Kambi Group plc Class B · OMXSTO:KAMBI
Kambi Group plc Class B — Investor Day (June 2021)
86 slides from Kambi Group plc Class B's investor day presentation, Jun 22, 2021
Slide 1: Kambi Capital Markets Day
Kambi Capital Markets Day Accelerating success 22 June 2021 1 Kambi Capital Markets Day
Slide 2: Agenda
Agenda 1. Model of success – Kristian Nylén, Chief Executive Officer and co-founder 2. Platform for success – Erik Lögdberg, Chief Operating Officer 15-minute break 3. Mapping out success – Cecilia Wachtmeister, EVP Business & Group Functions 4. Measuring success – David Kenyon, Chief Financial Offi
Slide 3: Legal Disclaimer
Legal Disclaimer This presentation is not an offer or solicitation of an offer to buy or sell securities of Kambi Group plc (“Kambi”). It is solely for use at a capital markets event and is provided as information only. This presentation does not contain all of the information that is material to an
Slide 4: Model of success
Model of success Kristian Nylén Chief Executive Officer 4 Kambi Capital Markets Day
Slide 5: Kambi today
Kambi today A brief overview c.5m active player accounts 900+ 30+ employees in partners 7 countries 35 regulated markets across 6 continents €117.7m €78m revenue in 2020 cash balance 5 Kambi Capital Markets Day
Slide 6: Investment case
Investment case Kambi is the clear front-runner in the market and will only go from strength to strength Superior technology Exceptional growth Highly scalable model and know-how potential 6 Kambi Capital Markets Day
Slide 7: Illustration of growing addressable market
Illustration of growing addressable market Increase in regulated markets is fuelling Kambi growth <€20bn Current global TAM 35 - number of regulated markets Kambi is active in is growing rapidly €44bn - €63bn Potential global TAM 2026 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 7 Kambi Ca
Slide 8: Sports betting – the most complex piece of enterprise software
Sports betting – the most complex piece of enterprise and end-user software imaginable 8 Kambi Capital Markets Day
Slide 9: Superior technology and knowhow
Superior technology and knowhow Formidably challenging for others to imitate Our focus on these three core areas – where differentiation is of limited value – has been paramount in establishing Kambi as the B2B sports betting industry’s clear market leader 9 Kambi Capital Markets Day
Slide 10: Superior technology and knowhow
Superior technology and knowhow Formidably challenging for others to imitate Our focus on these three core areas – where differentiation is of limited value – has been paramount in establishing Kambi as the B2B sports betting industry’s clear market leader Technology − Operational 24/7/365 − 500,000
Slide 11: Superior technology and knowhow
Superior technology and knowhow Formidably challenging for others to imitate Our focus on these three core areas – where differentiation is of limited value – has been paramount in establishing Kambi as the B2B sports betting industry’s clear market leader Technology Risk management − Operational 24
Slide 12: Superior technology and knowhow
Superior technology and knowhow Formidably challenging for others to imitate Our focus on these three core areas – where differentiation is of limited value – has been paramount in establishing Kambi as the B2B sports betting industry’s clear market leader Technology Risk management Regulation − Ope
Slide 13: Two ways to gain sportsbook capabilities
Two ways to gain sportsbook capabilities Technology ownership or business control and flexibility? Proprietary model Outsourced model (Vertical integration) 13 Kambi Capital Markets Day
Slide 14: Learning the lessons from other industries
Learning the lessons from other industries Outsourcing is central to the strategy of large, successful organisations Apple BBC Boeing TSMC Ericsson Rolls Royce 14 Kambi Capital Markets Day
Slide 15: Vertical integration of sportsbook risks inferior product at higher cost base
Vertical integration of sportsbook risks inferior product at higher cost base Challenging two key assumptions relating to vertical integration Financial sustainability / Cost savings? efficiency? − Vertical integration normally means higher cost − Sportsbook requires continuous investment to base re
Slide 16: Kambi also takes a collaborative approach
Kambi also takes a collaborative approach We don’t seek to provide everything to everyone Official data suppliers Kambi sportsbook platform Superior proposition at lower cost base Integration of niche specialists Operator empowerment, local knowledge and brand 16 Kambi Capital Markets Day
Slide 17: What does Kambi success look like?
