Evolution AB Investment Thesis

Evolution AB company (ticker: Evo. st, Evvty) is traded on the NASDAQ Stockholm Exchange after its initial public offering (IPO) in March 2015. As a result, the IPO company was valued at approximately 260 million euros. Currently, Evolution is estimated at more than 20 billion euros, with a profitability of more than 6. 000% over 8 years. What sparked the rapid rise of the Evolution company, which transformed itself from a niche provider into a leading player in the online casino industry?

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1. Executive Summary

• The success of the online casino Evolution in the industry is justified by its ability to solve the main difficulties of the game-operators. The company provides comprehensive conclusions for live casinos, connects all the nuances of operation, hires trained head games, teaches and invites operators, supports options for possibilities, a diverse game-portfolio and integrates with land-based casinos. With a similar cooperation, you can improve the work, increase player engagement and support the growth of online casinos.
• Space's revenue model is based on commission, the company receives up to 10% of the operator's profits by using its own casino games. Separately from this, the company invites operators to optional options at special tables, where each monthly payment is charged. Payments for the installation of fresh buyers still promote the rise of profits. The complexity of constant and variable profits allows Evolution to benefit by increasing the number of customers without exposing itself to the direct impact of end-user profits or losses.
• Evolution effectively uses the effect of scale in its own work, thanks to which it makes EBITDA profitability 70%. Their games are distinguished by the highest scalability, it is possible to take an unlimited number of players at the same time, lowering the cost of costs in comparison with classic casinos. The fixed costs of the dealer can be spread across a huge number of players, making it a more profitable production unit. The difference with casino operators is that Evolution does not incur the cost of acquiring customers, since its games remain permanent for all types of operators, and they can receive the profits from each new player.
• Regulatory dangers suggest a serious job for the Evolution's business. Evolution is developing a business in the EU's provinces using the MGA resolution, but there are many opportunities for regulatory authorities to make special demands. This has the potential to create a studio in a different state or space, which requires a larg e-scale cost, and cannot be distinguished from the scale of scales to the quality of saving. The profit of evolution depends greatly on five huge buyers, which will be from 22 % last year to 30 % in 2022. Increased concentration focuses on its importance and at the same time raises the risk of concentration.
• The excellent qualities of lon g-term competitiveness include powerful psychiatrists, expandability, network effects, and the highest switching price. All of these moments contribute to the advantageous position in the living casino market, and it is difficult for competitors to be effective. By 2030, the market size of larg e-scale online gambling is expected to reach $ 15350 billion, with 11, 17%of CAGRs from 2023. Evolution-Guidance is a strategic task to catch up with the rise of the major market and to grow the segregation with its own rivals.

2. Overview

Evolution focuses on buyers operated by the B2B (Business for Business) scheme, and applies to the innovation, development and production of online casinos. Content access is likely to be only through the operator platform that connects important components such as player authentication, account management, and user interface.

Evolution's business strategy focuses on providing online casinos to regulatory gaming operators with the introduction of digital platforms. The company's challenge is to guarantee operator dashes and provide exclusive games-skills to end users. The company is eager to become a worl d-leading provider in the provision of online casinos.

What is an online casino? < SPAN> Regulatory dangers suggest a serious job for the Evolution's business. Evolution is developing a business in the EU's provinces using the MGA resolution, but there are many opportunities for regulatory authorities to make special demands. This has the potential to create a studio in a different state or space, which requires a larg e-scale cost, and cannot be distinguished from the scale of scales to the quality of saving. The profit of evolution depends greatly on five huge buyers, which will be from 22 % last year to 30 % in 2022. Increased concentration focuses on its importance and at the same time raises the risk of concentration.

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The excellent qualities of lon g-term competitiveness include powerful psychiatrists, expandability, network effects, and the highest switching price. All of these moments contribute to the advantageous position in the living casino market, and it is difficult for competitors to be effective. By 2030, the market size of larg e-scale online gambling is expected to reach $ 15350 billion, with 11, 17%of CAGRs from 2023. Evolution-Guidance is a strategic task to catch up with the rise of the major market and to grow the segregation with its own rivals.

