“LeoVegas is leading the way into the mobile future”€¦ · Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q4...

“ LeoVegas is leading the way into the mobile future”

– GIQ Gaming Intelligence Magazine

Annual Report 2014

The greatest gaming experience – number one in mobile casino

Contents4 2014 in brief

8 The LeoVegas story

10 Market overview

12 About the company

14 Board of directors

16 Directors’ report

18 Two-year review

19 Consolidated statement of com-prehensive income

20 Consolidated statement of financial position

21 Consolidated statement of changes in equity

22 Consolidated cash flow statement

23 Parent company statement of comprehensive income

24 Parent company statement of financial position

26 Parent company condensed state-ment of changes in equity

27 Parent company cash flow state-ment

28 Notes, common to both the parent company and Group

38 Auditor’s report

LeoVegas AB, the parent company of the Group,

invests in and manages companies with opera-

tions in mobile and online gaming and related

technolgy development. LeoVegas AB does not

con duct any gaming operations of its own.

In this annual report, for the sake of simplicity,

“LeoVegas” or “the company” is consistently

used to describe the Group’s gaming operations

and technology.

2014 in brief

190million euro

Deposits from start up until 31 December 2014

100Number of employees as of 31 December 2014

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132%Growth in revenues 2014

37,9 million euro

Revenues full year 2014

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Award-winning innovation

LeoVegas winner of “Mobile Casino Product of the Year” – EGR Operator Awards 2014

LeoVegas winner of “Slots App of the Year” – Gaming App Awards 2014

LeoVegas winner of “Innovation in Mobile and Tablet” – EGR Innovation Awards 2014

LeoVegas winner of “Honorary Award” – InternetWorld Top-100, 2014

LeoVegas winner of “Best Innovation in Casino” – EGR Innovation Awards 2013

On the EGR Power 50 list of the most influential gaming operators, LeoVegas ranks no. 1 in mobile.

Innovation in casino

W I N N E R

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Explosive growth

million euro

Q1 Q1 Q1201420132012

Q2 Q2 Q2Q3 Q3 Q3Q4 Q4 Q4

Q4 12.97

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Mobile changed everything– the LeoVegas story

Time flies when you’re having funTime has flown by since that spring evening in May 2011, when the concept of the mobile gaming company Leo-Vegas was born. When other companies considered mobile gaming to be online gaming on a smaller screen, LeoVegas saw a completely new world. With the evo-lution of the iPhone and other smartphones, the media landscape changed radically. The fun and playfulness in mobile usage paved the way.

“Our idea and vision are as relevant today as when we started out: LeoVegas is to create the greatest mobile gaming experience and be number one in mobile casino,” explains Robin Ramm-Ericson.

In record time, the company has established itself as the market leader with an explosive growth rate, tech-nological leadership and attractive partnerships with gaming studios and media companies. In January 2015 LeoVegas took mobile gaming to a new level, setting a new world record for the largest single win on a mobile device ever – EUR 5.6m.

The name LeoVegas originates from Leo, Latin for lion, evoking feelings of strength, confidence and royalty, and Vegas, which of course refers to Las Vegas – the city of dreams and grand entertainment. LeoVegas’ insight that the touch function of new smartphones provided closer interaction and playfulness, enabling completely new experiences, put Las Vegas into the palm of one’s hand.

“Innovation and our ’mobile first’ mentality in everything we do are at the core of LeoVegas”, says Gustaf Hagman.

A fantastic hardworking team On 12 January 2012 LeoVegas was launched simultane-ously for mobile, tablet and PC. Just an hour later, the big-gest mobile advertising campaign to date in the Nordics was rolled out.

“Our fantastic team worked on Christmas Eve, New Year’s Eve and countless nights to make the powerful launch happen. From the very start, it was full steam ahead” continues Robin Ramm-Ericson.

It would soon become clear that the technology excelled, customers flowed in and a growing number of people were finding something completely new and exciting in LeoVegas. For the team, however, this was only the first step and further innovation was the way forward.

“Three months after our launch, all our competitors had gone live with their mobile solutions. Yet, if our head-start was ten weeks back then, it has now accelerated to at least ten months. We have no plans to slow down,” comments Gustaf Hagman.

Many have wondered what will happen when other larger companies embark on mobile initiatives, but the truth is that they have all invested heavily in their mobile product for many years now, without this limiting Leo-Vegas’ growth curves.

In three years, LeoVegas has grown from an unknown brand with zero customers to one of the leading mobile gaming companies in Europe and the market leader in mobile casino. Through strong customer acquisition, an exceptional growth rate and constant innovation, LeoVegas has proven itself as a front-runner in the mobile revolution. With the industry’s most prestigious awards under its belt, the LeoVegas team continues to take the gaming experience to next level. Meet the two founders, Gustaf Hagman and Robin Ramm-Ericson.

“ We are determined to be at the forefront as mobile revolutionizes the world”

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The mobile gaming revolutionSmartphone users worldwide are enjoying explosive growth, amounting to over 2bn today. We stopped seeing mobile phones as merely phones a long time ago. They are now a crucial part of our lives, both professionally and privately. We are using our mobiles increasingly often – on average every fifth minute during waking hours. Today, mobiles are our main channel for entertainment. Sweden is at the cutting edge with global gaming icons such as Candy Crush Saga (King.com) and Minecraft (Mojang). Like these success stories, LeoVegas’ rapid growth emerges from its ability to build close customer rela-tionships, drive innovation and advance the standard of mobile entertainment.

“Of our new customers, many have played mobile games before, but never casino. We are seeing increased interest from these new customer segments. Playfulness, simplicity and entertainment in the mobile pave the way. It is clear that a growing number of people also want to experience what winning for real is like, which they can do on LeoVegas, unlike many other popular mobile games,” explains Gustaf Hagman.

Playfulness is key to LeoVegas’ offering. Our philoso-phy is that it must be fun for everybody and responsible gaming is a fundamental principle throughout. This mat-ter is taken very seriously indeed by LeoVegas, which has been clear since the start – a happy, healthy and respon-sible attitude to gaming characterize the entire operation.

Mobile DNAWith a hand-picked team of developers united by their passion for leading the mobile gaming experience, Leo-Vegas creates revolutionary technology in mobile gaming and strives for a “wow factor” that constantly overshoots expectations. For LeoVegas, “mobile first” is not just a strat-egy, but part of its DNA. Data, measurability and innova-tive marketing enable LeoVegas to cut through the media noise effectively and attract a growing number of new and returning customers. The company’s own customer surveys show that practically everybody would gladly recommend LeoVegas to a friend. Such a testimonial speaks for itself.

“Quality never goes out of fashion. Although we operate in a rapidly evolving market, we have prioritised ensuring high quality in everything we do from technol-ogy, marketing and customer experience, to organisation, financial planning and Board work,” comments Robin Ramm-Ericson.

LeoVegas will continue to spearhead developments2014 was a fantastic year for LeoVegas in many respects. Revenues grew 132% and the Group was profitable. The company was commended with several international awards, such as “Innovation in Mobile and Tablet of the Year” and “Mobile Casino Product of the Year” at the prestigious EGR Awards. At the same time, financing of EUR 11.3m was secured to invest in growth and innovation.

Just three years have passed since the birth of LeoVe-gas. Today, the company has over 100 employees united around the original vision to create the greatest mobile gaming experience.

“Our journey has only just begun. We are determined to be at the forefront as mobile revolutionizes the world” conclude the two founders.

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Market overview

1. The mobile is turning into the primary entertainment deviceThe number of smartphone users worldwide is under-going explosive growth, amounting to just over 2bn today. In the past year alone, just over 1.2bn smartphones were sold worldwide1 – an increase of just under a third compared with the year before. But, it’s not just the number of users that is on the rise. We are increasingly using our phones in fundamentally new ways. The most ground-breaking change is not accessibility, however,but

the fact that the mobile has made a rapid transition from a traditional communication channel to an entertain-ment device. When Google studied what mobile users value most in their smartphones, traditional phone calls only made it to fourth place. Topping the list instead was entertainment, followed by other communication/social media and news monitoring. Around 1.5bn people globally have tested gaming on their mobile or tablet, of which, one third, have put money into it – a share that is rapidly increasing.2 In the US alone, the mobile entertainment

Mobile devices are revolutionising the world. Neither TVs nor PCs are at the core of the entertainment industry of the future. Instead, people hold their individual entertainment devices in the palm of their hands. There are tremen-dous opportunities in the evolving media landscape. In a short space of time, LeoVegas has established itself as the market-leading mobile gaming com-pany with focus on casino, and is now strategically positioned to meet needs and capitalise on the opportunities that follow from three global megatrends.

The mobile is evolving from being primarily a communication device

Casino is moving away from being a niche product

Offline Gaming

Online Gaming

The mobile is turning into the primary entertainmnet device

Mobile casino is turning into a mass market product

Online Gaming

Mobile Gaming

Megatrends

1

2

3

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market amounted to almost USD 10bn in 2014, 57% of which was gaming entertainment3. And, revenues from gaming entertainment increased by just over 50% from 20134. Surveys5 show that we use our phones for three hours a day on average, or every fifth minute during wak-ing hours. This increased usage naturally fuels both sup-ply and demand for mobile services and entertainment, but also imposes greater demands on speed, user-friend-liness, service level and continuous innovation.