What does Kambi success look like? Two scenarios Tier ones remain vertically Tier one operators realise in order integrated but through higher fixed to compete in the long-term they costs and an inferior product are must leverage the many benefits overtaken by emerging operators of the Kambi model w
Slide 18: Kambi's four strategic pillars
Kambi’s four strategic pillars The industry’s only sports betting specialist Strong compliant core Differentiation and Power of the Highly scalable business platform to empowerment network model enable growth Enabling partners to take Leveraging unique global Signing and launching new Delivering reg
Slide 19: Platform for success
Platform for success The future of sportsbook provision and the role of the Kambi platform Erik Lögdberg Chief Operating Officer 19 Kambi Capital Markets Day
Slide 20: Outsourcing benefits starting to outweigh in-house
Outsourcing benefits starting to outweigh in-house − Kambi has proven its business model and the many benefits of scalability are starting to show − We have cemented our global B2B leadership position − Our partners are highly competitive with the leading B2C brands while running their sportsbooks a
Slide 21: In this section we address three areas
In this section we address three areas: 1. Breaking down the “outsourcing” concept 2. Where in the sportsbook are the strongest cases for outsourcing based on scalability and where are the important differentiation possibilities? 3. How Kambi proposes to leverage scalability advantages while empower
Slide 22: The outsourcing concept
The outsourcing concept Two models of outsourcing 1 2 To leverage cost and throughput To acquire capacity or expertise advantages from a supplier that to perform bespoke tasks for your operates a scalable model across business its network of customers (SaaS) 22 Kambi Capital Markets Day
Slide 23: Structure of a sports betting operation
Structure of a sports betting operation Brand and Marketing UI Odds and Markets Sportsbook Platform Betting domain, bet management and distribution IT infrastructure and Hosting 23 Kambi Capital Markets Day
Slide 24: Scalability Benefits
Parts of a sportsbook perform to a higher level with scalability benefits Hosting (i.e. Cloud) Sportsbook When possibilities increase to bring Platform something unique to the end-user, beyond Scalability Benefits Odds and high performance and precision, then the Markets benefits of scalability decr
Slide 25: Sportsbook platform costs versus other product investments
Sportsbook platform costs versus other product investments − Every year a bigger proportion of the total sportsbook costs is invested in the platform capabilities − This is driven by regulatory requirements, structural changes to the product, new ways of creating a sportsbook and increased load Plat
Slide 26: Today's Sportsbook
Today’s Sportsbook Where “only” delivering bare minimum requires highest sophistication and investments Regulatory requirements driving platform transformation Bet Builder (IEC) development driving platform transformation Offerings 26 Kambi Capital Markets Day
Slide 27: Today's Sportsbook
Today’s Sportsbook Where “only” delivering bare minimum requires highest sophistication and investments REGULATORY SECURITY With its scalable platform, focus, network data and experience Kambi has the potential to solve FINANCIAL SECURITY these challenges best in the market and allow for those that
Slide 28: A next generation Kambi Sportsbook
A next generation Kambi Sportsbook Adapting to fit market needs and new technology Separation of scalability and Kambi Sportsbook Today Introduction of Rich Data and AI differentiation UI and APIs Platform Data and Odds 28 Kambi Capital Markets Day
Slide 29: A next generation Kambi Sportsbook
A next generation Kambi Sportsbook Adapting to fit market needs for scalability and differentiation Through modularization creating an even more powerful and distinct Sportsbook platform that is The Kambi Sportsbook independent and agnostic to Platform differentiation requirements 29 Kambi Capital M
Slide 30: A next generation Kambi Sportsbook
A next generation Kambi Sportsbook Adapting to fit market needs for scalability and differentiation The App The app interface will offer all the Interface tools, APIs and support to freely and efficiently package the sports betting offering for the end-users The Kambi Sportsbook The interface will b
Slide 31: A next generation Kambi Sportsbook
