ANNUAL REPORT 2019 LEOVEGAS AB (PUBL) LEOVEGAS – ANNUAL REPORT 2019 CONTENTS

3 Introduction to LeoVegas 4 LeoVegas’ position and strengths 6 Milestones during the year 8 CEO’s message 10 Impact of covid-19 on LeoVegas 10 Industry description, history 12 Market overview 15 A myth-enshrouded industry 18 Expansion – several paths to growth 20 An increasingly regulated industry 22 History and organisation 24 LeoVegas on the stock market 25 Key performance indicators 28 Business concept and strategy 29 LeoVegas’ customer journey 30 LeoVegas’ employees 36 LeoVegas’ product offering 37 The Group’s customer offering 38 LeoVegas – a data-driven company 40 Taking the step to the next level for Casino, and what is required to be King of Casino 42 LeoVegas’ acquisitions 44 LeoVentures 46 Marketing of gaming 47 Multibrand – the Group’s brands

48 LeoVegas’ Sustainability Report 70 Auditor’s report on the statutory sustainability report

71 Corporate Governance Report 78 Board of Directors 80 Group Management 82 Auditor’s report on the corporate governance statement

83 Shares, shareholders and share capital

86 Board of Directors’ Report 100 Consolidated financial statements 104 Parent Company accounts 108 Notes to the consolidated and Parent Company accounts 129 The Board of Directors’ and CEO’s assurance 130 Auditor’s report 134 Key ratios 135 Alternative Performance Measures and other definitions

LeoVegas AB (publ) +46 8 410 367 66 Luntmakargatan 18, SE-111 37 , www.leovegasgroup.com Corporate identity number: 556830-4033 LEOVEGAS – ANNUAL REPORT 2019 INTRODUCTION

INTRODUCTION TO LEOVEGAS

LeoVegas is a global gaming operator with eight gambling licences and approximately 800 employees. LeoVegas is a market leader in mobile casino in the Nordic countries and Europe. The company was listed on Nasdaq First North Premier in 2016. On 5 February 2018 LeoVegas carried out a change in listing to Nasdaq Stockholm Main Market.

LEOVEGAS’ BRANDS

LeoVegas has a multibrand strategy, entailing that the company that are marketed under the collective name Rocket X. GoGo­ operates several brands to attract different customer categories Casino is a niche pay-and-play . LiveCasino.com is ­ and segments. LeoVegas operates two global and scalable brands – a global brand targeting the Live Casino product category and will ­LeoVegas and Royal Panda, plus a number of local brands in the UK be launched during 2020.

PRODUCT OFFERING Geographic breakdown of Net Gaming Revenue (NGR) (%), full year 2019 All of the Group’s brands offer primarily gaming on mobile devices, how- 13% ever, games are still accessible via desktop and tablets. The product port­ 42% folio consists of Casino games, Live Casino, Bingo and Sports betting. Nordic countries LONG-TERM FINANCIAL TARGETS Rest of Europe Rest of world Growth: ⬛ Long-term organic growth that outperforms the online gaming market 45%

Profit: ⬛ Long-term EBITDA margin of no less than 15% assuming that 100% of Key ratios – EUR m revenue will be generated in regulated markets subject to gambling tax 2019 2018 Dividend: Revenue 356.0 327.8 ⬛ To pay a dividend, over time, of at least 50% of profit after tax -Revenue growth, % 9 51 Total deposits 1,116 1,045 Number of depositing customers as per Q4 351,613 327,156 Adjusted EBITDA 44.2 41.1 Adjusted EBITDA margin, % 12.4 12.5 Net profit for the year 9.6 43.2 Cash flow from operating activities 37.0 36.5 Number of employees at year-end 794 888 Share of locally regulated revenue, % 51 36

3 INTRODUCTION LEOVEGAS – ANNUAL REPORT 2019

LEOVEGAS’ POSITION AND STRENGTHS

LEOVEGAS’ VISION AND POSITION IS: King of Casino

% % % 30 30 20 25,8 23,9 +9,8% 22,5 15 20,4 20 20 18,4 16,5 15,0 +10,2% 13,4 12,7 13,4 10 12,2 11,9 11,0 10,8 -1,5% 10,1 10 9,6 10 7,9 8,7 6,2 6,8 5 5,1 5