Kindred Group Plc Annual Report and Accounts 2020

18/03/2021 12:2318/03/2021 12:23 approach. approach. through our through Delivering Delivering value data‑driven Kindred Group plc Annual Report and Accounts 2020

Kindred Group plc Annual Report and Accounts 2020

Registered office Registered c/o Camilleri Preziosi, Buildings 2, Valletta Level 1103, Malta. VLT Valletta South Street, www.kindredgroup.com Kindred Group plc Kindred Group 6, The Centre Level Sliema TPO 0001, Malta. Tigne Point, 3532 +356 2133 Tel: C39017. Company No: in Malta. Registered 23090_Kindred_AR20_COVER_210318.indd 1-323090_Kindred_AR20_COVER_210318.indd 1-3 Data and relationships – our keys to success

Kindred prides itself on being a trusted source of entertainment to nearly 30 million customers worldwide and on contributing positively to society. Our success is built on offering a truly personal, seamless and sustainable experience to our players and the long-term relationships that flow from this approach.

We use data to adapt to market changes; develop new and engaging products; and launch in new territories. Compliance and sustainability have always been core strategic enablers for us, while through operational efficiency and platform excellence, we achieve greater scalability.

Strategic report Governance 01 Highlights 33 Introduction to governance 02 Kindred at a glance 34 Board of Directors 04 Chairman’s statement 36 Executive Committee 05'LMIJ)\IGYXMZI3ƾGIVƅWVIZMI[ 38 Corporate governance statement 07 Business model 41 Audit Committee report 09 Revenue model 42 Nomination Committee report 10 Customer-centred 43 General legal environment 12 Insights-led 467LEVIWERHWLEVIGETMXEP 14 Growing market 49 Remuneration Committee report 16 Key performance indicators 53 Directors’ report 187YWXEMREFMPMX]EX/MRHVIH Financial statements 247TSVXWFIXXMRKMRXIKVMX] 55 Independent auditor’s report EXɸ/MRHVIH 61 Consolidated income statement 25 Risk and risk management 61 Consolidated statement of 26 Principal risks and uncertainties comprehensive income 28 Financial review 62 Consolidated balance sheet 31 Kindred as an investment 63 Consolidated statement SJɸGLERKIWMRIUYMX] 64'SRWSPMHEXIHGEWLƽS[WXEXIQIRX 65 Notes to the consolidated ƼRERGMEPWXEXIQIRXW

Other information Keep up to date online 91 Annual General Meeting www.kindredgroup.com 92 (IƼRMXMSRW

This document is the English original. In the event of any discrepancy between the SVMKMREPɸ)RKPMWLɸHSGYQIRXERHXLI7[IHMWLXVERWPEXMSRXLI)RKPMWLSVMKMREPWLEPPTVIZEMP Strategic report Governance Financial statements Other information Kindred Group plc Annual Report and Accounts 2020 01

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Our brands +451% 1.162 Free cash flow per share per flow cash Free 193.1 +188% Profit beforeProfit tax GBP 257.2 Marketing expenditure expenditure Marketing GBP 1,130.2 Gross winnings revenue revenue winnings Gross GBP

Highlights +24% -1% Stepping into the US market Stepping into of the ruling overturningIn the wake XLI4VSJIWWMSREPERH%QEXIYV7TSVXW 4VSXIGXMSR%GX 4%74% MRMRXLI97% legalise and to seen states begin we have VIKYPEXISRPMRIWTSVXWFIXXMRKERHGEWMRS a potentially hugeopening the doors to QEVOIX8SHE]/MRHVIHLSPHWPSGEPPMGIRGIW MR-RHMERE2I[.IVWI]ERH4IRRW]PZERME (YVMRK/MRHVIHMWTPERRMRKXSIRXIV -PPMRSMWERH-S[EERHMJWYGGIWWJYPMR XLI3GXSFIVɸWTSVXWFIXXMRKXIRHIV Virginia. a capture is well placed to Kindred of the huge potential meaningful share SJXLI97QEVOIX;IIRXIVIHXLIQEVOIX established a already in 2019 and have foothold in a territory which has strong locally become the largest the potential to know We in the world. market regulated that we perform well under regulation ERHɸWS[IZMI[XLI97%EWEWYFWXERXMEP opportunity. long-term growth Our diverse product and and Our diverse product LJTLWFUMNHFQ࣢RN]UWT[NIJܫJ]NGNQNY^ leading the world’s is one of Kindred with online gambling operators EHMZIVWIɸKISKVETLMGEPJSSXTVMRX database of nearly Our customer QMPPMSRVIKMWXIVIHTPE]IVWHMWXVMFYXIH EGVSWWWIZIVEPGSRXMRIRXWXSKIXLIV[MXLɸSYV QYPXMTVSHYGXTSVXJSPMSTVSZMHIWXEFMPMX] Our leading and lower risk exposure. the scale to position means we have MRZIWXMRɸXLIQEVOIXMRKERHɸXIGLRSPSK] XLEXMWVIUYMVIHXSWYTTSVXɸKVS[XLERH places That scale also compliance. participateus in a good position to MRɸMRHYWXV]GSRWSPMHEXMSR -REWE+VSYT[ILEZITVSZMHIH TVIKEQIERHPMZIWTSVXWFIXXMRKTVSHYGXW GEWMRS KEQIWERHFMRKSKIRIVEXMRK +&4QMPPMSRMR+VSWWɸ[MRRMRKW VIZIRYI[LMGLVITVIWIRXWɸERRYEP KVS[XLɸSJTIVGIRX ovide world- ovide ustainable in the ers and pr A global reach The company was founded as Unibet in is always 1997 on the principle that there in the gambling operate to a better way experience a truly great ensure to sector being run – we think of it as Kindred F]TPE]IVWJSVTPE]IVW;ILSPHPSGEP KEQFPMRKPMGIRGIWMR%YWXVEPME&IPKMYQ (IRQEVO)WXSRME*VERGI+IVQER] 7GLPIW[MK,SPWXIMR -VIPERH-XEP] 6SQERME7[IHIRXLI9/ERHXLI97% -RHMERE2I[.IVWI]ERH4IRRW]PZERME 3YVXIEQSJEPQSWXIQTPS]IIW 62 nationalities across representing ɸSƾGIWLEZI[SVOIHXSKIXLIVIZIV] possible the best and safest deliver to day gambling experience for our customers. The ambitious work has continued during pandemic despite the fact the COVID-19 majority of our employees that the vast home since been working from have early March. (MKMXEPMWEXMSRYRPSGOWRI[STTSVXYRMXMIW ;MXLXLIMRXVSHYGXMSRSJ+QSFMPI W]WXIQWMRXLI97%ERH)YVSTI a new formgambling will truly become of entertainment for a wider audience. gambling in new will experience We of see a new form and probably ways KEQMƼGEXMSRMRWSGMIX]%XXLIWEQI XMQIXIGLRSPSKMGEPHIZIPSTQIRXWGER LIPTQEOIKEQFPMRKWEJIVQSVIWIGYVI before. than ever sustainable and more -RRSZEXMSRMRXIGLRSPSK]QEVOIXMRKERH huge opportunitiesdata offer get even to closer our custom to long term. class digital entertainment. We believe abelieve We entertainment. digital class WYGGIWWJYPFYWMRIWWMWEFSYXJYXYVITVSSƼRK SYVSTIVEXMSRWXSFIIGSRSQMGEPP]WSGMEPP] and environmentally s

per cent of the total global per cent of the total 1 gambling market. Even after almost Even gambling market. ɸ]IEVWXLIWLMJXJVSQSƿMRIXSSRPMRI as being in its early can be considered HE]W[MXLXLISRPMRIMRHYWXV]KVS[MRK EXɸERERRYEPTEGISJETTVS\MQEXIP] TIVɸGIRX[LMPIKVS[XLMRɸXLISƿMRI MRHYWXV]MWFVSEHP]ƽEX 1 H2GC 1 Jan 2021. Locally regulated markets markets Locally regulated JSYRHEXMSRɸJSVɸPSRKXIVQTVSƼXEFMPMX] witnessed we have years In recent EɸQENSVWLMJXEGVSWW)YVSTIMRXIVQW SJɸXLIɸXVERWMXMSRJVSQHSXGSQXS HSXGSYRXV]QIERMRKXLEXQEVOIXW EVIEHSTXMRKEPSGEPPMGIRGIW]WXIQ [MXLXLIɸ2IXLIVPERHWI\TIGXIHXSFI XLIRI\XɸQEVOIXXSJSPPS[MR -RGVIEWIHJSGYWSRGSRXVSPQIGLERMWQW have and tighter regulation restrictions curbbeen put in place in an attempt to have gambling. Operators excessive and reality a new market adapted to that ensure to work with stakeholders of channelisation – the share the level with play choose to who of customers – remains locally licensed operators the where high in a digital environment one click away. is only ever alternative 3ZIVXMQI[II\TIGXERMRGVIEWMRKWLEVI SJ/MRHVIHƅWVIZIRYIERHTVSƼXXSGSQI markets. locally regulated from A growing industry under A growing transformation The online gambling industry emerged MRɸXLIQMHW[LIRVIXEMPWTSVXW betting and casino games became EZEMPEFPISRGSQTYXIVWERHXSHE]XLI is estimated online gambling market XSFIɸ Gambling macro trends Gambling macro IJܪSNSL࣢TZW࣢KZYZWJ The online gambling industrypart is of digital of the wider transformation IRXIVXEMRQIRXGVIEXMRKEQSVI EGGIWWMFPIɸERHXEMPSVIHGYWXSQIV of The digitalisation experience. WSGMIXMIWɸWLMJXMRKGSRWYQIVFILEZMSYV JVSQSƿMRIXSSRPMRIXSKIXLIV[MXLPSGEP and the Europe across regulation market 97%MWSTIRMRKYTRI[STTSVXYRMXMIW the ability to have who for operators GETMXEPMWISRERHEHETXXSXLIWIXVIRHW Kindred at a glance at Kindred Over the last 20 years, Kindred together has brought some most of Europe’s successful online gambling brands – forming one of the largest online gambling companies in have business the world.We operations in Europe, Australia and the USA, offering nearly 30 million customers a great form of entertainment in a safe, fair and sustainable environment. Based on online revenues, Kindred is fourth-largest onlinenow the world’s operator.

kindredgroup.com 02 Strategic report Online % share of total gross gaming revenue for 2019

60%

50% 58.8%

40% 54.7% 45.3%

30% 42.6% Governance 39.8% 39.1% 37.2% 36.1% 36.3% 34.9% 34.0% 20% 33.6% 11.7% 10.9% 26.6% 26.2% 25.8% 24.1% 23.3% 23.3% 10% 22.6% 20.4% 19.2% 19.2% 19.4% 17.8% 17.0% 15.1% 0

Strategic priorities UK Italy Spain Malta Latvia

%WGEPEFPIERHIƾGMIRXFYWMRIWW Greece France Poland Cyprus Croatia Ireland Austria Estonia Finland Sweden Belgium Bulgaria Portugal Slovenia Slovakia Hungary Romania Germany QSHIPɸWYTTSVXWJYVXLIVKVS[XL Denmark Lithuania Czech Rep Financial statements

Our ambition is to build a company Netherlands Luxembourg XLEXɸMWɸKIRIVEXMRKLIEPXL]ERH Source: H2 Gambling Capital, January 2021 – www.h2gc.com WYWXEMREFPIɸTVSƼXMRPSGEPP]VIKYPEXIH IRZMVSRQIRXW8SEGLMIZIXLMW[I TYXɸKVIEXJSGYWSREWGEPEFPIERH European online market excluding state lotteries (GBP bn) IƾGMIRXɸFYWMRIWWQSHIPIREFPMRK YWɸXSɸI\TERHSTIVEXMSRWERHEFWSVF 30,000 4.8% 5% 28,408 GSWXWɸXSWYTTSVXJYVXLIVTVSƼXEFPI 26,643 24,706 growth in locally regulated markets. 24,000 4% Other information 21,455 22,399 3YVTVSTVMIXEV]TPEXJSVQEPPS[WɸYW 19,225 XSɸEHETXXSFSXLGYWXSQIVRIIHW 18,000 16,829 3% 14,560 ERHɸPSGEPVIKYPEXMSR[LMPITVSZMHMRKEɸWEJI 12,855 12,000 2.1% 11,455 2% ERHWXEFPIIRZMVSRQIRXMR[LMGLɸXSɸTPE] 8,793 9,903 7,821 -XEPWSIREFPIW/MRHVIHXSɸI\TERHMRXS 6,000 6,859 1% RI[ɸQEVOIXW[MXLPMQMXIHɸMQTEGXXS FYWMRIWWSTIVEXMSRWKMZMRKYWXLIƽI\MFMPMX] 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 201920202021 2022 2023 0% XSWGEPIYTSVHS[Rɸ[LIRRIIHIH Estimated (MJJIVIRXMEXMSRXLVSYKL'< Kindred Source: H2 Gambling Capital, January 2021 – www.h2gc.com market share In a digital environment the GYWXSQIVɸMWɸ/MRKSV5YIIR8LIEFMPMX] to choose a provider of choice is at Kindred yearly active Online gambling growth XLIGYWXSQIVƅWƼRKIVXMTWERHSRP] customers (millions) Projected US online sports betting and one click away. Any digital company iGaming gross gaming revenue (USD bn) in any digital industry must provide a superior customer experience in order 3.5 12.0 3.2 4,553 to compete. Differentiation through a 3.0 3.1 3.1 YRMUYII\TIVMIRGIVIQEMRWEOI]TEVX 2.9 10.0 4,081 2.5 SJɸ/MRHVIHƅWFYWMRIWWQSHIPSJJIVMRK 2.3 8.0 3,467 EKVIEXGYWXSQIVNSYVRI]ERHYRMUYI 2.0 6,284 2,632 product aspects such as exclusive 6.0 5,410 KEQIWɸERHEXEMPSVIHWTSVXWFSSOPSFF] 1.5 4,531 4.0 2,120 1.0 3,302 %WXVSRKJSGYWSRWYWXEMREFMPMX] 2.0 2,095 Kindred has a sector-leading approach 0.5 towards responsible gambling with the 0.0 2016 2017 2018 2019 2020 0.0 2021E 2022E 2023E 2024E 2025E vision of offering a 100 per cent enjoyable iGaming Online sports betting experience. Our ambition is to ensure that Source: VIXIO Gambling Compliance estimates. our operations always meet the highest 2020 Accounts and Report Annual plc Group Kindred December 2020 TVSJIWWMSREPGSQTPMERGIERHIXLMGEP standards. Our focus on sustainability GSRXVMFYXIWXSPSRKXIVQTVSƼXWVIHYGIW Kindred product and regional split of Gross winnings revenue ZSPEXMPMX]ERHYRGIVXEMRX]ERHWXVIRKXLIRW our ability to attract and retain the best By product (%) By region (%) talent. It also allows close cooperation 2 2 3 3 3 3 3 3 2 2 2 2 2 with regulators and other stakeholders. 3 3 6 6 5 46 48 47 47 48 45 64 52 47 59 62 60 60 61 61 60 62 65

3 2 3 2 2 2 2 2 22 23 24 24 21 21 22 22 4 7 8 9 8 9 9 9 12 32 30 9 9 28 26 28 27 28 29 27 27 25 24 24 24 21 23 21 17

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Pre-game sports Live sports Poker Nordics Central, Eastern and betting betting Southern Europe Casino & games Other Western Europe Other 03 ” Founder and and Founder Anders Ström Anders Chairman of the Board the of Chairman Kindred believes a successful “ business is about future-proofing profitoperations to generate and value in the term. long X] I I P PS[ \IW VW IR GXSV QSWX IVW QMPPMSR Anders Ström Anders Board the of Chairman and Founder plc Group Kindred ;IHSEPPXLMW[MXLWYWXEMREFPITVSƼXEFMPMX]JSVSYVWLEVILSPH 8LEXQSVIXLERER]XLMRKIPWIWLS[WLS[/MRHVIHWXERHW TVSYHɸMRI\IGYXMRKGSVTSVEXIGMXM^IRWLMT Particularly of the Board to as I will not stand for re-election (MVIGXSVWMRXLMWMWSRISJXLIEGLMIZIQIRXWXLEX-[MPP Though I will no longer Kindred. with me from away take proudly FIɸEGXMZIP]IRKEKIHMRXLIGSQTER]-JSYRHIH-[MPPEP[E]WJSP XSɸWYGGIWWJYPP]EGXEWɸEɸVIWTSRWMFPIGSRXVMFYXSVXSWSGMIX]MR EɸWIGXSV[MXLQER]ORS[RTMXJEPPWERHZYPRIVEFMPMXMIW ERHSXLIVWXEOILSPHIVW/MRHVIHƅWWYGGIWWLEWFIIRFIRIƼGMEP XSɸWLEVILSPHIVWMXMWXVYI&YXQSVIXLERXLEX/MRHVIHLEWFI Eɸƈ[SVOLSVWIƉJSVWSGMIX]Ɓ[ITE]SZIVHSYFPIXLIEQSYRXMRXE XLEX[ITE]SYXMRWLEVILSPHIVHMZMHIRHW8SMPPYWXVEXIWMRGI /MRHVIHLEWMRMXWHMJJIVIRXNYVMWHMGXMSRWMRGYVVIH+&4 MRɸXE\IWEKEMRWXTE]MRKSYX+&4QMPPMSRMRHMZMHIRHW One of the great things about Kindred is that our work things about Kindred One of the great HSIWRSXɸWXEVXERHIRH[MXLSYVWIVZMGIWXSSYVTPE]IVWERH policies we help initiate for an increasingly the regulatory better gambling and betting experience for all stakeholders. ;IWYTTSVXɸXLIHIZIPSTQIRXSJHMJJIVIRXWTSVXWMRXS[LMGL [IɸGLERRIPVIWSYVGIWXLVSYKLXLIJIIW[ITE]ERHPMGIRGIW [IFY]ERHZMESYVWTSRWSVWLMTEVVERKIQIRXW;IEPWSSJJIV specialisations and technology and we develop employment JSVɸXLIFIRIƼXSJQER]SXLIVWIGXSVW;IEVITVSSJSJXLIEFMPM EWɸMRJSVQYPEXMRKZMEFPIWIPJVIKYPEXMRKMRMXMEXMZIWJSVSYVWI and those of my wonderful colleagues. the exploits of Kindred &YMPHMRKSRXLMWETTVSEGL/MRHVIHLEWFIIREFPIXSKVS[ QSWXP]ɸSVKERMGEPP]FIGEYWI[IORS[XLIHIQERHWSJTPE]IVW %RHLEZMRKHIZIPSTIHSYVXIGLRSPSK]FEWIHSRXLMWORS[PIHKI [ILEZILEHEPQSWXRSRIIHXSKVS[F]PEVKIVEGUYMWMXMSRW *YVXLIVQSVIFEWIHSRSYVORS[PIHKISJSYVTPE]IVW[ILEZI larger few the successful in integrating been extraordinarily EGUYMWMXMSRW[ILEZII\IGYXIH-WXMPPLEZIJSRHQIQSVMIWSJXL and our extensive and profound Our position in the market in our different and regulators familiarity with the regulations earned us the privileged position of being jurisdictions have XLIɸHVMZMRKJSVGIMRWLETMRKTYFPMGEYXLSVMX]VIKYPEXMSREW[IP 8LMWɸMWXLITVEGXMGEPFYWMRIWWQERMJIWXEXMSRSJSYVLIVMXEKI XEKPMRIƈ&]TPE]IVWJSVTPE]IVWƉ EGUYMWMXMSRSJERHQIVKIV[MXL1V&SSOQEOIVFEGOMR %W[IPPEWFIMRKEKVIEXHIEPJSVYWXLEXKEZIYWSYVTVSƼXEFP ERHɸHYVEFPITVIWIRGIMR&IPKMYQERH*VERGIMXI\XIRHIHSYV TSSPɸSJZEPYEFPIXEPIRX[LMGLWYTTSVXIHSYVTYWLJSVKVS[XL Close scrutiny will reveal that our platform is easily adaptable that our platform is easily Close scrutiny will reveal XSɸPSGEPGMVGYQWXERGIWTVIJIVIRGIWKEQFPMRKERHFIXXMRK XVEHMXMSRWERHXSVIKYPEXMSR8LMWMWSJGSYVWIFEWIHSRSYV aspects of gambling and gaming. familiarity with all local know very gambling well the inclinations of the many-faceted We ERHFIXXMRKGSQQYRMXMIWMRSYVHMJJIVIRXQEVOIXWERH[ILEZI of the legitimate an in-depth knowledge and understanding VIUYMVIQIRXWSJXLIREXMSREPERHPSGEPEYXLSVMXMIWERHVIKYPEXS Hard work from our teams and dedication to our business achieving for necessary factors and significant both are model this feat. However, though essential as foundations, it is only when they are viewed with all Kindred’s other business accomplishments. our appreciate truly can you that attributes Chairman’s statement Chairman’s almostFor 25 years Kindred and brands its have been delivering a proven and successfulhugely platform for gambling and gaming. And we continue to do so.

kindredgroup.com 04 Strategic report Governance Financial statements Other information Kindred Group plc Annual Report and Accounts 2020 05

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CEO

Henrik Tjärnström Henrik Our teams around the “ Chief Executive Ofﬁcer’s review Ofﬁcer’s Executive Chief Taking the opportunities offered structural by accelerated changes in Kindred’s markets, while building a winning strategy for the future. and in driving efficiency. challenges of the pandemic both in dealing with the well in the new environment, world haveworked incredibly

ICC T20 World Cup T20 World ICC League of Legends World Championships 2021 (Esports) November Finals Finals/WTA ATP UK Championship snooker '7+31ENSV'LEQTMSRWLMT*EPP (Esports) December DartsPDC World Championship May Open French Champions League Final NBA Playoffs World Ice Hockey 'LEQTMSRWLMTɸ PGA Championship d’Italia Giro Eurovision June 2021 U-21 Euro 2020 Euro Copa America 2020 Wimbledon 973TIRKSPJ July 2020 Olympics Tokyo The Open golf Tour de France August League season startPremier 973TIRXIRRMW September Champions League season start NFL season start October January NHL season start Handball World Men’s 2021 Championship Masters snooker February Open Australian 7YTIV&S[P 7M\2EXMSRW March F1 season start April MLB season start Masters golf ;SVPH7RSSOIV'LEQTMSRWLMT Major sportsMajor leagues have returned faster expected than Exciting sports sports Exciting ahead calendar We are currently seeing strong pent-up seeing strong currently are We demand for sports and entertainment our customers. from daily sportsbook turnover Average LEWɸMRGVIEWIHVETMHP]WMRGIQMH1E]ɸ ERHɸ[EWEVIGSVHLMKLHYVMRK m

areas. We will continue building Kindred Kindred will continue building We areas. MRXSEWGEPEFPIERHIƾGMIRXSVKERMWEXMSR thrilling and engagingThrough throughout. I\TIVMIRGIWFYMPXEVSYRHSYVTVSHYGXW [IɸGERHMJJIVIRXMEXISYVWIPZIW-RXLMW[E] sustainable deliver we can continue to shareholders. for our growth 274.2 EBITDA Henrik Tjärnström Henrik CEO 1EPXE1EVGL GBP Our journey towards zero Our journey towards I announced that we had set Last year revenue zero reach up an ambition to JVSQLEVQJYPKEQFPMRKF];IEVI RS[XLIƼVWXKEQFPMRKSTIVEXSVXSVITSVX from that is derived of revenue the share LMKLVMWOGYWXSQIVW8LIWIƼKYVIW[MPP FIYTHEXIHUYEVXIVP]ERHTYFPMWLIHSR website together Group’s the Kindred [MXLEɸQIEWYVIQIRXSJXLIIJJIGXMZIRIWW SJXLIɸWYWXEMREFMPMX][SVO8LIEMQMWXS the understanding of our long- increase XIVQWYWXEMREFMPMX][SVOERHGSRXVMFYXIXSɸE gambling experience. safer %XXLMWTSMRX-[SYPHIWTIGMEPP]PMOIXSTE] my good friend and colleaguetribute to %RHIVW7XVʯQ[LSERRSYRGIHMR(IGIQFIV the Board to that he will not seek re-election in 2021. Anders founded the original Unibet business in 1997 and has been both the ƼKYVILIEHERHXLITEWWMSREXILIEVXSJ vision of “By since. His this business ever TPE]IVWJSVTPE]IVWƉPMZIWSRXLVSYKLSYX the provide in our commitment to Kindred FIWXI\TIVMIRGIXSSYVGYWXSQIVWFSXLJSV in our portfolio.Unibet and the other brands %RHSJGSYVWI-[ERXXSXLEROEPPXLI efforts their incredible people for Kindred in multiple over spread 2020. Our people are PSGEXMSRWERHMXLEWFIIRZIV]HMƾGYPXXS QIIXMRTIVWSRJSVQSWXSJXLI]IEV]IX IZIV]SRIWLS[IHERHGSRXMRYIWXSWLS[ fantastic teamwork in managing our the pandemic. to response almost to And now we can look forward sports of exciting two years events!

1,130.2 winnings revenue Gross GBP Review of the strategic direction of the strategic Review (YVMRKXLIWIGSRHLEPJSJ[I of the performed our annual review +VSYTƅWɸWXVEXIK];I[MPPGSRXMRYIXS JSGYWɸSRPSGEPP]VIKYPEXIHQEVOIXW[MXL XLI97%)YVSTIERH%YWXVEPMEEWOI] 3YVWXVEXIK]JSVXLI97QEVOIXVIQEMRW XSɸJSGYWSRWTIGMƼGWXEXIW[LIVI[I that the combination of market believe will allow offer dynamics and Kindred’s YWXSFIWYGGIWWJYP*SV[ITPER of launch in Illinois under the terms to with Penn agreement access our market National Gaming and in Iowa in partnership of with Caesars Entertainment.The rate SVKERMGVIZIRYIKVS[XLMRXLI97%XLEX [IɸLEZIHIPMZIVIHJVSQEWXERHMRKWXEVXMW (much faster in one year rapid extremely XLER[IEGLMIZIHMRXLIƼVWXXLVII]IEVW SJXEVKIXMRKXLI9/QEVOIXJSVI\EQTPI -EQZIV]GSRƼHIRXXLEX[IEVIɸFYMPHMRK E[MRRMRKXIEQMRXLI97%XLVSYKLE expertisecombination of European and PSGEPXEPIRX-GSRWMHIVXLI97%XSFIXLI opportunitymost exciting has Kindred LEHɸMRQ]XIR]IEVWEW')3ERHFIPMIZI XLEXɸSYVWXVEXIK]XSJSGYWSRWIPIGXIH long-term success. to states will be key Kindred launched in New Jersey and in New Jersey launched Kindred 4IRRW]PZERMEMRPEXIWS [EWɸXLIɸƼVWXJYPP]IEVSJSTIVEXMSRW EPFIMXɸHMWVYTXIHF]XLIMQTEGXSJ'3:-( -R4IRRW]PZERME[ILEZIKVS[RVETMHP] ERHWIGYVIHTIVGIRXQEVOIXWLEVIMR EɸJEWXKVS[MRKSRPMRIQEVOIX;II\TIGXIH be in New Jersey to our development slower because this was a long-established QEVOIX[MXLQSVIGSQTIXMXMSRFYX[ILEZI QEHIWXIEH]TVSKVIWW-RPEXI[I 2021 launched in Indiana and in February we announced a partnership secure to California and Arizona. access to market -RIEGLWXEXISYVɸJSGYWMWSRFYMPHMRKE PS]EPERHWXEFPIGYWXSQIVFEWIMRXLIƼVWX MRWXERGIEWMXMWXLVSYKLEGUYMVMRKWGEPI XLEXXLISTTSVXYRMX]GSQIWXSKVS[TVSƼXW MRXLIɸQIHMYQXIVQ Strong development in the US market development Strong in some territories in While regulation )YVSTILEWFIIRGLEPPIRKMRKXLIWXEXI F]WXEXISTIRMRKSJXLI97QEVOIXMW EɸVIQMRHIVXLEXVIKYPEXMSRMWEPWSXLI biggest opportunity in this sector. Chief Executive Ofﬁcer’s review continued review Ofﬁcer’s Executive Chief

kindredgroup.com 06

Strategic report Governance Financial statements Other information Kindred Group plc Annual Report and Accounts 2020 07

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kindredgroup.com 08 Strategic report Governance Financial statements Other information Kindred Group plc Annual Report and Accounts 2020 09 Dividend Share purchases Retained earnings Distribution to to Distribution owners Kindred’s -RXLI&SEVHSJ has revised Directors XLIɸ+VSYTƅWHMZMHIRHERH policy. purchase share 8LIRI[TSPMG]MWɸXSɸKIRIVEXI EɸWXEFPISVHMREV]HMZMHIRHMR EFWSPYXIɸ+&4HIRSQMREXIH XIVQWERHSZIVXMQI complement dividends [MXLɸWLEVITYVGLEWIW8LI of dividends pay-out total will purchases and share FIɸFEWIHSRERɸEWWIWWQIRX account Kindred’s taking into ƼRERGMEPTSWMXMSRGETMXEP WXVYGXYVIERHɸJYXYVI MRZIWXQIRXRIIHWMRGPYHMRK EGUYMWMXMSRSTTSVXYRMXMIW 8LIɸXSXEPTE]SYXVEXMS SJɸHMZMHIRHWERHɸWLEVI time should over purchases IUYEPEFSYXTIVGIRX SJɸJVIIGEWLƽS[ dividendThe proposed JSVɸEQSYRXWXS +&4ɸ +&4RMP TIVɸWLEVI7(6 P tly comparable measures reported measures tly comparable Free cash ﬂow1 cash Free Free cash ﬂow1 cash Free the surplusRepresents GEWLɸKIRIVEXIHF]XLI FYWMRIWWJSVXLIƼRERGMEP ]IEVEJXIVEPPGEWLSYXƽS[W VIUYMVIHJSVSTIVEXMSRWERH maintaining capital assets. This surplus is available FSXLɸXSƼRERGIGSRXMRYIH MRZIWXQIRXERHGEREPWS of the the proposal subject to the by and approval Board WLEVILSPHIVWFIHMWXVMFYXIH owners. Kindred’s to *VIIGEWLƽS[MW HIƼRIHɸEWɸGEWLƽS[ JVSQɸSTIVEXMSRWɸI\GPYHMRK QSZIQIRXWMRɸGYWXSQIV FEPERGIWPIWWGEWLɸƽS[ JVSQɸMRZIWXQIRXEGXMZMXMIW MRGPYHMRKEGUYMWMXMSRW ERH for lease liabilities. payments that is available to distributeto shareholders 1 GERFIYWIHXSGSRXMRYIXSMRZIWXMRɸHIPMZIVMRKJYXYVIKVS[XL Tax Tax payments Lease payments Costs Capital expenditure Movements capital in working HMZMHIRHVITVIWIRXWXLIMRGVIEWIMRXLI+VSYTƅWɸVIWIVZIWXLEX 6IXEMRIHIEVRMRKWEJXIVETTVSZEPERHHMWXVMFYXMSRSJɸXLIɸERRYE Costs and other other and Costs adjustments Costs include all of Kindred’s costs of sales and operating I\TIRWIWWYGLEWFIXXMRK HYXMIWQEVOIXMRKERH expenses. administrative Other adjustments include paid in our taxes corporate as well territories various EWɸGETMXEPMRZIWXQIRXWMR RI[ɸXIGLRSPSK]ERHPIEWI TE]QIRXWJSVSYVSƾGIW TIV Bingo and Bingo games other Poker Casino & games Sports betting Sports MRɸEGGSVHERGIXSXLI-*67 cent in 2020 (meaning thatcent in 2020 (meaning ratio pay-back the average XSɸSYVGYWXSQIVW[EW ɸTIVGIRX Gross winnings revenue winnings Gross all of across is generated /MRHVIHƅWFVERHWTVSHYGXW all Across and markets. TVSHYGXW/MRHVIHƅWɸQEVKMR [EWETTVS\MQEXIP] as a cash dividend and/or to use for share purchases. 1 the most direc to performance alternative measures of the Group’s note 29 on pages 88 and 89 for the reconciliation to Refer Revenue model Revenue The model shows how Gross winnings revenue, capital adjusted for costs, investments,movements in working tax capital, and lease flows payments, to free through cash flow DATA-DRIVEN APPROACH

Customer-centred

Kindred’s purpose is to offer players entertainment on a platform that is safe and secure. Our success is built on long-term sustainable relationships with our players. Our aim is for customers to have more fun for a longer time – it’s a mutually beneficial approach.

