1. Bragg reported financial results for the first half of 2021 with revenue increasing 27.6% compared to the same period in 2020 and Adjusted EBITDA up 8.5% despite regulatory changes in Germany.
2. For the full year 2021, Bragg expects revenue between €47-49 million and Adjusted EBITDA between €4.8-5.4 million, accounting for the impact of new regulations in Germany.
3. Looking ahead, Bragg provided revenue guidance of €54-56 million for 2022 driven by its expansion into new markets, growth of existing markets and customers, and acquisitions completed in 2021.
2. 2
Forward Looking Statements
This presentation contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") which are based upon Bragg Gaming Group Inc.'s (the "Bragg") current internal
expectations, estimates, projections, assumptions and beliefs which are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond Bragg's control and many of
which are subject to change. Such forward-looking information may include information regarding Bragg's financial position, business strategy, growth strategies, the status of currently planned acquisitions, addressable markets,
budgets, operations, financial results, financial targets and expansion plans. In some cases, such statements can be identified by the use of forward-looking terminology such as "expect", "likely", "may", "will", "should", "would",
"intend", or "anticipate", "potential", "proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of
strategy. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of historical fact.
Although Bragg believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Bragg is unable to guarantee future results, levels of
activity, performance or achievements and investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. Moreover, neither Bragg nor any other person assumes responsibility for the
outcome of the forward-looking statements. Many of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this presentation are beyond the
control of Bragg. The risks and other factors include, but are not limited to: regulatory landscape and potential regulatory changes in significant jurisdictions in which Bragg operates or plans to operate; concentrated customer base
accounts for significant portion of revenues of Bragg; the impact of regulatory changes in Germany on July 1, 2021; competition and changes in the competitive landscape; reliance on top customers and key personnel and employees;
the completion of strategic acquisitions by Bragg and management of growth; reliance on strategic alliances and relationships with third party network infrastructure developers, key suppliers, and service platform vendors; new
business areas and geographic markets; legal status of real-money gaming and changes to and interpretations of laws and regulations; intrusion or other security breaches, cyberattacks, or cybercrime; the costs and potential impact
of obtaining all necessary regulatory approvals, and complying with existing and proposed laws in a heavily regulated industry; the plans, costs, and timing for future research and development of Bragg's current and future
technologies, including additional platforms; deriving revenue from players located in jurisdictions in which Bragg does not hold a license, and the impact of customers' operations in unregulated or prohibited jurisdictions; projections
of market prices and costs; expected revenues and the ability to attain profitability; expectations regarding the ability to raise capital on acceptable terms; access to payment processors and currency, exchange and interest rates;
Bragg's management and protection of intellectual property and other proprietary rights; changes in, or in the interpretation of, legislation with respect to Bragg's tax liabilities and changes in taxation regimes; prices and price volatility
of Bragg's products; money laundering and fraudulent activity; disruptions to markets, economic activity, financing, and supply chains, and a deterioration of general economic conditions including a possible national or global
recession and risks related to COVID-19. Readers are cautioned that the foregoing list of such risks and factors is not exhaustive and that additional information on these and other factors that could affect the Company's operations or
financial results are contained in Bragg's documents filed under its profile at www.sedar.com, including Bragg's Annual Information Form for the year ended December 30, 2020 and Management's Discussion and Analysis for each of
the year ended December 30, 2020 and the three-month period ended June 30, 2021 (the "Annual MD&A" and "Interim MD&A", respectively).
The forward-looking statements set forth herein reflect Bragg's expectations as at the date of this presentation and is subject to change after such date. Bragg disclaims any intention or obligation to update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise, other than as required by law. Forward-looking information and other information contained herein concerning management's general
expectations concerning the gaming industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on
data and knowledge of this industry which management believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics.
While management is not aware of any misstatements regarding any industry data presented herein, industry data is subject to change based on various factors.
Non-IFRS Measures
This presentation makes reference to certain non-IFRS measures, including Adjusted EBITDA and EBITDA. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are
therefore not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our
results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures and
metrics are used to provide investors with supplemental measures of Bragg's operating performance and liquidity and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures.
Bragg also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures, including industry metrics, in the evaluation of companies in our industry. Management also uses non-IFRS
measures and industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation. See
related disclosure in Bragg's Annual MD&A (including under the heading "Limitations of Key Metrics and Other Data") and Interim MD&A (including under the headings "Management Discussion & Analysis", "Selected Interim
Information" and "Limitations Of Key Metrics And Other Data").
