UP YOUR GAMING July 2020 - BRAGG Gaming Group
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UP YOUR GAMING July 2020
DISCLAIMER
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: developments; inability to access sufficient capital from internal and external sources,
Certain information contained in this presentation constitutes forward-looking and/or inability to access sufficient capital on favorable terms; realization of growth
statements under applicable securities laws. Any statements that are contained in this estimates, income tax and regulatory matters; the ability of Bragg to implement its
presentation that are not statements of historical fact may be deemed to be forward- business strategies; competition; currency and interest rate fluctuations; the estimated
looking statements. Forward looking statements are often identified by terms such as size of the gaming market in the US and globally; and, other risks.
"may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative of
these terms and similar expressions. Forward-looking statements in this presentation Recipients are cautioned that the foregoing risks are not exhaustive. Readers are
include, but are not limited to, statements with respect to the growth of our business further cautioned not to place undue reliance on forward-looking statements as there
which may not be achieved or realized within the time frames stated or at all, the can be no assurance that the plans, intentions or expectations upon which they are
anticipated size and/or revenue associated with the gaming market in the US and placed will occur. Such information, although considered reasonable by management
globally. at the time of preparation, may prove to be incorrect and actual results may differ
materially from those anticipated.
Forward looking statements are based on certain assumptions regarding Bragg
Gaming Group Inc. ("Bragg"), including expected growth, results of operations, Forward-looking statements contained in this presentation are expressly qualified by
performance, industry trends and growth opportunities. While Bragg considers these this cautionary statement and reflect our expectations as of the date hereof, and thus
assumptions to be reasonable, based on information currently available, they may are subject to change thereafter. Bragg disclaims any intention or obligation to update
prove to be incorrect. Recipients are cautioned not to place undue reliance on forward- or revise any forward-looking statements, whether as a result of new information, future
looking statements contained herein. Forward-looking statements also necessarily events or otherwise, except as required by law. Factors that could cause anticipated
involve known and unknown risks, including, without limitation, risks associated with opportunities and actual results to differ materially include, but are not limited to,
general economic conditions; adverse industry events; future legislative and regulatory matters referred to above.
UP YO UR G AMING
2
TSX:BRAG O TC:BRG GF
1 ABOUT BRAGG
History
Investment Highlights
Global Market Opportunity
2 OPERATIONS
Flagship property: ORYX Gaming
AGENDA
ORYX Revenue Model
Financial Highlights
3 STRATEGIC PRIORITIES
Value Creation in 2019
Geographic Expansion & M&A Agenda
APPENDIX
4 Management Team and Financials
3
HISTORY OF BRAGG About Bragg
HISTORY
December 2018 January 2019 Jan-Dec 2019 2020 --->
Acquire ORYX & BKD with following Assemble new ORYX Invest in ORYX platforms & Focus on ORYX’s position as a leading B2B
conditions/ requirements: team to take the brand capabilities; Grow operator base gaming technology platform & content
to the next level and enter new geographies aggregator
• Failing elements of the BKD
business are exited, • Oryx experiences exceptional
• New board and growth in 1H-2019; up 48% from • ORYX experiences 44% revenue
including the AI business
executive team with growth in Q1 2020 and continued
• Restructured remaining H1-2018
strong background in • Signed record number of EBITDA growth
assets, including some
gaming and capital operators YTD and built strong • Signed 9 new clients in Q1 2020
internal business units
markets experience pipeline for 2H with an additional 20 in the pipeline
are introduced • Entered several new markets, • Continued geographic expansion
including US with customers in new geographies
• Rolled out ORYX Hub, new Data such as Columbia and Croatia
Analytics Platform, and new • Forecast 2020 revenue in the range
Customer Engagement platform, of EUR 35-38m, up 43% from 2019
all enhancing user experience • Aim to grow ORYX business
organically and through targeted
