===== SIDA 1 ===== Copenhagen, August 22, 2023 Better Collective A/S www.bettercollective.com CVR NO.: 27 65 29 13 Interim report Q2 2023 Revenue 78 mEUR, growth of 39%; organic growth of 29% Recurring revenue 46 mEUR; growth of 67% EBITDA before special items 29 mEUR; a margin of 37%; growth of 135% YOY July trading update: revenue of 23 mEUR; 39% growth ===== SIDA 2 ===== Q2 report 2023 Page 1 Revenue mEUR EBITDA* mEUR Earnings per share Recurring revenue mEUR *Before special items *Before special items ===== SIDA 3 ===== Q2 report 2023 Page 2 Highlights Q2, 2023 3 Financial highlights and key figures 4 CEO letter 5 Business review and financial performance 7 Financial performance H1 2023 10 Financial targets 2023 11 Financial targets 2023-2027 11 Other 12 Notes 20 Upcoming events • November 15, 2023, Q3 release • February 21, 2024, Q4 release • May 16, 2024, annual report release Q2 report 2023 Page 2 Table of contents A conference call for Better Collective’s stakeholders will be held on August 23, at 10:00 a.m. CET and can be joined online here. The presentation material for t he webcast will be available after market close on August 22 via: www.Bettercollective.com To participate telephonically follow this link . Once signed up you will receive an e -mail with a phone number and a personal dial-in code for the call. Q2 webcast August 23, 2023 ===== SIDA 4 ===== Q2 report 2023 Page 3 Highlights Q2, 2023 Q2 group revenue grew by 39% to 78 mEUR, which is a record Q2 quarter (Q2 2022: 56 mEUR). Organic reve- nue growth was 29%. Recurring revenue was 46 mEUR, implying 67% growth. Equal to 59% of group revenue versus 49% Q2 last year. Q2 group EBITDA before special items was 29 mEUR, a growth of 135% (Q2 2022: 12 mEUR). The group EBITDA- margin before special items was 37%. Cash flow from operations before special items was 34 mEUR (Q 2 2022: 22 mEUR). The cash conversion was 112%. By the end of Q 2, capital reserves stood at 78 mEUR of which cash of 65 mEUR, other current financial assets of 13 mEUR. New depositing customers (NDC) numbered more than 500.000 in the quarter implying growth of 32%. 87% of NDCs were sent on revenue share contracts. Skycon Limited was acquired and in doing so expanded Better Collective’s efforts within digital display advertis- ing. Skycon has already delivered strong performance after a swift onboarding. During the quarter t he financial targets for 2023 were upgraded due to a very strong performance during the first months of the quarter. The group now guides for: • Revenues of 315-325 mEUR (305-315 mEUR) • EBITDA before special items of 105-115 mEUR (95-105 mEUR) • Net debt to EBITDA before special items <2.0 (unchanged) A share buyback program was initiated on February 21 and completed on A pril 25. Better Collective acquired 416,959 shares at an average price of 196.6 SEK. Follow- ing the purchases, Better Collective held 2.17% of the outstanding share capital. The UK Government published a “White Paper” as part of a Gambling Act review. Better Collective welcomes the long -awaited proposed initiatives with a stronger focus on safer gambling. Given the proactive compli- ance measures already taken, the proposed measures are estimated to have zero to limited financial impact on the Better Collective. Terence Gargantini joined as Country Director for Brazil to bolster Better Collective’s South American expansion. The Annual General Me eting 2023 was held electroni- cally on April 25, 2023. Better Collective hosted its annual Greek Bookmaker Awards with its Greek flagship sports media, Betarades. Significant events after closure of the period July trading update showed revenue of 23 mEUR imply- ing 39% growth. Better Collective acquired Playmak er HQ to expand competitiveness within social media and sports content production. The total consideration of the acquisition was 54 mUSD with an upfront payment of 15 mUSD. Playmaker HQ has already shown promising trends. Better Collective expanded its Swedish position towards the generalist sport fans by acquiring four of the strong- est sports media brands in the market . The media ac- quired from Everysport Group are SvenskaFans.com, Hockeysverige.se, FotballDirect and Innebandy Maga- zinet. Better Collective extended the club-financing from Oc- tober 2022 with Nordea, Nykredit and Citibank by three years to October 2026 as well as executing the accor- dion option and thereby increasing the avai lable facili- ties with 72 mEUR, leaving the group with a total financ- ing of 319 mEUR where 247 mEUR has been utilized. A share buyback program of up to 10 mEUR was initi- ated on July 7 and completed on August 21. Better Col- lective acquired 187, 991 shares at an average price of 237.2 SEK. Following the purchases, Better Collective held 2.51% of the outstanding share capital. The market value of Better Collective ’s own shares amounts to 26 mEUR. The purpose of the buyback is to cover future payments relating to acquisitions and LTI programs. Better Collective hosted an EGM where Britt Boeskov and René Rechtman were elected to the board of direc- tors. Following six years of dedicated work for Better Collective, Klaus Holse decided to step down. Better Collective bolstered its European sports media expansion with the appointment of René Schrøder as Editor in Chief Europe. By the end of July, Better Collective’s new HQ in Copen- hagen opened. The leasing agreement runs for five years and has rent obligation of approximately 12 mEUR dur- ing that period. ===== SIDA 5 ===== Q2 report 2023 Page 4 Financial highlights and key figures tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Income statements Revenue 78,115 56,043 166,060 123,437 269,297 Recurring revenue 45,795 27,574 86,677 50,977 123,365 Revenue Growth (%) 39% 40% 35% 57% 52% Organic Revenue Growth (%) 29% 22% 27% 33% 34% Operating profit before depreciation, amortization, and special items (EBITDA before special items) 28,696 12,226 61,971 35,337 85,075 Operating profit before depreciation and amortization (EBITDA) 27,478 12,863 60,146 34,293 85,021 Depreciation 698 483 1,412 970 2,321 Operating profit before amortization and special items (EBITA before special items) 27,998 11,743 60,560 34,367 82,754 Special items, net - 1,218 638 - 1,826 - 1,044 - 54 Operating profit before amortization (EBITA) 26,780 12,380 58,734 33,323 82,700 Amortization and impairment 6,068 2,751 9,939 5,040 12,347 Operating profit before special items (EBIT before special items) 21,930 8,991 50,621 29,327 70,407 Operating profit (EBIT) 20,712 9,629 48,795 28,283 70,353 Result of financial items - 8,872 - 728 - 9,607 - 1,349 - 5,389 Profit before tax 11,840 8,901 39,188 26,935 64,964 Profit after tax 8,302 7,105 29,237 20,847 48,075 Earnings per share (in EUR) 0.15 0.13 0.53 0.38 0.88 Diluted earnings per share (in EUR) 0.14 0.12 0.51 0.36 0.85 tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Balance sheet Balance Sheet Total 875,320 761,597 875,320 761,597 785,229 Equity 430,220 400,317 430,220 400,317 412,917 Current assets 126,100 70,680 126,100 70,680 95,025 Current liabilities 78,329 93,721 78,329 93,721 65,068 Net interest bearing debt 257,392 219,061 257,392 219,061 227,151 Cashflow Cash flow from operations before special items 34,253 22,503 67,613 35,648 69,816 Cash flow from operations 32,980 22,313 65,946 35,358 68,423 Investments in tangible assets - 2,369 - 291 - 2,182 - 561 - 1,804 Cash flow from investment activities - 29,483 - 87,014 - 50,761 - 106,161 - 112,632 Cash flow from financing activities 37,736 68,882 30,006 77,890 65,737 Financial ratios Operating profit before depreciation, amortization (EBITDA) and special items margin (%) 37% 22% 37% 29% 32% Operating profit before amortization margin (EBITDA) (%) 35% 23% 36% 28% 32% Operating profit margin (%) 27% 17% 29% 23% 26% Publishing segment - EBITDA before special items margin (%) 40% 26% 41% 35% 38% Paid media segment - EBITDA before special items margin (%) 31% 12% 29% 14% 16% Net interest bearing debt / EBITDA before special items 2.30 3.36 2.30 3.36 2.67 Liquidity ratio 1.61 0.75 1.61 0.75 1.46 Equity to assets ratio (%) 49% 53% 49% 53% 53% Cash conversion rate before special items (%) 112% 182% 106% 99% 80% Average number of full-time employees 966 853 942 842 878 NDCs (thousand) 500 387 988 737 1,683 ===== SIDA 6 ===== Q2 report 2023 Page 5 CEO Letter Impressive operational leverage, successful M&A, and embracing AI opportunities Operational leverage paves the way for a record-breaking Q2 As a leading digital sports media group, Better Collec- tive has continued its global expansion throughout the quarter, and it is with great pride I can share our recent performance. Q2 was another exceptional quarter, building on the momentum generated in recent quar- ters. We grew revenues 39% to 78 mEUR, of which 29% was organic growth. This comes on top of us growing 40% last year during Q2. This was driven by strong per- formance across the group, while highlighting the Americas, our media partnerships, and a sports win mar- gin above our expectations. The FIFA Women’s W orld Cup only generated subtle activity likely due to the in- convenient kick-off times for our key markets . An im- pressive +10 million Brazilian fans watched the matches played by their national team, which underlines the great opportunities we see in this enthusiastic market. We continue to focus on our recurring revenue , which grew 67% year-over-year to 46 mEUR and accounted for 59% of group revenue. We showed impressive oper- ational leverage as our EBITDA grew 135% to 29 mEUR. This implies a margin of 37 %. The uptick in margin was driven by operational leverage in our Publishing busi- ness combined with - what seems to be - a structurally higher Paid Media margin following the transition to re- curring revenue share income as well as the incorpora- tion of Skycon Limited. North American expansion I am proud to see how our commercial team in North America has demonstrated strategic vision and execu- tion in working closely with our partners. We constantly seek to become even more relevant to our partners through brand awareness, customer acquisition, re-acti- vation, and retention, which is an exercise we are fine - tuning in North America. In Q2 last year, we continued our investments despite tougher market conditions in North America and posted a negative EBITDA during that quarter. I am proud to see that we are now reaping the benefits as operational earnings have moved from negative to a 33% margin