A next generation Kambi Sportsbook Adapting to fit market needs for scalability and differentiation The App Interface The data and pricing interface connects internal as well as external data and pricing to the The Kambi Sportsbook platform Platform The Data and Pricing Interface 31 Kambi Capital Ma
Slide 32: 15 min coffee break
15 min coffee break 32 Kambi Capital Markets Day
Slide 33: Mapping global success
Mapping global success Cecilia Wachtmeister EVP Business and Group Functions 33 Kambi Capital Markets Day
Slide 34: Where we were five years ago
Where we were five years ago The picture in 2016 400,000 Active unique players on Kambi network 11 Regulated markets 34 Kambi Capital Markets Day
Slide 35: Where we are today
Where we are today Global growth +5m Active unique players on Kambi network 35 Regulated markets 35 Kambi Capital Markets Day
Slide 36: Seizing the US opportunity
Seizing the US opportunity 1st in New Hampshire Took first legal wager Where we have launched 1st in Michigan Took first legal wager 1st in Iowa Launched on first day of market 1st in New York Took first legal wager 1st in Colorado Took first legal wager 1st in New Jersey Took first legal online wag
Slide 37: Much more to come in US
Much more to come in US Only scratched the surface Regulate before end of Regulate before Regulated Regulate in 2023-24 Regulate 2025+ 2021 end of 2022 Arkansas New York (retail) Arizona Alabama California Alaska Colorado Nevada Connecticut Kansas Georgia Hawaii Delaware North Carolina Florida Kentu
Slide 38: Global opportunity
Global opportunity What to look forward to outside US in coming years Europe Second tech phase Japan Est. 2024-25 Canada Est. 2021-22 India Est. 2025-26 Brazil Exp. 2022 Argentina Exp. 2021-2023 38 Kambi Capital Markets Day
Slide 39: Americas (non-US)
Americas (non-US) Canada and South America Canada: South America: − Current expectations for Ontario to go live by Q4 2021 with − Argentina in process of going live on province-by- other provinces to follow province basis, Kambi live in Neuquén − Province by province approach requires flexible, comp
Slide 40: Europe
Europe In-house tech is struggling to keep pace Second phase opportunities: − Europe is the most mature online sports betting market − Technologies that were fit for purpose years ago are no longer able to remain competitive − This process has been expedited by increased regulation and complex compl
Slide 41: Asia
Asia Japan and India most likely in coming years Japan: India: − As in many other markets, Japan is considering the − Conversations around sports betting in India have been regulation of sports betting to generate tax revenue ongoing for many years − Sports betting is available in limited form but c
Slide 42: Where we could be in next five years
Where we could be in next five years Exponential global growth 42 Kambi Capital Markets Day
Slide 43: Why Kambi is well positioned
Why Kambi is well positioned We know what it takes to succeed on a global level Expertise in compliance Global product Coupled with regulatory track record to realise Already serving six continents, relatively little opportunities quickly development work required Model for success Growing global ne
Slide 44: Measuring success
Measuring success David Kenyon Chief Financial Officer 44 Kambi Capital Markets Day
Slide 45: Total Addressable Market
Total Addressable Market 2026 45 Kambi Capital Markets Day
Slide 46: TAM US
TAM US Reasons for success: − Proven track record of launches across multiple states/locations − Partnerships with market- leading multi-state operators − Superior quality of US product and regulatory compliance 46 Kambi Capital Markets Day
Slide 47: TAM US
TAM US Illinois €1.0bn GGR potential Pennsylvania €0.9bn GGR potential Reasons for success: New Jersey − Proven track record of €0.7bn GGR potential launches across multiple states/locations − Partnerships with market- leading multi-state operators − Superior quality of US product and regulatory com
Slide 48: TAM US
TAM US Illinois €1.0bn GGR potential Pennsylvania €0.9bn GGR potential Reasons for success: New Jersey − Proven track record of €0.7bn GGR potential launches across multiple states/locations New York €1.5bn GGR potential − Partnerships with market- leading multi-state Ohio €0.7bn GGR potential opera
Slide 49: TAM US
TAM US Illinois €1.0bn GGR potential Pennsylvania €0.9bn GGR potential Reasons for success: New Jersey − Proven track record of €0.7bn GGR potential launches across multiple states/locations New York €1.5bn GGR potential − Partnerships with market- leading multi-state Ohio €0.7bn GGR potential opera
Slide 50: TAM US
