Fdj United · EURONEXT:FDJU
Fdj United — FY2023 Earnings Presentation
30 slides from Fdj United's earnings presentation, Feb 15, 2024
Slide 1: 2023 Results presentation
2023 Results presentation 15 February 2024 15 février 2024 FY 2023 Results | 15 February 2024
Slide 2: Disclaimer
Disclaimer This document may contain certain forward-looking statements which are based on estimations and forecasts available at the time this presentation was prepared. By their nature, these forward-looking statements are subject to important business, economic and competitive risks and uncertain
Slide 3: Continued development of FDJ on a solid basis
Continued development of FDJ on a solid basis Stéphane Pallez Stéphane Pallez FY 2023 Results | 15 February 2024
Slide 4: Good momentum in 2023
Good momentum in 2023 Continuation of the Group's growth trajectory Revenue €2,621m (+6.5%) Good performance across all activities Recurring EBITDA*: €657m (+11%) Further improvement in recurring EBITDA margin Margin: 25.1% Strong increase in dividend Dividend**: €1.78 per share (+30%) Payout ratio:
Slide 5: Responsible growth based on recreational games and an extensive model
Responsible growth based on recreational games and an extensive model A portfolio of recreational games 27m players Launch of EuroDreams - New Amigo formula A responsible gaming practice, within a large number of players Online Lottery:<2% of GGR generated by high-risk players >10% of Group advertis
Slide 6: Responsible growth with extra-financial performance maintained at the highest level
Responsible growth with extra-financial performance maintained at the highest level Rating Responsible gaming Equality CSR valuation 72/100 100% #1 in the Hotels, Leisure and Services sector* Certification Gold maintained 100/100 at 71/100 « Pénicaud » Index 55/100 CDP B (management level) 16,8 (low
Slide 7: Responsible growth benefiting all stakeholders
Responsible growth benefiting all stakeholders Important economic and societal €6.6bn equates to 0.25% of contribution French GDP Jobs created or maintained 56,000 of which 21,800 in local retail trade Public finances €4.3bn Retailers €983m French suppliers €648m Employees €369m Shareholders €340m*
Slide 8: Good momentum in 2023: solid lottery fundamentals
Good momentum in 2023: solid lottery fundamentals Revenue: +1.1% at €1.9bn Number of Euromillions > €75m draws +4.9% excluding Euromillions and Amigo Instant games revenue +5.2% Successful games portfolio events Draw games revenue -4.3% Drop (-47%) in the numbers of high jackpot draws Still strong a
Slide 9: Good momentum in 2023: presence in all segments of sports betting and online gaming
Good momentum in 2023: presence in all segments of sports betting and online gaming open to competition Revenue: +10,9% at €0.5bn +8.4% excluding ZEturf H1: benefits of Football World Cup and a more favourable football calendar Strengthening the offer’s attractiveness Continued gains in online sport
Slide 10: Good momentum in 2023: growth on all our distribution channels
Good momentum in 2023: growth on all our distribution channels Point of Sale: NGR +2% Solid and resilient network >29,000 PoS Online: NGR +19% c.13% of total NGR Sports betting and online gaming open to competition EuroDreams online stakes >30% +65% including ZEturf Continued market share gains for
Slide 11: Good momentum in 2023: development of other activities
Good momentum in 2023: development of other activities Payment & Services Continued success of the DGFiP’s offer 2.8m of transactions: +22% : extension of the bill payment solution to private creditors (such as social landlords or motorway tolls) Premier Lotteries Ireland Acquisition completed on No
Slide 12: 2024: Continuing the momentum
2024: Continuing the momentum Revenue up by c.+5% in lottery and sports betting and online gaming open to competition in France With the contribution of other activities (International, Payment & Services), the Group’s revenue growth should be c.+8% Recurring EBITDA margin c.24.5% FY 2023 Results |
Slide 13: 2024: Continuing the momentum
2024: Continuing the momentum Sports betting & online Lottery gaming open to competition Full-year effect of EuroDreams A large number of sporting events Continued impact of the new Amigo Dedicated responsible gaming action plan for UEFA formula until early June EURO 2024 Activating the Olympic and
Slide 14: Tender offer for Kindred
Tender offer for Kindred Stéphane Pallez Stéphane Pallez FY 2023 Results | 15 February 2024
Slide 15: A tender offer fully in line with FDJ's strategy
A tender offer fully in line with FDJ's strategy, unanimously recommended by Kindred's Board of Directors FDJ is committed to becoming a FDJ recently acquired PLI (Irish Lottery) and leading operator in Lottery and Online ZEturf (competitive Online Betting & Betting & Gaming, with an expanding Gamin
