Business operation is most easily summarised in four words: growth, growth, listing, growth

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3 Table of Contents CEO's Statement... 5 Board of Directors and Auditor... 6 Senior Executives... 7 Shareholders... 9 Directors Report Consolidated Statement of Income Consolidated Statement of Comprehensive Income.. 15 Consolidated Balance Sheet Consolidated Cash Flow Statement...17 Changes in Group Equity Parent Company Statement of Income Parent Company Balance Sheet Parent Company Cash Flow Statement...21 Changes in Parent Company Equity...22 Notes...23 Certification by the Board of Directors...53 Audit Report Our Brands...57

4 Some of the Board, the CEO and Ninja ring the opening bell on Nasdaq 2017 is most easily summarised in four words: growth, growth, listing, growth Business operation Global Gaming 555 AB s business operation consists of management, consultancy in IT, production and sale of software (under licence) and, through subsidiaries, online gaming. The objective is to deliver innovative and secure services with strong local endorsement for both businesses (B2B) and end-customers (B2C). 4 Global Gaming 555 AB

5 CEO's Statement I will never forget the pleasure of leading Global Gaming on this wonderful journey of growth in 2017 and its listing on First North! 2017 is most easily summarised in four words: growth, growth, listing, growth The year began with us winning the EGR Nordic Innovation Award for the brand Ninja Casino and the payment solution PayNPlay. Shortly afterwards, the first TV commercial in Sweden produced in-house was aired and at once reached a larger public, clearly reflected by the growth curve in Q2. This success added further to the dedication of the growing workforce in all countries, and during the autumn the largest campaign for Ninja Casino to date was launched and established the brand firmly on the Swedish market. The success achieved by the brand also provided impetus in generating interest in the group at large. Particularly during the autumn of 2017, we noted that employees of other companies had their eyes opened to us, leading to the current situation where we have an incredibly skilled team in place. A team that is fast approaching 100 and already includes 17 nationalities. For all our shareholders, the listing on First North on 19 October was clearly the high point of the year. When the actor who plays the part in the Ninja in the commercials loudly rang the opening bell on Nasdaq in Stockholm, we welcomed more than 2000 new shareholders, and all the hard work yielded a monetary value, marking the start of the next stage for Global Gaming. There is obviously much more to write about in a CEO's Statement aimed at summing up a full business year, such as technology projects, work on new markets and licences, and we are following the plan to implement ISO 27001, preparations for GDPR, etc. But I choose to conclude by taking a brief look at the current situation and the immediate future. Alongside the continued growth of Ninja Casino, we have recently launched a new brand under a Maltese licence SpelLandet. This shows that the group has the technology, personnel and capability that will be required in the future, particularly with the next Swedish government in mind, which we look forward to. Global Gaming, through its subsidiaries, will, of course, apply for a licence and in so doing defend and continue to develop its position in the Swedish market. As we continue to grow in more markets and with more brands, our negotiating power will naturally also rise when we started up a few years ago it was almost impossible to bring about any really good agreements with our suppliers. We are now able to do so, and this will be an important element in continuing the trend of increased gross margins we glimpsed in previous reports. The task of driving Global Gaming forward has not in any way become easier, but it is different in character now that we have become an established and listed company. I have always believed that you have to be passionate about what you do if you are to do a good job. And what I am passionate about is innovation, technology and problem-solving. I have to acknowledge a tinge of sadness, sitting here writing what will be my last CEO's Statement after 10 years in the position, but it is undeniably a wonderful feeling to have taken Global Gaming to where we are now, to have an opportunity to focus on what I am good at and on 1 May to hand over to acting CEO Joacim, who is passionate about our organisation and continued growth! No one could dispute that Global Gaming is now in the classic growth phase of a company's life cycle and this means that there is still a lot to do and not least a substantial reward for all the shareholders! Stefan Olsson Global Gaming 555 AB

6 Board of Directors and Auditor Peter Eidensjö Chairman of the Board Born 1957 Nationality Swedish. Member of the Board since May Other assignments: Owner and member of the Board of PE Konsult och Investering AB and member of the Board of C-RAD AB (publ). Background: Many years of experience in the gaming industry, both online and offline. Former CFO of Betsson and CFO, business area manager and CEO of Cherry. Studied at the Stockholm School of Economics Shareholding: 300,000 (including family) Tobias Fagerlund Board Member Born 1971 Nationality Swedish. Member of the Board since May Other assignments: CEO and member of the Board of SpiffX AB. Own company Invika AB. Member of the Board of PlayHippo AB and Net Gaming Europe AB. Chairman of the Board of Dream of Sweden AB and LearnLand AB. Deputy member of the Board of YouC Media AB. Background: Many years of experience in the gaming industry. Former CEO of B2B Poker AB, Entraction Ltd and igame Ltd. Nordics manager for BetClic Everest Group and co-founder of Relax Gaming Ltd. Law degree from Stockholm University. Adriana Hamberg Board Member Born 1977 Nationality Swedish. Member of the Board since May Other assignments: Analyst and member of the Board of Hamberg Förvaltning AB. Background: Born in California, USA. CEO and member of the Board of Cherry Tivolito LMT. in Chile for 3 years. Degree in International Business Marketing from San Francisco State University. Shareholding: 306,900 (including family) Shareholding: 0 Ollipekka Vahvaselkä Board Member Born 1971 Nationality Finnish. Member of the Board since May Other assignments: Investment Director at Privanet Group plc in Finland, a financial company listed on First North. Background: Over 20 years experience in the financial market. Degree in economics from Aalto University School of Business. Shareholding: 0 KPMG AB Auditor in charge Jonas Nihlberg Authorised Public Accountant Born Global Gaming 555 AB

7 Senior executives Global Gaming 555 AB Stefan Olsson CEO until 30 April 2018, Global Gaming 555 AB. Born 1973 Nationality Swedish. Employee since Other assignments: Member of the boards of Group subsidiaries. Background: Entrepreneur. Former CTO of a company in the Times Group (MTG) Experience in the gaming industry since 2005, originally through the development of a poker network. Shareholding: 583,600 Warrants: 0 Joacim Möller COO and acting CEO from , Global Gaming 555 AB. Born 1971 Nationality Swedish. Employee since Background: Over 20 years experience of management in both entrepreneurial companies and large global groups. Has worked as head of HR, head of marketing, management consultant and officer in the Swedish Armed Forces. Degrees from the National Defence College (management, leadership and education) and IHM Business School (business communication). Christoffer Tell CFO, Global Gaming 555 AB Born 1987 Nationality Swedish. Employee since 2016, consultancy assignments since Background: Former CFO of Examec AB. Consultant and auditor at audit firm. Degree in economics and law from Kristianstad University College. Shareholding: 287,500 Warrants: 0 Shareholding: 25,000 Warrants: 200,000 Global Gaming 555 AB

8 Senior executives in subsidiaries Elec Games C1 Ltd. Global Gaming Estonia OU Alessandro Focardi CGO (Chief Growth Officer). Elec Games C1 Ltd. Born Nationality Italian. Employee since Background: 11 years in the gaming industry in Malta and the United Kingdom. Former Director of Digital Marketing in Blexr and employee in a senior role at The Stars Group. Shareholding: 0 Warrants: 0 Mark Wadsworth CPO and MD, Elec Games C1 Ltd. Born Nationality British. Employee since Background: Nearly 30 years in the IT industry, of which the last 10 in igaming, where he built up innovative gaming services, one of which is listed on Toronto Venture Exchange. Shareholding: 0 Warrants: 50,000 Morten Madsen CMO and MD, Global Gaming Estonia OU Born Nationality Danish. Employee since Other assignments: Member of the boards of subsidiaries in the Group. Background: Experience in the gaming industry since Corporate Communication from Aarhus School of Business (now Aarhus University). Slava Korneychik CCO (Chief Customer Officer), Global Gaming Estonia OU Born Nationality Estonian. Employee since 2017, consultancy assignments since Background: Many years of experience in the gaming industry. Was operational manager for IGT Interactive and its poker platform in Estonia. Shareholding: 237,500 Warrants: 0 Shareholding: 25,000 Warrants: 200,000 8 Global Gaming 555 AB

9 Shareholders The 15 largest shareholders at Number of shares Percentage of capital and voting power (%) CLEARSTREAM BANKING S.A., W8IMY 6,393, CBLDN-POHJOLA BANK PLC CLIENT A/C 4,677, TIAINEN, AHTI 4,133, NORDNET PENSIONSFÖRSÄKRING AB 2,212, HILDEBRAND, PER ALEXANDER 2,000, SWEDBANK AS (ESTONIA) 1,815, FÖRSÄKRINGSAKTIEBOLAGET, AVANZA PENSION 1,617, SPORTMARKET LTD 1,371, HÖGLUND, OLA 1,190, BANQUE INTERNATIONALE A LUX 1,037, HAMBERG FÖRVALTNING AKTIEBOLAG 800, LEPPÄNEN, KATJA MARIKA 738, TIAINEN, AHTI JUHANI 727, CATELLA BANK FILIAL 555, NIKLAS BORG 490, Other shareholders 29,766, Total number of shares in the Company 39,677, Where shares are held by nominee shareholders, the company is not fully aware of who the final owner is. Based on the information from owners, the following shareholdings relate to the founders of the company, as well as the largest individual shareholders. Share of capital and voting rights (%) Mika Leppänen Ahti Tiainen Per Hildebrand 6.70 Global Gaming 555 AB