In this new world, with the mobile as the primary enter-tainment device, almost everything is measurable. We are spending an increasing amount of time and money on different types of mobile recreation such as music, films, news, games, blogs or social media – behaviour that can also be monitored and better understood through data. This means that suppliers of such services compete for the same narrow window of time, and capturing attention through the tremendous din of the media is a constant challenge. Those wishing to reach their target groups must have unique knowledge about user behaviour and an ability to adapt their offering. Investment in and knowl-edge about ad-tech will therefore form a strategic suc-cess factor in the digital market landscape. Data-driven methodology and innovative advertising formats lay the foundation for LeoVegas’ marketing efficiency.

2. Gaming offline going online and gaming online going mobileThe global casino gaming market has an estimated annual turnover of EUR 131bn6 – a mighty figure in the enter-tainment industry. The offline market is still dominant with estimates of around 95% of turnover globally and around 85% in Europe. That said, online-based games are undergoing rapid growth, with estimates of over 13% at the European market in 2014, and the transition of gaming from offline to online is undergoing long-term, strong, structural change that presents online gam-ing entities with great opportunities. Within the online gaming industry in general, casino games make up both the fastest-growing segment when compared to sports betting, poker and bingo and the segment that, alongside lotteries, has the highest profitability.

The trend of gaming moving online is strong. Even stronger is the trend of online gaming shifting from PCs to mobiles. Within three to four years, mobile gaming is expected to surpass PC gaming in terms of reve-nues. Many believe that mobile gaming is mainly about increased accessibility and mobility, but it turns out that the majority of usage, rather than being on the move, actually takes place at home and in other environments where a TV or stationary PC is available. It is, quite simply, more fun to play on a mobile. People play more frequently – albeit for shorter spells of time – than on PCs. Demands are also higher, however. Users demand a faster, more intuitive and cleaner solution. While competing gaming companies adapted their gaming services from PC to mobile, often based on the perception that mobile gam-

ing is like online gaming on a smaller screen, LeoVegas saw a completely new world of possibilities within the mobile gaming experience. Basing the development pro-cess on mobile-first is not just a strategy – it’s part of the company’s DNA.

3. Casino is making the transition from niche product to mass market product

Some service segments serve as an engine in the new mobile behaviour – social media, multimedia, e-commerce and games. Measured in revenues that pass through the App Store and Google Play, the biggest application down-load platforms, however, games are by far the biggest category, accounting for more than half of revenues. This is entirely in line with the traditional gaming market which has historically always been highly profitable. Besides Swedish mega successes such as Minecraft and Candy Crush Saga, or Finland’s Angry Birds, a growing num-ber of people are finding their way to traditional casino games. Many of LeoVegas’ customers have played other mobile games before, but never casino. This means that the pleasure and entertainment in LeoVegas’ offering probably make up its strongest attraction. The strength-ening trend – that mobile casino is rapidly making the transition towards being a mass market product – is thus driven by the increased opportunities presented by the mobile in the form of accessibility and entertainment value. Moreover, large groups of other types of mobile gamers are testing and then continuing to play mobile casino. Unlike many other popular mobile games, on a mobile casino you can win for real. All forecasts indicate that the mobile casino market will grow very strongly in the next few years.

1 Gartner Group, March 20152 Newzoo Mobile Gaming Trend Report, December 20143 SNL Kagan research report, January 20154 Newzoo Mobile Gaming Trend Report, December 20145 Ericsson mobility report, November 20146 H2 Gaming Capital, January 2015

1st

4th

Entertainment

Phone calls

2nd Other communication/social media

3rd News monitoring

Current function of the mobile

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The mobile gaming company LeoVegas

Market leader in mobile casino LeoVegas was created for mobile. When other believed that mobile gaming was online gaming on a smaller screen, LeoVegas saw opportunities for a new level of gaming experience. Starting with a fast, intuitive and fun user experience based on solid, cutting-edge technology, Leo-Vegas created the market’s most exciting mobile casino. The company quickly established itself as the category leader, assuming a pole position in the mobile gaming race and consequently has recieved a series of prestigious awards. The company has been commended for its inno-vation both in Sweden and internationally. In 2014 LeoVe-gas was named “the most influential gaming operator for mobile” by reputed industry body EGR (e-Gaming Review).

LeoVegas endeavours to maintain a leading position in the mobile revolution by continuing to offer a unique gaming experience, constant innovation and the most user-friendly product on the market. LeoVegas’ in-house developed technology leads the way.

LeoVegas also offers the broadest and most prominent range of mobile casino games. The games are devel-oped by or together with the market’s most prominent gaming studios. Thanks to its leading position, LeoVegas is offered both favourable strategic terms of cooperation and exclusive advance launches of new games. LeoVegas has, in mobile casino, successfully positioned itself as “always first with the latest”.

Unique ability to attract and retain customersThanks to an entertaining, fast and intuitive gaming expe-rience, also supported by innovative marketing, a growing number of people are gravitating towards LeoVegas. With the establishment of a strong brand as a basis, the com-pany has attracted new customers through a consistent marketing concept that, just like the company’s service, is entertaining, efficient and measurable. In particular, digital advertising in mobile has taken measurability to an entirely new level in terms of user preferences, navigation patterns and habits. This has provided LeoVegas with

unique user data and know-how which forms the basis for constant renewal. The company was early to invest in ad-tech. Furthermore, innovative advertising formats and collaboration with leading media companies have been key to the company’s expansion.

Strong customer loyalty is shown most clearly through cohort analysis. This is a result of the entertainment value and the company’s constant development of its offer-ing, and also a high level of service with 24/7 customer support. For LeoVegas, having extremely short support response times and the fastest winnings payouts comes natural. LeoVegas builds on long-term relationships and an enjoyable gaming experience for all mobile users.

Time and time again, LeoVegas demonstrates its ability to think out of the box and strategically in its marketing. A typical example is when the company, in September 2014, generated a great deal of attention at Apple’s launch of the iPhone 6 in Europe on Regent Street in London, where a LeoVegas customer won Europe’s first iPhone 6.

Strong concept for continuing geographic expansionWhen LeoVegas was launched in January 2012 the com-pany focused primarily on the Nordics, which has exten-sive smartphone usage and high broadband penetration. In the autumn of 2014 an initiative commenced on the newly regulated UK gaming market, where the company obtained a gaming licence. LeoVegas is on its way to establishing itself as “King of Mobile Casino” in the UK.

Further expansion to new markets lies ahead. The overarching strategy is to launch LeoVegas on markets that are already regulated, or which are in the process of becoming regulated locally. Although local regulation and gaming licences entail increased gaming tax and hence a reduced gross margin for the gaming operator, the com-pany believes that the benefits of regulation outweigh the costs. In the long term, regulation means a reduced legal risk as well as greater marketing opportunities. In addi-tion, it is likely that growth opportunities in certain mar-kets will increase substantially upon regulation. LeoVegas

LeoVegas has, in a short space of time, established itself as an m-commerce sensation with an internationally leading position in mobile casino. With cut-ting-edge technology, focus on the mobile user and constant innovation, the company has revolutionised the consumption of gaming entertainment. Since its launch in January 2012, LeoVegas has exhibited explosive growth.

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welcomes simple and predictable rules and feels great confidence in the ability to act efficiently, and to benefit from the company’s mobile leadership on new markets.

Explosive growth and a scalable business model Since launch in January 2012 LeoVegas has enjoyed explosive growth with customer deposits exceeding EUR 190m as of 31 December 2014 – an achievement very few m-commerce entities globally have managed in such a short space of time. LeoVegas currently employs more than 125 people and has offices in Malta (over 100 employ-ees), Sweden and the UK. The Group’s technological devel-opment takes place in Sweden, while all gaming operations take place from Malta.

Revenue growth in 2014 was 132%. The company has an active growth strategy with an equal focus on retaining existing customers and attracting new ones. Despite strong expansion, substantial marketing initiatives and a sharp increase in the number of staff, in 2014 the company exhibited profitability and clear scalability in the business model.

Responsible gamingMobile gaming is fun, and should be fun for everyone. That said, some people could encounter problems related to their gaming. LeoVegas takes this very seriously indeed, and responsible gaming is a natural basis in everything the company does, which ultimately pro-vides a more positive customer experience and longer customer relationships – a win-win situation for customers and the company.

Responsible gaming is a key element in LeoVegas’ offer-ing and organisational culture, and has been since the start. Empowerment of customers and the tools offered for automatic gaming limitation have been success fac-tors for the company, for example:

1 Tool for individuals to automatically limit gaming time or monetary transactions

2 Tool to quickly and simply block an account or cut oneself off entirely if the gaming risks turning into a problem

3 Tools for users or relatives affected by gaming issues that also provide contact with expert organisations

Besides tools for players, LeoVegas works internally with responsible gaming as part of its corporate culture. For example, the company has chosen not to offer staff bonuses based on customers’ gaming volumes. In addi-tion, training courses are held for staff on how to prevent gaming-related problems, and also on how relationships with customers can be further improved. LeoVegas is adamant in its efforts to constantly work with engage-ment and responsibility for a positive and safe gaming experience for everybody.

innovation + data = performance

Marketing model

2

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Board of directors

Name/titleYear of birth Previous experience/other assignments Shareholding

Robin Ramm-Ericson Founder & Chairman of the board

1975 Previous experience: Nordic manager Neteller & Optimal Payments ltd, CEO Payson AB, Product Development ATG.

202,014

Gustaf Hagman Founder &board member

1974 Previous experience: CEO Net Gaming AB (publ.), CEO Eurobet Nordic Ltd, Nordic Head Call Entertain-ment / Call TV.

203,500

Patrik Rosén Board member

1967 Other assignments: CEO and partner Aggregate Media Funds

252,778 (through Aggregate

Media Fund V)

Mårten Forste Board member

1971 Other assignments:Nordic manager Match.com

9,500

Anders Fast Deputy board member

1968 Other assignments:Partner Baker & McKenzie

0

Patrik Rosén

Robin Ramm-Ericson

Mårten Forste

Gustaf Hagman

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LeoVegas – always first with the latest

1 5A N N U A L R E P O R T 2 0 1 4

Directors’ report

The Group’s operations focus on mobile gaming. The par-ent company, LeoVegas AB (publ), registered in Sweden, invests in and manages companies within gaming oper-ations and related technology development. The parent company does not conduct any gaming operations of its own. The gaming services of the Group are being offered through collaboration with partners and the products of the Malta-based subsidiaries.

