2013 results

13 March 2014
Norbert Teufelberger
Chief Executive Officer
2013 the numbers
Revenue
652.4m (19%)
Clean EBITDA
108.0m (35%)

3
Shift from volume to value
Regulatory, competitive / macro
pressures (Greece, German taxes)
Migration losses

Lower revenue; increased gaming tax
in Germany and Belgium
Marketing /other savings of 100m
Start-up costs in New Jersey
Final dividend
1.80p +5%
Challenging year
Healthy balance sheet
Confident about outlook
Continuing operating profit
51.9m n/a
Reduced amortisation
Absence of retroactive taxes
Successful VAT case in Austria
2013 operational developments
4
Move to Agile

Technology



Volume to value
Product
developments
US launch Sponsorships Mobile/touch
2013 volume to value
5
Progress to-date
Stopped player acquisition/
registration in 18 countries
53% of revenue from regulated
and/or taxed markets
Austria, Belgium, Denmark,
France, Germany (sports), Italy,
Spain, UK, US
97m of cost savings vs 2012,
substantially over 70m target
Further 20m of administration
cost savings targeted for 2014
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
0
50
100
150
200
250
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13
m
Total revenue
Other
Nationally regulated/taxed
Percentage nationally regulated and/or taxed
2013 product developments
6
Sports
Increased trading capability and
automation
Product review and
implementation plan
Casino
Launch in New Jersey
Improved 3
rd
party integration
IGT, Amaya, WMS, live dealer
Poker
New product on dotcom
Launch in New Jersey
Enabled RMG for Zynga in UK
Bingo
Phase I of new product in place
partybingo and bwin


-
25,000
50,000
75,000
100,000
125,000
150,000
2010 2011 2012 2013 2014
Number of live sports events
+66%
+45%
+33%
2013 technology improvements
7
Continued transformation of our
technology infrastructure using
Agile
Flattened management structure
Future benefits
Greater productivity
Improved stability
Reduced technical debt
Increased adaptability
Separate code branch in the US
already benefiting from the
implementation of Agile
Zero downtime
Near continuous deployment

0
100
200
300
400
500
600
700
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13
Reduced number of
technology incidents
2013 US launch
8
Market overview
$7.4m in Dec
$9.5m in Jan
$10.3m in Feb
Solid start
Network is #1
Borgata has majority share
Operational challenges
No NY banks processing, yet
Geolocation issues
3G/4G issues


0
2
4
6
8
10
12
14
16
Nov-13 Dec-13 Jan-14 Feb-14
$m
Gross gaming revenue
Golden Nugget/Amaya Trump/Ultimate
Trump Plaza/Betfair Tropicana/Gamesys
WSOP/Caesars/888 Borgata/partypoker
2013 sponsorships
9
New digital partnerships
Juventus (I), Marseille (F),
Anderlecht (Be)
International fan base
Integral to marketing mix
Recent skills challenge videos
Man Utd 3m views
Real Madrid 1.6m views
Juventus 1m views
New Jersey Devils/
Philadelphia 76ers/
Prudential Center
Ground-breaking deal in US
Dream Seat Series




2013 mobile/touch
10




Total mobile GGR +77% vs 2012
Sports betting
GGR +79% YoY in Dec13
New apps launched
MS2 in test in Spain
Casino
GGR +607% in Dec13
2x number of games in 13
Over 20 games by Q2 14
Poker
GGR +175% in Dec13
iOS and Android
New HTML5 Fast Forward
Bingo
Mobile in May 2013
New Foxy app launched in
Jan 14




