Bragg Gaming : Fourth Quarter 2023 Presentation

Fourth Quarter & Full Year 2023

Results Presentation

March 2024

NASDAQ: BRAG | TSX: BRAG

Forward Looking Statements

This presentation contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") which are based upon Bragg Gaming Group Inc.'s (the "Bragg") current internal expectations, estimates, projections, assumptions and beliefs which are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond Bragg's control and many of which are subject to change. Such forward-looking information may include information regarding Bragg's financial position, business strategy, growth strategies, the status of currently planned acquisitions, addressable markets, budgets, operations, financial results, financial targets and expansion plans. In some cases, such statements can be identified by the use of forward-looking terminology such as "expect", "likely", "may", "will", "should", "would", "intend", or "anticipate", "potential", "proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of historical fact.

Although Bragg believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Bragg is unable to guarantee future results, levels of activity, performance or achievements and investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. Moreover, neither Bragg nor any other person assumes responsibility for the outcome of the forward-looking statements. Many of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this presentation are beyond the control of Bragg. The risks and other factors include, but are not limited to: regulatory landscape and potential regulatory changes in significant jurisdictions in which Bragg operates or plans to operate; concentrated customer base accounts for significant portion of revenues of Bragg; the impact of regulatory changes in Germany after July 1, 2021; competition and changes in the competitive landscape; reliance on top customers and key personnel and employees; the completion of strategic acquisitions by Bragg and management of growth; reliance on strategic alliances and relationships with third party network infrastructure developers, key suppliers, and service platform vendors; new business areas and geographic markets; legal status of real-money gaming and changes to and interpretations of laws and regulations; intrusion or other security breaches, cyberattacks, or cybercrime; the costs and potential impact of obtaining all necessary regulatory approvals, and complying with existing and proposed laws in a heavily regulated industry; the plans, costs, and timing for future research and development of Bragg's current and future technologies, including additional platforms; deriving revenue from players located in jurisdictions in which Bragg does not hold a license, and the impact of customers' operations in unregulated or prohibited jurisdictions; projections of market prices and costs; expected revenues and the ability to attain profitability; expectations regarding the ability to raise capital on acceptable terms; access to payment processors and currency, exchange and interest rates; Bragg's management and protection of intellectual property and other proprietary rights; changes in, or in the interpretation of, legislation with respect to Bragg's tax liabilities and changes in taxation regimes; prices and price volatility of Bragg's products; money laundering and fraudulent activity; disruptions to markets, economic activity, financing, and supply chains, and a deterioration of general economic conditions. Readers are cautioned that the foregoing list of such risks and factors is not exhaustive and that additional information on these and other factors that could affect the Company's operations or financial results are contained in Bragg's documents filed under its profile atwww.sedarplus.ca, including Bragg's Annual Information Form for the year ended December 31, 2023 and Management's Discussion and Analysis for the year ended December 31, 2023 (the "Annual MD&A").

The forward-looking statements set forth herein reflect Bragg's expectations as at the date of this presentation and is subject to change after such date. Bragg disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law. Forward-looking information and other information contained herein concerning management's general expectations concerning the gaming industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which management believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While management is not aware of any misstatements regarding any industry data presented herein, industry data is subject to change based on various factors.

Non-IFRS Measures

This presentation makes reference to certain non-IFRS measures, including Adjusted EBITDA and EBITDA. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures and metrics are used to provide investors with supplemental measures of Bragg's operating performance and liquidity and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. Bragg also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures, including industry metrics, in the evaluation of companies in our industry. Management also uses non-IFRS measures and industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation. See related disclosure in Bragg's Annual MD&A (including under the heading "Limitations of Key Metrics and Other Data").

Table of Contents

• • Company Overview

• • Operational Highlights

• • Financials

• • Commentary on Strategy & Operations

• • Outlook & Summary

Bragg Company Overview

Award-winning global supplier of casino games, technology and services to the iGaming industry

Operational Highlights

Key Company Milestones in 2023

Fourth Quarter & Full Year 2023 Financial Results

4Q23 & FY23 Financial Highlights

• • 4Q23 revenue decreased by 1.4% to EUR 23.4m reflecting revised commercial terms with a key strategic partner. Full year growth of 10.4% reaching EUR 93.5m

• • 4Q23 wagering generated via Bragg's proprietary, third party and aggregated content increased by 18.1% to EUR 6.1b with full year growth of 26.6% to EUR 22.4b

• • 4Q23 gross profit decreased by 7.3% to EUR 12.0m with margins decreased to 51.5%. Full year gross profit growth of 10.8% reaching EUR 49.9m with margins rising to 53.4%

• • 4Q23 adjusted EBITDA decreased by 23.7% to EUR 2.8m with margins decreased to 11.9%. Full year adjusted EBITDA growth of 26.3% to EUR 15.2m with margins rising to 16.3%

• • Cash balance of EUR 8.8m with a positive net working capital position

• • FY24 revenue guidance: EUR 102-109 million

• • FY24 AEBIDTA guidance: EUR 15.2-18.5 million

Historical Financial Overview

Revenue (EUR,m)

20.9

20.8

19.4

1Q22

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

2Q22

3Q22

4Q22

1Q23

2Q23

Gross Profit (EUR,m)

3Q23

3Q23

Wagering (EUR,b)

4.6

3.8

4.1

4Q23

1Q22

60.0%

5.0

4.5

55.0%

4.0

50.0%

3.5

3.0

45.0%

2.5

2.0

40.0%

1.5

35.0%

1.0

30.0%

0.5 -

2Q22

3Q22

4Q22

1Q23

2Q23

Adjusted EBITDA (EUR,m)

3Q23

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

4Q23

4Q22

4Q23

25%

23%

21%

19%

17%

15%

13%

11%

9%

7%

5%

1Q22

2Q22

3Q22

1Q23

2Q23

3Q23

4Q23

Fourth Quarter 2023 Product Mix

4Q23 Gross Profit Margins

• • Full year gross profit increased by 10.8% to EUR 49.9m with margins rising by 20bps to 53.4%.

