Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Q4 2021 Earnings Presentation
37 slides from Gentoo Media's earnings presentation, Feb 15, 2022
Slide 1: Gaming Innovation Group Inc. Q4 2021 Interim Report
Q4 2021 Gaming Innovation Group Inc. Interim Report + 15 Feb 2022 GiG
Slide 2: Today's Presenters
Q4 2021 - Interim Report Today’s Presenters Richard Brown Tore Formo CEO Group CFO 2
Slide 3: GiG in brief
GiG in brief Mission “To drive sustainable growth and profitability of our partners through product innovation, scalable technology and quality of service.” Dual-listed on Oslo Børs and at Nasdaq Stockholm ~470 Over 25 primary countries Employees targeted by Media assets €190m (approx.) Market Cap O
Slide 4: End to end iGaming solutions based on innovative technology
End to end iGaming solutions based on innovative technology GiG focusing strategy on ambition to become global Tier 1 B2B provider. GiG’s strategy is centered on three customer focused business areas, which is key to be a relevant supplier, supported by its group ambition for top performance and ope
Slide 5: 2021 - strongest performance to date
Q4 2021 - Interim Report 2021 - strongest performance to date Revenues* (MEUR) EBITDA (MEUR) EBIT (MEUR) Revenues* EBITDA EBIT +28% Y/Y +93% Y/Y +181% Y/Y *Revenues are adjusted for revenues from a platform client where GiG recognizes the full operations in its profit and loss statement, which are p
Slide 6: All time high quarterly revenues
Q4 2021 - Interim Report All time high quarterly revenues Revenues* (MEUR) EBITDA (MEUR) EBIT (MEUR) Revenues* EBITDA EBIT +29% Y/Y +35% Y/Y +€1.9m Y/Y *Revenues are adjusted for revenues from a platform client where GiG recognizes the full operations in its profit and loss statement, which are part
Slide 7: Key takeaways Q4 2021
Q4 2021 - Interim Report Key takeaways Q4 2021 ● Continued positive development with significant YoY growth ● Media delivered all-time highs on revenue, EBITDA and FTDs ● Signed two new agreements for platform provision in the quarter ● Two brands went live on the platform in Q4, two more in dev com
Slide 8: Strategic Update - Q4
Q4 2021 - Interim Report Strategic Update - Q4 8
Slide 9: Media
Q4 2021 - Interim Report Media securing future revenues ● 95% of FTD’s have revenue share component ● ~60% of revenue from revenue share Growth via recurring 01 revenue share ● In addition to growth, rev. share acts to increase diversity and sustainability of earnings ● Strong focus on marketing tec
Slide 10: Platform
Q4 2021 - Interim Report Platform Pushing forward on long term growth drivers ● Successful transition to SaaS only clients Contract sales and 01 and shutdown of White Label model SaaS revenue client onboardings ● 9 new contracts in 2021 (ex. GiG/Betsson ● 8 project completions (up 60%) brands) Brand
Slide 11: GiG's strategic approach to sustainability
Q4 2021 - Interim Report GiG’s strategic approach to sustainability Fair and safe iGaming Information security Responsible marketing ● Good health and wellbeing ● Anti-money laundering ● IT security ● Upholding advertising Gender equality Responsible gaming standards ● ● ● Data and privacy protectio
Slide 12: GiG acquiring Sportnco
Q4 2021 - Interim Report GiG acquiring Sportnco 12
Slide 13: GiG acquiring Sportnco
Q4 2021 - Interim Report GiG acquiring Sportnco ● GiG has entered into a SPA to acquire 100% of Sportnco Gaming SAS ● Sportnco, a high quality B2B supplier, operates proprietary Tier 1 Sportsbook and PAM in 11 regulated markets worldwide with 5 in progress ● Initial consideration is EUR 50.8 million
Slide 14: Strategic rationale
Q4 2021 - Interim Report Strategic rationale Cross selling and cost synergies Platform Sportsbook Media Group ● Increased scale ● Proven Tier 1 ● New markets ● Increased value Cost synergies sportsbook and customers proposition ● GiG expects approximately EUR 2-3m in operational ● Increased where Me
Slide 15: Portfolio of clients across Europe, US and LATAM
Q4 2021 - Interim Report Portfolio of clients across Europe, US and LATAM Sportnco B2B clients • Sportnco has an international portfolio of 30+ clients • Strong footprint in high growth markets of LATAM and Southern Europe which also have high barrier to entry • Live with US focus product with Super
Slide 16: Increasing market access in highly regulated growth jurisdictions
Q4 2021 - Interim Report Increasing market access in highly regulated growth jurisdictions ● Regulation creates barriers to entry for new market participants, favouring already established 35 players such as GiG and Sportnco ● GiG currently has 14 market certifications with 5 in progress 25 ● Sportn
Slide 17: Doubling short and long term addressable market
Q4 2021 - Interim Report Doubling short and long term addressable market North America South America Europe GiG SnC SnC & GiG Note: 1) Duplicate certifications in: Argentina, Malta and Spain. 17
Slide 18: Through the acquisition of Sportnco, GiG's addressable market in the US increases
Through the acquisition of Sportnco, GiG’s addressable market in the US increases significantly and GiG’s customer offering is improved State Online casino Online SB1 US regulatory status overview Arizona ✓ The online penetration on the US gambling market is low despite high digital adoption due to