during this low season quarter. This exercise is best fulfilled through a constant user fo- cus ensuring the best innovative content for our many returning sport fans, and c lose strategic partnerships. This is why I am happy to see the further diversification of revenue streams in this region through sponsorship sales on products like our podcasts and YouTube shows. As part of our journey, we acquired Playmaker HQ, after the closing of Q2. The acquisition provides our group with social media and content production capabilities needed for long-term success in the sports media indus- try, and further accelerates our journey towards becom- ing the leading digital sports media group. By acquiring Playmaker HQ, we also broadened our user base to- wards more generalist sports fans and secured another marketing channel. I will dive more into all these acqui- sitional benefits in my Q3 letter. Skycon is off to a great start The acquisition of Skycon Limited is off to a great start and has already demonstrated good performance. By incorporating Skycon into our Paid Media division, we have unlocked new avenues for growth and expanded our offering to advertising partners. The integ ration of Skycon was swift and seamless, with our teams working closely together to ensure a smooth transition. Un- doubtedly, Skycon will continue to deliver further growth opportunities, and I am very excited about the prospects that lie ahead. Leveraging the ‘BC Growth Formula’ in South America We continue to be excited about the vast potential and opportunities in South America. We plan to leverage our ‘BC Growth Formula’ throughout the region . We have spent more than a decade developing and implementing this formula in Europe and executed it successfully in North America. During the first half of 2023, focus was on establishing a strong local presence in the South American region by leveraging our global expertise and resources. We are now working to put together a local team that can excite sports fans through premium con- tent and engaging communities. I had the pleasure of visiting Rio de Janeiro as we opened our South Ameri- can headquarters, and I was impressed to experience the region's strong sports culture. I am certain that Bet- ter Collective will have a long growth trajectory in this region as we continue to expand our efforts. Embracing the power of AI: Unleashing opportunities & navigating challenges Artificial intelligence (AI) has revolutionized the way we create, distribute, and consume content. Through ad- vanced algorithms and machine learning capabilities, AI empowers us to scale content production efficiently, maintaining a consistent flow of high- quality material across our sports brands. As such we can reach a wider audience, engage them mor e effectively, and enhance their overall experience. AI is also a crucial tool for pro- cess optimization. By automating repetitive and time - consuming tasks, the technology frees up valuable re- sources and enables our teams to focus on more strate- gic and creative tasks. ===== SIDA 7 ===== Q2 report 2023 Page 6 Further by combining neuroscience, AI and human ex- pert assessment, our company Mindway AI’s safer gam- bling software helps sportsbooks meet and exceed user protection requirements. AI also brings forth potential difficulties, particularly within the realm of search engines. As AI becomes more sophisticated, search engines adapt to deliver more ac- curate and personalized search results. Such develop- ments may lead to changes in algorithms and ranking criteria, which could impact the future search landscape. Staying on top of these changes while ensuring that our content remains optimized and aligned with search en- gine guidelines are crucial elements in upholding Better Collective’s online presence and competitive edge. At Better Collective we have long recognized AI's im- pact and that is why our teams are busy exploring AI- driven solutions, potential M&As, as well as ways to lev- erage its potential and mitigate risks. By utilizing AI technology alongside the integration of human finesse, I trust that we can deliver the best service to our audi- ences. Five years ago, we started diversifying our traffic to lower potential risks. Today, less than 35% of sport fans come from search engines, however, in 2018 it was more than 60%. I foresee that exposure will decline further as Better Collective grows and acquires strong brands with a direct, loyal, and returning user base. Upgraded financial targets as strong momentum continues In June, we upgraded our 2023 financial targets to: • Revenue to 315-325 mEUR (previously 305-315 mEUR) • EBITDA to 105-115 mEUR (previously 95-105 mEUR). The upgrade was prompted by a strong Q2. The main drivers for the good start to Q2 were a solid momentum across all the Americas , media partnerships’ continued success, and a sports win margin above expectations. Considering this upgrade, I am happy with the opera- tional leverage we have seen in our business as we con- tinuously invest in the future. Our commitment to delivering long-term success over here-and-now gratification has resulted in solid Q2 per- formance. Being able to fuel an already strong momen- tum while delivering good performances reflects all of my colleagues’ dedication, laser focus and hard work. Jesper Søgaard Co-founder & CEO Jesper Søgaard Co-founder & CEO ===== SIDA 8 ===== Q2 report 2023 Page 7 Business review and financial performance Group Q2 was another strong quarter for the Better Collective group with revenues of 78 mEUR equaling growth of 39%, of which 29% was organic. Recurring revenue came in at 46 mEUR, implying growth of 67%, and made up 59% of group revenues. Of the recurring revenues 85% came from revenue share income, 9% from subscription, and 6% from advertise- ment sales. The group delivered more than 500.000 new depositing customers (NDC) to partnering sportsbooks and thereby continued its strong growth path. Q2 grew by 32%, of which 87% were revenue share contracts. Operational earnings (EBITDA before special items) were 29 mEUR, implying a margin of 3 7%. The group showed strong operational leverage, growing its opera- tional earnings by 135%. Q2 report 2023 Page 7 Q2 report 2023 Page 7 Better Collective Group Key figures for Group tEUR Q2 2023 Q2 2022 G rowth YTD 2023 YTD 2022 Growth Revenue 78,115 56,043 39% 166,060 123,437 35% Cost 49,418 43,818 13% 104,089 88,101 18% Operating profit before depreciation, amortization, and special items 28,696 12 ,226 135% 61,971 35,337 75% EBITDA-Margin before special items 37% 22% 37% 29% Operating profit before depreciation and amortization 27,478 12,863 114% 60,146 34,293 75% EBITDA-Margin 35% 23% 36% 28% Organic growth 29% 22% 27 % 33% ===== SIDA 9 ===== Q2 report 2023 Page 8 Publishing The Publishing business includes revenue from Better Collective’s proprietary owned and operated sports me- dia as well as media partnerships. The traffic to these brands is mostly direct or through organ ic search re- sults. Revenues from this segment came in at 54 mEUR imply- ing growth of 41% of which 35% was organic. Opera- tional earnings came in at 21 mEUR, implying a margin of 40% and growth of 111%. The publishing segment ac- counted for 69% of group revenues and 74% of opera- tional earnings. The topline growth in the segment came from strong performance from most brands in all geographies , where all the Americas is worth highlighting as well as media partnerships continued to deliver. The exceptional operational earnings growth during the quarter is a result of the operational leverage in the busi- ness combined with an above-expected sports win mar- gin. Paid Media The Paid Media business includes revenues efforts in paid advertising on search platforms like Google and Bing, as well as advertising on third party sports media. Given the upfront payment to advertise on third party platforms the gross margin is lower than in the Publish- ing business. Paid Media revenue was 2 5 mEUR, implying growth of 37%, of which 15% was organic. During Q2 45% of reve- nues was recurring. Over the past quarters, the transi- tion in revenue agreements has paid off as margins have improved and made it possible to further fuel growth. Operational earnings came in at 8 mEUR, implying a margin of 3 1%, which is the highest margin ever rec- orded for the Paid Media segment during any quarter (former record was Q1 2023 at 27%). This implies growth of 240% versus last year. The strong growth in the top line comes from another broadly based performance with solid growth , espe- cially from the Americas. The massive margin growth comes because of the investments in moving revenues to recurring revenue share income, as well as the acqui- sition of Skycon, focusing o n display advertising, being higher margin than search based paid advertisement. Key figures for the Publishing segment tEUR Q2 2023 Q2 2022 Gr owth YTD 2023 YTD 2022 Growth Revenue 53,547 38,126 41% 112,751 86,506 30% Share of Group 69% 68% 68% 70% Cost 32,392 28,116 15% 66, 187 56,260 18% Share of Group 66% 64% 64% 64% Operating profit before depreciation, amortization, and special items 21,155 10,010 111% 46,564 30,246 54% Share of Group 74% 82% 75% 86% EBITDA-Margin before special items 40% 26% 41% 35% Operating profit before depreciation and amortization EBITDA-margin 19,937 37% 10,647 28% 87% 44,739 40% 29,203 34% 53% Organic growth 35% 18% 37% 35% Key figures for the Paid Media segment tEUR Q2 2023 Q2 2022 Gr owth YTD 2023 YTD 2022 Growth Revenue 24,567 17,917 37% 53,309 36,931 44% Share of Group 31% 32% 32% 30% Cost 17,026 15,701 8% 37,902 31,841 19% Share of Group 34% 36% 36% 36% Operating profit before depreciation, amortization, and special items 7,541 2,216 240% 15,407 5,090 203% Share of Group 26% 18% 25% 14% EBITDA-Margin before special items 31% 12% 29% 14% Operating profit before depreciation and amortization EBITDA-margin 7,541 31% 2,216 12% 240% 15,407 29% 5,090 14% 203% Organic growth 15% 30% 22% 29% ===== SIDA 10 ===== Q2 report 2023 Page 9 Europe & Rest of World The Europe & Rest of the world (ROW) business includes all markets outside of North America. The European markets consist of more mature markets and are the leg- acy markets of Better Collective. South America is a strong growth market for Better Collective and makes up an increasingly bigger part of the business. Examples of sports brands include Soccernews in the Netherlands, Betarades in Greece, Wettbasis in Germany, Goal.pl