Evolution focuses on buyers operated by the B2B (Business for Business) scheme, and applies to the innovation, development and production of online casinos. Content access is likely to be only through the operator platform that connects important components such as player authentication, account management, and user interface.

Evolution's business strategy focuses on providing online casinos to regulatory gaming operators with the introduction of digital platforms. The company's challenge is to guarantee operator dashes and provide exclusive games-skills to end users. The company is eager to become a worl d-leading provider in the provision of online casinos.

What is an online casino? Regulatory dangers suggest a serious job for the Evolution's business. Evolution is developing a business in the EU's provinces using the MGA resolution, but there are many opportunities for regulatory authorities to make special demands. This has the potential to create a studio in a different state or space, which requires a larg e-scale cost, and cannot be distinguished from the scale of scales to the quality of saving. The profit of evolution depends greatly on five huge buyers, which will be from 22 % last year to 30 % in 2022. Increased concentration focuses on its importance and at the same time raises the risk of concentration.

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The excellent qualities of lon g-term competitiveness include powerful psychiatrists, expandability, network effects, and the highest switching price. All of these moments contribute to the advantageous position in the living casino market, and it is difficult for competitors to be effective. By 2030, the market size of larg e-scale online gambling is expected to reach $ 15350 billion, with 11, 17%of CAGRs from 2023. Evolution-Guidance is a strategic task to catch up with the rise of the major market and to grow the segregation with its own rivals.

Evolution focuses on buyers operated by the B2B (Business for Business) scheme, and applies to the innovation, development and production of online casinos. Content access is likely to be only through the operator platform that connects important components such as player authentication, account management, and user interface.

Evolution's business strategy focuses on providing online casinos to regulatory gaming operators with the introduction of digital platforms. The company's challenge is to guarantee operator dashes and provide exclusive games-skills to end users. The company is eager to become a world leader in the provision of online casinos.

Evolution focuses on buyers operated by the B2B (Business for Business) scheme, and applies to the innovation, development and production of online casinos. Content access is likely to be only through the operator platform that connects important components such as player authentication, account management, and user interface.

Online casinos offer players a realistic casino skill without leaving the comfort of their own home. These games are played in real time by qualified dealers with the support of high-quality video image transmission. A special studio of live games with the latest technology and profilers creates an attractive interactive gaming environment. You can also enjoy traditional casino games such as blackjack, roulette, backers and poker. Games are regularly audited by third parties to ensure transparency and fairness. These complex technologies and interaction with people guarantee for online players the fun and real skill of playing in a casino.

3. Customer Base

Casinos read funds using the "institutional profit", which is considered an integrated plus in all casino games. Return to Player (RTP) indicates the amount that a game needs to pay out to players for a certain time. For example, if 10. 000 players put 100. 000 euros into a joint difficulty and the players take 96. 000 euros of the winnings, the RTP-game constitutes 96%. RTP influences the fact that players waste time and resources on these games. In online games, it is generally a spectrum from average to the highest 90%, while in land-based casinos it ranges from 70 to 90% due to the constant cost.

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Live Casino Roulette, born in 2006, offers a diverse live casino ecosystem adapted to the player's preferences.~The central component of this ecosystem is the spiritual lobby, presented to players in 2022 and inspired by these platforms like YouTube and Netflix, controlled by a reservation system based on artificial origin (AI), becoming more and more spiritual with each visit.~Company website~The main objective of this smart lobby is to help players quickly find the games they love. This is achieved through support for artificial intelligence commands, videos, filters, recent game settings, and desired features. This personalized layout enhances player emotion and engagement. This lobby represents a significant long-term investment to improve user skills and personalize for each player. Evolution offers a comprehensive live casino platform, One Stop Shop (OSS), encompassing hardware, software, videos, employees, and user data, providing operators with the ultimate live casino experience and users with an exclusive gaming experience. OSS includes games from Evolution, NetEnt, Red Tiger, Big Time Gaming, Ezugi, and Nolimit City brands, which were strategic acquisitions, effectively simplifying and speeding up the integration process for casino operators. The platform ensures quick access to a wide range of games, reduces time to market, and supports full management of new casinos and regulatory market changes. OSS also provides access to a single back office and unified marketing tools.

