Building the leader in betting, gaming, and interactive entertainment
12th August 2021 Today’s agenda
Entain’s platform for growth Jette Nygaard-Andersen CEO
Entain Technology Sandeep Tiku COO
UK Digital Dominic Grounsell MD UK Digital
Q&A Presenters and Rob Wood Unparalleled Growth Momentum and Profitability Entain is a truly differentiated interactive entertainment business
Unparalleled Growth Momentum and Profitability Truly Global Market Leadership 22 29-30% #2 UK #2 US #2 Germany #2 Italy consecutive quarters Online EBITDA margin # # # # Partypoker 1 3 Australia 1 Georgia 1 Brazil 3 of double-digit online growth (FY21E) (global)
Diverse Product Offering with Omni-Channel Capabilities Robust, Reliable, Market-Leading Technology 3,000+ 2M 99.95% 120+ Technologists Daily bets Service availability (>99.9% Changes per day with zero through platform every year) downtime SPORTS CASINO BINGO POKER RETAIL
Bespoke Customer Offering Ensuring Quality User Experience Proven Digital Expertise Powered by Advanced Data & Analytics 25M 71% 300+ 160M+ 100+ 50+ ‘000s Betting offers from in-house BetMGM customers In-house games Customer data Content AI prediction Personalised offers trading platform, across 90+ playing on in-house and profiles based on recommendation models from data-powered sports and 200k+ in-play events exclusive content 250TB of data models CRM technology
Significant Regulatory Experience Leadership in Responsibility 100 645 99% ARC Licenses across 27 Experienced Legal and Revenues from regulated and countries globally Compliance personnel regulating markets Advanced Responsibility & Care
For notes see appendix 3 Industry-leading Entain Platform provides unique competitive advantages and powers growth M&A and Leading People Global Scale and Brand Integration Technology and Talent Awareness Track Record
Content Creation Customer Relationships Marketing Regulatory and Products and Data Excellence Expertise and Responsibility
4 Evolving our strategic narrative
VISION The world leader in betting, gaming and interactive entertainment
PURPOSE Bring moments of excitement into people’s lives
STRATEGY
SUSTAINABILITY GROWTH
⬢ Regulated ⬢ Leadership in the markets U.S.
⬢ Lead on ⬢ Grow presence in core markets responsibility ENTAIN PLATFORM ⬢ Expand into new ⬢ Best-in-class corporate regulated markets governance ⬢ Extend into new interactive ⬢ Investing in people entertainment & communities experiences
5 We are winning in the U.S.
BetMGM is the established #2 operator with significant runway for growth and profit generation
Overall Estimated National Market Share2
35% $32bn 20-25% 30% COMPETITOR 1
25% Long-term total addressable Expected long-term BetMGM market (TAM) U.S. market share 20%
COMPETITOR 2
15% 30-35% $1bn+ 10%
COMPETITOR 3 5% Expected long-term Forecasted 2022 EBITDA margin net revenue 0% Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
For notes see appendix 6 Growing share across all markets in the US
BetMGM market shares2 35% #1 30%
30% Q2 2021 iGaming Leader in iGaming market share2,4 25%
20% #2 22%
15% US Sports betting & iGaming Q2 2021 total operator2,4 market share2,4
10%
35% 32% 5%
0% Q2 2021 market share Q2 2021 market share Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 in Tennessee OSB4 in Colorado OSB4 Online Sports L3M iGaming L3M All Markets L3M
7 For notes see appendix Leading growth in the global online regulated market
STRONGStrong TRACKtrack RECORDrecord OFof growthGROWTH OnlineONLINE NGR NGR (£M)(£M) AND and Y/Y y/y GROWTH growth
900
41% 23% 800 32%
28% 700 23% 50% 22 23% 19% online NGR growth5 Online EBITDA Consecutive 600 11% 17% 11% in Q2 2021 growth in 2020 quarters of double- 15% 29% 18% digit online y/y 500 25% growth 26% 15%
400 13% 18% 12% 17% Online NGR (£M) NGR Online 22% 25% 24% 300 29-30% 20% 200 EBITDA margin 3-year CAGR in FY21E1 Online NGR 100
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2016 2017 2018 2019 2020 2021
For notes see appendix 8 Further high-quality growth built into our existing markets
Well-positioned to deliver growth from existing markets
GGR IN ENTAIN’S CURRENT MARKETS Online and Current Retail Market (2020-Long-Term)