In this annual report, for the sake of simplicity, “LeoVe-gas” is consistently used to describe the Group’s gaming operations. This refers to the Maltese subsidiaries’ gaming operations which, in 2014, were conducted through Euro-pean gaming licenses in Malta and in the UK.

The business concept behind LeoVegas is to create the leading mobile gaming experience. Thanks to technology developed in-house, LeoVegas can offer the market’s fastest and most user friendly mobile casino. The Group’s strategy is to launch LeoVegas on markets that are already regulated, or which are in the process of becom-ing regulated.

Consolidated revenues and profitConsolidated revenues were EUR 37.9m (16.3), an increase of 132%. Gross profit was EUR 29.3m (11.3), an increase of 159%. Operating profit rose to EUR 1.9m (-0.4) and the operating margin was 5.1% (-2.7). Profit before tax rose to EUR 1.9m (-0.5) and profit amounted to EUR 1.7m (-0.5). Consolidated cash flow was EUR 14.4m (2.0). Cash flow without contribution from share issues was EUR 3.0m (0.1).

FinancingDuring the third quarter of the financial year ending 31 December 2014, the company underwent a process of raising capital, with SEB and GP Bullhound as their advisors. This resulted in a contribution of EUR 11.3m to the cash position before related costs. Three long-term institutional funds were added to the list of owners with around 60 new shareholders. A great number of existing shareholders and employees participated in the new share issue. During the course of raising the capital, the company gained exposure to professional investors in Stockholm and London.

The share and ownership structureFollowing the completed process of raising capital, there are 2,244,293 shares in LeoVegas AB. The largest share-holder is Aggregate Media Fund V KB with 11.3%. Follow-ing the raising of capital, there were 143 shareholders with only Aggregate Media Fund V KB owning more than 10%.

Employees At the end of the year, the Group had 105 employees including consultants working on a full-time basis for the Group. The average number of full-time employees during the year was 86 of which 67 were in Malta.

Other important events in 2014In connection with the regulation of the UK gaming market, LeoVegas applied for a licence to operate in that market. LeoVegas obtained the license during the finan-cial year ending 31 December 2014 ahead of the new rules coming into force.

Expected future performance The company does not provide any financial forecast. In the company’s opinion, the mobile gaming market in Europe presents further solid growth opportunities in the years to come. In 2015, the company maintains a steady growth strategy with an equal focus on retaining existing customers and attracting new ones.

Significant events after the end of the yearOn January 2015, the capital-raising process, which had been in progress during the autumn, was completed with the registration of the final shares.

In May 2015, the Group had more than 125 employees including consultants working full time for the Group.

Material risks and uncertaintiesIn most national markets, gaming is regulated by law and subject to a licence. LeoVegas conducts its operations under gaming licences in Malta and in the UK. Therefore, because the operations are subject to a licence, political decisions can affect LeoVegas’ operations.

The board of directors of LeoVegas AB, corporate identity number 556830-4033, domiciled in Stockholm, Sweden, hereby submits its annual financial statements and consolidated financial statements for the financial year ending 31 December 2014.

The results for the year and the financial position of the Group and of the parent company are set out in the Directors’ report, statement of financial position, state-ment of comprehensive income, statement of cash flows, statement of changes in equity and related notes and comments.

The presentation currency of the parent company and Group is the euro.

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In recent years, the online gaming market has seen a growing number of market entrants. A potential risk for LeoVegas is increased competition from new entrants, but also larger entities that position themselves ahead of forthcoming regulation on national markets in Europe.

Marketing is LeoVegas’ largest expense. Rapid changes to the price of marketing space could present LeoVegas with both a risk and an opportunity.

The Group’s operations are exposed to different cur-rencies on an ongoing basis. Exchange rate fluctuations affect the Group’s earnings. The Group works to reduce currency exposure through efficient liquidity manage-ment. However, the Group will remain exposed to future foreign exchange rate fluctuations.

The majority of the Group’s revenues are generated in the Nordic region. Regulatory changes on the gaming markets of the Nordic region could have both a positive and negative effect on the Group. Changes to marketing laws for gaming products could also affect the Group. Currently, it appears that there will be no changes to leg-islation on Nordic markets in the near future. The Group carefully monitors proposals for potential regulation on the European market.

The subsidiary Gears of Leo ABGears of Leo is a Group company that develops technical solutions behind LeoVegas’ leading gaming experience. In 2014, Gears of Leo concentrated on extending and developing its product portfolio. Investments were made in employees and software development. The number of employees grew from 10 at the beginning of the year to 24 at the end of year.

The parent company LeoVegas ABThe operations of the parent company, LeoVegas AB, are mainly focused on shareholding and group-wide manage-ment. The company provides and sells services relating to finance, communication, accounting and administration to other group companies. LeoVegas AB’s revenue is earned from interest income from loans due from subsidiaries and services provided to subsidiaries. This will not change in 2015. During the year, there was one employee.

On 1 January 2014, LeoVegas AB changed its pres-entation currency to EUR from SEK. The decision to change presentation currency was made at the AGM on 17 October 2013. Going forward, all companies in The Group will have the Euro. as their presentation currency. On 26 November the company held an EGM at which a decision was made to issue shares to a maximum number of 425,000 shares. In the issue, 309,390 new shares were registered. The price per share was EUR 36.5, which increased the cash position by EUR 11.3m. In December 2014, 120,000 new shares were also issued for from the 2011 and 2012 warrants programmes. This added EUR

630,550 to the cash position. The total number of out-standing shares at 31 December 2014 was 2,244,293.

During the Autumn of 2014 the secondary name of LeoVegas was registered.

In summer of 2015 the name was changed to LeoVegas AB from UniverseLeo AB.

Appropriation of profits The following profits of the parent company are at the disposal of the AGM:

Amounts in EUR:

Share premium reserve 11,450,736

Retained earnings 4,968,601

Profit for the year -171,681

Total 16,247,656

The board of directors propose that the entire amount of EUR 16,247,656 be carried forward.

Dividend policyThe dividend policy is not to issue any dividend in the current growth phase of the Group.

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Amounts are in thousands of EUR unless otherwise stated Group 2014 Group 2013

Income statement

Revenue 37,874 16,305

Gross profit 29,270 11,284

EBITDA 2,217 -292

EBIT 1,925 -435

Profit after tax 1,719 -478

Balance sheet

Intangible non-current assets 1,759 699

Property, plant and equipment 303 94

Current receivables 4,158 2,625

Cash and cash equivalents 16,854 2,437

Total assets 23,074 5,855

Equity 15,081 1,881

Non-current liabilities – 24

Current liabilities 7,993 3,950

Total equity and liabilities 23,074 5,855

Cash flow

Cash flow from operating activities 4,522 621

Cash flow used in investing activities -1,564 -542

Cash flow from financing activities 11,456 1,910

Total cash flow 14,417 1,989

Profitability and financial position

Gross margin % 77.3% 69.2%

EBITDA margin % 5.9% -1.8%

EBIT margin % 5.1% -2.7%

Return on equity % 62.4% -38.7%

Equity/assets ratio % 65.4% 32.1%

Quick ratio 262.9% 128.2%

Employees

Average number of employees 86 56

Two-year review

DefinitionsReturn on equity % – Profit after tax for the year divided by average equity during the year excluding the equity contribution from raising capital in December 2014.

EBIT (Earnings before interest and taxes) – Profit before financial income/expense and tax.

EBITDA (Earnings before interest, taxes, depreciation and amortisation) – Profit before depreciation/amortisation, financial income/expen-se and tax.

Quick ratio % – Current assets in relation to current liabilities.

Equity/assets ratio % – Equity at the end of the period as a percentage of the Statement of Financial Position total at the end of the year.

