Slide 1: Year ending 31 December 2011
Year ending 31 December 2011 [awaiting picture]
Slide 2: Introduction
• Introduction: Roger Withers, Chairman • Financial Review: David Mathewson, CFO • Review of 2011 & Strategy: Mor Weizer, CEO • Questions and Answers
Slide 3: Introduction: Excellent financial performance
• Excellent financial performance • Gross income up 41% • Adj. EBITDA up 22% • Adj. net profit up 21% • Strong cashflow • New dividend policy • Dividend set at 16.5 € cents • Outlook: very confident for 2012
Slide 4: We're moving up!
Slide 5: Financial Review
FINANCIAL REVIEW
Slide 6: Financial highlights
• Gross income up 41% • Basic adjusted earnings per share, 46.2€ cents, up 20% • Dividend recommended at 16.5 € cents per share • Net assets €478.7 million, up from €300.0 million • Net cash balance of €137.3 million and unutilised facilities of €82.6 million • Strong current trading outstripping ma
Slide 7: New strategic JV partnerships and acquisitions
• New Strategic JV Partnerships • Gauselmann • Peermont • Acquisitions • Intelligent Gaming Solutions • PTTS Turnkey • Mobenga • Ash Gaming • Geniety
Slide 8: FY11 growth of 41% on a gross income basis
250 243.6 230 210 207.5 190 173.1 170 150 137.3 142.3 130 125.5 114.8 112.8 110 103.1 93.7 93.2 89.4 90 70 Gross income Total revenue Adjusted EBITDA Adjusted net 2009 2010 2011 profit • FY11 Growth of 41% on a gross income basis • 46% growth on a Total revenue basis • 22% growth on an adjusted EBIT
Slide 9: Excluding 2011 acquisitions and withdrawal from France in 2010
250 €243.6 Excluding 2011 acquisitions 230 and withdrawal from France in 2010 €207.5 210 €199.8 190 170 €165.0 €165.0 €163.7 150 130 €134.2 €134.2 €125.5 €112.8 110 €113.9 €102.8 90 €95.0 €95.0 €85.1 €85.1 70 Gross income Total revenue Adjusted EBITDA Adjusted net profit 2010 2011
Slide 10: Gross income bridge 2010 to 2011
260 243.6 43.8 240 220 5.3 199.8 200 3.4 21.4 4.7 3.2% 2.1% 180 173.1 2.9% 8.1 165.0 13.0% +21.1% 160 140 2010 Gross Closure of 2010 Gross Existing Videobet *Other New WHO SOP 2011 Excl. Acquistions 2011 Gross Income French Income net of Licensees Business Acquistions (PTTS, Income market France Mob
Slide 11: Revenue by product
120 114.4 100 96.7 80 76.8 2009 60 2010 43.0 2011 40 33.8 27.4 21.8 20 15.1 10.9 7.8 2.6 4.1 5.4 0.2 1.4 2.1 - 1.1 0 Casino Poker Bingo Videobet Services Other • Services includes PTTS for 6 months • Broad diversification of products
Slide 12: Revenue split by product
250 200 2% 21% 150 4% 7% Other 11% Services 100 Videobet Bingo 50 55% Poker Casino 0 2009 2010 2011 • We expect the services division share of total revenue to increase in 2012
Slide 13: Customer concentration
Excluding acquisitions customer concentration has improved, however due to the investment in PTTS, 2011 including acquisitions is broadly similar to 2010 2010 2011 *2011 Top 2 licensees 33% 37% 26% Top 5 licensees 49% 55% 49% Top 10 licensees 64% 68% 64% Top 15 licensees 74% 75% 72% Licensees > €4m
Slide 14: Adjusted operational costs
€ in millions 2011 2010 Adj. Operational Costs 118.1 70.0 Revenue driven costs 25.1 12.6 Adjusted operating expenses excluding revenue driven costs 93.0 57.4 Employee related costs 64.3 69% 39.6 69% Administration and office costs 11.9 13% 8.9 15% Travel, exhibitions & marketing 4.7 5% 4.6 8% Cost o
Slide 15: Revenue driven costs
Revenue 2011 2010 Revenues 207.5 142.3 Revenue driven costs* 25.1 12.6 % out of revenue 12.1% 8.9% % out of Revenue excluding acquisitions in 2011 9.6% 8.9% • Comprises software (third party content and branded license fees) and services revenue driven costs • In line with previous guidance *PTTS on
Slide 16: Employee costs
€ in millions 2011 2010 Employee costs 64.3 39.6 % of total adj. operating costs excl. revenue driven costs 69.2% 68.9% Increase in total employee operating costs excluding 19.6% acquisitions in 2011 Rate of capitalised development costs 12.1% 16.5% Rate of capitalised development costs excl. acquis
Slide 17: Cash generation and investing activities
PTEC continues to be highly cash generative with a strong conversion rate from adjusted EBITDA Net cash from operating activities including from WHO – €109.4m Conversion rate from adjusted EBITDA – 87% Cash Used in investing activities: Acquisitions including earn‐out payments in 2011 ‐ €97.2m • PTT
Slide 18: Financing activities and cash contingencies
Cash generated in financing activities: Shares placing net proceeds‐ €117.5m • Withdrawal from credit facility‐ €27.4m • 2010 final dividend payment– €23.4m Existing cash contingencies include: • PTTS ‐ €95m + earnout of x7 2014 results (payable throughout 2015 and 2016) • Mobenga ‐ earnout of x6 20
Slide 19: Balance sheet
• Total net assets: €478.7m (2010: €300.0m) • Intangible assets: €365.2m (2010: €100.4m) • Net cash balances: €137.3m (2010: €68.5m) • Contingent and deferred consideration: €187.3m
