Slide 1: Jumbo Interactive Limited Results Presentation
JUMBO INTERACTIVE LIMITED RESULTS PRESENTATION For the financial year ended 30 June 2020 ABN 66 009 189 128
Slide 2: Contents
CONTENTS COVID-19 EFFECT 2 RESULTS HIGHLIGHTS 3 CERTAINTY TO 2030 6 SOFTWARE AS A SERVICE 7 INNOVATION AND DATA ANALYTICS 10 VISION AND STRATEGY 11 FINANCIAL PERFORMANCE AND POSITION 14 CASH FLOW AND DIVIDEND OVERVIEW 16 OUTLOOK 18 FY20 Results Presentation | 1
Slide 3: Covid-19 Effect
COVID-19 EFFECT PLAYERS SHIFTING ONLINE OFFLINE LOTTERIES SHIFTING ONLINE ▪ Pure digital business model ▪ Many lotteries worldwide have suffered during – No supply chain issues Covid-19 – No importation, warehouses, – Lotteries without an online sales channel have deliveries. seen declines in sales
Slide 4: Results Highlights
RESULTS HIGHLIGHTS GROWTH DURING COVID AND LOW JACKPOTS ▪ Pure digital and online business with no supply chain issues ▪ TTV up 8.7% pcp to $348.6 million (no importation, warehouses or physical deliveries) – 28% (23.5% pcp) of all lottery sales in Australia are ▪ Like for like sales demonstrate con
Slide 5: Results Highlights (Continued) - Lower Run of Large Jackpots
RESULTS HIGHLIGHTS (CONTINUED) LOWER RUN OF LARGE JACKPOTS ▪ 39 large jackpots (Oz Lotto/Powerball at or above $15 million) vs. 49 in pcp: – Average value per large jackpot - $40.1 million vs. $38.4 million ▪ 11 Jackpots at or above $50 million vs 14 in pcp: 49 45 Note: Numbers are cumulative FY20 R
Slide 6: Results Highlights (Continued) - Like for Like Growth
RESULTS HIGHLIGHTS (CONTINUED) LIKE FOR LIKE GROWTH ▪ CONSISTENT GROWTH AT ALL LEVELS – High Jackpots $80m Powerball – Low Jackpots <$15m – OzLotto $15m – Powerball $20m 49 45 FY20 Results Presentation | 5
Slide 7: Certainty to 2030 - Agreements with Tabcorp
CERTAINTY TO 2030 10 YEAR AGREEMENTS WITH TABCORP ▪ Extending 15 year relationship – Binding Term Sheet signed 28 June 2020. – Long Term Reseller Agreements signed 25 Aug 2020. – Certainty provides ability to continue growing sales in Australia over the long term. – 28% of tickets sold online in Aus
Slide 8: Software as a Service (SaaS) "Powered by Jumbo"
SOFTWARE AS A SERVICE (SaaS) “POWERED BY JUMBO” ▪ Mater Lotteries – Agreement signed November 2018. ▪ 50% of TTV from current contracts operationalised ▪ Endeavour Foundation – Mater Lotteries 100% operational in July 2020 – Agreement signed August 2019 (5+5 year SaaS agreement) – Endeavour partiall
Slide 9: Software as a Service (SaaS) "Powered by Jumbo"
SOFTWARE AS A SERVICE (SaaS) “POWERED BY JUMBO” ▪ Large Global Lottery Market – US$303 billion Global Lottery Market1 – Less than 10% is online – “Powered by Jumbo” is a complete solution for lotteries seeking to move online ▪ A$26 billion TAM – Total Addressable Market – Australia Charity Lotteries
Slide 10: Software as a Service (SaaS) Gatherwell UK
SOFTWARE AS A SERVICE (SaaS) GATHERWELL UK LARGEST EXTERNAL LOTTERY MANAGER TO LOCAL AUTHORITIES AND SCHOOLS IN THE UK ▪ Acquired 29 Nov 2019 – 1,300 of 32,770 Schools (4%) – 67 of 408 Principal Councils (16%) – New Onelottery.co.uk opening up new markets. – $1.6bil TAM – TTV up 32% to $12.6m on a 1
Slide 11: Innovation and Advanced Data Analytics