10 Directors report Directors report The Board of Directors and Chief Executive Officer of Global Gaming 555 AB, corporate identity number , with registered office in Stockholm, present herewith the annual accounts for the financial year to for the Parent Company and the Group. The reporting currency for the Parent Company and the Group is Swedish kronor (SEK). Amounts are reported in thousands of SEK unless otherwise stated. The consolidated statement of income and balance sheet and the Parent Company income statement and balance sheet will be presented for adoption by the Annual General Meeting on 16 May For the sake of simplicity, Global Gaming will be used consistently in this annual report to describe the Group's gaming operations. This refers to the subsidiaries gaming operations, which in 2017 were undertaken through companies in Malta and Curacao. General information about the business The Group s operations are focused on the development and provision of online gaming, particularly casino games. The company s proprietary platform is used to provide gaming services both to own brands (B2C, see our brands on page 57) and to brands marketed by other companies (Turnkey/ Whitelabel/B2B are all sector-specific terms for this type of service). The platform handles payments, customer information, transactions and gaming offers. Revenue is generated through a margin on the end-customers stakes. Global Gaming has an objective to supply innovative and secure gaming services and, in addition to what is considered standard for responsible gaming in the industry (such as the option for end-customers to limit their deposits/ withdrawals and levels), has also developed the PayNPlay concept, which is based on self-registration through an eid in the local country (e.g. Bank-ID in Sweden). Verification of identity before any transaction (deposit or playing) means that no under-age gamers can take part and also guarantees that an identity that has previously been blocked due to gambling cannot lift this block by simply creating a new account. In addition to the brands on its own platform, Global Gaming operates and markets a number of brands on a platform from Aspire Global. In 2016, the company chose to focus on the brands operated on its own platform, but plans to move (migrate) the brands from Aspire to its proprietary platform in the future, as this will save costs but above all will provide a different experience for the end-customer. Revenue Revenue for the full year increased by 372 per cent to SEK 458.0m (97.0m). Continued growth is mainly an effect of the success of Ninja Casino in the Nordic Region. Of the number of customers on Ninja Casino, 69 percent played through their smartphones during the year. Gross margin Group gross margin increased to 58 (49) percent for the year Marketing expenses Marketing expenses totalled SEK 85.8m (7.9m). The increase is largely attributable to continued marketing efforts for the Ninja Casino brand on the Nordic market. Marketing campaigns were launched through television, radio and digital media, but also through offline media. Global Gaming ran the largest campaign for the Group's brands to date during the fourth quarter. Expenses as a proportion of revenue may vary widely over time depending on the intensity of various campaigns and/or launches on new markets. As Global Gaming intends to grow further on existing markets in order to strengthen its position and invest in new markets, there will be a further increase in marketing expenses. 10 Global Gaming 555 AB

11 Employee expenses Employee expenses totalled SEK 28.9m (18.8m). The average number of employees over the whole year was 40 (23). At the end of the year, Global Gaming had 57 (28) employees. Global Gaming will continue to grow and increase the number of employees both in Sweden and abroad over the coming year. The greatest focus is on the group s operations in Malta. Other external expenses Other external expenses for the full year totalled SEK 22.3m (8.8m). The increase in expenses is principally an effect of scale-up of the Group in order to safeguard growth and expansion. Nonrecurring expenses of SEK 3.3m ahead of the company s listing on Nasdaq First North have been charged against profit. Profit/loss Pre-tax earnings (EBIT) for the full year rose to SEK 122.0m (11.7m). The operating margin was 26.6 percent (12.1). Group pre-tax profit was SEK 122.0m (11.7m) and profit after tax was SEK 108.3m (10.3), equivalent to basic earnings per share of SEK 2.78 (0.27). Cash and cash equivalents and customer balances Cash and cash equivalents at the end of the year totalled SEK 154.0m (14.5m). Current gamer liabilities and jackpot liabilities totalled SEK 5.9m (2.5m), while current receivables from payment providers totalled SEK 18.6m (4.0m). Cash flow Cash flow from operating activities for the full year totalled SEK 124.3m (11.9m). Equity Group equity at the balance-sheet date was SEK 229.6m (100.9m), equivalent to SEK 5.78 (2.61) per share. SEK 22.0m was contributed to the company in a new share issue made in October. Employees of the company bought 650,000 warrants in the 2017/2020 programme out of the 800,000 issued. The strike price is SEK 25 per option. The Group has received SEK 21,450 in payment for the warrants, which has been contributed to equity. With regard to warrants under the 2016/2018 programme, all the option holders (CEO, CFO and CMO) utilised their options at the beginning of 2018 and have consequently subscribed to a total of 1.2 million shares in the company. A total of SEK 7.2m has been contributed to equity. Significant events in 2017 The Company's shares were listed for trading on Nasdaq First North on 19 October and ahead of this listing a new share issue was made to broaden the ownership base of SEK 22m, which was oversubscribed 18 times. The Group has been granted a Maltese gaming licence, MGA Class 1. Significant events after the end of the year Incentive schemes in the form of warrants from 2016 to senior executives have been utilised in full, and the number of shares has increased by 1.2 million to 40.9 million. Stefan Olsson will leave the position of CEO at his own request with effect from 30 April. The COO Joacim Möller has been appointed acting CEO from 1 May. Parent Company Global Gaming 555 AB s business operation consists of management, consultancy in IT, production and sale of software (under licence). Revenue for the period in the Parent Company was SEK 54.8m (14.3m) and profit after tax was SEK 57.3m (26.5m). Cash and cash equivalents at the end of the period totalled SEK 117.9m (3.9m). Shares and shareholders The shares that were listed on First North on 19 October are still being actively traded, and investor interest remains strong. The average turnover from the date of listing to 15 February has been SEK 9.3m per day. The total number of outstand- Global Gaming 555 AB

12 ing shares and votes in Global Gaming 555 AB at is 39,677,500. The three largest shareholders at the end of December 2017 were Mika Leppänen (through a nominee) with 16.65%, Ahti Tiainen with 12.25% and Per Hildebrand (through a nominee) with 6.70%. The company had a total of 2,940 shareholders at the end of the year. Outlook for 2018 The global market for on-line casinos is growing, and there is a trend in Europe for more and more markets to be regulated. On-line casinos are the also the most rapidly growing segment in Sweden, and this growth has been partly driven by powerful marketing and an increase in the number of gaming customers. The on-line casino market totalled SEK 2.2 billion in 2017 and is estimated to grow at an average annual rate of 13.3 percent over the period , according to H2 Gambling Capital. It is anticipated that the Swedish market will be regulated in For Global Gaming, this signifies good opportunities for continued organic growth for both the the traditional brands and Ninja Casino, in particular due to the proprietary platform, which enables local adaptations. There is an aspiration to reach out to one or more locally licensed markets in Research and development Global Gaming undertakes continuous development of existing products. Responsibility for gamers Global Gaming's objective is to take the greatest possible responsibility for its gamers, and the company endeavours to have the best technical tools with which to identify and prevent problem gaming. Material risks and factors of uncertainty Global Gaming operates in an industry with a constantly changing legal and technical landscape. This makes great demands on both internal expertise and the legal practitioners and consultancies the group engages in each country. In the phase of growth Global Gaming is currently in, difficulties in recruiting skilled personnel are posing an obstacle, while some core parts of the business are linked to a small number of individuals, which presents a risk if key individuals choose to leave. The PayNPlay concept, headed by Ninja Casino, at present is closely associated with a single payment provider, Trustly. Although this payment provider is subject to control by the Swedish Financial Supervisory Authority, this poses a real risk of a drop in revenue. Global Gaming operates under a gaming licence in Curacao with an application for a gaming licence (Class 1 out of 4) with a pending application in Estonia. As it is mandatory to obtain permits for the operations, new interpretations of laws and new regulations may have a significant impact on Global Gaming s earnings and financial position. A number of countries currently have local licences which Global Gaming is evaluating. Global Gaming s operations exist in a complex and changeable landscape of both general and industry-specific tax rules. There is a risk that changes to applicable tax legislation and current practice may mean lead to a change in Global Gaming's management of taxes, resulting in an adverse impact on Group earnings and financial position. Global Gaming is active in the online gaming market, which is notable for a varying degree of statutory regulation in which laws, ordinances and regulations often change. In many national markets, marketing measures and/or the offering of gaming services are closely regulated and generally prohibited. Practice in the market (among both authorities and operators) often differs from formal regulation. In September 2015, the Swedish Government decided to appoint an inquiry tasked with presenting proposals for new gaming regulations to be notable for high consumer protection, high security in games and clear basic preconditions for the players in the gaming market. The original proposal was presented in March 2017, and after the opinions of consulted bodies had been received in the autumn of 2017 was adjusted and examined by 12 Global Gaming 555 AB

13 the Council on Legislation, among others, as a consequence of which a Government Bill has been introduced in the Swedish Parliament, which is expected to reach a decision on the matter in June Despite the proposal having reached this milestone, a number of questions remain where the envisaged Gaming Authority will publish regulations and be responsible for the interpretation of the new act. Both re-regulation and the introduction of legislation on stake levels, marketing and restrictions regarding online gaming may have a material adverse impact on Global Gaming s operations, financial position and profits. Global Gaming is exposed to both seasonal and economic fluctuations. Seasonal variations may have a material impact on the company's operations during periods of lower gaming activity. Global Gaming is an international business with operations constantly exposed to different currencies. Changes in exchange rates affect Group profits. The company endeavours to reduce currency exposure through effective cash management. However, the Group will continue to be more or less exposed to currency fluctuations. The company's operations are pursued in accordance with the Company's interpretation of applicable tax rules, tax agreements and provisions in the countries concerned and the requirements of affected tax authorities. If it turns out that Global Gaming's interpretation of applicable laws, tax agreements and provisions, or the interpretation of these by authorities concerned or their administrative practice, are not entirely correct, or that such rules, interpretations and practices change, possibly with retroactive effect, these might alter Global Gaming's current and future tax situation, which there is a risk might have an adverse impact on the Company's profits and financial position. Proposed guidelines on remuneration of senior executives The Board has made the following proposal for adoption in the notice calling the Annual General Meeting to be held on 16 May 2018: The Board proposes that the Annual General Meeting adopt the following principles for remuneration and other terms of employment for senior executives as follows. The term senior executives means the Group management and operational management. Remuneration must be market-based and competitive in order to enable the company to attract and retain skilled individuals in senior executive roles. Remuneration is to consist of fixed pay, where appropriate variable pay, pension and other benefits such as a company car. A. Fixed basic pay Fixed basic pay for senior executives is reviewed annually. The breakdown between basic pay and, where applicable, variable pay must be proportionate to the responsibilities and powers of the senior executive concerned. B. Variable pay Variable pay must be payable provided that certain financial targets adopted by the Board have been met. Variable pay varies depending on the extent to which the targets have been met or surpassed. If the financial targets are surpassed at the highest level, the Group's cost of variable pay for the Group's senior executives is estimated to total a maximum of SEK 8.7m including social security expenses. Variable pay may amount to a maximum of SEK 1,200,000 (including social security expenses) per senior executive and a maximum of of SEK 1,500,000 (including social security expenses) for the CEO. C. Pension The normal retirement age is to be 65. Pension terms are to be commensurate with the market and based on defined contributions. Severance pay, etc. The period of notice should normally be six to twelve months if notice is given on the initiative of the company, and six months if such notice is given on the initiative of the senior executive. If notice is given by the company, it is to be possible for severance pay to be awarded in an amount equivalent to 12 months of salary. The Global Gaming 555 AB

