Letter to Evolution

A long-term shareholder's call for the company's revitalization

Dear Jens von Bahr and Martin Carlesund,

I would like to firstly thank you for building Evolution into the innovative and best-in-class company that it is today. For the last 5 years, as a shareholder, I had the pleasure of witnessing the company rise up to numerous challenges and use them as opportunities for improvement.

I am writing to you now because I humbly see such an opportunity.

Challenges

• COVID-19 and its aftermath undeniably brought a big tailwind for the whole online gambling sector, and Evolution took maximum advantage of the opportunity in the Live Casino field. Having said that, I believe that you would also agree that this particular tailwind has recently given way for a period of slowing growth in the overall demand.

• Evolution has grown both in the regulated and yet-to-be-regulated markets of the world and become the foremost online casino supplier. This success unfortunately also brings attention of some regulators who may see an apparently easy solution to their incapabilities by forcing restrictions on the company. As such, Evolution is exiting European sales channels which will undoubtedly be filled by smaller or less scrupulous competitors.

• Live Casino as a category and Evolution’s game shows in particular still have low consumer awareness, especially in the United States where the company sees a large potential and is justifiably investing ever so much in capacity build-out.

Evolution in iGaming

Opportunity

I believe that it is the right time for Evolution to build a consumer marketing division with a potentially high budget ceiling and a Chief Marketing Officer that reports directly to the CEO.

Why

• Even as a B2B business, Evolution is unquestionably a consumer products company.

• In the past, Evolution’s extra efforts in innovation and quality have secured its Live Casino games to grow faster than the Live Casino’s market share in iGaming. Today, Evolution itself may have reached the size limit that the iGaming market can support within its traditional dynamics. Only by thinking beyond the traditional B2B outreach methods can Evolution surpass this sizing limit, while retaining its purely B2B business model.

• Evolution’s already ongoing consumer marketing experiments via Spin Gifts and Livespins Bet Behind show that the company management sees a need for further consumer outreach, too.

• Evolution should not limit itself to the B2B marketing channels (like the ICE exhibition or industry publications) for its big new game releases. Can you imagine Apple market its new iPhone just to electronics retailers or Hollywood producers market their upcoming films just to theater owners?

• A historic hit like Crazy Time which has proven itself basically by word-of-mouth should be given more exposure than just the front-page displays of casino operators.

• Class-leading regulatory compliance should not only be taken as a competitive disadvantage that limits growth. As a most compliant supplier, Evolution is also most favorably positioned to be the most promoted supplier. In fact, Evolution’s successful outreach and popularity can be an asset for regulators with their channelization.

• Evolution has the scale and resources that no other competitor can economically match. Why not use this advantage to widen the competitive gap further with celebrity collaborations, event/team sponsorships, product placements, advertisement and more?

• Traditionally, iGaming marketing has been mostly done by casino operators. However, no particular operator brand can match the global availability of Evolution’s portfolio of games. Hence, Evolution will have a much higher marketing efficiency than any market-limited operator. (If BetMGM hires Taylor Swift, they would only get a fraction of her global marketing value. Unlike any particular casino brand, Evolution has global brands and sales channels.)

• Any success in marketing its games will help Evolution in customer acquisition, retention and pricing power.

• One limitation of Evolution’s business model has been that the company is unable to re-invest the overwhelming majority of its profits for future growth. With a watchful eye on long-term returns as well as legal, regulatory and public relations risks, consumer marketing can create a whole new re-investment opportunity to accelerate the long-term profit growth.

I hope that you will seriously evaluate this proposal and decide on the best course that will serve the company and its shareholders.

Sincerely,

Ali Gündüz

6 May 2025, Stockholm