Slide 1: Playtech cover
Slide 2: Introduction: Roger Withers, Chairman
INTRODUCTION » Roger Withers, Chairman PLAYTECH LTD WINNER NOMINEE NEW COMPANY OF AWARDS
Slide 3: Introduction
INTRODUCTION • Impressive financial performance • gross income +51% • total revenue +53% • adjusted EPS +26% • total dividend +41% • Achieved Premium Listing on the LSE • Outstanding take‐out of stake in William Hill Online ‐ £424m • Strong current trading with confident outlook for 2013 3
Slide 4: Financial Review: Ron Hoffman, CFO
FINANCIAL REVIEW » Ron Hoffman, CFO
Slide 5: FY12 growth in gross income, revenue, EBITDA and profit
400 368.1 FY10 FY11 FY12 350 317.5 300 243.6 250 € in Millions 207.5 200 186.7 173.1 168.5 142.3 136.2 150 124.9 112.8 102.9 93.2 88.8 100 72.1 50 0 Gross Income Total Revenue Adj. EBITDA Adj. Net profit Adj. EBITDA excl. WHO +51% +53% +49% +49% +53% 5
Slide 6: FY10 to FY12 results
245.3 240 FY10 FY11 FY12 199.2 194.8 190 173.1 163.1 142.3 138.4 140 125.0 113.4 103.1 102.8 93.2 87.8 90 77.3 72.3 40 Gross Income Total Revenue Adj. EBITDA Adj. Net profit Adj. EBITDA excl WHO +23% +19% +22% +22% +14% *Adj. Net profit attributable to the parent 6
Slide 7: Organic Growth
350 Organic Growth 317.5 19% 78.4 300 11% 8% 250 14.0 61.9 17.6 207.5 200 €m 150 100 50 0 FY11 Revenue Existing New Business Acquisitions FY12 Revenue *Other New Business defined as new licensees or new products which were launched in the past 18 months 7
Slide 8: Revenue breakdown
160 151.7 Revenue breakdown • Casino up 33% mainly from Ash Gaming, mobile royalties, branded 140 games & LIVE 120 114.4 106.3 • Services up 147% reflecting a full year 100 of revenue in 2012 € Millions 80 • Bingo up 19% mainly due to organic growth, Gala Bingo and mobile bingo 60 43.0 • Poker down
Slide 9: Bingo, poker and mobile 2012
Bingo 2012 True bingo, poker & mobile • Sidegames of €10.8m 160 • Total bingo revenue of €28.8m (+21%) 140 120 Poker 77.9 • Poker sidegames of €7.2m 100 • Total poker revenue of €25.1m (‐14%) € Millions 59.4 80 60 Mobile 2012 28.8 • Mobile casino of €3.9m 40 23.7 13.1 • Total mobile contribution inc
Slide 10: Increase in customer concentration
*Excl. Acquisitions FY11 FY12 FY11 FY12 Top 2 licensees 37% 40% 26% 26% Top 5 licensees 55% 61% 49% 51% Top 10 licensees 68% 73% 64% 66% Top 15 licensees 75% 79% 72% 74% Licensees > €4.0m revenue for FY12 10 12 8 9 Licensees > €1.0m revenue for FY12 32 41 30 34 • Increase in customer concentration,
Slide 11: Adjusted EBITDA margin
Adj. EBITDA margin excl. WHO SOP & • Adjusted EBITDA margin of 51%, flat on the 200 acquisitions 70% 195 prior year 65% 190 60% 185 • Adjusted EBITDA margin excl. acq. 56%, 180 55% down from 57% 47% € Millions 50% 175 45% 45% 170 Factors affecting a decrease in margin: 165 40% 160 35% 155 30% 25% •
Slide 12: Adjusted operational costs
€ in millions 2012 2011 Adj. Operational Costs 181.3 57% 118.1 57% Revenue‐driven costs 36.2 25.1 % out of revenue 11.4% 12.1% % out of revenue excluding acquisitions 9.1% 9.7% Adjusted operating expenses excluding revenue driven costs 145.1 93.0 Employee related costs 99.9 68.8% 64.3 69.2% Administ
Slide 13: William Hill Online stake buyout
• Over 3.5 times cash return in only 4 years • Buyout stake of £424m, above consensus • Double digit annual growth since inception • Software supply to William Hill Online continues24m 13
Slide 14: Cash generation and cash flows
• Playtech continues to be highly cash generative • Cash balance as of 31 December 2012 of €120.9m € in millions 2012 2011 Cash from operating activities including WHO dividend 160.1 109.4 Cash conversion rate (from Adj. EBITDA) 88% 88% Cash used in Investing activities, excluding WHO dividend 176.3
Slide 15: Exclusive licensing deal with Skywind Holdings
• Exclusive licencing deal with Skywind Holdings • Cost‐effective B2B entry point into social gaming • Enables entry to a wide range of both social gaming software and real money software • Setting the foundations for future growth €6 million annual fee Exclusive B2B on both social and real Social G
Slide 16: 2013 cash timeline
Expected sale of Opening stake in PTTS Expected cash WHO Earnout interim €120.9m £424m* €35.0m Dividend 1 31 January December 2013 January May July October 2013 May PTTS Scheduled Expected Earnout Loan final €35.0m repayments Dividend €29.4m * Subject to working capital adjustment. 16
Slide 17: Net cash, borrowings and total assets
Net Cash balance S/term borrowings S/term df. & cont. consideration €120.9m €38.0m €69.7m (31 Dec 2011: €164.8m) (31 Dec 2011: €13.8m) (31 Dec 2011: €34.5m) L/term df. & cont. L/term borrowings Total assets consideration €42.6m €31.3m €784.5m (31 Dec 2011: €152.7m) (31 Dec 2011: €13.7m) (31 Dec 2011
Slide 18: Adjusted EPS and dividend per share
70 Adjusted EPS 58.1 Adjusted EPS 60 50 46.2 • Adj. EPS increased by 26% to 58.1 40 € cents € cents per share 30 20 DPS 10 • Final dividend set as 40% of 0 2011 2012 annual adjusted net profit less the *Includes £100m share placing December 2011 interim dividend 25 23.2 * DPS • Final dividend of 15.
