henrik tjärnström ceo...• two members of the parliament have sent a “wish list” to the...

Henrik TjärnströmCEOQ1 2018

25 April 2018

© Kindred Group plc 2018

• Financial results• Business overview• Summary

Outline

2

Financial results

© Kindred Group plc 2018 4


Q1 2018

5

“Gross Winnings Revenue up 23 per cent pure organically and all-time high in active customers”

Q1 2018 Key Report Highlights


EBITDA

GBP 47.3 m(+61%)

Gross winnings revenue

GBP 207.8 m(+36%)

Earnings per share

GBP 0.131(+82%)

Active customers

1,383,201 (+12%)

6

Free Cash Flow

GBP 33.6 m(+24%)

Gross winnings revenue


76.5 76.1 122.4 153.2 207.877.1 80.5

126.6166.6

80.4 86.1

142.3

193.6

78.0 111.4

152.8

238.0

2012 2013 2014 2015 2016 2017 2018

Q1

Q2

Q3

Q4

GBPm

226.7268.0

312.0354.1

544.1

751.4

Gross winnings revenue from mobile


0

20

40

60

80

100

120

140

160

180

Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4 Q12016

Q2 Q3 Q4 Q12017

Q2 Q3 Q4 Q12018

+34% GBPm

Q1 2018 P&L FX impact v Q1 2017


5.4

SEK 11.29211.054 -2.2%NOK 10.91110.452 -4.4%EUR 1.1321.163 2.7%DKK 8.4318.646 2.5%

Q1 2018Q1 2017Avg rate Movement

GBPmGWR increase 1.5CoS / Opex increase -0.7FX loss on operating items -0.2EBITDA FX impact Q1 2018 0.6FX loss on loan repayment -1.0Profit before tax impact -0.4

AUD 1.7701.634 -8.3%

Weighted average movement in FX rates: approx. 1%

Geographic growth– Key Report Highlights Q1 2018 vs Q1 2017


Nordics

Western Europe

+7% +8%

+65% +62%

GWR as reported in GBP

GWR in constant currency

10

+8%

+38%

Organic GWR in constant currency

Other Costs analysisExcl. Non-recurring items


Share of GWR (as reported) 8%12% 8% 8%9%

11

GBPm2013

FY2014

FY2015

FY2016

FY2017

FY2018

Q1

Reported Other Costs 52.3 47.9 43.1 69.4 109.1 27.6

Depreciation & Amortisation -18.9 -16.8 -13.0 -23.8 -42.6 -11.6

FX loss/gain on Opex -0.6 -1.8 -0.7 -0.6 -1.5 -0.2

Other Costs post D&A and FX 32.8 29.3 29.4 45.0 65.0 15.8

9%

EBITDA – Excl 2014 Kambi one-off item


21.3 14.4 27.6 29.4 47.314.0 19.021.1 30.521.7 17.4

33.146.6

18.4 26.2

38.9

73.8

2012 2013 2014 2015 2016 2017 2018

GBPm

Q1

Q2

Q3

Q4

52.563.4

75.5 77.0

120.7

180.3

Tournament year investments – short term pain for long-term gain


Reported EBITDA Q1 v Q2 (GBPm)Q1 Q2 Change

2006 8.3 6.3 -24%2008 13.0 8.3 -36%2010 12.9 10.8 -16%2012 15.3 11.0 -28%2014 21.3 16.0 -25%2016 27.6 21.1 -24%

Normal pattern of business development

for a tournament quarter – the payback comes in the following quarters

0.044 0.087 0.0720.1310.059

0.059 0.0900.057

0.0910.131

0.084

0.129

0.223

0.000.050.100.150.200.250.300.350.400.450.500.55

2012 2013 2014 2015 2016 2017 2018

Q3

Q4

EPS development – Excl 2014 one-off items

Q1

Q2

GBP

0.244

0.366


0.516

Business overview


0

200

400

600

800

1,000

1,200

1,400

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Active customers


Thousands

2011 2012 2013 2014 2015 2016 2017

ATH

2018

Sports betting gross marginCombined


0%1%2%3%4%5%6%7%8%9%

10%11%12%

Before free bets After free bets

2011 2012 2013 2014 2015 2016 2017Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 YRQ2 Q3 Q4 Q1

2018

Product & geographic balance Gross winnings revenue over time


By product, % By geography, %

Pre-game betting

Poker

Casino &Games

Other

Live bettingNordics

WesternEurope

CES

Other

21 22 24 22 23 21 2130 23

23 23 23 23 20 23 2321

23

3 2 22 2 2 2

22

50 51 48 49 51 51 5145 50

3 2 3 4 4 3 3 2 2

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

44 42 45 44 45 41 40 35 36

10 9 9 8 77 6

7 7

44 47 44 46 46 50 52 55 55

2 2 2 2 2 2 2 3 2

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q12016 20162017 20172018 2018


Kindred Group plcESG rating

AAA


Data Protection Officer of the Year

Head of Risk

Most Significant Contribution to Responsible Gambling Research

Regulatory update Norway• Two members of the Parliament have sent a “wish list”

to the Parliament.• Family & Cultural Committee has sided with it.• Norwegian Parliamentary committee standpoint is a request

that government returns with analysis and draft laws.• The standpoint raises concern regarding Data privacy,

Freedom of speech/information and Norway’s obligations according to EES-agreement.

• The government surely needs to investigate further the potential consequences before any changes of regulation can be proposed.

• Kindred follows closely developments and engage with key-stakeholders to contribute with experience and expertise.


• Vote in Parliament 7 June• Application process 1 August• Entering into force 1 January 2019• Kindred well prepared• Proposal leave for state owned operator to assess itself

in relation to competition law• Incumbents allowed entry on competitive market by use

of 50 years monopoly


Regulatory updateSweden


Kindred Group to participate in Almedalen for the fifth year in constructive engagement with politicians and other stakeholders in June

Swedish Political

Week

Regulatory update Belgium & the NetherlandsBelgium• 22 March: Constitutional court annulled VAT levy for online

but no retroactive effect• Important precedent & acknowledgement that high

taxation impacts attractiveness of the market• Royal decrees: going through legislative process – entry

into force 8 months after official publication so looking at Q2 2019 earliest

The Netherlands• Status quo primary bill - secondary legislation (consultation

& notification) unlikely to move forward before senate vote



Summary Q1 2018

ATHin active

customers

SB margin after FB

8.2%GWR

+36%

EBITDA

+61%EPS

+82%FCF

+24%

World Cup


2018

Brazil 5.50

Germany 5.75

Spain 7.00

France 7.50

Belgium 12.00

Denmark 101.00

Sweden 101.0026

Contact

Investor RelationsInga Lundberg

+44 788 799 6116

[email protected]

25 July 2018Q2 will be published at 7.30 CET

26 Oct 2018Q3 will be published at 7.30 CET

15 May 2018AGM

Calendar


henrik tjärnström ceo...• two members of the parliament have sent a “wish list” to the...

Documents