Q 2 - 2 0 2 0

2 0 2 0 - 0 8 - 1 3

PRESENTERS

2

G U S T A F H A G M A N

G R O U P C E O

S T E F A N N E L S O N

G R O U P C F O

Q2 2020 HIGHLIGHTS

R E V E N U E O R G A N I C G R O W T H D E P O S I T I N G C U S T O M E R S

E B I T D A R E G U L A T E D S H A R E N D C S

110.7M E U R

+ 1 6 . 3 M E U R+19%

51%4 8 % I N Q 2 2 0 1 9

434 453+ 2 4 %

195 329+ 3 0 %

23.0M E U R

2 0 . 8 % MARGIN

3

110,7

0

20

40

60

80

100

1202012-Q

1

2012-Q

2

2012-Q

3

2012-Q

4

2013-Q

1

2013-Q

2

2013-Q

3

2013-Q

4

2014-Q

1

2014-Q

2

2014-Q

3

2014-Q

4

2015-Q

1

2015-Q

2

2015-Q

3

2015-Q

4

2016-Q

1

2016-Q

2

2016-Q

3

2016-Q

4

2017-Q

1

2017-Q

2

2017-Q

3

2017-Q

4

2018-Q

1

2018-Q

2

2018-Q

3

2018-Q

4

2019-Q

1

2019-Q

2

2019-Q

3

2019-Q

4

2020-Q

1

2020-Q

2

REVENUES SINCE LAUNCH (MEUR)

4

PRODUCT MIX (GROSS GAMING REVENUE) – Q2 2020

5

78%

C A S I N O C L A S S I C L I V E C A S I N O S P O R T

18% 4%

B U S I N E S S U P D A T E

6

MARKET UPDATE

7

- More normal market development since June

- Natural player shift from casino back to sports in June-July as sports events have picked up again

- Regulatory pressure expected to increase

- We expect an accelerated structural shift from land-based to online gaming, similar to other industries

- Operations so far conducted without any major disruptions

- Positive revenue impact in April-May on Group level. Market share gains from the land-based industry

- Spain and UK relieved their temporary covid-19 restrictions. Back to normal regulatory framework since June. Sweden instead imposed new temporary restrictions in July

- LeoVegas implemented additional proactive measures to strengthen responsible gaming

U P D A T E O U T L O O K

MARKET COMMENTS – NORDICS

8

Q 2 - 2 0 2 0

36.9MEUR NGR

Sweden- Stable development in Sweden. Negative

covid-19 impact relating to lack of sport events- Temporary restrictions since 2nd July. Will

deteriorate the channelisation even further and risks torpedoing the entire Swedish regulation

- Negative for consumer protection

Other Nordics- Somewhat soft development in Other Nordics- GoGoCasino launched in Finland in July

H I G H L I G H T S

-2%Growth Y-o-Y

34%

MARKET COMMENTS – REST OF EUROPE

9

Q 2 - 2 0 2 0

UK- Platform migration successfully concluded,

entire UK business now operates on the groups proprietary technical platform

Rest of Europe- Strong development in especially Germany and

Italy, likely reflecting market share gains from the land-based industry

- Normalised market development in June

H I G H L I G H T S

56.1MEUR NGR

+30%Growth Y-o-Y

51%

MARKET COMMENTS – REST OF WORLD (ROW)

1 0

Q 2 - 2 0 2 0

ROW- ROW markets continue to deliver solid growth- Improvement for Canada in Q2- Continued focus to scale up markets that were

launched in 2018-19

H I G H L I G H T S

16.5MEUR NGR

+35%Growth Y-o-Y

15%

BRANDS OF LEO AND LEOVENTURES

1 1

LiveCasino.com- Launched in additional English speaking countries

GoGoCasino- Launched in Finland in July with more markets to

follow

B R A N D S O F L E O

- All time high quarter by CasinoGrounds

- Increased ownership in pixel.bet from 51% to 85% after the quarter end. High expectations on E-sports betting long term

L E O V E N T U R E S

CURRENT TRADING – START OF Q3

Preliminary revenues

July 2020

30.7 MEUR an increase of

5%compared to July last year

12

B U S I N E S S K P I S

13

CUSTOMER BASE

R E T U R N I N G D E P O S I T I N GC U S T O M E R S

N E W D E P O S I T I N GC U S T O M E R S

• New Depositing Customers (NDCs) increased 30% Y-Y and increased 1% Q-Q to a new ATH

• Returning Depositing Customers (RDCs) increased 19% Y-Y and increased 9% Q-Q to a new ATH

• Total Depositing Customers (DC’s) increased 24% Y-Y and 5% Q-Q to a new ATH

• 34% Depositing Customer growth in July

• rapporteringsmetodik.