NEW BETTORS MORE SPORTS MORE AND GAMERS BETTING GAMING +c.$30bn 25-40% 30-69% 26-63% 2020 - of adults in Entain’s of adults in Entain’s of adults in Entain’s existing 6 existing markets6 are existing markets 6 markets indicate an interest 2025 not betting today but indicate an interest to participate in gaming CAGR % are interested in to bet somewhat or somewhat or betting/gaming significantly more significantly more 8.3%
$70bn $59bn 97% 87% 100% $40bn of online NGR from of online NGR from Revenue from markets7 where we markets8 where online regulated markets are growing >10% penetration by end of 2023 is <35%
2020 2025E Long-Term
Sources: H2GC, VIXIO, World Bank Development Indicators, Activate Betting & Gaming Research Study (n = 21,570), Activate analysis For notes see appendix 9 Growing new regulated market opportunities
Significant opportunity in new markets9 2020 - PROJECTED LONG-TERM CAGR % c.50 $40bn $40bn 15% New market Potential new opportunity $9.6bn LatAm 22% markets (online and retail)
$24bn $11.5bn Africa 19% $5.2bn
Track record of Significant $10bn $6.3bn accretive M&A regulatory $1.3bn Europe 11% $1.3bn $18.5bn experience $2.1bn $12.4bn $6.6bn
2020 2025E Long-Term
Note: Numbers may not sum due to rounding. Sources: H2GC, VIXIO, World Bank Development Indicators, Activate interviews and analysis 10 For notes see appendix Significant revenue opportunity of c.$142bn from current business areas
$70bn $32bn $40bn GGR opportunity in North America GGR New regulated market existing markets10 market opportunity10 opportunity10
Sources: H2GC, VIXIO, World Bank Development Indicators, Activate interviews and analysis For notes see appendix 11 NEW GROWTH DRIVERS Consumer trends opening new growth opportunities
Consumer trends
MORE BETTING MORE MORE AND GAMING LIVE BETTING INTERACTIVE CONTENT EXPERIENCES ENTERTAINMENT
MORE VIDEO MORE AUDIO MORE FREE-TO-PLAY MORE PROGRAMMING CONTENT SOCIAL FEATURES GAMES
Opportunity for Entain to serve customers with an ecosystem of adjacent content, games and social features 13 Sports bettors are materially more likely to engage in much more content than non-bettors
Additional adult11 sports activities participation12
Sports bettors13 are…
UP TO 2.8X UP TO 2.7X UP TO 1.9X More Likely to watch More Likely to play More Likely to read BETTING CONTENT FREE TO PLAY GAMES STATISTICS & ANALYSIS
…than sports followers14 who do not bet
Sources: Activate Betting & Gaming Research Study (n = 21,570), Activate analysis For notes see appendix 14 Video gamers are more likely to participate in betting and iGaming
Global adult11 video gamers15 betting and iGaming participation12 Betting iGaming
Video gamers Video gamers are are UP TO 4.3X UP TO 4.5X More likely to More likely to participate in participate in 16 17 Bingo Sports betting Non-Sports Casino iGaming Betting Event Betting Slots
Casino Virtual Sports Poker Esports Table Games Betting Betting
Sources: Activate Betting & Gaming Research Study (n = 21,570), Activate analysis For notes see appendix 15 Video gamers expect more media content and social experiences
Global adult11 video gamers15 media activity participation12
Video gamers are…
UP TO 1.6X UP TO 1.5X UP TO 1.8X More likely to use More likely to watch More likely to listen to VIDEO CONTENT AUDIO CONTENT SOCIAL MEDIA
Sources: Activate Betting & Gaming Research Study (n = 21,570), Activate analysis For notes see appendix 16 New Players
REAL MONEY GAMING – Sports betting (i.e. online By expanding our and retail betting on traditional sports) – iGaming (i.e. poker, bingo, customer casino table games, casino slots) Consumer offerings, Engagement CONTENT & MEDIA Powered by: – Sports & betting media – Video and audio content enabled by THE ENTAIN PLATFORM – Streaming – Statistics and analysis • People and Talent • Proprietary – Free-to-play games our platform, we Technology • Content Creation and Products • M&A and Integration Track Record create powerful • Global Scale and Brand Awareness • Customer Relationships and New Users • Marketing flywheel effects, Data Excellence • Regulatory Expertise further driving and Responsibility real money gaming
INTERACTIVE ENTERTAINMENT – Esports betting – Skill-based wagering – Casual mobile games (i.e. Social Casino) New Gamers
17 CONTENT & MEDIA Driving user acquisition, engagement, and retention through content and media
CONTENT, MEDIA AND ENTAIN IS ALREADY EXPAND CONTENT CREATING CONTENT IN GAMING ARE CONVERGING & MEDIA THESE CATEGORIES:
