Slide 1: Kambi Group plc Q3 2021 Report
Kambi Group plc Q3 2021 Report 27 October 2021 1
Slide 2: Agenda
Agenda 1. Highlights 2. Financial highlights 3. Strategic pillars 4. Partner signings 5. Partner launches 6. Events after Q3 7. Summary 8. Q&A Q3 Report – 27 October 2021 2 CEO Kristian Nylén & CFO David Kenyon
Slide 3: Highlights
Highlights Revenue up 48% to €41.6m, with revenue for first nine months of year up 80% Acquired Abios, transforming Kambi into a leading esports provider €41.6m Expanded the partner network with signings of BetCity (Netherlands) and Island Luck (Bahamas) Revenue for the quarter 15th US state launch
Slide 4: Q3 financial highlights
Q3 financial highlights €41.6m €14.7m 35% Revenue Operating profit Operating margin Q3 2021 Q3 2021 Q3 2021 Revenue Operating profit Operating margin Q3 2020: €28.1m Q3 2020: €6.5m Q3 2020: 23% Q3 Report – 27 October 2021 4 CEO Kristian Nylén & CFO David Kenyon
Slide 5: Q3 financial events
Q3 financial events Short-term Share buyback Acquisition of impact to PNG acquires programme Abios Netherlands theScore initiated revenue Q3 Report – 27 October 2021 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 9.0% 700 669 8.0% 600 560 573 7.0% 505 500 6.0% 398 412 387 400 369 5.0% 334 307 300 281 277 273 4.0% 254 259 259 239 242 221 219 200 3.0% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q
Slide 7: Kambi revenue conversion
Kambi revenue conversion Q3 2021 vs Q3 2020 50% 40% 30% 20% 10% 0% -10% -20% -30% Operator Turnover Growth* FX impact Operator margin impact Taxes/marketing deductibles impact Other ** Kambi Revenue Growth * Operator turnover growth shown is based on Q3 2020 exchange rates ** Other includes the impa
Slide 8: Balance sheet
Balance sheet Strong balance sheet, perfectly positioned to support both organic and further acquisitive growth €84.8m €11.9m 69.9% Cash Cash inflow* Equity/assets Q3 2021 ratio *Cash flow from operating and investing activities excluding movements in working capital and acquisitions Q3 Report – 27
Slide 9: Total Addressable Market
Total Addressable Market Europe Updates in key markets: €18bn - €26bn − Arizona − Connecticut − New York USA − Ontario €15bn - €20bn − Netherlands Rest of Americas €4bn - €7bn Asia €7bn - €10bn Potential global TAM €44bn - €63bn Q3 Report – 27 October 2021 9 CEO Kristian Nylén & CFO David Kenyon
Slide 10: Strategy update
Strategy update Key pillars Sportsbook success and value creation Technically advanced Differentiation and Power of Highly scalable business core platform to enable empowerment the network model growth Enabling a broad range of Leveraging unique Signing and launching new partners to take control Del
Slide 11: Success of American football Bet Builder product
Technically advanced core platform to enable growth Success of American football Bet Builder product Approximately 20% of all pre-game NFL bets − Engaging 40% of NFL bettors, delivering 20% of all pre- Kambi FanDuel DraftKings game NFL bets at higher margin − Multi-game not offered by main US compet
Slide 12: Presenting Kambi's new bar-top terminals
Differentiation and empowerment Presenting Kambi’s new bar-top terminals Strengthening retail product suite − At G2E, Kambi exhibited its new bar-top betting terminals − Bar-top terminals are popular in the US, traditionally used to offer casino games such as poker − Developed with hardware partners
Slide 13: Automation of soccer odds compilation
Power of the network Automation of soccer odds compilation Leveraging AI capability and vast network data − Introduction of automated pricing of lower profile soccer leagues, covering c.1,100 games across 20 leagues in Q3 − Auto-suspend tool implemented to support traders by leveraging network data
Slide 14: Kambi acquires esports specialists Abios
Kambi acquires esports specialists Abios Providing Kambi with esports DNA and technology − In August, Kambi announced its acquisition of esports data, content and odds provider Abios − Esports betting market is expected to double in size by 2025 − Abios’ expertise and technology will enable Kambi to
Slide 15: Q3 new partner wins
Q3 new partner wins Continued expansion across Europe and the Americas − Island Luck is the leading gaming − BetCity was among the first to receive operator in The Bahamas an online licence in the Netherlands − Offers regulated sports betting, casino − BetCity launched on day one of market and lotte
Slide 16: Q3 partner launches
Q3 partner launches Continued expansion across the US and Europe Arizona US online US on-property Belgium 15 x2 x33 Online launches with Two retail partner Launched on day one Roll-out of the Belgian PNG in five states, launches in with PNG and Kindred, National Lottery’s retail Kindred in Iowa and
Slide 17: Events after Q3
Events after Q3 Launched in 16th US state − Rush Street Interactive launched in Connecticut, partnered with the Connecticut Lottery − Officially went live online on 19 October, retail 16 rollout commenced on Monday − Connecticut marked Kambi’s 16th US state launch, with Louisiana likely to become no
Slide 18: Summary
Summary Another strong financial Acquired Abios to Share buyback performance with become leading player in programme initiated revenue up 48% esports Q3 Report – 27 October 2021 18 CEO Kristian Nylén & CFO David Kenyon
Slide 19: Q&A
Q&A kambi.com 19
Slide 20: Thank you
Thank you kambi.com 20