Allwyn Ag · ATHEX:ALWN
Allwyn — Allwyn International a.s. — FY2023 Earnings Presentation
47 slides from Allwyn's earnings presentation, Mar 27, 2024
Slide 1: Allwyn International a.s. FY 2023 Results
Allwyn International a.s. FY 2023 Results 27 March 2024 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: FY 2023 highlights
FY 2023 highlights Another year of strong financial performance and strategic progress • Strong financial performance Consolidated Total Revenue – Total Revenue - Significant contribution from Camelot Acquisitions1 - Strong growth in existing geographies with GGR +7% YoY, including €7,878m +98% / +6
Slide 6: Strong online growth has continued, alongside resilience in physical retail
Strong online growth has continued, alongside resilience in physical retail… Online share increased year-on-year across all markets in 2023, with significant growth vs pre-Covid Austria GGR Greece and Cyprus Czech Republic (incl. Stoiximan for all periods) (excl. VLTs and Casinos) GGR (€m) GGR (€m)
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) 1,109 1,041 28% 986 27% 948 873 23% 792 717 687 17% 599 13
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 revitalised products / experiences – 2023 NEW EuroMillions front-end/user interface for app NEW Launch of scratchcard sales throug
Slide 9: Product launches and innovation (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 2023 New Pilot of self-service Feb 2024 Launch of app for Sazka
Slide 10: FY 2023 key strategic developments
FY 2023 key strategic developments Acquisitions of Camelot UK and Allwyn LS Group, and increase in stake in OPAP (Greece and Cyprus) 1 Acquisition of Camelot UK • Operator of The National Lottery in the UK from inception in 1994 to January 2024 • Completed February 2023 • Supported the successful st
Slide 11: Key strategic developments after year end
Key strategic developments after year end Successful start of next licence to operate The National Lottery in the UK, and planned acquisition of stake in IWG 1 Successful start of next licence for The National Lottery in the UK • Allwyn UK successfully commenced operation of the next ten-year licenc
Slide 12: 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 in 2023 Community Partnership Planet • In Austria, Austrian Lotteries donated • In 2023, Allwyn became partner of • The Austria segment completed t
Slide 13: Financial Update
Financial Update allwyn
Slide 14: FY 2023 financials summary
FY 2023 financials summary Another year of strong revenue growth, profitability and cash generation Consolidated basis (€m) Pro rata basis (€m)1 Net Revenue CAGR Net Revenue CAGR +42% +25% +74% +33% 3,589 3,297 2,531 1,892 1,994 1,253 1,458 1,356 1,061 963 2019 2020 2021 2022 2023 2019 2020 2021 202
Slide 15: Q4 2023 financial highlights
Q4 2023 financial highlights Return to good top-line growth in Q4 • Total Revenue +97% YoY Consolidated Total Revenue – Reflects good growth rate in existing geographies and significant contribution from Camelot Acquisitions €2,178m +97% / +4% vs Q4’22 vs Q4’22, excl. Camelot – Total Revenue in exis
Slide 16: Q4 2023 financials summary
Q4 2023 financials summary Another quarter of strong revenue growth, profitability and cash generation Consolidated basis (€m) Pro rata basis (€m)1 Net Revenue CAGR Net Revenue CAGR +40% +24% +58% +26% 988 878 624 708 556 422 365 345 372 237 Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 Q4'19 Q4'20 Q4'21 Q4'22 Q4'2
Slide 17: Consolidated P&L
Consolidated P&L • On a reported basis, Total Revenue +98% YoY, Net Consolidated P&L (€m) Revenue +42% YoY in 2023 Q4’22 Q4’23 ∆ vs. Q4’22 2022 2023 ∆ vs. 2022 – Gaming taxes/Good Causes contribution as a Total Revenue 1,108 2,178 +97% 3,988 7,878 +98% % of GGR increased, primarily owing to mix effe
Slide 18: Consolidated P&L (excluding acquisitions)
Consolidated P&L (excluding acquisitions) • Total Revenue excluding acquisitions +6% in 2023, Consolidated P&L (€m) with good growth in Q4, +4% YoY Q4’22 Q4’23 ∆ vs. Q4’22 2022 2023 ∆ vs. 2022 • GGR growth of +7% in 2023 Total Revenue 1,108 1,153 +4% 3,988 4,246 +6% – In general, resilient demand de
