GUILLEMOT CORPORATION: THIRD QUARTER 2023 TURNOVER

Carentoir, October 26, 2023

THIRD QUARTER 2023 TURNOVER

Unaudited data (€m)

                                                                                                                                                  2023               2022         Change

January 1 – September 30, 2023

 * Accessories developed to accompany products of third-party companies (Original Equipment Manufacturer).

Third quarter 2023 turnover came in at €35.4 million, down 18% compared with the previous year but up 36% quarter on quarter.

Thrustmaster is operating in a racing wheels market which was improving in September.

Meanwhile, Hercules posted buoyant sales in the third quarter, up 50%.

During the quarter, strong momentum for the Group’s new products and effective promotional campaigns helped offset inventory reduction by distributors, which continued throughout the quarter.

Thrustmaster news

➢    RACING: Thrustmaster is currently benefiting from the ramp-up of its new TH8S Shifter Add-On (released in July), which has helped grow the brand’s global market share. The ideal companion to its SimRacing setup, this version is more affordable than its predecessor but with the same outstanding level of performance.

The recent release of Forza Motorsport for PC and Xbox on October 10 and the forthcoming EA SPORTS™ WRC racing game, scheduled to launch on November 3, are expected to drive significant sales of racing wheels.

➢    FLIGHT: the new Viper TQS range was unveiled at FlightSimExpo in June. The new Viper TQS Mission Pack joystick, released on October 11, has already been acclaimed by the press: after testing the new device, French website www.serial-gamers.frdescribed it as a “military-grade product for the most serious pilots”. The Game is Hard website found it to be “a high-end, expert-level peripheral that delivers a realistic and immersive combat flight simulation experience”.

➢    Farming: this new segment will meet gamers’ expectations in this promising market thanks to the newlylaunched Thrustmaster range unveiled at the Gamescom show at the end of August. The range is specially designed to simulate the experience of driving heavy vehicles and agricultural machinery. At the Poznań Game Arena show in Poland in October, Thrustmaster unveiled its new multifunctional farming simulation joystick, SimTask FarmStick. Pre-orders opened on October 19, with availability set for November 19. During the period, the new Farming Simulator 23 game provided the perfect opportunity to highlight the Group’s new accessories at Switzerland’s most popular public fair, OLMA, on October 18.

Hercules news

Hercules released a raft of new products:

➢ DJing: turnover grew strongly in the United States and Europe, buoyed by the successful launch of the new DJControl Inpulse T7 console, released on September 12 to complement the bestselling DJControl Inpulse 500.  The new DJControl Inpulse 200 and 300 MK2 consoles were also bestsellers in the e-commerce segment.

-  Hercules expanded its relationships with the most important players in the online and offline music channel.

-  The brand entered into new distribution agreements, strengthening its presence in markets with high growth potential (Japan, China, South Korea, Mexico, Brazil and Italy).

➢ Streaming: Hercules is actively preparing for the imminent launch of its brand-new dedicated streaming category, which will diversify the brand’s product portfolio and bring streamers a high-quality offering underpinned by the expertise of Hercules’ Research and Development teams.

Financial position at September 30, 2023

At September 30, 2023, the Group had no net debt (with net debt excluding available-for-sale securities negative at -€9.1 million). The Group’s available-for-sale securities, consisting of 443,874 Ubisoft Entertainment shares, were valued at €13.7 million.

Outlook

Sales of the Group’s products to end consumers via a number of major customers are currently growing, particularly in the United States, pointing to an improvement in business momentum in the run-up to the end of the year.

The Group continues to forecast sales in the range of €120–140 million and a net operating profit for fiscal 2023.

Together with the expansion of the Group’s distribution networks, the strong potential offered by the new Hercules and Thrustmaster product lines means that the outlook is positive for a return to significant growth in 2024.