Industry Average Betsson AB (BETS B)...Betsson AB (BETS B) Casinos & Gaming | SE LAST UPDATE:October...

Betsson AB (BETS B)Casinos & Gaming | SE

LLAST UPDAST UPDAATE:TE: October 24, 2019

Score attribution by key issue

This chart highlights the company's positioning relative to the industry average for each Key Issue that contributedto its ESG Rating as of October 24, 2019.

Priv

acy

& D

ata

Secu

rity

Car

bon

Emis

sion

s

Cor

rupt

ion

& In

stab

ility

Prod

uct S

afet

y &

Qua

lity

Cor

pora

te G

over

nanc

e

Labo

r Man

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ent

Last ESG Rating action

Rating action date: FRating action date: Februarebruary 26, 2019y 26, 2019

Betsson's rating is unchanged at 'AAA'.

Betsson continues to demonstrate sector-leading labor management practices, ranging from providinga comprehensive employee benefits package to focusing on providing channels for individual employeedevelopment. The company implements proactive measures, such as being able to track the playing time,options of deposit limits, and self-exclusion that extends to sister sites. Further, Betsson is a member ofthe Global Gambling Guidance Group (G4), a recognized responsible gaming organization that promotesaccreditation and training for operators. Finally, the company's anti-corruption programs and practices arewell placed since they have avoided involvement in ethical and corruption disputes.

Analysts:Analysts: Camille Castillo, Puneet Manchanda

Positive

IndustrIndustryyAAvvererageage

Negative

ESG Rating history

ESG Rating distribution

Universe: MSCI ACWI Index constituents, Casinos & Gaming, n=20

Key scores

WWeighteight ScorScore (0-10)e (0-10)

Industry-Adjusted Score 8.78.7

◤ Weighted-Average Key Issue Score 5.6

◤ Environmental Pillar Score 10% 6.8

◤ Social Pillar Score 47% 6.1

◤ Governance Pillar Score 43% 4.8

Report table of contents

ESG Rating tearsheetESG Rating tearsheet Data appendixData appendix

Rating model details P02P02 Corporate governancedata

P07P07

Recent developments P03P03 Key issue details P24P24

Corporate governancesummary

P04P04 Glossary P57P57

ESG Rating drill down P05P05

What is an ESG Rating?What is an ESG Rating? MSCI ESG Ratings aim to measure acompany's resilience to long-term ESG risks. Companies arescored on an industry-relative AAA-CCC scale across the mostrelevant Key Issues based on a company's business model.

ESG Rating history shows five most recent rating actions

1 of 5959 ©2019 MSCI Inc. All rights reserved.

ESG Rating scorecard

KKeey issuey issue WWeighteight IndustrIndustry ay avvererageage ScorScore (0-10)e (0-10) ChangeChange ExplanationExplanation

WWeighted-Aeighted-Avvererage Kage Keey Issue Scory Issue Scoree 5.65.6

Corruption & Instability 24% 2.7 2.82.8 ● Robust ethics and compliance frameworks compared to industry peers

Corporate Governance 19% 5.6 7.47.4 ▲0.1 ● The company falls into the highest scoring range relative to global peers.Governance practices are generally well aligned with shareholder interests.

Labor Management 19% 6.2 10.010.0 ● Small workforce relative to peers● Evidence of employee engagement programs and initiatives including regular

engagement surveys

Privacy & Data Security* 14% 4.5 2.02.0 ● 100% of revenues in regions where data protection regulations are strict● Compliance mechanisms (e.g. audits and employee training on privacy and

data security issues) lag better performing peers in scope and frequency

Product Safety & Quality 14% 3.1 5.05.0 ● Business lines are largely not subject to regulatory pressure regarding thesocial consequences of gambling, and total revenues are lower than peers

● Robust compliance mechanisms for responsible marketing and advertisingpractices, including regular systematic audit/control procedures

Carbon Emissions 10% 6.9 6.86.8 ● Limited evidence of efforts to reduce carbon emissions compared to peers

* denotes company-specific Key IssueThis table shows the Key Issue scores and weights contributing to the company's ESG Rating and any changes to those scores since the last ESG Rating action. The range of possible scores is0-10, where 10 is best and 0 is worst.

As of October 24, 2019

Rating model details

Betsson was rated based on a modified version of the Casinos &Casinos &GamingGaming Industry ESG Rating model:

PrivPrivacy & Data Securityacy & Data Security has added as a company-specific KeyIssue due to the company’s involvement in online gaming.

◥

Company response

No

Oct 2018

Medium

All companies are provided the opportunity to review their data. For details, see Appendix in full ESG Ratingreport.*Frequency of interactions represents interactions over the past two years: High = Ten or more incomingcommunications; Medium = Between 3 and 9 incoming communications; Low = Between 1 and 2 incomingcommunications

Response in last 12 months?

Date of last interaction

Frequency of interactions*

Betsson AB (BETS B)

LLAST UPDAST UPDAATE: OctTE: October 24, 2019ober 24, 2019


Recent developments affecting ESG scores

This table shows the last 10 score changes* and rating actions that have occurred in the past 12 months. (*Score changes will be captured starting 06 November 2019)

Date ▲Date ▲ TTypeype ScorScore (0-10)e (0-10) ChangeChange ExplanationExplanation

CurrCurrent Went Weighted-Aeighted-Avvererage Kage Keey Issuey IssueScorScoree

5.65.6

Feb 26, 2019 ESG Rating action 5.65.6 Betsson's rating is unchanged at 'AAA'.

This table outlines the latest changes to specific data points that have occurred, the trigger for change (e.g. issuer feedback, data update or methodology enhancements) and the overall impacton the company's Weighted Average Key Issue Score. Companies are monitored on a continuous basis and significant score changes may trigger an ESG Rating action.

Most recent controversies

There are no recent new controversies or updates to ongoing controversies for this company.

Betsson AB (BETS B)



Corporate governance summary

*CEO pay figures are sourced from listed company annual reports and proxy filings. When a new CEO is named the pay figures for the previous CEO will be displayed until this information hasbeen updated for the new CEO

BoarBoard of dird of directectorsors

Board type: Unitary Board

100%

Male FemaleBoard diversity

71.4% 28.6%

87th87th global perglobal percentilecentile

56th56th home markhome market peret percentilecentile

● Non-executive andindependent ofmanagement

● Non-executive withlinks tomanagement

● Executive

Ownership summarOwnership summaryy

CEOCEO

CapitalCapitalstructurstructuree

Multiple EquityClasses;Deviates from One-Share One Vote

OwnershipOwnershipclassificationclassification

PrincipalShareholder

TTop sharop shareholderseholders

Hamberg Family AndCompany - 17.61% DanskeBank International S.A -13.04% Familjen KnutssonMed Bolag - 10.81%

Name:Name: Pontus Lindwall

TTenurenure:e: 2 Years

TTotal rotal realizealized paed pay*:y*:

USD 1,097,582.30

TTotal summarotal summary pay pay*:y*:

USD 1,097,582.30

Peer benchmarking

LLARGEST 5 INDUSTRARGEST 5 INDUSTRY PEERS (CASINOS &Y PEERS (CASINOS &GAMING)GAMING)

CarbonCarbonEmissionsEmissions

LaborLaborManagementManagement

PrivPrivacy & Dataacy & DataSecuritySecurity

PrProduct Safoduct Safety &ety &QualityQuality

CorporCorporateateGoGovvernanceernance

Corruption &Corruption &InstabilityInstability

Rating &Rating &TTrrendend

Betsson AB ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● AAAAAA ◄ ►

Sands China Ltd. ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● AA ◄ ►

ARISTOCRAT LEISURE LIMITED ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● AA ▲

MGM RESORTS INTERNATIONAL ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● BBB ◄ ►

LAS VEGAS SANDS CORP. ● ● ● ● ● ● ● ● ● ● ● ● BB ◄ ►

Galaxy Entertainment Group Limited ● ● ● ● ● ● ● ● ● ● ● ● ● BB ◄ ►

QUARTILE KEY : Bottom Quartile ● Top Quartile ● ● ● ●

RATING TREND KEY : Maintain ◄ ► Upgrade ▲ Upgrade by two or more notches ▲▲ Downgrade ▼ Downgrade by two or more notches ▼▼

This table shows the company's positioning relative to the largest MSCI ACWI Index constituents in the Casinos & Gaming ESG Ratings Industry based on market capitalization, sorted by ESGRatings (best to worst), as of October 24, 2019.

Betsson AB (BETS B)



ESG Rating drill down

As of last rating action date: Feb 26, 2019 As of last update date: Oct 24, 2019 Difference

Description Score Weight Score Weight Score Weight

ESG Rating Letter GrESG Rating Letter Gradeade AAAAAA AAAAAA -- --

IndustrIndustry Adjusted Scory Adjusted Scoree 8.78.7 8.78.7 -- --

IndustrIndustry Minimum Scory Minimum Scoree 2.92.9 2.92.9 -- --

IndustrIndustry Maximum Scory Maximum Scoree 6.06.0 6.06.0 -- --

WWeighted Aeighted Avvererage Kage Keey Issue Scory Issue Scoree 5.65.6 5.65.6 -- --

EnvirEnvironmental Pillar Scoronmental Pillar Scoree 6.86.8 10.0%10.0% 6.86.8 10.0%10.0% -- --

Carbon Emissions KCarbon Emissions Keey Issue Scory Issue Scoree 6.86.8 10.0%10.0% 6.86.8 10.0%10.0% -- --

Exposure Score 3.9 3.9 - -

Business Segment Exposure Score 3.2 3.2 - -

Geographic Exposure Score 7.2 7.2 - -

Management Score 3.7 3.7 - -

Management Score - ExcludingControversies

3.7 3.7 - -

Practices Score 3.0 3.0 - -

Performance Score 5.0 5.0 - -

Social Pillar ScorSocial Pillar Scoree 6.16.1 47.0%47.0% 6.16.1 47.0%47.0% -- --

Labor Management KLabor Management Keey Issue Scory Issue Scoree 10.010.0 19.0%19.0% 10.010.0 19.0%19.0% -- --




Company-Specific Exposure Score 2.1 2.1 - -



6.7 6.7 - -


Controversy Deduction 0.0 0.0 - -

PrivPrivacy & Data Security Kacy & Data Security Keey Issue Scory Issue Scoree 2.02.0 14.0%14.0% 2.02.0 14.0%14.0% -- --






2.5 2.5 - -



PrProduct Safoduct Safety & Quality Kety & Quality Keey Issue Scory Issue Scoree 5.05.0 14.0%14.0% 5.05.0 14.0%14.0% -- --






3.4 3.4 - -


Performance Score 0.0 0.0 - -


Betsson AB (BETS B)



As of last rating action date: Feb 26, 2019 As of last update date: Oct 24, 2019 Difference

Description Score Weight Score Weight Score Weight

GoGovvernance Pillar Scorernance Pillar Scoree 4.84.8 43.0%43.0% 4.84.8 43.0%43.0% -- --

Corruption & Instability KCorruption & Instability Keey Issue Scory Issue Scoree 2.82.8 24.0%24.0% 2.82.8 24.0%24.0% -- --







3.8 3.8 - -



CorporCorporate Goate Govvernance Kernance Keey Issue Scory Issue Scoree 7.37.3 19.0%19.0% 7.47.4 19.0%19.0% 0.10.1 --

Board 8.1 9.1 1.0 -

Pay 7.7 7.7 - -

Ownership & Control 8.1 8.1 - -

Accounting 7.0 3.9 -3.1 -

Betsson AB (BETS B)



KEY DATES

Financial Year End December 31

Annual Filing Date Apr 15, 2019

AGM Date May 07, 2019

WEBSITE

https://www.betssonab.com/

*Key areas of concern include flagged key metrics within the three sub-issues that represent the largest scoring deductions. Please review thefull report to see the complete set of flagged key metrics.