0
1
2
3
4
5
6
7
8
9
10
J F M A M J J A S O N D
m
2013 GGR on mobile/touch
Bingo
Poker
Casino & games
Sports betting
Martin Weigold
Chief Financial Officer
Summary financials
Year ended 31 December (m) 2013 2012 Change
Total revenue 652.4 801.6 (19%)
Cost of sales (88.9) (88.7) 0%
Gross profit 563.5 712.9 (21%)
Clean EBITDA* 108.0 164.9 (35%)
Depreciation, amortisation, impairment and exit costs (105.2) (118.8) 14%
Share-based payments, M&A and reorg costs (26.1) (25.8) 0%
Exchange losses (8.0) (5.3) (51%)
Retroactive taxes and associated charges (0.6) (31.5) 98%
Release of fair value provision 83.8 - n/a
Profit (loss) from operating activities 51.9 (16.5) n/a
Profit (loss) after tax 41.1 (64.7) n/a
*Before the provision for costs associated with the Groups Non-Prosecution Agreement, reorganisation expenses, retroactive
taxes and associated charges, completed merger and acquisition expenses, exchange differences and before non-cash
charges relating to share-based payments and amortisation and impairments on acquisitions
12
2013 total revenue mix by product
13
36.1%
32.8%
33.0%
33.8%
17.6%
22.0%
8.1%
8.0%
5.1%
3.4%
0
100
200
300
400
500
600
700
800
2013 2012
m
Other revenue
Bingo
Poker
Casino
Sports Betting
2013 net revenue by country
14
25%
10%
9%
6%
6%
5%
3%
1%
1%
18%
16% Germany
UK
Italy
France
Americas
Spain
Greece
Belgium
Denmark
Other EU
RoW
Taxed and/or nationally regulated revenue
15
0
50
100
150
200
250
300
350
400
m
Regulated/taxed markets: Total revenue bridge (2012 v 2013)
Sports betting
16
Key points
Mobile and underlying growth
offset by volume to value,
German taxes, Greece and
the absence of Euro 2012
German tax recovery partially
mitigates revenue impact
felt at gross profit level
Lower bonus costs
2014/15 outlook
Expansion in core markets
New mobile product roll-out
World Cup 2014
B2B opportunities
On-canvas opportunity
New regulations in Holland
0
50
100
150
200
250
m
Sports revenue - actual 2012 v 2013
Casino & games
17
Key points
Volume to value strategy
Reduced cross-sell from
poker (market decline) and
sports (migration losses)
Nationally regulated market
issues:
Loss of Spanish slots
ISP blocking in Greece
B2C and B2B launch in New
Jersey



Loss of Spanish slots
ISP blocking in Belgium
2014/15 outlook
Expanded mobile offer
More 3
rd
party games
Grow revenue in New Jersey
Spanish slots
Pennsylvania/Holland

0
50
100
150
200
250
m
Casino revenue - actual 2012 v 2013
Poker
18
Key points
Volume to value
Decline in ring-fenced,
nationally regulated markets
Migration losses partially
recovered
Product re-launch
#1 network in New Jersey
New tournament structure
New management
2014/15 outlook
Roll-out new product into
regulated markets
Iterative development
Consolidate position in NJ
California/Pennsylvania
0
25
50
75
100
125
150
175
200
m Poker revenue - actual 2012 v 2013
Bingo
19
Key points
Market leading positions
maintained
Increased competition in UK
Euro strength versus sterling
Market decline in Italy
Foxy launched on mobile
Launch of bwin bingo
2014/15 outlook
Expanded mobile offer
New bingo product
Tailored offer for cross-sell
Expansion of Foxy franchise
POC tax in UK Dec14
0
10
20
30
40
50
60
70
m
Bingo revenue - actual 2012 v 2013
Clean EBITDA distribution expenses
As a % of total revenue
20
19.3%
19.6%
5.0%
6.7%
4.4%
4.2%
1.0%
0.7%
4.1%
3.6%
0
50
100
150
200
250
300
2013 2012
m
Webhosting and
technical
services
Customer bad
debts
Third-party
content
Affiliates
Customer
acquisition and
retention
33.7%
34.8%
Clean EBITDA admin expenses
As a % of total revenue
21
4.6%
5.1%
18.5%
16.7%
3.9%
3.5%
8.9%
8.7%
0
50
100
150
200
250
300
2013 2012
m
Other overheads
Outsourced services
Staff costs
Transaction fees
36.0%
34.0%
Consolidated Clean EBITDA bridge
22
0
20
40
60
80
100
120
140
160
180
m
EBITDA bridge - actual 2012 v 2013
Cashflow bridge Dec 2012 to Dec 2013
23
0m
25m
50m
75m
100m
125m
150m
175m
Current trading and outlook
24
Average net
daily revenue

10 weeks to
11 March
2014
Vs same
period in
2013
% change
Vs Q4 13
% change

Total 1,743,000 (10%) 6%
Sports betting 725,000 (6%) 7%
Casino 590,100 (7%) 5%
Poker 275,000 (29%) 3%
Bingo 153,000 (1%) 9%



Sequential growth in all verticals
20m additional administration cost savings in 2014
FIFA World Cup in Q2
Roll-out of new mobile products

Norbert Teufelberger
Chief Executive Officer
Growth drivers
Our focus in 2014 / 15
bwin.party today
27
Core B2C RMG