Evolution focuses on buyers operated by the B2B (Business for Business) scheme, and applies to the innovation, development and production of online casinos. Content access is likely to be only through the operator platform that connects important components such as player authentication, account management, and user interface.

The platform is improved every day, increases reliability and expandability, and supports regulatory markets and simultaneous connection users. The Evolution Technology system is measured, reliable, and can handle a large amount of data. The company has devised a personalized video coding solution to provide infinite HD videos and other format streams that are ideal for end users. The system operating rate in 2022 recorded a phenomenal number of 99. 88%without regular maintenance, indicating its reliability. Evolution's game portfolio covers a wide range of players' preferences, from traditional live casino table games to visually exciting and functional gambling games. Live Casino: Evolution is a popular live casino game that supports hig h-quality video streaming and imitates the actual casino atmosphere. Live Casino offers traditional table games such as blackjack, roulette, baccarat, and poker, and offers various versions and tables according to the player's preference. Evolution also invites original live games that combine classic games and interactive recreational elements, such as Monopoly Live and Dream Catcher. These games such as Lightning Roulette and Infinite and Blackjack include innovative features that enhance games and excitement. The RNG < SPAN> platform is improved daily, enhances reliability and expandability, supports regulatory markets and simultaneous connection users. The Evolution Technology system is measured, reliable, and can handle a large amount of data. The company has devised a personalized video coding solution to provide infinite HD videos and other format streams that are ideal for end users. The system operating rate in 2022 recorded a phenomenal number of 99. 88%without regular maintenance, indicating its reliability. Evolution's game portfolio covers a wide range of players' preferences, from traditional live casino table games to visually exciting and functional gambling games. Live Casino: Evolution is a popular live casino game that supports hig h-quality video streaming and imitates the actual casino atmosphere. Live Casino offers traditional table games such as blackjack, roulette, baccarat, and poker, and offers various versions and tables according to the player's preference. Evolution also invites original live games that combine classic games and interactive recreational elements, such as Monopoly Live and Dream Catcher. These games such as Lightning Roulette and Infinite and Blackjack include innovative features that enhance games and excitement. The RNG platform is improved every day, enhances reliability and expandability, supports regulatory markets and simultaneous connection users. The Evolution Technology system is measured, reliable, and can handle a large amount of data. The company has devised a personalized video coding solution to provide infinite HD videos and other format streams that are ideal for end users. The system operating rate in 2022 recorded a phenomenal number of 99. 88%without regular maintenance, indicating its reliability. Evolution's game portfolio covers a wide range of players' preferences, from traditional live casino table games to visually exciting and functional gambling games. Live Casino: Evolution is a popular live casino game that supports hig h-quality video streaming and imitates the actual casino atmosphere. Live Casino offers traditional table games such as blackjack, roulette, baccarat, and poker, and offers various versions and tables according to the player's preference. Evolution also invites original live games that combine classic games and interactive recreational elements, such as Monopoly Live and Dream Catcher. These games such as Lightning Roulette and Infinite and Blackjack include innovative features that enhance games and excitement. Rng

4. Financial Analysis

Comprehensive conclusions for live casinos: Most games-Operators are not easy to guarantee all players' comprehensive and high-quality services in live casinos. The Evolution Wraves conclusion covers the main games, streaming radio broadcasting, creation, control, and customer service, covers all the nuances required for the game-operator. The central space of the evolution is occupied by a dispatch that focuses the nuances of operational efficiency, system accessibility, security, and normally claims. This allows the operator to be free from the need to autonomously indicate the countless quality of the live casino, and saves time and resources.

