Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Q3 2017 Earnings Presentation
30 slides from Gentoo Media's earnings presentation, Nov 2, 2017
Slide 1: Gaming Innovation Group Q3 2017
Gaming Innovation Group Q3 2017 2 November 2017 Robin Reed, CEO Tore Formo, CFO
Slide 2: An iGaming technology and entertainment provider
An iGaming technology and entertainment provider ( r | Platform @ isamne crow Recurring royalties and flat Services | Sports Sain, Margin on Bets placed ~ Xv . ° ( Cr Sf d | Lead generation GiG Commissonon refer e y canine WNOVATION GROUP ia \ or _ Supertenny (GUTS Consumer brands bo Margin on Bets
Slide 3: Creating a leading iGaming company
Creating a leading iGaming company Revenues in EUR million 23.1 21.5 14.5 9.7 19 6.4 : LJ Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 26.6
Slide 4: Highlights Q3 2017
Highlights Q3 2017 All time high revenues of EUR 30.8 million, EBITDA increasing to EUR 3.0 million e GIG Cloud services Growing 44% over Q2 17 Letter of intent (LOI) signed with major casino operator ° GIG Media Concluding two major acquisitions - expanding to paid media All time high first time de
Slide 5: Financial highlights Q3 2017
Financial highlights Q3 2017 REVENUES COST OF SALES |MARKETING EXPENSES | OTHER OPEX €30.8M | €5.0M €12.0M | €10.9M (16% Q/Q) (6% Q/Q) (8% Q/Q) (23% Q/Q) (112% Y/Y] (99% Y/Y) (132% Y/Y} (87% Y/Y) EBITDA €3.0M 1.9M (Q2 17) 1.1M (Q3 16)
Slide 6: Operational update
Operational update Services
Slide 7: B2B Services
B2B Services EUR million mRevenues SEBITDA » Alltime high B2B revenues, up 171% Y/Y and 36% Q/Q - Y/Y organic growth of 93% aan a Foe Poe Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 ® icamine cLouo Jf Database 3.2 billion 2.8 billion ( ; ) transaction sper sa) | | Lead generation GiG | 21 456 *FTD’s: Fi
Slide 8: Financial performance Services
Financial performance Services Platform Sports Lead generation EUR million EUR million EUR million 63 5.1 Lh 4.5 3.5 28 0.7 3.2 3.0 24 0.2 0.3 i 02 28 18 2.0 a =-= a ee 23 22 : 1.8 03 0102 -0.2 0.2 15 os u | 0.3 0.2 . = U | l 12 Q32016 Q42016 Q12017 Q22017 Q32017 Q32016 Q42016 Q12017 Q22017 32017 Q3
Slide 9: Lead generation update and KPI's
Lead generation update and KPI's Number of referred First Time Depositors 29 049 e Revenues of EUR 6.3 million in Q3 17 - Y/Y revenue growth of 177% 21 456 - Q/Q revenue growth of 45% « Number of *FTD’s up 202% Y/Y and 35% Q/Q over uae ° 74% of revenues from revenue share (Q2 78%), 2 620 26% from CP
Slide 10: Platform update and KPI's
Platform update and KPI's iGaming Cloud (iGC) revenue development EUR million 44% quarterly growth rate 5.1 3.5 2.8 2.4 1.8 1.4 1.2 1.2 0.6 01 03 on Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 e All 7 GIG operators integrated on the platform e 44 brands signed to the platform - 1 new bran
Slide 11: Sports services roadmap and KPI's
Sports services roadmap and KPI's otling) (9GUTS Obtained Class 4 ¢ GIG pursuing an end-to-end sportsbook Remote Gaming Expect launch of . . Fronvend paint wemezsremi sts strategy, controlling all technology in-house us ‘Authority for operators to tailor BatingCoud made their offering - Aiming to se
Slide 12: Operational update Gaming
Operational update Gaming
Slide 13: B2C Gaming
B2C Gaming EUR million m=Revenues = EBITDA » Revenues up 93% Y/Y and 8% Q/Q ws 202 219 17.9 = Pro-forma, organic, sequential growth in 114 underlying core markets of 22% Up front marketing driving losses, 1s “0.4 — = ; = profitability expected in Q1 2018 Q3 2016 Q4 2016 Qi oir” 2.2017 , 03 2017 : Of
Slide 14: B2C market update
B2C market update e Launched TV campaigns in Central Europe in September Regulatory changes in UK slowing down market growth « Core markets 95% of revenues, up from 86% in Q2 17 Adjusted for markets exited in Q2 17, pro forma growth of 22% from Q2 17 to Q3 17 Revenues in EUR million excluding closed