• User acquisition • Building – in-house content Audio Video • User retention creation capabilities • Increased engagement • Acquiring – strong M&A and Sports & Free-to-play integration track record • Community effects betting games media • Partnering – existing and new partnership opportunities Innovative ways to interact with content (VR/AR)
Source: Activate analysis 19 Engaging our users with more content drives deeper engagement and builds relationships
Sports and betting content
MOODY ON THE MIC CORAL & ITV PARTNERSHIP Australia’s leading horse racing podcast Producing a 10 month series of high quality featuring legendary trainer Peter Moody documentaries about sporting greats
LADBROKES AUSTRALIA PRESENTS Weekly original racing stories to entertain and educate fans
Sources: Company Sites, Activate analysis 20 Entain’s sports and betting media creates relevant and engaging customer experiences
Sports and betting content
Bwin Content Partnerships
⬢ Partnerships with high-reach sports properties – Driving traffic and bets by integrating odds near relevant sports content
⬢ Localised offerings tailored to individual markets and consumer preferences
⬢ Social, dynamic live tickers and embedded news content
Sources: Company Sites, Activate analysis 21 We are constantly updating our free-to-play offerings to bring new users into the ecosystem and keep them coming back
Success from free-to-play games
NEDS' LIVE TRIVIA CORAL REWARDS GRABBER LADBROKES 1-2-FREE A micro-market game to engage players Arcade-style game available daily to Score and match prediction game available while sporting events are in-play users on the Coral platform weekly on the Ladbrokes platform
6 free-to-play propositions currently live across UK sports brands:
• C.700k average cumulative weekly customers playing FTPs
• >70% average conversion from FTP to real money play
• C.300k new customers acquired by FTP in the last 12 months
Sources: Entain internal data, Activate analysis 22 Leading the way in virtual sports experiences
Forthcoming innovative experiences
AR/VR Content First-of-its-kind virtual reality Sports Club experience
First-of-its-kind virtual reality Sports Club experience
Innovation project together with partner Verizon Media
Using a Quest 2 VR headset, customers will be able to:
Play and compete with each other in various games
Watch sports live streaming
Engage with our unique propositions
Sources: Company Sites, Activate analysis 23 THE INTERACTIVE ENTERTAINMENT OPPORTUNITY Esports audiences are growing rapidly with strong affinity for betting
Video game and esports ecosystem
VIDEO GAMING DEFINITIONS BETTING APPLICATIONS
General Gaming
18 (Casual games) NON-RANKED • Consumers playing digital interactive Skill-based wagering VIDEO GAME PLAY games for general entertainment Competitive play of skill-based games, with players betting on their own performance Organized & Structured Competitive Multiplayer
NON-PROFESSIONAL RANKED VIDEO GAMES • Amateur players competing based on Skill-based wagering (Amateur esports) structured rankings determined by Competitive play of skill-based games, Professional skill and performance with players betting on their own performance
ESPORTS (PROFESSIONAL)
Organized, ranked, • Professional athletes and teams competing Esportsbook competitive play in official leagues and/or organized Platform for viewers to wager on esports competitions, offered (includes play and/or tournaments viewership) by most traditional sportsbook operators
Source: Activate analysis 25 Esports already competes with major traditional sports and events for viewership
Viewership by League, Global, 2021 474M
281M 231M
105M
Esports Viewers
Sources: Forbes, NewZoo, Nielsen, Activate Analysis 26 The esports wagering opportunity will grow to c.$12bn by 2025
Esports wagering market19
2020-2025E CAGR
+c.$9bn c.$12bn 34%
c.$10bn Skill-Based Wagering 39% Competitive play of skill-based games, with players betting on their own performance
c.$3bn c.$2bn Esportsbook c.$2bn 19% Platform for viewers to wager on esports c.$1bn competitions 2020 2025E
Sources: Entain internal data, H2GC, Newzoo, PricewaterhouseCoopers, VIXIO, Activate analysis & interviews For notes see appendix 27 Unikrn leverages global player bases, offering both skill-based wagering and esportsbook
Unikrn surrounds Skill-Based these esports Example esports titles: Wagering Bet on your own experiences with performance, and compete against others to win prize content & media pools and social integrations