Slide 19: 2023 performance by segment - summary
2023 performance by segment - summary Good top-line performance and Adjusted EBITDA growth across existing markets 2022 and 2023 Gross Gaming Revenue1 €m (cFX, comparable For UK, performance for whole of 2022 2023 presentation basis2: -4%) year is shown in both years, rather -4% than for period of o
Slide 20: Business highlights – Austria
Business highlights – Austria Top-line broadly flat YoY across recent quarters, benefitting from diversification • GGR decreased 1% YoY in Q4 Gross Gaming Revenue – Strong growth in iGaming offset by weaker €m -1% +1% +2% development in Numerical Lotteries, part- +19% driven by less favourable jackp
Slide 21: Business highlights – Czech Republic
Business highlights – Czech Republic Continued good top line growth in Q4, driven by Numerical Lotteries and iGaming • Strong organic top line growth continued in Q4 Gross Gaming Revenue – Strong performance from Numerical Lotteries €m (+10% YoY) and iGaming (+18% YoY), in cFX +7% cFX +9% cFX +14% c
Slide 22: Business highlights – Greece and Cyprus
Business highlights – Greece and Cyprus Return to strong growth in Q4 • GGR +7% in Q4, benefiting from strong growth in Gross Gaming Revenue Sports Betting and iGaming €m +7% +13% -4% – Online GGR higher YoY (+25%), benefiting +15% from strong growth across product lines, including from iLottery pla
Slide 23: Business highlights – United Kingdom
Business highlights – United Kingdom Consistent GGR delivery over recent quarters • United Kingdom segment comprises operations of Camelot UK Gross Gaming Revenue (operator of The National Lottery until 31 January 2024) in 2023 €m Of which included in • Activities of Allwyn UK (operator from 1 Febru
Slide 24: Business highlights – Italy
Business highlights – Italy Solid performance across quarters • Solid performance continued in Q4 Net Revenue – Net Revenue +1% YoY €m – Adjusted EBITDA +1% YoY +1% +7% • Business continues to be highly consistent, +5% +3% profitable and cashflow generative 129 134 134 121 124 117 124 120 117 122 12
Slide 25: Strong free cash flow generation
Strong free cash flow generation Reflects asset light business model and high profitability • Higher EBITDA adjustments vs. prior years primarily relates to Consolidated FCF (€m) expensing of certain costs associated with preparation for next licence start in UK in February 2024 (€142m) Adjusted EBI
Slide 26: Strong cash conversion
Strong cash conversion Simplified consolidated cash flow bridge for 2023 (€m) 1,485 1,334 234 (245) 1,118 143 (102) (457) 691 (205) 486 Consol. Consol. Operating Dividends from Change in NWC Income Tax Capex Dividends to Attributable Cash Interest Paid Attributable Cash Adjusted Operating Cash Flow
Slide 27: Leverage (post-IFRS 16 basis)
Leverage (post-IFRS 16 basis) Another quarter of deleveraging As of 31 December 2023, post-IFRS 16, €m Consolidated Adjusted EBITDA 1,485 Cash and cash equivalents (1,811) Gross debt 4,134 Leases 124 Net debt (incl. leases) 2,446 Consolidated Net Debt / Adjusted EBITDA 1.6x Consolidated priority Net
Slide 28: FY 2023 key financing transactions
FY 2023 key financing transactions Pro-actively managing our capital structure, benefiting from access to diversified sources of funding Allwyn International Q1 2023: • Partial repayment of Czech bonds (equiv. €130m), remainder addressed by dedicated facility under syndicated loan • Signed €335m acc
Slide 29: FY 2023 key financing transactions (cont'd)
FY 2023 key financing transactions (cont’d) Pro-actively managing our capital structure, benefiting from access to diversified sources of funding OPAP Q1 2023: • In February, OPAP repaid a €100m bank loan due 2024 Q4 2023: • In November, the Group pledged the OPAP shares held by Allwyn Greece & Cypr
Slide 30: FY 2023 key financing transactions - summary
FY 2023 key financing transactions - summary Pro-actively managing our capital structure, benefiting from access to diversified sources of funding Changes in gross debt during 2023 Principal amount of gross debt as of 31 December 2022 (€m) 2,914 Partial prepayment of CZK6bn bonds (130) Drawdown unde
