Better Collective A/S

Annual Report (ESEF) • Mar 25, 2025

BETTERCOLLECTIVE - 2024 Better Collective A/SToldbodgade121253Copenhagen KTelefonTelefon276529132549001EPXH6NK7I2R782024-01-012024-12-312023-01-012023-12-31Regnskabsklasse DCopenhagen2025-03-25Årsrapport27652913Better Collective A/SToldbodgade 121253 København KxWizard version 1.1.1343.0, by EasyX Aps. www.easyx.euRevisionspåtegningGrundlag for konklusionKonklusionmne26693mne45879Jesper SøgaardJesper SøgaardJesper SøgaardJesper SøgaardCEO & Co-founderChristian Kirk RasmussenChristian Kirk RasmussenChristian Kirk RasmussenChristian Kirk RasmussenCOO & Co-founder Executive Vice PresidentFlemming PedersenFlemming PedersenFlemming PedersenFlemming PedersenExecutive Vice President CFOJens BagerJens BagerJens BagerJens BagerJens BagerJens BagerJens BagerJens BagerJens BagerChairTherese HillmanTherese HillmanTherese HillmanTherese HillmanTherese HillmanTherese HillmanTherese HillmanTherese HillmanTherese HillmanViceViceViceViceViceViceViceViceViceChairTodd DunlapTodd DunlapTodd DunlapTodd 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Better Collective’s sports media brand, Play- maker HQ, hosted its first Block Party event in Central Park, New York, bringing 4,000 fans, athletes, and creators together. The show was headlined by Jalen Brunson and Josh Hart and featured special guests like Jon Stewart and many more. Annual Report 2024 March 25, 2025 Better Collective A/S www.bettercollective.com CVR NO.: 27 65 29 13 Sankt Annæ Plads 28, Copenhagen Table of contents Management review Financial Financial calendar Statements Sustainability Commitment to growing a sustainable business General disclosures Social Governance Entity specific disclosures Environment 42 43 45 58 77 81 84 91 96 Group 116 117 117 118 119 120 122 Overview 3 4 5 7 10 April 22, 2025 Statement of profit and loss Statement of comprehensive income Balance sheet Building Better Collective A word to our shareholders 2024 highlights AGM May 21, 2025 Statement of changes in equity Cash flow statement Notes Five-year summary Interim Financial report Q1 Strategy 11 EU Taxonomy Appendix Our vision 12 August 20, 2025 Parent company Statement of profit and loss Statement of comprehensive income Balance sheet Statement of changes in equity Cash flow statement 158 159 159 160 161 Better Collective’s clear vision and strong strategy Better Collective’s business segments Business segments review 2024 financial performance Interim Financial report Q2 13 17 18 19 Statements 107 108 109 Statement by Management November 13, 2025 Independent Auditors’ Report Independent Auditors’ limited assurance report on Sustainability Statements Interim Financial report Q3 162 163 113 Notes Corporate Matters Better Collective’s corporate governance Remuneration to the Board of Directors and Executive Management Internal controls Risk management Board of Directors Executive Management The BETCO share and shareholders 22 23 Other 178 179 Alternative Performance Measures and Definitions 30 32 34 36 39 40 Annual report Page 2 Overview Building Better Collective A word to our shareholders 2024 highlights 4 5 7 Five-year summary 10 This is our detailed 2024 annual report of the Better Collective group’s financial and sustainability performance, risks, strategy and governance. It includes our Consolidated Financial Statements and Sustainability Statements. To align with the European Sustainability Reporting Standards (ESRS) under the EU Corporate Sustainability Reporting Di- rective (CSRD), we have integrated our financial and sustainability reporting into a single, unified report. This approach enhances transparency and offers stakeholders a holistic view of our group’s overall performance and long-term value creation. Further, our statutory corporate governance report is incorporated into the “Corporate matters” chapter of the Man- agement Review. In our separate Remuneration Report, you can get a transparent and comprehensive overview of the remuneration of our Board of Directors and Executive management team. To get an overview of all of our reporting material you are welcome to download our reports and investor presentations via our corporate website www.Bettercollective.com Annual report Annual report Page 3 Page 3 we operate within and have become a crucial part of our talent attraction. Our emphasis on creating a secure and equitable work environment is sustained through our DEI initiatives. Today, more than 45 nationalities are represented in Better Collective across 27 countries. We collaborate with licensed sportsbook partners in regu- lated markets, receiving recognition through numerous iGaming industry awards for our commitment to com- pliance. Our dedication to safer gambling is ingrained in our core values and we actively support our partners by providing them with safer gambling software, a commit- ment also extended across our own portfolio of sports media brands. Our longstanding goal is to achieve sus- tainable growth, enabling high profitability while con- currently focusing on future development. Today, we are one of the leading digital sports media groups glob- ally and we continue to strive for increased internal op- timization as there are a lot of synergies to harvest in combining strong authoritative sports media with large viewership and Better Collective’s core strengths of op- timization, conversion, and diverse business models. We are proud to have retained many talented colleagues and founders onboard, which is a testament to the trust and excitement surrounding what we are building with Better Collective. Building Better Collective Since the incorporation of Better Collective in 2004, we have been on a remarkable journey, evolving from a two-person initiative into a global group with more than 1,500 talented employees, and more than 450 million monthly visits across our portfolio. Throughout the years of rapid expansion, we have managed to maintain our visionary and entrepreneurial spirit. Our steadfast commitment has always been to operate our business sustainably. As co-founders, we share the belief that genuine success is derived from creating something we can truly take pride in. Hence, we made the early deci- sion to keep our headquarters and company registration in Copenhagen, reflecting our dedication to giving back to the community we call home, while ensuring that taxes are appropriately paid in all the countries we op- erate. Furthermore, we strive to give back to the local communities in which we operate both through em- ployee initiatives as well as great offering products with great sports content. The formation of a highly experi- enced and diverse Board of Directors has been a core focus since the early days, even preceding our listing on Nasdaq Stockholm in 2018, and later our dual listing on our home turf in Copenhagen. Our BC Academies within topics like search engine optimization (SEO) and search engine marketing (SEM) underscore our commitment to developing our employees and the local communities Jesper Søgaard & Christian Kirk Rasmussen Co-founders, CEO & COO Co-founders Jesper Søgaard (CEO) & Christian Kirk Rasmussen (COO) at the opening of Better Collective’s new headquarters in Copenhagen Annual report Annual report Page 4 Page 4 Looking ahead to 2025 and beyond The global iGaming market is still in its youth, with nu- merous major markets still to regulate online sports bet- ting in the coming years. We are strategically positioned to capitalize on these opportunities, leveraging our Group's expertise to enter and expand into these mar- kets as they become regulated, thereby increasing our addressable market. A key milestone of the year was the continued integra- tion of Playmaker Capital, which we acquired in early 2024. Playmaker’s strong portfolio of sports media brands, including Futbol Sites, Yardbarker, and The Na- tion Network, has strengthened our foothold across North and South America. Additionally, despite initial commercial challenges, Playmaker HQ has become a key part of our broader media strategy, particularly in social and podcast-driven sports content for strong partner activations. Lastly, the acquisition of AceOdds has been great in delivering reliable recurring revenue, adding brand value to our UK reach, as well as strengthening our position in one of the most mature sports betting markets globally. further strengthened our market-leading position in South and North America. Through this acquisition, we are well-positioned to support advertisers broadly in en- hancing brand awareness and sportsbooks, specifically in acquiring customers throughout the region. A word to our shareholders Navigating a year of external challenges and positioning for the future While the transition of Brazil's sports betting and iGam- ing regulation temporarily slowed sportsbook market- ing activity, we remain highly optimistic about the long- term potential of a regulated market. 2025 will see a re- basing of the Brazilian business, impacting the recurring revenue share income, however, is expected to grow from 2026 onwards. Encouragingly, all our media inven- tory in Brazil is fully booked for the launch of the Brazil- ian market, highlighting the strong demand for our sports media assets. As we reflect on 2024, we recognize it as a year of both challenges and resilience. While the first half of the year delivered strong results, the second half brought signif- icant external headwinds, particularly with changes in the digital search landscape, the evolving regulatory en- vironment in Brazil, and shifting dynamics in the US mar- ket. However, through our proactive approach and op- erational discipline, Better Collective remains well-posi- tioned to return to growth and long-term value creation. As we move into 2025, the focus will be on the rebasing of the Brazilian business in a regulatory environment, paving the way for returning to growth in 2026. Despite short-term challenges, the long-term outlook for Better Collective remains strong. We are confident in our abil- ity to continue leading the sports media and betting me- dia industries through innovation, strategic invest- ments, and operational excellence. Our market-leading brands, combined with a robust financial position and a highly skilled team, provide a solid foundation for the future. Driving recurring revenue growth and strategic adaptation One of our primary goals has been increasing the share of high-quality recurring revenues. In 2024, recurring revenue grew by 21% to reach 231 mEUR, further en- hancing the predictability and sustainability of our rev- enue streams. Our transition to revenue share agree- ments in North America continued, aligning us with long-term industry trends that prioritize sustainable revenue over one-time commissions. Operational efficiency and a strong financial foundation Strengthening our position as the To align with shifting market conditions, we took deci- sive action in 2024 to optimize our cost structure, re- ducing operational expenses by 50 mEUR. While these measures resulted in a leaner organization, they also en- sure that we remain agile and financially resilient. Leading Digital Sports Media Group Our vision remains clear: to become the leading digital sports media group. In 2024, we further solidified our position despite facing an evolving market landscape. We made significant strides in audience growth, tech- nology development, and business diversification. Our ability to reach over 450 million monthly visits across our House of Brands is a testament to our efforts to ex- pand our global presence and deliver high-quality sports content. This year has been a tough match, with unexpected hur- dles and a demanding playing field. Our team has been the most important player behind every win, overcom- ing challenges and showing the heart and grit of true champions. The road was not easy—regulatory changes, shifting market dynamics, and other external headwinds tested our endurance—but our team played through the setbacks, adjusted the strategy, and kept their eyes on the goal. Just like in sports, where setbacks can change Our M&A-driven growth strategy has been a key pillar of our expansion, and we continue to see attractive oppor- tunities in the market. However, in the near term, our fo- cus will shift toward driving organic growth, harvesting synergies across the group, share buybacks, and reduc- ing debt to enhance shareholder value. Brazil has been a key driver of our growth over the past 3-4 years, expanding organically from an insignificant revenue contributor to a business generating over 70 mEUR in 2024. The strong cash flow from this growth enabled us to acquire Playmaker Capital, which has Annual report Page 5 the course of a game, our team has shown resilience when facing challenges, and we are ready for our come- back! We also extend our gratitude to our shareholders, part- ners, and stakeholders, who have stood by us as loyal supporters in this journey. Your trust and commitment fuel our drive to keep evolving. We are stepping into 2025 with a strengthened game plan, ready to seize op- portunities and continue building a business that deliv- ers long-term value for all. Jens Bager, Chair of Better Collective Jesper Søgaard, Co-founder & CEO of Better Collective Jesper Søgaard, Co-founder & CEO Jens Bager, Chair of Better Collective Annual report Annual report Page 6 Page 6 2024 highlights Q1 Q2 Better Collective announced the completion of the Playmaker Capital acquisition, making it the second-largest acquisi- tion to date. Better Collective acquired UK sports betting media AceOdds for a total consideration of 42 mEUR implying 4x last twelve months EBITDA. The long-term 2023-2027 financial targets were updated following the acquisition of Playmaker Capital. Revenue CAGR of +20% (unchanged). EBITDA margin before special items of 35-40% (previously 30-40%). Net debt to EBITDA before special items of <3 (unchanged). Following the acquisition of AceOdds, the group’s 2024 full year financial targets were upgraded: Revenue of 395-425 mEUR, up from 390-420 mEUR, implying 21-30% growth. EBITDA of 130-140 mEUR, up from 125-135mEUR, implying 17-26% growth. Net/debt to EBITDA stay below 3x (unchanged). Better Collective raised 10% or approximately 145 mEUR in an accelerated book building process to prepare for future M&A. The demand in the placing was substantial. On May 5, Google activated a new policy focusing on third-party content across a variety of commercial categories. This impacted the rankings and thereby traffic to some of Better Collective’s media partnerships. The North American business was impacted negatively by one specific media partnership affected by the changes, while the Europe & ROW media partnership portfolio saw a positive impact. Consequently, some of Better Collective’s owned and oper- ated sports media portfolio saw an increase in traffic and rankings. As sportsbook partners were looking for new cus- tomer acquisition channels, Better Collective received increased budgets from partners within its Paid Media business, proving the value of a diversified business strategy. Better Collective became included in the Nasdaq Stockholm and Nasdaq Copenhagen Large Cap Index with companies that have a market cap higher than 1 bnEUR. Better Collective hosted its annual HLTV Award Show gathering important people from the Counter Strike community. The show had more than 100K peak viewers and had more than 1.2 million views in total. The Annual General Meeting 2024 was held electronically on April 22, 2024. Due to underperformance from the acquisition of Playmaker HQ, Better Collective, Playmaker HQ’s founders, and for- mer owners agreed to renegotiate and settle the earn out. The initial acquisition price of Playmaker HQ was 54 mUSD of which 15 mUSD was upfront cash. The final price agreed was 23 mUSD; 31 mUSD lower than initially agreed. Better Collective remain very optimistic about the future of the brand with the commercial team being replaced resulting in a ramp up in performance. All future expectations for the brand are intact, however postponed by approximately one year. Annual report Page 7 On June 24, Better Collective announced a share buy-back program for up to 20 mEUR to be executed during the pe- riod 24 June 2024 to 5 September 2024. The purpose of the buy-back program was to cover future obligations relat- ing to acquisitions and LTI programs. Better Collective noted that several international sportsbooks reduced activity in anticipation of the official regulation of the Brazilian market in early 2025. This dynamic affected Better Collective in two ways; I) revenue share income de- clined, and II) a decrease in new depositing customers as partners limited marketing activity in the period leading up to the regulation. Q3 The owned and operated sports media portfolio made up for the decreased performance resulting from Google's May policy focusing on third-party content across a variety of commercial categories, impacting the rankings and thereby audience to some of Better Collective’s media partnerships. Google retracted its plan to phase out third-party cookies, presenting several advantages for Better Collective. Primar- ily, the core performance marketing operations can maintain established tracking methods, thereby mitigating associ- ated risks and keeping business as usual. Further, the rollout of our in-house AdTech platform Advantage can be more seamless, as Better Collective can integrate zero, first, second, and now also third-party data to construct and segment its audiences more effectively. In Q3, Better Collective acquired a smaller social media asset in North America for a consideration of 7 mUSD. Better Collective underwent continuous work to implement the AdTech platform, AdVantage, on larger brands, re- maining committed to the development of the platform and the long-term opportunities it entails within its House of Brands. On July 5, Better Collective reestablished its three-year financing agreement with Nordea, Nykredit Bank, and Citibank with a total committed facility of 319 mEUR and a new 100 mEUR accordion option. Better Collective experienced an overall partner activity decrease in North America. But continued to see increased success in collaborations with partners working on revenue share contracts, building sustainable long-term growth, however deferring revenue and earnings. In response to the market changes, management initiated a restructuring of operations to ensure continued sustainability and profitability in North America whilst continuing to build value around revenue share. On September 6, Better Collective’s Board of Directors resolved to extend the buy-back program so that it would be executed until and including November 27, 2024. With the extension, the intention remains to acquire up to 20mEUR. Initiated two years ago, the US transition from upfront payments to revenue share income was estimated to have re- sulted in an accumulated Customer Lifetime Value (CLV) database of more than 155 mEUR, with a portion already rec- ognized as revenue in hybrid deals. Leaving approximately an estimated more than 120 mEUR to be recognized in the future. It was further announced that the group in 2025 expects to recognize around 10-15 mEUR in pure revenue share income in the US market and expects this to increase in the future. In navigating the new transition and adapting to the US market’s shifting landscape management decided to aim for the North American business to deliver a minimum 20% reported EBITDA margin, and more than 35% margin when incorporating the continued revenue-share build up. Annual report Page 8 • Sportsbooks expect customer churn, due to customers must re-activate their accounts and the increased compe- tition, attracting customers. This is estimated to impact Better Collective’s revenue share income in the market by around 20 mEUR – 30 mEUR in 2025. However, remaining players are expected to be of higher quality with higher CLVs. Q4 On October 10, Better Collective appointed its Nomination committee as per Regulatory Release no. 50. On October 24, Better Collective adjusted its financial targets for 2024 following an assessment of preliminary Q3 per- formance, including the first six weeks of high season in the US market. After recent large acquisitions and the market outlook, Better Collective also announced the implementation of a streamlining process to optimize the organization accordingly. Over the past two years, Better Collective has expanded its localization efforts by building a team of over 100 employ- ees in Brazil to meet all onshoring requirements under the regulation. The market has launched with some sportsbooks being granted licenses, while the market is in low season. The activity is expected to pick up from March when the high season for sports begins. Following large acquisitions and a changing market outlook, Better Collective announced an efficiency program of more than 50 mEUR. At the end of October, Better Collective made the difficult decision to lay off more than 300 em- ployees, representing more than 15% of the workforce, and certain other operating costs were reduced to lower levels. Events after the close On February 6, Better Collective announced its preliminary headline numbers, revealing a 13% increase in total reve- nue, reaching 96 mEUR, despite a 2% decline in organic growth. Recurring revenue saw a robust 28% growth, amount- ing to 63 mEUR, fueled by organic revenue share expansion and the strategic acquisitions of Playmaker Capital and AceOdds. EBITDA, excluding special items, rose by 14% to 34 mEUR, surpassing the recent guidance issued alongside the October downgrade. This achievement was mainly due to revenues landing at the higher end of the projected range and a faster-than-anticipated implementation of our cost efficiency program, resulting in a quarterly EBITDA margin of 35%. Better Collective’s Board and Executive Management propose to the Annual General Meeting that the 1.8% holding of own shares as of December 31, 2024, be canceled. Better Collective has decided to launch a new share buyback of 10 mEUR. Better Collective’s leading Esport community, HLTV, hosted its annual HLTV Award Show for the fourth consecutive year. The event brought together the global Counter-Strike community to honor and celebrate the best and brightest in the world of CS 2. The awards attracted 280k peak viewers (+179% YoY) and achieved 4.3 million total views (+257% YoY). HLTV is the premier Counter-Strike platform globally, offering news, live-streaming, statistics, on-site tourna- ment coverage, and more. On average, the HLTV website has over 270 million monthly pageviews, and the brand has nearly two million followers across social media platforms. Better Collective generated around 70 mEUR in annualized revenues from Brazil, equivalent to 19% of group revenues (mostly from revenue share income), and delivered 407k New Depositing Customers (NDCs) of which 82% were on revenue share contracts. The number of NDCs were down 15% due to the development in Brazil. However, the Brazilian market has gone live under new local gambling regulation on January 1, 2025, and Better Col- lective expects a negative impact on revenue of around 35 mEUR – 50 mEUR due to the following: • Estimated tax (GGR) and costs on NGR is expected at 26% to apply and will expectedly affect revenue negatively by 15 mEUR – 20 mEUR in 2025. Annual report Page 9 Five-year summary tEUR 2024 2023 2022 2021 2020 tEUR 2024 2023 2022 2021 2020 Balance sheet Balance Sheet Total Equity Income statements Revenue Recurring revenue Revenue Growth (%) Organic Revenue Growth (%) 1,172,119 685,929 110,472 73,235 937,862 435,273 105,812 103,493 221,133 785,229 412,917 95,025 597,379 344,848 62,898 55,452 95,290 315,065 162,542 48,555 26,312 51,030 371,487 230,735 14% 326,686 191,118 21% 269,297 127,573 52% 177,051 79,879 94% 91,186 59,889 35% Current assets Current liabilities Net interest bearing debt 65,068 -2% 13% 34% 29% 8% 238,953 177,879 Operating profit before depreciation, amortization, and special items (EBITDA before special items) Cashflow 113,403 111,080 85,075 55,775 38,152 Cash flow from operations before special items Cash flow from operations 101,009 82,619 119,384 114,639 - 5,143 69,816 68,423 51,204 45,207 38,321 37,696 - 460 Operating profit before depreciation and amortization (EBITDA) 102,517 6,990 109,132 3,958 85,021 2,321 39,030 1,764 38,272 1,548 Investments in tangible assets Cash flow from investment activities Cash flow from financing activities - 3,942 - 1,788 - 285 Depreciation Operating profit before amortization and special items (EBITA before special items) - 154,829 99,154 - 106,248 29,334 - 112,632 65,737 - 219,219 188,759 - 68,090 46,790 106,413 - 10,886 95,527 107,122 - 1,948 105,174 24,283 82,754 - 54 54,011 - 16,746 37,265 8,516 36,604 120 Special items, net Financial ratios Operating profit before depreciation, amortization (EBITDA) and special items margin (%) Operating profit before amortization (EBITA) Amortization and impairment 82,700 12,347 36,724 6,235 34,080 31% 28% 17% 34% 33% 25% 32% 32% 26% 32% 22% 16% 42% 42% 33% Operating profit before special items (EBIT before special items) Operating profit before amortization margin (EBITDA) (%) 72,334 61,447 - 18,583 42,865 34,014 0.55 82,839 80,891 - 22,881 58,010 39,835 0.74 70,407 70,353 - 5,389 64,964 48,075 0.88 45,495 28,749 - 2,522 26,227 17,292 0.34 30,369 30,489 - 1,778 28,712 21,927 0.47 Operating profit margin (%) Publishing segment - EBITDA before special items margin (%) Operating profit (EBIT) Result of financial items Profit before tax 32% 37% 38% 43% 48% Paid media segment - EBITDA before special items margin (%) Profit after tax Earnings per share (in EUR) Diluted earnings per share (in EUR) 27% 2.11 1.51 59% 29% 1.99 1.02 16% 2.09 1.46 53% 8% 1.71 1.13 58% 92% 635 858 16% 1.34 1.85 52% 99% 420 635 Net interest bearing debt / EBITDA before special items Liquidity ratio 0.53 0.70 0.85 0.33 0.45 Equity to assets ratio (%) 46% Cash conversion rate before special items (%) Average number of full-time employees NDCs (thousand) 86% 1,773 1,754 103% 1,252 1,916 80% 878 1,683 For definitions of terminology, please refer to the section on page 179. Annual report Page 10 Strategy and performance Better Collective’s clear vision and strong strategy 13 17 18 19 Better Collective’s business segments Business segments review 2024 financial performance Annual report Annual report Page 11 Page 11 Our vision Our vision is to become the leading digital sports media group; Better Collective owns and operates global and national sports media, sports betting media, and Esports & gaming communities. We are on a mission to excite fans and foster passionate communities worldwide. Our House of Brands attracts more than 450 million monthly visits, while our combined offerings include everything from quality sports content, communities, data insights, and apps, to video content, podcast, and innovative technology. Annual report Annual report Page 12 Page 12 across major regions and positioning us to serve an ex- panding global audience. thrives on the expertise and dedication of skilled profes- sionals across various business areas, including content creation, paid media, conversion rate optimization (CRO), and search engine optimization (SEO). Our workforce drives the innovation, growth, and excellence that define our group. of the World account for 71%, demonstrating a balanced and diversified revenue stream across regions. The re- sources underpinning these activities include a work- force of over 1,500 FTEs, representing more than 45 na- tionalities. This diversity fosters creativity and innova- tion while driving the continuous improvement of our offerings. Distribution channels range from proprietary platforms to collaborative ventures with media organi- zations, ensuring extensive market penetration and cus- tomer engagement. Better Collective’s clear vision and strong strategy At the heart of Better Collective’s strategy is our com- mitment to maintaining the trust of our stakeholders, in- cluding our users, employees, customers, partners, reg- ulators, investors, and the local communities in which we operate. This trust is upheld through a strict focus on regulated markets, where we collaborate with licensed sportsbooks to ensure compliance with local laws and ethical standards. Our operational framework focuses on safer gambling, reinforced by innovations like Mind- way AI, a subsidiary designing tools to promote safer betting behavior. This alignment of business perfor- mance with user protection not only strengthens our in- dustry leadership but also ensures long-term resilience. Becoming the leading digital Downstream, our operations center on creating and dis- seminating diverse content formats, including written articles, visual media, and audio productions such as podcasts. This journalism and video creation of sports content are published across Better Collective-owned brands, offering sports fans a trusted and engaging ex- perience. The key here is to continuously invest in the strong brands, to ensure future sustainability. Addition- ally, our activities span across media partnerships, our publishing and our paid media business while also ex- tending to advertising placements on third-party sports media platforms. These efforts amplify our reach and contribute to revenue growth while maintaining ethical and sustainable advertising practices. sports media group Better Collective is a global leader in digital sports me- dia, driven by a mission to excite sports fans through en- gaging content and foster passionate communities worldwide. With an interconnected House of Brands, at- tracting over 450 million monthly visits, our business is built on creating value through engagement, technolog- ical excellence, and strategic partnerships. Our business model is underpinned by a diversified revenue ap- proach, combining affiliate marketing, advertising, sponsorships, and subscription-based services. This dy- namic model has enabled us to expand across signifi- cant markets, including Europe, North America, and South America while tailoring our offerings to meet each region's unique demands and opportunities. Pioneering sustainable value creation and driving growth responsibly Key business relationships with customers such as sportsbooks and advertisers, suppliers, and partners are essential to our strategy and are carefully managed to mitigate risks and seize opportunities. For example, re- lationships with licensed sportsbook operators help safeguard regulatory compliance, minimizing the risk of legal or reputational issues. Conversely, these partner- ships also unlock opportunities to enhance our offerings, diversify revenue streams, and expand into new mar- kets. Inside Better Collective's value chain excellence Better Collective’s value chain is characterized by a comprehensive upstream, operational, and downstream ecosystem that is integral to our position as a global leader within digital sports media. Upstream activities focus on procuring the necessary infrastructure to sup- port our operations, including server capacity, data cen- ters, and IT equipment. These technological assets are foundational to ensuring the seamless hosting, publish- ing, and delivery of high-quality sports content we cre- ate to our global audience. In our own operations, the most critical asset is our people. Better Collective Consumers and end-users form the core of our down- stream value chain, with Better Collective’s platforms attracting over 450 million monthly visits. We prioritize safety and transparency as cornerstones of user experi- ence while providing safer gambling resources and ed- ucational content to promote safer behavior among our audiences. Geographically, North America contributes 29% of the group’s revenue, while Europe and the Rest The scalability and synergy inherent in our operations are core drivers of our success. We optimize audience engagement and revenue generation across diverse channels, supported by a robust technological infra- structure. Strategic acquisitions, including Playmaker Capital, have further extended our reach into key mar- kets like South America, consolidating our leadership Dependencies on social and technological resources, such as data analytics and cyber security, are critical to our operations, highlighting the need for ongoing in- vestment in innovation and risk management. Better Annual report Page 13 Collective’s cost structure and revenue streams are transparently reported in line with IFRS 8 requirements, ensuring clarity for stakeholders. Revenue is generated through a balanced mix of affiliate marketing, advertis- ing, sponsorships, and subscription services, which are continually optimized to align with market trends and consumer preferences. The Publishing part of our busi- ness drives revenue through our owned and operated brands, as well as media partnerships, and Esports as- sets. The Paid Media business drives revenue through third party platforms such as Google, to generate traffic and conversion. This part of the business is naturally of lower gross margin, given the upfront payment to an ex- ternal party. environmentally responsible practices to minimize our footprint, supporting local communities through educa- tional initiatives, and fostering a diverse and inclusive workforce. Our commitment to data privacy further un- derscores our dedication to providing a safe and trust- worthy environment for users. The sustainability-related goals include reinforcing responsible gambling measures such as Mindway AI’s software solutions, en- hancing ethical advertising partnerships, and fostering transparency in our partnerships with licensed sports- books in regulated markets and with advertisers. These projects are integral to ensuring that Better Collective remains a responsible digital sports media leader while addressing sustainability reporting requirements. Potential impacts, risks, and opportunities are continu- ously assessed across our sectors, ensuring our business model and value chain remain adaptable to changes in the global landscape. For example, the increasing digi- talization of sports media presents significant opportu- nities for growth, while regulatory changes in certain markets underscore the importance of maintaining compliance and ethical standards. By proactively ad- dressing these factors, Better Collective is well-posi- tioned to navigate the challenges and capitalize on the opportunities that define the industry. As we look to the future, Better Collective remains fo- cused on growth, innovation, and sustainability. By lev- eraging our technological expertise, expanding our au- dience base, and deepening strategic partnerships, we are paving the way toward our vision of becoming the leading digital sports media group. In doing so, we con- tinue to deliver value to all stakeholders while upholding our responsibility to conduct business ethically and sus- tainably. Sustainability is seamlessly integrated into our opera- tions, ensuring alignment with global priorities and stakeholder expectations. This includes implementing Annual report Annual report Page 14 Page 14 Annual report Page 15 Annual report Page 16 Better Collective’s business segments Europe & RoW Publishing Paid Media North America contributes contributes contributes contributes 85% 74% 26% 15% of the group’s EBITDA before special items of the group’s EBITDA before special items of the group’s EBITDA before special items of the group’s EBITDA before special items Europe & RoW Publishing Paid Media North America The Europe and Rest of the World (RoW) busi- ness encompasses all markets outside North America. This includes a mix of mature legacy markets in Europe and high-growth markets like South America. Our business segment also features leading Esports communities such as HLTV and FUTBIN. Due to the established na- ture of the European markets, recurring reve- nue is a significant component, already repre- senting 60% of our revenue in this region The Publishing business includes revenue from Better Collective’s proprietary own and operated sports media platforms as well as media partnerships. The audience for this segment is mostly attracted direct or through organic search results. The Paid Media business includes revenue efforts in paid advertising on search plat- forms like Google and Bing, as well as ad- vertising on third party sports media. Given the upfront payment to advertise on third party platforms the gross margin is lower than in the Publishing business. The US and Canadian markets have established regulatory frameworks, with US state regula- tions starting in 2018. Initially, revenue primar- ily came from one-time payments (CPA). How- ever, beginning in Q3 2022, Better Collective shifted towards a recurring revenue model in the US, which now constitutes ~19% of North American revenue. Annual report Page 17 platforms. With the required upfront payments, its gross margin is generally lower than Publishing, fluctuating with activity levels and revenue-sharing investments. Europe & RoW contributes significantly to recurring rev- enue in this business. Business segments review Revenue reached 264 mEUR, reflecting a 21% growth, with 6% organic growth. Revenue share income in- creased by 17% to 160 mEUR, while CPA grew by 10% to 54 mEUR. Both revenue and revenue share income were affected by the slowdown in Brazil. CPM revenue in- creased by 108% to 23 mEUR, driven by the acquisition of Playmaker Capital. Operational profits reached 96 mEUR, marking a 20% increase with a margin of 36%. This segment contributed 71% of the group's total reve- nue and 85% of the total operational profit. In 2023, Better Collective adjusted its reporting seg- ments to distinguish between Europe & RoW and North America, a structure continuing into 2024. Since acquiring the Atemi Group in 2020, Better Collec- tive has prioritized growing the Paid Media business. The strategic shift from pure CPA to revenue share con- tracts, or hybrid revenue models, has increased revenue from revenue share income. Two customer acquisition models are utilized —Publish- ing and Paid Media — each with unique earnings profiles. Consequently, reporting includes separate measure- ments for Revenue, Costs, and Earnings for each model. All financial figures, including historical data, align with this segmentation. In 2024, Paid Media revenue was 107 mEUR, with <1% growth and a 7% decline in organic growth. However, revenue share income rose 28%, while CPA fell 18%, highlighting the shift to revenue share deals. Opera- tional income was 29 mEUR, down 5%, with a 27% mar- gin, impacted by market developments in Brazil and the US. Overall, Paid Media contributed 29% of group reve- nues and 26% of group operational earnings. North America Publishing The North American business achieved revenue of 107 mEUR, with a slight decline of 1%. EBITDA before special items fell 45% to 17 mEUR, with a margin of 16%. North America accounted for 29% of the group's revenue and 15% of its EBITDA. The shift from CPA to recurring reve- nue share is impacting short-term performance but aims to foster sustainable growth. Publishing revenue reached 265 mEUR, a 20% increase driven by acquisitions, but with 0% organic growth due to external changes in the Brazilian and US markets and made up 71% of the group's total revenue in 2024. Costs rose to 180 mEUR, resulting in EBITDA before special items of 84 mEUR, a 5% growth with a 32% margin. Europe & Rest of the World The Europe & Rest of the World (RoW) segment in- cludes all markets outside North America. Within this di- vision, the European markets are considered mature and represent the legacy markets for Better Collective. The portfolio comprises key sports brands in Europe and South America, as well as prominent Esports communi- ties. The long-standing history of revenue sharing in Paid Media The Paid Media business purchases ads on search en- gines, social media, and third-party sports media Annual report Annual report Page 18 Page 18 (2023: 89 mEUR) due to the increase in the average number of employees. Personnel costs include costs related to warrants of 1 mEUR (2023: 3 mEUR). Earnings Net profit 2024 financial performance Net profit after tax was 34 mEUR (2023: 40 mEUR). Earnings per share (EPS) was EUR/share 0.55 versus 0.74 EUR/share in 2023. Operational earnings (EBITDA) before special items in- creased 2% to 113 mEUR (2023: 110 mEUR). The EBITDA margin before special items was 31% (2023: 34%). In- cluding special items, the reported EBITDA was 103 mEUR (2023: 109 mEUR). EBIT before special items de- creased 14% to 72 mEUR (2023: 83 mEUR). Including special items, the reported EBIT was 61 mEUR (2023: 81 mEUR). Other external costs increased 11 mEUR or 38% to 38 mEUR (2023: 27 mEUR) primarily due to other promo- tions costs and increased cost base due to acquisitions. Revenue growth of 14% to 371 mEUR Equity Revenue showed growth versus 2023 of 14% and amounted to 371 mEUR (2023: 327 mEUR). Revenue share accounted for 49% of the revenue with 25% com- ing from CPA, 5% from subscription sales, and 22% from other income. The equity increased to 686 mEUR as per December 31, 2024, from 435 mEUR on December 31, 2023. Besides the net profit of 35 mEUR, the equity has been primarily impacted by the share exchange in connection with the acquisition of Playmaker Capital of 46 mEUR, the acqui- sition and disposal of treasury shares of 20 mEUR and the capital increase in March with 145 mEUR. Depreciation and amortization amounted to 41 mEUR (2023: 28 mEUR), an increase of 13 mEUR compared to 2023. The increase is mainly related to the amortization of intangible assets accounted for as part of the acqui- sitions of Skycon in Q2, 2023 and the acquisitions in H2, 2023 of Playmaker HQ, Digital Sportmedia I Norden AB (the four brands are SvenskaFans.com, Hockeysve- rige.se, Fotbolldirekt.se and Innebandymagazinet.se), Goalmedia Technologia E Marketing Digital (the brand is Torcedores), Tipsbladet as well as the acquisition of Playmaker Capital completed February 6, 2024 and ac- quisition of AceOdds completed May 16, 2024, and new media partnerships entered during 2023 and 2024. Net financial items Net financial costs amounted to 19 mEUR (2023: 23 mEUR) and included net interest, fees relating to bank credit lines, unrealized losses on shares and exchange rate adjustments. Interest expenses amounted to 16 mEUR and included non-payable, calculated interest expenses on certain balance sheet items, 16 mEUR had in total net cash flow effect. Net financial costs include a realized loss of 4 mEUR on Catena Media shares and unrealized net exchange rate loss of 1 mEUR. Cost of 258 mEUR - up 20% The increase in costs compared to 2023 is primarily driven by acquisitions contributing with 59 mEUR in in- creased cost base. Balance sheet Total assets amounted to 1,172 mEUR (2023: 938 mEUR), with an equity of 686 mEUR (2023: 435 mEUR). This cor- responds to an equity to assets ratio of 59% (2023: 46%). The liquidity ratio was 1.51 resulting from current assets of 110 mEUR and current liabilities of 73 mEUR. The ratio of net interest-bearing debt to EBITDA before special items was 2.11. The increase in personnel cost is mainly driven by an increase in average number of employees increasing from an average of 1,252 in 2023 to 1,773 in 2024, where 370 employees joined Better Collective as part of the acquisition of Playmaker Capital. Income tax Special items Better Collective has a tax presence in the places where the Group is incorporated. Income tax amounted to 9 mEUR (2023: 18 mEUR). The Effective Tax Rate was 20.6% (2023: 31.3%) decreasing primarily due to utiliza- tion of tax losses of 2 mEUR from previous years. Special items amounted to an expense of 11 mEUR (2023: 2 mEUR). The net expense of 11 mEUR is primar- ily related to M&A expenses of 2 mEUR and restructur- ing of 9 mEUR. The early settlement of the Playmaker HQ earnout had net-zero effect as impairment of good- will were offset by cancelling earnouts payments. Total direct cost relating to revenue increased by 8 mEUR to 107 mEUR (2023: 99 mEUR) corresponding to an increase of 8%. The increase primarily stems from increased cost related to media partnerships, paid me- dia spending and increased cost base due to acquisi- tions. Personnel cost increased 27% to 113 mEUR 2024 Investments In Q4 of 2023 Better Collective announced the acquisi- tion of Playmaker Capital, which closed on February 6, 2024. This strategic move, with a total purchase price of 111 million EUR, cemented our position as a market Annual report Page 19 leader in South America while reinforcing our North American market presence. Better Collective an- nounced the acquisition of AceOdds on May 16, 2024, for a total consideration of 43 mEUR on a net cash- /debt-free basis. AceOdds is a UK sports betting media brand with its roots in the UK, and this acquisition is poised to enhance Better Collective's presence across the UK, significantly. and a 100 mEUR higher accordion option. By the end of December 2024, capital reserves stood at 102 mEUR consisting of cash of 38 mEUR and unused bank credit facilities of 64 mEUR. Financial performance against original guidance In the 2023 Annual Report, Better Collective provided guidance for 2024, projecting revenue of 390–420 mEUR and EBITDA before special items of 125–135 mEUR. The year concluded with revenue of 371 mEUR and EBITDA of 113 mEUR. The financial results fell below the guided ranges primarily due to a continued slow- down in the Brazilian market ahead of the anticipated legalization of sports betting in 2025, as well as reduced marketing expenditures from partners in the US. In Q3, Better Collective has acquired a smaller social media asset in North America for a consideration of 7 mUSD. Cash flow and financing Cash flow from operations before special items was 101 mEUR (2023: 119 mEUR), with a cash conversion of 86%. The lower cash conversion in the year relates to an in- crease in trade receivables expected to be paid during Q1, 2025. The parent company Better Collective A/S is the parent company of the group. Revenue grew by 31% to 129 mEUR (2023: 99 mEUR). Total costs, including depreciation and amorti- zation, were 116 mEUR (2023: 68 mEUR). Profit after tax was 71 mEUR (2023: 39 mEUR). The change in profit af- ter tax is primarily due to increased income, including revenue and net financials. Total equity ended at 706 mEUR by December 31, 2024 (2023: 443 mEUR). Better Collective A/S completed an offering of new shares through an accelerated book-building process with a subscription price at the market of DKK 189.4 on February 28. Total proceeds from the accelerated book- building process amounted to DKK 1,081.9 million (app. 145 mEUR). On July 5, 2024, Better Collective reestablished its 3- year financing agreement with Nordea, Nykredit Bank and Citibank with a total committed facility of 319 mEUR Annual report Annual report Page 20 Page 20 Disclaimer have full effect of 50 mEUR for the year. All this com- bined means EBITDA before special items is guided flat versus last year. Considering the risks, uncertainties and assumptions as- sociated with forward-looking statements, it is possible that certain future events may not occur. Moreover, for- ward-looking estimates derived from third-party stud- ies may prove to be inaccurate. Actual results, perfor- mance or events may differ materially from those in such statements e.g. due to changes in general eco- nomic conditions, in particular economic conditions in the markets in which the group operates, changes af- fecting interest rate levels, changes affecting currency exchange rates, changes in competition levels, changes in laws and regulations, and occurrence of accidents or environmental damages and systematic delivery fail- ures. We undertake no obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise, except to the extent required by law. 2025 guidance This report contains certain forward-looking statements and opinions. Forward-looking statements are state- ments that do not relate to historical facts and events. Such statements or opinions pertaining to the future, for example wording like; “believes”, “deems”, “estimates”, “anticipates”, “aims’, and “forecasts” or similar expres- sions are intended to identify a statement as forward- looking. This applies to statements and opinions con- cerning the future financial returns, plans and expecta- tions with respect to the business and management of the group, future growth, profitability, general eco- nomic and regulatory environment, and other matters affecting Better Collective. Better Collective’s guidance for 2025 is as follows: • • • • Revenue of 320-350 mEUR Adjusted long-term guidance for 2027 EBITDA before special items of 100-120 mEUR Free cash flow of 55-75 mEUR • Positive organic growth from 2026 • EBITDA-margin before special items for 2027 con- tinued at 35-40% Net debt to EBITDA below 3x 2025 guidance implications Revenue growth will be short-term impacted by the Bra- zilian market regulation. Given the before-mentioned factors in Brazil including taxation and added costs on net gaming revenue as well as expected customer churn, Better Collective estimates between 50-70% de- cline in Brazilian revenue share income short term, which impacts EBITDA for 2025 by estimated 35-50 mEUR. H1 2024 further provides a tough comparison with a 20 mEUR EBITDA before special items effect stemming from a higher US marketing activity from partners last year, the state launch in North Carolina as well as the European Championships in Soccer. On the other hand, Better Collective expects absolute growth in its European, Esport, South America ex Brazil and Ca- nadian businesses, as well as US growing from its lower baseline. This is estimated to give an EBITDA before special items growth boost of between 20 to 40 mEUR during 2025. Lastly, the cost efficiency program will • • Continued strong cash conversion Net debt to EBITDA below 3x Forward-looking statements are based on current esti- mates and assumptions made according to the best of the group’s knowledge. These statements are inherently associated with both known and unknown risks, uncer- tainties, and other factors that could cause the results, including the group’s cash flow, financial condition, and operations, to differ materially from the results, or fail to meet expectations expressly or implicitly, assumed or described in those statements or to turn out to be less favorable than the results expressly or implicitly as- sumed or described in those statements. Better Collec- tive can give no assurance regarding the future accuracy of the opinions set forth herein or as to the actual occur- rence of any predicted developments and/or targets. 