GOVERNANCE THEMES AND RANKINGS

87 92 91 62

8

56 8596

39

4

Overall Board Pay Ownership &Control

Accounting0

25

50

75

100

SUMMARY

Betsson AB falls into the highest scoring range for all the companies we assess relative toglobal peers, indicating that the company's corporate governance practices are generally wellaligned with shareholder interests.

■ Global Percentile Rank ■ Home Market Percentile Rank

Score Change(since rating)

Quartile Weight As of

7.4 ▲ 0.1 ●●●● 19.0% Oct 24, 2019

Corporate Governance

Market Cap: 710,571,835 USD Home Market: Sweden Last Data Update: Oct 24, 2019

CORPORATE GOVERNANCE SCORE HISTORY

Betsson AB

Jul 2

018

Aug 2018

Sep 2018

Oct 2018

Nov 2018

Dec 2018

Jan 2019

Feb 2019

Mar

2019

Apr 2019

May

2019

Jun 2019

Jul 2

019

Aug 2019

Sep 2019

Oct 2019

0

2

4

6

8

10

CHANGES TO FLAGGED KEY METRICS (SINCE JULY 2018)

Key Metric Key Metric Change Date Score Change* Change Notes

Expense Recognition Flag Added May 17, 2019 -0.23 Updates to data for accounting peer group member(s)

Auditor Independence Flag Removed May 07, 2019 0.50

Revenue Recognition Flag Added Dec 06, 2018 -0.01 Updates to data for accounting peer group member(s)

Note: A full list of score changes (including where there is no Key Metric Change) is included in the Appendix.*Score change available in respect of changes dated on or after 13 December 2017.

Betsson AB (BETS B)



https://www.betssonab.com/

BOARD OVERVIEW

Board Type: Unitary Board

Board of Directors

Chair Patrick Svensk Since: Sep 04, 2017

100%

Executive Leadership

CEO Pontus Lindwall Since: Sep 04, 2017CFO Martin Öhman Since: Sep 01, 2019

■Executive ■Links to Management ■Independent of Management

PAY OVERVIEW

Highest Paid Executive - Pontus Lindwall

1 938 000 (SEK)1 938 000 (SEK)

7 793 000 (SEK)7 793 000 (SEK)

2018 - 9,731,000 (SEK)0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

■ Long Term Incentives Awarded 0 (SEK)■ Short Term Incentives Awarded 1,938,000 (SEK)■ Fixed Pay 7,793,000 (SEK)

Betsson AB (BETS B)



0-10 Score GlobalPercentile Rank

Home MarketPercentile Rank

9.192nd (Above

Average)85th (Above

Average)

BOARD PERFORMANCE VS.

▼ Global ▼ Home Market

▼▼

The Betsson AB board appears to be generally well organized to provide effectivestrategic oversight for the company management. We have flagged this board forpotential concerns regarding the presence of certain related party transactions.

KEY METRICS SCORING

Deduction

AUDIT OVERSIGHT

Audit Committee Industry Expert -0.10

BOARD INDEPENDENCE

Related Party Transactions -0.12

BOARD SKILLS & DIVERSITY

Risk Management Expertise -0.20

Not 30% Female Directors -0.10

BOARD

LEADERSHIP

CHIEF EXECUTIVE OFFICER

History CEO Since Until Name Gender Age

Current Sep 2017 Pontus Lindwall M 54

Former Mar 2016 Sep 2017 Ulrik Bengtsson M 47

Former Jul 2011 Jun 2015 Magnus Silfverberg M 46

CHIEF FINANCIAL OFFICER

History CFO Since Until Name Gender Age

Current Sep 2019 Martin Öhman M

Former Jan 2019 Sep 2019 Kristian Saliba M 40

Former Sep 2017 Sep 2018 Kaaren Hilsen F 47

Former Nov 2008 Aug 2017 Fredrik Ruden M 49

CHAIR

History Chair Since Until Name Gender Age

Current Sep 2017 Patrick Svensk M 53

Former Mar 2016 Sep 2017 Pontus Lindwall M 54

Former Jul 2015 Feb 2016 Lars Linder-Aronsson M 65

Betsson AB (BETS B)



BOARD OF DIRECTORS

The Betsson AB board currently has an independent majority, which enables it to more effectively fulfill its critical function of overseeing management onbehalf of shareholders. Additionally, the company has split the roles of CEO and chair and has named a fully independent chairman, a practice that isincreasingly identified with superior board performance. An independent chairman is characteristic of 54% of companies in the home market.

Number of Board Meetings: 10

Non-executives meet in absence of Executives: No

Tenure Independent Management Link/Name M/F Age (Years) Boards of Mgmt of Other

InterestsDesignation Reason Nationality

Eva Leach F < 1 1 Yes Yes N/A

Fredrik Carlsson $ M 49 2 2 Yes Yes Sweden

Jan Nord M 64 4 1 Yes Yes Sweden

Johan Lundberg M 42 1 1 Yes Yes Sweden

Kicki Wallje-Lund F 66 13 1 Yes Yes Sweden

Mathias Hedlund $ M 49 1 1 Yes Yes Sweden

Patrick Svensk COB M 53 14 1 Yes Yes Sweden

F # >= 70 # >= 15 yrs # >= 4

Total (of 7) 2 0 0 0 7 7

Percentage 28.6% 0% 0% 0% 100% 100%

Note: Board count includes the membership of this board.

$ - Financial Expert (2) COB - Chair of the Board

RELATED PARTY TRANSACTIONS

The risk to minority shareholders arising from related party transactions is a function of the nature of the related party, the relative size of the transactionand the pricing of the transaction. The board, and in particular the independent directors or audit committee, should play a key role in the protection ofminority shareholders, monitoring and managing potential conflicts of interest of management, board members and shareholders. We note that thefollowing circumstances which suggest elevated risk for independent shareholders:

There are related party transactions with the CEO.

Reported Transactions

The Betsson Group leases 5 (5) apartments from Solporten Fastighets AB, in which CEO Pontus Lindwall and former director Per Hamberg are shareholders/directors. In 2018, purchases amounted to SEK 626 (SEK 386) thousand Betsson Malta and Betsson AB commission legal services from WH Law, in whichdirector in Betsson Malta, Dr Olga Finkel, is Managing Partner. In 2018, the Group’s purchases amounted to SEK 2,074 (2,549) thousand, of which BetssonAB’s purchases amounted to SEK 2 (664) thousand

For the two most recently reported fiscal years, these value of these transactions can be summarised as follows :

Aggregate Transaction ValueFiscal Year Related Party Types Value (CUR) % of Total Type

Dec 31,2018

CEO, Other 2,707,000 SEK 0.062% of Expenses Recurring purchases from related party

Betsson AB (BETS B)



Aggregate Transaction ValueFiscal Year Related Party Types Value (CUR) % of Total Type

Dec 31,2017

CEO, Other 2,935,000 SEK 0.075% of Expenses Recurring purchases from related party

Sources : 2018 AR, P. 68, AR 2017, p. 53

BOARD EFFECTIVENESS

We note that in contrast to the relative frequency in the company's home market (where 37% of companies are flagged), Betsson AB is not flagged foroverboarded directors.

Nomination Committee

IndependentName M/F Age Board Tenure (Years) of Mgmt of Other

InterestsCommittee Status

Christoffer Lundström $ M 46 Yes No Member

John Wattin M 72 Yes No Member

Michael Knutsson $ M 58 Yes No Member

Patrick Svensk M 53 14 Yes Yes Member

$ - Financial Expert (2)

BOARD SKILLS & DIVERSITY

We have flagged the Betsson AB board for gender diversity concerns. Several recent studies have shown that companies with too few female directors tendto be less effective and even underperform those whose boards are more diverse.

AUDIT OVERSIGHT

Audit Committee - Number Of Meetings: 2

The Betsson AB board of directors includes a fully independent audit committee and at least one member of that committee meets our standards forfinancial expertise. This is in contrast to the 42% of companies in the home market that fail to include a fully independent audit committee. Independentaudit committees help provide oversight of the critical function of financial reporting.

IndependentName M/F Age Board Tenure (Years) Boards of Mgmt of Other

InterestsCommittee Status

Fredrik Carlsson $ M 49 2 2 Yes Yes Chair

Johan Lundberg M 42 1 1 Yes Yes Member

Kicki Wallje-Lund F 66 13 1 Yes Yes Member

$ - Financial Expert

Betsson AB (BETS B)



PAY OVERSIGHT

Pay Committee - Number Of Meetings: 3

The Betsson AB board includes an independent pay committee, considered best practice for oversight of executive pay.

IndependentName M/F Age Board Tenure (Years) of Mgmt of Other

InterestsCEO Role? Committee Status

Jan Nord M 64 4 Yes Yes Member

Mathias Hedlund $ M 49 1 Yes Yes Member

Patrick Svensk M 53 14 Yes Yes Chair

$ - Financial Expert

CONTROVERSY CASES

No major relevant controversies have been uncovered.

