Elys Bmg Group, Inc. · OTC:ELYS
Elys Bmg — Newgioco Group — Investor Presentation (January 2019)
22 slides from Elys Bmg's investor presentation, Jan 29, 2019
Slide 1: Investor Presentation
Investor Presentation RALPH GARCEA VP Corporate and Business Development January 2019
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words "could,“ "believe," "anticipate," "intend," "estimate,
Slide 3: Introducing Newgioco Group, Inc.
INTRODUCING NEWGIOCO GROUP, INC. EXISTING EUROPEAN OPERATIONS: LEISURE & DAILY BETTING EXPANSION TO U.S.: SOFTWARE-AS-A-SERVICE • We offer a complete portfolio of gaming products From the Perspective of Casino Operators: • Web-based Sports betting, Virtual, Casino, Poker, Bingo • ELYS is a proven, i
Slide 4: Newgioco Group, Inc. overview: who, what, where, how
WHO Newgioco Group, Inc. WHAT Vertically-integrated leisure gaming technology company with fully licensed online and land-based gaming operations and innovative betting technology platforms that provide bet processing for casinos and other retail gaming operators. UNITED STATES WHERE Italy plus curr
Slide 5: Newgioco's Expand From Core Strategy Is Working
NEWGIOCO’S EXPAND FROM CORE STRATEGY IS WORKING ELYS ISN’T JUST A GREAT PLATFORM – IT’S OUR FOUNDATION FOR GROWTH AND EXPANSION 2017 - 2018 2019 – 2020 + CORE GROWTH re: Market Share Impact: PRODUCTS Two Key Drivers Compound Growth We’re increasing our market share 1. Market for sports betting is ge
Slide 6: 2017: Solid Growth in Handle and Revenue, But...
2017: SOLID GROWTH IN HANDLE AND REVENUE, BUT... The Good News: More End Users & More Products Lead To Accelerated Growth of Handle and GGR PRODUCTS • Market acceptance of our Sports betting products at our locations in Italy • Introduction of “virtual games” at agencies, corners, and shops MARKET P
Slide 7: Spotlight on: Sports Betting
CORE PRODUCTS SPOTLIGHT ON: SPORTS BETTING • There is a strong and consistent demand for sports betting • Italy has the largest market for sports betting of any country in Europe [please refer to Appendix] • It’s also highly regulated and very competitive • Betting “turnover” or “handle” varies depe
Slide 8: Spotlight on: ELYS
CORE TECHNOLOGY SPOTLIGHT ON: ELYS • ELYS sports betting platform has proven risk management capabilities • It features industry-leading and highly scalable “shop-client” architecture • From the perspective of the End User: Advanced functionality makes the platform best-in-class • Speed, range of pr
Slide 9: 2018: The Benefits of Risk Management
2018: THE BENEFITS OF RISK MANAGEMENT Problem Solved: Improved risk management means improved revenue conversion stability, even while handle continues to grow 50%+ YoY PRODUCTS • Web-based Casino and Poker gain market share. NWGI ranks #6 in Italy for Online Poker, and #22 in sports betting (AGIMEG
Slide 10: Spotlight on: Online Casino, Poker
CORE PRODUCTS SPOTLIGHT ON: ONLINE CASINO, POKER SUCCESS OF ELYS LAUNCH IN AUGUST 2017 LEADS TO KEY ONLINE CASINO AND POKER DEALS • Web-based games are a great complement to our land-based products • Casino and poker raise Newgioco’s brand awareness for a different cross-section of end users • Our f
Slide 11: Spotlight on: Business Intelligence
CORE TECHNOLOGY SPOTLIGHT ON: BUSINESS INTELLIGENCE ELYS CAPTURES LOTS OF DATA – AND BI ANALYSIS TURNS THAT DATA INTO ACTIONABLE INSIGHTS Quarterly Trends Day-of- Ticket Volume Is Highest on Weekend Days, But Average Bet Size is Fairly Steady Average Daily Active (Unique) Users, Per Quarter 3,000 We
