EQUITY RESEARCH 27 August 2021 Research report prepared by DNB Markets, a division of DNB Bank ASA Consumer Discretionary Q2 results review This report was completed and disseminated at 9:18 CET on 27 August 2021

LEOVEGAS BUY Recovery next after German crash TP: SEK56.0 We have fine-tuned our 2022e EBITDA (-3%), but remain attracted to the revenue-growth prospects and LEO versus OMXS30 (12m) healthy cash flow. Although we would like to see a bit 65 60 55 more sales-growth payoff from the recent step-up in 50 45 marketing spending, we reiterate our BUY and SEK56 40 35 target price, which reflect our expectations of a growth 30 25 recovery in Q3 and a healthy outlook for 2022e. aug okt dec feb apr jun aug LeoVegas OMXS30 (Rebased)

Following the Q2 results, which included a 15% YOY decline in organic revenue (or Source: Factset 3% growth excluding Germany) and a 57% YOY decline in adj. EBITDA (slightly below SUMMARY our forecast), we have trimmed our 2022e sales and EBITDA by 2% and 3%, Recommendation (prev.) BUY (BUY) respectively. Our changes reflect: the poor revenue in Germany (4% of group versus Share price (SEK) 38.2 18% a year ago), explained by re-regulation headwinds; a c20% YOY increase in rest- Target price (previous) (SEK) 56.0 (56.0) Upside/downside potential (%) 47 of-world Q2 revenue (driven by Canada at +33% YOY), which was slightly lower than Tickers LEO SS we expected; and solid Q2 Nordic revenue, which rose by 5% YOY despite the tough CAPITAL STRUCTURE pandemic-related YOY comparables and temporary regulated-market restrictions. No. of shares (m) 99.7 No. of shares fully dil. (m) 99.6 Decent near-term outlook. As we expected, LeoVegas’s growth trend improved in Market cap. (SEKm) 3,812 July, with monthly revenue of EUR32.8m, up 7% YOY (or +23% excluding Germany), NIBD adj end-2021e (EURm) 1 Enterprise value adj (EURm) 374 likely owing to more normal YOY comparables and, possibly, the relatively high Net debt/EBITDA adj (x) 0.02 marketing spending in the previous months (c39% of revenue in Q2 versus c34% in NAV per share (SEK) 26.6 2020). We expect a growth recovery in Q3, including organic sales and EBITDA growth Free float (%) 88 Source: Company, DNB Markets (estimates) of 8–16% YOY. In our view, this would better reflect the company’s underlying growth Note: Unless otherwise stated, the share prices in this trend and future prospects. note are the last closing price.

BUY and SEK56 target price reiterated. In our view, Germany cannot get much worse NEXT EVENT from here. In the medium term, there could be upside potential for LeoVegas when the Q3 2021 11/11/2021 authorities clamp down on illegal operators that have gained market share. Moreover, ESTIMATE CHANGES (EUR) we find it comforting that LeoVegas is growing well in most other markets, including the Year-end Dec 2021e 2022e 2023e Nordics, Canada, and Italy. The upside potential to our forecast scenario (e.g. 2022e Sales (old) 406.2 449.2 491.0 Sales (new) 398.9 442.5 483.8 sales growth of 11% YOY) comes mainly from the ongoing expansion in North America Change (%) -1.8 -1.5 -1.5 (Canada 10% of Q2 group revenue ahead of Ontario re-regulation and US entry with Consensus 403.5 450.8 493.7 Caesars in H1 2022e). We are attracted to the underlying revenue, earnings, and cash- EPS (old) 0.38 0.48 0.56 EPS (new) 0.35 0.47 0.54 flow growth trend and outlook, although we would like to see more sales-growth payoff Change (%) -6.8 -2.8 -3.8 from the recent step-up in marketing (+17% YOY in Q2 rolling 12-months). Consensus 0.19 0.33 0.45

Year-end Dec 2017 2018 2019 2020 2021e 2022e 2023e Source: DNB Markets, Bloomberg 2021-08-26 Revenue (EURm) 217 328 356 387 399 443 484

EBITDA adj (EURm) 28 41 44 55 52 65 75 EBIT adj (EURm) 22 36 34 45 40 51 61 PTP (EURm) 19 44 10 22 20 38 59 EPS rep (EUR) 0.18 0.43 0.09 0.19 0.17 0.34 0.54 EPS adj (EUR) 0.20 0.33 0.30 0.40 0.35 0.47 0.54 DPS (EUR) 0.12 0.12 0.13 0.16 0.21 0.24 0.27 Revenue growth (%) 53.5 51.1 8.6 8.8 3.0 10.9 9.3 EBITDA growth adj (%) 31.2 47.1 7.6 25.2 -5.4 24.3 15.9 ANALYSTS EPS growth adj (%) 1.5 64.5 -6.9 31.6 -12.1 32.5 15.6 Martin Arnell EBITDA margin adj (%) 12.9 12.5 12.4 14.3 13.1 14.7 15.6 [email protected] EV/Sales adj (x) 3.98 1.41 0.93 0.92 0.94 0.80 0.69 +46 8 473 48 95 EV/EBITDA adj (x) 30.9 11.2 7.5 6.5 7.1 5.4 4.4 EV/EBIT adj (x) 39.4 12.7 9.7 8.0 9.3 6.9 5.5 Please see the last two pages for P/E adj (x) 42.9 11.8 9.3 8.7 10.6 8.0 6.9 important information. This research P/Book (x) 14.42 3.94 2.93 3.56 3.72 3.27 2.59 report was not produced in the US. ROE (%) 33.0 54.4 9.6 19.7 17.6 31.9 41.6 Analysts employed by non-US Dividend yield (%) 1.4 3.0 4.7 4.5 5.5 6.3 7.3 affiliates are not registered/ FCF yield (%) -1.9 -17.0 13.6 16.5 7.5 11.9 13.8 qualified research analysts with FINRA in the United States. Source: Company (historical figures), DNB Markets (estimates)

DNB Markets | LeoVegas 27 August 2021

Investment case overview Share price performance, DNB Markets’ target price, bear- and bull-case scenarios Target price methodology ◼ We continue to base our target price 97.0 on a 2022e EV/EBITDA of 8x. SEK91.0 (138%) 87.0 ◼ Our bull-case fair value is based on 77.0 the company approaching its long-

67.0 term revenue and EBITDA targets (15% margin assuming 100% of 57.0 SEK56.0 (47%) revenue subject to gaming tax). 47.0 SEK38.2 ◼ Our bear-case fair value is based on 37.0 increasing competitive pressure and stable EBITDA in our forecast period. 27.0 SEK24.0 (-37%) 17.0 aug 2020 dec 2020 apr 2021 aug 2021 dec 2021 apr 2022 aug 2022

