Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Investor Presentation (2019)
51 slides from Gentoo Media's investor presentation, 2019
Slide 1: Gaming Innovation Group Inc. Company Presentation
Gaming Innovation Group Inc. Company Presentation 2019 www.gig.com
Slide 2: Outline
Outline • GiG overview • Financials • GiG driving forward • Sustainability • Market dynamics • Appendix 2
Slide 3: We are GiG
B2B Solutions and B2C Operators ● GiG is a technology company operating in the global iGaming industry, offering B2B cloud-based services and performance marketing plus its own B2C brands Full Service We are GiG ● Through its operational experience, GiG is positioned as a full service and turnkey pr
Slide 4: GiG in brief
Revenue by Segment (Group) GiG in brief 650+ €50m Approx. Revenue by Type of Market (B2C) Employees Market cap Offices in Malta, Dual-listed Denmark, Gibraltar, on Oslo Børs and at Norway, Spain, USA Nasdaq Stockholm Licences in Malta, UK, Revenue by Geography (B2C) 4 own brands and New Jersey, Swed
Slide 5: Head figures development
Head figures development 12 months rolling revenues 12 months rolling EBITDA EUR million EUR million 5
Slide 6: GiG has everything needed to create, run and market an online gambling operation
GiG has everything needed to create, run and market an entire online gambling operation 6
Slide 7: iGaming solutions based on innovative technology
iGaming solutions based on innovative technology Products and services throughout the entire iGaming value chain iGaming value chain Technical Platform, Content & Ancillary Sportsbook Marketing Operators Services Platform Sports Betting Media Gaming Services Services Services operators B2B B2B B2B B
Slide 8: It might seem simple…
It might seem simple… 8
Slide 9: ...but reality is far more complex
...but reality is far more complex VIP Management Casino Supplier Support Compliance Media Ancillary Services Providers SEO Game Providers Google Ads/SEM Payment Providers Social Media Sports Providers Permission Marketing Odds Providers Affiliates 9 9
Slide 10: So what does this actually mean?
So what does this actually mean? 10 10
Slide 11: GiG supports operators in every step
GiG supports operators in every step From digital intent to digital transformation Land-based casino Digital interest Digital intent Digital Launch Digital Transformation sweetspot 11
Slide 12: A global partner
A global partner For brands entering into or developing its iGaming business, providing: Modern tech stack Dedicated team Scalable platform New features to to increase margins, drive revenue cost efficiency 12
Slide 13: One account, multiple opportunities
One account, multiple opportunities The full omnichannel solution from GiG offers a seamless integration between offline and online Flexible solutions empowering the build of a unique offering We empower our partners to build their brands by creating the tools to be unique. Whether they need an inte
Slide 14: Financials
Financials
Slide 15: Gaming operators (B2C)
Q3 2019 - Quarterly Results Gaming operators (B2C) Repositioning from multi-brand strategy in 2018 yielding EUR million positive results GiG Gaming - Revenue & EBITDA (MEUR) • EBITDA reached an all-time-high of €2.4m despite the continued market challenges in Sweden affecting revenues • Rizk was the
Slide 16: Media services (B2B)
Q3 2019 - Quarterly Results Media services (B2B) EUR million Media Services & EBITDA (MEUR) • Revenues temporarily impacted by declining player values mainly in Sweden and Norway and lower Google rankings in mature markets, this is expected to revert to previous high rankings and growth in new marke
Slide 17: Platform services (B2B)
Q3 2019 - Quarterly Results EUR million Platform services (B2B) Platform Services - Revenue & EBITDA (MEUR) Transition to SaaS from White Label model • Revenues declined mainly due to the termination of a major customer in 2018 impacting YoY revenues by €2.7m together with the impact from the Swedis
Slide 18: Sports betting services (B2B)
Q3 2019 - Quarterly Results Sports betting EUR million Sports Betting Services - Revenue & EBITDA (MEUR) services (B2B) • New leadership group in sportsbook with definite target to breakeven (incl. contribution from B2C NGR) in H1 2020 driven by the Guts brand • Focused market approach, initially on
Slide 19: Bond structure & loans