• • 4Q23 seen a decline both in gross profit of 7.3% to EUR 12.0 and margins drop to 51.5% due to revised commercial terms agreed with key strategic partner that been reflected in the quarter derived from the managed services and aggregation products

• • In 4Q23 total games and content revenue segment amounted to EUR 18.2m and represented 77.8% of total revenue (4Q22: EUR 18.0m and 76.0%)

• • Proprietary content deployment is positively progressing both in U.S. and EU markets by increasing distribution and games performance constantly

• • Bragg is expecting an improvement in gross profit margin to take place in FY25 by increasing its higher margins revenue portion of its proprietary content, PAM and turnkey solutions

Product Mix Continues to Evolve

100%

-1.4% Revenue 4Q22 v 3Q23

3.5% Revenue 4Q23 v 3Q23

19.4m

20.8m

20.9m

23.7m

22.9m

24.7m

22.6m

23.4m

50% 40% 30% 20% 10% 0%

80%

60%

90%

70%

4Q22

1Q22

2Q22

PAM & Turnkey

Aggregated 3rd Party

3Q22

1Q23

Exclusive 3rd Party

Proprietary Content

2Q23

3Q23

4Q23

Gross Profit Margins

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Full Year 2023 Adjusted EBITDA Reconciliation

Reconciliation Operating Loss to Adj. EBITDA

Year ended December, 31

EUR 000

2023 2022

Operating Loss

(777) (828)

• (1) Depreciation and amortization EBITDA

  13,067 8,454

  12,290 7,626

  Depreciation of right-of-use assets Lease interest expense

  (579) (230)

  (65) (19)

• (2) Share based compensation Transaction and acquisition costs

  2,055 3,773

  - 905

• (3) Exceptional costs

  1,643 824

  Loss on remeasurement of derivative liability Gain on settlement of convertible debt

  47 (13)

• (4) (Gain) loss on remeasurement of deferred consideration

Adjusted EBITDA*

(595) 440 15,236

- (804) 12,062

• (1) Depreciation and amortization: the increase was as a results of the Spin acquisition in June 2022, increased level of investment in software development and a change in useful life of customer relationship

• (2) Share based compensation: the charge for awards granted during the period composed of DSUs, RSUs and options. During the period, a one-off charge of EUR 0.4m relating to discontinued contractual relationship of employees was incurred.

• (3) Exceptional costs: costs mainly associated with the discontinued contractual relationship of employees in the total value of EUR 1.3m

• (4) (Gain) loss on remeasurement of deferred consideration: mainly associated with the acquisition of Spin in June 2022 on the total outstanding deferred liability that was adjusted to reflect the change in the current fair value.

* Adjusted EBITDA excludes income or expenses that relate to exceptional items and non-cash share-based charges and includes deductions for lease expenses that are recognized as part of depreciation and finance charges under IFRS 16.

Working Capital and Balance Sheet

Balance Sheet and Net Working Capital

EUR 000

As at December 31, 2023

As at December 31, 2022

Cash Flow and Financial Resources

EUR 000

Cash and cash equivalents Trade and other receivables Prepaid expenses and other assets

Current liabilities excluding deferred consideration and convertible debt

8,796 11,287 Operating activities

18,641 16,628

1,655 1,823

(23,943) (23,131)

Net working capital Convertible debt - current Deferred consideration

5,149 (2,445) (1,513)

6,607 - (1,176)

Net current assets

1,181

5,431

Balance Sheet and Cash Position

• • Balance sheet with EUR 8.8m cash and USD 4.0m convertible debt facility at end of the period. (As of March 26, 2024, total outstanding liability is further reduced to USD 2.5m)

• • Projected positive free cash flow from operational activities

• • No capex or technology debt needs

Investing activities

Financing activities

Year ended December 31

2023

2022

11,739 5,753

(9,723) (16,873)

(4,166) 6,897

Effect of foreign exchange Net cash flow

(341) (496)

(2,491)

(4,719)

Operating Activities

• • Cash generated from operation of EUR 13.6m (2022: EUR 10.7m) offset by movement in working capital and income tax payments of EUR 1.9m (2022: EUR 4.9m)

Investment Activities

• • EUR 8.7 (2022: EUR 6.7m) investment in intangible assets related to the capitalisation of software development costs in the period and EUR 0.6 (2022: EUR 0.7m) to other intangible assets. FY2022 included a total of EUR 9.0m relating to the consideration paid for Spin gaming upon business combination .

Financing Activities

• • EUR 3.7m for the repayment of convertible debt (2022: net proceeds of EUR 8.1m) and EUR 0.9m (2022: EUR 1.2m) for other loan, leases and related interest and financing charges. FY2023 included EUR 0.4m proceeds from exercise of stock options.

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