Evolution Gaming Year-end report January – December 2017 15 th of February 2018 1 CEO, Martin Carlesund CFO, Jacob Kaplan
Evolution Gaming Year-end report January – December 2017
15th of February 2018
1
CEO, Martin Carlesund
CFO, Jacob Kaplan
Highlights
In the quarter:• Revenue growth +48% to 50,7 MEUR (34,2)
• EBITDA increase +74% to 22,6 MEUR (13,0)
• EBITDA-margin 44,6% (37,8%)
• EBIT increase +86% to 18,8 MEUR (10,1)
2
Full Year:• Revenue growth +54% to 178,4 MEUR (115,5)
• EBITDA increase +81% to 80,6 MEUR (44,6)
• EBITDA-margin 45,2% (38,6%)
• EBIT increase +92% to 66,9 MEUR (34,9)
• Continued high growth and margin• Expansion of tables and studios • Product development focus
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
15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4
Be
t sp
ots
Bet spots
YoY growth+66%
Increase in staff
4
Full Time Equivalents (FTE)
1 0601 130
1 2341 338
1 525
1 769
2 027
2 394 2 4262 539
2 740
3 085
0
500
1 000
1 500
2 000
2 500
3 000
3 500
15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4
FT
E
FTE, end of period
YoY: +29%QoQ: 13%
New studios in the works
Tbilisi
• Our hub for expansion coming 2-3 years
• Building on everything we’ve learned so far
5
Vancuover
• 1st studio in North America
• Regulatory studio
• Live February 1st
New products
6
RNG Table games
Salon Privée
LighteningRoulette
Financial development
7
15,618,1
19,822,8
24,827,1
29,2
34,3
39,742,3
45,7
50,7
6,2 7,7 7,8 9,310,3 10,6 10,8
13,0
17,019,2
21,8 22,6
39%42%
40%41% 42%
39%37% 38%
43%45%
48%45%
15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4
Revenues EBITDA EBITDA, %
EUR million
P/L detail
8
Group Oct-Dec Oct-Dec Jan-Dec Jan-Dec
(EUR thousands) 2017 2016 2017 2016
Revenues 50 662 34 245 178 222 115 046
Other revenues 55 77 163 415
Total operating revenues 50 718 34 322 178 385 115 461
Personnel expenses -20 038 -15 996 -72 122 -53 218
Depreciation, amortisation and impairments -3 793 -2 859 -13 754 -9 760
Other operating expenses -8 081 -5 360 -25 628 -17 619
Total operating expenses -31 911 -24 215 -111 504 -80 597
Operating profit 18 806 10 107 66 882 34 864
Financial items -37 -115 -217 -234
Profit before tax 18 769 9 992 66 664 34 630
Tax on profit for the period -735 -944 -4 535 -2 890
Profit for the period 18 034 9 048 62 129 31 740
Earnings per share after dilution (EUR) 0,50 0,25 1,71 0,88
Effective tax rate 3,9% 9,4% 6,8% 8,3%
Cash flow and financial resources
9
Note: Operating cash flow defined as EBITDA – Change in NWC – Capex
Capital expenditure Operating cash flow Balance sheet summaryEUR m
12,4%
11,1%
19,5%
18,4%
15,9%
16,9%17,4%
14,3%
10,0%9,9%
13,4%12,8%
0
2
4
6
8
10
15
Q1
15
Q2
15
Q3
15
Q4
16
Q1
16
Q2
16
Q3
16
Q4
17
Q1
17
Q2
17
Q3
17
Q4
MEU
R
IntangiblesTangibles (excl building)% of revenue
0%
20%
40%
60%
80%
100%
120%
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
15
Q1
15
Q2
15
Q3
15
Q4
16
Q1
16
Q2
16
Q3
16
Q4
17
Q1
17
Q2
17
Q3
17
Q4
MEU
R
Op. Cash flow Cash conversion
EUR million 2017-12-31 2016-12-31
Total non-current assets 48 540 39 865
Current assets 70 460 37 266
Cash and cash equivalents 49 272 26 188
Total current assets 119 732 63 454
Total assets 168 271 103 318
Total equity 109 881 63 896
Total long-term liabilities 7 259 8 170
Total current liabilities 51 132 31 251
Total equity and liabilities 168 271 103 318
Look ahead…
• Increased focus and delivery from our product development
• Continued as planned development of Tbilisi studio
• Continue to take market-shares and to increase gap to our competitors
• New Jersey studio planned for second half 2018
10
Q&A
11