Q 1 - 2 0 1 9

2 0 1 9 - 0 5 - 0 2

PRESENTERS

G U S T A F H A G M A NG R O U P C E O

S T E F A N N E L S O NG R O U P C F O

2

Q1 2019 HIGHLIGHTS

3

R E V E N U E ( M E U R ) 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

E B I T D A R E G U L A T E D R E V E N U E S ( % ) N D C S

86.3 M E U R

+ 8 . 9 M E U R+12%O R G A N I C G R O W T H 4 %( E X . U K 1 9 % )

50%U P F R O M 3 3 % I N Q 4

370 209+ 2 3 % - A T H

173 346+ 1 9 % - A T H

7.2 M E U R

8 . 3 % M A R G I N

REVENUES SINCE LAUNCH (MEUR)

86.3

0102030405060708090

4

PRODUCT MIX – Q1 2019

5

76%of GGR

16%of GGR

8%of GGR

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

B U S I N E S S U P D A T E

6

2019 - THE YEAR OF THE CASINO

7

2 0 1 9 – T H E Y E A R O F T H E C A S I N O

Continuous synergy creation within

the group

Operational excellence

Sustainability and regulation

Product innovation

More markets and new brands

Conquer the #1 Casino position

Q 1 - 2 0 1 9

MARKET COMMENTS – NORDICS

8

32.8MEUR NGR

-5%Growth Y-o-Y

- Growth affected by regulation in Sweden- Strong quarter for Finland and Denmark

Sweden- First quarter post-regulation - calibration ongoing- Depositing customer base +23%- Growth month by month in Q1 - continuing into Q2- Marketing conditions – what to expect?

39%of NGR

N O R D I C S

H I G H L I G H T S

Q 1 - 2 0 1 9

MARKET COMMENTS – REST OF EUROPE

9

41.3MEUR NGR

17%Growth Y-o-Y

- 17% growth in Q1, challenging UK conditions offset by solid performance in other markets

- Proposition to prolong licenses in Germany – would mean competitive advantage

UK- Market remains challenging- Growing NDC base on a group level - Rocket X – sequential growth and solid profitability- Acquisitions have resulted in greater complexityItaly- Gaining market share in Italy - Marketing ban - recent positive development

49%of NGR

R E S T O F E U R O P E

H I G H L I G H T S

MARKET COMMENTS – REST OF WORLD

1 0

- 52% growth in Q1-2019- For the first time achieved 10.0 MEUR in NGR

R E S T O F W O R L D Q 1 - 2 0 1 9

10.0MEUR NGR

52%Growth Y-o-Y

12%of NGR

- Strong quarter in Canada- Looking at new potential market entries

H I G H L I G H T S

- LeoVentures continues to show good progress

- Authentic Gaming profitable for the first time in March combined with strong growth

- Pixel.bet awarded five year Swedish license

- Strategic review of the portfolio companies continues

- Enables the group to launch customised brands

- Using existing resources – enabling synergies and scale benefits within the group

- GoGoCasino first brand live at the end of March -positive start

BUSINESS UPDATE

1 1

P R O P R I E T A R YM U L T I B R A N D P L A T F O R M L E O V E N T U R E S

CURRENT TRADING – START OF Q1

Preliminary revenues

April 2019

30.5 MEUR an increase of

5%Compared to April last year

B U S I N E S S K P I S

1 3

CUSTOMER BASE

R E T U R N I N G D E P O S I T I N GC U S T O M E R S

N E W D E P O S I T I N GC U S T O M E R S

173,346

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

196,863

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

• New ATH in DC’s in Q1 at 370 209 which is up 23% Y-Y and 13% sequentially, reflecting a healthy underlying customer growth trend for the group brands

• New depositing customers (NDCs) increased 19% Y-Y as well as 19% Q-Q

• Returning Depositing Customers (RDCs) increased 26% Y-Y and 8% Q-Q

C O M M E N T S

1 4

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

AVERAGE SPEND PER CUSTOMER

• Average deposit per depositing customer in Q1 decreased 14% from Q4 and decreased 12% Y-Y

