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Kambi Group plc

Q1 Report 2017

26 Apr i l 2017

Outline for today

1 Kambi overview and highlights

2 Financial update

3 New customer signing

4 Regulation update

5 Retail update

6 Summary

7 Q&A

26/4/2017

Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon

2

Kambi overview

TURNKEY SPORTS BETTING SERVICE TOP PERFORMING OPERATORS

26/4/2017

Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon

3

M A N I L A

S Y D N E Y

E M P L O Y E E S

S T O C K H O L M

B U C H A R E S T

M A L T A

L O N D O N

571 EM PL O YEE S

− Strong turnover growth from our operators

− Continued solid cash flow generation

− Quarter significantly affected by player-friendly results

− One new customer agreement: Greentube

− Kambi awarded the ISO 27001:2013 certification

Highlights and key events

+27%

26/4/2017

Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon

4

Operator Turnover growth

Financial headlines

26/4/2017

5

Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon

8

10

12

14

16

Revenue (€m)

20.5

21

21.5

22

22.5

23

23.5

24

Net cash (€m)

Q1 2017 Q1 2016

0

0.5

1

1.5

2

2.5

Operating Profit (€m)

Operator turnover & trading margin

Operator trading analysis

− The graph shows Kambi’s operators’

quarterly betting turnover and trading

margin

− Operator turnover increased by 27%

compared to Q1 2016

− Player-friendly results accentuated by

accumulators led to a lower than

average trading margin

− Operator margin before marketing

deductibles was 6.2%

26/4/2017

Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon

6

79 72 75

90 100

119 109

124

147

163 160

203

221

239

219

242

281

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

50

75

100

125

150

175

200

225

250

275

300

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Turnover Index Trading margin % before marketing deductibles

Trading margin % after marketing deductibles

Accumulators

Operator trading analysis

‒ The chart shows the effect of player friendly

sporting results during the last two quarters

‒ Accumulators have a higher and more

volatile margin than single bets

‒ The trading margin for single bets is higher

for Q1 2017 than in Q1 2016, while the

trading margin for accumulators has almost

halved

26/4/2017

Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon

7

Q1/16

Q1/17

Singles Accumulators

Growth in operator turnover and Kambi revenue

Q1 2017 vs Q1 2016

26/4/2017 Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon

8

0%

5%

10%

15%

20%

25%

30%

35%

FX impact Operator Turnover Growth Operator margin impact Taxes/marketingdeductibles impact

Other* Kambi Revenue Growth

*Other includes the impact of volume-related commission tiers and fixed revenues

Income statement

26/4/2017

Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon

9

€m Q1 2017 Q1 2016

Revenue 14.2 13.3

Operating expenses -12.9 -11.3

Operating profit 1.4 2.0

Finance costs / Tax -0.3 -0.2

Profit after tax 1.1 1.8

Agreement signed with Greentube

26/4/2017

Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon

10

‒ Agreement signed with operator Greentube, a subsidiary of

Novomatic

‒ Kambi to provide sports betting services to complement

Greentube’s online casino brands in regulated markets such

as Spain, Italy, Germany and Romania

‒ We expect Greentube to launch into its first markets during the

summer

Regulation update

Licenses: Alderney, Malta, Romania, Spain, UK

Certifications: Denmark, Estonia, Italy

‒ Sweden is planning to regulate the online gambling

market in 2019

‒ The Swedish market is one of the most important

jurisdictions for Kambi

‒ The suggested tax rate of 18% will impact revenues

both for Kambi and its operators

‒ For Kambi, this can lead to opportunities to sign new

operators such as the state owned operators as well

as new entrants to the market

Bringing the online pace to the retail space

Retail Advancements

26/4/2017 Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon

12

‒ A major retail gap was closed with a new User Interface for the self service terminals

‒ The depth, speed and quality of the online product, with optimised interaction and content

presentation for the retail space.

‒ Built on the same empowerment platform that all Kambi operators have access to

‒ Showcases Kambi’s Scalable Differentiation model to deliver the most relevant User

Experience

Summary

26/4/2017

Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon

13

Strong growth in

our operators’

turnover, up 27%

New customer

signing - Greentube

Player-fr iendly

outcomes impacted

the trading margin

Thank you

Q&A