Company Presentation
March 2018
Company Presentation March 2018 Important information Disclaimer - - PowerPoint PPT Presentation
Company Presentation March 2018 Important information Disclaimer This presentation (the "Presentation") has been produced by River iGaming Plc (the "Company") solely for use at presentations to potential investors and other
Company Presentation
March 2018
Important information
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This presentation (the "Presentation") has been produced by River iGaming Plc (the "Company") solely for use at presentations to potential investors and other stakeholders. By reading this Presentation or attending any meeting or oral presentation held in relation thereto, you (the "Recipient") agree to be bound by the following terms, conditions and limitations. The Presentation is for information purposes only and does not in itself constitute, and should not be construed as, an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction. Information contained in this Presentation has not been independently verified. None of the Company or any of its parent or subsidiary undertakings or affiliates, or any directors, officers, employees, advisors or representatives of any
contained in this Presentation is or can be relied upon as a promise or representation by the Company or any of its Representatives. None of the Company or any of its Representatives shall have any liability whatsoever (in negligence
required to conduct its own analysis and acknowledges and accepts that it will be solely responsible for its own assessment of the Company, the market, the market position of the Company, the Company's funding position, and the potential future performance of the Company's business and securities. The Company has not authorized any other person to provide Recipients with any other information related to the Company and the Company will not assume any responsibility for any information other persons may provide. An investment in the Company involves risk, and several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this Presentation, including, among others, risks or uncertainties associated with the Company's business, segments, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this Presentation. An investment in the Company is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of their investment. This Presentation speaks as at the date set out on its front page. Neither the delivery of this Presentation nor any further discussions of the Company with the Recipient shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company assumes no obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation. The contents of this Presentation shall not be construed as financial, legal, business, investment, tax or other professional advice. The Recipient should consult its own professional advisers for any such matter and advice. This Presentation contains certain forward-looking statements relating to inter alia the business, financial performance and results of the Company and the industry in which it operates. Any forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts and are subject to risks, uncertainties and other factors that may cause actual results and events to be materially different from those expected or implied by the forward-looking statements. None of the Company or any of its Representatives provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor do any of them accept any responsibility for the future accuracy of opinions expressed in this Presentation or the actual occurrence of forecasted developments. 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The Company has not authorized any offer to the public of securities, or has undertaken or plans to undertake any action to make an offer of securities to the public requiring the publication of an offering prospectus, in any member state of the European Economic Area which has implemented the EU Prospectus Directive 2003/71/EC. In the event that this Presentation is distributed in the United Kingdom, it shall be directed only at persons who are either "investment professionals" for the purposes of Article 19(5) of the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or high net worth companies and other persons to whom it may lawfully be communicated in accordance with Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "Relevant Persons"). Any person who is not a Relevant Person must not act or rely on this Presentation or any of its contents. Any investment or investment activity to which this Presentation relates will be available only to Relevant Persons and will be engaged in only with Relevant Persons. This Presentation does not constitute an offer of securities for sale into the United States. The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"),
the registration requirements of the Securities Act. In the United States, the securities described herein will (if offered) be offered only to qualified institutional buyers ("QIBs") within the meaning of, and as defined in, Rule 144A under the Securities Act. Outside the United States, the securities described herein will (if offered) be offered in accordance with Regulation S under the Securities Act to non-U.S. persons (as defined in Regulation S). This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts.
Background and introduction
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Background
iGaming company listed in the Norwegian capital markets Introduction to River iGaming
technology, marketing and content providers) servicing both the B2B and B2C market
industry players
iGaming industry, and executing on buy and build strategies
River iGaming is rigged for rapid growth and industry consolidation through M&A
Legal name River iGaming P.l.c Ticker RIVER-ME Listing venue Merkur Market (Oslo) Business iGaming Founded 2017 HQ Malta CEO Kent Staahle
Strategy
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Establish a strong platform for consolidation with a clear buy and build strategy
Value Time
Establishment (2017/2018H1)
Build offering and invest (2018-2020)
technology
Capitalize (2021)
profitability
and geographical expansion
Goals
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Ethics Technology M&A Marketing Innovation
The most efficient iGaming company, driven by focus on cutting edge technology Best in class targeted, big data driven, intelligent marketing, rather than traditional mass marketing Leading consolidator of the iGaming industry Strong focus on new technology and market opportunities Apply the highest ethical standard for an iGaming company, partly by using new technology to block and avoid unwanted customers