14 Board has the right to depart from the guidelines if there are special grounds for doing so in individual cases. Authorisations for the Board The Annual General Meeting held on 21 June 2017 resolved to grant the Board two authorisations to issue shares. Shares to a value of EUR 2.5m on market-based for an issue to diversify the investor base for listing. Authorisation to increase the number of shareholders ahead of listing on Nasdaq First North was utilised during the year. Shares to a maximum dilution of 10% on market-based terms for capital needs and structural transactions. The authorisation has not been utilised as the operating profit was positive and no structural transactions have been deemed to be of interest. Dividend policy and proposed dividend The Board proposes that the Annual General Meeting decide upon a dividend to shareholders of SEK 1.40 (0.15) per share, equivalent to SEK 57.2m (5.8m) for the 2017 financial year. The company s dividend policy is that at least 50 percent of the profit after tax can be transferred to the shareholders, either through a share dividend or through a redemption programme, provided that the company can maintain a sufficient reserve to be able to act quickly in establishing new markets and/or making smaller acquisitions. The Board proposes that the profit and non-restricted reserves available be appropriated as follows: Dividend, 40,877,500 shares * SEK 1.40 per share 57,228,500 Carried forward to new account -57,290,898 of which to share premium reserve 119,379,500 Total 119,317,102 Summary of the Board s opinion on the proposed dividend The proposed dividend is SEK 57.2m, representing 53 percent of Group profit after tax. In the Board s judgement, taking into account liquidity requirements, the presented budget and investment plans, there is nothing to suggest that the Group s and Parent Company s equity is not sufficient in relation to the nature of the business, scope and risks after the proposed dividend. The Board therefore finds the proposed dividend to be satisfactory under Chapter 17 Section 3 of the Companies Act. Appropriation of profit The Board s proposal for appropriation of profit Share premium reserve 119,379,500 Retained earnings -57,380,730 Net profit for the year 57,318,332 Total 119,317, Global Gaming 555 AB

15 Financial statements Consolidated statement of income 1 January-31 December KSEK Note Revenue 3 458,042 97,025 Running costs in gaming operations -190,794-49,295 Gross profit 267,248 47,730 Marketing expenses -85,847-7,895 Other external expenses ,340-8,780 Personnel expenses 6-28,851-18,780 Depreciation, amortisation and impairment of property, plant and equipment and intangible assets Other operating income/expenses 9-7, Operating profit 121,969 11,756 Financial income - 7 Financial expenses -4-7 Net financial items 10-4 Profit before tax 121,965 11,756 Tax 11-13,650-1,448 Net profit for the year (attributable to Parent Company shareholders) 108,315 10,308 Earnings per share 12 Basic (SEK) Diluted (SEK) Other consolidated comprehensive income 1 January-31 December KSEK Note Net profit for the year 108,315 10,308 Other comprehensive income Items that have been reclassified or may be reclassified to net profit for the year Translation differences for the year on translation of foreign operations 4,167 3,310 Profit for the year (attributable to owners of the Parent Company) 112,482 13,618 Global Gaming 555 AB

16 Consolidated balance sheet KSEK Note Assets 13 Intangible assets 7 80,872 78,597 Property, plant and equipment 8 1, Deferred tax liabilities 11 6,167 10,010 Total non-current assets 88,903 88,924 Accounts receivable 8,314 5,913 Prepaid expenses and accrued income 2, Other receivables 14 21,411 5,209 Cash and cash equivalents ,993 14,474 Total current assets 186,096 26,233 Total assets 274, ,157 Equity 16 Share capital 39,678 38,678 Other contributed capital 119,375 98,353 Reserves 5,196 1,029 Profit brought forward including net profit for the year 65,415-37,098 Equity attributable to Parent Company shareholders 229, ,962 Total equity 229, ,962 Liabilities 13 Deferred tax liabilities ,175 Total non-current liabilities 905 1,175 Accounts payable 21,767 4,975 Tax liabilities 10,924 1,716 Other liabilities 17 7,717 3,755 Accrued expenses and deferred income 4,022 2,574 Total current liabilities 44,430 13,020 Total liabilities 45,335 14,195 Total equity and liabilities 274, ,157 For information concerning Group pledged assets and contingent liabilities, see Note Global Gaming 555 AB

17 Consolidated cash flow 1 January-31 December KSEK Note Operating activities Profit before tax 121,965 11,756 Adjustment for items not included in cash flow 1, Income tax paid Cash flow from operating activities before changes in working capital 122,543 11,606 Cash flow from changes in working capital Increase (-)/decrease (+) in operating receivables -19,776 1,827 Increase (+)/decrease (-) in operating liabilities 21,514-1,540 Cash flow from operating activities 124,281 11,893 Investing activities Acquisition of property, plant and equipment -1, Cash flow from investment operations -1, Financing activities New issue of shares 22,000 Premium paid on issuing of share options Dividend -5,802 - Repayment of loans Cash flow from financing activities 16, Cash flow for the year 138,674 10,906 Liquid assets at 1 January 14,474 3,416 Exchange-rate difference in cash and cash equivalents Cash and cash equivalentsat 31 December 153,993 14,474 Global Gaming 555 AB

18 Change in equity - Group KSEK Share capital Other contributed capital Translation reserve Retained earnings incl. net profit for the year Total shareholders capital Opening equity ,678 98,163-2,281-47,406 87,154 Comprehensive income for the year Net profit for the year 10,308 10,308 Other comprehensive income for the year 3,310 3,310 Comprehensive income for the year 3,310 10,308 13,618 Transactions with the Group's owners Contributions from and value transfers to owners Premium paid on issuing of share options Total contributions from and value transfers to owners Total transactions with the Group's owners Closing equity ,678 98,353 1,029-37, ,962 KSEK Share capital Other contributed capital Translation reserve Retained earnings incl. profit for the year Total Shareholders capital Opening equity ,678 98,353 1,029-37, ,962 Comprehensive income for the year Net profit for the year 108, ,315 Other comprehensive income for the year 4,167 4,167 Comprehensive income for the year 4, , ,482 Transactions with the Group's owners Contributions from and value transfers to owners Dividend -5,802-5,802 New issue of shares 1,000 21,000 22,000 Premium paid on issuing of share options Total contributions from and value transfers to owners 1,000 21,022-5,802 16,220 Total transactions with the Group's owners 1, ,802 16,220 Closing equity , ,375 5,196 65, ,664 See Note 16 for a more detailed reconciliation of the reserves. 18 Global Gaming 555 AB

19 Parent Company income statement 1 January-31 December KSEK Note Revenue 3 54,848 14,291 Other external expenses ,123-3,880 Employee expenses 6-16,178-9,103 Depreciation of property, plant and equipment Other operating income/expenses Operating profit 23,058 1,747 Profit from financial items Profit from participations in Group companies 39,375 25,155 Interest expenses and similar profit/loss items -2-5 Profit after financial items 10 62,431 26,897 Tax 11-5, Net profit for the year 57,318 26,494 Global Gaming 555 AB

20 Parent Company balance sheet KSEK Note Non-current assets Property, plant and equipment 8 1, Financial fixed assets Participations in Group companies 20 52,699 52,649 Deferred tax assets 11 4,554 9,666 Total financial assets 57,253 62,315 Total non-current assets 58,286 62,414 Current assets Current receivables Trade receivables 190 Receivables from Group companies 21 57,592 18,367 Other receivables 14 4,158 3,418 Prepaid expenses and accrued income 22 1, Total current receivables 63,096 21,884 Cash and bank balances 117,911 3,923 Total current assets 181,007 25,807 Total assets 239,293 88,221 Equity and liabilities Equity 16 Restricted equity Share capital (38,677,500 shares) 39,678 38,678 Revaluation reserve 40,913 Unrestricted equity Share premium reserve 119,380 98,353 Retained earnings - 57, ,985 Net profit for the year 57,318 26,494 Total equity 158,995 85,453 Current liabilities Trade payables Current tax liabilities Liabilities to Group companies 75,948 Other liabilities Accrued expenses and deferred income 23 2,782 1,641 Total current liabilities 80,298 2,768 Total equity and liabilities 239,293 88, Global Gaming 555 AB

21 Parent Company cash flow 1 January-31 December KSEK Note Operating activities Profit after financial items 62,431 26,897 Adjustment for items not included in cash flow ,284 Income tax paid Cash flow from operating activities before changes in working capital 62,645 13, Cash flow from changes in working capital Increase (-)/decrease (+) in operating receivables -41,212-7,348 Increase (+)/decrease (-) in operating liabilities 77,415-1,818 Cash flow from operating activities 98,848 4,487 Investing activities Acquisition of property, plant and equipment -1, Acquisition of financial assets Cash flow from investment operations -1, Financial operations Dividend -5,802 - New issue of shares 22,000 - Premium paid on issuing of share options Repayment of loan Cash flow from financing activities 16, Cash flow for the year 113,988 3,777 Liquid assets at 1 January 3, Cash and cash equivalents at 31 December 117,911 3,923 Global Gaming 555 AB

22 Change in equity - Parent Company KSEK Restricted equity Share capital Revaluation fund Share premium reserve Unrestricted equity Retained earnings Net profit for the year Total equity Opening equity ,678 40,913 98,163-37,182-81,803 58,769 Comprehensive income for the year Net profit for the year 26,494 26,494 Other comprehensive income for the year Comprehensive income for the year ,494 26,494 Appropriation of profits -81,803 81,803 Premium paid on issuing of share options Closing equity ,678 40,913 98, ,985 26,494 85,453 KSEK Restricted equity Share capital Revaluation fund Share premium reserve Unrestricted equity Retained earnings Net profit for the year Total equity Opening equity ,678 40,913 98, ,985 26,494 85,453 Comprehensive income for the year Net profit for the year 57,318 57,318 Other comprehensive income for the year Comprehensive income for the year 57,318 57,318 Appropriation of profits 26,494-26,494 Dividend -5,802-5,802 Premium paid on issuing of share options Bonus issue/revaluation reserve 40,913-40,913 Reduction of share capital -40,913 40,913 New issue of shares 1,000 21,000 22,000 Closing equity , ,379-57,380 57, ,995 See Note 16 for a more detailed reconciliation of the revaluation reserve. 22 Global Gaming 555 AB