3. 3
1. Compared to Q2 2020
2. Individuals who made a real money wagers at least once during the period.
3. wagering generated via our games and content offered by Oryx and Wild Streak in the period
‣ Revenue increased by 27.6% to €15.5M
‣ Wagering generated by customers up by 15.9% to €3.8B
‣ The number of unique players2 using Bragg games and content
increased 21% up to 2.3M
‣ Gross profit increased by 37.5% to €7.0M
‣ Gross profit margins increased from 42% to 45%
‣ Adjusted EBITDA up by 8.5% to €1.9M with 12.3% margin
Q2 2021 Financial Highlights1 Historical Financial Overview in Four Charts
Q2-21 Revenue and EBITDA Ahead of Expectations
‣ Five new B2C operators live in multiple jurisdictions
‣ Strengthened our foothold in Spain with the launch of Casumo
‣ Eleven new exclusive slot games launched by Oryx (two from its
in-house studio).
‣ Improved customer revenue diversification, with 57% of
revenue from top ten customers, down from 64%1
Q2 2021 Business Highlights
Revenue (€’m) Adj. EBITDA (€’m) /Margins
Wagering (€’b) Customers
8,8
12,1 11,7
13,8 14,2
15,5
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
Q120 Q220 Q320 Q420 Q121 Q221
74 78
90
101
114 119
0
20
40
60
80
100
120
140
Q120 Q220 Q320 Q420 Q121 Q221
2,3
3,3
3,0
3,4 3,5
3,8
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
Q120 Q220 Q320 Q420 Q121 Q221
0,7
1,8 1,8
1,3
2,3
1,9
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
0,0
0,5
1,0
1,5
2,0
2,5
Q120 Q220 Q320 Q420 Q121 Q221
4. 4
(1) Share based payment : awards to new
directors and management in Q1 2021
composed of DSUs and RSUs.
(2) Transaction and acquisition costs : costs
associated with the acquisition of the Wild
Streak and Spin games and the deployment of
the Corporation’s M&A strategy
(3) Exceptional costs : include one-time costs
relating to legal and professional fees on the
NASDAQ listing, and other non-recurring
regularity and legal matters
Reconciliation Operating loss (Income) to Adj. EBITDAz
Q2-21 EBITDA Reconciliation
1. Adjusted EBITDA excludes income or expenses that relate to exceptional items and non-cash share-based charges and includes deductions for lease expenses that are recognized as part of depreciation and finance charges under IFRS 16.
EUR 000 2021 2020 2021 2020
Operating loss (income) (1,825) 762 (2,324) (4,318)
Depreciation and amortization 1,051 667 1,887 1,451
EBITDA (774) 1,429 (437) (2,867)
Depreciation of right-of-use assets (37) (53) (75) (105)
Lease interest expense (5) (6) (10) (12)
(1) Share based payments 891 (145) 2,200 (94)
(2) Transaction and acquisition costs 573 307 1,136 344
(3) Exceptionalcosts 1,252 - 1,428 -
Loss on remeasurement of contingent consideration - 219 - 5,187
Adjusted EBITDA 1,900 1,751 4,242 2,453
Margins 12% 14% 14% 12%
Three Months Ended June 30, Six Months Ended June 30,
5. 5
Balance sheet and Net working capital
Solid Working Capital and Balance Sheet
Cash flow and financial resources
Investment activity
‣ EUR 11.5m payments of the Oryx cash earn-out in Q1 21.
‣ EUR 8.2m paid upon business combination of Wild Streak
‣ EUR 1.4m intangible assets related to the capitalisation of software development costs
Financing activities
‣ EUR 10.8 Net proceeds from exercise of warrants relating to the November 2020 Public Offering
‣ EUR 1.3m board of directors and officers private placement in Q1 2021
Balance sheet and cash position
‣ Solid balance sheet with EUR 21m cash with no debt facilities
‣ Projected positive free cash flow generation
‣ No main capex or technology debt requirements
Six Months Ended June 30,
EUR 000 2021 2020
Operating activities 2,149 3,135
Investing activities (21,004) (862)
Financing activities 12,590 (141)
Effect of foreign exchange 1,129 (73)
Net cash flow (used in) from continuing operations (5,136) 2,059
As at As at
June 30, December 31,
EUR 000 2021 2020
Cash and cash equivalents 20,966 26,102
Current assets 10,638 10,708
Current liabilities (19,808) (18,521)
Net working capital 11,796 18,289
Deferred and contingent consideration (63) (11,521)
Net current assets from continuing operations 11,733 6,768
Total assets 90,136 72,094
Total liabilities 21,833 32,197
6. 6
Germany Trending In-line With Expectations Since 1 July
• German revenue out-performed in H1 2021 and
represented 65% of total revenue
• From 1 July 2021 player behavior and invoiced revenue
has trended in-line with our expectations
• We assume that monthly German revenue will bottom out
in September 2021
Key trends as a result of the regulatory changes
‣ Restrictions in game play: deposit limits, 1 EUR max bet, 5 second minimum spin / wager time, removal of auto spin in addition to social responsibility measures.
