William Hill — FY2020 Earnings Presentation
19 slides from William Hill's earnings presentation, Mar 4, 2021
Slide 1: Final results 2020
Final results 2020 52 weeks ended 29 December 2020 Strong finish to a challenging year
Slide 2: Strategy in action
Strategy in action Ulrik Bengtsson, CEO
Slide 3: Strategic focus on Customer, Team, Execution delivered results
Strategic focus on Customer, Team, Execution delivered results Record Online net revenue and growing Net Promoter Scores Retail traded well and profitably when open US transformed through partnerships, platform and product Scale benefits and technology generating efficiency and cost savings Strong b
Slide 4: Structural product improvement, international expansion
Structural product improvement, international expansion Steady stream of product improvements: complete betslip redesign, gaming experience overhaul, real-time personalised experience Migration to AWS cloud platform architecture and roll-out of the Smart Data Platform enabling faster app speeds Buil
Slide 5: Retail response to Covid-19: agile and customer-focused
Retail response to Covid-19: agile and customer-focused Material impact of Covid-19 on the operation and profitability of Retail Focus on operating the estate safely, protecting customers and colleagues, and responding swiftly to Government guidelines Shops traded well and profitably when open and r
Slide 6: A market-leading nationwide US business
A market-leading nationwide US business Expanded nationwide presence through market-leading partnerships and technology developments Launched in new states and expanded mobile presence: market access to 26 states, live in 15 Accelerated development and roll-out of proprietary technology platform, Li
Slide 7: Protecting customers and colleagues
Protecting customers and colleagues Rigorous player safety measures enhanced; implemented guardrails and increased online interactions Working with all stakeholders to promote fair and balanced, evidence-led regulatory ecosystems Building a high-trust culture with new programmes to promote colleague
Slide 8: Financial review
Financial review Matt Ashley, CFO
Slide 9: Financial Overview
Financial Overview 2020 thoughtfully navigated Revenue: £1.3bn (2019: £1.6bn) Adjusted EBIT: £57m (2019: £147m) Statutory retained profit: £51m (2019: Loss £27m) Positive free cash flow: £58m (2019: £90m) Strong balance sheet: >£590m cash1 following equity placing and VAT refund Net debt/EBITDA2: 0.
Slide 10: Revenue progression - strong trading pre and post lockdown
Revenue progression - strong trading pre and post lockdown 1. Where like-for-like (LFL) results are stated, this compares the trading performance of the shops that were open and trading in 2020 (subject to Covid-19 restrictions) to their 2019 performance. During 2020 when the full estate was closed
Slide 11: Group income statement – delivered a profit in year
Group income statement – delivered a profit in year 52 weeks ended 29-Dec-20 52 weeks ended 31-Dec-19 Adjusted Exceptional Statutory Adjusted Exceptional Statutory items & items & adjustments adjustments £m £m £m £m £m £m Net revenue 1,324.3 - 1,324.3 1,581.7 - 1,581.7 Cost of sales (325.5) 238.3 (8
Slide 12: Exceptional and adjusted items – only large one-off items in year
Exceptional and adjusted items – only large one-off items in year FY 2020 FY 2019 £m £m VAT refund 257.2 - • VAT refund £208.3m net of costs and tax Retail impairment (125.7) - • Impairment of non-cash intangible asset in Retail following impact from Covid-19 Caesars transaction related costs (70.4)
Slide 13: Segmental income statement – Strong online performance
Segmental income statement – Strong online performance 52 weeks ended 29-Dec-20 52 weeks ended 31-Dec-19 Corporate Corporate Online Retail US Group Online Retail US Group & Other & Other £m £m £m £m £m £m £m £m £m £m Net revenue 802.8 354.2 167.3 - 1,324.3 738.3 717.0 126.4 - 1,581.7 Cost of sales (
Slide 14: Group cash flow – Cash conversion 100%
Group cash flow – Cash conversion1 100% FY 2020 FY 2019 £m £m • EBITDA positive at all levels Adjusted operating profit 57.3 147.0 Non IFRS 16 depreciation and amortisation 90.1 80.5 • Government furlough support paid back in year EBITDA exc. IFRS 16 147.4 227.5 • Colleagues paid 100% of wages when
Slide 15: Group cash flow – Net debt reduced by over £420m leading to leverage of 0.8x
Group cash flow – Net debt reduced by over £420m leading to leverage of 0.8x FY 2020 FY 2019 £m £m Free Cash Flow 57.6 89.9 • Free cash flow from operations supplemented by VAT refund Acquisitions and disposals 14.1 (165.5) • Dividend cancelled VAT refund 221.3 - Dividends - (90.9) • June 2020 bond
Slide 16: Financial Summary
Financial Summary Online growth offsets Retail lockdowns Furlough repaid in year and employee wages maintained at 100% Retail bounce back proven twice US momentum continues Strengthened balance sheet; no near term maturities Resources for continued investment in product and technology Financially po
Slide 17: In conclusion
In conclusion Ulrik Bengtsson, CEO
Slide 18: Summary
Summary Strong finish to a challenging year with convincing momentum across our digital businesses Enhanced product and technology; accelerating convergence improving customer experience Balance sheet strengthened through actions to raise capital and preserve liquidity Recommended cash offer recogni
Slide 19: Wli770 MA.
Wli770 MA.