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Henrik TjärnströmCEO
Q4 201813 February 2019
© Kindred Group plc 2019
• Highlights• Financial results• Business overview• Summary
OutlineOutline
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© Kindred Group plc 2019
Q4 2018 Key Report Highlights
© Kindred Group plc 2019
GWR from mobile
GBP 185.8m(+11%)
Gross winnings revenue
GBP 250.1m(+5%)
EBITDA
GBP 58.5m(-21%)
Active customers
1,568,574 (+18%)
Earnings per share
GBP 0.173(-22%)
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4
FY 2018 Key Report Highlights
© Kindred Group plc 2019
GWR from mobile
GBP 662.7m(+23%)
Gross winnings revenue
GBP 907.6m(+21%)
EBITDA
GBP 202.8m(+12%)
Active customers
3,114,886(+9%)
Earnings per share
GBP 0.580(+12%)
Kindred’s share of the European online market
0
5
10
15
20
25
30
35
40
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e 2020e
EURbn
Market share
Source: H2GC Dec 2018
CAGR 2011-2018 Online 12.2% | Kindred 25.6%
2.3%
5.2%
© Kindred Group plc 2019
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Financial results
© Kindred Group plc 2019
© Kindred Group plc 2019
Strong levels of activity and all-time highin active customers resulted in all-timehigh for Gross winnings revenue”
Q4 2018
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Gross winnings revenue
© Kindred Group plc 2019
76.5 76.1 122.4 153.2 207.877.1 80.5126.6
166.6
219.0
80.4 86.1
142.3
193.6
230.7
78.0 111.4
152.8
238.0
250.1
2012 2013 2014 2015 2016 2017 2018
Q1
Q2
Q3
Q4
GBPm
226.7268.0
312.0354.1
544.1
751.4
907.6
Geographic growth– Key Report Highlights Q4 2018 vs Q4 2017
© Kindred Group plc 2019
Nordics
Western Europe
-5%
+13%
GWR as reported in GBP
-3%
+13%
Organic GWR in constant currency
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10
Gross winnings revenue from mobile
© Kindred Group plc 2019
020406080
100120140160180200
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Q2 Q3 Q4 Q12016
Q2 Q3 Q4 Q12017
Q2 Q3 Q4 Q12018
Q2 Q3 Q4
GBPm +11%
Q4 2018 P&L FX impact v Q4 2017
© Kindred Group plc 2019
5.4
SEK 11.63711.043 -5.4%NOK 10.86510.837 -0.3%EUR 1.1271.127 0.0%DKK 8.4138.389 -0.3%
Q4 2018Q4 2017Avg rate Movement
GBPmGross winnings revenue -2.0Cost of sales / Opex 0.3FX gain on operating items 0.6EBITDA FX impact Q4 2018 -1.1FX loss on loan repayment -0.7Other items below EBITDA 0.1Profit before tax impact Q4 2018 -1.7
AUD 1.7941.727 -3.9%
Weighted average movement in FX rates: approx. -1%
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EBITDA – Excl 2014 Kambi one-off item
© Kindred Group plc 2019
21.3 14.4 27.6 29.4 47.314.0 19.021.1 30.5
41.5
21.7 17.4
33.146.6
55.5
18.4 26.2
38.9
73.8
58.5
2012 2013 2014 2015 2016 2017 2018
GBPm
Q1
Q2
Q3
Q4
52.563.4
75.5 77.0
120.7
180.3
202.8
A scalable business model…
© Kindred Group plc 2019
0%
5%
10%
15%
20%
25%
30%
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Q2 Q3 Q4 Q12016
Q2 Q3 Q4 Q12017
Q2 Q3 Q4 Q12018
Q2 Q3 Q4
Betting duties % of GWR (trailing 12m)
Underlying EBITDA margin % (trailing 12m)
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…showing our ability to absorb betting duties
© Kindred Group plc 2019
GBPm
0
10
20
30
40
50
60
70
80
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Betting duties Underlying EBITDA
2013 2014 2015 2016 2017 2018
Other Costs analysisExcl. Non-recurring items
© Kindred Group plc 2019
Share of GWR (as reported) 8% 8%8% 8%9%
GBPm2014
FY2015
FY2016
FY2017
FY2018
FY2018
Q4
Reported Other Costs 47.9 43.1 69.4 109.1 122.4 31.4
Depreciation & Amortisation -16.8 -13.0 -23.8 -42.6 -46.8 -11.5
FX loss/gain on Opex -1.8 -0.7 -0.6 -1.5 -1.2 0.6
Other Costs post D&A and FX 29.3 29.4 45.0 65.0 74.4 20.5
9%
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16
0.044 0.087 0.0720.1310.059
0.059 0.090
0.1120.057
0.0910.131
0.163
0.084
0.129
0.223
0.173
0.000.050.100.150.200.250.300.350.400.450.500.550.60
2012 2013 2014 2015 2016 2017 2018
Q3
Q4
EPS development – Excl 2014 one-off items
Q1
Q2
GBP
0.244
0.366
© Kindred Group plc 2019
0.5160.580
© Kindred Group plc 2019
IFRS 16, “Leases” – new standard from 1 January 2019 replaces IAS 17
2019 effects for Kindred
• Operating leases are impacted.• A lease asset and a lease liability are
recognised. Depreciation and interest are recognised instead of a rent cost.
