Codere Online Luxembourg, S.a. · NASDAQ:CDRO
Codere Online Luxembourg — Q4 2021 Earnings Presentation
31 slides from Codere Online Luxembourg's earnings presentation, Mar 31, 2022
Slide 1: Fourth Quarter and Full Year 2021 Earnings
Codere Online Nasdaq: CDRO / CDROW Fourth Quarter and Full Year 2021 Earnings March 31, 2022
Slide 2: Disclaimer
Disclaimer This presentation (this “Presentation”), its contents and any information provided during the meeting to present this document are for discussion purposes only, and must not be relied upon for any purpose. This Presentation is not for release, publication or distribution, in whole or in p
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) Financial Information and Non-GAAP Financial Measures Codere Online’s financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”), which can differ in certain significant respec
Slide 4: Today's Presenters
Today’s Presenters Moshe Edree Oscar Iglesias CEO CFO
Slide 5: Table of Contents
Table of Contents 1. Corporate Overview Page 6 2. Financial Results Page 12 3. Strategic Outlook Page 20 4. Appendix Page 26 Corporate presentation 5
Slide 6: Codere Online At a Glance
Corporate Overview 1. Codere Online At a Glance Codere Online offers online sports betting and online casino through its state-of-the art website and mobile applications. It is Nasdaq listed under symbol CDRO, and majority-owned by Codere Group. Codere Online launched operations in 30+ Codere Group
Slide 7: Business Combination Overview
Corporate Overview 1. Business Combination Overview Key Transaction Terms Sources and Uses ($ mm) On November 30, 2021, Codere Online completed its business combination Sources Uses with DD3 Acquisition Corp. II. SPAC Cash in Trust(1) 49 Cash to Balance Sheet 103 $49 mm of SPAC cash in trust(1)
Slide 8: Accretive Omnichannel Opportunity
Corporate Overview 1. Accretive Omnichannel Opportunity Codere Omnichannel Strategy Cross-selling and coordinated promotional campaigns leveraging our online and Codere Group’s retail customer databases Enhanced payment processing options via Codere Group’s retail locations (cash deposits & withdraw
Slide 9: 2021 Highlights
Corporate Overview 1. 2021 Highlights Strong operating results and well positioned for next phase of growth Revenue Consolidated Net Gaming Revenue (NGR) of €83(1) mm in 2021 (+17%) Growth and in line with the outlook provided in October 2021 Operating 228k First Time Deposits (+51%) at a Cost per A
Slide 10: 2021 Selected Operating and Financial Results
Corporate Overview 1. 2021 Selected Operating and Financial Results Strong operating results despite regulatory headwinds in Spain and significant opportunity ahead through further deployment of omnichannel strategy Selected Key Performance Indicators Net Gaming Revenue by Product 475k+ New Registra
Slide 11: Table of Contents
Table of Contents 1. Corporate Overview Page 6 2. Financial Results Page 12 3. Strategic Outlook Page 20 4. Appendix Page 26 Corporate presentation 11
Slide 12: Consolidated Net Gaming Revenue and Adj. EBITDA
Financial Results 2. Consolidated Net Gaming Revenue and Adj. EBITDA(1) 17% NGR increase in 2021, mainly driven by strong performance in Mexico and despite regulatory headwinds in Spain Quarter Full Year Net Gaming Revenue Figures in EUR mm % Change Figures in EUR mm % Change Q4-19 Q4-20 Q4-21 20 /
Slide 13: Consolidated Income Statement
Financial Results 2. Consolidated Income Statement(1) 2021 was a transition year for Codere Online but the table is set for significant growth in the years ahead Quarter Full Year Consolidated Income Statement Figures in EUR mm Change Figures in EUR mm Change Q4-20 Q4-21 % 2020 2021 % Net Gaming Rev
Slide 14: Consolidated Financial and Operating Metrics
Financial Results 2. Consolidated Financial and Operating Metrics(1) Significant increase in FTDs driving strong growth in Avg. Monthly Actives Net Gaming Revenue FTDs - 48% 12% 21% EUR mm # 22.3 22.2 64,359 20.5 20.7 19.8 57,588 53,094 18.9 52,888 16.3 41,952 43,450 13.9 34,538 30,510 Q1-20 Q2-20 Q
Slide 15: Spain Financial and Operating Metrics
Financial Results 2. Spain Financial and Operating Metrics 2021 performance negatively impacted by new restrictive marketing regulation since May, but improving operating results in Q4 Net Gaming Revenue -13% 3% 8% EUR mm EUR mm 14.4 48.3 49.8 12.3 13.0 12.6 12.6 11.2 11.6 10.3 Q1-20 Q2-20 Q3-20 Q4-
Slide 16: Mexico Financial and Operating Metrics
