RESULTS FOR THE YEAR ENDED
31 DECEMBER 2017
AGENDA
Itai Frieberger | Strategic Review
Aviad Kobrine | Financial Review
Itai Pazner | Operational Review
Itai Frieberger | Summary
Q&A
2
ITAI FRIEBERGER, CEO | STRATEGIC REVIEW
2017 – RESILIENCE THROUGH DIVERSIFICATION
AVIAD KOBRINE, CFO | FINANCIAL REVIEW
2017 HIGHLIGHTS
1 As defined in 2017 yearly financial review
2 Constant currency as detailed in the 2017 yearly financial review
Results represent eight consecutive years of revenue increases and a long term CAGR of 17% since 2003
Revenue up 4% to $542m, up 26% in regulated markets (ex. UK)
Casino and Sport continue to drive growth
Sport revenue increase 45% - the fifth consecutive year of more than 40% growth rate
Spain and Italy revenues increase 34% each - a reflection of enhanced product offering and effective marketing campaigns
Diversification strategy continues as Europe (ex. UK) represents 51% of Group revenue
Marketing efficiencies progression with marketing ratio down 300bp to 30%
Adjusted EBITDA1
up 12% to $101m, up 19% at constant currency2
Adjusted EBITDA margin at 18.6% and 19.5% at constant currency
Adjusted Profit before tax up 12% to $78m
Adjusted Basic EPS at 20.1c up 15%
Net cash from operating activities up 40% representing 95% of Adjusted EBITDA
Final Dividend of 5.9c per share (2016: 5.1c), 9.9c for the year (2016: 8.9c) plus a one-off 5.6c (2016: 10.5c), a total of 15.5c (2016:
19.4c) for the year
6
PROFIT AND LOSS ACCOUNT1
1 Totals in this presentation may not sum due to rounding2 Excluding depreciation of $5.7m (2016: $8.4m) and amortisation of $13.6m (2016: $10.6m)3 Excluding share benefit charges of $8.5m (2016: $6.7m) 4 As defined in 2017 yearly financial review
7
$m 2017 2016% Change
at Constant
Currency
% Change
Reported
Revenue 541.8 520.8 5% 4%
Operating expenses2 138.8 136.1
Gaming duties 75.2 60.5
Research and development expenses 35.4 34.3
Selling and marketing expenses 162.5 170.2
% of Revenues 30.0% 32.7%
Administrative expenses3
29.2 29.5
Adjusted EBITDA3
100.7 90.2 19% 12%
% of Revenues 18.6% 17.3%
Depreciation and Amortisation 19.3 19.0
Finance and other 3.1 1.3
Adjusted Profit Before Tax 78.3 69.9 12%
Share benefit charges and other 8.7 6.8
Exceptional charges4
50.8 3.9
Profit Before Tax 18.8 59.2
Taxation 6.2 7.7
Profit After Tax 12.6 51.5
Adjusted Basic EPS4 20.1 ¢ 17.4 ¢ 15%
GROUP REVENUE Group revenue up 7% at constant currency and adjusted for market withdrawals: up 4% reported to $542m (2016: $521m)
17% yearly CAGR since 2003
Growth drivers remain Sport, Casino and regulated markets
12% half yearly CAGR since H1 2009 Revenue 2003 – 2017
40
140
240
340
440
540
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
5975
123
157
217
263 247 262
331
376 401
455 462
521
542
14 FX & Withdrawal Markets
Impact
$m
8
GROUP REVENUE
Quarterly Revenues ($m)
Q1 ($m) Q2 ($m)
Revenue increased in each quarter of 2017 compared to 2016
9
80
90
100
110
120
130
140
150
Q1 16 Q1 17
130
136
80
90
100
110
120
130
Q2 16 Q2 17
132
134
80
90
100
110
120
130
Q3 16 Q3 17
127
133
80
90
100
110
120
130
Q4 16 Q4 17
132
138
Q3 ($m) Q4 ($m)
GEOGRAPHICAL SEGMENTATION Europe (ex. UK) at 51% of revenues driven by Spain – already 12% of revenue
Regulated and taxed markets comprise 70% of revenues
UK share is a combination of diversification strategy, currency and tighter regulatory constraints
Regulated (ex. UK) up 26% and up 370bp in share of revenues
Geographic Segmentation 2010 - 2017
2016
2017
10
51% 53% 52% 50%45% 41% 39% 41%
30%
49% 47% 48% 50% 55% 59% 61% 59%70%
15%
25%
35%
45%
55%
65%
75%
85%
95%
2010 2011 2012 2013 2014 2015 2016 2017 2017Regulated& Taxed
Non-Regulated Regulated
43%
35%
9%9% 4%
UK Europe
(ex UK & Spain)
Spain Americas ROW
37%
39%
12%9% 3%
UK Europe
(ex UK & Spain)
Spain Americas ROW
REVENUE B2C Revenue up 6% to $487m (2016: $460m), reflecting 8% increase adjusted for constant currency and market withdrawals
CAGR of 12.5% since 2010
Increased active days per player across products drive revenue growth and retention efficiencies