• Average NGR per depositing customer decreased 9% Q-Q and 10% Y-Y

• The decline in player value in Q1 reflects a short-term impact from Swedish regulation, compliance efforts made in our largest markets, and a general mix shift in our customer base

• Increasingly high share of causal players, with improving retention metrics, provides a sustainable customer base for future growth

1 5

C O M M E N T S

-%

10%

20%

30%

40%

50%

60%

70%

-

100

200

300

400

500

600

700

800

900

1,000

Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

Deposits per depositing customer

Proportion of RDCs in the depositing customer base

GAME MARGIN AND HOLD

G A M E M A R G I N % A N D H O L D I N %

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

M A R G I N L I V E C A S I N O

• Game margin is defined as house winnings divided by the total amount of bets, i.e. what percentage the LeoVegas Group on average wins on a bet

• Hold is defined as NGR divided by deposits

• Game margin and Hold are correlated with each other, and periods with lower margins are often associated with lower Hold

• The game margin in Q1 saw an increase versus Q4 to levels in line with the historical average, driven primarily by an above-average Casino margin

• Hold in Q1 increased to 31% from 30% in Q4

1 6

C O M M E N T S

25.0%

27.0%

29.0%

31.0%

33.0%

35.0%

37.0%

3.40%

3.45%

3.50%

3.55%

3.60%

3.65%

3.70%

3.75%

3.80%

3.85%

3.90%

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

Hol

d %

Gam

e m

argi

n %

Game margin, % Hold, %

2.00%

2.20%

2.40%

2.60%

2.80%

3.00%

3.20%

3.40%

Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

Live Casino margin

-%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

Sports book margin

3.30%

3.40%

3.50%

3.60%

3.70%

3.80%

3.90%

4.00%

Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

Casino Classic margin

DEPOSITS AND NGR

• Deposits for LeoVegas Group reached the second highest level so far, with an 8% increase versus the prior year

• NGR increased 10% in versus Q1 the prior year, and 3% sequentially versus Q4

• March was the strongest NGR month and February the weakest month during the period

• The NGR and deposit trends primarily reflect a steadily growing depositing customer base, which more than offset the decline in average player value

N G R M E U RD E P O S I T S M E U R

268.5

-

50

100

150

200

250

300

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

Mill

ions 84.1

-

10

20

30

40

50

60

70

80

90

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

Mill

ions

1 7

C O M M E N T S

CUSTOMER ACQUISITION COST

• Marketing spend increased to 32.8 MEUR in Q1, the highest level ever, reflecting increased direct marketing investments in Sweden in connection to the new regulation, and a higher NDC intake overall which has driven affiliate costs

• The Customer Acquisition Cost (CAC) decreased 14% Q-Q and 9% Y-Y to the lowest level in over two years, reflecting increased marketing efficiency, a higher share of organic traffic and previous quarters marketing investments paying off

• The current assessment is that total marketing costs in Q2 will be lower than in Q1

1 8

C O M M E N T SM A R K E T I N G ( M E U R ) A N D C A C ( E U R )

189

32.8

-

50

100

150

200

250

300

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

Cust

omer

Acq

uisi

tion

cost

(CAC

) EUR

Mar

ketin

g sp

end

MEU

R

CAC

Marketing spend MEUR

F I N A N C I A L S

1 9

2 0

E B I T D A ( A D J . ) M E U R

EBITDA OVER TIME

• In Q1 the EBITDA was 7.2MEUR, with a margin of 8.3%

• EBITDA net of the IFRS 16 accounting principle effect was 6.3 MEUR, with a margin of 7.3%

• Adjusted and reported EBITDA were the same during the period

C O M M E N T S

6.2 6.2

8.4

7.1

9.0

15.0

9.08.1

7.2

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

EBITDA BUILD UP Q1’19 VS. Q4’18

• Gaming duties increased by 4.3 MEUR compared to Q4-18• Marketing spend increased slightly versus Q4-18 to the highest level ever, reflecting temporarily high investments in Sweden post regulation and a

record-high NDC intake• Personnel expenses as a percentage of revenue increased in Q1, reflecting a initiated shift from consultants to own tech personnel, LeoVentures growth

as well as the annual salary revision for the group• Decreased operational expenses relating to contract negotiations and overall cost efficiency measures within the organisation• Lower capitalised development costs versus the prior period

