Year-end report, January – December 2020

Martin Carlesund, Group CEO

Jacob Kaplan, CFO
February 10th 2021
Highlights – full year 2020

• Revenue growth +53% to 561,1 MEUR (365,8)

• EBITDA increase +82% to 332,2 MEUR (182,9)

• EBITDA margin 59,2% (50,0%)

• Profit for the period +90% to 284,6 MEUR (149,7)

• Borad of Directors propose dividend of 0,68 EUR/share

 2020 results includes non-recurring acquisition and restructuring
costs of 19,4 MEUR
The acquisition of NetEnt was completed December 1st 2020, included in the P&L per
this date

2
Highlights – fourth quarter

Q4 2020 - reported: Q4 2020 – adjusted for non-recurring costs:

• Revenue growth +68% to 177.7 MEUR (106.0)
• EBITDA increase +72% to 96.4 MEUR (55.8)
• EBITDA margin 54.2% (52.7)
• EBIT increase +74% to 85.0 MEUR (48.7)
• Revenue growth in Evolution Live +51%
• Revenue growth in Slots (Q420 vs Q419) +5%*
* Q420 slots revenue vs NetEnt group reported figures in Q4 2019
• EBITDA increase +107% to 115,6 MEUR (55.8)
• EBITDA margin 65,1%

• 2020 includes non-recurring acquisition and

restructuring costs of 19,4 MEUR
• Acquisition of NetEnt completed 1st of December,
included in the P&L from December 2020.

 Increasing demand and good leverage from investments made in 2020 generate high growth and positive
margin development in Live Casino
 Slots development in line with Q3. Expecting revenue synergies for 2021 larger than 30 MEUR.
3
The acquisition of NetEnt
Creating a world leading supplier of online
casino
The acquisition of NetEnt moves us closer to our long term goal by:
• Expanding our geographical footprint while strengthening our position in
each market
• Opening for product releases under four strong brands, with an efficient
backend structure – thus optimizing costs and customer integration
• Enabling share of knowhow and best practice to promote product
development both within each vertical and mash-ups
Acquisition of NetEnt
• Acquisition of completed on 1st of December
• Restructuring and integration of NetEnt into the Evolution group started on the first day
• Evolution is today 1 company with 4 brands and 1 management.
• 1 Product development team
• 1 Commercial organisation
• 1 Engineering team
• 1 Administrative platform
• 19,4 MEUR of restructuring cost included in Q420
• 40 MEUR of annual cost savings - full effect from Q3 2021
• Slots development in line with Q3. Expected revenue synergies for 2021 of 30+ MEUR.

6
Development in Live Casino
Launch of Live Craps rounds off a strong
New game releases
line-up of new Live Games 2020

8
Continued strong increase in activity
across the network
Bet spots YoY growth
18 000 000 000 +116%

16 000 000 000

14 000 000 000

12 000 000 000

10 000 000 000

8 000 000 000

6 000 000 000

4 000 000 000

2 000 000 000

0
18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4
9
Increased studio capacity to meet global demand

• Lithuania, Kaunas, Live

• US, Pennsylvania, Live
• US, Michigan, under construction
10
Development – Total Group
Increase in staff

Headcount end of period

12 000 YoY growth
21%

10 000
818

8 000

6 000

8 240 8 688
4 000 7 828
7 342 7 395
6 497 6 892 6 764
5 847
4 856 5 257
2 000 4 496

0
18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4
12
Geographic breakdown

Revenue per Region

Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec
Group (EUR millions) 2019 2020 2020 2020 2020*
Nordics 6.1 6.2 6.7 5.8 11.1
UK 12.0 9.9 10.6 9.5 13.9
Rest Of Europe 53.3 59.8 62.4 65.6 81.1
Asia 17.7 20.8 28.2 34.8 41.9
North America 6.6 7.1 8.5 9.2 12.6
Other 10.2 11.4 12.1 15.1 17.1
Total operating revenues 106.0 115.1 128.5 140.0 177.7

Share of regulated markets 40% 38% 33% 32% 36%

Revenues, regulated markets 42.4 43.7 42.8 45.2 64.3
*NetEnt included Dec 2020
 Financial development
64,8% 65,1%
63,2%

177,7
55,7%
52,7%
51,2%
49,8%

45,0% 45,3% 140,0

44,2% 43,5%
42,6% 128,3
115,1 115,6
106,0
EUR million 94,7
90,7
85,7
79,3 81,1
70,2
64,3 64,1
59,3 55,8
51,6 48,5
42,7
35,9
28,0 31,6
26,2
22,0