Slide 31: Key financing transactions after year end
Key financing transactions after year end Pro-actively managing our capital structure Allwyn International • In February 2024, provided a loan of €250m to parent company, Allwyn AG, for further distribution to its shareholder • In March 2024, signed €500m accordion facilities, due 2030, to its syndi
Slide 32: Update on Current Trading and Summary
Update on Current Trading and Summary 32
Slide 33: Update on current trading
Update on current trading • Since the end of the year our business has continued to perform and develop well • Our trading since the start of the year has been broadly in line with our expectations at the start of the year • The impact of key external factors, in particular the macroeconomic environ
Slide 34: Summary
Summary Another year of strong financial performance and strategic progress 1 Financial results demonstrate resilience of demand growth, even in a weaker consumer environment, as well as high profitability and cash flow generation, notwithstanding inflationary backdrop 2 Positioned well for future g
Slide 35: Q&A
QE&A allwyn
Slide 36: Appendix
Appendix allwyn
Slide 37: Diversified capital structure across multiple instruments
Diversified capital structure across multiple instruments with access to EUR, USD and local markets Debt overview as of 31 December 2023 Split by Fixed / Floating Split by Currency x LTM Adj. Amount (€m) 4% Consol. EBITDA 15% Consolidated Subsidiary Net Debt / (Cash) (813) Out of 15% of Subsidiary L
Slide 38: No significant maturities until 2027 and ample available liquidity
No significant maturities until 2027 and ample available liquidity Debt maturity profile as of 31 December 2023 (€m) Available facilities as of 31 December 2023 (€m) Capacity Drawn Undrawn Weighted average Allwyn International RCF 300 0 300 life: 4.1 years 250 400 Subsidiary RCFs2 329 0 329 633 Allw
Slide 39: Pro rata net leverage (pre-IFRS basis)
Pro rata net leverage (pre-IFRS 16 basis) As of 31 December 2023, Pre-IFRS16 Basis1 3 4 €m Austria Czech Republic Greece & Cyprus United Kingdom Allwyn LS Group2 Italy Other Corporate Total 100% basis LTM Adjusted EBITDA 267 120 732 167 26 386 424 (10) Cash and cash equivalents and short-term (618)
Slide 40: Dividends and distributions
Dividends and distributions Segment or equity method Interest at end of 2019 2020 2021 2022 2023 €m investee December 2023 Dividends and cash upstreamed – 100% basis Austrian Lotteries 9.5%1 120 177 91 120 114 Austria CASAG 59.7% 15 - - 45 130 SAZKA Czech Republic 100.0% 19 38 81 84 87 OPAP Greece a
Slide 41: Summary of adjustments to EBITDA
Summary of adjustments to EBITDA Standalone, 100% (€m)1 EBITDA Adjustments Breakdown3 Operating EBITDA 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Casino Linz insurance gain + restructuring non-personnel costs - (4) (1) - - Austria 211 147 232 266 278 Argentina arbitration gain - - (16) (6) (2
Slide 42: 2023 Consolidated Adjusted EBITDA build up
2023 Consolidated Adjusted EBITDA build up Consolidated Adjusted EBITDA (€m) 2022 2023 Austria 261.1 283.9 Czech Republic 120.4 125.4 Greece and Cyprus 730.1 742.1 United Kingdom - 157.0 Allwyn LS Group - 20.7 Italy (share of net profit) 63.4 66.6 Other - 96.1 Corporate (7.6) (7.3) Consolidated Adju
Slide 43: P&L structure
P&L structure Revised P&L presentation from FY 2022 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
Slide 44: Reconciliation of Pro rata Adjusted FCF
Reconciliation of Pro rata Adjusted FCF Pro rata to interest at end of each period (€m) 1 Pro rata to interest at end of each period (€m) 1 Ownership at Ownership at Adjusted EBITDA – pro rata end 2023 2019 2020 2021 2022 2023 Adjusted FCF – pro rata end 2023 2019 2020 2021 2022 2023 Austria 59.7% 8
Slide 45: 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 46: 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 47: 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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