Social Esportsbook Bet on professional esports competitions and events, similar to traditional sportsbooks Programming Streaming
28 Entain and UNIKRN combination creates the first fully-integrated esports platform
Key Capabilities Unikrn Entain
Skill-Based Wagering: Bet on your own performance
Products & Enhanced Esportsbook: Bet on esports matches and virtual esports events Traditional esportsbook capabilities to pursue esports Streaming: Watch esports streams and bet on favorite streamers betting Social & Community: Interact with other users and engage with creators opportunity Original Content: Original news programming on esports & esports betting
Esports Data: In-play game data for skill based wagering
Scale: Global reach to support large-scale distribution
Capital Resources: Financial resources to support growth
Resources to Technology: Engineering resources and IP support Data Analytics: Intelligent analysis of player data operations at scale People: Talent and personnel Regulatory Experience: History of regulatory compliance across markets
Player Protection: Product features designed to protect players
Marketing Expertise: Experience and resources to effectively grow audiences 29 Opportunity to extend into casual gaming categories that align with our strategy
1928 Key areas of attractiveness to Example:EXAMPLE: socialSOCIAL casino CASINO adult ADULT market MARKET size SIZE , 2020, 2020--2025E, GLOBAL global Entain 2020–2025E CAGR % • Alignment with Entain’s core offerings and +c.$3bn capabilities c.10%
• High-growth opportunities – c.10%+ CAGR 2020-2025E
• Existing behavior among current Entain audiences c.$8bn – More than 50% of Entain’s existing free-to- play players transition to real–money gaming c.$5bn • Ability to attract new users to core offerings – E.g. Significant proportion of social casino players are current or potential bettors20
2020 2025E
Sources: Entain internal data, Activate Betting & Gaming Research Study (n = 21,570), Newzoo, SensorTower, Activate analysis For notes see appendix 30 New Players
REAL MONEY GAMING – Sports betting (i.e. online Entain’s flywheel and retail betting on traditional sports) – iGaming (i.e. poker, bingo, drives user casino table games, casino slots) Consumer acquisition, Engagement CONTENT & MEDIA Powered by: – Sports & betting media – Video and audio content engagement, and THE ENTAIN PLATFORM – Streaming – Statistics and analysis • People and Talent • Proprietary – Free-to-play games retention, Technology • Content Creation and Products • M&A and Integration Track Record enabled by • Global Scale and Brand Awareness • Customer Relationships and New Users • Marketing Entain’s unique Data Excellence • Regulatory Expertise platform and Responsibility
INTERACTIVE ENTERTAINMENT – Esports betting – Skill-based wagering – Casual mobile games (i.e. Social Casino) New Gamers
31 Unlocking significant market opportunities
Entain is moving from a $40bn to a $160bn total addressable market
INTERACTIVE THE ENTAIN ENTERTAINMENT24 OPPORTUNITY
NEW MARKETS23 c.$20bn
U.S. MARKET c.$40bn LEADER22
MARKET GROWTH IN c.$32bn CORE MARKETS21 c.$162bn
CORE INTERNATIONAL c.$30bn GAMING BUSINESS
c.$40bn
Pre-eminent, Digital, Global Betting & Gaming Platform Integrated Global Ecosystem
Sources: Entain internal data, H2GC, VIXIO, World Bank, NewZoo, Sensor Tower, Activate interviews and analysis 32 Sandeep Tiku11 Chief Operating Officer
Entain Group CTO 2014-2020 ENTAIN’S SECRET SAUCE
34 7 years ago, we set an ambitious target
Best customer experience
Strongest technology 2014 Awesome products
Build for the future
35 While the competition assembled boxes, we did something different
Linear approach At Entain, we set about developing
Sportsbook Casino Intelligent Technology
Poker Bingo To power the growth of the business
To transform the future of the industry
Just assembling the boxes isn’t smart
36 Intelligent powerhouse, real engineering outcome
37 Precision approach, differentiated from the competition
Linear approach Cognitive approach
Run processes
Start Play
Follow up
Reactive - Chasing the customer Proactive - One step ahead
38 Operating at Scale with Speed and Security
Large-scale global operations running seamlessly
7x 71k+ 100+ vs Amazon Trading events per min Cyber attacks