Betsson AB (BETS B)





7.791st (Above

Average)96th (Best In Class)

PAY PERFORMANCE VS.


▼▼

Executive pay practices of the Betsson AB board appear to be generally well alignedwith sustainable shareholder interests.

KEY METRICS SCORING

Deduction

NON-EXECUTIVE DIRECTOR PAY

Director Equity Policy -0.10

PAY PERFORMANCE ALIGNMENT

Clawbacks & Malus -0.20

Pay Linked to Sustainability -0.20

PAY

PAY FIGURES

EXECUTIVE PAY - 2018

Executive Title Tenure(Years)

Total Awarded Pay (USD) Total Realized Pay (USD)

Pontus Lindwall I CEO 2 1,097,582 1,097,582

Ulrik Bengtsson I Executive N/A(Resigned)

0 0

I - Industry Expert (2)

Betsson AB (BETS B)



CEO PAY DETAILS - Pontus Lindwall

Pay Awarded 2018 Pay Realized

Fixed Pay Fixed Pay

Salary 5,475,000 SEK Salary 5,475,000 SEK

Fees 0 SEK Fees 0 SEK

Pension 2,318,000 SEK Pension 2,318,000 SEK

Perks & Other Pay 0 SEK Perks & Other Pay 0 SEK

Variable Pay Variable Pay

Short-term incentives Short-term incentives

Annual Bonus 1,938,000 SEK Annual Bonus 1,938,000 SEK

Other Non-equity Incentive Plan 0 SEK Other Non-equity Incentive Plan 0 SEK

Long-term incentives Long-term incentives

Grant date value of Stock Options 0 SEK Options Exercised 0 SEK

Grant date value of Stock Awards 0 SEK Stock Awards Vested 0 SEK

Total Awarded Pay 9,731,000 SEK Total Realized Pay 9,731,000 SEK

Betsson AB (BETS B)



PAY PEER GROUP

SMALLCAP - OTHER DEVELOPED - HOTELS, RESTAURANTS & LEISURE (70 COMPANIES)

Company Home Market Market Cap(USD m)

PayYear

1 Yr TSR Total CEO AnnualPay (USD)

CEO Name CEO Since

MELCO INTERNATIONAL DEVELOPMENT LIMITED Hong Kong 3,692 2018 21.33% 6,573,854 Ho Mar 2006

INTERNATIONAL GAME TECHNOLOGY PLC Italy 2,721 2018 -23.57% 6,287,564 Sala Apr 2015

SKYLARK HOLDINGS CO., LTD. Japan 3,548 2018 19.03% 3,481,748 Tani Jul 2014

SSP GROUP PLC United Kingdom 3,752 2018 -10.03% 3,443,814 Swann Sep 2013

SHANGRI-LA ASIA LIMITED Hong Kong 3,713 2018 -29.57% 2,454,000 Beng Chee Jan 2017

Pandox Aktiebolag Sweden 3,142 2018 26.73% 2,323,522 Nissen Jan 1995

THE HONGKONG AND SHANGHAI HOTELS, LIMITED Hong Kong 2,463 2018 -29.06% 2,113,585 Kwok Feb 2002

AUTOGRILL S.P.A. Italy 2,492 2018 3.11% 1,933,543 Tondato Da Ruos Mar 2003

SKYCITY ENTERTAINMENT GROUP LIMITED New Zealand 1,660 2019 6.30% 1,817,873 Stephens May 2017

J D WETHERSPOON PLC United Kingdom 1,942 2018 19.64% 1,669,928 Hutson Jan 1997

888 Holdings Public Limited Company United Kingdom 701 2018 -17.15% 1,605,000 Frieberger Mar 2016

ZENSHO HOLDINGS CO.,LTD. Japan 3,311 2019 4.73% 1,593,330 Ogawa Jun 1982

MACAU LEGEND DEVELOPMENT LIMITED Hong Kong 675 2018 -38.73% 1,580,336 Chow Dec 2006

DO & CO Aktiengesellschaft Austria 873 2019 13.63% 1,495,633 Dogudan Jul 2012

Melia Hotels International S.A. Spain 1,899 2018 -24.53% 1,481,522 Escarrer Jaume Apr 1999

Dalata Hotel Group Public Limited Company Other EMEA Developed 1,021 2018 -27.11% 1,408,361 McCann Aug 2007

GREGGS PLC United Kingdom 2,535 2018 108.90% 1,390,139 Whiteside Feb 2013

bet-at-home.com AG Germany 477 2018 -13.55% 1,374,330 Ömer Mar 2008

REGAL HOTELS INTERNATIONAL HOLDINGS LIMITED Hong Kong 499 2018 0.53% 1,371,761 Lo Jan 1989

EI GROUP PLC United Kingdom 1,521 2018 69.78% 1,350,016 Townsend Feb 2014

CAFE DE CORAL HOLDINGS LIMITED Hong Kong 1,609 2019 21.51% 1,314,028 Lo Apr 2016

Basic Fit NV Netherlands 1,754 2018 -1.88% 1,261,691 Moos Nov 2013

WILLIAM HILL PLC United Kingdom 2,076 2018 -20.70% 1,219,431 Bowcock Jul 2016

THE STAR ENTERTAINMENT GROUP LIMITED Australia 2,637 2019 -11.80% 1,190,455 Bekier Apr 2014

..........

TKP Corporation Japan 1,052 2019 26.47% Kawano Aug 2005

Orascom Development Holding AG Switzerland 643 2018 26.53% Bichara Jan 2016

Accordia Golf Trust Singapore 447 2019 5.35% Machida Jun 2014

DOUTOR NICHIRES Holdings Co., Ltd. Japan 1,004 2019 3.09% Hoshino May 2008

Betsson AB Sweden 711 Pontus Lindwall Sep 2017

Due to the large size of this peer group, only a subset of companies is displayed in this table.

Betsson AB (BETS B)



CEO TOTAL AWARDED PAY VERSUS PAY PEER GROUP

Total Awarded Pay (USD)

TSR

- 1yr

0 2M 4M 6M 8M 10M 12M-100

0

100

200

300

Pay Peers (♦) are used in the calculation of the Key Metric CEO Pay Total Summary and selected as set out in the MSCI Governance Metrics Methodology Document.

CEO TOTAL REALIZED PAY VERSUS PAY PEER GROUP

Total Realized Pay (USD)

TSR

- 5yr

0 2M 4M 6M 8M 10M 12M-1k

0

1k

2k

3k


PAY PERFORMANCE ALIGNMENT

CEO & EXECUTIVE EQUITY

No effective stock ownership guidelines have been identified.

Betsson AB (BETS B)



Executive Tenure(Years)

Shares Held YoY %Change

ShareholdingAs % ofSalary

Kristian Saliba I $ N/A(Resigned)

11,076

Pontus Lindwall I 2 1,030,000 0.00% 1373.33%

$ - Financial Expert I - Industry Expert (2)

PAY LINKED TO SUSTAINABILITY

The company has failed to incorporate links to sustainability performance in its current incentive pay policies.

CLAWBACK & MALUS

No clawback or malus provisions have been identified.

EQUITY PLAN DILUTION

2018 2017 2016

Shares Outstanding 138,414,646 138,414,646 138,414,646

Equity Reserved 1.9% 1.5% 2%

Shares granted/awarded (in year) 0.5% 0.7% 0.8%

NON-EXECUTIVE DIRECTOR PAY

NON-EXECUTIVE EQUITY

Director Tenure (Years) Shares Held

Fredrik Carlsson $ 2 7,300

Jan Nord 4 0

Johan Lundberg 1 2,000

Kicki Wallje-Lund 13 2,850

Mathias Hedlund $ 1 0

Patrick Svensk 14 10,000


LATEST PAY VOTES

Year Vote Type Votes For % Votes Against % Abstain %

2019 Advisory Vote on Executive Compensation

Betsson AB (BETS B)



NON-EXECUTIVE PAY TABLES

Director Tenure (Years) Cash Fees Other Comp Total Pay Total Pay (USD)

Fredrik Carlsson $ 2 542,000 SEK 542,000 SEK 61,133

Jan Nord 4 478,000 SEK 478,000 SEK 53,915

Johan Lundberg 1 289,000 SEK 289,000 SEK 32,597

Kicki Wallje-Lund 13 473,000 SEK 473,000 SEK 53,351

Martin Wattin $ N/A (Resigned) 183,000 SEK 183,000 SEK 20,641

Mathias Hedlund $ 1 295,000 SEK 295,000 SEK 33,274

Patrick Svensk 14 1,039,000 SEK 1,039,000 SEK 117,191

Tristan Sjöberg N/A (Resigned) 160,000 SEK 160,000 SEK 18,047


CONTROVERSY CASES


Betsson AB (BETS B)





8.1 62nd (Average) 39th (Average)

OWNERSHIP & CONTROL PERFORMANCE VS.


▼▼

The company's ownership structure and shareholder rights at Betsson AB fall withinthe average scoring relative to global peers.

KEY METRICS SCORING

Deduction

DIRECTOR ELECTIONS

Majority Voting -0.10

ONE SHARE ONE VOTE

Multiple Equity Classes with Different Voting Rights -0.45

OWNERSHIP & CONTROL

CORPORATE STRUCTURE

Public Company

CAPITAL STRUCTURE

Capital Type Votes Per Share Shares Outstanding

A shares 10.0 16,260,000

B shares 1.0 122,154,646

C shares (Treasury) 0.0 6,077,508

The number of shares in the Company at the end of the year was 144,493,238, of which 16,260,000 were A shares, 122,155,730 were B shares and6,077,508 were C shares. Each A share entitles the holder to ten votes, whilst each B share entitles the holder to one vote. Betsson treasury shares totalled1,084 B shares and 6,077,508 C shares.

OWNERSHIP STRUCTURE

OWNERSHIP CATEGORIES

• Principal Shareholder

NOTABLE SHAREHOLDERS

Hamberg Family And Company - 17.61% Danske Bank International S.A -13.04% Familjen Knutsson Med Bolag - 10.81%

17.6%

5%+ shareholders - Aggregate Voting Power 56.7%

The company has a multiple share class structure with unequal voting rights. We note that 45% of companies in Sweden are flagged for having disparatevoting rights across multiple share classes. Even in the absence of a controlling shareholder, differential voting rights mean that the economic exposure ofcertain shareholders is higher than their voting power, and may reduce the rights of minority shareholders.

