Evolution Gaming Year-end report 2018

14 February 2019

1

CEO, Martin Carlesund

CFO, Jacob Kaplan

Highlights

In the quarter:• Revenue growth +38% to 70,2 MEUR (50,7)

• EBITDA increase +40% to 31,6 MEUR (22,6)

• EBITDA margin 45,0% (44,6%)

• EBIT increase +42% to 26,7 MEUR (18,8)

2

• 550 tables live at year-end• Acquisition of Ezugi• 10 new titles showcased at ICE• New clients: lotoquebec.com

and Draft Kings

Full year:• Revenue growth +38% to 245,4 MEUR (178,4)

• EBITDA increase +34% to 107,7 MEUR (80,6)

• EBITDA margin 43,9% (45,2%)

• EBIT increase +34% to 89,5 MEUR (66,9)

• Board proposes dividend of EUR 1,20 per share

Continued strong increase in activity across network

3

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

3 500 000 000

4 000 000 000

4 500 000 000

5 000 000 000

15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4

Be

t sp

ots

Bet spots

YoY growth+61%

Increase in staff

4

Full Time Equivalents (FTE)

1 060 1 1301 234

1 3381 525

1 769

2 027

2 394 2 4262 539

2 740

3 0853 243

3 600

3 970

4 319

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4

FT

E

FTE, end of period

YoY growth+40%

New studios

Tbilisi

• Second largest studio at the end of 2018

• Our hub for expansion coming 2-3 years

• Good development since launch

5

Malta

• New studio 2019

• Demand for local language tables

New Jersey

• Live August 15th

• 10 tables, full suite of games

• 5+ operators live

Geographic breakdown

6

Based on GGR

• Strong performance in Nordics• Slow pace in UK due to new regulatory requirements

Group Q4/18 Q3/18 Q2/18 Q1/18 Q4/17

Nordics 9% 9% 9% 9% 9%

United Kingdom 14% 14% 16% 17% 18%

Rest of Europe 51% 49% 50% 52% 53%

Rest of World 26% 28% 25% 22% 20%

Total 100% 100% 100% 100% 100%

Regulated markets 30% 29% 31% 33% 35%

Innovation remains key – record-number of new games at ICE

7

• MONOPOLY Live

• Deal or No Deal Live

• Lightning Dice

• Super Sic Bo

• First Person DC and Lightning Roulette

• Side Bet City

• Free Bet Blackjack

• 2 Hand Casino Hold’Em

• Infinite Blackjack

Financial development

8

EUR million

24,827,1

29,2

34,3

39,742,3

45,7

50,7 51,6

59,3

64,3

70,2

10,3 10,6 10,813,0

17,019,2

21,8 22,6 22,026,2 28,0

31,6

42%39%

37% 38%

43%45%

48%

45%43%

44% 44%45%

16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4

Revenue EBITDA EBITDA, %

P/L detail

9

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

(EUR thousands) 2018 2017 2018 2017

Revenues 70 233 50 662 245 350 178 222

Other revenues -7 55 68 163

Total operating revenues 70 226 50 718 245 418 178 385

Personnel expenses -26 964 -20 038 -97 674 -72 122

Depreciation, amortisation and impairments -4 834 -3 793 -18 197 -13 754

Other operating expenses -11 694 -8 081 -40 063 -25 628

Total operating expenses -43 492 -31 911 -155 934 -111 504

Operating profit 26 734 18 806 89 484 66 882

Financial items -30 -37 -158 -217

Profit before tax 26 704 18 769 89 326 66 664

Tax on profit for the period -1 169 -735 -5 866 -4 535

Profit for the period 25 535 18 034 83 460 62 129

Earnings per share after dilution (EUR) 0,70 0,50 2,29 1,71

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

Cash flow and financial resources

10

Note: Op. cash flow defined as EBITDA – Change in NWC – Investing activities

Capital expenditure Operating cash flow Balance sheet summaryEUR m

16%18%17%

16%

14%

12%12%12%

14%15%

13%14%

0

2

4

6

8

10

12

16

Q1

16

Q2

16

Q3

16

Q4

17

Q1

17

Q2

17

Q3

17

Q4

18

Q1

18

Q2

18

Q3

18

Q4

MEU

R

TangiblesIntangibles% of revenue, rolling 12 month

0%

10%

20%

30%

40%

50%

60%

70%

0

5

10

15

20

25

30

16

Q1

16

Q2

16

Q3

16

Q4

17

Q1

17

Q2

17

Q3

17

Q4

18

Q1

18

Q2

18

Q3

18

Q4

MEU

R

Op. Cash flow Cash conversion

EUR million 2018-12-31 2017-12-31

Total non-current assets 62 095 48 540

Current assets 93 611 69 526

Cash and cash equivalents

84 951 49 272

Total current assets 178 562 118 798

Total assets 240 657 167 337

Total equity 162 270 109 881

Total long-term liabilities 5 619 7 259

Total current liabilities 72 768 50 198

Total equity and liabilities 240 657 167 337

Look ahead…

• Good start to Q1

• DraftKings and lotoquebec.com – new clients

• New studio in Malta and expansion of existing studios

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

11

Q&A

12