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SPRING 2020 UPDATE All material in this presentation is up to 15 th April 2020

SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

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Page 1: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

SPRING 2020 UPDATE

1All material in this presentation is up to 15th April 2020

Page 2: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

2

NOT FOR PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS ORREGULATIONS OF THAT JURISDICTION. This Presentation has been prepared by 888 Holdings plc (“888”). “Presentation” means this document, any oral presentation, any question and answer sessionand any written or oral material discussed or distributed during the meeting. By receiving this Presentation and/or attending the meeting where this Presentation is made, or by reading the Presentationslides, you agree to be bound by the following limitations. This Presentation includes certain statements that are, or may be deemed to be, “forward-looking statements” with respect to 888. Theseforward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim","may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts.They appear in a number of places throughout this Presentation and the information incorporated by reference into this Presentation and include statements regarding the intentions, beliefs or currentexpectations of 888 concerning amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and the dividend policy of 888 and the industry in which itoperates. Forward-looking statements are not guarantees of future performance. 888’s actual results of operations, financial condition, liquidity, dividend policy and the development of the industry inwhich it operates may differ materially from the impression created by the forward-looking statements contained in this Presentation and/or the information incorporated by reference into thisPresentation. In addition, even if the results of operations, financial condition, liquidity and dividend policy of 888 and the development of the industry in which it operates, are consistent with theforward-looking statements contained in this Presentation and/or the information incorporated by reference, those results or developments may not be indicative of results or developments insubsequent periods. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future andmay be beyond 888’s ability to control or predict, and future events and circumstances can cause results and developments to differ materially from those anticipated. 888 cautions investors that anumber of important factors, including those in this Presentation, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. Any forward-lookingstatements made by or on behalf of 888 speak only as of the date they are made and are based upon the knowledge and the information available to the Directors on the date of this Presentation.Nothing in this Presentation is or should be construed to be a profit forecast. The information and opinions contained in this Presentation and any other material discussed verbally are provided as at thedate of this Presentation have not been independently verified, and are subject to change without notice. The delivery of this Presentation shall not give rise to any implication that there have been nochanges to the information and opinions contained in this Presentation since the time specified. Other than in accordance with its legal or regulatory obligations (including under the Market AbuseRegulation (596/2014), the Listing Rules, the Disclosure Guidance and Transparency Rules and the Prospectus Rules), 888 does not undertake any obligation to update or revise publicly any information oropinion, including without limitation, any forward-looking statement or other statement, contained in this Presentation, whether as a result of new information, future events or otherwise. Norepresentation or warranty (express or implied) of any nature is given nor is any responsibility or liability of any kind accepted by 888 or any of its directors, officers, employees, advisers, representativesor other agents, with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (express or implied), omissions, errors or misstatements in thisPresentation, or any other written or oral statement provided. None of 888 or any of its directors, officers, employees, advisers, representatives or other agents accepts any liability whatsoever for anyloss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection therewith. Nothing contained in this Presentation is intended to constitute an invitation orinducement to engage in investment activity for the purposes of the prohibition on financial promotions in section 21 of the UK Financial Services and Markets Act 2000. In making this Presentationavailable, 888 makes no recommendation to buy, sell or otherwise deal in shares of 888 or in any other securities or investments whatsoever and you should neither rely nor act upon, directly orindirectly, any of the information contained in this Presentation in respect of any such investment activity. Any recipients of this Presentation outside the UK should inform themselves of and observe anyapplicable legal or regulatory requirements in their jurisdiction, and are treated as having represented that they are able to receive this Presentation without contravention of any law or regulation in thejurisdiction in which they reside or conduct business. In particular, the securities referred to in this Presentation have not been and will not be registered under the U.S. Securities Act of 1933 and may notbe offered, sold or transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933.

Page 3: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

INTRODUCTION

3

⦿ Founded in 1997 and listed on the LSE since 2005.