23 Notes Note 1 -Significant accounting policies Compliance with standards and legislation The consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted by the EU. In addition, the Swedish Financial Reporting Board s recommendation RFR 1 Supplementary Accounting Rules for Groups has been applied. The Parent Company applies the same accounting policies as the Group, with the exception of those cases indicated below in the section "Parent Company accounting policies". The annual accounts and consolidated accounts were approved for issue by the Board and Chief Executive Officer on Bases of valuation applied in preparing the financial statements Assets and liabilities are recognised at historical cost except for certain financial assets and liabilities which are valued at accrued cost. Functional currency and reporting currency The Parent Company's functional currency is Swedish kronor, which is also the reporting currency for the Parent Company and Group. This means that the financial statements are presented in Swedish kronor. All amounts, unless otherwise stated, are rounded to the nearest thousand. Assessments and estimates in the financial statements The preparation of financial statements in accordance with IFRS requires the senior management to make assessments and estimates and to make assumptions that influence the application of the accounting policies and carrying amounts for assets, liabilities, income and expenses. The actual outcome may differ from these estimates and assessments. The estimates and assumptions are reviewed regularly. Changes to these estimates are reported in the period when the change is made if the change has only affected this period or in the period when the change is made and future periods if the change affects both the current period and future periods. Assessments made by the senior management in application of IFRS which have a significant impact on the financial statements and estimates made which may result in material adjustments in the financial statements of subsequent years are described in more detail in Note 2. Significant accounting policies applied The accounting policies indicated below, with the exceptions described in more detail, have been consistently applied to all periods presented in the consolidated financial statements. New IFRS standards awaiting application A number of new or amended IFRS standards will only enter into force in coming financial years and have not been applied early in preparing these financial statements. IFRS 15 governs how revenue from contracts with customers is to be recognised. IFRS 15 is to be applied with effect from 1 January This standard replaces current standards for recognition of revenue from contracts with customers. Global Gaming has evaluated the effects of the standard on the Group s revenue recognition and has found that no material effects arise on transition to IFRS 15. On the other hand, the standard will mean some expanded disclosure requirements. IFRS 9 Financial Instruments replaces IAS 39, which is the current standard for recognition and measurement of financial instruments in IFRS. IFRS 9 contains changes with respect to hedge accounting, classification and measurement of financial assets and impairment of financial receivables. The Group does not apply financial instruments for the purpose of hedging and is therefore not affected by the changes concerning hedge accounting. The introduction of IFRS 9 will not affect how the Group classifies financial Global Gaming 555 AB

24 assets. Under IFRS 9, further impairment of receivables is to be done based on expected credit losses, unlike IAS 39, which states that impairment is not to take place until a credit loss has occurred. The Group s exposure to credit risk is attributable principally to receivables from financial counterparties which provide the payment solutions used by the Group's gaming sites and to cash and cash equivalents in the form of bank balances. The counterparties have high creditworthiness, while the maturities of the receivables are short. IFRS 9 will therefore not have any material impact on how the Group makes provision for credit losses. IFRS 16 Leases with effect from 2019 replaces IFRS standards related to recognition of leases, such as IAS 17 Leases and IFRIC 4 Determining Whether an Arrangement Contains a Lease. The standard may affect the Group through leases currently recognised as operational leasing instead being recognised in the balance sheet as a right-of-use asset and liability for the lease payments. Global Gaming has not, however, evaluated the impact of the standard. The senior management does not intend to apply IFRS 16 early. Classification, etc. Non-current assets essentially essentially consist of amounts expected to be recovered or paid after more than twelve months, counting from the balance-sheet date, while current assets essentially consist of amounts expected to be recovered within twelve months counting from the balance-sheet date. Non-current essentially comprise amounts that Global Gaming at the end of the reporting period has an unconditional right to decide to pay more than twelve months after the end of the reporting period. If Global Gaming does not have such a right at the end of the reporting period, or if a liability is settled within the normal business cycle, the amount of liability is recognised as a current liability. Segment reporting The Group is viewed as a single unit in which all constituent sub-activities are integrated and dependent on one another. The most senior executive decision-makers monitor the group's comprehensive income statement and balance sheet. No part of the performance report is divided into different segments. The Group therefore presents only one segment. Consolidation policies and businesscombinations Subsidiaries Subsidiaries are entities that are under the controlling influence of the Parent Company. Controlling influence exists if the Parent Company has influence over the object of investment, is exposed to or has the right to variable return from its commitment and can use its influence over the investment to have an impact on return. In determining whether controlling influence exists, potential shares carrying voting rights and whether de facto control exists are taken into account. Subsidiaries are reported in accordance with the purchase method. The acquisition is treated as a transaction through which the Group indirectly acquires the subsidiary's assets and assumes its liabilities. In the acquisition analysis, fair value on the date of acquisition of acquired identifiable assets and liabilities taken over are established, as well as any holdings without controlling influence. Transaction expenditure arising, with the exception of transaction expenditure attributable to issue of equity instruments or debt instruments, is recognised directly in net profit for the year. In cases where the transferred payment comprises treasury shares, the value of the payment has been based on the estimated fair value of the shares at the time of acquisition. Transactions eliminated on consolidation Intra-Group receivables and payables, income or expenses and unrealised gains or losses arising from intra-group transactions among Group companies are eliminated in their entirety in preparing the consolidated financial statements. Foreign currencies Foreign currency transactions Transactions in foreign currencies are translated to the functional currency at the exchange rate prevailing on the date of the transaction. 24 Global Gaming 555 AB

25 Functional currency is the currency of the primary economic environment in which the companies operate. Monetary assets and liabilities in foreign currency are translated to the functional currency at the rate prevailing on the balance sheet date. Exchange-rate differences arising on translation are recognised in net profit for the year. Nonmonetary assets and liabilities recognised at historical cost are translated at the exchange rate prevailing on the transaction date. Financial statements of foreign operations Assets and liabilities in foreign operations, including goodwill and other Group surpluses and deficits, are translated from the functional currency of the foreign operation to the Group's reporting currency, Swedish kronor, at the exchange rate prevailing on balance-sheet date. Income and expenses in a foreign operation are translated to Swedish kronor at an average exchange rate representing an approximation of the exchange rates prevailing at the time of the transaction concerned. Foreign exchange differences arising on translation are recognised in other comprehensive income and are accumulated in a separate component of equity known as translation reserve. Accumulated exchange differences attributable to foreign operations have been stated as zero at the time of transition to IFRS. Revenue Group revenue essentially consists of revenue from gaming operations. Gaming transactions in which the company's revenue consists of commission, fixed percentage of profit or similar are recognised in accordance with IAS 18 Revenue. Gaming revenue is recognised net after deduction of players winnings, bonuses and jackpot contributions. Marginal, non-game-related revenue from such services is also included. Revenue from sold services is recognised exclusive of VAT and discounts and after eliminating intra-group sales. Sold services comprise consultancy and management revenue, the greater part comprising intra-group sales from Parent Company to subsidiaries. External revenue from solid services is marginal only. Operating expenses in gaming operations Operating expenses in gaming activities relate to expenses of gaming taxes, licence fees to game providers, expenses for payment services via banks, credit cards for game stakes and payment of winnings as well as fraud and chargeback costs. Operating expenses also include commission to partners and affiliates (advertising networks). Remuneration of partners and affiliates is volume-related and linked to the mediated end-customer's gaming. Marketing expenses This item includes expenses on production and distribution of marketing in various media. Other operating income/expenses The costs of secondary activities in ordinary operations regarding operating receivables and operating liabilities are recognised as other operating income/expenses. This item principally includes gains and losses on exchange in operation and capital gains and capital loses on sale, disposal or impairment of non-current assets or operations. Capitalised work for own account The Group has pursued development work. The company does not, however, at present have systems enabling it to allocate expenditure to specific development projects in a reliable manner. No development expenditure has therefore been capitalised. Operating leases Expenses relating to operating leases are recognised in net profit for the year over the lease term. Financial income and expenses Financial income consists of interest income on invested funds and exchange-rate gains. Interest income on financial instruments is recognised according to the effective interest method (see below). Financial expenses consist of interest expenses on loans and losses on exchange. Exchange gains and losses are recognised net. Global Gaming 555 AB

