Fdj United · EURONEXT:FDJU
Fdj United — Investor Presentation (June 2023)
23 slides from Fdj United's investor presentation, June 2023
Slide 1: Investor Presentation June 2023
Investor Presentation June 2023
Slide 2: Disclaimer
Disclaimer This document may contain certain forward-looking statements which are based on estimations and forecasts. By their nature, these forward-looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict, in particular those described
Slide 3: Financial & extra-financial performance
Financial & extra-financial performance
Slide 4: France's leading gaming operator – 2nd largest lottery in Europe
France’s leading gaming operator – 2nd largest lottery in Europe Activity Key figures 2022 % of stakes: €20,6bn ◆ % of contribution margin: ◆ ~56% GGR market share in France ◆ €826m ◆ Lottery and offline Sports betting under 21% 14% exclusive rights (2044) 48% ◆ Online Sports betting under licence 3
Slide 5: A successful journey since the IPO leading to a stronger FDJ
A successful journey since the IPO leading to a stronger FDJ New fiscal and regulatory framework Successful lottery digitalisation Remarkable 30,000 PoS Pursuit of sports betting ~30% online lottery network performance momentum stakes 2019-2022 CAGR Entry in new online market Acceleration of diversi
Slide 6: A successful journey since the IPO: operational and financial performance
A successful journey since the IPO leading to a stronger FDJ High level operational and financial performance … x2 Revenue (in €m) EBITDA (in €m) & EBITDA margin (in %) Group digital penetration 2022 vs. 2019 20.6% 22.2% 23.1% 24.0% 2,461 590 2,256 12% 2,048 522 1,920 422 427 6% 2019 2022 2019 2020
Slide 7: A successful journey since the IPO: extra-financial performance
A successful journey since the IPO leading to a stronger FDJ … combined with best-in-class extra-financial performance … Important economic and social Strengthened societal contribution* commitments €6.5bn contribution to French GDP €25m FDJ Foundation (2023-2027) 55,300 jobs created or maintained €
Slide 8: Important economic and societal contribution benefiting all stakeholders
Important economic and societal contribution benefiting all stakeholders Important economic and societal €6.5bn i.e. 0.25% of GDP contribution Jobs created or maintained 55,300 of which 22,000 in local retail trade Public finances €4.4bn Retailers €965m French suppliers €684m Employees €327m Shareho
Slide 9: Various levers to maintain sustainable and profitable growth
Various levers to maintain sustainable and profitable growth Capitalise on an extensive player base Reinforce Lottery’s responsible growth levers Maintain PoS sports betting momentum and develop a comprehensive online offering Amplify Payment & Services business and international footprint 9
Slide 10: Capital allocation strategy
Capital allocation strategy High shareholder return Cautious cash management Pay-out ratio between 80% & 90% Limited working capital needs Stockholder equity optimised Financial structure Distributable reserve optimised Leverage up to ~2x net financial debt / (AGM 2021) EBITDA 10
Slide 11: External growth strategy
External growth strategy LOTTERY: SPORTS BETTING manage operations AND ONLINE GAMING: DIVERSIFICATION internationally operate in Europe Acquisitions, tenders, Acquisitions, licenses Bolt-on acquisitions licenses B2C operations mainly International operations Accelerate strategy in Europe Capabilitie
Slide 12: Guidance and ambitions
Guidance and ambitions
Slide 13: Q1 2023: highlights
Q1 2023: highlights Q1 2023 revenue up 5%* to €662m based on stakes up 9% to €5,495m POS: strong growth in stakes (+7%), thanks to good traffic level and attractiveness of FDJ’s games offering Online: solid underlying performance with stakes reaching €698m (+21%), representing c.13% of total stakes
Slide 14: Q1 Revenue: €662m; +5.3% proforma basis / +8.0% reported basis
Q1 Revenue: €662m; +5.3% proforma basis / +8.0% reported basis 662 613 497 467 +6.4% +0.2% 129 129 18 37 Q1 2022 Q1 2023 Lottery Sports betting & online gaming open to competition Adjacent activities 14
Slide 15: Solid underlying performance online
Solid underlying performance online (In €m) +21% 702 698 643 618 600 570 575 508 477 12.7% FY 2022: 12.2% Digital penetration FY 2021: 11.4% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 15
Slide 16: 2023 guidance
2023 guidance REVENUE +4% - +5% Revenue integrating Aleda and L’Addition on a full-year basis in 2022* ONLINE STAKES c.+20%** 2023 vs 2022 RECURRING EBITDA MARGIN c.24% * i.e. €2,514m ** in France 16
Slide 17: Solid track-record backing 2025 objectives
Solid track-record backing 2025 objectives Revenue (in €m) & EBITDA margin (in %) 2,048 1,920 2,256 2,461 2019 2020 2021 2022 2025e 20.6% 22.2% 23.1% 24.0% >25% EBITDA margin * With Aleda and l’Addition revenue on a FY basis, i.e. €2,514m ** Without Aleda et L’Addition in 2022 17
Slide 18: 2025 objectives fuelled by strong online growth
2025 objectives fuelled by strong online growth Online stakes (in €m) 1,130 1,535 2,172 2,520 2019 2020 2021 2022 2025e 18
Slide 19: Confidence in our medium-term financial and extra-financial objectives
Confidence in our medium-term financial and extra-financial objectives 2025 Financial REVENUE GROWTH ONLINE STAKES EBITDA MARGIN CAGR 2022-2025 upper end of >25% +4% ― +5% >20% CAGR 2022*-2025 Medium-term extra-financial RESPONSIBLE GAMING CARBON INTENSITY ESG PERFORMANCE < 2% Halve Remain in the of
Slide 20: Looking further ahead…
Looking further ahead… Strengthen our sustainable growth model based on player protection Amplify our positive impact on society Become a truly international player “Gaming is our business, giving back to society is what drives us, and responsibility is our constant focus” 20
Slide 21: Confidence in meeting our short- and medium-term financial objectives
Confidence in meeting our short-and medium-term financial objectives Ability to offset the impact of potential macro- economic turmoil Online lottery operating leverage to benefit Group margin Recurring operating cash flow generation model Clear vision regarding external growth and capital allocatio
Slide 22: Appendix
Appendix
Slide 23: Regulatory/fiscal regime as at January 1st 2020
Regulatory/fiscal regime as at January 1st 2020 1 Gaming taxes based on stakes 2019 Player payout Taxes FDJ Gaming taxes based on GGR* 2 Player payout Taxes FDJ Categories Player payout ratio range Tax rate Before VAT January 1st 32.0% of Loto & Euromillions 50-60% 68.0% of GGR 2020 onwards GGR Othe