Historical Share Price Performance Price Target (aug 22) Current Share Price

Source: FactSet, DNB Markets Source: DNB Markets

Downside risks to our investment DNB Markets investment case and Upside risks to our investment case case how we differ from consensus ◼ Sharper negative effect from Covid-19 ◼ A total European online gaming market ◼ Acquisitions at attractive multiples in than in our estimates. 2018–2022e CAGR of 7%, with mobile new regions. at 14%. ◼ Increasing competition and rising ◼ Organic growth close to historical customer-acquisition costs. ◼ Total online market share of c2% in levels and significantly above our 2022e and a mobile share of c4%. c10% forecast for 2022–2023. ◼ Significant margin pressure from the re-regulation across Europe. ◼ Annual organic revenue growth of ◼ Partnership and expansion in the US c10% for 2022–2023e and a 2020– market for the LeoVegas brand. ◼ Costlier than planned expansion in 2023e EBITDA CAGR of 11%. new European markets such as Italy, ◼ On track to reach its long-term EBITDA Germany, and Spain. ◼ Our estimates factor in stable ARPU, margin target of 15%, with 100% of growth in depositing customers, and revenue from regulated markets. ◼ Higher gaming tax than we forecast. reduced customer-acquisition costs. ◼ Potential interest in a business ◼ Low ‘channelisation’ in re-regulated ◼ c40–50% dividend payout per year combination from a larger global markets where LeoVegas is licensed. and 2023e net cash of cEUR40m. gaming company.

Source: DNB Markets Source: DNB Markets Source: DNB Markets

Adj. EBITDA bridge 2020–2022e (EURm)

102.00 92.00 -15.44 82.00

72.00 -4.12 -15.44 11.46 62.00 -10.33 43.62 52.00 42.00 32.00 22.00 55.39 52.40 65.14

12.00

2020

Opex Opex

2021e 2022e

Revenue Revenue

Costof services Costof services

Source: DNB Markets (forecasts), company (historical data)

2 DNB Markets | LeoVegas 27 August 2021

ESG overview Sustainability assessment

Positive Negative Conclusions ◼ Part of LeoVegas’s sustainability strategy is to ◼ There is a risk for certain individuals that their strive for long-term and sustainable relationships gaming can go beyond entertainment to instead with customers. Key is that customers view gaming cause financial and/or social problems (gambling as entertainment, and play safely and responsibly addiction/problem gambling). (stable ARPU), according to the company. ◼ In the UK (Europe’s largest regulated gaming ◼ LeoVegas is part of the global trend of gaming market), 0.7% of people aged 16+ are classified as regulation (re-regulation/locally licensed markets), problem gamblers (2016), according to the UK which helps to channel the market to regulated Gambling Commission (UKGC). In Sweden, the services under authority control. figure is 0.6% (2018), according to Swelogs (the Public Health Agency of Sweden). ◼ In addition to the gaming tax (state funds), regulated gaming aims to protect consumers from ◼ In general, c2% of gamblers can be identified as unlicensed gaming (black market), which could problem gamblers, we believe, after discussing the pose a higher risk of developing problem gambling. matter with industry stakeholders in the past 10+ years and based on studies (e.g. by the UKGC).

Actions being taken ◼ c50% of LeoVegas’s revenue is from locally ◼ Efficient customer acquisition or data-driven by company licensed markets, where it pays gaming taxes and marketing is key to LeoVegas’s business model. In follows regulatory requirements, e.g. duty of care 2020, its marketing costs were 34% of total and extensive guidelines for responsible gaming revenue (42%, 37%, and 33% in 2017–2019, (RG). respectively).

◼ The company has invested in compliance, ◼ In online casino (90% of revenue), there is resources, and knowledge to handle regulated generally a short time between bet and outcome, markets and licence requirements; c10% of meaning a higher risk of developing problem employees work in areas like RG and compliance. gambling than e.g. lotteries or sports betting.

◼ LeoSafePlay: a platform/tool for RG; machine ◼ LeoVegas’s 2020 quarterly average deposit per learning/algorithms to detect problem gambling. depositing customer was EUR716, down 7% YOY.

Key ESG drivers Short-term ◼ To obtain high ‘channelisation’ (locally licensed ◼ Even with strict AML, KYC, and RG measures in gaming share of all gaming) and protect place, a leading gaming operator such as consumers and tax income, authorities need to find LeoVegas faces the risk of problem gaming and efficient ways to stop unlicensed gaming operators even money laundering among its customer base. (illegal black market competition). ◼ Other: locally licensed revenue might decrease, as ◼ Other: all employees are trained in responsible unregulated has the best growth at the moment; gambling; pure online services and thus low RG and exploiting earnings do not necessarily go environmental impact; and an initiative for women hand in hand near-term; risk for potential breach of in the tech industry called ‘Leoregulus’. licence requirements (fines); and negative media focusing on problem gaming as a phenomenon.

Long-term ◼ Locally licensed markets (taxes and requirements) ◼ Some customers have difficulties controlling their increase barriers to entry and dampen the effect on behaviour, so LeoVegas will probably always need competition, we believe. Growing percentage of to handle problem gamblers to some extent. revenue from locally licensed markets as more ◼ A potential breach of regulation could result in countries realise re-regulation is responsible. material fines and ultimately risk losing a licence ◼ The gambling industry matures, which is likely to longer-term. Also, unfavourable re-regulation with drive consolidation and higher barriers to entry; e.g. rising taxes or harsh requirements could be a fewer operators available and less aggressive threat longer-term. marketing from new market entrants.

