Evolution Gaming

Interim report January-June 2019

19 July 2019

CEO, Martin Carlesund

CFO, Jacob Kaplan 1
Highlights
In the quarter:
• Revenue growth +45% to 85,7 MEUR (59,3)
• EBITDA increase +63% to 42,7 MEUR (26,2)
• EBITDA margin 49,8% (44,2)
• EBIT increase +69% to 36,6 MEUR (21,7)

• Positive reception for new games

• EGR Live Casino provider of the year – 10th consecutive
• Full-year EBITDA-margin expected in 47-49% range

2
 Continued strong increase in activity
across network
Bet spots YoY growth
6,000,000,000 +56%

5,000,000,000

4,000,000,000
Bet spots

3,000,000,000

2,000,000,000

1,000,000,000

0
16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2

Bet spots

3
Increase in staff
YoY growth
Full Time Equivalents (FTE) +42%
6,000

5,120
5,000
4,671
4,319
3,970
4,000
3,600
3,243
3,085
FTE

3,000 2,740
2,539
2,394 2,426
2,027
2,000 1,769

1,000

0
16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2

FTE, end of period

4
Live Casino vertical is stronger than ever

5
Geographic breakdown
Based on GGR
Q2/19 Q1/19 Q4/18 Q3/18 Q2/18

Nordics 8% 9% 9% 9% 9%
United Kingdom 13% 13% 14% 14% 16%
Rest of Europe 49% 49% 51% 49% 50%
Rest of World 30% 29% 26% 28% 25%
Total 100% 100% 100% 100% 100%

Regulated markets 35% 34% 30% 29% 31%

Mobile 70% 68% 64% 60% 58%

6
 Financial development

49.8%
47.7%
45.4% 44.6% 45.0% 45.3%
44.2% 43.5%
42.8% 42.6%
85.7
39.1%
EUR million 37.0% 37.9% 79.3
70.2
64.3
59.3
50.7 51.6
45.7
42.3 42.7
39.7
34.3 35.9
29.2 31.6
27.1 26.2 28.0
21.8 22.6 22.0
17.0 19.2
10.8 13.0
10.6

16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2
Revenue EBITDA EBITDA, %
7
P/L detail
Group Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul 2018- Jan-Dec
(EUR thousands) 2019 2018 2019 2018 Jun 2019 2018
Revenues 85,701 59,211 164,988 110,782 299,556 245,350
Other revenues 27 41 37 64 41 68
Total operating revenues 85,728 59,252 165,025 110,846 299,597 245,418

Personnel expenses -30,451 -24,244 -59,486 -45,095 -112,065 -97,674

Depreciation, amortisation and impairments -6,116 -4,480 -11,845 -8,596 -21,446 -18,197
Other operating expenses -12,547 -8,840 -26,891 -17,630 -49,324 -40,063
Total operating expenses -49,114 -37,564 -98,222 -71,321 -182,835 -155,934

Operating profit 36,614 21,688 66,803 39,525 116,762 89,484

Financial items -51 -43 -96 -86 -168 -158

Profit before tax 36,563 21,645 66,707 39,439 116,594 89,326

Tax on profit for the period -2,034 -1,569 -3,602 -2,756 -6,712 -5,866
Profit for the period 34,529 20,076 63,105 36,683 109,882 83,460

Average number of shares after dilution 183,565,260 181,685,230 183,565,260 181,685,230 183,189,254 182,625,245
Earnings per share after dilution (EUR) 0.19 0.11 0.34 0.20 0.60 0.46

8
 Cash flow and financial resources
Capital expenditure Operating cash flow Balance sheet summary
EUR m

35 80%
12 EUR million 2019-06-30 2018-12-31
70%
30 Total non-current assets 98 604 62 095
10 Current assets 108 931 93 611
60%
14% 15% 25
14% Cash and cash
13% 14% 88 680 84 951
8 12% 50% equivalents
12% 12% 12%
20 Total current assets 197 611 178 562

MEUR
10%
MEUR

40%
6 Total assets 296 215 240 657
15
30%
4 Total equity 182 118 162 270
10
20% Total long-term liabilities 18 659 5 619
2 5 Total current liabilities 95 438 72 768
10%
Total equity and liabilities 296 215 240 657
0 0 0%
17Q1
17Q2
17Q3
17Q4
18Q1
18Q2
18Q3
18Q4
19Q1
19Q2
17Q1

17Q2

17Q3

17Q4

18Q1

18Q2

18Q3

18Q4

19Q1

19Q2

Tangibles Op. Cash flow Cash conversion

Intangibles
% of revenue, rolling 12 month Note:
Op. cash flow defined as EBITDA – Change in NWC – Investing activities

Note:
Excluding acquisition of Ezugi 19Q1
9
Look ahead…

• Live vertical continues to grow its share of total market

• Continue to invest based on customer demand

• Expect to sustain margin level from H1 in H2

• Continue to take market-shares and to increase gap to our

competitors

10
Q&A

11