Q 1 - 2 0 2 0 2 0 2 0 - 0 5 - 0 6 PRESENTERS GUSTAF HAGMAN STEFAN - PowerPoint PPT Presentation

Q 1 - 2 0 2 0 2 0 2 0 - 0 5 - 0 6

PRESENTERS GUSTAF HAGMAN STEFAN NELSON GROUP CEO GROUP CFO 2

Q1 2020 HIGHLIGHTS R E V E N U E O R G A N I C G R O W T H D E P O S I T I N G C U S T O M E R S +4 % 89.4 MEUR 413 269 +3.1 MEUR +6% E B I T D A N D C S R E G U L A T E D S H A R E 53 % 9.0 MEUR 193 428 10.0% MARGIN +3% 5 0 % I N Q 1 2 0 1 9 3

100 40 60 80 90 20 50 70 30 10 REVENUES SINCE LAUNCH (MEUR) 0 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1 2014-Q2 2014-Q3 2014-Q4 2015-Q1 2015-Q2 2015-Q3 2015-Q4 2016-Q1 2016-Q2 2016-Q3 2016-Q4 2017-Q1 2017-Q2 2017-Q3 2017-Q4 2018-Q1 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2019-Q3 2019-Q4 89.4 89.4 2020-Q1 4

PRODUCT MIX (GROSS GAMING REVENUE) – Q1 2020 74% 17% 9% C A S I N O C L A S S I C L I V E C A S I N O S P O R T 5

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MARKET AND COVID-19 UPDATE C O V I D - 1 9 R E S P O N S I B L E G A M I N G Covid-19 - The mid term effects are hard to assess and conditions Duty of Care are constantly changing - Operations so far conducted without major disruptions - Regardless of the situation LeoVegas always puts the - Covid-19 has so far had a neutral to a negative impact customers well being as the top priority on Swedish revenues - Responsible Gaming tools are frequently used and are - Estimated neutral to positive impact on international effective in detecting, and acting on, problem gambling revenues relating to market share gains from the at an early stage landbased industry - Softer marketing messaging including Responsible Gaming specific campaigns Long term trend - No signs so far of increased problem gambling - A deep economic recession will likely impact our business negatively - We expect an accelerated structural shift from landbased to online gaming and increased consolidation, similar to other consumer sectors - LeoVegas being 100% online focused and a technology driven company is well positioned 7

BUSINESS UPDATE H I G H L I G H T S - Platform migration in the UK market – successfully finalized - Reached an agreement with the sellers of Royal Panda on the earn-out payment - Several product improvements, primary within payments - Mårten Forste started as new COO during the quarter - Updated proposal regarding election of Board of Directors 8

GREATEST GAMING PLATFORM System characteristics Competitive advantage Highlights Increased control over the product Proprietary gaming No 3 rd party dependency platform (Rhino) Leveraging integrations (games, PSPs etc.) One platform, and 16 brands. (Leo Vegas UK migrated in March) Tool for growth Multi brand and compliance support Core services shared from Rhino 1+ billion account transactions per month Fre q uent production deploys on Multiple front-end Fast and flexible development daily basis solutions Modern technology and SEO friendly High uptime fi gures Scalable and high performance Cloud based Stable and secure services 9

LIVECASINO.COM M U L T I B R A N D LiveCasino.com - Second new brand launched on the proprietary multibrand platform - Potential to be the preferred choice for Live Casino - Industry first and unique log-in and registration flow - Launched globally in English speaking countries - LeoVegas technology enables the ability to launch new brands effectively 1 0

ESG TARGETS V I S I O N I N S U S TA I N A B I L I T Y B A S E D O N T H R E E P I L L A R S Environmental “LeoVegas advocates for a sustainable gaming industry, Social responsibility responsible gaming and positive social development” Articles of association 1 1

ESG TARGETS – SOCIAL RESPONSIBILITY A M B I T I O N I N R G R E S P O N S I B L E G A M I N G - Technology and data driven approach - 10% of our employees work exclusively “Re t ain and strengthen with responsible gaming and compliance position as a leader in - All ESG - targets in our sustainability report responsible gaming” 1 2

MARKET COMMENTS – NORDICS Q 1 - 2 0 2 0 H I G H L I G H T S Sweden - Continued market share gains in the first quarter 41% - Independent study by Copenhagen Economics - channelisation is only approx. 75% for online casino vs. the authorities target of 90% - New proposed restrictions will deteriorate the channelisation even further and risks torpedoing the entire Swedish regulation - NGR in April unchanged vs. the Q1 average 31.1 10% Other Nordics - Somewhat softer development in other Nordic markets - GoGoCasino to be launched in Finland in Q2 Growth Y-o-Y MEUR NGR 1 3