2027 guidance assumptions When launching the long-term guidance in 2023, Better Collective included both organic growth and M&A. Given the changing market conditions and share price devel- opment Better Collective will likely consider other capi- tal allocation measures in the near-term such as bring- ing down debt and share buybacks. This consideration combined with the challenges in the US and Brazilian markets make the company adjust its guidance to focus on organic growth. Annual report Page 21 Corporate matters Better Collective’s corporate governance Remuneration to the Board of Directors and Executive Management 23 30 32 34 36 39 40 Internal controls Risk management Board of Directors Executive Management The BETCO share and shareholders Annual report Annual report Page 22 Page 22 Copenhagen Rulebook, the Swedish Securities Council’s good practices in the stock market, the Swedish Code of Corporate Governance and Better Collective’s guide- lines, which include the Articles of Association, various policies, and other guidelines. Better Collective’s corporate governance Better Collective A/S is a Danish public limited liability company governed by the provisions of the Danish Companies Act. Our registered office and headquarters are in Copenhagen, Denmark. Better Collective has been listed on Nasdaq Stockholm since June 8, 2018, and on Nasdaq Copenhagen since November 17, 2023. Following the dual listing on Nasdaq Stockholm and Nasdaq Copenhagen, Better Collective has resolved to comply with the Swedish Code instead of the Danish Recommendations on Corporate Governance. The main corporate laws and rules on governance relevant for shareholders in a Danish public limited liability company listed on Nasdaq Stockholm and complying with the Code are largely materially like the corresponding Swe- dish rules that would apply to a Swedish public limited liability company under the same circumstances. Corporate governance aims to ensure that our company is run sustainably, responsibly, and as efficiently as pos- sible. In Better Collective, good corporate governance is about earning the confidence of shareholders, business partners, and legislators by creating transparency in de- cision-making and business processes. A well-defined and structured distribution of roles and areas of respon- sibilities between shareholders, the Board, and the Ex- ecutive Management secures efficiency at all levels. Par- ticularly, it allows the management team to focus on business development and, thereby, the creation of shareholder value. The Board of Directors serves as a highly qualified dialogue partner for the management team, supporting the outlined growth strategy and se- curing a tight risk management setup and optimal capi- tal structure. The group’s corporate governance is based on applicable Danish legislation and other exter- nal rules and instructions, including the Danish Compa- nies Act, Nasdaq Stockholm’s Rulebook, Nasdaq Annual report Page 23 relations, a tax policy, and contingency procedures in case of a public takeover of the company. Such recom- mendations are not included in the Code. However, Bet- ter Collective has adopted an information policy that governs both internal and external communications, in- cluding in relation to investors. recommendations. However, to be considered inde- pendent, a Board member should not be a representa- tive of or be associated with a controlling shareholder. elected Committee members, and the tasks carried out are in line with the Recommendations of the Code. Cross-listing and main differences As a dual-listed company on Nasdaq Stockholm and Nasdaq Copenhagen, Better Collective is required to provide an overview of the main differences between the Swedish Code and the Danish Recommendations each year. Management remuneration Chair of the Board The Recommendations contain provisions relating to management remuneration criteria, Board compensa- tion, and incentive programs. The Code stipulates that the Chair of the Board shall be elected by the general meeting. This is not the case in a Danish context. Further, the specific tasks of the Chair are more detailed in the Code. However, Danish practice is in line with the tasks and responsibilities of the Code. The Recommendations stipulate that a deputy Chair should be elected, which is not included in the Code. Procedures and tasks of the Board of Directors The Code does not include equivalent recommendations as the Swedish Corporate Governance Board has issued the separate “Rules on Remuneration of the Board of Di- rectors and Executive Management and on Incentive Programs” (the “Remuneration Rules”). The Remunera- tion Rules came into force on 1 January 2021 and contain extensive provisions on remuneration to the Board of Directors, executive management, and incentive pro- grams. However, the Remuneration Rules only apply to Swedish companies whose shares are admitted to trad- ing on a Swedish-regulated market (and to some extent companies whose shares are traded on other trading platforms) and are therefore not formally applicable to Better Collective. Shareholder engagement Participation in daily management Election of Chair of the Annual General Meeting (AGM) According to the Recommendations, any participation by a member of the Board of Directors in the daily man- agement of Better Collective must be approved by the Board and publicly disclosed. No equivalent recommen- dation is a part of the Code. However, none of the mem- bers of the Board of Directors currently participate in the daily management of Better Collective. The Code stipulates the Chair of the AGM shall be ap- pointed by the Nomination Committee. In a Danish con- text, the Board of Directors usually appoints a Chair of the general meeting, which is not regulated in the Rec- ommendations. Board Committees Both the Code and the Recommendations stipulate that a company should have an Audit Committee, a Remu- neration Committee, and a Nomination Committee. The main difference between the Code and the Recommen- dations is that pursuant to the Code, a Nomination Com- mittee is not a Board Committee but consists of mem- bers elected directly by the shareholders. Whereas pur- suant to the Recommendations, the Nomination Com- mittee is a Board Committee elected by and among members of the Board of Directors. The tasks of the Nomination Committee in a Swedish context are also more comprehensive than those of the Nomination Committee in a Danish context. Better Collective follows the Swedish practice pursuant to the Code. Accordingly, the Nomination Committee consists of shareholder- Minutes of the Annual General Meeting Board composition and Board committees The Code recommends that a shareholder independent of the company and its Board of Directors is appointed to verify and sign the minutes of general meetings. Such practice does not exist in Denmark, and the minutes are approved and signed by the Chair of the general meet- ing following Danish Company Law. Incorporation by reference of disclosure requirements ESRS 2, GOV-1, 19, on the board composition and board committees. Independence of Board members The Code distinguishes between Board members’ inde- pendence from Better Collective and its executive man- agement and independence from the group´s major shareholders in two separate recommendations. Inde- pendence from major shareholders is not a part of the Policies According to the Recommendations, listed companies are to adopt specific policies and procedures, such as policies regarding communication and investor Annual report Page 24 amendments to the Better Collective’s Articles of Asso- ciation, approval of the annual report, appropriation of the group’s profit or loss (including distribution of any dividends), resolutions to discharge the members of the Board of Directors and the executive management from liability, the appointment and removal of members of the Board of Directors and auditors and remuneration for the Board of Directors and auditors. Other matters transacted at the meeting may include matters that, ac- cording to the Articles of Association or the Danish Companies Act, must be submitted to the general meet- ing. shareholders shall receive written notice of the general meetings. The share and shareholders Better Collective A/S was listed on Nasdaq Stockholm on June 8, 2018. As of November 17, 2023, Better Collec- tive is dual-listed on Nasdaq Copenhagen. The number of shares outstanding on December 31, 2024, was 63,076,627. Each share entitles the holder to one vote. The number of shareholders on December 31, 2024, was 5,433, which is an increase of 13% from the 4,821 share- holders on December 31, 2023. The largest shareholders on December 31, 2024, were J. Søgaard Holding ApS and Chr Dam Holding ApS (the Cofounders of Better Collec- tive) with 10,671,179 shares each and each representing 16.92% of the votes and share capital in the company (33.84% in total). Further information on the Better Col- lective share and shareholders is available in the section “The BETCO share and shareholders” on page 40 as well as on the group’s website. Better Collective complies with the Swedish Code of Corporate Governance with the following exceptions Extraordinary general meetings must be held upon re- quest from the Board of Directors or the auditor elected by the general meeting. In addition, shareholders that individually or collectively hold ten percent or more of the share capital can make a written request to the Board of Directors that an extraordinary general meet- ing be held to resolve a specific matter. Such extraordi- nary general meetings must be convened within two weeks of the Board of Directors’ receipt of a request to that effect. As stipulated in Better Collective’s Articles of Asso- ciation, the Board of Directors appoint the meeting Chair for the AGM instead of letting the Nomination Committee propose a meeting Chair. The Articles also stipulate that the meeting Chair approves the AGM minutes instead of letting an AGM participant that is not a member of the Board or an employee of the company approve the minutes of the meet- ing. Time and place The Annual General Meeting (AGM) must be held at a date that allows sufficient time to send the Danish Busi- ness Authority a copy of the audited and adopted an- nual report within four months of the end of the financial year. In addition to the AGM, extraordinary general meetings may be convened and held when required. Ac- cording to Better Collective Articles of Association, gen- eral meetings must be held in greater Copenhagen. The notice to convene a general meeting must be made in the form and substance for public limited liability companies admitted to trading on a regulated market as stipulated in the Danish Companies Act. The notice must also specify the time and place of the general meeting and contain the agenda of the business to be addressed at the general meeting. If an amendment to the group’s Articles of Association is to be resolved at a general meeting, the complete proposal must be included in the notice. The specific wording must be set out in the no- tice for certain material amendments. As regards the AGM, the Company must announce the date for the meeting and the deadline for any shareholder proposals no later than eight weeks before the scheduled date for the AGM. The respective reports on corporate governance and sustainability do not include a part of the audi- tor’s report covering the specific reports, as these subjects are not individually addressed in the audi- tor’s report. These deviations are due to differ- ences between Danish and Swedish laws and prac- tices. General meeting According to the Danish Companies Act, the general meeting is the group’s superior decision-making body. The general meeting may resolve every issue for Better Collective that does not specifically fall within the scope of the exclusive powers of another corporate body. For example, the power to appoint executive management falls within the scope of the Board of Directors in limited liability companies that are managed by the Board of Di- rectors. At the general meeting, the shareholders exer- cise their voting right on key issues, such as Notice According to Better Collective’s Articles of Association, general meetings must be convened by the Board of Di- rectors, who must give written notice no earlier than five weeks and no later than three weeks before the general meeting. According to the Danish Companies Act, no- tices convening general meetings shall be made public on the group’s corporate website. If requested, Annual report Page 25 Right to attend general meetings Electronic general meeting (for example resolutions to reduce shareholder rights to receive dividends or to restrict the transferability of the shares) or the group’s Articles of Association. Share- holders who wish to have a specific matter brought in before the general meeting must submit a written re- quest to the group’s Board of Directors no later than six weeks before the general meeting. If the request is re- ceived less than six weeks before the general meeting date, the Board of Directors must decide whether the request has been made with enough time for the issues to be included on the agenda. On August 31, 2024, the two largest shareholders were Chr. Dam Holding and J. Søgaard Holding. Following the shareholders’ decision, the Nomination Committee was appointed and is composed of four members in total: A shareholder’s right to attend a general meeting and vote on their shares is determined based on the shares held by the shareholder at the registration date. The date of registration is one week before the general meeting is held. The holding of each shareholder is based on the number of shares held by that shareholder as registered in the group’s share register maintained by Euroclear Sweden, as well as any notifications of owner- ship received by Better Collective for the purpose of registration in the share register, but not yet registered. To attend the general meeting, a shareholder must, in addition to those mentioned above, also notify Better Collective of attendance no later than three days before the date of the general meeting, as stipulated by Better Collective’s Articles of Association. Shareholders may attend general meetings in person, through a proxy, or by postal vote and may be accompanied by an advisor. All attending shareholders are entitled to speak at gen- eral meetings. The Board of Directors is authorized to decide that gen- eral meetings are held as completely electronic general meetings without physical attendance or partially elec- tronic meetings. • • • • Søren Jørgensen, Chair, appointed by Chr. Dam Holding Annual General Meeting (AGM) 2025 The AGM 2025 will be held on April 22, 2024, at 4:00 p.m. CET. For more information, please see the section on the AGM on Better Collective’s corporate website. Troels Bisgaard Vig, appointed by J. Søgaard Holding Anders Lund, appointed by BLS Capital Fonds- mæglerselskab A/S Nomination Committee Jens Bager, Chair of the Board of Directors, Better Collective General meeting 2024 According to the Code, the group must have a Nomina- tion Committee, the duties of which must include the preparation and drafting of proposals regarding the election of members of the Board of Directors, the Chair of the Board of Directors, the Chair of the general meet- ing, and auditors. In addition, the Nomination Commit- tee shall propose fees for Board Members and the Audit Committee. The group’s Articles of Association hold in- structions and rules of procedure for the Nomination Committee, according to which the Nomination Com- mittee is to have at least three members representing the three largest shareholders by the end of August, to- gether with the Chair of the Board of Directors. The names of the members of the Nomination Committee must be published by Better Collective no later than six months before the AGM. The Annual General Meeting (AGM) 2024 was held on April 22, 2024, and approved the 2023 annual report, discharged the Board and executive management, re- elected seven out of seven Board members, elected Vice Chair of the Board, and re-elected the current auditor. The shareholders further approved the proposals from the Board of Directors to authorize the Board of Direc- tors to increase the group’s share capital without pre- emption rights for the existing shareholders and to au- thorize the Board of Directors to acquire treasury shares. Also approved were more minor amendments to the article of association, as well as adopting an indem- nification scheme for the Board of Directors. The share- holders adopted the remuneration report based on an advisory vote. Based on ownership data as of August 31, 2024, the Nomination Committee represented 46% of Better Col- lective's total number of shares. Independence of Nomination Committee The Code requires the majority of the Nomination Com- mittee’s members to be independent of the group and its management and that at least one of these members be independent in terms of voting power in relation to the group’s largest shareholder. All members are inde- pendent of Better Collective and the group’s manage- ment, and all members except for Søren Jørgensen are independent of major shareholders. Voting rights & shareholders initiatives Each share entitles the holder to one vote. All matters addressed at the general meeting must be decided by a simple majority vote unless otherwise stipulated by the Danish Companies Act or Better Collective’s Articles of Association. A resolution to amend the Articles of Asso- ciation requires that no less than two-thirds of the votes cast, as well as the share capital represented at the gen- eral meeting, vote in favor of the resolution unless a larger majority is required by the Danish Companies Act Annual report Page 26 Nomination Committee meeting with Board members Our Board of Directors supervises the work of Executive Management and is responsible for the overall and stra- tegic management and proper organization of Better Collective’s activities. The Board has the ultimate re- sponsibility for reviewing, monitoring, and guiding the strategy of Better Collective, as well as its conduct. Our Board members provide constructive challenges, strate- gic guidance, and specialist advice, bringing their di- verse experience to discussions and decision-making. The Board has overall accountability for the manage- ment and guidance of impacts, risks, and opportunities, including those associated with aspects of sustainabil- ity, such as operating a compliant business, promoting safer gambling, implementing socially responsible con- duct, environmental responsibility, and ethical behavior. Sustainability priorities are an integral part of the deci- sion-making governance of the Board of Directors, and an update on Better Collective’s sustainability conducts and progress are presented to them regularly. Each year, the Nomination Committee conducts individ- ual interviews with the Board members leading up to the AGM to supplement the board self-evaluation results. Similarly, any new Board candidates meet with the Nomination Committee. Meetings of the Nomination Committee The Nomination Committee has held four meetings ahead of the AGM 2025. No fees have been paid for work on the Committee. Board of Directors After the general meeting, our Board of Directors is the Better Collective group's most superior decision-making body. The duties of the Board are set forth in the Danish Companies Act, our Articles of Association, the Code, and the written rules of procedure adopted by the Board of Directors, which are revised annually. The rules of procedure regulate, inter alia, the practices of the Board of Directors, tasks, decision-making within the group, the Board of Directors’ meeting agenda, the Chair’s du- ties, and allocation of responsibilities between the Board of Directors and the Executive management. Rules of procedure for Executive Management, including instruc- tion for financial reporting and sustainability reporting to the Board of Directors, are also adopted by the Board of Directors. AGM. According to the group’s Articles of Association, the Board of Directors shall consist of no less than three and no more than seven Board members. Currently, our Board of Directors is composed of seven ordinary Board members: Jens Bager (Chair), Todd Dunlap, Therese Hillman (Vice Chair), Britt Boeskov, René Rechtman, Leif Nørgaard, and Petra von Rohr. The Board attended Nasdaq’s stock market training course before the listing in 2018. Todd Dunlap and Britt Boeskov received Nasdaq training after joining the Board. she cannot be considered independent. The composi- tion of the Board is intended to ensure relevant and complementary competencies and diversity. This ap- proach is instrumental in supporting Better Collective’s strategic goals and vision while ensuring well-consid- ered, diverse, and judicious decision-making. Currently, the Board of Directors comprises only professional members (ESRS 2 GOV-1). Our Board meets according to a predetermined annual schedule, with at least five ordinary Board meetings be- tween each Annual General Meeting (AGM). In addition to these meetings, extraordinary meetings can be con- vened to process matters that cannot be referred to any of the ordinary meetings. In 2024, 8 meetings were held. See our Board and Executive members’ CVs on page 36-39. 86% of the Board members are regarded as independ- ent. As Britt Boeskov, within the past five years, has been a senior employee in the Better Collective, with her role as SVP of Strategy ending in September of 2022, Evaluation of Board performance Composition of the Board The Board of Directors regularly evaluates its work through a structured process. The Chair is responsible for evaluating and presenting the results to the The members of the Board of Directors are elected an- nually at the AGM for the period until the end of the next Annual report Page 27 Nomination Committee. In 2024, an external manage- ment consultancy assessed the Board’s work, including the collaboration with Executive Management. The as- sessment was based on a questionnaire. The question- naire is combined with personal interviews with each Board and Executive Management member every other year. The evaluation was presented to and discussed by the Board and, subsequently, the Nomination Commit- tee. In addition, the Nomination Committee conducted individual interviews with the Board members leading up to the AGM. The overall conclusion was that the Board’s performance and efficiency were satisfactory and had a well-balanced mix of competencies. The Audit Committee’s role includes overseeing the in- tegrity of the financial and sustainability reporting, mon- itoring the group’s financial position as well as the effec- tiveness of the group’s internal control and risk manage- ment, being informed about the audit of the annual re- port including the sustainability statement and the con- solidated financial statements, to monitor the quality of the external audit, to review and monitor the auditor’s impartiality and independence and to monitor the group’s compliance with law and regulations related to financial and sustainability-related matters. As such, also consulting the Board of Directors on environmental, social, and governance decisions, including identifying and assessing material IROs and integrating results into governance processes and controls. These structures aim to facilitate the effective management of Better Col- lective's risks and uphold high standards of business conduct. The Audit Committee has an annual work plan and held five meetings in 2024. and preparation of the Remuneration report. The Remu- neration Committee also monitors and evaluates ongo- ing and completed programs for variable remuneration to the group’s management and monitors and evaluates the implementation of the guidelines for remuneration to the Executive management, which the Annual Gen- eral Meeting (AGM) has adopted. The Remuneration Committee has an annual work plan and held three meetings in 2024. The Remuneration Committee is, among other things, also responsible for incentive schemes and remuneration, including those related to sustainability. maintains adequate accounting records and procedures, that the Board of Directors’ resolutions are implemented in the group's daily management, that the Board of Di- rectors is up to date on all matters of importance to the group, and that the day-to-day management of Better Collective is carried out. Furthermore, Better Collective has an SVP and VP team of two women and nine men. The team members are re- sponsible for the day-to-day operations of their respec- tive business areas and serve as part of Better Collec- tive’s overall leadership. Selected members are also part of the Better Collective Sustainability Board. More information can be found in our Remuneration report. Read more about management responsibilities as re- lated to sustainability and oversight of IROs on page 45. Board Committees The Board of Directors has established two committees, consisting of members appointed by and among the members of the Board of Directors: The Audit Commit- tee and the Remuneration Committee. The Board of Di- rectors has adopted rules of procedure for both com- mittees. Board Committees support the Board of Direc- tors by preparing tasks and making recommendations to the Board of Directors, who, in turn, make final deci- sions on the subjects at hand. Executive management The Board of Directors is responsible for appointing and removing the members of the Executive Management, which consists of CEO and co-founder Jesper Søgaard, CFO Flemming Pedersen, and COO and co-founder Christian Kirk Rasmussen. The Danish Companies Act governs the duties and responsibilities of the Executive Management, our Articles of Association, the rules of procedures for the executive management adopted by the Board of Directors, other instructions given by the Board, and other applicable laws and regulations. Remuneration Committee The Remuneration Committee comprises Jens Bager (Chair), Todd Dunlap, and Britt Boeskov. The Remuneration Committee’s role is primarily to pre- pare matters regarding remuneration and other terms of employment for the Executive Management and other key employees. Tasks include ensuring compliance with the Remuneration policy, including alignment with sus- tainability commitments when relevant, specific targets, Audit Committee The Audit Committee consists of Leif Nørgaard (Chair), Therese Hillman, and Petra von Rohr, and the committee reports to the Board of Directors. Executive Management’s duties and responsibilities in- clude, inter alia, ensuring that Better Collective Annual report Page 28 Accounting principles Diversity of the Board of Directors and Executive Management distribution under Danish Law, with a 43% female repre- sentation, and thus, met our target and additional diver- sity criteria based on age, nationality, and a broad range of educational and professional backgrounds. Please see the presentation of each board member in “Board of Di- rectors” on pages 36-38. Diversity of the Board of Directors and Executive Management Only the two legal genders (male / female) are considered when calculating the share of the un- derrepresented gender (female) on the Board of Directors. The share of female members on the Board of Directors is found by calculating the per- centage of the number of female board members out of the total number of board members. The Board composition must be appropriate for the group’s operations and development phase and must collectively exhibit diversity regarding gender, age, na- tionality, experience, professional background, and business expertise. The Board has been set with appro- priateness to Better Collective’s operations and devel- opment phase and collectively exhibits diversity regard- ing gender, age, nationality, experience, professional background, and business expertise. The Nomination Committee annually reviews the composition and com- petencies of the Board of Directors. As the responsibility of ensuring diversity on the Board lies with the Nomina- tion Committee, Better Collective does not have a for- malized policy. In 2024, the Board had an equal gender To see a full account of gender distribution in top management, see page 67. The number of female board members is found by counting the number of females on the Board of Directors in the period from the Annual General Meeting in March until the end of the financial year. Board of Directors 2024 0 Number of executive members Number of non-executive members % of underrepresented gender (female) 7 43% Executive Management 2024 3 Executive members % of underrepresented gender (female) 0% Annual report Page 29 For the financial year 2024, the Executive Management received remuneration as set out in note 5 on page 129. Remuneration for Executive Management Remuneration policy Remuneration to the Board of Directors and Executive The current remuneration policy was adopted at the AGM on April 22, 2024, in compliance with sections 139 and 139a in the Danish Companies Act. Remuneration to the Executive Management consists of basic salary, variable remuneration, pension benefits, share-related incentive programs, and other benefits. Management Remuneration to the Board of Executive Management Directors Fees and other remuneration to Board members elected by the general meeting are resolved at the Annual Gen- eral Meeting (AGM). At the AGM held on April 22, 2024, it was resolved that a fee of 141,750 EUR is to be paid to the Chair and 94,500 EUR to the Vice Chair and that 47,250 EUR is to be paid to each of the other Board members. Work in a Board committee is remunerated with 32,200 EUR for a chair position in the Audit Com- mittee and the Remuneration Committee respectively, and an annual remuneration of EUR 16,100 for a regular membership of the Audit Committee and an annual re- muneration of EUR 10,750 for a regular membership of the Remuneration Committee. Following approval at the AGM on April 22, 2024, the Board fee in 2024 was paid in cash. Holdings at beginning of year Bought during the year Sold during the year Holdings at end of the year Market value tEUR Name and position Jesper Søgaard, CEO 10,671,179 311,966 0 0 0 0 0 0 0 0 10,671,179 311,966 102,993 3,011 Flemming Pedersen, CFO Christian Kirk Rasmussen, COO Executive Management, total 10,671,179 21,654,324 10,671,179 21,654,324 102,993 208,996 Board of Directors Holdings at beginning of year Bought during the year Sold during the year Holdings at end of the year Market value tEUR Name and position Jens Bager, Chair 1,001,229 1,375 0 0 0 0 0 0 0 0 0 150,000 851,229 1,375 8,216 13 Therese Hillman, Vice Chair Todd Dunlap, member Leif Nørgaard, member Petra von Rohr, member René Efraim Rechtman, member Britt Ingrid Boeskov, member Board of Directors, total Total 0 475 0 475 5 447,300 22,037 0 0 0 447,300 22,037 4,317 213 For the financial year 2024, the Board of Directors re- ceived remuneration as set out in note 5 on page 129. For additional details, see also the remuneration report for 2024 available from bettercollective.com. 11,000 11,000 106 13,027 0 13,027 126 1,496,443 23,150,767 150,000 150,000 1,346,443 23,000,767 12,995 221,991 * The end-of-year market values are based on the official share prices prevailing December 31, 2024. Annual report Page 30 Better Collective’s Board of Directors and Executive Management members receive a fixed annual remuner- ation. In addition, Executive Management members may receive incentive-based remuneration consisting of share-based rights. Finally, Executive Management members may receive incentive-based remuneration consisting of a cash bonus (including cash bonuses based on development in the share price) on both an ongoing, single-based, and event-based basis. Cash bo- nus schemes for Executive Management may consist of an annual bonus, which the individual Executive Man- agement member can receive if specific targets of the group and other possible personal targets for the rele- vant year are met. The maximum cash bonus shall be equivalent to 100 % of the fixed base salary of each eligible Executive Man- agement participant. A bonus payment is only relevant when conditions and targets have been fully or partly met (as determined by the Board of Directors). If no tar- gets are met, no bonus is paid out. The Board of Direc- tors and the Executive Management shall agree upon targets for the Executive Management. The general meeting will decide whether to establish a long-term in- centive program (LTI program). Better Collective has a bonus scheme that incorporates different ESG KPIs, such as engagement in Safer Gam- bling training, alongside a broader discretionary compo- nent. This was not realized in 2024. Annual report Annual report Page 31 Page 31 financial and sustainability reporting process and moni- toring the effectiveness of the internal control and risk management systems. Executive Management is re- sponsible for maintaining and strengthening the overall control environment, identifying weaknesses, and en- suring necessary steps are taken to mitigate financial and sustainability risks through standardization and process optimization. The Board evaluates the need for an internal audit func- tion annually. In 2024, given the company's size, it was decided that an internal audit function is not currently needed. Better Collective applies an internal “signing & approval” framework to ensure a precise and formalized distribution and limitation of power and to define and govern guidelines for the delegation of authority to sign on behalf of the group. Furthermore, the group has es- tablished an IT governance structure to ensure that all major IT projects support Better Collective’s business goals, and that existing IT systems and resources are used optimally. The group has implemented a whistle- blower scheme providing the ability to quickly and anonymously report any observations of potentially de- structive, unethical, or illegal activities related to Better Collective. the risks related to data accuracy and completeness and working to establish appropriate internal controls through ongoing evaluations in collaboration with inter- nal data owners and external auditors (ESRS 2 GOV-5). Internal controls The Board and Executive Management are responsible for Better Collective’s internal control and risk manage- ment systems concerning the financial and sustainabil- ity reporting process. The main purpose of the internal control is to ensure that the Better Collective’s strate- gies and objectives can be implemented within the busi- ness and that there are adequate systems for monitor- ing and controlling the group’s business and the risks as- sociated with the group and its business and to ensure that the financial and sustainability reporting has been prepared following applicable laws, accounting stand- ards, and other requirements imposed on listed compa- nies. The Danish Financial Statements Act, the Danish Companies Act, and the Code govern the Board of Di- rectors’ internal control and reporting responsibility. In addition, the Board of Directors has implemented an in- ternal control framework based on the COSO standard, which focuses on five areas: control environment, risk assessment, control activities, information, as well as communication and monitoring. Risk assessment Risk assessment includes identifying risks pertaining to the group’s business, assets, financial and sustainability reporting, as well as assessing the impact and probabil- ity of those risks to ensure that actions to reduce or eliminate risks are analyzed and implemented. Within the Board of Directors, the Audit Committee is respon- sible for continuously assessing the group’s risks. Annu- ally, the Executive Management must prepare an inter- nal risk management assessment, which is reported to the Audit Committee and subsequently to the Board of Directors. The risk management assessment shall in- clude a follow-up on previous year’s work and a review of any changes to procedures, control systems, and risk- mitigating actions concerning financial reporting. The CFO and the Finance department annually prepare a re- port for the Audit Committee, including a review of items subject to unique risks and significant accounting estimates and judgments, allowing the Audit Committee to monitor the financial reporting process. The Audit Committee also annually evaluates the need for an in- ternal audit function and makes recommendations to the Board of Directors. Better Collective will align with the Corporate Sustainability Reporting Directive while we acknowledge the absence of some internal controls To create and maintain a functioning control environ- ment, the Board of Directors has adopted several steer- ing documents and policies, including rules of procedure for the Board of Directors, the Board Committees, and the Executive Management with instructions for finan- cial reporting to the Board of Directors. The policies in- clude a tax policy, a treasury policy, an IT policy, an in- formation policy, an insider policy, instructions for in- sider lists, and a code of conduct. Better Collective also has a group accounting manual containing principles, guidelines, and accounting and financial reporting pro- cesses. The division of roles and responsibilities within the rules of procedure for the Board of Directors and the Executive Management aims to facilitate effective man- agement of Better Collective’s risks. The Board of Direc- tors has also established an Audit Committee whose main task is to monitor the effectiveness of the group’s internal control, internal audit, and risk management, to be informed about the audit of the annual report and consolidated financial statements, and to review and monitor the auditor’s impartiality and independence. Better Collective is in the early stages of aligning with the Corporate Sustainability Reporting Directive and acknowledges the absence of developed internal con- trols tailored to sustainability reporting. We are commit- ted to ensuring the accuracy of our sustainability report- ing going forward. Following the initial implementation of the CSRD in 2024, Better Collective has begun devel- oping more robust internal control systems to support the sustainability reporting process. Our approach aims to align sustainability reporting controls with financial reporting structures, ensuring a structured and reliable framework over time. As the scope of sustainability re- porting expands, Better Collective is actively assessing Control environment The group’s internal control framework identifies key processes, inherent risks, and control procedures to re- duce and mitigate financial and sustainability risks and ensure reliable financial and sustainability reporting. The Audit Committee assists the Board in supervising the Annual report Page 32 tailored explicitly to sustainability reporting, which will be implemented going forward. Investor Relations. The principal tasks of the Investor Relations function are to support matters relating to the capital market and to assist in preparing financial and sustainability reports, general meetings, capital market presentations, and other regular reports regarding in- vestor relations activities. including the group’s financial results and position, and information about important events, such as key con- tracts. The Executive Management also reports on such matters at each board meeting. The Board of Directors and the Audit Committee examine the annual and in- terim reports and conduct financial evaluations based on established business plans. The Audit Committee re- views any changes in accounting policies to determine the appropriateness of the accounting policies and fi- nancial disclosure practices. Furthermore, the Audit Committee also reviews the consistency of accounting policies across the group yearly. The efficiency of the key controls is evaluated at regular intervals and re- ported to the Board of Directors, summarizing the per- formed evaluations and accounting for any deviations that must be managed. Control activities Control activities are performed to prevent, detect, and correct any errors and irregularities, including fraud. Control activities are implemented in the group’s sys- tems and procedures, including financial reporting sys- tems and procedures. Control activities include, for ex- ample, physical and electronic preventive access con- trols concerning sensitive and confidential information, preventive IT-based controls limiting access to systems, joint approval procedures for electronic bank transfers, and detective controls. Financial control activities are performed following the group accounting manual, car- ried out monthly, and documented. Better Collective will align with the Corporate Sustainability Reporting Di- rective while we acknowledge the absence of some in- ternal controls tailored explicitly to sustainability re- porting, which will be implemented going forward. As such, our sustainability processes continue to evolve alongside the maturation of the requirements' guidance in this area. External audit The group’s auditor is appointed by the Annual General Meeting (AGM) until the end of the next AGM. The audi- tor audits the financial statement and reviews the sus- tainability statement prepared by the Board of Directors and the Executive management. Following each finan- cial year, the auditor shall submit an audit report to the AGM. The group’s auditor reports observations from the audit and assesses the group’s internal control to the Board of Directors. At the AGM held on April 22, 2024, EY Godkendt Revisionspartnerselskab was re-elected as the group’s auditor, with a new lead auditor, Mikkel Sthyr, taking over from Jan C. Olsen. From 2024 on- wards, Better Collective’s Sustainability Statement is subject to limited assurance. At the AGM, the same in- Information and communication Internal communication to employees occurs, inter alia, through policies, instructions, and blog posts, including a Code of Conduct that serves as an overall guiding prin- ciple for employees in all communication, an Infor- mation policy that governs internal and external infor- mation as well as an Insider policy, which ensures appro- priate handling of insider information that has not yet been disclosed to the public. Additionally, the group’s CEO is responsible for handling matters regarding in- sider information. The group’s investor relations func- tion is led and supervised by the CFO and the VP of dependent auditor, EY Godkendt Revi- sionspartnerselskab, was elected as the auditor for the Sustainability Statements. It was resolved that the fees to the auditor should be paid under usual charging standards and approved invoices. The total fee paid to the group’s auditor for the financial year 2024 amounted to 907 tEUR, all of which regarded the audit assignment. Monitoring Compliance and effectiveness of internal controls are continuously monitored. The Executive Management ensures that the Board of Directors receives continuous reports on the development of the group’s activities, Annual report Page 33 incorporated into the enterprise risk management cali- bration process and reporting. The key group risk and the activities we undertake to mitigate them are de- scribed on the following page. Risk management Better Collective’s management proactively manages risks to support our business's continued growth and protect our people, assets, and reputation. Through our enterprise risk management process, we actively work to identify, monitor, and reduce gross risks to an ac- ceptable level. We continuously monitor inherent risks that could impact our daily operations and strategic risks that may affect our competitive positioning, value creation, and strategy execution. Each risk is described, including current risk mitigation or planned mitigating actions. The subsequent analysis of the identified risks includes an inherent risk evaluation based on two main parameters: probability of occurrence and impact on fu- ture earnings and cash flow. Well-functioning risk man- agement processes are key to maintaining Better Col- lective’s position as a leading digital sports media group. Risk control The risk evaluation is presented to the Board of Direc- tors annually for discussion and any further mitigating actions required. The Audit Committee oversees the on- going risk management process between the annual evaluation. The Board evaluates risk dynamically to ca- ter to this variation in risk impact. The policies and guidelines stipulate how Better Collective’s manage- ment must work with risk management. Sustainability risks are assessed annually, and insights from the 2024 Double Materiality Assessment (DMA) have been Annual report Annual report Page 34 Page 34 AREA RISK DESCRIPTION IMPACT MITIGATION MARKET REGULATION Changes to applicable laws and regulations could lead to an increased compliance burden. Contractual risk and legal risk related to regulatory requirements are critical. Failure to meet or implement regulatory requirements concerning, for instance, data protection, confidentiality agreements, IPR, and fraud constitutes a risk. Higher operational costs, potential fines, legal disputes, and reputational damage. • Gaming regulation provides transparency to the legal framework, which in turn enhances predictability. Better Collective has established a central legal function that, together with the commercial and business development operations, ensures a stage-gate approach when new contracts are made and when new regulations or compliance are being imposed. CYBERCRIME As a digital software company with a core business based on mod- ern information technology, Better Collective’s failure to adequately protect itself against IT risk represents a distinct risk. Cybercrime, including unauthorized access to Better Collective’s network and data, could endanger applications, the infrastructure, and the tech- nical environment stored on Better Collective’s network. Data breaches, operational disruptions, financial loss, and re- duced user trust. • The IT department continuously monitors our infrastructure to identify and minimize risks to our production and performance. Better Collective can quickly restore critical business operations through well-established procedures and solutions. RECRUITMENT AND RETENTION ACQUISITION People remain the key drivers in everything we do at Better Collec- tive since our business is based on specialized expertise and innova- tion. Failure to attract and retain skilled employees may impact in- novation, scalability, and overall performance. • • Better Collective’s values and employer branding are strong tools for talent recruitment. We monitor employee performance and engagement through bi-annual development talks and annual workplace evaluations, including DEI training. With our acquisition focus increasingly turned to larger companies, the overall risk profile of Better Collective has changed, and regula- tory as well as financial risk has increased. Especially when entering new markets by way of M&A and in the following integration with the rest of the group. Financial exposure, integration inefficiencies, regulatory chal- lenges, and underperformance risks. We engage regulatory bodies in the licensing process for newly established entities when applicable. Acquired entities are evaluated, and local governance is established for those of a certain size. Where relevant, we implement dedicated local Finance, HR, and Legal teams for these entities. We aim to implement a performance- based valuation of the acquired entities and to establish local governance/management for entities of a certain size. We implement local Finance, HR, and Legal organizations dedicated to the entities when relevant. SEARCH ENGINE AND RANKING Algorithm updates pose a risk to organic search and ranking possi- bilities and may trigger optimization challenges. The rise of AI chat- bots may impact the way media content is produced and potentially the search behavior of users. Loss of organic traffic, higher marketing costs, and uncertainty in search behavior. • • • As these matters are rapidly changing, we have set up monitoring of the industry, newsletters and experts and have systems in place to share knowledge internally. Based on the monitoring, we are continually testing different tactics and solutions. ESG The primary sustainability risks lie within the social and governance spaces and less within the environment space. Concerns related to problematic gambling and reputational risk from not being per- ceived as acting responsibly or within the regulatory frameworks. Regulatory scrutiny, financial penalties and reputational dam- age. Regulatory compliance is systemized by the legal team. We are educating ourselves on safer gambling, on advertising standards and developing resources to help our users navigate the sports betting industry. Deploying Mindway AI solutions further aids the safer gambling agenda. Transitioning to becoming a media group gradually makes us less dependent on gambling-related activities. FINANCIAL Market risks, foreign exchange fluctuations, interest rate changes, and credit risks may impact financial stability. Revenue volatility, increased borrowing costs, and potential fi- nancial losses. Financial risk management policies described in note 19 of consolidated financial statements. Annual report Page 35 Board of Directors Jens Bager Therese Hillman Britt Boeskov Vice Chair and member of the Audit Committee Born 1980, Swedish First elected to the BoD in 2021 Board member and member of the Remuneration Committee Born 1978, Danish First elected to the BoD in 2023 Chair of the Board and of the Remuneration Committee Born 1959, Danish First elected to the BoD in 2016 Education: M.Sc. in Economics and Business Administration from Copenhagen Business School Education: M.Sc. in Accounting and Finance from the Stockholm School of Eco- nomics with exchange terms at the University of Virginia and the University of North Georgia Education: M.Sc. in Intercultural Communication and Management from Copenha- gen Business School Current assignments: Board member at MAG Interactive, Mindway AI, GAMING1 and Racecourse Media Group; 4see Advice (Principal Owner) Current assignments: Member of the Executive Board of Apto Invest ApS, Apto Advisory ApS, Tandlægen.dk and Symmetry Administration ApS; Impilo AB (In- dustrial Partner), Scantox Holding ApS (Chair), and Marleybones Ltd (Chair) Current assignments: NOD - Network of Design (CEO); Board Chair of String Fur- niture AB, Nordic eTrade AB, Grythyttan Stålmöbler, Kasthall AB, and Sweden Con- cepts AB; Board member of Byarums Bruk, Cooee Design, Wall of Art, and Norling Cavalin Previous assignments: Kindred Group (CEO, Chief Program Officer, COO), Better Collective (SVP of Group Strategy and Execution) Previous assignments: ALK-Abelló A/S (CEO), Ambu A/S (COB), Heatex AB (COB), and Poul Due Jensens Foundation (COB), Chr. Hansen (EVP), and various boards in Denmark, Sweden, and France Special competencies: ESG · Executive leadership · Investor and capital market re- lationships · Industry knowledge · Strategy · Risk Management · Affiliate / aggre- gator · Finance · M&A · US Market · Digital Previous assignments: NetEnt. (Group CEO), Gymgrossisten.com (CEO) Special competencies: ESG · Executive leadership · Finance · Investor and capital market relationships · Industry knowledge · Strategy · Risk Management · M&A · US Market · Digital · Affiliate / aggregator Special competencies: Executive leadership · Investor and capital market relation- ships · Strategy · M&A · US Market · ESG · Finance · Industry knowledge · Risk Man- agement · Digital · Affiliate / aggregator Independence in relation to: Independence in relation to: Independence in relation to: – Shareholders – The company Yes Yes – Shareholders – The company Yes No – Shareholders – The company Yes Yes Annual report Page 36 Todd Dunlap Leif Nørgaard Petra von Rohr Board member and member of the Remuneration Committee Born 1966, USA First elected to the BoD in 2020 Board member and Chair of the Audit Committee Born 1955, Danish First elected to the BoD in 2014 Board member and member of the Audit Committee Born 1972, Swedish First elected to the BoD in 2018 Education: BBA from Park University, B.S. in Aerospace, aeronautical and astro- nautical engineering from Arizona State, M.Sc. in Technology innovation from Uni- versity of Washington, and an Executive Education in Business administration from Stanford University Education: M.Sc. in Economics and Business Administration from Aarhus Business Education: M.Sc. in Economics from Stockholm School of Economics and McGill School and is a state authorized public accountant University in Montreal, Canada Current assignments: Board Chair of Zerv Aps, DM Greenkeeping Danmark A/S, and K/S Sunset Boulevard, Esbjerg; Member of the executive board of AnnoAnno ApS, Fenerum Aps (NY), Ooono A/S, Propbinder Aps (NY), Hubb Aps Sunset Boulevard, Esbjerg Komplementar ApS, Robo Invest 2020 ApS, ONG Invest Aps, and SNG Invest ApS; Professional investor in start-up companies Current assignments: Webrock Ventures (Board member), Kreab Worldwide (Sen- ior Advisor) Current assignments: OfferUp (CEO and Board Chair), Guest lecturer and mentor at the University of Washington’s Foster School of Business, and investor in Seat- tle-area SaaS AI/ML, data and eCommerce startups as a founding LP of Ascend.vc Previous assignments: Biocool AB (CEO), Com Hem AB (Group Communications & Investor Relations), Board member of Linkfire, the Global Vector Control Stand- ard, Lauritz.com A/S, Lauritz.com Group A/S, Novare Human Capital Aktiebolag, and Takkei Trainingsystems AB, equity analyst in London and Stockholm Previous assignments: Booking.com (CEO North America), Microsoft (VP and COO, Consumer & Online Division), Better Collective (Board Advisor), WRQ (Group Marketing Manager, Internet Business Division) Previous assignments: Chr. Hansen Group (CFO), Dako Group (CFO), Teleca Group (CFO); Board member of Teklatech A/S, 2XL2016 ApS, Actimo LATAM Holdco ApS, DTU Science Park A/S, Dialægt/Citatplakat Aps, Komplementarsel, and Landshut Aps, Chair of the board of K/S SDR. Fasanvej, Frederiksberg and MuteBox ApS, Myselfie Aps, Partner of ApS Komplementarselskabet SDR. Fasan- vej, Frederiksberg; served on boards in several countries Special competencies: ESG · Executive leadership · Investor and capital market relationships · Strategy · Finance · Risk Management · M&A · US Market · Digital · Affiliate / aggregator Special competencies: ESG · Executive leadership · Investor and capital market re- lationships · Strategy · US Market · Digital · Affiliate / aggregator · Finance · Industry knowledge · Risk Management · M&A Special competencies: Executive leadership · Finance · Investor and capital market relationships · Strategy · Risk Management · M&A · US Market · ESG · Industry knowledge · Digital · Affiliate / aggregator Independence in relation to: Independence in relation to: Independence in relation to: – Shareholders – The company Yes Yes – Shareholders – The company Yes Yes – Shareholders – The company Yes Yes Annual report Page 37 René Rechtman Board member and member of the Remuneration Committee Born 1970, Danish First elected to the BoD in 2023 Education: M.Sc. in Politics and International Relations from the University of Co- penhagen Current assignments: Moonbug Entertainment (Co-founder & CEO), Board mem- ber of The Guardian, Blast Aps, and Podimo Previous assignments: JP/Politikens Hus (Board member), The Walt Disney Com- pany (Non-Linear Media), Maker Studios (Investor & President), GoViral (CEO), TradeDoubler (VP & MD) Special competencies: Executive leadership · Investor and capital market relation- ships · Industry knowledge · Strategy · US Market · ESG · Finance · Risk Management · M&A · Digital Independence in relation to: – Shareholders – The company Yes Yes Annual report Page 38 Executive Management Christian Kirk Rasmussen Jesper Søgaard Flemming Pedersen COO & Co-Founder CEO & Co-Founder CFO Born 1983, Danish Born 1983, Danish Born 1965, Danish Present position since 2018 Co-founded Better Collective together with Jesper Søgaard in 2004 and has been working with and developing the group’s operations since then Co-founded Better Collective together with Christian Kirk Rasmussen in 2004 and has been working with and developing the group’s operations since then Education: Bachelor of Commerce from Copenhagen Business School Education: M.Sc. in Political Science from the University of Copenhagen Education: M.Sc. (cand. merc. aud.) and HD (Bachelor of Business Administration) from Copenhagen Business School Current assignments: Member of the Board of Directors Omnigame ApS and MM Properties ApS; Member of the Executive Board Chr. Dam Holding ApS, and Better Holding 2012 A/S; Dreamcraft Ventures Management ApS (Founding member) Current assignments: Member of the Board of Directors of Rådhusholmen A/S, MM PROPERTIES, Over Bølgen A/S, BetterNow WORLDWIDE ApS, and Center- holmen A/S, J. Søgaard Holding ApS (CEO), Dreamcraft Ventures Management ApS (founding member), Member of the executive board of Better Holding 2012 A/S and J. Søgaard Holding A/S Current assignments: Naapster ApS, Thornæs Distillery A/S (Member of the Exec- utive Board) Previous assignments: Board member of Bumble Ventures General Partners ApS, Bumble Ventures Management ApS, Bumble Ventures Invest ApS, and Ejendoms- selskabet Algade 30-32 A/S; Member of the executive board Yellowsunmedia ApS and Bumble Ventures SPV ApS Previous assignments: ALK-Abelló A/S (CFO), Neurosearch A/S (CEO & Presi- dent), Mindway AI ApS (Chair of the Board); Board positions in both public and private companies in Denmark as well as internationally Previous assignments: Member of the board of directors of Bumble Ventures General Partners ApS, Bumble Ventures Management ApS, Bumble Ventures In- vest ApS, Ejendomsselskabet Algade 30-32 A/S, Symmetry Invest A/S, Shiprs Danmark ApS, Scatter Web ApS, Ploomo ApS, Gedoe A/S, and VIGGA.us A/S; Member of the executive board Bumble Ventures SPV ApS Sustainability expertise: Corporate culture · Safer gambling · Financial and non- financial reporting · Risk management · Compliance Sustainability expertise: Digitalization · Impacts on consumers and end-users · Value creation through digitalization · Safer Gambling · Corporate culture · Corpo- rate Governance · DEI · Working conditions Sustainability expertise: Digitalization · Impacts on consumers and end-users · Value creation through digitalization · Safer Gambling · Corporate culture · Corpo- rate Governance · DEI · Working conditions Annual report Page 39 Shareholders The BETCO share and shareholders Better Collective A/S has been listed since June 8, 2018, and is traded on the Nasdaq Stockholm and Nasdaq Copenhagen. The group’s tickers are BETCO and BETCO DKK, respectively. Share price and trading Closing price 2024 BETCO On December 31, 2024, most of the share capital was owned by the company’s founders and institutions, pre- dominantly in Sweden, Denmark, and the rest of Europe. On December 31, 2024, Better Collective had 5,433 known shareholders, corresponding to a 13% increase from January 1, 2024. The ten largest shareholders ac- counted for 69% of the votes and share capital. The members of Better Collective’s Board of Directors held a total of 1,358,416 Better Collective shares. The execu- tive management held a total of 21,654,324 Better Col- lective shares. 111.40 SEK 72.00 DKK 7,027 mSEK 70,485,574 16,078 mSEK 10,248 mDKK 280,819 64,054,777 40,828,566 175,938 51,119 Closing price 2024 BETCO DKK Corresponding MCAP Total number of shares traded on Nasdaq Stockholm & Copenhagen exchange Traded total value on Nasdaq Stockholm exchange Traded total value on Nasdaq Copenhagen exchange Avg. shares traded on Nasdaq Stockholm & Copenhagen exchange per day Avg. traded total value per day Nasdaq Stockholm exchange (SEK) Avg. traded total value per day Nasdaq Copenhagen exchange (DKK) Total number of trades on Nasdaq Stockholm exchange Share price and trading Total number of trades on Nasdaq Copenhagen exchange Avg. trades per day on Nasdaq Stockholm exchange The closing price on December 31, 2024, for the BETCO:STO was 111.40 SEK / 72.00 DKK, corresponding to a total market cap of approximately 7,027 mSEK / 4,542 mDKK. From January 1, 2024, to December 31, 2024, a total of 70,485,574 shares were traded at a total value of 16,078 mSEK / 10,248 mDKK. The average num- ber of shares traded per trading day was approximately 280,819, corresponding to a total value of 64 mSEK / 41 mDKK. The highest price paid for BETCO from January 1, 2024, to December 31, 2024, was 329.00 SEK / 216.50 DKK on February 9, 2024. The lowest price was 108.60 SEK / 70.50 DKK on December 23, 2024. From January 1, 2024, to December 31, 2024, BETCO share price de- creased by 56.6%, and BETCO DKK price decreased by 58.8%, while the OMX Copenhagen All shares index de- creased by 3.5%. 701 Avg. trades per day on Nasdaq Copenhagen exchange 204 Highest price paid between 2024-01-01 to 2024-12-31: (2024-02-09) BETCO (SEK) Highest price paid between 2024-01-01 to 2024-12-31: (2024-02-09) BETCO DKK (DKK) Lowest price paid between 2024-01-01 to 2024-12-31: (2024-12-23) BETCO (SEK) Lowest price paid between 2024-01-01 to 2024-12-31: (2024-12-23) BETCO DKK (DKK) Share price change from closing 2023-12-29 to 2024-12-30 BETCO SEK Share price change from closing 2023-12-29 to 2024-12-30 BETCO DKK OMX Copenhagen All shares index change from closing 2023-12-29 to 2024-12-30 329.00 216.50 Share capital and capital structure 108.60 70.50 -56.6% On 31 December 2024, the share capital amounted to 630,766 EUR, and the total number of issued shares was 63,076,627. The company has one (1) class of shares. Each share entitles the holder to one vote at the general meetings. All shares in the market hold equal voting rights and equal rights to the company’s earnings and capital. -58.8% -3.5% Shareholders: Known shareholders December 2024 5.433 13% Change in number of known shareholders between 2024-01-01 to 2024-12-31: (4,821 --> 5,433) Top 10 largest shareholders % 66% Source: Modular Finance AB. Data compiled from Euroclear, Morningstar, Finansinspektionen, Nasdaq Annual report Page 40 Top 10 largest shareholders as of December 31, 2024 Dividend policy Analysts’ coverage Owners Num. of Capital and shares Better Collective has historically focused on an acquisi- tion strategy, completing 35+ acquisitions since 2017. However, the company's near-term focus will shift to- ward driving organic growth and safeguarding the ro- bust cash flow of the business to bring down debt and buy back own shares. Therefore, the company does not expect to pay dividends until further. The Board of Di- rectors will revisit the capital structure of the Group an- nually and evaluate whether to pay dividends. The deci- sion to pay dividends will be based on the company’s financial position, investment needs, liquidity position, and general economic and business conditions. Given the shift towards organic expansion and disciplined cap- ital allocation, dividend pay-out will be partially or wholly substituted by a share buy-back. The Board of Directors has proposed that no dividend is paid out for the financial year of 2024. votes • • • • • • ABG Sundal Collier Oscar Rönnkvist Jesper Søgaard Christian Kirk Rasmussen 10.671.179 16,92% oscar.ronnkvist@abgsc.se Cantor Fitzgerald Edward James 10.671.179 7. 