Announcement PDF BetMakers Technology Group Ltd ABN 21 164 521 395 | | | | | | | | | | | | | | | | | | | | | | | | | FY24 FULL-YEAR RESULTS PRESENTATION 30 AUGUST 2024 FOR THE FULL YEAR ENDED 30 JUNE 2024 www.betmakers.com/investors © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 1 RACING ENHANCED BetMakers delivers world leading B2B technology solutions for tote and fixed odds betting on racing. | | | | | | BetMakers Technology Group (ASX:BET) is a leading international provider of B2B technology products with a global footprint that spans the world’s major racing and betting markets. Our technology and service solutions enhance betting on racing at critical points along the life cycle for fixed odds and pari-mutuel wagering, unlocking new revenue streams, expanding markets, and enhancing user experience. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 2 SUMMARY OF FY24 FY24 SUMMARY ______ $88.8m Material benefits were realised during FY24 from a disciplined execution of BetMakers’ turnaround strategy. ↑ +1.0% vs pcp APPROACHING PROFITABILITY ➞ Adjusted EBITDA1 in FY24 of -$7.2m (loss reduced by 74% vs pcp). ➞ Operating Expenses reduced to $65.3m in FY24 from $88.2m in FY23, (down by 26% vs pcp).2 ➞ Operating efficiencies expected to deliver improved operating leverage in FY25. ➞ Management is focused on enabling BetMakers to generate positive cash-flow prior to the end of FY25. GROWTH EVIDENT IN KEY AREAS WITH STRONG MARGINS ➞ International operations are continuing to grow in profitability and are a key growth focus. 97% BENEFITS FROM TECHNOLOGY INVESTMENT ➞ Next Gen final stage to go live in Q1 FY25 with significant improvements expected to cloud costs, platform performance and operations. This will complete the product suite rebuild for GBS. FY24 REVENUE (EX CUSTOMER LOSS)3 CONTRACTED REVENUE4 $65.3m -$7.2m ↓ -26% vs pcp ↑ +74% vs pcp OPERATING EXPENSES2 FY24 ADJUSTED EBITDA ➞ DeltaFusor racing data engine in production, streamlining data services and lowering costs. ➞ Material upgrade to flagship fixed odds product – Price Manager – completed, adding features and eliminating legacy infrastructure. ➞ betr migration off-platform completed on schedule. This is expected to accelerate the realisation of cloud and operating efficiencies in FY25. ➞ GBS’ Embedded Racebook delivering high gross margin and opportunities for future growth. REVENUE RE-BASED INTO FY25 ➞ Global Tote division (58% of revenues) performing strongly with further opportunities to improve profitability. ➞ Reported revenue for FY24 was $95.2m, or $88.8m after adjusting for FY24 revenue from betr ($6.4m). ➞ Strategic acquisition of RACELAB; now integrating into core offering with strong response from existing customers. ➞ Revenue will be re-based moving into FY25, reflecting betr exit as well as the lower revenue from the Australian Platforms division in 2H FY24. 2 FY24 operating expenses of $65.3m are after the capitalisation of $6.3m of staff costs relating to Next Gen. There were no staff costs capitalised in FY23. Excludes $6.4m of revenue related to betr customer loss announced on 11 April 2024. Reported FY24 Revenue was $95.2m. 4 Contracted Revenue refers to revenues derived from customers who had contracts in place prior to the beginning of the financial year. Further details are provided on Slide 12. 3 1 For all references in this presentation to Adjusted EBITDA, refer to Slide 14 for reconciliation between FY24 Reported EBITDA and FY24 Adjusted EBITDA. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 3 TRANSFORMATION JOURNEY ______ REVENUE GROWTH FY24 – TURNAROUND PHASE FY25 / FY26 – TRANSFORMATION PHASE LONG TERM GOAL3 Restoring Operational Discipline Working Towards Delivering Sustainable Profit Rule of 404 International markets the focus - strong performance from Global Tote and opportunities emerging for GBS’ Embedded Racebook products. Revenue will be re-based moving into FY25, reflecting betr exit as well as the lower revenue from the Australian Platforms division in 2H FY24. 