TAM US Illinois €1.0bn GGR potential Pennsylvania €0.9bn GGR potential Reasons for success: New Jersey − Proven track record of €0.7bn GGR potential launches across multiple states/locations New York €1.5bn GGR potential − Partnerships with market- leading multi-state Ohio €0.7bn GGR potential opera
Slide 51: TAM Americas (non-US)
TAM Americas (non-US) Reasons for success: − Successful launches with market- leading operators − Strong product fit − Track record of regulatory compliance and agility 51 Kambi Capital Markets Day
Slide 52: TAM Americas (non-US)
TAM Americas (non-US) Reasons for success: Canada − Successful launches with market- €2.1bn leading operators GGR potential − Strong product fit − Track record of regulatory compliance and agility 52 Kambi Capital Markets Day
Slide 53: TAM Americas (non-US)
TAM Americas (non-US) Reasons for success: Canada − Successful launches with market- €2.1bn leading operators GGR potential − Strong product fit Brazil − Track record of regulatory compliance €2.0bn GGR potential and agility 53 Kambi Capital Markets Day
Slide 54: TAM Americas (non-US)
TAM Americas (non-US) Reasons for success: Canada − Successful launches with market- €2.1bn leading operators GGR potential − Strong product fit Brazil − Track record of regulatory compliance €2.0bn GGR potential and agility Argentina €1.0bn GGR potential 54 Kambi Capital Markets Day
Slide 55: TAM Americas (non-US)
TAM Americas (non-US) Reasons for success: Canada − Successful launches with market- €2.1bn leading operators GGR potential − Strong product fit Brazil − Track record of regulatory compliance €2.0bn GGR potential and agility Argentina €1.0bn GGR potential Colombia €0.7bn GGR potential 55 Kambi Capit
Slide 56: TAM Americas (non-US)
TAM Americas (non-US) Reasons for success: Canada − Successful launches with market- €2.1bn leading operators GGR potential − Strong product fit Brazil − Track record of regulatory compliance €2.0bn GGR potential and agility Argentina €1.0bn GGR potential Colombia €0.7bn GGR potential TAM: €4bn - €7
Slide 57: TAM Asia
TAM Asia Reasons for success: − Track record of selling and delivering globally − Proven ability to adapt quickly and effectively to local legislation − Strong global product fit 57 Kambi Capital Markets Day
Slide 58: TAM Asia
TAM Asia Reasons for success: − Track record of selling and India delivering globally €2.5bn GGR potential − Proven ability to adapt quickly and effectively to local legislation − Strong global product fit 58 Kambi Capital Markets Day
Slide 59: TAM Asia
TAM Asia Reasons for success: − Track record of selling and India Japan delivering globally €2.5bn GGR potential €5.5bn GGR potential − Proven ability to adapt quickly and effectively to local legislation − Strong global product fit 59 Kambi Capital Markets Day
Slide 60: TAM Asia
TAM Asia Reasons for success: − Track record of selling and India Japan delivering globally €2.5bn GGR potential €5.5bn GGR potential − Proven ability to adapt quickly and effectively to local legislation − Strong global product fit TAM: €7bn - €10bn 60 Kambi Capital Markets Day
Slide 61: TAM Europe
TAM Europe Reasons for success: − Significant partnerships with market-leading operators outperforming market − Superior quality of European product and regulatory compliance − Future growth from existing customers, new regulations and new signings − Current TAM: €15bn 61 Kambi Capital Markets Day
Slide 62: TAM Europe
TAM Europe Reasons for success: − Significant partnerships with market-leading operators outperforming market − Superior quality of European product and regulatory compliance − Future growth from existing customers, new regulations and new signings − Current TAM: €15bn TAM: €18bn - €26bn 62 Kambi Ca
Slide 63: TAM summary by region 2026
TAM summary by region 2026 Americas (non-US) US market size by 2026 €15bn - €20bn market size by 2026 €4bn - €7bn Asia market size by 2026 €7bn - €10bn Europe market size by 2026 €18bn - €26bn Sources: Vixio/H2GC/Kambi's own internal estimates Potential global TAM €44bn - €63bn 63 Kambi Capital Mark
Slide 64: Kambi market share 2026
Kambi market share 2026 Potential global TAM €44bn - €63bn 64 Kambi Capital Markets Day
Slide 65: Kambi market share 2026
Kambi market share 2026 Potential global TAM €44bn - €63bn Kambi market share at 15% 65 Kambi Capital Markets Day
Slide 66: Kambi market share 2026
Kambi market share 2026 Potential global TAM €44bn - €63bn Kambi market share at 15% Potential operator GGR €6.6bn - €9.5bn 66 Kambi Capital Markets Day
Slide 67: Kambi market share 2026
