Slide 1: Q4 2017 Results – Outline
Henrik Tjärnström CEO Q4 2017 14 February 2018 • Financial results Outline • Business overview • Summary © Kindred Group plc 2018 2 1
Slide 2: European gambling market
© Kindred Group plc 2018 3 European gambling market (incl lotteries) EURbn CAGR 2015-2020 2.6% 110 100 90 Online 80 70 60 50 40 Offline 30 20 10 0 2010 2011 2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e Source: H2GC Dec 2017 © Kindred Group plc 2018 4 2
Slide 3: Kindred's share of the European online market
Kindred’s share of the European online market CAGR 2011-2017 EURbn Online 12.2% | Kindred 26.3% 40 3.9% 35 30 Market share 25 20 1.9% 15 10 5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e Source: H2GC Dec 2017 © Kindred Group plc 2018 5 European gamb
Slide 4: Financial results
Financial results © Kindred Group plc 2018 7 Q4 2017 “ A strong finish to 2017 resulted in another record quarter for revenue and profit” 8 © Kindred Group plc 2018 4
Slide 5: Key Report Highlights Q4 2017
Q4 2017 Key Report Highlights Gross Earnings Free Cash Active winnings EBITDA per share Flow customers revenue GBP 238.0 m GBP 73.8 m GBP 0.223 GBP 59.3 m 1,329,124 (+56%) (+90%) (+73%) (+142%) (+16%) © Kindred Group plc 2018 9 Gross winnings revenue GBPm 751.4 238.0 544.1 152.8 193.6 354.1 312.0 Q4
Slide 6: Gross winnings revenue from mobile and FX impact
Gross winnings revenue from mobile GBPm +55% 180 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 © Kindred Group plc 2018 11 Q4 2017 P&L FX impact v Q4 2016 Avg rate Q4 2016 Q4 2017 Movement SEK 11.236 11.043 1.7% NOK 10.40 10.837 -4
Slide 7: Geographic balance and other costs analysis
Geographic balance – Key Report Highlights Q4 2017 GWR as reported GWR in Organic GWR in in GBP constant currency constant currency Nordics +23% +24% +24% Western Europe +86% +83% +60% © Kindred Group plc 2018 13 Other Costs analysis Excl. Non-recurring items 2013 2014 2015 2016 2017 2017 GBPm FY FY
Slide 8: EBITDA and EPS development
EBITDA – Excl 2014 Kambi one-off item GBPm 180.3 73.8 120.7 38.9 75.5 77.0 46.6 Q4 63.4 52.5 18.4 26.2 33.1 Q3 21.7 17.4 30.5 21.1 Q2 14.0 19.0 21.3 27.6 29.4 Q1 14.4 2012 2013 2014 2015 2016 2017 © Kindred Group plc 2018 15 EPS development – Excl 2014 one-off items GBP 0.55 0.516 0.50 0.45 0.40 0.3
Slide 9: Proposed cash dividend
Proposed cash dividend • The Board has reviewed the projected cash requirements for 2018 • Proposing for this year to increase the dividend above 50 per cent of free cash • This is in line with the dividend policy to distribute surplus cash GBP 0.551 (0.310) per share/SDR equivalent to SEK 6.16 +78%
Slide 10: 32Red Q4 highlights and active customers
32Red Q4 highlights • All-time high in revenue and profit • GWR contribution: GBP 18.8m • Underlying EBITDA contribution: GBP 3.2m • Record number of active depositing players • Move of 32Red employees to Kindred Gibraltar office scheduled for March 2018 • Preparation for the migration to the Kindre
Slide 11: Sports betting gross margin and product & geographic balance
Sports betting gross margin Combined Before free bets After free bets 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR 2011 2012 2013 2014 2015 2016 2017 © Kindred Group plc 2018 21 Product & geographic
Slide 12: Netherlands update
Netherlands update Coalition (4 parties) government agreement announced on 10 October 2017 – Online gambling reform will be continued • Voting in the Senate anticipated for Q2 2018 • Secondary legislation yet to be published and consulted on • Regulator counting on market opening in Q2 2019 © Kindre
Slide 13: New racing platform and Romania launch
New racing platform • A cutting edge UK racing client for mobile and desktop based on best practices • Launching in Australia later this year © Kindred Group plc 2018 25 Launched in Romania in February © Kindred Group plc 2018 26 13
Slide 14: Summary Q4 2017
Summary Q4 2017 • Strong finish to 2017 • ATH for all metrics • GWR + 56% • EBITDA +90% • EPS +73% • FCF +142% • Shows how adaptive the business is © Kindred Group plc 2018 27 © Kindred Group plc 2018 28 14
Slide 15: Contact and calendar
Contact Calendar 25 April 2018 Investor Relations Q1 will be published at 7.30 CET Inga Lundberg 15 May 2018 +44 788 799 6116 AGM ir@kindredgroup.com 25 July 2018 Q2 will be published at 7.30 CET 26 Oct 2018 Q3 will be published at 7.30 CET 15