Slide 20: Progressive dividend policy
• Progressive dividend policy • Target 40% pay‐out ratio • 1/3 interim, 2/3 final dividend payment structure. • Total payout of €47.7 million (2010: €46.1 million) despite change in policy € in millions 2011 2010 % Growth Adj. Basic EPS 46.2 38.5 20% Diluted Adj. EPS 45.7 37.1 23% DPS 16.5 19.0 Divi
Slide 21: Financial review summary
• Strong and continuing growth • Acquisitions performing ahead of management expectations • Strong balance sheet and cash resources • Progressive dividend policy
Slide 22: 2011 Review & Strategic Outlook
2011 REVIEW & STRATEGIC OUTLOOK a
Slide 23: Product developments in 2011
• IMS tools: MailQ, dashboard, quick‐deposit, chat alerts, regulated markets • Casino: launched over 50 new games, expanded 3rd party library • new branded content, Casino portal, enhanced open platform • Poker: innovative tournaments, lobby enhancements • Bingo: international expansion, branded & G
Slide 24: New licensees and new markets
New Licensees • 9 new licensees, +15 core product licenses • Major new land‐based: Gala, COPA, Gauselmann, Peermont, Caliente • Extensions of existing contracts: Betfair (Live) Paddy Power (casino), SNAI/SISAL (casino), Boylesports (casino) New Markets • Italy: new casino/ cash poker licensees • Spa
Slide 25: Organic growth
256 243.6 41.2 2.6 Organic growth 236 2011: 21.1% 2010: 14.6% 216 2009: 8.4% 6.8 1.0 196 5.3 21.7 5.9 8.1 18.0 173.1 176 8.1 165.0 8.3 156 11.7 22.5 0.3 137.3 136 8.9 116 105.6 96 GI 2008 Organic WHO GTS GI 2009 Organic Growth in VF GTS France GI 2010 France GI 2010 Organic Growth in VF GTS PTTS Oth
Slide 26: Acquisitions
• Intelligent Gaming: Land‐based casino monitoring • Mobenga: Mobile sports enabler • Ash Gaming: Casino games content • Geneity: Sports book developer Acquisitions bring substantial benefits to Playtech: • Unique single source supplier capability • Enhanced capabilities, speed to market • Additiona
Slide 27: Strategic and operational benefits of PTTS
Strategic • Delivered potential for turnkey and JV solutions • Gauselmann, Peermont; COPA • Unique breadth of operational and marketing expertise • Greater flexibility to access new markets Operational • Achieving operational efficiencies • Positive 6 months performance & trend • Preparing for more
Slide 28: Playtech competitive position
• One stop shop for industry leading products • Full range of products & services • Broad capability, unique cross‐platform revenue generation Delivery • Track record of successful acquisitions • Focus on regulated markets growth Financial Corporate • Balance sheet strength • Full List • Diversity o
Slide 29: ICE gaming exhibition, Jan 2012
ICE gaming exhibition, Jan 2012
Slide 30: 2012 full year impact
• Organic growth: typically above industry average • Extended branded games roll‐out programme • New licensees: across a range of markets/ geographies • Spain: regulated market launch in H1 2012? Full year impact: • PTTS: 12mth contribution vs 6mth in 2011 • Italian casino/ cash poker; plus slots in
Slide 31: William Hill Online partnership
• WHO delivering substantial value to both partners • Demonstrated potential from leveraging combined capabilities • PTEC: SOP €90m; total return €140m since 2009 (vs €180m investment) 2011 eGR Operator of the Year Award William Hill Online: Henry Birch, CEO PTEC: Liron Snir, Zohar Vaida
Slide 32: Strategy: three key themes
• Strategy focused on three key themes: • Products & Services • Turnkey solutions • Joint Ventures Acquisitions • Monitoring industry trends: social gaming; remote (mobile/tablets); utilities; and systems
Slide 33: Joint ventures
• Provides highly attractive access to dynamic new markets • Benefit of dedicated marketing expertise • Minimal cost pre‐regulation; initial marketing spend • Sustainable return opportunities as market matures • Royalties + equity return from contribution to value creation • Gauselmann: significant
Slide 34: US environment and Playtech response
Environment • State by state basis vs. federal • DoJ – significant milestone (Dec) • Limited group of suppliers with proven track record PTEC response • Dedicated team on the ground • Regulatory approvals process preparations • Strategic partnerships with significant US expertise • COPA progress
Slide 35: 2012 milestones and launches
£100m equity placing July 2012 Migration work Launch in regulated Mexican licence Denmark market Mobenga launches Sportsbet International rollout Play for fun launched Mobenga launches Italian casino/ cash WHO product poker networks Launch in Madrid region Casino launch
Slide 36: Current trading and outlook
• YoY: over 23% like‐for‐like growth • Daily average revenues first nine weeks vs. 2011 • Daily average vs Q4/11: over 5% ahead • Over 3% excluding Ash & Geneity Outlook • Board very confident for the year
Slide 37: Q&A