Papers from the company

Recruitment and research of human resources: Information and research on trained head games (dealers) and other human resources has the potential to freeze a serious job for gaming operators. Evolution Company has an obligation to select and study such human resources, and provides operators with excellent and excellent experts who can guarantee the real game process. Personalization and devices: All types of games-operators have their own brands and buyers. Evolution Permon has the highest adaptability, and the operator can set up its own environmental casinos, such as normal, VIP staver, environmental artifact images, and special dealer teams. With this setting, the operator can play game play according to a specific customer base. Abundant gaming portfolio: It is difficult for operators to provide various interesting gaming casinos. Evolution has a wide range of to p-notch games, from traditional board games to innovative casino games. With this diversity, players can play without getting tired and attract more audiences. Integration with terrestrial casinos: Evolution Company has also invited a fixed studio to several terrestrial casinos. With this integration, terrestrial casinos can extend existing online, apply existing infrastructure, and provide free gamever to our customers.

Papers from the company

In 2022, Evolution signed agreements with several popular companies, including the transfer of internet slots and jackpots by Italy's Sisal, the provision of an absolute catalog of internet slots by NetEnt and Red Tiger by Holland Casino Online, the provision of online casino content in Michigan by Soaring Eagle Gaming, and the provision of internet live casino and RNG casino games in New Jersey by PlayStar. In addition, Evolution extended its agreement with FanDuel Group to provide live dealer table games in the regulated US online gaming market. The company further extended existing agreements with additional offers and agencies. Evolution's revenue model generates its own host profits through commission fees and special table fees on its unique live casino and RNG casino services. Commission Fees: The majority of Evolution's profits come from commission fees. These costs are taken into account as follows:

10 % of the operator's profits obtained from the game provided by Evolution to casinos. This means that some of the profits received by casino pelators, which use live and RNG casino games, are distributed to the evolution. The reward from the commission can affect the overall growth of the global market online casinos. The live casino installation Evolution offers a variety of levels to casino operators. The simplest contracts usually provide access to general tables and their streaming. However, more complex contracts can include special tables, individual conditions, VIP services, dealers who speak their native language, and other personalized features. Such individual solutions can differentiate operators in the market and to satisfy the player's specific preferences. Special table payment: Operators pay the monthly allocated table for the following size evolution services

The table is designed only for the operator, and it can be completely customized according to the operator's requirements, such as studio environment, graphics, branding, language, etc., only for the operator. The usage fee for the specified table varies depending on the client, depending on the type of game type, number of tables, and working hours. Other income sources: In addition to commissions and assignment tables, the evolution has earned income from other income sources, including installation fees. The installation fee is

Papers from the company

Corporate materials < SPAN> 10 % of the operator's profits obtained from the games provided by the casino. This means that some of the profits received by casino pelators, which use live and RNG casino games, are distributed to the evolution. The reward from the commission can affect the overall growth of the global market online casinos. The live casino installation Evolution offers a variety of levels to casino operators. The simplest contracts usually provide access to general tables and their streaming. However, more complex contracts can include special tables, individual conditions, VIP services, dealers who speak their native language, and other personalized features. Such individual solutions can differentiate operators in the market and to satisfy the player's specific preferences. Special table payment: Operators pay the monthly allocated table for the following size evolution services

Papers from the company

The $ 50. 000 is charged when a new customer starts a casino using an evolution. These fees are set along with the registration process and contribute to the company's total income.

