Slide 1: Betsson AB Presentation Q4 and FY 2011
Betsson AB Presentation Q4 and FY 20I1 betssonS. Q4 and FY 201 Fourth quarter operating income increased by 35 pér CEO Magnus k Silverberg
Slide 2: Introduction
Introduction B2C – Business to Consumers B2B – Business to Business Financial Presentation Legal Update Events after Q4 Q&A
Slide 3: Introduction
Betsson AB Presentation Q4 and FY 20I1 betssonS. Introduction
Slide 4: Listed on Nasdaq OMX Nordic, Mid Cap (BETS)
412 employees + 169 full time consultants Listed on Nasdaq OMX Nordic, Mid Cap (BETS) Market Cap of approximately € 800 000 000 Betsson competes with national monopolies but also with peers, such as Unibet, Ladbrokes, Sportingbet, Bwin.party and similar
Slide 5: Proprietary Gaming Platform
Business to Consumers (B2C) Proprietary Gaming Platform Business to Business (B2B)
Slide 6: B2C - Business to Consumers
Betsson AB Presentation Q4 and FY 20l1 betsson$. — ~ a” = B2C - Business to Consumers
Slide 7: Betsson AB 20I1 betsson'S.
Betsson AB Presentation Q4 and FY 20I1 betsson'S. <= - Welcome = tanete bonus 3) ‘Le OO aad Sovryco Carino ‘= betsson q EXECU ODDS CASINO LIVE casi 109 milionet pa Mega Fortune! Varldens stérsta jackpott delades nyligen ut pa Betsson! MEGA \ FORTUNE -
Slide 8: Mobile technology, new licenses and Betsafe integration
In the mobile technology area, Betsson complemented its existing Livescore and Sportsbook apps with a Casino app during the fourth quarter Betsson predicts a high demand for mobile solutions and further launches are planned for the first quarter Betsson received a gaming license in Denmark during th
Slide 9: B2B - Business to Business
Betsson AB Presentation Q4 and FY 20I1 betssonS. B2B - Business to Business
Slide 10: Betsson AB 201] betsson
Betsson AB Presentation Q4 and FY 201] betsson NorgesAut@maten.com
Slide 11: B2B agreements and developments
B2B agreement has been The gaming solution The beta version of the signed during the quarter, offered through gaming site which has with Berlingske Media in Realm Entertainment been operating in Denmark continues to develop China has been evaluated, whereby positively Betsson has made the Management
Slide 12: Financial Presentation
Betsson AB Presentation Q4 and FY 20I1 betssonS. Financial Presentation
Slide 13: Q4 revenues and operating income
Revenues amounted to SEK 515.2 (484.3) million and the operating margin amounted to 33.4 percent (26.4 percent) Operating income amounted to SEK 172.3 (127.7) million, equivalent to an increase of 35 percent Earnings per Share SEK 4.01 (3.19) Numbers in gray = Q4 2010
Slide 14: Deposits and cash at end of period
Deposits in all of Betsson’s gaming solutions amounted to SEK 1 484.5 (1 104.5) million, which is ATH with an increase of 34 percent Cash by end of period SEK 509.7 million (497.1) Betsson has no outstanding interest- bearing liabilities Numbers in gray = Q4 2010
Slide 15: Full year revenues and operating income
Revenues increased by 8% to SEK 1 736.6 million (1 603.2) Operating income increased to SEK 559.7 million (380.6), equivalent to an increase of 47 percent Operating margin 32.2% (23.7) Earnings per Share SEK 13.12 (9.32) Numbers in gray = 2010
Slide 16: Dividend policy
According to dividend policy, 75 percent of profits shall be distributed to shareholders This is equivalent to a transfer to shareholders amounting to 9.40-9.60 (7.00) per share Automatic redemption process (more favorable than dividends) Numbers in gray = 2010
Slide 17: Revenue per quarter
M SEK 600 515.2 500 400 300 200 100 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 2005 2006 2007 2008 2009 2010 2011
Slide 18: Product and Geographical Split
BetssonAB Presentation Q4 and FY 201] betsson’S. Product and >) Geographical Split 7\
Slide 19: B2B and B2C split
31% B2B, Business to business B2C, Business to 69% consumers
Slide 20: Revenue by product per quarter
M SEK 500 450 20.9 400 24.8 350 97.2 300 Other 250 Poker 200 Sportsbook 150 Casino 100 290.4 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011
Slide 21: Product split
5% 6% Casino Sportsbook 22% Poker Other 67%
Slide 22: Geographical split
2% 18% Nordic Countries 0,3% Other Europe EU, outside Nordic region Rest of the world 80%
Slide 23: Key Performance Indicators
Betsson AB Presentation Q4 and FY 20I1 betssonS. Key Pertormance Indicators
Slide 24: Active customers
Thousand 450 403 600 400 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010 2011
Slide 25: Registered customers
Thousand 4 000 3 662 400 3 500 3 000 2 500 2 000 1 500 1 000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010 2011
Slide 26: Active customers in a longer perspective
Y/Y Q/Q Active Customers 34% 5% Registered Customers 16% 7% Revenue 6% 11% Customer Deposits* 34% 0% Gross Turnover SB* 15% 20% The measure Active Customers shall be seen in a longer perspective * Including all of Betsson’s gaming solutions
Slide 27: Gross turnover and margin SB
SEK million 2011 – Q4 2011 – Q4 3rd PARTY 2010 –Q4 2011 – FY SB SB Gross Turnover SB 590.1 1581.2 1894.1 2588.8 Gross Margin SB 6.4% n.a. 7.6% 6.9% Gross Profit 37.6 59.6 128.2 151.2
Slide 28: Legal Update
Betsson AB Presentation Q4 and FY 20l1 betsson$. Legal Update
Slide 29: Italy, Denmark and US regulation
Italy’s now implemented cash games decree enables licensed operators to add cash poker and casino games to their tournament games Betsson has been granted a license Denmark’s new regulation has been approved and was implemented on January 1, 2012. Betsson has been granted a license Continued discuss
Slide 30: Netherlands, Sweden and Germany regulation
The Dutch government plans to grant local licences for internet gaming during 2012. It is still very early but the Dutch authorities seem determined to reregulate the market in the near future There are some calls for a new regulation but we don’t know if there are such plans from the government. So
Slide 31: Events after Q4
BetssonAB Presentation Q4 and FY 2011 betsson$. Events after Q4
Slide 32: Activity level and events after the quarter
The activity level going into the first quarter is stable, with revenues in line with the average revenue level in the fourth quarter On 19 January, Betsson received a gaming license for the Italian market On 23 January, the title of ”Online Sportsbook Operator of the Year” was bestowed on Betsson b
Slide 33: Betsson AB 20]1 betsson'$.
Betsson AB Presentation Q4 and FY 20]1 betsson'$.