bet-at-home.com AG

Quarterly Report • Nov 7, 2016

Quarterly Statement Q3 2016

bet-at-home.com AG – 7. November 2016

REPORT BY THE MANAGEMENT BOARD

Ladies and Gentlemen, dear Shareholders,

in the first three quarters of 2016, bet-at-home.com AG Group once again showed its strength by generating new record gaming volumes as well as betting and gaming income. In addition, numerous marketing campaigns focused on the European Football Championship in France and ongoing sponsoring activities consistently increased the Group's popularity. More than 4.5 million registered customers have given the bet-at-home.com brand their trust already.

Following the issuance of bonus shares in June 2016 and the announcement of a performance-based special dividend, the bet-at-home.com AG received admission to the Regulated Market of the Frankfurt Stock Exchange ('Prime Standard') in August 2016. With the approved change of the segment, the bet-at-home.com AG fulfills all requirements in regard of being included in a selection index of the Deutsche Börse.

We would like to thank all those who have made the three quarters of 2016 such a success for bet-at-home.com, especially our staff and shareholders. They have contributed significantly to a very good financial year and, through their commitment and trust, will ensure a sustainable and successful future for the bet-at-home.com AG Group. We would also like to express our gratitude to the shareholders for their trust in us.

Franz Ömer Michael Quatember

CEO

CEO

DEVELOPMENT OF GROSS BETTING AND GAMING REVENUE

Significant increase in gross betting and gaming revenue

• Thanks to continuing investments in the bet-at-home.com brand and due to the targeted investments in marketing regarding the European Football Championship in France, the bet-at-home.com AG Group further increased its gross betting and gaming revenue significantly in the first three quarters of 2016.
• In the first three quarters of 2016, the gross betting and gaming revenue amounted to EUR 100.4 million, thus 14.7% higher year-on-year (Q1-Q3 2015: EUR 87.5 million).

3 bet-at-home.com AG Quarterly Statement Q3 2016 (unaudited) ǀ 7. November 2016

DEVELOPMENT OF GROSS BETTING AND GAMING REVENUE

Segment reporting

01/01-30/09/2016 ǀ in EUR 1,000	Sports betting	eGaming*	Total
Betting and gaming volume	477,578	1,603,648	2,081.226
Paid out winnings	-428,313	-1,552,515	-1,980.829
Gross betting and gaming revenue	49,265	51,133	100,398
Betting fees and gambling levies	-6,616	-5,207	-11,823
VAT on electronic services	-2,574	-4,189	-6,762
Gross betting and gaming revenue	40,075	41,737	81,813

Sports betting	eGaming*	Total
455,764	1,317,230	1,772,994
-410,768	-1,274,734	-1,685,502
44,997	42,496	87,493
-6,051	-4,400	-10,450
-2,424	-2,542	-4,966
36,521	35,555	72,076

* consists of casino, games, poker und virtual sports

• Total betting and gaming volume in Q1-Q3 2016 increased by 17.4% year-on-year
• Betting fees and gambling levies were 13.1% higher year-on-year due to the increase in gross betting and gaming revenue
• VAT for electronic service providers in the European Union resulted in an expense of EUR 6.8 million
• Net betting and gaming revenue increased by 13.5% to EUR 81.8 million

DEVELOPMENT OF MARKETING EXPENSES

Further strengthening of the brand and development of the customer base

• International advertising campaigns such as TV spots, posters and online media as well as an extensive bonus campaign within the scope of the European Football Championship in France.
• Sport events of this magnitude are always an ideal time for bet-at-home.com to increase the number of registered customers.
• Sponsoring agreements with Hertha BSC and Schalke 04 as well as other individual marketing measures in the European core markets further increased the brand's popularity.
• At the end of the third quarter of 2016, the bet-at-home.com AG Group had more than 4.5 million registered customers (Q3 2015: 4.2 million).

DEVELOPMENT OF INCOME

Strong earnings development and increased investments to strengthen brand popularity

• EBITDA in Q1-Q3 2016 amounted to EUR 21.3 million including intensive marketing investments connected with the European Football Championship in France.
• In Q3 2016, EBITDA amounted to EUR 12.3 million, making a positive earnings contribution to the pleasing trend during the period under review. This constitutes the highest quarterly figure in the history of the company.
• Financial result increased to EUR 1.7 million by investing cash and cash equivalents and issuing short-term loans at arm's length terms and conditions to the majority shareholder.
• In accordance with Maltese tax law, bet-at-home.com AG Group's corporate tax rate for Q1-Q3 was 33.6%. Due to a planned tax refund at the end of the year, the effective tax rate for 2016 is expected to be at last year's level (31.12.2015: 6.9%).