Kambi market share 2026 Potential global TAM €44bn - €63bn Kambi market share at 15% Potential operator GGR €6.6bn - €9.5bn (less) Gaming taxes Subject to various regulatory and (less) Marketing deductibles other assumptions Commission rate % and other factors = Potential revenue from 15% market sha
Slide 68: Business model
Business model 68 Kambi Capital Markets Day
Slide 69: Underlying scalability
Underlying scalability Kambi does things once, for the benefit of all operators Illustration of scalability Trading Product development and risk management Revenue Opex Technical infrastructure Regulatory compliance 69 Kambi Capital Markets Day
Slide 70: Cost areas
Cost areas Key pillars of cost Product development IT development Channel enhancements Market Trading & Risk expansion Analytics New customer integrations Data suppliers Corporate Revenue growth drivers 70 Kambi Capital Markets Day
Slide 71: Competitive moat
Competitive moat Major barriers to entry due to high cost of running and maintaining a best-in-class sportsbook Significant continuous capex investment • Product development • Infrastructure Experience and know-how • Operation of best-in-class sportsbook • Agility to adapt to market evolutions • Ver
Slide 72: Strategic rationale for outsourcing
Strategic rationale for outsourcing Insourcing runs risk of inferior product with a high fixed cost base 72 Kambi Capital Markets Day
Slide 73: Strategic rationale for outsourcing
Strategic rationale for outsourcing Insourcing runs risk of inferior product with a high fixed cost base Enables our partners to focus on core competencies 73 Kambi Capital Markets Day
Slide 74: Strategic rationale for outsourcing
Strategic rationale for outsourcing Insourcing runs risk of Partners inferior product with a high benefit from Kambi’s fixed cost base continuous investment Enables our partners to focus on core competencies 74 Kambi Capital Markets Day
Slide 75: Strategic rationale for outsourcing
Strategic rationale for outsourcing Insourcing runs risk of Partners inferior product with a high benefit from Kambi’s fixed cost base continuous investment Enables our partners Variable cost of service to focus on core based on partner competencies profitability 75 Kambi Capital Markets Day
Slide 76: Strategic rationale for outsourcing
Strategic rationale for outsourcing Insourcing runs risk of Partners All elements of regulatory inferior product with a high benefit from Kambi’s and technical compliance fixed cost base continuous investment are taken care of Enables our partners Variable cost of service to focus on core based on p
Slide 77: Strategic rationale for outsourcing
Strategic rationale for outsourcing Insourcing runs risk of Partners All elements of regulatory inferior product with a high benefit from Kambi’s and technical compliance fixed cost base continuous investment are taken care of Enables our partners Variable cost of service Easy access to to focus on
Slide 78: Strategic rationale for outsourcing
Strategic rationale for outsourcing Partners are strategically Insourcing runs risk of Partners All elements of regulatory positioned to capitalise on inferior product with a high benefit from Kambi’s and technical compliance any new market fixed cost base continuous investment are taken care of opp
Slide 79: Balance sheet
Balance sheet 79 Kambi Capital Markets Day
Slide 80: Kambi's balance sheet
Kambi's balance sheet Strong balance sheet, perfectly positioned to support both organic and acquisitive growth €70m+ €17m Net cash at 31 March 2021 Cash inflow Q1 2021 75% €120m+ Equity/assets ratio as value of shares available to be at 31 March 2021 issued for M&A purposes 80 Kambi Capital Markets
Slide 81: M&A target areas
M&A target areas What are we looking for in the market? Artificial Player account Complementary Offering intelligence/ management products enhancement automation systems 81 Kambi Capital Markets Day
Slide 82: Investment case
Investment case 82 Kambi Capital Markets Day
Slide 83: Investment case
Investment case Kambi is the clear front-runner in the market and will only go from strength to strength Superior technology and know-how 83 Kambi Capital Markets Day
Slide 84: Investment case
Investment case Kambi is the clear front-runner in the market and will only go from strength to strength Superior technology Highly scalable model and know-how 84 Kambi Capital Markets Day
Slide 85: Investment case
Investment case Kambi is the clear front-runner in the market and will only go from strength to strength Superior technology Exceptional growth Highly scalable model and know-how potential 85 Kambi Capital Markets Day
Slide 86: Q&A
Q&A kambi.com 86 Kambi Capital Markets Day