Evolution Gaming Year-end report January – December 2017

15th of February 2018

1

CEO, Martin Carlesund

CFO, Jacob Kaplan

Highlights

In the quarter:• Revenue growth +48% to 50,7 MEUR (34,2)

• EBITDA increase +74% to 22,6 MEUR (13,0)

• EBITDA-margin 44,6% (37,8%)

• EBIT increase +86% to 18,8 MEUR (10,1)

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Full Year:• Revenue growth +54% to 178,4 MEUR (115,5)

• EBITDA increase +81% to 80,6 MEUR (44,6)

• EBITDA-margin 45,2% (38,6%)

• EBIT increase +92% to 66,9 MEUR (34,9)

• Continued high growth and margin• Expansion of tables and studios • Product development focus

Continued strong increase in activity across network

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Bet spots

0

500 000 000

1 000 000 000

1 500 000 000

2 000 000 000

2 500 000 000

3 000 000 000

15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4

Be

t sp

ots

Bet spots

YoY growth+66%

Increase in staff

4

Full Time Equivalents (FTE)

1 0601 130

1 2341 338

1 525

1 769

2 027

2 394 2 4262 539

2 740

3 085

0

500

1 000

1 500

2 000

2 500

3 000

3 500

15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4

FT

E

FTE, end of period

YoY: +29%QoQ: 13%

New studios in the works

Tbilisi

• Our hub for expansion coming 2-3 years

• Building on everything we’ve learned so far

5

Vancuover

• 1st studio in North America

• Regulatory studio

• Live February 1st

New products

6

RNG Table games

Salon Privée

LighteningRoulette

Financial development

7

15,618,1

19,822,8

24,827,1

29,2

34,3

39,742,3

45,7

50,7

6,2 7,7 7,8 9,310,3 10,6 10,8

13,0

17,019,2

21,8 22,6

39%42%

40%41% 42%

39%37% 38%

43%45%

48%45%

15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4

Revenues EBITDA EBITDA, %

EUR million

P/L detail

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Group Oct-Dec Oct-Dec Jan-Dec Jan-Dec

(EUR thousands) 2017 2016 2017 2016

Revenues 50 662 34 245 178 222 115 046

Other revenues 55 77 163 415

Total operating revenues 50 718 34 322 178 385 115 461

Personnel expenses -20 038 -15 996 -72 122 -53 218

Depreciation, amortisation and impairments -3 793 -2 859 -13 754 -9 760

Other operating expenses -8 081 -5 360 -25 628 -17 619

Total operating expenses -31 911 -24 215 -111 504 -80 597

Operating profit 18 806 10 107 66 882 34 864

Financial items -37 -115 -217 -234

Profit before tax 18 769 9 992 66 664 34 630

Tax on profit for the period -735 -944 -4 535 -2 890

Profit for the period 18 034 9 048 62 129 31 740

Earnings per share after dilution (EUR) 0,50 0,25 1,71 0,88

Effective tax rate 3,9% 9,4% 6,8% 8,3%

Cash flow and financial resources

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Note: Operating cash flow defined as EBITDA – Change in NWC – Capex

Capital expenditure Operating cash flow Balance sheet summaryEUR m

12,4%

11,1%

19,5%

18,4%

15,9%

16,9%17,4%

14,3%

10,0%9,9%

13,4%12,8%

0

2

4

6

8

10

15

Q1

15

Q2

15

Q3

15

Q4

16

Q1

16

Q2

16

Q3

16

Q4

17

Q1

17

Q2

17

Q3

17

Q4

MEU

R

IntangiblesTangibles (excl building)% of revenue

0%

20%

40%

60%

80%

100%

120%

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

15

Q1

15

Q2

15

Q3

15

Q4

16

Q1

16

Q2

16

Q3

16

Q4

17

Q1

17

Q2

17

Q3

17

Q4

MEU

R

Op. Cash flow Cash conversion

EUR million 2017-12-31 2016-12-31

Total non-current assets 48 540 39 865

Current assets 70 460 37 266

Cash and cash equivalents 49 272 26 188

Total current assets 119 732 63 454

Total assets 168 271 103 318

Total equity 109 881 63 896

Total long-term liabilities 7 259 8 170

Total current liabilities 51 132 31 251

Total equity and liabilities 168 271 103 318

Look ahead…

• Increased focus and delivery from our product development

• Continued as planned development of Tbilisi studio

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

• New Jersey studio planned for second half 2018

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Q&A

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