Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q2 2021 Earnings Presentation
23 slides from Betsson Ab Class B's earnings presentation, Jul 22, 2021
Slide 1: Q2 2021
Q2 2021 Pontus Lindwall, President & CEO Betsson AB Martin Öhman, CFO Betsson AB
Slide 2: Outline
OUTLINE ▪ Highlights ▪ Operational update and strategic initiatives ▪ Financials ▪ Trading update ▪ Regulatory update Pontus Lindwall Martin Öhman ▪ Summary CEO, Betsson AB CFO, Betsson AB ▪ Q&A 2
Slide 3: Q2 Highlights
Q2 HIGHLIGHTS ATH ATH REVENUES EBIT SPORTSBOOK MARGIN REVENUE SEK 1.8b 22% +125% +14% YoY YoY GROWTH GROWTH ATH EBIT SPORTSBOOK TURNOVER SEK 383m +73% ATH ACTIVE +76% YoY CUSTOMERS GROWTH CASINO YoY GROWTH REVENUE 1 027 635 -5% +25% YoY GROWTH YoY GROWTH 3
Slide 4: 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 5: New Markets
NEW MARKETS EXISTING MARKETS NEW MARKETS B2B M&A Regional official sponsor • Messi‘s celebrating on winning Copa America with a Betsson background reached over 10m viewers • NDCs increased by 382% YoY in June and 113% increase between May and June • Impact of more recreational customers compared to
Slide 6: New Markets
NEW MARKETS EXISTING MARKETS NEW MARKETS B2B M&A Operations in Greece launched offering sportsbook. Casino, slots, and poker to be launched shortly Betsson expanded its presence in Eastern Europe through the establishment in the Republic of Belarus 6
Slide 7: Strategic Investments and Collaborations
STRATEGIC INVESTMENTS AND COLLABORATIONS EXISTING MARKETS NEW MARKETS B2B M&A - Strategic investments — 6.5 MUSD invested in strategic venture to acquire a 35% stake in Strive encompassing technology, IP and market expertise — Betsson acquired 50% of the shares in the software development company JD
Slide 8: Betsson US Timeline
BETSSON US TIMELINE EXISTING MARKETS NEW MARKETS B2B M&A Contacts with potential prospects 2019 Continuous research Early B2B US Announcement compliance & requirements, Start of US specific SB research of Colorado product readiness development 2020 May 2020 June 2020 July – October 2020 November - D
Slide 9: Betsson & Strive Commercial Opportunities
BETSSON & STRIVE COMMERCIAL OPPORTUNITIES EXISTING MARKETS NEW MARKETS B2B M&A Sportsbook Deals Sales Team Prospects Platform Deals Sales Team Prospects (PAM) Deals 9
Slide 10: Innovation Supporting Growth
INNOVATION SUPPORTING GROWTH SAMPLE OF TECH DEVELOPMENT Adding games to native iOS apps New offerings developed 240 casino games were released, in connection to Euro 2020 14 of which came with a Period of & Copa América Exclusivity for our brands Continued move to cloud Betsson Greece launched solut
Slide 11: Sustainability Framework
SUSTAINABILITY FRAMEWORK 11
Slide 12: Responsible Gaming KPIs
RESPONSIBLE GAMING KPIs 76,025 1.0% interactions with of customer service customers contacts raised red flags Seleced KPIs measured on a quartely basis 11.0% 30.3% of customers use non- of NDCs set a mandatory RG tools deposit limit 12
Slide 13: Selected Activities During Q2
SELECTED ACTIVITIES DURING Q2 Leadership training: Lead Remotely for all people EMPLOYEE managers IMPACT 2+3 days 98% Hybrid working from home found the content Football-related model relevant and actionable employee activities Science based target Betsson’s climate targets approved CLIMATE IMPACT S
Slide 14: Financials
FINANCIALS betsson ab
Slide 15: 5Y Revenue Development and KPIs
5Y REVENUE DEVELOPMENT AND KPIs msek 2000 1800 1600 1400 1200 1000 800 600 400 200 0 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 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 21 Active customers increased Casino revenue decreased Sportsbook turnover increased by 25% to ATH
Slide 16: Revenue Development by Region
REVENUE DEVELOPMENT BY REGION +14% 163 65 147 138 1752 MSEK 1533 Revenue Q2'20 Nordics Western Europe CEECA RoW Revenue Q2'21 Regions 16
Slide 17: EBIT Development YoY
EBIT DEVELOPMENT YOY Organic +76% EBIT Margin EBIT 27.2% Margin 21.9% 4 95 66 EBIT 28 44 Margin 219 14.2% MSEK 478 383 218 Q2 20 EBIT Revenues Cost of Services Marketing Personnel Other Costs Q2 21 EBIT FX and M&A Q2 21 organic Sold Expenses Expenses effects EBIT 17
Slide 18: Cash Flow & Financial Position
CASH FLOW & FINANCIAL POSITION SEK m Q2 2021 Q2 2020 — Operating cash flow — Positive effect on working capital mainly driven by collection of a VAT receivable Operating cash flow 571 344 — Investments Cash flow from investing -198 -389 — Driven by investments in Betsson’s proprietary activities tec
Slide 19: Q3 2021 Trading Update
Q3 2021 TRADING UPDATE* Average daily revenue until 17 July was 1.7% higher than the average daily revenue of the full Q3 2020 Q3 Adjusted for negative currency effects average daily revenue was 8.1% higher than the average daily revenue of the full Q3 2020 * This trading update is an indication of
Slide 20: Regulatory Update
REGULATORY UPDATE betsson ab
Slide 21: Regulatory Update
REGULATORY UPDATE SWEDEN FINLAND MALTA GREECE KENYA The Administrative The Finnish The FATF has “grey- In May, Betsson was In July, Kenya Court in Sweden has government intends listed” Malta, granted two licences introduced an excise overruled the Swedish to change the gaming requiring enhanced in G
Slide 22: Summary Q2
SUMMARY Q2 ▪ Been able to reach all time high in: ▪ EBIT ▪ Active customers ▪ Sportsbook revenue ▪ Driven by our stable and scalable business model ▪ Expansion and increased customer base in LatAm after the CONMEBOL Copa América sponsorship ▪ Launch in Greece and Belarus paving way for further expan
Slide 23: Thank You
betsson ab THANK YOU TIME FOR Q&A