FTSE250 constituent (effective 22nd June 2020)

⦿ Highly experienced management team

⦿ End-to-end product technology ownership drives

competitive advantage

⦿ 13 licences, active in 11 regulated markets

⦿ Seven offices and circa 1,500 people globally

⦿ 74% of revenue generated from regulated and taxed

markets in FY19

⦿ Safe gaming is a business priority

⦿ Healthy balance sheet

⦿ Scale with flexibility

16%

8%

7%

5%

64%

Page 4: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

STRATEGIC GROWTH PRIORITIES

4

⦿ Be the world’s dominant online casino brand

⦿ Uncaptured position in $14bn online market - no clear

vertical leader

⦿ Product leadership and recreational customer focus

⦿ Become a top-tier sports operator

⦿ Rapidly developed vertical over recent years

⦿ Launch Spectate proprietary platform in Sweden Q1

⦿ Maintain top-3 position in global poker market

⦿ Product development with recreational focus - Poker8

⦿ Shared liquidity opportunities

⦿ Offer best-in-class product experience across verticals

⦿ Focus on product leadership and user experience

⦿ Orbit casino success demonstrates 888’s edge

⦿ Expand across selected global markets

⦿ Track record of growth

⦿ US presents major opportunity

Page 5: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

SAFER. BETTER. TOGETHER

5

888 is at the forefront of Safe Gaming – a critical part of our business

with continuous investment in:

⦿ Knowing our customers

⦿ Affordability

⦿ Early detection of customer behavior

⦿ Unique Observer behavior monitoring software

⦿ Our culture of care

⦿ Embedded across all areas of 888

⦿ Investment in training

⦿ Safe gaming marketing – ‘Too much is too much’ campaign

⦿ Empowering our customers

⦿ Smarter and safer tools

⦿ Best practice shared across global regulated markets

⦿ UK customers’ in FY19 - use of safe gaming tools +28%; safe

gaming customer interactions +16%

⦿ Industry collaboration to raise overall standards

⦿ Various research programs & workshops - knowledge sharing

⦿ Close relationships with regulators

Page 6: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

WHY 888

6

⦿ Strong financial position

⦿ Balance sheet strength

⦿ Cash generation & dividend

⦿ Proven track record

⦿ 15% Group revenue CAGR (2003 to 2019)

⦿ 12% B2C Casino CAGR (2009 to 2019); 46% B2C Sport CAGR (2013 to 2019)

⦿ Diversification across products and markets

⦿ Not reliant on any one product vertical or geographic market

⦿ Able to benefit from multiple growth opportunities

⦿ Regulated revenue profile

⦿ Clear growth opportunities

⦿ Marketing and product expertise

⦿ Casino and Sport growth engines – significant further headroom

⦿ New regulated markets

⦿ Strong platform in the US to capture significant opportunities

⦿ M&A potential

⦿ Continue to appraise opportunities – 888 is a highly desirable partner

Page 7: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

BUSINESS MOMENTUM

7

Page 8: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

Deposits Trend 2010 – 2020

⦿ Deposits are the engine behind the Group’s growth prospects

⦿ Healthy growth driven by regulated markets has continued during 2020*

⦿ The positive trend from 2019 has continued into the first quarter of 2020 so far*

BUSINESS MOMENTUM

8

0%

50%

100%

150%

200%

250%

300%

350%

400%

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Regulated Markets

Non-Regulated Markets

* Year to 15th April 2020

Page 9: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

CURRENT TRADING

YTD to 15TH April 2020

⦿ Strong trading in our growth verticals and main KPIs

⦿ FTDs up 46%, Casino bets up 35% and B2C deposits up 39%

100% 103%

122%

146%

179%188%

Base Sport Bingo B2C Casino Poker

Customer Acquisition %YoY KPIs %YoY

9

35%39%

46%51%

65%

Casino Bet B2C Deposit B2C FTD's UK Deposit UK FTD's

* Year to 15th April 2020

Page 10: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

CASINO REGULATED MARKETS ENGINE

10

⦿ Regulated markets lead growth with strong acquisition trends across verticals

⦿ NJ increase benefited from Orbit platform and Live Casino offering

366%

382%

PT

124%

67%

ES

51%28%

ROIT UKNJES

Casino FTDs % Increase

* Year to 15th April 2020

Page 11: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

POKER REGULATED MARKETS ENGINE

11 * to 15th April 2020

** Poker was launched in Portugal mid-2019: therefore comparison represents current year to Apr 15th 2020 vs. Q4 2019

⦿ Regulated markets lead growth with high acquisition trend across verticals

170%**

254%

PT

163%

89%

ES

50%30%

ROIT UKNJ ES

Poker FTDs % Increase*

Page 12: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

B2C FTD’s & Effective CPA Trend

EFFECTIVE MARKETING

12

⦿ Influx of new customers recruited accompanied by higher efficiencies

⦿ Record-breaking FTDs in 2019 – surpassing the 1m threshold, driven by regulated markets