acquisitions and partnerships
UP YOUR GAMING
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TSX:BRAG OTC:BRGGFKEY INVESTMENT HIGHLIGHTS About Bragg
INVESTMENT HIGHLIGHTS
Operating in a high-growth market; global gaming revenue expected to reach £55bn by 2023
Total % of online gaming vs land-based gaming expected to increase due to COVID pandemic;
anticipate stronger growth throughout 2020 as more activities go virtual
Strong sequential revenue growth for 5 consecutive quarters
De-risked and diversified operator portfolio across several key territories including Europe, Latin America,
and the United States
Significant client growth in 2019 (46 new clients signed) and strong pipeline for 2020 (20 in advanced
discussions as of Q1 2020)
Strategic partnerships with notable content providers in several end-markets, including Seneca Gaming
Corporation and Kambi Group Plc
Unique, easily integrated platform capabilities vs incumbent platforms
Management team comprised of industry veterans
UP YOUR GAMING
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TSX:BRAG OTC:BRGGFGLOBAL MARKET OPPORTUNITY* About Bragg
GLOBAL MARKET
Global online gaming market generated ~£347bn in gross OPPORTUNITY
gaming revenues (GGR) in 2018, ~£40bn of which was
online Expected Yearly Online GGR Globally
• Global online gaming market comprises 11% of total
gambling industry (89% land-based) and has grown
at 10% 10-year CAGR; expected to reach 14% of total £55bn by 2023
gambling industry and grow at 7% CAGR to 2023
• EU members first-movers in terms of regulation and
comprises 54% of global online GGR with £5.6bn in
2018
• Wide spectrum of regulatory frameworks in place
• UK, Spain, Italy and Sweden all regulated
markets with many others underway including
Germany and the USA
• Increased mobile penetration expected to rise to over
50% by 2022, further supporting online gaming
growth
UP YOUR GAMING
* Source: H2 Gambling Capital
6
TSX:BRAG OTC:BRGGFU.S. MARKET OPPORTUNITY About Bragg
US MARKET OPPORTUNITY
Bragg deal with Seneca & Kambi represents first step into
lucrative US market
• US market on track to surpass UK and China Expected Yearly GGR in US
• Prior to Supreme Court overturning PASPA in 2018,
Gambling Compliance pegged US gambling a $2 billion
industry by 2023 $5.7bn by 2024
• Gaming is now legal in 19 states in the U.S.; legislation
pending in many other
• B2B providers (ORYX) have unique opportunity to provide
services in a rapid growth gold rush; ORYX has first-
mover advantage and plans to establish itself with key
content providers and casinos across the US
• Minimizing risks associated with B2C operations
Bragg to become preferred partner, providing
online casino services and unique player account
management along with Kambi’s sports betting
services to operators worldwide
Bragg and Kambi to provide exclusive sports
betting services and online casino services to
Seneca’s 3 NY casinos
UP YOUR GAMING
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TSX:BRAG OTC:BRGGF1 ABOUT BRAGG
History
Investment Highlights
Global Market Opportunity
2 OPERATIONS
Flagship property: ORYX Gaming
AGENDA
ORYX Revenue Model
Financial Highlights
3 STRATEGIC PRIORITIES
Value Creation in 2019
Geographic Expansion & M&A Agenda
APPENDIX
4 Management Team and Financials
8ABOUT ORYX GAMING Operations
ORYX
• Bragg’s flagship property and main revenue driver
• Omni-channel retail, online and mobile iGaming platform that aggregates gaming content
from top tier gaming content providers; also provides proprietary content
Suite of iGaming Products
• ORYX’s turnkey solution renowned for its rapid and seamless integration
• Fully compliant with major regulated jurisdictions, allowing operators to access over 8,000
world-class games through a single account
A full range of gaming content
portfolio that includes 8.000+
games by 80+ world renowned
revenue in bets placed operator
+40% growth (y/y) +£20m per day (avg) +200 brands
game providers
Fully managed Sportsbook with
Notable Clients and Content Partners comprehensive live and pre-
match betting offer
A diverse portfolio of insurance-
based lottery betting, high
frequency live lotto products and
number of games products.
UP YOUR GAMING
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TSX:BRAG OTC:BRGGFORYX GAMING: REVENUE MODEL Operations
ORYX Revenue Model
Revenue Model
• Oryx derives the majority of its income on a revenue share basis, earning Operational Flow Chart
a % of the gross gaming revenue (GGR) from operators using its
platform
• Oryx maintains its existing customer with a high level of revenue Customer
retention and continues to on-board new clients and diversify its
customer base.