Slide 19: Business update Media
Q4 2021 - Interim Report Business update Media 19
Slide 20: Media Services - FY 2021
Q4 2021 - Interim Report Media Services Revenue & EBITDA (MEUR) Media Services - FY 2021 Revenue EBITDA ● Full year revenues of €45m, up 31% from 2020, all organic growth ● EBITDA ended at €20.7M, a 18% increase ● 198k FTDs generated in 2021, up 57% from 2020 ● Positive impact of product development
Slide 21: Media Services - Q4 2021
Media Services Revenue & EBITDA (MEUR) Revenue Media Services - Q4 2021 EBITDA ● Media services reached all-time quarterly highs in revenues, EBITDA and FTDs ● Revenues of €12.8m, up 42% YoY and 14% QoQ ● EBITDA ended at €5.7m, up 34% YoY and 13% QoQ ● Positive developments driven by both growth in
Slide 22: Media Services - FTDs
Q4 2021 - Interim Report Media Services - FTDs (1000) Split between publishing and paid Publishing Media Services - FTDs Paid ● First Time Depositors (FTD) ended at 60,600 in Q4, a new ATH and a 82% increase YoY and 30% QoQ ● Publishing delivered 21% YoY and 8% QoQ FTDs growth ● Paid saw 244% YoY FT
Slide 23: Business update Platform
Q4 2021 - Interim Report Business update Platform 23
Slide 24: Platform Services - 2021
Platform Services Revenue split (MEUR) SaaS and Platform Services - 2021 other revenue White labels ● Full year revenues were €21.4m (18.9) in 2021, a 13% increase YoY ● EBITDA of €1.4m (-2.5) with a 6% EBITDA margin ● Last white label client terminated in 2021, revenues excl. WL increased 42% YoY ●
Slide 25: Platform Services - Q4 2021
Q4 2021 - Interim Report Platform Services Revenue & EBITDA (MEUR) Platform Services - Q4 2021 Revenue EBITDA ● Revenues* for Platform Services were €5.3m (4.9) in Q4 2021, an 8% increase YoY ● Positive EBITDA, ended at €0.2m (0.2) ● Adjusting for white-labels, revenues increased by 22% YoY ● Implem
Slide 26: Client and Market Expansion Driving Future Growth
Q4 2021 - Interim Report New Client Project Completions Client and Market Expansion Driving Future Growth 2019 • 8 new client projects completed in 2021, 2 dev 2020 complete year-end 2021, both live as of today • 25 SaaS brands live on the platform today, up from 18 2021 in Q4 2020 • SaaS contracts
Slide 27: Events after the quarter & summary
Q4 2021 - Interim Report Events after the quarter & summary 27
Slide 28: Update after the quarter
Q4 2021 - Interim Report Update after the quarter ● Signed an extension to the long-term agreement with Betsson Group - taking the term of the contract to Q4 2025 ● Sales pipeline remains strong and builds momentum ● Two new brands live so far in 2022 ● Revenues in January were up 20% vs same period
Slide 29: GiG's Long-term Financial targets
Q4 2021 - Interim Report GiG’s Long-term Financial targets Growth Profitability Leverage To deliver annual double digit To achieve an EBITDA margin Cash generated from the organic revenue growth in excess of 40% by 2025 business will be used to lower leverage ratio while pursuing growth opportunitie
Slide 30: Summary
Q4 2021 - Interim Report Summary “ ● GiG delivers all-time-high revenues, with strong double digit growth in revenues, EBITDA and EBIT ● Media business performs exceptionally well reaching all-time highs both Ready to accelerate financially and in operational KPI’s while it continue to launch into n
Slide 31: Q&A
Q&A
Slide 32: Appendix
Q4 2021 - Interim Report Appendix 32
Slide 33: Largest shareholders: January 2021
Q4 2021 - Interim Report Largest shareholders: 31 January 2021 GAMING INNOVATION GROUP INC. 1 7 603 559 7.9 % Optimus Invest Limited 2 6 296 198 6.5 % Myrlid AS 3 4 896 125 5.1 % True Value Limited 4 4 876 829 5.0 % Nordea Livsförsäkring Sverige AB 5 3 646 256 3.8 % Swedbank Robur Ny Teknik 6 3 117
Slide 34: Income Statement
Q4 2021 - Interim Report Income Statement EUR 1 000 (Unaudited) B2C included as discontinued operations Q4 2021 Q4 2020 2021 2020 Revenues* 18 166 14 130 66 762 52 164 Cost of sales 93 97 471 392 Gross profit 18 073 14 033 66 291 51 772 Marketing expenses 3 446 1 792 11 208 6 612 Other operating exp
Slide 35: Balance Sheet
Q4 2021 - Interim Report Balance Sheet EUR 1 000 (unaudited) B2C included as discontinued operations 31 Dec 2021 31 Dec 2020 Assets Goodwill 16 325 16 287 Intangibles assets 31 732 33 012 Deposits and other non-current assets 13 481 16 637 Total non-current assets 61 539 65 936 Trade and other recei
Slide 36: Cash Flow
Q4 2021 - Interim Report Cash Flow In EUR 1 000 B2C included as discontinued operations Q4 2021 Q4 2020 2021 2020 Cash flow from operating activities 1 238 -189 12 592 17 700 Cash flow from investing activities -2 327 -1 429 -9 228 14 613 Cash flow from financing activities -1 500 7 302 -6 323 -25 1
Slide 37: Legal Disclaimer
Legal Disclaimer Gaming Innovation Group Inc. gives forecasts. Certain statements in this report presentation are forward-looking and the actual outcome may be materially different. In addition to the factors discussed, other factors could have an impact on actual outcomes. Such factors include deve
Gaming Innovation Group — Q4 2021 Earnings Presentation on 6ix