Bragg Gaming Group Inc. · TSX:BRAG
Bragg Gaming — FY2021 Earnings Presentation
31 slides from Bragg Gaming's earnings presentation, March 2022
Slide 1: Fourth Quarter & Full Year 2021 Results Presentation
Fourth Quarter & Full Year 2021 Results Presentation March 2022 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") which are based upon Bragg Gaming Group Inc.'s (the "Bragg") current internal expectations, estimates, projections, assumptions an
Slide 3: Table of Contents
Table of Contents • Bragg Overview • Operational & Strategic Highlights • Business Performance Q4 & Full Year 2021 • Product Strategies • M&A, Licensing & New Markets • Financials & Guidance • Outlook & Conclusion 3
Slide 4: Bragg Overview
Bragg Overview 4
Slide 5: About Bragg
About Bragg Bragg is a fast-growing vertically integrated global business-to-business gaming content and technology group Dual-listed on the Nasdaq and the Toronto Stock Exchange 286 Proprietary iGaming Platform Employees & Content Studios Offices 140+ Operational and licensed in Toronto, Las Vegas,
Slide 6: Bragg's Products & Services
Bragg’s Products & Services Bragg offers platform technology, content and services to online and omni-channel casino brands in regulated markets globally Technology Content Services ü Player Account Management (PAM) platform ü Games from proprietary studios including ü Managed operational and market
Slide 7: Operational & Strategic Highlights
Operational & Strategic Highlights 7
Slide 8: Highlights: Fourth Quarter 2021
Highlights: Fourth Quarter 2021 Strong growth driven by new market strategy and ongoing content and platform expansion Fourth Quarter Strong Financial Performance • Q4 2021 revenue rises 14.4% to €15.8 million (€13.8 million in Q4 2020) • Q4 2021 Adjusted EBITDA rises 15.4% to €1.5 million (€1.3 mil
Slide 9: Highlights: Full Year 2021
Highlights: Full Year 2021 A transformative year in operations, M&A, and capital markets strategy Financial Performance • FY 2021 revenue rises 25.6% to €58.3 million (€46.4 million in FY 2020) • FY 2021 Adjusted EBITDA rises 30% to €7.2 million (€5.5 million in FY 2020) • Gross profit margins incre
Slide 10: Business Performance
Business Performance 10
Slide 11: Underlying Q4 2021 Business Performance Ahead of Expectations
Underlying Q4 2021 Business Performance Ahead of Expectations Total Q4 2021 revenue performance and Bragg Q4 2021 reported revenue was 22.1% above management expectations underlying revenue (including German regulated) was ahead of company expectations 15.8 22.1% or €2.9m ahead Total 12.9 of group e
Slide 12: Underlying Business Performance to Accelerate FY 2022 Growth & Beyond
Underlying Business Performance to Accelerate FY 2022 Growth & Beyond Q4 revenue run rate materially Bragg Revenue Split including Germany Q1 - Q4 2021 (€ millions) ahead of company expectations ‣ Accelerated new 2021 business Underlying business revenue (up by 500% from Q3 to Q4) Rolling into FY 20
Slide 13: Product Strategies
Product Strategies 13
Slide 14: Content Strategy
Content Strategy A rich portfolio of casino games from in-house and partner studios Bragg’s Proprietary Studios Exclusive 3rd Party Games Aggregated Portfolio • Fully owned in-house games studios1 • 3rd party studios who offer games via our RGS for • Thousands of online games titles from scores of •
Slide 15: Content Case Study
Content Case Study Brand-new in-house studio: Atomic Slot Lab • Q2 2021: Bragg acquired Wild Streak Gaming and appointed founder Doug Fallon as Group Director of Content • Q3 2021: Atomic Slot Lab established, a new games studio with a mission to forge a new generation of online casino games • Each
Slide 16: iGaming Platform Strategy
iGaming Platform Strategy PAM deployment enables stable, long-term growth • Player Account Management (PAM) iGaming platforms are chosen carefully by online casino brands, who typically look for a partner to power their casino for 5+ years • Online casinos taking Bragg’s PAM are more likely to be st