The importance of customer experience at Kindred The online gaming sector offers plenty of choice to consumers – we EMQɸXSɸIRWYVIGSRWYQIVWGLSSWIE/MRHVIHFVERHSZIVXLIGSQTIXMXMSR through our focus on what matters to our customers the most.

/MRHVIHƅWVSFYWXGYWXSQIVJIIHFEGOMRJVEWXVYGXYVIEPPS[WSYVTPE]IVW XSɸXIPPɸYW[LEXƈQSZIWXLIRIIHPIƉJSVXLIQ[LEXXLI]PMOIEFSYXXLIMV I\TIVMIRGIERH[LEXGSYPHFIMQTVSZIH;IWYVZI]ETTVS\MQEXIP] ɸTPE]IVWTIV]IEVEGVSWWHMJJIVIRXEWTIGXWSJXLIMVKEQMRK experience. This information allows us to constantly ensure we are SJJIVMRKɸI\TIVMIRGIWXLEXQIIXSYVGYWXSQIVWƅRIIHW

9PXMQEXIP][IORS[XLEXMRZIWXMRKMRGYWXSQIVI\TIVMIRGIHMVIGXP] KIRIVEXIWɸGYWXSQIVPS]EPX]ERHGSRXVMFYXIWXSWYWXEMREFPIKVS[XL Customer experience – at the heart of Kindred -R/MRHVIHYRHIV[IRXEXVERWJSVQEXMSRSVKERMWMRKXLIGSVIHIPMZIV] TVSGIWWEVSYRHWIZIRGYWXSQIVI\TIVMIRGIWƈ.SMR 0IEZIƉƈ4E]ɸ ;MXLHVE[Ɖ ƈ4PE]7TSVXWƉƈ4PE]+EQMRKƉƈ&IMR'SRXVSPƉƈ+IX,IPTƉERHƈ+IXɸ'SQQYRMGEXMSR 6I[EVHWƉ;SVOMRKEPSRKWMHIXLIWII\TIVMIRGIXIEQWɸEVIHEXEERHMRWMKLXW WXEOILSPHIVWJIIHMRKXLIZSMGISJXLIGYWXSQIVMRXSXLILIEVXSJXLIHIGMWMSR QEOMRKJYRRIP

Through our customer surveys and predictive analytic models, we understand XLIOI]HVMZIVWSJXLIGYWXSQIVI\TIVMIRGIXLEXEVITIVJSVQMRKɸ[IPPERHXLSWI [IRIIHXSMQTVSZIMRSVHIVXSQIIXSYVɸGYWXSQIVWƅI\TIGXEXMSRW kindredgroup.com

READ MORE ONLINE https://www.kindredgroup.com/news--insights/2020/ kindred-cx-how-the-play-gaming-experience-delivers- on-speed-trust--relevancy/ Kindred CX: How the “Play Gaming” experience delivers on Speed, 8VYWXɸ ɸ6IPIZERG] Jonas Harglin, Experience Owner Play Gaming 10 Strategic report Governance

How much are Overcoming the challenges of 2020 Financial statements customer experience /IITMRKSYVƼRKIVSRXLITYPWISJXLI Throughout the year our customers improvements worth? GYWXSQIVWƅI\TIGXEXMSRWLEWRIZIVFIIR [IVIɸXVIEXIHXSGSRWMWXIRXMQTVSZIQIRXW QSVIMQTSVXERXXLERMR;MXLXLI XSSYVFIWXMRGPEWWKEQMRKTVSHYGX 1SWXGSQTERMIWXVEGOGYWXSQIV GYWXSQIVXVYP]EXXLILIEVXSJSYVFYWMRIWW Improved site speeds, the addition of QIXVMGWɸWYGLEWWEXMWJEGXMSRWGSVIW QSHIPIEGLI\TIVMIRGIXIEQ[EWEFPI cutting-edge payment providers across FYXɸLS[QER]GERERW[IVXLIUYIWXMSR XSYRHIVWXERHERHXVEGOWLMJXMRKTPE]IV SYVɸQEVOIXWERHEQSVIXEMPSVIHETTVSEGL which customer improvements will expectations and adapt our product XSGSQQYRMGEXMSRGSRXVMFYXIHXSEɸKVS[XL Other information TVSZMHIɸXLIQSWXVIXYVRSRMRZIWXQIRX# HYVMRKɸXLITERHIQMGXSIRWYVIGYWXSQIV in customer satisfaction during the year. trust and satisfaction never wavered. ;IEVISTXMQMWXMGXLEX[I[MPPWIIXLMW At Kindred, we have a three-tiered approach XVIRHɸGSRXMRYI[IPPFI]SRHXLEROW XSEREP]WMRKSYVGYWXSQIVWYVZI]JIIHFEGO ;ILEZIRSXSRP]FIIREFPIXSQEMRXEMR XSɸSYVI\TIVMIRGIHIPMZIV]QSHIP high customer trust during the pandemic, ;IXVEGOWEXMWJEGXMSRWGSVIWJSV FYXSYVWYVZI]HEXEWLS[WYWXLEX RIEVP]ɸEWTIGXWSJSYVTPE]IVWƅ GYWXSQIVXVYWXLEWRIZIVFIIRLMKLIV experience with us. EGVSWWSYVFVERHW

;ILEZIHIZIPSTIHEREPKSVMXLQXLEX 87 per cent of our players agreed we XIPPWYW[LMGLSJXLIWIEWTIGXWEVI offered them a trustworthy gaming most important to customer loyalty. experience in the fourth quarter and 86.4 points Areas which are highly important MR[IQEREKIHEREPPXMQILMKL The satisfaction of Kindred customers to retaining players and have low percentage of players telling us that MRXLIMVEGGSYRXZIVMƼGEXMSRNSYVRI] satisfaction scores are prioritised. XLI]ɸXVYWXXLEX/MRHVIHFVERHW[MPPOIIT MRɸ5ɸɸ8LMWLEWMQTVSZIHF] XLIQMRɸGSRXVSPSJXLIMVKEQFPMRK ɸTSMRXWWMRGI5 ;ILEZIFYMPXSYVE[EVH[MRRMRK customer experience revenue WMQYPEXSVɸXSSPMRLSYWI[LMGLEPPS[W us to project impacts on revenue from customer experience improvements – EɸTS[IVJYPXSSPJSVTVSNIGXTVMSVMXMWEXMSR Overall customer satisfaction 86 /MRHVIHƅWYRMUYIEFMPMX]XSHIXIGX GYWXSQIVɸTEMRTSMRXWERHHVMZIXLI 84 MQTVSZIQIRXWXLEX[IORS[QEXXIV 82 QSWXɸXSSYVɸTPE]IVW[LMPIIRWYVMRK 80 maximum return on investment, 78 WIXWɸYWɸETEVX[MXLMRXLIMRHYWXV] 76

74 2020 Accounts and Report Annual plc Group Kindred 72 70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020

Customer trust in our brands

65 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 Trustworthy gaming experience Trust we keep customers in control 11 DATA-DRIVEN APPROACH

Insights-led

We explore tomorrow’s ideas and test how they can be applied to real-life products. We constantly seek to innovate and find new ways forward as only then can we develop what is not already here.

“Be in Control” 8LIWGSTISJXLIƈ&IMR'SRXVSPƉI\TIVMIRGIMWZEWX-XMWƼVWXERHJSVIQSWX EFSYXOIITMRKSYVGYWXSQIVWƅKEQFPMRKEGXMZMX]YRHIVGSRXVSPWSXLEXMX EP[E]WVIQEMRWIRNS]EFPI-XMWEFSYXEPPS[MRKSYVGYWXSQIVWXSZIVMJ] XLIQWIPZIWWSXLEXXLIMVI\TIVMIRGIWXE]WYRMRLMFMXIH-XMWEPWSEFSYX TYXXMRKɸSYVGYWXSQIVWMRGSRXVSPSJXLIMVTIVWSREPHEXEWSXLEXXLI]GER FIɸGSRƼHIRXSJXLIMVTVMZEG]-XMWEFSYXTVSZMHMRKXLIQ[MXLIEW]ZMWMFMPMX] SJXLIMVEGXMZMX]WSXLEXXLI]EVIEFPIXSXVEGOERHPIEVRJVSQXLIMVS[R HEXEɸ0EWXFYXRSXPIEWXƈ&IMR'SRXVSPƉMWEFSYXIREFPMRKGYWXSQIVWXS FIMRɸGLEVKISJ[LEXXLI][ERXXSWIIERHVIGIMZIWSXLI]SRP]VIGIMZI information that is relevant to them.

0IZIVEKMRKSRSYV%-QEGLMRIPIEVRMRKGETEFMPMXMIW[ILEZIFYMPXXLI next generation of our Player Safety – Early Detection System, PS-EDS -XLEWMXWJSYRHEXMSRWMREGEHIQMGVIWIEVGLERHHMEKRSWMWGVMXIVME JSVɸKEQFPMRKHMWSVHIVW kindredgroup.com

READ MORE ONLINE https://www.kindredgroup.com/news--insights/2020/ kindred-cx-how-the-be-in-control-experience-is-turning- compliance-into-a-competitive-edge/ Kindred CX: How the “Be in Control” experience is turning compliance MRXSɸEɸGSQTIXMXMZIIHKI Snehal Richter, Experience Owner Be in Control 12 Strategic report Governance Financial statements

Being transparent and “Pay & Withdraw” experience delivers engendering trust on relevancy, speed and trust 8LIƈ4PE]+EQMRKƉI\TIVMIRGIIQFVEGIW 4E]QIRXWLEZILMWXSVMGEPP]FIIREREVIE [IɸEVIMQTVSZMRKXLIUYEPMX]SJXLI Other information a customer “outside-in” approach to in which Kindred excels, with customer I\TIVMIRGI;MXLXLIXVERWJSVQEXMSRLEZMRK LS[XLIFYWMRIWWSTIVEXIWSVKERMWIW WEXMWJEGXMSRWGSVIW MI'7%8 FIMRK launched last year, the new model has designs and delivers change that directly QIEWYVIHW]WXIQEXMGEPP]WMRGI already delivered some promising results. relates to customers playing our games. &YXOIITMRKYT[MXLXLIGSQTIXMXMSRXLI 8LIWIMRGPYHIGEWMRSPMZIGEWMRSFMRKS JEWXQSZMRKEVIESJƼRERGMEPXIGLRSPSK] 8LIFIPS[I\EQTPIVIPEXIWXSXLIVIGIRX ERHTSOIVTVSHYGXW8LIƈ4PE]+EQMRKƉ and increasing customer expectations, launch of Swish withdrawals in Sweden. I\TIVMIRGIMWXSFIJEWXERHWXEFPI MWɸEɸGSRXMRYSYWGLEPPIRKI -XWLS[WLS[XLIWTIGMƼG'7%8WGSVIXLEX tailored to individual needs, and must measures the customer’s perception of the FIɸVIGSKRMWIHEWXVYWX[SVXL]F]TPE]IVW 7MRGITE]QIRXWLEZIFIIR speed of withdrawals improved in the third Our competitors offer many of the same governed as one of Kindred’s seven quarter when the Swish pay-out solution games we offer, so to stand out we QEMRɸI\TIVMIRGIW8LMWRI[ERH was launched. QYWX[VETXLIFIWXTSWWMFPIKEQMRK MRRSZEXMZIɸSVKERMWEXMSREPWIXYTEPPS[W experience around these games. It must YWXSIQFIHMRXLII\TIVMIRGIWIZIVEP FIIEW]JSVGYWXSQIVWXSƼRHXLIKEQIW functional and support areas such as and tournaments they are interested in, customer analytics, user experience [MXLɸVETMHPSEHMRKXMQIWERHWIEQPIWW VIWIEVGL[IFEREP]XMGWERHHEXEXLEXEPP access to any features they need in-play, GSRXVMFYXIXSEFIXXIVYRHIVWXERHMRKSJ EPPɸ[LMPIHIQSRWXVEXMRKXLEXIZIV]SRI SYVGYWXSQIVW,EZMRKEVSFYWXGYWXSQIV LEWɸEɸJEMVGLERGISJ[MRRMRK I\TIVMIRGIQIEWYVIQIRXJVEQI[SVOMR 87 points TPEGIJSVXLIƈ4E] ;MXLHVE[ƉI\TIVMIRGI Overall withdrawal satisfaction For our customers, a trustworthy MWEPWSOI]XSYRHIVWXERHMRK[LIXLIV JSVɸ7[IHMWLGYWXSQIVW ƈ4PE]ɸ+EQMRKƉI\TIVMIRGIMWEFSYXFIMRK guaranteed a fair chance of winning, ORS[MRKXLIGLERGIWSJ[MRRMRKMRE GIVXEMRKEQISVORS[MRK[LEXXSHSXS Speed of withdrawals (Bingo.com, Highroller, Maria Casino & Unibet) [MXLHVE[FSRYW[MRRMRKW&YXMXQMKLXEPWS mean easily seeing one’s gaming statistics, To what extent would you agree or disagree with the following statements seeing when, on what, and how much other EFSYXɸ]SYVɸTE]QIRXI\TIVMIRGI# GYWXSQIVWEVI[MRRMRKSVORS[MRK[LEXXS Driver score My withdrawals appear quickly in my bank account. do to participate in and win a tournament. % strongly Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred agree/agree Clearly showing to our casino players XLIɸTIVGIRXEKIVIXYVRXSTPE]IVƼKYVIERH the volatility of our games (i.e. the amount Q1 2020 SJVMWOMRLIVIRXMREWTIGMƼGKEQI MWE 78% ZEPYIH[E]SJFIMRKQSVIXVERWTEVIRX 39% 39% 13% 6% 3% Ensuring customers are presented with transparent and accurate information Q2 2020 relating to any gaming reward wagering 82% requirements also goes a long way 45% 37% 9% 5% 4% XS[EVHWɸFYMPHMRKXVYWX Q3 2020 Our customers’ trust is vital to retaining 90% XLIMVPS]EPX]EGVSWWEPPSYVFVERHWERH 55% 35% 6% 2%2% MREPPɸQEVOIXW8LMWHIƼRMXIP]ETTPMIW to the “Play Gaming” experience. Q4 2020 'YWXSQIVWRIIHɸXSORS[XLEXXLIMV 86% JYRHWɸERHHEXEEVIWEJI[MXLYWXLEXSYV 50% 36% 6% 4%4% TVSHYGXWEVIVIPMEFPIERHXLEX[IPMZIYT XSɸSVIZIRI\GIIHVIKYPEXSV]WXERHEVHW Strongly agree Agree Neutral Disagree Strongly disagree 13 DATA-DRIVEN APPROACH

Growing market

Kindred is well placed to capture a meaningful share of the huge potential of the US market. Last year, Kindred entered the US market and has already established a strong foothold there, a market which has the potential to become the largest locally regulated market in the world.

Unibet in the USA -XLEWFIIRQSRXLWWMRGIXLI977YTVIQI'SYVXƅW4VSJIWWMSREP ERHɸ%QEXIYV7TSVXW4VSXIGXMSR%GX 4%74% VITIEPERHXLIWTSVXW FIXXMRKɸPERHWGETILEWGLERKIHHVEWXMGEPP][MXLGYWXSQIVWMRQSVI XLERɸɸWXEXIWFIMRKEFPIXSTPEGIPIKEPWTSVXWFIXWMRXLI97%

-XUYMGOP]VIWYPXIHMRQSVIXLERSTIVEXSVWWLMJXMRKXLIMVJSGYWXS[EVHW XLI97%ƁJVSQƈFVMGOWERHQSVXEVƉGEWMRSWHEMP]JERXEW]STIVEXSVWERH online operators from Europe to Australia, the competitive landscape UYMGOP]MRXIRWMƼIH

7LSVXP]EJXIVXLI4%74%VITIEP/MRHVIHQEHIMXWƼVWXQSZIWMRXLI97% WMKRMRKEQEVOIXEGGIWWEKVIIQIRX[MXL,EVH6SGOMR2I[.IVWI]ERH IWXEFPMWLMRKMXW97,5MR2I[=SVO

8LI9RMFIXFVERHGLSMGI[EWSFZMSYWEPMKRIH[MXL/MRHVIHƅWEQFMXMSRXS FYMPHSRISJXLIWXVSRKIWXKPSFEPKEQMRKFVERHW&]XLIƼVWXERRMZIVWEV] SJɸXLI4%74%VITIEP9RMFIXLEHEGGITXIHMXWƼVWX97GYWXSQIVW

0SSOMRKXSFYMPHSRMXWTPYW]IEVWSJ)YVSTIERI\TIVMIRGIERH WYGGIWWɸXLIɸ97XIEQ[EWFYMPXSRXLIFEGOFSRISJ)YVSTIERWIRMSV PIEHIVWɸGSQFMRIHɸ[MXL97I\TIVXMWI

&]XLIIRHSJ9RMFIX[EWSTIVEXMRKSRPMRIERHVIXEMPWTSVXW FIXXMRKɸERHKEQMRKMRXLVIIWXEXIWƁ2I[.IVWI]4IRRW]PZERMEERH -RHMEREɸƁERHLEWɸGSRHMXMSREPEGGIWWXSRMRISXLIVWXEXIW[LMGL MRɸXSXEPɸEVIɸLSQIɸXSɸSRIɸXLMVHSJXLI97TSTYPEXMSR

kindredgroup.com GBP 55,125 23.8m EGXMZIGYWXSQIVWMR Gross winnings revenue

READ MORE ONLINE kindredgroup.com/about/our-brands 14 Strategic report Partnerships The USA represents a major growth opportunity and innovation and we are still at the beginning of our journey. 4EVXRIVMRK[MXLPIEHMRKPSGEPWTSVXWFVERHW LEWEP[E]WFIIREOI]TEVXSJ9RMFIXƅW December 2017 QEVOIXMRKWXVEXIK]MREPPQEVOIXWQSVIWS Supreme Court PASPA hearing. MRXLI97%[LIVIXLI9RMFIXFVERHWXEVXIH Kindred’s decision to enter the USA following with no awareness. Partnering with New XLIɸ7YTVIQIɸ'SYVXTSWMXMZISYXPSSO Governance .IVWI]ERH4IRRW]PZERMEWTSVXFVERHW [EWɸOI]XSFYMPHMRKGYWXSQIVXVYWX April 2018 -RGSVTSVEXMSRSJ9RMFIX-RXIVEGXMZI-RGMR(IPE[EVI -R9RMFIXERRSYRGIHTEVXRIVWLMTW with three top professional teams in the May 2018 97%2I[.IVWI](IZMPW 2,0 4LMPEHIPTLME Supreme Court repeals PASPA, paving the )EKPIW 2*0 ERH4LMPEHIPTLME9RMSR 107 [E]ɸJSVɸWXEXIWXSVIKYPEXIWTSVXWFIXXMRK June 2018 Financial statements Beyond the standard sponsorship assets 9RMFIXIWXEFPMWLIW,5MR1ERLEXXER2I[=SVO&]XLI 9RMFIXEP[E]WWIIOWXSMRRSZEXIERH IRHSJ9RMFIXLEWJSYVWXEJJFEWIHMRXLI97% MRERRSYRGIHXLIƼVWXIZIV97 professional-sports-themed casino games September 2018 in partnership with the Philadelphia Eagles. 9RMFIXERRSYRGIWXLIƼVWXEKVIIQIRXMRXLI97% [MXLɸ,EVHɸ6SGOɸ,SXIPɸ ɸ'EWMRS%XPERXMG'MX]XS IRXIVɸ2I[ɸ.IVWI] Other information January 2019 9RMFIXERRSYRGIWEWIGSRHQEVOIXEGGIWWEKVIIQIRX this time with Mohegan Sun to enter Pennsylvania.

May 2019 9RMFIXPEYRGLIWXLISRPMRIGEWMRSTVSHYGXMR 2I[ɸ.IVWI]ERHEGGITXWMXWƼVWX97GYWXSQIVW August 2019 9RMFIXSTIRWMXWWIGSRHSƾGIMRXLI97%MR'LIVV],MPP2I[.IVWI] [LMGLLSWXWXLIGYWXSQIVWIVZMGIERHVMWOERHJVEYHSTIVEXMSRW

September 2019 9RMFIXGSQTPIXIWXLISRPMRISJJIVMRKMR2I[.IVWI] F]ɸEHHMRKXLIWTSVXWFIXXMRKTVSHYGX 0EXIVXLIWEQIQSRXL9RMFIXPEYRGLIWMXWƼVWX VIXEMPɸWTSVXWFIXXMRKSTIVEXMSRWMRXLI97%EX 1SLIKERɸ7YR4SGSRS'EWMRSMR4IRRW]PZERME November 2019 9RMFIXPEYRGLIWMXWSRPMRIWTSVXWFIXXMRK ERHɸGEWMRSɸTVSHYGXWMR4IRRW]PZERME

December 2019 9RMFIXIRXIVWEQYPXMWXEXIEKVIIQIRX[MXL'EIWEVW Entertainment which grants access to Indiana and Iowa and potentially other states pending regulation.

By the end of 2019 9RMFIXIQTPS]WWXEJJEGVSWWMXWX[SSƾGIW March 2020 Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred 9RMFIXPEYRGLIWMXWWIGSRHVIXEMPWTSVXWFSSO MRɸXLIɸ97%ɸMR%PPIRXS[R4IRRW]PZERME July 2020 9RMFIXPEYRGLIWMR-RHMEREMXWXLMVHWXEXIMRXLI97% September 2020 9RMFIXERRSYRGIWEQYPXMWXEXIQEVOIXEGGIWW EKVIIQIRX[MXLɸ4IRR2EXMSREP+EQMRKKVERXMRK EGGIWWXSɸXLIɸVIKYPEXIHWXEXISJ-PPMRSMWERH GSRHMXMSREPEGGIWWɸXS3LMSTIRHMRKVIKYPEXMSR October 2020 9RMFIXPEYRGLIWXLIƼVWXIZIVTVSJIWWMSREPWTSVXW themed casino games in the USA.

December 2020 9RMFIX-RXIVEGXMZIIQTPS]WSZIVTISTPIMRXLI97% February 2021 9RMFIXTEVXRIVW[MXL8LI5YIGLER8VMFISJXLI*SVX =YQE-RHMER6IWIVZEXMSRXSKEMREGGIWWXSX[SOI] states – Arizona and California. 15 Key performance indicators The Group assesses the performance of the business on a regular basis, to measure results and help deliver on its strategy and objectives.

Financial

GBP 1,130.2m GBP 274.2m GBP 0.728 Gross winnings revenue EBITDA¹ Earnings per share¹

2020 1,130.2 2020 274.2 2020 0.728

2019 912.8 2019 128.1 2019 0.250

2018 907.6 2018 202.8 2018 0.580

2017 751.4 2017 180.3 2017 0.516

(IƼRMXMSR (IƼRMXMSR (IƼRMXMSR +VSWW[MRRMRKWVIZIRYI +;6 SRWTSVXW 4VSƼXJVSQSTIVEXMSRWFIJSVIHITVIGMEXMSR 4VSƼXEJXIVXE\HMZMHIHF]XLI[IMKLXIH FIXXMRKMWHIƼRIHEWXLIRIXKEMRSVPSWW amortisation and impairment losses. EZIVEKIRYQFIVSJSVHMREV]WLEVIWJSV JVSQFIXWTPEGIH*SVGEWMRS KEQIW+;6 the year. Performance MWHIƼRIHEWXLIRIXKEMRJVSQFIXWTPEGIH 7XVSRK+;6KVS[XLGSQFMRIH[MXLGSRXMRYIH Performance ERHJSVTSOIV+;6VIƽIGXWXLIRIXMRGSQI focus on cost control across all areas of the The positive impact on EBITDA has VEOI IEVRIHJVSQTSOIVKEQIWGSQTPIXIH MRGSQIWXEXIQIRXLEWVIWYPXIHMRRSXEFPI ƽS[IHɸHS[RXLIMRGSQIWXEXIQIRX +;6EGVSWWEPPTVSHYGXWMWVITSVXIHRIXSJ )&-8(%KVS[XLSJTIVGIRXJVSQXLI [MXLɸIEVRMRKWTIVWLEVIMRGVIEWMRKF] XLIGSWXSJTVSQSXMSREPFSRYWIW prior year. The Group has dedicated itself to ɸTIVɸGIRXJVSQXLITVMSV]IEVERH Performance FYMPHMRKEWGEPEFPIFYWMRIWWQSHIP[LMGL continuing to add shareholder value. -QTVIWWMZI+;6KVS[XLSJTIVGIRXMR [MPPFIZMXEPJSVJYXYVIKVS[XLERH)&-8(% comparison to the prior year, and reaching generation and it is already reaping the SZIV+&4FMPPMSR7TSVXWFIXXMRK+;6 FIRIƼXWJVSQMXWIJJSVXWHYVMRK MRGVIEWIHF]TIVGIRXERHSXLIVTVSHYGXW +;6F]TIVGIRXEWXLI+VSYTFIRIƼXIH from its diverse product offering and active customer growth.

GBP 20.7m GBP 0.330 GBP 1.791 Capital expenditure Dividend per share Equity per share TS࣢NSYFSLNGQJ࣢FXXJYX

2020 20.7 2020 0.330 2020 1.791

2019 41.4 2019 0.0 2019 1.017

2018 23.5 2018 0.496 2018 1.269

2017 20.4 2017 0.551 2017 1.296

(IƼRMXMSR (IƼRMXMSR (IƼRMXMSR 'ETMXEPI\TIRHMXYVISRMRXERKMFPIEWWIXW %QSYRXTVSTSWIHF]XLI&SEVHSVTEMH 8SXEPEWWIXWPIWWXSXEPPMEFMPMXMIWHMZMHIH WIIɸRSXISRTEKI SYXɸJSVɸXLIVIWTIGXMZI]IEVHMZMHIHF] F]ɸXLIɸRYQFIVSJSVHMREV]WLEVIWEXXLI XLIɸRYQFIVSJSVHMREV]WLEVIWMRMWWYI FEPERGIWLIIXHEXI Performance Removing the impact of the Performance Performance GETMXEPMWEXMSRɸSJɸKEQMRKPMGIRGIGSWXW The Board of Directors has agreed on a -RIUYMX]TIVWLEVIMRGVIEWIHKMZIR MRɸ +&4ɸQMPPMSRXSIRXIVXLI RI[HMZMHIRHERHWLEVIFY]FEGOTSPMG] XLIɸWXVSRKVIWYPXWERHXLIJEGXXLEXRS 97ɸQEVOIX I\TIRHMXYVISRMRXERKMFPI WIIɸTEKIɸ -RPMRI[MXLXLMWXLI&SEVH HMZMHIRH[EWTEMHHYVMRK JSVXLI EWWIXWɸLEWHIGVIEWIHWPMKLXP]JVSQXLI has proposed a dividend of GBP 0.330 per ƼRERGMEP]IEV EWI\TPEMRIH[MXLMR TVMSVɸ]IEV8LI+VSYTGSRXMRYIWXSMRZIWX WLEVIJSVXLIƼRERGMEP]IEV8LMWMWXS XLIɸHMZMHIRHTIVWLEVIWIGXMSR

kindredgroup.com heavily in the development of the Group’s FIɸETTVSZIHEXXLI%RRYEP+IRIVEP TPEXJSVQMRSVHIVXSHIPMZIVXLIFIWX 1IIXMRK %+1 ɸERHMWI\TIGXIHXSIUYEP technology to our customers, however EXSXEPHMZMHIRHɸSJETTVS\MQEXIP]+&4 XLIɸHIGVIEWIMWEVIWYPXSJXLITPERRIH QMPPMSR reduction in employee headcount and *SVXLIƼRERGMEP]IEVXLI&SEVHSJ GSRWYPXERXWHYVMRKEW[IPPEWWPMKLXP] Directors withdrew its previous dividend PS[IVPIZIPWSJɸGETMXEPMWEXMSRXLERI\TIGXIH recommendation following the uncertainty GEYWIHF]'3:-(EXXLIFIKMRRMRKSJ

16 Strategic report

Non-ﬁnancial Governance

6% GBP 1.162 1,781,617 Other operating expenses, +WJJHFXMܫT\࣢UJWXMFWJ2,3 Active customers in the XMFWJ࣢TK࣢,<71,2 QFXY࣢VZFWYJW࣢TK࣢YMJ^JFW

2020 6 2020 1.162 2020 1,781,617 Financial statements 2019 8 2019 0.211 2019 1,603,903

2018 8 2018 0.682 2018 1,568,574

2017 9 2017 0.722 2017 1,329,124

(IƼRMXMSR (IƼRMXMSR (IƼRMXMSR

Other operating expenses as a percentage Net cash generated from operating activities, An active customer is a customer who has Other information SJ+;63XLIVSTIVEXMRKI\TIRWIWTVMQEVMP] I\GPYHMRKQSZIQIRXWMRGYWXSQIVFEPERGIW TPEGIHEXPIEWXSRIFIXHYVMRKɸXLIPEWXUYEVXIV comprise consultancy, facilities and PIWWGEWLƽS[WJVSQMRZIWXQIRXEGXMZMXMIW Performance travel costs. MRGPYHMRKEGUYMWMXMSRW ERHPIEWITE]QIRXW %PPXMQILMKLEGXMZIGYWXSQIVRYQFIVW HMZMHIHF]XLIRYQFIVSJɸSVHMREV]WLEVIW Performance EGLMIZIHMRXLIJSYVXLUYEVXIVSJ EXɸXLIFEPERGIWLIIXɸHEXI The Group’s drive for cost control has proven [MXLɸKVS[XLSJɸTIVɸGIRXJVSQXLIJSYVXL MXWIPJEWYGGIWWMR3TXMQMWEXMSRSJ Performance UYEVXIVSJ(IWTMXIEHMTMREGXMZI consultancy expenditure across the Group 8LIWMKRMƼGERXMRGVIEWIJVSQXLITVMSV]IEVMW customers during the year, as a result EWɸ[IPPEWWSQIREXYVEPXIQTSVEV]HIGVIEWIW primarily the impact of the increase in EBITDA SJXLIɸMQTEGXSJ'3:-(SRWTSVXMRK MRFSXLJEGMPMXMIWERHXVEZIPGSWXWEWEVIWYPX MRXLI]IEV[LMGLLEWFSSWXIHXLI+VSYTƅW IZIRXWXLI+VSYTFIRIƼXIHXLIVIEJXIV SJ'3:-(VIWXVMGXMSRWLEZIVIWYPXIHMR STIVEXMRKGEWLƽS[W JVSQɸSTXMQMWEXMSRSJMXWQEVOIXMRKWXVEXIK] a reduction in other operating expenses. ERHI\TIRHMXYVIERH[EWWYTTSVXIHF] 8SKIXLIV[MXLXLIWMKRMƼGERXKVS[XLMR+;6 XLIɸEGGIPIVEXMSRSJXLIXVERWMXMSRJVSQ XLMWLEWVIWYPXIHMREHVSTSJTIVGIRXEKI SƿMRIɸXSSRPMRIEWEVIWYPXSJɸXLITERHIQMG points from the prior year.