TAKEOVER PROVISIONS

Betsson AB (BETS B)



Fair Price Provision Mandatory Bid Provision Mandatory Bid Ownership Threshold

Yes Yes 30.0

% of Votes to Approve a Merger

67%

GOVERNING DOCUMENTS

MAJORITY REQUIREMENTS

Bylaws Charter

Default percentage of votes required to amend a provision 0% 67%

SHAREHOLDER RIGHTS

Investors should be aware of governance risks in relation to shareholder rights and management-controlled takeover defence mechanisms currentlyapplicable in the governing documents or applicable regulation at Betsson AB including:

• Limits on the right of shareholders to take action by written consent

SHAREHOLDER MEETINGS & RESOLUTIONS

Call Special Meeting Requisition a Resolution at AGM Act by Written Consent

Percentage of shares required 10% N/A - no right exists

RESTRICTIONS ON LEGAL ACTION BY SHAREHOLDERS

No exclusive forum provision has been identified.

SAY ON PAY

We note that shareholder votes on executive pay are mandatory in this market, affording shareholders the ability to review and approve executive paypractices at this company, which has been shown to have positive effects on executive pay practices.

DIRECTOR ELECTIONS

BOARD RE-ELECTION PROVISIONS

Board Re-election Provisions

Board Re-election Frequency (Years) 1

% of Board subject to re-election 100%

Betsson AB (BETS B)



DIRECTOR ELECTION STANDARD

Director Election Rules

Vote Standard Plurality

Immediate Binding Resignation Yes

The Companies Act states that the members who receive the most votes are regarded as elected. This means that there is no majority requirement, andthat a vote against has the same weight as an abstention. A common misunderstanding is that the Board must be elected as a single unit at theshareholders’ meeting. Even if there is only one proposal presented, the Companies Act gives each shareholder the right to propose its own candidates andto demand a vote on each of the proposed candidates. The latter also applies to discharge of liability, which under the Companies Act is determinedindividually for each member of the board and the chief executive officer.

The board of directors are elected for a term of 1 year.

Betsson AB (BETS B)





3.98th (BelowAverage)

4th (Worst In Class)

ACCOUNTING PERFORMANCE VS.


▼▼

Based on the company's disclosures and other public information, accounting andfinancial reporting practices at Betsson AB may warrant close attention fromshareholders. We have flagged this company for potential concerns regardingrevenue recognition ratios (based on our quantitative assessment) and expenserecognition ratios (based on our quantitative assessment).

KEY METRICS SCORING

Deduction

ACCOUNTING RISK

Revenue Recognition -0.41

Expense Recognition -0.33

Asset-Liability Valuation -0.30

Type Since Firm Most Recent Fiscal YearEnd Signed Off

Primary 2008 PricewaterhouseCoopers AB 2018

Fees paid to: PricewaterhouseCoopers AB (Primary)

FeeDec 31, 2018

(SEK)Dec 31, 2017

(SEK)Dec 31, 2016

(SEK)

Audit 5,234,000 3,303,000 2,488,000

AuditRelated

0 110,000 368,000

Total Audit +Audit Related

5,234,000 3,413,000 2,856,000

TaxCompliance/Advice

265,000 1,442,000 366,000

Other Non-auditServices

1,206,000 2,561,000 3,035,000

Total Non-audit Fees

1,471,000 4,003,000 3,401,000

Total Fees 6,705,000 7,416,000 6,257,000

AuditAudit: 78.1 %: 78.1 %

AuditAuditRelatedRelated: 0.0 %: 0.0 %

Non-auditNon-auditTTaxax: 4.0 %: 4.0 %

Non-auditNon-auditOtherOther: 18.0 %: 18.0 %

ACCOUNTING

EXTERNAL AUDITORS

AUDITOR FEES

Betsson AB (BETS B)



AUDITOR REPORT

Dec 31, 2018 Dec 31, 2017 Dec 31, 2016

Report Disclosed Yes Yes Yes

Opinion Unqualified Opinion Unqualified Opinion Unqualified Opinion

Emphasis of Matter No No No

CONTROVERSY CASES


Betsson AB (BETS B)



High Risk Exposure

Betsson AB

Top Quartile Second Quartile Third Quartile Bottom Quartile

0 1 2 3 4 5 6 7 8 9 100

1

2

3

4

5

6

7

8

9

10

0 1 2 3 4 5 6 7 8 9 10

KEY ISSUE SCORE DISTRIBUTION*

Key Issue Score

TOP 5 INDUSTRY LEADERS

FLUTTER ENTERTAINMENT PLC 4.8

ARISTOCRAT LEISURE LIMITED 4.1

MGM RESORTS INTERNATIONAL 3.5

GENTING MALAYSIA BERHAD 3.4

GENTING SINGAPORE LIMITED 3.2

BOTTOM 5 INDUSTRY LAGGARDS

LAS VEGAS SANDS CORP. 1.9

LE GROUPE STARS INC. 1.7

GVC HOLDINGS PLC 1.6

SJM Holdings Limited 1.6

TSOGO SUN HOLDINGS LIMITED 1.2

METHODOLOGY NOTE

This issue evaluates the extent to which companies

may face regulatory risks or lost market access due to

corruption scandals or political and social instability.

Scores are based on reliance on government contracts

and operations in regions facing political instability or

high perceived corruption levels; anti-bribery policies,

programs, and transparency; and controversies.

*[ For symbols and terms used in this report, refer tothe Glossary section at the end of the report ]

0% 0%

45%40%

10%5%

0% 0% 0% 0% 0%

KEY ISSUEASSESSMENT

Company 2.8

Industry 2.70 5 10

Low Mod High

Company 8.0

Industry 8.10 5 10

Low Mod HighRisk

Company 8.10 5 10

RISK EXPOSURE ASSESSMENT

Drivers of Risk Exposure

Business Types

Company 3.8

Industry 3.80 5 10

Low Mod Strong RiskManagement

Company 3.80 5 10

Company 0.0-5.0 -2.5 0

RISK MANAGEMENT ASSESSMENT

Drivers of Risk Management

Practices Score

Controversy Deduction

Betsson faces high exposure to risks of regulatory action and operational disruptionsassociated with corruption due to its online gaming operations. However, the companymanages the risks by having a CSR team overseeing its business ethics issues as well asproviding whistleblower protection among employees.

Strong Risk Management



2.8 n/a ●●● 24.0% Feb 26, 2019

Corruption & Instability

Betsson AB (BETS B)



Company 3.00 5 10

Business Locations

Company 8.0

Industry 8.10 5 10

Low Mod HighRisk

Company 3.8

Industry 3.80 5 10


EXPOSURE

RISK EXPOSUREASSESSMENT

Key Drivers of Risk Exposure

Exposure to: Regulatory risks or lost market access due to corruption scandals or political and social instability

Business Types : Percentage of operations in business segments perceived most likely to pay or receive bribes

98%

2%

■ Online Gaming■ Recreation services■ No exposure to low risk segments

Source: World Bank Governance Indicators; Bribe Payers Index(Transparency International); Thomson; MSCI ESG Research;company disclosure

Business Locations : Percentage of operations in countries with high/moderate/low level of corruption and political instability, violence or terrorism

22%

78%

■ No operations in markets with high risks■ Eurasia, other countries■ Western Europe, Nordic countries

Source: Corruption Perception Index (Transparency International);World Bank (Control of Corruption Indicator, Political Stability andAbsence of Violence/Terrorism and Rule of Low Indicator);Thomson; company disclosure; MSCI ESG Research

Additional Drivers of Exposure

Company is reliant on the government sectors for a major proportion: Yes

MANAGEMENT

RISK MANAGEMENTASSESSMENT

Betsson AB (BETS B)



Description Company Practice Best Practice Practices Score2

Policies & Commitments

Executive body responsible formanaging business ethics andcorruption issues

Corporate SocialResponsibility/Sustainability team

Board-level committeeTOPMIDLOW-

Company's bribery and anti-corruptionpolicy

General statements ofcommitment to addressbribery and corruptionissues

Detailed formal policy onbribery and anti-corruption

TOPMIDLOW-

Scope of anti-corruption policy forsuppliers

All suppliers are required tohave anti-corruptionpolicies

All suppliers are required tohave anti-corruptionpolicies and programs toverify compliance

TOPMIDLOW-

Business ethics policy coverssubsidiaries

Policy covers selectedsubsidiaries only

Policy covers all subsidiariesTOPMIDLOW-

Commitment to external standards for ethics / anti-corruption

World Economic Forum's PartneringAgainst Corruption Initiative (PACI)

No YesTOPLOW-

Transparency International's BusinessPrinciples for Countering Bribery

No YesTOPLOW-

Programs & Structures

Scope of employee training on ethicalstandards

General statements onemployee training on ethicalstandards

Programs covering allemployees (including part-time) and contractors

TOPMIDLOW-

Provision of whistleblower protection Whistleblower protectionwith no details on system orlegal protection

Formal anonymouswhistleblower system withlegal protection

TOPMIDLOW-

CONTROVERSIES

All controversies are assessed as part of the annual review of a company's ESG rating. MSCI ESG Research tracks controversies for all companies on a regularbasis. There is no evidence of the Betsson's current involvement in prominent controversial events or alleged misconduct.

Betsson AB (BETS B)



High Risk Exposure

Betsson AB


0 1 2 3 4 5 6 7 8 9 100

1

2

3

4

5

6

7

8

9

10

0 1 2 3 4 5 6 7 8 9 10


Key Issue Score


LAS VEGAS SANDS CORP. 10

MGM China Holdings Limited 10

Sands China Ltd. 10






Wynn Macau, Limited 5.1

CROWN RESORTS LIMITED 4.9


METHODOLOGY NOTE


may face increased costs linked to carbon pricing or

regulatory caps. Scores are based on exposure to GHG

intensive businesses and emerging regulations; carbon

reduction targets and mitigation programs; and carbon

intensity over time and vs. peers.


0% 0% 0% 0% 0%

30%

15%

25%

5% 5%

20%

KEY ISSUEASSESSMENT

Company 6.8

Industry 6.90 5 10

Low Mod High

Company 3.9

Industry 4.40 5 10

Low Mod HighRisk

Company 3.20 5 10

Company 7.20 5 10



Business Types

Business Locations

Company 3.7

Industry 4.30 5 10


Company 3.00 5 10

Company 5.00 5 10



Practices Score

Performance Score

Better positioned to manage potential increased costs linked to carbon pricing or regulatorycaps.