6 bet-at-home.com AG

Quarterly Statement Q3 2016 (unaudited) ǀ 7. November 2016

STABLE ASSET AND CAPITAL STRUCTURE

Development of cash & cash equivalents and group equity

	105,105	110,274
100.000
50.000
0
in EUR 1,000	31/12/2015	30/09/2016
Securities	1,326	1,556
Liquid funds	48,779	57,718
Receivables group companies	55,000	51,000
in EUR 1,000	31/12/2015	30/09/2016
Share capital	3,509	7,018
Capital reserves	10,875	7,366
Other comprehensive income	114	308
Total comprehensive income	79,501	78,270
Group equity	93,999	92,962

• Liquid funds and securities of the bet-at-home.com AG Group totalled EUR 59.3 million as at 30 September 2016 (31 December 2015: EUR 50.1 million) and contained EUR 4.0 million from first repayments of the short-term loan issued to the majority shareholder of bet-at-home.com AG
• As at 30 September 2016, a total of EUR 51.0 million was therefore reported in short-term loans to the majority shareholder. These loans were issued at arm's length terms and conditions and secured with a joint and several guarantee by the owners of the majority shareholder
• Cash and cash equivalents 105,105 110,274 Increase of the Company's share capital from EUR 3,509,000 to EUR 7,018,000 by issuing new bearer shares at a ratio of 1:1 in line with a share split on 21 June 2016 (capital increase from the Company's own funds)
• Adjusted for dividends paid from equity in the amount of EUR 15.8 million in May 2016, total Group equity amounted to EUR 93.0 million

BET-AT-HOME.COM SHARE

Outperforming the DAX, SDAX and TecDAX in three consecutive years

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ISIN	DE000A0DNAY5
Stock exchange	Frankfurt
Market segment	Prime Standard
Number of shares	7,018,000

FUNDAMENTALS 30/09/16

Market capitalisation	EUR 480.2 Mio.
Enterprise Value I	EUR 421.0 Mio.
Enterprise Value II	EUR 370.0 Mio.
Cash & cash equivalents	EUR 110.3 Mio.

SHAREHOLDER STRUCTURE

Betclic Everest SAS	55.73 %
Freefloat	40.52 %
Management	3.75 %

EV I) market capitalisation – securities, liquid funds (not including current amounts receivable from associated companies) EV II) market capitalisation – securities, liquid funds – current amounts receivable from associated companies

8 bet-at-home.com AG Quarterly Statement Q3 2016 (unaudited) ǀ 7. November 2016

OUTLOOK

Guidance Financial Year 2016

• From the current point of view, the management board assumes that if the regulatory and fiscal environment remains unchanged, the gross gaming revenue will increase by 10% and reach the level of 134.0 million euros in fiscal year 2016.
• For fiscal year 2016, the management board expects from a current perspective an EBITDA at the level of about 30.0 million euros.

Capital Markets Strategy 2016

• Share split (number of shares doubled): shares were allocated and credited to the respective depositories with the value date of 21 June 2016
• Admission to the to the Regulated Market of the Frankfurt Stock Exchange ('Prime Standard'), which became effective on 11 August 2016
• Planning a special dividend for the financial year 2016 (payment will be effected in the financial year 2017)

INVESTOR RELATIONS

CONTACT

Klaus Fahrnberger

+43 676 / 840 988248 ir@bet-at-home.com

www.bet-at-home.ag

FINANCIAL CALENDER 2017

06/03/2017	Full Year Results 2016
30/03/2017	Annual Report 2016
02/05/2017	Quarterly Interim Statement Q1 2017
17/05/2017	Annual General Meeting 2017
31/07/2017	Quarterly Interim Statement Q2 2017
11/09/2017	Interim Financial Report 2017
06/11/2017	Quarterly Interim Statement Q3 2017
05/03/2018	Full Year Results 2017

Appendix

Consolidated Financial Statements Q3 2016

FINANCIAL STATEMENT – Profit & Loss

P&L in EUR 1,000	01/01- 30/09/2015	01/01- 30/09/2016	∆ in %
Gross gaming revenue	87,493	100,398	14.7%
Betting fees and gaming levies	-10,450	-11,823	13.1%
Value-added tax (VAT)	-4,966	-6,762	36.2%
Net gaming revenue	72,076	81,813	13.5%
Other income	582	739	26.9%
Personnel expenses	-11,453	-12,668	10.6%
Advertising expenses	-26,869	-34,202	27.3%
Other operating expenses	-12,200	-14,347	17.6%
EBITDA	22,136	21,335	-3.6%
Amortisation/Depreciation	-668	-821	22.9%
EBIT	21,469	20,514	-4.4%
Financial result	1,601	1,691	5.6%
EBT	23,070	22,205	-3.7%
Taxes on income and earnings	-7,747	-7,646	-1.3%
Consolidated profit for the period	15,323	14,559	-5.0%

Increased gross betting and gaming revenue due to high betting volume during the European Football Championship