18% 82% Operating margin1 Percentage of Kindred employees who XF^Ѧ0NSIWJINXF,WJFY5QFHJYT

2020 18 2020 82

2019 8 2019 88

2018 17 2018 87

2017 18 2017 82 Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred (IƼRMXMSR (IƼRMXMSR 4VSƼXJVSQSTIVEXMSRWEWETIVGIRXEKI The result of this survey represents the SJ+;6 HIKVIIXS[LMGLIQTPS]IIWFIPMIZIXLEXXLI Kindred Group has a good employee culture. Performance Following temporary pressures in the Performance TVMSV]IEVSRFSXL+;6ERHGSWXWXLI /MRHVIHLEWGSRXMRYIHXSJSGYWSRFYMPHMRK operating margin has now returned to a EɸFIWXMRGPEWWIQTPS]III\TIVMIRGIMR more normalised level. As a result of these -XLEWLS[IZIVFIIRERI\XVIQIP] pressures, the Group communicated that challenging year due to the pandemic, remote MX[SYPHXEOIEGXMSRERHJSGYWSRGSWX [SVOMRKERHXLITVIZMSYWP]GSQQYRMGEXIH IƾGMIRG]QIEWYVIW%WGERFIWIIRMR ERHƼKYVIW[IVIVITSVXIHTVMSVXSXLI personnel restructuring programme, which EHSTXMSRSJ-*67ƈ0IEWIWƉSR.ERYEV] naturally impacts employee engagement. XLIEFSZIVIWYPXWXLI+VSYTLEWEGXMSRIH ERHɸEVIXLIVIJSVIRSXHMVIGXP]GSQTEVEFPIXS XLMWHYVMRKERHFIPMIZIWMXLEWXEOIR ERHɸƼKYVIW (IWTMXIXLMWɸ[ILEZIMRGVIEWIHXLIJVIUYIRG] WYFWXERXMEPWXITWMRFYMPHMRKEWGEPEFPI 6IJIVXSRSXISRTEKIWɸERHJSVXLIVIGSRGMPMEXMSR SJSYVJIIHFEGOG]GPIMQTPIQIRXIHMRMXMEXMZIW FYWMRIWWQSHIPMRTVITEVEXMSRJSVJYXYVI of the Group’s alternative performance measures to XSIREFPIIQTPS]IIWXSOIITGSRRIGXIHERH industry changes. XLIQSWXHMVIGXP]GSQTEVEFPIQIEWYVIWVITSVXIHMR feel supported throughout this period, and accordance with IFRS. continued to invest in leadership development, 8LIGSQTEVEXMZIJVIIGEWLƽS[FEPERGIWYWIH QIRXEPLIEPXLERH[IPPFIMRK%PXLSYKLSYV MRXLIEFSZIGEPGYPEXMSRWLEZIFIIRYTHEXIHXS VIQSZIGIVXEMRMXIQWEJJIGXMRKGSQTEVEFMPMX] WGSVIHIGVIEWIHMRMXMWWXMPPZIV]TSWMXMZI which are included within net cash generated considering the challenges faced. JVSQɸSTIVEXMRKEGXMZMXMIW 17 Sustainability at Kindred Our sustainability strategy defines Kindred Group’s sustainability priorities and sets our ambitions and commitments within five priority areas: Responsible Gambling, Maintaining integrity, Running a compliant business, Being Kindred and Contributing to our communities.

Transforming gambling impact. In order to succeed, we engage Our priority areas 3YVZMWMSRMWXSQEOIKEQFPMRK [MXLEHMZIVWIVERKISJWXEOILSPHIVW ;IFIPMIZIEWYGGIWWJYPFYWMRIWWWXIQW ɸTIVɸGIRXIRNS]EFPIJSVIZIV]SRI 'SPPEFSVEXMSRWERHTEVXRIVWLMTWEVIOI] JVSQJYXYVITVSSƼRKSTIVEXMSRWXSFI -R[IVIZMWIHSYVTYVTSWIWXEXIQIRX XSɸHIPMZIVSRSYVWYWXEMREFMPMX]WXVEXIK] IGSRSQMGEPP]WSGMEPP]ERHɸIRZMVSRQIRXEPP] XSFIXXIVVIƽIGXSYVPSRKXIVQEQFMXMSRW WYWXEMREFPIMRXLIPSRKɸXIVQ*SVYWXLMW 3YVRI[TYVTSWIMWXSƈXVERWJSVQKEQFPMRK Ensuring sustainable growth QIERWQEOMRKGSRXMRYEPMQTVSZIQIRXW F]FIMRKEXVYWXIHWSYVGISJIRXIVXEMRQIRX 7YWXEMREFMPMX]MWEXXLILIEVXSJ/MRHVIHƅW ERHXEOMRKVIWTSRWMFMPMX]JSVSYVSTIVEXMSRW XLEXGSRXVMFYXIWTSWMXMZIP]XSWSGMIX]Ɖ FYWMRIWWSTIVEXMSRWERH[IWIIKVIEXZEPYI – and constantly striving for change for the MRHIPMZIVMRKWYWXEMREFPIKVS[XLERHWLEVIH FIXXIV8LMWMW[L][IWIXELMKLWXERHEVH ;IWXVMZIXSKMZITPE]IVWEWYTIVMSV value for our customers, shareholders, JSVSYVWYWXEMREFMPMX][SVOMRGPYHMRKPSRK experience while helping them feel safe employees and the communities around XIVQEQFMXMSRWERHFSPHGSQQMXQIRXW ERHWIGYVI&]MRZIWXMRKMRFILEZMSYVEP YW3YVJSGYWSRHVMZMRKEWYWXEMREFPI VIWIEVGLTVIHMGXMZIEVXMƼGMEPMRXIPPMKIRGI FYWMRIWWIRWYVIWXLEX[IOIITSYVPIKEP Five priority areas help us navigate: %- XIGLRSPSKMIWEXLVMZMRKWTSVXW and social licence to operate and maintain ecosystem and local community initiatives, our customers’ trust. Having healthy, – 6IWTSRWMFPI+EQFPMRK [IFVMRKZEPYIXSWSGMIX]GSRXVMFYXMRK long-lasting customer relationships – Maintaining integrity XSɸMQTVSZIHLIEPXL[IPPFIMRKERH ERHFIMRKETSWMXMZIGSRXVMFYXSVXSSYV TSWMXMZIɸPSRKXIVQSYXGSQIW communities gives us a clear competitive – 6YRRMRKEGSQTPMERXFYWMRIWW advantage. By improving this advantage, – Being Kindred ;IORS[XLEXHSMRKXLIVMKLXXLMRK ERHEGXMRKMREVIWTSRWMFPI[E]XSHE] ERHɸIEVRMRKXVYWXWYWXEMRWSYVFYWMRIWW /MRHVIHWEJIKYEVHWXLIEFMPMX]XSHSKSSH – 'SRXVMFYXMRKXSSYVGSQQYRMXMIW supports the industry and widens our FYWMRIWWXSQSVVS[

Sustainability highlights 2020

We are proud to become the first gambling operator to develop and launch a public KPI to openly track progress on the percentages of Gross winnings During 2020, we became revenue derived from part of the first pan-European In 2020, we launched an harmful gambling. code of conduct on responsible exciting collaboration with advertising for online gambling Zafty Intelligence using AI published by European Gaming to tackle problem gambling. and Betting Association (EGBA).

52%

reduction in CO2e emissions An internal support per employee. programme, called Kindred We are happy to share Hive, has been developed to that our CDP (formerly support all colleagues working Carbon Disclosure Project) from home and improve mental score has improved to a B. health during the pandemic. kindredgroup.com

Our bug bounty programme has Together with the European been made public Football for Development on the HackerOne Network, we launched To play our part in limiting platform to make Fair Sport 4 All, educating global warming, we have our brand football clubs across Europe on set Science Based Targets websites safer. anti-match-fixing procedures. for our emissions by 2023. 18 Strategic report Governance

Ambitions and commitments Materiality update in 2020 External accreditations 8STYWLSYVWYWXEMREFMPMX][SVOJSV[EVH (YVMRKXLIEYXYQRSJ[ILEZI FSI࣢RJRGJWXMNU /MRHVIHLEWHIƼRIHXLVIIPSRKXIVQEQFMXMSRW completed our second materiality – MSCI ESG Ratings – AAA assessment. The assessment helps – 'EVFSR*SSXTVMRX7XERHEVH Financial statements – &][I[ERXXSHIVMZI YWɸHIƼRIHIXIVQMRIERHTVMSVMXMWIXLI +VSWW[MRRMRKWɸVIZIRYIJVSQ governmental, social and environmental – Nasdaq – ESG Transparency Partner LEVQJYPKEQFPMRK XSTMGWXLEXQEXXIVQSWXXSYWERHSYVOI] –CDP – B WXEOILSPHIVKVSYTW7MQMPEVXSXLI – &][I[ERXXSEGLMIZIE EWWIWWQIRXVIWTSRWMFPIKEQFPMRKERH – +VIEX4PEGI8S;SVOƁ9/ KIRHIVWTPMXMRSYVWIRMSV TPE]IVTVSXIGXMSRG]FIVWIGYVMX]GYWXSQIV management team – +VIEX4PEGI8S;SVOƁ%YWXVEPME data integrity and anti-money laundering – &][IEVIGSQQMXXIHXS are categorised as the most material topics. – &IWX;SVOTPEGIMR8IGLƁ9/ Other information TVSGYVMRKɸ SJSYVIPIGXVMGMX] 8LIWXEOILSPHIVHMEPSKYIWXSSOXLIWLETI JVSQɸVIRI[EFPIWSYVGIWSJIRIVK] SJMRHITXLMRXIVZMI[WERHWYVZI]WSJƼZI QEVOIXW'YWXSQIVWIQTPS]IIWS[RIVW Short-term commitments for each MRZIWXSVWFYWMRIWWTEVXRIVWERHMRHYWXV] TVMSVMX]EVIEEVIEPWSIPEFSVEXIH=IEVP] associations were involved in the process. [IVITSVXSRSYVWYWXEMREFMPMX]TVSKVIWW and achievements.

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Alignment with the UN Sustainable Development Goals 8LI927YWXEMREFPI(IZIPSTQIRX+SEPW 7(+W EVIEGSPPIGXMSRSJKPSFEPKSEPWXLEXɸJSVQEFPYITVMRXXSEGLMIZIEFIXXIVERH QSVIWYWXEMREFPIJYXYVIF]/MRHVIHLEWMHIRXMƼIHXLVIITVMSVMX]7(+WXLISRIW/MRHVIHGSRXVMFYXIWXSXLIQSWXERHJSYV WYTTSVXMRK7(+W(YVMRKXLIFIKMRRMRKSJ[IHIƼRIHXEVKIXWJSVIEGL7(+ERHPMROIHXLIWIXSSYVS[RWYWXEMREFMPMX]/4-W 6IEHQSVIEFSYXXLMWMRSYV7YWXEMREFMPMX]6ITSVX Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred Responsible Maintaining Running a Being Contributing Gambling integrity compliant Kindred to our business communities

19 Sustainability at Kindred continued

Responsible Gambling

Gambling should only ever be entertainment. -R/MRHVIH[MPPTEVXRIV[MXLXLI Highlights European Association for the Study of 1EOMRKKEQFPMRK The majority of customers enjoy our offering +EQFPMRK )%7+ XSPEYRGLXLIƄ&IXXSV ɸTIVɸGIRXIRNS]EFPI MRWTSVXWFIXXMRKGEWMRSERHSXLIVKEQIWMR Time’ app to its customers. The app the way it is intended. However, this means GERLIPTMHIRXMJ]IEVP]WMKRWSJTVSFPIQ that a small percentage of our customers KEQFPMRKXSMXWYWIVW&IXXSV8MQILEW 12% do not use our products in the way they FIIRHIZIPSTIHF]>EJX]-RXIPPMKIRGIE of our customers use EVIɸQIERXXSFIYWIH PIEHMRKGSQTER]MRQSFMPIQIRXEPLIEPXL non-mandatory control tools assessment, using proprietary machine ;IJYPP]EGORS[PIHKISYVVIWTSRWMFMPMXMIW learning software to identify unique EWEKEQFPMRKSTIVEXSVERH[IEVI GLERKIWMRYWIVFILEZMSYVEWWSGMEXIH 76% GSQQMXXIHXSHSMRKEPPXLEX[IVIEWSREFP] [MXLɸQIRXEPLIEPXLMWWYIW of our customers adopt can to prevent and minimise any harm EɸLIEPXLMIVɸETTVSEGL GEYWIHF]KEQFPMRK;SVOMRKXSKIXLIV *MREPP][I[SVOGPSWIP][MXLEFVSEH XSKEQFPMRKEJXIVXLI EGVSWWXLIMRHYWXV]MWOI]EPSRK[MXL VERKIɸSJWXEOILSPHIVWXSMRZIWXMKEXI ƼVWXHIXIGXMSR developing improved technology and new and innovative ways to expand our WYWXEMREFPIVIKYPEXMSRWXLEXIRWYVI VIWTSRWMFPIKEQFPMRKIJJSVXW;ILEZI GYWXSQIVWWXE][MXLMRPMGIRWIHQEVOIXW WIIRɸXLEXGSPPEFSVEXMSRFIX[IIRVIWIEVGLIVW 690 ERHSTIVEXSVWGERWMKRMƼGERXP]IRLERGI registered attendees for -R[ILEZIXEOIRMQTSVXERXWXITW VIWIEVGLMRXLIEVIESJVIWTSRWMFPI XLI7YWXEMREFPI XSVIEPMWISYVEQFMXMSRXSVIEGL^IVS KEQFPMRKERH[IEVIMRZSPZIHMREɸVERKI +EQFPMRK'SRJIVIRGI VIZIRYIHIVMZIHJVSQLEVQJYPKEQFPMRK SJɸVIWIEVGLWXYHMIWERHWTSRWSV F]ɸ4PE]IVWEJIX]MWXSTTVMSVMX] EɸRYQFIVɸSJ4L(TVSKVEQQIW ERHXLIɸQSWXHMWGYWWIHXSTMGJSVQSWX 97% KEQFPMRKSTIVEXSVW,S[IZIVXLIVIMWZIV] of employees little real data on this matter. To facilitate completed training on a fair, transparent and honest discussion, VIWTSRWMFPIKEQFPMRK [IHIGMHIHXSFIGSQIXLIƼVWXKEQFPMRK operator to openly report the share of VIZIRYIHIVMZIHJVSQLMKLVMWOGYWXSQIVW

8LIƼKYVIWEVIYTHEXIHVIKYPEVP]ERH TYFPMWLIHSRSYV[IFWMXIXSKIXLIV[MXLE measurement of the effectiveness of the +VSYTƅWWYWXEMREFMPMX][SVO%HHMXMSREPP] we have continued to develop our player monitoring system PS-EDS (Player Safety Ɓ)EVP](IXIGXMSR7]WXIQ [LMGLHIXIGXW IEVP]WMKRWSJTVSFPIQKEQFPMRK

-R3GXSFIV/MRHVIH+VSYTSVKERMWIH XLIƼJXL7YWXEMREFPI+EQFPMRK'SRJIVIRGI FEWIHSRXLIWMQTPIMHIESJGSRRIGXMRK XLIFVMKLXIWXQMRHWEGVSWWHMWGMTPMRIW XSHMWGYWWLS[[IGER[SVOXSKIXLIVXS WIGYVIEWYWXEMREFPIKEQFPMRKMRHYWXV] (YIXSXLITERHIQMGƅWGSRJIVIRGI XSSOTPEGISRPMRI[MXLEPQSWX registered attendees, all focused on how XLISRPMRIKEQFPMRKMRHYWXV]GERXEOI advantage of technological advancements XSFYMPHEQSVIWYWXEMREFPIJYXYVI kindredgroup.com

20 Strategic report

Maintaining integrity Governance Integrity rests on two pillars: sports %X/MRHVIH[IORS[XLEXGSPPEFSVEXMSR Highlights betting integrity and integrity in MWOI]MRXLIƼKLXEKEMRWXQEXGLƼ\MRK ;IEP[E]WWXVMZIXSFILEZI 0NSIWJIѣX࣢UQFYKTWRNSYJWRXTKH^GJW ;IGSPPEFSVEXI[MXLKSZIVRMRKFSHMIW with integrity and fairness in security and customer data protection. MRHYWXV]EWWSGMEXMSRWWTSVXWGPYFWERH everything we do to maintain authorities to share data and experience. the trust of our customers, Maintaining integrity means ensuring Kindred has, together with the European the regulators and society XLEXɸKEQFPMRKMWɸGSRHYGXIHJEMVP] *SSXFEPPJSV(IZIPSTQIRX2IX[SVO EWɸE[LSPI

ERHSTIRP]JVIIJVSQFIXXMRKVIPEXIH )*(2 SYVGSQQYRMX]TEVXRIVPEYRGLIH Financial statements GSVVYTXMSRɸ8LIMRXIKVMX]SJɸFIXXMRKMW *EMV7TSVX%PPJSGYWIHSRERXMQEXGL MQTSVXERXFIGEYWISJXLIWMKRMƼGERX Ƽ\MRK*SVQSVIMRJSVQEXMSRSR/MRHVIHƅW 97% VMWOWɸXLEXER]GSQTVSQMWI[SYPHTSWI ETTVSEGLXSGSQFEXXMRKQEXGLƼ\MRK of employees completed XSɸWTSVXERHMXWTVEGXMXMSRIVWERHJERW TPIEWIWIITEKI training on information security KMZIRɸMXWWGEPIERHTSTYPEVMX]EVSYRH XLI[SVPH8LEXMW[L]SYVEQFMXMSRMW As a digital company, adhering to data XSɸEP[E]WFILEZI[MXLɸMRXIKVMX]ERHJEMVRIWW TVSXIGXMSRFIWXTVEGXMGIWERHPE[W 61 MRɸIZIV]XLMRK[IHSMRɸSVHIVXSɸVIXEMRXLI such as the General Data Protection ZYPRIVEFMPMXMIWMHIRXMƼIH Other information XVYWXSJSYVGYWXSQIVWXLIɸVIKYPEXSVW 6IKYPEXMSR +(46 MWSRISJSYVLMKLIWX and society. TVMSVMXMIW8LMWMWVIƽIGXIHMRSYVMRXIVREP Privacy and Data Protection Policy, which 19 ;ISTIVEXIEFYKFSYRX]TVSKVEQQI GSZIVWEPPGYWXSQIVWGLERRIPWFVERHW WYWTMGMSYWWTSVXWFIXXMRK through which we invite selected security products, platforms, suppliers and IZIRXWVITSVXIHɸF]/MRHVIH researchers to test the security of our transactions. It is crucial for our ongoing ZEVMSYWFVERH[IFWMXIWXSHMWGSZIV FYWMRIWWWYGGIWWXLEXSYVIQTPS]IIW ZYPRIVEFMPMXMIWFIJSVIXLI]EVII\TPSMXIH EVIHMPMKIRXERHSFWIVZERX)ZIV]]IEV 10 F]QEPMGMSYWIRXMXMIW;IQEHIXLMW all Kindred employees and contractors IQTPS]IIWETTSMRXIHXSFI TVSKVEQQITYFPMGMR*IFVYEV]SRXLI QYWXTEWWQERHEXSV]XVEMRMRKMRG]FIV GIVXMƼIH4VMZEG]'LEQTMSRW ,EGOIV3RITPEXJSVQERH[IEVIGSRWXERXP] security and information security. On top trying to expand its scope to cover all our of this, all employees and contractors I\XIVREPP]JEGMRKFVERHWERHWIVZMGIW undergo mandatory training on what XLI+(46QIERWJSVSYVFYWMRIWW TSPMGMIWERHTVSGIWWIW-RXLI VEXISJGSQTPIXMSRɸJSVSYVMRJSVQEXMSR WIGYVMX]ɸXVEMRMRK[EWɸTIVGIRX

Running a compliant business

Compliance is a prerequisite for our participate in regular anti-money laundering Highlights business, and we are subject to strict %10 XVEMRMRKERH[ITVSZMHIJYVXLIV ;IWXVMZIXSIRWYVIXLEXSYV WZQJX࣢FSIUWT[NXNTSXNSYMJHTZSYWNJX training targeted at those groups who operations always meet the FSI࣢WJLNTSXNS\MNHM\JMTQIQNHJSHJX EVIɸXEWOIH[MXLHIXIGXMRKERHTVIZIRXMRK highest professional, compliance money laundering. Further, Kindred has a and ethical standards

3YVɸEQFMXMSRMWXSIRWYVIXLEXMRELMKLP] +VSYT1SRI]0EYRHIVMRK6ITSVXMRK3ƾGIV 2020 Accounts and Report Annual plc Group Kindred regulated industry, our operations always who provides the CEO with regular reports meet the highest professional, compliance on individual cases. GBP 272m ERHIXLMGEP[SVOWXERHEVHW;MXLIZIV] generated to governments PSGEPPMGIRGILEZMRKMXWS[RWTIGMƼGPIKEP %WEHMKMXEPFYWMRIWWEPPXVERWEGXMSRW MRɸXE\ɸ GSVTSVEXIXE\IW:%8 operational and commercial requirements, EVIɸGSRHYGXIHSRPMRI;ILEZIWIZIVEP FIXXMRKHYXMIWERHTE]VSPPXE\IW Kindred invests heavily in compliance systems monitoring each single transaction ERHKSZIVRERGIJYRGXMSRW;IGYVVIRXP] XSHIXIVQMRIVMWOERHVIUYMVILMKLVMWO LEZIQSVIXLERIQTPS]IIW[MXLMRSYV customers to provide their source of 18 FYWMRIWW[SVOMRKHMVIGXP][MXLXLMWEWTIGX JYRHW,MKLIVVMWOEGXMZMX]MWGLIGOIHF] regulatory audits with SJSYVSTIVEXMSRW(YVMRK/MRHVIH EHIHMGEXIHXIEQXVEMRIHXSHIVMWOXLI EPPɸSTIRɸTSMRXWGPSWIH YRHIVXSSOVIKYPEXSV]EYHMXWEGVSWW WMXYEXMSRF]ETTVSTVMEXIGYWXSQIVHYI EPPɸMXWɸPMGIRWIHEGXMZMXMIWEWVIUYMVIHF] diligence and necessary actions. If a XLIɸXIVQWSJMXWPMGIRGIW [MXL customer’s activity level is determined 60% EPPɸSTIRTSMRXWGPSWIH XSFILMKLVMWOER-RXIVREP6MWO6ITSVXMW gross winnings revenue from raised and, if following further internal PSGEPP]VIKYPEXIHQEVOIXW ;IXEOIGVMQITVIZIRXMSRZIV]WIVMSYWP] investigations there are indications Our systems and controls are designed to of money laundering attempts, we OIITQSRI]PEYRHIVIVWERHSXLIVGVMQMREPW raise a report to the National Financial 439 away from our platform across multiple -RZIWXMKEXMSR9RMXMRXLIWTIGMƼGQEVOIX suspected cases of NYVMWHMGXMSRW;IVIUYMVIEPPIQTPS]IIWXS QSRI]ɸPEYRHIVMRKVEMWIH F]ɸ/MRHVIHXSEYXLSVMXMIW 21 Sustainability at Kindred continued

Being Kindred

Kindred’s long-term success is driven by LEWFIIRERI\XVESVHMREV]]IEVMR Highlights our people. Attracting and retaining the QER]VIKEVHW8LI'3:-(TERHIQMG Become one of the world’s best people to support and drive Kindred’s has resulted in employees having to LMKLIWXVEROIHGSQTERMIW long-term strategic objectives, purpose [SVOJVSQLSQIQIERMRKXLEX/MRHVIH JSVɸIQTPS]IIIRKEKIQIRX and business operations, remains a key as an employer has faced a new type of UWNTWNY^&XNLSNܪHFSYJQJRJSYTKYMNXNXYT GLEPPIRKIERHVIWTSRWMFMPMX]ƁIRWYVMRK offer a best-in-class employee experience. IZIV]SRIMWHSMRK[IPP[MXLSYXFIMRKEFPI XSɸQIIXMRTIVWSR 1,144,686 share awards granted ;IJSWXIVEPIEVRMRKGYPXYVIF]MRZIWXMRK XSɸSYVIQTPS]IIW in employee development from day one. To support our employees, we rolled ;ILEZIEWXVSRKMRXIVREPRIX[SVOXS SYXɸEɸKPSFEPWYTTSVXTVSKVEQQIGEPPIH HIPMZIVɸJEGMPMXEXSVPIHERHTIIVXSTIIV Kindred Hive. The concept of the Hive is % development opportunities. The “Kindred XLEXIZIV]SRIGERGSRXVMFYXIERHWYTTSVX 95 feel they are treated fairly Academy” provides employees with the each other in a social setting. It consists regardless of age, race STTSVXYRMX]XSEGUYMVIRI[MRHITXLWOMPPW SJGSVIQSHYPIWFYMPXEVSYRHGSVILEFMXW ERHɸWI\YEPSVMIRXEXMSR I\TIVXMWIERHORS[PIHKIEW[IPPEW XSXLVMZIERHWYVZMZIMRPSGOHS[R-XMWFYMPX I\TERHɸXLIMVMRXIVREPERHI\XIVREPRIX[SVO around psychological safety and gives employees tools to analyse and improve -R[IPEYRGLIHSYVPIEHIVWLMT XLIMVQIRXEP[IPPFIMRKERHXLEXSJXLSWI 62 nationalities programme, the Kindred Alchemy EVSYRHXLIQ2IX[SVOWWYGLEW&PEGO programme. The programme has strict %WMER1MRSVMX])XLRMG %PPMIW0+&85 diversity criteria in place to ensure that %PPMIW4EVIRXWERH7SPS[SVOIVWLEZIFIIR XLIɸKIRHIVFEPERGISJETTPMGERXWMWJEMV formulated as well. Campaigns for these ERHɸPIEHIVWLMTGETEFMPMXMIWSR[LMGLMW RIX[SVOWEVIYRHIVGSRWXVYGXMSRERH[MPP MXFYMPXLEZIFIIRZIVMƼIHF]ERI\XIVREP VSPPSYXMR I\TIVXXSIRWYVIXLI]EVIFMEWJVII

2020 employee age breakdown (%)

<30 years 28% 31–40 years 49% 41+ years 23%

2020 employee gender breakdown – senior management (%)

Female 19% Male 81% kindredgroup.com

22 Strategic report

Contributing to our communities Governance Our long-term ambition is to equip our -RSYVFVERHWERHSƾGIWYRHIVXSSO Highlights communities with the knowledge and several initiatives to support their local Equip the communities resources to build a better future. GSQQYRMXMIWMRXLI[EOISJXLITERHIQMG MR[LMGLɸ[ISTIVEXI[MXL JSVI\EQTPIF]HSREXMRKEPPXLITVSƼXWJVSQ XLIɸORS[PIHKIERHVIWSYVGIW ;IHSWSF]IRKEKMRKMRQIERMRKJYP the virtual Grand National to NHS Charities XSɸFYMPHEFIXXIVJYXYVI TEVXRIVWLMTW[MXLPSGEPERHKPSFEP Together in the UK. In Malta, the resident SVKERMWEXMSRWEW[IPPEW[SVOMRK catering team prepared approximately XS[EVHWɸWIGYVMRKTIVGIRXSJSYV 30,000 meals to local hospitals, the 52% Financial statements TYVGLEWIHIRIVK]JVSQVIRI[EFPI homeless across the island via the reduction in COe emissions VIWSYVGIWF][LIVIZIV[IGER /RMKLXWɸSJ1EPXEERHQMKVERXW per employee

As a company operating solely online, As part of the sponsorship of the Swedish SYVɸGPMQEXIMQTEGXQEMRP]GSQIWJVSQ )PMXI*SSXFEPPPIEKYIW/MRHVIHGSRGPYHIH 100% IRIVK]YWEKIERHFYWMRIWWXVEZIP;IVITSVX MXWTE]QIRXSJ7)/QMPPMSRXLVSYKLSYX of our reported COe on our emissions annually using a third party, XLI]IEVXSXLIJSSXFEPPGPYFWEWTEVXSJ IQMWWMSRWɸ[IVISJJWIX

XSFIGSQTPMERX[MXLXLI+VIIRLSYWI+EW XLIƈ,IQQEOPYFFIRƉMRMXMEXMZIXSLIPT Other information 4VSXSGSP'SVTSVEXI7XERHEVH;IHMWGPSWI JYRHɸJYVXLIVHIZIPSTQIRXMRIEGLGPYF our environmental impact in our annual 7YWXEMREFMPMX]6ITSVXERHXLVSYKL'(4 JSVQIVP]XLI'EVFSR(MWGPSWYVI4VSNIGX 3YV'(4WGSVIMRHMGEXIWXLI+VSYTƅWEFMPMX] XSɸQSRMXSVERHUYERXMJ]MXWGEVFSRIQMWWMSRW -R/MRHVIHVIGIMZIHEWGSVISJ&[LMGL 3YVVIWMHIRXGEXIVMRKXIEQMR1EPXEVIEH]XSHIPMZIVQIEPWXSPSGEPLIEPXL[SVOIVWHIEPMRKHMVIGXP][MXL'3:-( MWERMQTVSZIQIRXJVSQPEWX]IEV &

;IɸLEZIEPWSWIX7GMIRGI&EWIH 8EVKIXWɸJSVɸSYVIQMWWMSRW8LIXEVKIXW LEZIFIIRHIZIPSTIH[MXLWYTTSVXJVSQ I\XIVREPI\TIVXWERHXLI]EVIɸEPMKRIHXSɸXLI KYMHIPMRIWTYFPMWLIHF]XLI7GMIRGIɸ&EWIH 8EVKIX-RMXMEXMZI 7&8M Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred

Kindred Group CO2 emissions

Tonnes of CO 2e 2019/201 2018/191 2 2017/181 2

Scope 1 – Operation of site facilities (tonnes COI 111.0

7GSTIƁ+VMHIPIGXVMGMX]TYVGLEWIH XSRRIW'3I

Scope 3 – Indirect emissions including travel (tonnes COI

Total 2,838.7 6,254.1 6,279.7

COIVEXMS XSRRIWTIVIQTPS]II 1.76 3.73

COIVEXMS XSRRIWTIV+;6+&4QMPPMSR

1 To ensure COIHEXEMWGSPPIGXIHSREXMQIP]ERHEGGYVEXIFEWMWXLI'3IVITSVXMRK]IEVMWEQSRXLELIEHSJXLIƼRERGMEP]IEV

-RXLIIQTPS]IILIEHGSYRXLEWFIIRQIEWYVIHEWEX2SZIQFIVXSEPMKR[MXLXLI'3IVITSVXMRK]IEV[LMPIXLIIQMWWMSRWLEZIFIIRGEPGYPEXIH [MXLɸQSVIɸEGGYVEXIIQMWWMSRWJEGXSVWQIERMRKXLEXXLIGSQTEVEXMZIQIXVMGWWLS[REFSZIJSVERHLEZIFIIRVIGEPGYPEXIHEGGSVHMRKP]6IEHQSVI EFSYXɸXLIɸIQMWWMSRWJEGXSVWMRXLIWYWXEMREFMPMX]RSXIWMRXLI7YWXEMREFMPMX]6ITSVX 23 Sports betting integrity at Kindred Kindred sees match-fixing as a sustainability focus area.