⦿ Constant improvements in CPA by focusing on optimal channel blend by product and market

100

110

120

130

140

150

160

170

180

190

200

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2018 2019 2020

B2C FTDs

Effective CPA

* Up to April 15th 2020

Page 13: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

Continental Regulated Progress (Bets EUR)

REGULATED CONTINENTAL EUROPE

13

0%

500%

1000%

1500%

2000%

2500%

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4

2012 2013 2014 2015 2016 2017 2018 2019 2020

Be

ts

Casino Poker Sport

⦿ Continued expansion in established regulated markets

⦿ New regulated markets launched

⦿ Future regulated markets provide future opportunities

* Year to 15th April 2020

Page 14: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

US – POISED FOR GROWTH

14

⦿ Consistent three-pronged strategic approach:

⦿ Organic growth in New Jersey and additional states

⦿ Strategic initiatives, including developing US

partnerships

⦿ Continue to push WSOP and Harrah’s with Caesars

in NJ, NV and additional states

⦿ Organic:

⦿ Focused on product enhancements, aiming to

improve current customer experience

⦿ Healthy market access pipeline

⦿ Local team and footprint expansion

⦿ Inorganic:

⦿ Ongoing discussions with potential media, brand and

gaming partners0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

500%

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4

2018 2019 2020

888Casino.NJ Deposit Trend

* Up to 15th April 2020

Page 15: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

Poker Liquidity Trend*

POKER LIQUIDITY

15

⦿ Exceptional turnaround in Poker liquidity trend in recent months

0%

20%

40%

60%

80%

100%

120%

140%

160%

1112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4

2012 2013 2014 2015 2016 2017 2018 2019 2020

Mo

nth

ly L

iqu

idit

y In

dex

Operator 1 Operator 2 Operator 3 888Poker Industry

* Year to 15th April 2020

Page 16: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

Per Gateway Trends

MAIN KPIs TREND

16

⦿ High acquisition trend for Casino and Poker offset completely Sport decline

30%

50%

70%

90%

110%

130%

150%

170%

190%

Jan Feb Mar Apr

Deposit Trend

Casino Gateway Poker Gateway Sport Gateway Bingo Gateway

* Up to 15th April 2020

**Jan 2020 = 100%

30%

50%

70%

90%

110%

130%

150%

170%

Jan Feb Mar Apr

Daily Actives Players Trend

Casino Gateway Poker Gateway Sport Gateway Bingo Gateway

Page 17: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

0%

20%

40%

60%

80%

100%

120%

140%

160%

1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4

2016 2017 2018 2019 2020

Active Days Per Player

DRAGONFISH BINGO PLATFORM KPIs

17

20%

40%

60%

80%

100%

120%

140%

160%

1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4

2016 2017 2018 2019 2020

Bonus Per Player

20%

40%

60%

80%

100%

120%

140%

160%

1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4

2016 2017 2018 2019 2020

ARPU

20%

40%

60%

80%

100%

120%

140%

160%

1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4

2016 2017 2018 2019 2020

* Jan 2016 base = 100%. Funded players

** Up to 15th April 2020

Deposit Per Player

OPTIMISATION VALUE

ENGAGEMENT RETENTION

Bingo Platform (GBP)

Page 18: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

SUMMARY & LOOKING AHEAD

18

⦿ Ambitious vision and unique growth opportunities

⦿ Casino leadership

⦿ Taking Sport to the next level

⦿ Unique product & marketing ecosystem underpins opportunities

⦿ Continue to prioritise and invest in safe play

⦿ Clear strategy for addressing the US market

⦿ Cash generative, strong balance sheet and dividend

⦿ Continue to appraise M&A opportunities

⦿ We have good trading momentum

Page 19: SPRING 2020 UPDATE - 888holdings.html.investis.com · Deposits Trend 2010 –2020 ⦿ Deposits are the engine behind the Group’s growth prospects ⦿ Healthy growth driven by regulated

QUESTIONS

19