18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q12 20Q3 20Q4*
* Adjusted for 19,4 MEUR non-recurring
acquisition and restructuring cost
Revenue EBITDA EBITDA, % 14
P/L detail
Oct-Dec Oct-Dec Jan-Dec Jan-Dec
(EUR thousands) 2020 2019 2020 2019
Revenues 177 221 105 988 560 673 365 687
Other revenues 437 10 461 65
Total operating revenues 177 658 105 998 561 134 365 752

Personnel expenses -38 616 -33 263 -133 752 -126 419
Depreciation, amortisation and impairments -11 382 -7 156 -32 513 -25 476
Other operating expenses -42 823 -16 905 -95 169 -56 385
Total operating expenses -92 821 -57 324 -261 434 -208 280

Operating profit 84 837 48 674 299 700 157 472

Financial items -818 -40 -1 018 -200

Profit before tax 84 019 48 634 298 682 157 272

Tax on profit for the period -3 419 -1 788 -14 060 -7 546
Profit for the period 80 600 46 846 284 622 149 726

Average number of shares before dilution 191 632 153 181 622 725 183 927 915 180 737 305
Earnings per share before dilution (EUR) 0,42 0,26 1,55 0,83
Average number of shares after dilution 197 388 433 183 384 005 189 021 346 183 387 341
Earnings per share after dilution (EUR) 0,41 0,26 1,51 0,82
P/L detail

Reported Adjusted
Oct-Dec Oct-Dec Oct-Dec
From NetEnt Deal
(EUR million) 2020 business Amortization Non-recurring 2020 2019
Total operating revenues 177,7 17,8 159,8 106,0

Personnel expenses -38,6 -3,4 -35,2 -33,3

Depreciation, amortisation and impairments -11,4 -0,9 -2,9 -7,6 -7,2
Other operating expenses -42,8 -5,2 -19,4 -18,2 -16,9
Total operating expenses -92,8 -9,6 -2,9 -19,4 -61,0 -57,3

Operating profit 84,8 8,3 98,8 48,7

P/L detail
Oct-Dec Oct-Dec Jan-Dec Jan-Dec
(EUR thousands) 2020 2019 2020 2019
Revenues 177 221 105 988 560 673 365 687
Other revenues 437 10 461 65
Total operating revenues 177 658 105 998 561 134 365 752

Personnel expenses -38 616 -33 263 -133 752 -126 419
Depreciation, amortisation and impairments -11 382 -7 156 -32 513 -25 476
Other operating expenses -42 823 -16 905 -95 169 -56 385
Total operating expenses -92 821 -57 324 -261 434 -208 280

Operating profit 84 837 48 674 299 700 157 472

Financial items -818 -40 -1 018 -200

Profit before tax 84 019 48 634 298 682 157 272

Tax on profit for the period -3 419 -1 788 -14 060 -7 546
Profit for the period 80 600 46 846 284 622 149 726

Average number of shares after dilution 197 388 433 183 384 005 189 021 346 183 387 341
Earnings per share after dilution (EUR) 0,41 0,26 1,51 0,82
 Cash flow and financial resources

Capital expenditure Operating cash flow Balance sheet summary

EUR m

100 90%
31/12/ 31/12/
12,0 1.6%
15% 90 (EUR m) 2020 2019
80%
14%
13%14% 1.4% Total non-current assets 2 669,9 105,0
10,0 80
70%
Current assets 277,6 146,6
1.2% 70
11% 60% Cash and cash equivalents 221,7 182,5
8,0
1.0% 60
9% 9% 50% Total current assets 499,2 329,2
8% 8%

MEUR
8% 50
MEUR

6,0 7% 0.8% TOTAL ASSETS 3 169,1 434,2

7% 40%
40
0.6% 30%
4,0 30 Total equity 2 726,2 280,9
0.4% 20%
20 Total non-current liabilities 74,7 15,6
2,0
0.2% 10 10%
Total current liabilities 368,2 137,7

0,0 0.0% 0 0% TOTAL EQUITY AND LIABILITIES 3 169,1 434,2

18Q1
18Q2
18Q3
18Q4
19Q1
19Q2
19Q3
19Q4
20Q1
20Q2
20Q3
20Q4
18Q1
18Q2
18Q3
18Q4
19Q1
19Q2
19Q3
19Q4
20Q1
20Q2
20Q3
20Q4

Tangibles Op. Cash flow Cash conversion

Intangibles
% of revenue, rolling 12 month Note:
18
Op. cash flow defined as EBITDA – Change in NWC – Investing activities
Outlook for 2021

 We entered 2021 with a good momentum in terms of both players and

total activity in the network

 Focus will be on leveraging the combined knowhow and experience to

deliver new unique player experiences both within each vertical and
mash-ups

 Continuous attention to cost efficiencies and restructure of cost base

 Expectation FY 2021 is to sustain margin level from 2020 Q4

19
Q&A
ir@evolution.com

20