Billions of people from around the The IBIA (formerly known as ESSA), is During 2020, the partnership Kindred world have a passion for participating the integrity body of the regulated betting PEYRGLIHMR[MXLɸXLI)YVSTIER in and spectating sport. However, if the MRHYWXV]ERHVITSVXWEKKVIKEXIHƼRHMRKW Football for Development Network has unpredictability of sporting events is on suspicious betting events to regulators continued with the aim of promoting compromised this passion is in severe and sports governing bodies. The IBIA the power of football as a tool for social NISTEVH]&IXXMRKVIPEXIHQEXGLƼ\MRK works closely with many of the world’s development. As Community Partner, creates an increasing risk to our industry leading sport federations, such as the /MRHVIH[MPP[SVO[MXL)*(2SRXLIɸ*EMV F]ɸFVMRKMRKXLILSRIWX]SJWTSVXMRKIZIRXW International Olympic Committee, FIFA 7TSVX%PPTVSNIGX[LMGLEMQWXSɸIHYGEXI into question. This not only leads to a and UEFA. Moreover, the IBIA has signed professional football players on sports loss of interest in our betting product but Memoranda of Understanding (MoU) with betting integrity in order to prevent ultimately may cause the whole sports gaming regulators to make sure relevant QEXGLƼ\MRKEQSRKXLIQIQFIVW betting entertainment chain to suffer. intelligence is shared with the respective SJɸXLI)*(2GSQQYRMX] authorities as soon as possible. In 2020, Therefore, it is imperative for operators 270 events were deemed to be suspicious To Kindred, a positive contribution to society to show responsibility towards society and were reported to the authorities. is vital. Sponsorship agreements not only and our industry and contribute to the give Kindred a way of bringing funding to ƼKLXEKEMRWXXLMWTVSFPIQ8LMWGERSRP] Evidence from IBIA Monitoring & Alert sports but also an opportunity to work FIHSRIɸF][SVOMRKGPSWIP]XSKIXLIVXS Platform serves as the basis for an together with sports to develop integrity. promote regulated and healthy betting informed policy approach. In-depth [EWXLIƼVWX]IEVSJEWM\]IEV EGXMZMXMIWMRSVHIVXSGSQFEXQEXGLƼ\MRK research reports and position papers sponsorship of Swedish Elite Football, However, unattractive regulations EVIɸVIKYPEVP]WLEVIH[MXLTSPMG]QEOIVW the most comprehensive sponsorship increasingly channel betting activities agreement Kindred has ever entered outside a regulated system and thus Throughout the years IBIA has also into. The collaboration with the top two MRGVIEWIXLIɸHMƾGYPX]XSGSQFEXQEXGL supported the education of players 7[IHMWLɸJSSXFEPPPIEKYIWIRXEMPWXLI Ƽ\MRKMRɸERɸSVKERMWIHERHIƾGMIRXQERRIV ERHɸSXLIVWTSVXMRKTIVWSRRIPEWXLMWMW ETTSMRXQIRXSJERɸMRXIKVMX]SƾGIVMR OI]ɸXSTVSXIGXMRKXLIMRXIKVMX]SJWTSVX every club along with dedicated training in Kindred operates under the “See responsible gambling and sporting integrity. something, say something” approach. Raising standards among, and further Suspicious betting activity will always be educating all stakeholders will result in the reported along three lines: to the relevant preservation of the integrity within sports. local authority, to the relevant sports’ governing body and to the International Betting Integrity Association.

Schematic of analysis and reporting of suspicious betting activity

National Gambling Authority Step 5 Alert to stakeholders: Operator to national gambling authorities, TSPMGIɸERHWTSVXWFSHMIW Step 1 Step 4 Suspicious Alert to market Step 1 activity alert (all members Suspicious including Kindred) activity alert

Sports

Step 5 organisations Alert to stakeholders: Step 2 IBIA based on MoUs Market scan: [MXLɸWTSVXWSVKERMWEXMSRW

kindredgroup.com ƈ,EWɸER]SRIɸWIIR and authorities ER]XLMRKɸIPWI#Ɖ Step 3 Response from members and analysis by IBIA

Members of IBIA

24 Risk and risk management Strategic report Governance With constant uncertainty across Continuous Assessment Risk function Risk mitigation is assigned to the the world due to COVID-19, and the continuously reviews risks to take into VIPIZERXɸWXEOILSPHIVMRXLISVKERMWEXMSR gambling industry continuing to face account changes in market circumstances to implement relevant actions with several challenges, the importance of and developments within the Group’s XLIɸEWWMWXERGIERHWYTTSVXSJXLI risk management remains crucial for operating areas. 6MWOɸ1EREKIQIRXJYRGXMSR Kindred Group. Good risk management allows the Group to have increased Frequent Monitoring Risk function This enables the Group to: confidence in achieving desired outcomes, liaises closely with key stakeholders Financial statements constraining risks at acceptable levels XSɸGSRXMRYSYWP]QSRMXSVVMWOW – QETERHERXMGMTEXIMHIRXMƼEFPIVMWOW and making informed decisions about new ERHɸVIKYPEVP]YTHEXIEWWIWWQIRXW opportunities. This leads to less disruption, The Risk Management and Internal Audit – prioritise risks against Group strategy reduced uncertainty and improved decision teams perform reviews of the effectiveness ERHVMWOETTIXMXI making in its evolving risk profile. of risk mitigation controls and report the VIWYPXWXSXLI%YHMXɸ'SQQMXXIIVIKYPEVP] – EPPSGEXIVMWOQMXMKEXIEGXMSRW Risk governance – HIZIPSTERHMQTPIQIRXTSPMGMIW ERH The Board, via the Audit Committee, Risk management process Other information has overall responsibility for the risk Kindred Group’s risk management process – provide training and support and regularly management process and risk governance. stipulates that a risk assessment is carried check the effectiveness of the process. 8LI)\IGYXMZI1EREKIQIRXXIEQ[MXL out annually. The annual risk assessment XLIɸETTVSZEPSJXLI&SEVHMWVIWTSRWMFPI started in August and the Risk Management Principal risks JSVɸMHIRXMJ]MRKEWWIWWMRKERHQEREKMRKXLI function worked together with the business The Kindred Group divides its principal risks within the Group. XSɸGSRHYGXEVMWOEWWIWWQIRXEGVSWWXLI risks into general risks and industry- Group and capture the relevant risks. WTIGMƼGɸVMWOW+IRIVEPVMWOWGERFI Independence Responsible for assessing FVSOIRɸHS[RMRXSXLIJSPPS[MRKEVIEW and monitoring risks across the Group, Several initiatives across the Group independently of the Group’s operating areas. LEZIɸFIIRGEVVMIHSYXXSTIVJSVQXLI – Strategic VMWOɸEWWIWWQIRXERHMHIRXMJ]ERHEWWIWW – Operational Prudent management Responsible for the relevant risks. The data is captured taking a holistic view of the Group’s risks ERHɸGSQTMPIHMRXSXLIVMWOVITSVX[LMGLMW – Financial (see note 2C on pages 70 and 71) and assessing risks across all areas of presented annually to the Audit Committee – Compliance XLIɸFYWMRIWWMREGSRWMWXIRXQERRIV and the Board of Directors.

Business Activity Risk function should FIɸGSRWYPXIHXSVIZMI[ERHEWWIWWVMWOW

7NXPXFWJNIJSYNܪJIZXNSLYMJUWTHJXXIJXHWNGJINSYMJINFLWFRGJQT\

Risk Management Audit Committee Kindred Group’s Board Risk Management and FSI࣢PJ^࣢XYFPJMTQIJWX Internal Audit teams

Risk assessment Review of key risks and risk management process Identify and assess key Review of Internal Audit plan VMWOWJSVɸXLI/MRHVIH+VSYT Review the revised Internal Audit plan Risk monitoring Aug/Oct Work with stakeholders Discuss updates with the Internal Audit functions SRɸYTHEXIɸSJVMWO Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred

Risk mitigation plans Approval of annual Internal Audit plan Review of key risks Revision of Internal Work with stakeholders 9THEXIERHEHHEYHMXTVSNIGXWMJɸRIGIWWEV] and sign off &ZINY࣢UQFS SRɸVMWOQMXMKEXMSRTPERW Update, add and remove Add a bit of spice like others EYHMXTVSNIGXWMJɸRIGIWWEV] Nov/Dec Review of key risks and risk management process

Risk monitoring Review of key risks and risk management process Revision of Internal Work with stakeholders Review of Internal Audit plan &ZINY࣢UQFS SRɸYTHEXIɸSJɸVMWO Update, add and remove Review the revised Internal Audit plan EYHMXTVSNIGXWMJɸRIGIWWEV] Jan/Apr (MWGYWWYTHEXIW[MXLXLI-RXIVREPɸ%YHMXJYRGXMSR

Risk monitoring Review of key risks and risk management process Revision of Internal Work with stakeholders Review of Internal Audit plan &ZINY࣢UQFS SRɸYTHEXIɸSJɸVMWO Update, add and remove Review the revised Internal Audit plan EYHMXTVSNIGXWMJɸRIGIWWEV] May/Jul (MWGYWWYTHEXIW[MXLXLI-RXIVREPɸ%YHMXJYRGXMSR

25 Principal risks and uncertainties The table below presents some of the risks that could have implications for the Group’s future development. The risks are not arranged by order of importance or potential financial impact on the Group’s profit or financial position.

1. Strategic risk

Risk Mitigation Non-sustainable regulation The Group maintains ongoing dialogue with regulators and If core, or new, markets establish a non-sustainable TSPMG]QEOIVWɸMRMXWGSVIQEVOIXWTVSZMHMRKMRTYXSRRI[SVYTHEXIH VIKYPEXSV]QSHIP[MXLLMKLXE\IWERHSVWMKRMƼGERX regulation to help create a sustainable regulatory environment that product restrictions, it is hard to maintain a MWɸEPMKRIHXSGYWXSQIVHIQERHERHXLIGVSWWFSVHIVHMKMXEPQEVOIX sustainable business. VIEPMX]8LI+VSYTƅWGSQTPMERGI[MXLɸI\MWXMRKVIKYPEXMSRMWIQFIHHIH MRɸXLI[MHIVSVKERMWEXMSRERHXIWXIHVIKYPEVP]F]I\XIVREPEKIRGMIW Third-party dependency The risk is mitigated by reducing dependency on single suppliers, 0EGOSJGSRXVSPSZIVEZEMPEFMPMX]SJI\XIVREPWYTTPMIVWKMZIW [LIVIɸGSQQIVGMEPP]ZMEFPIERH[SVOMRK[MXLQYPXMTPIXLMVHTEVX] VMWIɸXSVMWOSJIMXLIVFYWMRIWWHMWVYTXMSRSVWYFSTXMQMWEXMSR suppliers. This allows the Group to mitigate the risks of suppliers %WXLIMRHYWXV]IZSPZIWXLIVMWOSJɸWYTTPMIVGSRGIRXVEXMSR JEMPMRKɸXSSTIVEXIIJJIGXMZIP] increases. If key suppliers acquire dominant or monopoly positions, this creates a risk of uncontrolled price increases. Brand reputation The Group remains a leading actor within the industry, especially in Kindred has built a reputation throughout the years based terms of responsible gambling, through several initiatives focusing SRWXVSRKJSYRHEXMSRWMRGPYHMRKMXWGSQQMXQIRXXSɸFIMRK on safe gambling and player sustainability. It will now, however, also a responsible partner with a focus on compliance, safe focus its efforts in several other areas including brand perception gambling, and player sustainability. This ultimately creates a studies, brand reputation surveys and other industry analysis as WEJIERHWIGYVIKEQFPMRKI\TIVMIRGIɸJSV/MRHVIHƅWGYWXSQIVW [IPPɸEWɸGSRXMRYMRKXSHIZIPSTOI]MRMXMEXMZIWMRMXWOI]QEVOIXWXS XLVSYKLMXWQER]FVERHWɸ&VERHVITYXEXMSRMWMRIZIV]XLMRK LIPTɸQMXMKEXIɸER]FVERHVITYXEXMSRVMWO /MRHVIHHSIWERHXSERɸI\XIRXXSXLIMRHYWXV]MRKIRIVEP ;LMPIMXMWEFVSEHERHɸYRTVIHMGXEFPIVMWOWYGLVMWOGER ultimately affect revenue, investments and shareholder value.

2. Operational risk

Risk Mitigation External security intrusion attempts 8LI+VSYTMW-73GIVXMƼGEXIGSQTPMERXERH[MPPGSRXMRYIXS Either as a result of a cyber-attack or internal security improve its policies and procedures with technology advancements. weakness, the Group’s customer data, including sensitive The Group is committed to attracting and retaining the best data such as passwords and/or banking details, could XEPIRXɸ[MXLMRɸMXW-87IGYVMX]HITEVXQIRXTVMSVMXMWMRKWIGYVMX]XEWOW leak into the public domain. ERHɸTVSNIGXWERHXSɸXVEMRMRKERHIHYGEXMRKEPPIQTPS]IIWEWVIUYMVIH +FNQZWJNSWJHWZNYNSLTWWJYFNSNSLPJ^࣢XYFKK 8LI+VSYTMHIRXMƼIWERHQSRMXSVWOI]WXEJJERH[SVOWLEVHXSFI *EMPYVIXSVIGVYMXSVVIXEMRI\MWXMRKOI]WXEJJGERPIEH ERɸEXXVEGXMZIIQTPS]IVXSIRGSYVEKIOI]WXEJJXSWXE] XSɸHMƾGYPXMIWMREGLMIZMRKXLI+VSYTƅWSFNIGXMZIW Succession planning is also performed for all key staff and functions. Initiatives are also carried out, through the Group’s sustainability JVEQI[SVOXSɸQIIXɸXLI+VSYTKIRHIVHMZIVWMX]SFNIGXMZIW Failure to adapt to new operational realities In terms of COVID-19, the Group established a task force and is COVID-19 has reminded everyone that such risk is very GSRXMRYSYWP]QSRMXSVMRKXLIWMXYEXMSREGVSWWEPPGSYRXVMIWERHSƾGIWMR real and can change the Group’s operational realities [LMGLXLI+VSYTSTIVEXIW8LMWLEWɸIRLERGIHIƾGMIRG]ERHIJJIGXMZIRIWW kindredgroup.com UYMGOP]8LIVMWOSJXLI+VSYTJEMPMRKXSEHETXERHƼRH whilst keeping a safe and secure environment for all employees. innovative ways to operate can result in a negative MQTEGXɸSRɸIQTPS]IIIRKEKIQIRXERHEXXVMXMSR Failure to execute strategic objectives in new markets 8LI+VSYTLEWEZEWX[IEPXLSJI\TIVMIRGISJIRXIVMRKRI[VIKYPEXIH There are many operational challenges associated QEVOIXWERHGERHVE[YTSRXLMWORS[PIHKIERHI\TIVXMWIEWVIUYMVIH [MXLɸIRXIVMRKRI[QEVOIXW[LMGLQE]QIERXLI+VSYT %PXLSYKLI\XIVREPJEGXSVWEVIEPWSEXTPE]XLI+VSYTIRWYVIWMXLEW may fail to meet its strategic objectives for that market. dedicated teams for new markets focusing on both operational matters These include unforeseen operational uncertainties and ERHTVSZMHMRKXLIFIWXGYWXSQIVI\TIVMIRGI GSQTPI\MXMIWERHKVIEXIVGSQTIXMXMSRXLERERXMGMTEXIH 26 Strategic report 3. Financial risk

Risk Mitigation Foreign exchange 8LI+VSYTƅWSTIVEXMRKGEWLƽS[WTVSZMHIEREXYVEPLIHKISJSTIVEXMRK The Group operates internationally and, in addition to GBP, is currency risks, since deposits and pay-outs to customers in different I\TSWIHXSJSVIMKRI\GLERKIVMWOEVMWMRKJVSQZEVMSYWGYVVIRG] territories are matched in the same currency. Governance I\TSWYVIWTVMQEVMP][MXLVIWTIGXXSXLIIYVS7[IHMWLOVSRE The Group also monitors key balances such as cash, customer balances Norwegian krone, Danish krone, US dollar and Australian dollar. ERHFSVVS[MRKWLIPHMRJSVIMKRGYVVIRGMIW[MXLXLIEMQXLEXXLMWɸ[MPPTVSZMHI 'IVXEMRIZIRXWQE]LEZIERIJJIGXSRJSVIMKRI\GLERKIVEXIW EREXYVEPLIHKIEKEMRWXWSQIJSVIMKRI\GLERKIVMWO8SQMXMKEXIXLIVMWO *SVIMKRI\GLERKIVMWOGEREVMWIXLVSYKLXLI+VSYTƅWHEMP] SJI\TSWYVIXSJSVIMKRGYVVIRG]QSZIQIRXWLIHKIEGGSYRXMRKLEWFIIR STIVEXMSRWEW[IPPEWMRVIWTIGXSJWMKRMƼGERXEWWIXWERH considered and is to be implemented in 2021. The Group also continuously liabilities including its credit facility when it draws down in JSVIGEWXWMXWJYXYVIGEWLƽS[WERH[MPPEMQXSHVE[ɸHS[RMRGYVVIRGMIW currencies other than GBP. where it believes that the potential translation gains and losses arising QE]ɸFISJJWIXF]JYXYVISTIVEXMSREPGEWLƽS[WMRXLIWEQIGYVVIRG] Financial statements Odds/trade 8LI+VSYTLEWZMEMXWMRLSYWII\TIVXVIWSYVGIWERHMXWWTSVXWFSSO The risk that the Group will lose money on its business due WYTTPMIV/EQFMEHSTXIHWTIGMƼGVMWOQEREKIQIRXTSPMGMIWXLEXGSRXVSP XSɸYRJEZSYVEFPISYXGSQIWSVQEXGLƼ\MRKSRXLIIZIRXW XLIQE\MQYQVMWOI\TSWYVIJSVIEGLWTSVXSVIZIRXSR[LMGLXLI+VSYT [LIVIɸXLIɸ+VSYTSJJIVWSHHW offers odds. The results of the most popular teams in the major football PIEKYIWGSQTVMWIXLITVIHSQMRERXQEVOIXVMWO8LVSYKLHMZIVWMƼGEXMSR which is a key element of the Group’s business, the risk is spread across a large number of events and sports. Other information The sportsbook product is also subject to regular reviews to verify genuine play and bet placement to ensure there is no indication of fraud. Any suspicious activity is reported to the relevant regulatory bodies. Transition into newly regulated markets 8LI+VSYTGERHVE[YTSRXLIWMKRMƼGERXORS[PIHKIERHI\TIVMIRGI The Group sees this transition as positive for the industry and, it has gained from previous markets which have moved to local though it anticipates that greater costs will naturally impact regulation. The Group also continuously works with stakeholders TVSƼXEFMPMX]MRXLIWLSVXXIVQXLIVIMWEVMWOSJYRJSVIWIIRGSWXW XSɸIRWYVIRI[VIKYPEXMSRMWWYWXEMREFPI[LMPWXEPWSTVSZMHMRKEKVIEX SVEHIPE]MRXLIXMQIXEOIRXSVIXYVRXSTVIVIKYPEXMSRTVSƼXEFMPMX] GYWXSQIVI\TIVMIRGI 8LMWGSYPHVIWYPXJVSQYRI\TIGXIHVIKYPEXSV]VIUYMVIQIRXWERH GSWXWGLERRIPMWEXMSRPIZIPWSVTVSHYGXERHɸQEVOIXMRKPMQMXEXMSRW

4. Compliance risk

Risk Mitigation Tax 8LI+VSYTQEMRXEMRWEGXMZIERHGSRXMRYSYWIRKEKIQIRX[MXLXE\ The Group operates in multiple jurisdictions and is subject EHZMWSVWMRHYWXV]TIIVWERHɸEWWSGMEXMSRWXSFIMRJSVQIHEFSYXRI[ XSEɸZEVMIX]SJREXMSREPXE\PE[WERHGSQTPMERGITVSGIHYVIW legislation in order to best plan the necessary mitigation for risks XSKIXLIV[MXLZEV]MRKETTVSEGLIWXEOIRF]HMJJIVIRXXE\ deriving from such changes. EYXLSVMXMIWXS[EVHWXLIMRXIVTVIXEXMSRSJPSGEPXE\VYPIW Regulatory compliance and governance complexity Group governance, including compliance, sustainability and security, 'LERKIWXSVIKYPEXSV]PIKMWPEXMZIERHƼWGEPVIKMQIWJSV is core to our operations which are designed to meet the highest FIXXMRKɸERHKEQMRKMROI]QEVOIXWGSYPHLEZIEREHZIVWI professional, compliance and ethical standards. IJJIGXɸSRXLI+VSYTƅWVIWYPXWERHEHHMXMSREPGSWXWQE]FI The Group is committed towards compliance and implementing MRGYVVIHMRɸSVHIVXSɸGSQTP][MXLER]RI[PE[WSVVIKYPEXMSRW ER]ɸGLERKIWSVVIUYMVIQIRXWSRXMQIEWVIUYMVIH The Group also does mandatory training for all stakeholders as part Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred SJɸSYVXVEMRMRKERHE[EVIRIWWGEQTEMKR De-risking of customers 8LI+VSYTGSRXMRYIWXSHIZIPSTXSSPWERHEYXSQEXITVSGIWWIWXSƽEK The Group needs to de-risk its customers, in line with its higher risk customers, and action to de-risk them is taken as appropriate PIKEPɸSFPMKEXMSRW,S[IZIVMJXLMWMWRSXGEVVMIHSYXTVSTIVP] Other controls in place include near-real-time alerts of risk indicators on JSVI\EQTPILYQERIVVSVMRXLIHIVMWOMRKTVSGIWW XLI+VSYT customer accounts, a holistic customer data view, creating synergies GERɸFIWYFNIGXXSƼRIWERHSVWERGXMSRW-XEPWSGERMQTEGXXLI between player sustainability teams and other departments and GYWXSQIVNSYVRI] MJEWIEQPIWWI\TIVMIRGIMWRSXQEMRXEMRIH IHYGEXMRKERHɸXVEMRMRKXLI[SVOJSVGISRVIPIZERXVIUYMVIQIRXW

5. Industry- speciﬁc risk

Risk Mitigation Negative public perception of the industry The Group continues its commitment towards open dialogue Constant negative media attention towards the industry with regulators, industry stakeholders and the wider society, HVMZIWɸEHZIVWITSPMG]HIGMWMSRW[MXLWXVMGXIVVYPIWERH focusing on compliance, social responsibility, player sustainability or increased enforcement. Such risk might also impact and responsible gambling. More information can be found in the XLIɸ+VSYTƅWɸEFMPMX]XSEXXVEGXERHVIXEMRXEPIRXSVXLI +VSYTƅWɸ7YWXEMREFMPMX]6ITSVX +VSYTƅWɸKIRHIVHMZIVWMX]SFNIGXMZIW 27 Financial review All-time highs in Gross winnings revenue and EBITDA, as the Group shows resilience in the face of a global pandemic and reaps the benefits of its scalable business model.

Overall Group performance The US market has also continued to Gross margin on sports betting 2020 was a record year for the Kindred be a core focus for the Group during the FSI࣢FQQ࣢UWTIZHYX Group across many of its key performance year. Gross winnings revenue of GBP 23.8 The gross margin for total sports betting metrics. EBITDA was up an impressive ɸ+&4 QMPPMSRLEWFIIREGLMIZIH in 2020 after free bets was 9.4 (2019: 8.4) +&4ɸQMPPMSR TIVGIRX JVSQXLI and, whilst as a new market it naturally has per cent, coming in higher than the Group’s prior year to GBP 274.2 million and earnings a negative impact on the Group’s EBITDA at long-term average sports betting margin of TIVWLEVI[EWYTF]TIVGIRXXSɸ+&4 XLIFIKMRRMRK/MRHVIHƅWI\TIGXEXMSRMWXLEX TIVGIRX WIIKVETLSRRI\XTEKI 0.728. the investments made now will enable the business to continue to build its sustainable In recent years, the typical average sports Despite the emergence of COVID-19 active customer base which will drive future betting margin for the Group has increased. HYVMRKɸXLI]IEVXLI+VSYTLEWWYGGIWWJYPP] growth in this market. This is generally due to the fact that the navigated the uncertainty that this caused French sports business has grown faster for so many businesses across the globe. As a result of the remarkable 2020 results, than the average growth for other markets The impact was felt early on as many the Group has also achieved an all-time and, like all operators, Kindred is required to sports events were postponed or cancelled. LMKLMRJVIIGEWLƽS[JSVXLI]IEVERH cap pay-outs to customers at 85 per cent. However, Kindred’s diverse business model ended the year in a net cash position. However, sports betting gross margins can meant that the impact on its top line was ZEV]UYMXIWMKRMƼGERXP]JVSQSRITIVMSH partially mitigated by solid growth across Gross winnings revenue XSXLIRI\XHITIRHMRKSRXLISYXGSQISJ its other product offerings. As the year Total Gross winnings revenue in 2020 WTSVXMRKIZIRXW-XMWI\TIGXIHXLEXSZIV progressed sports events returned, and, reached GBP 1,130.2 (2019: GBP 912.8) time these margins will even out. despite the initial impact, active customers million, meaning the Group surpassed JSVXLI]IEVMRGVIEWIHF]ɸTIVɸGIRX +&4FMPPMSRJSVXLIƼVWXXMQIMRMXW 8LIKVSWWQEVKMRJSVEPPTVSHYGXWMRɸ XSQMPPMSREɸWSPMHEGLMIZIQIRX history. Gross winnings revenue from before free bets was 4.9 (2019: 5.1) per cent. GSRWMHIVMRKXLIMQTEGXSJXLIɸTERHIQMG sports betting increased by 12 per cent Active customers for the fourth quarter XS+&4ɸ +&4 QMPPMSR Cost of sales even reached an all-time high level which JSVXLIɸ]IEV3XLIVTVSHYGXW HIƼRIH Cost of sales includes betting duties, overall has resulted in a notable 24 per cent below) saw even greater growth for the marketing revenue share and other increase in Gross winnings revenue from year, increasing Gross winnings revenue GSWXɸSJWEPIW the prior year. by 35 per cent to GBP 642.1 (2019: GBP 477.3) million as the Group capitalised Betting duties for the full year 2020 amounted Further down the income statement, on its diverse product offering whilst the to GBP 231.0 (2019: GBP 204.3) million, XLIɸ+VSYTLEWEPWSHIQSRWXVEXIHGEVIJYP sporting calendar was limited as a result an increase of 13 per cent from the prior QEREKIQIRXSJMXWGSWXWEWI\TIGXIH SJɸ'3:-( year. Despite the share of Gross winnings due to the previously communicated cost revenue from locally-regulated markets control initiatives. Focus on the optimisation The Group also continues to deliver on remaining fairly consistent with the prior SJI\TIRHMXYVIEW[IPPEWWSQIREXYVEPERH its strategic aim for sustainable growth ]IEVXLIEFWSPYXIZEPYIMRGVIEWIMRɸXLIWI XIQTSVEV]HIGVIEWIWMRSTIVEXMRKI\TIRWIW from locally-regulated markets, with Gross revenues leads to a natural increase in as a result of COVID-19, have supported winnings revenue from these markets betting duties. Betting duties have, however, XLIɸWMKRMƼGERXMRGVIEWIMR)&-8(%ERH amounting to 60 (2019: 59) per cent of grown at a lower rate than Gross winnings XLI+VSYTMWGSRƼHIRXXLEXXLIWGEPEFPI the total Group Gross winnings revenue, VIZIRYIHYIXSXLIQEVOIXQM\*VERGIJSV business model it has built will continue EɸWPMKLXMRGVIEWIJVSQXLITVMSV]IEV I\EQTPI[LMGLLEWELMKLIVVEXISJFIXXMRK XSɸHIPMZIVFIRIƼXWMRXLIJYXYVI

