Allwyn Ag · ATHEX:ALWN
Allwyn — SAZKA Group a.s. — Q3 2020 Earnings Presentation
23 slides from Allwyn's earnings presentation, Dec 14, 2020
Slide 1: Q3 2020 Results
Q3 2020 RESULTS 14 December 2020
Slide 2: Robert Chvatal, CEO; Kenneth Morton, CFO
Robert Chvatal, CEO Kenneth Morton, CFO 2
Slide 3: Business and Strategic Update
Business and Strategic Update 3
Slide 4: Q3 2020 highlights
Q3 2020 highlights € millions Q3 2020 Q3 2019 ∆ ▪ Solid operational performance Amounts staked 2,613.7 1,319.3 98% - COVID-impacted land-based channels recovered well as restrictions eased GGR 768.9 463.0 66% - Strong performance of less impacted land-based channels, online and Digital- NGR 455.9 31
Slide 5: 9M 2020 highlights
9M 2020 highlights € millions 9M 2020 9M 2019 ∆ ▪ Solid YTD performance – resilient in H1, boosted by Q3 Amounts staked1 4,455.8 3,907.6 14% ▪ EBITDA margin remains at over 40% GGR 1,420.8 1,371.5 4% YTD ▪ Stable LTM leverage since the half year NGR 884.6 942.3 -6% Operating EBITDA 363.6 429.6 -15%
Slide 6: Q3 business highlights
Q3 business highlights Operating EBITDA by entity (€ millions) SAZKA a.s.: ▪ GGR + 5%, NGR -11% due to increase in lottery tax 25.8 from 23% to 35% from 1 January 2020 19.6 ▪ Operating EBITDA -24% YOY due to lottery tax increase -24% and increased marketing spend on major campaign Q3 19 Q3 20 OPAP1:
Slide 7: COVID – impact summary
COVID – impact summary Q3 ▪ With restrictions that had impacted land-based businesses in Greece and Italy and casinos eased by the summer, land-based sales recovered well ▪ Online sales remained at structurally higher levels Subsequent ▪ Since late October/early November, new restrictions in all geo
Slide 8: COVID impact summary – H1 vs. current
COVID impact summary – H1 vs. current Q1-2 Current ✓ More selective approach by region Government restrictions ▪ Full lock-downs, extensive restrictions ✓ Focus on supporting economy ✓ More used to “new normal” environment Consumer behaviour ▪ Significant risk aversion ✓ Shift to online across demog
Slide 9: Digital-only and online momentum
Digital-only and online momentum ▪ Strong growth in revenues from Digital-only Games and sales of other products through online channels has been sustained ▪ Supported by - Successful cross-selling, leveraging brands, traffic to websites and apps from lottery players, increasingly granular knowledge
Slide 10: Key strategic developments
Key strategic developments Q3 ▪ In July, CASAG approved a plan to restructure the casino business in Austria - Expected to generate cost savings of ~€45 million per year with run-rate achieved by 2022 - Implementation already underway ▪ In July, OPAP acquired a 51% stake in Stoiximan Group’s Greek a
Slide 11: Apollo investment
Apollo investment ▪ Strategic investment by Apollo funds to support Sazka Group’s global expansion in the lottery and gaming sectors ▪ Apollo is one of the world’s leading investors in gaming and largest alternative investment managers ▪ Effected through an investment into SAZKA Entertainment AG, a
Slide 12: Financial Update
12 Financial Update GROUP
Slide 13: Consolidated profit and loss
Consolidated profit and loss ▪ Major driver of changes in € millions Q3 2020 Q3 2019 ∆ 9M 2020 9M 2019 ∆ consolidated results is consolidation of CASAG in Q3 Amounts staked 2,613.7 1,319.3 98% 4,455.8 3,907.6 14% GGR 768.9 463.0 66% 1,420.8 1,371.5 4% - Growth in stakes and GGR driven by CASAG conso
Slide 14: Consolidated profit and loss (excluding CASAG)
Consolidated profit and loss (excluding CASAG) Excluding CASAG ▪ Numbers presented excluding CASAG (consolidated from Q3 and as equity investee previously) € millions Q3 2020 Q3 2019 ∆ 9M 2020 9M 2019 ∆ GGR 465.9 463.0 1% 1,117.8 1,371.5 -18% ▪ 9M GGR -18% with Q3 showing recovery at +1% NGR 307.8 3
Slide 15: OPAP GGR contribution
OPAP GGR contribution ▪ OPAP paying cash GGR contribution on Lottery and Betting concession revenues at 5% of GGR since mid- October ▪ The Lottery and Betting Concessions include lottery and keno games and sports betting, but do not include VLTs, scratchcards, or horse racing - ~70% of OPAP’s GGR ▪
Slide 16: LTM pro-rata data
LTM pro-rata data As at 30 September 2020, pre IFRS 16 basis Equity SAZKA Holding € millions OPAP1 CASAG method Total a.s. level3 investees2 Pro-rata LTM Adjusted EBITDA1 87.0 105.1 81.8 116.8 (11.2) 379.5 Gross debt (100%) 223.4 1,101.7 184.2 - 1,117.7 2,627.0 Cash and equivalents and ST (48.4) (55
Slide 17: Key financing transactions – Q3
Key financing transactions – Q3 Financing ▪ No material financing transactions in Q3 Dividends and distributions ▪ In July, the Group received a €21 million dividend from LOTTOITALIA ▪ In August, OPAP paid a dividend of €0.30 per share. Shareholders had the option of receiving cash or shares under O
Slide 18: Key financing transactions - subsequent
Key financing transactions - subsequent Financing ▪ In October, OPAP issued a €200 million retail bond - 7NC2, 2.1% yield ▪ In October 2020, SAZKA Group signed a €100 million bank loan - 1 year maturity, 3.0% margin Other ▪ In November, SAZKA Group paid a €110 million dividend ▪ As a result of open
Slide 19: Thank you!
Thank you! GROUP
Slide 20: Appendix
20 Appendix GROUP
Slide 21: Q3 2020 consolidated profit and loss
Q3 2020 consolidated profit and loss € millions Q3 2020 Q2 2020 Q3 2019 Q3/Q3 Q3/Q2 Amounts staked 2,613.7 706.8 1,319.3 98% 270% GGR 768.9 246.6 463.0 66% 212% NGR 455.9 161.9 317.1 44% 182% Operating EBITDA 196.6 42.6 143.0 37% 361% Operating EBITDA margin 43.1% 26.3% 45.1% 64% 64% 21
Slide 22: Alternative performance measures
Alternative performance measures This presentation includes non-IFRS performance measures, including amounts staked, Operating EBITDA, Adjusted EBITDA, Operating EBITDA margin and pro rata financial information. Please refer to SAZKA Group’s press release dated the same date as this presentation for
Slide 23: 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