Source: DNB Markets

3 DNB Markets | LeoVegas 27 August 2021

Figure 1: Q2 DNB Markets versus consensus Key highlights Q2 2021 Deviation (%) Deviation, Abs Q2 2020 DNBe (EURm, except per share data) Actual DNB Cons. DNB Cons. DNB Cons. Actual 2021 Revenue 96.8 100.7 99.8 -4% -3% -3.9 -3.0 110.7 399 Cost of services (COS) -32.4 -32.1 -0.3 -36.0 -129 % COS of revenue -33.5% -31.9% -32.5% -32.4% Gross profit 64.4 68.6 -6% -4.2 74.7 270 Opex -61.6 -64.7 3.1 -58.5 -247 - Personnel -13.5 -13.5 0.0 -13.2 -54 - Marketing -37.6 -38.3 -36.4 0.7 -1.2 -32.7 -145 % marketing of revenue -38.8% -38.1% -36.0% -29.6% -36.4% - Other costs adj. -6.7 -8.8 2.1 -9.0 -32 - D&A -7.0 -7.1 0.1 -6.8 -28 - Capitalised development 3.9 3.0 0.9 2.8 13 - IAC -0.8 0.0 0.0 -0.8 -0.8 0.0 -1 EBITDA 9.8 11.0 10.8 -11% -9% -1.2 -1.0 23.0 51 EBITDA margin 10.1% 10.9% 12.2% 20.8% 12.8% EBITDA adj. 10.6 11.0 10.8 -4% -2% -0.4 -0.2 23.0 52 EBITDA adj. margin 10.9% 10.9% 12.2% 20.8% 13.1% EBIT 2.8 3.9 5.1 -1.1 -2.3 16.3 23 EBIT margin 2.9% 3.8% 5.0% 14.7% 5.7% Financial net -0.7 -0.5 -0.4 -0.2 -0.3 -0.5 -3 PTP 2.1 3.4 4.7 -1.3 -2.6 15.8 20 Tax -1.0 -0.3 -0.5 -0.7 -0.5 -0.9 -3 Net profit 1.1 3.1 4.2 -2.0 -3.1 14.9 17 Net profit adj. 6.0 7.2 -1.2 19.0 35 EPS 0.010 0.031 0.040 -0.02 -0.03 0.146 0.175

Grow th YOY Group revenue -13% -9% -9% 17% 3% - Organic -10% -11% 25% 0% Opex 5% 11% 6% 3% EBITDA -57% -52% -47% 53% -1% EBITDA adj. -54% -52% -47% 53% -5% EPS -93% -79% -73% n.m. -9%

Key operating data Q2 2021 Deviation (%) Deviation, Abs Q2 2020 DNBe (EURm) Actual DNB Cons. DNB Cons. DNB Cons. Actual 2021 Revenue by region Nordic 39.7 39.1 2% 0.6 37.7 159 Rest of Europe 37.8 40.5 -7% -2.8 56.5 159 Rest of World 19.4 21.1 -8% -1.8 16.6 80 Group revenue 96.8 100.7 101.0 -4% -4% -3.9 -4.2 110.7 399

Revenue by product Classic casino 71.6 70.9 1% 0.7 86.4 289 Live casino 14.5 18.5 -22% -4.0 19.9 63 Sportsbook 10.6 11.3 -6% -0.6 4.4 47 Group revenue 96.8 100.7 101.0 -4% -4% -3.9 -4.2 110.7 399 Source: Company (historical data), DNB Markets (forecasts), Infront consensus 2021-05-27, and company collected estimates for revenue, EBITDA and adj. EBITDA

4 DNB Markets | LeoVegas 27 August 2021

Forecast changes – P&L New Old Change (EURm) 2021e 2022e 2023e 2021e 2022e 2023e 2021e 2022e 2023e Revenues 399 443 484 406 449 491 -7 -7 -7 Cost of sales -129 -145 -164 -130 -148 -167 1 3 3 Gross profit 270 298 320 276 301 324 -7 -4 -4

Operating expenses -219 -233 -244 -222 -234 -246 4 2 2 EBITDA 51 65 75 54 67 78 -3 -2 -3 EBITDA adj 52 65 75 55 67 78 -2 -2 -3 EBITDA margin (%) 12.8 14.7 15.6 13.3 14.9 15.9 -0.5 -0.2 -0.3

Depreciation -2 -3 -3 -2 -3 -3 0 0 0 EBITA 49 62 72 52 64 75 -3 -2 -3

Amortisation -26 -23 -12 -26 -23 -12 0 0 0 EBIT 23 39 61 26 41 63 -3 -2 -3 EBIT adj 40 51 61 42 53 63 -2 -2 -3

Net interest -3 -1 -1 -3 -1 0 0 Other financial items 0 0 0 0 0 Net financial items -3 -1 -1 -3 -1 0 0 PBT 20 38 59 23 39 62 -3 -2 -3

Taxes -3 -4 -6 -2 -4 -6 -1 0 0 Net profit 17 34 54 21 36 56 -4 -2 -2 Adjustments to net profit 18 12 0 17 12 0 1 0 0 Net profit adj 35 46 54 38 48 56 -3 -2 -2

Per share data (EUR) EPS 0.17 0.34 0.54 0.21 0.36 0.56 -0.04 -0.01 -0.02 EPS adj 0.35 0.47 0.54 0.38 0.48 0.56 -0.03 -0.01 -0.02 DPS 0.21 0.24 0.27 0.20 0.23 0.27 0.01 0.01 0.00

Other key metrics (%) Revenue growth 3.0 10.9 9.3 4.8 10.6 9.3 -1.9 0.3 0.0 EBIT adj growth -9.4 27.4 18.1 -4.8 25.4 19.1 -4.6 1.9 -1.0 EPS adj growth -12.1 32.5 15.6 -5.7 27.0 16.7 -6.5 5.5 -1.1

Avg. number of shares (m) 100 100 100 100 100 100 -1 -1 -1 Capex -13 -14 -16 -12 -13 -15 -2 -1 -1 NIBD adj 1 -18 -41 0 -23 -51 1 5 10 Source: DNB Markets

5 DNB Markets | LeoVegas 27 August 2021

Forecast changes – By segment and assumptions New Old Change (EURm) 2021e 2022e 2023e 2021e 2022e 2023e 2021e 2022e 2023e Revenue Nordic 159 171 180 155 166 174 4 5 6 Rest of Europe 159 178 193 167 183 198 -7 -5 -6 Rest of World 80 94 111 85 100 119 -4 -7 -8 Group total 399 443 484 406 449 491 -7 -7 -7 Classic casino 289 308 326 288 304 322 1 4 4 Live casino 63 80 94 70 83 99 -7 -4 -5 Sportsbook 47 55 63 48 62 70 -2 -7 -6 Group total 399 443 484 406 449 491 -7 -7 -7

Assumptions Revenue growth 2.96 10.93 9.32 4.84 10.58 9.29 -1.88 0.35 0.03 - Organic 0.17 9.63 9.32 2.11 9.30 9.29 -1.94 0.33 0.03 - FX 1.06 0.18 0.00 0.88 -0.02 0.00 0.17 0.20 0.00 - Acq/div 1.73 1.12 0.00 1.85 1.30 0.00 -0.12 -0.18 0.00 - Other 0.00 0.00 0.00 0.00 0.00 Adj. EBITDA growth -5.39 24.30 15.86 -1.43 22.58 16.75 -3.97 1.72 -0.89 Adj. EBITDA margin 13.14 14.72 15.60 13.44 14.90 15.92 -0.30 -0.18 -0.32 Adj. EBIT margin 10.12 11.62 12.55 10.45 11.85 12.91 -0.32 -0.23 -0.36 Adj. EPS growth -12.13 32.48 15.58 -5.68 27.01 16.69 -6.45 5.47 -1.11 Source: DNB Markets

