Slide 1: Kambi Group plc Q4 2022 Report
Kambi Group plc Q4 2022 Report 22 February 2023 1
Slide 2: Agenda
Agenda 1. Highlights 2. Financial highlights 3. Kambi 2022 in review 4. Commercial and strategic updates 5. Events after Q4 6. Summary 7. Q&A Kambi Group plc – Q4 2022 Report 2 CEO Kristian Nylén, CFO David Kenyon
Slide 3: Highlights
Highlights Strong financial and operational performance with 30% underlying revenue growth Successful World Cup driven by leading technology, including launch of third generation trading capability 30% underlying Partnered with Rei do Pitaco, Brazil’s largest daily fantasy sports operator revenue gr
Slide 4: Q4 2022 financial highlights
Q4 2022 financial highlights Revenue Operating profit Cash flow 1 €57.8m €18.7m €17.9m €45.2m €6.0m excluding termination fee from PENN excluding termination fee from PENN Q4 2021: Q4 2021: Q4 2021: €34.9m €7.1m €4.8m 1 Cash flow from operating and investing activities excluding movements in working
Slide 5: Full year financial highlights
Full year financial highlights Revenue Operating profit Operating margin €166.0m €34.8m 20.9% FY 2021: FY 2021: FY 2021: €162.4m €57.0m 35.1% Kambi Group plc – Q4 2022 Report 5 CEO Kristian Nylén, CFO David Kenyon
Slide 6: Operator trading analysis
Operator trading analysis Kambi operators' turnover and trading margin 1100 1056 12% 989 1000 11% 911 913 900 10% 800 758 757 9% 700 669 656 8% 640 600 560 573 7% 505 500 6% 398 412 387 400 369 5% 334 307 300 273 259 4% 200 3% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q
Slide 7: Kambi revenue conversion
Kambi revenue conversion Q4 2022 vs Q4 2021 70% 60% 50% 40% 30% 20% 10% 0% Operator turnover FX impact Operator margin Taxes/marketing Other ** Shape Games PENN termination Kambi revenue growth * impact deductibles impact fee growth * Operator turnover growth shown is based on Q4 2021 exchange rates
Slide 8: Q4 2022 cash flow
Q4 2022 cash flow €m 75.0 70.0 65.0 60.0 55.0 50.0 45.0 40.0 35.0 30.0 Opening cash Operating profit PENN fees Working capital, tax & Amortisation & Development costs & Closing cash other depreciation tangible assets Kambi Group plc – Q4 2022 Report 8 CEO Kristian Nylén, CFO David Kenyon
Slide 9: Kambi 2022 in review
Kambi 2022 in review Agreed partnership extensions Extended reach in Americas with with Kindred and betPARX nine new partner signings Completed more than 60 online Acquired native front end tech and on-property launches specialists Shape Games Kambi Group plc – Q4 2022 Report 9 CEO Kristian Nylén, C
Slide 10: World Cup 2022
World Cup 2022 A record tournament for Kambi − A successful World Cup with excellent player engagement and a market-leading product − World Cup final was Kambi's highest turnover soccer game of all time − Showcased strength of product in key areas such as Bet Builder and instant betting markets unav
Slide 11: Launch of third generation trading
Launch of third generation trading Fully automated algorithmic trading on journey towards limitless sportsbook − Making the shift from machine-assisted human trading to human-assisted machine trading Increase in Bet Builder − Benefits on full display during the World Cup with faster delivery speeds
Slide 12: Bet Builder pricing confidence
Bet Builder pricing confidence Enabling a greater user experience through optimal margin Large sports Proprietary Trading Unique network More accurate data sets simulation models expertise data pricing Super Bowl Bet Builder example* Kansas City Chiefs to win Kambi FanDuel DraftKings Travis Kelce an
Slide 13: Partner signing of Rei do Pitaco
Partner signing of Rei do Pitaco Strengthening Kambi's position in Latin America − Brazil's leading fantasy sports operator and a key partner win for Kambi − Large database and brand strength leave RDP well positioned ahead of regulation − Brazil is expected to be one of the world’s largest regulate
Slide 14: Q4 launches
Q4 launches Growing footprint across the Americas US Canada Argentina Powered on-property Continued expansion in Launched in Maryland launches for Great Argentina with launches online and Washington Canadian and Mohegan in four provinces with State for the first time in Ontario Casino Club Kambi Gro
Slide 15: Events after Q4
Events after Q4 Continued commercial momentum Extended Renewed Launched day one of Signed partnerships partnership with partnership with regulated market in with Miami Valley Rush Street Sun International in Massachusetts Gaming in Ohio and Interactive South Africa and Ohio del Lago Resort & Casino
Slide 16: Events after Q4: 2027 financial targets
Events after Q4 Adoption of new financial targets based on five key growth drivers 2027 financial targets Revenue 2-3x FY22 EBIT €150m+ Sign tier Utilise Extend Launch in one platform lead as no.1 a major Roll out 3rd operators flexibility to supplier regulated Gen trading across retain key in the A
Slide 17: Summary
Summary 3rd Gen trading Excellent financial performance On strategic path to results underlines future significant growth potential Kambi Group plc – Q4 2022 Report 17 CEO Kristian Nylén, CFO David Kenyon
Slide 18: Q&A
Q&A kambi.com 18
Slide 19: Thank you
Thank you kambi.com Kambi