26 The effective interest rate is the rate which discounts the estimated future receipts and payments through the expected life of a financial instrument to the net carrying amount of the financial asset or liability. The calculation includes all fees paid or received by the contracting parties which are a part of the effective interest rate, transaction costs and all other premiums or discounts. Taxes Income tax for the year comprises current tax and deferred tax. Income tax is recognised in net profit for the year except when underlying transactions have been recognised under other comprehensive income or under equity, in which case the associated tax effect is recognised under other comprehensive income or under equity. Current tax is tax that is to be paid or received during the current year, based on the tax rates that were adopted or adopted in practice on the balance sheet date. Current tax also includes adjustment of current tax attributable to previous periods. Deferred tax is calculated according to the balance sheet method based on temporary differences between carrying amounts and the value of assets and liabilities for tax purposes. Temporary differences are not taken into account in Group goodwill, nor is the difference arising on initial recognition of assets and liabilities which are not business combinations which at the time of the transaction do not affect either net profit or loss or profit or loss for tax purposes. In addition, no account is taken of temporary differences attributable to participations in subsidiaries and associated companies if they are not expected to be reversed in the foreseeable future. The valuation of deferred tax is based on how the underlying assets or liabilities are realised or settled. Deferred tax is calculated using the tax rates and tax rules that had been adopted or adopted in practice on the balance sheet date. Deferred tax receivables in respect of deductible temporary differences and loss carry-forwards are reported only insofar as these are likely to be utilised. The value of deferred tax assets is reduced when it is no longer deemed likely that they can be utilised. Foreign tax When dividends are paid from the subsidiaries in Malta, 6/7ths of the corporation tax paid in Malta is repaid to the Parent Company in Sweden. This is recognised in the Parent Company together with dividends from subsidiaries under financial income and in the Group as reduced tax expense. In the case of dividends from subsidiaries in Estonia, 20% of the dividend is taxed. Tax is recognised in Estonia and in the Group on payment of dividend and in the Group on anticipated payment of dividend. The tax on profit for companies in Estonia is 0%. Financial instruments Financial instruments recognised in the balance sheet date include, on the assets side, cash and cash equivalents, loan receivables, trade receivables. On the liabilities side there are trade payables and borrowings. Recognition and derecognition in the balance sheet A financial asset or financial liability is recognised in the balance sheet when the company becomes a party to the contractual terms of the instrument. A receivable is recognised when the company has performed and there is a contractual obligation to pay, even if no invoice has yet been sent. Trade receivables are recognised on the balance sheet when an invoice has been issued. A liability is recognised when the counterparty has performed its contractual obligations and the company is contractually obliged to pay, even if no invoice has yet been received. Trade payables are recognised when an invoice has been received. A financial asset is removed from the balance sheet when the rights in the agreement are realised or expire or the company loses control over them. This also applies to some financial assets. A financial liability is removed from the balance sheet when the contractual obligation has been fulfilled or is extinguished in some other way. This also applies to part of a financial liability. Purchases and sales of financial assets are recognised on the trade date. The trade date is the date when the company commits to acquire or sell the asset. 26 Global Gaming 555 AB

27 Classification and measurement Financial instruments which are not derivatives are recognised initially at cost equivalent to the fair value of the instrument plus transaction expenses for all financial instruments except those classified as belonging to the category of financial assets recognised at fair value through profit and loss, which are recognised at fair value excluding transaction expenses. A financial instrument is classified on first recognition among other things on the basis of the purpose for which the instrument was acquired. The classification determines how the financial instrument is measured after each reporting date, as described below. Cash and cash equivalents consist of cash and immediately available balances at banks and equivalent institutions, as well as current liquid investments with a term of less than three months from the time of acquisition which are subject to only an insignificant risk of fluctuation in value. Loan receivables and trade receivables Loans receivables and trade receivables are non-derivative financial assets, which have fixed or determinable payments and which are not listed on an active market. These assets are measured at amortised cost. Amortised cost is determined on the basis of the effective interest rate calculated at the acquisition date. Trade receivables are recognised in the amount expected to be received, i.e. after deduction of doubtful debts. Other financial liabilities Loans and other financial liabilities, such as trade payables, are included in this category. The liabilities are measured at accrued cost. Property, plant and equipment Property, plant and equipment is reported at cost after deduction of accumulated depreciation and any impairments. Repairs and maintenance are recognised as expenses on an ongoing basis. The carrying amount of an item of property, plant and equipment is derecognised in the balance sheet in conjunction with its sale or disposal, and when no future financial benefit can be expected from the use or disposal/sale of the asset. Gains or losses arising from the sale or scrapping of an asset consist of the difference between the sale price and the asset s carrying amount, less direct selling expenses. Gains and losses are recognised as other operating income/expenses. Intangible assets Goodwill Goodwill is deemed to have an indeterminable useful life and is excluded from annual depreciation. These assets are assessed as having a useful life, the end of which is undecided and its value, therefore, continues for as long as the expected discounted net inflow from the intangible asset is at least equal to its book value. Tests are performed each year to identify any impairment loss and therefore to reduce the values of the assets by impairments. Brands Brands are deemed to have an indeterminable useful life and are excluded from annual depreciation. These assets are assessed as having a useful life, the end of which is undecided and its value, therefore, continues for as long as the expected discounted net inflow from the intangible asset is at least equal to its book value. Tests are performed each year to identify any impairment loss and therefore to reduce the values of the assets by impairments. Depreciation Depreciation is based on original acquisition costs, less estimated residual value and taking into account the impairments made. Depreciation is applied on a straight-line basis over the estimated useful life of the asset. The following useful lives are used: Brands Goodwill Office equipment and installations Servers and similar Other hardware indeterminable indeterminable 5 years 5 years 5 years Impairment Assessments of the residual value of assets and useful period are carried out on an annual basis. If there is an indication that property, plant Global Gaming 555 AB

28 and equipment or intangible assets in the Group have an excessively high book value, an analysis is made in which value is determined for individual or naturally associated types of assets as the higher of net sale value and value in use. The value in use is measured as the expected future discounted cash flow. Intangible assets which are not yet clear undergo annual impairment testing, irrespective of whether there is an indication. The difference between book value and recoverable amount is impaired. An impairment is reversed when the impairment is no longer justified. A reversal is made up to a maximum value value that does not exceed the book value that would have been recognised, less depreciation if no impairment would not been made. Any impairment of goodwill is not reversed. Dividends to the owners Dividends are recognised as a liability following approval by the Annual General Meeting. Earnings per share The calculation of the earnings per share is based on the Group s profit/loss for the year attributable to the Parent Company s owners and on the weighted average number of shares outstanding during the year. In calculating earnings per share after dilution, the profit and the average number of shares are adjusted to take account of the effects of diluting potential ordinary shares. Remuneration of employees Short-term remuneration Short-term remuneration of employees is calculated without discounting and recognised as an expense when the related services are received. A provision is recognised for the expected cost involved in profit-sharing and bonus payments where the Group has a legally binding or informal obligation to make such payments as a result of the performance of services obtained from employees and the obligation can be measured reliably. Termination benefits A cost of benefits in connection with termination of the employment of staff is recognised at the earliest date when the company is no longer able to withdraw the offer to the employees or when the company recognises company reports restructuring expenses. Share-based payments The Group has two option programmes enabling employees to acquire shares in the business. The options were, however, acquired at fair value, which means that there is no expense to be recognised in accordance with the requirements set forth in IFRS 2. Provisions A provision differs from other liabilities in that there is uncertainty over the date of payment or the size of the amount to settle the provision. A provision is reported in the statement of financial position when a legal or constructive obligation exists arising from a past event, and it is likely that an outflow of economic resources will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are made in the amount that is the best estimate of what is required to settle the existing obligation on the balance sheet date. Where the time when a payment is made has a significant effect, provisions are calculated by discounting the expected future cash flow at a pre-tax interest rate that reflects current market assessments of the time value of money and, where appropriate, the risks associated with the liability. Contingent liabilities A contingent liability is disclosed when there is a possible commitment that arises from past events and whose existence is confirmed only by the occurrence or non-occurrence of one or more uncertain future events beyond the Group s control or when there is a commitment that is not recognised as a liability or provision because it is not likely that an outflow of resources will be required. Parent Company accounting policies The Parent Company has prepared its annual accounts in accordance with the Swedish Annual 28 Global Gaming 555 AB

29 Accounts Act (1995:1554) and recommendation RFR 2 of the Swedish Financial Reporting Board: Accounting for Legal Entities. Opinions issued by the Swedish Financial Reporting Board applicable to listed companies are also applied. RFR 2 means that the Parent Company in the annual accounts of the legal entity has to apply all EU-approved IFRS standards and interpretations as far as possible under the terms of the Annual Accounts Act, the Act on Safeguarding of Pension Obligations and in consideration of the connection between accounting and taxation. The recommendation indicates what exceptions from and additions to IFRS are to be made. IFRS 9 and IFRS 15 are not expected to have any material impact on the Parent Company s accounts. Differences between the accounting policies applied to the consolidated and the Parent Company financial statements The differences between the accounting policies applied to the consolidated financial statements and those of the Parent Company are shown below. The accounting policies outlined below for the Parent Company have been applied consistently to all periods shown in the Parent Company s financial statements. Changes to accounting policies Unless otherwise stated below, the Parent Company accounting policies in 2017 have changed in line with what is stated above for the Group. Classification and formats The income statement and balance sheet of the Parent Company have been prepared in accordance with the scheme set out in the Annual Accounts Act, while the statement of income and other comprehensive income, the statement on changes in equity and the cash flow statement are based on IAS 1 Presentation of Financial Statements and IAS 7 Statement of Cash Flows. The differences compared to the Group s statements manifested in the Parent Company's income statements and balance sheets mainly comprise recognition of financial income and expenses, non-current assets, equity and the presence of provisions under a separate heading in the balance sheet. Subsidiaries Participating interests in subsidiaries are recognised in the Parent Company according to the cost method. This means that transaction expenditure is included in the carrying amount of holdings in subsidiaries. In the consolidated financial statements, transaction expenditure attributable to subsidiaries is directly recognised in net profit when it arises. Financial instruments and hedge accounting Given the relationship between accounting and taxation, the rules on financial instruments and hedge accounting in IAS 39 are not applied in the Parent Company as a legal entity. In the Parent Company, financial non-current assets are measured at cost less any impairment and financial current assets according to lower of cost or market. The acquisition cost of interest-bearing instruments is adjusted for the accrued difference between what was originally paid, less transaction expenses, and the amount paid on the due date (premium or discount). Anticipated dividends Anticipated dividends from subsidiaries are recognised in those cases where the Parent Company alone has the right to decide on the size of the dividend and the Parent Company has decided on the size of the dividend before the Parent Company has published its financial statements. Group contributions and shareholder contributions Group contributions and shareholder contributions are recognised in accordance with opinions in Swedish Financial Reporting Board. RFR2. Shareholder contributions are recognised directly in equity at the recipient and activated in shares and participations at the issuer, in so far as impairment is not required. Group contributions are recognised according to economic substance. This means, for example, that Group contribu- Global Gaming 555 AB

30 tions made or received for the purpose of minimising the Group's total tax are recognised in the income statement, as is the tax effect. Division into restricted and unrestricted equity In the Parent Company balance sheet, equity is divided into restricted and unrestricted equity in accordance with the Annual Accounts Act. Untaxed reserves and appropriations Because of the relationship between accounting and taxation, the deferred liability on untaxed reserve is recognised in the Parent Company as part of untaxed reserves. 30 Global Gaming 555 AB

