Slide 1: Q4 2021
Q4 2021 Pontus Lindwall, President & CEO Betsson AB Martin Öhman, CFO Betsson AB
Slide 2: Outline
OUTLINE ▪ Highlights ▪ Progress during the quarter ▪ Financials ▪ Trading update ▪ Regulatory update Pontus Lindwall Martin Öhman CEO, Betsson AB CFO, Betsson AB ▪ Summary ▪ Q&A 2
Slide 3: Q4 Highlights
Q4 HIGHLIGHTS ATH REVENUE EBIT SPORTSBOOK MARGIN REVENUE SEK 1.6b 13% -11% -10% YoY YoY SPORTSBOOK EBIT TURNOVER SEK 211m +16% ACTIVE -34% YoY CASINO YoY ORGANIC EBIT CUSTOMERS REVENUE 1 161 683 -9% SEK 288m +17% YoY YoY -9% YoY GROWTH 3
Slide 4: 2021 Highlights
Total distribution SEK 539m 2021 HIGHLIGHTS ATH REVENUE EBIT SPORTSBOOK MARGIN REVENUE SEK 6.7b 18% +23% +4% YoY YoY CASINO SPORTSBOOK REVENUE EBIT TURNOVER -1% SEK 1.2b +26% YoY +6% YoY YoY 4
Slide 5: The Betsson strategy supports growth
THE BETSSON STRATEGY SUPPORTS GROWTH VISION Deliver the best customer experience in the gaming industry MISSION AMBITION Be a long-term, leading Be a customer-centric gaming company online gaming company that sustainably outgrows the market EXISTING MARKETS NEW MARKETS B2B M&A TALENTED PEOPLE QUALIT
Slide 6: Existing markets – the backbone of Betsson
EXISTING MARKETS – THE BACKBONE OF BETSSON EXISTING MARKETS NEW MARKETS B2B M&A • A selection of marketing activities: • Preparations to launch the fourth season of “Fimpens resa”, with more than 7 million views to date • Xmas Calendar Campaigns in all CEECA markets • Betsafe Lithuanian Basketball L
Slide 7: High activity on new markets
HIGH ACTIVITY ON NEW MARKETS EXISTING MARKETS NEW MARKETS B2B M&A • Betsson has launched its online gambling offer in Argentina (Q1,2022) • Partnering with Casino de Victoria, a leading land- based Argentinian • Sponsorship of operator and part of Betsson Super League Grupo Mautone 2, and AEK Athens
Slide 8: Substantial progress in LatAm in 2021
SUBSTANTIAL PROGRESS IN LATAM IN 2021 EXISTING MARKETS NEW MARKETS B2B M&A — Service hub established in Bogota, Colombia — Acquired a proprietary technology platform for LatAm payments — Acquired Inkabet, a leading operator in the western part of the region — Partnered with Big Bola Casinos in Mexic
Slide 9: LatAm continues to show strong development
LATAM CONTINUES TO SHOW STRONG DEVELOPMENT EXISTING NEW MARKETS B2B M&A MARKETS Revenue SEKm 263 249 248 LatAm region growing at a continued strong pace reaching ATH in Q4 2021 172 142 136 94 85 69 67 19 47 55 43 50 62 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2
Slide 10: CEECA region shows ATH driven by casino
CEECA REGION SHOWS ATH DRIVEN BY CASINO EXISTING NEW MARKETS B2B M&A MARKETS 268 Revenue SEK m CAGR The region as well as most countries 12% within the region reported ATH revenue for a single quarter Croatia and Greece showed continued positive trends in activity and revenue performance Q1 18 Q2 18
Slide 11: US launch in Colorado in Q1
US LAUNCH IN COLORADO IN Q1 EXISTING MARKETS NEW MARKETS B2B M&A — Preparation progressing according to plan — Testing and objective assessment of the B2C product — GLI33-certification for Colorado — Betsson’s sportsbook integrated in the Strive platform — Recruitment of key positions in place — Lau
Slide 12: Innovation supporting growth
INNOVATION SUPPORTING GROWTH Strengthened user experience 231 casino games were • Improved login and deposit released, 14 of which came • Launch of The Million Game Leader board with a period of exclusivity for • New version of Smartbanners our brands Focus on developing native apps for multiple mar
Slide 13: Sustainability framework
SUSTAINABILITY FRAMEWORK Mapping of UN Sustainability Goals 13
