Allwyn Ag · ATHEX:ALWN
Allwyn — Q3 2021 Earnings Presentation
30 slides from Allwyn's earnings presentation, Dec 15, 2021
Slide 1: Q3 2021 Results
Q3 2021 RESULTS 15 December 2021
Slide 2: Presenting today
Presenting today Robert Chvatal, CEO Kenneth Morton, CFO 2
Slide 3: Business and strategic update
Business and strategic update 3
Slide 4: Q3 2021 highlights
Q3 2021 highlights ▪ Record financial performance in first quarter of Consolidated GGR 2021 without COVID-related restrictions +14.0% - Highest Gross gaming revenue ever vs Q3’20 - Profitability at structurally higher levels €876m +87.6% vs Q3’19 ▪ Continuing to deliver on organic and inorganic Cons
Slide 5: SAZKA Entertainment re-brands to Allwyn
SAZKA Entertainment re-brands to Allwyn ▪ SAZKA Entertainment, the parent company of SAZKA Group, has rebranded to Allwyn ▪ The name was inspired by an Anglo-Saxon word that meant “wise friend” or “guardian” ▪ The Allwyn brand will Local brands support our long-term global growth ambitions ▪ Allwyn
Slide 6: COVID impact summary
COVID impact summary The first quarter in 2021 without material impact from COVID-related restrictions Q1 – Q2 2021 ▪ POS in the Czech Republic, Austria and Italy open and functional, no material impact from restrictions ▪ Substantial impact on physical retail operations in Greece and Cyprus as well
Slide 7: Strong financial performance continues
Strong financial performance continues Revenues and profitability significantly above pre-pandemic levels Consolidated financials Pro-rata basis NGR NGR 68.5% 46.7% 541 456 320 321 218 258 Q3'19 Q3'20 Q3'21 Q3'19 Q3'20 Q3'21 Adjusted EBITDA Adjusted EBITDA 44.5% 44.7% 52.7% 41.5% 46.3% 51.2% 99.4% 8
Slide 8: Strong online growth continues
Strong online growth continues Data drives growth through cross-sell and supports player protection ▪ Strong online momentum Austria GGR (excl. casinos and land-based sports betting) continued in Q3 2021, 35.0% including sales of lottery products through online 169 183 178 161 165 179 186 153 148 14
Slide 9: Loyalty programs drive retail de-anonymisation
Loyalty programs drive retail de-anonymisation Bringing the benefits of online to physical retail ▪ Through loyalty programs we A quarter of retail Numerical Lottery stakes in the Czech Republic is de-anonymised continue to de-anonymise our physical retail customer base 24% 21% - allows us to realiz
Slide 10: Product launches and innovation
Product launches and innovation We continue to expand and improve our product offering, UX and technology New and revitalised products New technology and UI ▪ We continue to successfully implement proven innovations NEW in-house across our geographies sports-betting NEW special platform at ▪ Leverag
Slide 11: Key strategic developments
Key strategic developments Continuing to deliver on our inorganic growth strategy UK National Lottery bid ▪ Submitted our bid to operate the fourth UK National Lottery concession in October ▪ Result expected to be announced in Q1 Further increase in OPAP shareholding ▪ Continued to increase our inte
Slide 12: Financial update
Financial update 12 SaZKa GROUP
Slide 13: Q3 2021 financial highlights
Q3 2021 financial highlights Strong performance exceeding pre-pandemic levels, driving strong de-leveraging ▪ Financial performance above pre-pandemic Consolidated levels in all segments ▪ Top-line growth and improved margins drive GGR +14.0% profitability vs Q3’20 €876m +87.6% ▪ Significant de-leve
Slide 14: Consolidated P&L
Consolidated P&L ▪ Both Q3 2020 and Q3 2021 largely unaffected by Covid-19 € millions Q3’21 Q2’21 ∆ Q2’21 Q3’20 ∆ Q3’20 restrictions GGR 876.2 740.1 18% 768.9 14% ▪ Strong GGR growth reflects NGR 541.0 449.1 20% 455.8 19% - Organic growth (primarily in the online channel) Revenue from non-gaming act
Slide 15: Quarterly segmental business highlights - Austria
Quarterly segmental business highlights - Austria Restructuring program drives profitability ▪ Lotteries and iGaming continued to perform well Gross Gaming Revenue, €m though somewhat impacted 2.0% by low jackpots 330 309 326 306 303 ▪ Casinos operated without 285 256 284 219 243 270 restrictions fo
Slide 16: Quarterly segmental business highlights - Czech Republic
