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Kambi Group plc AGM CEO Presentation Stockholm 17 May 2017

Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

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Page 1: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Kambi Group plc AGM – CEO Presentation Stockholm 17 May 2017

Page 2: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Outline

1 Highlights

2 Operator trading analysis and financial development

3 Market overview

4 Kambi’s model and strategy

5 Sustainable and responsible business

6 Summary

7 Q&A

2

17/5/2017

Kambi Group plc AGM 2017 – CEO Kristian Nylén

Page 3: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Highlights

17/5/2017

Kambi Group plc AGM 2017 – CEO Kristian Nylén

3

19%

+36% Operator turnover

FY 2016

Kambi revenue

growth FY 2016

+17% +4% EURO 2016

contr ibut ion to

operator turnover

Page 4: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

New customer and partnership signings

2016 & Q1 2017

17/5/2017

Kambi Group plc AGM 2017 – CEO Kristian Nylén

4

M R G R E EN L E OVEG AS R AN K G R O U P R . F R AN C O T E LEVISA N O V OM AT I C

L O TTER Y

S O L U TI ON S

G R E EN TU B E

Page 5: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Operator turnover & trading margin Operator trading analysis

17/5/2017

Kambi Group plc AGM 2017 – CEO Kristian Nylén

5

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

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

Turnover Index Trading margin % before marketing deductibles

Page 6: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Financial headlines

17/5/2017

Kambi Group plc AGM 2017 – CEO Kristian Nylén

6

56

47.7

14.2 13.3

0

5

10

15

20

25

30

35

40

45

50

55

60

Revenue (€m)

8.8

7.4

1.4

2

0

1

2

3

4

5

6

7

8

9

10

Operating Profit (€m)

Q1 2017 Q1 2016

25.1

20.3

0

5

10

15

20

25

30

Net cash (€m)

FY 2016 FY 2015

Page 7: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Growth in operator turnover and Kambi revenue FY 2016

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

FX impact Operator Turnover Growth Operator margin impact Taxes/marketing deductiblesimpact

Other* Kambi Revenue Growth

17/5/2017

Kambi Group plc AGM 2017 – CEO Kristian Nylén

7

Page 8: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Market overview Market growth

17/5/2017

Kambi Group plc AGM 2017 – CEO Kristian Nylén

8

Source: H2 Gambling Capital

0%

50%

100%

150%

200%

250%

300%

0

10000

20000

30000

40000

50000

60000

70000

2010 2011 2012 2013 2014 2015 2016e 2017e 2018e 2019e 2020e 2021e

Total Online Landbased

− Estimated value (GGR) for the global

sports betting market in 2016 was €52.5bn

(63% retail)

− Total sports betting market estimated

growth of 17% from 2016 – 2021

− Kambi’s core market, Europe online sports

betting, estimated to grow by 36% from

2016 – 2021

Page 9: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Our business environment

Distribution Channels

Retail going online, online going mobile, online going retail

Consumer behaviour

Short attention span, disloyal and informed

Content

Unlimited shelf-space and possibilities with data – Strict demands on

relevance and differentiation

Regulation

Forced to catch up as consumers respond to technology

Industry structure

Competition increases, taxes increases, lower margins creates a

demand for out-sourcing

Technology changes everything, everywhere, all the time

100%

80%

60%

40%

20%

2013 2016

Example: Product and channel development online

Web Live

2010

Mobile Live

Web Pre-Match

Mobile Pre-Match

17/5/2017

Kambi Group plc AGM 2017 – CEO Kristian Nylén

9

Page 10: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Strategy

Built to empower brands to outperform the market

Differentiation Scalability

UX

‒ Better than competition

‒ Different than competition

‒ More efficient than competition

17/5/2017

Kambi Group plc AGM 2017 – CEO Kristian Nylén

10

Page 11: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Connected

Integrated

Innovative

Pricing optimisation

Local

Personalised

Empowering different brands and strategies

17/5/2017

Kambi Group plc AGM 2017 – CEO Kristian Nylén

11

Page 12: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Sustainable and responsible business

− Guided by the principles of the UN Global Compact, based on what is relevant to our business

− Established systems and controls working proactively against anti-corruption and anti-bribery

− Diversity is important to Kambi, our employees represent 35 nationalities

− Charitable actions taken on both an individual and company level, mainly to support local development and

communities in areas where we operate, such as Manila and Bucharest

− Kambi supports charities focusing on problem gambling, such as GambleAware and Gambling Therapy

12

17/5/2017

Kambi Group plc AGM 2017 – CEO Kristian Nylén

Promoting a sustainable, responsible and regulated environment

Page 13: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Summary

Continued

investments to

maintain a

premium

posit ion

13

17/5/2017

Kambi Group plc AGM 2017 – CEO Kristian Nylén

Exceptional

performance by

our operators

Strong growth

in our

operators’

turnover

Continued

investments to

create the best

bett ing

experience

6 new

operators

signed

Page 14: Kambi Group plc AGM CEO Presentation General...New customer and partnership signings 2016 & Q1 2017 17/5/2017 Kambi Group plc AGM 2017 – CEO Kristian Nylén 4 LEOVEGAS RANK GROUP

Thank you Q&A