Slide 1: A challenger on a quest
A challenger on a quest Investor Presentation Q3 2020
Slide 2: Agenda
Acroud Q3 Investor Presentation 1. Quick overview Robert 2. What we do Andersson CEO 3. Our market 4. The Journey Ahead Gustav Vadenbring 5. Financial Details CFO 6. Closing comments Investor Presentation Q3 2020
Slide 3: Quick Overview
Acroud is a fast-growing global challenger in digital comparison and news services. Quick Overview Investor Presentation Q3 2020 3
Slide 4: Third Quarter Key Figures
Third Quarter Key Figures • Revenue amounted to EUR 2,376 (3,467) • EBITDA amounted to EUR 961 (1,867) • Profit after tax was thousand. EUR 327 (1,141) • New Depositing Customers decreased -57% (-14%) • Cash flow from operating activities EUR 738 (1,567) Investor Presentation Q3 2020 4
Slide 5: Key Events During and After Q3
Key Events During and After Q3 • Name Change to Acroud New Company under fast transition • Calibrated strategy Complement with acquisitions • Restructuring Operations Cost savings and stronger operations • Migrated all sites to one platform Improved operational efficiency • 5 new licenses in US Acce
Slide 6: Leading the way
Leading the way, Acroud is a fast-growing global challenger in digital comparison and news services. Since the Company’s establishment in 2003, we have expanded to 30 countries and offer +30 sites under strong digital brands in over 20 languages. With a strong focus on the US market with 7 licensens
Slide 7: Acroud in brief and key brands
Acroud in brief And key brands Background • Founded in 2003 • Headquartered in Malta • Listed on Nasdaq OMX First North Premier Growth Market A Global leader in iGaming affiliation • 60 employees with 25 nationalities • 30 high-quality comparison sites in over 20 countries • Revenue 2019: 14,3 mEuro
Slide 8: Connecting people and Businesses
Mission Vision Goal Why we exist Our ideal state. The target Connecting Reshaping To build the people and our industry media house Businesses. for the good of the future. of all. Investor Presentation Q3 2020 8
Slide 9: Our driving force
Our driving force Product Culture Product We Enable We Nurture We Inspire Synergies Talent Confidence Efficiency Growth Honest Teamwork Clever Determination Adaptability Sharpness Courage Investor Presentation Q3 2020 9
Slide 10: What we do
What we do Affiliation explained Q3 2020 10
Slide 11: Affiliation in a nutshell
Affiliation in a nutshell 1 User finds Our Product 2 Lands in one 3 Sending traffic To partner 4 End user becomes customer of our Products Visits Leads Conversions Transaction Investors Presentation 2020 11
Slide 12: Affiliation explained: Visits
Affiliation explained 1 User finds Our Product Traffic Potential B2C user on internet. Visits To our products Players visiting affiliate sites often do so with a clear intention of playing online. Investors Presentation 2020 12
Slide 13: Affiliation explained: Leads
Affiliation explained 2 Lands in one Our Products of our Products Leads Leads to our partners Players use affiliate websites as it is a convenient way of finding the best offers and most suitable operator for them. Our business concept is to own, operate and develop high-quality digital brands for t
Slide 14: Affiliation explained: Conversions
Affiliation explained 3 Sending traffic To partner Deposits Conversions Conversions Acroud guides users to find the right operators through entertaining, transparent and safe digital products As soon as these users make a deposit with the iGaming operator, Acroud is paid. Investors Presentation 2020
Slide 15: Affiliation explained: Transaction
Affiliation explained 4 End user becomes customer Essential marketing channel The affiliate revenue model is tied to the acquisition of new players. Therefore affiliates offer operators a low risk marketing alternative with high and measurable ROI Transaction Low brand and market risk As the affilia
Slide 16: Diversified product offering across the iGaming value chain
Diversified product offering across the iGaming value chain. Share of Revenue Q3 2020 Sports Casino Poker Betting Other 73% 19% 5% 3% (76%) (14%) (8%) (2%) Segment includes Acroud’s Segment includes Acroud’s high Segment includes Acroud’s Segment includes Acroud’s affiliate high quality casino affil
Slide 17: Our Market
Our Market Endless possibilities for expansion Q3 2020 17
Slide 18: iGaming Market Breakdown
iGaming Market Breakdown Online vs. offline Geography Category Online Other (~10%) (~20%) Poker EUR ~400bn EUR ~26bn EUR ~27bn (~5%) Global gambling European iGaming Global online market market betting market Offline RoW Europe Betting Casino (~90%) (~50%) (~50%) (~50%) (~25%) Source: H2Gambling Cap
Slide 19: Substantial Consecutive growth
Global iGaming market Online share of total market Substantial ’2 4 E : 8 % 70 74 - Consecutive growth GR ’1 8 66 CA 60 In iGaming market 56 52 16% 47 15% 15% 43 14% 39 13% 13% 35 12% 3 % 32 11% 1 8 :1 ’ 11% ’0 3- 26 28 10% G R CA 22 23 9% 20 8% 18 15 16 7% 7% 7% 7% 12 6% 9 5% 5% 7 5% 4% EURbn 3% Gl
