Playtech - a platform for growth Investor & analyst day Riga, November 2017 TODAY’S AGENDA 12.45 pm to 1.15 pm Shimon Akad A platform for growth 1.15 pm to 2.00 pm Anthony Evans The power of Playtech ONE 2.00 pm to 2.30 pm James Frendo Driving content strategy 2.30 pm to 2.45 pm Edo Haitin & A world-leading offering Kevin Kilminster 2.45 pm to 4.00 pm Tours of live studio & refreshment break 4.00 pm to 4.30 pm Armin Sageder Disrupting the market 4.30 pm to 5.00 pm Ian Ince The regulatory landscape 5.00 pm to 5.15 pm Andrew Smith Business development and M&A 5.15 pm Mor Weizer Wrap-up Investor & analyst day 2017 2 KEY TAKEAWAYS . Intelligence of the platform continues to underpin Playtech ONE omni-channel offering . GPAS provides a further evolution of partnership with licensees . scale & breadth of offering remains unrivalled . Data is central to Playtech’s operations and supports all strategic initiatives . Significant growth expected from world’s largest and most technologically advanced Live Casino studio . Fully integrated front-to-back end Sports offering will disrupt the market . Regulation continues to shape the industry and drive quality of earnings . Playtech has a long and successful history of M&A which remains a strategic priority . We have great confidence in our future Investor & analyst day 2017 3 ANOTHER REMINDER OF THE KEY PILLARS OF OUR STRATEGY 11. Support organic growth 4 4. Increasing product, service and distribution capabilities 22. Cross-sell products and services 5 Improve quality of earnings 3 3. Attract new licensees 6 Acquisitions remain key Investor & analyst day 2017 4 Building the future of gaming - a platform for growth Shimon Akad, COO MARKET TRENDS Landbased operators and media groups best positioned to lead industry . Recognised brand – loyalty and footprint . Retail to online acquisition . Omni players are worth more Betting and gaming smartly mixed with retail to online . The common acquisition and flow of traffic is sportsbetting to casino for monetization International expansion - expanding where it makes sense . Multi-territory operators . Growth in international – mature and young markets . Expanding operations through M&A and new launches Investor & analyst day 2017 6 MARKET TRENDS Strength of a multi-regulated platform Consolidation – what does it mean? . Active regulation / platform advantages . In-house vs outsourcing . Volume vs economies of scale Content – only the best will stand out . RGS and technology Innovation . Unique content based on quality, branded, . Playtech innovation lab promotions and marketing . Innovation is key for online/tech software . Platform and context - Omni houses . In-house content . GPAS Investor & analyst day 2017 7 CONTENT ECOSYSTEM - GPAS ‘Playtech will develop a next generation content “ecosystem” with unified games delivery platform & developer program. Enabling accelerated maths creation for games and full licensee game discovery capabilities across all channels’ Desktop Mobile Investor & analyst day 2017 8 GPAS & RYOTA MATHS EDITOR GPAS Highlights . Successful launch . Drag and drop maths engine creation features . Fast efficient flexible . Slots (Including many slots features) . Constantly evolving . Picks . Compose any number of features . Real-time stats (RTP) calculation . Model sharing & collaboration . Component reuse within and between games . Immediate deployment Investor & analyst day 2017 9 POP – PLAYTECH OPEN PLATFORM . Playtech innovation lab product . Cloud based . Flexible and simple APIs . An extension of our platform to run third party games . Manage the operator’s entire gaming floor xxx Investor & analyst day 2017 10 CONTENT ECOSYSTEM Marketplace Investor & analyst day 2017 11 MARKETPLACE RGS 5 RGS 1 Dynamic RGS GPAS Game 4 Discovery RGS 2 RGS 3 CONTENT PROVIDER MARKETPLACE CONTENT PROVIDER PLAYTECH CONTENT LICENSEE MANAGEMENT New game deployed New game discovered New game profile created Game is available for Game reviewed and instant licensing by approved for qualifying qualifying licensees licensees Investor & analyst day 2017 12 MARKETPLACE INTELLIGENCE . Big data will provide licensees with targeted and specialised content recommendations . Live search for games matching performance metrics and demographics . Utilisation of big data to drive player acquisition and player retention Investor & analyst day 2017 13 MARKETPLACE INTELLIGENCE . High value reports only – users must have the information they need at their fingertips . Dashboard that provides game performance, benchmarking, game clustering and activity reports . Capability to provide users with ability to drill into details of interest Investor & analyst day 2017 14 DA VINCI OMNI-CHANNEL CONTENT Landbased sports . SSBTs Landbased bingo . ECM