6 DNB Markets | LeoVegas 27 August 2021

Quarterly numbers (EURm) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021e Q4 2021e Q1 2022e Q2 2022e Q3 2022e Revenues 89 111 89 98 97 97 100 105 108 107 111 Cost of sales -30 -36 -28 -31 -31 -32 -32 -34 -35 -35 -36 Gross profit 60 75 61 67 65 64 68 71 73 72 74

Operating expenses -51 -52 -49 -59 -55 -55 -55 -54 -56 -58 -58 EBITDA 9 23 12 8 10 10 14 17 17 15 17

Depreciation -1 -1 -1 -3 -1 -1 -1 -1 -1 -1 -1 EBITA 8 22 11 5 10 9 13 16 16 14 16

Amortisation -6 -6 -6 -6 -6 -6 -7 -7 -7 -7 -7 EBIT 2 16 5 -1 4 3 7 10 10 7 9

Net interest 0 0 0 -1 -1 -1 -1 -1 -1 -1 -1 Other financial items 1 0 0 0 0 0 0 0 0 0 0 Net financial items 0 0 0 -1 -1 -1 -1 -1 -1 -1 -1 PBT 2 16 5 -1 3 2 6 9 9 7 9

Taxes 0 -1 -1 -1 0 -1 -1 -1 -1 -1 -1 Net profit 2 15 4 -2 2 1 6 8 8 6 8 Adjustments to net profit 3 4 4 10 5 5 4 4 4 4 4 Net profit adj 6 19 8 8 7 6 10 12 12 10 12

Per share data (EUR)

Growth and margins (%) Revenues, QOQ growth 2.7 23.8 -19.7 10.6 -1.7 0.1 3.5 4.9 2.6 -0.4 3.1 Revenues, YOY growth 3.6 17.3 0.8 13.0 8.1 -12.6 12.7 6.9 11.5 10.9 10.5 EPS adj, YOY growth nm nm nm nm nm nm nm nm nm nm nm

Gross margin 66.9 67.5 68.4 68.0 67.6 66.5 68.2 68.0 67.7 67.5 67.2 EBITDA adj margin 10.0 20.8 13.4 11.7 11.3 10.9 13.8 16.3 15.8 13.5 14.9 Depreciation/revenues -0.7 -0.5 -0.7 -2.6 -0.5 -0.6 -0.6 -0.6 -0.6 -0.7 -0.6 EBIT adj margin 7.1 18.4 10.4 8.9 8.5 7.9 10.7 13.1 12.7 10.4 11.8 Net profit margin nm nm nm nm nm nm nm nm nm nm nm Source: Company (historical figures), DNB Markets (estimates)

Adjustments to quarterly numbers (EURm) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021e Q4 2021e Q1 2022e Q2 2022e Q3 2022e EBITDA 9 23 12 8 10 10 14 17 17 15 17 Other EBITDA adjustments 0 0 0 4 1 1 0 0 0 0 0 EBITDA adj 9 23 12 11 11 11 14 17 17 15 17

EBITA 8 22 11 5 10 9 13 16 16 14 16 Other EBITA adjustments 0 0 0 4 1 1 0 0 0 0 0 EBITA adj 8 22 11 9 10 10 13 16 16 14 16

EBIT 2 16 5 -1 4 3 7 10 10 7 9 Other EBIT adjustments 4 4 4 10 5 5 4 4 4 4 4 EBIT adj 6 20 9 9 8 8 11 14 14 11 13

Net profit 2 15 4 -2 2 1 6 8 8 6 8 Other EBIT adjustments 4 4 4 10 5 5 4 4 4 4 4 Net profit adj 6 19 8 8 7 6 10 12 12 10 12 Source: Company (historical figures), DNB Markets (estimates)

7 DNB Markets | LeoVegas 27 August 2021

Quarterly numbers by segment and assumptions (EURm) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021e Q4 2021e Q1 2022e Q2 2022e Q3 2022e Revenue Nordic 37 38 31 35 37 40 41 42 41 41 43 Rest of Europe 41 56 42 46 41 38 39 42 44 43 44 Rest of World 12 17 16 17 19 19 20 21 23 23 24 Group total 89 111 89 98 97 97 100 105 108 107 111 Classic casino 66 86 68 74 72 72 72 74 75 76 77 Live casino 15 20 14 16 16 15 15 17 19 20 20 Sportsbook 8 4 6 9 9 11 13 14 14 12 13 Group total 89 111 89 98 97 97 100 105 108 107 111

Assumptions Revenue growth 3.64 17.27 0.78 12.96 8.14 -12.56 12.73 6.89 11.49 10.90 10.47 - Organic 7.99 24.99 6.35 19.44 7.69 -15.18 8.30 2.38 8.41 8.82 10.41 - FX -0.43 -1.16 -0.79 -1.03 0.45 1.63 1.52 1.49 0.47 0.21 0.06 - Acq/div 0.00 0.00 0.00 0.00 0.00 0.99 2.91 3.02 2.62 1.87 0.00 - Other -3.91 -6.56 -4.79 -5.44 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Adj. EBITDA growth 24.42 52.99 -6.68 24.67 22.26 -54.15 16.03 48.61 55.84 37.57 19.64 Adj. EBITDA margin 10.01 20.81 13.38 11.69 11.32 10.91 13.77 16.25 15.82 13.54 14.92 Adj. EBIT margin 7.05 18.36 10.37 8.86 8.51 7.91 10.68 13.11 12.71 10.37 11.84 Adj. EPS growth 36.44 64.63 -11.06 25.45 24.83 -67.85 20.32 65.96 78.54 68.14 22.72 Source: Company (historical figures), DNB Markets (estimates)

8 DNB Markets | LeoVegas 27 August 2021

Annual P&L (EURm) 2014 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e Revenues 37 83 141 217 328 356 387 399 443 484 Cost of sales -9 -19 -32 -54 -92 -119 -125 -129 -145 -164 Gross profit 28 64 109 163 236 237 262 270 298 320

Operating expenses -26 -63 -93 -137 -194 -188 -210 -219 -233 -244 EBITDA 2 1 16 26 42 50 52 51 65 75

