Slide 1: H1 2023 results
H1 2023 results 7 September 2023
Slide 2: Agenda
Agenda 2 Financial review Highlights Strategic priorities and outlook Mor Weizer Chris McGinnis Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer H1 2023 results
Slide 3: Highlights
Highlights 3 Record H1 23 performance; FY23 on track to be slightly ahead of current expectations • Record H1 23 Adjusted EBITDA, growing 10% to €220 million • B2B: Showing good momentum and well-positioned to capitalise on growth opportunities: o Strong performance from Americas; Hard Rock Digital
Slide 4: Agenda
Agenda 4 Financial review Highlights Strategic priorities and outlook Mor Weizer Chris McGinnis Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer H1 2023 results
Slide 5: Financial highlights
Financial highlights 5 Record financial performance € millions H1 2023 H1 20221 H1 23 v H1 22 % Group revenue • Record H1 23 performance with Group Adjusted EBITDA Adjusted EBITDA of €220m (+10% v Group Adjusted EBITDA margin H1 2022) • Strong operating cashflow provides Net debt flexibility to fund
Slide 6: Summary by division
Summary by division 6 Both B2B and B2C divisions contributed to the strong performance € millions H1 2023 H1 2022 H1 23 v H1 22 % B2B: • A focus on high-growth markets, led by the Americas, helped to deliver Adjusted EBITDA growth of 5% y/y B2B • Investment continues in growth segments, most notably
Slide 7: B2B performance
B2B performance 7 Regulated markets driving strong growth in B2B € millions • All regions within regulated H1 2023 H1 2022 H1 23 v H1 22 % H1 23 v H1 22 CC% markets saw growth on a Americas 99.7 69.8 43% 29% constant currency basis Regulated Europe 96.6 92.2 5% 5% • Americas growth of 29% on a const
Slide 8: B2C performance
B2C performance 8 Strong revenue and EBITDA growth driven by Snaitech Revenue Adjusted EBITDA € millions H1 2023 H1 2022 % H1 2023 H1 2022 % Snaitech * 488.4 446.0 10% 141.9 127.0 12% HAPPYBET 10.3 10.7 -4% -6.1 -5.2 n/a Sun Bingo and Other B2C 34.1 31.7 8% 2.8 0.1 n/a Intercompany -0.7 -1.1 n/a - -
Slide 9: Snaitech performance
Snaitech performance 9 Pent up demand drove strong retail betting performance; online continues to perform well € millions H1 2023 H1 2022 H1 23 v H1 22 % Retail betting 117.2 94.2 24% • Strong growth across both retail and online Gaming machines 225.6 218.5 3% channels Online 131.4 117.5 12% • Reta
Slide 10: Strengthening of balance sheet
Strengthening of balance sheet 10 Deleveraging continues to give flexibility on capital allocation • Strong cash generation with Adjusted operating cashflows of €233 million2 • Net debt reduced to €248 million, € millions even when absorbing Hard Rock Digital investment and other cash outflows • Str
Slide 11: Balance sheet provides capital allocation flexibility
Balance sheet provides capital allocation flexibility 11 Strength and flexibility of balance sheet supports growth strategy • Senior secured notes currently outstanding: o €350 million at a rate of 4.25% due to expire in March 2026 o €300 million at a rate of 5.875% due to expire in 2028 • RCF fully
Slide 12: Update on CFO priorities and additional guidance
Update on CFO priorities and additional guidance 12 Early signs of progress on key priorities; more to come Priorities discussed at FY22 results Progress made in FY23 and future plans Improve cash generation, particularly in B2B FCF generation has improved in B2B; more to come Refocus on core B2B ac
Slide 13: Outlook
Outlook 13 FY23 expected to be slightly ahead of expectations; medium-term EBITDA targets reaffirmed • Following a strong H1 performance, H2 has started well with normal seasonality • On track to deliver FY 2023 slightly ahead of current expectations • B2B medium-term Adjusted EBITDA guidance mainta