Entain’s UK Brands handle 7x Entain’s Trading platform 100+ Cyber Security attacks in transactions every Saturday generates 71k+ events per last 2 years vs Amazon’s UK setup minute - comparable to leading with ZERO impact on a Black Friday* stock exchanges to our services and customers
Notes: * Like for like comparison based on Statista Amazon report. Nov 23rd, 2018, Black Friday, Amazon UK reported 4.22M transactions that day. Each Saturday, Entain UK brands report 28M+ transactions (2018-2021+) 39 https://www.statista.com/statistics/1061675/number-of-total-transactions-on-amazon-uk-website-black-friday-and-cyber-week/ Delivering powerful & agile operations
Five major projects delivered in one single day
1 212th May3 2020 4 5
Ladbrokes migrated PayPal Germany Sportsbook migration Moved casino for Online gaming to Entain’s platform regulatory change with from Gibraltar Coral & Ladbrokes launch ready for (industry’s largest mandatory to Dublin to centralised West Virginia migration to date) deadline application stack
40 Delivering more for our customers
Improvement across the board
Increase in customer Customer delight 10% delight since Jan ‘21
Improvement in time to set up a More agile 476% new geography / market
Reduction in the time to integrate More flexible 780% any 3rd party
Notes: Customer delight based on new customer engagement measurement framework and sentimental analytics New market setup reduced from 8-9 weeks to 1-2 weeks 41 New third-party integrations reduced from 20-24 weeks to 2-3 weeks 5+ years of double-digit growth
Total Entain Digital NGR (£m) 900 #1 41% 23% 800 32% US Gaming
28% 700 23% #2
19% Germany 600 11% 17% 11% 15% 18% 500 29% 25% #2 26% 15% UK NGR£m 400 13% 18% 12% 17% 22% 25% 24% #2 300 Italy 200 #1 100 Brazil 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021
42 We are well-positioned to lead our sector
Performance against Top Digital Peers
4.1 Architecture & 1 Innovation 5 2.8 Technology 3.4 Strategy & 1 5 Entain has technology Operating Model 3.0 3.3 Technology 1 Procurement 5 in its DNA; the Group 2.5 4.1 Infrastructure & has built a key 1 Operations 5 3.1 differentiating factor 4.4 Risk & Security Management 1 5 3.1
Entain Maturity Level Peer Average Legend (Top 15 percentile)
Notes: As recognised by a leading global research and advisory company Top Digital Peers with revenues >5B USD, Operating in >15 countries, with IT spend >150M USD
43 1. AI First Strategy 2. Engineering Innovation 3. Development Ecosystem 4. Customer Protection
ENTAIN’S SECRET SAUCE 5. Awesome Products
44 2. Engineering Innovation 3. Development Ecosystem 4. Customer Protection
ENTAIN’S SECRET SAUCE 5. Awesome Products
45 1 AI First Strategy
CRM PERSONALISATION CUSTOMER 3rd PARTY
101010101110100110101010101010101010101010101010101010000111010101101 010101010101010100101011010011010100101001010101010101010011101101010 010101010010101001110101000101010100101010101010101010101010101010101 010101010101010101101010101110100110101010101010101010101010101010101SINGLE DATA LAKE 010000111010101101010101010101010100101011010011010110101001010101010 101010011101101010010101010010101001110101000101001010101001101010101
REAL TIME FEEDBACK AI ANALYSIS MODELS MIXER
Connected information driving step-change outcomes
46 1 AI First Strategy
Delivering value today
REVOLUTIONARY ✓ Hyper-personalised experiences for AI-FIRST every customer ✓ Far higher accuracy STRATEGY ✓ Understands new customers in Enabled by ▪ < 12 hours with 70% accuracy Entain’s proprietary ▪ < 3 days with 90% accuracy intelligent technology ✓ Real-time Voice of the Customer & AI driving Entain’s product experience
47 1. AI First Strategy
3. Development Ecosystem 4. Customer Protection
ENTAIN’S SECRET SAUCE 5. Awesome Products
48 2 Engineering Innovation
Automated technology integrations Invisible migration, visible benefits
Ladbrokes & Coral Online Monthly NGR (£m) Self-Detect
Self-Learn Migration to Entain platform
Self-Migrate
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 21 21 21 21 25m customers migrated recently 38% growth since migration * ZERO IMPACT
* 12 months post-migration vs. 12 months pre-migration 49 1. AI First Strategy 2. Engineering Innovation
4. Customer Protection
ENTAIN’S SECRET SAUCE 5. Awesome Products
50 3 Development Eco-system
Central delivery eco-system powered by Entain’s relevance factor