Q3 2019 - Quarterly Results Bond structure & loans Gaming Innovation Group Plc. issued a new SEK400 million senior secured bond with a SEK1,000 million borrowing limit on 28 June 2019. The bond matures in June 2022 and will be listed on Nasdaq Stockholm in H2 2019. SEK350 million of the new bond iss
Slide 20: Driving Forward
Driving Forward
Slide 21: A sustainable strategy
A sustainable strategy The global partner for strong brands in iGaming Improved Marketing More Volumes Unique, complete and scalable offering enables a virtuous circle of growth By owning the value chain Better User Increased we improve margins Experience Gross and decrease price points for all Prof
Slide 22: 2019 Highlights & developments
2019 Highlights & developments ● Launched omnichannel sportsbook with partner Hard Rock International in New Jersey and Iowa, USA ● Signed and launched with SKYCITY Entertainment Group in New Zealand for a fully managed casino solution ● Granted affiliate vendor registration in New Jersey, US and in
Slide 23: Cost savings & initiatives
Cost savings & initiatives Actions taken over the last year have lead to a YTD Headcount – end of quarter reduction in reported other operating expenses of €5.2m Initiatives: ● Strengthened cash flow by appr. €250K per month from November by halting investments in GiG Games ● A new tech infrastructu
Slide 24: What’s next?
What’s next? ● Enable cost and scale advantages for the industry by connecting operators, suppliers and end users through the GiG platform ● Develop the technology and product to enable full business potential ● Scale the network through growing our own operators and the high-margin media business i
Slide 25: Focus going forward
Focus going forward ➣ Unleash underlying value in the business ➣ Adjust into a new reality with regulation ➣ Focus on ROI in our capital allocation 25
Slide 26: Operational focus points
Operational focus points B2C ● Focusing on building B2C with fewer and larger brands and more efficient marketing channels ● Expanding in less mature and high-potential market ● Key focus on a sustainability model for regulated markets by focusing on player safety and UX B2B ● Accelerating B2B sales
Slide 27: Sustainability
Sustainability 27
Slide 28: A sustainable business for customers, end users and employees
A sustainable business for customers, end users and employees Three priority areas in GiG’s social responsibility with reporting built on regulation and international standards Fair and Safe Responsible iGaming Marketing and Advertising Sustainability Priority Areas Encourage Employees to Thrive 28
Slide 29: Fair & Safe iGaming
A sustainable business for customers, end users and employees Three priority areas in GiG’s social responsibility with reporting built on regulation and international standards Fair & Safe iGaming ▪ Ensuring consumer protection, building trust in a fair and safe player environment Fair and Safe iGam
Slide 30: Responsible Marketing & Advertising
A sustainable business for customers, end users and employees Three priority areas in GiG’s social responsibility with reporting built on regulation and international standards Responsible Marketing & Advertising ▪ GiG conducts marketing and advertising in a responsible and transparent way in accord
Slide 31: Encourage Employees to Thrive
A sustainable business for customers, end users and employees Three priority areas in GiG’s social responsibility with reporting built on regulation and international standards Encourage Employees to Thrive ▪ Invest in creating inspiring office environments where employees can collaborate as a team
Slide 32: Other initiatives
A sustainable business for customers, end users and employees Three priority areas in GiG’s social responsibility with reporting built on regulation and international standards Other initiatives ▪ GiG has formed a trade body in Norway in collaboration with the industry to coordinate efforts to reduc
Slide 33: Market Dynamics & Trends
Market Dynamics & Trends
Slide 34: The strongest driver for growth is the transition from offline to online gambling
The strongest driver for growth is the transition from offline to online gambling Total Expected Market Growth 2018e - 2023e 2.5% Total Actual Market Growth 2003 - 2017 3.6% 34 CAGR - Compound Annual Growth Rate
Slide 35: Underlying drivers: internet connectivity, mobile devices, online payments
Underlying drivers: internet connectivity, increased usage of mobile devices and availability of online payment methods 35 Source: H2GC , All Data Gross Win
Slide 36: The world is regulating. Then What?
