Allwyn Ag · ATHEX:ALWN
Allwyn — Allwyn International a.s. — Q2 2023 Earnings Presentation
40 slides from Allwyn's earnings presentation, Sep 5, 2023
Slide 1: Allwyn International a.s. Q2 2023 Results
Allwyn International a.s. Q2 2023 Results 5 September 2023 For further information on our company, please visit our website: allwynentertainment.com
Slide 2: Presenting today
Presenting today Robert Chvatal Kenneth Morton CEO CFO 2
Slide 3: Today's agenda
Today’s agenda Business and Strategic Update Financial Update Update on Current Trading and Summary Appendix 3
Slide 4: Business and Strategic Update
Business and Strategic Update 4
Slide 5: Q2 2023 highlights
Q2 2023 highlights A quarter of strong growth and profitability • Strong financial performance Consolidated Total Revenue – Total Revenue +115% YoY - +7% YoY excluding Camelot Acquisitions1 – Adjusted EBITDA +35% YoY €2,046m +115% / +7% vs Q2’22 vs Q2’22, excl. Camelot - +15% YoY excluding Camelot A
Slide 6: Strong online momentum continued alongside resilience in physical retail
Strong online momentum continued alongside resilience in physical retail… Online share increased year-on-year across all markets in Q2’23 (stable quarter-on-quarter); significant growth vs. pre- Covid Austria GGR (excl. VLTs and Casinos)1 GGR (€m) / Online share of total (%) 172 166 167 160 150 159
Slide 7: De-anonymised share of physical retail also growing
…de-anonymised share of physical retail also growing Loyalty programmes bring the benefits of online to the physical retail channel Czech Republic: de-anonymised GGR share (%) 1 Greece and Cyprus: evolution of registered customer base (‘000) 986 948 28% 27% 873 792 23% 717 687 599 17% 463 13% 355 7%
Slide 8: Product launches and innovation across physical retail and online channels
Product launches and innovation across physical retail and online channels Continuing to expand and improve our product offering, user experience, and technology New and revitalized products / experiences – H1 2023 NEW EuroMillions front-end/user interface for NEW EuroMillions “100 European Milliona
Slide 9: Product launches and innovation across physical retail and online channels (cont'd)
Product launches and innovation across physical retail and online channels (cont’d) Continuing to expand and improve our product offering, user experience, and technology Digitalisation of physical retail Key new product launches after Q2 2023 New Pilot of self-service H2 2023 Launch of new Lotto as
Slide 10: Q2 2023 key strategic developments
Q2 2023 key strategic developments Further OPAP shareholding increase 1 OPAP shareholding, buyback and scrip dividend programme • In Q2 2022, Allwyn increased its direct shareholding in OPAP through electing to receive part of the dividend paid by OPAP as new shares under OPAP’s scrip dividend progr
Slide 11: Continuing to focus on ESG and to contribute to local communities
Continuing to focus on ESG and to contribute to local communities Multiple examples of our ongoing commitment to ESG and corporate social responsibility year to date ESG Health Sport • Allwyn published its ESG report in • Camelot Lottery Solutions renewed • To assist athletes and raise the bar June,
Slide 12: Financial Update
Financial Update allwyn
Slide 13: Q2 2023 financial highlights
Q2 2023 financial highlights A quarter of strong growth and profitability • Total Revenue +115% YoY reflects good performance in existing Consolidated Total Revenue geographies and significant contribution from Camelot Acquisitions – Total Revenue +7% YoY in existing geographies €2,046m +115% / +7%
Slide 14: Consolidated P&L
Consolidated P&L • Total Revenue growth of +115% YoY, Net Revenue +51% YoY Consolidated P&L (€m) Q2’22 Q2’23 ∆ vs. Q2’22 – Gaming taxes/Good Causes contribution as a % of GGR increased, primarily owing to mix effects related to acquisition Total Revenue 953 2,046 +115% of Camelot UK Of which: GGR 91
Slide 15: Consolidated P&L (excluding acquisitions)