in Poland, Les Transferts in France, and many others. Fur- ther it includes our esport communities HLTV and Futbin. The strategy is to own the strongest local sports media in all relevant regions. Given the strong legacy in the European markets where Better Collective has been sending revenue share cus- tomers the past decade, there is a lot of recurring reve- nue in this bus iness. It also means that this business is the most impacted by fluctuations in the sports win mar- gin. Europe & ROW posted revenues of 55 mEUR, which is a record for this region - implying growth of 32%. Opera- tional earnings came in at 2 1 mEUR, giving a margin of 38% and growing 63% YOY. Europe & ROW revenue ac- counted for 71% and operational earnings accounted for 74%. The growth came from a strong deliverance across all countries, where South America especially is seeing high growth. As mentioned, these markets are heavily tilted towards recurring revenue share income, meaning fluctuations in the sports win margin has a bigger im- pact than in North America. During Q2 the sports win margin was above expectations, meaning the result was boosted by this. North America Both the US and the Canadian markets are somewhat recently regulated. The first states in the US started reg- ulating in 2018 with the PASPA repeal. As both markets are young, revenues have to a large extent been gener- ated from one -time payments (CPA). Last year, Better Collective started to transition towards recuring reve- nues in the US. North American sports brands include amongst other Action Network, PlaymakerHQ VegasInsider, Scores&Odds, RotoGrinders, Sportshandler, and Canada Sports Betting. The North American revenue came in at 23 mEUR, implying growth of 60%. Operational earnings came in at 8 mEUR equaling a margin of 3 3% up from being negative last year. North America revenues made up 29% of Group revenues and 26% of operational earn- ings. The group continues its transition towards recur- ring revenue share and is seeing positive trends from some of the earliest cohorts sent to partners. The solid growth came from a mix of recurring revenue share starting to pick up, paid media delivering in this region, as well as revenue diversification now including spon- sorship sales and more. Key figures for North America and Europe & RoW segments Europe & ROW North America tEUR Q2 2023 Q2 2022 Growth YTD 2023 YTD 2022 Growth Q2 2023 Q2 2022 Growth YTD 2023 YTD 2022 Growth Revenue 55,188 41,719 32% 105,990 78,004 36% 22,926 14,324 60% 60,070 45,433 32% Share of Group 71% 74% 64% 63% 29% 26% 36% 37% Cost 34,061 28,806 18% 66,131 55.067 20% 15,357 15,012 2% 37,957 33,034 15% Share of Group 69% 66% 64% 63% 31% 34% 36% 37% Operating profit before depreciation, amortization, and special items 21,127 12,913 64% 39,859 22,938 74% 7,569 - 687 1.202% 22,112 12,399 78% Share of Group 74% 106% 64% 65% 26% -6% 36% 35% EBITDA-Margin before special items 38% 31% 38% 29% 33% -5% 37% 27% Operating profit before depreciation and amortiza- tion 20,246 12,723 59% 38,534 22,648 70% 6,689 - 876 863% 20,788 12,109 72% EBITDA-Margin 37% 30% 36% 29% 29% -6% 35% 27% 3 ===== SIDA 11 ===== Q2 report 2023 Page 10 Financial performance H1 2023 Revenue growth of 35% to 166 mEUR and organic growth of 27% Revenue YTD showed strong growth vs. 2022 of 35 % and amounted to 166.1 mEUR (YTD 2022: 123.4 mEUR). Revenue share accounted for 44% of the revenue with 40% coming from CPA, 5% from subscription sales, and 5% from other income. Cost of 104 mEUR - up from 88 mEUR The increased costs are driven by Paid Media where in- creased cost is mainly to drive additional traffic and rev- enue, whereas media partnerships increased, primarily direct cost. The cost base excluding depreciation and amortization grew 16 mEUR, up to 104.1 mEUR YTD 2023 (YTD 2022: 88.1 mEUR). A significant part of the increase in cost base relates to an increase in p ersonnel cost given the increase in number of employees from 853 at YTD 2022 to 966 YTD 2023. Total direct cost relating to revenue increased by 5.4 mEUR to 49 .2 mEUR (YTD 2022: 43.8 mEUR) with the growth coming from increased cost in Paid Media (driv- ing additional revenue), and direct costs related to media partnerships. Beyond the cost of paid traffic, this includes hosting fees of websites, content generation, and external development. Personnel cost YTD increased 28% from YTD 2022 to 42.6 mEUR YTD 2023 (YTD 2022: 33.4 mEUR). The av- erage number of employees increased 13% to 966 (YTD 2022: 853). Personnel costs include costs related to war- rants of 1,6 mEUR (YTD 2022: 0.8 mEUR). Other external costs increas ed 1.4 mEUR or 13% to 12 .3 mEUR (YTD 2022: 10.9 mEUR). Depreciation and amor- tization amounted to 11 .4 mEUR (YTD 2022: 6 mEUR). The increase is primarily due to amortization related to the acquisition of FUTBIN and Skycon as well as new media partnerships. Special items YTD special items amounted to a cost of 1.8 mEUR (YTD 2022: 1.0 mEUR). The net cost of 1 .8 mEUR is primarily related to M&A expenses of 1.0 mEUR and restructuring of 0.8 mEUR. Earnings Operational earnings (EBITDA) before special items grew 75% to 61 .9 mEUR (YTD 2022: 35.3 mEUR). The EBITDA-margin before special items was 37% ( YTD 2022: 29%). Including special items, the reported EBITDA was 60 .1 mEUR. (YTD 2022: 34.3 mEUR). EBIT before special items increased 73% to 50.6 mEUR (YTD 2022: 29.3 mEUR). Including special items, the re- ported EBIT was 48.9 mEUR (YTD 2022: 28.3 mEUR). Net financial items Net financial costs amounted to 9.6 mEUR (YTD 2022: 1.3 mEUR) and included net i nterest, fees relating to bank credit lines and exchange rate adjustments. Net fi- nancial costs are impacted by an unrealized loss of 2.4 mEUR on Catena Media shares. Interest expenses amounted to 5 mEUR and included non-payable, calculated interest expense s on certain balance sheet items, whereas financial fees and net exchange rate loss amounted to 0.4 mEUR and 1 .9 mEUR respectively. Income tax Better Collective has a tax presence in the places where the company is incorporated . These places count Den- mark (where the parent company is incorporated), Aus- tria, France, Greece, Malta, Netherlands, Poland, Portu- gal, Romania, Serbia, Sweden, UK, and US. Income tax YTD 2023 amounted to 10 mEUR (YTD 2022: 6.1 mEUR). The Effective Tax Rate (ETR) was 2 5.4% (YTD 2022: 22.6%). Net profit Net profit after tax was 29. 2 mEUR ( YTD 2022: 20.8 mEUR). Earnings per share (EPS) increased by nearly 40% to 0.53 EUR/share vs. 0.38 EUR/share YTD 2022. Equity The equity increased to 430 .2 mEUR as per June 30 , 2023, from 412.9 mEUR on December 31, 2022. Besides the YTD profit of 29.2 mEUR, the equity has been im- pacted by acquisition of treasury shares of 9 .6 mEUR and share based payments of 1.6 mEUR. The decrease in USD vs. EUR has impacted the equity by 3.9 mEUR. Balance sheet Total assets amounted to 875 .3 mEUR (202 2: 785.2 mEUR), with an equity of 430 .2 mEUR (202 2: 412.9 mEUR). This corresponds to an equity to assets ratio of 49% (2022: 53%). The liquidity ratio was 1.61 resulting from current assets of 126.1 mEUR and current liabilities of 78.3.2 mEUR. The ratio of net interest-bearing debt to EBITDA before special items was 2.3 at the end of June. Investments On 14 April, Better Collective acquired Skycon for a pur- chase price of up to 51 mEUR on a cash and debt free ===== SIDA 12 ===== Q2 report 2023 Page 11 basis. The net cash flow impact of the transaction was 30 mEUR considering deferred payments and acquired net assets. During the period investments in accounts and other intangibles amounted to 13.9 mEUR. Cash flow and financing Cash flow from operations before special items YTD 2023 was 67.6 mEUR ( YTD 2022: 35.6 mEUR) with a cash conversion of 106%. At 30 June, Better Collective has bank credit facilities of a total 247 mEUR. By the end of June 2023, capital re- serves stood at 78 mEUR consisting of cash of 65 mEUR, other current financial assets of 13 mEUR in form of listed shares. In August Better Collective extended the club-financing by three years to October 2026 as well as executing the accordion option and thereby increasing the available facilities with 72 mEUR, leaving the group with a total financing of 319 mEUR where 247 mEUR has been utilized. The parent company Better Collective A/S, Denmark, is the parent company of the group. Revenue grew by 74% to 48 .2 mEUR (YTD 2022: 27.8 mEUR). Total costs including depreciation and amortization was 42.1 mEUR (YTD 2022: 27.6 mEUR). Profit after tax was 8. 4 mEUR (YTD 2022: 36.9 mEUR). The change in profit after tax is primarily due to YOY differences in dividend payments from subsidiaries, exchange rate adjustments, and corporate tax. Total equity ended at 413 .2 mEUR by June 30 , 202 3 (2022: 411.1 mEUR). The equity in the parent company was impacted by treasury share transactions ( 9.6 mEUR), cost of warrants of 1.6 mEUR and merger with HLTV (3.2 mEUR) Disclaimer This report contains forward -looking statements which are based on the current expectations of the manage- ment of Better Collective. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual profits and devel- opments deviating substantially from what has been ex- pressed or implied in such statements. Financial targets 2023 The board of directors has decided on targets for the fi- nancial year 2023 as announced in the 2022 full year re- port. Following the acquisition of Skycon Limited and the record breaking Q1 , the financial targets were up- graded: • Revenue of 315-325 mEUR (previously 305-315 mEUR) • EBITDA before special items of 105-115 mEUR (previously 95-105 mEUR) • Net debt to EBITDA before special items <2.0 (un- changed) Financial targets 2023-2027 The new financial targets for the Better Collective group for 2023-2027 (include M&A): • Revenue CAGR of +20% • EBITDA margin before special items of 30-40% • Net debt to EBITDA before special items of <3 The long-term target assumes that M&A are solely fi- nanced by own cash flow and debt. Financial targets 2023 Updated targets 2023 Targets 2023 Actual 2022 Revenue 315-325 mEUR 290-300 mEUR 269.3 mEUR EBITDA (before special items) 105-115 mEUR 90-10 0 mEUR 85.1 mEUR Net interest bearing debt/EBITDA <2.0 <2.0 2.67 ===== SIDA 13 ===== Q2 report 2023 Page 12 Other Shares and share capital Better Collective A/S is listed on Nasdaq Stockholm main market. The shares are traded under the ticker “BETCO”. As per June 30, 2023, the share capital amounted to 551, 768.36 EUR, and the total number of issued shares was 55,176,836. The company has one ( 1) class of shares. Each share entitles the holder to one vote at the general meetings. On June 9, 2023, the board of directors resolved to issue 22,167 new ordinary shares in Better Collective A/S, related to the exercise of war- rants. Shareholder structure As of June 30, 2023, the total number of shareholders was 4,116. A list of top ten shareholders in Better Collective A/S can be found on the group’s website. Annual General Meeting 2023 The Annual General Meeting 2023 was held on April 25, 2023. All items on the agenda were carried , including the CXO incentive program. An Extraordinary General Meeting was held August 8, 2023. All items on the agenda were carried out including the election of Britt Boeskov and René Rechtman as new members of the board of directors. Incentive programs To attract and retain key competences, the company has established warrant programs for certain key em- ployees. All warrants with the right to subscribe for one ordinary share. If all outstanding warrants are sub- scribed, then the maximum shareholders dilution will be approximately 4.9%. On January 3, 2023, the board of directors implemented a Long-Term Incentive Plan (LTI) for key employees in the Better Collective group. In total the grants under the LTI in 2023 cover 134.953 performance share units and 239,350 share options to 63 key employees in total, vesting over a 3-year period. The total value of the 2023 LTI grant program is 2.9 mEUR (calculated Black - Scholes value) measured at the target level, which is to say 100% achievement of the financial goals. On April 25, 2023, a new LTI program was approved for executive management. The total grant of 300,000 share options will vest over a 3-year period given certain vesting conditions set by the Board of Directors. The to- tal value of the 2023 LTI grant program is 2.6 mEUR (cal- culated Black -Scholes value) measured at the target level, which is to say 100% achievement of the financial goals. Risk management Through an Enterprise Risk Management process, vari- ous gross risks in Better Collective are identified. Each risk is described, including current risk mitigation in place, or planned mitigating actions. The subsequent analysis of the identified risks includes an inherent risk evaluation based on two main parameters: probability of occurrence and impact on future earni ngs and cash flow. Better Collective’s management continuously monitors risk development in the Better Collective group. The risk evaluation is presented to the Board of Directors annually, for discussion and any further miti- gating actions required. The board evaluates risk dy- namically to account for this variation in risk impact. The policies and guidelines in place stipulate how management must work with risk management. Better Collective’s compliance with these policies and guide- lines is also monitored by the management on an ongo- ing basis. Better Collective seeks to identify and under- stand risks and mitigate them accordingly. Also, the group’s close and longstanding relationships with cus- tomers allow Better Collective to anticipate and respond to market movements and new regulations including compliance requirements from authorities and sports- books. With the US division, the overall risk profile of Better Collective has changed, and compliance as well as financial risk have increased. Better Collective has mitigated the additional risks in US in several ways, compliance risk through involvement of regulatory bodies in our licensing process for newly ===== SIDA 14 ===== Q2 report 2023 Page 13 established entities, financial risk through a perfor- mance-based valuation of the acquired entities, and or- ganizational risk through establishment of local govern- ance, and finance, HR, and legal organization dedicated to the US operations. During 2022 and 2023 the macro- economic environment has impacted the global econ- omy with rising interest rates. Better Collective has mit- igated and addressed the credit and interest rate risk by entering a new long-term committed facility with three banking partners in August , securing attractive terms and a long-term 3-year commitment. Other key risk fac- tors are described in the Annual report 2022. Contacts Senior Director Group Strategy, IR and Corp. Comms. Mikkel Munch-Jacobsgaard investor@bettercollective.com This information is such information as Better Collective A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above on August 22, 2023, after market close (CET). About With a vision to become the leading digital sports media group, Better Collective own s and operate s interna- tional and local sports communities and media that aim to make sports entertainment more engaging and fun. Via its online media, the group provides prime quality content, data insights, betting tips and educational tools for enthusiastic sports fans. Better Collective's portfolio includes Action Network, VegasInsider.com, HLTV.org , FUTBIN.com, and bettingexpert.com. To learn more about Better Collective please visit www.Bettercollective.com Q2 report 2023 Page 13 ===== SIDA 15 ===== Q2 report 2023 Page 14 Statement by the board of directors and the executive management Statement by the board of directors and the executive management on the condensed consolidated interim financial statements and the parent company condensed interim financial statements for the period January 1 – June 30, 2023. Today, the board of directors and the executive management have discussed and approved the condensed consolidated interim financial statements and the parent company condensed interim financial statements of Better Collective A/S for the period January 1 – June 30, 2023. The condensed consolidated interim financial state- ments for the period January 1 – June 30, 2023, are pre- pared in accordance with IAS 34 Interim Financial Re- porting as adopted by the EU, and additional require- ments of the Danish Financial Statements Act. The par- ent company condensed interim financial statements have been included according to the Danish Executive Order on the Preparation of Interim Financial Reports. In our opinion, the condensed consolidated interim financial statements and the parent company con- densed interim financial statements give a true and fair view of the group’s and parent company’s assets, liabilities and financial position on June 30, 2023, and of the results of the group’s and parent company’s opera- tions and the g roup’s cash flows for the period January 1 – June 30, 2023. Further, in our opinion, the management’s review gives a fair review of the development in the group’s and the parent company’s operations and financial matters and the results of the group’s and the parent company’s op- erations and financial position, as well as a description of the major risks and uncertainties, the g roup and the parent company are facing. The interim report has not been audited nor reviewed by the company’s auditor. Copenhagen, August 22, 2023 Executive management Jesper Søgaard Co-founder & CEO Christian Kirk Rasmussen Co-founder & COO Executive Vice President Flemming Pedersen CFO Executive Vice President Board of directors Jens Bager Chair Therese Hillman Vice Chair Britt Boeskov Todd Dunlap Leif Nørgaard René Rechtman Petra von Rohr ===== SIDA 16 ===== Q2 report 2023 Page 15 Financial statements for the period January 1 – June 30 Condensed interim consolidated income statement Note tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 3 Revenue 78,115 56,043 166,060 123,437 269,297 Direct costs related to revenue 22,045 20,679 49,194 43,756 92,227 4 Staff costs 21,383 17,690 42,610 33,402 68,639 Other external expenses 5,990 5,448 12,285 10,943 23,356 Operating profit before depreciation and amortization (EBITDA) and special items 28,696 12,226 61,971 35,337 85,075 Depreciation 698 483 1,412 970 2,321 Operating profit before amortization (EBITA) and special items 27,998 11,743 60,560 34,367 82,754 7 Amortization and impairment 6,068 2,751 9,939 5,040 12,347 Operating profit (EBIT) before special items 21,930 8,991 50,621 29,327 70,407 5 Special items, net - 1,218 638 - 1,826 - 1,044 - 54 Operating profit 20,712 9,629 48,795 28,283 70,353 Financial income 707 1,028 3,379 3,345 4,198 Financial expenses 9,579 1,756 12,986 4,694 9,587 Profit before tax 11,840 8,901 39,188 26,935 64,964 6 Tax on profit for the period 3,538 1,796 9,952 6,088 16,888 Profit for the period 8,302 7,105 29,237 20,847 48,075 Earnings per share attributable to equity holders of the company Average number of shares 55,159,297 54,683,432 55,154,814 54,596,952 54,363,312 Average number of warrants - converted to number of shares 2,609,804 2,350,149 2,527,978 2,576,250 2,495,614 Earnings per share (in EUR) 0.15 0.13 0.53 0.38 0.88 Diluted earnings per share (in EUR) 0.14 0.12 0.51 0.36 0.85 Condensed interim consolidated statement of other comprehensive income Note tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Profit for the period 8,302 7,105 29,237 20,847 48,075 Other comprehensive income Other comprehensive income to be reclassified to profit or loss in subsequent periods: Currency translation to presentation currency 393 - 320 - 284 - 494 - 905 Currency translation of non-current intercompany loans 100 19,182 - 5,007 24,640 17,030 Income tax - 22 - 4,220 1,101 - 5,421 - 3,747 Net other comprehensive income/loss 471 14,642 - 4,190 18,725 12,379 Total comprehensive income/(loss) for the period, net of tax 8,774 21,747 25,047 39,572 60,454 Attributable to: Shareholders of the parent 8,774 21,747 25,047 39,572 60,454 ===== SIDA 17 ===== Q2 report 2023 Page 16 Condensed interim consolidated balance sheet Note tEUR Q2 2023 Q2 2022 2022 Assets Non-current assets 7 Intangible assets Goodwill 214,946 186,565 183,942 Domains and websites 460,114 466,360 460,513 Accounts and other intangible assets 51,726 23,553 27,016 Total intangible assets 726,786 676,478 671,471 Property, plant and equipment Land and buildings Right of use assets 6,878 2,218 6,269 Leasehold improvements, Fixtures and fittings, other plant and equipment 3,920 1,973 2,574 Total property, plant and equipment 10,797 4,191 8,843 Other non-current assets Other non-current financial assets 0 0 0 Deposits 1,649 669 726 Deferred tax asset 9,989 9,578 9,165 Total other non-current assets 11,637 10,247 9,891 Total non-current assets 749,221 690,917 690,204 Current assets Trade and other receivables 38,433 33,969 53,179 