31 Note 2 - Key estimates and assessments Key sources of estimation uncertainty The sources of uncertainties in estimates stated below relate to those posing a significant risk that the value of assets or liabilities may need to be adjusted to a material degree over the coming financial year. Impairment testing of goodwill and brands In calculating the recoverable amount of cash-generating units for assessment of any impairment loss on goodwill and brands, several assumptions have been made on future circumstances and estimates of parameters. These are presented in Note 7. As explained in the description in Note 7, changes beyond what can be reasonably expected in 2017 from the basis of these assumptions and estimates might have a material impact on the value of goodwill and brands. Note 3 - Breakdown of revenue KSEK Group Net sales: Own gaming operations 401,280 53,481 Own brands on platforms of others 37,752 34,903 B2B 18,797 8,481 Other Parent Company Net sales: 458,042 97,025 Consultancy and management 9,777 5,069 Licence revenue technical platform 44,887 9,204 Other ,848 14,291 Note 4 - Auditor's fees and reimbursement of expenses KSEK Group KPMG Audit engagements 1, Other engagements Parent Company KPMG Audit engagements Other engagements Audit engagements means statutory audit of the annual accounts and consolidated financial statements and records and administration by the Board of Directors and Chief Executive Officer and auditing and other examination carried out in accordance with agreement or contract. This includes other duties it is incumbent on the the company s auditor to carry out and advice or other assistance that is necessitated by findings in such an examination or the fulfilment of such other duties. Note 5 - Operating leases Leases where the company is the lessee Non-cancellable lease payments total: KSEK Group Less than one year 2, Between one and five years 2,527 1,676 Longer than 5 years - Parent Company 4,946 2,479 Less than one year Between one and five years 735 1,346 Longer than 5 years - 1,346 1,885 Global Gaming 555 AB

32 Expensed payments for operating leases total: KSEK Group Minimum lease payments 1, Total lease expenses 1, Parent Company Minimum lease payments Total lease expenses Lease payments relate principally to hire of premises. Note 6 - Employees, employee expenses and remuneration of senior executives Employee benefits costs KSEK Group Salaries and other remuneration Social security expenses (of which pension expenses) 18,216 10,339 6,560 3,522 (870) (473) 24,776 13,861 Average number of employees Parent Company 2017 of which: men 2016 of which: men Sweden 17 89% 11 91% Total in Parent Company Subsidiaries 17 89% 11 91% Malta 3 100% -% Estonia 20 85% 9 89% Cyprus -% 3 67% Total in subsidiaries 23 87% 12 83% Group total 40 88% 23 87% Breakdown of senior management by gender Parent Company Proportion women Proportion women Board 25% 25% Other senior executives 0% 0% Group Board 25% 25% Other senior executives 0% 0% 32 Global Gaming 555 AB

33 Parent Company Salaries and other emoluments broken down between senior executives and other employees and social security expenses in the Parent Company. KSEK Salaries and other remuneration Senior executives (7 persons) 2017 Other employees Total 3,003 6,699 9,702 Parent Company total 3,003 6,699 9,702 Social security expenses 1,057 3,299 4,356 (of which pension expenses) (470) (870) (1,340) KSEK Wages, salaries and other remuneration Senior executives (6 persons) 2016 Other employees Total 1,889 4,067 5,956 Parent Company total 1,889 4,067 5,956 Social security contributions 814 1,684 2,498 (of which pension expense) (177) (296) (473) Salaries and other emoluments, pension expenses and pension obligations for senior executives in the Group. KSEK Group Senior executives (10 persons) Senior executives (7 persons) Salaries and other remuneration 5,157 2,747 Pension expenses Retirement benefit obligations - Global Gaming 555 AB

34 2017 KSEK Peter Eidensjö Basic salary/board fee Variable remuneration Other benefits Pension expense Remuneration from Parent Company Adriana Hamberg Remuneration from Parent Company Tobias Fagerlund Remuneration from Parent Company Ollipekka Vahvaselkä Remuneration from Parent Company Stefan Olsson Remuneration from Parent Company ,023 Total Other senior management (5 persons) Remuneration from Parent Company 1, ,972 Remuneration from subsidiaries 2,154 2,154 Total 5, ,627 Remuneration from Parent Company 2, ,473 Remuneration from subsidiaries 2,154 2, KSEK Peter Eidensjö from June 2016 Basic salary Board fee Variable remuneration Other benefits Pension expense Remuneration from Parent Company Adriana Hamberg from June 2016 Remuneration from Parent Company Tobias Fagerlund from June 2016 Remuneration from Parent Company Ollipekka Vahvaselä from June 2016 Remuneration from Parent Company Stefan Olsson Remuneration from Parent Company 1, ,166 Total Other senior executives (2 persons) Remuneration from Parent Company Remuneration from subsidiaries Total 2, ,924 Remuneration from Parent Company 1, ,066 Remuneration from subsidiaries Global Gaming 555 AB

35 Salaries and other remuneration to senior executives Bonuses No bonus was paid to the CEO, Board of Directors or senior executives in 2017 or Fees are paid to the members of the Board of Directors in accordance with a resolution of the Annual General Meeting. Severance pay When notice of termination is given by Global Gaming, the Chief Executive Officer is entitled to a period of notice equivalent to 12 months, as well as severance pay equivalent to 12 months' salary. When notice of termination is given by the Chief Executive Officer, the period of notice is six months. A mutual period of notice of two to six months applies to other senior executives. Pensions All Group pension expenses are defined-contribution. Incentive programmes 2016/ /2020 Number of options outstanding, opening 1,200,000 Number of options issued during the year 650,000 Number of options not sold, closing 150,000 Number of options outstanding, closing 1,200, ,000 Warrants have been issued by the company at market price. The price of warrants is calculated with application of the Black & Scholes method. According to the following parameters: 2016/ /2020 Weighted average share price Redemption price Expected volatility Life of option (years) 2 3 Risk-free interest -0.45% 0.00% Incentive programme 2016/2018 The period for subscribing is from 19 February 2018 to 2 March Incentive programme 2017/2020 The period for subscribing is from 1 August 2020 to 31 August Guidelines for remuneration of senior executives The Annual General Meeting held on 21 July 2017 resolved that the remuneration of senior executives would be subject to the following guidelines. Senior executives are understood to mean the senior management of the Group. Remuneration must be market-based and competitive in order to enable the company to attract and retain skilled individuals in senior executive roles. Remuneration is to consist of fixed pay, where appropriate variable remuneration, pension and other benefits such as a company car. Fixed basic pay Fixed pay for senior executives is reviewed annually. The breakdown between basic pay and, where Global Gaming 555 AB

36 applicable, variable remuneration is to be in proportion to the responsibilities and powers of the senior executive concerned Variable remuneration Variable remuneration may be up to a maximum of 100 percent of annual salary. The variable remuneration is based on the outcome of a number of quantitative parameters. Pension Normal retirement age is to be 65. Pension terms are to be commensurate with the market and based on defined contributions. Severance pay, etc. The period of notice should normally be six to twelve months if notice is given on the initiative of the company, and six months if such notice is given on the initiative of the senior executive. If notice is given by the company, it is to be possible for severance pay to be awarded in an amount equivalent to 12 months of salary. The Board has the right to depart from the guidelines if there are special grounds for doing so in individual cases. 36 Global Gaming 555 AB

37 Note 7. Intangible assets Group Acquired intangible assets KSEK Brands Goodwill Total Accumulated cost Opening balance ,659 27,390 75,049 Exchange differences for the year 2,253 1,295 3,548 Closing balance ,912 28,685 78,597 Opening balance ,912 28,685 78,597 Exchange differences for the year 1, ,275 Closing balance ,357 29,515 80,872 Carrying amounts At ,659 27,390 75,049 At ,912 28,685 78,597 At ,912 28,685 78,597 At ,357 29,515 80,872 Impairment testing for goodwill and brands with indeterminable useful life The Group s recognised goodwill and brands arise from the acquisition of LMA Gaming Ltd and Winlando Group OÜ in All these assets, which together have a carrying amount of SEK 80,872,000 (of which goodwill is SEK 29,515,000 and brands account for SEK 49,912,000), belong to a single cash-generating unit. As these assets are not amortised, an impairment test was done in conjunction with the annual accounts for 2017 through a recoverable amount being calculated based on their value in use. This impairment testing showed that the recoverable amount exceeded the carrying amount and that no impairment requirement for goodwill and brands with an interminable useful life is deemed to exist. Important variables and method of estimating values The recoverable amount was based on cash flow forecasts on the basis of actual results from the business in 2017, the 2017 budget adopted by the Board and an estimate for the years , for which average annual growth of 20 (20) percent was assumed. Cash flows for the years following 2022 were extrapolated at an annual growth rate of 2 (2) percent, corresponding to an assumed average future rate of inflation. The forecast cash flows were discounted by 16.5 (2) percent before tax. The effective tax rate was estimated at 22 (22) percent. The senior management's method for establishing the values included in each significant assumption is based on experience and market expectations. Global Gaming 555 AB has conducted a sensitivity analysis of the following variables used in impairment testing of goodwill: discount rate, volume of sales and growth rate. The sensitivity analysis indicates that there are good margins in the calculation. Global Gaming 555 AB

38 Note 8 - Property, plant and equipment Equipment, servers, hardware, etc. KSEK Group Parent Company Opening balance , Investments Sales and disposals - 2,449 - Closing balance Opening balance Investments 1,844 1,034 Sales and disposals Closing balance ,456 1,357 Depreciation Opening balance , Depreciation for the year Sales and disposals 1,930 Closing balance Opening balance Depreciation for the year Foreign exchange differences 2 - Divestments Closing balance Carrying amounts At At At At ,864 1,033 Note 9 - Other operating income and operating expenses KSEK Group Gain on exchange in operation 6,404 1,439 Losses on exchange in operation - 14,199-1,620 Losses on receivables/liabilities of an operational nature Profit from sale/disposal of non-current assets , Parent Company Gain on exchange in operation 2, Losses on exchange in operation - 2, Global Gaming 555 AB

