Episode 2 - What if Series - EA Sports

ION Video x EA Sports

We have received a significant number of questions from shareholders about how ION's patents work in practice, and how they apply to the kinds of organisations we are in discussions with.

We want to address those questions directly. As we have indicated in previous announcements, ION is currently engaged in preliminary discussions with a number of organisations. We will continue to provide updates on those discussions in accordance with our ASX continuous disclosure obligations as material developments occur.

In Episode 2 of our What If? series, we illustrate in detail how ION's patented infrastructure would apply if the two companies were to work together.

These use cases are prepared by ION's commercial team based on ION's own internal modelling and analysis. They are indicative in nature and intended to illustrate the potential application of our technology. They do not represent any current or agreed commercial arrangement.

Episode 2 is EA Sports.

Why EA Sports

Electronic Arts is the world's largest sports gaming company. In fiscal year 2025, EA generated $7.36 billion in net bookings, with live services accounting for 73% of that revenue. Ultimate Team microtransactions alone contribute an estimated $1.6–2.0 billion annually. EA's portfolio spans EA SPORTS FC, Madden NFL, College Football, F1 and beyond, with licences covering 20,000+ athletes across 750+ clubs in 35+ leagues.

EA's stated mission is to inspire the world to play, with an ambition to grow to over one billion players. Its strategic pivot toward live services, user-generated experiences and generative AI signals a company that recognises its future depends on dynamic, personalised, continuously evolving content.

Every part of EA's business — from the broadcast footage it licences in, to the cinematics it renders, to the gameplay it records, to the promotional content it distributes — is built on video. And today, all of that video is locked inside rendered files. Every variant requires a new render. Every personalisation requires a new file. Every territory requires duplication.

ION makes all of that video composable. Once virtualised, EA's entire video universe becomes a programmable surface that any AI system can build with — without rendering, without duplication, without losing control of the underlying content.

The Core Problem ION Solves

The world's leading AI systems can now analyse video with remarkable precision. They can identify key moments, understand context, and recognise which content will resonate with which audiences.

But turning that intelligence into a personalised, assembled, delivered video experience requires rendering a file. That architectural constraint has governed video distribution for over 50 years and it has not changed. Every personalised experience requires a brand new file. Every new file multiplies storage, compute and delivery cost. At EA's scale — hundreds of millions of players across dozens of titles — that multiplication is the defining constraint on what is commercially viable.

ION removes that constraint entirely.

How ION Works — Three Steps

• Step 1: Virtualisation. ION reads a rendered video file and produces a lightweight Virtual Video File, a reference map containing the precise internal structure of every moment at the sample level. The master media asset stays in place. What moves is the reference map, not the content.

• Step 2: AI Identifies What Matters. An AI system identifies which moments are relevant for a given player, advertiser or context. ION provides the structured data layer these systems need to operate precisely at the moment level.

• Step 3: ION Assembles and Delivers. ION assembles the identified moments as a virtual programme unique to each viewer and delivers it in real time. No new file is created. No rendering takes place. If 1,000 players each want a different highlight reel from the same match, ION produces 1,000 unique virtual assemblies from a single source, without rendering, without duplication, without lag.

Watch Finbar explain how ION's technology works and why it matters for the future of AI-driven video content.

The Six Use Cases

USE CASE 1

AI-Assembled Replay — The Gamer Experience

Every EA SPORTS FC, Madden and College Football player creates moments worth reliving. But today's replay systems are primitive — limited to the most recent match, restricted to fixed camera angles, and incapable of responding to what the player actually wants to see. If a gamer wants every goal they've scored from outside the box across a full Ultimate Team season, no system in any EA title can deliver that.

ION virtualises gameplay footage as it is captured, producing lightweight Virtual Video Files that map every session at the sample level. When a player issues a prompt, an AI system interprets the request and identifies the matching moments. ION assembles them into a seamless virtual programme and delivers it in real time. No render job runs. No new file is created.

