Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q1 2021 Earnings Presentation
25 slides from Betsson Ab Class B's earnings presentation, 2021
Slide 1: Q1 2021
Q1 2021 Pontus Lindwall, President & CEO Betsson AB Martin Öhman, CFO Betsson AB
Slide 2: Outline
OUTLINE Highlights Operational update Financials Trading update Pontus Lindwall Martin Öhman Regulation CEO, Betsson AB CFO, Betsson AB Summary Q&A 2
Slide 3: Q1 Highlights
Q1 HIGHLIGHTS ATH REVENUES EBIT SPORTSBOOK MARGIN REVENUE SEK 1.6b +2% +12% YoY EBIT 17% SPORTSBOOK YoY GROWTH GROWTH TURNOVER SEK 276m +28% +6% YoY CASINO GROWTH REVENUE YoY GROWTH +16% YoY GROWTH 3
Slide 4: Operational Update
OPERATIONAL UPDATE betsson ab
Slide 5: 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 6: Existing Markets
EXISTING MARKETS EXISTING MARKETS NEW MARKETS B2B M&A Betsafe.ee moved to new platform Betsson received license in Germany providing a dynamic site with the latest for online sport betting Sportsbook offerings in Estonia 6
Slide 7: New Markets
NEW MARKETS EXISTING MARKETS NEW MARKETS B2B M&A Launched Fantasy Sport Betsson is expanding into Establishing service hub in in Brazil. several LatAm markets Bogota to support expansion including our latest in the region Brand awareness activities partnership with Big Bola & customer database build
Slide 8: New Markets
NEW MARKETS EXISTING MARKETS NEW MARKETS B2B M&A Sponsorship of Peru’s Sponsorship of Chile’s Sponsorship of Chile’s National premier league, Liga 1 second division league, Football Team, La Roja Primera B 8
Slide 9: Strategic Investments and Collaborations
STRATEGIC INVESTMENTS AND COLLABORATIONS EXISTING MARKETS NEW MARKETS B2B M&A —Strategic investment - 6.5 MUSD invested in strategic venture with TG Lab to encompass technology, IP and market expertise - Investment in software company to provide efficient payment solutions for LatAm region —Strategi
Slide 10: B2B and Sportsbook Development
B2B AND SPORTSBOOK DEVELOPMENT EXISTING MARKETS NEW MARKETS B2B M&A B2B development - Betsson has a long history of B2B operations - Profound experience and knowledge of how to run B2B business - We know how to work and what to do - B2B organisation is scaling up, US project engage 120 people - Ex
Slide 11: US Entry
US ENTRY EXISTING MARKETS NEW MARKETS B2B M&A Development - Still early days, more states opening up & more operators entering - The US market will become the worlds largest gaming market within short - B2B set up will enable us to address a large part of that market - Tailoring our SB to be US fr
Slide 12: Innovation Supporting Growth
INNOVATION SUPPORTING GROWTH SAMPLE OF TECH DEVELOPMENT Adding games to PlayTech integration native iOS apps decrease dependence Tool for optimising Time- on one single Live to-Market for efficient Casino provider adaptations in new market entrances Several brands moving to the cloud for enhanced Av
Slide 13: Updated Sustainability Framework
UPDATED SUSTAINABILITY FRAMEWORK SUSTAINABILITY FRAMEWORK EMPLOYEE SOCIAL CLIMATE IMPACT IMPACT IMPACT Best workplace in Positive impact where Fighting climate the industry we operate change RESPONSIBLE GAMING A healthy relationship to gaming BUSINESS COMPLIANCE Conducting a responsible and transpar
Slide 14: Responsible Gaming KPIs
RESPONSIBLE GAMING KPIs 77,987 1.7% interactions with of customer service customers contacts raised red flags Seleced KPIs measured on a quartely basis 13.1% 31.9% of customers use non- of NDCs set a mandatory RG tools deposit limit 14
Slide 15: Selected Activities During Q1
SELECTED ACTIVITIES DURING Q1 86% of employees feel the ”Betsson spirit” despite working from home EMPLOYEE IMPACT 96% of employees believe they can work efficiently from home 92% business perspective of employees believe that Betsson is handling the pandemic well from a Science based target Betsson
Slide 16: Financials
FINANCIALS betsson ab
Slide 17: 5Y Revenue Development and KPIs
5Y REVENUE DEVELOPMENT AND KPIs msek 1 800 1 620 1 440 1 260 1 080 900 720 540 360 180 -00 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 Revenues Active customers increased Casino revenu
Slide 18: Revenue Development by Region
REVENUE DEVELOPMENT BY REGION +12% 78 116 4 23 1593 MSEK 1418 Revenue Q1'20 Nordics Western Europe CEECA RoW Revenue Q1'21 Regions 18
Slide 19: EBIT Development YoY
EBIT DEVELOPMENT YOY 83 EBIT EBIT 175 37 Margin Margin 20 18.4% 19 17.3% MSEK 261 276 Q1 20 EBIT Revenues Cost of Services Sold Marketing Expenses Personnel Expenses Other Costs Q1 21 EBIT 19
Slide 20: Cash Flow & Financial Position
CASH FLOW & FINANCIAL POSITION SEK m Q1 2021 Q1 2020 — Operating cash flow — Mainly driven by operating income Operating cash flow 328 322 — Impacting from working capital close to zero, decrease in Receivables on payment providers offset by increased Prepaid expenses and decreased Other Cash flow f
Slide 21: Q2 2021 Trading Update
Q2 2021 TRADING UPDATE* Average daily revenue until 25 April was 12% higher than the average daily revenue of the full Q2 2020 Q2 Adjusted for negative currency effects average daily revenue was 24% higher than the average daily revenue of the full Q2 2020 * This trading update is an indication of h
Slide 22: Regulatory Update
REGULATORY UPDATE betsson ab
Slide 23: Regulatory Update
REGULATORY UPDATE DENMARK SWEDEN FINLAND NETHERLANDS KENYA Gaming tax increased Temporary The Ministry of KSA has clarified that Further extension of from 20% to 28%. restrictions on online Interior has launched once the player has the temporary casino introduced by a project to reform completed the
Slide 24: Summary Q1
SUMMARY Q1 Focus on growth - Expansion into new markets, primarily in LatAm - Scaling up the B2B organisation - Strategic investments/partnerships - Investments in Sportsbook for the US market Earnings and financial position allow us to execute the growth strategy Investments in technology to
Slide 25: Thank You
betsson ab THANK YOU TIME FOR Q&A