Slide 12: Newgioco Group: Bringing It All Together
NEWGIOCO GROUP: BRINGING IT ALL TOGETHER NWGI IS WELL POSITIONED FOR CORE GROWTH AND GLOBAL EXPANSION • Leverage track record of success in highly regulated Italian gaming markets • Provide certified ELYS sports betting platform and VG virtual gaming software as SaaS-based services to high-growth gl
Slide 13: Three Building Blocks of Our Value Proposition
THREE BUILDING BLOCKS OF OUR VALUE PROPOSITION Focus on Growth Newly expanding regulated markets include the U.S. plus the 12 countries VG currently operates in • “Governments are Growth”: Legitimate sports betting drives revenue for governments DRIVE • Regulated markets are a boon for us GROWTH • J
Slide 14: Drive Growth: U.S. in 2H 2018
DRIVE GROWTH: U.S. IN 2H 2018 EARLY ADOPTER STATES HAVE BEEN REWARDED WITH STRONG GROWTH Nevada Sports Betting Handle Mississippi Sports Betting Handle $800 15% $60 20% $571 $581 $600 $50 $600 $529 $50 $44 10% 15% $40 $32 $33 $400 $287 $248 $30 10% $245 5% $20 $200 5% $8 $10 $- 0% $- 0% Jun-18 Jul-1
Slide 15: NWGI Is Undervalued Compared to Peers
NWGI IS UNDERVALUED COMPARED TO PEERS NWGI TRADING AT LOWER EV/SALES RATIO COMPARED TO PEERS Price Mkt Cap LTM Rev EV/Sales P/E Ticker (Local) (US$) (US$) 2017 2018 2019 2017 2018 2019 Newgioco Group Inc NWGI-US $ 0.40 42 35 1.5 1.2 0.9 20.0 20.0 10.0 Sector Averages: 3.5 3.0 13.8 20.1 17.4 Scientif
Slide 16: Next Steps: Grow Smart
NEXT STEPS: GROW SMART CONTINUING TO EXECUTE – AND BENEFIT FROM – OUR “EXPAND FROM CORE” STRATEGY 2019 – 2020 + CORE Now: PRODUCTS GROWTH: Stay focused on continued growth of Increase market share Web-based and Land-based products in Italy 1. Sports Betting Sportsbook 2. Online Poker + Virtual + C
Slide 17: Ralph Garcea, MBA, P. Eng.
FOR ADDITIONAL INFORMATION PLEASE CONTACT: RALPH GARCEA, MBA, P. ENG. VP, CORPORATE AND BUSINESS DEVELOPMENT NEWGIOCO GROUP, INC. R.GARCEA @ NEWGIOCOGROUP.COM OTCQB: NWGI 17
Slide 18: Appendix
APPENDIX SUPPLEMENTAL DATA OTCQB: NWGI 18
Slide 19: Market Overview
MARKET OVERVIEW GAMING REPRESENTS A US$500B GLOBAL MARKET – AND IT’S GROWING Sports Betting is Largest Segment in Europe is Largest Gaming Market the Global Gaming Market Sta te Lotteries Africa Oceania Ski ll/Other Latam/Caribbean N. America 9% 1% 6% 3% 1% 11% Bi ngo 4% Poke r Betti ng 6% 51% Asia/
Slide 20: Market Overview: Europe
MARKET OVERVIEW: EUROPE ITALY IS THE LARGEST GAMING MARKET IN THE EU Newgioco has well-established operations in one of the largest and most- highly regulated gaming markets Total Gaming Market Size Market Share GGR (€ in billions, 2017) Bet365 (Hillside PLC) 18.23% Italy 20.1 All others25.71% Unite
Slide 21: Market Overview: U.S. Sports Betting
MARKET OVERVIEW: U.S. SPORTS BETTING RECENT LEGISLATIVE CHANGES CREATED A MASSIVE EMERGING MARKET OPPORTUNITY Smartphone apps currently handle ~70% of Nevada sports betting… representing a $4.9B market ~$140M ~$4.6B Active sports betting legislation in the U.S. 10 States enacted online gaming
Slide 22: Installation Branding
INSTALLATION BRANDING RETAIL LOCATION ECONOMICS: • ~$15,000 - $20,000 one-time investment to outfit a retail shop • “Typical” handle for a small town Italian shop is ~$100,000/mth • 10-15% hold will drive GGR of $10,000 - $15,000/mth • Investment payback occurs within the first few months of operati
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