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PLAYTECH PLC ANNUAL REPORT AND ACCOUNTS 2017 STRATEGIC REPORT

A YEAR OF PROGRESS 2017 AT A GLANCE

PLAYTECH AND CAPTAIN UP PLAYTECH AND WARNER BROS. PBS EXTENDS PADDY POWER COLLABORATE IN NEW CONSUMER PRODUCTS TEAM UP SPORTS AGREEMENT STRATEGIC PARTNERSHIP FOR EXCLUSIVE DC-BRANDED FILM APRIL JANUARY AND TV CONTENT DEAL Playtech BGT Sports (PBS), Playtech agreed a strategic partnership FEBRUARY extended its multi-year contract with Captain Up, the real-time Playtech signed a multi-year, exclusive with Paddy Power. engagement and retention platform, branded games content deal with that will enable licensees to further Warner Bros. Consumer Products, on Paddy Power is set to increase the incentivise, analyse and reward their behalf of DC Entertainment, to license number of SSBTs to meet customer players using cutting-edge gamification, and develop an extensive catalogue demand, drive more in-play betting social and communication tools. of iconic DC-branded film and opportunities, and build upon retail television properties into Omni-channel performance with the incremental The Captain Up platform employs games. revenue growth that each social gaming mechanics to increase terminal offers. player engagement and lifetime Drawing from the worlds of such value. These include challenges, Warner Bros. Pictures titles as Batman tournaments, community feeds, v Superman: Dawn of Justice, The Dark ACQUISITION OF ACM badges, levels, leaderboards, in-app Knight Trilogy, Suicide Squad and the GROUP ASSETS messaging and more, all in real-time, Studio’s 2017 action adventure Justice APRIL and customised to a specific operator League, Playtech, will develop a series Playtech announced it acquired and player journey. This will allow of Omni-channel DC-branded slot, technology, intellectual property and Playtech licensees to create further and roulette games, available certain customer assets from ACM loyalty through the use of gamification, across multiple channels and devices. Group Limited (known in the industry in-game communication, social as ‘Alpha’ or ‘ACM’) as it continues and analysis tools. to enhance its Financials division’s BETFRED.COM AGREES MULTI-YEAR B2B offering. PLAYTECH CONTRACT EXTENSION RANK GROUP AGREES PLAYTECH FEBRUARY As a result of the acquisition of the BINGO RENEWAL Betfred.com agreed to extend its assets a team from Alpha will join JANUARY decade-long partnership with Playtech the TradeTech Group and the brand agreed terms to until beyond 2020. The multi-year TradeTech Alpha will be created to renew its bingo and games contract extension includes the renewal and deliver a bespoke risk management with Playtech, further extending its extension of Playtech’s landmark and trading solution to B2B customers. longstanding relationship. The multi- casino content, progressive jackpots year agreement strengthens a more and access to more than 600 of the than a decade-long partnership industry’s best-performing games PBS EXPANDS SSBTS ACROSS between -owned brand including a host of branded titles INDEPENDENT OPERATORS and Playtech. Playtech Bingo retained from Warner Bros. JUNE its position as the exclusive provider Playtech BGT Sports (PBS), signed new of bingo and games for the leading UK deals with BG Bet, Wilf Gilbert, Victoria brand, while the extension also covers ACQUISITION OF BINGO SLOTS Gate Casino, Sean Graham and Star the provision of dedicated content SPECIALIST EYECON Sports Mayfair. development giving Mecca a significant FEBRUARY point of market differentiation. Playtech acquired the entire issued Independent operators Corbett’s, share capital of Eyecon Limited and Toals, Bet Sid, Toolan’s, GR8Odds Eyecon Pty. Ltd (together “Eyecon”), a and S&D all extended their existing PLAYTECH FIRST TO LAUNCH specialist supplier of online gaming slots deals in 2017. IN CZECH software to an international customer base, REPUBLIC WITH FORTUNA for a maximum total consideration FEBRUARY of £50 million. PBS EXTENDS SSBTS AGREEMENT Playtech become the first supplier WITH BETFRED to launch online casino in the Czech Eyecon was founded in Brisbane, Australia JUNE Republic with the rapidly expanding in 1997 and is a specialist software supplier Playtech BGT Sports (PBS), extended Fortuna brand. In February 2017 the with a particular focus on bingo audiences its SSBTs agreement with Betfred Czech Ministry of Finance granted with an established games portfolio of over to expand its coverage across the Fortuna the country’s first ever licence 70 games. Eyecon has also developed its bookmaker’s entire retail estate. As part to operate ‘online technical games’. own Remote Gaming Server (RGS) which of the deal, PBS will supply an additional The operator has since gone live enables it to distribute its content direct 570 terminals to the UK bookmaker, with a large selection of Playtech’s to operators and via distributors, such which takes its total number to over online and mobile slot and table as 888 Holdings plc and Virtue Fusion, 2,800 across its 1,700-strong estate. games content. Playtech's bingo network. 03