‣ 5.3% wagering tax –dropping industry game royalty effective rate circa 50% vs previous expectations of 25% GGR tax.
0%
10%
20%
30%
40%
50%
60%
70%
80%
-
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
German revenue to represent less than
15% of group revenue by December 2021
Germany % of Total Revenue
7. 7
Revenue & Adjusted EBITDA FY 2021-Guidance
• Germany Regulatory Effect: expectancy of revenue drop as a result of
new regulatory environment, effective 1st July and impact on H2 2021.
• Market Growth: expect to gain market share in existing markets such
as Romania, Austria, Poland and LATAM.
• New Clients: sales pipeline; new customers win in Europe being
onboarded throughout the year.
• Product Split: effect of product split between iGP / PAM, and games /
content, which have a different cost base on margins
• Employee Costs: investment in technology / product / compliance /
legal / sales teams as part of the group’s expansion strategy.
Predominantly in the US, Canadian and UK markets
• Other OPEX and SG&A: in line with previous years’ costs
Revenue Bridge €’m
Adjusted EBITDA Bridge €’m
46,4 47,0 49,0
8,2 4,8
4,0 2,0
FY 2020 GermanRegulatory
Effect
Market Growth New Clients FY2021 (Pre-
Acquisitions)
Acquisitions FY 2021
5,5
4,0
5,4
0,2 0,2 1,2
0,0
1,4
FY 2020 Product Split IT / Hosting Employee Costs Other Opex and
SG&A
FY2021 (Pre-
Acquisitions)
Acquisition FY2021
8. 8
2022 Revenue Bridge & Guidance
• German Regulatory Effect: As FY 2021 includes impact of new German
regulations from July 1st (H2 only), in FY 2022 a full year (H1+H2)
impact is projected
• New Markets: Anticipated Bragg’s new revenue from the UK, the
Netherlands, Italy, the US, Canada and others (excl. acquisitions)
• New Clients: Ongoing sales pipeline1 brings growth from new clients
in existing markets
2022 Revenue Guidance set at €54m to €56m FY 2022 Revenue
€54m - €56m
Mid point of €55m
1 Sum of potential customers in active discussions, RFPs and contract stages.
• Market Growth: Existing customers in various markets forecast to grow
on an annual growth rate of 10%
• 2021 pipeline: Existing customers in various markets forecast to grow on
an annual growth rate of 10%
• Content: New In-house content and third party exclusive content
• Acquisitions: a full year revenues consolidation of (1) Wild Streak and (2)
Spin Games
31,0 31,0
35,0
38,6 40,8
43,9 46,8
FY2021 German Regulatory
Effect
New Markets New Clients Market Growth 2021 Pipeline Content Acquisition FY 2022
9. 9
‣ Bragg expects to grow its total
addressable online casino market
from €2.8 billion in 2021 to €18.4
billion in 20221
‣ The Company plans to leverage its
experience to expand into large
regulated European markets such
as the UK, Italy and the
Netherlands, as well as in the
growing North American markets
‣ Develop, produce and distribute
more proprietary casino content
through fully-owned studios
‣ The Company expects fully-owned
content to lower costs relative to
licensing games from third parties,
and to offer opportunities to drive
more revenue through superior
player engagement and loyalty
‣ The Company expects to increase
distribution of premium and
localized content through
partnerships with more studios
‣ Anticipated exclusive deals as well
as original content will allow the
Company to create bespoke
games adjustable to markets it
operates in and plans to enter
‣ Continued growth of core business
through new customer wins
‣ The Company has more than doubled
its customer base in the last two years
and continues to win new clients
Focus on Core
Business Growth
Expand Offering with
New Exclusive Content
Develop Games
through Owned Studios
Expand to
New Markets
New Proprietary Content Exclusive Content New Customers
Regulated & Regulating Markets
Strategic Growth Initiatives
Bragg is well positioned for future growth
1: Total Addressable Market (TAM) data from H2 Gambling Capital, May 2021, and from Company estimates
10. 10
A game studio specializing in premium casino slot
game design supporting land-based casinos,
online real money casinos and social gaming
applications.