Depreciation 0 0 0 -1 -1 -13 -4 -2 -3 -3 EBITA 2 1 16 25 41 37 48 49 62 72

Amortisation 0 0 -1 -5 -21 -24 -25 -26 -23 -12 EBIT 2 1 15 20 19 13 23 23 39 61

Net interest 0 0 0 0 -2 -2 -2 -3 -1 -1 Other financial items 0 0 0 -1 27 0 1 0 0 0 Net financial items 0 0 0 -1 25 -2 -1 -3 -1 -1 PBT 2 1 15 19 44 10 22 20 38 59

Taxes 0 0 0 -1 -1 -1 -2 -3 -4 -6 Effective tax rate (%) 11 16 1 4 3 7 10 13 10 10 Net profit 2 0 14 18 43 10 19 17 34 54 Adjustments to net profit 0 1 5 2 -10 21 21 18 12 0 Net profit adj 2 2 20 20 33 31 40 35 46 54

Dividend paid 0 0 0 -10 -12 -12 -14 -16 -21 -23 Avg. number of shares 24 24 101 101 102 102 101 100 100 100

Per share data (EUR) EPS 0.08 0.02 0.14 0.18 0.43 0.09 0.19 0.17 0.34 0.54 EPS adj 0.07 0.07 0.20 0.20 0.33 0.30 0.40 0.35 0.47 0.54 DPS 0.00 0.00 0.10 0.12 0.12 0.13 0.16 0.21 0.24 0.27

Growth and margins (%) Revenue growth 130.3 124.4 70.3 53.5 51.1 8.6 8.8 3.0 10.9 9.3 EPS adj growth nm -0.8 171.4 1.5 64.5 -6.9 31.6 -12.1 32.5 15.6

Gross margin 76.7 77.6 77.2 75.0 71.9 66.6 67.7 67.6 67.3 66.1 EBITDA margin 6.0 1.4 11.3 12.0 12.7 13.9 13.4 12.8 14.7 15.6 EBITDA adj margin 6.0 3.0 15.1 12.9 12.5 12.4 14.3 13.1 14.7 15.6 Depreciation/revenues -0.3 -0.3 -0.3 -0.3 -0.3 -3.5 -1.1 -0.6 -0.6 -0.6 EBIT margin 5.2 0.6 10.3 9.2 5.8 3.6 5.9 5.7 8.8 12.6 EBIT adj margin 5.2 2.2 14.1 10.1 11.0 9.6 11.5 10.1 11.6 12.6 PBT margin 5.2 0.6 10.3 8.7 13.6 2.9 5.6 5.0 8.5 12.3 Net profit margin nm nm nm nm nm nm nm nm nm nm Source: Company (historical figures), DNB Markets (estimates)

9 DNB Markets | LeoVegas 27 August 2021

Adjustments to annual P&L (EURm) 2014 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e EBITDA 2 1 16 26 42 50 52 51 65 75 Other EBITDA adjustments 0 1 5 2 0 -5 4 1 0 0 EBITDA adj 2 2 21 28 41 44 55 52 65 75

EBITA 2 1 16 25 41 37 48 49 62 72 Other EBITA adjustments 0 1 5 2 0 -5 4 1 0 0 EBITA adj 2 2 21 27 40 32 51 50 62 72

EBIT 2 1 15 20 19 13 23 23 39 61 Other EBIT adjustments 0 1 5 2 17 21 22 18 12 0 EBIT adj 2 2 20 22 36 34 45 40 51 61

Net profit 2 0 14 18 43 10 19 17 34 54 Other EBIT adjustments 0 1 5 2 17 21 22 18 12 0 Net profit adj 2 2 20 20 33 31 40 35 46 54

Per share data (EUR) EPS 0.08 0.02 0.14 0.18 0.43 0.09 0.19 0.17 0.34 0.54 Recommended adjustment 0.00 0.05 0.05 0.02 -0.10 0.21 0.21 0.18 0.12 0.00 EPS adj 0.07 0.07 0.20 0.20 0.33 0.30 0.40 0.35 0.47 0.54 Source: Company (historical figures), DNB Markets (estimates)

Cash flow (EURm) 2014 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e Net profit 2 0 14 18 43 10 19 17 34 54 Depreciation and amortisation 0 1 1 6 22 37 29 28 26 15 Other non-cash adjustments 0 0 0 2 -27 -8 3 0 0 0 Change in net working capital 3 5 11 8 -2 -2 18 6 -2 -1 Cash flow from operations (CFO) 5 6 27 34 36 37 69 52 59 67

Capital expenditure -2 -2 -4 -6 -11 -9 -11 -13 -14 -16 Acquisitions/Investments 0 0 0 -44 -94 0 -4 -10 0 0 Divestments 0 0 0 0 2 11 3 0 0 0 Cash flow from investing (CFI) -2 -2 -4 -50 -103 2 -12 -24 -14 -16

Free cash flow (FCF) 3 4 23 -16 -67 39 58 28 44 51

Net change in debt 0 0 0 20 79 -30 -70 0 0 0 Dividends paid 0 0 0 -10 -12 -12 -14 -16 -21 -23 Other 11 1 15 0 4 -3 41 -8 -3 -3 Cash flow from financing (CFF) 11 1 15 10 72 -45 -44 -24 -24 -27

Total cash flow (CFO+CFI+CFF) 15 5 39 -6 5 -6 14 4 20 25

FCFF calculation Free cash flow 3 4 23 -16 -67 39 58 28 44 51 Less: net interest 0 0 0 0 2 2 2 3 1 1 Less: tax shields/other 0 0 0 0 0 0 0 0 0 0 Less: acquisitions 0 0 0 44 94 0 4 10 0 0 Less: divestments 0 0 0 0 -2 -11 -3 0 0 0 Free cash flow to the firm 3 4 23 28 27 30 60 41 46 53

Growth (%) CFO 362.3 33.3 324.8 25.5 7.1 1.5 87.0 -24.9 12.8 14.4 CFI -188.0 -46.6 -69.8 -1189.0 -106.2 101.9 -694.4 -105.6 39.7 -10.0 FCF 553.1 26.9 467.0 -168.9 -316.8 158.4 47.9 -51.2 57.4 15.9 CFF 499.8 -91.2 1429.2 -35.3 620.9 -162.2 1.2 46.1 -0.1 -12.4 FCFF 553.1 31.7 445.8 20.6 -3.2 11.4 99.4 -32.7 12.5 15.4 Source: Company (historical figures), DNB Markets (estimates) 10 DNB Markets | LeoVegas 27 August 2021

Balance sheet (EURm) 2014 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e Assets 23 33 78 185 279 262 249 259 270 301