INNOVATION AND ADVANCED DATA ANALYTICS CUSTOMER ENGAGEMENT AND LOYALTY DRIVEN BY INNOVATION ▪ Further innovations to enhance engagement and loyalty ▪ Lotto Party – Improved data analytics leading to improvements in – Friends play socially as a group cohort analysis and customer understanding. – Coll
Slide 12: Vision & Strategy - The $1 Billion Vision
VISION & STRATEGY THE $1 BILLION VISION ‘$1 Billion in ticket sales on the Jumbo platform by FY22’ ▪ Half way there ▪ $340 million ticket sales on OzLotteries.com FY20 ▪ $140 million total value for 5 SaaS contracts CAN WE GET TO $1 BILLION IN TICKET SALES? ▪ Aiming to grow OzLotteries.com ticket sa
Slide 13: Vision & Strategy (Continued) - Nuts and Bolts
VISION & STRATEGY (CONTINUED) NUTS AND BOLTS HOW WILL WE GET TO $1 BILLION IN TICKET SALES? ▪ Best of breed Software Platform – Jumbo’s own metrics prove the platform’s effectiveness – Ongoing software development – Continue to improve customer engagement KPI’s – Continue to maintain ‘Powered by Jum
Slide 14: Vision & Strategy (Continued) - First to Market with Online Innovations
VISION & STRATEGY (CONTINUED) STRATEGY - FIRST TO MARKET WITH ONLINEINNOVATIONS ▪ Lotto Party - Online lotterysyndication: – First online lottery operator to offer syndication inAustralia – Group play as a percentage of total TTV has increased to 10% – Combats jackpot fatigue – Drives growth through
Slide 15: Financial Performance
FINANCIAL PERFORMANCE FY20 FY19 Change $’000 $’000 % Total Transaction Value 348,601 320,659 8.7% KEY ITEMS: Revenue from continuing operations 71,168 65,212 9.1% Cost of sales (5,326) (5,068) 5.1% ▪ TTV up 8.7% and Revenue up 9.1% on increased customer activity and Gatherwell Gross Profit 65,842 60
Slide 16: Financial Position
FINANCIAL POSITION at 30 Jun at 30 Jun Change KEY ITEMS: 2020 2019 $’000 $’000 % CASH ▪ Strong cash position of $72.3 million ASSETS 109,528 101,662 7.7% – General funds down 17.0% from $73.8 million Current Assets 76,008 85,536 (11.1%) to $61.3 million with funding of $8.8 million Intangible Assets
Slide 17: Cash Flow
CASH FLOW at 30 Jun at 30 Jun Change 2020 2019 $’000 $’000 % CASH FLOWS FROM OPERATING ACTIVITIES KEY ITEMS: Receipts from customers 76,690 71,556 7.2% Payments to suppliers & employees (37,632) (22,800) (65.1%) ▪ Strong cash position of $72.3 million ($61.3 million general funds) Net income tax pai
Slide 18: Dividend Overview
DIVIDEND OVERVIEW EXCEPTIONAL SHAREHOLDER RETURN FROM A GROWTH COMPANY ▪ Final fully franked dividend: – 17.0 cents per share – Record date 9 September 2020 – Payment date 30 September 2020 FY20 Results Presentation | 17
Slide 19: Outlook
OUTLOOK The business is well placed for the future: ▪ Certainty to 2030: – Extended Reseller Agreements with Tabcorp to 2030 – Increasing digital penetration – 28% FY2020 – Continuing marketing strategy to attract new customers and improve customer engagement through improved Data Analytics – Contin
Slide 20: Disclaimer
DISCLAIMER This presentation contains summary information about the current All dollar values are in Australian dollars (A$) unless otherwise activities of Jumbo Interactive Limited (Jumbo). It should be read in stated. Neither Jumbo nor any other person warrants or guarantees conjunction with Jumbo
Slide 21: FY19 Results Presentation | 18
FY19 Results Presentation | 18