The world is regulating. Then What? 20+ markets have been ‘online’ regulated in the past 5 years. We believe all markets will be regulated within 15-20 years time. 36
Slide 37: Increased regulation is changing the dynamics
Increased regulation is changing the dynamics Margin Marketing Taxation Unregulated Advertising prohibited, however occurring through various channels Uncertainty No tax for offshore regarding future Many jurisdictions allow operators legislation advertising through offshore TV broadcasters Licensed
Slide 38: Consolidation is happening
Consolidation is happening ● Limited number of country licences leads to new co-operations ● Consolidation is happening across all verticals globally ● This is a result of increased pressure on margin due to regulation and compliance ● Industry giants are scaling up by merging or acquiring each othe
Slide 39: … and creating opportunities in the US
… and creating opportunities in the US 13 Live legal single game states sports betting DC+5 Authorised sports betting, states not yet operational 6 Active 2019 sports betting states legislation/ballot 39
Slide 40: WSN sports betting site screenshots
= 7) WD) phitaderphid eagtes vs Minnesota Vikings: Rpediction: Odds (NFL I State Guides v \ > Week 6) © / 2 Betting Guides v Bet on Fantasy Sports with These Websites © Yigg stings Sportsbooks Blog FanDuel \7)] Betting Tools Latest Predictions, Odds & News GiG
Slide 41: WSN organic keywords
WSN organic keywords Organic keywords | 39,516 Sports betting USA People also search for Svan y | Position | nj sports betting ( Jersey City, New Jersey, United States) | wsn.com
Slide 42: aay
aay —s
Slide 43: Summary
Summary 1. Robust underlying global gambling market growth, driven by technology, online and mobile gambling 2. Regulation enables sustainable growth, protecting end users with a safe and responsible environment 3. Industry consolidation opens up global opportunities 4. GiG has positioned itself for
Slide 44: Thank You!
Thank You! 44
Slide 45: Appendix
a Appendix GS Cig 45
Slide 46: Largest shareholders September 2019
Q3 2019 - Quarterly Results Largest shareholders 30 September 2019 GAMING INNOVATION GROUP INC. 1 8,300,000 9.2 % Swedbank Robur Ny Teknik 2 6,446,427 7.2 % Super Innovative Ltd. 3 5,150,687 5.7 % Andre Lavold 4 4,696,125 5.2 % Henrik Persson Ekdahl 5 4,360,445 4.8 % Hans Mikael Hansen 6 4,215,022 4
Slide 47: Income statement
Income statement Q3 2019 - Quarterly Results Condensed Statements of Operations in EUR 1 000 (Unaudited) Q3 2019 Q3 2018 9M 2019 9M 2018 2018 Revenues 30 226 37 283 93 621 111 507 151 372 Cost of sales 6 672 6 348 19 693 19 562 27 358 Gross profit 23 554 30 935 73 928 91 945 124 014 Gross profit mar
Slide 48: Cash flow
Q3 2019 - Quarterly Results Cash flow In EUR 1 000 Q3 2019 Q3 2018 9M 2019 9M 2018 2018 Cash flow from operating activities 2 351 422 10 339 10 680 12 484 Cash flow from investment activities -2 027 -2 618 -9 676 -9 176 -12 386 Cash flow from financing activities -4 424 - -4 148 - 2 374 Translation
Slide 49: Balance sheet
Q3 2019 - Quarterly Results Balance sheet Condensed Balance Sheet in EUR 1 000 (Unaudited) 30 September 2019 30 September 2018 31 Dec 2018 Assets Goodwill 69 396 69 681 69 570 Intangibles assets 57 084 85 580 69 253 Deposits and other non-current assets 22 265 8 385 8 061 Total non-current assets 14
Slide 50: Cash position
Q3 2019 - Quarterly Results Cash position 50
Slide 51: Legal disclaimer
Legal disclaimer Gaming Innovation Group Inc. gives forecasts. Certain statements in this report presentation are forward-looking and the actual outcome may be materially different. In addition to the factors discussed, other factors could have an impact on actual outcomes. Such factors include deve
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