteroids: Gunner+ Atari 80 Classic Games in One! Atari Anniversary Advance Atari Anniversary Edition Atari Anthology Atari Arcade Hits: Volume 1 Atari Arcade Hits: Volume 2 Atari Baseball * Atari Basketball * Atari Casino Atari Classics: Evolved Atari Football * Atari Greatest Hits Atari Greatest Hits: Volume 1 Atari Greatest Hits: Volume 2 Atari Mini Golf * Atari Outlaw Atari Revival Atari Soccer * Atari Video Cube Aquaventure Avalanche * Backgammon Barroom Baseball Basic Programming Basketball Basketbrawl Bionic Breakthrough Black Belt Black Jack Black Widow * Boogie Demo Booty, Bowling Boxing * Brain Games Breakout Breakout * Breakout Boost Canyon Bomber Casino Castles and Catapults Caverns of Mars Centipede Centipede: Infestation Centipede: Origins Championship Soccer Circus Atari Cloak & Dagger * Cloud 9 * Codebreaker Combat Cops 'N Robbers * Countermeasure Crash 'N Score * Crystal Castles Dark Chambers Demons to Diamonds Desert Falcon Destroyer * Doctor Pong "aka Puppy Pong" Dodge ’Em Dominos * Double Dunk Drag Race * Fast Freddie * Fatal Run Final Legacy Fire Truck * Firefox * Flag Capture Flyball * Food Fight (Charley Chuck's) Football Frisky Tom Frog Pond Fun With Numbers Gerry the Germ Goes Body Poppin Goal 4 * Golf Gotcha * Gran Trak 10 * Gran Trak 20 * Gravitar Hangman Haunted House HiWay * Holey Moley Home Run Human Cannonball Hunt & Score I, Robot Indy 4 * Indy 500 Jet Fighter * LeMans * Liberator * Lunar Battle * Lunar Lander * Major Havoc * Maze Craze Meebzork Meltdown Micro-gammon Millipede Mind Maze Miniature Golf Minimum Missile Command Missile Command 2 * Missile Command 3D Monstercise Monte Carlo * Moto Psycho MotoRodeo Night Driver Ninja Golf Off the Wall Orbit * Outlaw Outlaw * Peek-A-Boo Pin Pong * Planet Smashers Pong * Pong Doubles * Pong Tournament Pong World Pong: The Next Level Pool Shark * Pursuit * Quadra Pong * Quadrun Quantum * Quiz Show * Qwak! * Radar Lock Realsports Baseball Realsports Basketball Realsports Boxing Realsports Football Realsports Soccer Realsports Tennis Realsports Volleyball Rebound * Red Baron * Retro Atari Classics Return to Haunted House Roadrunner RollerCoaster Tycoon Runaway * Saboteur Save Mary* Space War Space War 2000 Spike * Spitfire Sprint * Sprint 4 * Sprint 8 * Sprintmaster Star Raiders Star Raiders II Star Ship Steeplechase Steeplechase * Stellar Track Stock Car * Street Racer Stunt Cycle * Submarine Commander Subs * Super Asteroids & Missile Command Super Baseball Super Breakout Super Bunny Breakout Super Football Superbug * Surround Swordquest: Earthworld Swordquest: Fireworld Swordquest: Waterworld Tank * Tank II * Tank III * Telepathy Tempest Tempest 2000 Tempest: Menace of the Arcade Dwellers - Online version Test Drive Series Tournament Table * Triple Hunt * Tubes * Typo Attack Ultra Tank * Video Checkers Video Chess Video Olympics Video Pinball * Warlords Wizard Wolf Pack * Xari Arena Yar's Return Yar's Revenge Zulu

RollerCoaster Tycoon Franchise

RollerCoaster Tycoon

The franchise popularity extends to Europe and has a strong presence in the UK and Germany, with more than 4.6 million units sold in Europe

17 October 2015

Popular management simulation franchise that allows players to construct the theme park of their wildest dreams The franchise has generated

• ver $220

million in North America sales Sales with over 14.4 million units sold worldwide License extends through 2019 RollerCoaster Tycoon 4 Mobile: 15 millions download since April 2014

Multi-revenue streams

Note: (1)includes total sales, add-ons, international sales and digital RCT licensed until 2019 Source: Vgchartz, Internet , proprietary data

Excellent feedback from press

• GameSpot: 8.6/10
• IGN: 8.5/10
• Jeuxvideo.com: 15/20
• Global: 87%

Aggregate total sales: 14.4m Units 1

RollerCoaster Tycoon

18 October 2015

Next sequel: “Rollercoaster Tycoon World” - release scheduled for 2015

1999 2002 2004 2014

Launch of mobile version

PC

Launched on PC Edited by ATARI

4.0m sold units

PC Edited by Infogrames

3.7m sold units

PC Edited by Hasbro Interactive

6.7m sold units

Opportunities

• Casino online – real and virtual

money gambling, casinos in virtual currency now available in 2015

• Transmédia opportunity ( Movies,

TV, etc…)

19 October 2015

Development opportunities outside

• f the videogames market

Other licensing opportunities: hardware, drones, etc.

