William Hill — H1 2020 Earnings Presentation
25 slides from William Hill's earnings presentation, Aug 5, 2020
Slide 1: A financial and operating platform for growth, 26 weeks ended 30 June 2020
Year 2020 A financial and operating platform for growth, 26 weeks ended 30 June2020. 4 WUUA.\\\" SPORTS BOOK
Slide 2: Disclaimer
Disclaimer William Hill PLC Cautionary note regarding forward-looking statements This presentation has been prepared by William Hill PLC (“William Hill”). It includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the
Slide 3: Strong first half performance
Strong first half performance Positive trading momentum and strategy execution Increased velocity in delivery of new product and technology Focused on safety and wellbeing of customers and staff Tangible benefits of our strategy reflected across the group Trading bounced back — repaying UK furlough
Slide 4: Financial review
/ Gtr AL Financial review Matt Ashley, CFO
Slide 5: Financial Overview
Financial Overview Half year results encouraging Adjusted EBIT - £12m (H1 2019: £76m) Statutory retained profit - £116m (H1 2019: Loss £61m) Operating cash flow - £37m (H1 2019: £72m) Balance sheet strengthened; >£400m proceeds from placing and recognition of VAT refund Net debt/EBITDA (for covenant
Slide 6: Revenue progression: strong recovery
Revenue progression: strong recovery Operating performance: 26 weeks to 30 June 2020 In GBP Pre-UK lockdown Lockdown Lockdown Post-UK lockdown Total net revenue Weeks 1-10 Weeks 11-17 Weeks 18-23 Weeks 24-26 5 4 a 4 Weeks 1-26 igrowth (YoY) Pre-Coronavirus Coronavirus Coronavirus Coronavirus Online
Slide 7: Group income statement — a profitable period
Group income statement — a profitable period 26 weeks ended 30-Jun-20 26 weeks ended 02-Jul-19 Adjusted Exceptional Statutory Adjusted Exceptional Statutory items & items & adjustments adjustments £m £m £m £m £m £m Net revenue 554.4 - 554.4 811.7 - 811.7 Cost of sales (140.2) 230.3 90.1 (197.2) - (1
Slide 8: Group income statement — a profitable period
Group income statement — a profitable period 26 weeks ended 30-Jun-20 26 weeks ended 02-Jul-19 Adjusted Exceptional Statutory Adjusted Exceptional Statutory items & items & adjustments adjustments £m £m £m £m £m £m Profit/ (loss) before interest 18 1367 148.5 76.2 (14.3) (38.1) and tax Net finance c
Slide 9: Group cash flow — generating cash from operations
Group cash flow — generating cash from operations H1 2020 H1 2019 £m £m Adjusted operating profit 11.8 76.2 Non IFRS 16 depreciation and amortisation 417 40.6 EBITDA exc. IFRS 16 53.5 116.8 IFRS 16 depreciation (ie. rent) 18.2 221 > EBITDA positive before and after IFRS 16 EBITDA inc. IFRS 16 71.7 1
Slide 10: Group cash flow — stable leverage
Group cash flow — stable leverage H1 2020 H1 2019 £m £m Free Cash Flow (8.5) 12.9 Eat lacing ee = Pein tna dn Debt financing 1.6 170.5 down of RCF Disposals (Northern Ireland & Isle of Man) 9.4 2.1 Mr Green acquisition - (170.0) Dividends - (67.7) Other (8.9) (24.9) Net funds flow 212.2 (77.1) Net d
Slide 11: Financial Outlook — non operating cash flows
Financial Outlook — non operating cash flows Due to the uncertainties COVID-19 has created, guidance has not yet been re-instated. However, the following material non operating cash flow information is provided £m VAT refund recognised 201.6 Deferred gaming duty — H1 expense (44.5) Furlough repaymen
Slide 12: Summary
Summary Strong current trading and cash generative in July Online growth Swift recovery of Retail Resumption of US sports and new state launches imminent Robust balance sheet; no near term maturities PPT ee? Resources to invest in technology and marketing, especially in US Financially positioned for
Slide 13: Strategic highlights and the US opportunity
/ ite AL Strategic highlights and the US opportunity Ulrik Bengtsson, CEO
Slide 14: Our Strategy
Our Strategy Our straightforward operational framework
Slide 15: Delivering the strategy
Delivering the strategy Competitive technology and product growth. Increasing scale and international diversification A period of strong execution Enhancing the product and the team rr? Supporting our customers and colleagues Financing our growth ambitions Long term sustainable growth 15
Slide 16: World-class team
World-class team Decentralised, empowered and aligned to our strategic priorities Talented and highly engaged; eNPS has never been higher Removed internal complexity and decentralised responsibility to enable agility and collaboration Reshaped leadership team, adding capability across the business r
Slide 17: Purpose and culture
Purpose and culture Bringing sport and gaming to life in a trusted and supportive environment We provide a powerful way for friends to engage with sports and each other Customer engagement is facilitated through our innovative product rr? Resulting in a robust, responsible gambling environment Trust
Slide 18: Building a technology enabled global gambling company
Building a technology enabled global gambling company Technology and product development now a global function “ey . Modular, componentised, proprietary rN Smarter, faster, integrated customer tech stack Se eae experience Reacting quickly to changing regulation and new market openings Blending custo
Slide 19: The technology to deliver exceptional product
The technology to deliver exceptional product Enhancing the customer experience through continuous innovation Online speed and performance Simplified experience d lisati Enhanced player safety Increased personalisation measures > UK closing in rapidly on the top competitors — NPS and CSAT increasing
Slide 20: Merging UK Online and Retail — compelling strategic rationale
Merging UK Online and Retail — compelling strategic rationale Improved customer connectivity Resulting in: Consolidation of retail customer base = Increase capture rate between retail and online Marketing efficiency Enhanced product suite and promotion Significant cost and efficiency measures Simpli
Slide 21: Capitalising on our US position
Capitalising on our US position Capturing the benefits of valuable partnerships CAESARS SPORTS BOOK BY Willan. _— Immediate access to Caesars’ 29 live mobile and retail sports books, giving us estimated 29% market share SPORTS BOOK Market leading access to 25 states, reaching a population of more th
Slide 22: Unrivalled market access
Unrivalled market access Live Access Secured 22
Slide 23: Confident in our US position
Confident in our US position Technology; proprietary, flexible and scalable fae Market access; the broadest footprint with access to 25 states Media; Exclusive CBS Sports partnership, providing efficient customer acquisition Fantasy database; through our exclusive partnership with CBS Sports © R | :
Slide 24: Summary
Summary H1 surpassed our expectations, recovery has been very encouraging Competitive product and technology gaining traction with our customers Strengthened financial position The opportunity to invest in the US is now ial and operating platform for growth 24
Slide 25: Wli770 MA.
Wli770 MA.