Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Q2 2017 Earnings Presentation
32 slides from Gentoo Media's earnings presentation, Aug 8, 2017
Slide 1: Gaming Innovation Group Q2 2017
Gaming Innovation Group Q2 2017 8 August 2017 Robin Reed, CEO Tore Formo, CFO
Slide 2: Application Economy
APPLICATION ECONOMY MARKETING CLIENT ECO-SYSTEMS ‘GAMING SERVICES PROVIDED e 25 cLENTS aN bl om” GiG sno GAMING wees |) Getao 120 Grsraccsno| ERED dafabet gy Noowncas || LEZ PAYMENT SERVICES PROVIDED visa | @& hs ac WGUTS | Woersrin | Gaeaie” Trustly >Devcode | Qicamine cLoup “ermwane THRILLS | KABO
Slide 3: Creating a leading iGaming company
Creating a leading iGaming company 26.6 Revenues in EUR million 23.1 21.5 14.5 9.7 19 64 48 j | Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
Slide 4: Highlights Q2 2017
Highlights Q2 2017 e All time high revenues for the group - maintaining full year guiding of EUR 120 million exclusive of revenues from acquired operations e GIG Gaming: Geographic expansion to regulated markets driving accelerated growth e GIG Media: Achieving the largest presence in casino related
Slide 5: Financial highlights Q2 2017
Financial highlights Q2 2017 REVENUES COST OF SALES |MARKETING EXPENSES | OTHER OPEX €26.6M | €4.7M €11.1M | €8.9M (15% Q/Q) (6% Q/Q) (2% Q/Q) (9% Q/Q) (174% Y/Y) (224% Y/Y) (209% Y/Y) (140% Y/Y) EBITDA €1.9M -0.4M (Q1 17) 1.0M (Q2 16)
Slide 6: Operational update
Operational update
Slide 7: Group operational update
Group operational update e Over 500 full time employees by June 2017 e Opening new HQ in Malta in late September, where over 200 employees will be based e Due to continued growth, 3,200 SqM of space will be leased in a second building in Malta, opening Autumn 2018 « Two new hires to the management t
Slide 8: B2C - GIG Gaming
B2C - GIG Gaming The B2C segment include Gaming Innovation Groups gaming operators » Revenues up 213% Y/Y and 9% Q/Q EUR million Revenue 20.2 6.4 42.4 - Pro-forma, organic, sequential growth in Marketing cost 116 37 198 underlying core markets of 16% EBITDA (1.9) (1.4) (1.1) - Accelerated geographic
Slide 9: Betit at all time high following migration period
Betit at all time high following migration period Revenue dip during migration, increasing revenues post migration EURmillion 12.000 10 000 8.000 6000 Betit migration 4000 period 2000 Betit completion Post Betit migration Q2 2013 Q32013 Q42013 Q12014 Q22014 Q32014 Q42014 Q12015 Q22015 Q32015 Q42015
Slide 10: Geographic expansion in core markets
Geographic expansion In core markets » Revenues from regulated and near-regulated markets of 51% in the quarter, up from 41% in Q117 » Focus on growth in Nordics, UK, Ireland and Germany - Core markets 86% of revenues e Exited non-core markets in June - Non-core markets 15% of B2C revenues in Q1 17
Slide 11: EBITDA margin derived from marketing spend
EBITDA margin derived from marketing spend Marketing spend vs B2C EBITDA margin 78% 58% 60% 57% 41% oy 52% 1% 35% 37% -59% Q115 «@2'15 «6315 = 4°15 116 216 S316 416 = Q1'17,— 217 —Marketing / revenue (B2C] |©—B2C EBITDA margin « Up-front marketing investment of EUR 7.4 million in Q2 (EUR 7.6m in Q1)
Slide 12: Increased deposits from active players
Increased deposits from active players Active real money players Deposits B2C revenues 1000 players . EURmillion EUR million tear 189" gage 80.4 on2* 73.2* 17.9" 18.5" 66.9* @ 6.0 76 31.1 207 95 14 _ 26.1 6.4 Q22016 Q32016 Q42016 Q12017 Q22017 =GIG = Historic Betlt players on 100% basis Betlt contri
Slide 13: B2B
B2B The B2B segment includes Gaming Innovation Groups cloud based services [iGamingCloud] and digital marketing services (GIG Media} EUR million é Revenues GIG Media 44 8.1 EBITOAGIG Media 30 o6 » All time high B2B revenues, up 108% Y/Y and EBITDA margin GIG Media 68% 67% 6 Revenues *iGC/**BC 4.2 2.