UK 253 features planned UK 769 features shared 3x
Europe 42 features planned Europe 313 features shared 7.5x MULTIPLIER US 265 features planned US 453 features shared 2x DELIVERY Casino 230 features planned MODEL Casino 311 features shared 1.5x
Others 687 features planned Others 1,770 features shared 2.5x
Average benefits per stream in 2020 of 332%
51 3 Development Eco-system, accelerating growth
Delivering scale with efficient operations
In 2018 Ladbrokes Coral By 2020 this was depended on… reduced to… 50M £ Synergies in less than 3,000+ people 24 months
150% increase in delivery Corporate Operations throughput 3 0 Poker & Casino Platform OUTSOURCING AGENCIES OUTSOURCING AGENCIES
Retail Development 1000+ people 250 0 Marketing Operations Corporate Operations Sports Development CONTRACTORS CONTRACTORS
Poker & Casino Platform Mobile Development 15 3 THEN NOW TECH SUPPLIERS TECH SUPPLIERS Scaling teams and moving functions to cost-optimized high-tech hub in India
52 1. AI First Strategy 2. Engineering Innovation 3. Development Ecosystem
ENTAIN’S SECRET SAUCE 5. Awesome Products
53 4 Customer Protection
Breakthrough scientific approach to player safety
1
FOCUS ON INTELLIGENT BOTH APPROACH TO CUSTOMER CUSTOMER BEHAVIOUR PRODUCT FEATURES RISK BEHAVIOURS Keeping customers in their Safe Zone Continuously scanning our product for REDUCTION hot-spots & PRODUCT Setting behavioural baselines FEATURES Making real-time changes to Detecting spikes in their play keep our customers safe
Customer Profile Academic Product Feature 2 Analysis Research Analysis
CARE CRAFTED CREATES PERSONAL SAFETY NET TO EACH A SAFETY CUSTOMER NET UNIQUE ▪ TO EACH Dynamic Bet Limits ▪ Dynamic Deposit Limits CUSTOMER Tailored to ▪ Dynamic Session Time Limits each customer ▪ Dynamic Feature Adaption
54 1. AI First Strategy 2. Engineering Innovation 3. Development Ecosystem 4. Customer Protection
ENTAIN’S SECRET SAUCE
55 5 Awesome Products
CASINO RACING SPORTS BINGO POKER
1000+ new features added every single year
56 Continually driving down costs
Technology gross cost base as % of NGR
33% reduction since 2018
2018 2019 2020 2021 Cost / NGR %
57 Accelerating growth
Product innovation driving further growth
• New Trading Platform H2 2021 (4 years of investment) • Proprietary group Bet Station by H2, 2021 • Next-Gen Personalization Engine by H1, 2022
58 Ready for the next innovation curve
Innovation is disruptive
Guy Kawasaki tells the story of how ICE 1.0 (left) became ICE 2.0 (right), through disruptive innovation
59 Ready for the next innovation curve
We are at the forefront
TECHNOLOGY GAMING MEDIA LIVE ENTERTAINMENT YOUR SPORTS SOCIAL pic DREAM pic
Innovation Lab & Brand Disruptive & Innovative Key launch In 2021 Product Lines Partnerships
60 Ready for the next innovation curve
We are investing 100% funded through £100M EVOLVE in innovation our cost over the next 3 optimisation years programme
61 Key takeaways
#1 Powerful technology ecosystems
#2 Years ahead of the competition
Ready to shape the future of our ENTAIN’S #3 SECRET SAUCE industry
62 Dom Grounsell11 MD UK Digital UK digital market in consistent growth
UK Digital sector: Total net gaming revenue 2016-2020
+16% +6% Consistent growth for 15+ years +3% £6.0 +18% £5.2 £4.8 £4.9 Growth driven by customer penetration £4.1 & innovation
Tier 1 operators dominate NGR(£bn)
Out-performance requires leadership in key capabilities
2016 2017 2018 2019 2020
Source: Regulus 2020 Market Data 64 Diverse UK brand portfolio
Key Entain UK brands & lead propositions
17% Sports Betting Sports Betting Slots NGR Market Slots Slots Table Games share Table Games Table Games Live Casino 2020 Live Casino Live Casino Poker
+2pp share vs. 2019 Slots Bingo Bingo Bingo Slots Slots Table Games Live Casino Live Casino
Source: Regulus 2020 Market Data 65 Diverse UK customer base
Key Entain UK brands – customer audiences
Opportunities to GROW
Opportunities to MITIGATE MARKET HEADWINDS
Diverse Customer Base: Ages Genders Lifestyles Product Preferences Playing Behaviours
66 Unique & highly effective operating model
Customer Facing Brands Driving the market level growth agendas
World Class Centralised Operational Functions Ensuring consistency in Compliance Customer Services Enabler Functions execution in critical areas & Player Protection & Operations Legal, HR, Finance etc.
