Slide 1: Betsson AB Presentation Q3 2011
Betsson AB Presentation QS 2O0]1 betssonS. Q3 2011 Third quarter revenues increased by 2] percent CEO Magnus k Silverberg
Slide 2: Introduction
Introduction B2C – Business to Consumers B2B – Business to Business Financial Presentation Legal Update Events after Q3 Q&A
Slide 3: Introduction
Betsson AB Presentation QS 2O0]1 betssonS. Introduction
Slide 4: Listed on Nasdaq OMX Nordic, Mid Cap (BETS)
378 employees + 171 full time consultants Listed on Nasdaq OMX Nordic, Mid Cap (BETS) Market Cap of approximately € 670 000 000 Betsson competes with national monopolies but also with peers, such as Unibet, Ladbrokes, Sportingbet, Bwin.party and similar
Slide 5: High growth in combination with strong margins
High growth in combination with strong margins Manage to invest during operation, constantly investing in IT-infrastructure and partnerships while managing operations Revenue Growth EBIT-Margin 2007 121% 29.3% 2008 60% 26.7% 2009 25% 24.4% 2010 23% 23.7% 2011 (Q3) 21% 32.8%
Slide 6: B2C - Business to Consumers
Betsson AB Presentation Q3 20ll betsson$. — ~ S = B2C - Business to Consumers
Slide 7: Raise or fold? Find the poker action here!
Betsson AB Presentation QS 20] betsson'S. betsson q ses Raise or fold? Find the poker action here!
Slide 8: Biggest online Jackpot ever of EUR 11.7 million went out on Mega Fortune
Biggest online Jackpot Integration of Betsafe is Betsson has applied for ever of EUR 11.7 million developing according to gaming licenses in Italy went out on Mega Fortune plan and Denmark New Mobile Live Score Betsafe delivered Gross application launched Profit of SEK 102.6 million
Slide 9: B2B - Business to Business
Betsson AB Presentation QS 2O0]1 betssonS. B2B - Business to Business
Slide 10: Betsson Business Solutions
betsson BUSINESS SOLUTIONS erations Home Aboutus | Partnership | Products * — YOUR ONLINE GAMING PARTNER Betsson Business Solutions is a dedicated business area within the Betsson Group, acting as an independent B2B division for all our brands and products. WHO WE ARE HOW WE WORK WHAT WE OFFER
Slide 11: NorgesAutomaten.com
Betsson AB Presentation Q3 20]l betsson NorgesAut@maten.com
Slide 12: Gunners Gaming, Harrycasino, Dhoze partnerships
www.gunnersgaming.com The underlying activity is The project in China is Collaboration with steadily increasing developing according to Arsenal, under the brand plan. A beta version of a name; “Gunners Gaming gaming site is currently by Betsson” being run under the www.harrycasino.com license of t
Slide 13: Betsson and Arsenal signs 3 year deal
Betsson and Arsenal signs 3 year deal Betsson to provide new white label site; Gunnersgaming.com Betsson also provides In-Stadia betting through subcontractor Arsenal has 200.000 members world wide
Slide 14: Financial Presentation
Betsson AB Presentation Q3 2011 betssonS. Financial Presentation
Slide 15: Revenues amounted to SEK 465.7 million
Revenues amounted to SEK 465.7 (385.1) million and the operating margin amounted to 32.8 percent (21.0 percent) Operating income amounted to SEK 152.8 (80.7) million, equivalent to an increase of 89 percent Earnings per Share SEK 3.40 (1.94) Numbers in gray = Q3 2010
Slide 16: Customer deposits increased by 62%
Customer deposits increased by 62% Cash by end of period SEK 490.3 million (377.3) Betsson has no outstanding interest- bearing liabilities Numbers in gray = Q3 2010
Slide 17: Quarterly revenue development
M SEK 600 500 465.7 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2007 2008 2009 2010 2011
Slide 18: Product and Geographical Split
Betsson AB Presentation Q3 201 betsson’S. Product and >) Geographical Split 7\
Slide 19: B2B vs B2C revenue split
32% B2B, Business to business B2C, Business to 68% consumers
Slide 20: Revenue by product
M SEK 450 400 8.4 21.5 350 300 84.1 250 Other 200 Poker Sportsbook 150 Casino 100 275.1 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011
Slide 21: Product split: Casino, Sportsbook, Poker
6% 2% Casino 22% Sportsbook Poker Other 71%
Slide 22: Geographical split
3% 22% Nordic Countries Other Europe 0,5% EU, outside Nordic region Rest of the world 75%
Slide 23: Key Performance Indicators
Betsson AB Presentation QS 2O0]1 betssonS. Key Pertormance Indicators
Slide 24: Active customers
Thousand 450 400 382 900 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2008 2009 2010 2011
Slide 25: Registered customers
Thousand 4 000 3 424 100 3 500 3 000 2 500 2 000 1 500 1 000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2008 2009 2010 2011
Slide 26: Active Customers in a longer perspective
Y/Y Q/Q Active Customers 50% 14% Registered Customers 21% 6% Revenue 21% 38% Customer Deposits* 62% 29% Gross Turnover SB* 49% 1% The measure Active Customers shall be seen in a longer perspective * Including all of Betsson’s gaming solutions
Slide 27: Gross Turnover SB and Gross Margin SB
SEK million 2011 – Q3 2011 – Q3 3rd PARTY 2010 –Q3 2010 – FY SB SB Gross Turnover SB 527.7 1288.9 1215.7 5355.7 Gross Margin SB 7.6% n.a. 8.6% 7.8% Gross Profit 24.5 59.6 89.5 367.7
Slide 28: Legal Update
Betsson AB Presentation Q3 201 betsson$. Legal Update
Slide 29: Italy, Denmark and Spain regulation
Italy’s now implemented cash games decree enables licensed operators to add cash poker and casino games to their tournament games Betsson has applied for license Denmark’s new regulation has been approved and is currently being implemented. Betsson has applied for license The Spanish online gaming r
Slide 30: Netherlands, Sweden and Germany regulation
Dutch government recently changed its stance completely and announced its plans to grant licences for internet gaming. It is currently discussing to introduce national licences for online betting, poker, casino and lottery. Liberalisation of this market is likely to happen 2012 or 2013 There are som
Slide 31: Events after Q3
BetssonAB Presentation Q3 201 betsson$. Fvents after Q3
Slide 32: Stable activity level going into fourth quarter
The activity level going into the fourth quarter is stable, with revenues somewhat over the monthly average revenue in the third quarter On 17 October, Betsson applied for a gaming license for the Danish market
Slide 33: AB Presentation Q3 2011
Betsson AB Presentation Q3 20]