31 December 2020 31 December 2019 Central, Central, Eastern Eastern and and Western Southern Western Southern GBP m Nordics Europe Europe Other Total Nordics Europe Europe Other Total Sports betting 95.8 330.1 39.1 23.1 488.1 86.7 299.9 36.9 12.0 435.5 Other products – casino & games, poker and other 172.4 375.3 62.7 31.7 642.1 171.9 255.6 42.1 7.7 477.3 Gross winnings revenue 268.2 705.4 101.8 54.8 1,130.2 258.6 555.5 79.0 19.7 912.8 Betting duties -26.8 -169.2 -15.7 -19.3 -231.0 -23.6 -165.9 -10.1 -4.7 -204.3 Marketing revenue share -11.7 -31.1 -6.1 -4.7 -53.6 -13.8 -27.3 -5.5 -2.2 -48.8 Other cost of sales -52.9 -97.1 -18.7 -11.7 -180.4 -53.9 -77.8 -15.4 -4.0 -151.1 kindredgroup.com ,WTXXUWTܪY 176.8 408.0 61.3 19.1 665.2 167.3 284.5 48.0 8.8 508.6 Marketing costs -203.6 -210.9 %HQMRMWXVEXMZII\TIRWIW -224.1 -219.0 Items affecting comparability -31.7 -7.8 5WTܪYKWTRTUJWFYNTSX 205.8 70.9 4VSƼXFIJSVIXE\ 193.1 67.1 4VSƼXEJXIVXE\ 165.2 56.6

28 Earnings per share (GBP) 0.728 0.250 Strategic report duties, was one of the most negatively – GBP 26.4 (2019: GBP 25.0) million of – GBP 7.8 (2019: GBP 2.0) million of impacted markets as a result of COVID-19, depreciation, spanning property, plant goodwill impairment. GBP 3.9 (2019: given only sports betting is available and equipment and right-of-use assets. GBP 2.0) million being the impairment of to customers. Betchoice goodwill, following the Group’s – GBP 24.3 (2019: GBP 24.3) million of EWWIWWQIRXSJMXWJEMVZEPYIEWEɸVIWYPX EQSVXMWEXMSR I\GPYHMRKEQSVXMWEXMSR Other cost of sales has also grown at a of COVID-19 and GBP 3.9 million against SRɸEGUYMVIHEWWIXWHIƼRIHFIPS[ lower rate than Gross winnings revenue goodwill that arose from the Guildhall in items affecting comparability). EWXLI+VSYTEGLMIZIWGSWXIƾGMIRGMIW acquisition in 2008, as a result of the This primarily represents amortisation Governance MRTVSHYGXGSQQMWWMSRWXLEROWɸXSMXW Group rationalising its brand portfolio. of capitalised development costs scalable operations. Both goodwill balances are now fully (representing salary costs for those written down and both charges are non- working on the development and Marketing costs GEWLERHLEZIRSMQTEGXSRJVIIɸGEWL enhancement of the platform). During 2020, marketing costs were ƽS[*SVQSVIMRJSVQEXMSRWIIɸRSXI GBP 203.6 (2019: GBP 210.9) million. on pages 77 to 79. 2SXIMRXLIƼRERGMEPWXEXIQIRXWSR 1EVOIXMRKI\TIRHMXYVILEWHIGVIEWIH TEKIWERHɸTVSZMHIWQSVIEREP]WMW – Amortisation of acquired intangible JVSQɸXLITVMSV]IEVEWXLI+VSYTFIRIƼXWJVSQ SJEHQMRMWXVEXMZII\TIRWIWEW[IPPEWMXIQW assets of GBP 9.9 (2019: GBP 5.9) Financial statements the rationalisation of its marketing strategy affecting comparability detailed below. million, which is the charge on IFRS as well as the natural consequences of the 3 “Business combinations” acquired uncertainties and impact of COVID-19 which Items affecting comparability assets over the useful life of the asset, created a temporary reduction in spend 8LI+VSYTHIƼRIWMXIQWEJJIGXMRK included as part of the Group’s total HYVMRKɸ(IWTMXIXLMWHVSTMRQEVOIXMRK comparability as those items which, by their amortisation charge shown in note WTIRHɸHYVMRKXLITERHIQMG/MRHVIHƅWWLEVI size or nature in relation to the Group, should 11. Included within this charge for SJɸZSMGILEWMRGVIEWIHXLVSYKLSYX be separately disclosed in order to give a full 2020 is accelerated amortisation

understanding of the Group’s underlying of GBP 6.9 million relating to those Other information Administrative expenses ƼRERGMEPTIVJSVQERGIERHEMHGSQTEVMWSR brands that the Group has decided to (YVMRKXSXEPEHQMRMWXVEXMZII\TIRWIW of the Group’s results between years. discontinue during 2020, in order to were GBP 224.1 (2019: GBP 219.0) million. In 2020, items affecting comparability FIRIƼXJVSQJSGYWMRKVIWSYVGIWSR This total includes the following: included the following: its remaining brands and to reduce – GBP 109.7 (2019: GBP 96.1) million SVKERMWEXMSREPGSQTPI\MX] – Management incentive costs of of salary costs. Whilst the Group’s +&4ɸɸ +&4 QMPPMSR – A foreign currency loss on operating items previously announced cost control VIPEXMRKɸXSTVIZMSYW+VSYTEGUYMWMXMSRW of GBP 1.4 (2019: gain of GBP 2.0) million. initiatives have resulted in a 6 per cent reduction of headcount during 2020, – Personnel restructuring costs of )&-8(%ERHTVSƼXJVSQSTIVEXMSRW lower than normal capitalisation of GBP 4.2 (2019: GBP 1.7) million. )EVRMRKWFIJSVIMRXIVIWXXE\ERH development costs and adjustments As previously communicated, the depreciation and amortisation (EBITDA) to variable compensation driven by the Group is striving for improved cost for the full year 2020 were GBP 274.2 strong Group performance have resulted ERHSTIVEXMSREPIƾGMIRGMIW[LMGL +&4 QMPPMSR4VSƼXJVSQ in the increase from the prior year. has resulted in continued headcount operations for the full year 2020 was reduction throughout 2020 (by 6 per – GBP 63.7 (2019: GBP 73.6) million of +&4 ɸ+&4 QMPPMSR cent to 1,564 employees at the end SXLIVSTIVEXMRKI\TIRWIW8LMWGSQTVMWIW an increase of 190 per cent. The result of 2020), as the Group ensures it is predominantly consultancy and facilities’ was impacted by several key factors, as appropriately structured for the future. GSWXW8LIWMKRMƼGERXHIGVIEWIJVSQ I\TPEMRIHMRXLIWYQQEV]SJɸXLISZIVEPP the prior year is a result of the Group’s – A disputed regulatory sanction relating Group performance. successful drive for cost control as well XSXLIHIGMWMSRF]XLI7[IHMWLɸ+EQFPMRK as some temporary decreases in both 6IKYPEXSVXSMWWYIXLI+VSYT[MXLEƼRI facilities and travel costs as a result of SJ7)/QMPPMSR +&4ɸQMPPMSR COVID-19 restrictions. 7IIRSXIɸSRTEKIWERH

Sports betting gross margin (2018 – 2020)

Before free bets After free bets Long-term average

14% Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred 12%

10%

0% Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR

2018 2019 2020

Total margin all products (2018 – 2020) 2020 2020 2020 2020 2020 2019 2018 Q4 Q3 Q2 Q1 FY FY FY 8SXEPQEVKMREPPɸTVSHYGXW FIJSVIɸJVIIFIXW 5.2% 4.7% 4.2% 5.3% 4.9% 5.1% 5.0%

-RGPYHIWWTSVXWFIXXMRKERHGEWMRS KEQIWFYXI\GPYHIWTSOIVVEOIWERHSXLIVVIZIRYIW 29 Financial review continued

2IXƼRERGIGSWXWMRGSQIERHJSVIMKR 8LIQSWXWMKRMƼGERXRSRGYVVIRXEWWIXW commissions, betting duties and employee GYVVIRG]PSWWKEMRSRFSVVS[MRKW on the Group’s balance sheet are goodwill bonuses, amongst others. Provisions have 2IXƼRERGIGSWXW GSRWMWXMRKSJƼRERGI and intangible assets. Intangible assets increased from GBP 11.8 million at the GSWXWSJJWIXF]ƼRERGIMRGSQI EQSYRXIH comprise assets acquired as a result of end of 2019 to GBP 21.8 million at the end to GBP 5.8 (2019: GBP 6.6) million for 2020. business combinations (such as brands, of 2020. This is primarily the result of the This primarily comprises interest and fees customer databases and domain names) HMWTYXIHVIKYPEXSV]WERGXMSRI\TPEMRIH SRFSVVS[MRKW[LMGLEQSYRXIHXSɸ+&4 as well as capitalised development costs, JYVXLIVMRɸXLIMXIQWEJJIGXMRKGSQTEVEFMPMX] (2019: GBP 5.4) million for 2020. computer software and long-term gaming section and note 4 on pages 74 and 75. licences. For further information on the The foreign currency gains and losses on movements in goodwill and intangible Customer balances amounted to GBP borrowings relate to the revaluation of the assets, see note 11 on pages 77 to 79. 77.5 (2019: GBP 67.4) million at the end of Group’s multicurrency facilities. For the the year. See note 19 on page 83 for more full year 2020 this amounted to a loss of Property, plant and equipment has MRJSVQEXMSR8E\PMEFMPMXMIWLEZIMRGVIEWIH GBP 8.7 (2019: gain of GBP 2.9) million. decreased during the year as additions by GBP 73.7 million from the prior year due 8SQMXMKEXIXLIVMWOSJI\TSWYVIXSJSVIMKR are more than offset by the corresponding XSXLIXMQMRKSJGSVTSVEXMSRXE\TE]QIRXW currency movements hedge accounting depreciation charge. Right-of-use assets, MWɸXSFIMQTPIQIRXIHMR VIGSKRMWIHJSVXLIƼVWXXMQIEWEVIWYPX 'EWLƽS[ of the adoption of IFRS 16 in 2019, have GBP 316.1 (2019: GBP 120.3) million 4VSƼXEJXIVXE\ also decreased during the year as, again, in cash was generated from operating 4VSƼXEJXIVXE\JSVXLIJYPP]IEV[EW the depreciation charge outweighs activities during 2020. The increase is GBP 165.2 (2019: GBP 56.6) million, an remeasurements to the carrying value TVMQEVMP]XLIVIWYPXSJWMKRMƼGERXP]MQTVSZIH increase of 192 per cent. The effective SJɸWSQISJXLIEWWIXWHYVMRKXLI]IEV underlying performance (operating cash XE\ɸVEXIJSVXLIJYPP]IEVMWFVSEHP] ƽS[WFIJSVIQSZIQIRXWMR[SVOMRKGETMXEP MRɸPMRI[MXLXLITVMSV]IEV Aside from cash (discussed in the increasing by GBP 145.9 million when RI\XɸWIGXMSR XLIGYVVIRXEWWIXWSRXLI compared to the full year 2019) boosted by Development and acquisition costs balance sheet relate to other receivables positive net working capital movement of SJɸMRXERKMFPIEWWIXW and prepayments, which have not moved GBP 34.7 million. This is mainly attributable Intangible assets comprise development WMKRMƼGERXP]HYVMRKXLI]IEVERHXE\EXMSR to higher supplier and betting duty accruals costs, computer software and licences. 8E\EXMSRGSQTVMWIWGSVTSVEXIXE\VIJYRHW (as a result of the increased activity -RMRXERKMFPIEWWIXWSJ+&4ɸ HYIJVSQXE\EYXLSVMXMIWERHXLIMRGVIEWI HYVMRKXLI]IEV XMQMRKSJGSVTSVEXMSRXE\ (2019: GBP 41.4) million have from the prior year is due to the timing of TE]QIRXWERHXLI7[IHMWLƼRISJ+&4 been capitalised. the receipt of these refunds. QMPPMSRJVSQXLIƼVWXUYEVXIV[LMGL remains disputed, and unpaid, yet fully For the full year 2019, licence costs of 7MKRMƼGERXPMEFMPMXMIWSRXLIFEPERGIWLIIX provided for in the numbers above. GBP 14.9 million for entering the US include borrowings, lease liabilities, trade market (predominantly Pennsylvania) and other payables, provisions, customer 'EWLƽS[WYWIHMRMRZIWXMRKEGXMZMXMIWMR [IVIɸGETMXEPMWIH[LMPIXLIVILEZIFIIR FEPERGIWERHXE\PMEFMPMXMIW 2020 were GBP 25.5 (2019: GBP 56.6) RSɸWYGLGSWXWMR million. The decrease from 2019 is a result Kindred Group plc has a syndicated of the reduction in capital investments, Capitalised development costs primarily multicurrency facilities agreement with predominantly in relation to US gaming represent capitalised salary costs for several Nordic banks. The facilities licences and capitalised development those working on the development and comprise a GBP 120.0 million bullet term GSWXWEWI\TPEMRIHMRXLIVIPIZERXWIGXMSR enhancement of the platform. In 2020, loan and a GBP 160.0 million revolving loan on development and acquisition costs HIZIPSTQIRXI\TIRHMXYVISJ+&4 facility, both repayable at the end of the SJɸMRXERKMFPIEWWIXWEFSZI (2019: GBP 25.0) million was capitalised. three-year facility term on 23 July 2022. The decrease in costs capitalised when %WEXɸ(IGIQFIV+&4 3XLIVWMKRMƼGERXGEWLQSZIQIRXWHYVMRK compared to the prior year is due to the (2019: GBP 225.4) million of the facilities 2020 were the repayment of GBP 115.1 planned reduction in employee headcount, was utilised out of a total of GBP 280.0 (2019: GBP 92.8) million of borrowings. and consultants during 2020, as well as (2019: GBP 280.0) million. See note 20 During 2019, there were also drawdowns slightly lower levels of capitalisation than SRɸTEKIWERHJSVQSVIMRJSVQEXMSR of GBP 130.0 million, whilst there were I\TIGXIH(YVMRKXLMWHIZIPSTQIRXMW For more information on the movements no such drawdowns in 2020. A dividend HVMZMRKIGSRSQMGFIRIƼXXLVSYKLEHETXMRK in borrowings in the year, see the cash totalling GBP 112.5 million was also paid to local licensing requirements, customer ƽS[WIGXMSR SYXHYVMRKLS[IZIVEWI\TPEMRIH I\TIVMIRGIMQTVSZIQIRXWHEXEEREP]XMGW further on page 46, the proposal by and information mining. Lease liabilities have decreased during the Board to pay out a dividend during XLIɸ]IEVEWVITE]QIRXWSJXLIPMEFMPMX] 2020 was withdrawn as a result of the Balance sheet EVISJJWIXF]MRXIVIWXJSVIMKRI\GLERKI uncertainty surrounding COVID-19. kindredgroup.com The Group retains a strong balance sheet movements and remeasurements of EXXLIIRHSJVIƽIGXMRKFSXLXLI WSQIɸSJXLIPIEWIPMEFMPMXMIWHYVMRKXLI]IEV The Group’s ability to generate strong Group’s growth and its ability to manage STIVEXMRKGEWLƽS[WXSKIXLIV[MXLXLI working capital. The Group is now in a Trade and other payables amounted to option to utilise the facilities it has available, net cash position of GBP 104.7 (2019: GBP 162.1 (2019: GBP 126.6) million KMZIWƽI\MFMPMX]JSVXLI+VSYTXSGSRXMRYIXS net debt position of GBP 155.0) million at EX(IGIQFIV8LIWMKRMƼGERX consider a range of strategic opportunities 31 December 2020 as a result of the strong increase from the prior year is a result of ERHQEREKIMXWɸPMUYMHMX]EGGSVHMRKP] VIWYPXWERHGEWLƽS[KIRIVEXMSRMR increased activity at the end of 2020 when and the Board’s decision to withdraw its compared to 2019, which has increased proposal to pay out a dividend during 2020. EGGVYEPPIZIPWJSVI\EQTPIMRVIPEXMSRXS 30 Kindred as an investment Strategic report Kindred is a leading global online gambling operator in a large and growing market. We are committed to continuing our growth journey in both Europe and the USA, the latter being an opportunity which will be prioritised in the coming years. Our size, solid track record of growth and structured approach to sustainability have provided us with economies of scale and the ability Governance to deliver sustainable profitable growth and strong cash flows.

A large and growing underlying market A solid foundation for continued VIUYMVIHXSGETMXEPMWISRXLMWWMKRMƼGERX Kindred operates in the global online QTSLYJWRUWTܪYFGQJLWT\YM growth opportunity. Kindred entered gambling market which includes live Kindred has a track record of strong XLI97ɸQEVOIXMRERHLEWEPVIEH] and pre-game sports betting, casino & VIZIRYIKVS[XL[MXLE'%+6SJɸTIVɸGIRX established a foothold in the market in Financial statements games, poker and bingo. Sports betting between 2010 and 2020, which can be 2020, reaching GBP 23.8 million in Gross and casino & games are the two largest compared with 111 per cent for the global winnings revenue. This is a modest product segments and estimated to make online market. The global online market ɸTIVGIRXSJ/MRHVIHƅWXSXEPVIZIRYIW up 491 and 281 per cent respectively of is relatively resilient to macroeconomic but a substantial increase from the the total global online market. Total Gross development, which can be illustrated by +&4ɸQMPPMSRMR3YVWXVEXIK]MR winnings revenue for the global online an estimated 111 per cent growth in 2020 XLI97%MWJSGYWIHSRSVKERMGI\TERWMSR gambling market was estimated to be over despite the pandemic’s negative effect on entering states where we can achieve a GBP 53 billion1MR[MXLERI\TIGXIH the world economy. The accelerated shift to meaningful market share and where entry Other information compounded annual growth rate (CAGR) online gambling, regulatory developments costs are reasonable. Our immediate of 91 per cent between 2020 and 2025. and M&A activities create opportunities JSGYWMWSRI\TERWMSRMRXLI2SVXLIEWX The rapid growth rate can be largely for Kindred to grow and continue to gain and Midwest regions, while we continue EXXVMFYXIHXSXLIWLMJXJVSQSƿMRIXSSRPMRI market share. Kindred’s large customer XSI\TPSVIWIPIGXMZISTTSVXYRMXMIWEGVSWW gambling, a trend that has accelerated base, strong market position and technical the USA. As of February 2021, we have in the wake of the COVID-19 pandemic. platform capacity are the solid foundations conditional access to up to 12 states, The online gambling market was estimated required for seizing these opportunities. covering one third of the US population. at 201 per cent of the total global market The transformation to locally regulated 3YVEQFMXMSRMWXSFIPMZIMRWM\WXEXIW in 2020. The market is also characterised QEVOIXWGSRXMRYIWERH[IEVIGSRƼHIRX F]ɸXLIIRHSJERHXSKVS[XLI97% by fragmentation, consolidation and the that these markets will allow for solid and into one of Kindred’s largest markets in trend of more countries moving towards sound long-term growth. Kindred has XLIɸRI\XGSYTPISJ]IEVW PSGEPVIKYPEXMSRXSTVSXIGXXE\MRGSQIERH delivered on its strategic aim of sustainable address harmful gambling habits. In 2020, growth as our share of Gross winnings Determined focus on sustainability some 691 per cent of the total global market revenue from locally regulated markets Sustainability is a way of life at Kindred. value is estimated to have originated from has increased from around 31 per cent in Our ambition is to ensure that our regulated markets. XSTIVGIRXMRERH[II\TIGX operations always meet the highest this to increase going fowards. In addition, professional, compliance and ethical One of the world’s leading we have completed, on average, one M&A standards. Kindred’s focus on sustainability TSQNSJ࣢LFRGQNSLTUJWFYTWX\NYM transaction per year to support our organic GSRXVMFYXIWXSPSRKXIVQTVSƼXWVIHYGIW F࣢IN[JWXNܪJIGZXNSJXXRTIJQ KVS[XLERH[II\TIGXXLMWEGXMZMX]XS volatility and uncertainty, and strengthens Kindred is the world’s fourth largest continue in the future. our ability to attract and retain the best online gambling operator in terms of talent. It also allows close cooperation Gross winnings revenue and has nearly Well positioned to grow the US with regulators and other key institutions. 30 million registered customers across NSYT࣢TSJ࣢TKTZWQFWLJXYRFWPJYX Our efforts have been awarded because in QER]GSYRXVMIW3YVVIZIRYIMWHMZIVWMƼIH Although Europe is our home market, and /MRHVIH+VSYTFIGEQIXLIƼVWXSRPMRI both from a product and a geographical WXMPPSJJIVWWMKRMƼGERXKVS[XLSTTSVXYRMXMIW operator to receive the environmental, perspective, which provides a stable for Kindred, we have a clear objective to social and governance rating “AAA” from base and multiple growth opportunities. also increase revenues in other markets. MSCI and, since 2019, our environmental, By utilising Kindred’s strong brands and In 2020, almost USD 3 billion2 of the social and governance commitments attractive products across our markets, global online market is estimated to have have been audited every year by eCOGRA Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred [IɸGSRXMRYIXSKVS[SYVGYWXSQIVHEXEFEWI originated from the USA, while this only GSRƼVQMRKSYVGSQTPMERGI[MXL)9 and gain market share. Through our amounts to around 4 per cent of the global recommendations. In 2018, we informed data-driven approach and strong focus online market it also represents nearly XLIQEVOIXEFSYXSYVɸWIGXSVPIEHMRK SRɸGYWXSQIVI\TIVMIRGISYVSFNIGXMZIMW triple the amount of USD 1 billion2 for 2019. approach to responsible gambling with the XSɸVIXEMRSYVGYWXSQIVWSZIVEPSRKTIVMSH %WQSWXWXEXIWEVII\TIGXIHXSSTIRYT ambition of having zero per cent of our of time and build sustainable relationships. for online gambling in the coming years, revenues from harmful gambling in 2023. Kindred’s strong market position also XLIQEVOIXMWI\TIGXIHXSKVS[VETMHP] At the beginning of 2021, we also became makes it possible for Kindred to take an with estimates that the value of the US XLIƼVWXGSQTER]MRXLIMRHYWXV]XSTYFPMGP] active role in consolidation of the large, and online gambling market could be almost announce our current share, something still fragmented, online gambling industry. USD 11 billion3 by 2025. The market clearly we will continue to do on a quarterly basis, has the potential to be the world’s largest as well as the efforts being undertaken to online gambling market and Kindred has achieve this ambition. the products, processes and resources

31 Kindred as an investment continued

&UWTܪYFGQJGZXNSJXXRTIJQ\NYM has generated GBP 316.0 million of free XYWTSL࣢ZSIJWQ^NSLHFXMܫT\LJSJWFYNTS GEWLƽS[8LIWXVSRKFEPERGIWLIIXERH Kindred has a track record of delivering GEWLƽS[KIRIVEXMSREPPS[WGSRXMRYIH TVSƼXEFMPMX]ERHWXVSRKGEWLƽS[W investments in organic growth in both The strategic focus on core markets Europe and the US and also provides and increased cost control, resulted in ƼRERGMEPWXVIRKXLXSTYVWYIWIPIGXMZI EWSPMHƼRERGMEPVIWYPXMR[MXLER acquisitions. As a result of the strong EBITDA-margin of 24 per cent. Our leading GEWLƽS[W/MRHVIHƅWHMZMHIRHTSPMG]MW position and size mean we can scale to generate stable ordinary dividends in operations and invest in the marketing absolute GBP-denominated terms that and technology that is required to support are complemented with share purchases. JYVXLIVTVSƼXEFPIKVS[XLIWTIGMEPP]MR The total pay-out ratio of dividends and PSGEPP]VIKYPEXIHQEVOIXW[LIVIXE\IWERH share purchases should over time equal operating costs are higher. A large part ETTVS\MQEXIP]TIVGIRXSJJVIIGEWLƽS[ of Kindred’s cost base is also variable, which allows us to make short-term cost For more information about the shares, adjustments when changes occur in the WIIɸTEKIWXS business environment, something we saw in the wake of the pandemic in 2020. Sources: Kindred has a track record of generating 1 H2GC 1 Jan 2021 WXEFPIPSRKXIVQTVSƼXQEVKMRWERH 2 Eilers & Krejcik absorbing short-term regulatory headwinds 3 VIXIO Gambling Compliance and increased betting duties as the share of locally regulated revenues has continued to grow. During the last two years, Kindred

Kindred Group Share price

Closing price SEK Total volume thousands 160 320,000 Closing price Total volume

120 240,000

80 160,000

40 80,000

0 0 2019 2019 2019 2019 2020 2020 2020 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 March

Source: Nasdaq Stockholm kindredgroup.com

32 Introduction to governance Strategic report The Group has three decision-making bodies in a hierarchical relationship with one another: the Shareholders’ meeting, the Board of Directors and the Chief Executive Officer. Governance Shareholders’ meeting and 6IKEVHPIWWSJLS[XLI]EVIETTSMRXIH Remuneration Committee &SSZFQ࣢,JSJWFQ2JJYNSL members of the Nomination Committee The Remuneration Committee considers and The Shareholders’ meeting is the Group’s EVIɸXSTVSQSXIXLIMRXIVIWXWSJEPP evaluates remuneration arrangements for highest decision-making body and a forum WLEVILSPHIVW1IQFIVWEVIRSXXS senior managers and other key employees JSVWLEVILSPHIVWXSI\IVGMWIMRƽYIRGI reveal the content and details of ERHQEOIWVIGSQQIRHEXMSRWXSXLI&SEVH The Shareholders’ meeting can decide on RSQMREXMSRHMWGYWWMSRW any Group issue which does not expressly The Remuneration Committee report fall within the exclusive competence of Regular and systematic evaluation GERɸFIJSYRHSRTEKIWXS Financial statements ERSXLIVGSVTSVEXIFSH]-RSXLIV[SVHW forms the basis for assessment of the the Shareholders’ meeting has a sovereign TIVJSVQERGISJXLI&SEVHXLI'LMIJ Audit Committee VSPIɸSZIVXLI&SEVHSJ(MVIGXSVWERHXLI )\IGYXMZI3ƾGIVERHXLIGSRXMRYSYW The Audit Committee advises and 'LMIJ)\IGYXMZI3ƾGIV HIZIPSTQIRXSJXLIMV[SVO QEOIWVIGSQQIRHEXMSRWXSXLI&SEVH SRQEXXIVWMRGPYHMRKƼRERGMEPVITSVXMRK According to the Swedish Corporate The Nomination Committee report can MRXIVREPGSRXVSPWVMWOQEREKIQIRXERH +SZIVRERGI'SHIXLIGSRXVSPFSH]MW FIJSYRHSRTEKI8LI2SQMREXMSR XLIETTSMRXQIRXSJWXEXYXSV]EYHMXSVW XLIɸWXEXYXSV]EYHMXSV[LMGLMWETTSMRXIH Committee’s Motivated Opinions 8LIVSPIɸSJXLI'SQQMXXIIMWWIXSYXMR Other information F]ɸXLI7LEVILSPHIVWƅQIIXMRK GERFIɸJSYRHSRXLI+VSYTƅW[IFWMXI MXWɸ[VMXXIRXIVQWSJVIJIVIRGI [[[OMRHVIHKVSYTGSQ Each shareholder has the right to The Audit Committee report can be participate in the Shareholders’ meeting Board of Directors JSYRHɸSRTEKI and to vote according to the number of Kindred Group plc is incorporated and WLEVIWS[RIH7LEVILSPHIVW[LSEVIRSX registered in Malta but listed on Nasdaq (MNJK*]JHZYN[J4KܪHJWFSI able to attend in person can exercise their Stockholm and therefore has decided *]JHZYN[J࣢(TRRNYYJJ VMKLXWF]TVS\] to apply the principles of the Swedish 8LI'LMIJ)\IGYXMZI3ƾGIVMWVIWTSRWMFPI 'SVTSVEXI+SZIVRERGI'SHI8LMWWXEXIW for the Group’s day-to-day management Minutes from the Shareholders´ meetings that a majority of the members of the XSKIXLIV[MXLXLI)\IGYXMZI'SQQMXXII can be found in the AGM & EGM section &SEVHEVIXSFIMRHITIRHIRXSJXLI+VSYT The Executive Committee consists of SRɸ[[[OMRHVIHKVSYTGSQ its management and the Group’s major XLIɸ')3ERHRMRIWIRMSVSƾGIVWSJ WLEVILSPHIVW8LI/MRHVIH+VSYTƅW&SEVH [LSQɸX[SEVI[SQIR *SVQSVIMRJSVQEXMSREFSYXXLI%+1 SJ(MVIGXSVWMWGSQTSWIHIRXMVIP]SJRSR WIITEKI I\IGYXMZI(MVIGXSVWSJ[LSQXLIQENSVMX] Statutory auditor EVIMRHITIRHIRX8LI&SEVHMWVIWTSRWMFPI The Group’s statutory auditor is Nomination Committee JSVXLI+VSYTƅWSZIVEPPWXVEXIK]ERHHMVIGXMSR appointed by the Shareholders’ meeting The principal tasks of the Nomination to examine the Group’s annual accounts Committee are to propose decisions to ERHEGGSYRXMRKTVEGXMGIW8LIWXEXYXSV] the Shareholders’ meeting on election auditor presents their annual audit report and remuneration issues concerning the XSɸXLI%YHMX'SQQMXXIIERHXLI&SEVH &SEVHSJ(MVIGXSVWERHTVSGIHYVEPMWWYIW as well as to the owners at the Annual for the appointment of the following year’s +IRIVEP1IIXMRK 2SQMREXMSR'SQQMXXII

Corporate governance model Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred Shareholders Nomination by the AGM Committee

Remuneration Committee External Board of auditor Directors Audit Committee

CEO and Executive Internal Committee Audit

33 Board of Directors An experienced team, committed to high standards of corporate governance.

8LI/MRHVIH+VSYT&SEVHSJ(MVIGXSVW 8LIQIRXMSRIH7[IHMWL(ITSWMXEV]6IGIMTX GSQTVMWIWERI\TIVMIRGIHXIEQGSQQMXXIH 7(6 LSPHMRKWMRGPYHITIVWSREPLSPHMRKW to high standards of corporate governance family holdings and holdings through ERHXSMXWEGGSYRXEFMPMX]XSWLEVILSPHIVW GSQTERMIWMR[LMGL(MVIGXSVWLEZIɸER MRXIVIWXEWEX*IFVYEV]

%PPQIQFIVWI\GITX%RHIVW7XVʯQEVI MRHITIRHIRXSJXLI+VSYTMXWQEREKIQIRX ERHQENSVWLEVILSPHIVWSJXLI+VSYT

7[IHMWLGMXM^IR Current assignments &SVR*SYRHIVSJ/MRHVIH Founder of Kindred Group +VSYTMRERH&SEVHQIQFIV XLIRɸ9RMFIX+VSYT MR WMRGIMRGSVTSVEXMSR ERHɸ'SJSYRHIVSJ/EQFM 7TSVXWɸ7SPYXMSRWMR Holdings &SEVHQIQFIVSJ:IVEPHE%& /MRHVIH+VSYTTPG7(6W ERHɸVIPEXIHGSQTERMIW XLVSYKLGSQTER] &SEVHQIQFIVSJ/EQFM+VSYT WMRGI

Previous assignments ,IEHSJ&YWMRIWW(IZIPSTQIRX SJɸ9RMFIX+VSYT Anders Ström ')3SJ9RMFIX+VSYT 'LEMVQERSJXLI&SEVH

97GMXM^IR Current assignments &SVR&SEVHQIQFIV &SEVHQIQFIVSJ WMRGIɸ-RHITIRHIRX 'ERXVE]FVMHKI8VYWX

Holdings Previous assignments /MRHVIH+VSYTTPG7(6W 4VIWMHIRXERH')3SJ2(17-RG 1EREKMRK(MVIGXSVSJ&VS[R (MVIGXɸ-RG &SEVHQIQFIVSJ3KMPZ] 1EXLIV (MVIGX4PG 4VIWMHIRXERH')3SJɸ+VI](MVIGX Peter Boggs ;SVPH[MHI &SEVHQIQFIVQIQFIVSJ XLIɸ6IQYRIVEXMSR'SQQMXXII

7[IHMWLGMXM^IR Current assignments &SVR&SEVHQIQFIV 'LEMVTIVWSRSJXLI&SEVH WMRGIɸ-RHITIRHIRX JSVɸ8IEQɸ3PMZME+VSYT%& ERHɸ6YXIVHEQ Holdings &SEVHQIQFIVSJ7[IGS%& /MRHVIH+VSYTTPG7(6W (YWXMR%&

kindredgroup.com Previous assignments 4VIWMHIRXSJ)(72SVXL)YVSTI :EVMSYWVSPIWEX-&1

Gunnel Duveblad (ITYX]'LEMVTIVWSRSJ XLIɸ&SEVH'LEMVTIVWSR SJɸXLIɸ%YHMXɸ'SQQMXXII

34 Strategic report Governance Financial statements

7[IHMWLGMXM^IR Current assignments &SVR&SEVHQIQFIV 'LEMVQERSJXLI&SEVH WMRGIɸ-RHITIRHIRX SJɸ'SPPIGXMEɸ%7 Other information &SEVHQIQFIVSJɸ7XMPPJVSRX Holdings +VSYTɸ%&ɸ TYFP /MRHVIH+VSYTTPG7(6W Previous assignments '*3SJ-RXVYQ TYFP '*3SJ'MWMSR TYFP &YWMRIWW%VIE'*3ERH+VSYT Treasurer at EF Education Group Erik Forsberg &SEVHQIQFIVQIQFIV SJɸXLIɸ%YHMX'SQQMXXII

7[IHMWLGMXM^IR Current assignments &SVR&SEVHQIQFIV ')3SJ-ZIV+VSYTWMRGI WMRGIɸ-RHITIRHIRX &SEVHQIQFIVSJɸ)RIRXS+VSYTTPG WMRGI Holdings /MRHVIH+VSYTTPG7(6W Previous assignments A number of global roles within )VMGWWSR%& 4VIWMHIRXERH')3SJ%GERHS%&

Carl-Magnus Månsson &SEVHQIQFIV'LEMVQERSJ XLIɸ6IQYRIVEXMSR'SQQMXXII 2020 Accounts and Report Annual plc Group Kindred

3R(IGIQFIV7XIJER0YRHFSVKVIWMKRIHJVSQLMWVSPIEWRSRI\IGYXMZI(MVIGXSVEX/MRHVIH+VSYT[MXLMQQIHMEXIIJJIGX 35 Executive Committee Kindred Group’s Executive Committee consists of the CEO and nine senior officers; seven male and two female.

