Kindred Q2 2018 Final.Pdf

Henrik Tjärnström CEO

Q2 2018 25 July 2018

• Highlights Outline • Financial results • Business overview • Summary

1 © Kindred Group plc 2018 3

Q2 2018 Key Report Highlights

Gross Earnings Free Cash Active winnings EBITDA per share Flow customers revenue

GBP 219.0 m GBP 41.5 m GBP 0.112 GBP 35.3 m 1,550,508 (+31%) (+36%) (+24%) (+60%) (+32%)

2 LB T/O 95m World Cup Total T/O 295m Pre-game margin 13.1% 2018 LB margin 9.4% Combined margin 11.9% June GWR (14.1% margin) 27m July GWR (7.8% margin) 8m Total GWR* 35m

* Excl. bonus

2018 2014 Δ% Bets placed 44.9m 21.2m +112% Max. trans./day 35.5m 14.3m +148% Turnover 295m 112m +163% GWR 35m 16m +119% Combined margin 11.9% 14.3% World Cup 2018 © Kindred Group plc 2018 6

3 Tournament year investments – short term pain for long-term gain

Reported EBITDA Q1 v Q2 (GBPm) Q1 Q2 Change 2006 8.3 6.3 -24% 2008 13.0 8.3 -36% 2010 12.9 10.8 -16% Normal pattern of 2012 15.3 11.0 -28% business development 2014 21.3 16.0 -25% for a tournament quarter – the payback comes in 2016 27.6 21.1 -24% the following quarters 2018 47.3 41.5 -12%

Financial results

4 Q2 2018

Gross winnings revenue up 31 per cent “and all-time high in active customers”

Gross winnings revenue

GBPm 751.4

238.0 544.1

152.8 426.8 354.1 193.6 312.0 319.8 142.3 Q4 268.0 111.4 219.0 226.7 78.0 249.0 166.6 Q3 153.680.4 156.686.1 126.6 Q2 77.1 80.5 207.8 122.4 153.2 76.5 76.1 Q1 2012 2013 2014 2015 2016 2017 2018

5 Gross winnings revenue from mobile

GBPm +29% 180 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016 2017 2018

EBITDA – Excl 2014 Kambi one-off item

GBPm 180.3

73.8 120.7

38.9 88.8 75.5 77.0 46.6 Q4 63.4 18.4 26.2 33.1 59.9 41.5 52.5 48.7 Q3 21.7 30.5 35.3 33.417.4 21.1 14.0 Q2 19.0 47.3 27.6 29.4 21.3 14.4 Q1 2012 2013 2014 2015 2016 2017 2018

6 Q2 2018 P&L FX impact v Q2 2017

Avg rateQ2 2017 Q2 2018 Movement SEK11.261 11.792 -4.7% NOK 10.88810.906 -0.2% Weighted average movement EUR 1.1635.4 1.141 1.9% in FX rates: approx. 1% DKK 8.6478.501 1.7% AUD1.705 1.798 -5.5%

GBPm GWR increase 0.6 CoS / Opex increase 0.1 FX gain/(loss) on operating items -0.6 EBITDA FX impact Q2 2018 0.1 FX gain/(loss) on dividend 0.3 Profit before tax impact 0.4

Geographic growth – Key Report Highlights Q2 2018 vs Q2 2017

GWR as reported GWR in Organic GWR in in GBP constant currency constant currency

Nordics +9% +11% +11%

Western Europe +47% +45% +27%

7 Other Costs analysis Excl. Non-recurring items

2013 2014 2015 2016 2017 2018 GBPm FY FY FY FY FY Q2 Reported Other Costs 52.3 47.9 43.1 69.4 109.1 31.5

Depreciation & Amortisation -18.9 -16.8 -13.0 -23.8 -42.6 -11.8

FX loss/gain on Opex -0.6 -1.8 -0.7 -0.6 -1.5 -0.6 Other Costs post D&A and FX 32.8 29.3 29.4 45.0 65.0 19.1

Share of GWR (as reported) 12% 9% 8% 8% 9% 9%

EPS development – Excl 2014 one-off items

GBP 0.55 0.516 0.50 0.45 0.40 0.366 0.223 0.35 0.30 0.129 0.244 0.244 0.25 Q4 0.131 0.20 0.084 0.091 0.162 0.112 Q3 0.15 0.146 0.1030.057 0.10 0.059 0.090 Q2 0.059 0.131 0.05 0.087 0.044 0.072 Q1 0.00 2012 2013 2014 2015 2016 2017 2018

8 Business overview

Active customers ATH Thousands 1,600

1,400

1,200

1,000

800

600

400

200

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2013 2014 2015 2016 2017 2018

9 Sports betting gross margin Combined

Before free bets After free bets 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1Q2 Q3 Q4 YR Q1 Q2 2011 2012 2013 2014 2015 2016 2017 2018

Product & geographic balance Gross winnings revenue over time

By product, % By geography, %

Other 2 3 4 4 332 2 3 Other 2222223 2 3

45 Western 44 46 46 Casino & 51 48 50 47 47 50 52 Games 49 51 51 51 Europe 55 55 56

2 2 2 9 Poker 2 2 2 9 8 7 2 22 CES 7 6 21 7 7 23 22 7 Live betting 23 23 20 23 23 23

Nordics 42 45 44 45 41 40 30 35 36 34 Pre-game 22 24 22 23 23 26 betting 21 21

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 201620172018 2016 2017 2018

10 Unibet new main sponsor of Allsvenskan and Superettan

• Duration of 12 years • Begins on 1st January 2020 • Worth SEK 1.8 billion • One of the biggest investments in Swedish sports ever

Regulatory update

Licensing system got parliament approval Sweden & starts 1 Jan 2019 (18% tax)

Coalition deal reached in cabinet on Remote Gambling The Netherlands Bill with additional emphasis on responsible gambling – Senate plenary debate and vote expected in Q4 2018

France Privatisation of FdJ – “Pacte” law (early Q4)

Italy Advertising ban from end of June 2019

11 Regulatory update

• One of the potentially largest markets globally • State by state • Currently Nevada, Delaware and New Jersey • Closely monitored since many years USA • U.S. Supreme Court declared PASPA unconstitutional • It will be up to the states to decide whether to allow its residents to bet on sports • Kindred are investigating if and how we can launch any of our brands in the USA

JOIN US AT THE Sustainable Gambling Conference 2018 16 October in Stockholm

12 Summary Q2 2018

SB margin GWR ATH after FB in active customers 8.2% +31%

EBITDA EPS FCF +36% +24% +60%

13 Contact Calendar

26 Oct 2018 Investor Relations Q3 will be published at 7.30 CET Inga Lundberg 13 Feb 2019 +44 788 799 6116 Q4 will be published at 7.30 CET [email protected] 24 April 2019 Q1 will be published at 7.30 CET

24 July 2019 Q2 will be published at 7.30 CET