10%+ Domestic revenues impacted by loss of betr contract and lower revenue from Australian Platforms in 2H FY24. Growth to come from higher gross margin products. International markets remain a focus. GROSS MARGIN Gross Margin 60% in FY24 vs 62% pcp, driven by lower gross margins derived from Australian Platforms’ revenue. Next Gen expected to improve gross margin in FY25, both in terms of existing products (Australian Platform Division) and new highly scalable solutions (eg. Embedded Racebook). 75%+ OPERATING EXPENDITURE Restructuring initiatives implemented throughout the year. Further reductions in operating costs. EBITDA Margins of 25%+ Cash operating expenses reduced to $71.6m.1 Targeting a at least a further 16% reduction in cash operating expenses to below $60m in FY25.2 MANAGEMENT FOCUS Lowering the cost base. Realisation of benefits from lower operating and content costs and implementation of further efficiencies. Exiting unprofitable contracts and restructuring content deals. Rebuilding technology platform (Next Gen) to lower cloud costs and deliver a full suite of scalable products. Accelerating growth from high margin scalable products. Growth from scalable high margin products. Enable positive cash-flow prior to the end of FY25. BetMakers’ long term goal is to transform into a ‘Rule of 40’ Company. 1 Cash operating expenses are prior to the capitalisation of $6.3m of staff costs associated with Next Gen. 2 Cash operating expenses are prior to the capitalisation of any staff costs. 3 Long term goal is to be achieved over a period of 3 to 5 years. 4 The Rule of 40 is a principle that states that a technology company’s combined growth rate and EBITDA margins should exceed 40%. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 4 FY24 FULL-YEAR RESULTS BETMAKERS OVERVIEW ______ Serving the global betting industry with market-leading B2B technology solutions. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 5 BUSINESS STRATEGY GLOBAL FOOTPRINT EUROPE ______ United Kingdom and Ireland, France, Germany, The Netherlands, Spain, Cyprus, Denmark, Norway and Finland 30+ 60+ active countries online wagering operators ASIA 230+ 45+ racing partners regulatory licenses South Korea, Hong Kong, Macau, Vietnam and Malaysia AMERICAS United States and Canada, Puerto Rico, West Indies and Dominican Republic, Peru, Argentina and Chile 376 employees (at June 30, 2024) ↓ from 568 8 AFRICA worldwide offices South Africa ↓ from 11 OCEANIA Australia and New Zealand © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 6 BUSINESS STRATEGY PRODUCTS BY DIVISION ______ BetMakers’ unique mix of products supports both Tote and Fixed Odds Wagering on racing globally. PRODUCTS PRODUCTS __________________ __________________ Fixed Odds Pricing & Managed Trading Services _________ Data, Form & Content Quantum™ Tote Engine Betting Platform Development _________ _________ Racing Vision _________ _________ International Tote Pooling Embedded Racebook _________ _________ Interface Management Reporting & Analysis Race Day Control _________ _________ Rights Partnerships _________ Tote Hosting Betting Terminal Software _________ Venue Services _____________________________________________________________________ _________ Official Price & Integrity CUSTOMERS _____________________________________________________________________ Tote betting represents more than 70% of regulated betting on horse racing in the world.1 CUSTOMERS PLATFORMS, FORM AND DATA FOR FIXED ODDS WAGERING 1 ENABLEMENT PRODUCTS THAT SPAN BOTH DIVISIONS TOTE ENGINE, HOSTING, POOLING AND INTERFACING Based on data provided by the World Tote Association (https://world-tote.org/). © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 7 BUSINESS STRATEGY GLOBAL BETTING SERVICES (NEXT GEN) ______ TARGET CUSTOMER REVENUE MODEL New opportunity The customer is seeking a full white label digital platform, but can be leveraging an existing brand and/or user base Sportsbook Platform October 2024 