UP YOUR GAMING November 2019 - Bragg Gaming Group
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UP YOUR GAMING November 2019
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 YOUR GAMING
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TSX:BRAG OTC:BRGGF
1 ABOUT BRAGG
History
Management Team
Group Structure
Market Opportunity
2 OPERATIONS
Flagship property: ORYX Gaming
AGENDA
Strategic Review of GiveMeSport and
GiveMeBet
Financial Highlights
Competitive Position
3 STRATEGIC PRIORITIES
Accelerating ORYX growth
Geographic Expansion & M&A Agenda
3
HISTORY OF BRAGG About Bragg
HISTORY
December 2018 January 2019 Jan-August 2019 August 2019
Acquire ORYX & BKD with Assemble new team to take Restructure and grow the Strategic Review of well-positioned GMS
following conditions/ the brand to the next level: GIVEMESPORT media business business ; Focus on ORYX’s position as a
requirements: with 26m Facebook users leading B2B gaming
technology platform & content aggregator
• Failing elements of the • Monetize the GMS audience • Oryx experiences exceptional growth in
• New board and
BKD business are exited, through traditional media 1H-2019; up 48% from H1-2018
executive team with
including the AI revenue streams (advertising) • Signed record number of operators YTD
strong background in
business • Increase reach of GMS on all and built strong pipeline for Q4
gaming and capital
• Restructured remaining platforms • Aim to grow business organically and
markets experience are
assets, including some through targeted acquisitions and
introduced
internal business units partnerships
UP YOUR GAMING
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TSX:BRAG OTC:BRGGF
STRONG & EXPERIENCED MANAGEMENT TEAM About Bragg
MANAGEMENT TEAM
Dominic Mansour Steven Prowse Matevz Mazij Rick Waterlow
CEO of Bragg Gaming CFO of Bragg Gaming MD of ORYX MD of GIVEMESPORT
Group Group
Dominic has an extensive background of Steve is an industry veteran with over 10 Slovenia based Matevz, established ORYX Rick brings over thirty years experience in
nearly 20 years in the gaming and lottery years’ experience in the betting and in 2010, after 8 years as the media industry, including his most
industry. Most recently, Dominic could be gaming sector. He served as Group international business development, sales, recent role as International President at
seen at the poker tables of Rational Finance Director for PartyGaming plc (later marketing and IT professional with Vice Media Group, where he led thirty-five
Group’s Full Tilt where he was Managing bwin.party), a gaming business listed on different online and land-based gaming global offices, as well as successfully
Director and is credited with innovatively the London Stock Exchange, and was companies, building business relationships launching new ventures in India, Indonesia
moving the business into recreational instrumental in M&A, including the throughout Asia, Europe, Central America and across Europe. Previous roles at Vice
poker and launching casino products. acquisition of Foxy Bingo and the £2.1bn and North America. include COO and European CFO.
merger with bwin in 2011.
He has a deep understanding of the Matevz has led ORYX from start up to Prior to Vice Media, Rick held the roles of
lottery sector having been CEO at the UK Steve qualified with Deloitte and has also global leader in turnkey gaming solutions. CFO and MD at Time Out Group, where he
based Health Lottery and also built up fourteen years experience in financial With clients ranging from JackpotJoy to launched the magazine in New York and
plenty of air miles, working closely with services. GVC, ORYX is now a recognized solution Chicago and led the transition from print
government lotteries around the world at provider to the gaming industry. to digital.
GTECH where he was VP of Product. He
built bingos.com from scratch, sold it to Rick is a chartered accountant and
NetPlay TV plc where he became CEO and qualified with Ernst and Young in their
a PLC board member. London office.