Slide 20: Substantial Consecutive growth: Underlying trends
Substantial Consecutive growth In iGaming market Global iGaming market Underlying trends Online share of total market 8 % 74 E: -’24 70 ’1 8 66 GR CA 60 • Shift from land-based to online 52 56 • Increasing smartphone and tablet penetration 16% 47 15% 15% 43 14% • Increased device capability 35 39 13
Slide 21: The Journey Ahead
The Journey Ahead How do we get there Investor Presentation Q3 2020 21
Slide 22: A challenger on a quest: Expansion Markets
Organic Growth Strategy US Emerging A challenger on a quest Expansion Markets Acroud owns a portfolio of US domains with high Acroud will have an opportunistic approach and mindset to potential such as Pokerlistings.com, CasinoTop10.net, invest and build in high growth markets. CasinoGuide.com and C
Slide 23: Focus, Ongoing Operative Initiatives, Revenue Streams
Less is more Diversification of Focus Ongoing Operative Initiatives Revenue Streams New Key Employees signed. Increased focus on execution Strengthened Key Account Team brining a focus on business and “doer mentality”. Allocating more resources to a development and new revenue streams. It’s not just
Slide 24: Strategic Repositioning
Strategic Sports Betting Repositioning Moving form few markets, single business model. To a diversified model with stronger focus on the US market and Sports Betting with multiple revenue streams High Low barriers barriers markets markets Casino and Poker 24
Slide 25: Two Acquisitions Adding strategic value
Two Acquisitions Adding strategic value AQ 1 • Sportbook • Emerging markets, fast growth • Competent team which will help grow the whole company sport book vertical AQ 2 • USA focused sports book • New business model direct to consumer • Long term positioning on US Marktet Summary • Taking strong st
Slide 26: Financial Details
Financial Details Investor Presentation Q3 2020 26
Slide 27: Revenue development and NDC development
The financials Revenue development NDC development indexed 120 4000 3567 3467 3500 3285 100 3191 3000 80 2376 2500 60 EUR 2000 1500 40 1000 20 500 0 0 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Previous sharp increase in poker and casino traffic has slowed to a l
Slide 28: Revenue splits
Ca The financials ino s Revenue splits Po e 73 ke or Sp Europ % r ts (76 be %) 19 tti rica % ng A m e (14 Nor th %) Ot 5% he r (8% r Othe ) 3% (2% ) Casino 73% (76%) Europe 60% (70%) Ve Poker 19% (14%) r t s Verticals Markets tic a r ke als M N. America 23% (17%) Sports Betting 5% (8%) Other 17% (15
Slide 29: Revenue diversification
The financials Revenue diversification 0% 1% 2% 2% 0% 1% 2% 1% 0% 0% 4% 5% Strategic Shift 17% 22% 12% 23% to Revenue Share 30% 30% 40% 35% Underlying trends 47% 60% 59% 64% 57% • Strategic shift from CPA to Rev Share stabilized 62% around 55-65%. Up from 60% in Q3’19 to 62% in Q3’20. 83% 77% 75% •
Slide 30: Cost base Development
The financials Cost base Development 2 500,00 2 000,00 1 500,00 Acroud cost base decreased last quarters and we are since Q3 reallocating costs towards marketing 1 000,00 costs such as content and link-building, which have a direct correlation to revenue development. 500,00 In connection with the st
Slide 31: EBITDA Development
The financials EBITDA Development 2 500 90 % 80 % 2 000 1 915 1 867 1 742 70 % 1 499 1 500 60 % 58 % 55 % Acroud operates with a continued high EBITDA 54 % 961 50 % margin +40%. EBITDA and margin development is 1 000 directly correlated to top-line decrease as cost 42 % 40 % base has decreased last
Slide 32: Financing and Gross Debt
3,2 2,8 2,7 2,8 2,5 The financials Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 35 908 Financing 30 293 23 612 24 549 23 749 and Gross Debt Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 The business model enables fast deleveraging through strong margins and high cash conversion (+80%). Net Debt to EBITDA expected to decrease
Slide 33: Cash Flow Development
Business model showing strong operative cash flow. Q320 lower due to temporarily top-line decrease EUR ’000 Q3’20 Q3’19 YTD20 YTD19 EBITDA 961 1 867 4 758 6 444 Non cash items -240 3 -436 -91 Change in NWC 17 -303 484 39 The financials Operating CF 738 1 567 4 806 6 392 Cash Flow CF from investments
Slide 34: Key Figures
JUL-SEP JAN-SEP kEUR 2020 2019 Y/Y% 2020 2019 Y/Y% Revenue 2 376 3 467 -31 % 9 133 11 017 -17 % Organic growth, % -30 % -33 % +3 p.e -20 % -23 % +3 p.e EBITDA 961 1 867 -49 % 4 199 6 444 -35 % EBITDA margin, % 40 % 54 % -14 p.e 46 % 58 % -12 p.e The financials Adjusted EBITDA 961 1 867 -49 % 4 758 6
Slide 35: Closing Comments
Closing Comments How do we get there? Investor Presentation Q3 2020 35
Slide 36: Closing Comments
Closing Comments • Fast moving and relevant • New management • New revenue streams • Strategic repositioning • Strong M&A pipeline • Shareholder value in focus • Strong Cash flow from operating activities Investor Presentation Q3 2020 36
Slide 37: Thank you
Thank you