Sports Online Bingo /
Lotto
Betting Casino Virtual Games
Apps run on Bragg’s
Revenue Diversification and Geographic Expansion software platform
Direct
• As of March 31, 2020: Payments
• 48% of revenue was derived from the Top 5 clients, down from
68% in Q1 2019 and 73% in December 2018 Technology Creator &
Management
• 30% of revenue was derived from customers with predominantly
German-facing operations, down from 46% in Q1 2019 Buys content and
• Signed 9 new customers in Q1 across various jurisdictions technology
including Europe and Latin America ; additional 20 in pipeline
Casino Operators /
Clients
UP YOUR GAMING
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TSX:BRAG OTC:BRGGFIMPRESSIVE REVENUE GROWTH Operations
• 41% revenue growth in FY 2019; Achieved positive EBTIDA for the first time
• Anticipate up to 43% Revenue Growth &~300% EBITDA growth in FY 2020 FINANCIAL HIGHLIGHTS
• Experienced strong revenue growth in Q1 2020 ; 44% y/y and 13% sequential
Revenue Growth Clean EBITDA** Growth
40 Revenue (EUR) 6 Gross Profit
35-38 5.5
35 (EUR)
5
30 26.6 $26.4M 4 $12.1M
Revenue (EUR)
25
EUR (M)
EUR (M)
19.2
20 3 ORYX
$35-8M
15
2
Revenue
10 1.2 (EUR)
CLEAN
5
1
EBITDA* (EUR) $19.2
0 0
FY 2018* FY 2019 2020e FY 2019 2020e
Fiscal Year
$1.4M Fiscal Year
*ORYX Gaming revenue for FY2018 is unaudited, and prorated as if ORYX was owned by Bragg for 2018.
Source: Public information
** Clean EBITDA is EBITDA after writing back: Stock-based compensation, Transaction and acquisition costs, Impairment of
intangible assets and goodwill, (Gain) / Loss on remeasurement of contingent and deferred consideration
UP YOUR GAMING Note: The Group changed its reporting currency to EUR, as opposed to CAD, effective 1 Jan 2020. EUR is the main revenue
generator and cost base of the Group and thus a more representative indicator of its performance and current standing.
11
TSX:BRAG OTC:BRGGF1 ABOUT BRAGG
History
Investment Highlights
Global Market Opportunity
2 OPERATIONS
Flagship property: ORYX Gaming
AGENDA
ORYX Revenue Model
Financial Highlights
3 STRATEGIC PRIORITIES
Value Creation in 2019
Geographic Expansion & M&A Agenda
APPENDIX
4 Management Team and Financials
12VALUE CREATION IN 2019-2020 About Bragg
2019 IN REVIEW
Entered several notable long-term content partnerships
• Kambi (US market entry), Stakelogic, Red Tiger, Betsson, Casumo, LeoVegas, among others
Experienced exponential client growth
• 166 total clients; gained 46 in 2019; full pipeline of signed clients for the whole of 2020
Entered and expanded presence in regulated markets
• ORYX regulated in 12 countries
Continually improved ORYX content platform, increasing customer engagement and retention
• Introduced ORYX Hub, Data Analytics Platform, and new Player Engagement Platform
Engaged with prominent PR/IR firms to increase media presence and investor awareness
• Management increased focus on highlighting investment case to US investment community
UP YOUR GAMING
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TSX:BRAG OTC:BRGGFGEOGRAPHIC EXPANSION and M&A AGENDA Strategic Priorities
Capitalize on large opportunity in the US market via organic growth and targeted GEO EXPANSION, M&A
acquisitions and strategic partnerships
M&A Strategy
• Focused M&A strategy targeting:
Current Markets • Increased geographic presence
• Complementary opportunities to
Target Market • ORYX platform regulated in 12 countries
supplement or enhance Bragg technology
• Largest market is Germany Growth of German-
• US gambling market moving toward legalization, facing operators ~30%, excluding German • Competitors to ORYX where significant
with gaming now legal in 18 states, and regulation operators growth is ~85%; exemplifying success of synergies could be recognized
underway to legalize more states diversification efforts
• Overall industry expected to grow as payment issues • Increased clarity of German regulations is a
and restrictions on marketing decrease positive for Bragg ; anticipate growth in this region
• Targeted M&A and strategic partnerships • Aim to increase European reach through strategic