Slide 16: FDJ + Kindred = a European champion with a diversified profile
FDJ + Kindred = a European champion with a diversified profile and enhanced performance Creation of a European gaming champion with Combined 2023 Gross Gaming Revenues1: ~€8bn increased scale, technology capabilities and greater % of International GGR: 20% % of Online GGR: 29% diversification Consis
Slide 17: Tender offer key highlights
Tender offer key highlights Unanimous recommendation from Kindred’s Board of Directors Transaction Irrevocable commitment by existing shareholders representing 27.9% of Kindred’s share capital1 Following strategic review initiated on April 26th, 2023 Offer price of SEK 130, representing a premium of
Slide 18: Key milestones of the tender offer
Key milestones of the tender offer January 22nd: Offer announcement February 16th: Kindred’s AGM (another AGM may be called for March 15th) Kindred's Articles of Association amended to authorize the squeeze-out procedure from 90% of the capital held Execution Timeline February 19th: filing of the of
Slide 19: 2023 Results presentation
2023 Results presentation Stéphane Pallez Pascal Chaffard FY 2023 Results | 15 February 2024
Slide 20: Very good financial performance in 2023
Very good financial performance in 2023 Revenue Recurring EBITDA* Net profit Free cash-flow*** €2,621m €657m €425m +7% +11% €586m +38% +8% Margin 25.1%** Recurring EBITDA to free cash-flow conversion 89% Net cash surplus €671m * Recurring EBITDA: recurring operating profit adjusted for depreciation
Slide 21: Revenue growth of +7%
Revenue growth of +7% In €m Revenue by activity +6.5% 2,621 2,461 +112.6%* 165 78 467 +10.9% 518 +1.1% 1916 1938 2022 2023 Lottery Sport betting and online gaming open to competition Other activities FY 2023 Results | 15 February 2024 21 * +26.5% versus 2022 restated to include Aleda and L'Addition
Slide 22: Recurring EBITDA up +11%
Recurring EBITDA up + 11% In €m 2,621 983 Advertising: -6.6% Offer development: +4.6% 374 PoS 402 Commissions Other costs of sale 205 657 Costs of sales Marketing & G&A Margin Margin communication 25.1% 24.3% Revenue Recurring Margin rate 2023, EBITDA excluding 2023 non-replicable 2023 year-end item
Slide 23: Breakdown of recurring EBITDA margin by activity
Breakdown of recurring EBITDA margin by activity In €m +35 +36 -18 +14 657 590 Contribution Holding Contribution margin Contribution margin Other activities margin Sports betting & Lottery online gaming open to competition Margin Margin 25.1% 24.0% 24.3% Excluding non-replicable year-end items Recur
Slide 24: Lottery: contribution margin up to 37.3% (+30 bp)
Lottery: contribution margin up to 37.3% (+30 bp) In €m In €m Costs structure +0.6% 1,215 +21 -13 1,207 +5 723 709 Costs of Marketing sales & communication Revenue 781 PoS Commissions 777 +1.1% +0.6% +0.5% Margin Margin 37.0% 37.3% +3.3% 265 Other costs of sales 256 Contribution Contribution Marketi
Slide 25: Sports betting and online gaming open to competition: contribution margin of 29.6%
Sports betting and online gaming open to competition: contribution margin of 29.6% In €m In €m Costs structure +51 -4 -11 153 350 +4.3% 365 Costs of Marketing 117 sales & communication +4.3% Revenue 182 PoS Commissions 184 -1.1% +10.9% Margin Margin 56 Other costs of sales 50 +11.7% 25.1% 29.6% Mark
Slide 26: 2023 recurring EBITDA split
2023 recurring EBITDA split In €m 153 15 -235 723 Other activities 657 Sports betting and online gaming open Holding to competition Lottery Recurring EBITDA Contribution margin FY 2023 Results | 15 February 2024 26 RESTREINT
Slide 27: From recurring EBITDA to net profit
From recurring EBITDA to net profit In €m 657 -125 +43 -11 +2 -141 Non-controlling D&A Non-recurring Financial interests items result 425 Taxes +€71m€ vs 2022 financial result Recurring EBITDA 2023 Net profit 2023 vs 2022 +11.3% +38.1% FY 2023 Results | 15 February 2024 27 RESTREINT
Slide 28: 89% recurring EBITDA to free cash-flow conversion
89% recurring EBITDA to free cash-flow conversion In €m In €m From recurring EBITDA to free cash-flow CAPEX** 125 +54 -125 657 30 Other 586 104 Net change in 14 PoS working CAPEX** 17 capital* 15 Conversion rate 89% IT 81 72 Recurring Free cash-flow 2023 2022 2023 EBITDA 2023 * Adjusted for calendar
Slide 29: Available cash of €855m
Available cash of €855m In €m +281 -466 +387 -70 855 Euromillions Invest. 671 fund securities 539 Gross financial Term deposits debt* Cash and equiv. Available cash Net cash surplus * Including derivatives FY 2023 Results | 15 February 2024 29 RESTREINT
Slide 30: 2023 Results presentation
2023 Results presentation 15 February 2024 15 février 2024 FY 2023 Results | 15 February 2024