330.694 2.523.000 2.275.590 2.170.724 1.752.350 1.470.123 16,92% 11.67% 4.42% 3.26% 3.45% 2.79% 2.33% 1.94% BLS Capital Fondsmæglerselskab A/S edward.james@cantor.com Danske Bank Unnamed Owner Poul Ernst Jessen Sellers of Playmaker Capital Andra AP-fonden poul.jessen@danskebank.dk Jefferies James Wheatcroft jwheatcroft@jefferies.com Nordea Markets Contact Teacher Retirement System of Texas Vanguard Mikkel Munch-Jacobsgaard Sebastian Grave peter.sebastian.grave@nordea.com Redeye Danica Pension 1.108.514 VP of Group Strategy, Investor Re- lations & Corporate Communica- tions Knutsson Holdings AB Top 10 largest shareholders Other shareholders Total number of shares 1.090.000 41.063.353 22.013.274 63.076.627 1.91% Hjalmar Ahlberg hjalmar.ahlberg@redeye.se 66.38% 33.62% 100% Individuals with insider positions investor@bettercollective.com Listed companies must record a logbook of individuals employed or contracted by the company and have ac- cess to insider information relating to the company. These can include insiders and other individuals who have obtained inside information. Better Collective rec- ords a logbook for each financial report or regulatory re- lease containing information that could affect the share price. Annual report Page 41 Sustainability Statements Commitment to growing a sustainable business General disclosures Social Governance Entity specific disclosures Environment 43 45 58 77 81 84 EU Taxonomy Appendix 91 96 Annual report Annual report Page 42 Page 42 Our efforts to prepare for and comply with CSRD have been relevant for optimizing and developing our busi- ness processes, helping us to deepen our understanding of what is critical for our short-, medium- and long-term success. Group-wide collaboration across departments like Finance, People and Culture, Product and Tech, In- vestor Relations, and Legal and Compliance has been central - and will continue to be - in optimizing our busi- ness processes and data collection for our CSRD report- ing. Under CSRD, we adhere to specific standards that cover a wide range of sustainability topics, ensuring that reporting is consistent and comparable across various industries. Commitment to growing a sustainable business At Better Collective, we aim to excite sports fans through engaging content and foster passionate com- munities worldwide. As a leader at the intersection of sports, media, entertainment, and iGaming, we recog- nize the responsibility that comes with our role in the in- dustry. As such, our focus on sustainable practices is in- tegral to how we innovate, engage, and create long- term value for our group and stakeholders. A core component of CSRD is the Double Materiality As- sessment (DMA), which requires us to identify the ma- terial sustainability matters relevant to our business and value chain. In 2018, we put out our first sustainability report, analyzing and identifying our key environmental, social, and governance (ESG) topics. Since then, we have updated our analysis through internal reviews and comprehensive revisions in response to evolving regu- lations. In 2024, we started applying the double materi- ality concept to our strategic priorities, mainly focusing on identifying impacts and risks. The 2024 Sustainability Statements mark the first consolidated Sustainability Statements in our Annual Report. As part of our commitment to transparency and ac- countability, we welcome the EU’s Corporate Sustaina- bility Reporting Directive (CSRD) and European Sustain- ability Reporting Standards (ESRS). CSRD is designed to enhance and standardize corporate sustainability re- porting, coming into effect from 2024. Consequently, Better Collective has been working to develop a more structured and thorough reporting, though we recog- nize that this will require continuous efforts. Our report- ing identifies sustainability matters to consider and ad- dress while providing stakeholders with transparent, comparable, and reliable information on our environ- mental, social, and governance (ESG) performance. The DMA introduces impacts, risks, and opportunities (IROs) that inform us about our sustainability matters. Annual report Page 43 Identifying IROs involves assessing the potential im- pacts of our activities on the environment and people, the risks posed by sustainability matters to our group, as well as the opportunities that sustainability initiatives can create. In our Sustainability Statements, we have im- plemented CSRD and the ESRS. Aligning with our DMA, we report on the following topics in addition to the EU Taxonomy: We are excited to share our new Sustainability State- ments and hope you find them both engaging and easy to navigate. • • • • • General disclosures Climate change Own workforce Consumers and end-users Business conduct We have structured our Sustainability Statements into four overall sections: “General disclosures”, “Governance”, “Social”, and “Environment”. Though, we have also chosen to incorporate some of the dis- closures from the cross-cutting standard into other parts of our Management Review and Remuneration report, as we believe some information is best read in close connection with the financial review and our ac- tivities. We have done this by using the ‘Incorporation by reference’ option. You can find a full overview of the ESRS structure and where to find the different disclosures in the appendix “Disclosure require- ments” on pages 102-106. INCORPORATED BY SECTION REPORT REFERENCE PAGE(S) GOV-1; 19, 21, 22 GOV-3, E1;13 Corporate Matters Corporate Matters Strategy 24; 27; 36-38 30-31 SBM-1; 38, 40ai-ii, b, 42a SBM-3; AR 17 13-14 Strategy 13-14 G1 GOV-1; 5 Corporate Matters 27 Annual report Page 44 Use of estimates Disclosures stemming from other legislation and sustainability reporting standards The following depicts management’s role in the control and management of IROs by outlining their reporting lines to the administrative, management, and supervi- sory bodies, and their integration with other internal functions. In the ongoing work the Board of Directors and relevant committees determine whether appropri- ate skills and expertise are available. If not, external con- sultancy is used. General disclosures Basis for preparation (BP-1) Where estimates are used to provide consolidated group-wide reporting, such estimates, and practices are described in the accounting principles applicable to the data or information, including any related measurement uncertainty. Naturally, the reliance on indirect sources and proxies introduces some degree of outcome uncer- tainty. We are committed to refining our data collection methods, including exploring ways to, e.g., increase sur- vey participation and collaborating with partners to ob- tain more precise data. For further information on the key estimates, judgments, and assumptions applied, please refer to the individual pages where quantitative sustainability-related data tables are presented. For 2024, we have applied estimations in energy consump- tion for some offices, which also affects scopes 1 and 2. For scope 3, we use spend-based emission calculations which have inherently higher uncertainty. Our sustainability statements also constitute our statu- tory reporting cf. the Danish Financial Statements Act, Sections 99d and 107d, as they fall under Better Collec- tive’s Sustainability information and are therefore rele- vant to the Sustainability Statement on pages 29 and 75. Our sustainability statements are prepared with refer- ence to the ESRS issued by the European Financial Re- porting Advisory Group (EFRAG). Information in the Sustainability Statement includes the Better Collective group and all its subsidiaries and has been prepared on the same consolidated basis as the Better Collective group’s 2024 financial statements. Management responsibilities Executive Management The Executive Management regularly meets informally with the Chair of the Board of Directors, and the CFO regularly meets informally with the Chair of the Audit Committee. The CFO is the individual within the Execu- tive Management responsible for the disclosure and re- porting of financial and non-financial matters. The Exec- utive Management participates in Board meetings with the Board of Directors and uses their knowledge and ex- pertise, supported by group departments and the Sus- tainability board, to guide the Board of Directors and en- able them to make informed decisions on sustainability matters. Final decisions on IROs are made by the Board of Directors. (GOV-1) The governance of Better Collective’s sustainability ef- forts defines the role of the Board and its Committees as well as specifying the powers the Board delegates to our Executive Management. Sustainability and ethical busi- ness conduct are deeply integrated into our strategic di- rection and how we run our business. It is governed at the highest level by the Board and its committees. Re- sponsibility for the oversight of IROs lies within the Board of Directors, while business conduct policies, in- cluding Better Collective’s Code of Conduct, are partially embedded within the Audit Committee. The Board of Di- rectors has overall accountability for the management and guidance of IROs, including those associated with aspects of sustainability, such as operating a compliant business, promoting safer gambling, implementing so- cially responsible conduct, environmental responsibility, and ethical behavior. Read more in our “Corporate Mat- ters” chapter from page 22. Our DMA forms the basis for our sustainability reporting, addressing our own operations as well as the main parts of our upstream and downstream value chain concern- ing impacts, risks, and opportunities (IROs). Particularly the utilization of data centers in our upstream value chain and downstream on our workforce and users. The extent to which policies, actions, metrics, and targets go beyond our own operations varies depending on the na- ture of the topics which are disclosed in the topical ESRS. Changes in methodology 2024 marks the first year of reporting in accordance with CSRD, why calculation methodologies are updated to be in alignment with requirements in ESRS, yet no previously reported KPIs have been restated or revised. Disclosures in relation to Sustainability Board specific circumstances (BP-2) Better Collective has not included comparative infor- mation due to the new requirements from ESRS. These changes render the figures non-comparable. Responsibility for the execution of the strategic sustain- ability priorities is delegated to Better Collective’s Sus- tainability Board. The Sustainability Board is responsible for strategic priorities and integrating sustainability into business decisions and processes within their respective functions. Reporting to the Audit Committee and Board External review Our Sustainability Statements are covered by limited as- surance performed by the external group auditor. Annual report Page 45 of Directors. The Sustainability Board is chaired by Bet- ter Collective’s Head of Sustainability and consists of a cross-functional team with representatives from Sus- tainability, Finance, People and Culture, Safer Gambling, and Executive Management. Making up a total of nine members. The Sustainability board meets quarterly to address sustainability matters and IROs relating to Bet- ter Collective’s operations. and is responsible for the management and communica- tion of Better Collective’s IROs. The task force convenes regularly and reports to the Sustainability Board, which reports to the Group Management, which further reports to the Board of Directors, which ultimately has the final responsibility. Group Legal and Compliance Disclosures of governance matters are anchored within Group Legal and Compliance, which provides infor- mation on governance structures, policies, and proce- dures. Group Legal and Compliance services business units to ensure services, products, and platforms comply with applicable sustainability legislation and guidelines. Group Finance and Group Investor Relations These two are the primary bodies within management levels responsible for identifying, managing, and com- municating Better Collective’s IROs. Group Finance and Investor Relations jointly oversee the financial and non- financial compliance of our sustainability reporting, en- suring alignment with relevant standards and regulatory requirements. While processes for sustainability data collection continue to evolve, disclosures on environ- mental matters, social impacts across our value chain, and broader sustainability topics are coordinated be- tween the two functions to support transparency and compliance. Sustainability is anchored within Investor Relations, ensuring a structured approach to reporting and stakeholder communication. Group People and Culture Disclosures on social matters concerning our workforce are anchored within People and Culture, which reports data about our employees and social activities for Dou- ble Materiality Assessment (DMA) and reporting pur- poses. CSRD task force The subject-specific “Corporate Sustainability Report- ing Directive (CSRD) task force” oversees and manages CSRD implementation and compliance within the group Annual report Page 46 Business units assessing whether the Board collectively possesses and can effectively leverage sustainability expertise. The evaluation confirmed that each Board member holds competencies relevant to our material IROs, the broader industry landscape, and the geographical scope of our operations. Additionally, the Executive Management team possesses deep expertise in various aspects of sustainability directly linked to our material IROs, ensur- ing alignment between business objectives and sustain- ability commitments. we track actions taken to prevent, mitigate, or remedi- ate identified impacts and present these alongside our financial risk assessments, ensuring that sustainability is fully integrated into our risk management framework. Beyond quarterly updates, Executive Management is continuously informed of Better Collective’s sustainabil- ity activities, ensuring continuous oversight and align- ment with business objectives. The agenda below re- flects our 2024 initiatives and plans for 2025. alignment with ESRS topical standards, disclosure obli- gations, and key data points that must be reported. The individual business units are responsible for the re- search and development of products, platforms, and projects. Q4 - Impact and policy review In the fourth quarter, the Audit Committee and Board of Directors assess the effectiveness of mitigation and pre- ventive measures implemented throughout the year. They also evaluate whether further actions are neces- sary and determine if any policies should be updated or revised. The Remuneration Committee assesses remu- neration to the Executive Management according to their performance during the year, including the sustain- ability KPIs referred to in the incentive schemes. The Nomination Committee evaluates the profiles of the members of the Board of Directors and subsequently makes recommendations to the Board of Directors re- garding gender composition, targets, and policies for the Board of Directors and other managerial functions. A list of the material IROs addressed by the Board of Di- rectors and Executive Management during the reporting period is disclosed alongside the relevant disclosures. Targets The Board of Directors, and by extension, the Audit Committee, utilize the DMA processes, controls, and re- sults to guide the setting of targets concerning our ma- terial impacts, risks, and opportunities (IROs) whenever relevant. When targets are set, these are to be tracked using appropriate qualitative and quantitative indica- tors. Currently, we have only set Group level targets re- lating to gender diversity. We continue to focus on achieving a sound data foundation and establishing and building efficient control environments. We are consid- ering how and where we will set strategic targets to fur- ther accelerate business strategy and sustainability per- formance. Q1 - Annual Reporting The Board of Directors reviews and approves the Annual Report during the first quarter. This report provides shareholders and other stakeholders with insights into the group’s performance, policy effectiveness, key ac- tions taken, and, where relevant, associated metrics and targets. For more information on the Board and Executive Management’s skills and expertise, see pages 36-39. Any knowledge that the Board of Directors or Executive Management does not directly possess is leverageable from internal support functions, including Group Fi- nance and Group Legal and Compliance, in addition to external advisors for specific topics. Q2 - IRO Reporting In the second quarter, the Sustainability Board presents the outcomes of the DMA assessment, including identi- fied material IROs and impacted stakeholders, to the Au- dit Committee. The committee then shares these find- ings and relevant recommendations with the Board of Directors. These insights help guide the Board’s deci- sion-making moving forward. Expertise and skills Sustainability matters addressed by management (GOV-2) The Nomination Committee assists the Board of Direc- tors by nominating candidates and determining whether appropriate strategic, industry-specific, sustainability, and other necessary skills and expertise are available within the Board of Directors and Executive Manage- ment. Incentive schemes (GOV-3) Better Collective does not currently have a formal incen- tive scheme with sustainability components. The Board of Directors receives regular updates on sus- tainability matters. This includes communication re- garding our annual reporting, IRO identification from the DMA, reporting requirements based on IROs, and up- dates on significant actual and potential negative im- pacts from value chain activities. Informed by our DMA, Incorporated by reference “Remuneration to the Board of Directors and Executive Management” on pages 30-31. Q3 - IRO Deep dive Each year, the Board of Directors evaluates the skills, di- versity, knowledge, and experience of its members and the Executive Management team. This includes During the third quarter, the Audit Committee thor- oughly reviews material IROs. This process informs the scope of disclosures in the Annual Report, ensuring Annual report Page 47 Paragraphs in the sustainability statement Statement on due diligence Sustainability reporting risk Core elements of sustainability due diligence (GOV-4) management (GOV-5) • • • • GOV-1 Management responsibilities As a responsible corporate citizen, we are committed to respecting, protecting, and advancing human rights across our business operations. Guided by the ten prin- ciples of the United Nations Global Compact (UNGC), our four sustainability focus areas integrate the core principles related to human rights (including labor rights), the environment (including climate), and anti- corruption, as reflected in the UN Guiding Principles for Business and Human Rights and the OECD Guidelines for Multinational Enterprises. These frameworks underpin our approach, ensuring that respect for human rights is fully integrated into our policies and business actions. To reinforce our commitment, we uphold our Human Rights policy, which extends to our entire value chain. We con- tinue to work on our human rights due diligence pro- cesses to move us from commitment to tangible action. Currently, our most salient human rights issues pertain to our workforce. Should Better Collective happen to cause or contribute to adverse impacts, we commit to active remediation, and if adverse impacts are linked to us through our business relationships, we will leverage our influence to promote appropriate solutions. We rec- ognize that our ability to influence human rights impacts spans the entire value chain, and we are dedicated to addressing our responsibilities with integrity, transpar- ency, and a focus on long-term impact. Better Collective is in the early stages of aligning with the Corporate Sustainability Reporting Directive and acknowledges the absence of developed internal con- trols tailored to sustainability reporting. We are commit- ted to ensuring the accuracy of our sustainability report- ing going forward. Following the initial implementation of the CSRD in 2024, we have begun developing more robust internal control systems to support the sustaina- bility reporting process. a) Embedding sustainability due diligence in governance, strategy, and business model. GOV-2 Sustainability matters addressed by managed SBM-1 Strategy, business model and value chain SBM-3 Double materiality assessment • • • SBM-2 Interests an views of stakeholders IRO-1 Double materiality assessment process GOV-2 Sustainability matters addressed by managed b) Engaging with affected stakeholders in key all steps of the sus- tainability due diligence. • • IRO-1 Double materiality assessment process SBM-3 double materiality assessment c) Identifying and assessing adverse impacts Our approach aims to align sustainability reporting con- trols with financial reporting structures, ensuring a structured and reliable framework over time. As the scope of sustainability reporting expands, we are ac- tively assessing the risks related to data accuracy and completeness and working to establish appropriate in- ternal controls through ongoing evaluations in collabo- ration with internal data owners and external auditors. • • • GOV-5 Risk management and internal control S1-4 Our approach S4-4 Our approach d) Taking actions to address those adverse impacts e) Tracking the effectiveness of these efforts and communicating • GOV-2 Sustainability matters addressed by managed Annual report Page 48 delivering transparent and ethical services in compli- ance with regulations, which remain central to our user and governance approach. Downstream, we engage mil- lions of sports fans through our sports media platforms, offering engaging experiences, transparent content, and safer gambling resources. With +450 million monthly visits across our global House of Brands, we prioritize user protection, data privacy, and ethical marketing to uphold trust and compliance across regions. While we cannot control what our partnering sportsbooks do, we support them by holding them to high standards during the customer acquisition and ongoing CRM process and by providing them with a chance to set the bar higher by providing safer gambling tools and software. As such, extending our influence in the value chain. By integrat- ing more sustainable practices into our value chain, Bet- ter Collective ensures responsible business growth while addressing critical environmental, social, and govern- ance challenges within our industry. Our dependencies described above were carefully considered when per- forming our DMA. Strategy and business model (SBM-1) Read more about our strategy, business model, and value chain from page 13-16. We are guided by a commitment to deliver compelling and immersive sports content to our users. This focus has shaped our vision of becoming the leading digital sports media group, aiming to excite sports fans through engaging content and fostering passionate communities worldwide. Positioned at the crossroads of media, entertainment, sports, and iGaming, we deliver content, advertising, and safer gambling resources to hundreds of millions of sports fans. This scale brings a profound responsibility to approach our operations with transparency and accountability at the core of our strat- egy. Our value chain spans upstream procurement, internal operations, and downstream distribution, enabling en- gaging and safer user experiences while maintaining op- erational efficiency. In the upstream value chain, we de- pend on IT infrastructure, including data centers, which are fundamental to our business model but present ma- terial IROs relating to energy consumption and respon- sible sourcing. Within our operations, our success is driven by a skilled workforce specializing in content cre- ation, publishing, paid media, and digital marketing. En- suring employee well-being, fostering diversity and in- clusion, and retaining talent are key priorities while Annual report Page 49 business model. There have not been any amendments in 2024. • Partners and suppliers value strong business rela- tionships, compliance with responsible marketing standards, and shared commitments to industry- wide ethical conduct. Interests and views of stakeholders (SBM-2) At Better Collective, our key stakeholders include both internal and external parties who contribute to and ben- efit from the value we create. Engaging with these stakeholders in a structured and meaningful way is es- sential to shaping our strategy, ensuring responsible business conduct, and addressing material impacts. Through continuous dialogue, we gather insights that influence employee well-being, responsible marketing practices, safer gambling efforts, regulatory compli- ance, digital innovation, and sustainability initiatives. Our approach to engagement varies depending on the stakeholder group, and we utilize a mix of formal and informal channels to ensure that feedback is consistently gathered, assessed, and integrated into decision-making. Employees engage through workplace evaluations and structured dialogues, while user feedback is gathered via platform interactions and content engagement analysis. Our engagement with industry associations involves direct participation in policy discussions and compliance initiatives, ensuring that Better Collective contributes to developing responsible and sustainable business practices in the iGaming industry. Each stakeholder group has unique needs and perspectives, influencing how we operate and create value. While our stakeholders generally expect ethical conduct, transparency, and responsible business practices, their specific expectations differ based on the nature of their relationship with Better Collective: • • Shareholders expect sustainable growth, financial transparency, and strong governance structures that align with market expectations. Regulators require compliance with local laws and ethical advertising standards while expecting iGaming affiliates to uphold responsible gaming practices. Beyond our key stakeholder dialogue, we engage with internal subject-matter experts to understand IROs. These experts include employees with responsibilities and insights into specific parts of our business model and activities. Stakeholder engagement is also crucial to our ongoing sustainability due diligence efforts. Read more about how we engage our stakeholders and the topics on the next page. Our DMA and the content of our sustainability statements underscore the most im- portant topics for our stakeholders as they consider the identified interdependencies and IROs related to our value chain and business activities. Through active stakeholder engagement, continuous feedback loops, and monitoring mechanisms, we ensure that Better Col- lective remains a trusted, responsible, and forward- thinking leader in the digital sports media and sports betting industry. Stakeholder engagement is a fundamental part of our strategic decision-making and integral to our daily op- erations. We assess our stakeholders' needs, concerns, and expectations to remain agile and responsive to changing market trends, regulatory developments, and user preferences. By fostering open dialogue, we iden- tify our business model's positive and negative impacts and proactively take action to mitigate risks and maxim- ize opportunities. Our engagement process is embed- ded across our group. Stakeholder insights are continu- ously discussed within relevant departments and busi- ness units to ensure alignment with strategic priorities. The Board of Directors is updated regularly, at a mini- mum, during annual DMA reviews via Executive Man- agement, ensuring that material stakeholder interests are considered when shaping our long-term vision and • Employees seek an inclusive and motivating work environment, fair treatment, growth opportunities, and a commitment to responsible employment practices. • Users expect accurate and responsible content, safer gambling resources, and a transparent ap- proach to digital engagement. Annual report Page 50 KEY STAKEHOLDER HOW WE ENGAGE WHY WE ENGAGE VALUE CREATION • • • • Internal policy updates OWN WORKFORCE We participate in two-way responsive dialogue. We engage through: People are the core of our business, and we engage to: Employee-driven initiatives and campaigns Career advancement and skills development Enhancing employee well-being, inclusion, and a safe work environment • Learn about their employees’ values, engagement, and concerns • • • • • • • Intranet updates Development dialogues Annual workplace survey Manager check-ins Global “All hands” meetings Social events Informal communication channels to raise open questions to the group or in specific work group form • • • • • To understand employees’ perceptions and experiences Professional development Sense of inclusion Job satisfaction and well-being To maintain a fair workplace and working conditions for all • • • • • • User education and empowerment Safeguarding users Community building Offering safer gambling resources, including a Betting Academy and Mindway AI solutions Data collection and processing within the GDPR framework Ensure quality in Better Collective’s deliveries USERS We engage with our users in various ways through: We engage to: • • • Our sports media, like articles, commentary, communities, videos, podcasts, and more. Through website feedback tools and analysis of user behavior and feedback • • • Building trust Understand user preferences and behavior Enhancing user experience User interaction with products • • • Building trusted partnerships. • • • • Streamlined operations and alignment on sustainability standards with partners. Fostering shared responsibility for advancing sustainability and safer gambling practices. Supporting partners by holding them to high standards during the customer acquisition and ongoing CRM process The development and integration of AdVantage ensures unparalleled engagement and value for both our partners and audiences PARTNERS AND SUPPLIERS Formal and informal engagement through a dedicated Investor Re- lations team and with Executive management: Ensuring compliance with our partners and suppliers. To learn about trends and insights related to our specific industry. Join efforts for industry-wide change. • • • • Daily operations and collaborative projects Reviews Industry networking and conferences Through contracts and partner / supplier due diligence • • • • • Securing financing ESG rating improvement plans Responses to investor queries Increased investor confidence SHAREHOLDERS • • • • • • Quarterly roadshows Conference calls Regular 1-1 meetings Capital Markets Day ESG ratings As a dual-listed company, we naturally engage with our share- holders regularly to: • • • • Ensure efficient financial allocation To understand shareholders’ interests Ensure accurate communication Ensure shareholder value Building and maintaining strong relationships and transparency Annual general meeting • • • • • Inputs into strategic directions Knowledge sharing Promoting and implementing safer gambling frameworks Ensure compliance Educating regulators about the affiliate business model and its role in the sports and iGaming ecosystem • • • Contributing to voluntary frameworks and best practices Safer gambling week Co-founder of RAiG (Responsible Affiliates in Gambling). As a condition of membership in RAiG, each member is subject to an annual social responsibility audit conducted by an independent third party. Expansion into new markets through regulatory changes INDUSTRY ASSOCIATIONS AND REGULATORS • • Joint initiatives and programs Conferences and meetings • • Systemized regulatory compliance through our Legal and Compliance team Annual report Page 51 The financial effect environment, we recognize our actual negative environ- mental impact. Our upstream activities impact our over- all environmental footprint, underscoring the im- portance of working with sustainable data center pro- viders. Although our direct emissions are limited, our overall impact relates to the strain our operations and business model put on the environment regarding car- bon emissions and energy consumption. The negative effect of our environmental impact cannot be limited to the countries where we operate, as climate change is global. Additionally, we enhance overall transparency in the sports media industry, helping consumers and end-us- ers make informed decisions through educational con- tent, community-driven insights, and compliance-driven marketing practices. Our business is built on strict data privacy protocols, ethical marketing practices, and a commitment to safer gambling. By prioritizing ethical practices and sustainable operations, we aim to create a positive and lasting impact on our employees, consum- ers, and end-users, and the wider industry. Double materiality The current financial effects of the identified material risks and opportunities are limited. assessment results (SBM-3) Our sustainability strategy is rooted in four strategic fo- cus areas: Environment, Social (our workforce and us- ers), and Governance - each with underlying priorities. These pillars are designed to address our material im- pacts, risks, and opportunities (IROs). They are a funda- mental part of how we operate, ensuring that we remain a responsible leader in our industry, while they also sup- port our overall strategy to drive innovation, build trust, and deliver long-term value for our group and our stake- holders. As our material IROs are primarily related to our core business activities and ability to grow, our initiatives to improve opportunities and mitigate impacts and risks are embedded in already established governance struc- tures. As a result, our resilience is deemed high within the time horizons applied in our 2024 DMA. Our financial resilience analysis is based on qualitative input by inter- nal subject-matter experts, including an overall assess- ment of the mitigating factors across all IROs, as gath- ered in the DMA process. The ESRS disclosure requirements cover all identified material IROs. However, Better Collective also reports entity-specific metrics on impacts related to safer gam- bling, tax transparency, and commitment to local com- munities, as there are no ESRS disclosure requirements covering these specific impacts that we have identified. The identified social impacts for Better Collective are both negative and positive, as well as actual and poten- tial, and are primarily shaped by industry-specific chal- lenges and opportunities. Possible negative impacts arise from our proximity to gambling and sports betting, high-performance work environments, and gaps in di- versity and inclusion. However, we have mitigating ac- tions to address negative impacts, including responsible gambling initiatives, flexible work models, and diversity and inclusion efforts. If these mitigating measures were discontinued, the potential negative impacts could af- fect employees’ well-being, user trust, and safety. For the DMA we have considered only the gross risk, before mitigating actions. As a digital sports media group, we also generate positive social impacts. We provide value to employees through inclusivity, continuous learning, and flexible working opportunities while fostering a cul- ture of responsible and ethical user engagement. Our identified material IROs are outlined in the DMA pro- cess and further described under each topic in the indi- vidual sections of our sustainability statements. The ma- terial IROs are primarily concentrated within our opera- tions and downstream activities, reflecting our position in the value chain. The IROs are directly connected to our ability to create and deliver engaging content, foster passionate communities, and provide a safer user expe- rience for our users. Additionally, our IROs extend to our commitment to responsible business conduct, environ- mental responsibility, and workforce satisfaction, secu- rity, and development. Changes to material IROs In 2024, we updated our existing DMA process to ensure it aligns with the European Sustainability Reporting Standards (ESRS). 2024 marks our first year with a com- pliant Double Materiality Assessment. The material top- ics described have been assessed considering sub- and sub-sub-topics as required under CSRD. While our pri- mary focus this year has been achieving CSRD compli- ance, we recognize this process is ongoing. Moving for- ward, we will continue to refine our methodology and approach, shifting next year’s focus towards enhancing IRO management and deepening our understanding of potential sector-specific impacts and opportunities. • • • The material positive impact and opportunity re- lated to safer gambling - covered as an entity-spe- cific disclosure under “Consumers and end-users”. The material positive impact and opportunity from contribution to local communities are reported as entity-specific disclosures under “Governance”. Tax transparency reported as an entity-specific dis- closure under “Governance” We operate in a digital-first ecosystem, where the utili- zation of data center services plays a fundamental role in our infrastructure. While we do not identify environ- mental risks or opportunities explicitly relating to the As such, our IROs are categorized under S1 (Our work- force), S4 (Consumers and end-users), E1 (Climate change), and G1 (Business conduct). Annual report Page 52 relative severity and likelihood, with severity deter- mined by evaluating their scale, scope, and remediabil- ity. Each impact was rated on a scale from 1 to 5. Risks and opportunities, however, were evaluated separately based on their probability of occurrence and financial magnitude. Ratings were derived from internal and third-party quantitative data (where available and fea- sible) and qualitative input from internal and external stakeholders. When relevant, location-specific factors were also considered in the impact assessment. Addi- tional sources, such as pre-existing records, self-assess- ment results, document analysis, and academic re- search, were used to inform the assessment process fur- ther. Stakeholder inclusion was a key component of the as- sessment. We distinguished between stakeholders di- rectly affected by our activities and those interested in our sustainability disclosures, including investors, regu- lators, employees, and business partners. While we did not directly consult affected external stakeholders, the process incorporated insights from internal subject- matter experts who maintain continuous dialogue with key stakeholder groups. Scoping of impacts, risks, and opportuni- ties Double materiality assessment process (IRO-1) All identified topics and related IROs were re- viewed by the CSRD working group and consolidated into a list of overall sustainability topics within the ESRS and some entity-specific topics. Before the workshop, the CSRD working group pre-assessed the IROs using their developed methodology. Assessments were trans- ferred into a DMA tool to aggregate scores and calculate the “degree of materiality” split into five levels for the impacts, risks, and opportunities. Our DMA process encompasses our operations and up- stream and downstream value chain, reflecting Better Collective’s unique strategic and operational environ- ment. We conduct a mapping based on various internal and external sources to identify actual and potential positive and / or negative impacts, risks, and opportuni- ties. The scope of the DMA was established by identify- ing relevant sustainability matters across our upstream and downstream value chain and within our operations, considering our business relationships, operational de- pendencies, and geographical footprint. Our assessment was guided by ESRS and supplemented with insights from internal business functions, regulatory frame- works, industry benchmarks, and financial analyst per- spectives. The identification and evaluation of material IROs Assessment workshops Interactive workshops were conducted for Identification of sustainability matters During individual interviews with subject each relevant ESRS topic. Participants in the matter experts from the Investor Relations Financial risks and opportunities were identified and as- sessed for the identified actual and potential impacts. Better Collective’s assessments include potential im- pacts from future events on assets, performance, value creation, and data on past events' impacts. Past events are informed by Better Collective’s own financial data, and future events are based on scientific peer-reviewed publications, best practices, and available guidance. For financial materiality, the scoring system measured the likelihood and potential magnitude of financial effects caused by a sustainability matter. This approach ensures that material gross risks and opportunities are assessed in alignment with our ERM (see page 34) framework and financial performance evaluations. workshops were the same subject matter experts who had been interviewed earlier in the process. Each IRO’s pre-assessment was systematically walked through to facilitate discussions on the IRO and the pre-assess- ments. Participants adjusted the pre-assessed IROs where relevant and added additional IROs and scored them according to the developed scoring methodology. Scoring rationales were documented, and relevant ref- erence documents were captured. In total, 66 poten- tially material IROs were scored. team, Legal and Compliance team, People and Culture, as well as our Product and Tech team, the long list of potential material sustainability topics was shared for them to identify which sustainability matters they found to be of most relevance to Better Collective. Based on the identified topics, they were also prompted to iden- tify significant impacts, risks, and opportunities across our value chain. The interviews were initiated with a short introduction to the DMA and the purpose of the interview. Notes were taken in developed memos throughout the interviews to capture important obser- vations and/or takeaways. External advisors further supported the process to en- sure rigorous and objective identification and assess- ment to identify the IROs that are material to our busi- ness model and mandatory for reporting as part of our sustainability statement. Through the mapping, we identified various actual and potential IROs across our business across short-, medium-, and long-term hori- zons in alignment with ESRS 1. The identified actual and potential positive/negative impacts, as well as risks and opportunities, were assessed to determine their materi- ality and determine which ones are mandatory for re- porting. Identified impacts were assessed based on their Calibration All workshop inputs were transferred to the DMA tool to aggregate scores and calculate the ‘degree of materiality’ split into five levels. Annual report Page 53 Workshop participants were consulted again for valida- tion. To conclude our assessment, any IROs that met ei- ther the impact materiality or the financial materiality thresholds were consolidated into a final list of material IROs mandatory for reporting. The final calibration of IROs took place among the CSRD working group before the double materiality assessment was finalized. also assessed data points that are not material, care- fully considering the intent and contents of the require- ments, the relevance to our business, and potential de- cision-usefulness for users of our annual reporting. Policy overview (MDR-P) Our policies covering the identified material sustainabil- ity matter are in place to prevent, mitigate, and remedi- ate actual and potential impacts, address risks, and pur- sue opportunities. The most senior person accountable for implementation continuously monitors effective- ness, with actions reported alongside relevant disclo- sures. Policies related to specific sustainability matters are disclosed under each topic on the following pages. All policies are approved by the Board of Directors. Management review and approval The DMA findings were reviewed within the CSRD working group. A consolidated over- view of the sustainability-related impacts, risks, and op- portunities was presented to and discussed with the ex- ecutive management team before final approval of the DMA by the executive team, the sustainability board, and the Audit committee. The DMA is to be reviewed an- nually. We expect updates along the way as data and knowledge relating to particular IROs expand, like changes in the factors and inputs we assessed when conducting the previous year’s DMA. The list of material IROs forms the basis for determining the disclosure requirements and data points to be in- cluded in line with ESRS 1. When preparing our first dis- closures under ESRS requirements, we meticulously as- sessed all requirements on a datapoint-by-datapoint ba- sis, considering the identified IROs and mapping and preparing all material disclosure requirements, which are reported in the Sustainability Statements. We have Annual report Annual report Page 54 Page 54 INTERNATIONALLY RECOGNIZED INSTRUMENTS ACCOUNTABLE TO IMPLEMENT POLICIES DESCRIPTION OF KEY CONTENT SCOPE OF POLICY AVAILABILITY IROS COVERED BY POLICY ANTI-HARASSMENT POLICY • • • • • • • Framework for addressing/preventing workplace violence and harassment Emphasizes confidentiality Allows anonymous reporting Protects affected and reporting parties Zero-tolerance stance on discrimination, harassment, and sexual harassment A thorough investigation of reported incidents Global SVP People & Culture Intranet • • • Health, safety and mental well-being Gender equality Diversity Offenders face employment law sanctions: Warnings, dismissal, termination CODE OF CONDUCT • • Promotes anti-discrimination and anti-harassment standards Ensures a safe and healthy working environment by complying with health and safety laws Implements procedures to prevent work-related accidents Upholds fair competition, prohibits corruption, and complies with anti-bribery laws Prioritizes data privacy and confidentiality in adherence to relevant laws Ensures the highest standards of ethical behavior Global Board of Directors Corporate website and intranet • • • • • • • Secure and transparent employment Work-life balance Health, safety and mental well-being Gender equality Diversity Personal safety • • • • • • Social inclusion Fosters a respectful, inclusive, and safe working environment Safer gambling INTERNAL PRIVACY POLICY • • • • Empowers employee privacy rights: Outlines the rights of employees under GDPR, ensuring they are informed about how their personal data is collected, used, and protected within the organization. Outlines employee responsibilities: Provides clear guidelines on employees’ roles in safeguarding personal data, emphasizing the importance of compliance with GDPR principles when handling data. Ensures compliance and accountability: Establishes procedures and practices to align with GDPR requirements, promoting a culture of compliance and accountability in data processing activities. Promotes security and best practices: Highlights the need for robust data security measures and encourages adherence to best practices, ensuring the protection of personal data in all business operations. Global Director of Regulatory Compliance General Data Protection Regu- lation (GDPR) Intranet • Information-related impacts HEALTH AND SAFETY DATA ETHICS POLICY • • • Ensures a safe and healthy working environment for employees Committed to compliance with relevant health and safety legislation and regulations Focuses on preventing workplace injuries: both physical and sociopsychological Local level SVP People & Culture Board of Directors Local laws related to labor, em- ployment, etc. Intranet • • Work-life balance Health, safety and mental well-being • • • • • States data ethics principles and processing methods Ensures the highest ethical standards Emphasises protecting and respecting personal and non-personal data Commits to legal compliance and ethical values Integrates values into IT services Global The group’s voluntary commit- ment to ethical principles re- garding data use. Influenced by: OECD principles, existing pri- vacy legal framework, Corpo- rate Social Responsibility. Corporate website and Intranet • • Information-related impacts Personal safety Annual report Page 55 INTERNATIONALLY RECOGNIZED INSTRUMENTS ACCOUNTABLE TO IMPLEMENT POLICIES DESCRIPTION OF KEY CONTENT SCOPE OF POLICY AVAILABILITY IROS COVERED BY POLICY HUMAN RIGHTS POLICY • Respects human and labor rights: prohibits forced labor, child labor, and human trafficking Global SVP People & Culture • • The OECD Guidelines for Multilateral Enterprises The OECD Due Diligence Guidance for Responsible Business Conduct The UN Guiding Principles on Business and Human Rights The UN Declaration of Human Rights and the Convention on the Rights of the Child Corporate website and intranet • • • • • • • Secure and transparent employment Work-life balance Health, safety and mental well-being Gender equality Diversity Personal safety • • Social inclusion • ILO Conventions SUSTAINABILITY POLICY TAX POLICY • • • Commitment to sustainable actions across all operations Commits to continuous improvement in eco-friendly practices Commits to protecting the environment by preventing pollution and minimising negative impacts Global Global Board of Directors Corporate website and intranet • • • • • Secure and transparent employment Work-life balance Health, safety and mental well-being Gender equality • Contributes positively to societies we operate in Diversity • • • Ensures compliance with national and international tax regulations Actively manages and mitigates tax risks to maintain transparency Optimizes tax position to achieve competitive tax levels relative to industry and geography VP of Group Finance & Business Intelligence Corporate website and intranet • Tax transparency • Pursues tax optimization in line with business transactions (e.g., revenue streams, sale of services) • • • • • Avoids tax avoidance, tax shelters, and transactions with significant reputational risks Seeks external expert advice for complex or material tax exposures Communicates the Group's effective corporate tax rate openly Regularly reports material tax risks to the Audit Committee Board of Directors approves and governs the policy, with implementation by Executive Management SAFER GAMBLING POLICY FOR EMPLOYEES • • Educates employees about gambling risks and how to seek support Encourages responsible gambling practices, emphasizing entertainment over financial necessity Global Senior Director of Group Media Intranet • Safer Gambling • • Provides resources for employees to recognize signs of problem gambling Offers tools like self-exclusion and self-tests (e.g., Gamalyze) to help manage gambling habits • • Promotes a supportive environment for employees to discuss gambling concerns confidentially Supports employees struggling with gambling issues via HR and management assistance • • Regular training on safer gambling for all employees, including new hires Ensures continuous improvement of the policy through the Safer Gambling Compliance Council • Provides access to external help through country-specific resources Annual report Page 56 INTERNATIONALLY RECOGNIZED INSTRUMENTS ACCOUNTABLE TO IMPLEMENT POLICIES DESCRIPTION OF KEY CONTENT SCOPE OF POLICY AVAILABILITY IROS COVERED BY POLICY SAFER GAMBLING CODE • • Educates employees about gambling risks and how to seek support Encourages responsible gambling practices, emphasizing entertainment over financial necessity Global Senior Director of Group Media • N/A - varied based on local regulations Corporate website • • Health, safety and mental well-being Safer Gambling • • Provides resources for employees to recognize signs of problem gambling Offers tools like self-exclusion and self-tests (e.g., Gamalyze) to help manage gambling habits • • Promotes a supportive environment for employees to discuss gambling concerns confidentially Supports employees struggling with gambling issues via HR and management assistance • • Regular training on safer gambling for all employees, including new hires Ensures continuous improvement of the policy through the Safer Gambling Compliance Council • Provides access to external help through country-specific resources WHISTLEBLOWER POLICY • • • • • • Encourages confidential reporting of legal violations and misconduct Covers issues like fraud, harassment, and financial crimes Excludes personal employment matters Allows anonymous reports, but names are encouraged for follow-up Protects whistleblowers from retaliation Global Global Global Chair of Audit Committee Corporate website Corporate website Intranet • • • • • • Secure and transparent employment Work-life balance Health, safety and mental well-being Gender equality Diversity Personal safety Reports are handled by the Chair of the Audit Committee PRIVACY POLICY • • • Safeguards individual privacy: Outlines measures to protect individuals' privacy rights and freedoms by ensuring responsible data handling Transparent data practices: Describes the processes for collecting and using personal data with transparency, aiming to secure consent whenever feasible Data protection framework: Establishes the mechanisms and arrangements in place to ensure the secure and lawful handling of personal data Director of Regulatory Compliance • General Data Protection Regulation (GDPR) • Information-related impacts GAMBLING ADVERTISING COMPLIANCE POLICY • • • • Ensures adherence to all compliance and regulatory requirements in all active regions Ensures transparent and safe advertising Ensures that all advertising is held up to the highest standards of social responsibility All employees are expected to act per the principles Director of Regulatory Compliance • N/A - varied based on local regulations • Safer Gambling Annual report Page 57 to work, supported by clear workplace guidelines and remote work options. Our emphasis on flexibility en- sures that employees maintain a healthy balance be- tween work and personal life, making it a potential pos- itive impact on the workforce. Understanding the im- portance of health and safety, we are committed to con- tinuously fostering safe working environments. We rec- ognize a possible negative impact on our employees’ mental well-being due to their increased exposure to gambling content as part of their work. This impact re- sults from the nature of the industry we operate within. Better Collective has assessed that the employees work- ing daily with betting are more at risk of harm. While the overall negative impact on physical health is low, the de- mands of a high-paced work environment may also neg- atively impact mental well-being. These impacts interact with our strategy and business model, potentially influ- encing employee satisfaction and productivity. Operat- ing in the digital sports media sphere, we are part of a male-dominated industry, which presents impacts re- lated to gender equality and diversity. This impact di- rectly interacts with our strategy, emphasizing the need for diversity, inclusion, and equality practices to strengthen employee satisfaction, attract and retain qualified talent, and uphold our reputation as a socially responsible employer. Moreover, a commitment to di- versity enhances our competitive edge by leveraging creativity and innovation from diverse perspectives. Better Collective has assessed that its activities do not pose a risk for incidents of forced labor or forced child labor. None of the negative impacts are assessed to be systemic. Furthermore, Better Collective has assessed its business model, activities, and geographic operations and found no risks of forced or compulsory labor or child labor. Social Our workforce IROs (S1 SBM-3) Our business is based on specialized expertise and inno- vation, which is why we consider people a core element in everything we do. Therefore, we are committed to fostering and upholding an inclusive, professional, and diverse workplace by implementing socially responsible conduct and eliminating all discriminatory practices. Our workforce may be and are exposed to different im- pacts due to our operations, as shown in the IRO table. Particularly, the challenges and opportunities of our in- dustry – such as Safer Gambling - may introduce poten- tial negative impacts, while our positive initiatives aim to benefit our workforce. The material topics covered in this ESRS include secure and transparent employment, work-life balance, health and safety, gender equality, and diversity, all identified as impacting our workforce. We prioritize secure and responsible work opportunities that align with regional and local conditions and legal requirements. This approach impacts job stability while fostering a supportive and motivating work environ- ment. Secure and transparent working conditions align with our core values and allow our group to reduce turn- over rates, increase employee satisfaction, reduce repu- tational risks, and enhance productivity. Employees benefit from high flexibility in choosing when and where Annual report Page 58 Own workforce IROs (S1, SBM-3) VALUE CHAIN LOCATION TIME HORIZON LONG-TERM OWN OPERATIONS DOWNSTREAM SHORT-TERM MEDIUM-TERM UPSTREAM SECURE AND TRANSPARENT EMPLOYMENT Potential positive impact Potential positive impact X X X Impact on financial security, professional growth, and a supportive work environment for all employees WORK-LIFE BALANCE Promoting work-life balance helps employees maintain clear boundaries between work and personal life, foster- ing well-being, flexibility, and a more sustainable, pro- ductive work environment X HEALTH AND SAFETY Health and safety relating to industry-specific chal- lenges may impact employee well-being and health, po- tentially leading to increased sickness and absence rates Potential negative impact Potential negative impact X X X X GENDER EQUALITY Employees could face potential unequal treatment DIVERSITY Impacts related to accommodating the diverse needs of employees. Creating an inclusive work environment fos- tering engagement, innovation, and long-term em- ployee satisfaction, contributing to a more dynamic and successful group. Actual positive impact X X X Annual report Page 59 Additionally, our Code of Conduct supports inclusion and positive action for all, regardless of ethnicity, sen- iority, nationality, age, gender, education, religious and political beliefs, sexual orientation, gender identity, dis- abilities, and diversity of thought, ensuring everyone feels supported and valued within our group. Policies (S1-1) Anchored in our group’s values is a steadfast commit- ment to respecting and protecting the human and labor rights of our workforce. Our human rights commitments are discussed on page 56 and 101 of the appendices. We take all reports of discrimination, harassment, un- lawful actions, or any misconduct that does not align with our Code of Conduct and Human Rights policy se- riously. These reports can be submitted through our Whistleblower system to our Audit Chair or through HR. Through both channels, investigations are conducted, impacts are mitigated, and insights are integrated into our policies and management systems to support future prevention. Better Collective does not have a supplier code of conduct. As detailed in the table, our policies to manage work- force topics address the material topics that potentially can or impact our employees. Combined, these policies and procedures demonstrate our dedication to uphold- ing and implementing our values. We are committed to ensuring that our policies adhere to internationally recognized standards, reflecting our dedication to creating a safe, inclusive, and fair work- place. To address impacts on our workforce, we have implemented various policies. Our Human Rights policy explicitly recognizes our responsibility to operate with respect for human rights and to ensure equal treatment of all regarding respect and dignity. Our Code of Con- duct sets clear expectations regarding integrity, re- spect, and accountability in our workplace, including fair and transparent employment conditions. Better Collective, in its assessment, has not identified any groups at particular risk of vulnerability and, there- fore, has not established a specific policy in this regard. Please read more about the policies for S1 on p. 54-57. We maintain a management system for workplace pre- vention, including a Safer gambling policy to support employee wellbeing. Our Anti-Harassment policy aims to eliminate discrimination and harassment. Annual report Page 60 Engagement survey • • Gender balance by local laws, reinforcing our commitment to a work- place culture where employees feel secure when voicing concerns. Through ongoing training, leadership ac- countability, and structured feedback mechanisms, we ensure that all employees know their rights and the channels available for raising concerns while maintain- ing a safe and respectful workplace. Additionally, lead- ership must report any concerns they witness or are made aware of. These structures provide both formal and informal ways for employees to engage, raise issues, and ensure their rights are respected per their employ- ment contracts and Better Collective’s commitments. Engaging with our workforce We incorporate several engagement channels to gather valuable insights directly from our employees. The Bet- ter Workplace Evaluation, which is common for all our offices, helps determine improvement areas and evalu- ate the effectiveness of our mitigation processes. The 2024 survey received a 90% participation rate across the group and indicated a healthy and effective work en- vironment with engaged and highly motivated employ- ees. The survey resulted in an engagement score of 82%, representing the levels of enthusiasm and connection employees have with our group. iGaming industry and partnerships about impacts (S1-2) At