Slide 14: iGaming Cloud platform operating brands
iGaming Cloud platform operating 40 brands 29 external clients signed to the platform e Revenues of EUR 3.5 million in Q2 17, organic growth of 111% Y/Y and 14% Q/Q e 29 external clients operating 40 brands signed to the platform Accumulated numbers - Vegas Partner Lounge migrated their two existing
Slide 15: BettingCloud
BettingCloud e B2B sports betting offering based on the OddsModel* technology acquired in 2016 - BettingCloud utilize and expand the technology to standalone products available to external clients, iGC clients and own brands - First operator launched (Q1 17) was German operator Wetten.com e Developm
Slide 16: GIG Media - lead generation in iGaming
GIG Media- lead generation in iGaming Two main revenue models GIG Media is a performance marketing agency referring paying users to affiliated operators through: 1. Perpetual revenue share IL receive a perpetual revenue share for every first time depositor (“FTD”) Future cash flow distribution 2. On
Slide 17: Creating the leading affiliate in the Nordics
Creating the leading affiliate in the Nordics e The vision of GIG Media is to “Make iGaming universally liked and approachable, by improving the touch points of the industry” e GIG Media now has the largest presence in casino related search results in the Nordic market e The fast organic growth is c
Slide 18: Strengthening GIG's traffic driving capability
Strengthening GIG’s traffic driving capability Number of referred First Time Depositors 21456 12 532 11.413 - : Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 lm Internal/iGC brands = External brands *FTD’s: First Time Depositors e Revenues of EUR 4.4 million in Q2 17 - Y/Y revenue growth of 111% - Organic
Slide 19: Financial update
Financial update
Slide 20: Continued strong growth
Continued strong growth EUR million Revenues EBITDA EBITDA excluded up-front marketing 26.6 23.1 25 145 97 99 16 12 33 44 3.9 1.0 1 19 -0.4 a2 2016 03 2016 04 2016 ai 2017 a2 2017 “*Betlt included from 1 September 2016 (Contributing with EUR 2.7 million in Q3 2016) e All time high revenues of EUR 26
Slide 21: Cash Flow development
Cash Flow development EUR 1000 3053 3132 e Positive cash flow from operations sa e Cash flow from investments of on 25195 EUR 22.5 of which EUR 21.0 (690) acquisition of affiliate e Cash flow from financing activities of EUR 6.0 million, all related to repayment of loans Cashandcash Cash flowfrom Ca
Slide 22: EUR million
EUR million 180 160 140 120 100 80 60 40 20 0 Assets Equity and liabilities
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Slide 24: Outlook
Outlook e Maintain guiding of EUR 120 million in revenues for 2017, exclusive of revenues from acquired operations e Rapid expansion of GIG Gaming brands in Nordics, UK and Western Europe e iGamingCloud to target larger customers through improved BI, infrastructure and architecture e Strong acquisit
Slide 25: Q&A
Q&A 3rd quarter 2017 02.11.2017
Slide 26: Appendix
Appendix
Slide 27: Largest shareholders
Largest shareholders Shareholder #shares % Bryggen Holding AS 118 178 394 13.2% Optimizer Invest Ltd. 103 373 297 11.5% Swedbank Robur Ny Teknik 76 546 645 8.5% Super Innovative Limited (Robin Reed] 64 464 272 7.2% Hans Michael Hansen 50 104 461 5.6% Frode Fagerli 38 424516 4.3% Carnegie Investment
Slide 28: Share performance since May 2015
Share performance since May 2015 0 May 15 Jul 15 Sep 15 Nov 15 Jan 16 Mar 16 May 16 Jul 16 Sep 16 Nov 16 Jan 17 Mar 17 May 17 Jul17 27.05.15: Changed the ticker on OSE to "GIG" Source: Oslo Bors
Slide 29: Income statement
Income statement Condensed Statements of Operations in EUR 1 000 (Unaudited) 2.2017 @2 2016 6M 2016 6M 2016 2016 Revenues 26579 9671 49 653 17577 53 605 Cost of sales 4.680 1444 9046 2738 9-285 Gross profit 21899 8.247 40 607 14839 44 320 Gross profit margin 82% 85% 82% 84% 83% Marketing expenses 11
Slide 30: Cash flow
Cash flow In EUR 1 000 Q2 2017 Q2 2016 6M 2017 6M 2016 2016 Cash flow from operating activities 3054 971 9216 ~632 2221 Cash flow from investment activities -22515 4135 -24 465 -4 208 -5 061 Cash flow from financing activities -5 967 2116 34 948 5920 7052 Translation gain -1:987 -167 -1835 -203 -200
Slide 31: Balance sheet
Balance sheet Condensed Balance Sheet in EUR 1 000 (Unaudited) 30.06.17 30.06.16 2016 Assets Goodwill 63 675 24 252 63.955 Intangibles and other non-current assets 66 647 21 655 43 638 Total non-current assets 130 322 45 907 107 593 Other current assets 13 873 9 837 12 680 Cash and cash equivalents
Slide 32: Gaming Innovation Group Inc. structure
32 GAMING INNOVATION GROUP INC. DELAWARE GAMING INNOVATION GROUP LTD. GO Listed on the Oslo Bors B2B B2C AFFILIATE MARKETING CLOUD SERVICES CANDID GAMING LTD. ZECURE GAMING LTD. Innovation Labs Ltd. iGaming Cloud Ltd. | Malta } | Malta } (Malta) {Malta} @ lan (®vetspin RIZK INNOVATION GO —— Labs iGA
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