Bragg Gaming Group Inc. · TSX:BRAG
Bragg Gaming — H1 2021 Earnings Presentation
20 slides from Bragg Gaming's earnings presentation, August 2021
Slide 1: First Half 2021 Results
First Half 2021 Results August 2021 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") which are based upon Bragg Gaming Group Inc.'s (the "Bragg") current internal expectations, estimates, projections, assumptions an
Slide 3: Q2-21 Revenue and EBITDA Ahead of Expectations
Q2-21 Revenue and EBITDA Ahead of Expectations Q2 2021 Financial Highlights1 Historical Financial Overview in Four Charts Revenue (€’m) Adj. EBITDA (€’m) /Margins ‣ Revenue increased by 27.6% to €15.5M 18,0 2,5 2,3 25,0% 15,5 16,0 ‣ Wagering generated by customers up by 15.9% to €3.8B 14,0 13,8 14,2
Slide 4: Q2-21 EBITDA Reconciliation
Q2-21 EBITDA Reconciliation Reconciliation Operating loss (Income) to Adj. EBITDAz (1) Share based payment : awards to new directors and management in Q1 2021 Three Months Ended June 30, Six Months Ended June 30, composed of DSUs and RSUs. EUR 000 2021 2020 2021 2020 (2) Transaction and acquisition
Slide 5: Solid Working Capital and Balance Sheet
Solid Working Capital and Balance Sheet Balance sheet and Net working capital Cash flow and financial resources As at As at Six Months Ended June 30, June 30, December 31, EUR 000 2021 2020 EUR 000 2021 2020 Cash and cash equivalents 20,966 26,102 Current assets 10,638 10,708 Operating activities 2,
Slide 6: Germany Trending In-line With Expectations Since 1 July
Germany Trending In-line With Expectations Since 1 July German revenue to represent less than • German revenue out-performed in H1 2021 and 15% of group revenue by December 2021 represented 65% of total revenue 4,5 80% 4,0 70% • From 1 July 2021 player behavior and invoiced revenue 3,5 has trended i
Slide 7: Revenue & Adjusted EBITDA FY 2021-Guidance
Revenue & Adjusted EBITDA FY 2021-Guidance Revenue Bridge €’m • Germany Regulatory Effect: expectancy of revenue drop as a result of 4,0 2,0 new regulatory environment, effective 1st July and impact on H2 2021. 8,2 4,8 • Market Growth: expect to gain market share in existing markets such as Romania,
Slide 8: 2022 Revenue Bridge & Guidance
2022 Revenue Bridge & Guidance 2022 Revenue Guidance set at €54m to €56m FY 2022 Revenue €54m - €56m Mid point of €55m 43,9 46,8 38,6 40,8 35,0 31,0 31,0 FY2021 German Regulatory New Markets New Clients Market Growth 2021 Pipeline Content Acquisition FY 2022 Effect • German Regulatory Effect: As FY
Slide 9: Strategic Growth Initiatives
Strategic Growth Initiatives Bragg is well positioned for future growth Expand to Develop Games Expand Offering with Focus on Core New Markets through Owned Studios New Exclusive Content Business Growth Regulated & Regulating Markets New Proprietary Content Exclusive Content New Customers ‣ Bragg ex
Slide 10: Wild Streak Acquisition
Wild Streak Acquisition Closed June 2, 2021 | TEV of $30m - $10m cash/$20m stock1 Wild Streak Overview Quick Facts2 A game studio specializing in premium casino slot 40 13 11 Games2 No of Employees Live U.S. Customers game design supporting land-based casinos, online real money casinos and social ga
Slide 11: Wild Streak Gaming Online Growth
Wild Streak Gaming Online Growth Wild Streak Revenue: Q1 2021 – FY 20221 Significant growth in online revenue projected between 6 Q1 2020 and FY 2022: 5 Projected FY 2021 v FY 2022 ● With just seven games live online as at end Q1 2021 Online Revenue Growth 4 ● Roadmap of new online games ready to be
Slide 12: Encouraging Wild Streak Growth in Europe
Encouraging Wild Streak Growth in Europe Wild Streak Performance in Europe1 • Four new titles launched in H1 2021 with Pragmatic Play Strong • Strong and sustained performance performance • Strong growth in GGR since January launch Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Congo Cash Temujin Treasur
Slide 13: Promising Retention on Wild Streak Slots
Promising Retention on Wild Streak Slots Wagering retention on Q1 Slots Releases: Wild Streak v Other Exclusive 3rd Party Game Releases 100% 80% Wagering Compared to First 30 Days 60% 40% 20% 0% 1-30 31-60 61-90 91-120 121-150 DAYS SINCE LAUNCH Wild Streak Gaming All Exclusive 3rd Party Wild Streak
Slide 14: Spin Games Acquisition
Spin Games Acquisition Announced May 12, 2021 | TEV of $30m - $10m cash/$20m stock1 2 Spin Overview Quick Facts3 Established U.S. B2B online casino RGS4 and 4 Licensed Jurisdictions NJ, PA, MI & BC 30+ Proprietary games content aggregation service provider built on proprietary technology 30+ Custome
Slide 15: Bragg TAM to Increase 6 Fold to US$18.4 billion in 2022
Bragg TAM to Increase 6 Fold to US$18.4 billion in 2022 • Bragg has historically operated and targeted United New Markets in 2022: Kingdom $15.6 billion markets that represent only US$2.8 billion • UK is a US$5.5 billion market2 • Italy is a US$2 billion market Italy Others Germany • Bragg expects t
Slide 16: Significant Growth Opportunity Through Proprietary and Exclusive Content
Significant Growth Opportunity Through Proprietary and Exclusive Content Bragg continues to invest in its in-house gaming content and to integrate new exclusive content providers Proprietary, in-house studios we capture ~ 100% of revenue We capture ~ 25-35% of revenue from exclusive games from 3rd p
Slide 17: Our Roadmap for Expanding Our Market Reach
Our Roadmap for Expanding Our Market Reach TAM by Markets Active for Bragg, USD billions 40.6 18.4 Bragg’s TAM expected to more than double in size between 12.2 RoW FY 2022 and FY 2025 North America UK 5.4 3.3 Italy 2.8 New EU** Existing* Q1-2021 Q2-2021 Q3-2021 Q4-2021 FY 2022 FY 2025 - * Bragg’s e
Slide 18: More Exclusive Games & Greater Proportion from In-house
More Exclusive Games & Greater Proportion from In-house Europe & non-U.S.1 North America2 58 45 36 39 38 22 34 24 19 33% 4 17 5 11% 11 10 6 37% 2020 2021 2022 2020 2021 2022 Gamomat Oryx Other 3rd Party Exclusive Wild Streak Oryx Other 3rd Party Exclusive Increasing proportion of in-house proprietar
Slide 19: What is changing: Gross Profit Margin
What is changing: Gross Profit Margin 2020 Bragg gross profit margin profile by product Future profile including M&A Margin: Margin: Proprietary Content Proprietary Content Margin: Margin: Exclusive 3rd Party Platform Margin: • Third party casino revenue Margin: Margin: 43% Aggregated 3rd to reduce.
Slide 20: Conclusion: Bragg is Well Positioned for Profitable Future Growth
Conclusion: Bragg is Well Positioned for Profitable Future Growth 1 Content-led strategy with increased focus on proprietary in-house game development 2 Significant Adjusted EBITDA margin expansion opportunities by capturing a greater share of revenue generated 3 Robust, proprietary tech stack focus