Slide 17: PAM Case Study: The Netherlands
PAM Case Study: The Netherlands Agile deployment for high impact market entry • Early 2021: Secures deals with several local casino and sports betting brands to supply our PAM in anticipation of market opening • August 2021: Following bespoke development to comply with local regulations, Bragg’s PAM
Slide 18: Continued Growth Complemented by Substantial Margin Expansion
Continued Growth Complemented by Substantial Margin Expansion AEBITDA Margin AEBITDA Margin AEBITDA Margin 11.9% 12.4% 25.0% Proprietary Content Proprietary Content 100% Margin 100% Margin Agg. Agg. Agg. Proprietary 3rd Party Platform 3rd Party 3rd Party Content Royalty 100% Margin Royalty Royalty 1
Slide 19: M&A, Licensing & New Markets
M&A, Licensing & New Markets 19
Slide 20: Spin Games Update
Spin Games Update Acquisition announced May 2021; expected to close Q2 2022, subject to final regulatory approval Spin Overview Quick Facts2 Established U.S. B2B online casino RGS1 and 5 Licensed Jurisdictions NJ, PA, MI, CT & BC 35+ Proprietary games content aggregation service provider built on pr
Slide 21: Licensing and New Markets
Licensing and New Markets Bragg Continues to Roll Out Its Content and Technology in New Regulated Markets in Europe, North America and Globally New Licenses and Recent Market Entries in Europe • Q4 2021 / October: high impact launch of PAM and content in newly regulated market in the Netherlands • Q
Slide 22: Roadmap of Expanding Market Opportunity
Roadmap of Expanding Market Opportunity Bragg’s addressable market continues to expand rapidly as online gaming companies grow aggressively and land-based gaming companies look to migrate online Bragg expects to enter North America in 2022 • United States: $5.8 billion market1 RoW • Canada: $1.6 bil
Slide 23: Financials & Guidance
Financials & Guidance 23
Slide 24: Q4-21 Financial Results
Q4-21 Financial Results Q4 2021 Financial Highlights1 Historical Financial Overview Customers Wagering (€’b) ‣ Revenue increased by 14.4% to €15.8m 160 4 .5 4.2 ‣ Wagering generated by customers down by 8.8% to €3.1B, reflecting 133 143 3.8 140 125 4 .0 changes to product mix with more revenue from
Slide 25: Q4-21 Gross Profit Expansion - Operational Model
Q4-21 Gross Profit Expansion - Operational Model Q4 2021 Gross Profit Highlights Revenue and Gross Profit Margins ‣ Gross profit margins in growth trajectory since Q2 20 and scaling up in 18.0 60% line with the changes of the product mix ‣ PAM, managed services and proprietary content products are f
Slide 26: Q4-21 EBITDA Reconciliation
Q4-21 EBITDA Reconciliation Reconciliation Operating Loss (Income) to Adj. EBITDA (1) Share based payments: awards to new directors and management in Q1and Q3 2021 composed of DSUs Year Ended December 31, and RSUs. EUR 000 2021 2020 Operating loss (6,492) (11,896) (2) Transaction and acquisition cos
Slide 27: Working Capital and Balance Sheet
Working Capital and Balance Sheet Balance sheet and net working capital Cash flow and financial resources As at December 31, As at December 31, Year Ended December 31, EUR 000 2021 2020 EUR 000 2021 2020 Cash and cash equivalents 16,006 26,102 Operating activities -41 6,729 Current assets 10,952 10,
Slide 28: 2022 Full Year Revenue & Adjusted EBITDA Guidance
2022 Full Year Revenue & Adjusted EBITDA Guidance 2022 FY Revenue Guidance set at €68m to €72m; 2022 FY Adjusted EBITDA set at €9.5m to €10.5m FY 2022 Revenue €68m - €72m Mid point of €70m FY 2021 German Reg. Effect New Markets & Clients New Clients Market growth 2021 pipeline Acquistion FY2022 ‣ Ge
Slide 29: Outlook & Conclusion
Outlook & Conclusion 29
Slide 30: Outlook & Conclusion
Outlook & Conclusion 1 Strong Q4 performance leading to updated FY 2022 revenue & AEBITDA guidance 2 Robust and scalable PAM supported by growing proprietary content portfolio 3 Expanding TAM driven by offline-to-online transition in casino gaming 4 Increasing gross profit and ABEITDA margins with l
Slide 31: Thank you
@ BRAGG Thank you