Henrik Tjärnström Nils Andén Elena Barber Britt Boeskov Erik Bäcklund CEO Chief Commercial Chief Marketing Chief Experience Chief Product 3JJMGIV 6IKMSR Officer Officer Officer

7[IHMWLGMXMÎR 7[IHMWLGMXMÎR 6YWWMERERH&VMXMWL (ERMWLGMXMÎR 7[IHMWLGMXMÎR &SVR &SVR GMXMÎR&SVR &SVR &SVR 17GMR-RHYWXVMEP Studied marketing (IKVIIMR1EVOIXMRKERH Master’s degree &%MR1SHIVR0ERKYEKIW Engineering and at the Stockholm Advertising from the in Management ERH-RXIVREXMSREP Management from School of Economics -RXIVREXMSREP%GEHIQ] from Copenhagen &YWMRIWWJVSQ0SRHSR XLIɸ-RWXMXYXISJ and Sociology at SJ&YWMRIWWERH &YWMRIWW7GLSSP 7SYXL&ERO9RMZIVWMX] 8IGLRSPSK]0MROʯTMRK 7XSGOLSPQ9RMZIVWMX] 1EREKIQIRXMR1SWGS[ 9RMZIVWMX]7[IHIR &VMXXNSMRIH/MRHVIH Erik joined Kindred Nils joined Kindred Elena has worked in Group as a management +VSYTMRERH ,IRVMONSMRIHXLI&SEVH Group in July 2020 as the online gambling XVEMRIIMRERH was responsible for SJ(MVIGXSVWSJ/MRHVIH 'LMIJ'SQQIVGMEP3ƾGIV MRHYWXV]JSVSZIV has served on the the Sportsbook PR +VSYT XLIR9RMFIX JSV6IKMSR,ILEW ]IEVW,EZMRKLIPHE Executive Management bets area before being +VSYT MRERH worked at Kindred in the number of key marketing XIEQWMRGIɸ appointed Chief Product [EWTEVXSJXLI&SEVH TEWXLSPHMRKERYQFIV TSWMXMSRWWLIRS[ Since January 2019 3ƾGIV]IEVWPEXIVMR until he was appointed of positions between leads Kindred’s Global she has led Kindred ,IXSSOYTXLI 'LMIJ*MRERGMEP3ƾGIV 2006-2016 as Head Marketing Services Group’s customer role as Group Head of MRERH')3MR of Poker and Head of XIEQ)PIRENSMRIH centric efforts as 7TSVXWFSSOMR &IJSVINSMRMRKXLI Established Markets Kindred Group in 'LMIJɸ)\TIVMIRGI3ƾGIV Erik also oversaw /MRHVIH+VSYTLI[EW before spending the ERHTVMSVXSLIV 4VIZMSYWP]WLIQEREKIH WMKRMƼGERXMRLSYWI employed as Senior ƼREPJSYV]IEVWEW'LMIJ appointment as Chief /MRHVIH+VSYTƅWɸSRPMRI initiatives across the Financial Manager at 1EVOIXMRK3ƾGIVJSVXLI 1EVOIXMRK3ƾGIVWLIPIH and mobile gambling FYWMRIWWMRGPYHMRK 7OERWOE-RJVEWXVYGXYVI 9RMFIXFVERH2MPWLEW /MRHVIHƅW'IRXVEP&VERH TVSHYGXWERHɸPIHWXVEXIKMG the development and (IZIPSTQIRX%&JVSQ also held positions as 1EVOIXMRKJYRGXMSR and transformational launch of the successful XS 'LMIJ1EVOIXMRK3ƾGIV GLERKIJSVXLI+VSYT proprietary Kindred at CurrencyFair and Holding:/MRHVIH 6EGMRK4PEXJSVQ4VMSV Holding: EW(MVIGXSVSJ(MKMXEP +VSYTTPG7(6ERH Holding: /MRHVIH XSɸNSMRMRK/MRHVIH+VSYT Kindred Group plc Marketing at GVC TIVJSVQERGI +VSYTTPG7(6ERH he worked for Kaos 7(6ERH +VSYT,IGYVVIRXP] WLEVIVMKLXW TIVJSVQERGI )RXIVXEMRQIRX0XHERH performance WMXWSRXLI&SEVHSJ WLEVIVMKLXW 7MIQIRW%+ WLEVIVMKLXW )EW]4EVO+VSYT Holding: 0 Kindred Holding: 0 Kindred +VSYTTPG7(6ERH +VSYTTPG7(6ERH TIVJSVQERGI TIVJSVQERGI WLEVIVMKLXW WLEVIVMKLXW kindredgroup.com

36 Strategic report 8LI'LMIJ)\IGYXMZI3ƾGIVMWVIWTSRWMFPI 8LIQIRXMSRIH7[IHMWL(ITSWMXEV]6IGIMTX JSVXLI+VSYTƅWHE]XSHE]QEREKIQIRX holdings include personal holdings and XSKIXLIV[MXLXLI)\IGYXMZI'SQQMXXII JEQMP]LSPHMRKWEWEX*IFVYEV] Governance Financial statements

Gavin Hayward Ewout Keuleers Marcus Smedman Anne-Jaap Snijders Johan Wilsby Other information Chief HR Officer 'LMIJ0IKEP Chief Technology Chief Commercial Chief Financial Compliance Officer Officer 3JJMGIV 6IKMSR Officer

&VMXMWLGMXMÎR&SVR &IPKMERGMXMÎR 7[IHMWLGMXMÎR (YXGLGMXMÎR 7[IHMWLGMXMÎR ,MKLIV2EXMSREP(MTPSQE &SVR &SVR &SVR &SVR MR&YWMRIWWERH 0E[HIKVIIJVSQXLI Studied Electronics 17GMR)GSRSQMGW MSc in Finance and *MRERGIERHE4SWX 'EXLSPMG9RMZIVWMX] ERHɸ'SQTYXIV7GMIRGI WTIGMEPMWEXMSR1EVOIXMRK Marketing from the +VEHYEXI(MTPSQEMR SJ0IYZIR &IPKMYQ EX9TTWEPE9RMZIVWMX] Stockholm School HR Management from ERH()77SRPE[ERH Anne-Jaap has worked SJ)GSRSQMGW 1ERGLIWXIV9RMZIVWMX] management of new Marcus has been a part for over 20 years in XIGLRSPSKMIW &IPKMYQ of the Kindred Group WTSVXWQIHMEERHSRPMRI Johan has been the Gavin has over 30 WMRGI7MRGIXLIR KEQFPMRK-RLI CFO for Kindred Group years of HR experience )[SYXLEWSZIV]IEVW he has held various joined Kindred Group WMRGI7ITXIQFIV gained in a variety of of experience in the VSPIWEW8IEQ0IEHIV to work as Marketing He was previously CFO WIGXSVW+EZMR[EW SRPMRIKEQFPMRKMRHYWXV] ,IEHSJ(IZIPSTQIRX Manager for Western for tech companies such appointed CHRO of He joined Kindred Group Australia and Head of )YVSTI,ILEWWMRGI EW8SFMM*MRKIVTVMRX the Kindred Group in in 2006 and prior to his (IZIPSTQIRX+PSFEP been General Manager 'EVHWERH8VERWQSHI &IJSVINSMRMRK current position was the -R.ERYEV] JSV&IPKMYQ+IVQER] Prior to these CFO roles XLI/MRHVIH+VSYT +VSYTƅW+IRIVEP'SYRWIP Marcus was appointed Romania and Australia Johan held a number of Gavin was part of ,IMWEɸVIKMWXIVIH CTO responsible for before taking on his ƼRERGIPIEHIVWLMTVSPIW Siemens plc over a WSPMGMXSV[MXLXLI0E[ Kindred’s Tech strategy GYVVIRXVSPI%RRI.EET at Microsoft and Hewlett TIVMSHSJXIR]IEVW Society of England ERHSTIVEXMSRWKPSFEPP] MWFEWIHMR1EPXE Packard over a period of ,ILEW[SVOIHEX&SEVH and Wales and is a Marcus has worked in ]IEVW level within multisite QIQFIVSJXLI-RWXMXYXI XLI-8MRHYWXV]WMRGI Other assignment: and multinational of Risk Management XLIQMHW[SVOMRK 2SRI\IGYXMZI(MVIGXSV Holding:/MRHVIH organisations and as well as holding EWE.EZEHIZIPSTIV 6IPE\+EQMRK0XH +VSYTTPG7(6ERH has worked with HR HYEPUYEPMƼGEXMSRW XIEQPIEHHIZIPSTQIRX TIVJSVQERGI management at both YRHIVFSXLɸGMZMP QEREKIVERHQSVI Holding: /MRHVIH WLEVIVMKLXW strategic and operational &IPKMEREXXSVRI] ERH +VSYTTPG7(6ERH PIZIP+EZMRMWE*IPPS[ GSQQSRɸPE[ WSPMGMXSV Holding:/MRHVIH TIVJSVQERGI 2020 Accounts and Report Annual plc Group Kindred of the Chartered +VSYTTPG7(6ERH WLEVIVMKLXW -RWXMXYXISJ4IVWSRRIP Other assignment: TIVJSVQERGI ERH(IZIPSTQIRX 2SRI\IGYXMZI(MVIGXSV WLEVIVMKLXW -RXIVREXMSREP&IXXMRK Holding:/MRHVIH -RXIKVMX]%WWSGMEXMSR +VSYTTPG7(6ERH -&-% ERHXLI)YVSTIER TIVJSVQERGI Association for the Study WLEVIVMKLXW SJ+EQFPMRK )%7+

Holding:/MRHVIH +VSYTTPG7(6ERH TIVJSVQERGI WLEVIVMKLXW

37 Corporate governance statement Kindred Group plc is the parent company of the Group, incorporated and registered in Malta and listed on Nasdaq Stockholm through Swedish Depositary Receipts issued by Skandinaviska Enskilda Banken AB (publ).

Foreign companies whose shares or 8LI/MRHVIH+VSYTƅW&SEVHSJ(MVIGXSVW The terms of reference also address depositary receipts are admitted to MWɸGSPPIGXMZIP]VIWTSRWMFPIJSVXLIWYGGIWWSJ &SEVHTSPMGMIWERHTVSGIHYVIWMRVIPEXMSR trading on a regulated market in Sweden XLI+VSYTERHJSVMXWGSVTSVEXIKSZIVRERGI XSGSRƽMGXWSJMRXIVIWXXLEXQE]EVMWIMR are required to apply either the Swedish 8LI&SEVHEMQWXSTVSZMHIIRXVITVIRIYVMEP VIPEXMSRXSER](MVIGXSVMRGPYHMRKXLIXMQIP] Code of Corporate Governance or the leadership of the Group within a framework HMWGPSWYVIXSXLISXLIV(MVIGXSVWSJER] corporate governance code in force in SJTVYHIRXERHIJJIGXMZIɸƼRERGMEP TSXIRXMEPGSRƽMGXSJMRXIVIWX%(MVIGXSV the country in which the company has GSRXVSPWXLEXIREFPIVMWOWɸXSFIEWWIWWIH [LSLEWERMRXIVIWXXLEXQE]FIMRGSRƽMGX MXWɸVIKMWXIVIHSƾGI ERHQEREKIH with the interest of the Company may RSXTEVXMGMTEXIMRXLI&SEVHƅWLERHPMRK -JXLIKVSYT MRGPYHMRKXLIGSQTER] HSIW %WSYXPMRIHSRTEKIWERHXLI SJXLIQEXXIVQIERMRKXLEXXLI]QE] RSXETTP]XLI7[IHMWL'SHIMXQYWXɸMRGPYHI &SEVHGSQTVMWIWXLI'LEMVQERERHJSYV RSXTEVXMGMTEXIMRXLIZSXMRKRSVFI a statement describing in which important (MVIGXSVW8LI7[IHMWL'SHIMHIRXMƼIWXLI TVIWIRXEXɸXLIQIIXMRKHYVMRKWYGLER aspects the group’s conduct deviates from fundamental importance of independent EKIRHEMXIQɸSVTEVXMGMTEXIMRXLI&SEVHƅW XLI7[IHMWL'SHI RSRI\IGYXMZI(MVIGXSVWMRIRWYVMRKXLI HIPMFIVEXMSRW7YGLE(MVIGXSVWLEPPFI SFNIGXMZIFEPERGISJE&SEVHERHWIXWSYX considered absent when determining 8LI/MRHVIH+VSYTƅW&SEVHSJ(MVIGXSVW criteria to be considered in determining the [LIXLIVXLI&SEVHMWUYSVEXI HIGMHIHJVSQXLIƼVWXPMWXMRKHEXISRXLI MRHITIRHIRGISJRSRI\IGYXMZI(MVIGXSVW 2EWHEU7XSGOLSPQEWJEVEWMWTVEGXMGEP -REGGSVHERGI[MXL4VSZMWMSRSJXLI 8LI&SEVHEPWSLEWETVSGIWWJSV XSɸETTP]XLITVMRGMTPIWSJXLIɸ7[IHMWL'SHI 7[IHMWL'SHIXLI&SEVHGSRWMHIVWXLI ETTVSZEPɸSJVIPEXIHTEVX]XVERWEGXMSRW RSRI\IGYXMZI(MVIGXSVW4IXIV&SKKW MRɸEGGSVHERGI[MXLXLIRI[)9 8LIJSPPS[MRKWXEXIQIRXSRTEKIW +YRRIP(YZIFPEH)VMO*SVWFIVKERH 7LEVILSPHIVW6MKLXW(MVIGXMZIƈ76(--Ɖ XSɸɸLEWRSXFIIREYHMXIH Carl-Magnus Månsson to be independent SJXLI+VSYTMXWQEREKIQIRXERHXLI 8LI&SEVHLEWEWXERHEVHEKIRHE The Board of Directors +VSYTƅWQENSVWLEVILSPHIVW%RHIVW7XVʯQ including receiving and considering 8LI&SEVHSJ(MVIGXSVWERHXLIQEREKIQIRX MW'LEMVQERSJXLI&SEVHERHMWEPWSE VITSVXWɸJVSQXLI'LMIJ)\IGYXMZI3ƾGIVERH of the Kindred Group are structured in QIQFIVSJXLI&SEVHSJ/EQFM+VSYTTPG XLI'LMIJ*MRERGMEP3ƾGIV '*3 ERHJVSQ accordance with the European two-tier &VMIJVʣWYQʣWSJXLI&SEVHQIQFIVWGER XLI%YHMXERH6IQYRIVEXMSR'SQQMXXIIW W]WXIQ[MXLE'LMIJ)\IGYXMZI3ƾGIV FIɸJSYRHSRTEKIWERH ;LIVIETTVSTVMEXIQEXXIVWEVI ')3 [LSMWWYFSVHMREXIXSXLI&SEVH delegated to the Audit and Remuneration SJ(MVIGXSVW[LMGLMWMRXYVRIPIGXIHEXɸXLI 8SIRWYVIIJJIGXMZIRIWWXLI&SEVHƅW Committees and reports on their activities %RRYEP+IRIVEP1IIXMRK GSQTSWMXMSRFVMRKWXSKIXLIVEɸFEPERGI EVIMRGPYHIH[MXLMRXLMWɸ'SVTSVEXI of skills and experience appropriate KSZIVRERGIWXEXIQIRX 8LIJSPPS[MRK(MVIGXSVWIPIGXIHEXXLI%+1 XSXLIVIUYMVIQIRXWSJXLIFYWMRIWW on 12 May 2020 served during the year 8LIGSQTSWMXMSRSJXLI&SEVHERH (MFNWRFSѣXWJXUTSXNGNQNYNJX ERHɸWYFWIUYIRXP]YRPIWWSXLIV[MWIWXEXIH recommendations for the appointment The Chairman is responsible for the SJɸ(MVIGXSVWEVIHIEPX[MXLF]XLI PIEHIVWLMTSJXLI&SEVHWIXXMRKMXW Anders Ström Nomination Committee and its EKIRHEɸXEOMRKJYPPEGGSYRXSJXLI Chairman EGXMZMXMIWɸEVIWIXSYXSRTEKI MWWYIWɸERHGSRGIVRWSJ&SEVHQIQFIVW ensuring effective communication with Peter Boggs 8LI&SEVHMWVIWTSRWMFPIXSXLI WLEVILSPHIVWXEOMRKXLIPIEHSR(MVIGXSV Non-executive shareholders for the Group’s overall MRHYGXMSRERHHIZIPSTQIRXIRGSYVEKMRK WXVEXIK]ERHHMVIGXMSR EGXMZIIRKEKIQIRXF]EPP(MVIGXSVW ,ZSSJQ)Z[JGQFI and ensuring that the performance of Non-executive 8LI'LMIJ)\IGYXMZI3ƾGIVMWVIWTSRWMFPI MRHMZMHYEPWERHSJXLI&SEVHEWE[LSPI JSVXLI+VSYTƅWHE]XSHE]QEREKIQIRX ERHɸMXW'SQQMXXIIWMWIZEPYEXIHVIKYPEVP] *WNP+TWXGJWL ƁɸYWYEPP]SRGIE]IEV Non-executive The working procedures of the 'TFWI࣢TK࣢)NWJHYTWX 8LI'LEMVQERIRWYVIWXLEXXLI&SEVHMW 8YJKFS1ZSIGTWL The Group’s governance principally lies with WYTTPMIH[MXLEGGYVEXIXMQIP]ERHGPIEV Non-executive XLI&SEVH[LMGLMWVIWTSRWMFPIJSVWIXXMRKXLI MRJSVQEXMSR(MVIGXSVWEVIIRGSYVEKIHXS overall Group strategy and direction including YTHEXIXLIMVORS[PIHKISJERHJEQMPMEVMX] (FWQ2FLSZX2उSXXTS FYHKIXGETMXEPWXVYGXYVIQEXIVMEPGSRXVEGXW [MXLXLI+VSYTXLVSYKLQIIXMRKW[MXL Non-executive EGUYMWMXMSRWHMWTSWEPWNSMRXZIRXYVIW WIRMSVQEREKIQIRX8LIVIMWERMRHYGXMSR GSVTSVEXIKSZIVRERGIERH+VSYTTSPMGMIW TVSGIWWJSVRI[(MVIGXSVW 3R(IGIQFIV7XIJER0YRHFSVK resigned from his role as non-executive 8LI&SEVHERHMXWGSQQMXXIIWLEZI The Company Secretary together with (MVIGXSVEX/MRHVIH+VSYTɸ[MXL written terms of reference which XLI,IEHSJ-RZIWXSV6IPEXMSRWMWEPWS kindredgroup.com MQQIHMEXIIJJIGX MRGPYHIɸ[SVOMRKTVSGIHYVIW VIWTSRWMFPIJSVEHZMWMRKXLI&SEVHXLVSYKL XLI'LEMVQERSREPPGSVTSVEXIKSZIVRERGI The emoluments and interests of %XPIEWXSRGIE]IEVXLI&SEVHVIZMI[W QEXXIVW(MVIGXSVWEVIIRGSYVEKIHXS XLIɸ(MVIGXSVWEVIWLS[RSRTEKIW XLIɸVIPIZERGIERHETTVSTVMEXIRIWWSJ seek independent advice or training at ERHɸɸERHTEKI the terms of reference and the reporting XLIɸ+VSYTƅWI\TIRWI[LIVIXLMW[MPPEHH WXVYGXYVIERHMRWXVYGXMSRW XSɸXLIMVYRHIVWXERHMRKSJXLI+VSYTERH MRɸXLIJYVXLIVERGISJXLIMVHYXMIW

38 Strategic report %XPIEWXSRGIE]IEVXLI&SEVHSJ(MVIGXSVW 8ZXYFNSFGNQNY^ &SEVHLEZIFIIRWXVYGXYVIHMRWYGLE will review the strategy and visit some of 8LI&SEVHSJ(MVIGXSVWLEWIWXEFPMWLIH way to ensure a balanced and objective XLI+VSYTƅWSƾGIPSGEXMSRW8LI&SEVH relevant guidelines on the topic of VIZMI[SJXLI(MVIGXSVWƅTIVJSVQERGI LEWɸEWLSVXQIIXMRK[MXLSYXXLI')3 WYWXEMREFMPMX]JSVXLI+VSYT[MXLXLIEMQ *SPPS[MRKXLMWTIVJSVQERGIVIZMI[XLI SVɸ'*3EXɸIEGL&SEVHQIIXMRK of ensuring its long-term capacity for value Chairman is responsible for ensuring GVIEXMSR7YWXEMREFMPMX]JSVXLI/MRHVIH XLEXɸXLIETTVSTVMEXIEGXMSRWWYGLEW 8LI&SEVHSJ(MVIGXSVWLEWMWWYIH +VSYTLEWEɸRYQFIVSJHMJJIVIRXEWTIGXW XVEMRMRKEVIXEOIR [VMXXIRɸMRWXVYGXMSRWJSVXLI')3 Governance MRGPYHMRKɸEɸHIPIKEXMSRTSPMG] – Responsible gambling This evaluation has then been reported %XPIEWXSRGIɸE]IEVXLI&SEVHVIZMI[W XSXLI2SQMREXMSR'SQQMXXIIEWWMWXMRK – Maintaining integrity the relevance and appropriateness of MXMRMHIRXMJ]MRKERHIZEPYEXMRK&SEVH XLIɸMRWXVYGXMSRW[MXLɸXLI')3 – Running a compliant business TIVJSVQERGIGSQTIXIRGIMRHYWXV] ERHMRXIVREXMSREPI\TIVMIRGIHMZIVWMX] – &IMRK/MRHVIH The Board’s work during 2020 ERHI\TIVXMWI 8LI&SEVHERHMXW'SQQMXXIIWYWYEPP] – Contributing to our communities meet every second month throughout the 8LI&SEVHQSRMXSVWTSXIRXMEPGSRƽMGXWSJ Financial statements ]IEV8LIRYQFIVSJ&SEVHERH'SQQMXXII Corporate policies in each area have interest very closely and has implemented QIIXMRKWEXXIRHIHF]IEGLSJXLI(MVIGXSVW FIIRɸETTVSZIHF]XLI&SEVH GSRXVSPWERHTSPMGMIWXSEZSMHGSRƽMGXW during the year can be seen in the table of interest involving any of the Group’s FIPS[(YIXS'3:-(EPPQIIXMRKWLEZI 3RXLI)\IGYXMZI'SQQMXXIIXLI'LMIJ (MVIGXSVW8LIWIGSRXVSPWIRWYVIXLEXER] FIIRZMVXYEPWMRGI1EVGL ,63ƾGIVLEWI\IGYXMZIVIWTSRWMFMPMX] (MVIGXSV[MXLEHMVIGXSVMRHMVIGXMRXIVIWX JSVɸWYWXEMREFMPMX]7YWXEMREFMPMX]MWEVIKYPEV in a particular matter does not vote nor %XEPPQIIXMRKWXLI')3VITSVXWSRXLI EKIRHEMXIQJSVXLI%YHMX'SQQMXXII TEVXMGMTEXIMRXLI&SEVHƅWLERHPMRKSR FYWMRIWWHIZIPSTQIRXWERHSTIVEXMSRW allowing both for potential changes in XLEXɸQEXXIV6IEHQSVIYRHIVXLILIEHMRK Other information 8LI'LMIJ0IKEPERH'SQTPMERGI3ƾGIV policy or relevant regulation to be reviewed ƈ8LI[SVOMRKTVSGIHYVIWSJXLI&SEVH reports on legal trends in the gaming EPSRK[MXLWTIGMƼGTVSNIGXWERHMRMXMEXMZIW SJɸ(MVIGXSVWƉSRXLITVIZMSYWTEKI market and the Group Risk Manager reports ERRYEPP]SRXLIVMWOEWTIGXWSJXLIFYWMRIWW 8LI&SEVHVIGIMZIWVIKYPEVYTHEXIWSRXLI Remuneration and Directors’ %RRYEPP]XLI,IEHSJ-RXIVREP%YHMXVITSVXW QEXXIVJVSQXLI%YHMX'SQQMXXIIEW[IPP FSI࣢4KܪHJWXѣQNFGNQNY^NSXZWFSHJ XSXLI&SEVHGSRGIVRMRKOI]ƼRHMRKWERH as being involved in an annual review of The Annual General Meeting establishes VIGSQQIRHEXMSRWJSVXLI]IEV1IQFIVWSJ XLIɸ+VSYTƅWWYWXEMREFMPMX]TSPMGMIW the principles and the maximum amount the Executive Committee and other senior SJXLI&SEVH(MVIGXSVWƅJIIW%(MVIGXSV QEREKIVWEPWSEXXIRHQIIXMRKW[LIR For more information about sustainability GERHYVMRKEWLSVXTIVMSHSJXMQIWYTTP] VIPIZERXXSYTHEXIXLI&SEVHSRXLIMV [MXLMRXLI/MRHVIH+VSYTTPIEWIVIJIV GSRWYPXERG]WIVZMGIWFYXSRP]MJXLMWMW EVIEWSJVIWTSRWMFMPMX]ERHɸXSɸHMWGYWW XSTEKIWXSERHXLIWITEVEXI deemed more cost-effective and better JYXYVITPERW 7YWXEMREFMPMX]6ITSVXJSV UYEPMX]XLERER]I\XIVREPEPXIVREXMZI Any such consultancy fee is disclosed 8LIOI]MXIQWEVMWMRKEX&SEVHQIIXMRKW Evaluation of the Board of Directors in the Remuneration Committee report MRɸ[IVIQEXXIVWVIPEXIHXSMRRSZEXMSR -REGGSVHERGI[MXL4VSZMWMSRSJXLI SRTEKI2SRISJXLI&SEVH(MVIGXSVW MRJSVQEXMSRXIGLRSPSK]TVSHYGX 7[IHMWL'SHIXLI&SEVHLEWETVSGIWWXS LSPHWLEVIE[EVHWMWWYIHF]XLI+VSYT QEREKIQIRXWXVEXIK]ERHFYWMRIWWTPERW formally evaluate its own performance and 8LI/MRHVIH+VSYTLEWXEOIRSYX(MVIGXSVWƅ FYHKIXWJSVIGEWXWOI]TSPMGMIWERHXLI XLEXSJMXW'SQQMXXIIW8LITIVJSVQERGI ERH3ƾGIVWƅPMEFMPMX]MRWYVERGIJSVXLIJYPP new regulations in the Netherlands and the SJXLI&SEVHERHMXW'SQQMXXIIWLEWFIIR year covering the risk of personal liability 97%8SGPSWIVQSRMXSVXLIHIZIPSTQIRX XLIWYFNIGXSJ&SEVHHMWGYWWMSRPIHF] JSVXLIMVWIVZMGIWXSXLI+VSYT'SZIVMW MRXLI97%XLI&SEVHLEWETTSMRXIH4IXIV XLI'LEMVQERXSGSRWMHIVIJJIGXMZIRIWW MRTPEGIJSVERMRHIQRMX]PIZIPSJ+&4 &SKKWERH+YRRIP(YZIFPEHXSMXW97 against performance criteria and potential QMPPMSRMREKKVIKEXI 'SQQMXXII%XEPPXLIQIIXMRKWXLI&SEVH VMWOWXSTIVJSVQERGI8LIIZEPYEXMSR also considered the potential implications is conducted in cooperation with the SJ'3:-(SRXLI+VSYTERHQIEWYVIWXS 2SQMREXMSR'SQQMXXII[LMGLLSPHW GSRXVSPMXWMQTEGX(YIXSXLIYRGIVXEMRX] MRHMZMHYEPMRXIVZMI[W[MXL&SEVHQIQFIVW GEYWIHEXXLIXMQIF]'3:-(ERHXS The performance evaluations of the ensure that Kindred was well capitalised for Audit Remuneration JYXYVIMRZIWXQIRXSTTSVXYRMXMIWXLI&SEVH Board1 Committee Committee also decided to change the previously Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred GSQQYRMGEXIHTVSTSWEPSRɸXLIɸ 3ZRGJWTKRJJYNSLXMJQIIZWNSLYMJ^JFW 6 dividend and recommended at the 2020 Name %+1XLEXRSHMZMHIRHFITEMH[LMGL[EW EGGSVHMRKP]YTLIPH %RHIVW7XVʯQ'LEMVQER –– ,ʣPʢRI&EVRIOS[2 –– 9MJ,WTZUѣX\MNXYQJGQT\NSLUWTHJIZWJ /MRHVIH+VSYTƅW[LMWXPIFPS[MRKTVSGIHYVI 4IXIV&SKKW – ƈ7TIEO9TƉ[LMGLMWEWEJIMRHITIRHIRX +YRRIP(YZIFPEH – ERHGSRƼHIRXMEP[IFWMXIQEREKIHF]E XLMVHTEVX]WYTTPMIVMWQSRMXSVIHF]XLI Erik Forsberg – %YHMX'SQQMXXII 7XIJER0YRHFSVK3 – Carl-Magnus Månsson –