EBITDA margin:9.6% EBITDA margin:

7.3%EBITDA margin:

8.3%

+1% effect on EBITDA margin

2 1

C O M M E N T S

8.1

6.37.2

1.8

4.3

0.6 0.8

3.0

1.1

1.1 0.9

EBITDA Q4-18 Increased

sales

Increased

gaming tax

Decreased

cost of sales

Increased

marketing

Decreased

operational expenses

(inc. other income)

Increased personnel

costs

Decreased capitalised

development costs

EBITDA Q1-19 IFRS 16 adj. EBITDA Q1-19

(post IFRS 16)

IFRS 16 IMPACT

2 2

- IFRS 16 imposes a new standard for how operating leases are handled, effective from 1 January 2019

- Both a lease asset and liability are recognized, with corresponding depreciation and interest applied instead of a rental cost

- Impact on EBITDA was an increase of 0.9 MEUR

- Impact on profit before taxes in Q1-2019 was -0.1 MEUR

- There is no impact on cash flow

IFRS 16 impact

Cash flow statement Q1 effects MEUR

Cash flow from operating activities (+) 0.9

Cash flow from operating activities, interest (+) (0.1)

Cash flow from financing activities, amortization of liability (-) (0.8)

Net cash impact, IFRS 16 -

Income statement Q1 effects MEUR

EBITDA adjusted under IFRS 16 (+) 0.9

Depreciation and amortization (-) (0.9)

Financial costs (-) (0.1)

Profit before Tax under IFRS 16 (0.1)

EBITDA TO NET INCOME

Q 1 2 0 1 9 P & L F R O M E B I T D A T O N E T I N C O M E , M E U R

2 3

• Adjusted measures are presented in order to provide a more fundamental picture of the performance of the Group

• D&A costs include IFRS 16 related depreciation of 0.9 MEUR

• Adjusted EBIT for the period was 4.8 MEUR, when excluding amortisations relating to previous acquisitions

• Net income for the period was -0.0 MEUR

• In the adjusted measure the non-cash items relating to amortisations for acquisitions that are removed total 4.1 MEUR in the period

C O M M E N T S

7.2

-2.4

4.8

-4.1

0.6

-0.7 0.0 -0.0

EBITDA D&A Adjusted EBIT Amortisation for

acquisitions (non-

cash)

EBIT Financial expenses Tax Net income

56.7 0.6

5.5

-0.2 -0.8 -0.4-2.2

0.0 59.3

Cash beginning of

period

EBIT Adjustments for

non-cash items

Change in working

capital

Lease liabilities Acquisition of PP&E Acquisition of

intangible assets

Currency effects Cash end of period

CASH FLOW

C A S H F L O W M E U R Q 1 2 0 1 9

Cash flow from operating activities (before changes in

working capital) 6.1 MEUR

2 4

• Cash increased by 2.5 MEUR in the quarter

• Cash flow from operating activities before changes in working capital increased by 6.1 MEUR driven mainly by the underlying EBITDA result

• Changes in working capital resulted in cash outflow of 0.2 MEUR for the period. Working capital fluctuates between periods, but over time tends to support operating cash flow

• Cash at the end of the quarter was 59.3 MEUR

C O M M E N T S

S U M M A R Y

2 5

SUMMARY

2 6

- Revenues of 86.3 MEUR (12% growth) and an EBITDA of 7.2 MEUR

- All time high in depositing customers

- Good start to Swedish regulation, we believe we are gaining market share

- Launch of multibrand platform and GoGoCasino

- LeoVentures profitable for the first time in March

- April revenues of 30.5 MEUR

- 2019 is year of the casino with focus on profitable growth and operational excellence

Q & A

2 7