Papers from the company

• The $ 50. 000 is charged when a new customer starts a casino using an evolution. These fees are set along with the registration process and contribute to the company's total income.
• Evolution's revenue is noteworthy because it consists of fixed and variable remuneration for game operators. Evolution benefits from expanding the customer base of its operators without directly impacting end-user profits or casino losses. Evolution's customer check has developed a customer management process for honest treatment during new contracts and constant evaluation of existing customers. Evolution will cease providing services to operators that do not meet the relevant regulatory requirements or that may jeopardize Evolution's position in the market or gambling license. Evolution only offers products to customers with online casino licenses issued by relevant legal jurisdictions. Evolution supplies products to licensed casino operators, who in turn offer games to players. In addition, Evolution offers services to licensed B2B operators, who offer games to licensed B2C operators, who in turn offer games to players. Regulators issue licenses and monitor their compliance, and Evolution verifies its contractual partners for know-your-customer (KYC), both B2C and B2B. Due care verification is performed before accepting new customers and annually. This includes checking the management structure, customer licenses, and for B2B customers, reports on new operators and their licenses. Evolution As mentioned above, most of Evolution's revenues are made up of fees for both live casino and RNG casino. Evolution's live casino and RNG casino segments have completely different metrics. Live casino is Evolution's main specialty and has grown almost entirely organically. Live accounts for 84% of revenues and grew 34% year-on-year according to the company's Q2 2023 financial results. Meanwhile, RNG accounts for 16% of sales, mainly due to acquisitions, and was down 4% year-on-year in the Q2 2023 results. The RNG division has a double-digit growth target, but market share is declining. In the second quarter of 2023, Evolution recorded total revenues of 4411 million euros, up 28% year-on-year. This growth can be explained by the increase in commission income from existing and new clients.
• Toward 5, the evolution arrived at a distant speed of 52 % per year. Evolution-Casino is clearly high demand. The company's strategy, which consists of new games and optional release for classical games, has contributed to the increase in demand for online casinos in games. Similar alignments can help the company meet the changes in players and protect the competitive advantage in the market.
• In the second quarter of 2023, by region, all regions recorded two digits. It increased 61 % in Latin America, 48 % in Asia, 20 % in North America, and 15 % in Europe. In Latin America, the number of players is expected to increase. To support this increase, the company has begun expanding the studio and opened its first studio in Argentina and Colombia in Latin America. In fact, with regard to North America, the company is actively expanding the personal portfolio of live games. This expansion strategy aims to increase live casino tools in the North American online game market. Eventually, in Europe, the demand for freshly marked tables is growing, exceeding the current skills of the company to provide them. The company's instructions are actually assigned a plan to solve this problem in the top quarterly fiscal year in the appeal to kill the growing demand in this field.
• The main components of the evolution cost are staff, buildings, studios, and product development costs. Spice cost includes operations, IT, and staff selection. The extension of the live casino platform collects all types of costs for those who have a fresh or operator, and covers payments to create fresh studios. Product innovation and development suggest important costs, for example, like direct operating costs and amortization of development investment. The operating cost for the second quarter of 2023 was € 159. 6 million, an increase of 23%yea r-o n-year. These costs were mainly justified by increased labor costs related to the launch of new tables and studios. As of June 30, 2023, 17. 447 employees worked in Evolution, an increase of 14 % from the same period of the previous year.

Test of a company document creator

• Analysis of company materials by the author
• Analysis of i n-house documents by the author
• Cash and equivalent of 541 million euros or more

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Space} 753 million euros plus driving capital

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Papers from the company

1. Goodwill with more than 2. 2 billion euros, equivalent to 52%of total assets
2. Zero tariff

If the balance of goodwill is not large, this balance can be estimated to be plus 5. Goodwill is the result of many acquisitions:

5. Competitive Landscape

universe

Nentent to procure 1. 8 billion euros by 2020

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BIG TIME GAMING raises 450 million euros in 2021

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The Nolimit City cost 340 million euros in 2022.

This level of goodwills excites me because the risk of depreciation that does not affect the currency flow can greatly affect the company's revenue. The rest of the goodwill exceeds the total operating income over the past seven years. The significance of this case will be described later.

