Cirsa Enterprises, S.a.u. · BME:CIRSA
Cirsa Enterprises, S.a.u — Cirsa — Debt Investor Presentation (October 2022)
21 slides from Cirsa Enterprises, S.a.u's debt investor presentation, October 2022
Slide 1: Current trading update
Current trading update October 2022
Slide 2: Disclaimer
Disclaimer This presentation is being provided as a source of background information regarding Cirsa Finance International S.àr.l (the “Issuer”), its parent (Cirsa Enterprises, S.L.U. (the “Company”)) and certain subsidiaries of the Company (together with the Company, the “Group”); and the Group’s b
Slide 3: Cirsa overview and update; YTD 2022 results and outlook
1. Cirsa overview and update 2. YTD 2022 results and outlook
Slide 4: Executive summary
Executive summary 1. Strong financial performance since July-06 until Covid-19 breakthrough in March-20 ⚫ Current management team took over Cirsa in July-06, since then: − Always delivered consistently all financial commitments: CAGR 05-19 Revenues +5% & EBITDA +15% − De-levered substantially from 5
Slide 5: Continued strong performance in Q3-22E
Continued strong performance in Q3-22E(1) Q3-22E(1) performance of revenues remains strong and cost efficiencies achieved in previous quarters are fully consolidated. Q3-22E(1) to deliver €147m of EBITDA, €12m above previous market guidance of €132-135m and +€16m vs. Q3-19PF EBITDA (€m) % EBITDA 9%
Slide 6: Strong financial performance since 2006 supported by a unique diversification
Strong financial performance since 2006 supported by a unique diversification, strong market credibility for Cirsa due to its reliability in consistently delivering all financial commitments EBITDA (€m) and EBITDA margin % H1-2022 EBITDA breakdown % EBITDA By geography By business 9% 23% 25% 29% 15%
Slide 7: Diversified geographical exposure, presence in 9 countries
Diversified geographical exposure, presence in 9 countries, 150 casinos, 243 arcades, 83k slots, 78 bingos, 2.6k betting points, 2.7k PoS(1) and online gaming in 5 markets (2) Spain 1 Dominican 1 Mexico 4 Republic Casinos: 6 Casinos: 6 Slot machines: 44,138 Slot machines: 7,522 Slot machines: 782 Ar
Slide 8: Cirsa's strategy
Cirsa’s strategy D E F Efficiency and Digital expansion Selective and productivity in core markets accretive M&A programs A Leadership consolidation in Spain, Italy • First mover • %∆ revenues > advantage to • Consolidation %∆ costs on all become #1 in opportunities businesses Latam B • Investment •
Slide 9: M&A: E-Play 24 (August 2022)
M&A: E-Play 24 (August 2022) E-Play 24 - Italy % Acquired • 60% stake acquisition • A leading Italian online betting and gaming operator • E-Play24 business is based on an omni-channel strategy, combining a retail network of +2,700 PoS(1) Company profile with a complete product offer in its online a
Slide 10: ESG update
ESG update • Strategy & Business model essentially based on our proximity to local communities and promoting a sustainable leisure model while embedding a strong responsible gaming & diverse culture ESG is part of Cirsa’s DNA • Our business is carried out in an environmentally friendly manner as a r
Slide 11: Total Cirsa: Revenue and EBITDA performance
Total Cirsa: Revenue and EBITDA performance Net Operating Revenues (% vs 2019 Proforma) Key highlights €m 156.4 247.5 335.0 378.4 378.2 400.2 ⚫ Q1-22 started with a pandemic set back (Omicron), which impacted our % Op. Jan-22 figures. Strong business recovery in Feb & Mar-22 allowed Cirsa to 34% 62%
Slide 12: Slots: Revenue and EBITDA performance
Slots: Revenue and EBITDA performance Revenues (% vs 2019 Proforma) Key highlights €m 61.6 108.3 170.3 190.1 183.8 185.2 Slots route operations business ⚫ Spain: − Under the Covid pandemic operational restrictions slots route business 84% 88% 87% 87% proved its resilience and delivered ▲%revenue >▲%
Slide 13: Casinos: Revenue and EBITDA performance
Casinos: Revenue and EBITDA performance Revenues (% vs 2019 Proforma) Key highlights €m 48.8 75.0 95.9 104.5 106.7 128.5 ⚫ Q2-22 at 98% revenues vs 2019PF and EBITDA already above 2019PF 98% (103%). Q3-22E(1) improving Q2-22 in all markets 83% ⚫ Revenue performance varies depending on restrictions i
Slide 14: Bingo: Revenue and EBITDA performance
Bingo: Revenue and EBITDA performance Revenues (% vs 2019 Proforma) Key highlights €m 15.9 34.5 39.5 46.2 48.6 51.7 ⚫ Spain: − In bingo arcades revenue performing at ≈ 100% of 2019PF. Traditional 79% Bingo slower recovery, currently >80% 69% 74% 59% ⚫ Mexico: 52% − Despite closures and restrictions,
Slide 15: On-line Gaming & Betting: Revenue and EBITDA performance
On-line Gaming & Betting: Revenue and EBITDA performance Revenues (% vs 2019 Proforma) Key highlights €m 27.7 33.7 31.0 37.5 38.1 35.0 ⚫ Flawless implementation of Cirsa’s on-line strategy in Q2-22 allowed to continue with 2021 and Q1-22 success, revenues at 127% of 2019PF and 136% 122% 120% 127% EB
Slide 16: B2B: Revenue and EBITDA performance
B2B: Revenue and EBITDA performance Revenues (% vs 2019 Proforma) Key highlights €m 7.2 12.9 13.1 18.0 21.5 21.4 ⚫ Operational restrictions in 2020 & 2021 reduced significantly the capex budget of most slot route operators. Current market situation improving 89% 82% and sold over 4.7K slots in Q2-22
Slide 17: Cirsa overview and update; YTD 2022 results and outlook
1. Cirsa overview and update 2. YTD 2022 results and outlook
Slide 18: H1-2022 and 2022 highlights
H1-2022 2021-22 EBITDA (€m) 2022 highlights Resilient and growing EBITDA… 139 147 129 132 131 ⚫ Q1-22 EBITDA of €118.1m, reaching 2019 PF EBITDA levels despite 121 120 118 Omicron wave impact, following a very fast recovery of revenues ⚫ Q2-22 EBITDA of 132.2m, (>100% of pre-pandemic level) as Cirsa
Slide 19: Cash generation
Cash generation Cash Flow (€m) Considerations 2019A 2020A 2021A H1-22 Resilient cash generation business model… EBITDA 473 126 331 250 ⚫ Amid a loss of Operating Income in the 2020-2021 period of over €1.2 Bn due to Covid lockdowns and operational restrictions, the business had (1) CAPEX (153) (125)
Slide 20: Deleveraging capacity
Deleveraging capacity Considerations Net financial debt evolution High de-leveraging capacity €m ⚫ €40 million Free Cashflow generation in H1-22 2,328 2,280-2,290 2,265 ⚫ EBITDA for Q3-22E(1) together with NFD forecast reduction of €38-48m in (38-48) Q3-22E(1) to drive the Q3-22 leverage ratio to an
Slide 21: Summary
Summary ⚫ Background: Since 2006, current management team always delivered all financial commitments during 54 consecutive quarters YoY, and deserved Blackstone acquisition in July 2018 − 7.3x EBITDA: €71m (2005) to €519m (2019) − 3.2x EBITDA margin: 9% (2005) to 29% (2019) − Leverage reduction: 5.0