6.8 n/a ●●● 10.0% Feb 26, 2019

Carbon Emissions

Betsson AB (BETS B)



Company 3.9

Industry 4.40 5 10

Low Mod HighRisk

Company 3.7

Industry 4.30 5 10


EXPOSURE



Exposure to: Risks of having to pay increased compliance costs tied to carbon emissions regulations

Business Types : Percentage of operations in business segments with high/moderate/low carbon intensity

100%

■ No exposure to high risk segments■ No exposure to medium risk segments■ Online Gaming, Recreation services

Source: IERS' Comprehensive Environmental Data Archive (CEDA)data - direct GHG emissions intensity; Eurostat – Air EmissionsAccounts by Activity; Thomson; GHG emissions intensities compiledby MSCI ESG Research; company disclosure

Business Locations : Percentage of operations in countries with strengthening or pending carbon emissions regulation

78%

22%

■ Western Europe, Nordic countries■ Eurasia, other countries■ No operations in markets with low risks Source: MSCI ESG Research; Thomson; company disclosure

MANAGEMENT


Betsson AB (BETS B)




Targets

Aggressiveness of the company'sreduction target in the context of itscurrent performance

No target Aggressive target with a lowbase

TOPMIDLOW-

Demonstrated track record of achievingits carbon reduction targets

No previous targets Previously set & met targetsTOPMIDLOW-

Mitigation

Strength of Greenhouse Gas MitigationStrategy (0-10 Score, 0=worst, 10=best)

6.00

Programs or actions to reduce the emissions intensity of core operations

Use of cleaner sources of energy No evidence Aggressive effortsTOPMIDLOW-

Energy consumption management andoperational efficiency enhancements

Some efforts Aggressive effortsTOPMIDLOW-

CDP disclosure No YesTOPLOW-

Performance

Carbon Emissions Performance Relative to Peers (0-10 Score, 0=worst, 10=best) 5.00

GHG Emissions - metric tons CO2e

YearScope 1

Disclosed Scope 1 Estimate KeyScope 2

DisclosedScope 2

Estimate KeyScope 1+2Disclosed

Scope 3(upstream)

Scope 3(downstream)

Scope 3(undefined)

Scope 1Estimated

Scope 2Estimated

Scope 1+2Estimated Scope 1+2 Estimate Key GHG Emissions Details

2017 E.Segmt-ModeratelyHigh

664.0 Reported 9,872.0 10,536.0 E.Segmt-ModeratelyHigh

Only Scope 2 disclosed


1,166.0 Reported 7,767.0 8,933.0 E.Segmt-ModeratelyHigh



1,055.0 Reported 7,153.0 8,208.0 E.Segmt-ModeratelyHigh


2014 E.GICSSI -MODERATELY LOW

1,188.0 Reported 297.0 1,485.0 E.GICSSI -MODERATELY LOW



E.CSI 192.0 769.0 961.0 E.GICSSI -MODERATELY LOW

August 2018 EstimationUpdate
















GHG Emissions Intensity - metric tons CO2e / USD million sales

Year GHG Intensity GHG Intensity Details GHG Intensity - Reported GHG Intensity - Reported Details

2017 18.30

Betsson AB (BETS B)



Year GHG Intensity GHG Intensity Details GHG Intensity - Reported GHG Intensity - Reported Details

2016 19.70

2015 18.60

2014 3.80

2013 2.50

2012 2.50

2011 2.50

2010 2.50

2009 2.50

2008 2.50

Energy Consumption

Year

Total energyconsumption

(reported)Total energy

consumption (MWh)Energy intensity

(reported)

Reportedintensitydetails

Total energyconsumption

intensity Energy consumption details

2017 1,660 1,660 2.88 Electricity

2016 2,914 2,914 6.43 Electricity

2015 2,638 2,638 5.98 Electricity

2014 2,968 2,968 7.66 Electiricity

2013 2,048.80 2,048.80 5.33 Total energy consumptionfrom all work stations.

Betsson AB (BETS B)



High Risk Exposure

Betsson AB


0 1 2 3 4 5 6 7 8 9 100

1

2

3

4

5

6

7

8

9

10

0 1 2 3 4 5 6 7 8 9 10


Key Issue Score


TABCORP HOLDINGS LIMITED 9.4

TSOGO SUN HOLDINGS LIMITED 8.6

GREEK ORGANISATION OF FOOTBALLPROGNOSTICS S.A.

8

Sands China Ltd. 8



Kangwon Land Inc 5.3

WYNN RESORTS, LIMITED 4.5




METHODOLOGY NOTE


may face workflow disruptions due to labor unrest or

reduced productivity due to poor job satisfaction.

Scores are based on exposure to regions facing labor

unrest, size of workforce, and corporate restructuring /

layoffs; workforce policies, benefits, training, and

employee engagement; and labor-related

controversies.

0% 0% 0%

5%

10%

20% 20%

25%

15%

5%

0%

KEY ISSUEASSESSMENT

Company 10.0

Industry 6.20 5 10

Low Mod High

Company 3.4

Industry 5.60 5 10

Low Mod HighRisk

Company 3.90 5 10

Company 6.30 5 10



Business Types

Business Locations

Company 6.7

Industry 4.80 5 10


Company 6.70 5 10

Company 0.0-5.0 -2.5 0



Practices Score


Less likely to experience workflow disruptions due to labor unrest or reduced productivitydue to poor job satisfaction.




10.0 n/a ●●●● 19.0% Feb 26, 2019

Labor Management

Betsson AB (BETS B)




Company 3.4

Industry 5.60 5 10

Low Mod HighRisk

EXPOSURE



Exposure to: Risk of workflow disruptions due to labor unrest, or reduced productivity due to poor job satisfaction

Business Types : Percentage of operations in business segments with high/moderate/low labor intensities, as measured by average sales per employee ofindustries

100%

■ No exposure to high risk segments■ Online Gaming, Recreation services■ No exposure to low risk segments Source: Thomson; MSCI ESG Research; company disclosure

Business Locations : Percentage of operations in countries with high/moderate/low likelihood of labor unrest (based on historic precedent)

49%51%

■ Western Europe, Eurasia■ other countries, Nordic countries■ No operations in markets with low risks

Source: International Labour Organization; Thomson; MSCI ESGResearch; company disclosure

Additional Drivers of Exposure

Collective bargaining negotiation expected in next 12 months: No

Layoffs Events

Major Layoffs: No

Number of Employees

Year Number of employees Part time workers (%) Contract or temporary workers (%) Estimated Part time/contract %

2008 185

Betsson AB (BETS B)



Company 6.7

Industry 4.80 5 10


Year Number of employees Part time workers (%) Contract or temporary workers (%) Estimated Part time/contract %

2009 258

2010 282

2011 412

2012 748

2013 839

2014 870

2015 1,639

2016 1,821

2017 1,873

2018 1,547

MANAGEMENT



Strategy

Evidence of collective agreements No YesTOPLOW-

Employee stock ownership plan (ESOP)or employee stock purchase plan (ESPP)

Only select number ofemployees eligible for ESOPand/or ESPP

Sector-leading number ofemployees eligible for ESOPand/or ESPP

TOPMIDLOW-

Non-compensation benefits includingpension and retirement

Benefits cover selectedemployees

Benefits cover all employeesTOPMIDLOW-

Performance

External recognition as employer of choice (last three years) Not Disclosed

Employee turnover

Year Annual employee turnover (%) Details

2016

2017

Employee Productivity

Year Profit per employee (USD '000)

2018

Betsson AB (BETS B)



Year Profit per employee (USD '000)

2016 53

CONTROVERSIES


Betsson AB (BETS B)



High Risk Exposure

Betsson AB


0 1 2 3 4 5 6 7 8 9 100

1

2

3

4

5

6

7

8

9

10

0 1 2 3 4 5 6 7 8 9 10


Key Issue Score










Galaxy Entertainment Group Limited 3.1



METHODOLOGY NOTE


may face regulatory risks or reputational damage from

a data breach or controversial use of personal data.

Scores are based on involvement in handling sensitive

personal data and exposure to evolving regulations;

strength of privacy policy and data security

management systems; and data breaches and

controversies.


0% 0% 0%

25%

30%

15%

20%

10%

0% 0% 0%

KEY ISSUEASSESSMENT

Company 2.0

Industry 4.50 5 10

Low Mod High

Company 7.5

Industry 6.50 5 10

Low Mod HighRisk

Company 5.60 5 10



Business Types

Company 2.5

Industry 4.10 5 10


Company 2.50 5 10

Company 0.0-5.0 -2.5 0



Practices Score


Betsson's privacy and security measures appear weak compared to most of its online gamingpeers. It has limited proactive programs in place to handle incidents such as data breaches.The company also gives the right to access and modify customer data but without the optionof deletion.




2.0 n/a ● 14.0% Feb 26, 2019

Privacy & Data Security

Betsson AB (BETS B)



Company 8.40 5 10

Business Locations

Company 7.5

Industry 6.50 5 10

Low Mod HighRisk

Company 2.5

Industry 4.10 5 10


EXPOSURE



Exposure to: Risk of compliance cost increase or reputational damage from data breaches or controversial use of personal data

Business Types : Percentage of revenue derived from business segments that · require collection and/or handling of sensitive personal data · havewitnessed high cost and frequency of data breaches

98%

2%

■ No exposure to high risk segments■ Online Gaming■ Recreation services Source: Thomson; MSCI ESG Research; company disclosure

Business Locations : Percentage of operations in countries with strengthening or evolving data and privacy regulations, with high cost of data breaches

100%

■ Western Europe, Eurasia, other countries,Nordic countries

■ No operations in markets with mediumrisks

■ No operations in markets with low risksSource: Thomson; MSCI ESG Research; company disclosure;Ponemon Institute

MANAGEMENT


Betsson AB (BETS B)




Practices - Operations

Scope of company’s publicly availabledata protection policy

Policy governs selectedbusiness lines/subsidiaries

Policy governs all relevantbusiness lines/subsidiaries

TOPMIDLOW-

Rights provided to individuals regardingthe control of their data

Right of access andrectification of individuals'data

Right of access, rectificationand deletion of individuals'data

TOPMIDLOW-

Information Security Policies andSystems audit frequency

No evidence External independent auditsare conducted at least onceevery two years

TOPMIDLOW-

Company's executive body responsiblefor: Privacy and Data security

No evidence Board-level committeeTOPMIDLOW-

Practices - Employees

Scope of employee training on datasecurity and/or privacy-related risks &procedures

No evidence Training is provided to allemployees, includingcontractors

TOPMIDLOW-

CONTROVERSIES


Betsson AB (BETS B)



High Risk Exposure

Betsson AB


0 1 2 3 4 5 6 7 8 9 100

1

2

3

4

5

6

7

8

9

10

0 1 2 3 4 5 6 7 8 9 10


Key Issue Score



MELCO RESORTS & ENTERTAINMENTLIMITED

5.1

WILLIAM HILL PLC 4.6


GREEK ORGANISATION OF FOOTBALLPROGNOSTICS S.A.