UP YOUR GAMING
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TSX:BRAG OTC:BRGGF
About Bragg
GROUP STRUCTURE
GROUP STRUCTURE
Robust technology platform Dominant sport media property
B2B gaming technology platform 26m Facebook sports fans
and content aggregator
Flagship Property and Main Currently under Strategic
Revenue Driver Review, including possible sale
UP YOUR GAMING
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TSX:BRAG OTC:BRGGF
GLOBAL MARKET OPPORTUNITY* About Bragg
MARKET OPPORTUNITY
Global online gaming market generated ~£347bn in gross
gaming revenues (GGR) in 2018, ~£40bn of which was
online Expected Yearly Online GGR Globally
£55bn by 2023
• 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
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
• Increased mobile penetration expected to rise to over
50% by 2022, further supporting online gaming
growth
UP YOUR GAMING
* Source: H2 Gambling Capital
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TSX:BRAG OTC:BRGGF
US MARKET - FIRST SUCCESS About Bragg
MARKET OPPORTUNITY
Bragg deal with Seneca & Kambi represents first step into US
market; U.S. market on track to surpass the UK and China
• Prior to Supreme Court overturning PASPA in 2018,
Expected Yearly GGR in US
$5.7bn by 2024
Gambling Compliance pegged US gambling a $2 billion
industry, in terms of gross gaming revenue, by 2023
• Gaming is now legal in 18 states in the U.S.; legislation
pending in 24 more
• B2B providers (ORYX) will have a unique opportunity to
provide services in what will become a rapid growth gold
rush, while minimizing the 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
Management Team
Group Structure
Market Opportunity
2 OPERATIONS
Flagship property: ORYX Gaming
AGENDA
Strategic Review of GiveMeSport and
GiveMeBet
Financial Highlights
Competitive Position
3 STRATEGIC PRIORITIES
Accelerating ORYX growth
Geographic Expansion & M&A Agenda
9ORYX GAMING – LEADING B2B GAMING TECHNOLOGY Operations
PLATFORM AND CONTENT AGGREGATOR ORYX
• Omni-channel retail, online and mobile iGaming platform that aggregates gaming
content from top tier gaming content providers; also provides proprietary content
• 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
• Recently launched ORYX Hub; new platform that is one-stop-shop for quality casino
content, sportsbook, and lottery products
• Partnerships with established players: Stakelogic, Red Tiger, Betsson, Casumo
Cross product & omni channel Unique & localized content Turnkey solution
Omni-channel and cross product Offers casino operators unique, Experienced team manages all IT
platform enables management of proprietary and custom content, requirements, conversion, retention,
entire product suite using one created by top development customer journey, marketing
shared account and one wallet for studios, implemented through a communications and backoffice
any operation platform that seamlessly fits any processes for a low risk, seamless
system through a single integration integration
UP YOUR GAMING
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TSX:BRAG OTC:BRGGFORYX GAMING: SUCCESS TO DATE Operations
ORYX
• Bragg’s flagship property and main revenue driver
• 73 total clients; growth expected to accelerate throughout Q4 2019 and into 2020
• Launched ORYX Hub in H1-2019, an enhanced aggregator platform offering a one-
stop-shop for quality casino content, sportsbook, and lottery products
• Fully customizable; one-time seamless integration process
Revenue Operators Launched
Games Available through
Single Account
YTD 2019: CAD $28M 32
8,000+ Revenue Y/Y
Operators in Q4-2019
Pipeline
increased
37% 14
Strategic Partnerships
UP YOUR GAMING
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TSX:BRAG OTC:BRGGFBKD to Bragg Transformation Operations
Financial Highlights
Financial 2019e 2018
Highlights
3x revenue growth from old Revenue Gross Profit Revenue Gross Profit
BKD business in 2018 to new
Bragg business in 2019
$39.4M $17.7M $12.2M $6.1M
EBITDA Net Loss EBITDA Net Loss
$1.5M $10.4M $-3.3M $35.6M
UP YOUR GAMING Note: ORYX Gaming revenue for FY2018 is unaudited. Note that ORYX's full year results cover the period January – December.
