Betsson Ab Class B · OMXSTO:BETS_B

Betsson Ab Class B — Q3 2016 Earnings Presentation

20 slides from Betsson Ab Class B's earnings presentation, 2016

1. Slide 1: Presentation Q3 2016

   PRESENTATION Q3 2016 JANUARY - SEPTEMBER Ulrik Bengtsson CEO & President

2. Slide 2: Snapshot Q3 2016

   SNAPSHOT Q3 2016 Q3 Q3 FY  Record high revenue SEK m 2016 2015 Change 2015  Record high EBIT Revenue 1,063.3 972.9 9.3% 3,722.0  Q2 challenges largely temporary EBIT 272.9 260.2 4.9% 886.4  Performance also illustrates scalability EBIT margin 25.7% 26.7% - 23.8%  Investments in products are dri

3. Slide 3: Key Performance Indicators

   PRESENTATION Q3 2016 KEY PERFORMANCE BUSINESS UPDATE INDICATORS

4. Slide 4: Key Financial Data

   KEY FINANCIAL DATA Revenue EBIT 1 200 300 1 000 250 800 200 SEK m SEK m 600 150 400 100 200 50 0 0 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016  Revenue SEK 1,063.3 m  EBIT: SEK 272.9m  Y-o-Y growth 9.3%  EBIT margin: 25.7% despite changed  Strong sportsbook m

5. Slide 5: Active Players & Deposit

   ACTIVE PLAYERS & DEPOSIT Active players Deposits 600 4 000 3 500 500 3 000 400 2 500 SEK M 000’s 300 2 000 1 500 200 1 000 100 500 0 0 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016  Active players increased  Deposits increased 8.8% y-o-y 4.7% y-o-y

6. Slide 6: Revenue Distribution, Q3 2016

   REVENUE DISTRIBUTION, Q3 2016 Geography Product 3,0% 0,2% 24,3% 28,2% 52,2% 2,7% 68,8% 20,5% Nordic (+22%) Casino (+11%) Western Europe (-8%) Poker (-3%) Central, Eastern Europe and Central Asia (-2%) Sportsbook (+8.8%) RoW (+71%) Other (-76%) Numbers in brackets represent change from Q3 2015

7. Slide 7: Key Data by Product

   KEY DATA BY PRODUCT Casino, revenue Sportsbook, revenue Sportsbook, turnover 800 350 8 000 8% 700 300 7 000 7% 600 250 6 000 6% 500 5 000 5% 200 SEK m SEK m SEK m 400 4 000 4% 150 300 3 000 3% 100 200 2 000 2% 100 50 1 000 1% 0 0 0 0% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2015 2015 2016 2016

8. Slide 8: Products and Offering / Business Update

   PRESENTATION Q2 2016 PRESENTATION Q3 2016 PRODUCTS AND OFFERING BUSINESS UPDATE

9. Slide 9: OBG Framework – Truly Enabling Multi-Brand

   OBG FRAMEWORK– TRULY ENABLING MULTI-BRAND  Brand new technological framework for Brand specific building sites  Mobile first, built on leading-edge Brand specific technology OBG  Re-usable components across jurisdictions, channels and apps Gaming Platform Gaming Platform  Reduced amount of brand

10. Slide 10: Real Meaning of One Platform

    REAL MEANING OF ONE PLATFORM Competitive edge against competitors running on 3rd party platforms ~50% Brand migration timeline, average monthly platform cost per active customer Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q1 2017

11. Slide 11: Casino Update

    CASINO UPDATE  Largest casino offering in market Total games Mobile games 2 000 800  1,543 games, of which 676 on mobile 1 500 600  Expanded Live Casino offering: 1 000 400  live lottery, dice games, wheel of fortune and Casino War 500 200  Launched Joker Pro and 4 other new 0 0 Q3 2015 Q3 2016

12. Slide 12: Sportsbook Update

    SPORTSBOOK UPDATE Improvements in sportsbook:  Cashout launched on core brands  No. of concurrent events constantly increased  Improved Live offering  Ice hockey  Volleyball  Handball  Basketball  Optimised trading tools  More improvements in pipeline

13. Slide 13: Acquisition in Lithuania

    ACQUISITION IN LITHUANIA  Acquisition of Lošimų strateginė grupė, UAB, ”Tonybet”  Maximum acquisition consideration is EUR 6.0 million  EBIT multiple around 3.6x 2016  Closing 13 October 2016  2nd largest licensed operator  Consolidate Baltic position  Strong synergies anticipated 2011 2012 2

14. Slide 14: Regulatory Update

    PRESENTATION Q3 2016 REGULATORY UPDATE

15. Slide 15: Betsson Licenses

    BETSSON LICENSES Betsson Group License Malta (SB 0.5% TO / GoC Georgia (5% TO / 2004 2015 GoC 15% profit) 1.5K EUR per license) 2011 Italy (20% GGR) 2016 Ireland (SB 1% TO) 2012 Estonia (5% GGR) 2016 Latvia (15% GGR) 2012 Denmark (20% GGR) Lithuania (10% GGR) 2016 UK (15% GGR) 2015  Three new licen

16. Slide 16: Going Forward

    PRESENTATION Q3 2016 GOING FORWARD

17. Slide 17: Outlook Q4

    OUTLOOK Q4  Revenue in the beginning of the fourth quarter was in line with the strong revenue of the fourth quarter 2015 and slightly lower than average revenue of the third quarter 2016  Revenue from the region CEECA in Q4 is estimated to increase compared to Q3 2016  OPEX in Q4 will be slightl

18. Slide 18: The Betsson Investment Story

    THE BETSSON INVESTMENT STORY Strong ▪ CAGR in core markets 8.5% in 2017-2020 underlying ▪ Continued strong growth in overall gambling market drivers ▪ Continued shift from offline to online ▪ New digital channels like mobile driving additional revenue ▪ Strong organic growth Strong competitive ▪ Str

19. Slide 19: Q&A

    PRESENTATION Q3 2016 Q &A Q&A

20. Slide 20: Currency Exchange Rates

    CURRENCY EXCHANGE RATES Income statement (average rate) Jan-Sep 2016 Jan-Sep 2015 EUR/SEK 9.3731 9.3724 0.0% TRY/SEK 2.8600 3.1689 10.8% GEL/SEK 3.6773 3.6367 -1.1% NOK/SEK 0.9997 1.0630 6.3% Balance sheet (closing rate) 30 Sep 2016 30 Sep 2015 EUR/SEK 9.6320 9.4119 -2.3% TRY/SEK 2.8653 2.7755 -3.1%

Betsson — Q3 2016 Earnings Presentation on 6ix