Trade receivables 3 4 7 15 29 35 23 31 31 34 Other receivables 0 2 3 7 8 5 5 6 8 9 Cash and cash equivalents 17 23 60 53 57 51 63 68 88 113 Current assets 21 28 70 75 94 91 92 105 127 155

Property, plant and equipment 0 1 1 3 4 3 2 3 3 2 Goodwill 0 1 1 45 103 95 95 96 96 96 Other intangible assets 2 3 5 61 75 62 48 46 38 43 Other tangible assets 0 0 0 0 0 8 9 6 2 0 Defferred tax assets 0 0 1 2 3 3 3 5 5 5 Non-current assets 2 5 8 110 186 171 157 155 143 146

Total assets 23 33 78 185 279 262 249 259 270 301

Equity and liabilities 23 33 78 185 279 262 249 259 270 301

Total equity 15 17 51 59 100 98 98 100 114 144

Trade payables 4 5 9 15 18 21 20 34 29 28 Other payables and accruals 4 11 17 87 58 67 75 72 75 79 Short-term debt 0 0 0 0 30 30 0 0 0 0 Total current liabilities 8 16 26 102 106 118 96 106 104 107

Long-term debt 0 0 0 20 70 40 49 48 48 48 Other non-current liabilities 0 1 1 4 4 6 7 6 4 2 Total non-current liabilities 0 1 1 24 73 46 56 54 52 50

Total liabilities 8 16 27 126 179 164 151 159 156 157

Total equity and liabilities 23 33 78 185 279 262 249 259 270 301

Key metrics Net interest bearing debt -17 -22 -55 15 68 44 8 1 -18 -41 Source: Company (historical figures), DNB Markets (estimates)

11 DNB Markets | LeoVegas 27 August 2021

Valuation ratios (EURm) 2014 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e Enterprise value Share price (EUR) 3.81 8.52 3.87 2.83 3.47 3.74 3.74 3.74 Number of shares (m) 22.44 23.46 99.70 99.70 101.7 101.7 100.9 99.75 99.75 99.75 Market capitalisation 380 849 393 287 350 373 373 373 Net interest bearing debt -17 -22 -55 15 68 44 8 1 -18 -41 Adjustments to NIBD 0 0 0 0 0 0 0 0 0 0 Net interest bearing debt adj -17 -22 -55 15 68 44 8 1 -18 -41 EV 325 864 461 331 358 374 355 332 EV adj 325 864 461 331 358 374 355 332

Valuation EPS 0.08 0.02 0.14 0.18 0.43 0.09 0.19 0.17 0.34 0.54 EPS adj 0.07 0.07 0.20 0.20 0.33 0.30 0.40 0.35 0.47 0.54 DPS 0.00 0.00 0.10 0.12 0.12 0.13 0.16 0.21 0.24 0.27 P/E 26.3 46.8 9.1 30.1 18.1 21.4 10.9 6.9 P/E adj 19.4 42.9 11.8 9.3 8.7 10.6 8.0 6.9 P/NAV 4.9 4.6 1.4 1.1 1.4 1.4 1.4 1.2 P/B 7.47 14.42 3.94 2.93 3.56 3.72 3.27 2.59 Average ROE 20.3% 2.7% 42.8% 33.0% 54.4% 9.6% 19.7% 17.6% 31.9% 41.6% Earnings yield adj 5.1% 2.3% 8.4% 10.8% 11.6% 9.4% 12.5% 14.4% Dividend yield 2.7% 1.4% 3.0% 4.7% 4.5% 5.5% 6.3% 7.3%

EV/SALES 2.30 3.98 1.41 0.93 0.92 0.94 0.80 0.69 EV/SALES adj 2.30 3.98 1.41 0.93 0.92 0.94 0.80 0.69 EV/EBITDA 20.3 33.3 11.1 6.7 6.9 7.3 5.4 4.4 EV/EBITDA adj 15.2 30.9 11.2 7.5 6.5 7.1 5.4 4.4 EV/EBIT 22.2 43.4 24.0 26.1 15.7 16.4 9.1 5.5 EV/EBIT adj 16.3 39.4 12.7 9.7 8.0 9.3 6.9 5.5

Source: Company (historical figures), DNB Markets (estimates)

12 DNB Markets | LeoVegas 27 August 2021

Key accounting ratios 2014 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e Profitability (%) ROA 11.9 1.5 26.0 13.8 18.6 3.5 7.6 6.9 12.9 18.8

Return on invested capital (%) Net PPE/revenues 0.8 0.8 0.8 1.3 1.3 0.9 0.6 0.6 0.6 0.5

Cash flow ratios (%) FCF/revenues 8.7 4.9 16.5 -7.4 -20.4 10.9 14.9 7.0 10.0 10.6 FCF yield (%) nm nm 6.1 -1.9 -17.0 13.6 16.5 7.5 11.9 13.8 CFO/revenues 13.0 7.7 19.2 15.7 11.1 10.4 17.9 13.0 13.2 13.9 CFO/market capitalisation 7.1 4.0 9.3 12.9 19.8 13.9 15.7 18.0 CFO/capex 307.1 299.7 698.5 552.5 328.5 402.6 635.8 392.4 407.5 424.0 CFO/current liabilities 60.0 41.0 103.7 33.3 34.4 31.4 72.5 49.3 56.3 62.8 Cash conversion ratio 188.1 956.4 161.3 -88.4 -154.5 408.4 298.1 161.2 129.5 95.5 Capex/revenues 4.2 2.6 2.7 2.8 3.4 2.6 2.8 3.3 3.3 3.3 Capex/depreciation 1279.5 1015.7 858.1 830.0 1110.8 73.6 250.4 563.6 532.7 527.4 Total payout ratio 0.0 0.0 70.8 67.4 27.4 140.1 81.5 117.8 68.7 51.0

Leverage and solvency (x) Interest cover nm nm nm nm 10.99 5.27 8.16 7.70 27.96 43.38 EBIT/interest payable nm nm nm nm 10.98 5.27 7.82 7.70 27.96 43.38 EBITA adj/interest payable nm nm nm nm 22.98 13.19 17.53 16.93 44.60 51.76 Cash coverage -941.24 221.77 23.97 20.65 26.90 17.29 46.53 53.91 Net debt/EBITDA -7.89 -18.19 -3.45 0.56 1.62 0.88 0.16 0.02 -0.27 -0.54 Total debt/total capital (BV) 0.00 0.00 0.00 0.11 0.36 0.27 0.20 0.19 0.18 0.16 LTD / (LTD + equity (MV)) 0.00 0.02 0.15 0.12 0.12 0.11 0.11 0.11

Cash conversion cycle Receivables turnover days 34.8 25.8 25.4 37.4 41.2 41.7 27.0 33.8 31.8 32.1 Credit period 149.8 93.0 99.1 99.5 71.3 65.5 59.2 95.7 72.6 61.4 Source: Company (historical figures), DNB Markets (estimates)

13 DNB Markets | LeoVegas 27 August 2021

Important Information Company: LeoVegas Coverage by Analyst: Martin Arnell Date: 26/08/2021 This report has been prepared by DNB Markets, a division of DNB Bank ASA. DNB Bank ASA is a part of the DNB Group. This report is based on information obtained from public sources that DNB Markets believes to be reliable but which DNB Markets has not independently verified, and DNB Markets makes no guarantee, representation or warranty as to its accuracy or completeness. This report does not, and does not attempt to, contain everything material which there is to be said about the Company. Any opinions expressed herein reflect DNB Markets’ judgement at the time the report was prepared and are subject to change without notice. The report is planned updated minimum every quarter.