Revenue B2C 2010 –2017
$m
11
150
200
250
300
350
400
450
500
2010 2011 2012 2013 2014 2015 2016 2017
213
275
321
344
385
399
460
487
12 FX & Withdrawal
Markets Impact
REVENUE CASINO B2C Revenue up 4% to $294m (2016: $282m)
B2C Casino revenue up 17% ex. UK
Casino is the most dominant product across our territories with both direct acquisition and cross-sell appeal
Revenue Casino B2C 2010 –2017
$m
12
100
120
140
160
180
200
220
240
260
280
300
2010 2011 2012 2013 2014 2015 2016 2017
118
154
175
198
224
234
282
294
4 FX & Withdrawal
Markets Impact
REVENUE SPORT B2C Revenue up 45% to $75m (2016: $52m)
Success is fueled by increased penetration across regulated markets and expanded offering
Players respond well to the ever expanding offering and marketing suite
Revenue Sport B2C 2010 – 2017
$m
13
0
10
20
30
40
50
60
70
2010 2011 2012 2013 2014 2015 2016 2017
6 7 7 9
20
35
52
75
REVENUE POKER B2C Stable Poker revenue performance adjusted for market withdrawals
Poker resilience is maintained through ‘casual’ product focus and regulated territories, the latest one in Italy in early 2018
Poker players yield and active days over the platform increased more than 20%
Revenue Poker B2C 2017 vs. 2016
$m
14
0
10
20
30
40
50
60
70
80
90
2016 2017
84 78
6
Withdrawal Markets Impact
REVENUE BINGO B2C Reported revenue down 6% to $39m (2016: $42m), highly impacted by currency, down 0.7% at constant currency
Depositing player yield increased 16% at constant currency
Continued bonus optimisation and bingo room management support player yield
Revenue Bingo B2C 2017 vs. 2016
$m
15
20
25
30
35
40
2016 2017
42 39
2
FX Effect
MARKETING COST Marketing efficiencies and cost control drive marketing ratio down to 30.0% (2016: 32.7%)
10% increased marketing in continental European regulated markets
Marketing Cost 2017 vs. 2016
Marketing Costs Marketing Costs % of Revenue$m %
16
15.0%
25.0%
35.0%
2016 2017
32.7%30.0%
70
90
110
130
150
170
2016 2017
170 163
0%
20%
40%
60%
80%
2015 2016 2017
27.6% 26.1% 25.6%
30.1% 32.7% 30.0%
6.2% 5.7%5.4%
8.0% 6.6%6.5%
10.8% 11.6% 13.9% Gaming duties
R&D
Admin. Expenses
S&M expenses
Operating expenses
COST STRUCTURE Continued operational gearing
Return to lower marketing levels – a result of more regulated markets in the post investment stage
Balancing increased gaming duties with cost control
Cost as a % of Total Revenue
* Operational margins are per adjusted EBITDA as defined in 2015 - 2017 financial review
17
82.6% 82.7% 81.4%
12%
13%
14%
15%
16%
17%
18%
19%
2016 2017
17.3%
18.6%
FX Effect
40
50
60
70
80
90
100
110
2016 2017
90
101
FX Effect
ADJUSTED EBITDA AND MARGIN Improved Adjusted EBITDA and margins
Adjusted EBITDA up 12% to $101m (2016: $90m), up 19% at constant currency to $107m despite US$15 million additional duties
Adjusted EBITDA margin at 18.6% (2016: 17.3%) an increase of 127bp. representing 19.5% at constant currency
Adjusted EBITDA 2017 vs. 2016
Adjusted EBITDA Adjusted EBITDA margin$m%
107 19.5%
18
CASH Healthy cash generation from operating activities
Cash generated from operating activities up 40%, representing 95% of Adjusted EBITDA
Cash net of customer liabilities up 11%
Cash Position 2017 vs. 2016
Net Cash from Operating Activities Net Cash from Operating Activity % of Adj EBITDA$m %
19
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
2016 2017
68.1
95.5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2017
75%95%
DIVIDEND Dividend up 11% to 9.9c, plus a special dividend of 5.6c, total for the year at 15.5c
High dividend return continues
Six consecutive years with special dividend
Dividend Per Share ($c) 2012 –2017
$c
20
7.0 7.0 8.0 8.08.9 9.9
2.07.0
7.0 7.510.5 5.6
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
2012 2013 2014 2015 2016 2017
Base Special
BALANCE SHEET
21
$m 31-Dec-17 31-Dec-16
Non-current assets
Goodwill and other Intangible assets 159.8 158.6
Property, plant and equipment 9.0 9.1
Other non-current assets 2.3 1.8
Investments 1.3 1.5
172.4 171.0
Current assets