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Amounts in thousands of EUR Note 2014 2013

Net sales 4 36,992 16,065

Own work capitalised 5 646 240

Other revenue 236 –

Total revenue 37,874 16,305

Cost of sales -8,604 -5,021

Gross profit 29,270 11,284

Marketing expenses -19,211 -8,811

Other external expenses 6.7 -3,673 -1,188

Personnel expenses 8 -4,071 -1,637

Depreciation and amortisation 9 -292 -143

Other operating income – 60

Other operating expenses -98 –

Operating Profit/(Loss) 1,2,3 1,925 -435

Profit from financial income/expense

Other interest income and similar profit/loss items 11 3 2

Interest expense and similar profit/loss items 12 -2 -27

Profit after financial income/expense 1 -25

Profit/(Loss) before tax 1,926 -460

Tax 13 -207 -18

Profit/(Loss) for the year 1,719 -478

Earnings per share (EUR) 0.77 -0.26

Other comprehensive income, income and expense recognised directly in equity

Exchange rate differences in the translation to EUR as the presentation currency 0 -9

Other comprehensive income for the year 0 -9

Total comprehensive income for the year 1,719 -487

Comprehensive income per share (EUR) 0.77 -0.27

Consolidated statement of comprehensive income

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Consolidated statement of financial position

Amounts in thousands of EUR Note 31/12/2014 31/12/2013

ASSETS

Non-current assets

Property, plant and equipment 14 303 94

Intangible non-current assets 15 1,759 699

Total non-current assets 2,062 793

Current assets

Other receivables 18 3,810 2,534

Prepaid expenses and accrued income 19 348 91

Cash and cash equivalents 20 16,854 2,437

Total current assets 21,012 5,062

TOTAL ASSETS 23,074 5,855

EQUITY AND LIABILITIES

Equity

Share capital 21 24 20

Non-registered share capital 1 –

Other capital contributed 16,683 5,207

Retained earnings -1,627 -3,346

Total equity 15,081 1,881

Non-current liabilities

Other non-current liabilities 22 - 24

- 24

Current liabilities

Trade payables 2,848 1,440

Tax liabilities 392 18

Other liabilities 22 2,105 454

Accrued expenses and deferred income 23 2,648 2,038

7,993 3,950

TOTAL EQUITY AND LIABILITIES 23,074 5,855

PLEDGED ASSETS AND CONTINGENT LIABILITIES – GROUP


Pledged assets 24 None None

Contingent liabilities 24 None None

20 A N N U A L R E P O R T 2 0 1 4

Share

capitalNon-reg.

share capitalOther contr.

capital

Retained earnings inc.

profit for the year Total equity

Balance as at 1 January 2013 18 – 3,444 -2,875 587

Issue of share capital 2 – 2,030 – 2,032

Issue expenses – – -147 – -147

Translation difference in equity in change of pre-sentation currency – -120 16 -104

Loss for the year – – – -487 -487

Balance as at 31 December 2013 20 – 5,207 -3,346 1,881

Balance as at 1 January 2014 20 – 5,207 -3,346 1,881

Issue of share capital 4 – 10,717 – 10,721

New share issue in progress – 1 1,203 – 1,204

Issue expenses – – -469 – -469

Premium received for issued warrants – – 25 – 25

Profit for the year – – – 1,719 1,719

Balance as at 31 December 2014 24 1 16,683 -1,627 15,081

Consolidated statement of changes in equity

21A N N U A L R E P O R T 2 0 1 4


Cash flows from operating activities

Operating profit 1,925 -435

Adjustments for non-cash flow items

- Depreciation/amortisation of property, plant and equipment and intangible non-current assets.

292 143

Tax paid – -2

Interest received 3 2

Interest paid -2 -23

Cash flow from/(used in) operating activities before changes in working capital 2,218 -315

Cash flow from changes in working capital

Increase(-)/decrease(+) in operating receivables -1,372 -1,710

Increase(-)/decrease(+) in operating liabilities 3,676 2,646

Cash flow from operating activities 4,522 621

Cash flows from investing activities

Acquisition of property, plant and equipment -331 -96

Acquisition of intangible non-current assets 15 -1,230 -446

Cash flow used in investing activities -1,561 -542

Cash flows from financing activities

Issue of share capital 10,824 1,886

Issue of new shares upon redemption of warrants 632 –

Premium received for warrants – 24

Cash flow from financing activities 11,456 1,910

Net movement for the year 14,417 1,989

Cash and cash equivalents at beginning of year 2,437 556

Translation difference in translation to EUR – -108

Cash and cash equivalents at end of year 16,854 2,437

Consolidated cash flow statement

2 2 A N N U A L R E P O R T 2 0 1 4


Net sales 4 71 955

Own work capitalised 5 188

Other revenue – 42

Total revenue 71 1,185

OPERATING EXPENSES

Marketing expenses – -50

Other external expenses 6.7 -412 -334

Personnel expenses 8 -123 -750

Depreciation and amortisation 9 – -93

Other operating income – 128

Other operating expenses -8 –

Operating profit/(Loss) 1,2,3 -472 86

Profit from financial income/expense

Profit from participations in group companies 10 – -3

Other interest income and similar profit/loss items 11 300 244

Interest expense and similar profit/loss items 12 – -1

(Loss)/Profit after financial income/expense -172 326

Tax on profit for the year 13 – –

(Loss)/Profit for the year -172 326

Parent company Statement of Comprehensive income

2 3A N N U A L R E P O R T 2 0 1 4

Parent company Statement of Financial Position


ASSETS

Non-current assets

Financial assets

Participations in group companies 16 1 1

Non-current receivables from group companies 17.24 4,387 4,525

Total financial assets 4,388 4,526

Total non-current assets 4,388 4,526

Current assets

Current receivables

Receivables from group companies 17.24 299 183

Other receivables 18 46 29

Prepaid expenses and accrued income 19 – 13

Total current receivables 345 225

Cash and cash equivalents 20 11,800 352

Total current assets 12,145 577

TOTAL ASSETS 16,533 5,103

24 A N N U A L R E P O R T 2 0 1 4


EQUITY AND LIABILITIES

Equity

Restricted equity

Share capital 21 24 20

Non-registered share capital 1 –

25 20

Unrestricted equity

Share premium reserve 11,451 1,883

Translation reserve – -9

Retained earnings 4,969 2,744

Profit for the year -172 326

16,247 4,943

Total equity 16,272 4,963

Non-current liabilities

Liabilities to group companies 22 - 8

Other non-current liabilities 22 - 24

- 32

Current liabilities

Trade payables 118 8

Liabilities to group companies 8 –

Other liabilities 22 28 31

Accrued expenses and deferred income 23 107 69

261 108

TOTAL EQUITY AND LIABILITIES 16,533 5,103

PLEDGED ASSETS AND CONTINGENT LIABILITIES – PARENT COMPANY


Pledged assets 24 None None

Contingent liabilities 24 4,686 4,708

25A N N U A L R E P O R T 2 0 1 4

Sharecapital

Non-regis-tered

share capital

Share premium

reserveTranslation

reserve

Retained ear-nings inc. profit

for the year Total equity

Balance as at 1 January 2013 18 – 1,782 – 961 2,761

Appropriation of profits as decided at AGM – -1,782 – 1,782 –

Issue of share capital 2 – 2,030 – – 2,032

Issue expenses – – -147 – – -147

Profit for the year – – – -9 326 317

Balance as at 31 December 2013 20 – 1,883 -9 3,069 4,963

Balance as at 1 January 2014 20 – 1,883 -9 3,069 4,963

Appropriation of profits as decided by AGM – -1,883 9 1,874 –

Issue of share capital 4 – 10,717 – – 10,721

New share issue in progress – 1 1,203 – – 1,204

Issue expenses – – -469 – – -469

Premium received for issued warrants – – – 25 25

Loss for the year – – – – -172 -172

Balance as at 31 December 2014 24 1 11,451 – 4,796 16,272

Parent company condensed statement of changes in equity

26 A N N U A L R E P O R T 2 0 1 4


Cash flows from operating activities

Operating profit -472 86

Adjustments for non-cash flow items

- Depreciation/amortisation of property, plant and equipment and intangible non-current assets.

– 93

- Exchange rate differences 7

Interest received 183 326

Interest paid – –

Cash flows (used in)/from operating activities before changes in working capital -282 505

Cash flow from changes in working capital

Increase(-)/decrease(+) in operating receivables -2 238

Increase(-)/decrease(+) in operating liabilities 145 -107

Cash flows (used in)/ from operating activities -139 636

Cash flows from investing activities

Acquisition of intangible non-current assets 15 – -318

Sale of intangible non-current assets – 587

Cash flow from investing activities – 269

Cash flows from financing activities

Issue of share capital 10,824 1,886

Issue of new shares upon redemption of warrants 632 –

Premium received for warrants – 32

Repayment of loans from subsidiaries 1,042 370

Loans to subsidiaries -911 -2,803

Cash flows from/(used in) financing activities 11,587 -515

Net movement for the year 11,448 390

Cash and cash equivalents at beginning of year 352 56

Translation difference from change in presentation currency – -95

Cash and cash equivalents at end of year 11,800 352

Parent company Statement of cash flows

27A N N U A L R E P O R T 2 0 1 4

Notes with accounting policies and notes to the accounts

NOTE 1 General information

LeoVegas AB, corporate identity number 556830-4033, con-ducts investment and management operations. Subsidiaries of LeoVegas (combined, the Group) conduct online gaming oper-ations and gaming platform development. The parent company is a public limited liability company registered in Sweden and domiciled in Stockholm. These consolidated financial statements were approved for publication by the board of directors on 13 May 2015. All amounts in the notes are in thousands of euro unless otherwise specified.

NOTE 2 ACCOUNTING AND VALUATION POLICIES

General accounting policiesThe consolidated financial statements were prepared in accord-ance with the Annual Accounts Act, RFR 1, Supplementary Accounting Rules for Groups and International Financial Report-ing Standards (IFRS) and IFRIC interpretations, as adopted by the EU. The consolidated financial statements consist of the parent company and LeoVegas International Limited, Malta with its subsidiaries LeoVegas Operational Limited, LeoVegas Gaming Limited, Gears of Leo AB, Leo Services B.V, Leo Marketing N.V and Leo Pay Limited. The parent company prepared its annual financial statements in accordance with the Annual Accounts Act and RFR 2 Account-ing for Legal Entities. RFR 2 entails that the parent company shall, in the annual financial statements, apply for the legal entity all EU-approved IFRSs and statements to the extent possible within the bounds of the Annual Accounts Act and with due con-sideration for the relationship between accounting and taxation. The difference between the parent company financial state-ments compared with the consolidated financial statements primarily consists of the presentation formats of Statement of Comprehensive Income and Statement of Financial Position ensuing from the presentation format set out by the Annual Accounts Act.