MARKET COMMENTS – REST OF EUROPE Q 1 - 2 0 2 0 H I G H L I G H T S UK - Royal Panda brand closed in January, solid growth for 46% remaining UK brands both YoY and sequentially - Platform migration successfully concluded, entire UK business now operates on the groups proprietary technical platform - Fundamentals in place and LeoVegas is now positioned for growth in the UK 39.9 -3% Germany - Recovery and back to similar levels as in Q3 2019 - Germany plans to regulate in end of 2021, final terms yet to be confirmed Growth Y-o-Y MEUR NGR 1 4

MARKET COMMENTS – REST OF WORLD (ROW) Q 1 - 2 0 2 0 H I G H L I G H T S 13% ROW - Somewhat weak development in Canada, mitigated by good growth in most other ROW markets - Focus to scale up markets that were launched in 2018-2019 11.1 MEUR NGR +12% - Looking into more market entries during 2020 Growth Y-o-Y 1 5

CURRENT TRADING – START OF Q2 Preliminary revenues April 2020 37.6 MEUR an increase of 23% compared to April last year 16

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CUSTOMER BASE N E W D E P O S I T I N G R E T U R N I N G D E P O S I T I N G C O M M E N T S C U S T O M E R S C U S T O M E R S • New Depositing Customers (NDCs) increased 3% Y-Y and increased 22% 219 841 193 428 200 000 225 000 Q-Q to a new ATH 180 000 200 000 Returning Depositing Customers • 160 000 (RDCs) increased 3% Y-Y and 175 000 increased 10% Q-Q to a new ATH 140 000 150 000 120 000 Total Depositing Customers (DC’s) • 125 000 increased 6% Y-Y and 11% Q-Q to a 100 000 new ATH 100 000 80 000 The historical NDC and RDC • 75 000 60 000 numbers have been recalculated to 50 000 ensure that all brands in the group 40 000 have consistent reporting 25 000 20 000 rapporteringsmetodik. - - Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 18

AVERAGE SPEND PER CUSTOMER D E P O S I T S ( E U R ) P E R D E P O S I T I N G C U S T O M E R C O M M E N T S • Average deposit per Depositing Customer in Q1 decreased 1% Y - Y 1 000 and decreased 9% Q - Q 900 Average NGR per Depositing • 800 Customer decreased 3% Y - Y and 6% Q - Q 700 600 Long-term trend of lower share of • high-value players is expected to 500 continue while geographical mix and game margins drives short term 400 fl uctuations in player value 300 200 100 - Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 19

APRIL UPDATE: DC’S AND PLAYER VALUE OVER TIME D E P O S I T I N G A V G . D E P O S I T S C U S T O M E R S A N D C O M M E N T S • No signs of significant change in existing player behaviour related to covid-19, growth in April primarily driven by a record-high player base • Strong growth YoY in Depositing Customers in March-April, reflecting continued solid underlying momentum as well as probable market share gains from land-based operators Player value (average deposit per • Depositing Customer) has increased in April versus Q1 levels but is still at normal levels in line with the 2 year historical average 20

GAME MARGIN AND HOLD G A M E % A N D H O L D % M A R G I N L I V E C A S I N O M A R G I N I N C O M M E N T S 3,90% 3,40% 37,0% • The game margin in Q1 increased to 3,85% 3,20% 3.76% versus 3.62% in the previous 3,80% 35,0% 3,75% quarter, which is above the historical 3,00% 33,0% n % 3,70% Game margin average of around 3.70% 2,80% 3,65% d % Hold 31,0% Hol 3,60% 2,60% • Casino margin was slightly above the 29,0% 3,55% 2,40% historical average while sportsbook Live Casino margin 3,50% Game margin, % Hold, % 27,0% 2,20% 3,45% outperformed 3,40% 25,0% 2,00% Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Hold in Q1 increased to 30% from 29% in • Q4, which is in line with the long-term M A R G I N C A S I N O C L A S S I C M A R G I N S P O R T S B O O K average level 4,00% 11,00% 10,00% 3,90% Game margin is defined as house • 9,00% 3,80% winnings divided by the total amount of 8,00% 3,70% bets, i.e. what percentage the LeoVegas 7,00% Group on average wins on a bet 3,60% 6,00% 3,50% Sports book margin Casino Classic margin 5,00% Hold is defined as NGR divided by • 3,40% 4,00% deposits 3,30% 3,00% Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 21