Any use of non-DNB logos in this report is solely for the purpose of assisting in identifying the relevant issuer. DNB is not affiliated with any such issuer.

This report is for clients only, and not for publication, and has been prepared for information purposes only by DNB Markets, a division of DNB Bank ASA.

This report is the property of DNB Markets. DNB Markets retains all intellectual property rights (including, but not limited to, copyright) relating to the report. Sell-side investment firms are not allowed any commercial use (including, but not limited to, reproduction and redistribution) of the report contents, either partially or in full, without DNB Markets’ explicit and prior written consent. However, buy-side investment firms may use the report when making investment decisions, and may also base investment advice given to clients on the report. Such use is dependent on the buy-side investment firm citing DNB Markets as the source.

Risk warning – generally high risk The risk of investing in financial instruments is generally high. Past performance is not a reliable indicator of future performance, and estimates of future performance are based on assumptions that may not be realised. When investing in financial instruments, the value of the investment may increase or decrease, and the investor may lose all or part of their investment. Careful consideration of possible financial distress should be made before investing in any financial instrument.

Recommendation structure DNB Markets recommendations are based on absolute performance: Buy - indicates an expected return greater than 10% within 12 months Hold - indicates an expected return between 0 and 10% within 12 months Sell - indicates an expected negative return within 12 months

Price targets are based on a combination of several valuation methods such as discounted cash flow, pricing based on earnings multiples, multiple on book value, net asset value and peer comparison. Substantial material sources for coverage of this company include historical financial figures and communication with the company, and relevant third party information. If you would like further information on the valuation, methodology or underlying assumptions used in this note, please contact the analyst (contact details on front page).

Recommendations and historical target prices below do not include all recommendations published by DNB Markets. Please see DNB Markets' website (dnb.no/disclaimer/MAR) for an overview of all recommendations from DNB Markets over the past 12 months, as per Market Abuse Regulations (MAR).

Price, Rating, and Price Target History LeoVegas (LEO SS) as of 26-8-21

9-11-20 26-2-21 10 - 8 -21 B : 53.0 B : 60.0 B : 56.0

60

55

50

45

40

35

30 29-11-20 29-12-20 29-1-21 28-2-21 31-3-21 30-4-21 31-5-21 30-6-21 31-7-21 30-8-21

Source: Factset Estimates (Prices) / DNB (ratings and target price)

Conflict of interest Readers should assume that DNB Markets may currently or may in the coming three months and beyond be providing or seeking to provide confidential investment banking services or other services to the company/companies

Share positions in the company: Analyst* Employees** DNB*** Number of shares 0 57225 0 *The analyst or any close associates. **Share positions include people involved in the production of credit and equity research, including people that could reasonably be expected to have access to it before distribution. ***Share positions as part of DNB Group. Holdings as part of DNB Markets investment services activity are not included. Recommendation distribution and corporate clients for the last 12 months Buy Hold Sell No_rec Total Number 152 95 17 21 285 % of total 53% 33% 6% 7% DNB Markets client 24% 11% 2% 4% 118

14 DNB Markets | LeoVegas 27 August 2021

Legal statement This Report is a research report within the meaning of Regulation (EU) NO 596/2014 on market abuse (Market Abuse Regulation), and has been prepared in accordance with rules set out in relevant industry standards issued by The Norwegian Securities Dealers Association. This Report has been prepared as general information and is therefore not intended as a personal recommendation of particular financial instruments or strategies, and does not constitute personal investment advice as defined the Norwegian securities trading act (Norwegian verdipapirhandelloven).

The analyst hereby certifies that (i) the views expressed in this report accurately reflect that research analyst’s personal views about the company and the securities that are the subject of this report, and (ii) no part of the research analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in this report. DNB Markets employees, including research analysts, may receive compensation that is generated by overall firm profitability. Confidentiality rules and internal rules restricting the exchange of information between different parts of DNB Markets/DNB Bank ASA or the DNB Group are in place to prevent employees of DNB Markets who are preparing this report from utilizing or being aware of information available in the DNB Group that may be relevant to the recipients’ decisions. DNB Markets and the DNB Group have incorporated internal rules and regulations in order to avoid any potential conflicts of interest.

The Report has been prepared by DNB Markets, a division of DNB Bank ASA, a Norwegian bank organized under the laws of the Kingdom of Norway and under supervision by the Norwegian Financial Supervisory Authority, The Monetary Authority of Singapore, and on a limited basis by the Financial Conduct Authority and the Prudential Regulation Authority of the UK, and the Financial Supervisory Authority of Sweden. Details about the extent of our regulation by local authorities outside Norway are available from us on request.

It is issued subject to the General Business Terms for DNB Markets and information about the terms is available at www.dnb.no. For requests regarding the General Business Terms of the Singapore Branch of DNB Bank ASA, please contact +65 6212 6144. Information about the DNB Group can be found at www.dnb.com. DNB Markets is a member of The Norwegian Securities Dealers Association, which has issued recommendations and market standards for securities companies. The Association's Internet address where the recommendations and market standards can be found is: www.vpff.no. This report is not an offer to buy or sell any security or other financial instrument or to participate in any investment strategy. No liability whatsoever is accepted for any direct or indirect (including consequential) loss or expense arising from the use of this report. Distribution of research reports is in certain jurisdictions restricted by law. Persons in possession of this report should seek further guidance regarding such restrictions before distributing this report. Please contact DNB Markets at 08940 (+47 915 08940) for further information and inquiries regarding this report.