‣ Existing library of content and expertise developing successful
content
‣ High margin business
‣ Ability over time to remove third party online distribution costs
‣ Several successful titles released in Europe in 2021
‣ Team has over 20 years of experience in slot design at
companies such as IGT, Aristocrat and Scientific Games
Wild Streak Overview Quick Facts2
TOP MARKETS: UK | EU | New Jersey
€1.26 million
H1 2021 Gross Revenue3
40
Games2
13
No of Employees
11
Live U.S. Customers
59%
H1 2021 Adj. EBITDA Margin3
Development Pipelines Dragon Power: highly popular slot in NJ
Wild Streak Acquisition
Closed June 2, 2021 | TEV of $30m - $10m cash/$20m stock1
1. Acquisition costs quoted in USD; 2. As at June 30, 2021 3. H1 financials for Wild Streak are draft, un-audited numbers
€0.63 million
H1 2021 EBITDA3
11. 11
Wild Streak Gaming Online Growth
Significant growth in online revenue projected between
Q1 2020 and FY 2022:
● With just seven games live online as at end Q1 2021
● Roadmap of new online games ready to be released
● Live in one state in the U.S., New Jersey at end Q2 2021
● Opportunity for further growth in additional regulated U.S. states
and other markets
● Large additional distribution network available via ORYX RGS
● Opportunity to improve performance using Player Engagement
tools
RAPID GROWTH IN ONLINE REVENUE PROJECTED
Wild Streak Revenue: Q1 2021 – FY 20221
-
1
2
3
4
5
6
Q1 2021 A Q2 2021 A FY 2021 E FY 2022 E
€’m
Land-Based Revenue Online Revenue Adjusted EBITDA
Projected
FY 2021 v FY 2022
Online Revenue Growth
77%
1. H1 financials for Wild Streak are draft, un-audited numbers
12. 12
• Four new titles launched in H1 2021 with
Pragmatic Play
• Strong and sustained performance
• Strong growth in GGR since January launch
Encouraging Wild Streak Growth in Europe
Early Game performance in Europe underpins revenue capture opportunity for Bragg
1. Chart represents gross gaming revenue (“GGR”) from Wild Streak titles distributed by Pragmatic Play in 2021
Wild Streak Performance in Europe1
Strong
performance
Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Congo Cash Temujin Treasures AmazingMoneyMachine Lucky Lightning
13. 13
Promising Retention on Wild Streak Slots
Wild Streak Releases in Q1 2021 Sustained Higher Wagering Levels
Wagering retention on Q1 Slots Releases: Wild Streak v Other Exclusive 3rd Party Game Releases
0%
20%
40%
60%
80%
100%
1-30 31-60 61-90 91-120 121-150
Wagering
Compared
to
First
30
Days
DAYS SINCE LAUNCH Wild Streak Gaming All Exclusive3rdParty
14. 14
Spin Games Acquisition
Announced May 12, 2021 | TEV of $30m - $10m cash/$20m stock1 2
1. Figures quoted in USD; 2. Subject to approval from state gaming regulators and other customary closing conditions; 3. As at May 12th, 2021; 4. Remote Games Server (“RGS”);
Established U.S. B2B online casino RGS4 and
content aggregation service provider built on
proprietary technology
‣ Accelerates Bragg’s entry into the U.S.
‣ Established provider of proprietary and exclusive third party
online casino content
‣ Founded in 2012 by iGaming entrepreneur and former
Aristocrat and Aruze executive Kent Young
‣ Extensive U.S. market knowledge with proven compliance and
regulation expertise
‣ Offers growth through leveraging Bragg’s existing content,
PAM and player engagement tools
Spin Overview Quick Facts3
TOP MARKETS: New Jersey | Michigan | Pennsylvania
Licensed Jurisdictions
NJ, PA, MI & BC
4
30+ Employees
Proprietary games
30+
Customers
30+
Select Customers
15. 15
Bragg TAM to Increase 6 Fold to US$18.4 billion in 2022
Germany
Denmark
Finland
Norway
Austria
Switz.
