Slide 1: FY2023 Results Presentation
8388 BO 25 RESULTS DRE S ENTATION 26 MARCH 2024 HOLDINGS
Slide 2: Agenda
AGENDA Introduction 2023 financial review Strategy for success Value Creation Plan Summary Q&A Per Widerstrém (CEO) Sean Wilkins (CFO) Per Widerstrém (CEO) Sean Wilkins (CFO) Per Widerstrém (CEO) naa HOLDINGS
Slide 3: A New Chapter
A NEW CHAPTER ad HOLDINGS Building on key fundamental strengths with a clear Value Creation Plan to deliver high return on equity from sustainable profitable growth This is a business that has all the key ingredients for success... > World class brands. Iconic, globally recognised brands across both
Slide 4: A Series of Decisive Actions Already Taken
A SERIES OF DECISIVE ACTIONS ALREADY TAKEN ad HOLDINGS In my first 100 days | have injected a sense of urgency, and we are moving at pace to position the company for success > New executive team Reset the operating model including £30m cost optimisation program Strategic review of the US B2C busines
Slide 5: A New Management Team
A NEW MANAGEMENT TEAM thy) We have assembled a top-class management team and reset the “ren operating model to drive execution and deliver success &@@® Sean Wilkins Vaughan Lewis Harinder Gill Mark Skinner Fredrik Ekdahl Chief Financial Chief Strategy Chief Risk & Chief People Officer* Group General
Slide 6: A New Corporate Identity
A NEW CORPORATE IDENTITY te}? Proposed name change to evoke to reflect the exciting journey aheadas =?" one company e Proposed change of group name to evoke plc, subject to shareholder approval at upcoming AGM e Going by the name of our consumer brands does not accurately reflect the combined compan
Slide 7: A New Strategy for Success
A NEW STRATEGY FOR SUCCESS ad Clear vision of what does success look like and the strategy to get there “ren Make life more interesting Improve colleague Achieve medium-term Increase player days Promote positive play satisfaction financial targets Defining success To delight players with world-class
Slide 8: 2023 Financial Review
2025 FINANCIAL REVIEW SEAN WILKINS, CFO
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS aa} HOLDINGS Pro forma revenue down 8% but improved profitability meant Adjusted EBITDA down 1%, with leverage stable Reported to pro forma? Revenue bridge (£m) lem FY23—FY22_—YoY¥% FY23_ FY22__YoY% 6308 1,850.1 160 Revenue 1710.9 1,238.8 +38% 1,710.9 1,850.1 -8% 96.3 Adjusted E
Slide 10: FY 2023 Financial Results - Pro Forma
FY 2023 FINANCIAL RESULTS - PRO FORMA tee Regulatory headwinds and shift in marketing approach resulting in revenue "°°" -8%, but strong synergy delivery means Adjusted EBITDA -1% e UK Online: changing mix of the business towards lower- UK&l 1193.5 1,236.3 spending customers, and the short-term reve
Slide 11: Cash Flow
CASH FLOW £48m decrease in cash, with good underlying free cash flow conversion, th}? and non-core asset sales partially offsetting anticipated one-off costs FY23 movement in net debt (£m) 4,727.7 68.4 30.1 _13.1 || = (308.3) £165m underlying weeww= free cash flow generation Netdebt Adjusted Tax Net
Slide 12: Q1 2024 Trading Update
Q1 2024 TRADING UPDATE yy) re rs Q1 revenue expected to be c.£420-430m and no change to FY24 Adjusted "°"™ EBITDA expectations Q1 2024 Trading Update e Revenue expected to be approximately £420-430m!. Broadly stable sequentially and down mid-single digit year-over-year e Q1-24 still has some headwin
Slide 13: Financial Focus Areas
FINANCIAL FOCUS AREAS th}? Delivering strong return on equity through sustainable profitable growth “ren enhanced by deleveraging Cultural shift Optimal resource allocation Operating leverage e Restructured finance team and e Ensure we only spend where we e Operating leverage not a given, ways of wo
Slide 14: Strategic Framework
STRATEGIC FRAMEWORK PER WIDERSTROM, CEO
Slide 15: Delivering High Return on Equity
DELIVERING HIGH RETURN ON EQUITY aa} HOLDINGS Focus on driving execution to ensure operational excellence and deliver value creation Improve profitability and efficiency [J Deleverage through disciplined Drive profitable and sustainable revenue growth through operating leverage capital allocation e