Amendments to accounting policies and change of presentation currencyThis is the first year for which LeoVegas has prepared consoli-dated accounts and used RFR 1, Supplementary Accounting Rules for Groups and International Financial Reporting Standards (IFRS) and IFRIC interpretations, as adopted by the EU. The company, pursuant to Chapter 7, section 3 of the Annual Accounts Act, has not previously prepared consolidated accounts. The parent company, LeoVegas AB, at the start of the 2014 financial year, changed its presentation currency from SEK to EUR. The comparative figures for 2013 have been translated into EUR at the closing-day rate on 31 December 2013.

New standards, amendments and interpretations that came into effect in 2014In 2014 the Group started to apply new standards, amendments and interpretations compulsory for financial years starting on 1 January 2014. The introduction of these standards, amendments and interpretations has not had any material impact on the Group’s financial statements.

New IFRSs and interpretations not yet appliedNone of the IFRS or IFRIC interpretations, which are initially compulsory for financial years starting after 1 January 2014 or which have been published but are not yet in effect, are deemed to have any material impact on the Group’s profit and position.

Applied valuation basis and classificationThe parent company’s functional currency is the euro, which is also the presentation currency for the parent company and the

Group. All amounts are, unless otherwise specified, rounded to the closest thousand. Assets and liabilities are recognised at acquisition cost. Assets are classified as current assets if they are expected to be sold or are intended to be sold or used in the company’s normal operating cycle, if they are held primarily for trading purposes, if they are expected to be sold within twelve months from the Statement of Financial Position date or if they are cash or cash equivalents. All other assets are classified as non-current assets. Liabilities are classified as current liabilities if they are expected to be settled in the company’s normal operating cycle, if they are held primarily for trading purposes, if they are expected to be settled within twelve months from the Statement of Financial Position date or if the company lacks an uncondi-tional right to defer settlement of the liability for at least twelve months after the Statement of Financial Position date. All other liabilities are classified as non-current liabilities.

Judgements and estimations in the financial statementsPreparing financial statements in accordance with IFRS requires corporate management to make judgements and estimations and make assumptions that affect the application of the accounting policies and the recognised amounts of assets, liabilities, income and expense. The actual outcome can deviate fromthese estimations and judgements. The board is of the opinion that the judgements and estima-tions made when preparing these financial statements are not so difficult, subjective and complex that they can be described as critical in accordance with the requirements of IAS 1. The area that comprises a high degree of judgements, which are complex or such areas in which assumptions and estimations are of material significance, are mainly assumptions and estima-tions regarding impairment testing of intangible assets.

Consolidated financial statements The consolidated financial statements include the parent com-pany and companies in which the parent company directly or indirectly has more than half of the voting rights or otherwise has control. The consolidated financial statements were prepared in accordance with the purchase method. According to the purchase method, the parent company indirectly acquires the subsidiary’s assets and assumes its liabilities. The difference between the acquisition cost of the shares and the fair value at the time of acquisition of acquired net assets constitutes the acquisition cost for goodwill, which is recognised as an asset in the Statement of Financial Position. If the difference is negative, the amount is rec-ognised as revenue in the Statement of Comprehensive Income. Acquisition-related costs are expensed as they arise. Subsidiaries are all companies over which the Group has control. The Group controls a company when it is exposed to or is entitled to variable return from its holding in the company and is able to impact return through its influence over the company. Usually, this means that LeoVegas has more than 50% of the votes. Subsidiaries are included in the consolidated financial state-ments as of the date on which control is transferred to the Group. They are excluded from the consolidated financial statements as of the date on which control ceases. Subsidiaries’ income and expense, assets and liabilities are included in the consoli-dated financial statements from the date on which control arises through the date on which it ceases. Intragroup receivables and liabilities, income or expense and unrealised gains or losses arising from intragroup transactions between group companies, are eliminated in their entirety in the preparation of the consolidated financial statements. Unrealised losses are also eliminated, unless the incurred loss is fully or par-tially accommodated in the value of previous impairment of the transferred asset. Accounting policies for subsidiaries have been amended in cases where this has been necessary to ensure consistency with the accounting policies for the Group.

28 A N N U A L R E P O R T 2 0 1 4

Segment reportingIn accordance with the definition of “operating segment” in applicable accounting policies, the Group only recognises one operating segment. The basis for identifying reportable oper-ating segments is the internal reporting as reported to and fol-lowed up by the Group’s highest executive decision-maker, which corresponds to the board of directors of LeoVegas AB.

Foreign currencyTransactions in a currency other than the company’s presenta-tion currency are translated into EUR at the transaction day rate. Receivables and liabilities in a currency other than EUR are measured at the rate of the Statement of Financial Position date. Exchange rate differences arising in the translation are recog-nised in the Statement of Comprehensive Income.

Translation of operations with a functional currency other than the EUROperations with a functional currency other than the EUR are translated into EUR according to the current method, whereby assets, provisions and liabilities are translated at the rate of the Statement of Financial Position date and Statement of Comprehensive Income items are translated at the average rate. Exchange rate differences arising in the translation – translation differences – are recognised in the consolidated statement of comprehensive income as other comprehensive income.

Revenue recognitionRevenue consists of the fair value of amounts received or entered as a receivable for rendering services within the Group’s ordinary operations. Revenue is recognised when the revenue amount can be reli-ably calculated and it is probable that future financial benefit will be received once certain specific criteria have been met. In cases where revenue can be reliably measured, but the transaction has not yet been completed on the Statement of Financial Position date, the revenue will be recognised in the Statement of Financial Position as accrued income. However, it is only in highly excep-tional cases that accrued gaming revenue is not definite. Income from the Group’s gaming operations is recognised as revenue. Gaming transactions in which the Group’s income con-sists of a fixed percentage of profit or similar are recognised in accordance with IAS 18 Revenue. Gaming revenue is recognised net less player wins, bonus and jackpot contributions. Revenue from services sold is recognised excluding VAT and discounts and after elimination of intragroup sales. Sold services comprise management consulting services. Sold services mainly pertain to intragroup sales.

Cost of services soldCost of services sold refers to expenses in the gaming opera-tions for payment services for depositing bets and paying out winnings, license fees to game suppliers, game tax and the cost of fraud and chargebacks.

Own work capitalisedOwn work capitalised refers to the period’s direct expenditure for salaries, other personnel-related expense and purchased ser-vices attributable to development projects entered as an asset in the Statement of Financial Position.

Other operating income and other operating expenseIncome and expense for secondary activities in ordinary oper-ations relating to operating receivables and operating liabilities are recognised as other operating income or other operating expense. This item mainly includes exchange gains and exchange losses from operations and gains on the sale, disposal or impair-ment of non-current assets.

Marketing expensesThe item marketing expenses includes external expenses for the production and distribution of marketing the Group’s gaming operations in various media and the costs associated with collab-oration partners and affiliates.

LeasesLeases are classified either as finance leases or operating leases in the consolidated financial statements. Leases of non-current assets for which the Group is essentially exposed to the same risks and rewards as in direct ownership are classified as finance leases. The leased asset is recognised in non-current assets and the corresponding rent liability falls under interest-bearing liabil-

ities. Leases of assets for which the lessor essentially remains the owner are classified as operating leases and the leasing charge is expensed on a straight-line basis over the term of the lease. All of the Group’s current leases have been classified as operating.The scope of paid leasing charges is set out in Note 6.

Pension expensesThe Group’s outgoing payments for defined-contribution pension plans are expensed in the period in which the employees per-formed the services to which the charge relates.

TaxesTax in the Statement of Comprehensive Income consists of cur-rent tax and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except when tax refers to items recog-nised in other comprehensive income or directly in equity. The current tax liability is based on taxable profit for the year. Taxable profit differs from the net profit recognised in the State-ment of Comprehensive Income, because it does not include income and expense items that are not taxable or deductible, or which are taxable or deductible in years other than the current financial year. The Group’s current tax liability is calculated according to the tax rates prescribed on the Statement of Financial Position date or which have been announced previously. Deferred tax is the tax which the company expects to pay or receive due to differences between the carrying amount of assets and liabilities and the equivalent amount for tax purposes used in calculating taxable profit. Deferred tax is calculated according to the method for calculating latent tax, based on temporary differences between carrying amounts and amounts for tax purposes of assets and liabilities, using the tax rates and tax rules decided or announced at the Statement of Financial Position date. Deferred taxes receivable relating to deductible temporary differences and loss carry-forwards are only recognised to the extent that it is probable they will be utilised and result in lower future tax payments. Deferred taxes receivable and liabilities are netted when there is a legal right to net current taxes receivable against current tax liabilities and when the deferred taxes receivable and tax liabilities are attributable to income taxes levied by the same tax authority from the same taxable unit or from different taxable units when there is an intention to settle receivables and liabili-ties on a net basis.

Property, plant and equipmentProperty, plant and equipment consists of office equipment fixture & fittings and leasehold improvement. Property, plant and equipment are recognised in the Group at acquisition cost less accumulated depreciation and any impairment losses. The acquisition cost includes the purchase consideration plus expenses directly attributable to the asset for bringing it to its location and state of utilisation in accordance with the purpose of acquiring it. Depreciation is recognised over the assessed useful life of the asset. Repairs and maintenance are expensed on an ongoing basis.