4.3





Sands China Ltd. 1.6


METHODOLOGY NOTE


may face product recalls or lost customer trust due to

product quality concerns. Scores are based on

exposure to products with greater incidence of safety

issues; efforts to ensure product safety and quality

through the supply chain, operations, and marketing;

recalls, warning letters, warranty payments; and

controversies.

5%0%

35%

25%20%

10%

0% 0%5%

0% 0%

KEY ISSUEASSESSMENT

Company 5.0

Industry 3.10 5 10

Low Mod High

Company 5.4

Industry 6.60 5 10

Low Mod HighRisk

Company 6.90 5 10



Business Types

Company 3.4

Industry 2.60 5 10


Company 6.70 5 10

Company 0.00 5 10



Practices Score

Performance Score

Better positioned to manage potential product recalls or lost customer trust due to productquality concerns.




5.0 n/a ●●●● 14.0% Feb 26, 2019

Product Safety & Quality

Betsson AB (BETS B)




Company 0.0-5.0 -2.5 0


Company 5.4

Industry 6.60 5 10

Low Mod HighRisk

Company 3.4

Industry 2.60 5 10


EXPOSURE



Exposure to: Risk of increased costs of implementing large scale product recalls, fulfill warranties; potential damage to brand value from loss of consumertrust, negative publicity

Business Types : Percentage of revenue from business segments facing elevated product and service quality risks: · Segments focusing on products thatcarry health risks (e.g., through injury, contamination, intoxication) · Segments targeting vulnerable populations (minors, low-income) · Segments providingpublic services such as education and healthcare · Segments relying heavily on government spending as a source of revenue

98%

2%

■ Online Gaming■ Recreation services■ No exposure to low risk segments

Source: Thomson; MSCI ESG Research; company disclosure; JayantR. Kale, Costanza Meneghetti and Husayn Shahrur (2013);"Contracting with Nonfinancial Stakeholders and Corporate CapitalStructure: The Case of Product Warranties," Journal of Financialand Quantitative Analysis, 48, pp 699-727. doi:10.1017/S002210901300029X.

MANAGEMENT



Marketing, advertising & sales

Responsible marketing, advertising, andsales

Evidence of commitment,but no policy articulated

Explicit policy articulatedTOPMIDLOW-

Trains employees on responsiblemarketing and advertising practices

Demonstrates best practicesof training in scope anddepth

Demonstrates best practicesof training in scope anddepth

TOPMIDLOW-

Audit/control procedures onresponsible marketing

Systematic and regular auditsystems

Systematic and regular auditsystems

TOPMIDLOW-

Betsson AB (BETS B)



CONTROVERSIES


Betsson AB (BETS B)



APPENDIX

CONTENTS

ISSUER COMMUNICATION

ADDITIONAL ESG ISSUES

CONTROVERSIES DETAIL

ADDITIONAL CORPORATE GOVERNANCE CONTENT

KEY METRIC & SCORE CHANGES

CEO PAY CHARTS

SHAREHOLDER/MANAGEMENT PROPOSALS

GOVERNANCE STANDARDS

DIRECTOR PROFILES

Betsson AB (BETS B)



ISSUER COMMUNICATION SUMMARY

COMPANY COMMUNICATION PAST 15 MONTHS

Direction Method Category Research Product Date

Outgoing E-mail Data Review - Report ESG Ratings Feb 26, 2019

Outgoing E-mail Data Review - Alert ESG Ratings Nov 27, 2018

Outgoing E-mail Other ESG Ratings Oct 15, 2018

Incoming E-mail Other ESG Ratings Oct 12, 2018

Outgoing E-mail Request for information ESG Ratings Oct 10, 2018

Incoming E-mail Request for information ESG Ratings Oct 04, 2018

Outgoing E-mail Published report sent ESG Ratings Oct 04, 2018

Outgoing E-mail Published report sent ESG Ratings Oct 04, 2018

Incoming E-mail Request for published report ESG Ratings Oct 04, 2018

LEGEND

Direction Category

Outgoing: MSCI ESG Research contactsissuer.

Data Review - Alert: Notification of pendingannual update of ESG Rating, and invitation toengage MSCI.

Incoming: Query by corporate issuer. Data Review - Report: MSCI ESG Researchdelivers report of updated ESG data

Data Review - Feedback Provided: Feedbackprovided to MSCI ESG Research.

Request for Information: Issuer inquiries; MSCIESG Research queries.

Published Report Sent: MSCI ESG Researchdelivers issuers' ESG product report that is postedto the MSCI ESG Manager platform.

Other: Issuer notified of custom projects;Miscellaneous queries.

Betsson AB (BETS B)



0 1 2 3 4 5 6 7 8 9 10


Key Issue Score





GENTING BERHAD 8.0

GREEK ORGANISATION OF FOOTBALL PROGNOSTICSS.A.

8.0




MELCO RESORTS & ENTERTAINMENT LIMITED 5.0



0% 0% 0%

5% 5%

10%

25% 25%

15%

0%

15%

ANALYSIS

Indicators

Tax Gap

Estimated Effective Tax Rate 6.0%Estimated Corporate Income Tax Rate 24.9%Estimated Tax Gap 18.9%

Revenue

Foreign Revenue 100.0%

Confidence

Confidence Level of Estimation Low

METHODOLOGY NOTE

This issue evaluates the extent to which companies’ estimated effective income tax rate

may be misaligned with revenue-weighted corporate income tax rates in countries of

operation. The score is an absolute assessment of a company's tax transparency and

payments on a universally applied 0-10 scale. Each company starts with a "perfect 10" and

points are deducted based on the size of the tax gap and any involvement in tax-related

controversies. Confidence Level refers to the degree of granularity of reported data and

frequency of loss-making. Low confidence level indicates disclosure of revenue primarily by

regions rather than countries or that the company experienced losses in at least two of the

last five years. A negative tax gap indicates that the company’s estimated effective rate is

greater than its estimated corporate income tax rate. A negative estimated effective tax rate

may indicate that the company is receiving or claiming tax credits while reporting net profit.

A negative tax gap does not necessarily indicate that the company is paying excess taxes.

There is no score deduction for a negative tax gap.

*[ For symbols and terms used in this report, refer to the Glossary section at the end ofthe report ]



4.0 0.0 ● 0.0% Feb 26, 2019

Tax Transparency

Betsson AB (BETS B)



CONTROVERSIES DETAIL

Here you will find the narratives for all controversies relevant to the ESG Ratings issues covered for the company in addition to those controversies that do not map to the ESGRatings issues.

CONTROVERSY CARD

MOST SEVERECONTROVERSY CONTROVERSY COUNT

Environment

Carbon Emissions None 0

Social

Labor Management None 0

Product Safety & Quality None 0

Privacy & Data Security None 0

Governance

Corruption & Instability None 0

Corporate Governance None 0

Tax Transparency None 0

CONTROVERSIES

• Very Severe: Indicates an action by a company that results in a very largeimpact on society and/or the environment.

• Severe: Indicates an action by a company that results in a large impact onsociety and/or the environment.

• Moderate: Indicates an action by a company that results in a moderateimpact on society and/or the environment.

• Minor: Indicates an action by a company that results in a low impact onsociety and/or the environment.

• None: There is no evidence that a company is involved in any controversy.

NUMBER OF CONTROVERSIES BY PILLAR

0 0 0

Environment Social Governance0

2

4

6

NUMBER OF CONTROVERSIES BY ASSESSMENT

0 0 0 0

Very Severe Severe Moderate Minor0

2

4

6

Betsson AB (BETS B)



KEY METRIC & SCORE CHANGES

ALL KEY METRIC & SCORE CHANGES (SINCE JULY 2018)

Key Metric Key Metric Change Date Score Change* Change Notes

Expense Recognition Score Change Oct 25, 2019 -0.08 Updates to data for accounting peer group member(s)

Asset-Liability Valuation Score Change Jul 19, 2019 -0.07 Updates to data for accounting peer group member(s)

Expense Recognition Flag Added May 17, 2019 -0.23 Updates to data for accounting peer group member(s)

Revenue Recognition Score Change May 17, 2019 -0.17 Updates to data for accounting peer group member(s)

Asset-Liability Valuation Score Change May 17, 2019 0.01 Updates to data for accounting peer group member(s)

Auditor Tenure Score Change May 07, 2019

Auditor Independence Flag Removed May 07, 2019 0.50

Auditor Tenure Score Change Dec 14, 2018

Revenue Recognition Flag Added Dec 06, 2018 -0.01 Updates to data for accounting peer group member(s)

Expense Recognition Score Change Dec 06, 2018 Updates to data for accounting peer group member(s)

Asset-Liability Valuation Score Change Dec 06, 2018 -0.01 Updates to data for accounting peer group member(s)

Asset-Liability Valuation Score Change Sep 27, 2018 0.03 Updates to data for accounting peer group member(s)

Auditor Tenure Score Change Aug 30, 2018

Revenue Recognition Score Change Jul 12, 2018 -0.04 Updates to data for accounting peer group member(s)

Expense Recognition Score Change Jul 12, 2018 -0.03 Updates to data for accounting peer group member(s)

Asset-Liability Valuation Score Change Jul 12, 2018 -0.04 Updates to data for accounting peer group member(s)

*Score change available in respect of changes dated on or after 13 December 2017.

CEO PAY CHARTS

Due to the large size of this peer group, only a subset of companies is displayed in this table.