Better Collective, we are committed to continuous engagement with our workforce, ensuring that employ- ees have a voice in shaping our workplace environment and informing decisions that affect them. Our approach is built on structured engagement processes, transpar- ency, and open communication, allowing us to identify and address actual and potential impacts on our work- force. Engagement occurs through formal and informal channels, including surveys, events, and workshops. Regular touchpoints such as monthly All-Hands meet- ings, onboarding and exit surveys, and leadership Q&A sessions further strengthen our commitment to listening and acting on employee input. New employees, includ- ing those welcomed from acquired companies, are in- troduced to Better Collective and our policies through an extensive onboarding program. These groups play a role in shaping engagement initia- tives and advocating for employee-driven improve- ments. However, as we are currently working to strengthen our sustainability framework with a strong focus on measuring success and impacts, resources have been lacking to drive the ERGs. We recognize that these groups provide valuable opportunities for em- ployees to contribute to workplace culture, and as part of our broader sustainability agenda, we are assessing how to reintroduce best-structured employee engage- ment efforts that align with our strategic priorities. Bet- ter Collective does not have specific measures to gather insights from potentially vulnerable or marginalized groups actively. The evaluation further captures employees' experiences and helps determine mitigation approaches, evaluate effectiveness, gather insights on impacts, address spe- cific needs, support well-being, and guide initiatives. Feedback is considered and integrated into policy and initiative development when applicable. To assess the effectiveness of our engagement processes, we com- pare year-on-year results, tracking trends and improve- ments over time. Feedback is recorded, analyzed, and communicated to employees, ensuring they see how their input has influenced decision-making. Grievance mechanisms We have established a grievance mechanism through our People and Culture team for employees to raise con- cerns directly. This internal channel is accessible via the Better Workplace Evaluation or directly with local HR and office representatives, as detailed in our employee handbooks. Process to remediate impacts (S1-3) We conduct biannual development dialogues between managers and employees to discuss each employee's performance and further development. Our leadership development initiative ensures our managers' continu- ous professional development to match our business's ever-changing nature. By supporting our managers' professional and personal development, we enable them to identify and deal with challenges in their respective teams. Ultimately, our People & Culture team and Group management oversee employee engagement and en- sure that feedback is integrated into decision-making. At Better Collective, we are committed to fostering a transparent and safe work environment where employ- ees can raise concerns and seek remediation without fear of retaliation. Our remediation processes include formal grievance channels. Regular engagement sur- veys assess employees’ awareness and trust in these structures, ensuring that employees feel comfortable raising concerns. We enforce a strict anti-retaliation pol- icy, protecting employees who report concerns. Addi- tional legal safeguards are implemented where required Our People and Culture team manages the resolution process on a case-by-case basis, with our Legal and Compliance team involved if necessary, ensuring issues are tracked and monitored appropriately. Effectiveness is overseen by People and Culture, with feedback gath- ered through employee surveys to assess awareness and trust in our channels. Engagement groups Our four Employee Resource Groups (ERGs) are cur- rently inactive but focused on the following: • • Mental well-being and community building Culture and celebrations Annual report Page 61 Whistleblower system inclusive, and equitable. By regularly assessing and in- corporating employee feedback through our engage- ment mechanisms and formal channels, we ensure that our efforts align with their needs and contribute to a transparent, supportive, and inclusive workplace. Peo- ple and Culture, in combination with the Sustainability Board, plays a central role in managing and monitoring these initiatives, ensuring compliance with our policies and overseeing progress. and the sports industry, stem from structural barriers— such as the lower number of female graduates in rele- vant fields. Tackling these issues demands industry- wide efforts, and we are committed to playing an active role in driving meaningful change through targeted ini- tiatives, partnerships, and internal improvements. home office equipment. Managers provide regular check-ins to ensure workload balance, and we monitor employee feedback, sick leave, and stress-related ab- sences. Our Whistleblower system is operated externally and al- lows for the confidential submission of complaints re- garding employee concerns relating to discrimination, harassment, or unethical conduct. Accessible via our in- tranet and website and detailed in our employee hand- books, this channel ensures employees can report seri- ous offenses or suspected offenses with complete ano- nymity. Our Audit Committee chair tracks and monitors issues raised, with People and Culture and Legal and Compliance involved if necessary. The system’s effec- tiveness is measured annually through social surveys, where employees provide feedback on their awareness and trust. Compliance with local legislation is overseen by our Legal and Compliance team. Health and safety This material IRO addresses the management of a se- cure and healthy workplace. For Better Collective, this encompasses actively promoting a safe and secure working environment that promotes mental health and wellbeing, ultimately enhancing job satisfaction. We do not have a physical production, so the risk of work-re- lated injuries and accidents is low. However, employees' health is still very much a factor in having satisfied em- ployees. Additionally, we are particularly focused on employees' exposure to gambling due to their close work with betting content. Working conditions Overall, we are committed to ensuring good working conditions and complying with existing regulations and recognized human rights standards. Our focus remains on maintaining a high standard of workplace practices that align with legal requirements and ethical guidelines, ensuring that all employees are treated fairly and re- spectfully. We aim to ensure that our practices do not cause or con- tribute to significant negative impacts while proactively addressing diversity, equality, and inclusion risks. Through these efforts, we remain committed to building a resilient and people-centric workplace that evolves with our employees' needs. We handle employee feed- back following our policies, ensuring compliance with GDPR and other relevant regulations. Upholding the highest ethical standards, we prioritize employee well- being by maintaining confidentiality and fostering a cul- ture of trust. This enables us to collect honest and con- structive input through various engagement channels, ensuring all employees feel supported, valued, and in- cluded in shaping our workplace. Better Collective constantly reviews the effectiveness of channels through qualitative tracking. Secure and transparent employment Better Collective prioritizes secure, transparent employ- ment with fair wages, clear contracts, and career devel- opment. Most full-time employees have long-term con- tracts. Benefits align with local markets, ensuring fair compensation. We track job stability through tenure, turnover, and employee feedback, continuously improv- ing workplace conditions. We prioritize health and safety in compliance with the regulations and standards in the countries in which we operate. As such, each office has localized policies fol- lowing legal requirements and market standards. We run local health and safety initiatives to assess health and safety risks and generate preventive solutions. On a corporate level, designated staff members trained in first aid and fire prevention issue corporate guidelines, perform workplace evaluations, and maintain the fire in- structions and evacuation plan(s). Our approach (S1-4) Better Collective has not yet established formalized ac- tions across all material IROs. The company intends to implement these where relevant in the coming years. At Better Collective, our policies, procedures, and pro- cesses form the foundation of our commitment to pre- venting potential negative impacts while fostering pos- itive outcomes. These frameworks guide our efforts to identify, assess, and address material impacts on em- ployees, ensuring that our workplace remains healthy, Work-life balance Addressing systemic challenges in our industry, such as gender inequality and fostering a more equitable work- place, requires a multifaceted and collaborative ap- proach. At Better Collective, we recognize that chal- lenges, like the underrepresentation of women in tech Better Collective prioritizes work-life balance through flexible work arrangements, remote work policies, and extra time off. Most employees benefit from a flexible schedule, with support such as internet allowances and Annual report Page 62 In 2023, we introduced our “Movin’ May” campaign, and following positive employee feedback, we continued this key event in 2024. “Movin’ May” is a month-long well-being campaign during Mental Health Awareness Month across all our offices. While only taking place dur- ing May, every aspect of the campaign is designed to in- spire and motivate employees to incorporate physical activity into their daily routines. Internal videos on how to incorporate more movement into everyday work rou- tines were launched, including challenges like opting for the stairs instead of taking the elevator and encouraging walking & talking, when possible, instead of stationary meetings. The main event of the “Movin’ May” campaign is a month-long step count challenge based on team ef- forts. Hence, collaboration is also an essential aspect of the campaign. With 426 employees participating across all offices, we exceeded our goal of 115,000,000 steps by taking an incredible 129,659,965 steps toward better mental and physical health. while ensuring that employees know how and where to seek help if needed. workforce. We continue refining recruitment strategies, ensuring hiring managers receive training on inclusive hiring practices and that job descriptions use gender- neutral language. This also includes using personality tests for all hires, except in the US. This ensures objec- tive evaluation of the individual candidate. Effectiveness is assessed through workforce diversity metrics and leadership succession planning reviews. Policies sup- porting our commitment include a zero-tolerance ap- proach to workplace harassment, gender diversity in hir- ing practices, and succession planning that integrates diversity considerations. held by the underrepresented gender, while women made up 31% of our total workforce in 2024. Results that underscore the need for continued action. The targets are aligned with policy goals to improve diversity and gender equality. The developments are available for all employees to track the status of the targets on the in- tranet. However, they are not involved otherwise. To further strengthen our approach, we integrated Gamalyze, a safer gambling software, on our internal employee platform. This tool helps employees assess their own gambling behaviors and better understand potential risks, fostering a more informed and responsi- ble approach. These initiatives build on our internal safer gambling policy launched in 2022, which formalized our commitment to safer gambling education within the workplace. Nevertheless, by embedding gender equality and diver- sity into our business strategy, we remain committed to fostering a workplace where all employees have equal opportunities to succeed while we seek to leverage the benefits of diversity to drive long-term business growth and innovation. Read more on our safer gambling approach on page 74. As outlined in our Code of Conduct, we are dedicated to cultivating a diverse workforce and an inclusive and eq- uitable work environment. We focus on increasing gen- der representation at all group levels and fostering awareness of unconscious bias. Moreover, all employees participate in mandatory unconscious bias and anti-har- assment training, reinforcing inclusivity across all group levels. This training is mandated within the first year of employment. Targets (S1-5) Gender equality and diversity The Executive Management has set specific targets re- lating to gender diversity but otherwise continuously evaluates our initiatives and their impacts at appropriate management levels as part of our business conduct. Our established processes are anchored within the functions that have day-to-day responsibility for ensuring adher- ence to our policies and our continuous engagement channels and channels to raise concerns. This decision reflects our commitment to strategic focus and indus- try-specific priorities. Better Collective has not estab- lished specific targets for other identified impacts, risks, and opportunities outside of Gender equality and diver- sity, as priorities and strategies may evolve. The Execu- tive Management and Sustainability Board conduct As a group operating at the crossroads between tech- nology and sports, we acknowledge the structural barri- ers that contribute to potential gender inequality, in- cluding disparities in career opportunities. Recognizing this disparity, initiatives promoting diversity and gender equality are continuous priorities for our group. At the same time, diversity is a key driver of opportunity, inno- vation, and business growth within Better Collective, strengthening our ability to make better decisions, en- hance creativity, and attract top talent. To address these IROs, we have implemented targeted initiatives to miti- gate the negative impact on gender equality while max- imizing the positive impact of diversity within our Being part of the sports- and sports betting industry, we seek to mitigate the potential negative impact on em- ployees' mental well-being. To mitigate this, we have implemented structured initiatives to ensure employees have the knowledge and tools to navigate safer gam- bling concerns. In June 2023, we, as a key action, intro- duced annual mandatory safer gambling training for all employees across the group, reinforcing awareness of safer gambling behaviors and providing guidance on identifying potential signs of problematic gambling We further show our commitment by having signed the Confederation of Danish Industry’s (DI) Gender Diversity Pledge along with the UN’s Women Empowerment Prin- ciples. By joining these initiatives, Better Collective iden- tifies and makes businesses more diverse. Despite our efforts, gender representation in top management re- mains below our target, with 14% of leadership positions Annual report Page 63 quarterly qualitative reviews compared to prior year to assess the effectiveness of policies and actions related to IROs, ensuring alignment with evolving priorities. The target has been established to address the positive im- pact associated with Gender Equality under the IRO "Di- versity". Annual report Page 64 Accounting principles Gender distribution Gender distribution (S1-6) The total headcount of employees at Better Col- lective A/S is determined by summing the em- ployee numbers across all countries of operation, excluding freelancers and contractors. This data is as of 31 December 2024. Number of own employees (head count) by gender 2024 1,079 478 Male Female Gender distribution refers to the number of em- ployees whose legally recognized gender is female or male. At Better Collective A/S, the gender dis- tribution is calculated by adding the total head- count of women and men separately across all countries of operation while excluding freelancers and contractors. These totals are then divided by the overall headcount for women and men, re- spectively. This data is as of 31 December 2024. Other/not reported % of underrepresented gender Total Employees 0 31% 1,557 Geographic distribution (S1-6) Number of own employees (head count) 2024 202 Geographic distribution United States Serbia 422 The total number of employees by country for countries where Better Collective has 50 or more employees represents at least 10% of its total num- ber of employees. Denmark 229 Others 704 Total Employees 1,557 Others: All countries with less than 50 employees and representing less than 10% of the total number of employees combined. The geographic distribution of employees is deter- mined by summing the total headcount of employ- ees across the specific geographical locations where our entities operate, based on data from 31 December 2024. Annual report Page 65 Accounting principles Employee turnover Accounting principles Employment characteristics Employment characteristics Employee turnover is defined as the cumulative headcount of employees who have departed from Better Collective Group, whereas the employee turnover rate is defined as the proportion of em- ployees who have left Better Collective Group ex- pressed as a percentage. The total number of em- ployees who left Better Collective Group is calcu- lated by aggregating departures across all loca- tions of operation during the reporting period, in- cluding employees who leave voluntarily or due to dismissal, or retirement. Permanent employees are defined as employ- ees with an indefinite employment contract. This category includes student assistants and trainees but excludes freelancers and contrac- tors. The total number of permanent employees at Better Collective is calculated by summing the count of permanent employees across all our locations. This calculation is based on data from 31 December 2024. (S1-6) Our workforce consists of permanent employees, which helps attract and retain top talent, creating a knowl- edgeable and experienced team. This allows us to in- vest continuously in employee development, and the reciprocal approach ensures continuity and operational effectiveness. Temporary employees are defined as employ- ees whose employment is tied to the completion of a specific project or has a predetermined du- ration. This category includes interns but ex- cludes freelancers and contractors. The total number of temporary employees at Better Col- lective is calculated by aggregating the num- bers of temporary employees across all our lo- cations. This calculation is based on data from 31 December 2024. Employment characteristics Total employees Permanent employees Female 478 478 0 Male 1,079 1,078 1 Other Total 1,557 1,556 1 To determine the percentage of departing em- ployees, the total number of departing employees (the "turnover number") is divided by the average number of employees (the "average headcount") during the same period, aligning with the annual reporting method. The average headcount is cal- culated by aggregating the month-end headcount of active employees (permanent employees) for each month in the reporting period and dividing by the total number of months in the reporting pe- riod. 0 0 0 Number of temporary employees by headcount Employee turnover (S1-6) Due to shifting market dynamics, a cost-efficiency pro- gram was implemented around October 2024, contrib- uting significantly to the higher employee turnover rate observed during the reporting period. Non-guaranteed employees are defined as em- ployees who are employed without a guarantee of a minimum or fixed number of working hours. Employee turnover 2024 441 Employee turnover (no.) Employee turnover % 28% Annual report Page 66 Gender distribution top management (S1-9) Accounting principles Gender distribution top manage- ment Gender distribution in top management Head count Share 86% Top management is defined as executive man- agement and their direct reports. Executive man- agement comprises the highest administrative and supervisory level. Direct reports are employ- ees reporting directly to executive management with managerial responsibilities at the vice presi- dent and senior vice president job levels who are part of the group management team. Gender dis- tribution within top management is calculated by dividing the number of male and female employ- ees in top management by the total number of employees in top management, respectively. Male 12 2 Female 14% Total Employees 14 100% Age distribution (S1-9) Age distribution of employees in headcount Unknown 2024 0 Age distribution Under 30 years old 510 1,017 30 Between 30 and 50 years old Above 50 years old The age distribution of employees is determined by summing the total headcount of employees under 30 (29 or younger), those between 30 and 50 (30 to 49), and those aged 50 or older, ex- cluding freelancers and contractors. This calcula- tion is based on data from 31 December 2024. Total Employees 1,557 Annual report Page 67 People & Culture team actively collaborates with each site to foster a safe and secure work environment. Our office teams play a vital role by optimizing workspace arrangements to meet safety standards. Additionally, where legally required, we have employee-elected rep- resentatives who are dedicated to focusing on work- place health and safety, ensuring that our policies not only comply with regulatory demands but also promote a culture of safety. insurance plans as they are covered through their spouse’s insurance. We rely on our local People & Cul- ture teams to manage and uphold each location's insur- ance policies. Health and safety (S1-14) Accounting principles Health and safety Work-related injuries are infrequent in our workplace, as the nature of our tasks does not impose significant phys- ical demands on employees. That said, three work-re- lated injuries were recorded in 2024. While we cannot share specific details due to privacy considerations, there are no identifiable trends or recurring patterns in these incidents. Number of work-related accidents: a shared doc- ument serves as the central record for health and safety documentation. Local HR teams contribute relevant input in the designated document that then consulates into the group overview re- ported, this ensures accurate and comprehensive reporting. The consolidated number of accidents occurred for employees within the reporting pe- riod are based on the numbers reported by local HR. This approach ensures tailored compliance and safety strategies that respect local regulations while upholding our commitment to employee welfare globally. No oc- cupational fatalities were reported among our employ- ees or any personnel working on our sites during 2024. We have decided to address this aspect separately within our safety management system and health man- agement strategy. In terms of health management, we consistently meet legal obligations by providing mandatory insurance cov- erage, collaborating closely with external experts to en- sure our offerings are both compliant and competitive. Each employee category at every location is evaluated to confirm that all legal requirements are consistently satisfied. In specific regions, we extend additional cov- erage to align with prevailing market standards, a pro- cess carried out in partnership with our external advisor. It is relevant to note that in regions such as France and North America, some employees have opted out of our Our People & Culture team is tasked with overseeing the safety management system, ensuring a robust frame- work for reporting. They diligently track and record safety incidents at each location, consolidating this data into a shared document that serves as a central reposi- tory for health and safety documentation. This central- ized record is crucial for maintaining transparency and accountability across all our locations. Moreover, the The work-related accident rate is expressed as the number of recorded incidents per one million hours worked. It is determined by dividing the to- tal number of registered cases during the report- ing period by the cumulative hours worked across Better Collective, then multiplying the result by one million. Percentage of people covered by H&SMS The percentage covers the employees who are covered by our Health and safety management system, which as a minimum contains the legal requirements. Health and safety 2024 Percentage of people in own workforce (headcount basis) who are covered by health and safety management system based on legal requirements and (or) recognized standards or guidelines 100% 0 Number of fatalities as result of work-related injuries and work-related ill health Number of fatalities as result of work-related injuries and work-related ill health (other workers working on un- dertaking's sites) Number of recordable work-related accidents for own workforce Rate of recordable work-related accidents for own workforce 0 3 1.3% Annual report Page 68 Work-life balance (S1-15) Accounting principles Work-life balance All our employees are entitled to take family-related leave in accordance with employment terms and condi- tions described in employee handbooks and contracts. Family-related leave refers to time off granted for responsibilities such as maternity or paternity leave, parental leave, caring for sick relatives. It does not include time off for personal medical appointments, pregnancy- related illnesses outside of parental leave, or absences due to funerals or bereavements. Additionally, unspecified leave of absence is not consid- ered part of family-related leave. Work-life balance Men Women 2024 Percentage of entitled employees that took family-related leave, by gender 7% 9% 8% The calculation for family-related leave is based on the number of unique individuals of each gender who have taken this type of leave, divided by the total number of eligible employees of the same gender. Eligible em- ployees refer to employees who have the legal right, as defined by appli- cable national laws and Better Collective policies, to temporarily step away from their professional duties to address family-related responsi- bilities covered by the definition of family-related leave. Eligible employees are determined using the same criteria as the "total headcount" as all employees in Better Collective are eligible for family related leave. Employees who take family-related leave in multiple months within the same reporting year are counted only once. As family-related leave is not consistently registered in our internal sys- tem, data is gathered from responsible members of the People & Culture team All instructed to provide reported figures broken down by gender. Annual report Page 69 Compensation (S1-16) Gender pay gap 2024 33% 1:45 Accounting principles Compensation The reported gender pay gap at Better Collective Group is influenced by the employee population being pre- dominantly male which inherently skews the average pay gap. This effect is particularly pronounced due to the concentration of male employees in upper-level roles. The higher compensation associated with these roles contributes to a higher average pay for male em- ployees. Our diversity initiatives aim to balance gender representation throughout our group and achieve pay equity for equal qualifications and jobs. Although we practice equal pay for equal work, the overall figures are affected by the parameters. The annual total remunera- tion ratio was 1:45, amplified by geographical differ- ences. Gender pay gap Annual total remuneration ratio The gender pay gap is defined as the difference in average gross hourly pay between male and female employees at Better Collective. The gender pay gap is calculated by subtracting the average gross hourly pay level for female employees from the average gross hourly pay level for male employees, dividing the result by the average gross hourly pay level for male employees, and then multiplying by 100. The average gross hourly pay level is calculated by aggregating gross pay (the sum of guaranteed, short-term, and non-variable cash compensation) and variable pay (benefits in cash, which is the sum of cash allowances, bonuses, commissions, cash profit-sharing, and other forms of variable cash payments) and dividing by the total number of paid hours. "Paid hours" are defined as the aggregate of the number of paid hours in the re- porting period, which include worked hours, and any hours paid at the gross hourly rate, such as vacation, sick leave, or other types of paid time off. Annual total remuneration ratio is defined as the ratio of the annual total remuneration of the highest-paid employee to the median annual total remuneration of all other em- ployees at Better Collective Group. The ratio is calculated by dividing the annual total remuneration of the highest-paid employee by the median annual total remuneration of all other employees (excluding the highest-paid employee). Annual total remuneration includes direct remuneration, which is the sum of benefits in cash (variable pay, which is the sum of cash allowances, bonuses, commissions, cash profit-sharing, and other forms of variable cash payments), benefits in kind (employer- paid benefits, such as cars, private health insurance, life insurance, wellness programs, pension contributions, and any other employer-paid benefits), and the total fair value of all annual long-term incentives granted during the reporting period (for example, stock option awards, performance stock shares or units). Annual report Page 70 In 2024, no records of fines or penalties were associ- ated with discrimination. Furthermore, no human rights incidents involving our workforce took place in 2024, and as a result, no fines, penalties, or compensations related to such incidents were recorded. Discrimination incidents reported and complaints filed (S1-17) Accounting principles Discrimination incidents reported and com- plaints filed We had 13 cases reported in the Better Workplace eval- uation covering the period from summer 2023 to sum- mer 2024. An internal policy for handling these cases is established. Number of complaints filed through channels for people in our own workforce to raise concerns: Channels for own workforce follow the local legal requirements. Common for all countries are the Better Workplace Evaluation, HR, and own manager. Whis- tleblower cases are included in these numbers. Based on the cur- rent available data collection methodology, we include all cases raised in the Better Workplace evaluation as of end of survey. We handle every discrimination and harassment inci- dent and complaint within our organization through our internal procedures. Due to the sensitive nature of these matters, we do not share any specific details about the incidents. Each report or complaint is treated with utmost confidentiality. Our procedures are de- signed to ensure that employees can confidently and securely report any incident. Human rights, complaints, fines, and penalties: We monitor these elements locally and data from each location are reported into Group HR where the numbers are consolidated based on the in- put given at the end of year Incidents, complaints and severe human rights impacts 2024 Number of incidents of discrimination including harassment 13 Number of complaints filed through channels for people in own workforce to raise concerns Number of complaints filed to National Contact Points for OECD Multinational Enterprises 0 0 Amount of fines, penalties, and compensation for damages as result of incidents of discrimination, including harassment and complaints filed 0 0 Number of severe human rights issues and incidents connected to own workforce Number of severe human rights issues and incidents connected to own workforce that are cases of non respect of UN Guiding Principles and OECD Guidelines for Multinational Enterprises 0 0 Amount of fines, penalties, and compensation for severe human rights issues and incidents connected to own workforce Annual report Page 71 Consumers and end-user IROs (S4 SBM-3) Our core business is closely linked to our users, whose data we process and who may depend on our products in their personal lives. Our solutions are likely to impact users materially. Better Collective’s business model as a global digital sports media group and sports betting af- filiate directly interacts with consumers and end-users through digital content, targeted advertisements, and affiliate partnerships. Our operations are built on ensur- ing user engagement and delivering high-quality, vetted information, which informs our strategic focus on re- sponsible digital advertising, ethical marketing prac- tices, and regulatory compliance. The identification of actual and potential impacts on users, particularly re- garding data privacy, information accuracy, and safer gambling, underscores the necessity of robust cyberse- curity frameworks and transparent operational policies. These align with our long-term strategy of promoting sustainable growth through ethical user engagement and adherence to legislative requirements. VALUE CHAIN LOCATION TIME HORIZON OWN OPERATIONS LONG-TERM DOWNSTREAM SHORT-TERM MEDIUM-TERM UPSTREAM INFORMATION RELATED IMPACTS FOR CONSUMERS AND END-USERS Potential both negative and positive impact X X Impacts on consumer and end-user from Better Collective’s services and operations PERSONAL SAFETY OF CONSUM- ERS AND END-USERS Potential negative im- pact X X X X Impacts on at-risk users’ personal safety SOCIAL INCLUSION OF CONSUM- ERS AND END-USERS Potential negative im- pact Impacts on consumers and end-us- ers relating to responsible market- ing practices Understanding our impact on consumers and end-users has led to strategic adaptations in our business model. Our commitment to responsible engagement has re- sulted in initiatives such as strict editorial guidelines for content accuracy, partnerships with responsible gaming organizations, and enhanced data protection measures under GDPR. All of which have secured us numerous compliance awards throughout the years. SAFER GAMBLING Impacts on consumers and end-us- ers relating to safer gambling. This includes providing access to self- exclusion tools, highlighting limits, and connecting users with organiza- tions that offer support for problem gambling Actual positive impact X X Annual report Page 72 We continuously invest in AI-driven tools through Mind- way AI to support safer gaming efforts and provide ed- ucational resources to consumers and end-users. These initiatives demonstrate our proactive stance in aligning business operations with evolving regulatory land- scapes and consumer protection expectations. problematic gambling behaviors. By continuously eval- uating and refining these policies, we aim to enhance consumer trust, mitigate potential risks, and contribute positively to the overall integrity of the digital sports media and iGaming industry. Better Collective has not identified any material IROs related to human rights, and therefore, it is not deemed relevant to have policies on human rights commitments related to consumers and end users. Better Collective has not had any reported cases of non-respect of the UN Guiding Principles on Business and Human Rights, ILO Declaration on Funda- mental Principles and Rights at Work, or OECD Guide- lines for Multinational Enterprises that involve consum- ers and/or end-users. If Better Collective becomes aware of a human rights impact, the Executive Manage- ment will assess and address the matter. Policy align- ments to UN Guiding Principles can be read on pages 48; 54-57 in sections Statement on due diligence, Policy overview and Business conduct policies. None of the identified IROs are considered widespread or systemic. Policies (S4-1) Our policies to manage the consumers and end-users IROs are listed in the policy overview on pages 54-57, covering all consumers and end-users potentially im- pacted by our material topics. Collectively, these poli- cies and procedures reflect our strong commitment to respecting the human rights of both consumers and end-users and our dedication to fostering a safer and more responsible iGaming experience. Through initia- tives focused on education, transparency, and responsi- ble engagement, we ensure that users can access fact- checked, legally compliant content while promoting re- sponsible gambling behaviors. Our policies emphasize data protection, ethical marketing, and consumer well- being, aligning with regulatory frameworks and industry best practices. Additionally, our commitment to safer experiences includes age-gating mechanisms, responsi- ble advertising guidelines, partnerships with licensed operators, and integrating AI-driven tools like Mindway AI’s Gamescanner solution to detect and mitigate Annual report Annual report Page 73 Page 73 organizations with licenses in regulated markets, and providing tools (Mindway AI) and other resources that help users make informed decisions. Consumers and end-users can raise concerns through multiple channels, including dedicated support emails and online contact forms. Additionally, we collaborate with third-party or- ganizations that provide independent dispute resolution through our Whistleblower line. We ensure the availabil- ity and accessibility of these channels by regularly re- viewing and updating our complaint handling proce- dures. All concerns raised are logged and monitored. create actual and potential impacts, which we work ac- tively to manage through policies, technological solu- tions, and industry collaboration. The material actual and potential negative and positive effects we address relate to safer gambling, personal safety, data privacy, social inclusion, and access to accurate information. • • • Self-exclusion mechanisms and betting limit op- tions, available through our partner sportsbooks, to help users manage their gambling activity. Safer gambling sections across our brands, offer- ing educational content and links to responsible gambling support services. Engaging with consumers and end-users (S4-2) At present, Better Collective has not implemented a for- malized, general process for direct consumer and end- user engagement across all our operations. However, Better Collective acknowledges the importance of con- sumer and end-user input in shaping our responsible digital sports media and betting affiliation strategies. We engage indirectly through data analytics, user be- havior tracking, and adherence to regulatory feedback mechanisms. Mandatory safer gambling training for all employ- ees, ensuring that our workforce understands how to engage responsibly with and promote safer gambling practices. Addressing our impacts Safer gambling One of the most significant positive impacts of our ser- vices is the gambling education we provide. As we pro- vide content that directs users to partner sportsbooks, we recognize the need for robust, safer gambling ac- tions. However, as Better Collective is not a sportsbook, we do not have direct visibility into user betting behav- ior. We rely on our partner sportsbooks to monitor gam- bling activity, scan for signs of at-risk or problem gam- bling, and take appropriate action, as we cannot detect solely from users engaging with our content. Among other things, we only partner with licensed sportsbooks that uphold strict, safer gambling policies and interven- tion measures. To further reinforce safer gambling, we have embedded educational resources and self-help tools across our platforms, including: While we cannot regulate sportsbooks’ activities, we take responsibility for raising industry standards by holding them accountable during the customer acquisi- tion and ongoing CRM processes. Through Mindway AI’s AI-driven solutions, we support sportsbooks in setting the bar higher for user protection and safer gambling, which has been a key action to enhance our positive im- pact on an ongoing basis. This approach extends our im- pact beyond our direct operations, ensuring that sports- books surpass minimum compliance standards and pro- actively implement best-in-class, safer gambling tools. We continuously assess the effectiveness of our chan- nels and make improvements based on data insights and feedback. Better Collective actively communicates the availability of complaint resolution channels through website notices, help center articles, and partnerships with consumer advocacy groups. Regular consumer sur- veys and feedback mechanisms help gauge trust and awareness of these processes. In some cases where no formal remediation process is established, Better Collec- tive is actively developing structured frameworks that align with industry best practices and consumer protec- tion guidelines. Better Collective actively explores structured consumer engagement initiatives, including user feedback plat- forms, consumer advisory panels, and direct surveys. These measures will enhance our understanding of con- sumer expectations, improve responsible gambling practices, and align with evolving regulatory and ethical standards. Our commitment remains to ensuring trans- parency, accountability, and continuous improvement in consumer and end-user interactions. Process to remediate impacts and channels to raise concern (S4-3) Mindway AI is a subsidiary of the Better Collective Group and plays a critical role in enhancing user protection within the iGaming industry. Operating independently while aligning with Better Collective’s safer gambling strategy, Mindway AI supports sportsbooks worldwide with AI-based tools that detect, prevent, and mitigate problem gambling. Mindway AI’s GameScanner is an AI- Our approach (S4-4) • Mindway AI’s Gamalyze self-assessment tool is embedded across 30+ brands and helps users evaluate their gambling behaviors before engag- ing with sportsbooks. As a global digital sports media group with sports bet- ting affiliate operations, we interact directly with users through digital content, targeted advertisements, and affiliate partnerships. Our services and operations Better Collective is committed to addressing and reme- diating negative impacts experienced by consumers and end-users. Our approach includes working with regula- tory bodies, partnering with responsible gambling Annual report Page 74 powered player monitoring tool that allows operators to detect at-risk gambling behaviors in real time. Currently operating in 62 jurisdictions across 38 countries, GameScanner monitors over 9 million players monthly, enabling early intervention and support for users before gambling habits become problematic. set of data ethics principles that support ethical deci- sion-making when using data across Better Collectives activities. We employ data to provide our users a unique and educational experience whenever they visit our websites and/or engage in our communities. To give our users the best and most relevant experience possible, we process various categories of data, including user- related and personal data. In 2024, we established a pro- cess and governance setup to handle and evaluate data ethics reporting. • • Our compliance operations team regularly moni- tors our assets, including social media, to ensure adherence to responsible marketing principles. This includes conducting negative keyword checks to identify and remove content not aligning with safer gambling and compliance guidelines. while reducing exposure to misinformation. We ensure that our platforms promote responsible and accurate in- formation through editorial guidelines and industry best practices. One of our platforms' most significant positive impacts is our ability to educate and inform users about sports betting, safer gambling, and the broader iGaming industry. Access to fact-based, transparent, and legally compliant information helps users make informed deci- sions, reducing misinformation and potential harm. As a key action to reinforce this impact on an ongoing basis, we have: Employee training is a core component of our re- sponsible marketing efforts. To ensure awareness and adherence to ethical advertising practices, we have implemented a compliance onboarding form, which all relevant employees must understand and accept as part of their onboarding process. We have also developed advertising rules training videos, available in bite-sized modules, covering all aspects of socially responsible marketing with quizzes to reinforce key principles. Mindway AI also enhances player awareness through Gamalyze, a gamified self-assessment tool that helps users understand their gambling behavior by analyzing real-time decision-making patterns. By providing per- sonalized feedback and behavioral insights, Gamalyze allows players to self-reflect on their gambling tenden- cies and make informed choices. Beyond external indus- try partnerships, Better Collective integrates Mindway AI’s expertise within our operations: Responsible marketing Ensuring responsible marketing practices is critical to preventing misleading claims, unethical targeting, or content that could contribute to gambling-related harm for our users. As a key action to mitigate these risks, we have established a comprehensive compliance frame- work that ensures on an ongoing basis that all marketing content is socially responsible, transparent, and aligned with industry regulations: • Strict editorial guidelines to ensure all published content is accurate, unbiased, and compliant with regulations. • • AI-driven content monitoring to detect and pre- vent misleading or non-compliant information. Betting education resources, such as our Betting Academy, to help users understand betting risks and strategies responsibly.pri • Compliance hub, an internal resource center providing advertising compliance materials, regu- latory updates, and ethical marketing guidelines. • • Gamalyze is available on 30+ brands across Better Collective’s House of Brands, offering users an ac- cessible way to assess their gambling behavior. Mindway AI experts contribute to safer gambling content, ensuring our educational resources align with scientific research and the industry’s best practices. Through this structured compliance approach, we en- sure that all marketing and promotional activities re- main ethical, responsible, truthful, and aligned with in- dustry standards. • Advertising guidelines outline principles for so- cially responsible advertising, safer gambling, and the protection of minors. These guidelines prevent misleading messaging, ensure age-gating, etc. Our internal Advertising compliance policy sets out fundamental ethical guidelines for all market- ing and content creation activities, mandating compliance with regulatory requirements and in- dustry best practices. Providing access to accurate and well-regulated infor- mation supports informed decision-making and empow- ers users to make more enlightened and responsible de- cisions in the iGaming space. Data privacy and protection • Access to accurate information Tracking and managing the Better Collective has adopted a data ethics policy in ac- cordance with Section 99d of the Danish Financial State- ments Act. This section stands as our data ethics report for the fiscal year 2024. The data ethics policy outlines a Our content strategy prioritizes transparency, educa- tion, and user empowerment. We recognize that access to high-quality, fact-based information is a material op- portunity, allowing users to make informed decisions effectiveness of our actions We assess the effectiveness of our policies and initia- tives through qualitative and quantitative tracking methods. These include: Annual report Page 75 • Monitoring engagement with our Mindway AI tools and other engagement with safer gambling con- tent across our platforms. we co-founded the Responsible Gambling Affiliate As- sociation (RGAA) with our peers, Catena Media, FairPlay Sports Media, Gambling.com Group, Spotlight Sports Group, and XLMedia, in 2023. The RGAA is an independ- ent trade association committed to being a trusted voice that promotes responsible gambling and advocates for regulation that supports equitable market participation. approach to tracking effectiveness, engaging in indus- try-wide collaborations, and continuously refining our policies ensures that we remain at the forefront of re- sponsible and sustainable engagement in digital sports media and betting affiliation. policies effectively minimize harm and maximize user protection. • • • Tracking completion rates of internal safer gam- bling training for employees. Conducting compliance audits to ensure adher- ence to advertising and data privacy regulations. Collecting user feedback and analytics to under- stand how they engage with our products and content. Targets (S4-5) While we do not currently have quantitative targets spe- cifically linked to our impacts on users, we actively mon- itor and assess the effectiveness of our policies and ini- tiatives through qualitative evaluations, compliance tracking, and user engagement insights. Our focus re- mains on ensuring that our policies related to safer gam- bling, data privacy, responsible marketing, and content transparency align with regulatory standards and ethical best practices. Our strategic ambition is to continuously improve our safer gambling initiatives, strengthen user protections, and enhance transparency and compliance across our platforms. Again, this year, we participated in the Safer Gambling Week, a cross-industry initiative to promote safer gam- bling in Europe. Similarly, we are active members of var- ious national associations, one of which is the Danish Online Gambling Association (DOGA). Through DOGA, we work to initiate dialogue between all stakeholders in the gambling industry to secure a responsible and safe gambling market in Denmark and other countries. We are also members of the German Association for Tele- communication and Media (DVTM) and the US National Council on Problem Gambling (NCPG). Through partici- pation in multi-stakeholder initiatives, we contribute to strengthening industry-wide safer gambling policies and promoting ethical digital engagement, ultimately mitigating negative impact on users. • All policies, including our Safer Gambling Code and Data ethics policy, are reviewed annually to ensure they remain aligned with industry best practices and regulatory updates. Industry engagement We actively collaborate with industry peers and stake- holders to drive higher standards in user protection. We strongly believe that our industry's long-term sustaina- bility and growth depend on sustainable operations. Ev- idently, this is not achieved by a single business but ra- ther by a collective effort across the industry. This is why we, in 2019, partnered with our peers Racing Post and Oddschecker to co-found the UK-based trade associa- tion Responsible Affiliates in Gambling (RAiG). Through RAiG, we promote socially responsible marketing of gambling products and a safer gambling environment for users. As a condition of membership in RAiG, each member is subject to an annual social responsibility au- dit conducted by an independent third party. Moreover, This ambition is reflected in our ongoing investments in safer gambling technologies, educational resources, and ethical marketing practices. Moving forward, we aim to refine our approach to tracking and evaluating user impact by developing a more structured impact measurement framework that could incorporate both qualitative and quantitative indicators. Until then, we will continue leveraging regulatory feedback, industry benchmarking, and internal reviews to ensure our We remain committed to managing our operations' ac- tual and potential impacts on users. By integrating safer gambling measures, data privacy protections, responsi- ble marketing practices, and content accuracy safe- guards, we strive to mitigate negative impacts while re- inforcing positive contributions. Our structured Annual report Page 76 Based on their knowledge of Better Collective and our regulatory framework, IROs are identified within the Governance standard from insights from Group Legal and Compliance and People and Culture. The assess- ment of our operations covers the entire Better Collec- tive group, through which we practice extensive and regular communication on business conduct proce- dures. As such, policies are generally group-wide, while the strategy for corporate culture is aligned across our group. The assessment rests on initial engagement with relevant stakeholders. In addition, both hard and soft laws, such as the Danish Recommendations on Corpo- rate Governance, the EU Whistleblower Directive, and the OECD Guidelines on Multinational Enterprises, etc., were consolidated and assessed against our current practices. Governance Business conduct IROs (G1 IRO-1) Read about the role of the administrative, supervisory, and management bodies on page 23. At Better Collective, ethical business conduct is funda- mental to our business model, ensuring compliance with relevant legislation and international guidelines while fostering responsible, ethical, and transparent business conduct. Strong governance is the foundation of our sustainability strategy, embedding accountability, com- pliance, and transparency into all aspects of our busi- ness to maintain trust, resilience, and long-term success. As a group operating internationally, our success de- pends on maintaining efficient, competent, and ethical business practices. We prioritize compliance and integ- rity to mitigate legal and financial risks and protect em- ployees, prevent corruption, and support whistleblow- ers who report unethical behavior. Beyond regulatory requirements, these commitments are essential to safe- guarding human rights, maintaining our operating li- cense, and ensuring a sustainable and responsible busi- ness approach. As a global digital sports media group with growing influence, we acknowledge our responsi- bility to promote ethical, transparent, and fair practices across our industry. Annual report Annual report Page 77 Page 77 VALUE CHAIN LOCATION TIME HORIZON OWN OPERATIONS LONG-TERM DOWNSTREAM SHORT-TERM MEDIUM-TERM UPSTREAM CORPORATE CULTURE A strong corporate culture fosters employee satisfaction, en- gagement, and productivity, creating a cohesive and inclu- sive work environment across our offices and the countries in which we operate. By prioritizing open communication, shared values, and a positive workplace atmosphere, we en- hance collaboration, innovation, and alignment within our or- ganization, ultimately driving long-term success and govern- ance excellence. Actual positive impact X X X X CORPORATE CULTURE Lack of good corporate culture could lead to an impact on people and governance through employee satisfaction, productivity, and a disconnect between the levels in our or- ganization across our offices and the countries we operate within. Potential negative im- pact X X X X X X CORRUPTION AND BRIBERY Lack of adherence to anti-bribery and corruption legislation and ethical standards could potentially lead to an impact on people and governance through the result of disciplinary ac- tions, employee satisfaction, the legitimacy of management, and a negative impact on the corporate culture Potential negative im- pact X X TRANSPARENT TAX PAYMENTS Responsible tax practices and transparency supports public services and economic development, strengthens trust with stakeholders, and reinforcing our role as a responsible and accountable business giving us a competitive advantage within the industry Potential positive im- pact and opportunity X X X X CONTRIBUTION TO THE DEVELOPMENT OF LOCAL COM- MUNITIES Actual positive impact Impacts on locals well-being and job-qualification leaving an opportunity to the better collective group Annual report Page 78 develop editorial guidelines which ensure balanced and compliant marketing messages and include proper seg- mentation for our activities across different channels us- ing marketing technology to avoid targeting the wrong audience. but they also pose a threat to our trustworthiness and a risk to our partners, users, and authorities. Our policy on Anti-bribery and corruption is included in our Code of Conduct and implemented across the Better Collective group. Our Whistleblower scheme facilitates anony- mous reporting, and we encourage everyone to speak up if they find something in breach of our policies. We persistently work to strengthen our compliance measures by regularly reviewing and updating our anti- corruption policies to align with evolving laws and best practices. Functions most at risk for corruption and brib- ery are those in high-risk geographies, procurement, fi- nance, and sales. and autonomous nature of our Whistleblower system. The Whistleblower system is available to our own em- ployees as well as external stakeholders. The purpose of the Whistleblower system is to enable the identification and investigation of unlawful behavior through a chan- nel that allows for full anonymity and investigation. In- formation about our Whistleblower system is provided to all employees during onboarding and with available information on our intranet and externally on our corpo- rate website. The whistleblower policy encourages con- fidential reporting of legal violations and misconduct, in- cluding fraud, harassment, and financial crimes. The pol- icy protects whistleblowers from retaliation. Please see more on policies in the policy overview on pages 54-57. Business conduct policies and corporate culture (G1-1) Code of Conduct Throughout our group, we promote our Code of Con- duct as a guide for all employees on the standards and values of a compliant and responsible business. We have developed, implemented, and communicated various policies designed to cultivate a corporate culture cen- tered on responsible business conduct across our group. Our Code of Conduct is at the heart of our corporate cul- ture, which mandates compliance with relevant legisla- tion and outlines the ethical standards and values we are committed to upholding and promoting. Our Code of Conduct’s structured and integrated approach ensures that our policies are embedded effectively, prioritizing clarity, transparency, and accessibility. Our policies, in- cluding our Code of Conduct, aim to mirror the ethical standards of internationally recognized guidelines and conventions such as the OECD Guidelines for Multina- tional Enterprises, UN Guiding Principles on Business and Human Rights and the UN Declaration of Human Rights, ILO Conventions, as well as local legislation when applicable. Additionally, we conduct business in compli- ance with applicable laws, regulations, and standards. We are subject to various national compliance regula- tions in the countries where we operate, and to aid in developing a sustainable iGaming environment, we solely operate in regulated markets or markets where the authorities accept sports betting. We seek to Executive Management and the Board of Directors an- nually review and amend necessary policies, including our Code of Conduct. Going forward this will also be done in response to any significant IROs identified through the DMA process. All group-level policies are anchored within the Better Collective group and applied throughout our entities to ensure the highest possible level of alignment and to maximize adaptability to changes in internal or external circumstances, achieved through the ease of amending group-level policies. Whistleblower policy We are committed to maintaining integrity, transpar- ency, and accountability across all operations. Anyone who becomes aware of potential or actual violations of our Code of Conduct or other policies is encouraged to report this through one of various channels available, in- cluding raising the issue to a manager or addressing the concern to our People and Culture team or Legal and Compliance team. The whistleblower channel can be used to report violations of EU law within the scope of application of the Whistleblower Directive as well as re- ports otherwise regarding serious offenses or other se- rious issues, e.g., corruption and bribery, fraud, sexual harassment, etc. In compliance with the legal require- ments that Better Collective is subject to, the protection of whistleblowers is ensured through the independent Market regulation and education As sports betting expands globally, new gambling laws and regulations are being introduced to protect users and combat black-market activities. We maintain robust internal processes to stay informed on regulatory devel- opments and apply for licenses where relevant. Our in- house legal team is critical in ensuring compliance, con- tinuously monitoring and adapting our operations to evolving legal frameworks assuring compliance for our websites. Better Collective has no formal policy on po- litical engagement, lobbying, or political contributions, as our business model does not involve direct advocacy or influence over-regulation. Our focus is education and safer gambling awareness rather than shaping market regulations. While we participate in trade associations Business conduct training All new employees, including those welcomed from ac- quired companies, are introduced to Better Collective and our policies, through an extensive onboarding pro- gram. They receive business conduct training in accord- ance with our Code of Conduct covering the topics as set out in our Code of Conduct. Business conduct train- ing includes educational elements, videos, and quizzing elements to ensure that employees have understood the content. Anti-bribery and corruption We condemn the acts of corruption and bribery and up- hold a zero-tolerance policy. Not only are they illegal, Annual report Page 79 such as RAiG, DOGA, DVTM, and NCPG, this engagement is strictly within the scope of corporate social responsi- bility and safer gambling initiatives. create an environment of transparency while reinforcing ethical business practices. Additionally, we recognize the importance of reporting processes and outcomes to the Executive Management. Strengthening these report- ing mechanisms ensures accountability and continuous improvement in our anti-bribery and corruption efforts. disciplinary actions where necessary. Additionally, we analyze breaches to identify root causes to prevent fu- ture occurrences. Accounting principles Corruption and bribery There have been no incidents involving actors in the value chain in which Better Collective or its employees have been directly involved. Additionally, our Whistle- blower system remains a key component of our compli- ance framework, allowing employees, partners, and stakeholders to report ethical concerns confidentially and, if needed, anonymously. Reports submitted through this channel are escalated to the Head of the Audit Committee, Leif Nørgaard, who ensures that in- vestigations are conducted promptly and objectively. Anti-bribery and corruption Percentage of functions-at-risk covered by train- ing programs: There is currently no formalized training for functions-at-risk. (G1-3) We uphold strict ethical standards in our business oper- ations and commitment to compliance. We do not en- gage in cryptocurrency payments and integrate due dil- igence in our partnership and acquisition processes. This includes thorough assessments for potential risks re- lated to money laundering or fraud—should any such risks be identified, we chose not to engage. We recog- nize that operating across multiple jurisdictions exposes our group and people to varying corruption and bribery risks. Some regions where we operate present more sig- nificant challenges, making corruption prevention a crit- ical focus for our business. To uphold ethical conduct, we have implemented robust internal controls and over- sight mechanisms that ensure transparency and compli- ance across our operations. While we have not reported any cases of corruption or bribery to date, we remain vigilant in maintaining a governance framework that fosters accountability. Our Code of Conduct outlines clear guidelines for offering and receiving gifts and hos- pitality, ensuring that such gestures do not attempt to influence decision-making improperly. To further miti- gate risks, we have established an approval system where all expenses related to gifts, meals, or hospitality require managerial authorization. This oversight helps to Corruption incidents (G1-4) We aim for zero reported bribery and corruption cases, including any behaviors that abuse entrusted power for private gain in Better Collective. Despite having internal controls, we recognize a key area for improvement in the form of formalized anti-corruption and bribery train- ing. Currently, we do not have formal screening or pro- grams in place, though we acknowledge the importance of educating employees—especially those in “sensitive roles” on ethical business practices. To address this gap, we are looking into options for anti-corruption educa- tion and training to ensure proactive identification and mitigation of potential threats. Number of convictions: conviction of a group en- tity by a court of law which is determined during the financial year. Number of fines: fines for a group entity are deter- mined by a court of law during the financial year. At present, we do not have formalized actions in place to manage our material impacts, risks, and opportunities in this area. However, we recognize the need for struc- tured initiatives and assess potential approaches. 