Super Group (sghc) Limited · NYSE:SGHC
Super Group (sghc) — SPAC Merger (September 2021)
33 slides from Super Group (sghc)'s SPAC merger presentation, Sep 29, 2021
Slide 1: Investor Presentation September 2021
Investor Presentation September 2021 Filed by Super Group (SGHC) LTD pursuant to Rule 425under the Securities Act of 1933and deemed filed pursuant to Rule 14a-12under the Securities Exchange Act of 1934Subject Company: Sports Entertainment Acquisition Corp.(File No. 001-39583)
Slide 2: Disclaimer
Disclaimer This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the “Business Combination”) between Sports Entertainment Acquisition Corp. (“SEAH”) and SGHC L
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) Nothing in this Presentation should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not rely on forward-look
Slide 4: Disclaimer (cont'd)
Disclaimer (cont’d) Industry and Market Data. In this Presentation, SEAH and the Company rely on and refer to certain information and statistics obtained from third-party sources including reports by market research firms and results of peer companies. Neither SEAH nor the Company has independently
Slide 5: Presenters: Super Group and SEAH Management
Neal MenasheCEO23+ years in the online gaming industryResponsible for the development and execution of the business vision, strategy and growth Richard HassonPresident and COO12+ years in the online gaming industryResponsible for corporate development, strategy and commercial operations Eric Grubman
Slide 6: Our Winning Hand
Our Winning Hand To provide first-class entertainment to the worldwide betting and gaming community Our Vision 6 Global sports brand and multi-brand casino …to drive global awareness World-wide focus …to reach as many customers as possible Data-driven …to make the best possible decisions in real tim
Slide 7: Super Group Overview
24/7Live Sports Coverage Super Group Overview 7 Single-brand online sportsbookGlobal footprint & market shareStrategic partnerships with teams and leagues worldwideProfitable and high-growth sports betting offering Multi-brand online casinosEstablished market leadership in high-growth marketsData-le
Slide 8: Established Global Footprint with Room to Expand
Established Global Footprint with Room to Expand Highlights Fully scaled operations with ~3,700 employees across 17 in-country teams; product offered in 26 languages Licensed in 23 jurisdictions (excluding the US) Over $44bn in wagers in the last twelve months1 2020 Revenue Mix by Geography 8 $1.1bn
Slide 9: Strong Financial Position and User Growth
9 Net Gaming Revenue1 ($m) CAGR 30% Strong Financial Position and User Growth Super Group has exhibited strong topline growth driven by global expansion and new users Average Monthly Active Users (m) CAGR 65% See EP 263 for presentation of monthly active users in F-4 (draft F-4, EP 263 as of 9/9/202
Slide 10: We Benefit from Strong Industry Tailwinds
We Benefit from Strong Industry Tailwinds 10 Shift to mobile and digital gaming accelerated by COVID-19 pandemic Growing importance of having a strong online casino offering to anchor sports betting offerings Driving efficient CAC through data analytics and behavioral science Increasing focus on pro
Slide 11: Uniquely Positioned in the Global Online Gaming Industry
We Are Uniquely Positioned in the Global Online Gaming Industry 11 SGHC Flutter Entain 888 DraftKings Penn RSI GNOG theScore Digital Only Global Footprint Control of Tech Stack Single Sports Brand Online Casino Breadth Profitable Debt Free
Slide 12: Continuing to Execute on Growth Strategy
Continuing to Execute on Growth Strategy 12 Strong 1H21 Operating and Financial PerformancePositive Regulatory Momentum Now Live in Four US States Continued Engagement with Key Brand PartnersLaunched in More International MarketsContinued Investment in Technology and Data Analytics to Drive Outsized
Slide 13: Digital Pioneers Driven by Data
Digital Pioneers Driven by Data 13 Data & analytics is an integral part of our DNA – it allows us to make the right decisions at the right times in the right markets Robustness: All potential variables and scenarios are considered when making a decision Accuracy: Data is collected in real time using
Slide 14: Sophisticated Data and Analytics Enhances Customer Experience
Sophisticated Data and Analytics Enhances Customer Experience Customer-level AI identifies customer attributes and provides real time highly personalized offering 14 Data & analytics creates a feedback loop constantly improving offering with every customer interaction 100+ million data points analyz
Slide 15: Super Group is Highly Technologically Agile
Super Group is Highly Technologically Agile Simplified Technology Stack Technology Stack Highlights Proprietary data and analytics engine is overlaid across all core technology stacks Product Offering Proprietary PAMs and Sportsbooks 3rd Party PAMs and Sportsbooks Proprietary or Exclusively Licensed
Slide 16: Case Studies: Proven Ability to Enter New Markets
Case Studies: Proven Ability to Enter New Markets 16 1 GGR figures rebased to 1.0x at go live month.2 Market entry defined as marketing go live date. 3 GGR per month converted from EUR to USD for the per month figure. GGR rebased figures taken from EUR and not converted to USD to show undisturbed gr
Slide 17: Loyal and Engaged User Base
Loyal and Engaged User Base 17 Q4 2020 2020 2017 2019 2018 Pre-2017 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q2 2021 Q1 2021 Over 45% of last twelve months GGR generated by customers acquired before 20201 2021 GGR by cohort 1 12 months ended June 2021.