CEO TOTAL AWARDED PAY VERSUS PAY PEER GROUP

Total Awarded Pay (USD)

TSR

- 1yr

0 2M 4M 6M 8M 10M 12M-100

0

100

200

300


Betsson AB (BETS B)



CEO TOTAL REALIZED PAY VERSUS PAY PEER GROUP

Total Realized Pay (USD)

TSR

- 5yr

0 2M 4M 6M 8M 10M 12M-1k

0

1k

2k

3k


Betsson AB (BETS B)



SHAREHOLDER/MANAGEMENT PROPOSALS

MANAGEMENT PROPOSALS

ProxyYear

Proposal Proposal Summary Outcome VotesFor

VotesAgainst

Abstain/Withhold%

2019 Other 9. Resolution concerning the adoption of the Profit & Loss Statement and Balance Sheetfor the Parent Company and the consolidated Profit & Loss Statement and Balance Sheetfor the Group

Approved

2019 Other 10. Resolution concerning dispositions regarding the company’s profits according to theBalance Sheet adopted

Approved

2019 Discharge Directors (slate) 11. Resolution concerning discharge of liability for Board members and the CEO Approved

2019 Board Size 12. Determination of the number of Board members and alternative Board members, aswell as auditor(s) and deputy auditor(s)

Approved

2019 Auditor Remuneration 13. Determination of fees to the auditor(s) Approved

2019 Director Compensation 13. Determination of director’s fees for Board members Approved

2019 Elect Directors (slate) 14. Election of members to the Board of Directors Approved

2019 Advisory Vote on ExecutiveCompensation

16. Decision concerning guidelines for remuneration to members of senior management Approved

2019 Election of Chairman 14. Election of Chairman of the Board Approved

2019 Other 17. a) Decision concerning an incentive programme based on transferable call options Approved

2019 Other 15. Proposal for a decision regarding the Nomination Committee Approved

2019 ESOP, ESPP or Pension Fund 17. b) Decision concerning an incentive programme based on employee share options Approved

2019 Other 18. a) a decision concerning the implementation of a share split Approved

2019 Other 18. b) a decision concerning the reduction of the share capital via automatic redemption ofshares

Approved

2019 Other 18. c) a decision concerning an increase in the share capital via a bonus issue Approved

2019 Stock Issuance 20. Decision concerning authorising the Board of Directors to decide on the issuance ofshares and/or convertible debentures

Approved

2019 Other 19. Decision concerning authorising the Board of Directors to decide on the repurchaseand transfer of Class B shares

Approved

2018 Other 9. Resolution to adopt the Income Statements and Balance Sheets of the Parent Companyand the Group

Approved

2018 Other 10. Resolution on allocations concerning the Company’s earnings in accordance with theadopted Balance Sheet

Approved

2018 Discharge Directors (slate) 11. Resolution to discharge the members of the Board of Directors and the Chief ExecutiveOfficers from liability

Approved

2018 Board Size 12. Determination of the number of members and deputy members of the Board ofDirectors and number of auditors and deputy auditors

Approved

2018 Director Compensation 13. Determination of the fees to be paid to the members of the Board of Directors and theauditors

Approved

2018 Elect Directors (slate) 14. Election of members of the Board of Directors and Chairman of the Board of Directorsand auditor

Approved

2018 Other 15. Establishment of a Nomination Committee Approved

2018 Stock Issuance 20. Resolution to authorise the Board of Directors to resolve on the issue of shares and/orconvertible bonds

Approved

2018 Other 17.a) Resolution on incentive programme based on tradable warrants mainly foremployees in Sweden

Approved

Betsson AB (BETS B)



ProxyYear

Proposal Proposal Summary Outcome VotesFor

VotesAgainst

Abstain/Withhold%

2018 Other 17. b) Resolution on incentive programme based on stock options Approved

2018 Other 18.a) resolution to implement a share split Approved

2018 Other 18.b) resolution to reduce share capital through automatic redemption of shares Approved

2018 Other 18.c) resolution to increase share capital through a bonus issue Approved

2018 Other 19. Resolution to authorise the Board of Directors to resolve on the repurchase andtransfer of Class B shares

Approved


16. Resolution concerning guidelines for the remuneration of senior executives Approved

2017 Stock Issuance 20. Resolution to authorise the Board of Directors to resolve on the issue of shares and/orconvertible bonds

Approved

2017 Other 19. Resolution to authorise the Board of Directors to resolve on the repurchase andtransfer of Class B shares

Approved

2017 Increase Authorized Shares 18c) resolution to increase share capital through a bonus issue Approved

2017 Other 18b) resolution to reduce share capital through automatic redemption of shares Approved

2017 Other 18a) resolution to implement a share split Approved

2017 Other 17d) Resolution on authorisation for the Board of Directors to resolve on repurchase ofClass C shares

Approved

2017 Stock Issuance 17c) Resolution on authorisation for the Board of Directors to resolve on issue of Class Cshares

Approved

2017 Remuneration Policy (IndividualComponent): Bonus - ApproveMetrics

17b) Resolution on incentive programme based on stock options Approved

2017 Remuneration Policy (IndividualComponent): Bonus - ApproveMetrics

17a) Resolution on incentive programme based on tradable warrants mainly for employeesin Sweden

Approved


16. Resolution concerning guidelines for the remuneration of senior executives Approved

2017 Other 15. Establishment of a Nomination Committee Approved

2017 Elect Directors (slate) 14. Election of members of the Board of Directors and Chairman of the Board of Directors Approved

2017 Director Compensation 13. Determination of the fees to be paid to the members of the Board of Directors and theauditors

Approved

2017 Board Size 12. Determination of the number of members and deputy members of the Board ofDirectors

Approved

2017 Discharge Directors (slate) 11. Resolution to discharge the members of the Board of Directors and the Chief ExecutiveOfficers from liability

Approved

2017 Other 10. Resolution on allocations concerning the Company’s earnings in accordance with theadopted Balance Sheet

Approved

2017 Other 9. Resolution to adopt the Income Statements and Balance Sheets of the Parent Companyand the Group

Approved

*For Management Proposals at AGM’s held more than three years ago, please refer to the Screener tool on ESG Manager.

Betsson AB (BETS B)



SWEDEN

CURRENCY: SWEDISH KRONA (SEK)

Swedish companies cannot have a combined Chair and CEO and no more than one executive may sit on the board. Directors often have one year terms, but may have terms upto four years. Swedish companies may issue shares with differential voting rights (up to ten times other shares). A majority of directors must be independent of the company,although only a minimum of two directors must be independent of major shareholders. Voting for directors uses a plurality system (the largest number of votes gathered winsto fill all vacancies). The Code of Corporate Governance (the Code) recommends that directors elected should “exhibit diversity and breadth of qualifications, experience andbackground” and that a company should “strive for equal gender distribution on the board.”

Swedish companies have nomination committees directly elected by shareholders and usually representing larger shareholders, not the board. The majority of the nominationcommittee must be independent of the company and at least one must be independent of major shareholders. No executives may be on the nomination committee. Thisunique Swedish feature takes board nomination out of the hands of the board.

Auditors are appointed by shareholders and not only report and audit the financial statements, but they also review board and management performance. The auditor alsomakes a recommendation on whether shareholders should vote to discharge the board and CEO from future liability and reports to shareholders on any person who may beresponsible for corporate liability exposure. Shareholders vote on approving the annual financial statements. The Code recommends that the board have a meeting with theauditor without management present at least once a year. The audit committee monitors the internal controls system, the conduct of the audit and the company’s financialreporting. A majority of members must be independent and at least one must be independent and a financial expert. No executives may sit on the committee. Substantialrelated party transactions must be approved by shareholders.

Any shareholder, regardless of their holdings, can propose a resolution for a shareholder meeting. Amendments to the articles of association and approval of mergers require atwo-thirds majority vote of shareholders. Mandatory takeovers are triggered when an investor exceeds a 30% holding. The bidder must pay all shareholders the highest pricepaid by the bidder over the previous six months. The board cannot take actions to frustrate a bid unless shareholders approve such action.

Each company has a remuneration committee. It can be chaired by the board chair, but all other members must be independent. Share-based incentive schemes requireshareholder approval. Remuneration reports must itemize components of compensation for the board and the CEO and remuneration policy for senior executives is presentedto shareholders for adoption.

Betsson AB (BETS B)



DIRECTOR PROFILES

EVA LEACH

Age:Gender: F

Nationality: N/A

Financial: NoRisk: No

Industry:

BIOGRAPHICAL INFORMATIONBetsson AB - Board Member Source Date: 04/15/2019

The Nomination Committee further proposes the election of Eva Leach as a new member of the Board of Directors.

CORPORATE BOARDS

Company Role Tenure Appointed Resigned Independent of Management Independent of Other Interests Attendance

Betsson AB Board Member May 07, 2019 Yes Yes

Betsson AB (BETS B)



FREDRIK CARLSSON

Age: 49Gender: M

Nationality: Sweden

Financial: YesRisk: No

Industry: Diversified Financials - Capital Markets,Banks -Banks


Fredrik Carlsson Board Member • Board Member Since 2017. • Chairman Of The Audit Committee. • Ceo Of Sönerna Carlsson Family Office Ab. Other Assignments: ChairmanOf The Board In Sten A. Olsson’s Pension Foundation, Svolder Ab And Solid Försäkringsaktiebolag, Board Member In Resurs Holding Ab And Novobis Ab. Relevant Background:Long Experience From Leading Positions In International And Swedish Companies, Including Head Of Research At Seb, Head Of Equities At Andra Ap-Fonden, Vp For EuropeanTelecom, Media And Entertainment Groups At Bank Of America Merrill Lynch In London And Industry Specialist In Telecom And Technology At Hsbc Investment Bank In London.Education: Mba, Gothenburg School Of Economics And Mba, Nijenrode University In The Netherlands. Independent In Relation To The Company.

CORPORATE BOARDS


Betsson AB Board Member 2 Aug 07, 2017 Yes Yes

Resurs Holding AB (publ) Board Member 7 Jan 01, 2012 Yes Yes

BOARD COMMITTEES

Company Committee Type Position

Betsson AB Audit Chair

Resurs Holding AB (publ) Pay Member

DIRECTOR PAY (all values USD)

Company Role Tenure Pay Year Cash Fees Total Awarded Pay Shares Held

Betsson AB Non-Executive 2 2018 61,133 61,133 7,300

Resurs Holding AB (publ) Non-Executive 7 2018 73,428 73,428 138,254

Betsson AB (BETS B)



JAN NORD

Age: 64Gender: M

Nationality: Sweden


Industry: Consumer Durables & Apparel - Textiles, Apparel& Luxury Goods,Media - Media


Jan Nord Board Member • Board Member Since 2015. • Member Of The Remuneration Committee. Other Assignments: Board Member In Svenska Brasserier Ab. RelevantBackground: Creative Director With Focus On Brand Strategy. Long International Experience As Creative Director At H&M And Esprit Over The Past Fifteen Years. PreviouslyHead Of Nord & Co Ad Agency.