C O M M E N T S

14

195 329

-

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

200 000

Q3-17

Q4-17

Q1-18

Q2-18

Q3-18

Q4-18

Q1-19

Q2-19

Q3-19

Q4-19

Q1-20

Q2-20

239 124

-

25 000

50 000

75 000

100 000

125 000

150 000

175 000

200 000

225 000

250 000

Q3-17

Q4-17

Q1-18

Q2-18

Q3-18

Q4-18

Q1-19

Q2-19

Q3-19

Q4-19

Q1-20

Q2-20

D E P O S I T S ( E U R ) P E R D E P O S I T I N G C U S T O M E R

AVERAGE SPEND PER CUSTOMER

• Average deposit per Depositing Customer in Q2 decreased 1% Y-Y and increased 17% Q-Q

• Average NGR per Depositing Customer decreased 5% Y-Y and increased 20% Q-Q

• Long-term trend of lower value per player is expected to continue while geographical mix and game margins drives short term fluctuations in player value

C O M M E N T S

15

-

100

200

300

400

500

600

700

800

900

1 000

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20

Deposits per depositing customer

G A M E M A R G I N % A N D H O L D I N %

M A R G I N C A S I N O C L A S S I C M A R G I N S P O R T S B O O K

M A R G I N L I V E C A S I N O

3,00%

4,00%

5,00%

6,00%

7,00%

8,00%

9,00%

10,00%

11,00%

Q2-1 7 Q3-1 7 Q4-1 7 Q1-1 8 Q2-1 8 Q3-1 8 Q4-1 8 Q1-1 9 Q2-1 9 Q3-1 9 Q4-1 9 Q1-2 0 Q2-2 0

Sports book margin

3,30%

3,40%

3,50%

3,60%

3,70%

3,80%

3,90%

4,00%

Q2-1 7 Q3-1 7 Q4-1 7 Q1-1 8 Q2-1 8 Q3-1 8 Q4-1 8 Q1-1 9 Q2-1 9 Q3-1 9 Q4-1 9 Q1-2 0 Q2-2 0

Casino Classic margin

2,00%

2,20%

2,40%

2,60%

2,80%

3,00%

3,20%

3,40%

Q2-1 7 Q3-1 7 Q4-1 7 Q1-1 8 Q2-1 8 Q3-1 8 Q4-1 8 Q1-1 9 Q2-1 9 Q3-1 9 Q4-1 9 Q1-2 0 Q2-2 0

Live Casino margin

25,0%

27,0%

29,0%

31,0%

33,0%

35,0%

37,0%

3,40%

3,45%

3,50%

3,55%

3,60%

3,65%

3,70%

3,75%

3,80%

3,85%

3,90%

Q2-1 7 Q3-1 7 Q4-1 7 Q1-1 8 Q2-1 8 Q3-1 8 Q4-1 8 Q1-1 9 Q2-1 9 Q3-1 9 Q4-1 9 Q1-2 0 Q2-2 0

Hold

%

Gam

e mar

gin %

Game margin, % Hold, %

GAME MARGIN AND HOLD

• The game margin in Q2 decreased to 3.59% versus 3.76% in the previous quarter, which is below the historical average of around 3.70%

• The lower game margin primarily reflects a lower share of sports turnover

• Casino margin was above the historical average while sportsbook was in line with the average

• Hold in Q2 increased to 31% from 30% in Q1, which is in line with the long-term average level

C O M M E N T S

16

DEPOSITS AND NGR

• Deposits increased by 23% from the same period last year and 23% sequentially from Q1

• NGR increased by 18% from the previous year and 26% from Q1

• The NGR and deposit trends primarily reflect a steadily growing depositing customer base versus the prior year, while the average player value increased from Q1

N G R M E U RD E P O S I T S M E U R C O M M E N T S

17

355

-

50

100

150

200

250

300

350

400

Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20

Milli

ons

109

-

20

40

60

80

100

120

Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20

Milli

ons

M A R K E T I N G ( M E U R ) A N D C A C ( E U R )

-

5,0

10,0

15,0

20,0

25,0

30,0

35,0

-

50

100

150

200

250

300

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20

Mar

ketin

g spe

nd (M

EUR)

Custo

mer

Acqu

isitio

n Cos

t (CA

C) EU

R

Marketing spend MEUR CAC

CUSTOMER ACQUISITION COST

• Marketing spend increased to 32.7 MEUR, an increase from Q1 to second highest level ever