Financial Results 2. Mexico Financial and Operating Metrics Strong operating performance with NGR and Avg. Monthly Actives increasing significantly into year end Net Gaming Revenue 38% 13% 11% EUR mm EUR mm 7.9 27.9 7.0 6.4 6.4 7.1 5.6 20.2 4.5 3.1 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 202
Slide 17: Colombia Financial and Operating Metrics
Financial Results 2. Colombia Financial and Operating Metrics Significant increase in NGR (81%) and Avg. Monthly Actives (125%) in 2021 Net Gaming Revenue 95% 81% 67% EUR mm EUR mm 1.4 1.5 4.6 0.8 0.8 0.9 2.5 0.7 0.5 0.5 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 2020 2021 Avg. Monthly Actives
Slide 18: Consolidated Balance Sheet, NWC and Cash
Financial Results 2. Consolidated Balance Sheet, NWC and Cash Over $100 mm available at year end, with no financial debt and a normalized level of net working capital Balance Sheet (Dec-21) Net Working Capital (NWC) Accounts Payable, Net Figures in EUR mm Figures in EUR mm Figures in EUR mm (-) A/P
Slide 19: Table of Contents
Table of Contents 1. Corporate Overview Page 6 2. Financial Results Page 12 3. Strategic Outlook Page 20 4. Appendix Page 26 Corporate presentation 19
Slide 20: Framing the Latin America Opportunity
Strategic Outlook 3. Framing the Latin America Opportunity Latin America expected to represent next wave of strategic focus for the global gaming industry with ~8x revenue growth by 2027 Online Sports Betting and Online Casino Market Size / TAM (Regulated Only)(1) United Kingdom(2) Pop.: 67mm GDP: €
Slide 21: Market Overview - Online B2C (LatAm)
Strategic Outlook 3. Market Overview - Online B2C (LatAm) Mexico, Colombia, Argentina and Panama today represent over 80% of the LatAm market but will only represent approximately 60% by 2024 and 50% of the overall TAM (2027), with the expected regulation of gaming in Brazil, which alone is expected
Slide 22: Strategic Priorities
Strategic Outlook 3. Strategic Priorities In early February 2022, our Board of Directors approved our Strategic and Operating Plan for 2022-24, based on the following main pillars: 1. Execute on our Core Market operating plan. i. Drive revenue growth ii. Increase brand recognition iii. Increase mark
Slide 23: Net Gaming Revenue Outlook
Strategic Outlook 3. 3 Year Net Gaming Revenue (NGR) Over the following three years, we are targeting average annual Net Gaming Revenue growth (Core Market only) in excess of 30% and to be EBITDA and cash flow positive by 2024. Historicals(1) Outlook 3Y CAGR: 34% 2Y CAGR: 36% 38%(2) EUR mm 110- 120
Slide 24: Questions & Answers
Questions & Answers
Slide 25: Table of Contents
Table of Contents 1. Corporate Overview Page 6 2. Financial Results Page 12 3. Strategic Outlook Page 20 4. Appendix Page 26 Corporate presentation 25
Slide 26: Market Overview – 2020E
Appendix 4. Market Overview – 2020E (1,2) In 2020, the regulated B2C online gaming market (excluding lotteries) was approximately EUR 43 bn (less than 15% of the total global gaming market), of which about 70% (EUR 30 bn) was online sports betting with the remaining 30% (EUR 13 bn) online casino. Gl
Slide 27: Market Overview - Online B2C
Appendix (1) 4. Market Overview - Online B2C The U.S. and LatAm represent just 6% (EUR 3 bn) and 1% (EUR 0.6 bn), respectively, of the current global regulated B2C online gaming market (excluding lotteries); notwithstanding, in terms of total addressable market (TAM), they are expected to grow to 23
Slide 28: Hispanic Market Opportunity in the US
Appendix 4. Hispanic Market Opportunity in the US Hispanic Expected Date 2027E Market LatAm experience as foundation for future Population (mm)(1) of Regulation(2) Size ($mm)(2) potential success in US Hispanic market: California 15.3 2023 253 ‒ Soccer-first focus of sports betting business levera
Slide 29: Net Gaming Revenue and Adj. EBITDA Reconciliation
Appendix 4. Net Gaming Revenue and Adj. EBITDA Reconciliation GAAP Figures in EUR mm measure 2019 2020 2021 Net Gaming Revenue (inc. Greenplay) 63.5 73.8 84.3 (-) Greenplay(1) (0.5) (2.5) (1.1) Net Gaming Revenue 63.0 71.3 83.2 (2) (-) Accounting Adjustments (1.4) (0.8) (3.2) Accounting Revenue 61.6
Slide 30: Defined Terms
Appendix 4. Defined Terms Avg. Monthly Actives : Average number of customers who placed a real money bet (i.e. excludes free bets) in a given month. Conversion Rate: Number of FTDs in a given period divided by the number of new registrations during the period. Cost Per Acquisition (CPA): Direct Mark
Slide 31: Codere Online Investor Relations
For additional information, please contact: Codere Online Investor Relations codereonline.com ir@codereonline.com
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