Slide 19: PTTS compensation structure
• Full software and services agreement across all products except web based sports • PTTS compensation calculated as an uplift from Base Adj. EBITDA in digital EBITDA • Calculated as 27.5% X increase in Adj. EBITDA over FY12 Base EBITDA X by the then prevailing group EBITDA multiple of Ladbrokes. •
Slide 20: Review and strategic outlook
Review and strategic outlook éplaytech
Slide 21: Playtech Offering
Review and strategic outlook éplaytech Playtech Offering Gaming machines
Slide 22: Strategy
• Create a business of significant scale, with a full product and service capability through organic growth and acquisition of new licensees • Introduction of new products – leverage of cross‐sell opportunities through expansion of existing relationships • Establish further long‐term comprehensive p
Slide 23: Growth drivers and new markets
• Double digit organic growth of existing licensees • Growth of the mobile segment, especially Mobenga’s sportsbook market achieved strong growth since acquisition (c.150% Q412 to Q411) • A large number of new licensees signed, including Betclic Everest, Betfair on iPoker • Preparations for anticipa
Slide 24: Cross-sell opportunities and new products
• Creating cross‐sell opportunities • Highly flexible and advanced sportsbetting system further developed following the acquisition of Geneity • Complete, fully integrated lottery system with proven track record in the UK, available on all delivery channels – retail, traditional interactive and mobi
Slide 25: Mobile hub
• Playtech launched the mobile hub combining Mobenga mobile sports betting solution with Playtech gaming products • Playtech’s product verticals available on iOS and Android devices as well as different browsers in HTML5 format • Players able to use one account for mobile and traditional interactive
Slide 26: Poker, Videobet and branded games
• Poker – introduction of speed poker appealing to existing and new players, introduction of a new liquidity policy, designed to increase poker liquidity • Videobet – international deployment underway in Mexico, Puerto Rico • Continuous expansion of branded games: • Branded scratch cards • The Incre
Slide 27: Mobile bingo, Geneity and Portal launches
• Playtech launched mobile bingo on Apple iOS and Android • Acquisition and launch of Geneity’s world‐class sports betting platform • Playtech launched the Portal, giving licensees direct control and enabling them to provide a bespoke user interface • Mobenga supplies mobile sports betting to Willia
Slide 28: Structured deals, joint ventures, acquisitions
Structured deals • Ladbrokes Joint ventures • Joint venture signed with Gauselmann in Jan 2012 (Germany) • Joint venture signed with Peermont in Jan 2012 (South Africa) • Further joint ventures in the pipeline Acquisitions • Geneity ‐ UK based provider of e‐gaming software products, focused primaril
Slide 29: Share of profit in William Hill Online
60 Share of Profit in William Hill Online 50.6 50 Double digit growth 40 36.1 € Millions 30.8 30 22.5 20 10 0 2009 2010 2011 2012 • IRR 41% on Share of Profit • Over 3.5 times cash on cash return over 4 years • Buy‐out stake for £424m, higher than consensus • Excellent potential for further value‐en
Slide 30: Ladbrokes agreement
• Knowledge and experience within PTTS – key components in securing the landmark agreement with Ladbrokes • Development and support Ladbrokes digital business • Full software and services agreements across all products except interactive web‐based sports • PTTS compensation calculated as an uplift f
Slide 31: Launch timeline
Gala Casino Acceleration of Spain launches launch payment Casino, poker and sports Caliente Agreement signed Gala Bingo launch International rollout 31 Skywind Agreement signed
Slide 32: Milestones and migrations
Betfair commence migration onto iPoker’s network Launch of mobile Bingo Migration complete 9 new mobile casino games with Mobenga William Hill complete the buyout of Playtech’s 29% of Poker liquidity programme the WHO JV Casino slots regulated in Italian 32 Market
Slide 33: Current trading and outlook
• Strong start to the year, specifically casino, bingo and mobile • Daily average revenues up over 15% versus the Q1/12 and over 5% when compared to Q4/12 • Full year outcome – management remains confident regarding 2013 and beyond – positive momentum of large licensees signed during 2012 – introduc
Slide 34: Review and strategic outlook
é9playtech Review and strategic outlook