Evolution Gaming Interim report January – September 2018

24 October 2018

1

CEO, Martin Carlesund

CFO, Jacob Kaplan

Highlights

In the quarter:• Revenue growth +41% to 64,3 MEUR (45,7)

• EBITDA increase +28% to 28,0 MEUR (21,8)

• EBITDA margin 43,5% (47,7%)

• EBIT increase +27% to 23,2 MEUR (18,2)

2

• Higher than expected growth in number of tables• Launch of new studio in New Jersey• Expansion in Malta during 2019

Continued strong increase in activity across network

3

Bet spots

0

500 000 000

1 000 000 000

1 500 000 000

2 000 000 000

2 500 000 000

3 000 000 000

3 500 000 000

4 000 000 000

4 500 000 000

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

Be

t sp

ots

Bet spots

YoY growth+66%

Increase in staff

4

Full Time Equivalents (FTE)

1 060 1 1301 234

1 3381 525

1 769

2 027

2 394 2 4262 539

2 740

3 0853 243

3 600

3 970

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

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

FT

E

FTE, end of period

YoY growth+45%

New studios

Tbilisi

• Will be second largest studio at the end of 2018

• Our hub for expansion coming 2-3 years

• Good development since launch

5

Malta

• Need for expansion

• New studio likely 2019

• Demand for local language tables

New Jersey

• Live August 15th

• 10 tables, full suite of games

• 5+ operators live before year-end

Geographic breakdown

6

Based on GGR 18Q3

Nordics; 9%

UK; 14%

Rest of Europe; 49%

Rest of World; 28%

Product leadership remains key

7

Lightning Roulette

• Product Innovation of the Year at G2E Awards

• Exclusive to Evolution’s network

• One of the market’s most popular games

Product pipeline

• 2 product launches planned for Q4

Financial development

8

EUR million

15,618,1 19,8

22,824,8

27,129,2

34,3

39,742,3

45,7

50,7 51,6

59,3

64,3

6,2 7,7 7,8 9,3 10,3 10,6 10,813,0

17,019,2

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

40%

43%

39%41% 42%

39%37% 38%

43%45%

48%

45%43%

44% 44%

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

Revenue EBITDA EBITDA, %

P/L detail

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Group Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct 2017- Jan-Dec

(EUR thousands) 2018 2017 2018 2017 Sep 2018 2017

Revenues 64 335 45 664 175 117 127 560 225 779 178 222

Other revenues 11 26 75 107 131 163

Total operating revenues 64 346 45 690 175 192 127 668 225 910 178 385

Personnel expenses -25 615 -18 109 -70 710 -52 083 -90 749 -72 122

Depreciation, amortisation and impairments -4 767 -3 577 -13 363 -9 962 -17 155 -13 754

Other operating expenses -10 739 -5 779 -28 369 -17 547 -36 450 -25 628

Total operating expenses -41 121 -27 465 -112 442 -79 592 -144 353 -111 504

Operating profit 23 225 18 226 62 750 48 075 81 556 66 882

Financial items -42 -48 -128 -180 -165 -217

Profit before tax 23 183 18 177 62 622 47 895 81 391 66 664

Tax on profit for the period -1 941 -1 401 -4 697 -3 800 -5 432 -4 535

Profit for the period 21 242 16 777 57 925 44 096 75 959 62 129

Earnings per share after dilution (EUR) 0,58 0,46 1,59 1,21 2,09 1,71

Effective tax rate 8,4% 7,7% 7,5% 7,9% 6,7% 6,8%

Cash flow and financial resources

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Note: Operating cash flow defined as EBITDA – Change in NWC – Capex

Capital expenditure Operating cash flow Balance sheet summaryEUR m

16%18% 17%

16%

14%

12%12% 12%

14%15%

13%

0

2

4

6

8

10

12

16

Q1

16

Q2

16

Q3

16

Q4

17

Q1

17

Q2

17

Q3

17

Q4

18

Q1

18

Q2

18

Q3

MEU

R

Tangibles (excl building)Intangibles% of revenue, rolling 12 month

0%

10%

20%

30%

40%

50%

60%

70%

0,0

5,0

10,0

15,0

20,0

25,0

30,0

16

Q1

16

Q2

16

Q3

16

Q4

17

Q1

17

Q2

17

Q3

17

Q4

18

Q1

18

Q2

18

Q3

MEU

R

Op. Cash flow Cash conversion

EUR million 2018-09-30 2017-09-30 2017-12-31

Total non-current assets 62 055 44 696 48 540

Current assets 64 136 58 560 70 460

Cash and cash equivalents

63 548 38 798 49 272

Total current assets 127 684 97 358 119 732

Total assets 189 739 142 053 168 271

Total equity 136 584 91 862 109 881

Total long-term liabilities 6 570 6 864 7 259

Total current liabilities 46 585 43 327 51 132

Total equity and liabilities 189 739 142 053 168 271

Look ahead…

• Continued good demand for tables and environments; increasing demand for local language services

• Need for further expansion in Malta

• Investment levels 2019 on par with 2018

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

11

Q&A

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