2024 Percentage of functions-at-risk covered by train- ing programs 0% 0 Number of convictions for violation of anti-cor- ruption and anti-bribery laws In the event of breaches of anti-corruption and anti- bribery procedures, we take immediate and appropriate action. This includes conducting thorough investiga- tions, implementing corrective measures, and enforcing Amount of fines for violation of anti-corruption and anti-bribery laws 0 Annual report Page 80 Accounting principles Corporate income taxes Corporate income tax consist of corporate income taxes and state income taxes paid or expensed during the year. Our approach (MDR-A) we are part of while securing long-term value for our stakeholder. Entity specific disclosures Tax transparency Better Collective does not have formalized actions on tax, however, we ensure alignment with policy at all times and ongoing review of tax compliance. Employment taxes Employment taxes primarily consist of taxes col- lected from employees on behalf of the govern- ment and social security costs (part of payroll taxes in some countries). Our overall guiding principle within taxation is to have a sustainable tax approach, emphasizing our business-an- chored approach to managing the impact of taxes while remaining true to the values of operating our business in a responsible and transparent manner. Our legal struc- tures are based on business-anchored considerations and substance. Targets (MDR-T) Better Collective recognizes that transparent tax prac- tices are fundamental to corporate responsibility and sustainable business operations. As part of its govern- ance framework, the company ensures responsible tax management that aligns with legal compliance, ethical standards, and stakeholder expectations. Our approach to tax transparency aligns with our broader strategy, emphasizing ethical business practices and accountabil- ity. By fulfilling our tax obligations responsibly and transparently, we contribute to a stable and sustainable economic environment in the regions where we operate. Beyond the societal impact, our commitment to tax transparency presents a strategic opportunity for Better Collective. As governments, investors, and stakeholders increasingly value corporate accountability, our trans- parent tax practices help strengthen trust, enhance our reputation, and reinforce our position as an industry leader. Demonstrating our dedication to financial trans- parency mitigates regulatory risks and gives us a com- petitive advantage in attracting investors and partners who prioritize ethical business conduct. By integrating responsible tax practices into our business model, we align financial success with social impact, ensuring that our growth contributes positively to the communities Better Collective does not have formalized numeric tar- gets for tax transparency, but the overall target is to pay the taxes in compliance with local tax rules and our policy. Indirect taxes Indirect taxes consist of non-refundable VAT, net VAT collections, customs duties and environmen- tal taxes (if any). Metrics (MDR-M) Policy (MDR-P) Other taxes Our metrics cover corporate income tax, indirect taxes, withholding taxes, employee taxes, excise taxes, import duties and other fiscal allowances resembling a tax. The Better Collective Group must adhere to all relevant tax regulations in any and all jurisdictions where it per- forms its operations. The overall responsibility for secur- ing tax compliance rests with the Executive Manage- ment. This policy has been evaluated and approved by the Board of Directors and is governed by the Audit Committee. Group Finance establishes guidelines for global compliance and will in collaboration with the ex- ternal group auditors monitor that local organizations are complying with their responsibility both in terms of international and local regulations. The scope of policy is Better Collective companies and their foreign branches and representations worldwide, and covers corporate income tax, indirect taxes, withholding taxes, employee taxes, excise taxes, import duties and other fiscal allowances resembling a tax. Other taxes consist of country-specific taxes not linked to one of the categories and withholding taxes. The metric assists Better Collective in assessment of compliance with policy and thereby all relevant tax reg- ulations. Tax Transparency, tEUR 2024 Corporate Income Tax Employment taxes VAT 7,249 28,836 - 982 Other taxes 243 Total Taxes 35,346 Annual report Page 81 In addition to educational programs, we actively engage in local voluntary initiatives that support broader com- munity development. Our teams participate in various local projects, social impact programs, and fundraising efforts, contributing time and resources to causes that align with our mission of fostering growth and oppor- tunity. These initiatives help improve living standards, create access to new opportunities, and address specific community needs. Our focus remains on expanding these efforts through scalable initiatives, partnerships, and continuous investment, reinforcing our role as a re- sponsible corporate citizen. sustainability commitments. Moving forward, we aim to expand and refine our approach, ensuring that our con- tributions remain meaningful, sustainable, and aligned with the needs of the communities we serve. Please read more about our policies in the Policy Overview on pages 54-57. education and employment, providing participants with hands-on experience in SEO and digital marketing. Contribution to local communities Beyond our core business activities, we also actively support the local communities in which we are active through education and various small-scale initiatives. We recognize that our success is tied to positive social impact and community engagement, so integrating long-term value creation into our corporate strategy is essential. We are committed to creating long-term value for local communities by investing in education and skills development. A core pillar of this commitment is the Better Collective Academies, which serve as a way to give back to communities and a strategic initiative to cultivate new talent. Our academies in Niš and Paris, es- tablished in 2021, have become a cornerstone of our lo- cal engagement strategy. These programs provide spe- cialized training in SEO, marketing, content creation, BI, design, SEM, WordPress, full-stack, and quality assur- ance, helping individuals develop competencies that en- hance their employability within Better Collective and across various industries. With no comparable alterna- tive educational programs available in these regions, the academies are critical in reducing unemployment, fos- tering local economic growth, and ensuring an influx of skilled talent into the workforce. Through this initiative, we are not only strengthening our talent pipeline but also contributing to the broader professionalization of the digital and media industries. The BI Academy introduces talents to business intelli- gence, analytical technologies, and methodologies. The academy equipped participants with hands-on experi- ence in data analysis and visualization, preparing them for roles in data-driven decision-making. In early 2024, we launched our first Design Academy, running from January to May 2024. This initiative focused on visual storytelling and digital media creation, allowing three in- terns to refine their skills in graphic design, branding, and content production. Our approach (MDR-A) We actively contribute to the social and economic well- being of the regions where we operate through targeted educational programs, environmental initiatives, and community-driven efforts. Below, we outline key 2024 actions that demonstrate our dedication to fostering positive impacts and creating sustainable local develop- ment. Policy (MDR-P) While we do not have a formal standalone policy dedi- cated to local engagement, our Sustainability policy out- lines our commitment to fostering long-term societal benefits through education, skill development, and eco- nomic contributions. Our approach to local community engagement is embedded in our broader sustainability strategy, ensuring that our activities align with our val- ues and support the communities where we have a pres- ence. Additionally, our tax transparency approach en- sures that we contribute to local economies by fulfilling our fiscal responsibilities in each jurisdiction where we operate. We see tax contributions as a fundamental way to support public infrastructure, education, and social programs, thereby fostering sustainable development. While our local engagement initiatives are not governed by a formal policy, they are structured within our One tree per employee Better Collective strives to integrate environmental sus- tainability into our local engagement strategy. Since 2019, we have been running the "One Tree per Em- ployee" initiative in Niš, as part of our broader efforts to foster a greener and more sustainable local environ- ment. In 2024, the initiative continued, with 150 magno- lia trees planted across three locations, bringing our to- tal contribution to 443 donated and planted tree seed- lings. This program reflects our ambition to enhance ur- ban green spaces while reinforcing our commitment to long-term community investment and climate responsi- bility. Better Collective Academies Better Collective invests in education and skills develop- ment as part of our strategic commitment to creating long-term value for local communities. Through our Bet- ter Collective Academies, we provide structured training programs designed to equip local talent with digital and analytical skills, fostering employment opportunities and supporting the sustainable growth of the digital in- dustry. Launched in June 2023, the Paris SEO Academy is part of Better Collective’s long-term educational investment in digital expertise and professional development. The program is designed to bridge the gap between Annual report Page 82 Štafeta Srcem - Humanitarian IT race in Niš Number of annual graduates 2024 Our office in Niš participated in the Štafeta Srcem hu- manitarian race, demonstrating our commitment to so- cial responsibility and community support. In 2024, 44 employees took part in this initiative to raise funds to furnish the Parent’s House in Niš—a facility designed to improve the quality of life for young oncology patients and their families. Our participation in this annual race is a testament to our long-term engagement with local causes, reinforcing our dedication to social well-being beyond business operations. Accounting principles Graduates from a BC academy 15 Number of graduates from a BC Academy tracks the total number of individuals who successfully graduated from BC Academies in the reporting year, specifically focusing on our locations in Paris and Nis. The calculation includes all graduates who completed their training within the year 2024. To ensure accuracy, the reported figure is derived from a comparison with the graduate announce- ments published on our intranet. Since our acade- mies are locally owned, we consolidate the gradu- ate data from both locations to arrive at the final count. participation rates, and impact outcomes across various initiatives. The effectiveness of our policies and actions is tracked through: • • Program participation and impact assessments of initiatives, e.g., employment rates post-academy and qualitative feedback. Engagement with employees, partners, and local communities to assess the effectiveness of our con- tributions and refine the approach based on feed- back. Metrics (MDR-M) Our academies are owned locally. The calculation of the total number of graduates is based on the consolidated input from each of our offices. In 2024, we happily grad- uated five graduates from Business Intelligence, three from Design, and 4 in QA, all in Nis, Serbia. Further, we had four graduates from our SEO academy in Paris, France. All graduates were offered positions at Better Collective following their graduation. Since we only have graduates in Paris and Nis, our focus has been lim- ited to evaluating the number of graduates from these two locations. To ensure accuracy, we have compared the number of graduates to those announced on our in- tranet. All graduates have been offered a position at BC following their graduation. While we have not defined a base period for measuring progress, we consistently review our actions to ensure continuous improvement and alignment with sustaina- bility objectives. As we further refine our approach, we remain committed to enhancing transparency and inte- grating measurable sustainability metrics into our re- porting framework. Targets (MDR-T) While we do not have predefined quantitative targets for this topic, we actively monitor engagement levels, Annual report Page 83 have initiated work to assess how to best approach this based on insight and improved data quality on our GHG disclosures. We consider our business model and current assets and locations to be exposed to a low degree of climate-re- lated risks and hazards and assess our resilience to be at a high level. We have not identified any physical or tran- sitional risks related to our business model, locations, or business activities, which is our foundation for achieving a high level of resilience based on the environmental analysis. As detailed in the following section, internal di- alogues inform our analysis, advice from external spe- cialists, and the scenario analysis using bespoke tools to assess our situation. Environment Climate change (E1) Environmental analysis In 2024, we collaborated with external specialists in connection with our DMA for all environmental-related topics. This re- sulted in the development of an environ- mental analysis assessing our largest sites and upstream data centers. The Environ- mental analysis is aligned with require- ments set forth in the ESRSs related to re- silience analysis and Scenario analysis. As a digital sports media group with operations world- wide, we recognize the need to decrease the negative climate-related impact of our business. Our long-term commitment is to implement a precautionary approach to environmental challenges and minimize our negative impact through resource efficiency and decarbonization to the greatest possible extent. Our operations result in CO2 emissions primarily from daily business activities, including travel, the use of data centers in our upstream value chain, and downstream activities related to dis- tributing our services. These impacts are closely tied to the nature of our business model, which depends on dig- ital infrastructure for our global operations and value delivery. Our energy consumption contributes to CO2 emissions; however, as we are not a production com- pany, energy consumption is low. Nonetheless, this is a relevant topic, as it contributes to CO2 emissions and is a lever for reductions. Climate-related risks (E1 SBM-3) In our 2024 DMA and related analysis, we have assessed the identified IROs, specifically evaluating potential cli- mate-related risks or hazards. To identify and assess po- tential outcomes of future events under conditions of uncertainty, an environmental analysis was conducted across E1 to E5 topics. The environmental analysis con- siders our geographical locations of offices and key up- stream value chain operators, as well as temperature changes in alignment with the Representative Concen- tration Pathways assessed by the IPCC in its fifth assess- ment report. Additionally, the analysis is based on sources like the WWF Risk Filters. The scenarios in the environmental analysis are centered around the temper- ature changes and how those will impact climate change, including water, pollution, biodiversity, and re- source use. Then, looking at the scenarios based on tem- perature and geographies, a session was held to under- stand and evaluate if this indicated any physical or cli- mate-related risks or additional IROs not already identi- fied and assessed. This was especially relevant to under- stand whether the data centers in the value chain pose a risk to the environment or Better Collective. The environmental analysis ultimately concluded no transitional or physical risks related to climate change, no actual or po- tential pollution-related IROs. The environ- mental analysis also found no actual or po- tential biodiversity and ecosystems-re- lated IROs, nor any transitional, physical or systemic risks. The analysis also assessed actual and potential IROs related to circu- lar economy and water and marine re- sources, concluding both topics are imma- terial for Better Collective. As we have done in the DMA in general, we have focused on the short- to medium-term and the activities we know and understand well. We have fewer insights into the potential value chain risks that could indirectly affect us but generally consider these less likely to pose a real risk to our performance and financials. We do not con- sider our identified impacts to directly influence our overall business model or strategy over the short- or medium-term. As an online business with a flexible busi- ness model, we can adapt to varying geographical and environmental conditions, ensuring further resilience in the face of climate change. Transition plan for climate change mitigation (E1-1) We do not currently have a transition plan for climate change mitigation, but we are ensuring our strategy and business model are compatible with the transition to a sustainable economy and limiting global warming to 1.5 degrees in line with the Paris Agreement. However, we Annual report Page 84 in the climate change application requirements. This ap- proach is adequate to assess and understand our situa- tion, especially because our potential exposures are lim- ited. However, we will evaluate the potential benefits of future upgrades, such as conducting further scenario analysis based on additional conditions. Our policy addresses a precautionary approach to envi- ronmental challenges and to minimize our carbon emis- sions and thereby the related energy consumption. As we are an online business, our environmental impact is relatively small. Climate changes generally pose little risk to our current and future operations as we have no physical supply chain, and as such, we can operate al- most anywhere. Still, we aim to minimize our carbon footprint and thereby the related energy consumption, and we are working towards setting a reduction target carbon footprint. To address this, our travel decisions must consider both environmental and economic im- pacts, balancing them against the benefits of in-person meetings. Environmental IROs (E1 IRO-1) We have employed a combination of internal dialogues and advisory from external experts to assess our situa- tion adequately. Considering our GHG footprint, we con- clude that we impact climate change, but it is not signif- icant. We supplemented our DMA with an environmental analysis using bespoke tools to assess environmentally related IROs; as such, we have established a solid under- standing of our current situation. In this regard, we also discussed and evaluated whether scenarios for the fu- ture would further expose risks to our business, includ- ing activities and assets. Using this analysis, we have not identified any significant future risks. Beyond travel, our procurement choices contribute to our carbon footprint, particularly in server hosting, IT in- frastructure, and office equipment. When selecting sup- pliers, we integrate environmental considerations into the decision-making process. Policies (E1-2) At Better Collective, we are committed to minimizing our environmental footprint as part of our Sustainability policy. While we do not have a formal Environmental policy, we have established a long-term commitment to implementing a precautionary approach to environmen- tal challenges and reducing carbon emissions where possible. Our environmental commitment is included in our Sustainability policy. We are working to establish a comprehensive carbon footprint assessment across our operations to better un- derstand our actual environmental impact. This founda- tional work is intended to guide future sustainability in- itiatives, ensuring that we can make more informed de- cisions beyond our current focus areas, enabling us to make the right choices. Targets (E1-4) We recognize our material impact on climate change and acknowledge the importance of tracking and miti- gating its environmental footprint. While we have not yet set specific climate-related targets, we are actively assessing our impact and exposure within our opera- tions and value chain. Our approach identifies areas where sustainability improvements can be made while maintaining operational efficiency and responsible busi- ness practices. As part of the DMA and related analysis, we considered the climate-related hazards and transition events listed Our Approach (E1-3) VALUE CHANGE LOCATION TIME HORIZON We are committed to acting as responsible corporate citizens. We recognize the importance of climate change mitigation and are dedicated to expanding our efforts across our operations in the future. Currently no formalized monitoring and management of actions or assessment of efficiency is in place. Own Upstream Downstream Short-term Medium-term Long-Term operations CLIMATE CHANGE MITIGATION Actual negative impact X X X X X X X Impact on climate caused by CO2 emissions ENERGY CONSUMPTION One of the primary sources of carbon emissions in our business is travel, particularly business-related travel. This significantly influences our ambition to lower our Energy consumption re- quired to support both our business operations and data centre activities. Actual negative impact X X X X X Annual report Page 85 Annual report Page 86 Energy consumption and mix Gross scopes 1, 2, 3 and total GHG emissions (E1-5) (E1-6) Energy consumption and mix 2024 3,590 0 Scope 1 GHG emissions 2024 74 Total fossil energy consumption (MWh) Consumption from nuclear sources (MWh) Gross Scope 1 GHG emissions (tCO2eq) Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) 0 Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of bio- Scope 2 GHG emissions logic origin, biogas, renewable hydrogen, etc.) (MWh) 131 0 Gross location-based Scope 2 GHG emissions (tCO2eq) Gross market-based Scope 2 GHG emissions (tCO2eq) 1,346 1,844 Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) The consumption of self-generated non-fuel renewable energy (MWh) Total renewable energy consumption (MWh) 0 131 Significant scope 3 GHG emissions Total Gross indirect (Scope 3) GHG emissions (tCO2eq) 1. Purchased goods and services 2. Capital goods 26,554 4,363 461 Total energy consumption (MWh) 3,720 3. Fuel and energy-related activities 6. Business travel 7. Employee commuting 429 3,406 575 11. Use of sold products 17,310 Total GHG emissions Total (with location-based GHG emissions (tCO2eq) Total (with market-based GHG emissions (tCO2eq) 27,964 28,461 GHG emission intensity/Net revenue Location based - total GHG emissions per net revenue (tCO2e/EUR thousand) Market based - total GHG emissions per net revenue (tCO2e/EUR thousand) 0.0753 0.0766 Annual report Page 87 Scope 1 Scope 2 Our scope 1 emissions derive from heating using oil and gas refrigerants to cool the offices. Better Collective are not presenting last year's numbers, as they are not comparable due to the acquisition of PMKR, which resulted in the inclu- sion of additional offices as well as new offices in Serbia and Malta for the BC Group, where it has not been possible to recalculate the emissions for the acquired business units. Our scope 2 accounts for office electricity and district heating. Better Collective are not presenting last year's numbers, as they are not comparable due to the acquisition of PMKR, which resulted in the inclusion of additional offices as well as new offices in Serbia and Malta for the BC Group, where it has not been possible to recalculate the emissions for the acquired business units. Accounting principles Accounting principles Energy from non-renewable sources covers fuel consumption related to the Group’s fuel and natural gas con- sumption related to the heating of office buildings. The input is based on consumption data from external sources or estimates., which has then been converted into tons CO2 equivalents (tCO2e) using generic and/or specific emission factors. Scope 2 greenhouse gas (GHG) emissions refer to indirect emissions resulting from the generation of purchased energy used by an organization. Scope 2 emissions occur at the facility where the energy is generated, thus being classified as indirect emissions. The emissions in scope 2 are linked to electricity and district heating consumption related to Better Collectives office activities. The input is based on consumption data from external sources or estimates., which has then been converted into tons of CO2 equivalents (tCO2e) using generic and/or specific emission factors. The emission factors used in scope 1 are the newest available from DEFRA, DEFRA (2024). The cooling gases from DEFRA uses the 100-year time horizon global warming potential (GWP) values from the IPCC fifth Assess- ment Report (AR5), and not the values from the IPCC Sixth Assessment Report, 2020 (AR6). The estimated numbers are either based on the number of employees at the office or the size of the office and calculated based on emission in comparable offices we have in the area. The estimated numbers are either based on the number of employees at the office or the size of the office and calculated based on emission in comparable offices we have in the area. Emission factors used in scope 2 are from IEA and AIB for location- and market-based electricity. Where appli- cable, more locally available sources have been used, such as “Energinet” for Denmark. For district heating, DEFRA 2024 has been used internationally, and where applicable, locally available sources have been used as well, such as “Miljødeklaration” for local Danish district heating, “Stockholm Exergi” for district heating in Swe- den, etc. GHG intensity GHG intensity based on net revenue has been calculated as gross scope 1, Scope 2 location-based / market- based, and gross scope 3 emissions divided by reported net revenue in tEUR. Energy consumption Energy consumption covers the same energy as scope 1 and 2. The consumption is based on consumption data from external sources or estimates. The estimated numbers are either based on the number of employees at the office or the size of the office and calculated based on consumption in comparable offices we have in the area. Energy from purchased electricity, heat and cooling is assumed to originate from fossil sources as renewable or nuclear energy has not been actively procured. Biomass fuels are reported as renewable. Annual report Page 88 Scope 3 Scope 3 emissions are the indirect greenhouse gas emissions attributed to an organization’s value chain. The accounting principles for the reported categories are as follows. Accounting principles 1 Purchased goods and services GHG emissions associated with the Group’s purchase of goods and services are calculated as the direct cost associated with a specific type multiplied by a matching emission factor from EPA (2024) v1.3, direct-spend-based emission factors. The direct cost has been converted to EUR using the average exchange rate for the year to align with the currency used in the spend-based emission factors. 2 Capital goods GHG emissions associated with the Group’s additions to tangible assets are calculated as the capitalized cost associated with a specific type multiplied by a matching emission factor from Defra’s table of 13 direct-spend-based emission factors. The capitalized amount has been converted to EUR using the average exchange rate for the year to align with the currency used in the spend-based emissions factors. 3 Fuel- and energy-related activities GHG emissions related to fuel and energy-related activities not accounted for in Scope 1 or 2 comprise indirect emissions associated with producing purchased fuels and electricity. The GHG emissions in fuels and energy-related activities are calculated using the consumption from Scope 1 and 2 and emission factors from DEFRA (2024) and IEA (2024). 6 Business travel GHG emissions associated with the Group’s business travel activities are calculated as the direct cost associated with flight, taxi, train, bus, and accommodation multiplied by a matching emission factor from Defra (2024) table 13 or EPA (2024) v1.3 direct-spend-based emission factors. The direct cost has been converted to EUR using the average exchange rate for the year to align with the currency used in the spend-based emission factors. Supplier-specific data: For the category of flight and Hotel stays, emissions are based on supplier-specific data. To avoid double counting, the part of the direct cost related to supplier-specific data has been subtracted from the direct cost base of the spend-based emission calculation. 59 % of the emissions is based on supplier specific data. 7 Employee commuting GHG emissions related to employee commuting are linked to the indirect emissions generated from employees transportation between their homes and their places of work. Emissions have been calculated based on the answers to a Group- wide survey in December 2024. The response rate was 37%. The survey included questions regarding: Means of transportation and type, distance to work, and average weekly days spent working in the office. These average commuting weeks have then been multiplied by the average number of working weeks. The emissions related to working from home are calculated based on the assumed energy consumption related to working from home. To calculate the GHG emissions, the 2024 version of Defra's business travel-land emission factors has been used. 11 Use of sold product Use of sold products covers the scope 1 and 2 emissions associated with the use of sold products in the reporting year. For Better Collective, this means user activity emissions on our various sites. We have collected information on the number of hours and type of device used to access our sites, and this has been applied to the average data on electricity consumption per hour of these devices. This energy consumption related to the use of our sites was applied to the Global IEA (2024) electricity factor to calculate emissions from the use of our products. Annual report Page 89 Scope 3 categories – not material 12. End-of-life treatment of sold products This category has been deemed non-material. End-of- life treatment of sold products is not applicable to our operations. We do not sell physical products that would require disposal or treatment at the end of their lifecy- cle. We have assessed all categories in scope 3 to determine whether they are material or relevant. The following cat- egories are not relevant to our business model or activ- ities: 4. Upstream transportation and distribution This category has been deemed as non-material. As a Media company, we primarily deliver services rather than physical goods. 13. Downstream leased assets This category has been deemed as non-material, as we do not act as a lessor. The group has subleases at the office in Copenhagen, but the emission are included in scope 1 and 2. 5. Waste This category has been deemed as non-material. As a Media company, we primarily deliver services and do not have material waste from production, etc. 14. Franchises This category has been deemed as non-material, as we do not operate with franchises. 8. Upstream leased assets 15. Investments This category has been deemed as non-material. We do not have any leased assets that are not in our control. This category has been deemed non-material. As we do not have investments. 9. Downstream transportation and distribution This category has been deemed as non-material, as we do not distribute materials to clients. 10. Processing of sold products This category has been deemed as non-material. As an Media company our business model is based on the de- livery of services, meaning we do not sell physical prod- ucts that require further processing by our clients. Annual report Page 90 1. Screening of eligible economic activities any of the activities specified under the EU Taxonomy. The eligible activity do not live up to the technical screening criteria. Minimum safeguards EU Taxonomy We reviewed the technical annexes from the Climate Delegated Act, the Complementary Climate Delegated Act, the Environmental Delegated Act, and amendments to the Climate Delegated Act. Our goal was to identify any potentially eligible economic activities relevant to the revenue KPI and categories (a) and (c) of the CAPEX and OPEX KPIs. During our evaluation period, we out- lined areas with eligible economic activities that re- quired further eligibility assessment. The minimum safeguards are part of the Taxonomy Reg- ulation and are based on the recommendation from the Technical Expert Group. They were included to ensure that entities that are carrying out environmentally sus- tainable activities that are labeled as Taxonomy-aligned meet certain minimum governance standards and do not negatively impact human rights, including labor rights, corrupt practices, or are linked to non-compli- ance with letter or spirit of tax laws or anti-competitive practices. The EU Taxonomy is a regulatory framework introduced by the European Union as a tool to aid in the transition towards a greener and more sustainable economy. Revenue Better Collective’s main activities within sports media and entertainment are excluded from the taxonomy un- der 13.1 Creative, arts, and entertainment activities. However, to ascertain whether Better Collective has any other economic activities that could be eligible for the taxonomy, the group has analyzed its business, which shows that the Group has no activities that are eligible under the taxonomy. The EU Taxonomy addresses six environmental objec- tives: 2. Assessment of eligible economic activities Each identified economic activity was evaluated to de- termine how well the description in the annex corre- sponds to Better Collective’s operations. • • • Climate change mitigation Practically, this means that undertakings whose eco- nomic activities are to be considered as Taxonomy- aligned have to align with the standards for responsible business conduct mentioned in: Climate change adaptation Sustainable use and protection of water and marine resources OPEX Based on the screening process, we concluded that the OPEX for Better Collective’s current activities do not meet the EU Taxonomy eligibility criteria. However, we will continue to monitor updates to the framework to as- sess any future alignment opportunities as the taxono- my's scope evolves. 3. Assessment of the alignment of economic activities For each eligible economic activity, we identified key in- ternal stakeholders to assist in locating and gathering the necessary documentation to satisfy the alignment criteria. • • • Transition to a circular economy Pollution prevention and control Protection and restoration of biodiversity and eco- systems • The OECD Guidelines for Multinational Enterprises • The UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Decla- ration of the International Labor Organization on Funda- mental Principles and Rights at Work We have reviewed and assessed which economic activ- ities are eligible under the EU Taxonomy definition and subsequently allocated financial numbers to these activ- ities. Eligible activities CAPEX Our eligible economic activity for the financial year 2024 is: Eligible CAPEX consists of additions to tangible assets, such as property, plant, and equipment (including addi- tions to leased assets), that are associated with Taxon- omy-eligible activities. • The International Bill of Human Rights Climate change mitigation The annual process for assessing compliance with the 7.7. Acquisition and ownership of buildings criteria outlined in Article 3 of Regulation (EU) Since Better Collective does not claim alignment based on other technical criteria, the assessment of compli- ance with minimum safeguards have not been assessed. 2020/852 has been conducted in three stages: Aligned activities Based on the screening process, we determined that Better Collective’s current activities do not align with Annual report Page 91 NUCLEAR AND FOSSIL GAS- RELATED ACTIVITIES Accounting principles Taxonomy table for nuclear and gas as referred to in Complimentary Climate Delegated Act. Better Collec- tive does not engage in nuclear or fossil gas related ac- tivities. Revenue The proportion of revenue is calculated as the part of the net revenue derived from products or services associ- ated with Taxonomy economic activities divided by the net revenue (Note 4 in the Financial Statements). Better Collective do not have any eligible revenue. OPEX Non-capitalised costs that relate to research and development, building renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of assets of property, plant and equipment by the undertaking or third party to whom activities are outsourced that are necessary to ensure the continued and effective functioning of such assets. Better Collective do not have any eligible OPEX. Nuclear energy-related activities The undertaking carries out, funds or has exposures to research, development, demonstration and deploy- ment of innovative electricity generation facilities that produce energy from nuclear processes with mini- mal waste from the fuel cycle. 1 NO The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear in- stallations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technolo- gies. CAPEX CAPEX is calculated as the 'Addition of tangible and intangible assets', which is generated from note 12 and 14 of the consolidated financial statements. Included in the figures is the value from leasing of office buildings (Capitalized under IFRS16). The CAPEX KPI is defined as Taxonomy-eligible capex (numerator) divided by total CAPEX accounted based on IAS 16, IAS 38, IAS 40, IAS 41, IFRA 16 (denominator) which include additions to business combinations without considering goodwill. 2023 numbers have been restated based on this ap- proach. 2 3 NO NO The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. Double counting For the allocation of the numerator for CAPEX, we have first identified the relevant figures and then allocated the primary related economic activity in the Climate Delegated Act. In this way, we ensure that no CAPEX is considered more than once. Fossil gas-related activities The undertaking carries out, funds or has exposures to construction or operation of electricity generation 4 5 6 facilities that produce electricity using fossil gaseous fuels. NO NO NO Contribution to multiple objectives The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. Regarding our identified economic activities, we note that none of these contribute to multiple objectives, as there are only one eligible activities related to CAPEX. Disaggregation of KPI’s There has been no disaggregation of KPIs for any economic activity assessed. Annual report Page 92 Substantial contributions % Do no significant harm (Y/N) Y; N; N/EL; EL Taxon- omy Minimum aligned Propor- tion of Revenue 2024 Climate change mitiga- tion Climate change adapta- tion Water and ma- rine re- sources Biodiver- Climate sity change and eco- mitiga- economy Pollution systems tion Climate change adapta- tion Water and ma- rine re- sources Biodiver- sity and eco- Transi- Revenue Codes tEUR Circular Circular safe- guards Revenue Enabling tional 2023 activity activity Revenue economy Pollution systems A. Taxonomy-eligible activities A.1 Environmentally sustainable activities (taxonomy- aligned) Revenue of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0 0% 0% Of which enabling Of which transitional A. Taxonomy-eligible activities A.2 Taxonomy-eligible but not environmentally sus- tainable activities (not Taxonomy-aligned activities) Revenue of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy aligned activi- ties) (A.2) 0 0% 0% Revenue of Taxonomy-eligible activities (A.1 + A.2) 0 0% 0% B. Revenue of Taxonomy non eligible activities (B) Revenue of Taxonomy non-eligible activities (B) 371,487 100% Total (A+B) 371,487 100% Annual report Page 93 Substantial contributions % Do no significant harm (Y/N) Y; N; N/EL; EL Taxon- omy aligned OPEX 2023 Propor- tion of OPEX 2024 Climate change mitiga- tion Climate change adapta- tion Water Biodi- versity Climate change Climate change adapta- tion Water Biodi- versity Mini- mum and ma- rine re- sources Circular econ- omy and ma- rine re- sources Circular econ- omy Transi- Enabling tional OPEX tEUR and eco- mitiga- Pollution systems tion and eco- safe- Pollution systems guards OPEX Codes activity activity A. Taxonomy-eligible activities A.1 Environmentally sustainable activities (taxonomy- aligned) OPEX of environmentally sustainable activities (Taxon- omy-aligned) (A.1) 0 0% 0% Of which enabling Of which transitional A. Taxonomy-eligible activities A.2 Taxonomy-eligible but not environmentally sus- tainable activities (not Taxonomy-aligned activities) OPEX of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy aligned activi- ties) (A.2) 0 0% 0% OPEX of Taxonomy-eligible activities (A.1 + A.2) 0 0% 0% B. Taxonomy non eligible activities (B) OPEX of Taxonomy non-eligible activities (B) 258,084 100% Total (A+B) 258,084 100% Annual report Page 94 Substantial contributions % Do no significant harm (Y/N) Y; N; N/EL; EL Taxon- omy Minimum aligned Propor- tion of CAPEX 2024 Climate change mitiga- tion Climate change adapta- tion Water and ma- rine re- sources Biodiver- Climate Climate change adapta- tion Water and ma- rine re- sources Biodiver- sity and eco- sity change mitiga- tion Transi- CAPEX Codes tEUR Circular and eco- Circular safe- guards CAPEX 2023 Enabling tional CAPEX economy Pollution systems economy Pollution systems activity activity A. Taxonomy-eligible activities A.1 Environmentally sustainable activities (taxonomy- aligned) CAPEX of environmentally sustainable activities (Tax- onomy-aligned) (A.1) 0 0% 0% Of which enabling Of which transitional A. Taxonomy-eligible activities A.2 Taxonomy-eligible but not environmentally sus- tainable activities (not Taxonomy-aligned activities) CCM Acquisition and ownership of buildings 7.7 6,280 4% EL N/EL N/EL N/EL N/EL N/EL 15% CAPEX of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy aligned activi- ties) (A.2) 6,280 4% CAPEX of Taxonomy-eligible activities (A.1 + A.2) 6,280 4% 4% 0% 0% 0% 0% 0% 15% B. Taxonomy non eligible activities (B) CAPEX of Taxonomy-non eligible activities (B) Total (A+B) 149,115 96% 100% 155,395 The share for 2023 has been restated as detailed in section ‘Accounting Principles’. Annual report Page 95 Appendix EU legislation data points (IRO-2) The table below outlines the data points derived from other EU legislation as listed in ESRS 2 Appendix B. It indicates where these data points can be found in our report and identifies which data points are assessed as ‘Not material’ DISCLOSURE BENCHMARK REFERENCE REGULATION DATA POINT SFDR REFERENCE PILLAR 3 REFERENCE EU CLIMATE LAW PAGE/RELEVANCE REQUIREMENT ESRS 2 GOV-1 Board's gender diversity 21 (d) 21 (e) 30 X X X 27 ESRS 2 GOV-1 ESRS 2 GOV-4 ESRS 2 SBM-1 ESRS 2 SBM-1 ESRS 2 SBM-1 Percentage of board members who are independent 27 48 Statement on due diligence X X X X Involvement in activities related to fossil fuel activities 40 (d) i X X X X Not relevant Involvement in activities related to chemical production 40 (d) ii 40 (d) iii Not relevant Not relevant Involvement in activities related to controversial weapons Involvement in activities related to cultivation and production of to- bacco ESRS 2 SBM-1 40 (d) iv X Not relevant ESRS E1-1 ESRS E1-1 Transition plan to reach climate neutrality by 2050 14 X Not relevant Not relevant Undertakings excluded from Paris- aligned Benchmarks 16 (g) X X Annual report Page 96 ESRS E1-4 ESRS E1-5 ESRS E1-5 ESRS E1-5 GHG emission reduction targets 34 X X X X X X Not relevant Not relevant 87 Energy consumption from fossil sources disaggregated by sources 38 Energy consumption and mix 37 Energy intensity associated with activities in high climate impact sectors 40-43 Not relevant ESRS E1-6 ESRS E1-6 ESRS E1-7 ESRS E1-9 Gross Scope 1, 2, 3 and Total GHG emissions 44 X X X X X X 87 Gross GHG emissions intensity 53-55 56 87 GHG removals and carbon credits X Not relevant Not relevant Exposure of the benchmark portfo- lio to climate-related physical risks 66 X Disaggregation of monetary amounts by acute and chronic physical risk ESRS E1-9 ESRS E1-9 ESRS E1-9 ESRS E1-9 ESRS E2-4 66 (a) 66 (c) 67 (c) 69 Not relevant Not relevant Not relevant Not relevant Not relevant Location of significant assets at ma- terial physical risk X X Breakdown of the carrying value of its real estate assets by energy-effi- ciency classes Degree of exposure of the portfolio to climate-related opportunities X Amount of each pollutant listed in Annex II of the E-PRTR Regulation emitted to air, water and soil 28 X ESRS E3-1 ESRS E3-1 Water and marine resources 9 X X Not relevant Not relevant Dedicated policy 13 Annual report Page 97 ESRS E3-1 Sustainable oceans and seas 14 X X X X X X X X X X X X X Not relevant Not relevant Not relevant Not relevant Not relevant Not relevant Not relevant Not relevant Not relevant Not relevant Not material Not material 56; 101 ESRS E3-4 Total water recycled and reused 28 (c) 29 ESRS E3-4 Total water consumption in m3 per net revenue on own operations ESRS 2 SBM 3 - E4 ESRS 2 SBM 3 - E4 ESRS 2 SBM 3 - E4 ESRS E4-2 Biodiversity sensitive areas Land impacts 16 (a) i 16 (b) 16 © Threatened species Sustainable oceans/seas practices or policies 24 (c) 24 (d) 37 (d) 39 ESRS E4-2 Policies to address deforestation ESRS E5-5 Non-recycled waste ESRS E5-5 Hazardous waste and radioactive waste ESRS 2 SBM3 - S1 ESRS 2 SBM3 - S1 ESRS S1-1 Risk of incidents of forced labor Risk of incidents of child labor Human rights policy commitments 14 (f) 14 (g) 20 Sustainability due diligence policies on issues addressed by the funda- mental International Labor Organi- zation Conventions 1 to 8 ESRS S1-1 ESRS S1-1 21 X 56 Processes and measures for pre- venting trafficking in human beings 22 X Not material Annual report Page 98 ESRS S1-1 Workplace accident prevention pol- icy or management system 23 X X X X X X X 55 61 ESRS S1-3 ESRS S1-14 ESRS S1-14 ESRS S1-16 ESRS S1-16 ESRS S1-17 Grievance/complaints handling mechanisms 32 (c) 88 (b), (c) 88 (e) 97 (a) 97 (b) 103 (a) Number of fatalities and number and rate of work-related accidents X X 68 68 70 70 71 Number of days lost to injuries, ac- cidents, fatalities or illness Unadjusted gender pay gap Excessive CEO pay ratio Incidents of discrimination Non-respect of UNGPs on Business and Human Rights and OECD Guidelines ESRS S1-17 104 (a) X X 71 ESRS 2 SBM3 – S2 ESRS S2-1 Significant risk of child labor or forced labor in the value chain 11 (b) 17 X X X Not material Not material Not material Human rights policy commitments ESRS S2-1 Policies related to value chain workers 18 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines ESRS S2-1 ESRS S2-1 19 19 X X X Not material Not material Sustainability due diligence policies on issues addressed by the funda- mental International Labor Organi- zation Conventions 1 to 8 Human rights issues and incidents connected to its upstream and downstream value chain ESRS S2-4 ESRS S3-1 36 16 X X Not material Not material Human rights policy commitments Annual report Page 99 Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines ESRS S3-1 17 X X X Not material ESRS S3-4 ESRS S4-1 Human rights issues and incidents 36 16 X X Not material 54-57; 73 Policies related to consumers and end-users Non-respect of UNGPs on Business and Human Rights and OECD guidelines ESRS S4-1 17 X 54-57; 73 ESRS S4-4 ESRS G1-1 ESRS G1-1 ESRS G1-4 ESRS G1-4 Human rights issues and incidents 35 X X X X X Not material United Nations Convention against Corruption 10 (b) 10 (d) 24 (a) 24(b) 79 79 80 80 Protection of whistleblowers Fines for violation of anti-corrup- tion and anti-bribery laws X Standards of anti-corruption and anti-bribery Annual report Page 100 Human rights UN Global Compact In 2019, Better Collective committed to incorporate the UN Global Compact and its 10 principles into our strat- egy, culture, and day-to-day operations. As a result of our participation, we are committed to observing the Global Compact’s 10 fundamental principles. Read more about the Global Compact and its principles at www.un- globalcompact.org. 1. Support and respect the protection of internationally proclaimed human rights 2. Make sure that they are not complicit in human rights abuses Labor 3. Uphold the freedom of association and the effective recognition of the right to collective bargaining 4. The elimination of all forms of forced and compulsory labor 5. The effective abolition of child labor In 2022, we further signed the UN’s Women Empower- ment Principles. The principles are the result of collabo- ration between the UN Global Compact and UN Women, and are adapted from the Calvert Women's Principles. By signing the statement Better Collective committed to use the seven principles as guiding for actions that ad- vance and empower women in the workplace and com- munity. 