Strong underlying market growth with increasing online adaption
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Europe represent 26 % of the global gambling market and 53% of the online gambling market
Source: H2 Gambling Capital
Africa 1% Asia / ME 26% Europe 53% Lat Am / Carib 2% N America 12% Oceania 6% Africa 1% Asia / ME 34% Europe 26% Lat Am / Carib 2% N America 32% Oceania 5%
0% 5% 10% 15% 20% 25% 30% 50 100 150 200 250 300 350 400 450 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017P 2018E 2019E 2020E 2021E 2022E
Global gambling market Global online gambling market Global online Share (%)
Global online gambling share (EURbn)
Global online share in 2017: ~10%
Potential positive effects Potential negative effects
Strong underlying market growth with increasing online adaption
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Increased market size New more effective marketing channels Less competition due to compliance and increased taxes Suppliers absorbs its share of the gaming tax (ref UK market) Improved and more payment solutions
Gaming taxes will decrease profitability Compliance will increase costs
Ireland
Gambling reform back
Belgium
Legal challenges to tax regime
Germany
Revising legislation on
Switzerland
Progressing towards a restricted online casino market
Greece
European Commission pressure to continue
Norway
Parliament to discuss gambling policy
Netherlands
Online gambling bill expected to be passed
Czech Republic
First online gambling licences under the new regime to be issued
Poland
ISP and payment blocking started in July 2017
Sweden
Decision made to introduce license system, expected Q1 2019
Slovakia
Stronger enforcement, including website and payment blocking Licence system EU compliant Monopoly Decision made to introduce license system Licence system, not EU compliant
Several countries have already adopted to an EU compliant license system with more to follow over the next years
Source: H2 Gambling Capital / SEB Equity Research
Buy and build strategy with long target list
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River Game Operations (“RGO”) River Game Intelligence (“RGI”) River Game Technology (“RGT”)
development in a joint venture
Authorities
content, digital marketing agency and production company
party software - but is planning to initiate own tech projects soon
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People Intelligence Technology
River iGaming strive to maintain the highest ethical standard for a gambling company among
customers River iGaming’s ambition is to become a pioneer in the use of artificial intelligence to identify diverging behaviour and to prevent addiction and unhealthy gambling behaviour River iGaming plan to use the newest technology to block and exclude IP addresses from the platform who is identified as potential gambling addicts
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payment industry through his previous positions as Branch and Sales Manager at Sparebank1, Nordic Sales Manager at Nets, Head of Private Banking in Oslo at Sparebank1 and most recently as Director at ODIN Forvaltning.
Norwegian Business School.
Kent Staahle CEO River iGaming P.l.c
advisory services, investment management, equity analysis and as a CFO. He started his career with Citigroup, before working for Reiten & Co, DNB, and later AS Visjå. He also co-founded and managed Explora Capital Management,.
(Industrial Management and Finance) and a MSc in Civil Engineering from NTNU.
agreement entered into between the Company and Evolutio
December 2018.
Johan Jarl Jebsen CFO River iGaming P.l.c
Cherry and Betsson. He has also worked in Fresch Thinking, United Media Group and DG Media. Mr. Larsen is a former professional footballer, playing for several clubs in the Scandinavian top leagues (Skeid, Odd, Strømsgodset, Tromsø, HB Køge and Kalmar).
BI Norwegian Business School.
Kim Larsen COO River iGaming P.l.c
whole career within the iGaming sector. He has worked with CRM for ComeOn!, Cherry, Youwin, Betsson, Virgin Games and Mini Vegas Group.
Manchester Metropolitan University.
Ismael Diagne COO River Game Operations Ltd.
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income and equity sales from Arctic Securities AS. He has also worked with Corporate Finance at Barclays Capital in London.
School of Economics.
Fabian Qvist Chairman River iGaming P.l.c
Services (IMS) at Malta and has been specialized in legal services to the financial sector since 2009.
Fenech Fiott Legal, where she worked from 1999 to 2009.
Malta in 1999.
Kathleen Zarb Adami Director River iGaming P.l.c
payment industry through his previous positions as Branch and Sales Manager at Sparebank1, Nordic Sales Manager at Nets, Head of Private Banking in Oslo at Sparebank1 and most recently as Director at ODIN Forvaltning.
Norwegian Business School.
Kent Staahle Executive Director River iGaming P.l.c
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Summary
CAGR of 16% 2017E-2022E
Strong underlying market growth with increasing
from many different technology providers – all with a traditional mindset (i.e. Television marketing, brand ambassadors (celebs), etc..)
vertical integration
Highly fragmented industry ripe for consolidation
economies of scale by gathering all R&D and brands to one scalable technology platform
users)
Clear strategy to become #1 by applying cutting edge technology
Buy and build strategy with long target list
Strong management team
Appendix
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Global online gambling share (EURbn) European online gambling share (EURbn)
Strong underlying market growth with increasing online adaption European online gambling market is expected to grow with 8% annually from 2017-2022E – from EUR 21bn to EUR 30bn
Overall gambling market shows few signs of cyclicality
Source: H2 Gambling Capital
0% 5% 10% 15% 20% 25% 30% 20 40 60 80 100 120
European gambling market European online gambling market European online Share (%)
0% 5% 10% 15% 20% 25% 30% 50 100 150 200 250 300 350 400 450
Global gambling market Global online gambling market Global online Share (%)
7 % CAGR 7 % CAGR
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European gambling market (EURbn) European online gambling market (EURbn) European mobile gambling market (EURbn)
Strong underlying market growth with increasing online adaption Mobile is transforming the industry – European mobile gambling market expected to grow with a CAGR of 16% 2017-2022E
Mobile – the fastest growing gaming platform
Source: H2 Gambling Capital
85.6 101.4 111.8 2008A 2017P 2022E 0.1 7.5 15.0 2008 2017P 2022E 6.8 21.4 30.8 2008 2017P 2022E
2 % 14 % 8 % 2 % 58 % 16% CAGR CAGR CAGR CAGR CAGR CAGR
Kent Staahle
CEO Kent.Staahle@riverigaming.com