Integrated Global Platform Delivering cost efficiencies & global consistency, stability & Product Core Systems Data alignment
67 Strong brand, customer & revenue performance
BUILDING STRONG BRANDS ATTRACTING MORE CUSTOMERS DIVERSIFYING OUR CUSTOMER BASE (1) (2) Top UK Betting & Gaming Brands: % Customers Very/Somewhat Monthly Actives Customers Jan 2019-May 2021 Recreational Player Volume 2019 vs 2020 Familiar
+76% +43%
2019 2020
IMPROVING CUSTOMER SATISFACTION DELIVERING MARKET LEADING GROWTH (3) (4) Av Weekly Coral Customer Satisfaction: 2019-2020 Operator 3 Year CAGR: 2017-2020 20% +20% 15%
10%
5%
0% 2019 2020 Entain Comp Comp Comp Comp Comp Comp Comp Comp UK 1 2 3 4 5 6 7 8 -5%
1) Nursery UK Digital Brand Tracker Q4 20. Q: How familiar are you with the following companies? N = >2000 Rest of 2) Internal Entain data Market 3) Entain UK Voice of Customer Survey N=>1000 -10% 68 4) Regulus Market Data 2020 Four pillars of growth
Customer Insight, Brand Innovation Digital Marketing Data & Analytics
Customer First approach 69 1. Insight, Data & Analytics 2. Brand 3. Innovation 4. Digital Marketing
Growth Pillars
70 Analysis & synthesis of external insight
Analysis & synthesis external insight Identifying new growth opportunities
Market Size & Value Trends Innovation Reports Share Reports Competitor Monitoring Feedback Market Tracking Csat Tracking & Analysis Social Monitoring
Customer Customer Tracking Satisfaction Insight & & Sentiment Analysis
Customer Volumes Brand Health & Customer Behaviours Awareness Image Tracking Socioeconomics Consideration Psychographics Perception Geodemographics Image Attributes ACQUISITION RETENTION Opportunity Heatmap Opportunity Heatmap
71 Innovating in customer research
Example: Leveraging neuro testing to optimise TV adverts
Develop TV Advert Neuro-Testing Study Rich insight to evaluate and optimize advert
Measuring EEG Brain Response Section 1
Section 2
GSR ET
Measuring Measuring Skin Eye Response Tracking Analyses of combined EEG, GSR and ET measurements allows us to identify where the ad is performing and where we can improve.
72 World class customer segmentation
Large scale research programme delivering in-depth Leveraging insight to create experiences tailored to segment insights segment needs
CURRENT AUDIENCE ADDITIONAL FUTURE AUDIENCE EXAMPLE EXAMPLE
Extensive Qualitative High Volume Detailed Factor & Research Phase Quantitative Study Cluster Analysis
CURRENT AUDIENCES
ADDITIONAL TAILORED TAILORED FUTURE SEGMENT SEGMENT AUDIENCES EXPERIENCES EXPERIENCES
73 Leading edge data & analytical capabilities = data powered decision making
CUSTOMER COMMERICAL MAXIMISING CUSTOMER Focus Areas UNDERSTANDING OPTIMSATION GROWTH PROTECTION
Commercial Compliance AI Lifetime Value AI Next Best Offer Analytics & Analytics & Models Engine Reporting Reporting
Marketing AI Driven KYC Engine Key Customer DNA Personalisation Capabilities Analytics Toolkit
AI Problem Bonus Abuse Gambling Segment Analysis Simulation Suite Models Prediction Engines (Part of ARC)
World Class Integrated Global Enhanced AI Advances Global Foundations Management Data Platforms Platform Analytics Tool Kit Information Suite
74 1. Insight, Data & Analytics 2. Brand 3. Innovation 4. Digital Marketing
Growth Pillars
75 Strong heritage and significant investment
Strongest heritage in the market Significant investments in advertising
Ladbrokes: Founded 1902 Coral: Founded 1926
Gambling Brands Share of Advertising Media Spend: YTD May 2021
20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Comp 1 Ladbrokes Comp 2 Comp 3 Comp 4 Coral Comp 5 Rest of Brands Source: Analysis of BARB & Nielson Tracking
76 Building towards world class Brand Marketing
INNOVATING IN DIGITAL HUMAN, CUSTOMER LADBROKES HORSE TINDER CENTRIC ADVERTISING
BLOCK BUSTER CAMPAIGNS
FILM QUALITY PRODUCTION VALUES
77 The brand power of Retail
>2.5k ‘window’ advertising sites
Millions in potential media value
High quality digital window screens rolling out
Proprietary MarTech delivering localised messages
Key competitive advantage
78 1. Insight, Data & Analytics 2. Brand 3. Innovation 4. Digital Marketing
Growth Pillars
79 Ambitious, wide ranging innovation agenda
FREE-TO-PLAY SPORTSBOOK GAMING CORE JOURNEY
Market leading portfolio of games Driving engagement through Breadth & depth of best-in-class Making it easier & quicker for across Sports & Gaming gamification content always available for customers to complete key action customers
Integrated Global Platform
80 Setting the highest possible bar for future innovation
Make it… Make it… Make it… Make it…
Example SIMPLER & MORE FUN & PERSONALISED STAY IN Customer Needs MORE ENTERTAINING TO ME CONTROL INTUITIVE
Our Bar For Innovation
81 1. Insight, Data & Analytics 2. Brand 3. Innovation 4. Digital Marketing
Growth Pillars
82 Extensive Marketing Technology estate & innovative digital marketing
Entain MarTech Estate – Graphical Overview Highly Targeted Real Time Push Campaigns Personalised Customer Marketing
Our MarTech estate incorporates best in class tools & platforms from a wide range of leading suppliers
83 Driving to the bleeding edge of what is possible
Customer Segment insight….
