Kambi Group Plc Class B · OMXSTO:KAMBI
Kambi Group Plc Class B — Q4 2021 Earnings Presentation
22 slides from Kambi Group Plc Class B's earnings presentation, Feb 11, 2022
Slide 1: Kambi Group plc Q4 2021 Report
Kambi Group plc Q4 2021 Report 11 February 2022 1
Slide 2: Agenda
Agenda 1. Highlights 2. Financial highlights 3. Kambi 2021 in review 4. Strategic pillars 5. Partner signings & launches 6. Events after Q4 7. Summary 8. Q&A Q4 Report – 11 February 2022 2 CEO Kristian Nylén & CFO David Kenyon
Slide 3: Highlights
Highlights Strong financial performance despite tough headwinds Ability to repay convertible bond at own discretion and extended partnership with Kindred until end of 2026 Illustrated market-leading position with five partner signings 20% Q4 2021 in North America operating margin Obtained mobile bet
Slide 4: Q4 financial highlights
Q4 financial highlights €34.9m €7.1m 20.2% Revenue Operating profit Operating margin Q4 2021 Q4 2021 Q4 2021 Q4 2020: Q4 2020: Q4 2020: €46.9m €22.2m 47.3% Q4 Report – 11 February 2022 4 CEO Kristian Nylén & CFO David Kenyon
Slide 5: Full year financial highlights
Full year financial highlights €162.4m €57.0m 35.1% Revenue Operating margin 2021 Operating profit Q4 2021 2021 FY 2020: FY 2020: FY 2020: €32.2m €117.7m 27.4% Q4 Report – 11 February 2022 5 CEO Kristian Nylén & CFO David Kenyon
Slide 6: Operator trading analysis
Operator trading analysis Kambi operators' turnover and trading margin 1100 1056 12.0% 989 1000 11.0% 911 900 10.0% 800 758 9.0% 700 669 8.0% 600 560 573 7.0% 505 500 6.0% 398 412 387 400 369 5.0% 334 307 300 273 259 4.0% 200 3.0% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 20
Slide 7: Kambi revenue conversion
Kambi revenue conversion Q4 2021 vs Q4 2020 0% -10% -20% -30% -40% -50% Operator Turnover Growth* FX impact Operator margin impact Taxes/marketing deductibles impact Other ** Kambi Revenue Growth * Operator turnover growth shown is based on Q4 2020 exchange rates ** Other includes the impact of volu
Slide 8: Balance sheet
Balance sheet Strong balance sheet, perfectly positioned to support both organic and acquisitive growth €79.6m €4.8m €12.0m Cash Cash inflow Share buybacks Q4 2021 completed Q4 Report – 11 February 2022 8 CEO Kristian Nylén & CFO David Kenyon
Slide 9: Kambi 2021 in review
Kambi 2021 in review A transformative year for the business Recorded 38% rise in Acquired esports data and Signed eight new partners full-year revenue odds provider Abios across the globe Completed 60+ on-property Euro 2020 set turnover record for Maryland became 18th US state in and online launches
Slide 10: Strategy update
Strategy update Key pillars Sportsbook success and value creation Technically advanced Differentiation and Power of Highly scalable core platform to empowerment the network business model enable growth Enabling a broad range of Leveraging unique Signing and launching new Delivering regulatory, partn
Slide 11: Evolving service to widen appeal
Technically advanced core platform to enable growth Evolving service to widen appeal Creating opportunities through modularisation − Kambi’s turnkey sportsbook is delivering considerable growth for partners around the world − To address a larger part of the market Kambi is in the process of modulari
Slide 12: Continued expansion in regulated markets across the globe
Highly scalable business model Continued expansion in regulated markets across the globe US Latin America Europe Australia 18 Became the first Began RWWA Expanded US reach into Launched with BetCity provider to launch in sportsbook roll-out Connecticut, Louisiana and JVH in re-regulated Buenos Aires
Slide 13: North America product excellence
North America product excellence A market-leading sports betting offering − A market-leading product in key areas: including in-event combinations and in-play − Bet Builder provides greater coverage and multi-event capabilities compared to competitor products − First to launch multi-event combinabil
Slide 14: Bet Builder – ahead of the competition
North America product excellence Bet Builder – ahead of the competition Kambi FanDuel DraftKings Bet Builders as a 25% proportion Same game Bet Builder available Player props available NFL Multi-game Bet Builder available of all pre-game NFL Market-leading Bet Builder paybacks wagers Same game Bet B
Slide 15: Q4 new partner wins
Q4 new partner wins Further strengthening Kambi’s position in the US market • The largest tribal gaming • Multi-channel partnership with • Owner of iconic US-facing Daily operator in Arizona leading tribal operator Racing Form brand • Recently completed online and • To go live online and on-property
Slide 16: New York
New York Kambi now live online in largest US market − In Q4, Kambi was awarded a 10-year Mobile Sports Wagering Platform licence in New York State − Kambi’s bid as a primary applicant achieved the highest score from the regulator − With a population of more than 20 million, New York is the largest U
Slide 17: Netherlands
Netherlands Live with two partners in re-regulated market − Re-regulated Netherlands online market launched on 1 October 2021 with 10 initial licensees − Kambi partner BetCity launched on day one of the market going live, shortly followed by JVH gaming & entertainment − Impressive early performance
Slide 18: Events after Q4: Two significant partner wins in North America
Events after Q4 Two significant partner wins in North America • MaximBet is operated by Carousel Group and • Partnership extends Kambi’s North America reach partnered with renowned media brand Maxim into Canadian market • Currently live with in-house platform in Colorado and • NorthStar was born out
Slide 19: Events after Q4: A promising new chapter with Kindred Group
Events after Q4 A promising new chapter with Kindred Group − Contract extension agreed with long-term partner Kindred up to the end of 2026 − Kambi will remain an integral part of Kindred’s sportsbook − In addition, Kambi decides when to repay convertible bond previously issued to Kindred − Extended
Slide 20: Summary
Summary Strong quarterly Growing global presence Full control over performance rounds off with market-leading strategic direction record financial year product Q4 Report – 11 February 2022 20 CEO Kristian Nylén & CFO David Kenyon
Slide 21: Q&A
Q&A kambi.com 21
Slide 22: Thank you
Thank you kambi.com 22