Slide 14: Agenda
Agenda 14 Financial review Highlights Strategic priorities and outlook Mor Weizer Chris McGinnis Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer H1 2023 results
Slide 15: Playtech's medium-term strategy
Playtech’s medium-term strategy 15 Drive revenue growth and expand margins B2B B2C Be partner of choice for newly regulating markets Leverage retail presence to grow Snaitech’s online business Capitalise on Live and SaaS opportunities Optimise HAPPYBET for online Realign resources to reflect B2B gro
Slide 16: The B2B business has evolved
The B2B business has evolved 16 A more strategically diverse business, both regionally and by product Live B2B REVENUES Americas RoW 4% REVENUES Services 4% BY REGION* BY PRODUCT Platform Other content Poker Asia Bingo Europe ex-UK 44% 2017 22% Sport UK Casino 26% B2B REVENUES RoW Asia REVENUES Serv
Slide 17: B2B Strategy
B2B Strategy 17 Clear path to driving revenue growth and expanding margins B2B 1. Be partner of choice for newly 2. Capitalise on Live and 3. Realign resources to regulating markets SaaS opportunities reflect B2B growth areas Live • Transformation programme launched • Regulated revenues grew +24% in
Slide 18: Partner of choice for newly regulated markets
Partner of choice for newly regulated markets 18 We are well placed in several countries to capture growth in nascent markets MARKET GROWTH Playtech is a key enabler for land-based national UNREGULATED REGULATED leaders as they transition to online Netherlands We have invested heavily to ensure we a
Slide 19: B2B: Be partner of choice for newly regulating markets
B2B: Be partner of choice for newly regulating markets 19 Executing on US strategy; Hard Rock Digital partnership strengthens our position Continued expansion of US footprint • 2022 saw the signing of multiple deals with US operators • Long-term strategic agreement signed with an iconic • 2023 is a
Slide 20: B2B: Be partner of choice for newly regulating markets
B2B: Be partner of choice for newly regulating markets 20 Well placed in other high-growth markets across the Americas • Continues to perform strongly • Sports betting has now been regulated in Brazil • Provides blueprint for success for structured • Huge potential addressable market agreements in o
Slide 21: B2B: Capitalise on Live opportunity
B2B: Capitalise on Live opportunity 21 Live: Investing to drive progress in an attractive product vertical Significant H1 23 progress, more to come in H2 23 Continued investments in new content and concepts • In regulated markets, H1 23 revenues grew 24% • Launched a Jumanji game following an intric
Slide 22: B2B: Capitalise on SaaS opportunity
B2B: Capitalise on SaaS opportunity 22 SaaS: on track to achieve medium term revenue target of €60 million - €80 million Further brands attracted to our SaaS model On track to achieve medium term revenue target • Added more than 50 brands; >400 launched since 2019 • Medium-term revenue target of €60
Slide 23: B2C Strategy
B2C Strategy 23 A leading European business B2C 1. Leverage retail presence to 2. Optimise HAPPYBET 3. Targeted M&A to grow Snaitech’s online business for online expand Snaitech • Online GGR has increased 15% • New website to launch in H2 2023 in H1 23 versus H1 22 • €6 million Giove acquisition • N
Slide 24: B2C: Leverage retail presence to grow Snaitech's online business
B2C: Leverage retail presence to grow Snaitech’s online business 24 Targeting the online segment Renewal of technology Broadening content offering, Revamp of website infrastructure tools and features • New responsive website with a • Data lake approach • Added >200 slot games to completely new look
