Company Presentation March 2018 Important information Disclaimer - - PowerPoint PPT Presentation

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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


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Company Presentation

March 2018

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Disclaimer

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

  • f the aforementioned (collectively the "Representatives") make any representation or warranty (express or implied) whatsoever as to the accuracy, completeness or sufficiency of any information contained herein, and nothing

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

  • r otherwise) arising directly or indirectly from the use of this Presentation or its contents, including but not limited to any liability for errors, inaccuracies, omissions or misleading statements in this Presentation. The Recipient will be

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. 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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"),

  • r with any securities regulatory authority of any state or other jurisdiction in the United States, and may not be offered or sold within the United States, absent registration or under an exemption from, or in a transaction not subject to,

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.

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River iGaming – an industry consolidator with technology focus

Background and introduction

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Background

  • iGaming industry is rapidly growing, and in parallel becoming a more regulated industry
  • New regulations would increasingly favor larger players and drive consolidation
  • The iGaming industry has become a solid sector in the Swedish capital markets
  • In Norway, investors have recently discovered the attractiveness of this sector and interest is increasing
  • Hence, the initiators behind River iGaming believe there is both solid industrial and financial arguments for establishing a new

iGaming company listed in the Norwegian capital markets Introduction to River iGaming

  • River iGaming’s strategy is to own an attractive ecosystem of companies throughout the iGaming value chain (i.e. operators,

technology, marketing and content providers) servicing both the B2B and B2C market

  • All investments shall have a strong stand-alone business case, as well as contribute to synergies within the ecosystem
  • River iGaming is planning to grow rapidly through consolidation driven by a strong management team and partnerships with leading

industry players

  • River iGaming has a management group and shareholder structure with high competence and proven track record within the

iGaming industry, and executing on buy and build strategies

  • River iGaming is registered on Malta and listed at Merkur Market in Oslo

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

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River iGaming's strategy...

Strategy

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Establish a strong platform for consolidation with a clear buy and build strategy

Value Time

Establishment (2017/2018H1)

  • Hire solid management team
  • Complete first acquisitions
  • Listing on Merkur Market in Oslo

Build offering and invest (2018-2020)

  • Multiple acquisitions
  • Invest heavily in marketing and

technology

  • Strong focus on revenue growth

Capitalize (2021)

  • Above industry growth and

profitability

  • Continued accretive acquisitions

and geographical expansion

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...and long term goals

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

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Gambling – an approx. EUR 400bn market globally

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%

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Potential positive effects Potential negative effects

Significant upside potential from upcoming re-regulations

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

  • n legislative agenda

Belgium

Legal challenges to tax regime

Germany

Revising legislation on

  • nline sports betting

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

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Contemplated business structure

Buy and build strategy with long target list

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River Game Operations (“RGO”) River Game Intelligence (“RGI”) River Game Technology (“RGT”)

  • Completed acquisition of Vegas Casino
  • New and innovative casino concept under

development in a joint venture

  • Initiated license process with Maltese Gaming

Authorities

  • In discussions with potential targets
  • Completed acquisition of Fire Media (75%), a

content, digital marketing agency and production company

  • River Gaming Technology is currently using third

party software - but is planning to initiate own tech projects soon

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Strong focus on ethics and compliance

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People Intelligence Technology

River iGaming strive to maintain the highest ethical standard for a gambling company among

  • ur employees and for our

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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Executive management team

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  • Staahle has extensive experience from the banking and

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.

  • Staahle holds a MSc in Marketing and Economics from BI

Norwegian Business School.

  • Staahle is also a member of the board in River iGaming P.l.c.

Kent Staahle CEO River iGaming P.l.c

  • Jebsen has filled a wide variety of positions within corporate

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,.

  • Jebsen holds a MSc in Ocean Systems Management from MIT

(Industrial Management and Finance) and a MSc in Civil Engineering from NTNU.

  • Jebsen is hired as CFO under the terms of a consultancy

agreement entered into between the Company and Evolutio

  • AS. The consultancy agreement remains in force until 31

December 2018.

Johan Jarl Jebsen CFO River iGaming P.l.c

  • Larsen has deep iGaming experience from manager positions in

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).

  • Larsen holds a Bachelor of Marketing and Communication from

BI Norwegian Business School.

Kim Larsen COO River iGaming P.l.c

  • Diagne has extensive knowledge of CRM and has spent his

whole career within the iGaming sector. He has worked with CRM for ComeOn!, Cherry, Youwin, Betsson, Virgin Games and Mini Vegas Group.

  • Diagne holds an MSc in Marketing Management from The

Manchester Metropolitan University.

Ismael Diagne COO River Game Operations Ltd.

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Board of Directors

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  • Qvist serves as Head of Investments at Klein Group AS.
  • He has extensive experience with debt capital markets, fixed

income and equity sales from Arctic Securities AS. He has also worked with Corporate Finance at Barclays Capital in London.

  • Qvist holds an MSc in Economics and Business from Stockholm

School of Economics.

Fabian Qvist Chairman River iGaming P.l.c

  • Adami is Associate Partner at International Management

Services (IMS) at Malta and has been specialized in legal services to the financial sector since 2009.

  • She was previously Partner in the Malta-based law firm Farrugia

Fenech Fiott Legal, where she worked from 1999 to 2009.

  • Adami obtained her doctorate in law from the University of

Malta in 1999.

Kathleen Zarb Adami Director River iGaming P.l.c

  • Staahle has extensive experience from the banking and

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.

  • Staahle holds a MSc in Marketing and Economics from BI

Norwegian Business School.

  • Staahle also serves as CEO of River iGaming P.l.c.

Kent Staahle Executive Director River iGaming P.l.c

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Key Investment Highlights

Summary

  • Gambling market of approx. EUR 400bn globally, where only 10-12% is online gambling
  • End-users migrating towards online / mobile platforms. European mobile gambling market expected to grow with a

CAGR of 16% 2017E-2022E

  • Substantial upside potential from licensing and re-regulations

Strong underlying market growth with increasing

  • nline / mobile adaption
  • Currently a fragmented industry with many stand alone brands (operators) with a mix of technological solutions

from many different technology providers – all with a traditional mindset (i.e. Television marketing, brand ambassadors (celebs), etc..)

  • Consolidate and build an ecosystem of companies throughout the iGaming value chain – both horizontal and

vertical integration

Highly fragmented industry ripe for consolidation

  • Build in-house cutting edge technology - mobile first and cloud scalability to drive improved user experience and

economies of scale by gathering all R&D and brands to one scalable technology platform

  • Capitalise on big data, machine learning and AI – huge impact on marketing efficiency and ethics (avoid wrong

users)

  • Huge potential in taking cutting edge technology into an industry dominated by traditional players

Clear strategy to become #1 by applying cutting edge technology

  • First acquisitions completed
  • Target list and clear M&A screening criteria’s established
  • In discussions with potential targets

Buy and build strategy with long target list

  • Strong management team in place
  • Extensive deal flow and sector competence

Strong management team

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Appendix

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Global online gambling share (EURbn) European online gambling share (EURbn)

Strong underlying market growth...

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)

...with increasing online / mobile adaption

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

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Contact

Kent Staahle

CEO Kent.Staahle@riverigaming.com