Intangible assetsThe Group’s intangible non-current assets primarily consist of capitalised development expenditure for developing gaming platforms (software). Development work focuses on creating gaming platforms that are to provide the best gaming experience for mobile gaming. The completed gaming platforms are deemed to have a known useful life and are amortised on a straight-line basis over the estimated useful life of 5 years. Capitalised development expenditure for gaming platforms not yet completed is deemed to have an unknown useful life and is not subject to amortisation. Other intangible non-current assets consist of acquired soft-ware and domain names and are recognised in the Statement of Financial Position at acquisition cost less accumulated amortisa-tion. Acquired software licenses are recognised at acquisition cost including costs for being able to commence using the software. They are deemed to have a known useful life and are amortised on a straight-line basis over the estimated useful life of 10 years. Development expenditure is capitalised as an asset in the Statement of Financial Position when all conditions have been met– It is technically possible to complete the software so that it

may be available for use– Company management intends to complete the development

work of the software and then use, sell or license the software

2 9A N N U A L R E P O R T 2 0 1 4

– There is a possibility to use, sell or license the software– It is demonstrable how the software can generate future

expected financial benefits– The contribution of the capitalised expenditure to developing

the software can be credibly measured– Sufficient technical, financial and other resources are in place

to complete the development of the software and to use, sell or license the software

Only expenditure arising as part of the development phase of gaming platforms is capitalised. The asset is entered as of the point in time the decision was made to complete each project and the conditions are in place to do so. The carrying amount includes expenditure for purchased services and direct expenditure for salaries and other person-nel-related expenses that may be attributed to the asset in a reasonable and consistent manner. Development expenditure is entered at acquisition cost less accumulated amortisation. Measurement of the ability of intangible assets to generate revenue is regularly performed with the purpose of identifying any impairment need. Costs for maintenance of gaming plat-forms are expensed as they arise.

Depreciation/amortisation and impairmentDepreciation/amortisation is based on the original acquisition cost less the calculated residual value and allowance for impair-ment conducted. Depreciation/amortisation is performed on a straight-line basis over the asset’s calculated useful life.

The following useful lives are used:Capitalised development expenditure for Gaming platforms 5 yearsAcquired software licences 10 yearsOffice equipment and fittings 3–5 yearsLeasehold improvement 3 years

The residual value and useful life of an asset are reviewed annually. If there is any indication that the carrying amounts of property, plant and equipment or intangible non-current assets in the Group are excessive, an analysis is performed in which the recoverable amount of individual or naturally related types of assets is established as the higher of net selling price and value in use. The value in use is measured as expected future discounted cash flow. Intangible assets that are not yet complete and which are deemed to have an unknown useful life are not subject to amortisation and are annually impairment tested, whether or not there is indication thereof. Impairment is the difference between the carrying amount and the recoverable amount. When a previously recognised impairment loss is no longer warranted, it is reversed. A reversal may not be higher than an amount that does not exceed the car-rying amount that would have been recognised (net of amortisa-tion or depreciation) had no impairment loss been recognised.

Financial assetsThe Group recognises a financial asset in the statement of financial position only when it becomes party to the contractual terms of the instrument. The Group classifies its financial assets as loans receivable and accounts receivable. The classification depends on the purpose for which the financial assets were acquired. Financial assets are recognised initially following the decision of corporate management on classification. Loans receivable and accounts receivable are financial assets that are not derivatives with determined or determinable pay-ments and are not listed on an active market. They arise when the Group provides cash or cash equivalents or renders services for a counterparty without any intention to transfer the asset. Loans receivable and accounts receivable are classified as cur-rent assets if they fall due within one year or less. Otherwise, they are classified as non-current assets. Loans receivable are measured at amortised cost including transaction costs. The amortised cost is determined based on the effective rate of interest calculated at the time of acquisi-tion. Accounts receivable are recognised at the amount they are expected to bring less doubtful receivables determined without discounting. The impairment of accounts receivable is recognised in operating expenses. Recovered accounts receivable are recog-nised as income in the Statement of Comprehensive Income. The financial assets are removed from the statement of finan-cial position when the contractual rights to cash flows from the financial asset have ceased or been transferred and the Group

has transferred all risks and benefits ensuing from ownership and no longer has control of the financial asset. At the end of each reporting period, the Group makes an assessment of whether there are objective grounds to indicate an impairment need for a financial asset or group of financial assets. There is an impairment need for a financial asset or group of financial assets and they are impaired, only if there are objective grounds for impairment as a result of one or several events that have transpired after the asset was initially recognised (a “loss event”), and this event (or events) has/have an impact on the estimated future cash flows for the financial asset or group of financial assets that could have been reliably measured. First of all, the group assesses whether there are objective grounds to suggest an impairment need for a financial asset or group of financial assets. Criteria used by the Group to determine whether there are objective grounds to indicate an impairment need are:– the issuer or debtor encountering severe financial difficulty– breach of contract, such as absent or delayed payments of

interest or capital amounts– it is probable that the borrower will go bankrupt or enter

another financial reconstruction arrangement

For financial assets measured at amortised cost, impairment losses are calculated as the difference between the asset’s carry-ing amount and the present value of estimated future cash flows (excluding future credit losses not transpired) discounted to the original effective interest rate of the financial asset. If the carry-ing amount of the financial asset exceeds the calculated present value, the carrying amount shall be impaired and the impairment amount recognised in profit/loss. If, in a subsequent period, the amount pertaining to the impairment decreases and the reduction can be objectively attributed to an event that transpired after the impairment loss was recognised (such as an improvement in the borrower’s credit rating), the impairment loss previously recognised shall be reversed. The amount of the reversal shall be recognised in profit/loss.

Financial liabilitiesThe Group recognises a financial liability in the statement of financial position only when it becomes party to the contractual terms of the instrument. The Group classifies its financial liabil-ities as financial liabilities and not as financial liabilities at fair value in the Statement of Comprehensive Income. Financial liabilities are classified as current liabilities if they fall due within one year or less. Otherwise, they are classified as non-current liabilities. Accounts payable are obligations to pay for goods and services acquired in the operating activities from suppliers. Accounts payable are recognised at amortised cost using the effective interest method. Financial assets are removed from the statement of financial position when the Group has fulfilled its contractual obligations, or when the contractual obligations have been cancelled or have ceased.

Netting of financial assets and liabilitiesFinancial assets and liabilities are netted against each other and recognised in a net amount in the statement of financial position only when there is a legal right to net the recognised amounts and there is an intention to settle the items with a net amount or at the same time, realise the asset and settle the liability.

Cash and cash equivalentsCash and cash equivalents consist of cash and immediately available balances at banks and equivalent institutions, as well as current investments with a maturity from the time of acquisition of less than three months, which are exposed only to a negligible risk of fluctuations in value. Cash and cash equivalents are not funds held on behalf of players. These funds are held as client funds, separated from the Group’s own cash and cash equivalents, and with stringent restrictions on usage.

Parent company accounting policiesThe parent company applies the same policies as the Group, with the exception of parent company financial statements having been prepared in accordance with RFR 2. Accounting for Legal Entities and statements from the Swedish Financial Reporting Board.

3 0 A N N U A L R E P O R T 2 0 1 4

Deviations between the consolidated and parent company accounting policies are motivated by the limitations posed by the Annual Accounts Act in the application of IFRS in the parent company and the tax rules that enable different accounting for a legal entity than for the Group.

Group companiesParticipations in group companies are recognised in the parent company at acquisition cost less any impairment. The value of subsidiaries is tested when there is an indication of a decline in value. Dividend received from subsidiaries is rec-ognised as financial income. Transaction expenses in connection with company acquisitions are recognised as part of the acquisi-tion cost.

Breakdown of restricted and unrestricted equityIn the parent company Statement of Financial Position, equity is broken down into restricted and non-restricted equity pursuant to the Annual Accounts Act.

NOTE 3 Segment reporting

In accordance with the definition of “operating segment” in applicable accounting policies, the Group only recognises one operating segment. The basis for identifying reportable operating segments is the internal reporting as reported to and followed up by the Group’s highest executive decision-making body, which corresponds to the board of directors of LeoVegas AB. LeoVegas AB has no external revenues. All of the Group’s external revenues are derived from casino, conducted in the subsidiaries. The breakdown of revenues in the Group and parent company by service is set out in Note 4, and by geographic region in the table below. Out of the Group’s intangible non-current assets, 95% (100) is attributable to Sweden and out of the Group’s property, plant and equipment, 7% (0) is attributable to Sweden.

Net gaming revenue less bonus and jackpot contributions (which is almost the same as net sales) by geographic region in %. 2014 2013Nordics 85.1% 97.5%Rest of Europe 13.5% 2.5%Rest of World 1.4% 0.0%

100% 100%

NOTE 4 Revenues

Group Parent company2014 2013 2014 2013

Revenues from gaming operations 36 992 16 065 – –Royalty revenues from gaming platforms – – – 948Consulting revenues, management – – 71 7Other revenues – – – 42

36,992 16,065 71 997

NOTE 5 Own work capitalised


Own work capitalised 646 240 – 188

Refers to development work with gaming platforms

NOTE 6 Leases

The Group only has operating leases. Leasing charges are expensed on an ongoing basis.

Future minimum leasing charges are expected to be as follows:

Group Parent company

2014 2013 2014 2013Within one year 393 120 5 29Within two to five years 1,414 642 – –Later than five years – – – –


During the year, the com-pany’s leasing charges have amounted to 236 80 33 32

The company’s leases refer to rental contracts for premises.

