Slide 1: Presentation Q4 2014
Presentation Q4 2014 Q4 2014 Fourth quarter revenues grew 24%
Slide 2: Q4 2014 Highlights
Q4 2014 Highlights Revenue +24% ATH Operating income +68% ATH Gross turnover, Sportsbook +24% ATH Deposits +32% ATH Betsson upgraded to Nasdaq Stockholm Large Cap
Slide 3: Business Update
Presentation Q4 2014 BUSINESS UPDATE
Slide 4: Multi brand strategy
Multi brand strategy Business to Consumers (B2C)) Proprietary Gaming Business to Business (B2B) Platform
Slide 5: Nordicbet.com to Techsson
Nordicbet.com to Techsson Revenue allocation after migration 25% Techsson Platform Other Platforms 75% More than doubled live betting offer Live streaming offer +4 times Improved customer experience
Slide 6: Case study - Betsson.com
Case study - Betsson.com Betsson.com grew 28 percent (Q4 2014) Migrated to Techsson Q2 2013 Significant improvements o One to one messaging o Different & improved offerings (e.g. Betsson Classics, Mega Fortune Dreams) o New Casino Lobby o Wider mobile offerings o Improved customer experience
Slide 7: Operational excellence
Excellence in Customer Service @a
Slide 8: Mobile first
Mobile first 23 percent of total revenues in Q4. A growth of 130 percent Release of apps for MrSmith Casino and Rush Football Release of new mobile web for NordicBet
Slide 9: Mobile first – Development
Mobile first – Development SEK m +130% 200 25% 180 160 20% 140 120 15% 100 80 10% 60 40 5% 20 0 0% Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 Mobile Revenue % of total Revenue
Slide 10: Mobile Sportsbook Turnover
Mobile Sportsbook Turnover 50% 45% 43% 40% 40% 35% 30% 30% 25% 21% 21% 20% 20% 15% 10% 5% 0% Q3 Q4 Q1 Q2 Q3 Q4 2013 2014
Slide 11: Q4 Oranje & Kroon
Q4 Oranje & Kroon SEK 89.9 million in revenues and SEK 53.9 million in EBIT EBIT margin of 60% Organic growth of 29% Substantial growth opportunities after the regulation in the Netherlands (nearly 40% is expected)* *Source: H2 Gambling Capital, GamblingData
Slide 12: Financial Highlights
PRESENTATION Q4 2014 FINANCIAL HIGHLIGHTS
Slide 13: Q4 Financial highlights
Q4 Financial highlights Revenues of SEK 814.7 (655.5) million (ATH) Total growth of 24 percent Organic growth amounted to 11 percent Figures in brackets refer to the same period last year
Slide 14: Q4 Financial highlights
Q4 Financial highlights EBIT of SEK 252.5 (150.0) million, a growth of 68 percent EBIT margin of 31.0 percent (22.9 percent) EBIT, adjusted for non-recurring items, of SEK 217.8 million, a growth of 45 percent Figures in brackets refer to the same period last year
Slide 15: Q4 Financial highlights
Q4 Financial highlights Cash by end of period SEK 478.1 million (562.5) Earnings per Share SEK 5.28 (3.24) Full year (2014) distributable earnings SEK 732.4 million Board proposes dividend per Share SEK 11.94
Slide 16: Revenues, 24% growth
Revenues, 24% growth SEK m 900 814.7 800 700 600 500 400 300 200 100 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 17: Product and Geographical Split
Presentation Q4 2014 PRODUCT AND GEOGRAPHICAL SPLIT
Slide 18: Gross profit per segment
Gross profit per segment 23.8% (24.1%) B2B, Business to business B2C, Business 76.2% to consumers (75.9%) Figures in brackets refer to the same period last year
Slide 19: Gross profit per product
Gross profit per product 1.7% (2.3%) Casino 26.6% Poker (26.7%) Sportsbook 2.9% 68.8% (4.6%) (66.4%) Other Figures in brackets refer to the same period last year
Slide 20: Gross profit per geography (B2C)
Gross profit per geography (B2C) 1.0% (0.5%) Nordic Region 27.1% Other Europe (14.0%) 71.5% EU, outside Nordic region 0.3% (84.9%) (0.6%) Rest of the world Figures in brackets refer to the same period last year
Slide 21: Key Performance Indicators
Presentation Q4 2014 KEY PERFORMANCE INDICATORS
Slide 22: Sportsbook
Sportsbook SEK m 6000 +24% 9% 8% 5000 7% 4000 6% 5% 3000 4% 2000 3% 2% 1000 1% 0 0% Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 Gross turnover Margin after free bets (%)
Slide 23: Deposits – 32% growth
Deposits – 32% growth SEK m 3 500 2 977.1 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 2010 2011 2012 2013 2014
Slide 24: Active customers
Active customers Stabilized overall figure Thousand 600 500 390.7 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014
Slide 25: Registered customers
Registered customers Thousand 9 000 7 732.4 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014
Slide 26: Legal Update
Presentation Q4 2014 LEGAL UPDATE
Slide 27: Legal update
Legal update Sweden The new government has expressed an interest in a re- regulation and is investigating different models Current government is predicting a new regulation during 2018 The European Commission will act against Sweden (through European Court of Justice), but a court timetable is not s
Slide 28: Legal update
Legal update United Kingdom Betsson has received a transitional license and is preparation to attain a full license. This is expected to occur before end of March 2015 In parallel, we are evaluating the commercial potential of the market The Netherlands The proposed new Dutch legislation is still in
Slide 29: Events after Q4
Presentation Q4 2014 EVENTS AFTER Q4
Slide 30: Events after end of the period
Events after end of the period The first quarter of 2015 has started with revenues somewhat above average level of the previous quarter January 1st 2015, Betsson was upgraded to Nasdaq Stockholm Large Cap Kroon was migrated to Techsson platform (completed February 3rd) There have been no other signi
Slide 31: Q&A
Presentation Q4 2014 betsson cab Q&A
Slide 32: Appendix
Presentation Q4 2014 Appendix
Slide 33: One-off effects in Q4
One-off effects in Q4 Accounting effects derived from the NGG 2014 process (SEK m) Q4 Interest income +5.4 NGG accounting effect +38.3 EBIT effect SEK +34.7 million Advisors’ fees -3.6 Income before tax (EBT effect) +40.1 Adjusted EBIT 217.8 Adjusted EBT 216.5
Slide 34: Full year effects (2014)
Full year effects (2014) 2014 Calculation of dividend (SEK m) (Full year) Net income (after tax) 770.67 NGG accounting effect -38.30 Distributable earnings 732.37 Dividend policy 75% Nr. of shares (excl. C shares) 46.02 Dividend per share (SEK) 11.94