Key value drivers:

• • Transforms replays into a persistent, personalised engagement layer that deepens with every session played

• • Creates retention mechanics where players build a video history that becomes more valuable over time

• • Enables social sharing at massive scale with no rendering or storage cost borne by EA

• • Directly supports EA's Imagination to Creation strategy by providing the infrastructure for AI-driven content creation

• • Positions EA as the first major publisher where AI systems can build with gameplay video, not just analyse it

USE CASE 2

Living Video Cards — Ultimate Team Economy

Ultimate Team is EA's most profitable engine, an estimated $1.6–2.0 billion annually across FC, Madden and NHL. The economy is built on player cards with attribute ratings. A Team of the Year card tells you a player's stats, but cannot show you the real moments that earned them. The disconnect is not a design choice. It is an infrastructure limitation.

Once league footage is virtualised through ION, an AI system identifies which real-world moments correspond to a specific card's attributes. ION assembles a unique video experience for that card and delivers it as a virtual programme. No file is rendered. No footage is duplicated. When the player scores again on Saturday, the card updates by Sunday — because assembly is instantaneous.

Key value drivers:

• • Pack openings become cinematic events, real broadcast footage playing as the card is revealed

• • Card rarity gains a new dimension: the video makes the difference between a Champions League winner and a routine goal tangible

• • Dynamic card content creates urgency — real-world performances update the virtual video layer continuously

• • Pack opening streams become dramatically more engaging, increasing organic reach at zero additional cost to EA

• • Based on ION's own modelling: rendering cost per video-native card is zero, storage duplication per variant is zero, new files created per assembly is zero

USE CASE 3

Infinite Variants, Zero Renders — Live Service Content

Live services generate 73% of EA's revenue — $5.4 billion annually. The model depends on relentless seasonal content updates. Every one of these requires video assets: trailers, promotional clips, in-game cinematics, social media content. Today, each asset is a rendered file. EA produces an estimated 1,500 to 3,000 promotional video renders annually across its major titles at a cost of $15–25 million.

Once EA's promotional source footage and cinematic components are virtualised, they become composable building blocks. A Team of the Week promotion needing 15 territorial variants becomes 15 virtual assemblies from one source library — near-instantaneous, at near-zero marginal cost per additional variant.

Key value drivers:

• • Reduces annual video production costs by an estimated 70–85% by replacing rendering with virtual assembly (ION internal estimate)

• • Enables real-time content responsiveness — distribution in minutes rather than days

• • Scales to any number of markets, languages and platform variants without proportional cost increase

• • Estimated annual savings of $12–20 million (ION internal estimate)

• • Frees creative teams to focus on high-value narrative work rather than mechanical rendering workflows

USE CASE 4

Composable Cinematics — Game Development

EA's Frostbite engine produces thousands of in-game cinematics every year — player introductions, match-day presentations, career mode cutscenes, celebration sequences. Each is authored, rendered and baked into the game build as a static file. Cinematic assets inflate download sizes, cannot change after shipping without a title update, and are rendered nearly identically thousands of times for marginal differences.

ION virtualises the component elements of EA's cinematic pipeline — motion capture sequences, stadium environments, camera paths, commentary tracks, player-specific assets. At playback time, an AI system or the game engine determines which components to combine based on gameplay context. ION assembles the cinematic as a virtual programme unique to that player, that moment, that match state, without rendering a new file.

Key value drivers:

• • Reduces game build sizes significantly by replacing pre-rendered cinematics with lightweight Virtual Video Files

• • Enables context-sensitive cinematics that respond to gameplay state without authoring every permutation as a separate render

• • Supports Project Atlas by enabling server-side cinematic assembly, reducing client-side compute and bandwidth requirements

• • Accelerates the annual development cycle by removing render pipeline bottlenecks

• • Every cinematic component virtualised this year is available for composition in every future title

USE CASE 5

Instant Moment Assembly — Esports and Creator Ecosystem

EA's competitive gaming division runs FC Pro Leagues, Madden Championship Series and an ecosystem with over $1 million in combined prize pools. The EA Creator Network connects thousands of streamers generating billions of views annually. Extracting moments from a broadcast currently requires manual clipping, editing, rendering and exporting. The lag between a viral moment and shareable content can stretch to hours.