Slide 18: Replicating Success in Growth Markets in North America
Market access agreement in place for the Betway brand pending regulation Betway brand due to be live by February 2022 Betway brand live in state Replicating Success in Growth Markets in North America Super Group has executed a binding, definitive agreement to acquire US-based Digital Gaming Corporat
Slide 19: Super Group is Poised for Significant Future Growth
Super Group is Poised for Significant Future Growth… 19 $62bn Online Casino Sports Betting Global Online Betting and Gaming GGR ($bn)1 2025 online casino & sports betting is expected to reach $109bn and we are well positioned for this opportunity 1 H2 Gambling Capital. H2 GGR figures cited in F-4 re
Slide 20: Additional Opportunities to Further Scale the Company
…With Additional Opportunities to Further Scale the Company 20 Tuck-inM&A Strategic Partnerships Enter New Markets Ability to use our public currency to execute on our acquisition strategyAcquire companies with high value technologyAcquire B2C online casino and sports betting companies in key region
Slide 21: Benefits of Operating Leverage (BAU Model)
Benefits of Operating Leverage (BAU1 Model) 21 Estimated Net Gaming Revenue ($bn) 25% historic NGR CAGR driven by ability to scale organically in new markets; trend to continue through new market launches and continued growth in existing markets. BAU model assumes only organic growth 21 Note: Derive
Slide 22: Strong and Efficient Free Cash Flow Conversion
Strong and Efficient Free Cash Flow Conversion 22 Operational EBITDA Less: Interest Expense Debt-free balance sheet with no financing obligations Less: Tax Expense Super Group is domiciled in a low-tax jurisdiction Less: Capex Mix of third-party and owned technology reduces capex requirements Free C
Slide 23: Proposed Transaction Summary
Proposed Transaction Summary 23 1 Post-transaction ownership excludes shares subject to earn-out.2. Represents Super Group roll over equity assuming earn-out triggers are achieved. SEAH has agreed to combine with Super Group based on a $4.75 billion pre-money equity valuationAssumes Super Group shar
Slide 24: Company Benchmarking
Company Benchmarking Super Ul group
Slide 25: We Have a Powerful Combination of Profitability and Growth
25 Source: Peers based on IBES Consensus estimates as of 17-Sept-2021 Note: 888 Holdings excluded from diagram as it does not meet required growth, profitability or market access thresholds. We Have a Powerful Combination of Profitability and Growth Only global gaming company of scale with combinati
Slide 26: Comparable Company Financial Benchmarking
2020A – 2022E Revenue CAGR 2020A – 2022EEBITDA CAGR 2022EEBITDA Margin 2022E Levered Free Cash Flow Comparable Company Financial Benchmarking 26 Source: Management Financials, Wall Street Research (IBES Consensus Estimates) and Capital IQ median consensus estimates.Market data for 888 Holdings as of
Slide 27: Comparable Company Valuation Benchmarking
Source: Management Financials, Wall Street Research (IBES Consensus Estimates) and Capital IQ median consensus estimates.Market data for 888 Holdings as of 06-Sept-2021 and for all other peers as of 17-Sept-2021Note: Market capitalization is based on fully diluted shares outstanding and option dilut
Slide 28: Key Investment Highlights
Key Investment Highlights Holding company for leading online sports and online gaming with diversified global footprint Proven ability to enter and profitably launch in new markets Proprietary data & analytics engine drives retention and monetization Poised to benefit from strategic entry into the U
Slide 29: Appendix
Appendix ? I scoup ; :
Slide 30: Financial Information (in $ millions)
Financial Information 30 (in $ millions) FY2019A2 FY2020A2 FY2021E FY2022E NGR $874 $1,114 $1,500+ $1,700+ Other Revenue1 $43 $63 $80 $83 Total Revenue $917 $1,177 $1,580+ $1,783+ % NGR Growth 27.5% 34.6% 13.3% Operational EBITDA3 $50 $245 $350+ $420+ % NGR Margin 5.7% 22.0% 23.3% 24.7% % Growth 390
Slide 31: Reconciliation to Financial Statements in F-4 – NGR
Reconciliation to Financial Statements in F-4 – NGR 31 (in millions) FY2020A Comments F-4 Revenue (EUR) 908 F-4 Revenue (USD) 1,040 (+) Entity consolidation or disaggregation 144 Investor presentation assumes full year consolidation of all relevant entities into Super Group (+) Audit Adjustments (6)
Slide 32: Reconciliation to Financial Statements in F-4 – EBITDA
Reconciliation to Financial Statements in F-4 – EBITDA 32 (in millions) FY2020A Comments F-4 EBITDA (EUR) 181 F-4 EBITDA (USD) 206 (+) Entity consolidation or disaggregation 55 Investor presentation assumes full year consolidation of all relevant entities into Super Group (+) Audit Adjustments (1) R
Slide 33: Glossary of Terms
Glossary of Terms Term Definition Super Group Holding company for leading global sports betting and gaming business Betway, a premier online sports betting brand, and Spin, a multi-brand online casino offering. All financial and operational metrics are presented on a pro-forma basis to show a like-f