Launch Digital Racebook Hardware / POS Racebook EMBEDDED SOLUTIONS Variable fees + SaaS minimum fees All Products Live Turn-Key Racing Products Price Manager Larger business or specialists looking for bespoke technology or data PLATFORM White Label Platform Existing operator An established wagering operator looking to add or enhance their fixed odds racing product Terminal Interface Variable fees + SaaS1 minimum fees DynamicOdds SaaS fee + smaller variable upside Race Day Control MTS API ProFORM™ Rights Partnerships CoreAPI Global Tote MTS DeltaFusor PuntingForm API SUITE GBS has undergone a transformational technology upgrade over the past 18 months All Products Live API, Data & Widget Products 1 A reference in this presentation to SaaS refers to Software as a Service revenues, that are periodic (typically monthly) recurring fees paid to BetMakers. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 8 BUSINESS STRATEGY GLOBAL TOTE ______ TARGET CUSTOMER REVENUE MODEL ADW Platform Existing or new operator An operator looking for full end to end digital and/or POS solution All Products Live Digital Racebook Hardware / POS Racebook MANAGED SERVICES Variable fees + SaaS minimum fees All Products Live Managed Services Quantum™ Operations Tote operator with an existing platform Looking for one or several of our core tote products PLATFORM & TERMINALS End-to-end Existing operator An established wagering operator looking to add or enhance their tote racing product BetLine Terminals Variable fees + SaaS minimum fees SaaS fee + smaller variable upside Race Day Services Commingling Interface Management Quantum™ Tote Engine Service Layer ProFORM™ International Tote Pooling Global Tote Hub CoreAPI Data QUANTUM™ SUITE Global Tote delivers tote solutions to some of the largest operators in highly regulated markets worldwide. All Products Live Global Tote Quantum™ Services © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 9 BUSINESS STRATEGY INDUSTRY DRIVERS ______ BetMakers’ plays a crucial role in the digitisation and globalisation of wagering on racing for both Tote and Fixed Odds. INDUSTRY TREND CUSTOMER NEED Digital wagering operators looking to add or improve racing content ➞ Increased competition amongst wagering operators The expansion of regulated online wagering Emerging markets The globalisation of professional wagering on horse racing © 2024 BetMakers Technology Group Limited. Confidential & proprietary. ➞ ➞ Racing product and content. Turnkey solutions. Present wagering to the younger generation. ➞ Form, statistics, gamification and tokenisation Racing product and content. Turnkey solutions - ease and convenience. ➞ ➞ Embedded Racebook Managed Trading Services API ➞ ➞ ➞ ➞ ➞ Embedded Racebook Managed Trading Services API ➞ ➞ ➞ ➞ ➞ Increase coverage and availability of pricing Pricing and Trading Tools RACELAB, Punting Form Automation and streamlined feeds Increase margin. Improve customer experience. Reduce cost to serve. ➞ BETMAKERS’ PRODUCTS AND SERVICES Improved liquidity and global connectivity. Access to more global content. ➞ ➞ ➞ ➞ Global Tote Network Service Layer APIs FY24 FULL-YEAR RESULTS | 10 FY24 FULL-YEAR FINANCIAL RESULTS ______ Substantially improved operating base; moving closer to profitability. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 11 FY24 FULL-YEAR RESULTS FY24 REVENUE COMPOSITION ______ Our revenues are contracted, diversified, and allow BetMakers to participate in the value generated by our products. CONTRACTED REVENUES CUSTOMER CONCENTRATION REVENUE MODEL 3% 27% 37% 63% 73% 97% Contracted Beginning of the Year Not-contracted 97% of FY24 Revenue was derived from customers who had contracts in place at the beginning of the year.1 1 Top 10 Customers Other Customers Top 10 Customers are only 27% of FY24 Revenue No customer greater than 5% of revenue. Variable Fixed A mix of fixed and variable fees allows BetMakers to participate in the value generated by our products. All figures on this slide are based on FY24 Revenue, of $88.8m, which excludes any revenue from betr © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 12 95.0 FY24 FINANCIAL RESULTS 95.2 87.9 88.8 REVENUE SUMMARY ______ 54.8 53.2 FY24 Revenue flat at Group level ➞ Group revenue was flat for FY24, driven by a solid result from Global Tote, and offset by a weaker performance from GBS. Group revenue, ex-betr was $88.8m (up 1.0% YoY). ➞ BetMakers entered into or renewed contracts with 29 operators some with terms as long as ten years. However, growth was offset by weaker revenue from Australian Platforms and the loss of the betr contract. ➞ Revenue will be re-based moving into FY25, reflecting the exit of the betr contract as well as the lower revenue from the Australian Platforms division in 2H FY24. GBS (42% of revenue) was weaker, down 3.3% YoY 41.8 40.4 ➞ GBS revenues of $40.4m were softer in FY24 vs pcp ($41.8m). GBS revenue includes $6.4m from the betr arrangement which will churn in FY25. Ex-betr revenues for GBS were $34.0m in FY24. ➞ GBS Revenue split 50%/50% between 1) Australian Platforms and 2) SaaS Fees & International Customers. ➞ Australian Platforms’ revenue was weaker in 2H FY24 due to trading conditions for our customers. FY23 GBS REVENUE SPLIT FY24 ➞ Next Gen final stage to go live in Q1 FY25 with significant improvements expected to cloud costs, platform performance and operations. 50% Global Tote (58% of revenue) was solid, up 3.0% YoY ➞ Global Tote delivered revenue of $54.8m for FY24, up 3.0% YoY. ➞ The Norway tote system is in final testing stages with a 10-year agreement in place. The parties are working towards a go-live date in Q2 FY25. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 GROUP GEOGRAPHICAL SPLIT FY24 34% 66% 50% SaaS Fees & International Customers Australian Platforms Domestic Revenue International Revenue FY24 FULL-YEAR RESULTS | 13 FY24 FINANCIAL RESULTS ADJUSTED EBITDA _____ -7.2 -6.3 9.8 The restructure is delivering, the business is more efficient ➞ ➞ Key driver is reduction in operating expenses from $88.2m in FY23 to $65.3m1 in FY24. Well positioned for improved operating leverage in FY25 and future periods. Adjusted EBITDA loss reduced by 74% to -$7.2m ➞ Adjusted EBITDA, was -$7.2m vs -$27.8m in the pcp (an improvement of $20.6m). -27.8 0.2 -2.0 19.0 Management’s focus is on realising further efficiency gains and continuing to improve margins. 1 1 Overheads and other expenses includes deal costs of $3.4m. BetMakers’ Adjusted EBITDA loss reduced from -$27.8m in FY23 to -$7.2m in FY24. 1 FY24 operating expenses of $65.3m are after the capitalisation of $6.3m of staff costs relating to Next Gen. There were no staff costs capitalised in FY23. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 14 FY24 FINANCIAL RESULTS OPERATING EXPENSES ($m) 88.2 ______ Operating efficiency a focus, expenses down $22.9m (26%) ➞ 65.3 64.4 -26% Operating expenses of $65.3m1 (vs $88.2m pcp). Staff expense reduced by $19.0m (29%) 45.4 ➞ -29% Staff costs reduced to $45.4m (after the capitalisation of $6.3m of staff costs in relation to Next Gen). There were no capitalised staff costs in FY23. Overheads reduced by $3.9m (16%) ➞ 23.7 19.8 Overheads also reduced materially from $23.7m to $19.8m, reflecting improved operational discipline and focus. -16% Further reductions in costs targeted for FY25 ➞ 1 As a result of the full year benefit of FY24 cost-out, combined with additional efficiency initiatives, the Company is targeting a further reduction in operating costs in FY25. FY23 FY24 FY24 operating expenses of $65.3m are after the capitalisation of $6.3m of staff costs relating to Next Gen. There were no staff costs capitalised in FY23. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 15 FY24 FINANCIAL RESULTS PROFIT & LOSS ______ Revenue of $95.2m, flat vs pcp ➞ Revenue for FY24 excluding betr was $88.8m (up 1.0% vs pcp). Gross Margin impacted, Next Gen coming ➞ ➞ Gross Margin for FY24 was 60% (vs 62% pcp) but was impacted by the weaker gross margin on revenue from the Australian Platforms business. Gross Margin improvements are expected to be realised in FY25 with final stages of the Next Gen platform going live in Q1 FY25. Variance FOR THE 12 MONTHS ENDED 30 JUNE 2024 ($M) FY24 FY23 $/% % 0.2% Revenue 95.2 95.0 0.2 COGS -37.8 -35.9 -1.9 5.4% GROSS PROFIT 57.4 59.1 -1.7 -3.0% GROSS MARGIN % 60% 62% -2% -3.2% Operating expenses 1 -65.3 -88.2 22.9 -26.0% Net foreign exchange gain 0.6 1.2 -0.6 -45.5% Adjusted EBITDA -7.2 -27.8 20.6 74.0% Adjusted EBITDA Margin % -8% -29% 21% nm Gain on purchase 1.0 7.5 -6.5 -86.9% (Impairment) / recovery of receivables -0.9 -8.9 8.0 -89.9% Deal costs 0.0 -3.4 3.4 nm Share-based payments expense 1.9 -8.3 10.2 -123.0% EBITDA -5.2 -41.0 35.8 -87.3% Operating leverage in focus, benefits to be realised from FY25 Depreciation and amortisation expense -12.2 -11.8 -0.4 3.4% ➞ Finance costs -0.4 -0.6 0.2 -30.9% Income tax expense/(benefit) -20.8 14.6 -35.4 -242.3% NPAT -38.7 -38.8 0.1 nm Margins approaching profitability ➞ ➞ ➞ Adjusted EBITDA Margin was -8%, improved from -29% in FY23. EBITDA loss reduced to -$5.2m from -$41.0m. Adjusted EBITDA loss reduced to -$7.2m from -$27.8m . Combination of reduced operating costs and expected improvements to gross margin to drive improved operating leverage in future periods. NPAT heavily impacted by non-cash items ➞ 1 Income tax expense includes movement in DTA balance by $20.1m. FY24 operating expenses of $65.3m are after the capitalisation of $6.3m of staff costs relating to Next Gen. There were no staff costs capitalised in FY23. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 16 FY24 FINANCIAL RESULTS BALANCE SHEET & CASH FLOW ______ BALANCE SHEET SUMMARY 30-JUN-24 30-JUN-23 Unrestricted cash 14.8 30.1 Restricted cash 14.5 10.9 Deferred tax asset 13.9 34.0 Property Plant & Equipment 24.4 28.4 83.1 96.1 Total assets 150.7 199.5 $14.8 million in unrestricted cash, and nil debt Total liabilities (39.1) (49.0) ➞ ➞ Net assets 111.6 150.6 Closing cash balance of $29.3 million. Cash movement during FY24 includes a total of $3.0m for to the acquisition of RACELAB Global and paid to Punting Form upon the satisfaction of the Special Event.1 Intangibles and Other Assets Reduction in Deferred Tax Asset ➞ ➞ DTA reduced to $13.9m (FY24) from $34.0m (FY23). No change in tax losses available for use in future periods. Targeting further reductions in costs and improvements in cash-flow from operating activities ➞ 1 Operating cash-outflows (including lease payments and capitalised staff costs, but excluding movements in restricted cash) reduced from $21.4m in FY23 to $9.7m in FY24. OPERATING CASH OUTFLOWS (FY24 vs FY23) 30-Jun-23 30-Jun-24 $21.4m $9.7m Refer to ASX Announcement dated 25 March 2024 and 11 April 2024. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 17 FY25 OUTLOOK ______ Shaping the future of global racing. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 18 CONTINUED IMPROVEMENT IN OPERATING EFFICIENCY AND MARGIN 1 ➞ Management is focused on enabling BetMakers to generate positive cash-flow during FY25. ➞ Targeting a further reduction (16%) in cash operating expenses1 to below $60m for FY25. ➞ In addition to the reduction in operating expenses, operating leverage to be further enhanced by expected improvements to gross margin driven by the Next Gen roll-out. FY25 OUTLOOK STRONGER FINANCIAL PERFORMANCE IN 2H FY25 vs 1H FY25 ➞ Revenue base for 1H FY25 impacted by betr migration and softer Australian racing business in 2H FY24. Revenue expected to start FY25 below run-rate for prior year. 2 ______ ➞ A payment of $2.9m in relation to the minimum guarantee for New Jersey Fixed Odds was made in July 2024 and will impact the cash balance at the end of Q1 FY25. ➞ Benefits of recent contract wins expected to be realised in 2H FY25 with improved operating leverage. Stronger 2H FY25 revenue is also expected given the seasonality from Australian and international racing calendars. Entering the transformation phase. FOCUS ON HIGHER MARGIN GROWTH