Landbased casinos . VB . IGS Investor & analyst day 2017 15 CONTENT ECOSYSTEM - GPAS “Playtech will develop a next generation content “ecosystem” with unified games delivery platform & developer program. Enabling accelerated maths creation for games and full licensee game discovery capabilities across all channels.” Desktop Mobile Retail Investor & analyst day 2017 16 PLATFORM EVOLUTION . Flexible approach . Cloud . Third party supplier . Superior ROI . Data driven . Self learning & intuitive . Real-time . Simplicity turns good into great . AI Investor & analyst day 2017 17 CASINO PLATFORM FOCUS . Casino Platform focus . Marketing of content . Smart bonusing . Communications . Real time reaction to player needs . Excellence in quality . Smart content planning in advance Investor & analyst day 2017 18 KEY TAKEAWAYS . Landbased and online . Omni-channel focus . Content is more than just content . Upside in the platform – big data / AI / simplicity of use . Platform the key differentiator . Playtech products and services – a . Internationalisation and consolidation complete offering . Gaming ecosystem – GPAS, POP and MP Investor & analyst day 2017 19 The power of Playtech ONE Anthony Evans, Head of Product Strategy PLAYTECH ONE ONE Wallet ONE View ONE Platform Investor & analyst day 2017 21 PLAYTECH ONE FOUNDATIONS WALLET PERSONALISATION & CONTENT CRM & LOYALTY USER EXPERIENCE ONE wallet, COMMUNICATION Play any product, all Automated data-driven, Seamless, responsive, ONE view, Bespoke player channels, locations real-time, BI marketing adaptive gameplay ONE platform experience, enabled and devices tools and bonus engine across all channels by segmentation and and devices supported by real-time communication tools Investor & analyst day 2017 22 FULL SOLUTION Portal Native Apps Retail Machines Retail OTC Intelligence Business Desktop & Mobile (mobile, tablet) (EPOS, SSBTs & FOBTs) (Sports & Lottery) Sportsbook Poker TV Games Live Marketplace Casino Virtual Sport Lottery Bingo Playtech ONE Playtech IMS BI & Game Advisory Player Management Engagement Platform Communications Bonusing Suite Loyalty Mgmt. Personalisation Tools Reporting Payments System Management KYC Risk & Fraud Investor & analyst day 2017 23 PLAYTECH ONE BETTING SHOP Investor & analyst day 2017 PLAYTECH ONE INNOVATIONS Virtual Enhanced Modifier Behavioural Analytics Cards Games & BI Cross In-game Product Leaderboards In-game Messaging Virtual Cards Retail Hub Messagin Triggering g Retail Enhanced Modifier App GamesRetail App Cross Product Retail Retail Hub Brands & App Jackpots 2 3 Investor & analyst day 2017 25 PLAYTECH ONE INNOVATIONS SLOTS LIVE ROULETTE ROULETTE RETAIL GAME B I N G O C O M I N G POKER SOON Investor & analyst day 2017 26 A DATA DRIVEN COMPANY . Unique reporting & analytics for licensees . Machine learning techniques for harm minimisation (BetBuddy) & fraud detection . Behavioural analytics to drive marketing & personalisation – “smart platform” . AI to drive marketing efforts: player segmentation, propensity modelling & real-time Interventions Key 2017-18 Deliverables: . Data driven marketing – engagement platform . Content recommendations . Smart clients - slots default bet & chip selection Investor & analyst day 2017 27 CORE SYSTEM DEVELOPMENTS – SMART PLATFORM BI Engagement Platform Loyalty Mgmt. & Communications Content Bonusing Suite Gamification Tools Modifier bonuses Central loyalty system Central bonusing engine Full suite of communications In-game messaging Flexible usage Meta data Real-time engagement Cross product jackpots Leader-boards Data driven In-game messaging Cross product brands Data driven Tax mitigation options Connected to chat Engagement games Tax mitigation Modifier bonus Data driven Omni-channel Omni-channel Omni-channel Investor & analyst day 2017 28 SMART PLATFORM Smart Chip Selection Smart Deposit Buttons Smart Default Bet Investor & analyst day 2017 29 SMART PLATFORM Additional algorithms available for licensees . Churn detection (Casino & Poker) . LTV . Fraud detection (Live) . Abandoned games . Segmentation models (Casino & Poker) . First time depositors (in progress) Investor & analyst day 2017 30 BETBUDDY: RESPONSIBLE GAMING AI IMS Investor & analyst day 2017 31 Driving content strategy James Frendo, Director of Casino A B2C PERSPECTIVE My Background Industry trends & adjusting to the “new normal” . 12 years in industry . More costs & suppressed margins POC on free bets, horseracing levy, steeper acquisition . Roles in customer management, VIPs, operations, CRM, costs, FOBT stake reductions, adjusting to multi- product and commercial jurisdiction regulations . Experienced two mergers & casino strategy . More Restrictions ASA, CMA, UKGC, CAP, Responsible Gaming, stake Objectives factoring,