Slide 1: H1 2024 results
H1 2024 results 30 September 2024
Slide 2: Agenda
Ob AGENDA =e) (> Mor Weizer | Chief Executive Officer ra [> Chris McGinnis Sy Chief Financial Officer a; (==) [> Mor Weizer Chief Executive Officer Highlights Financial review and outlook Strategic priorities H12024 results
Slide 3: H1 2024 highlights
• Strong delivery in H1 2024 with Adjusted EBITDA up 11% to €243m • Performance driven by strong growth within the B2B division, in particular the Americas • Agreement reached on revised long term strategic agreement with Caliplay • Sale of , realising significant shareholder value with €1.7b - €1.8
Slide 4: Financial review and outlook
Financial review and outlook Chris McGinnis Chief Financial Officer
Slide 5: Group Adjusted EBITDA of €243m, up 11%
• Excellent financial performance with Group Adjusted EBITDA of €243m (+11% versus H1 2023) 906.8 859.6 5% • Cash generation reflects the situation before 243.0 219.9 11% revised terms agreed with Caliplay 26.8% 25.6% • Resilient balance sheet with leverage declining • On a proforma-basis, including
Slide 6: B2B strong growth driven by regulated markets
382.2 334.5 14% 112.3 81.3 38% • Strong growth driven by regulated markets 29.4% 24.3% • Adjusted EBITDA margin increased >500 bps driven by high operating leverage on strong 70.4 32.5 117% 1 revenue growth and prudent cost management 532.4 532.1 0% • Strong FCF generation 130.7 138.6 -6% 24.5% 26.0
Slide 7: B2B revenue by region: regulated markets strength
Americas 141.6 99.7 42% 37% • Continued strength in regulated markets US and Canada 13.3 4.0 233% 233% • Latin America the stand-out region driven by Caliplay Latin America 128.3 95.7 34% 29% • Increasing contribution from US and Canada Europe ex-UK 97.8 96.6 1% 0% • In Europe, good growth in Spain,
Slide 8: B2C results: Snaitech, HAPPYBET, Sun Bingo
Snaitech 483.6 488.4 -1% 135.0 141.9 -5% HAPPYBET 9.6 10.3 -7% -6.6 -6.1 n/a Sun Bingo and Other B2C 39.9 34.1 17% 2.3 2.8 -18% Intercompany -0.7 -0.7 n/a - - n/a • Snaitech performance impacted by customer-friendly sporting results. • HAPPYBET Adjusted EBITDA loss of €6.6 million includes a €2 mill
Slide 9: Net debt and leverage
Leverage Leverage Leverage • Leverage reduced to 0.5x in H1 2024 0.7x 0.5x 0.2x despite negative working capital 300 283 impact from Caliplay • On a proforma-basis adjusting for 250 22 226 cash received from Caliplay post- 71 period-end, leverage reduced to 0.2x 200 • Prudent cash management € milli
Slide 10: Focus for FY 2024 and capex guidance
Focus for FY 2024 Progress made in H1 2024 Focus for rest of 2024 Continued focus on FCF generation Excluding Caliplay impact, FCF generation Prioritising FCF generation in B2B across the Group has improved in B2B B2B EBITDA margin has improved >500bps, Cost efficiency remains a priority Ensure B2B
Slide 11: Rebasing the financial contribution from Caliplay
Impressive progress to date Rebasing the financial contribution from Caliplay ▪ Playtech will hold 30.8% equity in Cali Interactive, a new US-incorporated holding company, with right to receive dividends B2B Revenues from Mexico €m 183.0 ▪ Cash headwind of in FY 2025 123.7 • No longer receive the ge
Slide 12: Caliplay accounting and cash impact
Accounting impact Cash impact FY 2023 Comments € millions Old New Old New agreement agreement agreement agreement Revenue Excludes impact of additional flexibility for Caliplay Software and services 67 62 67 62 with revenue protection measures for Playtech $140 million in cash paid out over 4 years*
Slide 13: Outlook: B2B ahead of medium-term target range
• A solid start to H2 with normal seasonality • On track to deliver FY 2024 Adjusted EBITDA slightly ahead of expectations* • B2B ahead of schedule to hit Adjusted EBITDA medium-term target range of €200m to €250m in FY24 • SaaS ahead of schedule to hit its medium-term revenue target range • Strengt
Slide 14: Strategic priorities
Strategic priorities Mor Weizer Chief Executive Officer
Slide 15: 2024 priorities and progress to date
2024 Priorities Progress to date Resolve the situation Execution and delivery Position ourselves as the market regulates Partner with the largest operators
Slide 16: Snaitech acquisition, transformation and disposal
Acquisition Transformation Disposal Acquisition of Snaitech for €846m Shift from retail asset into a technology- Delivering significant shareholder value implying EV/EBITDA of 6.1x driven, omnichannel business Cash generation >3x initial investment Adjusted EBITDA (FY 2017) Adjusted EBITDA (FY 2023)