OPPORTUNITIES 3 1 ➞ Next Gen rebuild is expected to go live in Q1 FY25 and is expected to deliver a full suite of scalable products. ➞ Growth on top of existing revenue base to come from higher gross margin products, particularly GBS Embedded Racebook and Global Tote. Cash operating expenses are prior to the capitalisation of any staff costs. Cash operating expenses were $71.6m in FY24 © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 19 INVESTOR QUESTIONS ______ Email: investors@betmakers.com © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 20 APPENDIX ______ Email: investors@betmakers.com © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 21 BUSINESS STRATEGY & OUTLOOK FY25 DIVISIONAL FOCUS ______ GLOBAL BETTING SERVICES ➞ Launch Next Gen platform for Platform clients to deliver improved gross margin and enhanced product for our customers. ➞ Grow international customer base via partnerships and direct sales. ➞ Focus on high margin products including turn-key solutions such as our Embedded Racebook into new markets. ➞ Leverage recent Sportingtech partnership for growth in Latin America. ➞ Integrate RACELAB form and content with Next Gen solutions to drive end user engagement and revenue; continue to renew and acquire new clients for Form & Content solutions with expanded RACELAB features. ➞ Deliver growth in New Jersey fixed odds via agreement with Bet365. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. GLOBAL TOTE ➞ Deploy contracted large-scale solutions for Norway and Chile. ➞ Complete full move into the cloud for all Global Tote related services not restricted by regulation. ➞ Complete the consolidation of tote wagering platforms globally and the global deployment of new client-facing service portal and consolidated service delivery function. ➞ Scale up Selangor Turf Club offering to include digital wagering and international commingling. ➞ Integrate RACELAB form and content assets into Global Tote’s ADW wagering platforms. FY24 FULL-YEAR RESULTS | 22 BUSINESS STRATEGY & OUTLOOK GLOBAL TOTE CASE STUDY – NORWAY ______ BetMakers was awarded a ten-year technology and services contract with Norsk Rikstoto. EXCLUSIVE CONTRACT WITH SOLE OPERATOR IN NORWAY ➞ ➞ ➞ ➞ Norsk Rikstoto is the sole purveyor of betting on horse racing in Norway. 10 Year Agreement with up to five one year extensions. Covering all thoroughbred and harness wagering in Norway. Product slated to go live in Q2 FY25 after a lengthy development and customisation phase which adds new features and functionality to Quantum™ that will become part of the global Quantum™ product suite and be available to new markets. FULLY MANAGED SaaS SOLUTION ➞ ➞ ➞ Global Tote’s Quantum™ solution to replace Norsk Rikstoto’s current pari-mutuel system. Integration of the Quantum™ solution with existing Norsk Rikstoto web, mobile and terminal platforms. Expected to increase user satisfaction, increase connectivity to other territories and provide deeper wagering insights through data collection. STRONG MARGIN PROFILE ➞ ➞ © 2024 BetMakers Technology Group Limited. Confidential & proprietary. Contract is expected to deliver higher incremental gross margins (BetMakers’ FY24 Gross Margin - 60%). Roll out of new Global Tote support portal to deliver service from newly centralised support operation. FY24 FULL-YEAR RESULTS | 23 APPENDIX SUSTAINABILITY INITIATIVES ______ Guided by the key pillars of our Sustainability Strategy, BetMakers is dedicated to leaving a lasting impact on our people, our customers, and the community. Social ➞ Diversity Targets: ○ The BetMakers Board has achieved a gender composition ratio of 50% female to male. ○ The gender composition of the Senior Leadership team has improved by 6% in FY24. ➞ Employee Engagement: BetMakers achieved an overall employee engagement score (eNPS) of 77% in the latest May 2024 survey. ➞ In FY24, BetMakers expanded upon our charitable initiatives program, by introducing new partnerships and increasing the uptake of employee paid volunteer hours by 130%. Governance ➞ Responsible Gaming (RG): ○ BetMakers promotes the importance of RG by prioritising and integrating responsible RG products and features into our solutions. ○ In FY24, BetMakers has expanded on RG training for employees by introducing bi-annual training for all customer facing employees globally. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 24 SUMMARY OF FY24 TECHNOLOGY HIGHLIGHTS ______ Next Gen’s features and architecture positions the Company to transform its operations and improve margins. FINAL STAGES OF NEXT GEN DEVELOPMENT INVESTMENT IN CORE DATA AND INFRASTRUCTURE ➞ Development of Next Gen technology platform component is progressing well. ➞ Launch of a material upgrade to flagship Price Manager product delivers enhancements to customers and the migration from legacy solution will produce additional cost savings. ➞ Expected to go live with new Embedded Solution and Platform customers within Q1 of FY25. ➞ Expected to deliver improved infrastructure and operating efficiencies, whilst offering customers increased speed, a feature-rich user experience, and critical tools for user engagement and retention. CLOUD AND OPERATING EFFICIENCIES ➞ OneWatch terminal monitoring solution deployment and hardware updates driving significant improvements in service costs and customer satisfaction. ➞ Completed development of new DeltaFusor horse racing data integration platform to streamline data services and provide a more robust, scalable solution than the legacy system it replaced. ➞ Further cloud and operating efficiencies as a result of the finalisation of the betr Agreement. ➞ FY25 cost efficiencies in cloud services expected to continue with Next Gen’s multi-tenant architecture. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 25 DISCLAIMER ______ This shareholder update is dated 30 August 2024. The material contained in this document is a presentation of general information about the activities of BetMakers Technology Group Limited (the Company or BET) as at the date of this update. All monetary figures quoted within this document are in Australian dollars ($AUD) unless otherwise specified. The document is not a prospectus, product disclosure statement or other offer document under Australian law or any other law. The information is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes, as it does not take into account your investment objectives, financial position or needs and does not include all information which an investor may require to assess the performance, risks, prospects or financial position of the Company. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate. To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of this material is accepted by the Company, including any of its related bodies corporate. This update contains “forward-looking statements”. These can often be identified by the use of certain words such as “may”, “should”, ”anticipate”, “believe”, “intend”, “estimate” and “expect”. However, any statements which are not based on historic or current facts may be forward-looking statements. Forward-looking statements are based on assumptions regarding the Company’s financial position, business strategies, plans and objectives of management for future operations and development and the environment in which the Company will operate; and current views, expectations and beliefs as at the date they are expressed, and which are subject to various risks and uncertainties. The forward-looking statements contained within the update are not guarantees or assurances of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by the forward-looking statements. For example, the factors that are likely to affect the results of the Company include: general economic conditions in Australia and globally; exchange rates; competition in the markets in which the Company does, and will, operate; conduct of contracted counter parties; whether and climate conditions; and the inherent regulatory risks in the businesses of the C