• Marketing costs share of revenue decreased to 29.6% compared to 35.0% in Q1, which reflects the higher revenues

• The Customer Acquisition Cost (CAC) decreased 14% Y-Y but increased 4% Q-Q, still at levels well below the historical average

• Current assessment is for marketing costs in Q3 to be in line with – or slightly higher than – the level during Q2. Investments partly linked to the launch of new brands and market establishments

C O M M E N T S

18

F I N A N C I A L S

19

E B I T D A ( A D J . ) M E U R

EBITDA OVER TIME

• Reported and adjusted EBITDA in Q2 was 23.0 MEUR, reflecting an EBITDA margin of 20.8%

• 53% adjusted EBITDA growth Y-Y despite a continued high marketing level and investments in expansion, product and technology, which reflects the operational leverage in the business model

• There were no adjustments for the period

C O M M E N T S

20

6,2 6,2

8,47,1

9,0

15,0

9,08,1

7,1

15,1

12,7

9,2 9,0

23,0

-

5,0

10,0

15,0

20,0

25,0

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20

9,0

23,0

21,3

3,42,9

1,5 1,3 1,1 0,5

EBITDA Q1-20 (adj.) Increase in revenues Increase in gaming tax Increased cos t of sales Increased market ing Decreased operationalexpenses

(incl. other income)

Increased personnel costs Increased capitaliseddevelopment costs

EBITDA Q2-20 (adj.)

EBITDA BUILD UP Q2’20 VS. Q1’20

• Gaming duties increased by 3.4 MEUR compared to Q1-20, relating to revenue growth in regulated jurisdictions• Higher cost of sales in absolute terms but slightly lower in relative terms, reflecting improved supplier terms and temporarily lower sportbetting costs• Marketing spend increased by 1.5 MEUR from Q1-20, reflecting high NDC intake at good ROI levels as well as higher revenue share costs• Personnel expenses increased slightly from Q1-20 due to increased number of employees• Decreased operational expenses primarily reflects high unrealized FX losses in Q1, temporarily reduced costs from no travelling, lower office costs

C O M M E N T S

Adj. EBITDA margin:10.0%

Adj. EBITDA margin:20.8%

21

EBITDA TO NET INCOME

Q 2 2 0 2 0 P & L F R O M E B I T D A T O N E T I N C O M E , M E U R

• Reported EBITDA of 23.0 MEUR, which is the same as Adjusted EBITDA as there were no adjustments for the period

• Adjusted EBIT for the period was 20.3 MEUR, when excluding amortisations relating to previous acquisitions, gains on sale of subsidiaries as well as restructuring costs

• Reported EBIT of 16.3 MEUR includes D&A of 4.1 EUR relating to previous acquisitions

• Adjusted Net income for the period was 19.0 MEUR

C O M M E N T S

22

23,0

20,319,0

2,70,5 0,9

Adjusted EBITDA D&A Adjusted EBIT Net financial items Tax Adjusted Net income

54,3 16,3

7,1

10,4 11,4

10,0 0,8 - 0,1 3,0 0,1

7,3 55,6

Cashbeginning of

period

EBIT Adjustmentsfor non-cash

items

Change inworkingcapital

Net incometaxes paid

Loanfinancing

Leaseliabilities

Acquisition ofsubsidiaries

Acquisition ofPP&E

Acquisition ofintangible

assets

Currencyeffects

Dividend Cash end ofperiod

CASH FLOW

C A S H F L O W M E U R Q 2 2 0 2 0

• Cash flow from operating activities before changes in working capital amounted to 23.3 MEUR, driven primarily by the underlying EBITDA result

• Changes in working capital resulted in a cash inflow of 10.4 MEUR for the period, offset by an income tax payment of 11.4 MEUR

• Semi-annual dividend pay-out of 7.3 MEUR, and loan amortisation of 10.0 MEUR

• Solid financial position with cash at the end of the quarter of 55.6 MEUR and 40.3 MEUR when excluding player balances, remaining debt of 60.0 MEUR

C O M M E N T S

1) Before changes in working capital

Cash flow from operating activities1

23.3 MEUR

23

S U M M A R Y

24

SUMMARY

- Q2 revenues of 110.7 MEUR (19% organic growth) and EBITDA of 23.0 MEUR (20.8% margin and growth of 53%)

- Covid-19 had a positive impact on the group but a negative effect on Swedish revenues

- LeoVegas is taking market share from the landbased casino industry

- UK brands and operations now runs on the groups proprietary platform

- LiveCasino.com and GoGoCasino launched in new markets

- July revenues of 30.7 MEUR, 5% growth

25

Q & A

26