39 Note 10 - Net financial items All interest income and interest expenses are attributable to items recognised at accrued cost. Group KSEK Interest income - 7 Finance income - 7 Other interest expenses -4-7 Finance expenses -4-7 Net financial items -4 Parent Company KSEK Profit/loss from participations in Group companies Dividend 39,375 15,416 Return of foreign tax - 3,001 Reversed impairment losses - 6,738 39,375 25,155 Parent Company KSEK Interest expenses and similar profit/loss items Interest expenses Global Gaming 555 AB

40 Note 11 Taxes Group KSEK Current tax expense (-)/tax income (+) Tax expense/tax income for the year -10, , Current tax expense (-)/tax income (+) Deferred tax pertaining to temporary differences Deferred tax income in tax value capitalised during the year in loss carry-forwards 1, Deferred tax expense due to utilisation of previously capitalised tax value in loss carry-forwards -5, Revaluation of previously capitalised tax value of loss carry-forwards Future tax expense on dividend from subsidiaries , Total recognised tax expense in the Group -13,650-1,448 Parent Company KSEK Current tax expense (-)/tax income (+) Tax expense/tax income for the year Current tax expense (-)/tax income (+) Deferred tax expense due to utilisation of previously capitalised tax value in loss carry-forwards -5, , Total recognised tax expense in Parent Company -5, Global Gaming 555 AB

41 Reconciliation of effective tax KSEK Profit before tax 121,965 11,756 Tax according to applicable tax rate for Parent Company 22.0% -26, % -2,586 Effect of different tax rates for foreign subsidiaries -3.5% 4, % 1,659 Expense not deductible for tax purposes 0.3% % -199 Income not subject to tax -7.4% 9, % 48 Future tax expense on dividend from subsidiaries -0.2% % -268 Increase in loss carry-forwards without corresponding capitalisation of deferred tax 0.0% % -102 Revaluation of deferred tax 0.0% Recognised effective tax 11.2% -13, % -1,448 Parent Company Parent Company KSEK Profit before tax 62,431 26,897 Tax according to applicable tax rate for Parent Company 22.0% -13, % -5,917 Expense not deductible for tax purposes 0.1% % -26 Income not subject to tax -13.9% 8, % 5,540 Increase in loss carry-forwards without corresponding capitalisation of deferred tax 0.0% % - Recognised effective tax 8.2% -5, % -403 Non-recognised accrued tax The subsidiary in Estonia has SEK 58.9m in retained earnings not yet taken up for taxation in the company or the Group. Taxation does not take place until a dividend is paid from the Estonian company. Carry-forward of unused tax losses for which deferred tax assets have not been recognised in the statement of financial position: KSEK Group Deficits for tax purposes Global Gaming 555 AB

42 Change in deferred tax in temporary differences and loss carry-forwards Group KSEK Balance at 1 Jan 2017 Recognised in profit for the year Recognised in other comprehensive Income Acquisition/ Disposal of business Balance at 31 Dec 2017 Property, plant and equipment Intangible assets Future tax expense on dividend Utilisation of loss carry-forwards - -3, ,929 Capitalisation of loss carry-forwards 9, ,887 8,835-3, ,262 KSEK Balance at 1 Jan 2016 Recognised in profit for the year Recognised in other comprehensive Income Acquisition/ Disposal of business operation Balance at 31 Dec 2016 Intangible assets Future tax expense on dividend Utilisation of loss carry-forwards Capitalisation of loss carry-forwards 10, ,260 9, ,835 Parent Company KSEK Balance at 1 Jan 2017 Recognised in income statement Recognised in other comprehensive Income Balance at 31 Dec 2017 Utilisation of loss carry-forwards - -5, ,113 Capitalisation of loss carry-forwards 9, ,666 9,666-5,113 4,553 KSEK Balanced 1 Jan 2016 Recognised in income statement Recognised in other comprehensive Income Balance at 31 Dec 2016 Utilisation of loss carry-forwards Capitalisation of loss carry-forwards 10, ,069 10, , Global Gaming 555 AB

43 Note 12 - Earnings per share Earnings per share to total operations Basic earnings per share Diluted earnings per share Diluted weighted average number of shares outstanding Basic weighted average number of shares during the year 38,896,678 38,677,500 Effect of options 659,314 Diluted weighted average number of shares during the year 39,555,992 38,677,500 Instruments which may have a dilution effect and changes after the balance-sheet date In 2017, the company had two outstanding warrant programmes with redemption prices of SEK 6 and SEK 25 per share. The warrant programme with a redemption price of SEK 6 now has a diluting effect. The warrant programme with a redemption price of SEK 25 did not have any diluting effect during the year. Note 13 - Business combinations No business combinations were carried out in 2016 and Note 14. Other receivables Group KSEK Other current receivables Payment providers 18,600 3,997 Other 2,811 1,212 21,411 5,209 Parent Company KSEK Other current receivables Foreign tax 3,114 3,026 Other 1, ,158 3,418 Global Gaming 555 AB

44 Note 15 Cash and cash equivalents Group KSEK The following sub-components are included in cash and cash equivalents: Cash and bank balances 153,993 14,474 Total according to report of financial position 153,993 14,474 Note 16 Equity Types of shares Thousands of shares Shares Issued at 1 January 38,678 38,678 Cash issue 1,000 - Issued at 31 December paid 39,678 38,678 The Group has also issued share options (see Note 6). The registered share capital at 31 December 2017 comprised 39,677,500 shares. Holders of shares are entitled to a dividend which is determined retrospectively, and the shareholding are entitled to vote at the Annual General Meeting, where each share carries one vote. Dividend The Board proposed the following dividend after the balance-sheet date. The dividend will be presented for adoption by the Annual General Meeting to be held on 16 May KSEK SEK 1.40 per share (SEK 0.15 per share) 57,229 5,802 57,229 5,802 Reserves for accumulated other comprehensive income KSEK Translation reserve Opening carrying amount ,281 Exchange differences for the year ,310 Closing carrying amount ,029 Exchange differences for the year ,167 Closing carrying amount ,196 Translation reserve The translation reserve includes all exchange-rate differences that arise when translating financial statements from foreign operations that have prepared their financial statements in a different currency than the currency in which the consolidated financial statements are presented. 44 Global Gaming 555 AB

45 Parent Company KSEK Revaluation reserve Opening carrying amount ,913 Closing carrying amount ,913 Decrease in revaluation reserve ,913 Closing carrying amount Restricted reserves Restricted reserves must not be reduced through distribution of profit. Revaluation reserve In revaluing property, plant and equipment or a financial asset, a revaluation amount is transferred to a revaluation reserve. Unrestricted equity Together with profit for the year, the following reserves comprise unrestricted equity, i.e. the amount available for distribution to shareholders. Share premium reserve When shares are issued at a premium, that is to say more has to be paid for the shares than the quotient value of the shares, an amount equivalent to the amount received in excess of the quotient value of the shares is transferred to the share premium reserve. Amounts transferred to the share premium reserve with effect from 2007 are included in unrestricted equity. Retained earnings Retained earnings is made up of retained earnings for the previous year and profit less dividend paid during the year. Note 17 - Other liabilities Group KSEK Other current liabilities Gamers accounts 1, Jackpot 3,915 1,767 Other 1,840 1,295 7,717 3,755 Parent Company KSEK Other current liabilities Other Global Gaming 555 AB

46 Note 18 - Assets pledged and contingent liabilities Group KSEK Pledged assets Deposits Contingent liabilities - - Parent Company KSEK Pledged assets Deposits Contingent liabilities - - Note 19 - Specifications for cash flow statement Cash and cash equivalents - Group KSEK The following sub-components are included in cash and cash equivalents: Cash and bank balances 153,993 14,474 Total assets as per balance sheet 153,993 14,474 Cash and cash equivalents - Parent Company KSEK The following sub-components are included in cash and cash equivalents: Cash and bank balances 117,911 3,923 Total assets as per balance sheet 117,911 3,923 Interest paid and dividend received KSEK Group Interest received 7 Interest paid -4-7 Parent Company Dividend received 39,375 15,416 Interest paid Global Gaming 555 AB

47 Adjustments for items not included in cash flow KSEK Group Depreciation Unrealised exchange-rate differences 1, Capital gain on sale of non-current assets , Parent Company Depreciation Reversal of previous impairment of non-current asset - -6,738 Unpaid dividend from subsidiaries - -6, ,284 Acquisition of subsidiaries and other business units - Group KSEK Acquired assets and liabilities Cash and cash equivalents Total assets Purchase price: Paid purchase price Less: Cash and cash equivalents in the acquired operation Impact on cash and cash equivalents Global Gaming 555 AB

48 Note 20 Group companies Parent Company's participations in Group companies KSEK Accumulated cost At 1 January 91,984 91,973 Purchases Closing balance 31 December 92,034 91,984 Accumulated revaluations At 1 January 40,913 40,913 Closing balance 31 December 40,913 40,913 Accumulated impairment losses At 1 January -80,248-86,986 Impairment loss reversed during the year 6,738 Closing balance 31 December -80,248-80,248 Carrying amount 52,699 52,649 Specification of the Parent Company's participations in Group companies KSEK Corp. ID no. Registered office 2017 Number shares Share % Carrying amount Elec Games Ltd C44158 Malta 30, % 45,000 -Elec Games N.V Curacao 100% LMA Gaming Ltd** HE Cyprus 20, % 200 -JMR Marketing Ltd** HE Cyprus 100% -Birket Media Ltd** HE Cyprus 100% Global Gaming Estonia OÜ* Estonia 2, % 7,438 Elec Games Holding Ltd C74732 Malta 1, % 11 Elec Games C1 Ltd. C74734 Malta 100% -SafeEnt Ltd C81929 Malta 100% Global Gaming 555 Incentive AB Sweden % Elec Games Ltd C44158 Malta 30, % 45,000 -Elec Games N.V Curacao 100% LMA Gaming Ltd** HE Cyprus 20, % 200 -JMR Marketing Ltd** HE Cyprus 100% -Birket Media Ltd** HE Cyprus 100% Global Gaming Estonia OÜ* Estonia 2, % 7,438 Elec Games Holding Ltd C74732 Malta 1, % 11 Elec Games C1 Ltd. C74734 Malta 100% *Winlando Group OÜ changed its name to Global Gaming Estonia OÜ in **Liquidation of LMA Gaming Ltd with the subsidiaries JMR Marketing Ltd and Birket Media Ltd has commenced. 52, Global Gaming 555 AB