Consolidated P&L (excluding acquisitions) • Total Revenue growth of +7% YoY excluding recent acquisitions Consolidated P&L (€m) - GGR growth +8% YoY, driven primarily by strong growth in Q2’22 Q2’23 ∆ vs. Q2’22 digital Total Revenue 953 1,021 +7% - Resilient demand notwithstanding consumer spending
Slide 16: Q2 2023 financials summary
Q2 2023 financials summary Strong net revenue growth and cash generation Consolidated basis (€m) Pro rata basis (€m)1 Net Revenue CAGR Net Revenue CAGR +51% +28% +106% +31% 907 804 602 481 342 391 275 297 190 173 Q2'19 Q2'20 Q2'21 Q2'22 Q2'23 Q2'19 Q2'20 Q2'21 Q2'22 Q2'23 Adjusted EBITDA CAGR Adjust
Slide 17: Q2 2023 Consolidated EBITDA
Q2 2023 Consolidated EBITDA • Strong Adjusted EBITDA growth year-on-year, driven by Consolidated EBITDA (€m) acquisitions and growth in existing geographies Q2’22 Q1’23 Q2’23 • First full quarter of consolidation of United Kingdom (Camelot UK) and Allwyn LS Group (formerly Camelot LS Group), followi
Slide 18: Business highlights – Austria
Business highlights – Austria Top-line performance reflects benefits of diversification • GGR increased 1% YoY in Q2 Gross Gaming Revenue – Strong growth in iGaming GGR, in €m +1% particular, alongside a good performance +19% in VLTs and Casinos – Lotteries GGR weaker, in part impacted by 375 388 35
Slide 19: Business highlights – Czech Republic
Business highlights – Czech Republic Continued good topline growth in Q2, driven by online • Good organic top line growth Gross Gaming Revenue – Strong GGR growth in iGaming (+21% YoY) and €m in instant lotteries (+16% YoY) contributed to cFX +14% cFX +4% overall GGR +9% YoY (constant FX +4% YoY) +1
Slide 20: Business highlights – Greece and Cyprus
Business highlights – Greece and Cyprus Strong growth continued in Q2 • Strong GGR growth (+13% YoY) Gross Gaming Revenue – Good performance across all products €m +15% +13% – Continued high online growth (+25% YoY), aided by product enhancements and 527 541 commercial initiatives 457 498 462 499 44
Slide 21: Business highlights – United Kingdom
Business highlights – United Kingdom Consistent delivery • United Kingdom segment comprises operations of Camelot UK; Gross gaming Revenue activities related to next licence (which will be operated by subsidiary Allwyn UK) are currently included in Corporate segment €m Of which included in consolida
Slide 22: Business highlights – Italy
Business highlights – Italy Solid performance • Solid performance in the quarter Net Revenue – Net Revenue +3% YoY €m – Adjusted EBITDA +2% YoY • Business continues to be highly profitable and +5% +3% cashflow generative 129 134 134 121 124 117 124 120 117 122 116 113 113 115 108 103 107 55 Q1'19 Q1
Slide 23: Strong free cash flow generation
Strong free cash flow generation Reflects asset light business model and high profitability • Clean EBITDA with only limited adjustments Consolidated FCF (€m) – Increase in adjustments YoY primarily relates to expensing of Adjusted EBITDA CAGR +30% costs incurred ahead of new UK National Lottery Lic
Slide 24: Strong cash conversion
Strong cash conversion Simplified consolidated cash flow bridge year-to-date (€m) 728 687 606 80 Relates to final dividends (136) paid in respect of FY2022 (70) (44) (263) 172 (92) 80 Consol. Consol. Operating Dividends from Change in NWC Income Tax Capex Dividends to Attributable Cash Interest Paid
Slide 25: Leverage (post-IFRS 16 basis)
Leverage (post-IFRS 16 basis) Low leverage, significant net cash position at subsidiaries As of 30 June 2023, Post-IFRS 16, €m Pro forma LTM Adjusted EBITDA1 1,488 Cash and cash equivalents and short-term financial assets (1,556) Gross debt 4,092 Leases 162 Net debt (incl. leases) 2,699 Consolidated
Slide 26: Q2 2023 key financing transactions
Q2 2023 key financing transactions Pro-actively managing our capital structure Q2 2023 - Allwyn International • In April, issued €665m of 7.250% senior secured notes due 2030 and $700m of 7.875% senior secured notes due 2029 (€1.3bn equivalent) – $600m of 7.875% senior secured notes were swapped to