8LI&SEVHQIIXMRKWXEFPIHEFSZIGSRWMWXSJTL]WMGEP&SEVHQIIXMRKWERHQIIXMRKWLIPHZMEGSRJIVIRGIGEPP 8LI&SEVHLSPHWUYEVXIVP]GEPPWXSVIZMI[ERHETTVSZIXLIVIWYPXWSJXLI+VSYTERHVIGIMZIVITSVXWJVSQXLI %YHMX'SQQMXXII ,ʣPʢRI&EVRIOS[VIWMKRIHJVSQXLI&SEVHSJ(MVIGXSVWEXXLI%+1MR1E] 3R(IGIQFIV7XIJER0YRHFSVKVIWMKRIHJVSQLMWVSPIEWRSRI\IGYXMZI(MVIGXSVEX/MRHVIH+VSYT [MXLɸMQQIHMEXIIJJIGX

39 Corporate governance statement continued

Communication with owners The Board of Directors’ report on internal control FSI࣢NS[JXYTWX -RXLIMRXIVIWXWSJHIZIPSTMRKEQYXYEP over ﬁnancial reporting for the ﬁnancial year 2020 YRHIVWXERHMRKSJSFNIGXMZIWXLI,IEH Introduction and to provide assurance that it meets SJ-RZIWXSV6IPEXMSRWLEWQIXVIKYPEVP] According to the Maltese Companies the highest standards of corporate with owners and institutional investors to %GX 'ET ERHXLI7[IHMWL'SHI KSZIVRERGII\TIGXIHF]MXWWXEOILSPHIVW discuss the publicly disclosed performance SJ'SVTSVEXI+SZIVRERGIXLI&SEVHMW SJXLI+VSYTERHMXWJYXYVIWXVEXIK] VIWTSRWMFPIJSVMRXIVREPGSRXVSP8LMWVITSVX d. Information and communication -RWXMXYXMSREPMRZIWXSVWLEZIEPWSFIIREFPI has been prepared according to the 8LI&SEVHVIGIMZIWVIKYPEVJSVQEP XSQIIXXLI')3XLI'*3PMRIQEREKIVW Swedish Code of Corporate Governance reports from the Executive Committee ERHSXLIVOI]TIVWSRWSJXLI+VSYT 4VSZMWMSRWERHMWEGGSVHMRKP]PMQMXIH concerning the performance of the XSMRXIVREPGSRXVSPSZIVɸƼRERGMEPVITSVXMRK FYWMRIWWMRGPYHMRKI\TPEREXMSRWJSV 8LI&SEVHMWOITXMRJSVQIHSJWLEVILSPHIV 8LMWVITSVX[LMGLLEWRSXFIIRVIZMI[IH material variations from expected ZMI[WERHGSVVIWTSRHIRGI'SVTSVEXIERH F]XLIEYHMXSVWMWRSXTEVXSJXLIJSVQEP performance and assessments of ƼRERGMEPTVIWIRXEXMSRWEVIVIKYPEVP]QEHI ƼRERGMEPWXEXIQIRXW GLERKIWMRXLIVMWOTVSƼPISJXLI XSJYRHQEREKIVWWXSGOFVSOIVWERHXLI FYWMRIWWɸXLEXLEZIMQTPMGEXMSRWJSVXLI QIHMETEVXMGYPEVP]EXXLIERRSYRGIQIRX Description W]WXIQSJɸMRXIVREPGSRXVSPW-RTEVXMGYPEV SJMRXIVMQERH]IEVIRHVIWYPXW0MROWXS a. Control environment XLIɸ&SEVHɸVIGIMZIWHMVIGXTIVMSHMGVITSVXW webcast presentations are published on 8LI(MVIGXSVWLEZIYPXMQEXIVIWTSRWMFMPMX] JVSQXLI'LMIJ0IKEPERH'SQTPMERGI XLI+VSYTƅW[IFWMXI%PPWLEVILSPHIVWEVI for the system of internal controls and for 3ƾGIVERHXLI,IEHSJ-RXIVREP%YHMX MRZMXIHXSEXXIRHXLI%+1[LIVIXLI] VIZMI[MRKMXWIJJIGXMZIRIWW8LIW]WXIQ LEZIɸXLISTTSVXYRMX]XSTYXUYIWXMSRWXS SJMRXIVREPGSRXVSPMWHIWMKRIHXSQEREKI 8LI&SEVHEPWSXEOIWEGGSYRXSJXLI XLI(MVIGXSVWMRGPYHMRKXLI'LEMVTIVWSRW VEXLIVXLERIPMQMREXIXLIVMWOSJJEMPYVIXS EHZMGISJXLI%YHMX'SQQMXXIIVITSVXW SJɸ&SEVH'SQQMXXIIWERHXSXLI')3 EGLMIZIFYWMRIWWSFNIGXMZIW-RTYVWYMRK VIGIMZIHJVSQXLII\XIVREPEYHMXSVWERH XLIWISFNIGXMZIWMRXIVREPGSRXVSPWGER any other related factors that come to &,2UWTHJIZWJX SRP]TVSZMHIVIEWSREFPIERHRSXEFWSPYXI MXWEXXIRXMSR %XXLI%+1WITEVEXIVIWSPYXMSRWEVI assurance against material misstatement proposed for each substantially different SVPSWW e. Monitoring issue to enable all to receive proper and Further information concerning the HYIGSRWMHIVEXMSR)EGLTVSTSWIH(MVIGXSV b. Risk assessment activities of the Audit Committee in is voted for individually and the Kindred The Executive Committee is responsible relation to the monitoring of the Kindred Group has a proxy voting system enabling JSVVIZMI[MRKVMWOWERHJSVMHIRXMJ]MRK +VSYTƅWMRXIVREPGSRXVSPWMRGPYHMRKXLI shareholders who are unable to attend IZEPYEXMRKERHQEREKMRKXLIWMKRMƼGERX VIZMI[SJXLIƼRERGMEPVITSVXWTYFPMWLIH the AGM in person to use their voting risks applicable to their respective UYEVXIVP]ERHVITSVXWJVSQXLI-RXIVREP TS[IV2SXMGISJXLI%+1ERHVIPEXIH EVIEWSJFYWMRIWW6MWOWEVIVIZMI[IH %YHMXJYRGXMSRMWGSRXEMRIHMRXLI%YHMX papers are posted on the Group’s website and assessed on a regular basis by 'SQQMXXIIVITSVXSRXLIJSPPS[MRKTEKI between four and six weeks in advance XLI')3XLI'*3XLI'LMIJ0IKEPERH SJXLIQIIXMRK*YVXLIVMRJSVQEXMSRSR 'SQTPMERGI3ƾGIVXLI,IEHSJ-RXIVREP 4SGJMFQKTKYMJ'TFWI the activities of the Group and other %YHMXXLI%YHMX'SQQMXXIIERHXLI 1EPXE1EVGL shareholder information is available via &SEVH8LIIJJIGXMZIRIWWSJGSRXVSPW XLI/MRHVIH+VSYTƅWGSVTSVEXI[IFWMXI MWɸGSRWMHIVIHMRGSRNYRGXMSR[MXLXLI Anders Ström [[[OMRHVIHKVSYTGSQ VERKISJVMWOWERHXLIMVWMKRMƼGERGI 'LEMVQERERH(MVIGXSV XSɸXLIɸSTIVEXMRKGMVGYQWXERGIWSJ &,2FYYJSIFSHJ MRHMZMHYEPEVIEWSJXLIFYWMRIWW ,ZSSJQ)Z[JGQFI &IGEYWISJXLI'3:-(WMXYEXMSR (MVIGXSV and in light of the instructions from the c. Control activities EYXLSVMXMIW7(6LSPHIVWYWIHXLISTXMSR 8LI&SEVHMWVIWTSRWMFPIJSVEPPEWTIGXW Statement of compliance with the of proxy form instead of attending the SJɸXLI+VSYTƅWGSRXVSPEGXMZMXMIW 8\JINXM(TWUTWFYJ,T[JWSFSHJ(TIJ %+1LIPHSR1E]MRTIVWSR No separate auditors’ report on the 2SQIQFIVWSJXLI&SEVHXLI2SQMREXMSR The Audit Committee assists the Corporate governance statement is Committee or the statutory auditors were &SEVHɸMRɸMXWVIZMI[SJXLIIJJIGXMZIRIWW required under the Maltese regulations present in accordance with the instructions of internal controls and is responsible WMRGIXLIWXEXIQIRXMWFIMRKɸTVITEVIH from the authorities to keep distance for setting the strategy for the internal in line with the principles of the from others both indoors and outdoors GSRXVSPWVIZMI[-RHSMRKWSMXXEOIW 7[IHMWL'SHI XSɸTVIZIRXXLIWTVIEHSJ'3:-( account of the organisational framework and reporting mechanisms embedded With the exception of the matters noted

kindredgroup.com [MXLMRXLI+VSYTXLI[SVOSJXLI'LMIJ EFSZIERHTVSZMWMSR XLEXXLI&SEVH 0IKEPERH'SQTPMERGI3ƾGIVERHXLI should meet with the statutory auditors [SVOSJXLI,IEHSJ-RXIVREP%YHMX at least once a year without management TVIWIRX XLI(MVIGXSVWGSRƼVQXLEXXLI] ;SVOMRKXLVSYKLSYXXLI+VSYTXLI are in compliance with the Swedish Code VSPIɸSJɸXLI'LMIJ0IKEPERH'SQTPMERGI SJɸ'SVTSVEXI+SZIVRERGI 3ƾGIVERHXLIVSPISJXLI,IEHSJ-RXIVREP %YHMXMWXSMHIRXMJ]QSRMXSVERHVITSVX XSXLI&SEVHSRXLIWMKRMƼGERXƼRERGMEP and operating risks faced by the Group 40 Strategic report Audit Committee report

The Audit Committee (the Committee) YRMXW8LI'SQQMXXIIGSRWMHIVIHXLI 8LI-RXIVREP%YHMXHITEVXQIRXVIWMHIW advises and makes recommendations EWWIWWQIRXTIVJSVQIHF]QEREKIQIRX [MXLMRXLI'SVTSVEXI3ƾGIFYXVITSVXW to the Board on matters including and the work done and the conclusions XSXLI%YHMX'SQQMXXII8LI,IEHSJ ƼRERGMEPVITSVXMRKMRXIVREPGSRXVSPW reached by the statutory auditor in this -RXIVREP%YHMXLEWHMVIGXEGGIWWXSXLI

ERHVMWOQEREKIQIRXERHEPWSEHZMWIW EVIEEWTEVXSJXLIMVEYHMX8LI'SQQMXXII %YHMX'SQQMXXIIEXEPPXMQIW8LI-RXIVREP Governance the Nomination Committee on the MWGSQJSVXEFPI[MXLXLITSWMXMSRXEOIR %YHMXJYRGXMSREGXWEWERMRHITIRHIRX ETTSMRXQIRXSJEYHMXSVW8LIVSPISJ by management and the sensitivity JYRGXMSRXLEXMRXIRHWXSIZEPYEXIERH the Committee is set out in its written EREP]WMWHMWGPSWIH MQTVSZIXLIIJJIGXMZIRIWWSJVMWO XIVQWSJVIJIVIRGI QEREKIQIRXGSRXVSPERHKSZIVRERGI (TRUQNFSHJ\NYMYF]QJLNXQFYNTS TVSGIWWIW-XW[SVOMWTIVJSVQIHMR The Committee met six times during 8LI'SQQMXXIIVIGIMZIHVIKYPEVYTHEXIW EGGSVHERGI[MXL-RXIVREXMSREP7XERHEVHW XLI]IEVERHGYVVIRXP]GSQTVMWIW JVSQQEREKIQIRXSRMRHMVIGXXE\ERH JSVXLI4VSJIWWMSREP4VEGXMGISJ-RXIVREP

X[SMRHITIRHIRXRSRI\IGYXMZI GSVTSVEXMSRXE\EW[IPPEWXLINYHKIQIRXW %YHMXMRKJVSQXLI-RWXMXYXISJ-RXIVREP Financial statements Directors: Gunnel Duveblad and Erik I\IVGMWIHMREVVMZMRKEXXLIIJJIGXMZI %YHMXSVW8LI%YHMX'SQQMXXIIEKVIIWXLI *SVWFIVK8LI'SQQMXXIIMWGLEMVIH GSVTSVEXMSRXE\VEXIVIGSKRMXMSRSJ WGSTISJɸ-RXIVREP%YHMX[SVOERHVIGIMZIW F]ɸ+YRRIP(YZIFPEH[LSLEWI\XIRWMZI GSVTSVEXMSRXE\GVIHMXWERHXLIHIJIVVIH VITSVXWɸSRGSQTPIXIHVIZMI[W(YVMRK QEREKIQIRXɸERHƼRERGMEPI\TIVXMWI XE\VIGSKRMWIHERHHMWGPSWIH8LI+VSYT XLI]IEVXLI-RXIVREP%YHMXHITEVXQIRX JVSQMRXIVREXMSREPFYWMRIWWIW STIVEXIWMRQYPXMTPINYVMWHMGXMSRWERHMW TVSZMHIHEWWYVERGISRSTIVEXMSREP ERHEW'LEMVTIVWSRMRSXLIVPMWXIH WYFNIGXXSHMJJIVIRXREXMSREPXE\PE[WERH ƼRERGMEPERHGSQTPMERGIQEXXIVW GSQTERMIW;LIVIETTVSTVMEXI VIKYPEXMSRW8LI'SQQMXXIIHMWGYWWIH including controls over customer the Committee consulted with the XLIOI]NYHKIQIRXWMRVIPEXMSRXSXLI FSRYWIWɸEREWWIWWQIRXSJXLIGYVVIRX Other information 'LEMVQERSJXLI&SEVHɸXLI')3ERH XE\ɸTSWMXMSRXEOIRERHXLIFEWMWSR JVEYHVMWOQEREKIQIRXGETEFMPMXMIW XLI'LMIJ*MRERGMEP3ƾGIVVIKEVHMRK [LMGLɸHIJIVVIHERHGYVVIRXXE\[EW ERHɸ/MRHVIHƅW'SQTPMERGI*VEQI[SVO MXWTVSTSWEPW8LIWXEXYXSV]EYHMXSVW VIGSKRMWIHSVHMWGPSWIH8LI'SQQMXXII 4VMGI[EXIVLSYWI'SSTIVW 4[' also considered the work done by 7IRMSVQEREKIQIRXMWVIWTSRWMFPI EXXIRHIHɸXLVIISJXLIQIIXMRKW management and assisted by external JSVEHHVIWWMRKERHVIQIHMEXMRK EHZMWIVWERHI\TIVXWEPSRK[MXLXLI any recommendations suggested 6IWTSRWMFMPMXMIWMRGPYHIQSRMXSVMRKXLI conclusions reached by PwC in this area F]XLI-RXIVREP%YHMXHITEVXQIRX MRXIKVMX]SJXLIƼRERGMEPWXEXIQIRXWSJ EWTEVXSJMXWEYHMXERHɸMWGSQJSVXEFPI The Audit Committee also evaluates XLIɸ+VSYT(YVMRKXLI]IEVXLI'SQQMXXII [MXLɸXLITSWMXMSRXEOIRF]QEREKIQIRX XLIɸTIVJSVQERGISJXLI-RXIVREP%YHMX VIZMI[IHXLI+VSYTƅWƼRERGMEPWXEXIQIRXW JYRGXMSR8LI'SQQMXXIIVIQEMRWWEXMWƼIH ERHJSVQEPERRSYRGIQIRXWVIPEXMRKXS (TRUQNFSHJ\NYMQF\XFSIWJLZQFYNTSX XLEXXLIGSRXVSPWMRTPEGIERHXLIVIZMI[ XLI+VSYTƅWƼRERGMEPTIVJSVQERGIFIJSVI 'SQTPMERGI[MXLPE[WERHVIKYPEXMSRW TVSGIWWSZIVWIIRF]QEREKIQIRXERH FIMRKTVIWIRXIHXSXLI&SEVH-RHSMRKWS MRɸXLISRPMRIKEQMRKMRHYWXV]LEW XLI,IEHSJ-RXIVREP%YHMXEVIIJJIGXMZI MXGSRWMHIVIHEGGSYRXMRKTSPMGMIWEVIEW FIGSQIɸMRGVIEWMRKP]GSQTPI\KMZIR MRɸQSRMXSVMRKXLIIWXEFPMWLIHW]WXIQW SJNYHKIQIRXSVIWXMQEXMSRERHVITSVXMRK XLEXXLIVIKYPEXSV]PIKMWPEXMZIERH VIUYMVIQIRXWEW[IPPEWQEXXIVWFVSYKLXXS ƼWGEPɸVIKMQIWEVIXIVVMXSV]WTIGMƼG 8YFYZYTW^FZINYFSITYMJWXJW[NHJX MXWEXXIRXMSRF]XLII\XIVREPEYHMXSVW%VMWO ERHɸGSRXMRYIXSIZSPZI 8LI'SQQMXXIIMWVIWTSRWMFPIJSVQEOMRK QEREKIQIRXVITSVXMWTVIWIRXIHUYEVXIVP] recommendations to the Nomination F]XLI'LMIJ0IKEPERH'SQTPMERGI The Committee evaluated the control 'SQQMXXIIMRVIPEXMSRXSXLIETTSMRXQIRX 3ƾGIVERH+VSYT6MWO1EREKIVXSXLI environment and risk management SJI\XIVREPEYHMXSVWQSRMXSVMRKXLIMV Committee ERHMWɸVIZMI[IHF]XLI&SEVH TVSGIWWIWMRTPEGIXSGSQTP][MXL MRHITIRHIRGIERHSFNIGXMZMX]ERHJSV PMGIRWMRKVIKYPEXMSRWVIWTSRWMFPI EKVIIMRKXLIPIZIPSJVIQYRIVEXMSRERH Accounting and key areas KEQFPMRKERHERXMQSRI]PEYRHIVMRK XLIɸI\XIRXSJRSREYHMXWIVZMGIW TK࣢OZILJRJSY SFPMKEXMSRW8LI'SQQMXXIIVIZMI[IH The main areas considered by the XLI+VSYTƅWVITSVXWSRPMXMKEXMSRQEXXIVW (YVMRKXLI]IEV4['1EPXEVITSVXIHXSXLI Committee in relation to 2020 are TVSZMHIHF]QEREKIQIRXERHHMWGYWWIH Committee on their audit strategy and the WIXɸSYXɸFIPS[ [MXLMXXLIMQTPMGEXMSRWJSVXLIFYWMRIWW WGSTISJEYHMX[SVO8LI'SQQMXXIILEW ERHXLIƼRERGMEPMQTEGX8LI'SQQMXXII VIZMI[IHXLITIVJSVQERGISJXLII\XIVREP .RUFNWRJSYFXXJXXRJSYTKLTTI\NQQ HMWGYWWIH[MXL4['MXW[SVOMRVIWTIGX EYHMXSVWERHXLIPIZIPSJRSREYHMXJIIW

%WEVIWYPXSJTVIZMSYWEGUYMWMXMSRW SJXLMWEVIEERHMWGSQJSVXEFPI[MXLXLI TEMHHYVMRKXLI]IEV8LIWIEVIHMWGPSWIH 2020 Accounts and Report Annual plc Group Kindred XLIɸ+VSYTLEWWMKRMƼGERXKSSH[MPPERH TSWMXMSRXEOIRF]QEREKIQIRXERHXLI MRRSXISRTEKI8LITVSZMWMSRSJ SXLIVMRXERKMFPIEWWIXW[MXLMRHIƼRMXI EGGSYRXMRKXVIEXQIRXSJXLIWIQEXXIVW RSREYHMXWIVZMGIWQYWXFIVIJIVVIHXS lives which need to be reviewed annually MRɸXLIƼRERGMEPWXEXIQIRXW the Committee where it is likely to exceed JSVMQTEMVQIRX ETVIHIXIVQMRIHXLVIWLSPH%R][SVO .SYJWSFQHTSYWTQFSINSYJWSFQFZINY XLEXJEPPWFIPS[XLEXXLVIWLSPHQYWXFI (YVMRKXLI]IEVQEREKIQIRXVIGSKRMWIH 8LI'SQQMXXIIMWVIWTSRWMFPIJSV TVIETTVSZIHF]XLI'*3&]QSRMXSVMRK ERMQTEMVQIRXPSWWSJ+&4QMPPMSR VIZMI[MRKXLI+VSYTƅWW]WXIQWSJ and restricting both the nature and This is in relation to both the goodwill MRXIVREPɸGSRXVSPERHVMWOQEREKIQIRX UYERXYQSJRSREYHMXWIVZMGIWTVSZMHIH XLEXEVSWISREGUYMWMXMSRSJ&IXGLSMGI ERHMXWWYWXEMREFMPMX]TVEGXMGIW-XVIGIMZIW F]XLII\XIVREPEYHMXSVWXLI'SQQMXXII EWEVIWYPXSJEREWWIWWQIRXTIVJSVQIH YTHEXIWJVSQXLI'*3XLI'LMIJ0IKEP WIIOWXSWEJIKYEVHEYHMXSVSFNIGXMZMX] JSPPS[MRKXLITERHIQMGSYXFVIEOERH ERH'SQTPMERGI3ƾGIVERHSXLIVWIRMSV ERHMRHITIRHIRGI XLIKSSH[MPPVIGSKRMWIHEWTEVXSJXLI managers on the ongoing initiatives +YMPHLEPPEGUYMWMXMSRMR%TVMPEW XSMQTVSZI/MRHVIHƅWMRXIVREPGSRXVSP XLIYRHIVP]MRKSTIVEXMSRWLEZIFIIR IRZMVSRQIRX8LI'SQQMXXIIMWEPWS HMWGSRXMRYIH8LIJYPPMQTEMVQIRX VIWTSRWMFPIJSVXLI+VSYTƅW[LMWXPI EWWIWWQIRXTIVJSVQIHEXXLI]IEVIRH FPS[MRKTVSGIHYVIƈ7TIEO9TƉ[LMGL HMHɸRSXMHIRXMJ]MQTEMVQIRXMRHMGEXSVW MWEɸWEJIMRHITIRHIRXERHGSRƼHIRXMEP JSVɸER]SJXLIVIQEMRMRKGEWLKIRIVEXMRK [IFWMXIQEREKIHF]EXLMVHTEVX]WYTTPMIV

41 Corporate governance statement continued

Nomination Remuneration Committee report Committee report

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42 General legal environment Strategic report We are entering a new era where sustainability focus and compliance excellence are driving the regulatory agenda. Amidst a climate of disruptive regulatory changes and harsh enforcement across the gambling spectrum, the industry has been forced to go back to the drawing board and rethink its position in society and towards the customer. Governance

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subsequent licences being awarded in PMGIRGIMWE[EVHIHXS/MRHVIH/MRHVIHEMQW 45 Shares and share capital Kindred Group plc’s issued share capital as at 31 December 2020 comprised 230,126,200 ordinary shares each with a par value of GBP 0.000625. All ordinary shares carry equal voting rights and rights to share in the assets and profits of the Group.

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kindredgroup.com shares %ZIVEKIRYQFIVSJ diluted shares

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SEK thousands 160 320,000 Kindred Group share price OMX St PI Volume OMX St GI

120 240,000 Other information

80 160,000

40 80,000

0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: Nasdaq Stockholm

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Remuneration Committee report Strategic report On behalf of the Kindred remuneration Committee I am pleased to present our 2020 remuneration report. This report includes both a summary of our remuneration guidelines as approved by the shareholders at the 2020 AGM, and the remuneration paid out in 2020 in accordance with these guidelines. Governance

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Base salary Executive managers receive base salaries FEWIHSRTSWMXMSRVIWTSRWMFMPMXMIW TIVJSVQERGIERHGSQTIXIRGMIW

Remuneration Committee report continued

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Strategic report Board of Directors remuneration 2019-20 Audit 7JRZSJWFYNTS US (TRRNYYJJ (TRRNYYJJ (TRRNYYJJ Board fees fees fees fees 9TYFQKJJX 9TYFQKJJX Directors ,'5 ,'5 ,'5 ,'5 ,'5 ,'5 %RHIVW7XVʯQ'LEMVQER Ɓ Ɓ Ɓ /VMWXSJIV%V[MR1 ƁƁƁƁƁ 3

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(FWQ2FLSZX2उSXXTS (MFNWTKYMJ7JRZSJWFYNTS(TRRNYYJJ 1EPXE1EVGL 52 Directors’ report Strategic report The Directors present their annual report on the affairs of Kindred Group, together with the audited consolidated financial statements and auditors’ report, for the year ended 31 December 2020. Governance 5WNSHNUFQFHYN[NYNJX 5WNTW^JFWѣXIN[NIJSI HMWEKVIIW[MXLXLIVIKYPEXSVƅWHIGMWMSR /MRHVIH+VSYTMWERSRPMRIKEQMRKFYWMRIWW 7YFWIUYIRXXSMXWMRMXMEPTVSTSWEP ERHLEWETTIEPIHXLIVIKYPEXSVƅWHIGMWMSR [MXLRIEVP]QMPPMSRVIKMWXIVIHGYWXSQIVW XLIɸ&SEVHSJ(MVIGXSVWHIGMHIHXS XSXLI7[IHMWL%HQMRMWXVEXMZI'SYVX [SVPH[MHIEWEX(IGIQFIVERH [MXLHVE[MXWɸTVIZMSYWVIGSQQIRHEXMSRXS 1SVIMRJSVQEXMSRGERFIJSYRH[MXLMR MWSRISJXLIPEVKIWXMRHITIRHIRXTYFPMGP] WLEVILSPHIVWXSHIGPEVIEHMZMHIRHJSV XLIɸ+IRIVEP0IKEP)RZMVSRQIRXWIGXMSR UYSXIHSRPMRIKEQMRKSTIVEXSVWMR)YVSTI ERHMRWXIEHVIGSQQIRHIHXLEXRSɸHMZMHIRH SRɸTEKIWXS [EWTEMH(IWTMXIXLI+VSYTFIMRKMRE 8LI+VSYTLEWFYWMRIWWSTIVEXMSRWEGVSWW WSPMHƼRERGMEPTSWMXMSR[MXLWXVSRKPMUYMHMX] 3R1E]/MRHVIH[EWE[EVHIH Financial statements )YVSTI%YWXVEPMEERHXLI97%ERHSJJIVW ERHPS[PIZIVEKIXLIHIGMWMSR[EWXEOIR EXIQTSVEV]PMGIRGIMR-RHMEREERH TVIKEQIERHPMZIWTSVXWFIXXMRK MRGPYHMRK due to the uncertainty caused at the time PEYRGLIHXLI9RMFIXWTSVXWFSSOXLIVI LSVWIVEGMRK GEWMRS KEQIWTSOIVERH F]'3:-(ERHXSIRWYVIXLEX/MRHVIH SRɸ.YP] SXLIVTVSHYGXW MRGPYHMRK&MRKS XLVSYKL [EW[IPPGETMXEPMWIHJSVJYXYVIMRZIWXQIRX WIZIVEPFVERHW(YVMRK/MRHVIH STTSVXYRMXMIW8LMW[EWYTLIPHEXXLI 3R.YP]/MRHVIHPEYRGLIHXLIƈ4E] reached more than 60 million transactions %+1 Ƅ2ƅ4PE]ƉTVSHYGX3XXS/EWMRSMR*MRPERH MREHE] EGVSWWEPPTVSHYGXW SRXLI/MRHVIH TPEXJSVQERHSJJIVIHEVSYRHFIXXMRK )N[NIJSIKTW 3R7ITXIQFIV/MRHVIHIRXIVIHMRXS Other information STTSVXYRMXMIWSRQENSVMRXIVREXMSREPERH 8LI&SEVHSJ(MVIGXSVWTVSTSWIWE EREKVIIQIRX[MXL4IRR2EXMSREP+EQMRK PSGEPWTSVXMRKIZIRXWIZIV]HE] HMZMHIRHSJ+&4 +&4RMP TVSZMHMRKQEVOIXEGGIWWMR-PPMRSMWERH3LMS TIVɸWLEVI7(6IUYEPXSEXSXEPHMZMHIRH XSSTIVEXIFSXLSRPMRIWTSVXWFIXXMRKERH 8LI+VSYTMWEPWSEJSYRHMRKQIQFIVSJ SJɸETTVS\MQEXIP]+&4QMPPMSR SRPMRIKEQMRKTIRHMRKETTPMGEFPIPE[W FSXLXLI)YVSTIER+EQMRKERH&IXXMRK FIMRKTEWWIHERHFSXLTEVXMIWSFXEMRMRK %WWSGMEXMSRERH-&-% -RXIVREXMSREP&IXXMRK 1SVIHIXEMPWSRXLIHMZMHIRHJSV EPPɸRIGIWWEV]KEQMRKPMGIRGIW -RXIKVMX]%WWSGMEXMSR ERHMWEYHMXIHERH GERɸFIJSYRHSRTEKI GIVXMƼIHF]I'3+6%MRVIPEXMSRXSXLI 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54 Independent auditor’s report Strategic report To the shareholders of Kindred Group plc Governance Report on the audit of the Basis for opinion ܪSFSHNFQ࣢XYFYJRJSYX We conducted our audit in accordance Our opinion [MXLɸ-RXIVREXMSREP7XERHEVHWSR%YHMXMRK In our opinion: -7%W 3YVVIWTSRWMFMPMXMIWYRHIVXLSWI WXERHEVHWEVIJYVXLIVHIWGVMFIHMRXLI – 8LIGSRWSPMHEXIHƼRERGMEPWXEXIQIRXW Auditor’s Responsibilities for the Audit of the XLIƈƼRERGMEPWXEXIQIRXWƉ KMZIE Financial StatementsWIGXMSRSJSYVVITSVX XVYIERHJEMVZMI[SJXLIGSRWSPMHEXIH