NOTE 7 Auditor fees and expenses

The following remuneration has been paid to auditors and audit-ing firms for auditing and other review pursuant to legislation and for advice and other assistance prompted by observations in the review (Audit assignment). Remuneration has also been paid for other independent advice, (Other assignments).


Audit assignment, Grant Thornton 36 6 36 6Audit services – 22 – 22besides the audit assign-ment, Grant Thornton 64 – 64 –Advice on tax matters, Grant Thornton – 22 – 22Audit assignment, PwC 59 – – –Audit services besides the audit assignment, PwC 95 – – –Advice on tax matters, PwC 8 – – –Audit assignment, other – 16 – –

262 44 100 28

NOTE 8 Employees, salaries, remunerationand social security expenses

Average number of employ-ees 2014

of whom women 2013

of whom women

Parent companySweden 1 0 7 0SubsidiariesMalta 67 24 19 8Sweden 18 2 8 0Group total 86 26 34 8

Corporate managementNumber of peoplein executive positions 2014

of whom women 2013

of whom women

Parent companyBoard of directors 4 0 4 0Group totalBoard of directors 8 3 8 2Other senior executives 2 0 1 0

31A N N U A L R E P O R T 2 0 1 4

NOTE 8 cont.

2014 2013

Salaries, other remuner-ation and social security expenses

Salaries and

remuner-ation

Social security

expenses

Salaries and

remu-neration

Social security

expensesParent company 90 28 549 182(of which pension expense) (–) (7)

Subsidiaries 3,457 513 843 46(of which pension expense) (23) (2)Group total 3,547 541 1,392 228(of which pension expense) (23) (9)

Salaries and remuneration broken down between board members, other senior executives and other employees

2014

Parent company

Group compa-

nies TotalBoard of directors 0 470 490Other senior executives 90 0 90Other employees 0 2,987 2,987Total 90 3,457 3,547

2013

Parent company

Group compa-

nies TotalBoard of directors 156 192 348Other senior executives 83 0 83Other employees 310 651 961Total 549 843 1,392

Board remuneration and other benefitsAccording to a decision by the 2014 AGM, no fees shall be paya-ble to the board.

2014 2013Amounts in thou-sands of EUR

Base sal-ary/fee

Pension expense

Base sal-ary/fee

Pension expense

Robin Ramm-Ericson, Chairman 114 7 105 –Gustaf Hagman 157 – 113 –Mårten Forste – – – –Patrik Rosén – – – –Working board members/MD of group companies 199 – 130 –Other senior 90 – 83 –executives 90 – 83 –

Robin Ramm-Ericson and Gustaf Hagman actively work in the Group and draw salary and remuneration from group companies.

Severance payThere are no agreements in place regarding severance pay or other terms of employment termination that involve material obligations for the Group.

NOTE 9 Depreciation and amortisation

Depreciation/amortisation is distributed among each non-cur-rent asset, as set out below


Gaming platforms -169 -109 – -93Other intangible non-current assets -1 – – –Equipment, fixtures and fittings -112 -34 – –Leasehold improvement -10 – – –Total -292 -143 – -93

NOTE 10 Profit from participations in group companies

Parent company 2014 2013Profit from divestment of group companies – -3

– -3

NOTE 11 Financial income


Interest income 3 2 1 –Interest income, – – 299 244Group companies – – 299 244

3 2 300 244

NOTE 12 Financial expense


Interest expense -2 -24 – -1Profit from participations in group companies – -3 – –

-2 -27 – -1

3 2 A N N U A L R E P O R T 2 0 1 4

NOTE 13 Tax


Recognised tax in the Statement of Comprehensive IncomeCurrent tax 210 6 – –Deferred tax on change in untaxed reserves -3 12 – –Total recognised tax in the Statement of Comprehensive Income 207 18 – –

Profit before tax 1,926 -460 -172 327Tax according to applicable tax rate 22% 424 -101 -38 72

Tax effect from:Difference in tax rate in foreign operations -153 196Non-taxable revenues -102 -6 – –Non-deductible expenses 28 3 – 2Issue expenses entered in equity -103 -33 -103 -33Other -26 -4 – –Utilisation of loss carry-forward from prior years -2 -41 – -41

Deficit that increases accumu-lated loss carry-forward but which is not recognised as an asset 141 4 141 –Total current tax 207 18 0 0

The unutilised loss carry-forward at 31/12/2014 amounts to EUR 1,003k for the Group and parent company

NOTE 14 Property, plant and equipment

Group 2014 2013Accumulated acquisition costOpening balance 132 36Investment 331 96Closing balance 463 132

Accumulated depreciationOpening balance -38 -4Depreciation for the year -122 -34Closing balance -160 -38Carrying amount at the end of the period 303 94

NOTE 15 Other intangible assets

Group 2014 2013Accumulated acquisition costOpening balance 865 428Investment 1,230 446Change in exchange rate, switch of presentation currency -9Closing balance 2,095 865

Accumulated amortisationOpening balance -166 -60Amortisation for the year -170 -109Change in exchange rate, switch of presentation currency 3Closing balance -336 -166Carrying amount at the end of the period 1,759 699

Specification of intangible non-current assets

Capitalised devel-

opment expenditure

Capitalised software

Domain names

and brands Total

Accumulated acquisition cost 1,865 76 4 1,945Accumulated amortisation -185 -1 0 -186Carrying amount at the end of the period 1,680 75 4 1,759

NOTE 16 Participations in group companies

Parent company 2014 2013Accumulated acquisition costOpening acquisition cost 1 36Divestments – -35Closing acquisition cost 1 1

Accumulated depreciation/amortisationOpening accumulated impairment – -35Divestments – 35Closing accumulated impairment – –Carrying amount at the end of the period 1 1

Company Corp. id no. DomiciliationPartici-pa-

tion in % 201414-12-31

Eget kapital2014

Redovisat värdeLeoVegas International Limited C53595 Malta 100% 1,901 -1,224 1Accumulated acquisition cost 1,901 -1,224 1

Subsidiaries of LeoVegas International LimitedLeoVegas Gaming Limited 99.99%LeoVegas Operational Limited 99.99%Leo Pay Limited 100%Gears of Leo AB 100%Leo Services B.V 100% -Leo Marketing N.V 100% 3 3A N N U A L R E P O R T 2 0 1 4

NOTE 17 Receivables from group companies

2014 2013Receivables falling due within a year 299 183Receivables falling due between one and five years 4,387 4,525Receivables falling due after five years or more – –

4,686 4,708

Receivables from group companiesLeoVegas International Limited 275 259LeoVegas Gaming Limited 1,980 708LeoVegas Operational Limited 60 51Leo Pay Limited – 1Gears of Leo AB 1,596 825Leo Services B.V 774 2,864Leo Marketing N.V 1 -

4,686 4,708

The parent company, LeoVegas AB, has issued to group compa-nies a debt coverage guarantee for its intragroup receivables, as above.

NOTE 18 Other receivables


Receivables from payment service providers 2,729 2,418 – –Other receivables 1,081 116 46 29

3,810 2,534 46 29

NOTE 19 Prepaid expenses and accrued income


Prepaid rental and lease expenses 84 73 – 3

Prepaid marketing expenses 180 – – –Other prepaid 84 18 – 10expenses 84 18 – 10

348 91 – 13

NOTE 20 Cash and cash equivalents


Cash and bank balances 5,961 2,437 907 352Current investments (deposit accounts at banks) 10,893 – 10,893 –

16,854 2,437 11,800 352

NOTE 21 Equity

2014 2013Parent companyNumber of shares registered at the State-ment of Financial Position date 2,108,588 1,814,903Number of shares under registration at the Statement of Financial Position date 135,705 –Total number of shares including those under registration 2,244,293 1,814,903

Share capital (EUR) at the Statement of Financial Position date 23,617.03 20,327.64Quotient value per share (EUR) 0.0112 0.0112

All shares are of the same share class and carry the same voting rights and rights to the company’s assets and profit. For a speci-fication of changes in parent company equity, see page 12.

NOTE 22 Other liabilities


Player accounts 1 422 310 – –Tax and social security expenses for personnel 156 91 5 4Premiums received for warrants 23 27 23 27Other liabilities 504 26 – –

2,105 454 28 31

Premiums received for warrantsPremiums received for war-rants maturing in over 1 year – 32reclassified from a non-cur-rent to a current liability 32 –of which, received from group companies -8 -8Change in exchange rate -1 –

23 24

In the previous financial year a decision was made to issue 120,000 warrants at a subscription price of SEK 80 per share. All 120,000 warrants were fully subscribed, shares will be allocated between 01/01/2015 and 18/06/2015. Total outstanding warrants amount to 120,000 (240,000). If fully subscribed, share capital will increase by EUR 1,344 (2,688). From the warrants programmes decided in prior years, 120,000 warrants were redeemed for shares during the financial year.

NOTE 23 Accrued expenses and deferred income


Accrued expenses gaming operations 1 724 1 009 – –Accrued marketing expenses 399 728 14 35Accrued payroll expenses 96 19 38 6and remuneration 117 105 6 13Audit fees 96 19 38 6Consulting and legal fees 122 38 49 8

Other accrued expenses 190 139 – 7

2,648 2,038 107 69

34 A N N U A L R E P O R T 2 0 1 4

NOTE 24 Pledged assets and contingent liabilities

LeoVegas AB and its group companies have no pledged assets regarding own liabilities and no material contingent liabilities.

