Henrik Tjärnström CEO - Kindred Group...2013 FY 2014 FY 2015 FY 2016 FY 2017 Q2 Reported Other Costs52.3 47.9 43.1 69.4 24.1 Depreciation & Amortisation -18.9 -16.8 -13.0 -23.8 -7.4

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Henrik TjärnströmCEOQ2 2017

26 July 2017

© Kindred Group plc 2017

• Financial results Q2• Business overview• Summary Q2 2017

OutlineOutline

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2

© Kindred Group plc 2017 3

Financial results


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“

Q2 2017

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Strong organic growth in both Gross winnings revenue and EBITDA for the second quarter”

Q2 2017 Key Report Highlights


Underlying EBITDA

GBP 33.4m(+52%)

Gross winnings revenue

GBP 166.6m(+32%)

Sports betting

turnover

GBP 1.2bn(+28%)

Earnings per share

GBP 0.090(+53%)

Active customers

1,171,166(+3%)

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4

249.0

156.6153.6

Gross winnings revenue


76.5 76.1122.4 153.2

77.1 80.5

126.6

166.680.4 86.1

142.3

78.0111.4

152.8

2012 2013 2014 2015 2016 2017

Q1

Q2

Q3

Q4

GBPm

226.7268.0

312.0354.1

544.1

319.8

Gross winnings revenue from mobile


GBPm

0

20

40

60

80

100

120

140

Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4 Q12016

Q2 Q3 Q4 Q12017

Q2

+52%

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Q2 2017 P&L FX impact v Q2 2016


SEK 11.26111.797 4.5%NOK 10.88811.847 8.1%EUR 1.1631.272 8.6%DKK 8.6479.460 8.6%

Q2 2017Q2 2016Avg rate Movement

GBPmGWR increase 12.1CoS / Opex increase -7.6FX loss on operating items -0.4EBITDA FX impact Q2 2017 4.1FX loss on loan repayment -0.0FX loss on other items below EBITDA -0.1Profit before tax impact 4.0

AUD 1.7051.927 11.5%

Weighted average movement in FX rates: 7.3%

Geographic balance– Key Report Highlights Q2 2017


Nordics

Western Europe

+26% +17%

+41% +31%

GWR as reported in GBP

GWR in constant currency

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Other Costs analysisExcl. Non-recurring items


Share of GWR (as reported) 8%12% 8% 9.8%9%

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GBPm2013

FY2014

FY2015

FY2016

FY2017

Q2

Reported Other Costs 52.3 47.9 43.1 69.4 24.1

Depreciation & Amortisation -18.9 -16.8 -13.0 -23.8 -7.4

FX loss/gain on Opex -0.6 -1.8 -0.7 -0.6 -0.4

Other Costs post D&A and FX 32.8 29.3 29.4 45.0 16.3

59.9

48.7

33.435.3

EBITDA – Excl 2014 Kambi one-off item


21.3 14.427.6 29.4

14.0 19.0

21.130.521.7 17.4

33.118.4 26.2

38.9

2012 2013 2014 2015 2016 2017

GBPm

Q1

Q2

Q3

Q452.5

63.4

75.5 77.0

120.7

7

0.146

0.103

0.0440.087 0.072

0.059

0.059 0.0900.057

0.0910.084

0.129

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

2012 2013 2014 2015 2016 2017

Q3

Q4

EPS development – Excl 2014 one-off items

Q1

Q2

GBP

0.244

0.366


0.161

Business overview


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0100200300400500600700800900

1,0001,1001,2001,300

Q12011

Q2 Q3 Q4 Q12012

Q2 Q3 Q4 Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4 Q12016

Q2 Q3 Q4 Q12017

Q2

Active customers


Thousands

2011 2012 2013 2014 2015 2016 2017

Sports betting gross marginCombined


0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%Before free bets After free bets

2011 2012 2013 2014 2015 2016 2017

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Product & geographic balance Gross winnings revenue over time


By product, % By geography, %

Pre-game betting

Poker

Casino &Games

Other

Live bettingNordics

WesternEurope

CES

Other

20 23 24 21 22 24 22 23 21

23 23 22 23 23 23 23 20 23

3 2 2 3 2 22 2 2

50 49 48 50 51 48 49 51 51

4 3 4 3 2 3 4 4 3

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

45 47 43 44 42 45 44 45 41

8 89 10 9 9 8 7

7

43 42 45 44 47 44 46 46 50

4 3 3 2 2 2 2 2 2

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22015 20152016 20162017 2017

UK online market

RevenuesGBP 4.5bn


CasinoGBP 2.6bn

SportsbettingGBP 1.6bn

Active customers 22.87m

* Source: UK Gambling Commission (2016 numbers)* Source: UK Gambling Commission (2016 numbers)

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32Red strategy and positioning

Focus onre-regulated

markets

Sport and racing marketing and sponsorship

UsingMicrogaming

platform

ROI drivenmarketingcampaigns

UK beingthe key market

Primarily casino product

Sportsbookoffered by Kambi

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Expected sources of synergies

Pre-migration

• Plc and Board costs

• Overlap in functions

• Office costs

Post-migration

• Revenue synergies

• Betting duties and regulatory audits

• Product and marketing contracts

• IT costs

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• All condition precedents have now been fulfilled, incl the UKGC approval

• 32Red delisted from AIM on 7 July 2017

• Kindred received 100% of 32Red shares

Current/next steps:

• Integration of 32Red into Kindred Group

• Migration to the group platform‒ Target date for migration: Q2 2018

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Update of the process and next steps


• Kindred is fully consolidating 32Red from 6 June 2017

• 32Red contributed GBP 4.7m in GWR and GBP 1.2m in underlying EBITDA since completion

• Acquired intangible assets (brand, customers database and technology) and goodwill are recognised in Kindred consolidated balance sheet

• Impact of amortisation of acquired intangible assets: approx. GBP 6m per year over the coming 3 yrs

• Total estimated transaction related costs: GBP 4.6m.GBP 0.6m have already been recognised in Q1 & GBP 2.6m in Q2. The rest will be reported in finance costs Q3 2017-Q4 2019.


Accounting impact

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• Biggest team in the Championship with great history

• Will support the partnership with unique content and enhanced odds

• Key sponsorship in the UK market

Part of a stronger sponsorship investment that includes


Unibet Principle Partner for Aston Villa

32Red Glasgow Rangers

32Red Leeds United

Unibet Essex, Surrey & Warwickshire Cricket

Unibet Masters of Darts

Unibet Champions League of Darts

Unibet European Championship

Unibet World Grand Prix

Betting partner of Investec Derby

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Summary Q2 2017• ATH GWR in SB & Casino&Games

• GWR +32%

• GWR +22% in constant currency

• EBITDA +45%

• Underlying EBITDA +52%

• Underlying EBITDA +34% in constant currency

• Acquisition of 32 Red finalised

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Q&AQ&A


Documents

Henrik Tjärnström CEO - Kindred Group...2013 FY 2014 FY 2015 FY 2016 FY 2017 Q2 Reported Other Costs52.3 47.9 43.1 69.4 24.1 Depreciation & Amortisation -18.9 -16.8 -13.0 -23.8 -7.4