Entain PLC · LSE:ENT
Entain — GVC Holdings — Merger or Acquisition (December 2017)
17 slides from Entain's merger presentation, December 2017
Slide 1: Proposed Acquisition of Ladbrokes Coral Group plc
Click to edit Proposed Acquisition of Ladbrokes Coral Group plc Creating a leading global gaming company December 2017
Slide 2: Disclaimer
Disclaimer Click to edit IMPORTANT INFORMATION This presentation document, any related materials which are distributed alongside this presentation document, each of their respective contents, and any oral presentation made by or on behalf of GVC Holdings PLC (the “Company”) in relation to the subjec
Slide 3: Agenda
Agenda Click to edit Summary Possible offer summary Highly compelling strategic rationale Acquiring complementary market leader Diversified international group Rationale Leading online and retail group Exposure to largest global markets Proposed mechanics Refinanced debt facilities O
Slide 4: Possible offer summary
Possible offer summary Click to edit 0.141 New GVC Shares plus 32.7 pence in cash for each Ladbrokes Coral share, plus up to a further 42.8 pence by way of a Contingent Value Right ("CVR") linked to the outcome of the current Triennial Review - preserving value for Ladbrokes Coral shareholders a
Slide 5: Acquiring a complementary market leader
Click to edit Acquiring a complementary market leader
Slide 6: Highly compelling strategic rationale
Highly Click tocompelling edit strategic rationale Enlarged group will be a fast-growing, diversified, highly profitable, international online and retail sports betting led gaming company with >90% of NGR coming from locally regulated/ taxed markets Revenue and profit growth - Portfolio of stron
Slide 7: Acquiring a complementary market leader
Click to edit Acquiring a complementary market leader GVC Ladbrokes Coral Scalable and proven proprietary technology platform Strong progress post the bwin.party combination Leading UK bookmaker, with a strong online and Third largest online gaming operator in Europe retail presence Divers
Slide 8: A diversified international group, across Online and Retail
A diversified international group, across Online Click to and Retail edit GVC split of NGR by geography Ladbrokes Coral revenue split by channel Enlarged Group Total interactive (excluding lottery) #2 online operator FY16 NGR generated across over 30 countries >3,500 UK shops gross gaming reve
Slide 9: Leading online and retail group
Leading online and retail group Click to edit GVC NGR H1 17 €472.8m LCL NGR FY16 £2,352m Peer group NGR (£m) c.75% regulated/ 99.8% regulated NGR £3,500 regulating NGR1 £3,001 £3,000 28% 100% 72% £2,500 £2,352 Net Gaming Revenue £2,154 Regulated/ regulating Online £2,000 Unregulated Retail £1,604 £1
Slide 10: Exposure to the largest online markets globally
Click to to Exposure edit the largest online markets globally Enlarged Group exposure to online markets accounting for over €19bn of interactive global gross GVC gaming revenue (>50% total worldwide) LCL €6 €6.18 Total interactive (excluding lottery) gross gaming revenue (€bn) €5 GVC €4 LCL LCL €3 G
Slide 11: Proposed acquisition mechanics
Click to edit Proposed acquisition mechanics
Slide 12: Proposed mechanics
Proposed mechanics Click to edit Cash offer 32.7 pence in cash £632m + + Share offer 0.141 new GVC shares £2,477m1 + + Value linked to the outcome of the Triennial Review Ladbrokes Coral Group Shareholders will receive one CVR for each Ladbrokes Coral Group Share that they hold, and each CVR
Slide 13: Summary
Click to edit Summary
Slide 14: Refinanced debt facilities
Refinanced Click to editdebt facilities • On the back of solid H1 and Q3 2017 performance, attractive market conditions and Turkey disposal, GVC was able to reduce the margin on its Term Loan facility, raise an additional €50m and amend documentation to allow considerable additional operational and
Slide 15: Proven track record of shareholder returns
Click totrack Proven edit record of shareholder returns 3500 November 2017: Disposal of Turkish facing operations Sportingbet total shareholder return of 392% since acquisition bwin.party total shareholder return of 105% since acquisition 3000 February 2017: Refinancing July 2016: Notification o
Slide 16: Summary
Summary Click to edit Consistent with strategy to diversify and scale in regulated markets Creating a leading global gaming and betting company Diversified and complementary international revenue base Leveraging market leading and scalable technology Leading brands in core markets Clear focus on spo
Slide 17: Q&A
Click to edit Q&A