Investor Presentation
April 2015
This documentation is a presentation of general background information about NYX Gaming Group Limited’s (“NYX”) activities current as the date of the presentation, April 16, 2015. It is information in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate.
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1. Includes a number of independent contractors 2. Owns directly or indirectly on a fully-diluted basis
Matt Davey (Las Vegas)
Chief Executive Officer and Director Art Hamilton (Las Vegas) Chief Financial Officer Vladislav Aizenstadt (Las Vegas) Chief Technology Officer Hamish Brown (Sydney) Chief Operating Officer
20+ years of experience in the gaming industry and a former gaming regulator, consultant and industry executive
Joined NextGen in 2000
Prior Chief Accounting Officer for Spectrum Group, Director of Treasury/Compliance at Fontainbleau Resorts, and Director of Internal
Audit MGM Resorts
Former Director of Poker Development at Caesars Interactive and VP of Software
Development at Amaya
18 years experience in gaming industry in various operational and commercial roles
Joined NextGen in 2008
Scott Smith (Sydney)
EVP Product Development Staffan Lindgren (Stockholm) Sales Director and Director Matt Stafford (Las Vegas) General Counsel EVP Business Development David Flynn (Stockholm)
25+ years in gaming industry; involved with NYX Gaming since inception of NextGen
Gaming
Founder and former CEO of NYX Interactive with 20+ years of experience in technology and
finance sectors
Prior Assistant General Counsel for Aruze Gaming America, where he secured over 150
gaming licenses in major global gaming jurisdictions
Extensive gaming industry experience Former Head of Operations at Microgaming and VP at Ongame
Management owns
over 35% of NYX
11. Owns directly or indirectly on a fully-diluted basis
1. Includes growth through acquisition of NYX Interactive AB (November 2011) and Zen Entertainment Inc. (March 2013)
2. Excludes losses from social gaming business, as the Company has successfully restructured this division in 2015 and is currently break-even
1.3
2.7
6.1
Historical Financial Results
10.1
Ongame Losses Social Gaming Losses 2 Adjusted EBITDAIn CAD ($)
Year Ended
Year Ended
December 31, 2014 December 31, 2013 Net income (loss) (7,006,019) (1,925,673) Net tax expense (benefit) 239,368 (543,480) Profit before tax (6,766,651) (2,469,153) Depreciation and amortization 4,904,976 4,905,593 Net financial losses (gains) 1,297,847 1,000,090 Share-based payments 73,266 193,398 Acquisition and other nonrecurring expenses 3,940,536 308,020 Public listing expenses 2,641,829 — Gain on Zen Entertainment acquisition — (397,094) Loss on Zen Entertainment investment — 729,145 Adjusted EBITDA 6,091,8031 4,269,999
Adjusted EBITDA
Our December 31, 2014 Results
December 30,
2014
Completes Initial
Public Offering
$45.0 million gross
proceeds at $3.50
per share
NYX Update Since IPO
February 3, 2015
Announces signing of
White Hat Gaming for
NYX Poker product,
formerly Ongame
Network
February 18, 2015
SNG Interactive secures
Transactional Waiver,
allowing NYX’s online
gaming platform (OPS) to
launch in New Jersey
January 22, 2015
Announces launch of
Slot Games on Paddy
Power, with the dual
mobile and desktop
launch of Merlin’s
Millions Superbet
January 30, 2015
Announces
appointment of
Hamish Brown as
Group Chief Operating
Officer
January 12, 2015
Announces creation of Psycho
slot game under agreement
with Universal Partnerships &
Licensing
January 30, 2015
Announces exercise of
over-allotment for total
gross proceeds of $49.5
million
February 5, 2015
Announces launch of NYX
OGS and signing of NYX
Poker with Iveriabet
April 9, 2015
Announces
acquisition of
Chartwell &
Cryptologic from
Amaya for $150
million
April 16, 2015
Conference call to
discuss financial
results for Q4 and
Fiscal 2014
Acquisition Terms
Key Item
Description
Purchase Price
l
$150 million, all cash
l
~300 casino games
Conditions
l
Financing (numerous alternatives available)
l
Delivery of financials no later than 90 days post announcement
$150 million
Platform
Cryptologic/Chartwell Overview
•
Powerful back office solution featuring
reporting configuring and bonus
capabilities
•
Markets and distributes gaming solution
to 45+ licensed operators in regulated
jurisdictions
•
Provides the following:
•
Basic player account management
•
Operator reporting and game
management
Games
•
Branded content featuring popular
characters/movies
•
Proprietary and 3
rdparty mobile games
•
~300 casino game titles including online
slots, tables games, video poker, shared
jackpot, fixed odds and remote live
dealer games
Content library
available via seamless
single integration of
CGS with operator
Acquisition of Cryptologic/Chartwell
Provides NYX with what management believes will be the world’s
fastest growing online casino customer (PokerStars & Full Tilt)
Minimum license commitment of $12 million for first three years
Entered into a six year preferred Licensing Agreement to
provide content to Amaya as casino business achieves scale
Generate substantial synergies of approximately $7.0 - $9.0
million (excluding revenues from Licensing Agreement)
Expected to be materially accretive to near-term EPS
Enhances NYX’s gaming content by adding ~300 titles
Increases NYX’s operating and public markets profile
Worldwide Locations
1. Post-Acquisition of Cryptologic/Chartwell
Corporate Update
0.0 1.0 2.0 3.0 4.0 $2.00 $3.00 $4.00 $5.00 $6.00Dec-14 Jan-15 Feb-15 Mar-15 Volume Share Price
Sh ar e Pr ic e (C$ ) Vo lu m e (m illio ns )
