Slide 1: Q3 2017
Q3 2017 Pontus Lindwall CEO Betsson AB
Slide 2: Highlights Q3
HIGHLIGHTS Q3 — Revenues increased 11% — Organic growth was 2% — Continued growth in casino — Increase in active customers (+20%) — Actions in place to improve growth — Continued roll-out of new mobile sportsbook — OBG on apps and desktop — Focus on efficient operations Sponsorship of Conor McGregor
Slide 3: Financial Summary Q3
FINANCIAL SUMMARY Q3 — Revenue increased by 11% SEK m Q3 2017 Q3 2016 Change FY 2016 — Strong growth in Western Europe Revenue 1,181 1,063 11% 4,117 — Continued growth in Casino — Sportsbook gross turnover is growing in Gross profit 859 807 6% 3,078 constant currency Gross margin 72.7% 75.9% - 74.8%
Slide 4: Impact of Currency and Acquisitions
IMPACT OF CURRENCY AND ACQUISITIONS Q3 2017, excl. Impact from acquisitions and Currency Q3 2017 acquisitions the Q3 2017 Q3 2016 SEK million currency effects effect Organic last 12 months Reported Reported Revenue 1,121.1 -32.4 1,088.7 +91.9 1,180.6 1,063.3 Revenue growth 5.4% 2.4% 11.0% 9.3% Opera
Slide 5: Revenue Mix Impacts Operating Income
REVENUE MIX IMPACTS OPERATING INCOME Q3 2015 Q3 2016 Q3 2017 16% 19% 25% Share of revenue 16% 13% 8% 68% 67% 68% Locally taxed Realm Other Locally taxed Realm Other Locally taxed Realm Other — Licences: 5 markets — Licences: 8 markets — Licences: 11 markets — Betting duties: SEK 23 m — Betting dutie
Slide 6: Revenue by Region
REVENUE BY REGION — The Nordic market remains competitive 3% — Western Europe growth driven by acquisitions and organic casino growth 19% — CEECA revenue impacted by currency 48% headwind Nordic — Improved product offering — Underlying business in Realm stable Western Europe CEECA RoW 30% 6
Slide 7: Strong Growth from Western Europe
STRONG GROWTH FROM WESTERN EUROPE SEKm +11% 137 8 8 ( 36) 1,063 1,181 CEECA Nordics Other Revenue Q3 '17 Revenue Q3 '16 Western Europe Growth 1% Growth 63% Growth -14% Growth 26% 7
Slide 8: Casino Growth Continues
CASINO GROWTH CONTINUES — Casino +19% Y/Y, organic +12% Casino revenue — Casino growth driven by new mobile web +19% casino and live casino 877 871 — Mobile casino growth +63% Y/Y 824 823 — New Live casino studio launched together 732 with Evolution gaming 657 684 669 683 SEK m — Roll-out of OBG fro
Slide 9: Roll-out of New Mobile Sportsbook
ROLL-OUT OF NEW MOBILE SPORTSBOOK Sportsbook, Gross turnover — Sportsbook -8% Y/Y 8 000 10% — Sportsbook turnover SEK 5.4 bn (5.5) 7 000 6 000 8% 5 000 — Decline in TRY had SEK 557 m negative 6% SEK m 4 000 impact on turnover 3 000 2 000 4% 2% 1 000 — Sportsbook margin at 7.1% (7.6) 0 0% Q3 Q4 Q1 Q2
Slide 10: Strong Underlying Activity
STRONG UNDERLYING ACTIVITY Active customers Deposits 700 4000 600 500 3000 400 SEK m 000’s 300 2000 200 1000 100 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 20
Slide 11: Regulatory Update
REGULATORY UPDATE — Re-regulation of the Swedish gambling market — New regulation expected 2019 — Re-regulation of gambling market in the Netherlands — New Dutch Government aiming for re- regulation July 2019 — Betsson monitoring developments to ensure compliance with EU law 2004 2011 2012 2015 2016
Slide 12: Focus Going Forward
FOCUS GOING FORWARD — Quarter started well — Actions to improve growth — Continue to strengthen product offering — Increased focus on efficient operations Entertainer Måns Zelmerlöw is brand ambassador for Betsson. 12
Slide 13: Betsson AB
betsson ab