Additional information for clients in Singapore The report has been distributed by the Singapore Branch of DNB Bank ASA. It is intended for general circulation and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should seek advice from a financial adviser regarding the suitability of any product referred to in the report, taking into account your specific financial objectives, financial situation or particular needs before making a commitment to purchase any such product. You have received a copy of the report because you have been classified either as an accredited investor, an expert investor or as an institutional investor, as these terms have been defined under Singapore's Financial Advisers Act (Cap. 110) ("FAA") and/or the Financial Advisers Regulations ("FAR"). The Singapore Branch of DNB Bank ASA is a financial adviser exempt from licensing under the FAA but is otherwise subject to the legal requirements of the FAA and of the FAR. By virtue of your status as an accredited investor or as an expert investor, the Singapore Branch of DNB Bank ASA is, in respect of certain of its dealings with you or services rendered to you, exempt from having to comply with certain regulatory requirements of the FAA and FAR, including without limitation, sections 25, 27 and 36 of the FAA. Section 25 of the FAA requires a financial adviser to disclose material information concerning designated investment products which are recommended by the financial adviser to you as the client. Section 27 of the FAA requires a financial adviser to have a reasonable basis for making investment recommendations to you as the client. Section 36 of the FAA requires a financial adviser to include, within any circular or written communications in which he makes recommendations concerning securities, a statement of the nature of any interest which the financial adviser (and any person connected or associated with the financial adviser) might have in the securities. Please contact the Singapore branch of DNB Bank ASA at +65 6212 6144 in respect of any matters arising from, or in connection with, the report. The report is intended for and is to be circulated only to persons who are classified as an accredited investor, an expert investor or an institutional investor. If you are not an accredited investor, an expert investor or an institutional investor, please contact the Singapore Branch of DNB Bank ASA at +65 6212 6144. We, the DNB group, our associates, officers and/or employees may have interests in any products referred to in the report by acting in various roles including as distributor, holder of principal positions, adviser or lender. We, the DNB group, our associates, officers and/or employees may receive fees, brokerage or commissions for acting in those capacities. In addition, we, the DNB group, our associates, officers and/or employees may buy or sell products as principal or agent and may effect transactions which are not consistent with the information set out in the report.

In the United States Each research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the views expressed in this report accurately reflect that research analyst’s personal views about the company and the securities that are the subject of this report; and (ii) no part of the research analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in this report.

The research analyst(s) named on this report are foreign research analysts as defined by FINRA Rule 1050. The only affiliate contributing to this research report is DNB Bank through its DNB Markets division (“DNB Markets/DNB Bank”); the foreign research analysts employed by DNB Markets/DNB Bank are named on the first page; the foreign research analysts are not registered/qualified as research analysts with FINRA; foreign research analysts are not associated persons of DNB Markets, Inc. and therefore are not subject to the restrictions set forth in FINRA Rules 2241 and 2242 regarding restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

This is a Third Party Research Report as defined by FINRA Rules 2241 and 2242. Any material conflict of interest that can reasonably be expected to have influenced the choice of DNB Markets/DNB Bank as a research provider or the subject company of a DNB Markets/DNB Bank research report, including the disclosures required by FINRA Rules 2241 and 2242 can be found above.

This report is being furnished solely to Major U.S. Institutional Investors within the meaning of Rule 15a-6 under the U.S. Securities Exchange Act of 1934 and to such other U.S. Institutional Investors as DNB Markets, Inc. may determine. Distribution to non-Major U.S. Institutional Investors will be made only by DNB Markets, Inc., a separately incorporated subsidiary of DNB Bank that is a U.S. broker-dealer and a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”).

Any U.S. recipient of this report seeking to obtain additional information or to effect any transaction in any security discussed herein or any related instrument or investment should contact DNB Markets, Inc., 30 Hudson Yards, 81st Floor, New York, NY 10001, telephone number +1 212-551-9800.

In Canada The Information has been distributed in reliance on the International Dealer Exemption pursuant to NI 31-103 section 8.18. Please be advised that: 1) DNB Bank ASA (DNB Markets) and DNB Markets, Inc. are not registered as a dealer in the local jurisdiction to make the trade. We provide our services in Canada as an exempt international dealer. 2) The jurisdiction of DNB Bank ASA (DNB Markets) and DNB Markets, Inc.'s head office is Norway. 3) There may be difficulty enforcing legal rights against DNB Bank ASA (DNB Markets) and DNB Markets, Inc. because all or substantially all of their assets may be situated outside of Canada. 4) The name and address of the agent for service of process for DNB Bank ASA (DNB Markets) and DNB Markets, Inc. in the local jurisdiction is: Alberta: Blake, Cassels & Graydon LLP, 855 - 2nd Street S.W., Suite 3500, Bankers Hall East Tower, Calgary, AB T2P 4J8. British Columbia: Blakes Vancouver Services Inc., 595 Burrard Street, P.O. Box 49314, Suite 2600, Three Bentall Centre, Vancouver, BC V7X 1L3. Manitoba: MLT Aikins, 30th Floor, Commodity Exchange Tower, 360 Main Street, Winnipeg, MB R3C 4G1. New Brunswick: Stewart McKelvey, Suite 1000, Brunswick House, 44 Chipman Hill, PO Box 7289, Station A, Saint John, NB E2L 2A9. Newfoundland and Labrador: Stewart McKelvey, Suite 1100, Cabot Place, 100 New Gower Street, P.O. Box 5038, St. John's, NL A1C 5V3. Nova Scotia: Stewart McKelvey, Purdy's Wharf Tower One, 1959 Upper Water Street, Suite 900, P.O. Box 997, Halifax, NS B3J 2X2. Northwest Territories: Field LLP, 601, 4920 52nd Street, Yellowknife, NT X1A 3T1. Nunavut: Field LLP, P.O. Box 1734, House 2436, Iqaluit, NU X0A 0H0. Ontario: Blakes Extra-Provincial Services Inc., Suite 4000, 199 Bay Street, Toronto, ON M5L 1A9. Prince Edward Island: Stewart McKelvey, 65 Grafton Street, Charlottetown, PE C1A 1K8. Québec: Services Blakes Québec Inc., 1 Place Ville Marie, Suite 3000, Montréal, QC H3B 4N8. Saskatchewan: MLT Aikins, 1500 Hill Centre I, 1874 Scarth Street, Regina, SK S4P 4E9. Yukon: Macdonald & Company, Suite 200, Financial Plaza, 204 Lambert Street, Whitehorse, YK Y1A 3T2.

In Brazil The analyst or any close associates do not hold nor do they have any direct/indirect involvement in the acquisition, sale, or intermediation of the securities discussed herein. Any financial interests, not disclosed above, that the analyst or any close associates holds in the issuer discussed in the report is limited to investment funds that do not mainly invest in the issuer or industry discussed in the report and the management of which these persons cannot influence.

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