Slide 1: Q1 2018 – Henrik Tjärnström, CEO
Henrik Tjärnström CEO Q1 2018 25 April 2018
Slide 2: Outline
• Financial results Outline • Business overview • Summary © Kindred Group plc 2018 2
Slide 3: Kindred
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Slide 4: Financial results
Financial results © Kindred Group plc 2018 4
Slide 5: Q1 2018: Gross Winnings Revenue up 23 per cent pure organically
Q1 2018 “ Gross Winnings Revenue up 23 per cent pure organically and all-time high in active customers” 5 © Kindred Group plc 2018
Slide 6: Q1 2018 Key Report Highlights
Q1 2018 Key Report Highlights Gross Earnings Free Cash Active winnings EBITDA per share Flow customers revenue GBP 207.8 m GBP 47.3 m GBP 0.131 GBP 33.6 m 1,383,201 (+36%) (+61%) (+82%) (+24%) (+12%) © Kindred Group plc 2018 6
Slide 7: Gross winnings revenue
Gross winnings revenue GBPm 751.4 238.0 544.1 152.8 193.6 354.1 312.0 Q4 268.0 142.3 111.4 226.7 78.0 166.6 Q3 80.4 86.1 126.6 77.1 80.5 Q2 207.8 122.4 153.2 76.5 76.1 Q1 2012 2013 2014 2015 2016 2017 2018 © Kindred Group plc 2018 7
Slide 8: Gross winnings revenue from mobile
Gross winnings revenue from mobile GBPm +34% 180 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 2016 2017 2018 © Kindred Group plc 2018 8
Slide 9: Q1 2018 P&L FX impact v Q1 2017
Q1 2018 P&L FX impact v Q1 2017 Avg rate Q1 2017 Q1 2018 Movement SEK 11.054 11.292 -2.2% NOK 10.452 10.911 -4.4% Weighted average movement EUR 1.163 5.4 1.132 2.7% in FX rates: approx. 1% DKK 8.646 8.431 2.5% AUD 1.634 1.770 -8.3% GBPm GWR increase 1.5 CoS / Opex increase -0.7 FX loss on operating
Slide 10: Geographic growth
Geographic growth – Key Report Highlights Q1 2018 vs Q1 2017 GWR as reported GWR in Organic GWR in in GBP constant currency constant currency Nordics +7% +8% +8% Western Europe +65% +62% +38% © Kindred Group plc 2018 10
Slide 11: Other Costs analysis
Other Costs analysis Excl. Non-recurring items 2013 2014 2015 2016 2017 2018 GBPm FY FY FY FY FY Q1 Reported Other Costs 52.3 47.9 43.1 69.4 109.1 27.6 Depreciation & Amortisation -18.9 -16.8 -13.0 -23.8 -42.6 -11.6 FX loss/gain on Opex -0.6 -1.8 -0.7 -0.6 -1.5 -0.2 Other Costs post D&A and FX 32.8
Slide 12: EBITDA
EBITDA – Excl 2014 Kambi one-off item GBPm 180.3 73.8 120.7 38.9 75.5 77.0 46.6 Q4 63.4 52.5 18.4 26.2 33.1 Q3 21.7 17.4 30.5 21.1 Q2 14.0 19.0 47.3 21.3 27.6 29.4 Q1 14.4 2012 2013 2014 2015 2016 2017 2018 © Kindred Group plc 2018 12
Slide 13: Tournament year investments
Tournament year investments – short term pain for long-term gain Reported EBITDA Q1 v Q2 (GBPm) Q1 Q2 Change 2006 8.3 6.3 -24% 2008 13.0 8.3 -36% 2010 12.9 10.8 -16% Normal pattern of 2012 15.3 11.0 -28% business development 2014 21.3 16.0 -25% for a tournament quarter – the payback comes in 2016 27
Slide 14: EPS development
EPS development – Excl 2014 one-off items GBP 0.55 0.516 0.50 0.45 0.40 0.366 0.223 0.35 0.30 0.129 0.25 0.244 Q4 0.131 0.20 0.084 0.091 Q3 0.15 0.057 0.059 0.090 0.10 Q2 0.059 0.131 0.05 0.087 0.072 0.044 Q1 0.00 2012 2013 2014 2015 2016 2017 2018 © Kindred Group plc 2018 14
Slide 15: Business overview
Business overview © Kindred Group plc 2018 15
Slide 16: Active customers
Active customers ATH Thousands 1,400 1,200 1,000 800 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 2016 2017 2018 © Kindred Group plc 2018 16
Slide 17: Sports betting gross margin
Sports betting gross margin Combined Before free bets After free bets 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 2011 2012 2013 2014 2015 2016 2017 2018 © Kindred Group plc 2018 17
Slide 18: Product & geographic balance
Product & geographic balance Gross winnings revenue over time By product, % By geography, % Other 3 2 3 4 4 3 3 2 2 Other 2 2 2 2 2 2 2 3 2 Casino & 45 Western 44 44 46 46 51 48 50 47 50 Games 50 49 51 51 51 Europe 52 55 55 2 2 9 Poker 3 2 2 2 2 2 CES 10 9 8 7 2 7 6 21 7 7 23 23 23 23 Live betting 2
Slide 19: Kindred Group plc ESG rating AAA
Kindred Group plc ESG rating AAA © Kindred Group plc 2018 19
Slide 20: Awards: Data Protection Officer of the Year and others
Data Protection Officer of the Year Head of Risk Most Significant Contribution to Responsible Gambling Research © Kindred Group plc 2018 20
Slide 21: Regulatory update: Norway
Regulatory update Norway • Two members of the Parliament have sent a “wish list” to the Parliament. • Family & Cultural Committee has sided with it. • Norwegian Parliamentary committee standpoint is a request that government returns with analysis and draft laws. • The standpoint raises concern regar
Slide 22: Regulatory update: Sweden
Regulatory update Sweden • Vote in Parliament 7 June • Application process 1 August • Entering into force 1 January 2019 • Kindred well prepared • Proposal leave for state owned operator to assess itself in relation to competition law • Incumbents allowed entry on competitive market by use of 50 yea
Slide 23: Swedish Political Week
Swedish Kindred Group to participate in Almedalen for Political the fifth year in constructive engagement with politicians and other stakeholders in June Week © Kindred Group plc 2018 23
Slide 24: Regulatory update: Belgium & the Netherlands
Regulatory update Belgium & the Netherlands Belgium • 22 March: Constitutional court annulled VAT levy for online but no retroactive effect • Important precedent & acknowledgement that high taxation impacts attractiveness of the market • Royal decrees: going through legislative process – entry into
Slide 25: Summary Q1 2018
Summary Q1 2018 SB margin ATH after FB GWR in active customers 8.2% +36% EBITDA EPS FCF +61% +82% +24% © Kindred Group plc 2018 25
Slide 26: World Cup
Brazil 5.50 Germany 5.75 Spain 7.00 France 7.50 Belgium 12.00 World Cup 101.00 2018 Denmark Sweden 101.00 © Kindred Group plc 2018 26
Slide 27: © Kindred Group plc 2018
© Kindred Group plc 2018 27
Slide 28: Contact and Calendar
Contact Calendar 15 May 2018 Investor Relations AGM Inga Lundberg 25 July 2018 +44 788 799 6116 Q2 will be published at 7.30 CET ir@kindredgroup.com 26 Oct 2018 Q3 will be published at 7.30 CET © Kindred Group plc 2018 28
Slide 29: Kindred
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