Others
Bragg’s TAM, 2021:
$2.8 billion
Bragg’s TAM,
2022:
$18.4 billion
New Markets in 2022:
$15.6 billion
• Bragg has historically operated and targeted
markets that represent only US$2.8 billion
• UK is a US$5.5 billion market2
• Italy is a US$2 billion market
• Bragg expects to address a combined online
casino market of US$18.4 billion in 2022
1. TAM = Total Addressable Market for Online Casino
2. In 2021 according to H2 Gambling Capital and Company estimates
United
Kingdom
Italy
United States
Canada
Other new
16. 16
• Over 200 games by 9 third-party partner studios
• 40 new exclusive games released Jan-Jun 2021
• Currently in discussions with several tier 1 studios for the exclusive rights for further slot titles
for both the US and Europe
Bragg continues to invest in its in-house gaming content and to integrate new exclusive content providers
Proprietary, in-house studios we capture ~100% of revenue We capture ~25-35% of revenue from exclusive games from 3rd parties
Significant Growth Opportunity Through Proprietary and Exclusive Content
1: Gross Gaming Revenue (“GGR”) in USD; 2. Wild Streak online slot titles Congo Cash, Temujin Treasures, Amazing Money Machine & Lucky Lightning distributed by Pragmatic Play
• Wild Streak will target the release of 16 games in 2022 with 10 games focused on the U.S and
6 games focused on Europe with Pragmatic Play. Recent performance has been strong.
• $4.4m GGR1
from Dragon Power alone in NJ, Jan-Jun 2021
• $36.6m GGR1 from four online slots2 distributed by Pragmatic Play, Jan-Jun 2021
• Spin Games has a road map of least 12 games per year coupled with the exclusive rights for
blackjack side bet variants
• Oryx in-house studio building up to a run rate of releasing 23 games in 2022 from 5 in 2021
17. 17
Our Roadmap for Expanding Our Market Reach
Q1-2021 Q2-2021 Q3-2021 Q4-2021 FY 2022 FY 2025
RoW
North America
UK
Italy
New EU**
Existing*
TAM by Markets Active for Bragg, USD billions
2.8 3.3
5.4
12.2
18.4
40.6
Bragg’s TAM expected to more
than double in size between
FY 2022 and FY 2025
- * Bragg’s existing markets include Germany, Denmark, Finland, Norway, Austria, Switzerland and others
- ** New EU markets for Bragg include Greece, The Netherlands, Spain, Belgium and Sweden All data based on H2 Gambling Capital, May 2021 and Company estimates
18. 18
More Exclusive Games & Greater Proportion from In-house
North America2
Europe & non-U.S.1
39
45
58
38
11%
33%
37%
Increasing proportion of in-house proprietary content, from zero in 2020
17
6
11
5
19
22 34
36
2020 2021 2022
Gamomat Oryx Other 3rd PartyExclusive
10
4
24
2020 2021 2022
Wild Streak Oryx Other 3rd PartyExclusive
1: Excludes Wild Streak games developed for Pragmatic Play; 2: Excludes Wild Streak games developed for Scientific Games
19. 19
Margin:
Proprietary Content
Margin:
Platform
Margin:
Aggregated 3rd
Party
Royalty:
Aggregated 3rd
Party
Royalty:
Exclusive 3rd Party
Margin:
Exclusive 3rd Party
What is changing: Gross Profit Margin
• Third party casino revenue
to reduce. Replaced with higher
gross margin in-house content & platform
revenue
• Resulting higher gross profit margins
expected to increase EBITDA margins from
~12% to ~25%
• Aggregation to reduce its % share
43%
Gross Profit Margin
Royalty to 3rd Parties
2020 Bragg gross profit margin profile by product Future profile including M&A
BRAGG’S OPERATING LEVERAGE TO INCREASE GIVEN LIMITED GROWTH IN EMPLOYEE COSTS AND OTHER OVERHEADS NEEDED
Royalty to 3rd Parties
~60%
Gross Profit Margin
Product Mix 2020A 2024E
Exclusive 3rd Party 75% 36%
Proprietary Content 1% 44%
Platform 11% 11%
Aggregated 3rd Party 13% 10%
Margin:
Proprietary
Content
Margin:
Platform
Margin:
Aggregated 3rd
Party
Royalty:
Aggregated 3rd
Party
Royalty:
Exclusive 3rd Party
Margin:
Exclusive 3rd Party
EBITDA margins
~12%
EBITDA margins
~25%
20. 20
Conclusion: Bragg is Well Positioned for Profitable Future Growth
FOUNDATIONS IN PLACE TO CAPTURE MORE OF THE VALUE CHAIN AND A GREATER PROPORTION OF THE GLOBAL ONLINE GAMING SECTOR
Significant Adjusted EBITDA margin expansion opportunities by capturing a greater share of revenue generated
1
Robust, proprietary tech stack focused on speed, performance and player engagement
2
3
4
5
6
7
Growing global footprint in North America, Europe and LATAM
Customer base includes some of the largest online B2C casino operators in EU and U.S.
Low capex/high return business model
Recently announced M&A to materially increase revenue and EBITDA over the medium term
Content-led strategy with increased focus on proprietary in-house game development