Source: Public information/ Edison 12
TSX:BRAG OTC:BRGGFCOMPETITIVE COMPARABLES Operations
Implied value of Bragg based on sector multiples is $71M to $198M Competitive Position
Sectors EV/Revenue
Online Gaming Operations 2.6
Online Casinos 2.5
Gaming Operations 2.7
Casinos 3.0 These values exclude
Average 2.7
GiveMeSport, discontinued
Direct Peer: Kambi 6.0
operations proceeds
Oryx Acquisition Multiple by Bragg ($11.25 M) 0.38
(Revenue of $29.2 M; Earnings of $2.81 M)
Implied Bragg Value Based on Sector Multiples $71.68 M
Implied Bragg Share Price $0.92
Implied Bragg Value Based on Kambi Multiples $175.2 M
Implied Bragg Share Price $2.55
UP YOUR GAMING
Source: FRC Research Corp/ Edison 13
TSX:BRAG OTC:BRGGF1 ABOUT BRAGG
History
Management Team
Group Structure
Market Opportunity: Global and US
2 OPERATIONS
Flagship property: ORYX Gaming
AGENDA
Strategic Review of GiveMeSport and
GiveMeBet
Financial Highlights
Competitive Position
3 STRATEGIC PRIORITIES
Accelerating ORYX growth
Geographic Expansion & M&A Agenda
14Strategic Priorities
ACCELERATE ORYX GROWTH Projected ORYX Revenue in FY 2022*
ORYX GROWTH
Become a world leader in the B2B gaming sector by $60.2M
dedicating 100% of Bragg resources to platform
enhancements, geographic expansion and partnership
opportunities
Increased Operator Adoption
• Launched 32 new operators in the first 9 months
of 2019, a record, and signed 14 new contracts
to be integrated into ORYX Hub in Q4/Q1 2020
• ORYX now live with 73 content aggregator
clients and 6 full service PAM clients
Platform Enhancements
• Recommendation Engine expected in Q4 2019;
able to analyze user experience and provide
suggested games and content
*Source: Bragg Gaming and Edison Investment Research Estimates
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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
Current Markets • Focused M&A strategy targeting:
• Increased geographic presence
• ORYX platform licensed in 12 countries • Complementary opportunities to
Target Market • Largest market is Germany supplement or enhance Bragg technology
• Growth of German-facing operators ~30%, • Competitors to ORYX where significant
• US gambling market moving toward legalization, excluding German operators growth is ~85%; synergies could be recognized
with gaming now legal in 18 states, and regulation exemplifying success of diversification efforts
underway to legalize 24 more • Aim to increase European reach through strategic
• Overall industry expected to grow as payment issues partnerships with accredited suppliers and
and restrictions on marketing decrease operators and through complementary
• Targeted M&A and strategic partnerships acquisitions
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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TSX:BRAG OTC:BRGGFORYX 2019 Growth Operations
Financial Highlights
Financial 3Q 2019 YTD 2019
Highlights Revenue Gross Profit
Gross Profit Revenue Gross Profit
37% YTD revenue growth vs
first 9mos 2018
$10m $4.3m
$17.6M $28m $12.6m
13% sequential revenue
growth in Q3
EBITDA Net Loss
Net Loss EBITDA Net Loss
$0.2m $0.2m
$11.3M $0.6m $7.6m
UP YOUR GAMING
ORYX Gaming revenue for FY2018 is unaudited. Note that ORYX's full year results cover the period January – December.
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TSX:BRAG OTC:BRGGFGIVEMESPORT: THE LARGEST SPORTS Operations
PUBLISHER ON FACEBOOK GIVEMESPORT
• Sport media outlet sharing exclusive player and manager interviews and providing
fans with up-to-date features, match previews and match reviews
• Share breaking domestic and European sports news, results, fixtures and stats, as
well as photos and videos on trending sports topics
Unique FB Users Reached Instagram Followers
GMS Fans on Facebook
In H1-2019:
232M increased
53%
26M FB Video Interactions
Unique Monthly Users
(across all platforms)
increased
294% 93M
Strategic Review of GMS Assets
• Dedicated time and resources restructuring GMS and recently re-launched web
platform; user statistics show increased adoption and penetration
• Management and Board determined GMS is well-positioned for a strategic review and
potential sale, allowing Bragg to dedicate all resources to ORYX, focusing on B2B
UP YOUR GAMING
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