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55 Independent auditor’s report – continued To the shareholders of Kindred Group plc

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57 Independent auditor’s report – continued To the shareholders of Kindred Group plc

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59 Independent auditor’s report – continued To the shareholders of Kindred Group plc

Area of the Annual Report and Accounts 2020FSIYMJWJQFYJI )NWJHYTWXѣWJXUTSXNGNQNYNJX 4ZWWJXUTSXNGNQNYNJX 4ZWWJUTWYNSL

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60 Consolidated income statement Strategic report

Year ended Year ended 31 December 31 December (GBP m) Note 2020 2019

Gross winnings revenue 31,130.2912.8Governance

Betting duties 3-231.0-204.3 Marketing revenue share 3 -53.6 -48.8 Other cost of sales 3-180.4-151.1 Cost of sales -465.0 -404.2 ,WTXXUWTܪY 665.2 508.6 Financial statements Marketing costs 4-203.6-210.9 Salaries 4-109.7-96.1 Other operating expenses 4 -63.7 -73.6 Depreciation of property, plant and equipment 4 -15.1 -14.9 Depreciation of right-of-use assets 4 -11.3 -10.1 Amortisation of intangible assets (excluding on assets that arose on acquisition) 4 -24.3 -24.3

Total administrative expenses 4 -224.1 -219.0 Other information :SIJWQ^NSLUWTܪYGJKTWJNYJRXFKKJHYNSLHTRUFWFGNQNY^ 237.5 78.7

Management incentive costs relating to acquisitions 4 -0.4 -0.2 Personnel restructuring costs 4 -4.2 -1.7 Disputed regulatory sanction 4 -8.0 – Impairment losses recognised in the year 11 -7.8 -2.0 Accelerated amortisation of intangible assets that arose on acquisition 4 -6.9 – Amortisation of intangible assets that arose on acquisition 4 -3.0 -5.9 Foreign currency (losses)/gains on operating items 4 -1.4 2.0 5WTܪYKWTRTUJWFYNTSX 3 205.8 70.9

Finance costs 6-6.2-7.0 Finance income 70.40.4 Foreign currency (losses)/gains on borrowings -8.7 2.9 7LEVISJTVSƼX PSWW JVSQEWWSGMEXI 14 1.8 -0.1 5WTܪYGJKTWJYF] 193.1 67.1

Income tax expense 8-27.9-10.5 5WTܪYKTWYMJ^JFW 165.2 56.6

Earnings per share, GBP 10 0.728 0.250 Diluted earnings per share, GBP 10 0.721 0.248

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Year ended Year ended 31 December 31 December (GBP m) 2020 2019 4VSƼXJSVXLI]IEV 165.2 56.6

4YMJWHTRUWJMJSXN[JNSHTRJ Currency translation adjustments taken to equity 9.2 -8.6 9TYFQHTRUWJMJSXN[JNSHTRJKTWYMJ^JFW 174.4 48.0

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61 Consolidated balance sheet

As at As at 31 December 31 December (GBP m) Note 2020 2019 Assets Non-current assets Goodwill 11 273.9 275.3 Other intangible assets 11 148.7 159.7 Investment in associate 14 3.6 1.8 Property, plant and equipment 12 28.4 36.6 Right-of-use assets 13 61.3 64.1 Deferred tax assets 21 28.4 23.5 Convertible bond 24 6.9 6.5 Other non-current assets 2.3 2.2 553.5 569.7 Current assets 8VEHIERHSXLIVVIGIMZEFPIW 16 46.9 46.8 8E\EXMSRVIGSZIVEFPI 91.4 41.5 Cash and cash equivalents 28 300.5 137.8 438.8 226.1 Total assets 992.3 795.8

Equity and liabilities Capital and reserves Share capital 23 0.1 0.1 Share premium 23 81.5 81.5 Currency translation reserve 23 17.2 8.0 Reorganisation reserve 23 -42.9 -42.9 Retained earnings 356.2 187.3 9TYFQJVZNY^FYYWNGZYFGQJYTYMJT\SJWX 412.1 234.0

Non-current liabilities Borrowings 20 118.3 225.4 Lease liabilities 13 50.2 53.3 Provisions1 18 0.6 0.5 Deferred tax liabilities 21 5.3 5.9 174.4 285.1 Current liabilities Lease liabilities 13 12.1 11.7 8VEHIERHSXLIVTE]EFPIW 17 162.1 126.6 Provisions1 18 21.2 11.3 Customer balances 19 77.5 67.4 Deferred income 15 5.4 5.9 8E\PMEFMPMXMIW 127.5 53.8 405.8 276.7 Total liabilities 580.2 561.8 Total equity and liabilities 992.3 795.8

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Anders Ström Gunnel Duveblad (MFNWRFSFSI)NWJHYTW )NWJHYTW 62 Consolidated statement of changes in equity Strategic report

Currency 8MFWJ 8MFWJ translation Reorganisation Retained (GBP m) Note capital premium reserve reserve earnings Total

Balance at 1 January 2019 0.1 81.5 16.6 -42.9 238.8 294.1 Governance

(TRUWJMJSXN[JNSHTRJ 4VSƼXJSVXLI]IEV – – – – 56.6 56.6 4YMJWHTRUWJMJSXN[JNSHTRJ 8VERWPEXMSREHNYWXQIRX ––-8.6––-8.6 9TYFQHTRUWJMJSXN[JNSHTRJ ––-8.6–56.648.0 Financial statements

9WFSXFHYNTSX\NYMT\SJWX Share awards – value of employee services 22 – – – – 0.4 0.4 Equity-settled employee FIRIƼXTPER 22––– –2.02.0 Disposal of treasury shares 23 – – – – 2.0 2.0

Dividend paid 9 – – – – -112.5 -112.5 Other information 9TYFQYWFSXFHYNTSX\NYMT\SJWX – – – – -108.1 -108.1 At 31 December 2019 0.1 81.5 8.0 -42.9 187.3 234.0

(TRUWJMJSXN[JNSHTRJ 4VSƼXJSVXLI]IEV ––– –165.2165.2 4YMJWHTRUWJMJSXN[JNSHTRJ 8VERWPEXMSREHNYWXQIRX ––9.2––9.2 9TYFQHTRUWJMJSXN[JNSHTRJ ––9.2–165.2174.4

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63 Consolidated cash ﬂow statement

Year ended Year ended 31 December 31 December (GBP m) Note 2020 2019 Operating activities 4VSƼXJVSQSTIVEXMSRW 205.8 70.9 %HNYWXQIRXWJSV Depreciation of property, plant and equipment 12 15.1 14.9 Depreciation of right-of-use assets 13 11.3 10.1 Amortisation of intangible assets 11 34.2 30.2 Impairment losses recognised in the year 11 7.8 2.0 Loss on disposal of property, plant and equipment 4 – 0.1 Loss on disposal of intangible assets 4 0.2 – Foreign currency losses on dividend 6 – -0.4 Share-based payments 22 1.9 2.4 )UYMX]WIXXPIHIQTPS]IIFIRIƼXTPER 22 1.8 2.0 Increase in trade and other receivables -1.3 -6.9 Increase in trade and other payables, including customer balances and provisions 51.0 21.9 (FXMܫT\XKWTRTUJWFYNSLFHYN[NYNJX 327.8 147.2 Net income taxes paid -11.7 -26.9 3JYHFXMLJSJWFYJIKWTRTUJWFYNSLFHYN[NYNJX 316.1 120.3

Investing activities Interest received 0.4 0.3 Purchases of property, plant and equipment 12 -5.2 -15.6 Proceeds from sale of property, plant and equipment – 0.1 Development and acquisition costs of intangible assets 11 -20.7 -41.4 3JYHFXMZXJINSNS[JXYNSLFHYN[NYNJX -25.5 -56.6

Financing activities Interest paid1 -4.9 -6.6 Interest paid on lease liabilities1 13 -1.3 -1.2 Repayment of lease liabilities 13 -11.3 -8.6 Dividend paid 9–-112.5 Proceeds from borrowings 20 – 130.0 Repayment of borrowings 20 -115.1 -92.8 3JYHFXMZXJINSܪSFSHNSLFHYN[NYNJX -132.6 -91.7

3JYNSHWJFXJ IJHWJFXJNSHFXMFSIHFXMJVZN[FQJSYX 158.0 -28.0

(FXMFSIHFXMJVZN[FQJSYXFYYMJGJLNSSNSLTKYMJ^JFW 137.8 174.3

Effect of foreign exchange rate changes 4.7 -8.5 (FXMFSIHFXMJVZN[FQJSYXFYYMJJSITKYMJ^JFW 28 300.5 137.8

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64 Notes to the consolidated ﬁnancial statements Strategic report

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65 Notes to the consolidated ﬁnancial statements continued

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66 Strategic report

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67 Notes to the consolidated ﬁnancial statements continued

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69 Notes to the consolidated ﬁnancial statements continued

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(JSYWFQ *FXYJWSFSI )JHJRGJW Western 8TZYMJWS (GBP m) 3TWINHX Europe Europe 4YMJW1 9TYFQ +VSWW[MRRMRKWVIZIRYI 912.8 &IXXMRKHYXMIW -204.3 1EVOIXMRKVIZIRYIWLEVI -48.8 3XLIVGSWXSJWEPIW -151.1 ,WTXXUWTܪY 167.3 284.5 48.0 8.8 508.6

1EVOIXMRKGSWXW -210.9 %HQMRMWXVEXMZII\TIRWIW -219.0 .YJRXFKKJHYNSLHTRUFWFGNQNY^ -7.8 5WTܪYKWTRTUJWFYNTSX 70.9 Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred (YVMRKXLI]IEVIRHIH(IGIQFIVERMQTEMVQIRXPSWWSJ+&4QMPPMSR[EWVIGSKRMWIH[MXLMRMXIQWEJJIGXMRKGSQTEVEFMPMX]8LMWMWMRVIPEXMSRXSMQTEMVQIRXSJɸXLI &IXGLSMGIKSSH[MPPERHGERFIEXXVMFYXIHXSXLISXLIVVITSVXMRKWIKQIRX*SVQSVIMRJSVQEXMSRTPIEWIVIJIVXSRSXI

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>JFWJSIJI >JFWJSIJI )JHJRGJW )JHJRGJW (GBP m) 2020 2019 7TSVXWFIXXMRK 488.1 'EWMRS KEQIW 579.0 4SOIV 32.9 3XLIV 30.2 912.8

73 Notes to the consolidated ﬁnancial statements continued

4: Expenses by nature

>JFWJSIJI >JFWJSIJI )JHJRGJW )JHJRGJW (GBP m) 2020 2019 &IXXMRKHYXMIW 231.0 1EVOIXMRKVIZIRYIWLEVI 53.6 3XLIVGSWXSJWEPIW 180.4 1EVOIXMRKGSWXW 203.6

&IRNSNXYWFYN[JJ]UJSXJX Salary costs (Research and development) 18.9 15.0 Other salary costs 90.8 81.1 8SXEPWEPEVMIW 109.7

Fees payable to statutory auditors 0.9 0.8 Loss on disposal of property, plant and equipment – 0.1 Loss on disposal of intangible assets 0.2 – Other 62.6 72.7 3XLIVSTIVEXMRKI\TIRWIW 63.7 73.6

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kindredgroup.com EVIRS[JYPP][VMXXIRHS[RERHFSXLGLEVKIWEVIRSRGEWLERHXLYWLEZIRSMQTEGXSRJVIIGEWLƽS[*SVQSVIMRJSVQEXMSRWII RSXISRTEKIWXS – %QSVXMWEXMSRSJEGUYMVIHMRXERKMFPIEWWIXWMWXLIGLEVKISR-*67&YWMRIWWGSQFMREXMSREGUYMVIHEWWIXWSZIVXLIYWIJYPPMZIWSJ XLIEWWIXWERHMWMRGPYHIHEWTEVXSJXLI+VSYTƅWXSXEPEQSVXMWEXMSRGLEVKI WIIRSXISRTEKIWXS -RGPYHIH[MXLMRXLMW GLEVKIJSVMWEGGIPIVEXIHEQSVXMWEXMSRSJ+&4QMPPMSRVIPEXMRKXSXLSWIFVERHWXLEXXLI+VSYTLEWHIGMHIHXSHMWGSRXMRYI HYVMRKMRSVHIVXSFIRIƼXJVSQJSGYWMRKVIWSYVGIWSRMXWVIQEMRMRKFVERHWERHXSVIHYGISVKERMWEXMSREPGSQTPI\MX]8LMWMW EɸRSRVIGYVVMRKRSRGEWLGLEVKI

74 Strategic report

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%ZIVEKIIQTPS]IIRYQFIVWEVITVSZMHIHEWFIPS[ -RGSQIXE\MR1EPXEMWGEPGYPEXIHEXEFEWMGVEXISJ >JFWJSIJI >JFWJSIJI TIVɸGIRXSJXLIIWXMQEXIHEWWIWWEFPITVSƼXJSV &[JWFLJSZRGJWTKJRUQT^JJX )JHJRGJW )JHJRGJW XLIɸ]IEVɸ8E\EXMSRJSVɸSXLIVNYVMWHMGXMSRWMWGEPGYPEXIHEXXLI KTW࣢YMJ^JFW 2020 2019 VEXIWɸTVIZEMPMRKMRXLIVIWTIGXMZINYVMWHMGXMSRW *MRERGIPIKEPEHQMRMWXVEXMSR ERHQEREKIQIRX 437 1EVOIXMRK MRGPYHMRKXVEHMRK 534 'YWXSQIVWIVZMGIW 250 6IWIEVGLERHHIZIPSTQIRX 411 Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred

75 Notes to the consolidated ﬁnancial statements continued

.SHTRJYF]J]UJSXJHTSYNSZJI 7YFWIUYIRXXSMXWMRMXMEPTVSTSWEPXLI&SEVHSJ(MVIGXSVWHIGMHIH 8LIXE\I\TIRWIJSVXLI]IEVGERFIVIGSRGMPIHXSXLITVSƼXTIV XS[MXLHVE[XLIMVTVIZMSYWVIGSQQIRHEXMSRXSWLEVILSPHIVWXS XLIɸGSRWSPMHEXIHMRGSQIWXEXIQIRXEWJSPPS[W HIGPEVIEHMZMHIRHJSVERHMRWXIEHVIGSQQIRHIHXLEXRS HMZMHIRH[EWTEMH(IWTMXIXLI+VSYTFIMRKMREWSPMHƼRERGMEP >JFWJSIJI >JFWJSIJI TSWMXMSR[MXLWXVSRKPMUYMHMX]ERHPS[PIZIVEKIXLIHIGMWMSR[EW )JHJRGJW )JHJRGJW XEOIRHYIXSXLIYRGIVXEMRX]GEYWIHEXXLIXMQIF]'3:-(ERH (GBP m) 2020 2019 XSIRWYVIXLEX/MRHVIH[EW[IPPGETMXEPMWIHJSVJYXYVIMRZIWXQIRX 4VSƼXFIJSVIXE\ STTSVXYRMXMIW8LMW[EWYTLIPHEXXLI%+1 8E\EXMSREXXLIFEWMGMRGSQIXE\ VEXISJ TIVGIRX (YVMRKXLI&SEVHSJ(MVIGXSVWHIGMHIHXSVIZMWIXLITVIZMSYW HMZMHIRH ERHWLEVITYVGLEWI TSPMG]*YVXLIVHIXEMPWSJXLIRI[ )JJIGXWSJ TSPMG]GERFIJSYRHSRTEKI 8E\VIGSZIVEFPI1 3ZIVWIEWXE\VEXIW 7YFWIUYIRXXSXLMWXLI&SEVHSJ(MVIGXSVWMWRS[TVSTSWMRKEɸƼREP -XIQWSJMRGSQII\TIRHMXYVI HMZMHIRHMRVIWTIGXSJXLIƼRERGMEP]IEVIRHIH(IGIQFIV RSXXE\EFPIHIHYGXMFPI2 5 SJ+&4TIVSVHMREV]WLEVI7(6IUYEPXSEXSXEPHMZMHIRHSJ 9RGIVXEMRXE\TSWMXMSR3 5 ETTVS\MQEXIP]+&4QMPPMSR-JETTVSZIHEXXLI%+1SR1E] 3XLIV4 5 XLIMRWXEPQIRXW[MPPFITEMHSYXMRX[SIUYEPXVERGLIWSR 1E]ERH2SZIQFIV Tax expense 27.9 10.5 *FWSNSLXUJWXMFWJ 8LIGEPGYPEXMSRSJXLIFEWMGERHHMPYXIHIEVRMRKWTIVWLEVIMW 8LIXE\VIGSZIVEFPISJ+&4 +&4 QMPPMSRVITVIWIRXWXLI1EPXEXE\ VIJYRHEFPIMREGGSVHERGI[MXLETTPMGEFPIƼWGEPPIKMWPEXMSRSRMRXVE+VSYTHMZMHIRHW FEWIHSRXLIJSPPS[MRKHEXE HMWXVMFYXIHHYVMRKXLI]IEVERHXLI1EPXEXE\XLEXWLEPPFIVIGSZIVEFPIYTSR HMWXVMFYXMSRSJɸYRVIQMXXIHIEVRMRKW >JFWJSIJI >JFWJSIJI -RGPYHIHMRXLIƼKYVISJMWETVSZMWMSRSJ+&4 RMP QMPPMSRMRVIPEXMSR )JHJRGJW )JHJRGJW XSXLIƼRIMWWYIHF]XLI7[IHMWL+EQFPMRK6IKYPEXSV[LMGLMWGYVVIRXP]FIMRK (GBP m) 2020 2019 HMWTYXIH%HHMXMSREPP]EREQSYRXSJ+&4 +&4 QMPPMSRVITVIWIRXW XLIɸIJJIGXSJEWWIXWɸXLEXEVIRSXIPMKMFPIJSVXE\HITVIGMEXMSR Earnings 8LIYRGIVXEMRXE\TSWMXMSRSJ+&4 +&4 QMPPMSRVITVIWIRXWETVSZMWMSR )EVRMRKWJSVXLITYVTSWIWSJ SJɸTSXIRXMEPEHHMXMSREPXE\TE]EFPIMRPMRI[MXL-*6-' FEWMGERHHMPYXIHIEVRMRKWTIV -RGPYHIHMRSXLIVJSVXLIƼRERGMEP]IEVIRHIH(IGIQFIVMWEREQSYRXSJ WLEVI 165.2 +&4ɸ QMPPMSR[LMGLVITVIWIRXWPSWWIWVIEPMWIHF]IRXMXMIWSJXLI+VSYT 3ZRGJWTKXMFWJX SR[LMGLRSHIJIVVIHXE\LEWFIIRVIGSKRMWIH*SVXLI]IEVIRHIH(IGIQFIV EREQSYRXSJ+&4QMPPMSR[EWMRGPYHIH[LMGLVITVIWIRXIHEREHNYWXQIRXXSXLI ;IMKLXIHEZIVEKIRYQFIVSJ HIJIVVIHXE\VIGSKRMXMSRYTSRGSRWSPMHEXMSRSJXE\PSWWIWXLEXEVIIPMKMFPIJSVSJJWIX SYXWXERHMRKWLEVIWJSVXLI EKEMRWXJYXYVITVSƼXWRSWYGLEQSYRX[EWVIGSVHIHJSV8LIVIWMHYEPMXIQW TYVTSWIWSJFEWMGIEVRMRKW MRGPYHIHMRSXLIVLEZIɸRSXFIIRWITEVEXIP]HMWGPSWIHMRZMI[XLEXMRHMZMHYEPP]XLI]EVI RSXQEXIVMEP TIVɸWLEVI 'IVXEMRGSQTEVEXMZIƼKYVIWLEZIFIIRVIGPEWWMƼIHMRSVHIVXSGSRJSVQ[MXLXLI )JJIGXSJHMPYXMZITSXIRXMEP GYVVIRXɸ]IEVƅWTVIWIRXEXMSR SVHMREV]WLEVIWƁWLEVIE[EVHW ;IMKLXIHEZIVEKIRYQFIVSJ 8LIMRGSQIXE\VIGSKRMWIHHMVIGXP]MRIUYMX]HYVMRKXLI]IEVMW SYXWXERHMRKWLEVIWJSVXLI EWJSPPS[W TYVTSWIWSJHMPYXIHIEVRMRKW TIVɸWLEVI >JFWJSIJI >JFWJSIJI *FWSNSLXUJWXMFWJ,'5 )JHJRGJW )JHJRGJW )EVRMRKWTIVɸWLEVI 0.728 (GBP m) 2020 2019 (MPYXIHIEVRMRKWɸTIVWLEVI 0.721 )JKJWWJIYF] HWJINYHMFWLJNS WJQFYNTS࣢YT 7LEVIFEWIHTE]QIRXW 8LIRSQMREPZEPYITIVWLEVIMW+&4 ɸ+&4ɸ -0.1 0.1

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76 Strategic report

.SYFSLNGQJFXXJYX

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77 Notes to the consolidated ﬁnancial statements continued

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78 Strategic report

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3JYGTTP[FQZJ &Y)JHJRGJW 10.4 18.0 28.4 %X(IGIQFIV Kindred Group plc Annual Report and Accounts 2020 Accounts and Report Annual plc Group Kindred

79 Notes to the consolidated ﬁnancial statements continued

13: Leases 8LMWRSXITVSZMHIWMRJSVQEXMSRJSVPIEWIW[LIVIXLI+VSYTMWEPIWWII

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80 Strategic report

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81 Notes to the consolidated ﬁnancial statements continued

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20: Borrowings

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83 Notes to the consolidated ﬁnancial statements continued

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85 Notes to the consolidated ﬁnancial statements continued

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86 Strategic report

(MPYXMSRIJJIGXW 08-4 WLEVIE[EVHWPETWIHSV[IVIGERGIPPIHHYVMRK-JEPP 8LITVMRGMTEPXIVQWSJXLI474EVIETTPMGEFPIJSVXLI08-4 WLEVIFEWIHTVSKVEQQIWEVIJYPP]I\IVGMWIHXLIRSQMREPWLEVI GETMXEPSJXLI'SQTER][MPPMRGVIEWIF]EXSXEPQE\MQYQSJ+&4 8MFWJHFUNYFQFSIWJXJW[JX Governance +&4 F]XLIMWWYISJEXSXEPQE\MQYQ E 7LEVIGETMXEP SJSVHMREV]WLEVIW SVHMREV]WLEVIW GSVVIWTSRHMRKXSTIVGIRX TIVGIRX SJXLIGETMXEPERH As at 31 As at 31 )JHJRGJW )JHJRGJW ZSXIWMRXLI'SQTER] (GBP) 2020 2019 8LITVMRGMTEPXIVQWSJXLIWLEVIFEWIHTE]QIRXWGLIQIWEVI &ZYMTWNXJI WIXɸSYXFIPS[ SVHMREV]WLEVIW Financial statements PSP SJ+&4IEGL 9RHIVXLI474WLEVIE[EVHWEVIKVERXIHXSIQTPS]IIWSJXLI %X(IGIQFIV 'SQTER]ERHER]WYFWMHMEV]GSQTERMIW8LIWIE[EVHWZIWX .XXZJIFSIKZQQ^UFNIZU FEWIHSRXLIWYGGIWWJYPGSQTPIXMSRSJTIVJSVQERGIXEVKIXW &Y/FSZFW^FSI)JHJRGJW EKVIIHF]XLI&SEVH8LIE[EVHWEVIWLEVIWSV7(6WERHRSX ў STXMSRWXLIVIJSVIXLIVIMWRSI\IVGMWITVMGIEWWSGMEXIH[MXL TWINSFW^XMFWJX XLIE[EVHW%PPSXLIVTVMRGMTEPXIVQWSJXLIWGLIQIMRGPYHMRK TK,'5JFHM VIWTSRWMFMPMX]I\IVGMWITIVMSHWGLERKIWSJGSRXVSPWGLIQI Other information ERHɸMRHMZMHYEPPMQMXWEVIWIXSYXFIPS[

Responsibility for operation %WEX(IGIQFIVXLIXSXEPEQSYRXSJMWWYIHWLEVIW 8LI474WGLIQIMWSTIVEXIHF]XLI&SEVHSJ(MVIGXSVWSJXLI MR/MRHVIH+VSYTTPG[EW[MXLETEVZEPYI 'SQTER]XLVSYKLXLI6IQYRIVEXMSR'SQQMXXIIETTSMRXIHF] SJ+&4ɸ3JXLIWIWLEVIWEVILIPHF] XLI&SEVH[LMGLGSRWMWXWQEMRP]SJ2SRI\IGYXMZI(MVIGXSVWSJ XLI+VSYTɸEWEɸVIWYPXSJTVIZMSYWTYVGLEWITVSKVEQQIW XLI'SQTER] ;LIRXLIWIɸWLEVIWEVITYVGLEWIHSVWYFWIUYIRXP]YXMPMWIH XLIɸMQTEGXMWVIƽIGXIH[MXLMRVIXEMRIHIEVRMRKW Eligibility %RMRHMZMHYEPMWIPMKMFPIXSFIKVERXIHERE[EVHSRP]MJXLI]EVI (YVMRKTYVGLEWIHWLEVIW[IVIYWIHMRGSRRIGXMSR ERɸIQTPS]IISJETEVXMGMTEXMRKGSQTER] [MXLXLIZIWXMRKSJXLITIVJSVQERGIWLEVITPER

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87 Notes to the consolidated ﬁnancial statements continued

7JQFYJIUFWY^YWFSXFHYNTSX *SVHIXEMPWSJ(MVIGXSVWƅERH)\IGYXMZI'SQQMXXIIVIQYRIVEXMSRTPIEWIVIJIVXSXLI6IQYRIVEXMSR'SQQMXXIIVITSVXSRTEKI %WEXɸXLI]IEVIRH+&4RMP +&4 [EWS[IHXSXLI(MVIGXSVWMRVIWTIGXSJXLIWIWIVZMGIW

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>JFWJSIJI >JFWJSIJI )JHJRGJW )JHJRGJW (GBP m) Note 2020 2019 9TYFQFIRNSNXYWFYN[JJ]UJSXJX 224.1 219.0

0IWW7EPEVMIW -109.7 0IWW(ITVIGMEXMSRSJTVSTIVX]TPERXERHIUYMTQIRX -15.1 0IWW(ITVIGMEXMSRSJVMKLXSJYWIEWWIXW -11.3 0IWW%QSVXMWEXMSRSJMRXERKMFPIEWWIXW I\GPYHMRKSREWWIXWXLEXEVSWISREGUYMWMXMSR -24.3 4YMJWTUJWFYNSLJ]UJSXJX 63.7 73.6

+VSWW[MRRMRKWVIZIRYI 1,130.2 4YMJWTUJWFYNSLJ]UJSXJXFXFXMFWJTK,WTXX\NSSNSLXWJ[JSZJ 6% 8%

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88 Strategic report

>JFWJSIJI >JFWJSIJI )JHJRGJW )JHJRGJW (GBP m) Note 2020 2019

5WTܪYKWTRTUJWFYNTSX 205.8 70.9 Governance (ITVIGMEXMSRSJTVSTIVX]TPERXERHIUYMTQIRX 15.1 (ITVIGMEXMSRSJVMKLXSJYWIEWWIXW 11.3 %QSVXMWEXMSRSJMRXERKMFPIEWWIXW 34.2 -QTEMVQIRXPSWWIWVIGSKRMWIHMRXLI]IEV 7.8 EBITDA 274.2 128.1

+VSWW[MRRMRKWVIZIRYI 1,130.2 Financial statements EBITDA margin 24% 14%

As at As at )JHJRGJW )JHJRGJW (GBP m) Note 2020 2019 'EWLERHGEWLIUYMZEPIRXW 300.5 Other information 'YWXSQIVFEPERGIW -77.5 :SWJXYWNHYJIHFXM 223.0 70.4

0IWW&SVVS[MRKW 20 -118.3

3JYHFXM SJYIJGY 104.7 -155.0

)&-8(% 3JYHFXM SJYIJGYYT*'.9)&WFYNT 0.382 -1.210

As at As at )JHJRGJW )JHJRGJW (GBP m) 2020 2019 )UYMX] 412.1 2YQFIVSJWLEVIWEXTIVMSHIRH 230,126,200 *VZNY^UJWXMFWJ 1.791 1.017

>JFWJSIJI >JFWJSIJI )JHJRGJW )JHJRGJW (GBP m) Note 2020 20191 3JYHFXMLJSJWFYJIKWTRTUJWFYNSLFHYN[NYNJX 316.1 120.3

4YVGLEWIWSJTVSTIVX]TPERXERHIUYMTQIRX -5.2 4VSGIIHWJVSQWEPISJTVSTIVX]TPERXERHIUYMTQIRX –

(IZIPSTQIRXERHEGUYMWMXMSRGSWXWSJMRXERKMFPIEWWIXW -20.7 2020 Accounts and Report Annual plc Group Kindred

-RXIVIWXTEMHSRPIEWIPMEFMPMXMIW -1.3 6ITE]QIRXSJPIEWIPMEFMPMXMIW -11.3 %HNYWXJSVGYWXSQIVFEPERGIQSZIQIRX -10.1 +WJJHFXMܫT\1 267.5 48.5

2YQFIVSJWLEVIWEXTIVMSHIRH 230,126,200 +WJJHFXMܫT\UJWXMFWJ1 1.162

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89 Notes to the consolidated ﬁnancial statements continued

8ZGXJVZJSYJ[JSYX 3R*IFVYEV]/MRHVIHERRSYRGIHETEVXRIVWLMT[MXLXLI 5YIGLER8VMFISJXLI*SVX=YQE-RHMER6IWIVZEXMSRXSWIGYVI QEVOIXEGGIWWXS'EPMJSVRMEERH%VM^SRE8LIEKVIIQIRX[LMGL [MPPEPPS[/MRHVIHXSSJJIVFSXLSRPMRIERHVIXEMPWTSVXWFIXXMRKEW [IPPEWM+EQMRKWTERW]IEVWERHMRGPYHIWERI\XIRWMSRSTXMSR EXXLIIRHSJXLMWTIVMSH0EYRGLMRKMRXLIWI7XEXIWMWGSRHMXMSREP YTSRXLIɸMRXVSHYGXMSRSJPSGEPPIKMWPEXMSR

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90 Annual General Meeting Strategic report

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91 Deﬁnitions

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92 This Report is printed on materials which are FSC® certified from well-managed forests.

These materials contain ECF (Elemental Chlorine Free) pulp and are 100% recyclable.

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