KambiGroup plc Q1 Report 24 April 2020 Agenda 1. Kambi overview - - PowerPoint PPT Presentation

▶

Jul 18, 2023 430 likes •634 views

KambiGroup plc Q1 Report 24 April 2020 Agenda 1. Kambi overview 2. Quarterly highlights 3. Financial update 4. Coronavirus impacts 5. US launches 6. Sports update 7. Q&A Q1 Report 24 April 2020 2 CEO Kristian Nyln & CFO

SLIDE 1

KambiGroup plc

Q1 Report

24 April 2020

SLIDE 2

Agenda

2 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon

1. Kambi overview
2. Quarterly highlights
3. Financial update
4. Coronavirus impacts
5. US launches
6. Sports update
7. Q&A

SLIDE 3

Kambi at a glance

Leading B2B provider of premium end-to-end sports betting services

A global

rganisation

863

employees Odds & trading Risk management Technical platform User interfaces Real-time sports data B2C Operators End User Sports betting value chain

SLIDE 4

Kambi at a glance

− Kambi mainly operates on a revenue share model, thus Kambi’s growth is dependent on its

perators’ success

− The foundation of the strategy is based on scalability and the majority of its cost base is fixed − Continuous investment into proprietary technology to maintain its market leadership − Highest level of corporate probity and integrity

Leading B2B provider of premium end-to-end sports betting services

20+ partners, including: Business model Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon 4

SLIDE 5 revenue growth − Strong financial performance with 33% year-on-year revenue growth − Operator turnover growth of 27% with an operator trading margin of 9.3% − Average daily turnover to 12 March up 47% year-on- year and up 7% sequentially − Took first legal bets in both Illinois and Michigan – Kambi now live in 10 US states

Q1 highlights

Record performance to mid-March

5 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon

33%

Kambi revenue growth

SLIDE 6

Financial headlines

€m

6 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon 15 20 25 30 Q1 Revenue 2020 2019 30 32 34 36 38 40 Net cash at end of Q1 1 2 3 4 5 6 7 8 Q1 Operating Profit

SLIDE 7

Operator trading analysis

Kambi operators' turnover and trading margin

7 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon 221 239 219 242 281 277 254 259 273 307 334 369 398 387 412 560 505 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 100 150 200 250 300 350 400 450 500 550 600 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Turnover Index Margin%

SLIDE 8

Kambi revenue conversion

Q1 2020 vs Q1 2019

8 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% Operator Turnover Growth* FX impact Operator margin impact Taxes/marketing deductibles impact Other** Kambi Revenue Growth * Operator turnover growth shown is based on Q1 2019 exchange rates **Other includes the impact of volume-related commission tiers and fixed revenues

- Denotes components of NGR from which Kambi's revenue share is calculated

SLIDE 9

Income statement

9 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon €m Q1 2020 Q1 2019 Change % FY 2019 Revenue 27.9 21.0 +33% 92.3 Operating expenses 21.1 18.4 +15% 77.6 Operating result1 6.8 2.6 +162% 14.7 Result after tax2 4.8 2.0 +141% 10.4 1 Operating result before items affecting comparability in Q1 2020 (bad debt expense of €0.6m) 2 Result after tax includes items affecting comparability in Q1 2020 (bad debt expense of €0.6m)

SLIDE 10 10

€ ‘000

Q1 Cash flow

43,000 44,000 45,000 46,000 47,000 48,000 49,000 50,000 51,000 52,000 53,000 54,000 55,000 10 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon

SLIDE 11

Financial outlook

11 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon Impact on sporting calendar reduces revenues to 25-30%

f previous levels

Major cost saving programme introduced Quarterly operating costs whilst current circumstances persist will fall by 20-25% Quarterly cash outflow of €7-9m until the sporting calendar resumes Strong Balance Sheet with €46m cash puts us in a good position Q2 cashflow significantly more favourable due to working capital movements

SLIDE 12

Coronavirus mid-to-long-term impacts

Short-term negativity could lead to longer-term opportunity

12 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon − Due to postponements, sporting calendar expected to be busier than normal in coming years − Jurisdictions will expedite regulation of online sports betting due to impact on retail sector − Situation serves as a reminder of the benefits of

utsourcing to a high-quality third-party

− Sports betting industry has previously shown resilience during times of wider economic pressure € million Europe Online Betting GGR 2006 2020 2008 financial crash

SLIDE 13

Making history

First to market in Illinois and Michigan

13 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon − In Illinois, Rush Street’s Rivers Casino in Chicago, Illinois, took the first legal sports bet on 9 March − Two days later in Detroit, Michigan, Penn National’s Greektown Casino launched ahead of the competition − Kambi added Mississippi to its list of active states, with five PNG retail launches, now active in 10 states − Kambi and partners ready for further launches as soon as it is safe to do so and restrictions are lifted

Illinois

One of the most populous states, expected to be key sports betting market

Michigan

Population of c.10m,

n-property sports

betting live with online to follow shortly

SLIDE 14

Setting the pace in the US

14 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon 1st in New Hampshire Took first legal wager 1st in New York Took first legal wager 1st in New Jersey Took first legal

nline wager

1st in Pennsylvania Took first legal

nline wager

1st in Indiana Took first legal online wager 1st in Iowa Launched on first day

f market

1st in Michigan Took first legal wager 1st in Illinois Took first legal wager Colorado Readying launch with partners Kambi currently live Online and retail Retail only Online only

SLIDE 15 20 40 60 80 100 120 140 Turnover Index Daily Indexed Turnover, selected sports, Kambi network 13-31 March 2020 Other Sports Football ESports Table Tennis

Sports turnover

Turnover composition during final weeks of quarter

Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st Turnover focused on football and other sports Table tennis and eSports generated majority

f turnover

SLIDE 16

Leagues and tours set out resumption plans

May, June and July should see return of sports

16 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon The Guardian Fox News BBC Evening Standard

SLIDE 17

Summary

17 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon Measures implemented to mitigate financial impact while protecting long-term future Strong financial performance with 33% revenue growth Resumption of sports will restore momentum displayed in past quarters

SLIDE 18

Q&A

18 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon

SLIDE 19

Thank you

19 Q1 Report – 24 April 2020 CEO Kristian Nylén & CFO David Kenyon