6. The elimination of discrimination in respect of employment and occupation Work against corruption in all its forms, including extortion and bribery Annual report Annual report Page 101 Page 101 Disclosure requirements • • • • • SS = Sustainability statements RR = Remuneration report CG = Corporate governance MR = Management report Cross-cutting Cross-cutting standards ESRS 2 GENERAL DISCLOSURE SECTION REPORT PAGE(S) BP-1 General basis for preparation of the sustainability statement Disclosures in relation to specific circumstances SS SS 45 45 BP-2 GOV-1 The role of the administrative, management, and supervisory bodies SS and CG 24; 27; 45-47 Information provided to and sustainability matters addressed by the undertaking’s administrative, management, and supervi- sory bodies GOV-2 SS 47 GOV-3 GOV-4 GOV-5 SBM-1 SBM-2 SBM-3 IRO-1 Integration of sustainability-related performance in incentive schemes Statement on sustainability due diligence RR and SS 30-31; 47 48 SS Risk management and internal controls over sustainability reporting Strategy, business model and value chain SS and CG 32-35; 48 13; 49 SS and MR Interests and views of stakeholders SS SS SS SS 50-51 Material impacts, risks and opportunities and their interaction with strategy and business model Description of the process to identify and assess material impacts, risks and opportunities Disclosure requirements in ESRS covered by the undertaking’s sustainability statement 13-14 53-54; 85 96-100; 102-106 IRO-2 Annual report Page 102 Environmental standards ESRS 2 CLIMATE CHANGE SECTION REPORT PAGE(S) ESRS 2, GOV-3 E1-1 Integration of sustainability-related performance in incentive schemes Transition plan for climate change mitigation SS SS SS SS SS SS SS SS SS 47 84 ESRS 2, SBM-3 ESRS 2, IRO-1 E1-2 Material impacts, risks and opportunities, and their interaction with strategy and business model Description of the processes to identify and assess material climate-related impacts, risks and opportunities Policies related to climate change mitigation and adaptation Actions and resources in relation to climate change policies Targets related to climate change mitigation and adaptation Energy consumption and mix 52; 84 53-54; 78; 85 56; 85 85 E1-3 E1-4 85 E1-5 87-88 87-90 E1-6 Gross Scopes 1, 2, 3 and total GHG emissions ESRS E2 POLLUTION ESRS 2, IRO-1 Description of the processes to identify and assess material pollution-related impacts, risks and opportunities SS SS SS SS 53-54; 85 53-54; 85 53-54; 85 53-54; 85 ESRS E3 WATER AND MARINE RESOURCES ESRS 2, IRO-1 Description of the processes to identify and assess material pollution-related impacts, risks and opportunities ESRS E4 BIODIVERSITY AND ECOSYSTEMS ESRS 2, IRO-1 Description of the processes to identify and assess material pollution-related impacts, risks and opportunities ESRS E5 RESOURCE USE AND CIRCULAR ECONOMY ESRS 2, IRO-1 Description of the processes to identify and assess material pollution-related impacts, risks and opportunities Annual report Page 103 Social standards ESRS S1 OWN WORKFORCE SECTION REPORT PAGE(S) ESRS 2 SBM-2 ESRS 2 SBM-3 S1-1 Interests and views of stakeholders SS SS SS SS SS 50-51 52; 58-59 54-57; 60; 101 61 Material impacts, risks and opportunities and their interaction with strategy and business model Policies related to own workforce S1-2 Processes for engaging with own workers and workers’ representatives about impacts Processes to remediate negative impacts and channels for own workers to raise concerns S1-3 61-62 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material op- portunities related to own workforce, and effectiveness of those actions S1-4 S1-5 SS SS 62-63 63-64 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and oppor- tunities S1-6 Characteristics of the undertaking’s employees Diversity metrics SS SS SS SS SS SS 65-66 29; 67 68 S1-9 S1-14 S1-15 S1-16 S1-17 Health and safety metrics Work-life balance metrics 69 Compensation metrics (pay gap and total compensation) Incidents, complaints and severe human rights impacts 70 71 Annual report Page 104 Social standards ESRS S4 CONSUMERS AND END-USERS ESRS 2 SBM-2 ESRS 2 SBM-3 S4-1 Interests and views of stakeholders SS SS SS SS SS 50-51 52; 72 54-57; 73 74 Material impacts, risks and opportunities and their interaction with strategy and business model Policies related to consumers and end-users S4-2 Processes for engaging with consumers and end-users about impacts Processes to remediate negative impacts and channels for consumers and end-users to raise concerns S4-3 74 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions S4-4 S4-5 SS SS 74 76 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and oppor- tunities Governance standards ESRS G1 GOVERNANCE SECTION REPORT PAGE(S) ESRS 2 GOV-1 ESRS 2 IRO-1 G1-1 The role of the administrative, supervisory and management bodies Description of the processes to identify and assess material impacts, risks and opportunities Business conduct policies and corporate culture CG and SS 23; 77 SS SS SS SS 53-54; 77-78 79 80 80 G1-3 Prevention and detection of corruption and bribery G1-4 Incidents of corruption or bribery Annual report Page 105 MDR entity specific disclosures ESRS 2 MDR SAFER GAMBLING SECTION REPORT PAGE(S) ESRS 2 IRO-1 MDR-P Description of the processes to identify and assess material impacts, risks, and opportunities Policies adopted to manage material sustainability matters SS SS SS SS SS 74-75 54-57 74-75 81-82 75-76 MDR-A Actions and resources in relation to material sustainability matters Metrics in relation to material sustainability matters MDR-M MDR-T Tracking effectiveness of policies and actions through targets CONTRIBUTION TO LOCAL COMMUNITIES ESRS 2 MDR ESRS 2 IRO-1 MDR-P Description of the processes to identify and assess material impacts, risks and opportunities Policies adopted to manage material sustainability matters Actions and resources in relation to material sustainability matters Metrics in relation to material sustainability matters SS SS SS SS SS 53-54; 82 82 82 83 83 MDR-A MDR-P MDR-T Tracking effectiveness of policies and actions through targets TAX TRANSPARENCY ESRS 2 MDR ESRS 2 IRO-1 MDR-P Description of the processes to identify and assess material impacts, risks and opportunities Policies adopted to manage material sustainability matters SS SS SS SS SS 53-54; 81 81 81 MDR-A Actions and resources in relation to material sustainability matters Metrics in relation to material sustainability matters MDR-M N/A 81 MDR-T Tracking effectiveness of policies and actions through targets Annual report Page 106 Statements Statement by Management Independent Auditors’ Report 108 109 Independent Auditors’ limited assurance report on Sustainability Statements 113 Annual report Annual report Page 107 Page 107 Executive Management Standards (ESRS), as required by the Danish Financial Statements Act, section 99a, and article 8 of the EU Tax- onomy regulation. Statement by Management The Board of Directors and the Executive Board have to- day discussed and approved Better Collective A/S's 2024 annual report. Jesper Søgaard CEO & Co-founder Christian Kirk Rasmussen COO & Co-founder Executive Vice President Flemming Pedersen CFO Executive Vice President The year 2024 marks the initial implementation of para- graph 99a of the Danish Financial Statements Act con- cerning compliance with ESRS. As such, clearer guid- ance and practice are anticipated in various areas, which are expected to be issued in the coming years. Further- more, the sustainability statement includes forward- looking statements based on disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected Board of Directors The annual report has been prepared in accordance with International Financial Reporting Standards as adopted by the EU and additional requirements of the Danish Fi- nancial Statements Act. Jens Bager Chair Therese Hillman Vice Chair Britt Boeskov It is our opinion that the consolidated financial state- ments and the parent company's financial statements give a true and fair view of the group and parent com- pany's financial position on December 31, 2024, and of the results of the group’s and the parent company’s op- erations and cash flows for the financial year January 1 – December 31, 2024. Todd Dunlap Leif Nørgaard René Rechtman In our opinion, the annual report for the financial year January 1 – December 31, 2024, with the file name bet- tercollective-2024-12-31-en.zip , is prepared, in all mate- rial respects, in compliance with the ESEF Regulation. Petra von Rohr We recommend that the annual report be approved at the annual general meeting. Further, in our opinion, the management’s review gives a fair review of the development in the group’s and the parent company’s activities and financial matters, re- sults of operations, cash flows, and financial position, as well as a description of material risks and uncertainties that the group and the parent company face. Copenhagen, March 25, 2025 The Sustainability Statements are prepared in accord- ance with the European Sustainability Reporting Annual report Page 108 Standards as adopted by the EU and additional require- ments of the Danish Financial Statements Act. Appointment of auditor the matters below, provide the basis for our audit opin- ion on the financial statements. Independent Auditors’ Report To the shareholders of Better Collective A/S On 8 June 2018, Better Collective A/S completed its Ini- tial Public Offering and was admitted to trading and of- ficial listing on Nasdaq Stockholm. Subsequent to Better Collective A/S being listed on Nasdaq Stockholm, we were initially appointed as auditor of Better Collective A/S on 25 April 2019 for the financial year 2019. We have been reappointed annually by resolution of the general meeting for a total consecutive period of 6 years up until and including the financial year 2024. Our opinion is consistent with our long-form audit re- port to the Audit Committee and the Board of Directors. Recoverability of the carrying amount goodwill, do- mains and websites Goodwill as well as domains and websites with indefinite life are not subject to amortisation, but are reviewed an- nually for impairment, or more frequently if any indica- tors of impairment are identified. Recoverability of the carrying amount of goodwill, domains and websites is significant to our audit due to the carrying values as well as the management judgement involved in the assess- ment of the carrying values, assessment of indefinite life and judgements involved in impairment testing of the goodwill, domains and websites. Basis for opinion We conducted our audit in accordance with Interna- tional Standards on Auditing (ISAs) and additional re- quirements applicable in Denmark. Our responsibilities under those standards and requirements are further de- scribed in the "Auditor's responsibilities for the audit of the consolidated financial statements and the Parent Company financial statements" (hereinafter collectively referred to as "the financial statements") section of our report. We believe that the audit evidence we have ob- tained is sufficient and appropriate to provide a basis for our opinion. Opinion We have audited the consolidated financial statements and the parent company financial statements of Better Collective A/S for the financial year 1 January – 31 De- cember 2024, which comprise income statement, state- ment of comprehensive income, balance sheet, state- ment of changes in equity, cash flow statement and notes, including material accounting policy information, for the Group and the Parent Company. The consoli- dated financial statements and the parent company fi- nancial statements are prepared in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial State- ments Act. Key audit matters Key audit matters are those matters that, in our profes- sional judgement, were of most significance in our audit of the financial statements for the financial year 2024. These matters were addressed during our audit of the financial statements as a whole and in forming our opin- ion thereon. We do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. Management prepares and reviews impairment tests for each of the four identified cash-generating units. Impair- ment testing is based on the estimated recoverable amounts of the assets, which for this purpose are deter- mined based on the value in use. The value in use is based on a discounted cash flow (DCF) model and is cal- culated for each cash-generating unit. Independence We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Account- ants (IESBA Code) and the additional ethical require- ments applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We have fulfilled our responsibilities described in the "Auditor's responsibilities for the audit of the financial statements" section, including in relation to the key au- dit matters below. Accordingly, our audit included the design and performance of procedures to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit proce- dures, including the procedures performed to address In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Parent Company at 31 December 2024 and of the re- sults of the Group's and the Parent Company's opera- tions and cash flows for the financial year 1 January – 31 December 2024 in accordance with IFRS Accounting Refer to note 13 in the consolidated financial statements and to note 11 in the financial statements for the Parent Company. To the best of our knowledge, we have not provided any prohibited non-audit services as described in article 5(1) of Regulation (EU) no. 537/2014. Annual report Page 109 How our audit addressed the above key audit matter Our audit procedures included: recognized based on expected performance for the con- tract period. policies as disclosed in note 4 to the consolidated financial statements. assumptions, and obtained evidence for the expla- nations provided, by comparing key assumptions to market data, where available, underlying ac- counting records, past performance of the acquired businesses and Management’s forecasts support- ing the acquisitions. • Evaluation of the disclosures provided by Manage- ment in note 4 to the consolidated financial state- ments and in note 2 to the financial statement for the parent company to applicable accounting standards. • Assessment of the indefinite life assumption in- cluding examination of data provided by manage- ment and other sources as well as inquiries to man- agement and comparison with industry practice for comparable companies. Revenue recognition and measurement of the related variable consideration for the Group was a matter of most significance in our audit due to the inherent risk in the estimates and judgements which Management makes in the normal course of business as to timing of revenue and measurement of variable consideration. • Assessment of the adequacy of the disclosures in note 21 related to the acquisitions, including the fair value of acquired intangible assets, compared to applicable accounting standards. • • Evaluation of main principles and assumptions for Management’s identification and assessment of CGUs. Accounting for acquisitions The Group has in 2024 completed two business combi- nations. Management has determined the fair value of the identifiable assets and liabilities acquired. The total consideration for the two business combinations amounts to EUR 153 million. For details on the revenue, reference is made to note 4 in the consolidated financial statements and to note 2 in the financial statements for the parent company. Statement on the Management’s review Management is responsible for the Management's re- view. Evaluation of the value-in-use model used by Man- agement, including consideration of the cash-gen- eration units defined by Management and the rea- sonableness of key assumptions and input based on our knowledge of the business and industry to- gether with available supporting evidence such as available budgets and externally observable mar- ket data related to interest rates. How our audit addressed the above key audit matter Our audit procedures included: Our opinion on the financial statements does not cover the Management's review, and we do not as part of our audit express any assurance conclusion thereon. Due to the significant level of management judgement involved estimating the fair value of especially the intan- gible assets acquired, we considered the accounting for acquisitions of most significance in our audit. • • • Test on a sample basis recognized revenue and re- lated variable considerations to agreements with operators. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's re- view is materially inconsistent with the financial state- ments, or our knowledge obtained during the audit, or otherwise appears to be materially misstated. • Evaluation of the disclosures provided by Manage- ment in note 13 to the consolidated financial state- ments and in note 11 to the Parent Company finan- cial statements to applicable accounting standards. For details on the acquisitions, reference is made to note 21 in the consolidated financial statements. Data analytical procedures to test completeness, accuracy, and timing of the recognition of revenue and related variable consideration. How our audit addressed the above key audit matter Our audit procedures included: Test of revenue accruals, revenue deferrals, and sales transactions, recognized before and after the balance sheet date to contracts and other support- ing documentation to assess proper revenue cut- off. Revenue recognition Moreover, it is our responsibility to consider whether the Management's review provides the information required by relevant law and regulations. This does not include the requirements in paragraph 99a related to the sus- tainability statement covered by the separate auditor’s limited assurance report hereon. The Group’s revenue consists of different revenue streams, that either are recognized at a point in time or over time. Further, the Group has agreements with op- erators that include variable consideration, which is • Assessment of the assumptions and methodology applied by management to calculate the fair value of intangible assets acquired as well as the contin- gent consideration. We have considered the ap- proach taken by Management, assessed key • Assessment of whether the applied revenue recog- nition criteria follow the Group’s accounting Annual report Page 110 Auditor’s responsibilities for the audit of the financial statements Based on our procedures, we conclude that the Manage- ment's review is in accordance with the financial state- ments and has been prepared in accordance with the re- quirements of relevant law and regulations. We did not identify any material misstatement of the Management's review. omissions, misrepresentations or the override of in- ternal control. note disclosures, and whether the financial state- ments represent the underlying transactions and events in a manner that gives a true and fair view. Plan and perform the group audit to obtain suffi- cient appropriate audit evidence regarding the fi- nancial information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are respon- sible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or er- ror, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assur- ance, but is not a guarantee that an audit conducted in accordance with ISAs and additional requirements ap- plicable in Denmark will always detect a material mis- statement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. • Obtain an understanding of internal control rele- vant to the audit in order to design audit proce- dures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Parent Company's internal control. • Management’s responsibilities for the financial statements • • Evaluate the appropriateness of accounting poli- cies used and the reasonableness of accounting es- timates and related disclosures made by Manage- ment. Management is responsible for the preparation of con- solidated financial statements and parent company fi- nancial statements that give a true and fair view in ac- cordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Fi- nancial Statements Act and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Conclude on the appropriateness of Management's use of the going concern basis of accounting in pre- paring the financial statements and, based on the audit evidence obtained, whether a material uncer- tainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our au- ditor's report to the related disclosures in the finan- cial statements or, if such disclosures are inade- quate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and the Parent Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the financial statements, including the We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. As part of an audit conducted in accordance with ISAs and additional requirements applicable in Denmark, we exercise professional judgement and maintain profes- sional scepticism throughout the audit. We also: In preparing the financial statements, Management is re- sponsible for assessing the Group's and the Parent Com- pany's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and us- ing the going concern basis of accounting in preparing the financial statements unless Management either in- tends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to com- municate with them all relationships and other matters that may reasonably be thought to bear on our inde- pendence, and where applicable, actions taken to elimi- nate threats or safeguards applied. • Identify and assess the risks of material misstate- ment of the financial statements, whether due to fraud or error, design and perform audit proce- dures responsive to those risks and obtain audit ev- idence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the • Annual report Page 111 consolidated financial statements and the Parent Com- pany financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter. taxonomy, for all financial information required to be tagged using judgement where necessary; Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements pre- sented in human readable format; and • Evaluating the appropriateness of the company’s use of iXBRL elements selected from the ESEF tax- onomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified; • • For such internal control as Management deter- mines necessary to enable the preparation of an annual report that is compliant with the ESEF Reg- ulation. • • Evaluating the use of anchoring of extension ele- ments to elements in the ESEF taxonomy; and Reconciling the iXBRL tagged data with the au- dited Consolidated Financial Statements. Report on compliance with the ESEF Regulation As part of our audit of the Consolidated Financial State- ments and Parent Company Financial Statements of Better Collective A/S, we performed procedures to ex- press an opinion on whether the annual report of Better Collective A/S for the financial year 1 January – 31 De- cember with the file name [bettercollective-2024-12-31- en.zip] is prepared, in all material respects, in compli- ance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial State- ments including notes. Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material re- spects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor’s judge- ment, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The proce- dures include: In our opinion, the annual report for the financial year January 1 – December 31, 2024 with the file name bet- tercollective-2024-12-31-en.zip is prepared, in all mate- rial respects, in compliance with the ESEF Regulation. Copenhagen, March 25, 2025 EY Godkendt Revisionspartnerselskab CVR no. 30 70 02 28 Mikkel Sthyr Kennet Hartmann State Authorised Public Accountant MNE no. 40036 State Authorised Public Accountant MNE no. 26693 • • Testing whether the annual report is prepared in XHTML format; Management is responsible for preparing an annual re- port that complies with the ESEF Regulation. This re- sponsibility includes: Obtaining an understanding of the company’s iXBRL tagging process and of internal control over the tagging process; • • The preparing of the annual report in XHTML for- mat; • Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements including notes; The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the Annual report Page 112 process carried out by the management to identify the information reported in the Sustainability Statements (the process) is in accordance with the description set out in the chapter ‘Double material- ity assessment’ within the ‘General disclosures’ sec- tion on pages 53-54; and Compliance of the disclosures in the chapter EU Taxonomy within the ‘Environment’ section on pages 91-95 of the Sustainability Statements with Article 8 of EU Regulation 2020/852 (the Taxon- omy Regulation). described in the Auditor's responsibilities for the assur- ance engagement section of our report. Management's responsibilities for the Sustainability Statements Independent Auditors’ limited assurance report on Management is responsible for designing and imple- menting a process to identify the information reported in the Sustainability Statements in accordance with the ESRS and for disclosing this process in the chapter ‘Dou- ble materiality assessment’ within the ‘General disclo- sures’ section on pages 52-54 of the Sustainability Statements. This responsibility includes: Our independence and quality management We are independent of the group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Account- ants (IESBA Code) and the additional ethical require- ments applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Sustainability • Statements To the shareholders of Better Collective A/S • Understanding the context in which the group's ac- tivities and business relationships take place and developing an understanding of its affected stake- holders; EY Godkendt Revisionspartnerselskab applies Interna- tional Standard on Quality Management 1, which re- quires the firm to design, implement and operate a sys- tem of quality management including policies or proce- dures regarding compliance with ethical requirements, professional standards and applicable legal and regula- tory requirements. Basis for opinion Limited assurance conclusion We conducted our limited assurance engagement in ac- cordance with International Standard on Assurance En- gagements (ISAE) 3000 (Revised), Assurance engage- ments other than audits or reviews of historical financial information (ISAE 3000 (Revised)) and the additional requirements applicable in Denmark. We have conducted a limited assurance engagement on the Sustainability Statements of Better Collective A/S (the Group) included in the Annual Report 2024, pages 42-106 (the Sustainability Statements) for the financial year 1 January – 31 December 2024 including disclosures incorporated by reference listed in the table ‘Disclosure requirements and incorporation by reference’ on pages 44 and 102-106. • The identification of the actual and potential im- pacts (both negative and positive) related to sus- tainability matters, as well as risks and opportuni- ties that affect, or could reasonably be expected to affect, the group's financial position, financial per- formance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term; The assessment of the materiality of the identified impacts, risks and opportunities related to sustain- ability matters by selecting and applying appropri- ate thresholds; and The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance en- gagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Inherent limitations in preparing the Sustainability Statements • • In reporting forward-looking information in accordance with ESRS, management is required to prepare the for- ward-looking information on the basis of disclosed as- sumptions about events that may occur in the future and possible future actions by the group. Actual outcomes are likely to be different since anticipated events fre- quently do not occur as expected. Based on the procedures we have performed and the evidence we have obtained, nothing has come to our at- tention that causes us to believe that the Sustainability Statements is not prepared, in all material respects, in accordance with the Danish Financial Statements Act section 99 a, including: Making assumptions that are reasonable in the cir- cumstances. We believe that the evidence we have obtained is suffi- cient and appropriate to provide a basis for our conclu- sion. Our responsibilities under this standard are further • Compliance with the European Sustainability Re- porting Standards (ESRS), including that the Annual report Page 113 users taken on the basis of the Sustainability Statements as a whole. where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. assessment’ within the ‘General disclosures’ section on pages 52-54. Management is further responsible for the preparation of the Sustainability Statements, in accordance with the Danish Financial Statements Act section 99a, including: As part of a limited assurance engagement in accord- ance with ISAE 3000 (Revised), we exercise profes- sional judgment and maintain professional skepticism throughout the engagement. In conducting our limited assurance engagement, with respect to the Sustainability Statements, we: • • Compliance with the ESRS; Preparing the disclosures in the chapter EU Taxon- omy within the ‘Environment’ section on pages 91- 95 of the Sustainability Statements, in compliance with Article 8 of the Taxonomy Regulation; Designing, implementing and maintaining such in- ternal control that management determines is nec- essary to enable the preparation of the Sustainabil- ity Statements that is free from material misstate- ment, whether due to fraud or error; and • Obtained an understanding of the group's report- ing processes relevant to the preparation of its Sus- tainability Statements by obtaining an understand- ing of the group's control environment, processes and information systems relevant to the prepara- tion of the Sustainability Statements but not evalu- ating the design of particular control activities, ob- taining evidence about their implementation or testing their operating effectiveness; Our responsibilities in respect of the process include: Summary of the work performed A limited assurance engagement involves performing procedures to obtain evidence about the Sustainability Statements. • • Obtaining an understanding of the process but not for the purpose of providing a conclusion on the ef- fectiveness of the process, including the outcome of the process; The nature, timing and extent of procedures selected depend on professional judgement, including the identi- fication of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Sus- tainability Statements. • • Considering whether the information identified ad- dresses the applicable disclosure requirements of the ESRS, and The selection and application of appropriate sustainabil- ity reporting methods and making assumptions and es- timates that are reasonable in the circumstances. • • • • • Evaluated whether material information identified by the process is included in the Sustainability Statements; Designing and performing procedures to evaluate whether the process is consistent with the group's description of its process, as disclosed in the chap- ter ‘Double materiality assessment’ within the ‘Gen- eral disclosures’ section on pages 52-54. In conducting our limited assurance engagement, with respect to the process, we: Evaluated whether the structure and the presenta- tion of the Sustainability Statements are in accord- ance with the ESRS; Auditor's responsibilities for the assurance engage- ment • • Obtained an understanding of the process by per- forming inquiries to understand the sources of the information used by management; and reviewing the group's internal documentation of its process; and Our objectives are to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statements is free from material mis- statement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are con- sidered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of Performed inquiries of relevant personnel and ana- lytical procedures on selected information in the Sustainability Statements; Our other responsibilities in respect of the Sustainability Statements include: Performed substantive assurance procedures on selected information in the Sustainability State- ments; • • Identifying disclosures where material misstate- ments are likely to arise, whether due to fraud or error; and Evaluated whether the evidence obtained from our procedures about the Process implemented by the group's was consistent with the description of the Process set out in the chapter ‘Double materiality Evaluated methods, assumptions and data for de- veloping material estimates and forward-looking information and how these methods were applied; Designing and performing procedures responsive to disclosures in the Sustainability Statements Annual report Page 114 • • Obtained an understanding of the process to iden- tify EU taxonomy eligible and aligned economic ac- tivities for turnover, CAPEX and OPEX and the cor- responding disclosures in the Sustainability State- ments; Evaluated compliance processes, methods, and data for covered activities, assessed minimum safe- guards compliance through personnel inquiries, and conducted analytical procedures on EU taxon- omy aligned disclosures • • Evaluated the presentation and use of EU taxon- omy templates in accordance with relevant re- quirements; and Reconciled and ensured consistency between the reported EU taxonomy economic activities and the items reported in the primary financial statements including the disclosures provided in related notes. Copenhagen, March 25, 2025 EY Godkendt Revisionspartnerselskab CVR no. 30 70 02 28 Mikkel Sthyr Lars Fermann State Authorised Public Accountant MNE no. 26693 State Authorised Public Accountant MNE no. 45879 Annual report Page 115 Financial Statements Statement of profit and loss Statement of comprehensive income Balance sheet 117 117 118 119 120 122 Statement of changes in equity Cash flow statement Notes Annual report Annual report Page 116 Page 116 Consolidated statement of profit and loss Consolidated statement of comprehensive income Note tEUR 2024 371,487 107,167 113,000 37,917 113,403 6,990 106,413 34,080 72,334 - 10,886 61,447 7,310 2023 326,686 99,296 88,921 27,389 111,080 3,958 107,122 24,283 82,839 - 1,948 80,891 5,987 Note tEUR 2024 2023 3, 4 Revenue Profit for the period Other comprehensive income Other comprehensive income that may be reclassified to profit or loss in subsequent pe- 34,014 39,835 Direct costs related to revenue 5, 6 7 Staff costs Other external expenses riods: Fair value adjustment of hedges for the year Currency translation to presentation currency Currency translation of non-current intercompany loans Income tax - 180 6,297 - 483 1,318 - 9,440 0 Operating profit before depreciation and amortization (EBITDA) and special items Depreciation Operating profit before amortization (EBITA) and special items Amortization and impairment Operating profit (EBIT) before special items Special items, net 14 12 8 17,325 - 1,589 21,853 55,867 11 Net other comprehensive income/loss - 8,605 31,230 Total comprehensive income/(loss) for the period, net of tax Operating profit Financial income Attributable to: 9 Shareholders of the parent 55,867 31,230 10 Financial expenses 25,893 42,865 8,850 28,868 58,010 18,175 39,835 Profit before tax Tax on profit for the period Profit for the period 11 34,014 Earnings per share attributable to equity holders of the company Average number of shares 61,876,816 2,339,557 0.55 55,186,772 2,658,571 0.74 Average number of warrants - converted to number of shares Earnings per share (in EUR) Diluted earnings per share (in EUR) 0.53 0.70 Annual report Page 117 Consolidated balance sheet Note tEUR 2024 2023 Note tEUR 2024 2023 Assets Equity and liabilities Non-current assets 16 Equity 12, 13 Intangible assets Share Capital Share Premium Reserves Retained Earnings Total equity 631 469,460 16,089 199,749 685,929 554 274,580 - 6,486 166,624 435,273 Goodwill 360,988 553,886 117,628 255,074 466,615 79,740 Domains and websites Accounts and other intangible assets Total intangible assets 1,032,501 801,429 14 11 Tangible assets Right of use assets Non-current Liabilities Debt to credit institutions Lease liabilities 15,929 6,704 15,575 6,006 19 18 11 19 259,691 12,560 98,673 42,030 412,955 248,657 13,326 84,670 52,443 399,096 Leasehold improvements, Fixtures and fittings, other plant and equipment Deferred tax liabilities Total tangible assets 22,633 21,582 Other long-term financial liabilities Total non-current liabilities Other non-current assets Deposits 1,940 4,573 6,513 1,803 7,236 9,039 Deferred tax asset Current Liabilities Prepayments received from customers and deferred revenue Trade and other payables Corporation tax payable Other financial liabilities Lease liabilities 10,275 26,894 4,764 4,262 27,838 6,754 Total other non-current assets 17 11 19 18 Total non-current assets 1,061,647 832,050 Current assets 26,926 4,376 61,938 2,702 15 11 Trade and other receivables Corporation tax receivable Prepayments 63,763 2,934 6,101 0 37,674 110,472 48,954 2,252 Total current liabilities 73,235 486,190 103,493 502,589 4,250 Total liabilities 19 19 Other current financial assets Cash 6,804 43,552 105,812 Total Equity and liabilities 1,172,119 937,862 Total current assets Total assets 1,172,119 937,862 Annual report Page 118 Consolidated statement of changes in equity Currency translation reserve Currency translation reserve Share capital Share premium Hedging reserves Treasury shares Retained earnings Total equity Share capital Share premium Hedging reserves Treasury shares Retained earnings Total equity tEUR tEUR As at January 1, 2024 554 274,580 15,055 - 483 - 21,057 166,624 435,273 As at January 1, 2023 551 272,550 23,177 0 - 7,669 124,307 412,917 Result for the period 0 0 0 0 0 34,014 34,014 Result for the period 0 0 0 0 0 39,835 39,835 Fair value adjustment of hedges Fair value adjustment of hedges 0 0 0 0 0 - 180 0 0 0 0 - 180 0 0 0 0 0 - 483 0 0 0 0 - 483 Foreign currency translation 23,622 0 23,622 Foreign currency translation - 8,122 0 - 8,122 Tax on other Tax on other comprehensive income 0 0 0 0 0 0 - 1,735 21,887 21,887 146 - 34 - 34 0 0 0 0 0 - 1,589 21,853 55,867 comprehensive income 0 0 0 0 0 0 0 - 8,122 - 8,122 0 - 483 - 483 0 0 0 0 0 0 - 8,605 31,230 Total other comprehensive income Total other comprehensive income Total comprehensive income for the year Total comprehensive income for the year 34,014 39,835 Transactions with owners Capital Increase Transactions with owners Capital Increase 77 0 0 194,880 0 0 0 0 0 0 0 0 0 0 0 0 0 - 22,533 23,254 0 - 1,758 0 9,017 - 5,131 - 3,018 - 890 193,199 - 22,533 32,271 3 0 0 0 0 3 2,030 0 0 0 0 0 0 0 0 0 0 0 0 0 - 13,375 0 0 0 0 2,033 - 13,375 0 Acquisition of treasury shares Disposal of treasury shares Share based payments Transaction cost 0 0 Acquisition of treasury shares Disposal of treasury shares Share based payments Transaction cost 0 0 0 0 0 0 - 5,131 - 3,018 194,788 0 2,495 - 12 2,482 2,495 - 26 0 0 0 - 13 Total transactions with owners 77 194,880 721 Total transactions with owners 2,030 - 13,389 - 8,874 At December 31, 2024 631 469,460 36,941 - 517 - 20,336 199,749 685,929 At December 31, 2023 554 274,580 15,055 - 483 - 21,057 166,624 435,273 During the period no dividend was paid. During the period no dividend was paid. Annual report Page 119 Consolidated statement of cash flow Note tEUR 2024 2023 Note tEUR 2024 2023 Profit before tax Adjustment for finance items 42,865 18,583 10,886 72,334 41,070 1,244 58,010 22,882 1,947 19 19 19 19 Repayment of borrowings Proceeds from borrowings Lease liabilities - 136,321 124,196 - 4,384 - 434 146,362 - 20,336 - 3,018 - 6,911 99,154 - 1,486 45,490 - 2,814 - 483 2,033 - 13,381 - 26 Adjustment for special items Other non-current liabilities Capital increase Operating Profit for the period before special items Depreciation and amortization 82,839 28,241 2,581 Treasury shares Other adjustments of non-cash operating items Transaction cost Warrant settlement, sale of warrants Cash flow from financing activities Cash flow from operations before changes in working capital and special items 114,647 - 13,638 101,009 - 18,390 82,619 113,661 5,722 0 20 Change in working capital 29,334 Cash flow from operations before special items Special items, cash flow 119,384 - 4,744 114,639 493 - 10,712 104,420 - 15,411 89,009 Cash flows for the period - 5,624 43,552 - 254 12,095 31,497 - 41 Cash flow from operations Financial income, received Financial expenses, paid Cash and cash equivalents at beginning Foreign currency translation of cash and cash equivalents Cash and cash equivalents period end 3,111 - 19,501 66,228 37,674 43,552 Cash flow from activities before tax Income tax paid - 16,731 49,497 Cash and cash equivalents period end Cash Cash flow from operating activities 37,674 43,552 Cash and cash equivalents period end 37,674 43,552 21 Acquisition of businesses - 120,451 - 33,532 - 3,942 0 - 57,282 - 27,469 - 5,143 3 Acquisition of intangible assets Acquisition of tangible assets Sale of tangible assets Acquisition of other financial assets Sale of other financial assets Change in other non-current assets Cash flow from investing activities 0 - 14,930 0 3,232 - 136 - 1,427 - 106,248 - 154,829 Annual report Page 120 Cashflow statement – specifications Note tEUR 2024 2023 Note tEUR 2024 2023 Acquisition of business combinations: Net Cash outflow Equity movements with cashflow impact - from cash flow statement: 21 from business combinations at acquisition - 70,318 - 57,282 Capital increase 146,362 - 20,336 - 3,018 2,033 - 13,381 - 26 Business Combinations deferred payments from current period Treasury shares 0 0 Transaction cost Deferred payments - business combinations from prior periods Warrant settlement, sale of warrants Total equity movements with cash flow impact - 6,911 0 - 50,133 0 116,097 - 11,374 Total cash flow from business combinations - 120,451 - 57,282 Non-cash flow movements on equity: New shares for M&A payments Acquisition of intangible assets: Acquisitions through asset transactions Deferred payments related to acquisition value 46,837 30,075 0 0 - 5,806 - 50,639 Treasury Shares used for payments 0 - 494 Share based payments Deferred payments - warrant expenses with no cash flow effect 1,780 2,495 - acquisitions from prior periods - 8,500 0 - 9,745 33,613 - 203 Intangible assets with no cash flow effect Other investments Total equity movements with no cash flow impact 78,692 2,495 - 19,226 - 33,532 Total Transactions with owners - Consolidated statement of changes in equity Total cash flow from intangible assets - 27,469 194,788 - 8,879 Annual report Page 121 Notes to the consolidated financial statements 1. Accounting policies 2. Significant accounting judgements, estimates and assumptions 123 125 127 128 129 131 3. Segment information 4. Revenue specification 5. Staff and other costs 6. Share-based payment plans 7. Fees paid to auditors appointed at the annual general meeting 8. Special items 9. Finance income 10. Finance costs 133 134 135 135 136 138 140 143 144 145 146 146 148 152 152 155 156 157 157 11. Income tax 12. Intangible assets 13. Goodwill and intangible assets with indefinite life 14. Tangible assets 15. Trade and other receivables 16. Issued capital and reserves 17. Trade and other payables 18. Leasing 19. Financial risk management objectives and policies 20. Change in working capital 21. Business combinations 22. Related party disclosures 23. Group information –subsidiary information 24. Other contingent liabilities 25. Events after the reporting date Annual report Page 122 However, this legislation does not apply to the Group as it has not had a consolidated revenue of more than 750 mEUR for two out of the last four years. Due to revenue expectations, an overall assessment was made, which concluded that this will not have any material impact on the Group. Notes 1. Accounting policies Presentation currency The Group’s consolidated financial statements and parent financial statements are presented in Euro (EUR), and the parent company’s functional currency is Danish Kroner (DKK). In general, rounding will occur and cause variances in sums and percentages in the consolidated and parent company financial statements. General The financial statements section of the annual report for the period January 1 – December 31, 2024 comprises both the consolidated financial statements of Better Collective A/S and its subsidiaries (the Group or the Better Collective Group) and the separate parent company financial statements (the Parent). The comparative figures cover the period January 1 – December 31, 2023. Foreign currencies For each of the reporting entities in the Group, including subsidiaries and foreign associates, a functional currency is determined. The functional currency is the currency used in the primary financial environment in which the reporting entity operates. Transactions denominated in currencies other than the functional currency are foreign currency trans- actions. On initial recognition, foreign currency transactions are translated to the functional currency at the exchange rate on the transaction date. Foreign exchange differences arising between the rate on the transaction date and the rate on the date of settlement are recognized in profit or loss as financial income or financial expenses. At the end of a reporting period, receivables and payables and other monetary items denominated in foreign currencies are translated to the functional currency at the exchange rate on the balance sheet date. The difference between the exchange rates on the balance sheet date and on the date the receivable or payable was recognized in the latest report- ing period is recognized in profit or loss as financial income or financial expenses. In the consolidated financial statements, the statements of comprehensive income of Group entities with a functional currency other than EUR are translated at the exchange rate on the transaction date, and the balance sheet items are translated at closing rates. An average exchange rate for each month is used as the exchange rate at the transaction date in so far as this does not significantly distort the presentation of the underlying transactions. Foreign exchange differences arising on translation to the EUR presentation currency are recognized in other comprehensive income (OCI) in a separate translation reserve under equity. On disposal of a reporting entity, the component of other comprehensive income relating to that particular reporting entity is reclassified to profit or loss. The Parent company has provided non- current intercompany loans in USD to fund acquisitions of assets and business combinations in US. Unrealized exchange rate gains/losses and related tax impact related to these loans are recognized in Other Comprehensive Income for the Group. Basis for preparation The consolidated financial statements of Better Collective A/S h ave been prepared in accordance with IFRS Accounting Standards as adopted by the EU and additional Danish disclosure requirements for listed companies. Better Collective A/S is incorporated and domiciled in Denmark. The Board of Directors and the Executive Board have discussed and approved the annual report for Better Collective A/S on March 25, 2025. The annual report will be presented to the shareholders of Better Collective A/S for adoption at the annual general meeting on April 22, 2025. The accounting policies have been applied consistently during the financial year and for the comparative figures. New financial reporting standards All new or amended standards (IFRS) and interpretations (IFRIC) as adopted by the EU and which are effective for the financial year beginning on 1 January 2024 have been adopted. The implementation of these new or amended standards and interpretations had no material impact on the financial statements. For standards implemented prospectively the comparative figures are not restated. New financial reporting standards not yet adopted. The IASB has issued several new or amended standards and interpretations with effective date after December 31, 2024. The Group expects to adopt the new standards and interpretations when they become mandatory. None of the stand- ards are expected to have a significant effect for the consolidated financial statements or the parent financial statements for the coming financial years. Better Collective is currently assessing the impact IFRS 18 will have on factors such as presentation of the income statement and cash flow statement and disclosures to be provided in the notes. Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Group operates. Annual report Page 123 and transport costs. All assets and liabilities measured at fair value, or in respect of which the fair value is disclosed, are categorized into levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measure- ment, see below: Level 1: Quoted priced in an active market for identical assets or liabilities Level 2: Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly Level 3: Inputs that are not based on observable market data (valuation techniques that use inputs that are not based on observable market data) Listed shares included under other current financial assets are measured at fair value based on level 1 (market price) at the balance sheet date. The fair value of financial instruments is measured based on level 2. The fair value is measured according to generally accepted valuation techniques. Market-based input is used to measure the fair value. Fair Value of financial assets and liabilities is measured based on level 3 - Valuation techniques. In all material aspects the fair value of the financial assets and liabilities is considered equal to the booked value Notes 1. Accounting policies (continued) Basis for consolidation The consolidated financial statements include the parent company Better Collective A/S and its subsidiaries. Subsidiaries are entities over which the Better Collective Group has control. The Group has control over an entity when the Group is exposed to or has rights to variable returns from its involvement in the entity and has the ability to affect those returns through its power over the entity. Only potential voting rights considered to be substantive at the balance sheet date are included in the control assessment. The Group re-assesses if it controls an investee if facts and circum- stances indicate that there are changes to one or more of the elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. The consolidated financial statements are prepared by combining uniform items. On consolidation, intercompany in- come and expenses, shareholdings, intercompany accounts and dividend as well as realized and unrealized profit and loss on transactions between the consolidated companies are eliminated. Derivative financial instruments Derivative financial instruments are recognized on the trade date and are measured at fair value. Positive and negative fair values are included in other current receivables or other current payables in the statement of financial position. Positive and negative fair values are only offset if the Group has a right and an intention to settle several derivative financial instruments net (by means of settlement of differences). Fair value is determined based on generally accepted valuation methods using available observable market data. When entering into contracts for derivative financial instruments, an assessment is made of whether the instrument qualifies for hedge accounting, including whether the instrument hedges recognized assets and liabilities. Fair value changes classified as and fulfilling the criteria for recognition as a fair value hedge are recognized in the statement of profit or loss together with changes in the value of the specific portion of the asset or liability that has been hedged. Fair value changes in the part of the derivative financial instruments which is classified as and qualifies for recognition as a future cash flow hedge and which effectively hedges against changes in the value of the hedged item are recognized in other comprehensive income as a separate hedging reserve. When the underlying hedged item is realized, any gain or loss on the hedging transaction is transferred from equity and recognized together with the hedged item. Fair value changes that do not meet the criteria for treatment as hedging instruments are recognized on an ongoing basis in the statement of profit or loss under financial items. iXBRL reporting Better Collective A/S has filed the Annual Report for 2024 in the European Single Electronic Format (ESEF), XHTML format, that can be displayed in a standard browser. The primary statements and notes in the consolidated financial statements are tagged using extensible Business Reporting Language (iXBRL), which complies with the ESEF taxonomy included in the ESEF Regulation. Accounting policies Fair value measurement The Group uses the fair value concept in connection with certain disclosure requirements and for recognition of deriva- tives and business combinations. