Slide 1: FY 2023 results
FY 2023 results 27 March 2024
Slide 2: Agenda
AGENDA 2 Mor Weizer Chief Executive Officer Highlights Chris McGinnis Chief Financial Officer Financial review and outlook Mor Weizer Strategic priorities Chief Executive Officer FY 2023 results
Slide 3: Highlights
Highlights 3 2023 performance ahead of expectations; on track to meet medium-term EBITDA targets • FY 2023 Adjusted EBITDA up 9% to €432 million, ahead of previously raised expectations • Performance driven by growth in regulated markets • B2B: Strong performance from Caliplay and significant progre
Slide 4: Financial Review and Outlook
Financial Review and Outlook Chris McGinnis Chief Financial Officer
Slide 5: Financial highlights
Financial highlights 5 Strong financial performance € millions1 FY 2023 FY 2022 FY 23 v FY 22 % • Group Adjusted EBITDA of €432m (+9% versus FY 2022), ahead of previously Group revenue 1,706.7 1,601.8 7% raised expectations Group Adjusted EBITDA2 432.3 395.4 9% • Resilient cash generation Group Adju
Slide 6: Summary by division
Summary by division 6 Solid performance across both the B2B and B2C divisions € millions FY 2023 FY 2022 FY 23 v FY 22 % Revenue 684.1 632.4 8% B2B: Adjusted EBITDA 182.0 160.2 14% • Regulated markets drove strong revenue growth B2B Adjusted EBITDA margin 26.6% 25.3% • Adjusted EBITDA margins benefi
Slide 7: B2B performance
B2B performance 7 Healthy growth in regulated markets, led by the Americas € millions • All regions in regulated markets saw FY 2023 FY 2022 FY 23 v FY 22 % FY 23 v FY 22 CC% growth on a constant currency basis Americas 211.9 144.7 46% 35% • The Americas was the biggest driver US and Canada 13.2 7.6
Slide 8: B2C performance
B2C performance 8 B2C growth powered by Snaitech Revenue Adjusted EBITDA € millions FY 2023 FY 2022 % FY 2023 FY 2022 % Snaitech1 946.6 899.8 5% 256.1 244.0 5% HAPPYBET 18.2 20.1 -9% (11.8) (10.8) n/a Sun Bingo and Other B2C 73.4 65.3 12% 6.0 2.0 200% Intercompany (1.2) (2.1) n/a - - n/a Total B2C 1
Slide 9: Snaitech performance
Snaitech performance 9 Snaitech saw good growth across retail and online € millions FY 2023 FY 2022 FY 23 v FY 22 % • Strong H1; H2 impacted by customer- Retail betting 214.2 186.6 15% friendly sporting results Gaming machines 447.1 447.0 0% • Online continues to benefit from strong Online 251.8 234
Slide 10: Net debt bridge from FY 2022 to FY 2023
Net debt bridge from FY 2022 to FY 2023 10 Strong balance sheet 350 Leverage Leverage Leverage 0.7x 0.7x 0.5x • Net debt remained broadly flat at end 300 275 54 283 of FY 2023 versus end of FY 2022 250 150 217 • Working capital impact from Caliplay 200 -66 situation is €66 million 150 • Prudent cash
Slide 11: Update on CFO priorities and priorities for 2024
Update on CFO priorities and priorities for 2024 11 Good progress made in FY 2023 around disclosure and cost efficiency; more to come in FY 24 Priorities discussed Progress made in FY23 Focus for 2024 12 months ago Improve cash generation, particularly in Excluding Caliplay impact, FCF generation Co
Slide 12: Outlook
Outlook 12 Focus on executing on growth opportunities; medium-term EBITDA targets reaffirmed • Solid start to trading in 2024, reflecting underlying growth trends • Medium term B2B and B2C Adjusted EBITDA targets reaffirmed: • B2B: Adjusted EBITDA target of €200 million to €250 million • B2C: Adjust
Slide 13: Strategic Priorities
Strategic Priorities Mor Weizer Chief Executive Officer
Slide 14: Playtech's medium term strategy on-track
Playtech’s medium term strategy on-track 14 Drive organic revenue growth and expand margins, supplemented by inorganic growth B2B B2C Be partner of choice for newly regulating markets Leverage retail presence to grow Snaitech’s online business Capitalise on Live and SaaS opportunities Optimise HAPPY
Slide 15: B2B strategy
B2B strategy 15 On track to meet medium-term EBITDA target of €200 million to €250 million B2B 1. Be partner of choice for 2. Capitalise on Live and 3. Realign resources to newly regulating markets SaaS opportunities reflect B2B growth areas Live • Regulated revenues grew +24% in FY 23 • Multi-year
Slide 16: B2B: Partner of choice for newly regulated markets
B2B: Partner of choice for newly regulated markets 16 Exposure to both fast-growing and more mature cash-generative markets MARKET GROWTH UNREGULATED REGULATED South Africa United States Poland Italy Canada Greece Sweden Spain Finland Netherlands France Germany United Kingdom POINT OF ONLINE LEGALIS
Slide 17: Executing on our US strategy to drive revenue growth