Corporation tax receivable 6,781 561 6,423 Prepayments 3,842 3,179 3,926 Other current financial assets 12,508 0 0 Cash 64,536 32,971 31,497 Total current assets 126,100 70,680 95,025 Total assets 875,320 761,597 785,229 Note tEUR Q2 2023 Q2 2022 2022 Equity and liabilities Equity Share Capital 552 550 551 Share Premium 272,786 272,252 272,550 Currency Translation Reserve 18,987 29,523 23,177 Treasury Shares - 17,249 - 13 - 7,669 Retained Earnings 155,144 98,005 124,307 Proposed Dividends 0 0 0 Total equity 430,220 400,317 412,917 Non-current Liabilities 8 Debt to credit institutions 246,932 185,722 201,708 8 Lease liabilities 5,980 1,147 4,962 8 Deferred tax liabilities 86,159 75,048 78,167 8 Other long-term financial liabilities 27,700 5,642 22,407 8 Contingent Consideration 0 0 0 Total non-current liabilities 366,771 267,560 307,244 Current Liabilities Prepayments received from customers and deferred revenue 4,282 5,675 8,023 Trade and other payables 16,360 20,348 22,252 Corporation tax payable 3,864 8,178 5,221 8 Other financial liabilities 52,553 38,125 26,865 8 Contingent Consideration 0 0 0 Debt to credit institutions 0 20,163 1,055 8 Lease liabilities 1,270 1,232 1,653 Total current liabilities 78,329 93,721 65,068 Total liabilities 445,100 361,281 372,312 Total Equity and liabilities 875,320 761,597 785,229 ===== SIDA 18 ===== Q2 report 2023 Page 17 Condensed interim consolidated statement of changes in equity tEUR Share capital Share premium Currency translation reserve Treasury shares Retained earnings Proposed dividend Total equity As of January 1, 2023 551 272,550 23,177 - 7,669 124,307 0 412,917 Result for the period 0 0 0 0 29,237 0 29,237 Other comprehensive income Currency translation to presentation currency 0 0 - 5,291 0 0 0 - 5,291 Tax on other comprehensive income 0 0 1,101 0 0 0 1,101 Total other comprehensive income 0 0 - 4,190 0 0 0 - 4,190 Total comprehensive income for the year 0 0 - 4,190 0 29,237 0 25,047 Transactions with owners Capital Increase 1 236 0 0 0 0 236 Acquisition of treasury shares 0 0 0 - 9,571 0 0 - 9,571 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 1,604 0 1,604 Transaction cost 0 0 0 - 10 - 4 0 - 14 Total transactions with owners 1 236 0 - 9,580 1,600 0 - 7,744 At June 30, 2023 552 272,786 18,987 - 17,249 155,144 0 430,220 During the period no dividend was paid. tEUR Share capital Share premium Currency translation reserve Treasury shares Retained earnings Proposed dividend Total equity As of January 1, 2022 546 267,873 10,798 - 8,074 73,705 0 344,848 Result for the period 0 0 0 0 20,847 0 20,847 Other comprehensive income Currency translation to presentation currency 0 0 24,146 0 0 0 24,146 Tax on other comprehensive income 0 0 - 5,421 0 0 0 - 5,421 Total other comprehensive income 0 0 18,725 0 0 0 18,725 Total comprehensive income for the year 0 0 18,725 0 20,847 0 39,572 Transactions with owners Capital Increase 4 4,379 0 0 0 0 4,382 Acquisition of treasury shares 0 0 0 - 6,595 0 0 - 6,595 Disposal of treasury shares 0 0 0 14,656 842 0 15,498 Share based payments 0 0 0 0 2,626 0 2,626 Transaction cost 0 0 0 0 - 15 0 - 15 Total transactions with owners 4 4,379 0 8,061 3,453 0 15,896 At June 30, 2022 550 272,252 29,523 - 13 98,005 0 400,317 During the period no dividend was paid. ===== SIDA 19 ===== Q2 report 2023 Page 18 Condensed interim consolidated statement of changes in equity – continued tEUR Share capital Share premium Currency translation reserve Treasury shares Retained earnings Proposed dividend Total equity As of January 1, 2022 546 267,873 10,798 - 8,074 73,705 0 344,848 Result for the period 0 0 0 0 48,075 0 48,075 Other comprehensive income Currency translation to presentation currency 0 0 16,125 0 0 0 16,125 Tax on other comprehensive income 0 0 - 3,747 0 0 0 - 3,747 Total other comprehensive income 0 0 12,379 0 0 0 12,379 Total comprehensive income for the year 0 0 12,379 0 48,075 0 60,454 Transactions with owners Capital Increase 5 4,677 0 0 0 0 4,683 Acquisition of treasury shares 0 0 0 - 14,250 0 0 - 14,250 Disposal of treasury shares 0 0 0 14,656 842 0 15,498 Share based payments 0 0 0 0 1,713 0 1,713 Transaction cost 0 0 0 0 - 28 0 - 28 Total transactions with owners 5 4,677 0 406 2,526 0 7,615 At December 31, 2022 551 272,550 23,177 - 7,669 124,307 0 412,917 During the period no dividend was paid. ===== SIDA 20 ===== Q2 report 2023 Page 19 Condensed interim consolidated statement of cash flows Note tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Profit before tax 11,840 8,901 39,188 26,935 64,964 Adjustment for finance items 8,872 728 9,607 1,349 5,389 Adjustment for special items 1,218 - 638 1,826 1,044 54 Operating Profit for the period before special items 21,930 8,991 50,621 29,327 70,407 Depreciation and amortization 6,766 3,234 11,350 6,009 14,668 Other adjustments of non-cash operating items 1,509 51 1,609 446 1,690 Cash flow from operations before changes in working capital and special items 30,205 12,276 63,581 35,783 86,765 Change in working capital 4,048 10,227 4,033 - 135 - 16,949 Cash flow from operations before special items 34,253 22,503 67,613 35,648 69,816 Special items, cash flow - 1,273 - 189 - 1,668 - 290 - 1,393 Cash flow from operations 32,980 22,313 65,946 35,358 68,423 Financial income, received 178 654 642 1,299 1,682 Financial expenses, paid - 883 - 1,453 - 4,051 - 3,072 - 5,666 Cash flow from activities before tax 32,275 21,515 62,536 33,586 64,439 Income tax paid - 5,169 - 1,530 - 8,967 - 2,980 - 16,239 Cash flow from operating activities 27,107 19,984 53,569 30,606 48,200 9 Acquisition of businesses - 29,767 - 10,604 - 29,767 - 13,181 - 14,337 7 Acquisition of intangible assets - 420 - 76,067 -3,624 -92,430 - 96,452 Acquisition of property, plant and equipment - 2,369 - 291 - 2,182 - 561 - 1,804 Sale of property, plant and equipment 241 - 0 3 - 0 16 Acquisition of other financial assets - 0 0 - 14,930 0 0 Change in other non-current assets 2,833 - 52 - 261 10 - 55 Cash flow from investing activities - 29,483 - 87,014 - 50,761 - 106,161 - 112,632 Note tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Repayment of borrowings 0 - 5,069 - 1,486 - 10,109 - 215,993 Proceeds from borrowings 45,490 73,983 45,490 94,982 296,665 Lease liabilities - 145 - 348 - 518 - 690 - 1,274 Other non-current liabilities - 4,124 0 - 4,124 0 0 Capital increase 193 316 236 316 618 Treasury shares - 3,674 0 - 9,583 - 6,595 - 14,250 Transaction cost - 4 0 - 10 - 15 - 28 Warrant settlement, sale of warrants 0 0 0 0 0 Cash flow from financing activities 37,736 68,882 30,006 77,890 65,737 Cash flows for the period 35,360 1,853 32,814 2,334 1,306 Cash and cash equivalents at beginning 28,847 30,680 31,497 30,093 30,093 Foreign currency translation of cash and cash equivalents 329 438 224 544 99 Cash and cash equivalents period end* 64,536 32,971 64,536 32,971 31,497 Cash and cash equivalents period end Cash 64,536 32,971 64,536 32,971 31,497 Cash and cash equivalents period end 64,536 32,971 64,536 32,971 31,497 ===== SIDA 21 ===== Q2 report 2023 Page 20 Notes 1. General information Better Collective A/S is a limited liability company and is incorporated in Denmark. The parent company and its subsidiaries (referred to as the “Group” or “Better Collective”) engage in online affiliate marketing. Better Collective’s vision is to empower iGamers by leading the way in transparency and technology. Basis of preparation The Interim Report (condensed consolidated interim financial statements) for the period January 1 - June 30, 2023, has been prepared in accordance with IA S 34 “Interim financial statements” as adopted by the EU and additional require- ments in the Danish Financial Statements Act. The parent company condensed interim financial statements has been included according to the Danish Executive Order on the Preparation of Interim Financial Reports. These condensed consolidated interim financial statements incorporate the results of Better Collective A/S and its sub- sidiaries. The condensed consolidated interim financial statements refer to certain key performance indicators, which Better Col- lective and others use when evaluating the performance of Better Collective. These are referred to as alternative per- formance measures (APMs) and are not defined under IFRS. The figures and related subtotals give management and investors important information to enable them to fully analyze the Better Collective business and trends. The APMs are not meant to replace but to complement the performance measures defined under IFRS. New financial reporting standards All new or amended standards (IFRS) and interpretations (IFRIC) as adopted by the EU and which are effective for the financial year beginning on January 1, 2023, have been adopted. The implementation of these new or amended standards and interpretations had no material impact on the condensed consolidated interim financial statements. Accounting policies The condensed consolidated interim financial statements have been prepared using the same accounting policies as set out in note 1 of the 2022 annual report which contains a full description of the accounting policies for the Group and the parent company, except for the scope of operating segments. The scope of operating segments has been modified following changes in management responsibilities as from January 1, 2023. US has been renamed to North America (NA) and will now cover both USA and Canada. Canada was previously included in the operating segment “Europe and RoW”. 