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (“exit price”). The fair value is a market-based and not an entity-specific measurement. The entity uses the assumptions that the mar- ket participants would use for the pricing of the asset or liability based on the current market conditions, including risk assumptions. The entity’s purpose of holding the asset or settling the liability is thus not taken into account when the fair value is determined. The fair value measurement is based on the principal market. If a principal market does not exist, the measurement is based on the most advantageous market, i.e. the market that maximises the price of the asset or liability less transaction Annual report Page 124 Notes Notes 1. Accounting policies (continued) 2. Significant accounting judgements, estimates and assumptions Business combinations (common-control) The modified uniting-of-interest method is applied to vertical mergers in which the participating entities are subject to the Parent’s control. Under this method, assets and liabilities of the participating entities are recognized at the amounts at which they are recognized in the consolidated financial statements of the parent forming part of the merger. Vertical mergers are recognized at the merger date without restatement of comparative figures. The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and the accompanying disclosures, as well as the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The key accounting judgements, estimates, and assumptions, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Management based its assumptions on historical experience and estimates on parameters available when the consoli- dated financial statements were prepared. Existing circumstances and assumptions about future developments, how- ever, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur. Cash flow statement The Cash Flow Statement shows the cash flows of the Group for the year, distributed on operating activities, investing activities, and financing activities for the year, changes in cash and cash equivalents, and the cash and cash equivalents at the beginning and the end of the year, respectively. The cash flow effect of acquisitions of businesses is shown separately in cash flows from investing activities. Cash flows from acquired businesses are recognized in the cash flow statement from the date of acquisition. Cash flow from operating activities Cash flows from operating activities are determined as profit for the year adjusted for noncash operating items, the change in working capital and income tax paid. Cash flow from investing activities Cash flows from investing activities comprise payments in connection with the acquisition and sale of businesses, intan- gible assets, plant and machinery and financial assets. Cash flow from financing activities Cash flows from financing activities comprise change in the size or composition of the Group’s share capital and related costs as well as borrowing, repayment of interest-bearing debt, re-payment of lease liabilities, and payment of dividends to shareholder. Business combinations Management may make certain judgements in the process of the classification of a transaction as an asset acquisition or a business combination. The Group is required to allocate the acquisition cost of entities and activities through busi- ness combinations on the basis of the fair value of the acquired assets and assumed liabilities. The Group uses external and internal valuations to determine the fair value. The valuations include management estimates and assumptions as to future cash flow projections from the acquired business and selection of models to compute the fair value of the acquired components and their depreciation period. Estimates made by Management influence the amounts of the ac- quired assets and assumed liabilities and the depreciation and amortization of acquired assets in profit or loss. Reference is made to note 21 of the consolidated financial statements. Annual report Page 125 Special items Significant expenses and income, which Better Collective considers not part of ordinary business operations, are pre- sented in the Income statement in a separate line item labelled ‘Special items’ in order to distinguish these items from other income statement items, and provide a more transparent and comparable view of Better Collective’s ongoing performance. Types of expenses and income included in special items include cost related to dual listing, M&A, adjust- ments to Earn-out payments, impairments and cost related to restructuring. Reference is made to note 8 of the consol- idated financial statements and note 6 of the parent company financial statements. Notes 2. Significant accounting judgements, estimates and assumptions (continued) Goodwill, intangible assets with indefinite useful life and impairment Goodwill, domains and websites are expected to have an indefinite useful life and are therefore not subject to amorti- zation. Management believes that as long as content is being updated continuously and based on existing technology there is no foreseeable limit to the period on which the assets can generate revenues and cash flow from the underlying business activities of the sportsbooks. Consequently, Management has assessed indefinite life of domains and websites similar to its peers in the industry. Management reviews this assessment annually to determine whether the indefinite life continues to be supportable. Management reviews goodwill, domains and websites for impairment at least once a year. This requires Management to make an estimate of the projected future cash flows from the continuing use of the cash-generating unit to which the assets are allocated and also to choose a suitable discount rate for those cash flows. In 2024 Better Collective continues to have four cash generating units with the business acquisitions of AceOdds in- cluded in Publishing, and the acquisition of Playmaker Capital Playmaker allocated between existing cash generating units. Goodwill in Playmaker Capital is allocated to the CGU’s; Paid Media (9%), Rest of BC (57%) and North America (35%) based on the proportional share of the fair value of acquired intangible assets identified in the Purchase Price Allocation (PPA). This allocation reflects the economic benefits each CGU is expected to generate. The allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. Reference is made to note 13 of the consolidated financial statements. Deferred tax Management applies significant estimates when recognizing and measuring deferred tax assets. Deferred tax assets, including the tax base of tax loss carryforwards, are recognized if it is assessed that there will be sufficient future taxable income against which the temporary differences and unutilised tax losses can be utilised. This assessment is based on budgets and business plans for the following years, including planned business initiatives. Deferred tax assets are tested annually and are only recognized if it is probable that future taxable profit will allow the deferred tax asset to be recovered. Other contingent liabilities Contingent consideration resulting from business combinations is valued at fair value at the acquisition date as part of the business combination. When the contingent consideration meets the definition of a financial liability, it is subse- quently remeasured to fair value at each reporting date. The determination of the fair value is based on discounted cash flows. The key assumptions take into consideration the probability of meeting the performance target (refer to note 19 (Group) for details). Other contingent liabilities from partnerships is valued at fair value based on performance targets. If the events and circumstances do not continue to support a useful life assessment and the projected future cash flows from the intangible assets is less than the assets’ carrying value, an impairment loss will be recognized. In addition, Management will change the indefinite useful life assessment from indefinite to finite and this change will be accounted for prospectively as a change in accounting estimate. Revenue from agreements with variable components The Group has agreements with customers that include variable revenue, e.g. agreements where the CPA and hybrid deals value depends on the achievement of NDC targets. CPA revenue under these contracts is recognized with the number of NDCs delivered and the estimated CPA value based on expected performance for the contract period. Annual report Page 126 Notes 3. Segment information Publishing and Paid Media Better Collective operates two different business models regarding customer acquisition with different earnings- profiles. The segments Publishing and Paid Media have been measured and disclosed separately for Revenue, Cost and Earnings. The Publishing business includes revenue from Better Collective’s proprietary online sports media and media partnerships where the audience is coming either directly or through organic search results, whereas Paid Media gener- ates revenue through paid ad-traffic to our brands, thereby running on a lower gross margin. Europe & ROW / North America Better Collective’s products cover more than 30 languages and attract millions of users worldwide - with international brands with a global reach as well as regional brands with a national reach. Better Collective’s regional brands are tai- lored according to the specific regions or countries and their respective regulations, sports, betting behaviors, user needs, and languages. Better Collective reports on the geographical segments Europe & ROW (Rest of World) and North America, measuring and disclosing separately for Revenue, Cost and Earning Publishing Paid Media Group tEUR 2024 2023 2024 2023 2024 2023 Revenue Share 127,684 120,776 52,598 41,049 180,283 161,825 CPA 40,518 40,590 51,804 63,371 92,323 103,960 Subscription 18,326 17,959 0 0 18,326 17,959 Sponsorships 44,944 29,487 2,382 1,937 47,326 31,424 CPM 32,126 11,333 0 0 32,126 11,334 Other 1,098 182 4 1 1,103 183 Revenue 264,698 220,328 106,789 106,358 371,487 326,686 Cost 180,316 139,685 77,767 75,920 258,084 215,605 Operating profit before depreciation, amorti- zation and special items 84,381 80,642 29,022 30,438 113,403 111,080 EBITDA-Margin before special items 32% 37% 27% 29% 31% 34% Special items, net - 10,849 - 1,948 - 37 0 - 10,886 - 1,948 Operating profit before depreciation and amortization 73,532 78,695 28,985 30,438 102,517 109,132 EBITDA-Margin 28% 36% 27% 29% 28% 33% Depreciation 6,787 3,909 203 49 6,990 3,958 Operating profit before amortization 66,745 74,785 28,782 30,389 95,527 105,175 EBITA-Margin 25% 34% 27% 29% 26% 32% Europe & RoW North America Group tEUR 2024 2023 2024 2023 2024 2023 Revenue Share 159,671 136,211 20,612 25,614 180,283 161,825 CPA 53,858 49,173 38,465 54,787 92,323 103,960 Subscription 2,787 2,461 15,539 15,499 18,326 17,959 Sponsorships 23,751 18,883 23,576 12,541 47,326 31,424 CPM 23,250 11,186 8,877 150 32,126 11,334 Other 822 172 281 9 1,103 183 Revenue 264,138 218,085 107,349 108,600 371,487 326,686 Cost 167,730 137,902 90,353 77,703 258,084 215,605 Operating profit before depreciation, amorti- zation and special items 96,407 80,183 16,996 30,897 113,403 111,080 EBITDA-Margin before special items 36% 37% 16% 28% 31% 34% Special items, net - 2,716 - 1,060 - 8,170 - 888 - 10,886 - 1,948 Operating profit before depreciation and amortization 93,692 79,123 8,827 30,009 102,517 109,132 EBITDA-Margin 35% 36% 8% 28% 28% 33% Depreciation 5,794 2,947 1,196 1,011 6,990 3,958 Operating profit before amortization 87,897 76,176 7,631 28,998 95,527 105,175 EBITA-Margin 33% 35% 7% 27% 26% 32% Annual report Page 127 Notes 4. Revenue specification The Group has earned 102.7 mEUR (2023: 92.5 mEUR) in revenues from one major customer, which represents 28 % of the Group’s revenue (2023: 28%). The revenue is related to all operating segments. In accordance with IFRS 15 disclosure requirements, total revenue is split on Revenue Share, Cost per Acquisition (CPA), Subscription Revenue, Banner revenue/CPM (Cost per million impressions) and Other, as follows: tEUR 2024 2023 Revenue category Recurring revenue (Revenue share, Subscription, CPM) 230,735 191,118 CPA, Sponsorships 139,649 135,385 Other 1,103 183 Total revenue 371,487 326,686 %-split Recurring revenue 62 58 CPA, Sponsorships 38 42 Other 0 0 Total 100 100 EUR 2024 2023 Revenue type Revenue Share 180,283 161,825 CPA 92,323 103,960 Subscription 18,326 17,959 Sponsorships 47,326 31,424 CPM 32,126 11,334 Other 1,103 183 Total revenue 371,487 326,686 %-split Revenue Share 49 50 CPA 25 32 Subscription 5 5 Sponsorships 13 10 CPM 8 3 Other 0 0 Total 100 100 Accounting policies Revenue The Group’s revenue consists of four different revenue streams, that either are recognized at a point in time or over time. Further, the Group has agreements with sportsbooks that include variable consideration, which is recognized based on expected performance for the contract period. Revenue share: In a revenue share model the Group receives a share of the revenues that a sportsbook has generated from a player betting or gambling on their platform, the player initially having been referred from one of the Group’s websites. Revenue is recognized at a point in time equal to the month that it is earned by the respective sportsbook. Hybrid revenue: Revenue recognized under the hybrid revenue model consists of upfront revenue share (one- time upfront fee for each new referred player) and revenue share for the amount that aggregate revenue share exceeds the aggregate upfront revenue share. Upfront revenue share is recognized at a point in time equal to the month in which the player referral is made. Revenue share is recognized once the aggregate revenue share exceeds the upfront revenue share and is recognized at a point in time equal to the month that it is earned by the respective sportsbook. Cost per acquisition (CPA): For CPA deals, the sportsbook pays a one-time upfront fee for each referred player who deposits money on their platform. Cost per acquisition consists of a pre-agreed rate with the sportsbook. Revenue is recognized at a point in time equal to the month in which the deposits are made. Subscription Revenue: Subscription revenue is subscription fees received by players who subscribe to services provided by the Group’s websites, primarily in the US market. Subscription revenue is recognized over time as the services under the subscription is delivered. Sponsorships and CPM: Includes revenue from sales of banners and other marketing fees from customers re- lated to the Group’s websites and is recognized when the service is delivered. Banner revenue can both be CPM (Cost per mille impressions) or based on direct fixed fee agreements with customers. Other Revenue: Other revenue primarily consists of rent from subleases and sale of merchandise. Annual report Page 128 Notes 5. Staff and other costs tEUR 2024 2023 Wages and salaries 94,023 72,447 Pensions, defined contribution 5,768 3,894 Other social security costs 5,811 4,641 Share-based payments 1,244 2,510 Other staff costs 6,154 5,429 Total staff cost 113,000 88,921 Average number of full-time employees 1,773 1,252 Remuneration to Executive Management Wages and salaries 1,714 1,592 Pensions, defined contribution 216 169 Other social security costs 3 6 Share-based payments 857 618 Total 2,790 2,385 Remuneration to Board of Directors Wages and salaries 590 480 Share-based payments 0 0 Total 590 480 Accounting policies Direct cost related to revenue Direct cost related to revenue contains cost of running the websites and includes, content pro- duction, domain name registration, domain hosting, and external development cost not qualified for capitalization. Staff cost Staff cost include wages and salaries, including compensated absence and pension to the Com- pany’s employees, as well as other social security contributions, etc. The item is net of refunds from public authorities. Costs related to long term employee benefits, e.g. share-based payments, are recognized in the period to which they relate. Other external expenses Other external expenses include the year’s expenses relating to the Company’s core activities, including expenses relating to sale, advertising, administration, premises, bad debts, etc. Annual report Page 129 Notes 5. Staff and other costs (continued) Board & Committee Fees Jens Klaus Leif Petra Therese Todd Rene tEUR Bager Holse Nørgaard von Rohr Hillman Dunlap Rechtman Britt Boeskov Total 2024 174 0 79 63 111 58 47 58 590 2023 149 30 59 52 97 52 19 22 480 Klaus Holse has resigned the Board and Rene Rechtman and Britt Boeskov have assigned to the Board in August 2023. Remuneration to Executive Management Jesper Christian Kirk Flemming tEUR Søgaard Rasmussen Pedersen Total 2024 Wages and salaries 582 582 550 1,714 Pensions, defined contribution 64 64 88 216 Other social security costs 1 1 1 3 Share-based payments 257 257 343 857 Total 904 904 982 2,790 2023 Wages and salaries 516 516 560 1,592 Pensions, defined contribution 45 45 79 169 Other social security costs 1 1 4 6 Share-based payments 177 177 264 618 Total 739 739 907 2,385 Annual report Page 130 2023 CXO Program On April 25th, 2023, a new CXO program consisting of stock options was approved by the board of directors. Under the program 300,000 options were granted to the chief executive management. Each option granted gives the partic- ipants the right to subscribe for one ordinary share subject to a performance-based element. Transactions under the CXO program are classified as equity-settled share-based payment transactions. 2024 LTI Program On January 2, 2024, a new LTI program consisting of Performance Stock Units and stock options was announced. Un- der the program 426,870 options and 61,523 PSUs were granted to certain key employees. Whereas the options have the right to subscribe for one ordinary share, the PSUs have a performance-based element that can increase to two shares for one PSU – both are classified as equity-settled share-based payment transactions. The Board of Directors keeps the right to change the classification of share-based programs, to cash-settle. Notes 6. Share-based payment plans Long-term incentive programs In 2024 were outstanding warrants under the 2019 exercised as the last exercise window was in 2024. 25,000 war- rants related to the 2020 program were exercised and settled in cash during Q4 2024, accordingly no new shares have been issued in connection with the exercise. 2021 warrants programs On September 10th, 2021, new warrants were granted to certain key employees, all with the right to subscribe for one ordinary share and are classified as equity-settled share-based payment transactions On October 1st, 2021, PSUs and share options were issued for a management incentive program related to Action Net- work, with the right to subscribe for one ordinary share and are classified as equity-settled share-based payment transactions Long-term incentive programs Exercise price Exercise price Vesting period Exercise period Program outstanding December, 2024 DKK EUR (rounded) 2019 0 2020-2023 2022-2024 64.78 8.69 2020 0 2021-2023 2023-2025 61.49 8.24 2020 163,999 2021-2023 2023-2025 106.35 14.26 2021 377,372 2022-2024 2024-2026 150.41 20.17 2021 US MIP Options 43,358 2021-2024 2024-2026 138.90 18.62 2022 US MIP Options 15,238 2022-2023 2023-2026 107.25 14.38 2022 Options 20,973 2022-2024 2025-2027 130.98 17.56 2022 PSU 62,810 2022-2024 2025-2027 2023 CXO Options 300,000 2023-2025 2026-2028 142.08 19.05 2023 Options 236,730 2023-2025 2026-2028 87.06 11.67 2023 PSU 120,650 2023-2025 2026-2028 2024 Options 426,870 2024-2026 2027-2029 173.87 23.31 2024 PSU 55,236 2024-2026 2027-2029 Key employees and members of executive management Following the AGM on April 22, 2020, 25,000 warrants were issued to the new board member, Todd Dunlap. 2022 LTI program On January 27, 2022 a new LTI program consisting of Performance Stock Units and stock options was announced. Un- der the program options and PSUs were granted to certain key employees. Whereas the options have the right to sub- scribe for one ordinary share, the PSUs have a performance-based element that can increase to two shares for one PSU – both are classified as equity-settled share-based payment transactions. Management Incentive Program: On March 1, 2022, a new tranche was established for the Management Incentive Program for Action Network. Options were granted with the right to subscribe for one ordinary share and, are classified as equity-settled share-based pay- ment transactions 2023 LTI Program On January 3, 2023, a new LTI program consisting of Performance Stock Units and stock options was announced. Un- der the program options and PSUs were granted to certain key employees. Whereas the options have the right to sub- scribe for one ordinary share, the PSUs have a performance-based element that can increase to two shares for one PSU – both are classified as equity-settled share-based payment transactions. Annual report Page 131 Notes 6. Share-based payment plans (continued) Warrant programs impact in the consolidated financial statements The total share-based compensation expense recognized for the full year 2024 is 1,244 tEUR (2023: 2.509 tEUR). The weighted average remaining contractual life of warrants to key employees outstanding as of December 31, 2024, and 2023 was 2.34 and 2.38 years respectively. The weighted exercise prices for outstanding instruments as of December 31, 2024 and 2023 were 18.79 EUR and 14.51 EUR. Total Per- Exercise price, formance Grant price, Board of Executive Total warrants / weighted average Stock weighted average Directors Management Key Employees options, numbers EUR Units EUR Total Units Share options outstanding at January 1, 2024 25,000 900,000 1,122,623 2,047,623 15 198,587 14 2,246,210 Granted 0 0 426,870 426,870 23 61,523 23 488,393 Forfeited/expired 0 0 23,457 23,457 9 21,414 17 44,871 Exercised 25,000 600,000 241,496 866,496 9 0 0 866,496 Transferred 0 0 0 0 0 0 0 0 Share options outstanding at December 31, 2024 0 300,000 1,284,540 1,584,540 19 238,696 17 1,823,236 Of this exercisable at the end of the period 0 0 599,967 599,967 18 0 n/a 599,967 Share options outstanding at January 1, 2023 25,000 600,000 1,293,949 1,918,949 13 441,154 18 2,360,103 Granted 0 300,000 240,932 540,932 12 137,819 12 678,751 Forfeited/expired 0 0 194,509 194,509 17 345,855 17 540,364 Exercised 0 0 217,749 217,749 9 34,531 14 252,280 Transferred 0 0 0 0 0 0 0 0 Share options outstanding at December 31, 2023 25,000 900,000 1,122,623 2,047,623 15 198,587 14 2,246,210 Of this exercisable at the end of the period 25,000 600,000 425,181 1,050,181 10 0 n/a 1,050,181 Annual report Page 132 Notes 6. Share-based payment plans (continued) 7. Fees paid to auditors appointed at the annual general meeting tEUR 2024 2023 Fee related to statutory audit 590 433 Fees for tax advisory services 0 0 Assurance engagements 287 72 Other assistance 30 76 Total audit fees 907 581 2024 2023 Dividend yield (%) 0% 0% Expected volatility (%) 48-50% 50% Risk free interest rate (%) 1.75% - 2.25% 1.75% Expected life of warrants (years) 4-5 4-5 Share price for exercises (EUR) 10.93 - 25.42 11.78 - 19.42 Exercise price (EUR) 11.67 - 23.31 11.78 - 19.42 Fair Value at grant date (EUR) 5.30 - 23.31 5.35 - 8.91 Non-audit services provided by EY amounted to 37 tEUR in 2024, relating to assurance and advisory within ESG assis- tance and other advisory services. Non-audit services provided by EY did not exceed 70% of the audit fees in accordance with EU audit legislation. Accounting policies Share-based payments Key employees (including the Executive Management of the Group) receive remuneration in the form of share- based payments, whereby they render services as consideration for equity instruments (equity-settled transac- tions). The cost is recognized in staff costs, together with a corresponding increase in equity (other capital reserves), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vest- ing date, reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit or loss for a period represents the movement in cumulative expense recognized as at the beginning and end of that period. No expense is recognized for awards that do not ultimately vest because non-market performance and/or ser- vice conditions have not been met. The dilutive effect of outstanding warrants is reflected as additional share dilution in the computation of diluted earnings per share. When warrants are exercised, the Company issues new shares. The proceeds received are credited to share capital for the par value of the shares and share premium for the remainder. Annual report Page 133 Notes 8. Special items Due to underperformance from acquisition of SOME content producer and podcast maker Playmaker HQ (not to be confused with Playmaker Capital), Better Collective and the founders and former owners of Playmaker HQ have agreed to renegotiate and settle the earn out. The initial acquisition price of Playmaker HQ was 54mUSD of which 15mUSD was upfront cash. The final price agreed is 25mUSD (23m EUR). Consequently, Better Collective have per- formed an impairment test based on the reassessment, identifying an impairment of 20mUSD (18m EUR) for the CGU North America,. The net impact on special items is negative 2.4mEUR, resulting from the mentioned goodwill impair- ment and the recognition of the remaining earn-out as income. On October 28th, it was announced that Management has decided to streamline the Group’s business to identify and leverage synergies. Costs related to this amounted to 6 mEUR recognized as Special Items related to restructuring. Special items consist of recurring and non-recurring items that management does not consider to be part of the group’s ordinary operating activities, i.e. acquisition costs, dual listing, adjustment of earn-out payments related to acquisitions, impairments and restructuring costs are presented in the Income statement in a separate line item la- belled ‘Special items’. The impact of special items is specified as follows: Note tEUR 2024 2023 Operating profit 61,447 80,891 Special Items related to: Special items related to dual listing 0 - 1,129 Special items related to M&A - 2,223 - 10,224 Variable payments regarding acquisitions - cost 0 0 Variable payments regarding acquisitions - income 19,114 9,924 Special items related to Restructuring - 9,193 - 519 Special items related to impairment - 18,584 0 Special items, total - 10,886 - 1,948 Operating profit (EBIT) before special items 72,334 82,839 Amortization and impairment 34,080 24,283 Operating profit before amortization and special items (EBITA before special items) 106,413 107,122 Depreciation 6,990 3,958 Operating profit before depreciation, amortization, and special items (EBITDA before special items) 113,403 111,080 Accounting policies Special items Significant expenses and income, which Better Collective considers not part of ordinary business operations, are presented in the Income statement in a separate line item labelled ‘Special items’ in order to distinguish these items from other income statement items and provide a more transparent and comparable view of Bet- ter Collective’s ongoing performance. Types of expenses and income included in special items include cost related to dual listing, M&A, adjustments to Earn-out payments, Impairment, cost related to restructuring and dual listing. Annual report Page 134 Notes 9. Finance income tEUR 2024 2023 Exchange gains 4,199 3,090 Interest Income 1,303 251 Other financial income 1,808 2,647 Total finance income 7,310 5,987 Accounting policies Financial income and expenses Financial income and expenses are recognized in the income statements at the amount that concerns the fi- nancial year. Net financials include interest income and expenses, interest expenses calculated according to IFRS16, foreign exchange adjustments, fees related to credit facilities, gains and losses on the disposal of se- curities, as well as allowances and surcharges under the advance-payment-of-tax scheme, etc. 10. Finance costs tEUR 2024 2023 Exchange losses 5,580 4,432 Interest expenses 14,536 12,146 Interest - right of use assets (Leasing) 811 425 Fair value adjustment 0 8,126 Other financial costs 4,965 3,739 Total finance costs 25,893 28,868 Annual report Page 135 Notes 11. Income tax Total tax for the year is specified as follows: tEUR 2024 2023 Tax for the period 8,850 18,175 Tax on other comprehensive income 1,589 0 Total 10,440 18,175 Income tax on profit for the year is specified as follows: tEUR 2024 2023 Deferred tax 1,282 3,641 Current tax 7,181 16,400 Adjustment from prior years 387 - 1,867 Total 8,850 18,175 Tax on the profit for the year can be explained as follows: tEUR 2024 2023 Specification for the period: Calculated 22% tax of the result before tax 9,430 12,762 Adjustment of the tax rates in foreign subsidiaries relative to the 22% - 3,731 1,955 Tax effect of: Special items 1,082 868 Special items - taxable items 0 - 233 Other non-taxable income - 670 - 410 Other non-deductible costs 1,719 3,461 Unrecognized tax losses carried forward 633 2,010 Tax deductible 0 - 371 Adjustment of tax relating to prior periods 387 -1,867 Total 8,850 18,175 Effective tax rate 20.6% 31.3% tEUR 2024 2023 Deferred tax liabilities Deferred tax liabilities January 1 77,434 69,002 Additions from business acquisitions 12,693 6,120 Adjustments of deferred tax in profit and loss 1,282 3,641 Exchange rate adjustment 2,691 - 1,329 Deferred tax liabilities December 31 94,100 77,434 Deferred tax is recognized in the balance sheet as: Deferred tax asset 4,573 7,236 Deferred tax liability 98,673 84,670 Deferred tax liabilities December 31 94,100 77,434 Deferred tax is related to: Intangible assets 116,193 90,130 Tangible assets - 143 322 Liabilities - 25 1,040 Other - 6,404 - 4,196 Tax loss carry forward - 15,521 - 9,862 Deferred tax liabilities December 31 94,100 77,434 Annual report Page 136 Notes 11. Income tax (continued) Accounting policies The tax expense for the year, which comprises current tax and changes in deferred tax, is recognized in the income statement as regards the portion that relates to the profit/loss for the year, and directly in equity as regards the portion that relates to entries directly in equity. Tax expense relating to amounts recognized in other comprehensive income is recognized in other comprehensive income. Tax is provided on the basis of the tax rules and tax rates applicable in the individual countries where Better Collective has a tax presence. Current and deferred tax Current tax liabilities and current tax receivables are recognized in the balance sheet as tax computed on the year’s taxable income adjusted for tax on the previous year’s taxable income and tax paid on account. Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount and the tax value of assets and liabilities. Deferred tax liabilities as well as deferred tax assets are recognized. However, deferred tax is not recognized on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Deferred tax assets, including the tax value of tax loss carry forwards, are recognized under other non-current assets at the expected value of their utilization; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity and jurisdiction. Deferred tax is measured according to the tax rules and at the tax rates applicable in the respective countries at the balance sheet date when the deferred tax is expected to crystallize as current tax. Joint taxation of the parent Company and Danish subsidiaries The Parent Company is subject to the Danish rules on compulsory joint taxation of the Group’s Danish subsidiaries. Subsidiaries are included in the joint taxation arrangement from the date when they are included in the consolidated financial statements and up to the date when they are excluded from the consolidation. The Parent Company acts as administration company for the joint taxation arrangement and consequently settles all corporate income tax payments with the tax authorities. On payment of joint taxation contributions, the Danish corporation tax charge is allocated between the jointly taxed entities in proportion to their taxable income. Entities with tax losses receive joint taxation contributions from entities that have been able to use the tax losses to reduce their own taxable income. Joint taxation contributions payable and receivable are recognized in the balance sheet as corporation tax receivable or corporation tax payable. Annual report Page 137 Notes 12. Intangible assets Accounts Domains and other and intangible tEUR Goodwill websites assets Total Cost As of January 1, 2024 255,074 466,615 140,065 861,754 Additions 0 0 31,082 31,082 Acquisitions through business combinations 109,906 76,523 41,510 227,939 Transfer 0 0 - 295 - 295 Disposals 0 0 - 4,655 - 4,655 Currency Translation 15,158 10,748 3,359 29,265 At December 31, 2024 380,138 553,886 211,066 1,145,091 Amortization and impairment As of January 1, 2024 0 0 60,325 60,325 Amortization for the period 0 0 33,966 33,966 Impairment for the period 18,584 0 0 18,584 Amortization on disposed assets 0 0 - 2,151 - 2,151 Currency translation 566 0 1,298 1,864 At December 31, 2024 19,150 0 93,438 112,588 Net book value at December 31, 2024 360,988 553,886 117,628 1,032,501 Accounts and other intangible assets consist of accounts (65,525 tEUR), Media Partnerships (49,461 tEUR), Development projects (2,088 tEUR) and software and others (554 tEUR). Disclosed under special items Accounts Domains and other and intangible tEUR Goodwill websites assets Total Cost As of January 1, 2023 183,942 460,513 63,705 708,159 Additions 0 3,412 53,914 57,326 Acquisitions through business combinations 75,335 10,842 29,579 115,756 Transfer 0 0 0 0 Disposals 0 0 - 6,531 - 6,531 Currency Translation - 4,203 - 8,151 - 602 - 12,956 At December 31, 2023 255,074 466,615 140,065 861,754 Amortization and impairment As of January 1, 2023 0 0 36,688 36,688 Amortization for the period 0 0 24,283 24,283 Impairment for the period 0 0 0 0 Amortization on disposed assets 0 0 0 0 Currency translation 0 0 - 646 - 646 At December 31, 2023 0 0 60,325 60,325 Net book value at December 31, 2023 255,074 466,615 79,740 801,429 Accounts and other intangible assets consist of accounts (30,474 tEUR), Media Partnerships (48,769 tEUR) and software and others (497 tEUR). Annual report Page 138 Notes 12. Intangible assets (continued) Accounting policies Goodwill and intangible assets Goodwill Goodwill is initially recognized at cost. Subsequently, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortized and impairment losses on goodwill are not reversed. The carrying amount of goodwill is allocated to the Group’s cash-generating units at the date of acquisition. Impairment is performed once a year as of December 31 or more frequently if events or changes in circumstances indicate that there is an impairment. An impairment loss is recognized if the recoverable amount of the cash-generating unit to which goodwill has been allocated is less than the carrying amount of the cash-generating unit. Identification of cash-generating units is based on the management structure and internal financial controls. Intangible assets Separately acquired intangible assets are measured on initial recognition at cost including directly attributable costs. Intangible assets acquired in a business combination or asset acquisitions are measured at fair value at the acquisition date. Expenditures relating to internally generated intangible assets are recognized in profit or loss when incurred. Intangible assets with a finite useful life are amortized over their useful life and reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization method for an intangible asset are reviewed at least at each year end. Agreements related to media partnerships are measured at fair value of the payments related to the agreement at the starting date. The value is amortized over the lifetime of the agreement Intangible assets with indefinite useful lives (domains and websites) are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. Development projects consist of costs such as salaries and other costs that are directly attributable to the development project, recognised from the time at which the development project first qualifies for recognition as an asset. Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit or loss when the asset is derecognized. Costs related to maintenance of intangible assets, are not capitalized on the balance sheet but recognized in profit and loss in the financial year they are incurred. Amortization The item comprises amortization of intangible asset, as well as any impairment losses recognized for these assets during the period. The basis of amortization, which is calculated as cost less any residual value, is amortized on a straight-line basis over the expected useful life. The basis of amortization, which is calculated as cost less any residual value, is amortized on a straight-line basis over the expected useful life or contractual terms. The expected useful lives of long-lived assets are as follows: Goodwill Indefinite Domains and websites Indefinite Accounts 3-5 years Media Partnerships 1-10 years Software 3 years Development projects 3 years Annual report Page 139 Recoverable amount When testing for impairment, the Group estimates a recoverable amount for goodwill and for domains and websites. The recoverable amount is the higher of the asset or cash-generating unit’s fair value less costs of disposal and its value in use. The recoverable amount is normally determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. The recoverable amount of domains and websites has been determined on the level of the cash-generating units, as explained above. Notes 13. Goodwill and intangible assets with indefinite life The Group added intangible assets in 2024 from business combinations of AceOdds and Playmaker Capital. Goodwill and domains and websites arising on business combinations are not subject to amortization, but are reviewed annually for impairment, or more frequently if there are any indicators of impairment that are noted during the year. The Group’s impairment test for goodwill and domains and websites with indefinite life are based on a value-in-use basis. Cash-generating units Goodwill from a business combination is allocated to cash-generating units in which synergies are expected to be gen- erated from the acquisition. A cash-generating unit represents the smallest identifiable group of assets that together have cash inflows that are largely independent of the cash inflows from other assets. In 2024 Better Collective continues to have four cash generating units with the business acquisitions of Aceodds in- cluded in Publishing, and the acquisition of Playmaker Capital Playmaker allocated between existing cash generating units. Goodwill in Playmaker Capital is allocated to the CGU’s; Paid Media (9%), Rest of BC (57%) and North America (35%) based on the proportional share of the fair value of acquired intangible assets identified in the Purchase Price Allocation (PPA). This allocation reflects the economic benefits each CGU is expected to generate. The allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. Performance and cash flows from domains and websites owned by the individual cash generating units are allocated for the basis for impairment. Impairment test For all CGUs North America, HLTV, Paid Media and the rest of Better Collective, the Group has performed an impairment test on goodwill and domains and websites as of 31 December, 2024, on a value-in-use basis. Key estimates in the im- pairment test are growth in revenue, gross profits, discount rate and growth expectations in the terminal period. These are based on current and future development in the four CGUs and on historical data, including expected long-term market growths. Data is based on both internal and external data sources. The Group uses a 10-year forecast in the Discounted Cash Flow (DCF) model, including a 3-year budget and a 7-year projection leading to steady-state. This period is chosen due to high expected growth in the initial years, with growth gradually reducing to a steady rate by the terminal period. A shorter forecast would result in an inflated terminal value. Therefore, a 10-year period allows for a more accurate present value of the groups assets for impairment assessment. Management has based the value-in-use by estimating the present value of future cash flows from a three-year forecast for 2025-2027. The forecast indicates an average annual revenue growth up to 11% in 2028 and a normalized average margin of 33%. Beyond the forecast, EBITDA growth, cash conversion and tax-rates have been projected with a time horizon of 7 years until 2034. From 2028 onward, the average gross profit growth rate is estimated to decline. In 2028, the average growth rate is projected to be 9% and the decline continues, reaching 3% by 2034, stabilizing thereafter at a theoretical steady state level in the terminal period. Based on expected 2034 EBITDA and cash flow, management has applied a terminal value growth rate of 2.5%. The cash flows assume a discount factor of 9.3% for HLTV, Paid Media, Rest of BC and 11 % for North America based on the Group’s weighted average cost of capital (WACC) in all years 2025-2034, with individual tax rates per country (22-25%). The applied pre-tax discount rate was 12% in 2023 for all CGU’s. Carrying amount of goodwill and Domains and Websites for the CGUs 2024 tEUR North America HLTV Paid Media Rest of BC Total Goodwill 147,852 17,795 87,662 107,678 360,988 Domains and Websites 254,780 20,610 0 278,496 553,886 2023 tEUR North America HLTV Paid Media Rest of BC Total Goodwill 126,399 17,812 73,771 37,092 255,074 Domains and Websites 213,764 20,551 0 232,300 466,615 Annual report Page 140 Notes 13. Goodwill and intangible assets with indefinite life (continued) As at December 31, 2024 and December 31, 2023 the Board of Directors have evaluated goodwill, domains and websites for impairment. The results of the impairment tests for goodwill and domains and websites showed that the recoverable amount exceeded the carrying value and that there was no impairment loss to be recognized, except for the impairment regarding Playmaker HQ, disclosed as special items. The Board of Directors have approved the inputs to the impairment testing and are satisfied that the judgements made are appropriate Sensitivity test Sensitivity tests have been performed to determine the lowest forecast and terminal period growth rates and/or high- est discount rates that can occur in the CGUs with indefinite useful life. The sensitivity shows that an increase of 1% in WACC will not result in any impairment loss. Annual report Page 141 13. Goodwill and intangible assets with indefinite life (continued) Accounting policies Business combinations and goodwill Business combinations are accounted for using the acquisition method. The acquisition date is the date when Better Collective A/S effectively obtains control over the acquired business. Any costs directly attributable to the acquisition are expensed as incurred. If a put and call option exist, the put and call option is taken into consideration when assessing the ownership of the business. The acquired businesses’ identifiable assets, liabilities and contingent liabilities are measured at fair value at the acquisition date. Identifiable intangible assets are recognized if they are separable or arise from a contractual right. Deferred tax related to the revaluations is recognized. The consideration paid for a business consists of the fair value of the agreed consideration in the form of the assets transferred, equity instruments issued, and liabilities assumed at the date of acquisition. If part of the consideration is contingent on future events, such consideration is recognized at fair value. Subsequent changes in the fair value of contingent consideration are recognized in the income statement as special items. A positive excess (goodwill) of the consideration transferred (including any previously held equity interests and any non-controlling interests in the acquired business) over the fair value of the identifiable net assets acquired is recorded as goodwill. If uncertainties regarding identification or measurement of acquired assets, liabilities or contingent liabilities or determination of the consideration transferred exist at the acquisition date, initial recognition will be based on provisional values. Any adjustments in the provisional values, including goodwill, are adjusted retrospectively, until 12 months after the acquisition date, and comparative figures are restated. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, from the acquisition date, goodwill acquired in a business combination is allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquired business combination are assigned to those units. Where goodwill has been allocated to a cash-generating unit (CGU) and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed in these circumstances is measured based on the relative fair values of the disposed operation and the portion of the cash generating unit retained. Impairment The carrying amounts of goodwill, intangible assets, plant and equipment and investments in subsidiaries is assessed for impairment on an annual basis. Impairment tests are conducted on assets or groups of assets when there is evidence of impairment. Furthermore, goodwill and intangible assets with indefinite useful lives are tested on an annual basis as at December 31. The carrying amount of impaired assets is reduced to the higher of the net selling price and the value in use (recoverable amount). The recoverable amount is the higher of the net selling price of an asset and its value in use. Reference is made to the section “Impairment test” for actual assumptions. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the group of assets and the expected net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Impairment losses are recognized in the income statement under depreciation and amortization. Previously recognized impairment losses are reversed when the reason for recognition no longer exists. Impairment losses on goodwill are not reversed. Annual report Page 142 Notes 14. Tangible assets Fixtures and fit- tings, other plant tEUR Right of use assets and equipment Total Cost At January 1, 2024 19,537 9,939 29,476 Additions 3,508 2,772 6,280 Acquisitions through business combinations 0 0 0 Transfer 0 295 295 Disposals - 1,240 - 428 - 1,668 Currency Translation 2,435 599 3,034 At December 31, 2024 24,239 13,177 37,416 Depreciation and impairment At January 1, 2024 3,962 3,933 7,894 Depreciation for the period 4,680 2,310 6,990 Depreciation on disposed assets - 782 - 321 - 1,103 Currency translation 450 551 1,001 At December 31, 2024 8,310 6,473 14,782 Net book value at December 31, 2024 15,929 6,704 22,633 Fixtures and fit- tings, other plant tEUR Right of use assets and equipment Total Cost As of January 1, 2023 9,777 4,995 14,772 Additions 12,368 5,042 17,410 Acquisitions through business combinations 0 0 0 Disposals - 2,536 - 70 - 2,606 Currency Translation - 72 - 29 - 100 At December 31, 2023 19,537 9,939 29,476 Depreciation and impairment As of January 1, 2023 3,508 2,421 5,929 Depreciation for the period 2,671 1,287 3,958 Depreciation on disposed assets - 2,200 220 - 1,980 Currency translation - 17 5 - 12 At December 31, 2023 3,962 3,933 7,894 Net book value at December 31, 2023 15,575 6,006 21,582 Annual report Page 143 Notes Notes 14. Tangible assets (continued) 15. Trade and other receivables tEUR 2024 2023 Trade receivables 35,522 42,086 Accrued revenue 21,036 4,723 Other receivables 7,205 2,144 Total receivables 63,763 48,954 Accounting policies Tangible assets Tangible assets are measured at cost less accumulated depreciation and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the asset is ready for use. Gains and losses from the disposal of tangible are recognized in the income statement as depreciation. Gains or losses are calculated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Accounting policies Receivables Receivables are measured at amortized cost, which usually corresponds to nominal value. Write-downs on trade receivables are based on the simplified expected credit loss model. Credit loss allowances on individual receivables are provided for when objective indications of credit losses occur such as customer bankruptcy and uncertainty about the customers’ ability and/or willingness to pay, etc. In addition to this, al- lowances for expected credit losses are made on the remaining trade receivables based on a simplified ap- proach. Reference is made to note 19 of the consolidated financial statements regarding credit risk. Depreciation The item comprises depreciation of tangible assets, and right of use assets, as well as any impairment losses recognized for these assets during the period. The basis of depreciation, which is calculated as cost less any residual value, is amortized on a straight-line ba- sis over the expected useful life. The expected useful lives of long-lived assets are as follows: Right of use assets and leasehold improvements Up to 10 years Fixtures and fittings, other plant and equipment 3-5 years Where individual components of an item of tangible assets have different useful lives, they are accounted for as separate items, which are depreciated separately. The basis of depreciation is calculated considering the residual value at the end of the expected useful life and less any impairment. The depreciation period and re- sidual value are determined at the time of acquisition and are reassessed every year. Where the residual value exceeds the carrying amount of the asset, no further depreciation charges are recognized. Prepayments Prepayments recognized under “Assets” comprise prepaid expenses regarding subsequent financial reporting years. Cash Cash consist of cash and cash equivalents in financial institutions. Annual report Page 144 Notes 16. Issued capital and reserves Accounting policies Equity Treasury shares Treasury shares are own equity instruments that are re-acquired. They are recognized at cost as a deduction from equity in the reserve for treasury shares. The difference between par value and the acquisition price and consideration (net of directly attributable transaction costs) and dividends on treasury shares are recognized directly in equity in retained earnings. tEUR 2024 2023 2022 2021 2020 Share capital: Opening balance 554 551 546 469 464 Capital increase 77 2 5 77 5 Total 631 554 551 546 469 The share capital consists of 63,076,627 shares of nominal EUR 0.01 each. Share premium Share premium can be used for dividend. Share buy-back-2024 Throughout 2024 the company purchased 1,220,188 Better Collective A/S shares at an average price of 16.83 EUR. 102,431 treasury shares were used as final payment of contingent liabilities related to the 2024 acquisition of AdeOdds. 1,387,580 treasury shares purchased from previous year were used as final payment of contingent liabilities related to the 2024 acquisition of Playmaker Capital. By the end of 2024 Better Collective A/S had 1,117,757 treasury shares. Share buy-back-2023 Throughout 2023 the company purchased 784,952 Better Collective A/S shares at an average price of 17.1 EUR. After the completion of the 2023 share buy-back programs Better Collective A/S had 1,387,580 treasury shares. Currency translation reserve Foreign exchange differences arising on translation of Group entities and parent company to the EUR presen- tation currency are recognized in other comprehensive income (OCI) in a separate currency translation re- serve under equity. On disposal of a reporting entity, the component of other comprehensive income relating to that reporting entity is reclassified to profit or loss. Hedging reserves Changes in the effective portion of the fair value of derivative financial instruments that are designated and qualify as a cash flow hedge of items that will impact the income statement are recognised in the hedging reserve within equity. Proposed dividends Dividends proposed for the year are recognized as a liability when the distribution is authorized by the share- holders at the annual general meeting (declaration date). Dividends expected to be distributed for the finan- cial year will be presented as a separate line item under “Equity”. Proposed dividends on ordinary shares are subject to approval at the Annual General Meeting. Annual report Page 145 Notes 17. Trade and other payables 18. Leasing Right-of-use assets tEUR Buildings Cars Total Balance at January 1, 2024 15,575 0 15,575 Additions 3,508 0 3,508 Disposals - 1,240 0 - 1,240 Modifications 0 0 0 Exchange rate adjustment 1,985 0 1,985 Depreciation - 4,680 0 - 4,680 Depreciation on disposed assets 782 0 782 Balance at December 31, 2024 15,929 0 15,929 Balance at January 1, 2023 6,236 33 6,269 Additions 12,368 0 12,368 Disposals - 2,485 - 50 - 2,535 Modifications 73 0 73 Exchange rate adjustment - 135 0 - 135 Depreciation - 2,660 - 3 - 2,663 Depreciation on disposed assets 2,180 20 2,200 Balance at December 31, 2023 15,575 0 15,577 tEUR 2024 2023 Trade Payables 10,173 10,936 Other payables 16,721 16,902 Total payables 26,894 27,838 Accounting policies Prepayments consist of payments received from customers relating to income in subsequent periods. Prepay- ments are mainly classified as current, as the related revenue is recognized within one year. Trade payables are obligations to pay for goods or services acquired in the normal course of business. Trade payables are initially reported at fair value and, subsequently, at amortized cost using the effective interest method. Other payables comprise amounts owed to staff, including wages, salaries and holiday pay; amounts owed to the public authorities, including taxes payable, VAT, excise duties, interest expenses etc. Other financial liabilities comprise amounts payable to sellers as a result of business combinations and asset acquisitions. Annual report Page 146 Notes Accounting policies The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Group as a lessee The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognizes lease liabilities to make lease payments and right-of-use assets represent the right to use the underlying assets. Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the under- lying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities (due to indexation of lease payments or extension of leases). The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term. Lease liabilities At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable. In calculating the present value of lease payments, the Group uses its incremental borrowing rate of 4%, at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to extend the term of lease. Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. 18. Leasing (continued) Lease liabilities tEUR 2024 2023 Maturity analysis - contractual undiscounted cash flows Less than one year 4,376 1,714 One to five years 13,830 15,262 More than five years 935 702 Total undiscounted cash flows 19,141 17,678 Total lease liabilities 16,936 16,028 Current 4,376 2,702 Non-current 12,560 13,326 The total cash outflow for leases during 2024 was 4,384 tEUR (2023: 2,814 tEUR). Amounts recognized in the consolidated income statement tEUR 2024 2023 Interest on lease liabilities 811 425 Expenses relating to short- term lease 98 457 Expenses relating to lease of low value assets 0 82 Annual report Page 147 Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to interest rate risk arises mainly from club financing with floating interest signed in October 2022 and in august 2023 extended by 3 years to October 2026. With 260.8 mEUR drawn on the facility as of December 2024. Better Collective has entered two hedging contracts regarding the interest rate risk for the period October 2024 to October 2026, nominal amount of 550 mDKK each securing the interest rate at 2.32% and 2.34% respectively. Management expects to reduce the credit facility in the short to medium term, as the Group is generating positive cash flows, and therefore exposure to interest rate risk is considered minimal. The interest rate risk arising from deposits held are short-term and non-material. The Group regularly monitors its interest rate risk and considers it to be insignificant, therefore an interest rate sensitivity analysis is not deemed necessary. Notes 19. Financial risk management objectives and policies The Group’s activities expose it to a variety of financial risks: market risk (including foreign currency exchange risk and interest rate risk), credit risk, and liquidity risk. The Group has established principles for overall risk management, which seek to minimize potential adverse effects on the Group’s performance. Market Risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. For the Group, market risk comprises foreign currency risk and interest rate risk. Foreign currency risk Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s international operating activities. The Group’s revenues are mainly denominated in DKK, EUR, USD, BRL, CAD and GBP, with limited revenues in SEK and PLN. The revenue in individual currencies is determined by the underlying betting currency at the sportsbook level as well as the exchange rates used by the sportsbook when calculating the revenue share. The currency fluctuations impact these processes and is the inherent risk. Across the Group, expenses have a general pattern which is in line with the revenue in the individual currencies. The expenses mainly origin in DKK, EUR, GBP, and USD, with limited spending in SEK, RON, PLN and BRL. The DKK exchange rate is fixed to the EUR. For GBP and USD, the expenses are linked to and follow the revenue in the entities operating in UK and US, respectively. Credit risk The Group’s credit risks mainly relate to receivables. The risks are monitored on an ongoing basis and customers are individually assessed for credit limits and exposure. Based on this the exposure is in general considered insignificant. As per December 31, 2024, the Group’s impairment for expected loss is included in the trade receivables (ref note 15). Covenants The Group facility with 260.8 mEUR drawn at December 2024 is subject to a covenant requiring that debt leverage, defined as net debt divided by 12 months rolling adjusted EBITDA before special items, must not exceed 3.25x. The covenant is tested and reported end of each quarter until the maturity of the facility. The Group has no indication of any difficulties in complying with this covenant. The major currency exposure in Better Collective arises from the conversion of the USD and GBP denominated entities to the reporting currency, as well as the long-term loan provided from the parent company to Better Collective US Inc to finance the US acquisitions. The 2024 impact of the fluctuating USD on the USD loan in the parent company was a positive impact on 17.3 mEUR compared to a negative impact on -9,4 mEUR in 2023. The exchange rate adjustments and corresponding tax impact on these loans are included in Other Comprehensive Income for the group. The Board of Directors has in general decided not to hedge currency exchange risk given the underlying inherent risk and the capital structure. The historic exposure to currency fluctuations has not had a material impact on the Group’s financial condition or results of operations. Management deems that a sensitivity analysis showing how profit or pre-tax equity would have been impacted by changes in these foreign exchange rates is not deemed necessary. Annual report Page 148 Notes 19. Financial risk management objectives and policies (continued) Expected credit loss on receivables from trade receivables as of December 31, 2024: Expected Gross Expected Net tEUR Loss Rate Receivable loss receivable 2024 Not Due 0.0% 21,934 0 21,934 Less than 30 days 0.3% 6,856 18 6,839 Between 31 and 60 days 0.5% 3,219 17 3,202 Between 61 and 90 days 2.0% 918 19 899 More than 91 days 24.1% 3,490 842 2,648 Total 2.5% 36,417 895 35,522 Limited losses were recognized during 2024 and the weighted credit loss has slightly increased compared to 2023. Expected credit loss on receivables from trade receivables as of December 31, 2023: Expected Gross Expected Net tEUR Loss Rate Receivable loss receivable 2023 Not Due 0.5% 28,997 134 28,863 Less than 30 days 0.2% 8,786 22 8,764 Between 31 and 60 days 0.7% 2,936 20 2,916 Between 61 and 90 days 2.5% 1,704 43 1,661 More than 91 days 18.4% 5,644 1,039 4,605 Total 2.6% 48,067 1,258 46,809 Liquidity risk The Group is exposed to liquidity risk in relation to meeting future obligations associated with its financial liabilities, which mainly include trade payables, other payables, earn-outs and deferred M&A payments, and the credit facility. The group ensures adequate liquidity through the management of cash flow forecasts and close monitoring of cash inflows and outflows. Annual report Page 149 Notes 19. Financial risk management objectives and policies (cont’d) The following table summarizes the maturities of the Group’s financial obligations. Carrying tEUR amount Fair Value Total < 1 year 2 – 5 years > 5 years 2024 Non-derivative financial instruments: Financial liabilities measured at fair value Earn-out consideration 8,617 8,617 8,617 8,617 0 0 Financial liabilities measured at amortized costs Lease liabilities 16,936 16,936 19,141 4,376 13,830 935 Trade and other payables 26,894 26,894 26,894 26,894 0 0 Deferred payment on acquisitions 1,454 1,454 1,454 533 921 0 Debt to credit institutions 259,691 259,691 289,123 10,388 278,735 0 Other financial liabilities 58,885 58,885 58,885 17,775 41,109 0 Derivative financial instruments: Financial liabilities measured at fair value Derivates used as hedging instrument 662 662 662 0 662 0 Total financial instruments 373,139 373,139 404,776 68,583 335,257 935 Assets: Trade and other receivables 63,763 63,763 63,763 63,763 0 0 Other current financial assets 0 0 0 0 0 0 Cash 37,674 37,674 37,674 37,674 0 0 Total financial assets 101,437 101,437 101,437 101,437 0 0 Carrying tEUR amount Fair Value Total < 1 year 2 – 5 years > 5 years 2023 Non-derivative financial instruments: Financial liabilities measured at fair value Earn-out consideration 60,491 60,491 60,491 35,985 24,506 0 Other financial liabilities measured at fair value 51,367 51,367 51,367 24,382 26,985 0 Financial liabilities measured at amortized costs Lease liabilities 16,028 16,028 17,678 1,714 15,262 702 Trade and other payables 27,838 27,838 27,838 27,838 0 0 Deferred payment on acquisitions 2,524 2,524 2,524 1,571 952 0 Debt to credit institutions 248,657 248,657 287,829 13,825 274,003 0 Derivative financial instruments: Financial liabilities measured at fair value Derivates used as hedging instrument - 483 - 483 - 483 - 483 0 0 Total financial instruments 406,421 406,421 447,242 104,832 341,708 702 Assets: Trade and other receivables 48,954 48,954 48,954 48,954 0 0 Other current financial assets 6,804 6,804 6,804 6,804 0 0 Cash 43,552 43,552 43,552 43,552 0 0 Total financial assets 99,310 99,310 99,310 99,310 0 0 Annual report Page 150 Net debt includes current and non-current debt to financial institutions and other financial liabilities, less cash and cash equivalents. Notes 19. Financial risk management objectives and policies (cont’d) Change in liabilities arising from financing activity Non cash Non cash Cash flows flow Cash flows flow tEUR 2022 Net changes 2023 Net changes 2024 Non-current financing liabilities 201,708 44,004 2,945 248,657 10,858 177 259,691 Leasing and other non-current liabilities 4,962 - 483 8,847 13,326 - 434 - 332 12,560 Current financing liabilities 0 0 0 0 0 0 0 Leasing current liabilities 1,653 - 2,814 3,863 2,702 - 4,384 6,058 4,376 Total liabilities from financing activities 208,322 40,708 15,655 264,685 6,040 5,903 276,627 Fair value of Earn-out consideration, contingent consideration, and other financial liabilities All liabilities measured at fair value, or in respect of which the fair value is disclosed, are categorized into levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement, see be- low: Level 1: Quoted priced in an active market for identical assets or liabilities Level 2: Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly Level 3: Inputs that are not based on observable market data (valuation techniques that use inputs that are not based on observable market data) The fair value of Earn-Out consideration, and other financial liabilities is measured based on weighted probabilities of assessed possible payments discounted to present value (level 3). Derivates are measured at fair value based on gener- ally accepted valuation methods using available observable market data (level 2). Fair value of short term liabilities and financial assets In all material aspects the financial liabilities are current/short termed. Non-current loans and overdraft facility are sub- ject to a variable interest rate. Thus, the fair value of the liabilities is considered equal to the booked value. Listed shares included under other current financial assets are measured at fair value (market price) at the balance sheet date. (Fair Value Level 1). Accounting policies Cash Cash comprise cash at bank and on hand. Capital Management For the purpose of the Group’s capital management, capital includes issued capital, share premium, and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Group’s capital management is to maximize shareholder value and to maintain an optimal capital structure. The Group manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, issue new shares or return capital to shareholders. Liabilities The Group’s liabilities include prepayments from customers, trade payables and overdraft facility. Liabilities are classified as current if they fall due for payment within one year or earlier. If this condition is not met, they are classified as non-current liabilities. Earn-out amounts are measured at fair value through profit and loss. Debt to credit institutions are at initial recognition measured at fair value less transaction cost and subse- quently measured at amortized cost. Other financial liabilities comprise amounts payable to sellers as a result of business combinations and asset acquisitions as well as media partnerships. Credit facilities As per December 31, 2024, Better Collective has drawn 261 mEUR (2023: 249 mEUR) out of the total committed club facility of 319 mEUR established with Nordea, Nykredit, and Citibank. On July 5, 2024 Better Collective reestablished its 3 year financing agreement with Nordea, Nykredit Bank and Citibank with a total committed facility of 319 mEUR and a 100mEUR higher accordion option with expiry at the end of October 2026. Annual report Page 151 21. Business combinations (continued) Notes 20. Change in working capital Acquired net assets at the time of acquisition tEUR Domains and websites 76,523 Customer Relations 7,446 Technology 2,137 Other assets 18,034 Deferred tax liabilities - 18,376 Other liabilities - 68,314 Identified net assets 17,450 Goodwill 93,312 Total consideration 110,762 tEUR 2024 2023 Change in receivables - 5,016 4,224 Prepaid expenses - 1,692 - 325 Prepayment from customers 5,566 - 3,762 Change in trades payable, other debt - 12,497 5,585 Change in working capital, total - 13,638 5,722 A goodwill of 93,312 tEUR emerged from the acquisition of Playmaker Capital as an effect of the difference between the transferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expecta- tions given the strong platform and significant synergistic opportunities. The goodwill is not tax deductible. Transaction costs related to the acquisition of Playmaker Capital amounts to 6,420 tEUR. Transaction costs are ac- counted for in the income statements under “special items” since the announcement. The acquisition was completed on February 6, 2024. If the transaction had been completed on January 1, 2024 the group’s revenue would have amounted to 375 mEUR and result after tax would have amounted to 37 mEUR. The purchase price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. 