partnerships with accredited suppliers and
operators and through complementary
acquisitions
UP YOUR GAMING
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TSX:BRAG OTC:BRGGF1 ABOUT BRAGG
History
Investment Highlights
Global Market Opportunity
2 OPERATIONS
Flagship property: ORYX Gaming
AGENDA
ORYX Revenue Model
Financial Highlights
3 STRATEGIC PRIORITIES
Value Creation in 2019
Upcoming milestones
Geographic Expansion & M&A Agenda
APPENDIX
4 Management Team and Financials
15STRONG & EXPERIENCED MANAGEMENT TEAM About Bragg
MANAGEMENT TEAM
Dominic Mansour Ronen Kannor Yaniv Spielberg Matevz Mazij
CEO of Bragg Gaming CFO of Bragg Gaming CSO of Bragg Gaming MD of ORYX
Group Group Group
Dominic has an extensive background Ronen has over 18 years of Yaniv is a trained lawyer and co- Slovenia based Matevz, established
of nearly 20 years in the gaming and experience in variety of financial founder of a number of tech- ORYX in 2010, after 8 years as
lottery industry. Most recently, Dominic management roles within the real focused businesses. In 2018, Yaniv international business
could be seen at the poker tables of estate and online gaming sectors. was a part of the team that development, sales, marketing and
Rational Group’s Full Tilt where he was Most recently, Ronen served as Chief completed the RTO to establish IT professional with different
Managing Director and is credited with Financial Officer at Stride Gaming Plc, Bragg Gaming Group. Prior to online and land-based gaming
innovatively moving the business into an online gaming operator. During his Bragg, Yaniv was a founding companies, building business
recreational poker and launching tenure, he led the reorganization and member of a private equity fund relationships throughout Asia,
casino products. the initial public offering (IPO) of the that focused on acquiring and Europe, Central America and North
company onto the London Stock operating global online gaming America.
He has a deep understanding of the exchange (AIM). He was also involved companies, Legacy Eight Group.
lottery sector having been CEO at the in numerous M&A transactions and Matevz has led ORYX from start up
UK based Health Lottery and also built was pivotal in the eventual sale of the Yaniv obtained his Juris Doctor to global leader in turnkey gaming
up plenty of air miles, working closely business to Rank PLC. degree from Osgoode Hall Law solutions. With clients ranging
with government lotteries around the School and previously earned both from JackpotJoy to GVC, ORYX is
world at GTECH where he was VP of Ronen holds an MBA in accounting a Bachelor of Science and Master now a recognized solution
Product. He built bingos.com from and finance and is a Certified Public of Science from York University. provider to the gaming industry.
scratch, sold it to NetPlay TV plc where Accountant (The Institute of Certified
he became CEO and a PLC board Public Accountants, Israel).
member.
UP YOUR GAMING
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TSX:BRAG OTC:BRGGFOperations
FINANCIALS
FINANCIAL HIGHLIGHTS
Summary of Quarterly Results Revenue (EUR) Liquidity
Gross & Profit
Capital Resources
(EUR)
As at As at
EUR 000 2020$26.4M
Three Months Ended March 31,
2019 $12.1M
EUR 000
March 31
2020
December 31
2019
Revenue (EUR)
Revenue 8,784 6,084 Cash and cash equivalents 2,487 682
Operating loss (5,080) (837) Accounts receivable
ORYX 7,087 6,180
$35-8M
EBITDA
Adjusted EBITDA
(4,296)
760
(350)
395
Prepaid expenses and other assets
Current liabilities excluding consideration
Revenue 326
(12,753)
333
(9,820)
(EUR)
CLEAN
As at
March 31
As at Net working capital
EBITDA
December 31 * (EUR)
Current consideration $19.2 (2,853)
(9,179)
(2,625)
(9,482)
2020 2019
Net current liabilities from continuing operations (12,032) (12,107)
Total assets
Total liabilities
45,723
44,729 $1.4M
43,880
37,264
UP YOUR GAMING
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TSX:BRAG OTC:BRGGFTHANK YOU
FOR MORE INFORMATION ON
BRAGG GAMING GROUP
Contact info@bragg.games
UP YOUR GAMING
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