When esports broadcasts and gameplay sessions are virtualised through ION, every moment becomes composable. An AI system identifies moments of interest in real time then instructs ION to assemble each moment into a virtual programme — shareable, playable, governed — instantly, without rendering. No render job. No file created. Full rights governance preserved.

Key value drivers:

• • Eliminates the latency between a viral moment and its availability, ensuring EA's channels are never slower than unauthorised clippers

• • Creates a structured creator economy where content access is governed at the infrastructure level

• • Enables new commercial models: moment-level sponsorship, metered creator access tiers, licensed clip distribution

• • Amplifies esports viewership by making highlights instantly available across every platform simultaneously

• • Directly supports EA's user-generated experience (UGX) strategy by providing the infrastructure layer beneath it

USE CASE 6

Content That Never Leaves Home — Licensing and Sovereignty

EA's business runs on licensing in both directions. Inbound: hundreds of millions annually for likenesses, stadiums, leagues and broadcast footage. Outbound: EA licences its own game footage, cinematics and brand assets to broadcast partners, sponsors and media companies. In both directions, the current model depends on transferring complete rendered files. Once transferred, control is fundamentally diminished.

ION's architecture decouples the right to experience content from the possession of content files. A licensee never receives a file. They receive access to a governed reference object specifying what content can be assembled, by whom, under what conditions, in which territories, and for what duration. When the licence term expires, the access token expires. EA's content never moves.

Key value drivers:

• • Strengthens EA's negotiating position with sports leagues — licensed footage never leaves the rights holder's infrastructure

• • Opens a new revenue stream: AI training licensing where EA monetises its library without surrendering any files

• • Eliminates structural risk of content leakage — raw media is never transferred in licensing relationships

• • Enables granular licensing: per-moment, per-territory, per-use-type, time-limited, all enforced architecturally

• • Future-proofs EA's content protection framework against AI-powered piracy and unauthorised model training

Why This Matters

Across these six use cases, ION's patents address constraints that are embedded in every part of EA's commercial operation. Gameplay replay. Ultimate Team economics. Live service content. Game development pipelines. Esports and creator distribution. Licensing and rights protection. Each represents a significant commercial opportunity. Each is made possible by the same architectural shift: treating video as a programmable instruction set rather than as a file that must be made, stored and sent.

The intelligence EA has already built — its AI roadmap, Frostbite engine, live service infrastructure, franchise data — gets the execution layer it currently lacks. Every asset in EA's video universe becomes composable, AI-accessible and rights-sovereign.

ION holds the only granted patent portfolio in the world covering the virtualisation of video into reference-based containers and the dynamic assembly of those containers at runtime without rendering. The priority date is August 2007. The portfolio has been subject to three independent assessments, each confirming validity and breadth.

Download and read the full use case document covering all six applications of ION's patented infrastructure within EA Sports.

What Comes Next

We will continue the What If? series with Episode 3 and beyond, covering additional organisations operating in our target markets. Our aim is to give shareholders a progressively clearer picture of the commercial landscape ION's patents address and the scale of the opportunities within it.

Shareholders are reminded that these use cases are illustrative and do not represent any current or agreed commercial arrangement. All financial estimates are based on ION's own internal modelling. ION will update the market in accordance with its ASX continuous disclosure obligations as material developments occur.

We appreciate your continued support and look forward to bringing you Episode 3 shortly.

Yours sincerely,

Anthony Baker

Chief Executive Officer and Director

ION Video Limited (ASX: IOV)

These use cases are prepared by ION's commercial team based on internal modelling and analysis. They are indicative in nature, do not represent independently verified figures, and do not constitute any current or agreed commercial arrangement. Actual results may differ materially. This communication has been prepared in compliance with ASX continuous disclosure obligations.