49 Note 21 - Receivables from Group companies Parent Company KSEK At start of year 18,367 7,245 Additional 39,225 11,122 Closing balance 31 December 57,592 18,367 Note 22 - Prepaid expenses and accrued income Parent Company KSEK Rental and leasing Other 976-1, Note 23 - Accrued expenses and deferred income Parent Company KSEK Holiday pay incl. social security expenses 1,741 1,116 Other payroll expenses incl. social security expenses 241 Other ,782 1,641 Note 24 - Financial instruments and Financial risks and risk management Responsibility for the Group's financial transactions and risks is managed centrally by the Group financial function, which is located within the Parent Company. The overall objective of the financial function is to provide cost-effective funding and to minimise adverse effects on the Group's earnings due to market risks and currency risks. The Group is exposed in particular to liquidity risk, currency risk and credit risk. The exposure to interest-rate risk is very limited as the Group does not have any interest-bearing liabilities or interest-bearing assets. Liquidity risk The liquidity risk is the risk that the Group may encounter problems in fulfilling its obligations associated with financial liabilities. The objective is for the Group to be able to meet its financial commitments in both upturns and downturns without significant unpredictable expenses and without risking the Group's reputation. Global Gaming 555 AB

50 The table below shows the maturity structure for the Group's financial liabilities. Group 2017 Contractual payments of amounts of capital KSEK Nominal amounts Jan-Jun 2018 Jan-Dec 2018 After 2018 Non-interest-bearing liabilities Accounts payable 21,767 21,767 Other current liabilities 7,717 7,717 Accrued expenses 4,022 2,281 1,741 Total 33,506 31,765 1, Contractual payments of amounts of capital KSEK Nominal amounts Jan-Jun 2017 Jan-Dec 2017 After 2017 Non-interest-bearing liabilities Accounts payable 4,975 4,975 Other current liabilities 3,755 3,755 Accrued expenses 2,574 1,458 1,116 Total 11,304 10,188 1,116 Currency risk Transaction exposure Exposure to current risk arises in particular on translation of intra-group receivables and liabilities and on switching of currencies between accounts in Group companies. The consolidated statement of income includes net exchange-rate differences of SEK -7,795 thousand (-181 thousand). Global Gaming is in the process of centralising and in that way improving the efficiency of the account structure within the Group, which is expected to reduce exposure to currency risk in intra-group transactions. Translation exposure The translation exposure to currency risk arises on translation of the balance sheets and income statements of the foreign subsidiaries to SEK, which is the Parent Company's functional currency and the Group's presentation currency. Global Gaming does not at present hedge against exposure to translation risk. Sensitivity analysis The Group's currency exposure is complex, in particular due to the exchange-rate effects arising on switching between Group accounts during the course of the year. However, at the balance-sheet date of the Group s working capital in foreign currencies stood at EUR 4.9m. A strengthening of EUR in relation to SEK of 10% would have led to an improvement in Group pre-tax profit of SEK 4,836 thousand, calculated based on the net value of receivables and liabilities in EUR outstanding at the balance-sheet date. Credit risk The Group's credit risk consists in particular of receivables from financial counterparties providing payment solutions used by the Group's gaming sites. There is otherwise no material concentration of credit risk. There were no (no) material receivables at the balance-sheet date. 50 Global Gaming 555 AB

51 Fair value of financial assets or financial liabilities The carrying amounts of financial assets and financial liabilities are considered to be reasonable estimates of the fair value of each class of financial asset and financial liabilities. All accounts receivable and accounts payable are current, and their carrying amounts are therefore also deemed to be reasonable approximations of fair value. Carrying amount for financial assets and financial liabilities per classification category The table below shows the carrying amount for financial assets and financial liabilities per classification category in IAS 39. Group Loan and trade receivables KSEK Accounts receivable 8,314 5,913 Other current receivables 21,411 5,209 Cash and cash equivalents 153,993 14,474 Total financial assets 183,718 25,596 Financial liabilities valued at accrued cost KSEK Accounts payable 21,767 4,975 Other current liabilities 7,717 3,755 Accrued expenses 4,022 2,574 Total financial liabilities 33,506 11,304 Capital management The Group endeavours to retain a good financial position that contributes to maintaining the trust of lenders and the market and that constitutes a basis for continued development of the business operation. Note 25 - Related parties Relationships with related parties The Parent Company has a close relationship with its subsidiaries, see Note 20. Listing of related-party transactions Sale of goods/services to related KSEK Year parties Relationship with related party Purchase of goods/ services from related parties Other (e.g. interest, dividend) Receivables form related parties at 31 December Liabilities to related parties at 31 December Subsidiaries ,664 39,375 57,592 75,948 Subsidiaries ,272 15,415 18,367 Board of Directors and senior executives For information about the Board s ownership in the company, see pages 6-7. For the remuneration of members of the Board and senior executives, see Note 6. Global Gaming 555 AB

52 Loan from the Chairman of the Board Per Hildebrand, partner and Chairman of the Board until 20 May 2016, has regularly lent money to the company. The company has paid market-based interest on the loan. The interest expense for 2016 is SEK 4 thousand. The liability was settled in full on Note 26 - Appropriation of the company s profit or loss The Board s proposal for appropriation of profit The following amounts in SEK are available to the Annual General Meeting: Share premium reserve 119,379,500 Retained earnings -57,380,730 Net profit for the year 57,318,332 Total 119,317,102 The Board proposes that the profit and non-restricted reserves available be appropriated as follows Dividend 40,877,500 shares * SEK 0.14 per share 57,228,500 Carried forward to new account -57,290,898 of which to share premium reserve 119,379,500 Total 119,317,102 Note 27 Information on the Parent Company Global Gaming 555 AB ( the Parent Company or the Company ), with corporate identity number , is a Swedish public limited liability company, with registered office in Stockholm. The company's head office is located at Hästvägen 4E, Malmö. The consolidated financial statements cover the Company and its subsidiaries (together the Group ). Note 28 Events after the balance-sheet date Incentive programmes in the form of warrants from 2016 to senior executives have been utilised in full, and the number of shares has increased by 1.2 million to 40.9 million. Stefan Olsson will leave the position of CEO at his own request with effect from 30 April. The COO Joacim Möller has been appointed acting CEO from 1 May. 52 Global Gaming 555 AB

53 Declaration by the Board The Board of Directors and the Chief Executive Officer confirm that in preparing the annual accounts they have complied with generally accepted accounting practices in Sweden and that the consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) referred to in Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards. The annual accounts and the consolidated financial accounts give a true and fair view of the Parent Company's and Group s financial position and results of operations. The administration report for the Group and Parent Company provides a true and fair overview of the development of the Group s and Parent Company s business activities, financial position and results of operations as well as the significant risks and uncertainties to which the Parent Company and its subsidiaries are exposed. The annual accounts and consolidated accounts, as indicated above, were approved for issue by the Board of Directors and the Chief Executive Officer on 25 April The consolidated statement of income and other comprehensive income and the Parent Company income statement and balance sheet will be presented for adoption by the Annual General Meeting on 16 May Stockholm, 25 April 2018 Peter Eidensjö Chairman of the Board Tobias Fagerlund Board Member Adriana Hamberg Board Member Ollipekka Vahvaselkä Board Member Stefan Olsson CEO Our audit report was submitted on 25 April 2018 KPMG AB Jonas Nihlberg Authorised Public Accountant Global Gaming 555 AB

54 Audit report To the Annual General Meeting of Global Gaming 555 AB, corporate identity number Report on the annual accounts and consolidated accounts Opinions We have audited the annual accounts and consolidated accounts of Global Gaming 555 AB for the year In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the parent company as of 31 December 2017 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2017 and its financial performance and cash flow for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. We therefore recommend that the annual meeting of shareholders adopts the income statement and balance sheet for the parent company and the Group. Basis for opinions We conducted our audit in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor s Responsibilities section. We are independent of the parent company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Other information than the annual accounts and consolidated accounts The Board of Directors and the Managing Director are responsible for this other information. The other information can be found on pages 1-9. Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information. In connection with our audit of the annual accounts and consolidated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information is otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act and, concerning the consolidated accounts, in accordance with IFRS as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts and consolidated accounts, the Board of Directors and the Managing Director are responsible for the assessment of the company s and the Group s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is, however, not applied if the Board of Directors and the Managing Director intend to liquidate the company, to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in 54 Global Gaming 555 AB

55 accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of the company s internal control relevant to our audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Managing Director. Conclude on the appropriateness of the Board of Directors and the Managing Director s use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company s and the group s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts and consolidated accounts. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause a company and a group to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated accounts. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our opinion. We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of significant audit findings during our audit, including any potential significant deficiencies in internal control that we identified. Report on other legal and regulatory requirements Opinions In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Managing Director of Global Gaming 555 AB for 2017 and the proposed appropriations of the company s profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year Basis for opinions We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Global Gaming 555 AB

56 Responsibilities of the Board of Directors and the Managing Director The Board of Directors is responsible for the proposal for appropriations of the company s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company s and the group s type of operations, size and risks place on the size of the Parent Company s and the Group s equity, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company s organisation and the administration of its company's affairs. This includes among other things continuous assessment of the company s and the group s financial situation and ensuring that the company's organisation is designed so that the accounting, management of assets and the company s financial affairs otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors guidelines and instructions and among other matters take measures that are necessary to fulfil the company s accounting in accordance with law and handle the management of assets in a reassuring manner. Auditor's responsibilities Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: the Companies Act. As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgement and maintain professional scepticism throughout the audit The examination of the administration and the proposed appropriations of the company s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgement based upon risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company s situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion on the Board of Directors proposed appropriations of the company s profit or loss, we examined the Board of Directors reasoned statement and a selection of supporting evidence in order to be able to assess whether the proposal is consistent with the Companies Act. Malmö, 25 April KPMG AB Jonas Nihlberg Authorised Public Accountant has undertaken any action or been guilty of any omission which can give rise to liability to the company, or in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. Our objective concerning the audit of the proposed appropriations of the company s profit or loss, and thereby our opinion about this, is to assess with a reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company s profit or loss are not in accordance with 56 Global Gaming 555 AB

57 Our brands Global Gaming 555 AB