Betsson Ab Class B · OMXSTO:BETS_B

Betsson Ab Class B — Q2 2016 Earnings Presentation

20 slides from Betsson Ab Class B's earnings presentation, 2016

  1. Slide 1: Presentation Q2 2016

    PRESENTATION Q2 2016 Q2 2016 JANUARY - JUNE Ulrik Bengtsson CEO & President

  2. Slide 2: Snapshot Q2 2016

    SNAPSHOT Q2 2016  Currency effect SEK –32.8 m SEK m Q2 2016 Q2 2015 Change FY 2015  Lower Sportsbook revenue Revenue 935.4 860.6 8.7% 3,722.0  Lower than average Sportsbook margin  Effect of regulatory changes EBIT 158.3 213.8 -26.0% 886.4  Losses in one market Net income 146.4 201.6 -27.4% 831

  3. Slide 3: Key Performance Indicators

    PRESENTATION Q2 2016 KEY PERFORMANCE BUSINESS UPDATE INDICATORS

  4. Slide 4: Key Financial Data

    KEY FINANCIAL DATA Revenue EBIT 1 200 300 1 000 250 800 200 SEK m SEK m 600 150 400 100 200 50 0 0 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2015 2015 2015 2016 2016 2015 2015 2015 2016 2016  Revenue of SEK 935 m  EBIT of SEK 158 m  Currency impact of  Full impact of revenue decrease on EBIT SEK –32,8 m  I

  5. Slide 5: Active Players & Deposits

    ACTIVE PLAYERS & DEPOSITS Active players Deposits 600 4 000 500 3 500 3 000 400 2 500 SEK M 000’s 300 2 000 200 1 500 1 000 100 500 0 0 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2015 2015 2015 2016 2016 2015 2015 2015 2016 2016  563,000 active players in Q2  Deposits of SEK 3.5 bn  58% growth y-o-y  Increas

  6. Slide 6: Revenue Distribution, Q2 2016

    REVENUE DISTRIBUTION, Q2 2016 Geography Product 2,6% 0,3% 23,8% 28,6% 46,5% 2,8% 73,0% 22,3% Nordic (-1%) Casino (+11%) Western Europe (+3%) Poker (+6%) Central, Eastern Europe and Central Asia (+36%) Sportsbook (+8%) RoW (+3%) Other (-74%) Numbers in brackets represent change from Q2 2015

  7. Slide 7: Key Data by Product

    KEY DATA BY PRODUCT Casino, revenue Sportsbook, revenue Sportsbook, turnover 700 350 8 000 8% 600 300 7 000 7% 500 250 6 000 6% 200 5 000 5% 400 SEK m SEK m SEK m 4 000 4% 300 150 3 000 3% 200 100 2 000 2% 100 50 1 000 1% 0 0 0 0% Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2015 2015 2015 2016 2016

  8. Slide 8: Q2, Europe-bet

    Q2, EUROPE-BET  Acquired in Q3 2015 in line with our acquisition strategy  Fully licensed in Georgia  Revenue SEK 94.1 m -of which 15.6 Offline  Operating income SEK 22.9 m  Online growth of 18%  Continued improvement of local offering

  9. Slide 9: Realm

    REALM 200 Share of revenue, Share of revenue, Q2 2015 Q2 2016 150 SEK m 100 19% 14% 50 0 81% 86% Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Revenue, reported Realm Other Realm Other 60  Realm revenue share at same level as Q1 40  Improved product offering for Realm TYR m 20  Business is stabilizing

  10. Slide 10: Products and Offering

    PRESENTATION Q2 2016 PRESENTATION Q2 2016 PRODUCTS AND PRODUCTS AND OFFERING OFFERING

  11. Slide 11: Casino Update

    CASINO UPDATE  Increase from 983 to 1,442 games Total games Mobile games 1 500 600  Games available on mobile devices 500 from 223 to 593 1 000 400  Additional exclusive games 300 500 200  Probably largest casino in the market 100 0 0 Q2 2015 Q2 2016 Q2 2015 Q2 2016 Betsson’s jackpot app won two

  12. Slide 12: New Releases

    NEW RELEASES Virtual Sports Live Numbers Games

  13. Slide 13: Sportsbook Update

    SPORTSBOOK UPDATE Functionality Scalability Stability

  14. Slide 14: Mobile Update

    MOBILE UPDATE  41% of total revenues in Q2  61% of Sportsbook turnover on mobile New releases:  Emperor App  Apple TV

  15. Slide 15: Regulatory Update

    PRESENTATION Q2 2016 REGULATORY UPDATE

  16. Slide 16: Regulatory Update – The Netherlands

    REGULATORY UPDATE – THE NETHERLANDS  Lower House of the Dutch parliament has voted in favour of new remote gaming legislation  Expected that the legislation will pass the Upper House this year  Gaming Authority has indicated that licensing process should start on 1st July 2017  New licenses esti

  17. Slide 17: Betsson Licenses

    BETSSON LICENSES Betsson Group License Malta (SB 0.5% TO / GoC 1.5K EUR 2004 per license) 2011 Italy (20% GGR) 2012 Estonia (5% GGR) 2012 Denmark (20% GGR) 2012 2016 UK (15% GGR) 2015 2012 2016 Georgia (5% TO / GoC 15% 2015 2015 profit) 2016 Ireland (SB 1% TO) 2015 Latvia (15% GGR) 2016 2011 2004

  18. Slide 18: Going Forward

    PRESENTATION Q2 2016 GOING FORWARD

  19. Slide 19: The Betsson Investment Story

    THE BETSSON INVESTMENT STORY Strong ▪ Expected continued strong growth in overall gambling underlying ▪ Continued shift from offline to online market drivers ▪ New digital channels like mobile driving additional revenue Strong ▪ Strong organic growth competitive ▪ Strong EBIT margins business ▪ Mult

  20. Slide 20: Q&A

    PRESENTATION Q1 2016 Q &A Q&A

Betsson — Q2 2016 Earnings Presentation on 6ix