CORPORATE BOARDS


Betsson AB Board Member 4 May 08, 2015 Yes Yes

BOARD COMMITTEES


Betsson AB Pay Member



Betsson AB Non-Executive 4 2018 53,915 53,915 0

Betsson AB (BETS B)



JOHAN LUNDBERG

Age: 42Gender: M

Nationality: Sweden


Industry:


Johan Lundberg Board Member • Board Member Since 2018. • Member Of The Audit Committee. Other Assignments: Board Member In Ölands Bank And Nft Ventures Ab AsWell As Associated Companies In The Nft Ventures Sphere. Relevant Background: Founding Partner I Nft Ventures, One Of Europe’s Leading Fintech Investors, Leading PositionsIn Mastercard Among Others. Education: Masters From Stockholms University And Mba, Stockholm School Of Economics. Independent In Relation To The Company.

CORPORATE BOARDS



BOARD COMMITTEES


Betsson AB Audit Member




Betsson AB (BETS B)



KICKI WALLJE-LUND

Age: 66Gender: F

Nationality: Sweden


Industry: Health Care Equipment & Services - Health CareProviders & Services


Kicki Wallje-Lund Board Member • Board Member Since 2006. • Member Of The Audit Committee. Other Assignments: Chairman Of The Board In Thq Nordic Ab, BoardMember In C-Rad Ab And Wellnet Ab. Relevant Background: Long Experience From Business And Operational Development In Various International Companies, PrimarilyWithin Bank And Finance. Kicki Has Held Leading Positions At Ncr, Digital Equipment, At&T, Philips, Icl And Unisys. Independent In Relation To The Company

CORPORATE BOARDS


Betsson AB Board Member 13 Jan 01, 2006 Yes Yes

BOARD COMMITTEES


Betsson AB Audit Member




Betsson AB (BETS B)



MATHIAS HEDLUND

Age: 49Gender: M

Nationality: Sweden

Financial: YesRisk: No

Industry: Media - Media


Mathias Hedlund Board Member • Board Member Since 2018. • Member Of The Remuneration Committee. • Ceo At Etraveli Group. Other Assignments: Chairman Of TheBoard In Euroflorist. Relevant Background: Long Experience From Leading Positions In International And Fastgrowing Online Companies In Several Market Segments, Such AsOperative Manager At Klarna, Vice Ceo At Eniro And Business Area Manager Online And Casino Cosmopol At Svenska Spel. Education: Mba, Stockholm University. IndependentIn

CORPORATE BOARDS



BOARD COMMITTEES


Betsson AB Pay Member



Betsson AB Non-Executive 1 2018 33,274 33,274 0

Betsson AB (BETS B)



PATRICK SVENSK

Age: 53Gender: M

Nationality: Sweden


Industry: Media - Media

BIOGRAPHICAL INFORMATIONBetsson AB - Board Member, Chairman Source Date: 04/15/2019

Patrick Svensk Chairman Of The Board • Board Member Since 2005. • Chairman Of The Remuneration Committee. • Ceo And President, Bright Group. Other Assignments:Chairman Of The Board In Squid (Njuice Ab), Board Member In Svensk Media Group And Patos Konsult. Relevant Background: Long Experience From Leading Positions In ListedCompanies, Including Svp At Mtg As Well As Ceo And President At Mtg Studios/ Nice Entertainment Group, Zodiak Television, Kanal 5 And Tv3 Sverige. Education: Mba,Stockholm School Of Economics. Independent In Relation To The Company. Shareholding: 10,000 B Shares.

CORPORATE BOARDS


Betsson AB Board Member, Chairman 14 Jan 01, 2005 Yes Yes

BOARD COMMITTEES


Betsson AB Pay Chair

Betsson AB Nomination Member



Betsson AB Chair 14 2018 117,191 117,191 10,000

Betsson AB (BETS B)



GLOSSARY

MSCI ESG RATINGS AND SCORES

FINAL ESG RATING

• Letter ratings are relative within each MSCI ESG Ratings industry. Each Final Industry-Adjusted Company Score is converted to an equivalentrating on the AAA-CCC scale.

ESG PILLARS

• the Environment Score represents the weighted average of all Key Issues that fall under the Environment Pillar

• the Social Score represents the weighted average of all Key Issues that fall under the Social Pillar

• the Governance Score represents the weighted average of all Key Issues that fall under the Governance Pillar

• the Environment Weight represents the sum of the weights of all Key Issues that fall under the Environment Pillar

• the Social Weight represents the sum of the weights of all Key Issues that fall under the Social Pillar

• the Governance Weight represents the sum of the weights of all Key Issues that fall under the Governance Pillar

KEY ISSUES

For each industry and Company-Specific Key Issue that contributes to the final rating:

• Weight contribution to the final rating

• Exposure Score (available for companies published since June 2011; excluding Raw Material Sourcing – Environmental)

• Management Score (available for companies published since June 2011; excluding Raw Material Sourcing – Environmental)

• Overall Key Issue Score

WEIGHTED-AVERAGE KEY ISSUE SCORE VS. INDUSTRY RELATIVE SCORE

• the Weighted-Average Key Issue Score is dynamic, reflecting changes in any underlying scores as of the Last Update date, while the IndustryRelative Score is more static and corresponds to the Rating Date. Issues that we determine do not present material risks or opportunities tocompanies in a given industry receive 0% weight and do not impact the overall ESG rating.

SCORES AND CALCULATION OF AVERAGE, PERCENTILE AND RATING DISTRIBUTION

All averages, percentiles, and rating distributions found in the report are based on companies in the relevant MSCI ESG Ratings Industry that are constituents of the MSCI AllCountry World Index (ACWI) and are calculated based on industry scores as of the date of publication of this report.

ESTIMATED CARBON EMISSIONS

Carbon estimates are based on carbon intensity (carbon emissions/sales). The Estimate Key represents the source of the estimated carbon emissions data. E.CSI representsCompany-Specific Intensity estimates based on previously disclosed data. E.GICSSI represents estimates based on the GICS Sub-Industry average. For E.GICSSI we set fivelevels of confidence (High, Moderately High, Moderate, Moderately Low, and Low). The Carbon Estimation Methodology document, available on ESG Manager, describes theestimation model in greater detail.

Betsson AB (BETS B)



GOVERNMENT SUPPORT RATING

We calculate the 'government support rating' for Supranationals and Development Banks based on the weighted average of member countries' Governance scores using theMSCI ESG Government Ratings methodology. These scores are based on measures of political governance (strength of institutions, corruption control, civil liberties, andhuman rights) and financial accountability.

Betsson AB (BETS B)



NOTICE AND DISCLAIMER

• This document and all of the information contained in it, including without limitation all text, data, graphs, charts (collectively, the “Information”) is the property of MSCI Inc. or its subsidiaries(collectively, “MSCI”), or MSCI’s licensors, direct or indirect suppliers or any third party involved in making or compiling any Information (collectively, with MSCI,the “Information Providers”) and isprovided for informational purposes only. The Information may not be modified, reverse-engineered, reproduced or redisseminated in whole or in part without prior written permission from MSCI.

• The Information may not be used to create derivative works or to verify or correct other data or information. For example (but without limitation), the Information may not be used to create indexes,databases, risk models, analytics, software, or in connection with the issuing, offering, sponsoring, managing or marketing of any securities, portfolios, financial products or other investment vehiclesutilizing or based on, linked to, tracking or otherwise derived from the Information or any other MSCI data, information, products or services.

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• The Information may contain back tested data. Backtested performance is not actual performance, but is hypothetical. There are frequently material differences between backtested performanceresults and actual results subsequently achieved by any investment strategy.

• Constituents of MSCI equity indexes are listed companies, which are included in or excluded from the indexes according to the application of the relevant index methodologies. Accordingly,constituents in MSCI equity indexes may include MSCI Inc., clients of MSCI or suppliers to MSCI. Inclusion of a security within an MSCI index is not a recommendation by MSCI to buy, sell, or hold suchsecurity, nor is it considered to be investment advice.

• Data and information produced by various affiliates of MSCI Inc., including MSCI ESG Research LLC and Barra LLC, may be used in calculating certain MSCI equity indexes. More information can be foundin the relevant standard equity index methodologies on www.msci.com.

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• MSCI ESG Research LLC is a Registered Investment Adviser under the Investment Advisers Act of 1940 and a subsidiary of MSCI Inc. Except with respect to any applicable products or services from MSCIESG Research, neither MSCI nor any of its products or services recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or instruments ortrading strategies and neither MSCI nor any of its products or services is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investmentdecision and may not be relied on as such. Issuers mentioned or included in any MSCI ESG Research materials may include MSCI Inc., clients of MSCI or suppliers to MSCI, and may also purchaseresearch or other products or services from MSCI ESG Research. MSCI ESG Research materials, including materials utilized in any MSCI ESG Indexes or other products, have not been submitted to, norreceived approval from, the United States Securities and Exchange Commission or any other regulatory body.

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ABOUT MSCI ESG RESEARCH PRODUCTS AND SERVICES

MSCI ESG Research products and services are provided by MSCI ESG Research LLC, and are designed to provide in-depth research, ratings and analysis of environmental, social and governance-relatedbusiness practices to companies worldwide. ESG ratings, data and analysis from MSCI ESG Research LLC are also used in the construction of the MSCI ESG Indexes. MSCI ESG Research LLC is a RegisteredInvestment Adviser under the Investment Advisers Act of 1940 and a subsidiary of MSCI Inc.

ABOUT MSCI

For more than 40 years, MSCI’s research-based indexes and analytics have helped the world’s leading investors build and manage better portfolios. Clients rely on our offerings for deeper insights intothe drivers of performance and risk in their portfolios, broad asset class coverage and innovative research.

Our line of products and services includes indexes, analytical models, data, real estate benchmarks and ESG research.

MSCI serves 97 of the top 100 largest money managers, according to the most recent P&I ranking. For more information, visit us at www.msci.com

Betsson AB (BETS B)



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