The Atari Spirit

Time Magazine’s, “50 Best Websites 2012” “Pong! Atari Marks 40 Years of Gaming”

20 October 2015

Atari

• 3. Organization

21 October 2015

Strong Management Team

Fred Chesnais - Chief Executive Officer, Member of the Board of Directors Todd Shallbetter – Chief Operating Officer

• Key executive at Atari, managing multiple business lines including

digital distribution, rev share/royalty management; solid knowledge of Atari’s global business

• Expertise in business development
• Largest shareholder of Atari, Chairman of the Board and CEO.
• Deputy-COO and CFO of the Atari Group 2001-2004, CEO of Atari

Interactive until 2007

• Brings recent experience with online MMOs;

Philippe Mularski – Chief Financial Officer

• Certified accountant and Auditor
• Joined Atari Group in 2014

22 October 2015

Organization

Atari is a content production company aiming at maximizing the value of its brands and IP portfolio in the interactive entertainment industry.

To maximize profits:

• Fixed costs are at the lowest

levels and the production management is externalized

• Co-investment are favored

with studios or third party

• Digital distribution is fully

implemented

Atari capitalizes on:

• A huge IP’s portfolio
• An efficient and
• perational production
• A good marketing digital

management

• An experienced

Management team

23 October 2015

Edition Distribution Rights Prod / Dev

Traditional Value Chain

• Integration of the key functions;

limited use of third party studio

• Great dependence on the

physical distribution

• Limited level of ancillary

revenue (digital, licenses, merchandising,…)

24 October 2015

€ Team Executive Production External Studios Digital Distribution Others (TV Casino) Licensing Box distribution IPs

New Value Chain

• Intensification of

externalization

• Diversification
• f the

distribution channel and sources of income

• Digital

Distribution

25 October 2015

Strong Digital Gaming Platform

Strong positioning

PC Download Partners Mobile/Online/ Casino Partners Streaming Partners Console Online Partners Promotional Partners 26 October 2015

Atari 4 – Finances

27 October 2015

Full Year Consolidated Statements as of March 31st, 2015

An increase of turnover (x)2 compared to the previous year Profitable Company Net revenue : 7,6 M€  An increase of turnover (x2) compared to the previous year  More than 15 million downloads of RollerCoaster Tycoon for mobiles. Current operating income : + 0,2 M€  R&D expenses: - 5,2 M€ including 2,8 M€ fixed;  Marketing costs: - 0,9 M€  Control of overhead costs Operating income : +1,5 M€  Restructuring costs: +0,4 M€  Other non- recurring revenue: +1,0 M€ Net income : + 1,2 M€  Cost of debt : - 1,4 M€  Other financial income : +1,1 M€

(€ Million) 2014/2015 2013/2014 Net revenue 7,6 3,3 Gross Margin 6,3 3,2 % of the net revenue 83,8% 96,5% Current operating income 0,2 0,9 % of the net revenue 2,3% 27,7% Operating income 1,5 1,3 Profit (loss) from continuing operations 1,2

• 2,5

Net income (loss) 1,2

• 2,5

October 2015 28

• RollerCoaster Tycoon World
• Alone in the Dark : Illumination
• Asteroïds
• Pridefest

Full Year Consolidated Statements as of March 31st, 2015

Development cost are capitalized for 2,8 M€

29 October 2015

ASSETS (€ million) March 31 2015 March 31 2014 Intangible assets 2,8

• Property, plant and equipment
• Non-current financial assets

0,2 0,2 Non-current assets 3,0 0,2 Inventories

• Trade receivables

0,7 0,4 Current tax assets 0,6 0,2 Other current assets 0,9 1,4 Cash and cash equivalents 3,7 5,8 Current assets 5,9 7,8 Total Assets 8,9 8,0

Full Year Consolidated Statements as of March 31st, 2015

Financial debt decreased from -30,5 M€ in 2014 to -14,6 M€ Equity improved from -31,3 M€ in 2014 to -13,0 M€

30 October 2015

Equity & liabilities (€ million) March 31 2015 March 31 2014 Total equity

• 13,0
• 31,3

Non-current financial liabilities 1,8 30,5 Other non-current liabilities 0,1 0,6 Non-current liabilities 1,9 31,1 Provisions for current contingencies and l 1,2 1,6 Current financial liabilities 12,8 0,0 Trade payables 4,6 4,4 Current tax liabilities 0,3 0,1 Other current liabilities 1,1 2,1 Current liabilities 19,9 8,2 Total equity and liabilities 8,9 8,0

Full Year Consolidated Statements as of March 31st, 2015

Net debt significantly reduced from 24,7 M€ to 11,0 M€

Net financial debt decreased from -24,7 M€ as of march 31st, 2014 to -11,0 M€ as of March 31st, 2015. Alden’s loan represents12,1M€ of the gross debt with 10,6 M€ in principal and 1,5 M€ of interest. Pending litigation against Alden (cf. annual report) 31 October 2015

Net financial debt (€ million) March 31 2015 March 31 2014 Non current financial debt 1,8 30,5 Current financial debt 12,8 0,0 Gross financial debt 14,6 30,5 Cash and cash equivalents 3,7 5,8 Net financial debt 11,0 24,7

Quarterly Revenue

Fiscal year from April 1st to March 31st

• Q1: from April 1st, to June 30th
• Q2: from July 1st, to September 30th
• Q3: from October 1st to December 31st
• Q4: from January 1st to March 31st

(€ million) USD EUR USD EUR % USD % EUR Q1 2,2 1,6 3,1 2,8 42% 76% Q2 2,5 1,9 Q3 2,9 2,3 Q4 2,0 1,8 Total 9,6 7,6 2014-2015 2015-2016 Evolution

Atari Thank you for your attention

33 October 2015

www.atari.com