Foreign currency jet test

6. Leadership and Incentive Structure

• Money document of my company
• The highest operating profit margin: Evolution has been profitable from a large scale. Larg e-scale business enables effective cost distribution to increase profitability.
• Possibility of reinvestment: Live Casino Bazaar is growing, Evolution Company's legal ability has entered a new market that contributes to the ability to generate higher profits from investment capital, expands its customer base. We have introduced a new game.

In 2021, the Evolution Company acquired a network in a promotion method and had a remarkable impact on the ROC. Initially, the ROC indicators dropped significantly compared to the past levels, which was 12%, gradually decreasing, about 16%in 2023. At the time of the acquisition, such a decrease in ROC is accumulated over time, while the cost is immediately shocked. As a result, if you examine from this point of view, including transactions that will eventually bring a lot of money to customers, it is quite possible that it will not increase at first. < SPAN> Space

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• This level of goodwills excites me because the risk of depreciation that does not affect the currency flow can greatly affect the company's revenue. The rest of the goodwill exceeds the total operating income over the past seven years. The significance of this case will be described later.

Foreign currency jet test

7. Risks

Evolution created more than 900 million euros for more than € 900 million, and FCF margins were 55 % to the end of the second quarter of 2023. These are one of the most profitable companies that are creating foreign currency flow in the public market.

Money document of my company

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The highest operating profit margin: Evolution has been profitable from a large scale. Larg e-scale business enables effective cost distribution to increase profitability.

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Possibility of reinvestment: Live Casino Bazaar is growing, Evolution Company's legal ability has entered a new market that contributes to the ability to generate higher profits from investment capital, expands its customer base. We have introduced a new game.

Evolution focuses on buyers operated by the B2B (Business for Business) scheme, and applies to the innovation, development and production of online casinos. Content access is likely to be only through the operator platform that connects important components such as player authentication, account management, and user interface.

Nentent to procure 1. 8 billion euros by 2020

Evolution focuses on buyers operated by the B2B (Business for Business) scheme, and applies to the innovation, development and production of online casinos. Content access is likely to be only through the operator platform that connects important components such as player authentication, account management, and user interface.

• {space}
• This level of goodwills excites me because the risk of depreciation that does not affect the currency flow can greatly affect the company's revenue. The rest of the goodwill exceeds the total operating income over the past seven years. The significance of this case will be described later.
• Evolution created more than 900 million euros for more than € 900 million, and FCF margins were 55 % to the end of the second quarter of 2023. These are one of the most profitable companies that are creating foreign currency flow in the public market.
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The highest operating profit margin: Evolution has been profitable from a large scale. Larg e-scale business enables effective cost distribution to increase profitability.

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8. Opportunities

In 2021, the Evolution Company acquired a network in a promotion method and had a remarkable impact on the ROC. Initially, the ROC indicators dropped significantly compared to the past levels, which was 12%, gradually decreasing, about 16%in 2023. At the time of the acquisition, such a decrease in ROC is accumulated over time, while the cost is immediately shocked. As a result, if you examine from this point of view, including transactions that will eventually bring a lot of money to customers, it is quite possible that it will not increase at first.