PLAYTECH PLC ANNUAL REPORT AND ACCOUNTS 2017 STRATEGIC REPORT

PLAYTECH AGREES CAESARS WILLIAM HILL & GALA BINGO WIN ENTERTAINMENT EMEA CASINO PLAYTECH AWARDS 2017 MANAGEMENT DEAL OCTOBER & SEPTEMBER JUNE William Hill and Gala Bingo have won Playtech signed a large-scale casino the first two Playtech Awards of 2017 for management system agreement with marketing excellence and innovation. Caesars Entertainment EMEA across eight landmark UK properties including William Hill won the Spring Playtech Empire Casino in central London. Award for its success in integrating and launching the Playtech Single Wallet Playtech Casino retail specialist IGS will across its sports and casino products replace Caesars’ legacy technology and across all channels, enabling players with its cutting-edge proprietary Neon to experience a single, seamless balance Enterprise system that will give the and significantly improving cross-sell casino group complete control across and the overall customer journey. its entire operation that covers eight properties, 178 gaming tables and 427 In September, Gala Bingo won this year’s electronic terminals in London, Mayfair Autumn Playtech Award for the success and across its UK estate. of its innovative Cashpot games suite with enhanced jackpot functionality.

SKY BET AGREES MULTI-PRODUCT RENEWAL WITH PLAYTECH PLAYTECH ACQUIRES RESPONSIBLE JULY SOFTWARE PROVIDER The contract extends across an exclusive BETBUDDY Playtech Casino, exclusive dedicated Live OCTOBER Casino environment, Bingo and dedicated In October 2017 Playtech agreed the Bingo game and network development. acquisition of Responsible Gambling software specialist BetBuddy for Sky Betting & Gaming is a long-standing an undisclosed fee. The addition Playtech partner that has witnessed of BetBuddy’s machine learning significant year-on-year growth within its and Artificial intelligence software NEXT gaming, live and bingo verticals as well into Playtech’s data driven IMS platform as showing great innovation and success will deliver an innovative Responsible GENERATION within its marketing of Playtech products. Gambling solution to operators globally. Early in 2017 the operator won Playtech’s STUDIO inaugural Playtech Award that recognises and rewards marketing excellence and PLAYTECH LAUNCHES EXCLUSIVE PLAYTECH COMPLETED innovation across the Playtech Casino CASINO AND POKER AGREEMENT network of global licensees. As a result of WITH CASINO BARCELONA MIGRATION OF DEDICATED its performance, excellence and uplift in NOVEMBER LIVE CASINO ROOMS TO ITS Live, Sky Casino received the top prize of Casinobarcelona.es launched a new NEXT GENERATION STUDIO one month’s exclusivity on a new Playtech and exclusive online and mobile IN RIGA, LATVIA game as well as £50,000 in marketing Playtech casino and went live on budget contribution. The move to the new facility began Playtech’s iPoker.es joining a host of in mid-2016 with the acquisition of a well-known brands on Spain’s largest prime 8,500 square metre capacity poker network. site built on top of the city’s fortified 16th century walls in the heart of Casinobarcelona.es is a renowned Riga Old Town, a site that dwarfs land-based venue and gaming any existing Live Casino area in the brand in Spain that opened its market today. online casino in 2012. Intensive work immediately began on converting the site into a state-of- the-art, next-generation Live Casino studio. The magnitude of the task was made even greater as the core studio had to simultaneously maintain existing operations while the new site was developed, built and gradually opened using a meticulously planned, phased approach. 04

PLAYTECH PLC ANNUAL REPORT AND ACCOUNTS 2017 STRATEGIC REPORT

A POSITION OF STRENGTH

REVENUE (€M) GROUP REGULATED REVENUE (%)

807.1 2017 54 2017 708.6 2016 48 2016 630.1 2015 47 2015

€807.1 m 54% 2017 2017

ADJUSTED EBITDA (€M) ADJUSTED NET PROFIT (€M)

322.1 2017 231.4 2017 302.2 2016 202.9 2016 251.9 2015 205.9 2015

€322.1 m €231.4 m 2017 2017

ADJUSTED DILUTED EPS (€C) TOTAL DIVIDEND PER SHARE (€C)

66.8 2017 36.0 2017 58.8 2016 32.7 2016 61.8 2015 28.5 2015

66.8 €cents 36.0 €cents 2017 2017

= Read our full operational and financial highlights on page 20