Slide 17: Partnering with great brands in regulated countries
Partnering with great brands… …utilising our market leading, innovative content… LIVE …in the most attractive regulated countries… …using value accretive business models Strategic agreements Conventional licences SaaS
Slide 18: Strategic agreements and equity stakes
▪ equity stake¹ ▪ H1 2024 ▪ FY 2023 ▪ Low single digit stake ▪ Leader in OSB in Florida ▪ 11 Studios ▪ equity stake ▪ >400 Live tables ▪ FY 2023 ² ▪ Nil cost option on ▪ equity stake ▪ equity stake 49% of equity ▪ FY 2023 ▪ Nil cost option on 40% of equity ¹ If the convertible debenture were to be c
Slide 19: B2B progress and SaaS growth
B2B • H1 B2B margin expansion of 510bps y/y to 29.4% • Regulated revenues grew +17% in H1 24 • Improved operational leverage supported by tighter • Expanding capacity of Live studios in US control and discipline on where costs are allocated • Live-streamed content from MGM LV gaming floors • Multi-y
Slide 20: Market growth and high-growth countries
Market growth Size of flags indicates the online market size based on Selection of high- Argentina GGR in 2024E growth countries Source: H2GC as of 29th August 2024 South Africa Colombia United States Brazil Poland Peru Mexico Sweden Greece Italy South Africa Canada Spain Netherlands France Germany
Slide 21: B2B: Revised strategic agreement with Caliplay
CO B2B: Revised strategic agreement with Caliplay 21 Setting the foundation for growth in both domestic and international markets ithe. Revised agreement draws a line under the Caliplay situation mt P (*) © Sets a strong foundation for the medium and long-term growth of the business Caliplay has mor
Slide 22: US execution and delivery phase underway
Execution and delivery phase is underway Exposure to the several operators in US 2019 - 2021 2022- 2023 2024 - 2025 US audience-tailored content for Live and Casino Significant investment means infrastructure in place ▪ 2 games ranked in Top 20 of Eilers-Fantini U.S. Online ▪ >270 employees in US as
Slide 23: Strong progress in H1 2024: Live content from Las Vegas
Strong progress in H1 2024 Pioneering Live content streamed from Las Vegas ▪ In regulated markets, H1 2024 revenues grew 17% ▪ Expanded with operators; new brands signed or launched ▪ Over 400 tables are now live ▪ Expanding capacity in each of the existing US Live studios “We scoured the earth look
Slide 24: ESG: SBTi targets and responsible gambling
• SBTi Targets validated* • Supporting player protection and • Reduce Scope 1 & 2 responsible gambling Emissions: 18 in 11 o 50.4% by 2032 o Net Zero by 2040 • Offering enhanced capabilities with v3.0 *The Science Based Targets initiative has validated that the science-based greenhouse gas emissions
Slide 25: Summary and conclusions
• Broad-based growth across B2B in H1, with a particularly strong contribution from the Americas • Revised strategic agreement with Caliplay provides greater certainty and a strong platform for growth • On track to meet medium-term EBITDA target range for B2B in FY 2024 • Disposal of Snaitech will r
Slide 26: Appendix
Appendix
Slide 27: Snaitech results
• Good growth in wagers in H1 2024 against a tough Retail betting 114.7 117.2 -2% comparative in H1 2023 Gaming machines 221.2 225.6 -2% • This was offset by customer-friendly sporting results Online 132.6 131.4 1% impacting both retail betting and online Other 15.1 14.2 6% • Gaming machines saw a s
Slide 28: Snaitech online gross to reported revenue
€ millions H1 2024 H1 2023 % Online gross revenue 223.1 223.8 0% Gambling taxes (52.8) (56.6) -7% Bonuses (37.9) (35.8) 6% Online revenue (as reported) 132.6 131.4 1% Online Adjusted EBITDA 66.6 68.7 -3% Adjusted EBITDA margin (gross) 29.8% 30.7% Adjusted EBITDA margin (as reported) 50.2% 52.3%
Slide 29: B2B costs
€ millions H1 20 H1 21 H1 22 H1 23 H1 24 Total Operations 85.4 119.5 146.1 148.6 155.1 Live operations 22.4 30.1 35.8 45.9 54.1 Structured agreement and managed services* 16.1 23.8 26.1 26.8 24.6 Other operations 46.4 62.5 78.7 71.4 72.7 Hardware costs 0.5 3.1 5.5 4.5 3.7 R&D 39.2 36.7 42.9 51.6 60.
Slide 30: B2B customer concentration
B2B customer concentration H1 2024 H1 2023 Top 3 40% 40% Top 5 46% 49% Top 10 58% 62% Top 15 65% 70%
Slide 31: Contingent consideration and earnouts
Maximum payable earnout Contingent consideration Payment date (based on maximum Acquisition (per terms of acquisition) (as at 30.06.2024) payable earnout) Aus GMTC PTY Ltd €46.7 million €5.7 million Q4 2025 Other €2.5 million €2.5 million Various
Slide 32: Thank you
Thank you