Slide 16: A New Strategy for Success
A NEW STRATEGY FOR SUCCESS ad Clear vision of what does success look like and the strategy to get there “ren Make life more interesting Improve colleague Achieve medium-term Increase player days Promote positive play satisfaction financial targets Defining success To delight players with world-class
Slide 17: Introduction to the VCP
INTRODUCTION TO THE VCP teh) We have a strong platform for growth and will focus on driving significant ‘°™™ incremental value creation through consistent execution Illustrative and conceptual Accelerate organic and non- organic profitable growth by Sls - Step change value creation capitalising on f
Slide 18: Strategic Initiatives Drive Operational Excellence
STRATEGIC INITIATIVES DRIVE OPERATIONAL EXCELLENCE Driving operational excellence through a clear customer value proposition naa) HOLDINGS and strengthening our competitive advantages to drive profitable growth Customer Value Proposition © Clarity on how we win and retain customers across our brands
Slide 19: Strategic Initiatives Unlock Step Change Value Creation
STRATEGIC INITIATIVES UNLOCK STEP CHANGE VALUE CREATION tee Supporting delivery of operational excellence while preparing for step- “ren change value creation, building sustainable competitive advantages - Operations 2.0 Product and Tech Foundations (Al & Automation) e Platform integration for futur
Slide 20: Clear Market Focus
CLEAR MARKET FOCUS aa} Laser focused on our attractive Core Markets, which reflect 85% of total vores revenue, while optimising cash flow and returns from all other markets % FY23 % FY23 Objectives eo revenue contribution ONLINE ON! Optimise Denmark 15% 2% UK Retail Leading positions or 31% Core sig
Slide 21: Driving Successful Execution
DRIVING SUCCESSFUL EXECUTION Step-change in operational execution focus, relentlessly obsessed with delivery of value creation » Vv WT W ‘One Company’ programme management office to provide governance and support delivery and execution Reset ongoing operational and financial performance monitoring t
Slide 22: Value Creation Plan
VALUE CREATION PLAN SEAN WILKINS, CFO
Slide 23: Value Creation Plan
VALUE CREATION PLAN ++) HOLDINGS VCP drives significant revenue and EBITDA uplift in the medium-term, driven by step change in capabilities and operating excellence STRATEGIC INITIATIVES Improved capabilities: Revenue People, tools, product delivery, ROI focus Disciplined approach Supplier optimisat
Slide 24: Medium-Term Financial Targets
MEDIUM-TERM FINANCIAL TARGETS tee Bold medium-term targets to deliver high return on equity from sustainable "°°" profitable growth Drive profitable and sustainable revenue growth through operating leverage capital allocation 5-9% per year c.100bps per year <3.5x revenue growth EBITDA margin expansi
Slide 25: Summary
SUMMARY PER WIDERSTROM, CEO
Slide 26: Summary
SUMMARY tee Business reset, with new team and plans to deliver high return on equity “ren from sustainable profitable growth, driven by laser focus on execution How we will drive execution Where we will do this e Drive profitable and sustainable e First-class and consistent Core markets revenue grow
Slide 27: Q&A
=0. DINGS Q&A PRESENTERS
Slide 28: Appendix
HOLDINGS
Slide 29: 2024 Technical Guidance
2024 TECHNICAL GUIDANCE aaa Reinvesting efficiency savings to drive growth “ren Group Cashflow e 5-9% mid-term revenue growth e Capex of c.£75-80m, including investment in strategic initiatives e Adjusted EBITDA margin improvement of e One-offs: c.lO0bps per year e Cost to achieve savings and except
Slide 30: Debt Structure
DEBT STRUCTURE the? Long-term debt structure that is hedged against FX and interest rate risk = "°"® Effective exposure Maturity profile’ Interest rates 20 £505m £1im 2023 2024 2025 2026 2027 2028 MTLA(E€) =TLB(S) !\Fixed notes (€) =Floatingnotes (€) ™ WH Bonds (£) = Fixed = Floating =GBP =EUR USD e
Slide 31: Debt Facilities