The live casino industry is part of the online gambling industry and offers an interesting interactive gameplay for players to experience real dealers and real casino life. The main rivals are as follows: Play Tech: The Interactive Gambling industry is known for providing hig h-quality game products. Initially, he specialized in RN G-based products, such as video slots, board games, bingo, and video poker, but the company's victory was justified by innovation. In 2003, Play Tech became a pioneer and announced a live dealer format to realize an exciting Internet casino. Currently, it offers a table for live dealers to play games such as Blackjack, Roulette, Poker, Baccaram, and Bot. The list of buyers linked by PlayTech includes famous brands such as Betfair, Ladbrokes, Mansion, Bet365, and WiLLIAM HILL. In 2022, Play Tech won the EGR Poker Supplier of the Year. Vivo Gaming: Vivo Gaming, founded in 2010, is considered a personal developer of live dealers with studios in everywhere, such as Bulgaria, Costa Rica, London, Miami, Maninel, Buenos Aires. The company has established a close partnership with a major casino operating company, and has introduced technology to reproduce the atmosphere of a lan d-based casino with computers and mobage. < SPAN> The live casino industry is part of the online gambling industry and offers an interesting interactive game play to play real dealers and real casino life. The main rivals are as follows: Play Tech: The Interactive Gambling industry is known for providing hig h-quality game products. Initially, he specialized in RN G-based products, such as video slots, board games, bingo, and video poker, but the company's victory was justified by innovation. In 2003, Play Tech became a pioneer and announced a live dealer format to realize an exciting Internet casino. Currently, it offers a table for live dealers to play games such as Blackjack, Roulette, Poker, Baccaram, and Bot. The list of buyers linked by PlayTech includes famous brands such as Betfair, Ladbrokes, Mansion, Bet365, and WiLLIAM HILL. In 2022, Play Tech won the EGR Poker Supplier of the Year. Vivo Gaming: Vivo Gaming, founded in 2010, is considered a personal developer of live dealers with studios in everywhere, such as Bulgaria, Costa Rica, London, Miami, Maninel, Buenos Aires. The company has established a close partnership with a major casino operating company, and has introduced technology to reproduce the atmosphere of a lan d-based casino with computers and mobage. The live casino industry is part of the online gambling industry and offers an interesting interactive gameplay for players to experience real dealers and real casino life. The main rivals are as follows: Play Tech: The Interactive Gambling industry is known for providing hig h-quality game products. Initially, he specialized in RN G-based products, such as video slots, board games, bingo, and video poker, but the company's victory was justified by innovation. In 2003, Play Tech became a pioneer and announced a live dealer format to realize an exciting Internet casino. Currently, it offers a table for live dealers to play games such as Blackjack, Roulette, Poker, Baccaram, and Bot. The list of buyers linked by PlayTech includes famous brands such as Betfair, Ladbrokes, Mansion, Bet365, and WiLLIAM HILL. In 2022, Play Tech won the EGR Poker Supplier of the Year. Vivo Gaming: Vivo Gaming, founded in 2010, is considered a personal developer of live dealers with studios in everywhere, such as Bulgaria, Costa Rica, London, Miami, Maninel, Buenos Aires. The company has established a close partnership with a major casino operating company, and has introduced a technology that reproduces the atmosphere of a lan d-based casino with computers and mobage.

The graph has been acquired in 2018 for € 16 million and has been a member of the Evolution Gaming Group. Evolution is overwhelmingly in the market, as you can see from the ranking of five out of seven categories in the world. Comments on the competition of Evolution Director Martin Curlesund are just wonderful:

To widen the gaps with competitors and strengthen the market leadership.

This idea reflects the company's desire to maintain leadership in the market. Evolution is not limited to competitors to traditional similar companies in the game industry. Large entertainment companies such as Disney and Netflix are also regarded as competitors. Thanks to this broad perspective, Evolution is an innovative approach, and you can always release the game show hit and always go ahead. Thanks to this, the Evolution has greatly exceeded the rival Play Tech in the past five years in profit growth rate and margin EBITDA.

The advantage of Evolution's competitors is emphasized by the data obtained by BWG Strategy in an interview with industry experts:

Evolution is considered to be the best in the live dealer. They have infrastructure and experience. Live dealers have many advantages and are very popular in the US market. With a reliable infrastructure, it is possible to manage it much better than competitors.

Evolution Gamin g-Live Board Games are very popular in one of the few online regulatory states. It will benefit from market growth. Evolution games are loved by everyone. In terms of community and bonds, which are the loyalty of the directors in the game business, they are better than other companies.

Evolution basically owns a living dealer space, and the online game format has overcome the gap between online board games and casino floors. I know that many Lan d-based businesses are excited about this possibilit y-the director of the Connecticut Casino digital game.

Papers from the company

Fixed salary: The fixed salary of luxury managers is competitive, based on individual abilities, tasks, and work results. Fixed salary is reviewed every year.