2022 comparative information has been restated. The annual report for 2022 including full description of the accounting policies can be found on Better Collective’s web- site: https://storage.mfn.se/0e9df7fa-f018-42b8-9189-6ee99458c094/bc-2022-annual-report-final.pdf Significant accounting judgements, estimates and assumptions The preparation of condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenue, expenses, assets, and liabilities. Beyond the risks mentioned above, the significant accounting judgements, estimates and assumptions applied in these consolidated interim financial statements are the same as disclosed in note 2 in the annual report for 202 2 which contains a full description of significant accounting judgements, estimates and assumptions. ===== SIDA 22 ===== Q2 report 2023 Page 21 2. Segments Publishing and Paid Media Better Collective operates two different business models regarding customer acquisition with different earnings - profiles. The segments Publishing and Paid Media have been measured and disclosed separately for Revenue, Cost and Earnings. The Publishing business includes revenue from Better Collective’s proprietary online sports media and media partnerships where the online traffic is coming either directly or through organic search results, whereas Paid Media generates revenue through paid ad-traffic to our websites, thereby running on a lower earnings margin. The performance for each segment is presented in the below tables: Publishing Paid Group tEUR Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Revenue 53,547 38,126 24,567 17,917 78,115 56,043 Cost 32,392 28,116 17,026 15,701 49,418 43,818 Operating profit before depreciation, amortization and special items 21,155 10,010 7,541 2,216 28,696 12,226 EBITDA-Margin before special items 40% 26% 31% 12% 37% 22% Special items, net - 1,218 638 0 0 - 1,218 638 Operating profit before depreciation and amortization 19,937 10,647 7,541 2,216 27,478 12,863 EBITDA-Margin 37% 28% 31% 12% 35% 23% Depreciation 695 479 3 4 698 483 Operating profit before amortization 19,242 10,168 7,538 2,212 26,780 12,380 EBITA-Margin 36% 27% 31% 12% 34% 22% Publishing Paid Group tEUR YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 Revenue 112,751 86,506 53,309 36,931 166,060 123,437 Cost 66,187 56,260 37,902 31,841 104,089 88,101 Operating profit before depreciation, amortization and special items 46,564 30,246 15,407 5,090 61,971 35,337 EBITDA-Margin before special items 41% 35% 29% 14% 37% 29% Special items, net - 1,826 - 1,044 0 0 - 1,826 - 1,044 Operating profit before depreciation and amortization 44,739 29,203 15,407 5,090 60,146 34,293 EBITDA-Margin 40% 34% 29% 14% 36% 28% Depreciation 1,405 961 6 9 1,412 970 Operating profit before amortization 43,333 28,242 15,400 5,081 58,734 33,323 EBITA-Margin 38% 33% 29% 14% 35% 27% Publishing Paid Group tEUR 2022 2022 2022 Revenue 187,057 82,241 269,297 Cost 115,376 68,846 184,222 Operating profit before depreciation, amortization and special items 71,681 13,394 85,075 EBITDA-Margin before special items 38% 16% 32% Special items, net - 54 0 - 54 Operating profit before depreciation and amortization 71,627 13,394 85,021 EBITDA-Margin 38% 16% 32% Depreciation 2,306 15 2,321 Operating profit before amortization 69,321 13,379 82,700 EBITA-Margin 37% 16% 31% ===== SIDA 23 ===== Q2 report 2023 Page 22 2. Segments, continued Europe & Rest of World and North America Better Collective’s products cover more than 30 languages and attract millions of users worldwide - with international brands with a global reach as well as regional brands with a local reach. Better Collective’s regional brands are tailored according to the specific regions or countries and their respective regulations, sports, betting behaviors, user needs, and languages. From Q2 2021 and following the acquisition of Action Network (included in Group accounts from time of closing on May 28, 2021) the US m arket constitutes >20% of Group Revenue and >30% of revenue in Publishing on an annualized basis. Hence, Better Collective reports on the geographical segments US and Europe & ROW (Rest of World), measuring and disclosing separately for Revenue, Cost and E arnings. Historical financial figures are reported accord- ingly. The performance for each segment is presented in the below tables: * 2022 figures have been restated because of the transfer of Canada and renaming USA to North America (NA), which now covers both USA and Canada from January 1, 2023. Europe & RoW North America Group tEUR YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 Revenue 105,990 78,004 60,070 45,433 166,060 123,437 Cost 66,131 55,067 37,957 33,034 104,089 88,101 Operating profit before de- preciation, amortization and special items 39,859 22,938 22,112 12,399 61,971 35,337 EBITDA-Margin before spe- cial items 38% 29% 37% 27% 37% 29% Special items, net - 1,325 - 290 - 501 - 754 - 1,826 - 1,044 Operating profit before depreciation and amortization 38,534 22,648 21,611 11,645 60,146 34,293 EBITDA-Margin 36% 29% 36% 26% 36% 28% Depreciation 941 773 470 197 1,412 970 Operating profit before amortization 37,593 21,875 21,141 11,448 58,734 33,323 EBITA-Margin 35% 28% 35% 25% 35% 27% Europe & Row North America Group tEUR 2022 2022 2022 Revenue 173,664 95,633 269,297 Cost 115,620 68,602 184,222 Operating profit before depreciation, amortization and special items 58,044 27,031 85,075 EBITDA-Margin before special items 33% 28% 32% Special items, net - 1,360 1,306 - 54 Operating profit before depreciation and amortization 56,684 28,336 85,021 EBITDA-Margin 33% 30% 32% Depreciation 1,671 650 2,321 Operating profit before amortization 55,013 27,687 82,700 EBITA-Margin 32% 29% 31% Europe & RoW North America Group tEUR Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Revenue 55,188 41,719 22,926 14,324 78,115 56,043 Cost 34,061 28,806 15,357 15,012 49,418 43,818 Operating profit before de- preciation, amortization and special items 21,127 12,913 7,569 - 687 28,696 12,226 EBITDA-Margin before spe- cial items 38% 31% 33% -5% 37% 22% Special items, net - 881 - 189 - 338 827 - 1,218 638 Operating profit before depreciation and amortization 20,246 12,723 7,232 140 27,478 12,863 EBITDA-Margin 37% 30% 32% 1% 35% 23% Depreciation 480 381 219 102 698 483 Operating profit before amortization 19,767 12,343 7,013 38 26,780 12,380 EBITA-Margin 36% 30% 31% 0% 34% 22% ===== SIDA 24 ===== Q2 report 2023 Page 23 3. Revenue specification In accordance with IFRS 15 disclosure requirements, total revenue is split on Revenue Share, Cost per Acquisition (CPA), Subscription, and Other as follows: tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Revenue category Recurring revenue (Revenue share, Subscription, CPM) 45,795 27,574 86,677 50,977 123,365 CPA, Fixed Fees 32,296 27,992 79,359 71,824 145,605 Other 24 477 24 637 327 Total revenue 78,115 56,043 166,060 123,437 269,297 %-split Recurring revenue 59 49 52 41 46 CPA, Fixed Fees 41 50 48 58 54 Other 0 1 0 1 0 Total 100 100 100 100 100 tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Revenue type Revenue Share 39,058 21,658 72,674 41,217 96,449 CPA 25,640 24,422 65,886 64,323 124,324 Subscription 4,080 3,872 8,563 7,648 18,003 Other 9,338 6,092 18,936 10,249 30,521 Total revenue 78,115 56,043 166,060 123,437 269,297 %-split Revenue Share 50 39 44 33 36 CPA 33 44 40 52 46 Subscription 5 7 5 6 7 Other 12 11 11 8 11 Total 100 100 100 100 100 4. Share-based payment plans 2019 Warrant programs: During the second quarter of 2023 the company did not grant any new warrants and 22,167 warrants were exercised under this program. 2022 Incentive Program: During the second quarter of 2023 no performance share units or share options were granted under this program. A new Long-term Incentive (LTI) program was established for key employees in Q1 2022, and 73,894 performance share units and 24,564 share options were granted to a total of 36 employees. 2023 Incentive Program: During the first quarter of 2023 a new Long-term Incentive (LTI) program was established for key employees. Under the program 134,953 performance share units and 239,350 share options were granted to a total of 63 employees. 2023 CXO Options Program: During the second quarter of 2023 a new options program was established for the executive management. Under the program 300,000 share options were granted to a total of 3 employees. The total share-based compensation expense for the above programs recognized for Q2 2023 is 1,407 tEUR (Q2 2022: 812 tEUR). Management Incentive Program - Action Network: During the quarter no performance share units or share options were granted under this program. The cost related to the MIP program is recognized as special items and amounts to 60 tEUR in Q2 2023 (Q2 2022: 3,162 tEUR). ===== SIDA 25 ===== Q2 report 2023 Page 24 5. Special items Significant income and expenses, which Better Collective consider non-recurring are presented in the Income state- ment in a separate line item labelled ‘Special items’. The impact of special items is specified as follows: tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Operating profit 20,712 9,629 48,795 28,283 70,353 Special Items related to: Special items related to IPO 0 0 0 0 0 Special items related to M&A - 605 - 189 - 956 - 290 - 1,263 Variable payments regarding acquisitions - cost - 49 2,408 - 142 2,408 2,275 Variable payments regarding acquisitions - income 0 Special items related to Restructuring - 504 0 - 668 - 0 - 130 Special items related to Divestiture of Assets 0 0 0 0 0 Special items related to Management Incentive Program - 60 - 1,581 - 60 - 3,162 - 936 Special items, total - 1,218 638 - 1,826 - 1,044 - 54 Operating profit (EBIT) before special items 21,930 8,991 50,621 29,327 70,407 Amortization and impairment 6,068 2,751 9,939 5,040 12,347 Operating profit before amortization and special items (EBITA before special items) 27,998 11,743 60,560 34,367 82,754 Depreciation 698 483 1,412 970 2,321 Operating profit before depreciation, amortization, and special items (EBITDA before special items) 28,696 12,226 61,971 35,337 85,075 6. Income tax Total tax for the period is specified as follows: tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Tax for the period 3.538 1.796 9.952 6.088 16.888 Tax on other comprehensive income 22 4.220 - 1.101 5.421 3.747 Total 3.560 6.016 8.850 11.509 20.635 Income tax on profit for the period is specified as follows: tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Deferred tax - 671 - 2 1.891 2.147 6.785 Current tax 4.226 1.776 8.077 3.919 10.153 Adjustment from prior years - 16 22 - 16 22 - 49 Total 3.538 1.796 9.952 6.088 16.888 Tax on the profit for the period can be explained as follows: tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Specification for the period: Calculated 22% tax of the result before tax 2,605 1,958 8,621 5,926 14,292 Adjustment of the tax rates in foreign subsidiaries relative to the 22% 496 175 997 466 1,563 Tax effect of: 0 0 Special items 387 - 142 387 260 - 83 Special items - taxable items 0 - 443 0 - 822 - 243 Other non-taxable income - 1,634 - 0 - 1,780 - 100 - 150 Other non-deductible costs 1,701 225 1,743 337 1,558 Adjustment of tax relating to prior periods* -16 22 -16 22 -49 Total 3,538 1,796 9,952 6,088 16,888 Effective tax rate 29.9% 20.2% 25.4% 22.6% 26.0% ===== SIDA 26 ===== Q2 report 2023 Page 25 7. Intangible assets tEUR Goodwill Domains and websites Accounts and other intangible assets Total Cost or valuation As of January 1, 2023 183,942 