STRATEGIC OPPORTUNITIES January 2016 Disclosure In this strategic - PowerPoint PPT Presentation

STRATEGIC OPPORTUNITIES January 2016

Disclosure In this strategic presentation, the terms "Atari“ and/or the "Company" mean Atari. The term "Group" means the group of companies belonging to the parent Company and all companies within its consolidation’s scope. This strategic presentation contains statements relating to ongoing or future projects, future financial and operating results, and other statements about Atari’s managements’ future expectations, beliefs, goals, plans or prospects that are based on current expectations, estimates, forecasts and projections about Atari, as well as company’s future performance and the industries in which Atari operate will operate, in addition to managements’ assumptions. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements which are not statements of historical facts. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to assess. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. These risks and uncertainties are based upon a number of important factors including, among others: political and economic risks of our respective global operations; changes to existing regulations or technical standards; existing and future litigation; difficulties and costs in protecting intellectual property rights and exposure to infringement claims by others summarized in chapter 8 of the company’s annual report registered to the AMF under the number D15-0825 on August 4, 2015. For a more complete list and description of such risks and uncertainties, refer to Atari’s annual report in its chapter 8 for the year ended March 31, 2015. Except as required the rules and regulations of the AMF, Atari disclaim any intention or obligation to update any forward-looking statements after the distribution of this document, whether as a result of new information, future events, developments, changes in assumptions or otherwise. January 2016 2

Table of Contents 1. Atari at a glance – Much more than video games 2. 2013-2015 Turnaround 3. Summary Financials / Cap Table 4. Key Investment Considerations 5. Exhibits:  Games: A strong portfolio of games and IP ownership  RollerCoaster Tycoon  Licensing January 2016 3

1 – Atari at a glance - Much more than video games January 2016 4

Atari at a Glance With an A Globally Unparalleled Recognized, Iconic Catalog of Brand Popular Games January 2016 5 5

Iconic Brands (Refer to full deck of games) More than $2 Billion of Historical Revenue $456 $391 Million Million $154 $525 $265 Million Million Million $85 $92 Million Million January 2016 6 6

There is Much More Than Video Games Time Magazine’s, “50 Best Websites 2012” “Pong! Atari Marks almost 40 Years of 7 Gaming”

Opportunities Across Media Categories  Online casinos  Hardware / consoles, drones, … : Atari is exploiting replicas of the Atari 2600 and is looking at other licensing or business opportunities, such as drones.  TV scripted series : On-going project with Alone in the Dark  TV unscripted series : TV games “à la“ Wipe Out, …  Web series  Movies : Pixels with Sony – Ongoing deal with a Hollywood major - Representation by Creative Artists Agency for additional licensing deals  Comic books  Merchandising on a broad scale January 2016 8

2 – 2013-2015 Turnaround January 2016 9

2013-2015 Turnaround 2012 Atari ran into significant financial difficulties. 2013 A few days later, Frédéric Early 2013, the In 2013-2014, Chesnais and the Alden US subsidiaries F. Chesnais Capital fund took over. filed for managed the • F. Chesnais , is the former bankruptcy exit of the US Deputy-COO of the Atari Group, protection subsidiaries out and CEO of Atari Interactive. He (Chapter 11). of the Chapter left Atari in 2007-2008. • Alden Capital is a New York- 11 in the US based investment fund. Alden is not involved in the management of the Atari Group. 2014 From mid-2014, the new team relaunched game production and began implementation of a robust turnaround strategy. Janvier 2016 10 10

2013-2015 Turnaround Atari is a company implementing a turnaround phase. Atari owns iconic brands in the video game industry and can capitalize on new opportunities outside of the videogaming market. Simplified organization Turnaround, improved (external studios, digital financial structure distribution…) Opportunities outside of Cap table simplified the videogame industry (casinos, drones, TV, licensing…) Atari is Back to Profitability January 2016 11 11

Today: A Simple and Very Efficient Structure Atari SA French-listed entity Atari Europe Atari US 100%-owned subsidiaries  Chesnais owns approximately 25% of the Atari Group, is Chairman of the Board and CEO. He is the largest shareholder in Atari.  The production team is based in New York City, with 3 rd -party development studios in the US and abroad.  Products are primarily sold digitally, on a worldwide basis.  The group uses 3 rd parties to manufacture and distribute physical boxes. January 2016 12

Old Value Chain Rights  Integration of key functions; limited use of third party studios Prod / Dev  Great dependence on physical distribution  Limited level of ancillary Publishing revenue (digital, licenses, merchandising,…) Distribution Atari is No Longer Operating Like This January 2016 13 13

Current Business Model Atari is a content production company aiming at maximizing the value of its brands and IP portfolio in the interactive entertainment industry. Atari Capitalizes On: To Maximize Profits: • A huge IP portfolio • Fixed costs are at the lowest levels and the production • Efficient production and management is externalized operations • Co-investments are favored • Effective digital marketing with studios or third party management • Digital distribution is fully • An experienced Management implemented and deployed Team January 2016 14 14

The New Value Chain The New Atari  Intensification of externalization Team IPs €  Diversification of the distribution Executive External channel and Production Studios sources of income  Digital Others Digital Box Distribution Licensing (Casino, ...) Distribution distribution January 2016 15 15

Strong Management Team Fred Chesnais - Chief Executive Officer, Member of the Board of Directors • 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. 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. Philippe Mularski – Chief Financial Officer • Certified accountant and Auditor. • Joined Atari Group in 2014. January 2016 16 16

Broad, Diversified Platforms Strong positioning enables worldwide operations with a small team PC Download Digital Console Streaming Online Casino Advertising January 2016 17

3 – Summary Financials – Cap Table January 2016 18

2013-2015 Turnaround achieved (€ 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) (Year end as at March 31) March 2013 to March 2015 Revenue: From a net loss From a net debt Equity: From 1,2 M€ of (35,8) M€ to a of (31,4) M€ From (34,9) M€ to 7,6 M€ net profit of 1,2 M€ to (11,0) M€ to (13,1) M€ January 2016 19 19

Full Year Consolidated Statements as of March 31, 2015 An increase of turnover (x)2 compared to the previous year Profitable Company (€ 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 Net revenue: 7,6 M€ Operating income: +1,5 M€   An increase of turnover (x2) compared to the Restructuring costs: +0,4 M€ previous year  Other non- recurring revenue: +1,0 M€  More than 15 million downloads of RollerCoaster Tycoon for mobile. Net income: + 1,2 M€ Current operating income: + 0,2 M€  Cost of debt: - 1,4 M€  R&D expenses: - 5,2 M€ including 2,8 M€ fixed;  Other financial income: +1,1 M€  Marketing costs: - 0,9 M€  Control of overhead costs January 2016 20 20