Quarterly segmental business highlights - Czech Republic Strong GGR growth and profitability continues ▪ Another quarter of strong topline growth and profitability Gross Gaming Revenue, €m 29.1% ▪ Growth across all products and channels 96 101 97 96 86 77 71 75 67 67 ▪ Online +59% YOY 62 ▪ Retail +
Slide 17: Quarterly segmental business highlights - Greece and Cyprus
Quarterly segmental business highlights - Greece and Cyprus Bolt-on acquisition and structurally higher margin drive step change in performance ▪ Strong recovery after removal of COVID-related restrictions Gross Gaming Revenue, €m 20.3% ▪ Both GGR and EBITDA 470 445 significantly exceeded pre- 396 3
Slide 18: Quarterly segmental business highlights - Italy
Quarterly segmental business highlights - Italy Another strong quarter ▪ Revenue above pre-pandemic levels Revenue, €m ▪ Stable high profitability and 7.3% cashflow generation 129 134 124 134 124 120 113 107 115 103 55 Q1 Q2 Q3 Q4 2019 2020 2021 Adjusted EBITDA, €m 7.4% 105 108 113 99 101 98 Numeric
Slide 19: Pro-rata NGR development
Pro-rata NGR development Strong performance of COVID-impacted segments in quarter without material restrictions Segments with limited impact More impacted segments Combined performance from COVID NGR, €m NGR, €m NGR, €m 9.4% 350 350 350 10.1% 8.4% 300 300 300 250 250 250 200 200 200 150 150 150 100
Slide 20: Pro-rata net leverage
Pro-rata net leverage Net leverage close to 2.5x at the end of Q3 2021 As at 30 September 2021, pre IFRS 16 basis Czech Greece and € millions Austria Italy Corporate1 Total Republic Cyprus Consolidated LTM Adjusted EBITDA 153.1 96.4 412.1 412.5 (29.8) 1,044.3 Interests owned 59.70% 100.00% 39.56% 32
Slide 21: Key financing transactions
Key financing transactions ▪ In July 2021, SAZKA Group received a capital contribution of €75m from its parent ▪ Subsequently, SAZKA Group repaid €30m of RCF and made a €55m scheduled amortization payment on its bank loan ▪ €140m is available under the RCF as of 30 September 2021 ▪ In October, in su
Slide 22: Update on current trading
Update on current trading 22 SaZKa GROUP
Slide 23: Update on current trading
Update on current trading ▪ Limited COVID-related restrictions introduced in Austria and Greece after end of quarter - Measures and impact considerably more targeted and limited in scope than in previous waves ▪ Casinos in Austria were closed during 3-week general lockdown which ended on 13 December
Slide 24: Thank you!
Thank you! GROUP
Slide 25: Appendix
Appendix 25 SaZKa GROUP
Slide 26: Summary of adjustments to EBITDA
Summary of adjustments to EBITDA Standalone, 100% (€m) EBITDA adjustments breakdown Operating EBITDA 2019 2020 9M 20 9M 21 Austria 211 147 124 151 Austria adjustments 2019 2020 9M 20 9M 21 Czech Republic 95 84 66 81 Casino Linz insurance gain + -- (4) 1 (1) restructuring non-personal costs Greece an
Slide 27: Dividends and distributions
Dividends and distributions 2020 2021 Q1-Q3 € millions end of Sept Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 Austrian Lotteries 9.45% 77 100 61 177 61 CASAG 59.70% SDHH 79.23% 5 2 2 2 2 5 5 LOTTOITALIA 32.50% 150 64 23 176 47 47 214 269 OPAP 39.56% 320 100 187 420 187 SAZKA 100.00% 37 8 9 44 37 61 Net to SG ec
Slide 28: Capital structure overview
Capital structure overview € millions, Q3’21A (Pre-IFRS16) Amount X LTM Adj. EBITDA1 Pro-rata cash and cash equivalents (691.0) Pro-rata Subsidiary debt 501.8 Total Pro-rata net debt (189.2) (0.4x) €200m Revolving Credit Facility 60.0 Bank Term Loans 382.1 €200mm 4% Slovak Notes 199.2 CZK6bn 5.2% Cz
Slide 29: Alternative performance measures
Alternative performance measures This presentation includes non-IFRS performance measures, including, Net gaming revenue, Operating EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and pro rata financial information. Please refer to SAZKA Group’s press release and Management’s discussion and analysis
Slide 30: Disclaimer
Disclaimer This presentation was produced by SAZKA Group a.s. This presentation is not to be reproduced or distributed, in whole or in part, by any person other than SAZKA Group a.s. This presentation does not represent an offer, constitute or form part of, and should not be construed as an advertis