• Limited P&L impact, neutral on cash flow.Income Statement (approx. amounts) GBPm
Adjusted EBITDA +10.3Depreciation and amortisation -10.2Finance costs -1.2 Profit before tax -1.1
Cash Flow Statement (approx. amounts) GBPm
Operating cash flow +11.3Investing cash flow -1.2Financing cash flow -10.1Net cash impact 0.0
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• Strong cash flow generated from operations
• Working capital impacted by movements in customers balance, prepayments and marketing & tax accruals
• Additional capex for long term investments in technology and new offices
© Kindred Group plc 2019
2018 Free Cash Flow
169.2
150.1
5.00.8
11.04.0
Free Cash Flow2017
Cash generatedfrom operations
Income taxes CapitalExpenditures
Items affectingcomparability
Free Cash Flow2018
GBPm
GBP 0.496 (0.551) per share/SDR equivalent to SEK 5.92
75%of FCF
• The Board has reviewed the projected cash requirements for 2019
• Proposing for this year to increase the dividend above 50 per cent of free cash flow to GBP 112.5 (125.6) m
• This is in line with the dividend policy to distribute surplus cash
• Paid out in 2 instalments in May and November 2019
Proposed cash dividend
© Kindred Group plc 2019
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Business overview
© Kindred Group plc 2019
0
200
400
600
800
1,000
1,200
1,400
1,600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Active customers
© Kindred Group plc 2019
Thousands
2011 2012 2013 2014 2015 2016 2017 2018
ATHATH
21
22
Sports betting gross marginCombined
© Kindred Group plc 2019
0%1%2%3%4%5%6%7%8%9%
10%11%12%
Before free bets After free bets
2011 2012 2013 2014 2015 2016 2017Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 YRQ2 Q3 Q4 Q1
2018Q2 Q3 Q4 YR
Product & geographic balance Gross winnings revenue over time
© Kindred Group plc 2019
By product, % By geography, %
Pre-game betting
Poker
Casino &Games
Other
Live betting
Nordics
WesternEurope
CES
Other
22 23 21 2130 23 26 22 28
23 20 23 2321
23 22 2622
2 2 2 22
2 2 2 2
49 51 51 5145 50 47 48 46
4 4 3 3 2 2 3 2 2
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
44 45 41 40 35 36 34 34 32
8 77 6
7 7 7 8 7
46 46 50 52 55 55 56 56 59
2 2 2 2 3 2 3 2 2
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42016 20162017 20172018 2018
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© Kindred Group plc 2019
US updateUS update
Strategic partnership withMohegan Sun Pocono in Pennsylvania
Live by end of 2019
Live in
New Jersey
Early March 2019
Netherlands update
• Voting in the Senate on 19 February 2019
• Based on the proposal from July 2016
• Secondary legislation published and consulted on
• Market opening in Q3 2020 at the earliest
© Kindred Group plc 2019
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• 5-year licence granted• Mandatory deposit limit• A national self-exclusion system• New marketing channels
‒ sponsorships, Google & Facebook• Only one bonus offer per customer
‒ short term impact on bonus cost now tailing off
• Good intake (+166%) and activity (+97%)• Swish payment method
Swedish market from 1 Jan 2019Swedish market from 1 Jan 2019
© Kindred Group plc 2019
© Kindred Group plc 2019
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© Kindred Group plc 2019
Summary Q4 2018
GWR SB margin after FB EBITDA
EPS Activecustomers
GWR from mobile
+6%in constant currencies
9.4% -21%
-22% +18% +11%
Contact
Investor RelationsInga Lundberg
+44 788 799 6116
ir@kindredgroup.com
Calendar
© Kindred Group plc 2019
25 October 2019Q3 will be published at 7.30 CET
24 April 2019Q1 will be published at 7.30 CET
24 July 2019Q2 will be published at 7.30 CET
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© Kindred Group plc 2019
© Kindred Group plc 2019
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