DEBT FACILITIES aa] Long-term debt structure with sufficient flexibility to support plans “ene William Hill bonds £11m £11m Fixed coupon 4.75% 475% 2026 TLB (USD) $407m GBP £320m 10.36% 10.36% 2028 Fixed notes (EUR) €582m EUR & GBP £505m 8.39% 8.39% 2027 Floating notes (EUR) €450m EUR & GBP. £390m 9
Slide 32: FY23 Financial Results - Reported
FY23 FINANCIAL RESULTS - REPORTED On a reported basis we saw significant changes across most metrics, due teh) HOLDINGS to the inclusion of William Hill results, which completed on 1 July 2022 | émilions | rvas_ | rv22 Revenue Gross profit Adjusted EBITDA Share benefit charges Exceptional items Fair
Slide 33: Exceptional Items and Adjustments
EXCEPTIONAL ITEMS AND ADJUSTMENTS t}}) HOLDINGS, | emilions | yas rv Key FY23 items: Retroactive duties and associated charges - G9) - e Regulatory provisions reflects regulatory settlement in eel tetany preristens a4 Gibraltar related to Middle East compliance Integration and transformation costs 4
Slide 34: Unaudited Pro Forma by Segment
UK&I Online Retail International Group Unaudited pro forma FY FY % FY FY % FY FY % FY FY % £m 2023 2022 Change 2023 2022 Change 2023 2022 Change 2023 2022 Change Average monthly actives (000s) 1,210 1,087 +11% 519 530 -2% 1,728 1,617 +7% Sportsbook stakes 2,594.6 3,050.2 -15% 1,629.3 1,646.7 -1% 1,1
Slide 35: Unaudited Pro Forma - Group
Unaudited pro forma - Group 2022 2023 £m Q1 Q2 Q3 Q4 H1 H2 FY Q1 Q2 Q3 Q4 H1 H2 FY Average monthly actives (000s) 1,639 1,654 1,517 1,657 1,647 1,587 1,617 1,731 1,788 1,648 1,746 1,760 1,697 1,728 Sportsbook stakes 1,623.4 1,557.6 1,360.0 1,519.4 3,181.0 2,879.4 6,060.4 1,427.2 1,388.1 1,249.2 1,30
Slide 36: Unaudited Pro Forma - UK&I Online
Unaudited pro forma - UK&I Online 2022 2023 £m Q1 Q2 Q3 Q4 H1 H2 FY Q1 Q2 Q3 Q4 H1 H2 FY Average monthly actives (000s) 1,090 1,137 1,014 1,106 1,114 1,060 1,087 1,172 1,275 1,186 1,206 1,223 1,196 1,210 Sportsbook stakes 837.3 795.1 674.5 743.3 1,632.4 1,417.8 3,050.2 694.8 690.1 607.0 602.7 1,384.
Slide 37: Unaudited Pro Forma - UK Retail
Unaudited pro forma - UK Retail 2022 2023 £m Q1 Q2 Q3 Q4 H1 H2 FY Q1 Q2 Q3 Q4 H1 H2 FY Sportsbook stakes 405.5 436.2 379.6 425.5 841.7 805.1 1,646.7 411.1 434.9 394.0 389.3 846.0 783.3 1,629.3 Sportsbook net revenue margin 18.3% 17.8% 18.5% 16.3% 18.0% 17.3% 17.7% 19.8% 18.8% 17.9% 18.9% 19.3% 18.4%
Slide 38: Unaudited Pro Forma - International
Unaudited pro forma - International 2022 2023 £m Q1 Q2 Q3 Q4 H1 H2 FY Q1 Q2 Q3 Q4 H1 H2 FY Average monthly actives (000s) 549 517 503 551 533 527 530 559 513 461 540 536 501 519 Sportsbook stakes 380.6 326.3 305.9 350.7 706.9 656.6 1,363.5 321.3 263.2 248.2 317.0 584.4 565.3 1,149.7 Sportsbook net r
Slide 39: UK&I Online Revenue Evolution
UK&l ONLINE REVENUE EVOLUTION Safer gambling and marketing changes as we improve the mix of the business to a more sustainable recreational base £255m = £252m £201m £146m £145m £128m £109m fig £107m £73m Qi 2021 Q2 2021 Q3 2021 £190m £127m £64m Q4 2021 UK Online quarterly revenue £183m £188m £174m =
Slide 40: UK Retail Revenue Evolution
ry > UK RETAIL REVENUE EVOLUTION aad Continued robust results across a well optimised estate, with slightly fewer "°°" shops still delivering good topline performance £140m £140m £134m “ £121m £124m £125m £129m £124m 126m £150m £58mpm 58m] a £87m £85m 2) e55m—me som £33m| £35m| £71m 70m £81m 9 82m 7
Slide 41: International Online Revenue Evolution
INTERNATIONAL ONLINE REVENUE EVOLUTION Large step down from Feb-23 driven by compliance changes in dotcom markets International quarterly revenue £186m £172m £159m —gis4m 157M gt52m ~—sg15Im —s«£154m £140m £126m ern ci36m £133m 131 aky] £127 £131m m fi £129) £128 m m m 114m HM cio2m £39m £36m £27m £
Slide 42: Disclaimer
DISCLAIMER tee HOLDINGS Forward looking statements © This presentation may contain certain forwarc-looking statements, beliefs or opinions, with respect to the financial condition, results of operations and business of the Company. These statements, which contain the words ‘anticipate’, ‘believe’, ‘
Slide 43: HOLDINGS
HOLDINGS corporate.888.com