2014 2013LeoVegas AB, has issued to group companies a debt coverage guarantee for its intragroup receivables, amounting to 4,686 4,708

NOTE 25 Transactions with related parties

Salaries and remuneration for board members are set out in Note 8 above. The parent company has a related-party relationship with its subsidiaries and their subsidiaries, see Notes 16 and 17. Services sold between the parent company and subsidiaries mainly refer to management services. Transactions with related parties are priced on market terms. No services have been

provided free of charge. The parent company’s receivables from group companies carry an interest rate in line with the market. LeoVegas purchases legal services from law firm Baker & McKenzie in which deputy board member Anders Fast is a part-ner. For 2014 the company’s purchasing amounted to EUR 84k (55).

Transactions with related parties 2014 2013Parent companySale of services to group companies 71 955Interest income from group companies 299 244

Receivables from group companies 4,686 4,719Acc. impairment, receivables from group companies – -11Book value receivables from group companies 4,686 4,708

NOTE 26 Financial instruments

Group 31/12/2014Loans receivable and

accounts receivableNon-financial

assetsOther financial

liabilitiesTotal

carrying amountProperty, plant and equipment - 303 303Intangible non-current assets - 1,759 1,759Other receivables 3,810 - 3,810Prepaid expenses - 348 348Cash and cash equivalents 16,854 - 16,854Total 20,664 2,410 0 23,074

Accounts payable 2,848 2,848Financial liabilities 2,497 2,497Accrued expenses 2,648 2,648Total 7,993 7,993




liabilitiesTotal

carrying amountProperty, plant and equipment - 94 94Intangible non-current assets - 699 699Other receivables 2,534 - 2,534Prepaid expenses - 91 91Cash and cash equivalents 2,437 - 2,437Total 4,971 884 5,855

Accounts payable 1,440 1,440Other liabilities 472 472Accrued expenses 2,038 2,038Total 3,950 3,950




liabilitiesTotal

carrying amountParticipations in group companies - 1 1Non-current receivables from group companies 4,387 - 4,387Other current receivables group companies 299 - 299Other receivables 46 - 46Prepaid expenses 0 - 0Cash and cash equivalents 11,800 - 11,800Total 16,532 1 16,533

Accounts payable 118 118Liabilities to group companies 8 8Other liabilities 28 28Accrued expenses 107 107Total 261 261

3 5A N N U A L R E P O R T 2 0 1 4

NOTE 27 Financial risks

Through the operations it conducts, the Group is potentially exposed to various financial risks, mainly consisting of market risk, including currency risk and interest rate risk, credit risk and liquidity risk. The Group’s financial activities are conducted on the basis of a finance policy adopted by the board, which endeavours to minimise the Group’s risk level. Financial activities and management of financial risks are coordinated through the parent company LeoVegas AB. Financ-ing subsidiaries to the extent needed occurs through the parent company.

Currency riskThe Group conducts international operations and its profit is exposed to exchange rate fluctuations from various currencies, but mainly by fluctuations in the SEK and EUR. For competitive reasons, the board chooses not to recognise income and expense by currency. However, expense and income by currency match each other fairly well, so net exposure by currency is not particularly high. Profit is also affected by exchange rate fluctuations when expense, income, assets and liabilities in a currency other than the EUR must be translated into the presentation currency, which is the EUR. The following table contains a summary of the Group’s expo-sure to currencies other than the EUR at 31 December 2014.

Assets Liabilities Net exposureSEK to EUR 3,855 -3,669 186GBP to EUR 1,053 -282 771Other curren-cies 558 -62 496

Interest rate riskThe Group’s revenues and cash flow from the operations are essentially independent of changes in market interest rate levels because financial assets and liabilities usually do not carry interest if they are settled on time. Changes to interest rates in general are not deemed to have any material effect on the parent company’s or Group’s financial result and position.

Counterparty risks and credit risksThe Group’s financial transactions give rise to credit risks towards financial counterparties. Credit risks in cash and cash equivalents and other receiva-bles are presented below.

2014 2013Cash and cash equivalents 16,854 2,437Receivables from payment service providers 2,729 2,418Other receivables 1,081 116Total 20,664 4,971

The maximum exposure for credit risks at the Statement of Financial Position date for financial assets as above amounts to their book value. The Group has not received any collateral from debtors. The Group only works with financial institutions of high standard and high creditworthiness. The creditworthiness of pay-ment service providers has been assessed by means of market knowledge and previous experience and collaboration. All financial assets constitute exposure to credit risk and have been considered fully recoverable based on the financial position of the counterparty. In the board’s opinion, there was no credit risk of material value at the Statement of Financial Position date.

Liquidity risk The operations of the Group are primarily financed through its own funds. Subsidiaries that are not domiciled in Sweden are financed through intragroup loans with the parent company. The Group’s non-financial assets mainly consist of capitalised development expenditure for developing gaming platforms. It is considered that future investment in property, plant and equip-ment and intangible non-current assets can be financed mainly by funds generated in-house or rental solutions. All financial liabilities fall due for payment within one year from the Statement of Financial Position date. No collateral has been pledged for these liabilities.

Capital risk managementThe Group’s objective for capital management is to ensure its possibilities of continuing operations with the purpose of gener-ating return for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce capital costs. In order to maintain or adjust the capital structure, the shareholders of the Group have the possibility of deciding at the AGM on distribution to shareholders or transfer to shareholders through redemption or issuing new shares. The Group may also sell assets to reduce its liabilities.

Parent company 31/12/2014Loans receivable and



liabilitiesTotal

carrying amountParticipations in group companies - 1 1Non-current receivables from group companies 4,525 - 4,525Other current receivables group companies 183 - 183Other receivables 29 - 29Prepaid expenses - 13 13Cash and cash equivalents 352 - 352Total 5,089 14 5,103

Accounts payable 8 8Liabilities to group companies 8 8Other liabilities 55 55Accrued expenses 69 69Total 140 140

3 6 A N N U A L R E P O R T 2 0 1 4

Stockholm, 13 May 2015

Robin Ramm-Ericson Mårten Forste

Chairman

Gustaf Hagman Patrik Rosén

Our audit report was submitted on 13 May 2015Grant Thornton Sweden AB

Anders Meyer

Authorised Public Accountant

37A N N U A L R E P O R T 2 0 1 4

Auditor’s report

To the Annual General Meeting of LeoVegas ABCorp. id no. 556830-4033

Report on the annual accounts and consolidated accountsWe have conducted our audit of the annual accounts and consol-idated accounts of LeoVegas AB for 2014.

The board’s responsibility for the annual accounts and consoli-dated accountsThe board of directors is responsible for the preparation and fair presentation of these annual accounts in accordance with the Annual Accounts Act and of the consolidated accounts in accordance with International Financial Reporting Standards, as adopted by the EU, and the Annual Accounts Act, and for such internal control as the board of directors determines is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibilityOur responsibility is to express an opinion on these annual accounts and consolidated accounts based on our audit. We con-ducted our audit in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. Those standards require that we comply with ethical require-ments and plan and perform the audit to obtain reasonable assurance about whether the annual accounts and consolidated accounts are free from material misstatement. An audit involves performing procedures to obtain audit evi-dence about the amounts and disclosures in the annual accounts and consolidated accounts. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the annual accounts and consolidated accounts in order to devise audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonable-ness of accounting estimates made by the board of directors, as well as evaluating the overall presentation of the annual accounts and consolidated accounts. We believe that the audit evidence we have obtained is suffi-cient and appropriate to provide a basis for our opinions.

OpinionsIn our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the parent company as of 31 December 2014 and of its financial performance and its cash flows for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the Group as of 31 December 2014 and of its financial performance and cash flows for the year then ended in accordance with International Finan-cial Reporting Standards, as adopted by the EU, and the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. We therefore recommend that the annual meeting of share-holders adopt the Statement of Comprehensive Incom and Statement of Financial Position for the parent company and for the Group.

Report on other legal and regulatory requirementsIn addition to our audit of the annual accounts and consolidated accounts, we have also audited the proposed appropriations of the company’s profit or loss and the administration of the board of directors of LeoVegas AB for 2014.

Board’s responsibilityThe board of directors is responsible for the proposal for appro-priations of the company’s profit or loss, and the board of direc-tors is responsible for administration under the Companies Act.

Auditor’s responsibilityOur responsibility is to express an opinion with reasonable assur-ance on the proposed appropriations of the company’s profit or loss and on the administration based on our audit. We conducted the audit in accordance with generally accepted auditing stand-ards in Sweden.

As a basis for our opinion on the board of directors’ proposed appropriations of the company’s profit or loss, we examined whether the proposal is consistent with the Companies Act. As a basis for our opinion concerning discharge from liability, in addition to our audit of the annual accounts and consolidated accounts, we examined significant decisions, actions taken and circumstances of the company in order to determine whether any member of the Board of Directors is liable to the company. We also examined whether any member of the Board of Directors has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

OpinionsWe recommend to the annual meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the board of directors be discharged from liability for the financial year.

Stockholm, 13 May 2015

Grant Thornton Sweden AB

Anders MeyerAuthorised Public Accountant

3 8 A N N U A L R E P O R T 2 0 1 4

“The smartphone market is growing ra-

pidly and the number of users worldwide

has now overshot 2bn. At the same time,

mobile phones have gone from being

a traditional communication channel

to the primary gaming entertainment

device. LeoVegas’ success is based on

providing the leading gaming experience

in mobile phones, putting the company in

the number 1 slot for mobile casino.”

“LeoVegas is leading the way into the mobile future”€¦ · Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q4...

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Transcript of “LeoVegas is leading the way into the mobile future”€¦ · Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q4...