13
Evolution Gaming Interim Report January-March 2020 23 April 2020 1 CEO, Martin Carlesund CFO, Jacob Kaplan
Evolution Gaming Interim Report January-March 2020
23 April 2020
1
CEO, Martin Carlesund
CFO, Jacob Kaplan
Highlights
In the quarter:• Revenue growth +45% to 115,1 MEUR (79,3)
• EBITDA increase +79% to 64,1 MEUR (35,9)
• EBITDA margin 55,7% (45,3)
• EBIT increase +89% to 57,1 MEUR (30,2)
2
• Continued high demand generates a positive effect on margin development.
• Adaptation of operations as a result of covid-19 to ensure the operation and safety of employees.
• Repurchase of 338,000 shares in order to improve the capital structure by reducing the capital, and thereby creating added shareholder value.
COVID-19
3
• High demand for our games
• Adjustments to operations in all studios
• Work-from-home where possible
• Multiple studios enable load sharing
Continued strong increase in activity across network
4
Bet spots
0
1 000 000 000
2 000 000 000
3 000 000 000
4 000 000 000
5 000 000 000
6 000 000 000
7 000 000 000
8 000 000 000
9 000 000 000
10 000 000 000
17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1
Be
t sp
ots
Bet spots
YoY growth+71%
Increase in staff
5
Full Time Equivalents (FTE)
2 426 2 5392 740
3 0853 243
3 600
3 970
4 319
4 6714 931
5 2735 554
5 865
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1
FT
E
FTE, end of period
YoY growth+26%
Geographic breakdown
6
Revenue per geographical region
Group (EUR millions)Jan-Mar
2019Apr-Jun
2019Jul-Sep
2019Oct-Dec
2019Jan-Mar
2020
Nordics 6,1 6,0 6,1 6,1 6,2
UK 12,4 12,7 12,8 12,0 9,9
Rest Of Europe 40,7 43,8 46,5 53,3 59,8
Asia 8 10,0 13,9 17,7 20,8
North America 4,6 4,7 6,1 6,6 7,1
Other 7,5 8,5 9,3 10,2 11,4
Total operating revenues 79,3 85,7 94,7 106,0 115,1
Share of regulated markets 46% 44% 42% 40% 38%
Revenues, regulated markets 36,6 37,5 40,2 42,4 43,7
7
New game releases
Q1 Q2
Continued expansion in North America
• Pennsylvania planned live 2020
• Michigan moving towards regulation 2020
8
Financial development
9
EUR million
39,7 42,345,7
50,7 51,6
59,364,3
70,2
79,385,7
94,7
106,0
115,1
17,0 19,2 21,8 22,6 22,026,2 28,0
31,635,9
42,748,5
55,8
64,1
42,8%45,4%
47,7%
44,6%42,6%
44,2% 43,5%45,0% 45,3%
49,8%51,2%
52,7%
55,7%
17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1
Revenue EBITDA EBITDA, %
P/L detail
10
Group Jan-Mar Jan-Mar Apr2019- Jan-Dec
(EUR thousands) 2020 2019 Mar 2020 2019
Total operating revenues 115 149 79 297 401 604 365 752
Personnel expenses -33 310 -29 035 -130 694 -126 419
Depreciation, amortisation and impairments -6 998 -5 729 -26 745 -25 476
Other operating expenses -17 716 -14 344 -59 757 -56 385
Total operating expenses -58 024 -49 108 -217 196 -208 280
Operating profit 57 125 30 189 184 408 157 472
Financial items -80 -45 -235 -200
Profit before tax 57 045 30 144 184 173 157 272
Tax on profit for the period -2 849 -1 568 -8 827 -7 546
Profit for the period 54 196 28 576 175 346 149 726
Average number of shares after dilution 183 384 005 183 394 010 183 718 173 183 387 341
Earnings per share after dilution (EUR) 0,30 0,16 0,95 0,82
Cash flow and financial resources
11
Note: Op. cash flow defined as EBITDA – Change in NWC – Investing activities
Capital expenditure Operating cash flow Balance sheet summaryEUR m
14%15%
13% 14%
11%
9% 9%8% 8%
0,000
2,000
4,000
6,000
8,000
10,000
12,000
18
Q1
18
Q2
18
Q3
18
Q4
19
Q1
19
Q2
19
Q3
19
Q4
20
Q1
MEU
R
TangiblesIntangibles% of revenue, rolling 12 month
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
5
10
15
20
25
30
35
40
45
50
18
Q1
18
Q2
18
Q3
18
Q4
19
Q1
19
Q2
19
Q3
19
Q4
20
Q1
MEU
R
Op. Cash flow Cash conversion
EUR million 2020-03-31 2018-12-31
Total non-current assets 109,6 62,1
Current assets 157,8 93,6
Cash and cash equivalents
204,9 85,0
Total current assets 362,7 178,6
Total assets 472,3 240,7
Total equity 330,0 162,3
Total long-term liabilities 19,0 5,6
Total current liabilities 123,3 72,8
Total equity and liabilities 472,3 240,7
Look ahead…
• Continue to focus on increasing gap to competitors and new fantastic products
• Continue to invest based on customer demand
• Continue to take market-shares and relentlessly continue to work hard with full energy
• Today’s environment is challenging but Evolution is committed to ensure business continuity, operational efficiency, shareholder value and the and well-being of all our employees.
12
Q&A
13