460,513 63,705 708,159 Additions 0 3,840 12,104 15,944 Acquisitions through business combinations 32,755 0 24,227 56,982 Transfer 0 0 0 Disposals 0 0 - 2,266 - 2,266 Currency Translation - 1,751 - 4,238 - 438 - 5,205 At June 30, 2023 214,946 460,114 97,332 773,614 Amortization and impairment As of January 1, 2023 0 0 36,688 36,688 Amortization for the period 0 0 9,853 9,853 Impairment for the period* 0 0 0 0 Amortization on disposed assets 0 0 0 0 Currency translation 0 0 - 936 286 At June 30, 2023 0 0 45,605 46,827 Net book value at June 30, 2023 214,946 460,114 51,726 726,786 tEUR Goodwill Domains and websites Accounts and other intangible assets Total Cost or valuation As of January 1, 2022 178,182 329,276 36,827 544,285 Additions 0 118,185 26,337 144,522 Acquisitions through business combinations 0 0 0 0 Transfer 0 0 0 0 Disposals 0 0 0 0 Currency Translation 5,760 13,051 540 19,351 At December 31, 2022 183,942 460,513 63,705 708,159 Amortization and impairment As of January 1, 2022 0 0 24,374 24,374 Amortization for the period 0 0 12,348 12,348 Impairment for the period* 0 0 0 0 Amortization on disposed assets 0 0 0 0 Currency translation 0 0 - 33 - 33 At December 31, 2022 0 0 36,688 36,688 Net book value at December 31, 2022 183,942 460,513 27,016 671,471 ===== SIDA 27 ===== Q2 report 2023 Page 26 7. Intangible assets, continued tEUR Goodwill Domains and websites Accounts and other intangible assets Total Cost or valuation As of January 1, 2022 178,182 329,276 36,827 544,285 Additions 0 118,094 15,664 133,758 Acquisitions through business combinations 0 0 0 0 Transfer 0 0 0 0 Disposals 0 0 0 0 Currency Translation 8,383 18,989 783 28,155 At June 30, 2022 186,565 466,360 53,273 706,198 Amortization and impairment As of January 1, 2022 0 0 24,374 24,374 Amortization for the period 0 0 5,178 5,178 Impairment for the period* 0 0 0 0 Amortization on disposed assets 0 0 0 0 Currency translation 0 0 168 168 At June 30, 2022 0 0 29,720 29,720 Net book value at June 30, 2022 186,565 466,360 23,553 676,478 8. Non-current liabilities and other current financial liabilities Debt to credit institutions: As per June 30, 2023, Better Collective has drawn 246.9 mEUR (2022: 201.7) out of the total committed club facility of 247 mEUR established with Nordea, Nykredit, and Citibank. In August Better Collective extended the club- financing from October 2022 with Nordea, Nykredit and Citibank by 3 years to October 2026 as well as executing the accordion option increasing available facilities with 72 mEUR, leaving the group with a total financing of 319 mEUR where afore- mentioned 246.9 mEUR has been utilized. Lease liabilities: Non-current and current lease liabilities, of 5.9 mEUR (Q2 2022: 1.1 mEUR) and 1.3 mEUR (Q2 2022: 1.2 mEUR) respec- tively. Deferred Tax liability: Deferred tax liability as of June 30, 2023, amounted to 86.2 mEUR (Q2 2022: 75 mEUR). The change from January 1, 2023, originates from changes in deferred tax related to acquisitions, amortization of accounts from acquisitions, and deferred tax changes in Parent Company and Better Collective US, Inc. Deferred Tax asset: Deferred tax asset as of June 30, 2023, amounted to 10 mEUR (Q2 2022: 9.5 mEUR), increased from January 1, 2023, due to change in Better Collective US, Inc. and exchange rate change for USD. Contingent Consideration: As per June 30, 2023, there was no contingent consideration after final adjustment and settlement of outstanding pur- chase price related to the acquisition of RiCal LLC. Better Collective paid the final part of the contingent liabilities in Q2 2022. Other financial liabilities: As per June 30, 2023, other financial liabilities amounted to 80 .3 mEUR (Q2 2022: 43.8 mEUR) due to deferred and variable payments related to acquisitions. The increase from January 1, 2023, is related to the capitalization of media agreements and acquisition of Skycon. Fair Value is measured based on level 3 - Valuation techniques. In all material aspects the fair value of the financial assets and liabilities is considered equal to the booked value. 9. Business combinations Acquisition of Skycon Limited On April 14, 2023 Better Collective completed the acquisition of Skycon Limited (Skycon) for a total consideration up to 51 mEUR (45 mGBP) with an initial consideration of 28.3 mEUR ( 25 mGBP) on a cash and debt -free basis. Skycon is a global display advertising company and perfectly complements Better Collective’s Paid Media division. The acquisition is a strategic move for Better Collective with significant synergistic opportunities. ===== SIDA 28 ===== Q2 report 2023 Page 27 The transferred consideration was in cash and a deferred payment payable in cash. Acquired net assets at the time of acquisition tEUR Accounts and other intangible assets 24,227 Accrued Income 2,372 Other receivables 45 Cash 3,647 Corporation Tax Liability -6,502 Identified net assets 23,790 Goodwill 32,239 Total consideration 56,029 A goodwill of 32,239 tEUR emerged from the acquisition of Skycon as an effect of the difference between the transferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expectations given the strong platform and significant synergistic opportunities. The goodwill is not tax deductible. Transaction costs related to the acquisition of Skycon amounts to 381 tEUR in 2023. Transaction costs are accounted for in the income statements under “special items”. The acquisition was completed on April 14, 2023. If the transaction had been completed on January 1, 2023 the group’s revenue YTD would have amounted to 171 m EUR and result after tax would have amounted to 33 mEUR. The purchase price allocation is provisional due to uncertainties regarding measure- ment of acquired intangible assets. Acquisition of Playmaker HQ On July 3, after the end of Q2, 2023 Better Collective US, Inc. completed the acquisition of Playmaker HQ for up to 54 mUSD with an initial consideration of 15 mUSD on a cash and debt -free basis. Playmaker HQ is a leading sports and entertainment media platform headquartered in South Florida, US. The sports media group specializes in providing orig- inal entertainment and sports content with exclusive athlete collabora tions and creator talent mainly targeting the US market. Better Collective will pay up to 54 mUSD on a cash and debt free basis, including an upfront cash consideration of 15 mUSD, 1 mUSD in deferred payments, and up to 38 mUSD in performance -based earnout payments over a three -year period. In order to reach the full earn-out payment, Playmaker HQ will have to generate >75 mUSD in accumulating revenues and >25 mUSD in accumulating operational earnings (EBITDA) during the first three years post-acquisition. The acqui- sition will be conducted as an asset purchase meaning that Better Collective expectedly will benefit from certain tax deductions related to the acquisition price. The transaction will be funded by cash, with optionality to pay some of the earn out in Better Collective shares. Better Collective will consolidate Playmaker HQ into its accounts effective July 3, 2023. As per the date of publication of the interim financial statements it has not been possible to obtain sufficient financial data to fulfill reporting requirements according to IFRS3. Therefore, the opening balance, the acquired net assets at the time of the acquisition, goodwill and pro-forma impact on the revenue and profit after tax is not included in these interim financial statements. Acquisition of four Swedish brands On August 15, after the end of Q2, 2023 Better Collective announced the acquisition of four brands SvenskaFans.com, Hockeysverige.se, Fotbolldirekt.se and Innebandymagazinet.se from Everysport Group to further expand its position within the Swedish sports media ecosystem for a total consideration of 3.7 mEUR on a cash and debt-free basis. As per the date of publication of the interim financial statements it has not been possible to obtain sufficient financial data to fulfill reporting requirements according to IFRS3. Therefore, the opening balance, the acquired net assets at the time of the acquisition, goodwill and pro-forma impact on the revenue and profit after tax is not included in these interim finan- cial statements. ===== SIDA 29 ===== Q2 report 2023 Page 28 10. Note to cash flow statement tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2023 2022 Acquisition of business combinations: Net Cash outflow from business combinations at acquisition - 29,767 0 - 29,767 0 0 Business Combinations deferred payments from current period 0 0 0 0 0 Deferred payments - business combinations from prior periods 0 - 10,604 0 - 13,181 - 14,337 Total cash flow from business combinations - 29,767 - 10,604 - 29,767 - 13,181 0 - 14,337 Acquisition of intangible assets: Acquisitions through asset transactions - 2,042 - 107,284 - 15,944 - 133,758 0 - 144,522 Deferred payments related to acquisition value 0 24,048 0 29,407 29,408 Deferred payments - acquisitions from prior periods - 63 0 - 488 - 121 - 121 Intangible assets with no cash flow effect 1,889 8,138 13,011 13,455 24,325 Other investments - 203 - 970 - 203 - 1,414 - 5,541 Total cash flow from intangible assets - 420 - 76,067 - 3,624 - 92,430 - 96,452 Equity movements with and without cashflow impact tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Equity movements with cashflow impact - from cash flow statement: Capital increase 193 316 236 316 618 Treasury shares - 3,674 0 - 9,583 - 6,595 - 14,250 Transaction cost - 4 0 - 10 - 15 - 28 Warrant settlement, sale of warrants 0 0 0 0 0 Total equity movements with cash flow impact - 3,485 316 - 9,356 - 6,294 - 13,661 Non-cash flow movements on equity: New shares for M&A payments 0 4,066 - 0 8,132 4,065 Treasury Shares used for payments 0 8,888 0 16,657 15,498 Share based payments - warrant expenses with no cash flow effect 1,470 2,626 1,604 4,639 1,713 Total equity movements with no cash flow impact 1,470 15,580 1,604 29,428 21,275 Total Transactions with owners - Consolidated statement of changes in equity - 2,015 15,896 - 7,752 23,134 7,615 ===== SIDA 30 ===== Q2 report 2023 Page 29 Financial statements for the period January 1 – June 30 Condensed interim income statement – Parent company tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Revenue 24,506 15,615 48,204 27,762 65,282 Other operating income 4,879 4,373 8,894 6,227 14,797 Direct costs related to revenue 6,385 3,478 11,078 6,103 14,292 Staff costs 9,757 5,083 18,616 9,177 25,061 Depreciation 134 137 312 268 540 Other