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Floating reward: Advanced managers are likely to receive floating rewards in addition to fixed salary. The annual variable reward is paid in cash, linked to the aggressive and specific and measured business aspects to support the lon g-term value creation of the company.

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Incentive program: The General Meeting of Shareholders has the right to enact lon g-term incentive programs on promotion and promotion rate of senior managers. These programs aim to harmonize between the individual's interests and the interests of the Corporation, and approve that the individual will hold the promotion shares.

In addition to the above programs, the Evolution sells an incentive program to provide warrants to major employees. These programs aim to match the benefits of employees and shareholders. 2023 / The incentive project of 2026 was initially presented to the Board of Directors in February, but has not yet been approved according to the following schedule:

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February 2023 Proposal: Evolution initially proposed an incentive project for 500 people and 5 million warrants. The project led to the highest level of 2, 32%, and there were actually concerns among shareholders. Apart from this, there was an unclear point about this incentive distribution.

overview

2023 Fixing Project: Evolution has revised an incentive proposal following criticism. The project was reduced to 300 people, 2. 5 million warrants, which reduced the maximum diminishing to 1. 16%. Furthermore, in order to deal with the problem of transparency and explanatory interests, the amendment proposal has introduced a performance assessment standard for collecting ratio, eBitDa margin, and ethical standards.

rumor

Cancellation of the intention of July 2023: Evolution announced the approval program cancellation. This conclusion was justified by the correction of the promotion of the evolution in the program implementation stage, and ultimately satisfied the offers of the offer. As a result, the Board of Directors decided not to carry out the program, and promised to cooperate with shareholders to create optimal programs to increase employee motivation.

This situation has to be concerned, and as this situation continues, there is a new doubt that something more important is under the water.

1. Condition

Regulatory risks have significant issues in the management of Evolution. The company's interests are mainly due to the licensing and supply of game software to operators, so they are largely dependent on complex laws and regulations that change the game industry in various jurisdictions.

A. Malta gaming license

Evolution has been licensed and regulated by Malta Gaming Authority (MGA). Evolution has been licensed and regulated in many other EU jurisdictions, the UK, Canada, South Africa, and other countries. With the approval of MGA, the evolution can be operated in all EU countries. Introducing new online gambling rules in various countries in Europe may require special licenses, less likely to use a single EU license, and increases management costs.

B. Mult i-room studio

Court and regulatory authorities may impose special requirements, such as installing equipment in jurisdiction, for example, but this may not match the business of the Evolution, and the company established a studio in multiple states. It may be necessary to do. Establishing a studio in multiple states is an expensive business. It costs real estate, technical infrastructure, employment and training of staff, to ensure local laws and general recognized standards. These additional costs may deny the economy of the Evolution in real time. Evolution's current business model is based on running only 17 studios around the world for popular services. By concentrating resources and skills in this way, you can reduce the cost and control ownership. It must be remembered that this will reduce the impact of the scale and to increase the barrier to entry of competitors.

Corporate materials

The proportion of Evolution employees working in a country with low labor costs is about 62 %, which is a considerable percentage: Georgia and Latvia. The expansion of presence in the United States has led to an increase in the number of studios, but the average salary has increased labor costs. By 2022, the Evolution had significantly increased the number of employees in the United States from 845 to 1, 841. C. Benefit Tax Evolution has benefited from a low corporate tax rate by making a profit through Malta's business. However, this tax rate is expected to double as a new source of revenue in North America and a larg e-scale low tax rate is implemented. In 2022, the total tax rate of the evolution was 7%, but the larg e-scale small tax system, which will be introduced in the future, could double the total tax rate of companies, affecting business performance and currency flow. 。 2. Despite the geographical distributed rescue of buyers, they are almost concentrated on five major buyers, which account for 30%of the company's total rescue in 2022. This is clearer than last year, when these major buyers were 22%. Of the relief, lead buyers alone account for 14 % and € 24 million.