THE FLOW Analysis produces MARKETING FLY optimization WHEEL Future Priorities insights
Drive channel expansion … drives ideal proposition & We then Linear Attribution creative selection analysis Performance Performance Next phases of MarTech expansion for each performance customer… using multiple lenses Deepen partnerships & integrations Customer Brand with key partners Feedback Tracking
Flow Marketing
… and drives ‘individualised’ campaign execution: Channel selection, Spend, Scheduling, etc
84 Conclusion
Consistent track record of out-performance
Significant investments in critical capabilities to drive growth
Ambitious roadmap of innovation underway
Major scope for future growth, built around being data driven & customer first
World leader, not just category leader, in our key pillars of growth
85 APPENDIX References
1. As per company guidance with 2021 Interim results dated 12 August 2021 2. Total market share by GGR for retail, OSB and iGaming across all U.S., including jurisdictions where BetMGM is not currently active; internal estimates used where operator- specific results are unavailable. 3. In markets that BetMGM is active. 4. 3-month rolling market share April 2021 to June 2021, based on BetMGM revenues as a percentage of state reported revenues. 5. Constant currency basis. 6. Includes Australia, Belgium, Brazil, Canada, France, Germany, Italy, Mexico, Spain, United Kingdom, United States. 7. Excluding Germany. 8. Excluding UK. 9. Markets in which Entain is not licensed nor currently engaging with regulatory authorities in preparation for licensing. 10. Projected long-term available market size. 11.Minimum age surveyed varied across countries due to betting/gaming age restrictions. 12. Global countries surveyed include: Australia, Belgium, Brazil, Canada, France, Germany, Italy, Japan, Mexico, Poland, Russia, Spain, United Kingdom, United States. 13. Sports bettors defined as those who have bet money on sports in the last 12 months. 14. Sports followers defined as those who have watched sports games or highlights, attended a sport event, or read articles/stats in the last 12 months. 15. Played video and/or mobile games on any device in the last 12 months. 16. Bettors defined as those who have participated in at least one betting activity (betting on sports, esports, virtual sports or non-sports events) in the last 12 months. 17. Gamers defined as those who have participated in at least one gaming activity (playing casino table games, bingo, poker, or slots with real money) in the last 12 months. 18.For non-ranked video games, players may be ranked according to performance statistics for multiplayer match-making to occur, to ensure fair level of play, and to support social interaction (e.g. leaderboards), though this score is often withheld from the player, is not professionally-driven, and is not used in situations analogous with rank- based competitions (e.g. players earning skill tiers, tournaments with payouts).
87 References
19. Includes revenue from adults aged 18+ only. 20.Current bettors defined as those who participated in at least one betting or gaming activity in the last 12 months. Potential bettors defined as those who have not participated in betting or gaming activities in the last 12 months but are at least slightly interested in participating in at least one in the future. 21. Core market long-term TAM (excluding the US) estimated to be c.$70bn based on GGR forecasts of current active geographies. 22. Incremental US long-term TAM of c.$32bn equals estimated forecast GGR of c.$14bn for U.S. iGaming, c.$13bn for U.S. sports betting, and c.$4bn for total Canadian market. 23. New market incremental long-term TAM estimated to be c.$40bn based on GGR forecasts of target markets where Entain is not currently active. 24. Forecast incremental 2025E TAM for interactive entertainment of c.$20bn equals forecast 2025E TAM of c.$12bn as addressable market for Esports betting and c.$8bn as addressable market for social casino.
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