Cash and cash equivalents 179.6 172.6
Trade and other receivables 44.2 37.0
Total Assets 396.2 380.6
Equity
Share capital and share premium 6.8 6.5
Retained earnings, reserves and treasury shares 106.4 157.1
Total equity attributable to equity holders 113.2 163.6
Liabilities
Current liabilities
Trade and other payables 160.2 139.3
Provisions 47.0 0.0
Income tax payable 4.1 0.1
Customer deposits 71.7 75.7
Non-current liabilities
Deffered tax liabilities0.0 1.9
Total equity and liabilities 396.2 380.6
CASH FLOW
22
$m Period Ended 31 December 2017 2016
Cash flows from operating activities
Profit before income tax 18.8 59.2
Share benefit charges 8.5 6.7
Depreciation and amortisation 19.3 19.0
Change in current assets and liabilities 53.5 (7.3)
Share of associates loss 0.2 0.1
Interest Income (0.6) (0.4)
Cash generated from operations 99.7 77.3
Income tax paid (4.2) (9.2)
Net cash generated from operating activities 95.5 68.1
Acquisition of property, plant and equipment (5.6) (6.3)
Internally generated intangible assets (11.2) (10.6)
Acquisition of intangible assets (3.6) (1.3)
Interest received 0.6 0.4
Net cash used in Investing Activities (19.8) (17.8)
Issue of shares net of purchase (0.4) 1.1
Dividends paid (70.5) (56.6)
Net increase/decrease in cash and cash equivalents 4.8 (5.2)
Cash and cash equivalents - beginning of the period 172.6 178.6
Effects of currency translation 2.2 (0.8)
Cash and cash equivalents - end of the period 179.6 172.6
ITAI PAZNER, COO | OPERATIONAL REVIEW
EUROPEAN REGULATED MARKETS (ex. UK) Bet volume accelerated up 33%
Italy and Spain leading growth
Bet Trend per Product (EUR)
* Markets included – Spain, Italy, Denmark, Romania, Ireland Sport – each as of Regulation regime start date
24
0%
200%
400%
600%
800%
1000%
1200%
1400%
1600%
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
2012 2013 2014 2015 2016 2017
Bet
s
Casino Poker Sport
DEPOSIT TREND SPAIN & ITALY Spain and Italy lead regulated growth with expanded product offering, efficient campaigns and increasing brand awareness
Deposit Trend 2014-2017
Spain Italy
25
0%
1000%
2000%
3000%
4000%
5000%
6000%
7000%
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
2014 2015 2016 2017
0%
100%
200%
300%
400%
500%
600%
700%
800%
900%
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
2014 2015 2016 2017
COMPLIANCE
SPORT BET Healthy blend of categories, enhanced by a constantly increasing in-play offering
Growth from last year’s strong comparative which included the Euro 2016 peak
Well positioned for the World Cup
Sport Bet Trend
27
0%
100%
200%
300%
400%
500%
600%
700%
800%
2013 2014 2015 2016 2017
1.0
2.1
3.9
6.0
7.6
X
X
X
X
X
28
888 POKER 2006 2017 2020+
.COM
.COM
.IT .FR
.ES
.PT
.NJ.NV .DE
.EU
.COM .USA
0%
20%
40%
60%
80%
100%
120%
140%
1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1
2014 2015 2016 2017 2018
1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1
2014 2015 2016 2017 2018
BINGO PLATFORM Bonus per player continues to decrease as new UK tax on bonuses became effective as of October 2017
Stable revenue per player
Bingo Platform Optimisations (GBP)
Bonus Per Player* Net Cash Per Player*
30
* Jan 2014 as base = 100
* Funded players
.
32
LOOKING AHEAD
ITAI FRIEBERGER, CEO | SUMMARY
CONSISTENT PROGRESSHarnessing Challenges into Sustainable Growth
34
0%
200%
400%
600%
800%
1000%
1200%
1400%
1600%
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
2012 2013 2014 2015 2016 2,017B
ets
Casino Poker Sport
Regulated Continental European Growth
Revenue Records EBITDA Strength
$c
High Dividend
SUMMARY Resilient and healthy underlying performance in the face of challenges including withdrawal from several markets and regulatory
headwinds
Strong progress in Casino
Strong growth in Sport
Regulated Continental Europe driving growth
Technological advantage
Continue organic growth plus bolt-on M&A
Well placed to participate in strategic M&A
Cost control and optimisation continue
US presents an opportunity
Confident of future outlook
35
Q&A