21. Business combinations Acquisition of Playmaker Capital On November 6, 2023 Better Collective announced the acquisition of Playmaker Capital for a total price consideration of 176 mEUR. The consideration comprises 35 % cash and a cap of 65 % shares in Better Collective A/S. The considera- tion is financed partly by own cash and utilization of available facilities of 72 mEUR as well as a share consideration. The share consideration payable to Playmaker Capital shareholders, a total of 3,143,009 Better Collective shares, has been provided by Better Collective delivering 1,387,580 existing shares held as treasury shares and by issuing 1,755,429 new shares. Playmaker Capital is a leading digital sports media group that owns and operates several strong sports media brands across the Americas. The acquisition has been closed on 6 February 2024, and Playmaker Capital are consolidated into Better Collective Group from the closing date. Acquisition of AceOdds On May 16, 2024 Better Collective announced the acquisition of AceOdds for a total price consideration of 43 mEUR. The consideration consist of 38 mEUR in cash and 2mEUR as shares in Better Collective A/S. AceOdds is a UK sports betting media brand with its roots in the UK, and this acquisition is poised to enhance Better Collective's presence across the UK, significantly. The acquisition is a strategic move for Better Collective with significant synergistic oppor- tunities. The acquisition was closed on 16 May 2024, and AceOdds are consolidated into Better Collective Group from the closing date. tEUR Purchase amount 110,762 Cash and cash equivalents 4,840 Shares 73,314 Cash outflow 32,608 The transferred consideration was in cash and shares in Better Collective A/S. Annual report Page 152 21. Business combinations (continued) Acquisitions 2023 Acquisition of Skycon Limited On April 14, 2023 Better Collective completed the acquisition of Skycon Limited (Skycon) for a total consideration up to 51 mEUR (45 mGBP) with an initial consideration of 28.3 mEUR (25 mGBP) on a cash and debt-free basis. Skycon is a global display advertising company and perfectly complements Better Collective’s Paid Media division. The acquisition is a strategic move for Better Collective with significant synergistic opportunities. tEUR Purchase amount 42,969 Cash and cash equivalents 2,919 Shares 2,340 Cash outflow 37,710 The transferred consideration was in cash and shares in Better Collective A/S. Acquired net assets at the time of acquisition tEUR Accounts 31,927 Other receivables and assets 680 Cash 2,919 Corporate Tax - 1,420 Deferred Tax Liability - 7,982 Identified net assets 26,124 Goodwill 16,845 Total consideration 42,969 tEUR Purchase amount 56,029 Cash and cash equivalents 3,647 Earn out 22,614 Cash outflow 29,767 The transferred consideration was in cash and a earn out payable in cash. Acquired net assets at the time of acquisition tEUR Accounts and other intangible assets 24,227 Accrued Income 2,372 Trade receivables 45 Cash 3,647 Deferred Tax Liability - 6,502 Identified net assets 23,790 Goodwill 32,239 Total consideration 56,029 A goodwill of 16,845 tEUR emerged from the acquisition of AceOdds as an effect of the difference between the trans- ferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expectations given the strong platform and significant synergistic opportunities. The goodwill is not tax deductible. Transaction costs related to the acquisition of AceOdds amounts to 283 tEUR. Transaction costs are accounted for in the income statements under “special items” since the announcement. The acquisition was completed on May 16, 2024. If the transaction had been completed on January 1, 2024 the group’s revenue would have amounted to 376 mEUR and result after tax would have amounted to 38 mEUR. The purchase price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. A goodwill of 32,239 tEUR emerged from the acquisition of Skycon as an effect of the difference between the transferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expectations given the strong platform and significant synergistic opportunities. The earn outs are based on certain financial performance targets in the 12 months post-closing period. The goodwill is not tax deductible. Transaction costs related to the acquisition of Skycon amounts to 381 tEUR in 2023. Transaction costs are accounted for in the income statements under “special items”. The acquisition was completed on April 14, 2023. If the transaction had Annual report Page 153 Transaction costs related to the acquisition of Playmaker HQ amounts to 347 tEUR in 2023. Transaction costs are ac- counted for in the income statements under “special items”. The acquisition was completed on July 3, 2023. If the trans- action had been completed on January 1, 2023 the group’s revenue would have amounted to 330 mEUR and result after tax would have amounted to 39 mEUR. 21. Business combinations (continued) been completed on January 1, 2023 the group’s revenue would have amounted to 332 mEUR and result after tax would have amounted to 43 mEUR. Other acquisitions 2023 On August 15, 2023 Better Collective announced the acquisition of four brands SvenskaFans.com, Hockeysverige.se, Fotbolldirekt.se and Innebandymagazinet.se by acquiring Digital Sportmedia i Norden AB from Everysport Group to further expand its position within the Swedish sports media ecosystem for a total consideration of 3.7 mEUR on a cash and debt-free basis. On September 4, 2023 Better Collective announced the acquisition of the platform Torcedores.com, by acquiring Goalmedia Technologia E Marketing Digital S.A. The acquisition strengthens Better Collectives position in the South American region through the acquisition of leading national Brazilian sports media platform Torcedores.com. Adding the first Brazilian sports media brand to the group, Better Collective will leverage its best-in-class digital expertise in one of the world’s fastest growing markets. Acquisition of Playmaker HQ On July 3, after the end of Q2, 2023 Better Collective US, Inc. completed the acquisition of Playmaker HQ for up to 51 mEUR (54 mUSD) with an initial consideration of 14.1 mEUR (15 mUSD) on a cash and debt-free basis. Playmaker HQ is a leading sports and entertainment media platform headquartered in South Florida, US. The sports media group special- izes in providing original entertainment and sports content with exclusive athlete collaborations and creator talent mainly targeting the US market. tEUR Purchase amount 38,864 Cash and cash equivalents 0 Earn out 23,968 Cash outflow 14,896 The transferred consideration was in cash and a earn out payable in cash. Acquired net assets at the time of acquisition tEUR Accounts and other intangible assets 5,352 Accounts receivable 320 Trade payables - 94 Total net assets 5,578 Goodwill 33,286 Total consideration 38,864 Acquired net assets at the time of acquisition tEUR Domains 6,650 Contingent liabilities - 1,902 Deferred tax liabilities - 1,308 Net assets (other) - 1,099 Total net assets 2,341 Goodwill 6,614 Total consideration 8,955 A goodwill of 6,614 tEUR emerged from the acquisitions as an effect of the difference between the transferred consid- eration and the fair value of acquired net assets. The goodwill is not tax deductible. Transaction costs related to the acquisition of Digital Sport Media i Norden AB and Torcedores amounts to 484 tEUR in 2023. Transaction costs are accounted for in the income statements under “special items”. The acquisitions were com- pleted on August 15, 2023 and September 4, 2023. If the transactions had been completed on January 1, 2023 the group’s revenue would have amounted to 328 mEUR and result after tax would have amounted to 39 mEUR. The acquisition of Playmaker HQ was included in the balance sheet for the condensed consolidated interim report ended September 30, 2023 based on a provisional assessment. The opening balance was amended per December 31, 2023 and the PPA was revised in 2023. The revised PPA includes an adjustment on goodwill of 5,850 tEUR. Goodwill is connected to the future growth expectations given the strong platform and significant synergistic opportunities. In order to reach the full earn-out payment, Playmaker HQ will have to generate >75 mUSD in accumulating revenues and >25 mUSD in accumulating operational earnings (EBITDA) during the first three years post acquisition. The goodwill is tax deductible. Annual report Page 154 21. Business combinations (continued) 22. Related party disclosures Acquisition of Tipsbladet.dk On September 18, 2023 Better Collective announced the acquisition of Tipsbladet.dk ApS to further expand its position in Denmark for a total consideration of 6.5 mEUR on a cash and debt-free basis with closing 2 October 2023. The Group has registered the following shareholders with 5% or more equity interest: • J Søgaard Holding ApS, 16.92 %,Sankt Annæ plads 26-28, 1250 Copenhagen, Denmark • Chr. Dam Holding ApS, 16.92 %, Sankt Annæ plads 26-28, 1250 Copenhagen, Denmark • BLS Capital Fondsmæglerselskab A/S, 11.67 %, Strandvejen 724, 2930 Klampenborg Jesper Søgaard and Christian Kirk Rasmussen each hold 16.92% of the shares in Better Collective A/S through their respective holding companies. Moreover, BLS Capital Fondsmæglerselskab A/S held 11.67 % by the end of 2024 and increased their shares to over 15% in 2025. The remaining shares are held by other shareholders. The Group’s related parties with significant influence include the Group’s Board of Directors, Executive Management, and close family members of these persons. Related parties also include companies in which this circle of persons has significant interests. There have been transactions related to sublease of the Headquarters and related cost with Better Holding ApS and MM Properties ApS, total amounting 61k EUR. The transactions have all been on arm length. Management remuneration and long-term incentive programs are disclosed in note 5 and 6. tEUR Purchase amount 7,432 Cash and cash equivalents 0 Earn out 1,500 Cash outflow 5,932 The transferred consideration was in cash and a earn out payable in cash. Acquired net assets at the time of acquisition tEUR Domains 4,192 Deferred tax liabilities - 917 Cash - 587 Net assets (other) 1,548 Total net assets 4,236 Goodwill 3,196 Total consideration 7,432 A goodwill of 3,196 tEUR emerged from the acquisition of Tipsbladet as an effect of the difference between the trans- ferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expectations given the strong platform and significant synergistic opportunities. The earn outs are based on certain performance targets in the 12 months post-closing period. The goodwill is not tax deductible. Transaction costs related to the acquisition of Tipsbladet amounts to 42 tEUR in 2023. Transaction costs are accounted for in the income statements under “special items”. The acquisition was completed on October 2, 2023. If the transaction had been completed on January 1, 2023 the group’s revenue would have amounted to 328 mEUR and result after tax would have amounted to 39 mEUR. Annual report Page 155 Notes 23. Group information –subsidiary information The consolidated financial statements of the Group as of December 31, 2024 include the following subsidiaries: Name Note Ownership Country Better Collective D.o.o. 100% Serbia Better Collective SAS 100% France Bola Webinformation GmbH A 100% Austria Better Collective Greece P.C. 100% Greece Kapa Media Services Ltd. 100% Malta Better Collective Malta Ltd. D 100% Malta Better Collective Sweden AB 100% Sweden Digital Sportmedia i Norden AB F 100% Sweden Better Collective Poland SP Z o o 100% Poland Moar Performance Ltd B 100% United Kingdom Better Collective Romania SRL 100% Romania Better Collective USA Inc. 100% USA Atemi Ltd. C 100% Malta Better Collective UK Services Ltd (Former: Your Media Ltd) C 100% United Kingdom Solid Software Ltd (AceOdds) C 100% United Kingdom Mindway AI ApS H 90% Denmark Better Collective Netherlands B.V. 100% Netherlands Better Collective Portugal, Unipessoal Lda 100% Portugal Better Collective Canada Inc. G 100% Canada Austin Holding Co 100% Canada Better Collective Brasil Ltda 100% Brazil Goalmedia Tecnologia E Marketing Digital S.A. 99% Brazil Better Collective Colombia SAS 100% Colombia Tipsbladet ApS 100% Denmark Better Collective Operational Services India Private Limited 100% India Playmaker Capital Inc. D 100% Canada La Poche Bleue Inc. D, E 100% Canada The Nation Network Inc. D, E 100% Canada PMKR US Inc. D, E 100% USA Futbol Sites LLC D, E 100% USA Futbol Sites MX S.A. De C.V. D, E 100% Mexico AERIS S.A. D, E 100% Uruguay YB Media, LLC D, E 100% USA Odenton Company S.A. D, E 100% Uruguay Annual report Page 156 23. Group information –subsidiary information (continued) Name Note Ownership Country Wedge Traffic Limited D, E 100% United Kingdom Wedge Traffic, Inc. D, E 100% USA Flop Midias Ltda. D, E 100% Brazil SPRK Midias E Eventos Ltda. D, E 100% Brazil Futbol Sites Colombia S.A.S. D, E 100% Colombia FSN SRL D, E 99% Argentina Sociedad Commercial Futbol Sites Network Chile Limitada D, E 99% Chile Sociedad Commercial Futbol Dale Ideas Limitada D, E 100% Chile A Better Collective GmbH and Hebiva Beteiligungen GmbH are merged with Bola Webinformation GmbH as the continuing company as of 05.10.2024 retroactively to 01.01.2024. B Skycon Ltd is merged with Moar Performance Ltd as the continuing company as of 30.04.2024 retroactively to 01.01.2024. C Subsidiaries are 100% owned by Moar Performance Ltd D Subsidiaries are acquired or established in 2024 E Subsidiaries are 100% owned by Playmaker Capital Inc. F Subsidiaries are 100% owned by Better Collective Sweden AB G Subsidiaries are 100% owned by US Inc. H As per December 31, 2024, the value of non-controlling interests is 0 EUR. 24. Other contingent liabilities Other contingent liabilities There are no other contingent liabilities in 2024. 25. Events after the reporting date Better Collective’s Board and Executive Management propose to the Annual General Meeting that the 1.8% holding of own shares as of December 31, 2024, be canceled. Better Collective has decided to launch a new share buyback of 10 mEUR. Annual report Page 157 Parent Company Financial Statements Statement of profit and loss Statement of comprehensive income Balance sheet 159 159 160 161 Statement of changes in equity Cash flow statement 162 Annual report Annual report Page 158 Page 158 Statement of profit and loss Statement of comprehensive income Note tEUR 2024 129,221 21,435 2023 98,513 12,516 Note tEUR 2024 2023 2 Revenue Profit for the period Other comprehensive income 71,109 39,269 Other operating income Direct costs related to revenue Staff costs 21,306 52,240 2,978 23,071 40,796 1,438 3, 4 12 5 Other comprehensive income that may be reclassified to profit or loss in subsequent periods: Depreciation Fair value adjustment of hedges for the year - 180 - 483 Other external expenses 26,487 18,632 Currency translation to presentation currency Operating profit before amortization (EBITA) and special items Amortization 47,645 13,420 34,225 960 27,091 9,908 17,182 312 - 2,688 - 910 10 6 Currency translation of non-current intercompany loans 0 146 0 0 Operating profit (EBIT) before special items Special items, net 9 Income tax Net other comprehensive income/loss Total comprehensive income/(loss) for the period, net of tax - 2,722 68,387 - 1,393 37,877 Operating profit Financial income Financial expenses 35,186 80,222 34,749 17,494 70,010 45,054 7 8 Profit before tax 80,658 42,450 9 Tax on profit for the period 9,549 3,181 Profit for the period 71,109 39,269 Annual report Page 159 Balance sheet Note tEUR 2024 2023 Note tEUR 2024 2023 Assets Equity and liabilities Non-current assets Equity 10, 11 Intangible assets Share Capital Share Premium Reserves Retained Earnings Total equity 631 469,460 - 23,876 260,171 706,387 554 274,580 - 21,876 189,953 443,211 Goodwill 17,795 169,227 46,543 17,812 167,831 50,418 Domains and websites Accounts and other intangible assets Total intangible assets 233,565 236,061 12 Tangible assets Non-current Liabilities Right of use assets 7,750 2,891 7,469 2,494 9,962 19 18 9 Debt to credit institutions Lease liabilities Deferred tax liabilities 259,691 6,043 18,375 34,887 318,996 248,657 6,024 13,832 25,261 293,774 Fixtures and fittings, other plant and equipment Total tangible assets 10,641 19 Other non-current financial liabilities Total non-current liabilities Financial assets 13 14 Investments in subsidiaries Receivables from subsidiaries Deposits 377,085 372,121 1,000 234,330 282,016 940 Current Liabilities Prepayments received from customers and deferred revenue Trade and other payables Payables to subsidiaries Tax payable 4,612 6,302 312 11,495 11,993 196 17 19 Total financial assets 750,206 517,285 17,579 2,433 Total non-current assets 994,413 763,308 Current assets 19 18 Other current financial liabilities Lease liabilities 13,856 1,924 58,295 1,483 16 19 Trade and other receivables Receivables from subsidiaries Tax receivable 22,089 39,698 0 3,220 0 15,735 13,153 1,479 Total current liabilities 46,705 365,701 1,072,088 83,773 377,547 820,758 Total liabilities Prepayments 2,453 Total equity and liabilities Other current financial assets Cash 6,804 19 12,667 77,675 17,825 57,450 Total current assets Total assets 1,072,088 820,758 Annual report Page 160 Statement of changes in equity Currency transla- tion re- serve Currency transla- tion re- serve Share capital Share premium Hedging reserves Treasury shares Retained earnings Total equity Share capital Share premium Hedging reserves Treasury shares Retained earnings Total equity tEUR tEUR As of January 1, 2024 554 274,580 - 336 - 483 - 21,057 189,952 443,211 As of January 1, 2023 551 272,550 574 0 - 7,669 145,047 411,054 Result for the period 0 0 0 0 0 71,109 71,109 Result for the period 0 0 0 0 0 39,269 39,269 Fair value adjustment of hedges Fair value adjustment of hedges 0 0 0 0 0 - 180 0 0 0 0 - 180 - 2,688 0 0 0 0 0 - 483 0 0 0 0 - 483 - 910 Foreign currency translation - 2,688 0 Foreign currency translation - 910 0 Tax on other Tax on other comprehensive income 0 0 0 146 0 0 146 comprehensive income 0 0 0 0 0 0 0 Total other Total other comprehensive income 0 0 - 2,688 - 34 0 0 - 2,722 comprehensive income 0 0 - 910 - 483 0 0 - 1,393 Total comprehensive income for the year 0 0 - 2,688 - 34 0 71,109 68,387 Total comprehensive income for the year 0 0 - 910 - 483 0 39,269 37,877 Transactions with owners Capital Increase Acquisition of treasury shares Disposal of treasury shares Share based payments Transaction cost Transactions with owners Capital Increase Acquisition of treasury shares Disposal of treasury shares Share based payments Transaction cost 77 0 194,880 0 0 0 0 0 0 0 0 0 0 0 0 0 - 22,533 23,254 0 - 1,758 0 193,199 - 22,533 32,271 3 0 0 0 0 3 2,030 0 0 0 0 0 0 0 0 0 0 0 0 0 - 13,375 0 3,154 0 5,187 - 13,375 0 0 0 0 0 9,017 - 5,131 - 3,018 - 890 0 0 0 0 0 0 0 0 - 5,131 - 3,018 194,788 0 - 13 2,495 - 12 5,636 2,495 - 26 0 Total transactions with owners 77 194,880 721 Total transactions with owners 2,030 - 13,389 - 5,720 At December 31, 2024 631 469,460 - 3,024 - 517 - 20,336 260,171 706,387 At December 31, 2023 554 274,580 - 336 - 483 - 21,057 189,952 443,211 During the period no dividend was paid. During the period no dividend was paid. Annual report Page 161 Statement of cash flows parent Note tEUR 2024 2023 Note tEUR 2024 2023 Profit before tax Adjustment for finance items 80,658 - 45,473 - 960 42,450 - 24,956 - 312 19 19 Repayment of borrowings Proceeds from borrowings Lease liabilities - 113,271 124,129 - 2,092 - 546 146,362 - 20,336 - 3,018 - 6,911 124,317 - 1,055 45,490 - 1,273 460 2,033 - 13,375 - 26 Adjustment for special items Other non-current liabilities Capital increase Operating Profit for the period before special items Depreciation and amortization 34,225 16,397 659 17,182 11,346 1,380 Treasury Shares Other adjustments of non-cash operating items Cash flow from operations before changes in working capital and special items Change in working capital Transaction cost Warrant settlement, sale of warrants Cash flow from financing activities 51,281 - 25,073 26,208 - 7,637 18,571 33,886 3,365 29,908 14,246 44,154 - 4,744 39,410 51,698 2,471 0 20 32,254 Cash flow from operations before special items Special items, cash flow Cash flows for the period - 5,142 17,826 - 17 9,165 8,705 - 45 Cash flow from operations Cash and cash equivalents at beginning Foreign currency translation of cash and cash equivalents Cash and cash equivalents period end Dividend received Other Financial income, received Financial expenses, paid 12,667 17,825 - 12,484 43,338 - 708 - 10,712 82,867 4,398 Cash flow from ordinary activities before tax Income tax paid Cash and cash equivalents period end Cash 12,667 17,825 Cash flow from operating activities 42,630 87,265 Cash and cash equivalents period end 12,667 17,825 10 12 Acquisition of businesses - 59,331 - 20,538 - 1,447 0 - 54,203 - 24,928 - 2,527 0 Acquisition of intangible asset Acquisition of tangible assets Sale of tangible assets Non-current loans to subsidiaries Acquisition of other financial assets Sale of other financial assets Change in other non-current assets Cash flow from investing activities - 94,005 0 - 13,000 - 14,930 0 3,232 0 - 766 - 172,090 - 110,354 Annual report Page 162 Notes to the parent financial statement 1. Accounting policies 2. Revenue specification 3. Staff costs 4. Share-based payments 5. Fees paid to auditors appointed at the annual general meeting 6. Special items 7. Finance income 8. Finance costs 9. Income tax 10. Intangible assets 11. Intangible assets with indefinite life 12. Tangible assets 13. Investments in subsidiaries 14. Non-current financial assets 15. Issued capital and reserves 16. Trade and other receivables 17. Trade and other payables 18. Leasing 19. Financial risk management objectives and policies 20. Change in working capital 21. Other contingent liabilities 22. Related party disclosures 164 164 165 165 165 166 166 166 167 168 169 170 171 171 172 172 172 172 173 177 177 177 Annual report Page 163 Notes 1. Accounting policies Accounting policies Reference is made to note 4 of the consolidation financial statement. Reference is made to notes to the consolidated financial statements. For the treatment of subsidiaries reference is made to note 23. Other operating income: Other operating income in the Parent Company consists of management fees for subsidiaries and rent income from subsidiaries and external. Other operating income is recognized at the time of delivery of the services. 2. Revenue specification In accordance with IFRS 15 disclosure requirements, total revenue is split on Revenue Share, Cost per Acquisition (CPA), Subscription Revenue, Sponsorships and Other, as follows: tEUR 2024 2023 tEUR 2024 2023 Revenue category Recurring revenue (Revenue share, Subscription, CPM) Revenue type Revenue Share CPA 98,933 29,618 670 78,907 19,329 276 89,030 11,951 1,155 17,667 8,748 66,709 737 CPA, Sponsorships Other Subscription Sponsorships CPM 1,014 18,591 11,184 276 Total revenue 129,221 98,513 Other 670 %-split Total revenue 129,221 98,513 Recurring revenue CPA, Sponsorships Other 76 23 80 20 1 0 %-split Revenue Share CPA 69 9 68 1 Total 100 100 Subscription Sponsorships CPM 1 1 13 7 19 11 0 The parent company has earned 46.1 mEUR (2023: 46.0 mEUR) in revenues from one major customer, which repre- sents 36% of the parent company’s revenue (2023: 47%). The revenue is related to all operating segments. Other 1 Total 100 100 Annual report Page 164 Notes Notes 3. Staff costs 5. Fees paid to auditors appointed at the annual general meeting tEUR 2024 2023 tEUR 2024 2023 Wages and salaries 17,601 1,745 278 17,620 1,265 242 Fee related to statutory audit Fees for tax advisory services Assurance engagements Other assistance 504 0 360 0 Pensions, defined contribution Other social security costs Share-based payments Other staff costs 287 30 72 76 508 659 1,380 92 - 210 32,167 52,240 Total audit fees 821 Intercompany personnel costs Total staff cost 20,197 40,796 Non-audit services provided by EY amounted to 37 tEUR in 2024, relating to assurance and advisory within ESG assis- tance and other advisory services. Non-audit services provided by EY did not exceed 70% of the audit fees in accordance with EU audit legislation. Average number of full-time employees 181 160 Average number of full-time employees does not include recharged personal cost. For remuneration of Key employees, Executive Management and the Board of Directors, reference is made to the dis- closures in note 5 of the consolidated financial statements. 4. Share-based payments Better Collective A/S has issued share options to key employees and members of the Executive Board of the Com- pany. Refer to note 6 to the consolidated financial statements for a list of current incentive share option schemes and a description of the assumptions used for the valuation of the share options granted in 2024. Total costs recognized in 2024 amounted 659 tEUR (2023: 1,380 tEUR). Annual report Page 165 Notes 6. Special items Notes 7. Finance income Significant income and expenses, which Better Collective consider not part of ordinary business are presented in the Income statement in a separate line item labelled ‘Special items’. The impact of special items is specified as follows: tEUR 2024 2023 tEUR 2024 2023 Exchange gains Interest Income 34,197 1,068 10,759 34,186 11 10,000 61 Operating profit 35,186 17,494 Interest income, group entities Dividend income Other financial income Total finance income 5,841 51,698 2,410 70,010 Special Items related to: Special items related to Dual Listing Special items related to M&A 0 - 247 0 2,549 - 1,342 960 - 1,129 - 8,484 0 9,924 - 0 80,222 Variable payments regarding acquisitions - cost Variable payments regarding acquisitions - income Special items related to Restructuring Special items, total 312 8. Finance costs Operating profit (EBIT) before special items 34,225 17,182 tEUR 2024 2023 Amortization and impairment 13,420 9,908 Exchange losses Interest expenses 15,566 14,387 319 20,804 12,041 159 Operating profit before amortization and special items (EBITA before special items) Interest - right of use assets (Leasing) Interest expenses, group entities Fair value adjustment Other financial costs 47,645 27,091 296 0 374 Depreciation 2,978 1,438 8,126 3,550 45,054 4,181 34,749 Operating profit before depreciation, amortization, and special items (EBITDA before special items) Total finance costs 50,622 28,528 Annual report Page 166 Notes 9. Income tax Total tax for the year is specified as follows: tEUR 2024 2023 tEUR 2024 2023 Tax for the period Tax on other comprehensive income Total 9,549 146 3,181 0 Deferred tax liabilities Deferred tax liabilities January 1 Adjustments of deferred tax in profit and loss Exchange rate adjustment 13,832 4,529 14 10,672 2,993 167 9,695 3,181 Deferred tax liabilities December 31 18,375 13,832 Income tax of profit from the year is specified as follows: Deferred tax is recognized in the balance sheet as: Deferred tax asset 0 18,375 18,375 0 13,832 13,832 Deferred tax liability tEUR 2024 2023 Deferred tax liabilities December 31 Deferred tax Current tax 4,529 5,393 - 373 9,549 2,993 205 Deferred tax is related to: Intangible assets 18,432 - 57 0 14,536 - 2 2,056 - 2,758 13,832 Adjustment from prior years Total - 17 Property, plant and equipment Liabilities 3,181 Tax loss carry forward Deferred tax liabilities December 31 0 18,375 Tax on the profit for the year can be explained as follows: Deferred tax liability at January 1 2023 was adjusted by 4,5 tEUR due to the HLTV merger in 2023. tEUR 2024 2023 Specification for the period: Calculated 22% tax of the result before tax Tax effect of: 17,745 9,339 Non-taxable income - 7,850 217 - 11,785 3,634 0 2,010 - 17 Non-deductible costs Other tax adjustments Unrecognized tax losses carried forward Adjustment from prior years Total - 189 0 - 373 9,549 11.8% 3,181 7.5% Effective tax rate Annual report Page 167 Notes 10. Intangible assets Domains and Accounts and other Domains and Accounts and other tEUR Goodwill websites intangible assets Total tEUR Goodwill websites intangible assets Total Cost Cost As of January 1, 2024 Additions 17,812 0 167,831 0 72,754 12,978 - 2,748 - 69 258,397 12,978 - 2,748 1,309 As of January 1, 2023 Additions 17,812 164,966 3,183 0 - 318 167,831 25,086 52,022 - 4,302 - 52 207,863 55,205 - 4,302 - 369 0 Disposals Currency Translation At December 31, 2024 0 0 Disposals Currency Translation At December 31, 2023 0 0 - 17 17,795 1,396 169,227 82,914 269,936 17,812 72,754 258,397 Amortization and impairment As of January 1, 2024 Amortization and impairment As of January 1, 2023 0 0 0 0 0 0 0 0 0 0 22,336 14,794 - 1,374 615 22,336 14,794 - 1,374 615 0 0 0 0 0 0 0 0 0 0 11,798 10,558 - 650 11,798 10,558 - 650 Amortization for the period Amortization on disposed assets Currency translation Amortization for the period Amortization on disposed assets Currency translation 630 630 At December 31, 2024 36,371 36,371 At December 31, 2023 22,336 22,336 Net book value at December 31, 2024 17,795 169,227 46,543 233,565 Net book value at December 31, 2023 17,812 167,831 50,418 236,061 Accounts and other intangible assets consist of accounts (1,980 tEUR), Media Partnerships (44,332 tEUR) and software and others (232 tEUR). Accounts and other intangible assets consist of accounts amounted to (3,927 tEUR), Media Partnerships (45,994 tEUR) and software and others amounted to 497 tEUR. Goodwill cost at the January 1, 2023 was adjusted with 17,812 tEUR due to HLTV merger in 2023 *** Domains and websites cost at the January 1, 2023 was adjusted with 20,592 tEUR due to HLTV merger in 2023 Annual report Page 168 Recoverable amount Notes When testing for impairment, Better Collective estimates a recoverable amount for goodwill and for domain and web- sites. The recoverable amount is the higher of the asset or cash-generating unit’s fair value less costs of disposal and its value in use. The recoverable amount is normally determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. The recoverable number of domains and websites has been determined on the level of the cash-generating units, as explained above. 11. Intangible assets with indefinite life Intangible assets consist of goodwill and domains and websites. The parent company’s domains and websites arise from asset acquisitions. Impairment test: Goodwill, domains and websites are not subject to amortization, but are reviewed annually for impairment, or more frequently if there are any indicators of impairment noted during the year. For all CGUs, HLTV and the rest of Better Collective, the Management has performed an impairment test on goodwill and domains and websites as of December 31, 2024, on a value-in-use basis. Key estimates in the impairment test are growth in revenue, gross profits, discount rate and growth expectations in the terminal period. These are based on current and future development in the CGUs and on historical data, including expected long-term market growths. Data is based on both internal and external data sources. Cash-generating units A cash-generating unit represents the smallest identifiable group of assets that together have cash inflows that are largely independent of the cash inflows from other assets. Management has determined that, the parent company will continue to have to two CGU’s; HLTV and Rest of BC. Management has based the value-in-use by estimating the present value of future cash flows from a three-year forecast for 2025-2027. The forecast indicates an average annual revenue growth up to 11% in 2028 and a normalized average margin of 33%. Beyond the forecast, EBITDA growth, cash conversion and tax-rates have been projected with a time horizon of 7 years until 2034. From 2028 onward, the average gross profit growth rate is estimated to decline. In 2028, the average growth rate is projected to be 9% and the decline continues, reaching 3% by 2034, stabilizing thereafter at a theoretical steady state level in the terminal period. Performance and cash flows from goodwill, domains and websites owned by the individual cash generating units are allocated and form the basis for impairment. Carrying amount of goodwill and Domains and Websites for the CGUs: 2024 Based on expected 2034 EBITDA and cash flow, management has applied a terminal value growth rate of 2.5%. The cash flows assume a discount factor of 9.3% for HLTV and Rest of BC based on the Group’s weighted average cost of capital (WACC) in all years 2025-2034, with individual tax rates per country (22-25%). The applied pre-tax discount rate was 12% in 2023 for all CGU’s. tEUR HLTV Rest of BC Total Goodwill 17,795 20,610 0 17,795 Domains and Websites 148,617 169,227 As at December 31, 2024 and December 31, 2023 the Board of Directors have evaluated goodwill, domains and websites for impairment. The results of the impairment tests for goodwill and domains and websites showed that the recoverable amount exceeded the carrying value and that there was no impairment loss to be recognized. The Board of Directors have approved the inputs to the impairment testing and are satisfied that the judgements made are appropriate. 2023 tEUR HLTV Rest of BC Total Goodwill Domains and Websites 17,812 20,551 0 17,812 167,831 147,280 Annual report Page 169 Notes 12. Tangible assets Fixtures and fit- tings, other plant and equipment Fixtures and fit- tings, other plant and equipment tEUR Right of use assets Total tEUR Right of use assets Total Cost or valuation As of January 1, 2024 Additions Cost 8,422 2,223 0 3,817 1,447 - 84 12,239 3,670 - 84 As of January 1, 2023 Additions Disposals 1,553 8,299 - 1,585 156 1,292 2,527 0 2,845 10,826 - 1,585 153 Disposals Currency Translation At December 31, 2024 - 7 - 4 - 11 Currency Translation At December 31, 2023 - 3 10,637 5,177 15,814 8,422 3,817 12,239 Depreciation and impairment As of January 1, 2024 Depreciation and impairment As of January 1, 2023 954 1,941 - 7 1,323 1,043 - 80 2,277 2,984 - 87 1,219 1,040 - 1,387 82 882 398 0 2,101 1,438 - 1,387 125 Depreciation for the period Depreciation on disposed assets Currency translation Depreciation for the period Depreciation on disposed assets Currency translation - 1 - 1 - 2 43 At December 31, 2024 2,887 2,286 5,172 At December 31, 2023 954 1,323 2,277 Net book value at December 31, 2024 7,750 2,891 10,641 Net book value at December 31, 2023 7,469 2,494 9,962 Annual report Page 170 Notes 14. Non-current financial assets 13. Investments in subsidiaries Receivables from Subsidiar- Other non-current financial assets tEUR 2024 2023 tEUR ies Total Subsidiaries Cost at January 1, 2024 Additions 282,016 71,242 - 201 0 1,000 0 282,016 72,242 - 201 Cost at January 1 Additions 234,330 142,912 - 157 156,715 78,034 - 419 Disposals Exchange rate adjustment Cost at December 31, 2024 19,064 372,121 0 19,064 373,121 Exchange rate to reporting currency Cost at December 31 1,000 377,085 234,330 Value adjustment at January 1, 2024 Impairment 0 0 0 0 0 0 0 0 Value adjustment at January 1 Impairment Reversal of impairment 0 0 0 0 0 0 0 0 Value adjustment at December 31, 2024 Carrying amount at December 31, 2024 0 372,121 1,000 373,121 Value adjustment at December 31 Carrying amount at December 31 377,085 234,330 Cost at January 1, 2023 Additions Disposals 273,515 18,024 0 0 0 0 0 0 273,515 18,024 0 - 9,523 282,016 Reference is made to note 23 of the consolidated financial statements for a list of companies in the Better Collective Group. Exchange rate adjustment Cost at December 31, 2023 - 9,523 282,016 Investments in subsidiaries have been assessed for impairment in 2024 and 2023 and did not lead to any impairment in neither 2024 nor 2023. Reference is made to note 13 of the consolidated financial statement. Value adjustment at 1 January, 2023 Impairment Value adjustment at 31 December, 2023 Carrying amount at 31 December, 2023 0 0 0 0 0 0 0 0 0 0 282,016 282,016 Accounting policies Investments in subsidiaries Investments in subsidiaries and other investments are measured at cost. If the cost exceeds the recoverable amount, the carrying amount is reduced to such lower value. Annual report Page 171 18. Leasing Notes 15. Issued capital and reserves Right-of-use assets tEUR Buildings Cars Total Reference is made to the disclosures in note 16 of the consolidated financial statements. Balance at January 1, 2024 Additions 7,469 2,223 0 0 0 0 0 0 0 0 0 7,469 2,223 0 Disposals 16. Trade and other receivables Modifications Exchange rate adjustment Depreciation 0 - 6 0 - 6 - 1,941 7 - 1,941 7 tEUR 2024 2023 Depreciation on disposed assets Balance at December 31, 2024 Trade receivables Accrued revenue Other receivables Total receivables 13,486 7,947 656 12,571 2,267 898 7,750 7,751 Balance at January 1, 2023 Additions 301 8,299 - 1,534 34 33 0 334 8,299 - 1,584 34 22,089 15,735 Disposals Modifications - 50 0 17. Trade and other payables Exchange rate adjustment Depreciation Depreciation on disposed assets Balance at December 31, 2023 39 0 39 - 1,037 1,367 7,469 - 3 20 0 - 1,040 1,387 7,469 tEUR 2024 2023 Trade Payables Other payables Total payables 2,814 3,488 6,302 3,966 7,529 11,495 Lease liabilities tEUR 2024 2023 Maturity analysis - contractual undiscounted cash flows Less than one year One to five years 1,892 6,238 0 1,758 6,428 0 More than five years Total undiscounted cash flows Total lease liabilities 8,130 7,967 1,924 6,043 8,186 7,507 1,483 6,024 Current Non-current The total cash outflow for leases in 2024 was 2.092 tEUR (2023: 1.276 tEUR). Annual report Page 172 Beyond the impact due to loans mentioned above, the historic exposure to currency fluctuations has not had a mate- rial impact on the parent company’s financial condition or results of operations. Accordingly, Management deems that a further sensitivity analysis showing how profit or pre-tax equity would have been impacted by changes in these for- eign exchange rates is not necessary. Notes 18. Leasing (continued) Amounts recognized in the consolidated income statement Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The parent company’s exposure to interest rate risk arises mainly from club financing with floating interest signed in October 2022 and in august 2023 extended by 3 years to October 2026. With 260.8 mEUR drawn on the facility as of December 2024. Better Collective has entered two hedging contracts regarding the interest rate risk for the period October 2024 to October 2026, nominal amount of 550 mDKK each securing the inter- est rate at 2.32% and 2.34% respectively. tEUR 2024 2023 Interest on lease liabilities Expenses relating to short- term lease Expenses relating to lease of low value assets 319 17 0 159 0 43 19. Financial risk management objectives and policies Management expects to reduce the credit facility in the short to medium term, as the parent company is generating positive cash flows, and therefore exposure to interest rate risk is considered minimal. The interest rate risk arising from deposits held are short-term and non-material. The parent company’s activities expose it to a variety of financial risks: market risk (including foreign currency ex- change risk and interest rate risk), credit risk, and liquidity risk. The parent company has established principles for overall risk management, which seek to minimize potential adverse effects on the parent company’s performance. The parent company regularly monitors its interest rate risk and considers it to be insignificant, therefore an interest rate sensitivity analysis is not deemed necessary. Market Risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. For the parent company, market risk comprises foreign currency risk and interest rate risk. Credit risk The parent company uses a simplified IFRS 9 expected credit loss model. The model implies that the expected loss over the lifetime of the asset is recognized in the profit and loss immediately and is monitored on an ongoing basis until realization. The parent company has very limited overdue trade receivables and historically there has been mini- mal losses on trade receivables and the subsidiaries have a high liquidity ratio. The inputs to the expected credit loss model reflects this. Foreign currency risk Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The parent company´s exposure to the risk of changes in foreign exchange rates relates primarily to the parent company’s international operating activities. The parent company’s revenues are mainly de- nominated in DKK and EUR, with limited revenues in GBP, USD, and PLN. The majority of the parent company’s ex- penses are employee costs, which are denominated in the Group entities’ functional currency, DKK together with ex- penses. Expenses have a pattern there is in line with the revenue. The expenses are mainly in DKK, EUR and limited GBP, USD, and PLN. The DKK rate is fixed to the EUR. Since revenues in other foreign currencies than DKK and EUR (GBP, USD, and PLN) are limited and expenses in GBP, USD, and PLN reduces the exposure, the parent company is not overly exposed to foreign currency risk for the ongoing operations. As per December 31, 2024 the parent company’s impairment for expected loss is included in the trade receivables (ref note 15). The parent company has provided long-term intercompany loans in USD to Better Collective US, Inc. to fund the acqui- sitions in the US. The unrealized exchange rate gains/losses are recorded in the profit and loss in the parent company. Annual report Page 173 Notes 19. Financial risk management objectives and policies (cont’d) Expected credit loss on receivables from trade and subsidiaries can be specified as follows: Expected Loss Rate Gross Receivable Expected loss Net receivable Expected Loss Rate Gross Receivable Expected loss Net receivable tEUR tEUR 2024 2023 Not Due 0.0% 0.3% 1.1% 3.4% 31.0% 3.7% 7,736 4,028 437 1 11 5 7,735 4,017 432 Not Due 0.0% 0.3% 0.7% 2.5% 25.0% 2.9% 9,326 3,770 478 1 9 9,325 3,761 475 Less than 30 days Between 31 and 60 days Between 61 and 90 days More than 91 days Total Less than 30 days Between 31 and 60 days Between 61 and 90 days More than 91 days Total 3 7 207 7 200 268 261 1,596 14,004 494 518 1,102 13,486 1,753 15,596 438 458 1,315 15,137 Receivables from subsidiaries 0% 411,819 0 411,819 Receivables from subsidiaries 0% 295,169 0 295,169 Liquidity risk Limited losses were recognized during 2024 and the weighted credit loss has slightly increased compared to 2023. The parent company is exposed to liquidity risk in relation to meeting future obligations associated with its financial liabilities, which mainly include trade payables, other payables and the credit facility. The parent company ensures ad- equate liquidity through the management of cash flow forecasts and close monitoring of cash inflows and outflows. Annual report Page 174 Notes 19. Financial risk management objectives and policies (cont’d) The following table summarizes the maturities of the parent company’s financial obligations. Carrying amount Carrying amount Fair Value 2 – 5 years Contractual cash flows: Fair Value Total < 1 year 2 – 5 years > 5 years Contractual cash flows: Total < 1 year > 5 years 2024 2023 Non-derivative financial instruments: Financial liabilities measured at fair value through profit and loss Non-derivative financial instruments: Financial liabilities measured at fair value through profit and loss Earn-out consideration 0 0 0 0 0 0 Earn-out consideration 34,184 46,848 34,184 46,848 34,184 46,848 33,951 22,772 233 0 0 Financial liabilities measured at amortized costs Other financial liabilities measured at fair value 24,076 Lease liabilities 7,967 6,302 921 7,967 6,302 921 8,130 6,302 921 1,892 6,302 0 6,238 0 0 0 0 0 0 Financial liabilities measured at amortized costs Trade and other payables Deferred payment on acquisitions Payables to subsidiaries Loans from subsidiaries Debt to credit institutions 0 921 Lease liabilities Trade and other payables 7,507 11,495 2,524 7,507 11,495 2,524 8,186 11,495 2,524 1,758 11,495 1,571 6,428 0 0 0 0 0 0 17,579 0 259,691 17,579 0 259,691 17,579 0 289,123 17,579 0 10,388 0 0 0 Deferred payment on acquisitions Payables to subsidiaries Loans from subsidiaries 952 278,735 4,055 7,937 4,055 7,937 4,055 8,096 4,055 8,096 0 0 Other financial liabilities measured at fair value 47,823 47,823 47,823 47,624 41,109 0 Debt to credit institutions 248,657 248,657 287,829 13,825 274,003 Derivative financial instruments: Financial liabilities measured at fair value Derivatives used as hedging instrument Total financial instruments Derivative financial instruments: Financial liabilities measured at fair value Derivatives used as hedging instrument Total financial instruments 662 662 662 0 662 0 - 483 - 483 - 483 - 483 0 0 340,945 340,945 370,540 83,785 327,666 0 362,725 362,725 402,734 97,041 305,693 0 Assets: Assets: Non-current financial assets, subsidiaries Trade and other receivables Receivable from subsidiaries Other current financial assets Cash 372,121 22,089 39,698 0 372,121 22,089 39,698 0 465,151 22,089 39,698 0 18,606 22,089 39,698 0 446,545 0 0 0 0 0 Non-current financial assets, subsidiaries Trade and other receivables Receivable from subsidiaries Other current financial assets Cash 282,016 15,735 13,153 6,804 282,016 15,735 13,153 6,804 304,577 15,735 13,153 6,804 5,640 15,735 13,153 6,804 298,937 0 0 0 0 0 0 0 0 0 0 0 0 0 12,667 12,667 12,667 12,667 17,825 17,825 17,825 17,825 Total financial assets 446,575 446,575 539,605 93,060 446,545 0 Total financial assets 335,533 335,533 358,094 59,157 298,937 0 Annual report Page 175 Notes 19. Financial risk management objectives and policies Credit facilities As per December 31, 2024, Better Collective has drawn 261 mEUR (2023: 249 mEUR) out of the total committed club facility of 319 mEUR established with Nordea, Nykredit, and Citibank. On July 5, 2024 Better Collective reestablished its 3 year financing agreement with Nordea, Nykredit Bank and Citibank with a total committed facility of 319 mEUR and a 100mEUR higher accordion option with expiry at the end of October 2026. (continued) Fair value of Earn-out consideration, contingent consideration, and other financial liabilities All liabilities measured at fair value, or in respect of which the fair value is disclosed, are categorized into levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement, see be- low: Change in liabilities arising from financing activity Level 1: Quoted priced in an active market for identical assets or liabilities Level 2: Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly Level 3: Inputs that are not based on observable market data (valuation techniques that use inputs that are not based on observable market data) Non cash flow changes Non cash flow changes Cash flows Net Cash flows Net tEUR 2022 2023 2024 Non-current financing liabilities Leasing and other non-current liabilities 201,708 44,435 461 2,514 5,547 248,657 10,858 177 565 259,691 The fair value of Earn-Out consideration, and other financial liabilities is measured based on weighted probabilities of assessed possible payments discounted to present value (level 3). Derivates are measured at fair value based on gen- erally accepted valuation methods using available observable market data (level 2). 16 6,024 - 546 6,043 Current financing liabilities Payables to subsidiaries Debt to credit institutions Leasing current liabilities 20,822 1,055 356 - 8,829 0 - 0 - 1,055 2,400 11,993 0 5,586 0 0 0 17,579 0 Fair value of short term liabilities and financial assets - 1,273 1,483 - 2,092 2,533 1,924 In all material aspects the financial liabilities are current/short termed. Non-current loans and overdraft facility are sub- ject to a variable interest rate. Thus, the fair value of the liabilities is considered equal to the booked value. Total liabilities from financing activities 223,957 34,794 9,405 268,156 13,806 3,275 285,237 Listed shares included under other current financial assets are measured at fair value (market price) at the balance sheet date. (Fair Value Level 1). Capital Management For the purpose of the parent company’s capital management, capital includes issued capital, share premium, and all other equity reserves attributable to the equity holders of the parent. The primary objective of the parent company’s capital management is to maximize shareholder value and to maintain an optimal capital structure. The parent com- pany manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the parent company may adjust the dividend payment to shareholders, issue new shares or return capital to shareholders. Annual report Page 176 Notes 20. Change in working capital 22. Related party disclosures In addition to the disclosures in note 22 of the consolidated financial statements, the parent company’s related parties include subsidiaries, cf. note 23 to the consolidated financial statements. tEUR 2024 2023 Change in receivables Changes in Intercompany balances Prepaid expenses - 6,354 - 17,058 - 767 1,428 8,247 66 Transactions with related parties have been as follows: Prepayment - from Customers Change in trades payable, other debt Change in working capital, total 4,300 - 5,193 - 25,073 - 1,271 5,776 14,246 tEUR 2024 2023 Income Statement Other Operating income Intercompany revenue Purchases Interest expense Interest income 21,435 - 1,765 44,750 296 12,516 - 7,849 4,149 374 21. Other contingent liabilities 10,759 34,186 5,841 51,698 Other contingent liabilities Dividend income The Parent Company is jointly taxed with the Danish subsidiaries, Tipsbladet ApS and Mindway AI ApS. As administra- tion company, the Company has unlimited joint and several liability, together with the subsidiaries, for payment of Danish corporation taxes and withholding taxes on dividends, interest and royalties within the joint taxation group. Any subsequent corrections of income subject to joint taxation and withholding taxes, etc., may entail that the entities’ liability will increase. Balance Sheet Long-term financial assets Receivables from subsidiaries Short term loans and payables to subsidiaries 376,021 34,570 16,351 282,016 13,153 11,993 Management remuneration and share option programs are disclosed in note 5 and note 6 in the consolidated financial statements. The Parent Company has issued a letter of subordination to Mindway AI ApS regarding continued financial support. The letter of subordination is unrestricted and expires 12 months after the balance sheet date. There have been transactions related to sublease of the Headquarters and related cost with Better Holding ApS and MM Properties ApS, total amounting 61k EUR. The transactions have all been on arm length. There have not been other transactions with the Board of Directors, the Executive Directors, major shareholders or other related parties beside above transactions. Annual report Page 177 Other Alternative Performance Measures and Definitions 179 Annual report Page 178 Alternative Performance Measures and Definitions Alternative The group uses and communicate certain Alternative Performance Measures (“APM”), which are not defined under IFRS. Such are not to replace performance measures defined and under IFRS. The APM’s may not be indicative of the group’s historical operating results, nor are such measures meant to be predictive of the group’s future results. The group be- lieves however that the APMs are useful supplemental indicators that may be used to assist in evaluating a company’s future operating performance, and its ability to service its debt. Accordingly, the APMs are disclosed to permit a more complete and comprehensive analysis of the group’s operating performance, consistently with how the group’s business performance is evaluated by the Management. The group believes that the presentation of these APMs enhances an investor’s understanding of the group’s operating performance and the group’s ability to service its debt. Accordingly, the group discloses the APM’s to permit a more complete and comprehensive analysis of its operating performance relative to other companies and across periods, and of the group’s ability to service its debt. However, these APM’s may be calculated differently by other companies and may not be comparable with APM’s with similarly titled measures used by other companies. The group’s APMs are not measurements of financial performance under IFRS and should not be considered as alternatives to other indicators of the Company’s operating performance, cash flows or any other measures of performance derived in accordance with IFRS. The group’s APM’s have important limitations as analytical tools, and they should not be considered in isolation or as substitutes for analysis of the group’s results of operations as reported under IFRS. Our currently applied APM’s are summarized and described below. Performance Measure Description SCOPE Operating profit before amortizations and special items margin (%) Operating profit before amortizations and special items / revenue This APM supports the assessment and monitoring of the Group’s performance as well as profitability excluding special items that do no stem from ongo- ing operations, providing a more comparable meas- ure over time. Special items Items that are considered not part of ongoing Items that are not part of ongoing business, e.g. cost business related to M&A and restructuring, adjustments of earn-out payments. Net Debt / EBITDA before special items (Interest bearing debt, minus cash and cash This ratio is used to describe the horizon for pay equivalents) / EBITDA before special items on back of the interest-bearing debt and measures the rolling twelve months basis leverage of the funding. Liquidity ratio Current Assets / Current Liabilities Measures the ability of the group to pay its current liabilities using current assets. Equity to assets ratio Equity / Total Assets Reported to show how much of the assets in the company is funded by equity Cash conversion rate before special items (Cash flow from operations before special This APM is reported to illustrate the Group’s ability items + Cash from CAPEX) / EBITDA before to convert profits to cash special items Alternative Performance Measures NDC New depositing customers A key figure to reflect the Group’s ability to fuel long-term revenue and organic growth Alternative Performance Measure Description SCOPE Organic Growth Revenue growth as compared to the same pe- Reported to measure the ability to generate growth riod previous year. Organic growth from ac- from existing business quired companies or assets are calculated from the date of acquisition measured against the historical baseline performance. Operating profit before amortization (EBITA) Operating profit plus amortizations Better Collective reports this APM to allow monitor- ing and evaluation of the Group’s operational profit- ability. Operating profit before amortizations margin (%) Operating profit before amortizations / reve- This APM supports the assessment and monitoring nue of the Group’s performance and profitability EBITDA before special items EBITDA adjusted for special items This APM supports the assessment and monitoring of the Group’s performance as well as profitability excluding special items that do no stem from ongo- ing operations, providing a more comparable meas- ure over time. Annual report Page 179 Alternative Definitions Performance Measure Description SCOPE Term Description Recurring revenue Recurring revenue is a combined set of reve- The group reports this APM to distinguish between nues that is defined as recurring as manage- what management consider as recurring revenue ment considers that the sources of these rev- streams and what management consider as non-re- enue streams will continuously generate reve- curring revenue streams, e.g. revenues reflecting nue over a variable period of time and size e.g. one-time settlements with sportsbooks. if players continue to bet with sportsbooks with which BC has revenue share agreements, customers continue current subscriptions or if BC on a current basis receive revenues from PPC Pay-Per-Click SEO Search Engine Optimization Sports win margin Sports wagering Recurring revenue Sports net player winnings (sportsbooks) / sports wagering The value of bets placed by the players Recurring revenue is a combined set of revenues that is defined as recurring. It includes revenue share income, CPM/Advertising and subscription revenues customers having current marketing agree- ments in respect of banners, etc. on the Board The Board of Directors of the company Executive management Company Executives that are registered with the Danish Company register Better Collective A/S, a company registered under the laws of Denmark group’s websites. Accordingly, it includes Revenue share income, CPM /Advertising and subscription revenues. CLV The Customer Lifetime Value (CLV) shows expected revenue generated throughout the lifetime of a New Depositing Customer (NDC). This measure is pivotal for under- standing how much value a NDC is antici- pated to bring to the Group. The prerequi- sites going into the CLV are a number of fac- tors such as average value, average fre- quency, NDC lifespan and churn rate. A key figure to assess the value of NDCs generated by the Group, providing critical insights into NDC profitability. It allows the Group to identify the most valuable segments and optimize marketing strate- gies accordingly. Average revenue per NDC x NDC lifespan *Net debt definition has been changed from Q3, 2023 so it is excluding earn-outs. Comparatives have been changed accordingly. Annual report Page 180 Better Collective A/S Sankt Annæ Plads 26-28 1250 Copenhagen K Denmark CVR no 27 65 29 13 +45 29 91 99 65 info@bettercollective.com bettercollective.com Annual report Page 181