Slide 27: Update on Current Trading and Summary
Update on Current Trading and Summary 27
Slide 28: Update on current trading
Update on current trading Since the end of the quarter our business has continued to perform and develop well, despite a background of relatively weak general consumer sentiment. Our trading since the start of the year has been broadly in line with our expectations at the start of the year 1 Macroec
Slide 29: Summary
Summary Continuing to compound growth and generate strong free cash flow 1 Another quarter of strong growth and profitability, notwithstanding weaker general consumer sentiment, reflecting execution of growth strategy and benefits of diversification 2 Continued progress in key organic growth initiat
Slide 30: Q&A
QE&A allwyn
Slide 31: Appendix
Appendix allwyn
Slide 32: P&L structure
P&L structure Previous P&L presentation New P&L presentation A A Gross Gaming Revenue (GGR) Gross Gaming Revenue (GGR) B B Less: Gaming taxes Other Revenue A B Net Gaming Revenue (NGR) A B Total Revenue C C Other Revenue Less: Gaming taxes A B C Net Revenue A C Of which: Net Gaming Revenue (NGR) 32
Slide 33: Summary of adjustments to EBITDA
Summary of adjustments to EBITDA Standalone, 100% (€m)1 EBITDA Adjustments Breakdown3 Operating EBITDA 2019 2020 2021 2022 Q1’23 Q2’23 2019 2020 2021 2022 Q1’23 Q2’23 Casino Linz insurance gain + restructuring non-personnel costs -- (4) (1) -- -- -- Austria 211 147 232 266 66 67 Argentina arbitratio
Slide 34: Diversified capital structure across multiple instruments
Diversified capital structure across multiple instruments with access to EUR, USD and local markets Debt overview as of 30 June 2023 Split by Fixed / Floating Split by Currency x PF LTM Adj. 4% Amount (€m) Consolidated EBITDA1 16% Out of 16% of Consolidated Subsidiary Net Debt / (Cash) (490) financi
Slide 35: No significant maturities until 2027 and ample available liquidity
No significant maturities until 2027 and ample available liquidity Debt maturity profile as of 30 June 2023 (€m) Available facilities as of 30 June 2023 (€m) Capacity Drawn Undrawn Weighted average life: 4.7 years 250 Allwyn International RCF 300 -- 300 400 Subsidiary RCFs 383 -- 383 644 Allwyn Inte
Slide 36: Pro rata net leverage (pre-IFRS basis)
Pro rata net leverage (pre-IFRS 16 basis) As of 30 June 2023, Pre-IFRS16 Basis1 Greece & United Allwyn LS 2 4 €m Austria Czech Republic Italy Other Corporate Total Cyprus Kingdom Group3 100% basis LTM Adjusted EBITDA2 253 118 756 179 29 380 249 (5) Cash and cash equivalents and short-term (318) (52)
Slide 37: Dividends and distributions
Dividends and distributions Ownership 2019 2020 2021 2022 H1’22 H1’23 €m At end of June 2023 Dividends and cash upstreamed – 100% basis Austrian Lotteries 9.5%1 120 177 91 120 120 114 CASAG 59.7% 15 - - 45 - 130 LottoItalia 32.5% 351 237 316 321 275 242 OPAP 50.4%2 165 420 222 599 - 416 SAZKA 100.0%
Slide 38: Alternative performance measures and comparability of information
Alternative performance measures and comparability of information This presentation includes non-IFRS performance measures, including Net Revenue, Net gaming revenue (“NGR”), Operating EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Capex, Adjusted Free Cash Flow (“Adjusted FCF”), Cash conversion a
Slide 39: Disclaimer
Disclaimer This presentation was produced by Allwyn International a.s. This presentation is not to be reproduced or distributed, in whole or in part, by any person other than Allwyn International a.s. This presentation does not represent an offer for, or constitute or form part of, and should not be
Slide 40: Disclaimer
Disclaimer No warranty or representation of any kind, express or implied, is or will be made in relation to, and to the fullest extent permissible by law, no responsibility or liability in contract, tort, or otherwise, is or will be accepted by us or any of our officers, employees, advisers or agent
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