Strategic B2B RMG

New business areas

Non-core activities
Key business drivers B2C
28
Geographic expansion in sustainable markets
Mobile/touch
Digital marketing
World Cup
Transforming our technology
Geographic expansion
Focus on sustainable markets
30
New Jersey
Launched 26 Nov 2013
B2C - partypoker, partypoker/casino
B2B Borgata poker and casino
Mobile (iOS, Android)
California
SB1366 (Correa)
AB2291 (Jones-Sawyer)
Pennsylvania
Active discussions with local
partners
Bill expected in May 2014



New markets - US
0%
5%
10%
15%
20%
25%
30%
35%
40%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
Nov-13 Dec-13 Jan-14 Feb-14 Mar-14*
New Jersey - B2C revenue performance
Average Daily Net Revenue
Bonus %
*Data to 11 March 2014
31
New markets - US
Nevada
Colorado
Iowa
Illinois
Pennsyl-
vania



California

Washington
Texas

Louisiana
Missi-
ssippi


Florida

New York
Previously
considered
or actively
considering
Passed
Connecticut
Massachusetts
Delaware
New Jersey
DC
32
Current set-up
Stand-alone business
Separate management team established
Head office in New Jersey
Separate code branch
Independent Agile development teams
Tailored solution for US requirements
Support services gradually being transferred
Future plans
Other states opening will provide critical
mass to support requisite infrastructure
Positioning to fully capture US value



New markets - US
33
9m revenue in 2013
Launched under licence in April 2013
bwin brand - sports, poker, casino
Digital partnership with RSC
Anderlecht and BC Oostende
Mobile recently launched
WPT events
Current estimated market share of
10% and growing

New markets - Belgium
KPIs
Grow revenue in regulated markets
75% of total revenue by Dec15
Mobile/touch
Reclaiming the lead in mobile
35
New product for sports betting
Launched in Dec 2013 under test conditions
Spain to go live in March 14
Other countries in Q2/Q3 14
Key objectives
Modern clean user experience
Dynamic presentation and smart navigation
Rich scoreboards and statistics



Mobile/touch
Home page
36
Mobile/touch
Poker Bingo Casino





0
1
2
3
4
5
6
7
8
9
10

m
i
l
l
i
o
n

GGR on mobile/touch
Bingo
Poker
Casino & games
Sports
KPIs
Increase mobile footprint in core markets
50% of GGR by Dec15
Transforming our customer
engagement
Digital marketing
38
Traditional model
Silo approach, static messaging
Limited use of data mining
Message not tailored to the
customer but to the media channel
New approach
Automated customer interaction
Creative interaction, driven by
customer profiling


Digital marketing
KPIs
Increased ROI on marketing
Increased player acquisition
and retention
World Cup
Leading technology
41
Key driver of customer experience
Increased regulatory compliance
Emergence of new channels
Independence
Differentiation
Ability to flex business model
Value chain



Technology ownership
KPIs
More platform and product
releases
Reduced downtime
Improved QA, faster fixes
Extending into new
business areas
Kalixa update
43
Kalixa update
44
The digital payments value chain
Kalixa update
2.5bn processed in 2013
Management team in place
Seeking complementary products and
services to provide a full suite:
In-store payment services
Multi-device/channel payment gateway
Risk and fraud management
Issuing /wallet solutions
Payment innovations e.g. NFC, MPOS

45
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014F 2015F 2016F 2017F
External vs. internal revenue
Revenue from bwin.party (inc Ongame)
Open market 3rd party revenue
KPIs
Increase external / non-gaming
revenue
Grow Europe, US, LATAM, Africa

Social gaming update
Optimised product offer
Registered over 2.7 million users
Second B2B customer in the US
Transferring games into RMG
Sportster Bet and Win
46
KPIs
Monetise and grow user base
Expand games portfolio
Leverage group assets
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
D
e
c
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1
2
J
a
n
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1
3
F
e
b
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1
3
M
a
r
-
1
3
A
p
r
-
1
3
M
a
y
-
1
3
J
u
n
-
1
3
J
u
l
-
1
3
A
u
g
-
1
3
S
e
p
-
1
3
O
c
t
-
1
3
N
o
v
-
1
3
D
e
c
-
1
3
J
a
n
-
1
4
F
e
b
-
1
4
Registered users
Summary transition to transformation
47
Grow our B2C business in nationally regulated/taxed markets
Aim to deliver absolute growth in revenue and Clean EBITDA
Expect to reach 75% of total revenue by December 2015
Grow presence on mobile/touch
Expect to reach 50% of GGR by December 2015
Improve our customer experience and digital marketing
Continue transformation of our technology
Grow new business areas and monetise non-core assets
Realise additional 20m of admin cost savings

Return the business to growth in 2014
Prepare for newly regulated markets in 2015
2013 results
13 March 2014