kambi in brief financial update product development
TRANSCRIPT
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Kambi in Brief
Quarterly Highlights
Trading Analysis
Financial Update
The World Cup & Events after Q2
Product Development
The Market
Conclusion
Q&A
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Premium turnkey sports betting solution for
all channels
11 fully serviced customers
Our customers are
outperforming the market
Proprietary System
Intellectual Property
Scalable Model
Our business model and experience
position Kambi for further growth
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2 New customers signed
97% Revenue increase
European State Lotteries & Toto Association member
3 Customers launched
Successful World Cup - strong offering and stability
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5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
0
25
50
75
100
125
150
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Operator Turnover and Margin
Turnover Index (Q1 2014=100) Betting Margin %
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Q2 9.5m +97% YTD 17.2m +84%
Operating profit
Revenue
Q2 0.8m, 9% margin YTD 0.7m, 4% margin
Cash flow
Q2 1.0m YTD 1.0m
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EUR m
Revenue
Operating expenses
Result before items affecting comparability:
Amortisation of acquired intangible assets
Transaction costs
Result from operations
Q2
2014
9.5
-8.1
1.4
0.0
-0.6
0.8
Q2
2013
4.8
-6.8
-2.0
-1.5
0.0
-3.5
H1
2014
17.2
-15.9
1.3
0.0
-0.6
0.7
H1
2013
9.4
-13.6
-4.2
-3.2
0.0
-7.4
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-15,000
-10,000
-5,000
-
5,000
10,000
15,000
20,000
25,000
Opening cash Operating cashflow
Capitalexpenditure
Repayment toUnibet
Equity issue Convertibleissue
Closing cash
EUR ‘000
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Strong operational performance
Earnings growth
Robust balance sheet
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A unique offering driven by end-
user entertainment value proved
to be very successful
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dg
July and August seasonally slow months, the major
European football leagues start in mid to end August
August – World Championships in Basketball
Strong start to Q3 with 10 remaining World Cup matches
888 soon to launch the Kambi sportsbook in Spain
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First version of OTC terminals launched
Terminals are operational with NagaWorld and Iveriabet
The addition of OTC terminals strengthens Kambi’s retail
portfolio and opens up new markets
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European online sports betting development
Short term, Kambi’s focus is to grow in Europe
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
European online sports betting gross win development (EURbn)
Source: H2 Gambling Capital Jan -14
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Re-regulation across Europe continues: UK Q4 2014
and the Netherlands to follow mid 2015 earliest
Positives: Access to new customers and improved
marketing opportunities for existing customers
N Negatives: Commission affected by higher betting duties,
increased compliance and technical complexity
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Record revenue boosted by the
World Cup
2 new customers signed
Positioned as a premium supplier
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Thank you for your interest