Slide 14: Responsible gaming KPIs
RESPONSIBLE GAMING KPIs 81,738 1.2% interactions with of customer service customers contacts raised red flags Seleced KPIs measured on a quartely basis 12.3 % 37.8 % of customers use non- of NDCs set a mandatory RG tools deposit limit 14
Slide 15: Updated: Responsible gaming prediction tool
UPDATED: RESPONSIBLE GAMING PREDICTION TOOL — Increased number of parameters used 500+ for monitoring customer gaming 100000 90000 behaviour 80000 — Customers gaming patterns are 70000 classified as low, medium or high risk 60000 50000 — Real time monitoring + Daily reports + Detailed analysis 40000
Slide 16: Selected activities during Q4
SELECTED ACTIVITIES DURING Q4 BUSINESS KYC platform for vendors COMPLIANCE Software allows corporate, financial, AML, Sanctions and Adverse Media checks on third entities, their directors, and employees. EMPLOYEE Annual Employee Survey IMPACT 88% 88% of employees are proud to work at Betsson 88% wou
Slide 17: Financials
FINANCIALS betsson cb
Slide 18: Development and KPIs
DEVELOPMENT AND KPIs Active customers increased Deposits increased to by 17% to 1,161,683 MSEK 7,945.5 Sportsbook turnover increased Casino revenue by 16% YoY with a margin of 6.0% decreased by 9% YoY Sportsbook revenue down 11% YoY Mobile revenue: 79% of total Mobile revenue: 80% of total casino re
Slide 19: Revenue development by region
REVENUE DEVELOPMENT BY REGION -10% 48 262 54 88 MSEK 1763 1595 Revenue Q4'20 Nordics Western Europe CEECA RoW Revenue Q4'21 19
Slide 20: EBIT development YoY
EBIT DEVELOPMENT YOY -34% Organic EBIT EBIT EBIT Margin Margin Margin 18.0% 13.2% 17.7% 77 MSEK 168 16 50 18 44 318 288 211 Q4 20 EBIT Revenues Cost of Services Marketing Personnel Other Costs Q4 21 EBIT FX and M&A Q4 21 organic EBIT Sold Expenses Expenses effects 20
Slide 21: Cash flow & financial position
CASH FLOW & FINANCIAL POSITION — Operating cash flow SEK m Q4 2021 Q4 2020 — Negative effect on working capital is mainly driven by increased Payment providers balances Operating cash flow 134.4 233.9 — Investments — Driven by investments in own development and the Cash flow from investing -299.4 -1
Slide 22: Proposal on distribution after strong 2021
PROPOSAL ON DISTRIBUTION AFTER STRONG 2021 The total distribution through the automatic 2021 Revenue redemption process will be of SEK 6.7b SEK 539.0m (502.9) DISTRIBUTION The Board of Directors proposes to the AGM a 2021 EBIT distribution (per share) of 2021 SEK 1,194m SEK 3.94 (3.68) In line with
Slide 23: Q1 2022 trading update
Q1 2022 TRADING UPDATE* Average daily revenue until 3 February was 4.2% higher than the average daily revenue of the full Q1 2021 Q1 Adjusted for currency effects average daily revenue was 8.8% higher than the average daily revenue of the full Q1 2021 * This trading update is an indication of how th
Slide 24: Regulatory update
REGULATORY UPDATE betsson cb
Slide 25: Regulatory update
REGULATORY UPDATE NORWAY FINLAND SWEDEN GEORGIA LITHUANIA A proposal on a new The Finnish The temporary Covid Increased taxes for A proposal on Gambling Act remains parliament decided triggered restrictions online casinos, ban on increasing online under deliberation. on marketing on online gambling
Slide 26: Summary Q4
SUMMARY Q4 ▪ Strong full year 2021 ▪ Record year in terms of revenue ▪ Result matching record result in 2018 ▪ Healthy result in the quarter given the challenging start ▪ RoW and CEECA delivering strong growth ▪ Solid outlook for 2022 ▪ US operations on track to launch in Q1 2022 ▪ Recent launch in
Slide 27: Thank you
betsson ab THANK YOU TIME FOR Q&A