Slide 25: Optimising HAPPYBET for online
Optimising HAPPYBET for online 25 HAPPYBET turnaround strategy on track Online Retail Action Impact Action Impact Bonus to GGR ratio Optimise the entire decreased by more than Underperforming GGR per retail shop bonus strategy 40% in H1 23 v H1 22 retail shops have in Germany up >10% been rationalis
Slide 26: Sustainable Success: underpinning our commercial strategy
Sustainable Success: underpinning our commercial strategy 26 Delivering our ESG commitments Governance Stakeholder engagement 5 New brands signed up for BetBuddy in H1 23 Safer gambling Diversity, equity and inclusion Environment Secured inclusion in the FT Europe Climate Community Leaders 2023 list
Slide 27: Summary and outlook
Summary and outlook 27 Excellent start to the year; delivering on strategy to continue momentum • Record H1 23 Adjusted EBITDA of €220 million • B2B o Well positioned for growth with structured agreements across several attractive markets o Live and SaaS continue to see strong growth supported by co
Slide 28: Appendix
Appendix
Slide 29: Snaitech online KPIs
Snaitech online KPIs 29 Number of yearly active accounts Average number of monthly active accounts 600,000 350,000 500,000 300,000 400,000 250,000 300,000 467,862 200,000 358,628 379,045 200,000 250,242 270,760 150,000 287,890 196,419 237,113 245,652 100,000 100,000 60,679 59,886 62,936 82,266 76,03
Slide 30: Snaitech retail KPIs
Snaitech retail KPIs 30 Number of active AWM machines Number of active VLT machines 40,000 12,000 35,000 4,573 5,153 10,000 30,000 7,884 8,621 6,031 6,716 10,067 10,079 10,059 10,195 10,011 9,902 25,000 8,000 20,000 15,000 33,162 30,292 6,000 26,107 25,856 26,948 26,773 10,000 4,000 5,000 - 2,000 H1
Slide 31: HAPPYBET KPIs
HAPPYBET KPIs 31 Online GGR (€ million) Number of yearly and monthly active accounts 1.40 12,000 1.20 1.28 10,000 10,445 1.00 8,000 9,537 1.11 0.80 6,000 0.60 4,000 0.40 2,000 3,079 3,335 0.20 - H1 22 H1 23 - H1 22 H1 23 Yearly active accounts Average monthly active accounts Retail GGR (€ million) N
Slide 32: Snaitech online
Snaitech online 32 Reconciliation of Snaitech’s online margin € millions H1 2023 H1 2022 % Online gross revenue 223.8 196.6 14% Gambling taxes (56.6) (50.0) 13% Bonuses (35.8) (29.1) 23% Online revenue (as reported) 131.4 117.5 12% Online Adjusted EBITDA 68.7 62.3 10% Adjusted EBITDA margin (gross)
Slide 33: Changing Snaitech disclosure from FY23 to be in line with peers
Changing Snaitech disclosure from FY23 to be in line with peers 33 Online bank charges bow recognised within Snaitech Adjusted EBITDA € millions H1 19 H1 20 H1 21 H1 22 H1 23 Snaitech Adjusted EBITDA (previous disclosure) 74.7 47.1 51.8 131.7 147.1 Online bank charges previously recognised in financ
Slide 34: B2B cost breakdown
B2B cost breakdown 34 € millions H1 17 H1 18 H1 19 H1 20 H1 21 H1 22 H1 23 Total Operations 81.3 82.4 78.5 85.4 119.5 146.1 148.6 Live operations 12.2 15.7 15.3 22.4 30.1 35.8 45.9 Structured agreement costs 12.9 13.1 12.3 17.9 24.2 25.7 28.6 Other operations 54.5 49.6 48.9 44.6 62.1 79.1 69.6 Hardw
Slide 35: B2B customer concentration
B2B customer concentration 35 B2B customer concentration H1 2023 H1 2022 Top 3 45% 32% Top 5 53% 42% Top 10 62% 54% Top 15 70% 63% H1 2023 results
Slide 36: Contingent consideration
Contingent consideration 36 Group Contingent consideration Payment date Maximum payable earnout Acquisition and redemption liability (based on maximum (per terms of acquisition) (as at 30.06.2023) payable earnout) H1 2023 results
Slide 37: Thank you
Thank you