external expenses 3,826 4,850 8,243 10,499 17,248 Operating profit before amortization (EBITA) and special items 9,282 6,440 18,849 7,942 22,939 Amortization 2,242 986 3,836 1,579 3,875 Operating profit (EBIT) before special items 7,040 5,455 15,013 6,363 19,064 Special items, net - 772 - 189 - 1,167 - 290 - 1,168 Operating profit 6,268 5,265 13,846 6,074 17,896 Financial income 8,587 33,276 12,591 41,101 72,388 Financial expenses 9,367 1,565 17,363 3,104 35,057 Profit before tax 5,488 36,976 9,074 44,071 55,227 Tax on profit for the period - 54 5,553 708 7,181 8,279 Profit for the period 5,543 31,423 8,366 36,890 46,949 Condensed interim statement of other comprehensive income tEUR Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Profit for the period 5,543 31,423 8,366 36,890 46,949 Other comprehensive income Other comprehensive income to be reclassified to profit or loss in subsequent periods: Currency translation to presentation currency - 962 - 72 - 1,603 - 134 22 Currency translation of non-current intercompany loans Income tax 0 0 0 0 0 Net other comprehensive income/loss - 962 - 72 - 1,603 - 134 22 Total comprehensive income/(loss) for the period, net of tax 4,581 31,351 6,763 36,756 46,970 ===== SIDA 31 ===== Q2 report 2023 Page 30 Condensed interim balance sheet – Parent company tEUR Q2 2023 Q2 2022 2022 Assets Non-current assets Intangible assets Goodwill 17,825 0 0 Domains and websites 168,606 144,274 144,374 Accounts and other intangible assets 21,533 8,817 13,287 Total intangible assets 207,964 153,091 157,662 Property, plant and equipment Land and building Right of use assets 189 492 334 Fixtures and fittings, other plant and equipment 1,032 455 410 Total property, plant and equipment 1,221 947 744 Financial assets Investments in subsidiaries 220,151 192,411 190,448 Receivables from subsidiaries 268,778 280,653 273,515 Other non-current financial assets 0 0 0 Deposits 1,096 174 174 Total financial assets 490,024 473,238 464,137 Total non-current assets 699,209 627,277 622,542 Current assets Trade and other receivables 10,599 11,850 17,163 Receivables from subsidiaries 31,761 24,945 30,229 Tax receivable 6,202 0 5,913 Prepayments 2,469 1,560 2,519 Other current financial assets 12,395 0 0 Restricted Cash 0 0 0 Cash 22,737 12,591 8,705 Total current assets 86,163 50,946 64,529 Total assets 785,372 678,223 687,071 tEUR Q2 2023 Q2 2022 2022 Equity and liabilities Equity Share Capital 552 550 551 Share Premium 272,786 272,251 272,550 Currency Translation Reserve 18,987 418 574 Treasury shares - 17,249 - 13 - 7,669 Retained Earnings 155,144 135,915 145,047 Proposed Dividends 0 0 0 Total equity 413,230 409,121 411,054 Non-current Liabilities Debt to credit institutions 246,932 185,722 201,708 Lease liabilities 0 196 16 Deferred tax liabilities 11,275 3,967 6,141 Other non-current financial liabilities 26,842 1,376 19,543 Contingent Consideration 0 0 0 Total non-current liabilities 285,050 191,261 227,408 Current Liabilities Prepayments received from customers and deferred revenue - 1,172 1,339 1,583 Trade and other payables 5,529 4,270 5,719 Payables to subsidiaries 34,882 13,946 20,822 Tax payable 44 5,934 30 Other current financial liabilities 47,599 31,844 19,045 Debt to credit institutions 0 20,163 1,055 Lease liabilities 210 345 356 Contingent Consideration 0 0 0 Total current liabilities 87,092 77,840 48,609 Total liabilities 372,142 269,102 276,017 Total equity and liabilities 785,372 678,223 687,071 ===== SIDA 32 ===== Q2 report 2023 Page 31 Condensed interim statement of changes in equity – Parent company tEUR Share capital Share premium Currency translation reserve Treasury shares Retained earnings Proposed dividend Total equity As of January 1, 2023 551 272,550 574 - 7,669 145,047 0 411,054 Result for the period 0 0 0 0 8,366 0 8,366 Other comprehensive income Currency translation to presentation currency 0 0 - 1,603 0 0 0 - 1,603 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 - 1,603 0 0 0 - 1,603 Total comprehensive income for the year 0 0 - 1,603 0 8,366 0 6,763 Transactions with owners Capital Increase 1 236 0 0 3,156 0 3,393 Acquisition of treasury shares 0 0 0 - 9,571 0 0 - 9,571 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 1,604 0 1,604 Transaction cost 0 0 0 - 10 - 4 0 - 14 Total transactions with owners 1 236 0 - 9,580 4,757 0 - 4,587 At June 30, 2023 552 272,786 - 1,029 - 17,249 158,170 0 413,230 tEUR Share capital Share premium Currency translation reserve Treasury shares Retained earnings Proposed dividend Total equity As of January 1, 2022 546 267,873 552 - 8,074 94,223 0 355,121 Result for the period 0 0 0 0 46,949 0 46,949 Other comprehensive income Currency translation to presentation currency 0 0 22 0 0 0 22 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 22 0 0 0 22 Total comprehensive income for the year 0 0 22 0 46,949 0 46,970 Transactions with owners Capital Increase 5 4,677 0 0 0 0 4,683 Acquisition of treasury shares 0 0 0 - 14,250 0 0 - 14,250 Disposal of treasury shares 0 0 0 14,656 842 0 15,498 Share based payments 0 0 0 0 3,061 0 3,061 Transaction cost 0 0 0 0 - 28 0 - 28 Total transactions with owners 5 4,677 0 406 3,875 0 8,963 At December 31, 2022 551 272,550 574 - 7,669 145,047 0 411,054 ===== SIDA 33 ===== Q2 report 2023 Page 32 tEUR Share capital Share premium Currency translation reserve Treasury shares Retained earnings Proposed dividend Total equity As of January 1, 2022 546 267,873 552 - 8,074 94,223 0 355,121 Result for the period 0 0 0 0 36,890 0 36,890 Other comprehensive income Currency translation to presentation currency 0 0 - 134 0 0 0 - 134 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 - 134 0 0 0 - 134 Total comprehensive income for the year 0 0 - 134 0 36,890 0 36,756 Transactions with owners Capital Increase 4 4,379 0 0 0 0 4,382 Acquisition of treasury shares 0 0 0 - 6,595 0 0 - 6,595 Disposal of treasury shares 0 0 0 14,656 842 0 15,498 Share based payments 0 0 0 0 3,974 0 3,974 Transaction cost 0 0 0 0 - 15 0 - 15 Total transactions with owners 4 4,379 0 8,061 4,802 0 17,245 At June 30, 2022 550 272,251 418 - 13 135,915 0 409,121 ===== SIDA 34 ===== Q2 report 2023 Page 33 The group uses Alternative Performance Measures not defined under IFRS to give management and investors important information to enable them to fully analyse the Better Collective business and trends. The APMs are not meant to replace but to complement the performance measures defined under IFRS. Note 5 contains a bridge from the APMs to performance measures defined by IFRS. Alternative Performance Measures Alternative Performance Measure Description SCOPE Earnings per share (EPS) Net Profit for the period / (Average number of shares - Average number of treasury shares held by the company) The group reports this APM for users to monitor de- velopment in the net profit per share. Diluted earnings per share Net profit for the period / (Average number of shares + Average number o f outstanding warrants - Average number of treasury shares held by the company) The group reports this APM for users to monitor de- velopment in the net profit per share, assuming full dilution from active warrant programs. Operating profit before amortization (EBITA) Operating profit plus amortizations Better Collective reports this APM to allow monitor- ing and evaluation of the Group’s operational profit- ability. Operating profit before amortizations margin (%) Operating profit before amortizations / reve- nue This APM supports the assessment and monitoring of the Group’s performance and profitability EBITDA before special items EBITDA adjusted for special items This APM supports the assessment and monitoring of the Group’s performance as well as profitability excluding special items that do no stem from ongo- ing operations, providing a more comparable meas- ure over time. Operating profit before amortizations and special items margin (%) Operating profit before amortizations and special items / revenue This APM supports the assessment and monitoring of the Group’s performance as well as profitability excluding special items that do no stem from ongo- ing operations, providing a more comparable meas- ure over time. Special items Items that are considered not part of ongoing business Items that are not part of ongoing business, e.g. cost related to M&A and restructuring, adjustments of earn-out payments. Alternative Performance Measure Description SCOPE Net Debt / EBITDA before special items (Interest bearing debt, including earn -outs from acquisitions, excl. contingent considera- tion, minus cash and cash equivalents) / -EBITDA before special items on rolling twelve months basis This ratio is used to desc ribe the horizon for pay back of the interest-bearing debt and measures the leverage of the funding. Liquidity ratio Current Assets / Current Liabilities Measures the ability of the group to pay its current liabilities using current assets. Equity to assets ratio Equity / Total Assets Reported to show how much of the assets in the company is funded by equity Cash conversion rate before special items (Cash flow from operations before special items + Cash from CAPEX) / EBITDA before special items This APM is reported to illustrate the Group’s ability to convert profits to cash NDC New depositing customers A key figure to reflect the Group’s ability to fuel long-term revenue and organic growth Organic Growth Revenue growth as compared to the same pe- riod previous year. Organic growth from ac- quired companies or assets are calculated from the date of acquisition measured against the historical baseline performance. Reported to measure the ability to generate growth from existing business Definitions Term Description PPC Pay-Per-Click SEO Search Engine Optimization Sports win margin Sports net player winnings (operators) / sports wagering Sports wagering The value of bets placed by the players Recurring revenue Recurring revenue is a combined set of revenues that is defined as recurring. It includes revenue share income, CPM/Advertising and subscription revenues Board The Board of Directors of the company Executive management Executives that are registered with the Danish Company register Company Better Collective A/S, a company registered under the laws of Denmark Alternative Performance Measures and Definitions ===== SIDA 35 ===== Q2 report 2023 Page 34 Better Collective A/S Sankt Annæ Plads 26-28 1250 Copenhagen K Denmark CVR no 27 65 29 13 +45 29 91 99 65 info@bettercollective.com bettercollective.com