Further strengthening of the brand's recognition through focussed marketing campaigns during the European Football Championship in France

FINANCIAL STATEMENT – Balance sheet

Balance sheet in EUR 1,000	31/12/2015	30/09/2016
Non-current assets	4,763	4,212
Receivables and other assets	70,696	56,178
Securities	1,326	1,556
Cash and cash equivalents	48,779	57,718
Current assets	120,801	115,451
Prepaid expenses	1,211	2,337
Total ASSETS	126,775	122,000

Equity	93,999	92,962
Non-current liabilities	40	76
Trade payables	1,011	1,973
Short-term provisions	19,943	15,848
Other liabilities	11,012	10,287
Current liabilities	31,965	28,109
Deferred income	771	853
Total EQUITY & LIABILITIES	126,775	122,000

"Receivables and other assets" include a loan issued to Betclic Everest Group S.A.S. (30.09.2016: EUR 51.0m)

High level of "cash and cash equivalents" due to strong operating cash flow despite an increased dividend of EUR 4.50 per share

Equity ratio at high level of 76.2%

"Short-term provisions" include provisions for betting fees and gambling levies to the amount of EUR 11.6m.

"Other liabilities" contain trust-held deposits which reflect the customers' credit balance (30.09.2016: EUR 8.7m)

No bank loans or other liabilities to banks

FINANCIAL STATEMENT – Cash flow

Cash flow in EUR 1,000	30/09/2015	30/09/2016
Consolidated profit for the period	15,323	14,559
Other comprehensive income	17	194
Comprehensive income	15,340	14,753
+ Depreciation of non-current assets	668	821
- Interest income related to loans issued to group companies	-1,538	-1,670
+/- Increase/decrease in provisions	2,202	-4,059
Increase/decrease in trade and other receivables not attributable to investing or financing +/- activities	7,528	9,162
Increase/decrease in trade and other payables not attributable to investing or financing +/- activities	848	321
Cash flows from operating activities	25,048	19,330
- Acquisition of assets (excluding investments)	-258	-271
- Interest income/expense related to loans issued to group companies	-9,018	5,670
Cash flows from investing activities	-9,277	5,399
- Payments to shareholders (dividends)	-4,211	-15,791
Cash flows from financing activities	-4,211	-15,791
Net cash from operating, investing and financing activities	11,560	8,938
Cash and cash equivalents at 1 January	30,287	48,779
Cash and cash equivalents at 30 September	41,847	57,718

14 bet-at-home.com AG Quarterly Statement Q3 2016 (unaudited) ǀ 7. November 2016

HISTORICAL KPI ANALYSIS

Cash and cash equivalents

in EUR 1,000

Gross betting and gaming revenue

EBITDA

Equity ratio

15 bet-at-home.com AG

Quarterly Statement Q3 2016 (unaudited) ǀ 7. November 2016

HISTORICAL KPI ANALYSIS

Dividend

Registered Users

Dividend per share (dividend yield in %)*

FY 2015	EUR 4.50 (4.66%)	Since 2011 bet-at-home.com AG remains committed to a generous
FY 2014	EUR 1.20 (2.08%)	dividend-policy in order to ensure that the highly valued shareholders
FY 2013	EUR 0.80 (2.36%)	could not only benefit from the performance of the share itself but also
FY 2012	EUR 0.60 (2.70%)	participate in the company's success via constant dividend payments.

* the figures for dividend per share and dividend yield in % are based on a total number of 3,509,000 bet-at-home.com AG shares. Bearers of the 3,509,000 new bonus shares, which were allocated and credited to the respective depositories with a value date of 21 June 2016 as a result of the capital increase, qualify to receive dividends as from 1 January 2016.

DISCLAIMER

This presentation is for information purposes only and may not be copied in its entirety or in part, for any purpose or passed on to third parties or made public. This presentation contains written documentation or slides for a presentation on bet-at-home.com AG ("the company") and its operations. This presentation does not constitute a solicitation or offer to sell, purchase or subscribe to shares in the company. The information and opinions expressed therein do not form the basis of any contract or investment decision.

This presentation contains forward-looking statements, that means statements which are not historical facts, including statements about the beliefs and expectations of the company and the company's objectives in regards to the future development of the business. These statements are based on current plans, estimates as well as projections and therefore should not be excessively evaluated by investors. Forward-looking statements are only relevant as of the date in which they are made and the company is not obliged to make such statements in terms of new information, future developments up to the latest date and publish revised statements..

Although this presentation has been prepared with the utmost care with respect to the accuracy of the facts, the material within this presentation has not been checked by the company. Neither the company, its managers or any third party offer any guarantee, expressed or implied in underlying the accuracy or completeness of this presentation, information or opinions. Neither the company or any of its members, managers, representatives or employees or any third party shall have any liability for any damages arising from the use of this presentation or its contents or in connection therewith.