Slide 15: Majority of marketing expenses front-loaded
Majority of marketing expenses front-loaded Marketing spend vs B2C EBITDA margin « Up-front marketing investment of EUR 8.2 million in Q3 [EUR 7.4m in Q2) - Revenue share agreements of EUR 3.8 million (EUR 3.7 million in Q2) « Up-front marketing expensed in the quarter, yielding long-term lifetime v
Slide 16: Financial update
Financial update
Slide 17: Strong underlying EBITDA Growth
Strong underlying EBITDA Growth EUR million mRevenues EBITDA mEBITDA excluded up-front marketing 30.8 26.6 23.1 21.5 14.5 11.3 99 7.6 72 4d 3.9 3.0 rr | 19 aa = | -0.4 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 “*Betlt included from 1 September 2016 (Contributing with EUR 2.7 million in Q3 2016) e All
Slide 18: 12 months rolling EBITDA
12 months rolling EBITDA EURmillion 9 8 7 6 Q3 2015 19 Q4 2015 -1.8 Q12016 §=6Q22016 §=— 3. 2016 = 42016 = Q1: 2017 s=12 months rolling group EBITDA EBITDA margin Q2 2017 Q3 2017 e Rapid growth and 12 months rolling EBITDA in the 8-11% range e Scalability in GIG’s business model can improve margins
Slide 19: Cash Flow development
Cash Flow development EUR 1000 2204 25195 24 671 25 747 Cash flow from investment activities Cash flow from equivalents at 30 June operating activities 2017 Cash and cash Cash and cash equivalents at 30 September 2017 Cash flow from financing activities e Positive cash flow from operations of EUR 2.
Slide 20: Assets, Equity and liabilities
EUR million 220 200 180 160 140 120 100 80 60 40 20 0 Assets Equity and liabilities
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Slide 22: Outlook
Outlook e Expecting total revenues to be around EUR 120 million for 2017, now including acquisitions ° Services - Focus on vertical growth - Compliance and certification in new markets - Introduction of proprietary odds - Implementing Rebel Penguin from Q4 ° Gaming - Launch of Highroller.com In Nove
Slide 23: Q&A
Q&A 4th quarter 2017 13.02.2018
Slide 24: Appendix
Appendix
Slide 25: Largest shareholders
Largest shareholders Shareholder #shares % Bryggen Holding AS 118 178 394 13.2% Optimizer Invest Ltd. 103 373 297 11.5% Swedbank Robur Ny Teknik 80 275 000 9.0% Super Innovative Limited (Robin Reed) 64 464 272 7.2% Hans Michael Hansen 50 104 461 5.6% Frode Fagerli 38 574516 43% Skandinaviska Enskild
Slide 26: Share performance since May 2015
Share performance since May 2015 0 May 15 Aug 15 Nov 15 Feb 16 May 16 Aug 16 Nov 16 Feb 17 May 17 Aug 17 Nov 27.05.15: Changed the ticker on OSE to "GIG" Source: Oslo Bors
Slide 27: Income statement
Income statement Condensed Statements of Operations in EUR 1 000 (Unaudited) Q3 2017 Q3 2016 9M 2016 9M 2016 2016 Revenues 30841 14533 80.494 32110 53 605 Cost of sales 4959 2495 14.005 5 233 9-285 Gross profit 25 882 12038 66 489 26877 44 320 Gross profit margin 84% 83% 83% 84% 83% Marketing expens
Slide 28: Cash flow
Cash flow In EUR 1 000 Q3 2017 Q3 2016 9M 2017 9M 2016 2016 Cash flow from operating activities 2204 2679 11.419 1806 2221 Cash flow from investment activities -26 428 968 -50 894 -3 240 -5 061 Cash flow from financing activities 24 671 1341 59 619 7503 7052 Translation gain 110 221 -1725 18 -200 Fa
Slide 29: Balance sheet
Balance sheet Condensed Balance Sheet in EUR 1 000 (Unaudited) 30.09.17 30.09.16 2016 Assets Goodwill 68 498 56 805 63.955 Intangibles and other non-current assets 100 780 45016 43 638 Total non-current assets 169 278 101 821 107 593 Other current assets 17052 11049 12 680 Cash and cash equivalents
Slide 30: Organizational structure and management team
Organizational structure and management team Group CFO Log smn A) Robin Reed Co-founder of GIG. Previously Morten Hillestad e 500+ employees CEO of Guts 15 years experience from performance marketing Tore Formo 25 years financial experience e Low churn Fi * 120 employees have options : CFO Malta »|
Gaming Innovation Group — Q3 2017 Earnings Presentation on 6ix