Q2 2014 6 August 2014 Henrik Tjärnström CEO e Possibility to ask questions via email Q2@unibet.com twitter.com/unibetgroup 2 1
Key Report Highlights Financial results Business overview Summary 3 Disposal of Kambi Kambi results are included in Q2 up to 31 May with EBITDA +0.3 MGBP One-off non-cash gain as below: (no effect on free cash flow/dividend capacity) Value of dividend of Kambi shares GBP 56.5 m And net assets of Kambi, adjusted for transaction costs GBP -21.2 m Result is a one-off gain GBP 35.3 m 4 2
Contingent consideration for Betchoice Betchoice acquisition included an earn-out based on 2014 results Earn-out depended on challenging growth targets Australian market composition has changed from 2012-14 Earn-out expected not be paid, and GBP 2.2 m liability has been adjusted to zero 5 Q2 2014 Key Report Highlights GWR +24% GWR excl FX +33% Underlying EBITDA +38% Underlying EBIT +51% SB margin combined 6.9% 29% of GWR from re-regulated markets In local FX, Nordics >+20% and WE >+60% 6 3
World Cup 2014 Once every four year opportunity Over 350 pre-match bet offers on every match LB over 200 bet offers on every match Total T/O GBP 112.5m LB T/O GBP 51.9m 7 World Cup 2014 Pre-match margin 20.7% LB margin 6.7% Combined margin 14.3% June GWR GBP 10.0m July GWR GBP 6.0m Total GWR GBP 16.0m 8 4
egaming Review Operator Innovation and Marketing awards Hat-trick of trophies Innovation of the year Innovation in poker New poker platform Poker marketing campaign Poker relaunch campaign 10 5
Restatement of GWR and CoS Unibet last reviewed revenue definitions in 2007 Triggered by Kambi disposal logical to benchmark v best practice Improves comparability of Unibet v competitors All prior periods restated on a consistent basis No impact on EBITDA, EBIT, EPS or cash flow 11 Restatement effects Restatement has small impact on product mix Historical mobile numbers reduced by circa 2% Total Q2 Mobile GWR 32%, up from 17% in Q2-2013 Re-regulation reduced by circa 1% Yearly marketing reinvestment circa 2-3% lower 12 6
Unibet ex Kambi effects Kambi external revenue excl from June Commission incl. in CoS Opex reduction of ~7 GBPm per quarter (incl D&A) Depr & Amortisations lowered ~1.2 GBPm Yearly capex investments was ~22 GBPm and now ~17 GBPm 13 Continuing Strong Organic Growth! Q2 2014 vs Q2 2013 (underlying numbers) +38% EBITDA 14 7
Gross winnings revenue GBPm 268.0 226.7 74.4 158.2 169.2 176.7 64.9 64.0 153.6 51.0 110.8 52.4 129.6 62.0 77.1 Q4 Q3 58.4 67.6 76.5 5.2 2009 2010 2011 2012 2013 2014 Q2 Q1 15 Q2 2014 P&L FX impact v Q2 2013 Q2 14 Q2 13 Avg rate Avg rate Movement SEK 11.112 10.072 +10.3% NOK 10.074 8.954 +12.5% EUR 1.227 1.176 +4.3% DKK 9.159 8.767 +4.5% AUD 1.846 1.553 +16.2% GBPm GWR decreased by approx. -5.5 CoS / Opex decreased by approx. +3.9 FX loss on operating items -0.5 FX on borrowings +0.3 PBT FX impact -1.8 As in Q1, GBP strengthened against all major currencies GWR & Cost impact is a pure translation effect realised FX loss was only GBP 0.2m in Q2 16 8
Other Costs analysis Excl. Non-recurring items GBP m 2012 2013 2014 2014 FY FY Q1 Q2 Reported Other Costs 50,6 52,3 13,5 12,9 Depreciation & Amortisation -17,4-18,9-4,8-4,7 FX gain/(loss) on Opex -1,0-0,6-0,2-0,5 Other Costs post D&A and FX 32,2 32,8 8,4 7,6 Share of GWR (as reported) 14% 12% 11% 10% Share of GWR (excl Kambi) 11% 10% 9% 8% 17 EBITDA (underlying numbers) GBPm 63.4 52.5 48.0 20.2 41.9 43.8 16.8 38.0 14.1 8.6 27.1 29.1 16.7 23.7 22.5 12.0 17.7 11.8 10.8 9.4 4.3 13.4 21.3 15.3 17.1 12.9 13.1 2009 2010 2011 2012 2013 2014 Q4 Q3 Q2 Q1 18 9
EPS development (underlying numbers) GBP 1.434 1.154 1.270 1.132 0.526 0.957 0.422 0.945 0.292 0.663 0.401 0.595 0.590 0.120 0.616 0.549 0.192 0.324 0.238 0.203 0.238 0.544 0.357 0.339 0.357 0.387 0.378 2009 2010 2011 2012 2013 2014 Q4 Q3 Q2 Q1 19 20 10
Geographic & product balance Gross winnings revenue over time By product, % By geography, % Other 7 8 7 7 8 8 9 8 8 Other 4 4 5 6 4 5 4 4 3 Casino & Games Poker Live betting Pre-game betting 48 50 46 48 50 50 48 46 49 8 8 6 6 5 4 4 16 17 15 17 19 18 17 19 18 21 17 26 22 18 20 22 3 2 24 23 Western Europe CES Nordics 33 31 30 32 31 29 35 38 40 9 8 9 9 11 10 9 9 9 54 56 55 55 54 56 52 49 48 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 2012 2013 2014 21 Active customers Thousands 650 600 550 500 450 400 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 610,319 2014 22 11
Sportsbetting gross margin Combined % 10 9 8 7 6 5 4 3 2 1 0 Before free bets Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR 2009 2010 2011 After free bets Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 2012 2013 Q4 YR Q1 Q2 2014 23 24 12
Almedalen political week Digitalisation and globalisation restructures society as a whole a new scene is set Transparency and flow of information empower consumers - they cannot be steered by politics 4 out of 5 jobs past 20 years created in entrepreneurial growth companies like Unibet Unibet s 17 years experience of the future economy shared with society in Visby 25 26 13
Summary Continued strong organic growth ATH in Active Customers, GWR, Mobile revenues and Casino & Games Underlying EBITDA +38% organically Underlying EBIT +51% organically Underlying EPS +47% 27 + + + C Fp Kd M + + V S Mp 28 2010 14
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