Slide 1: Year-End and Q4 Report 2016
PRESENTATION 2016 YEAR-END AND Q4 REPORT 9 February 2017 Ulrik Bengtsson CEO & President
Slide 2: What was said for 2016?
WHAT WAS SAID FOR 2016? 1. We will continue to actively look for acquisition opportunities 2. We will aim to grow sustainable (locally regulated/taxed) revenues 3. We will ensure that our investments deliver operational excellence and execute on their strategy 2
Slide 3: Recap of operational highlights 2016
RECAP OF OPERATIONAL HIGHLIGHTS 2016 1. Important acquisitions for; scale, improved offering, enabling of organic growth and synergies 2. Increased share of regulated revenue, added 4 local licenses 3. Accelerated product development to support growth Strong performance Casino Gaining market sha
Slide 4: Acquisition - methodically following the strategy
ACQUISITION - METHODICALLY FOLLOWING THE STRATEGY Tonybet, rev: 6 MEUR e2016 (3.6x EBIT) Consolidates Baltic Position License in Lithuania, 100% locally regulated revenue RaceBets, rev: 9.3 MEUR 2015 (10.1x EBIT) 75% locally regulated revenue, DE & UK Leading horse racing product for all brands
Slide 5: Key performance indicators
PRESENTATION Q4 2016 KEY PERFORMANCE BUSINESS UPDATE INDICATORS
Slide 6: Summarising 2016 - continued profitable growth
SUMMARISING 2016 - CONTINUED PROFITABLE GROWTH Revenue Earnings per share (EPS) 4 500 7,00 4 000 6,00 3 500 5,00 3 000 4,00 SEK 000’s 2 500 SEK 2 000 3,00 1 500 2,00 1 000 1,00 500 - - 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 6
Slide 7: Snapshot Q4 2016
SNAPSHOT Q4 2016 Q4 Q4 FY FY Casino growth, +20% SEK m 2016 2015 Change 2016 2015 Change Nordic growth, +17% Revenue 1,118.5 1,041.1 7.4% 4,117 3,722 10.6% Stabilisation in CEECA* despite EBIT 265.1 174.4 52.0% 946 886 6.8% continued weak currencies in region EBIT margin 23.7% 16.7% - 23.0% 23
Slide 8: Trends revenue and EBIT
TRENDS REVENUE AND EBIT Revenue EBIT 1 200 300 1 000 250 800 200 SEK m SEK m 600 150 400 100 200 50 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2015 2015 2015 2016 2016 2016 2016 2014 2015 2015 2015 2015 2016 2016 2016 2016 Revenue SEK 1,119 m EBIT: SEK 265.1m, flatish af
Slide 9: Revenue development Q4 2016 vs Q4 2015
REVENUE DEVELOPMENT Q4 2016 VS Q4 2015 1 200 13 ( 25) 9 1 100 81 1 000 Revenue SEKm 1 119 Revenue growth: 7.4% 1 041 900 0 800 Revenue Q4 '15 Western Europe ROW Revenue Q4 '16 CEECA Nordics Growth 17.1% Growth 5.2% Growth -8.3% Growth 48.6% 9
Slide 10: License fees from Realm Entertainment Ltd
LICENSE FEES FROM REALM ENTERTAINMENT LTD 200 Share of revenue, Share of revenue, Q4 2015 Q4 2016 150 SEK m 100 16% 12% 50 0 84% Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 88% Revenue, reported Realm Other Realm Other 60 Small growth in fees compared to Q3 Larger growth in fees in local currency 40
Slide 11: Revenue distribution, Q4 2016
REVENUE DISTRIBUTION, Q4 2016 Geography GGR, UK & ITALY 100 2,4% 80,3 80 +102% 60 SEK m 39,8 40 25,0% 20 0 49,8% Q4 '15 Q4 '16 Gaining market share in very large and 22,9% compettive markets Profitable growth Increase share of locally regulated revenue During 2017, Italy and UK combined will
Slide 12: Key data by product
KEY DATA BY PRODUCT Casino, revenue Sportsbook, revenue Sportsbook, turnover 900 400 8 000 9% 800 350 7 000 8% 700 300 7% 6 000 600 250 6% 5 000 SEK m 500 SEK m 200 5% SEK m 400 4 000 150 4% 300 100 3 000 200 3% 100 50 2 000 2% 0 0 1 000 1% Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4
Slide 13: Trends active players & deposits
TRENDS ACTIVE PLAYERS & DEPOSIT Active players Deposits 600 4 500 4 000 500 3 500 400 3 000 Thousands 2 500 SEK m 300 2 000 200 1 500 1 000 100 500 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2015 2015 2015 2016 2016 2016 2016 2014 2015 2015 2015 2015 2016 2016 2016 2016 Ac
Slide 14: Products and offering
PRESENTATION Q2 2016 PRESENTATION Q4 2016 PRODUCTS AND OFFERING BUSINESS UPDATE 14
Slide 15: World's largest mobile casino
WORLD’S LARGEST MOBILE CASINO OBG enabled improvements Improved search, filtering, favourites personalisation and recommendation Increase in actives and deposits More sessions and longer session duration Being rolled out on all brands Mobile casino growth 83% Continued strong growth in
Slide 16: Sportsbook update
SPORTSBOOK UPDATE Total no. of traded live events up 30% 2H vs 1H +200 concurrent events continuously Improved margin for live bets due to optimised trading tools Mobile Sportsbook to be launched on OBG from Q2 2017 onwards on all brands. NordicBet best Bookie of the year in Norway Winne
Slide 17: Regulatory update
PRESENTATION Q4 2016 REGULATORY UPDATE
Slide 18: Betsson with 10 licenses
BETSSON WITH 10 LICENSES Betsson Group License Malta (SB 0.5% TO / GoC Georgia (5% TO / 2004 2015 GoC 15% profit) 1.5K EUR per license) 2011 Italy (20% GGR) 2016 Ireland (SB 1% TO) 2012 Estonia (5% GGR) 2016 Latvia (15% GGR) 2012 Denmark (20% GGR) Lithuania (10% GGR) 2016 UK (15% GGR) Germany (SB 5%
Slide 19: Going forward
PRESENTATION Q4 2016 GOING FORWARD 19
Slide 20: Outlook and assessments
OUTLOOK AND ASSESSMENTS Revenue in the beginning of the first quarter 2017 was significantly higher than the average revenue of the first quarter 2016 and higher than the average revenue in the fourth quarter 2016. Management estimates that the operational expenditure in the first quarter 2017,
Slide 21: The Betsson investment story
THE BETSSON INVESTMENT STORY Strong ▪ Continued shift from offline to online underlying ▪ Increased accessibility and use of multiple screens market drivers ▪ Local regulation drives growth ▪ CAGR in core markets 8.5% in 2017-2020 ▪ ~70% revenue from Casino, low volatility segment Strong competitive
Slide 22: Q&A
PRESENTATION Q4 2016 Q &A Q&A 22
Slide 23: Currency exchange rates
CURRENCY EXCHANGE RATES Income statement (average rate) 2016 2015 EUR/SEK 9.4704 9.3562 1,2% TRY/SEK 2.8339 3.1075 -8.8% GEL/SEK 3.6178 3.5681 +1,4% NOK/SEK 1.0199 1.0465 -2.5% Balance sheet (closing rate) 2016-12-31 2015-12-31 EUR/SEK 9.5669 9.135 4.7% TRY/SEK 2.5796 2.8699 -10.1% GEL/SEK 3.4374 3.