B2B: Partner of choice for newly regulating markets 17 Executing on our US strategy to drive revenue growth 2019 - 2021 2022 - 2023 2024 - 2025 Establishing presence Laying the foundations Execution and delivery Opened US office Signing tier 1 operators Built relationships Driving revenue growth Sec
Slide 18: Well positioned in Brazilian, Colombian and Canadian markets
B2B: Partner of choice for newly regulated markets 18 Well positioned in the attractive Brazilian, Colombian and Canadian markets • President signed in law new • Strong growth trajectory in • Online sports betting and casino legislation for online betting and Colombian market as players shift projec
Slide 19: B2B: Capitalise on Live opportunity
B2B: Capitalise on Live opportunity 19 Delivering good performance; more to come in the medium term driven by the Americas Good progress made in FY 2023; more to come in FY 2024 Investments in infrastructure and content continues • In regulated markets, FY 2023 revenues grew 24% • Over 350 tables no
Slide 20: B2B: Capitalise on SaaS opportunity
B2B: Capitalise on SaaS opportunity 20 On track to meet medium-term €60 – €80 million revenue target Robust technology and scalable business model Strong delivery in FY 2023 • SaaS initially focused on small brands • Firmly on track to meet medium term target with • Given technology has been proven
Slide 21: B2C Strategy
B2C Strategy 21 Leveraging our strengths to take advantage of organic and inorganic growth opportunities B2C 1. Leverage retail presence to 2. Optimise HAPPYBET 3. Targeted M&A to grow Snaitech’s online business for online expand Snaitech • New website to launch in early FY 24 • Losses narrowed in F
Slide 22: B2C: Leverage retail presence to grow Snaitech's online business
B2C: Leverage retail presence to grow Snaitech’s online business 22 Investing in the online segment to ensure advantage of retail footprint is fully utilised Advantages of a retail footprint on the online segment Investment in online continues Average GGR per customer € New website 2,000 • Customers
Slide 23: Snaitech M&A pipeline
Snaitech M&A pipeline 23 Opportunity to increase market share via bolt-on acquisitions Online: healthy M&A pipeline to drive capital deployment in FY 2024 at attractive EV/EBITDA multiples • Online concession tender: €7m expected per online licence, up from €250k currently; valid from 2025 for 9 yea
Slide 24: Sustainability underpins our strategy
Sustainability underpins our strategy 24 Progressing towards our 2025 sustainability commitments Protect People Planet Partnerships • SBTI Targets verified* >160,000 • Reduce Scope 1 & 2 People engaged Emissions: 16 in 9 50.4% by 2032; Brands Jurisdictions 90.0% by 2040 *Approved science-based emiss
Slide 25: Outlook and 2024 priorities
Outlook and 2024 priorities 25 Exciting year ahead, as Playtech looks to execute on multiple growth opportunities Work towards resolving the situation for the benefit of all parties Execute on existing partnerships; securing further platform deals Utilise first mover advantage to gain market share a
Slide 26: Appendix
26 Appendix
Slide 27: Snaitech online KPIs
Snaitech online KPIs 27 Number of yearly active accounts Average number of monthly active accounts 900,000 350,000 800,000 700,000 300,000 600,000 250,000 500,000 400,000 670,976 200,000 576,967 504,579 300,000 434,704 438,369 338,408 150,000 291,298 200,000 260,269 237,617 100,000 100,000 75,058 75
Slide 28: Snaitech retail KPIs
Snaitech retail KPIs 28 Number of active AWP machines Number of active VLT machines 40,000 12,000 35,000 10,232 10,254 10,031 10,214 10,024 9,938 5,632 10,500 6,184 30,000 7,183 8,211 9,421 6,516 9,000 25,000 20,000 7,500 15,000 31,693 30,016 6,000 25,497 26,571 26,255 25,963 10,000 4,500 5,000 3,00
Slide 29: HAPPYBET KPIs
HAPPYBET KPIs 29 Online Betting GGR (€ millions) Average number of monthly active accounts 3.50 4,500 3.00 4,000 3,500 2.50 3,000 2.00 2,500 1.50 2,000 3,944 2.8 2.4 1,500 2,941 1.00 1,000 0.50 500 - - 2022 2023 2022 2023 Retail Betting GGR (€ millions) Number of betting shops 25.0 140 120 20.0 100
Slide 30: Reconciliation of Snaitech's online margin
Snaitech online 30 Reconciliation of Snaitech’s online margin € millions FY 2023 FY 2022 % Online gross revenue 435.6 405.0 8% Gambling taxes (110.4) (106.8) 3% Bonuses (73.4) (64.0) 15% Online revenue (as reported) 251.8 234.2 8% Online Adjusted EBITDA 1 127.1 122.0 4% Adjusted EBITDA margin (gross
Slide 31: B2B cost breakdown
B2B cost breakdown 31 € millions FY17 FY18 FY19 FY 20 FY 21 FY 22 FY 23 Total Operations 157.2 150.8 181.2 214.5 256.2 285.3 296.9 Live operations 25.5 29.9 33.9 49.9 63.4 78.8 96.3 Structured agreement and managed services* 15.4 17.0 22.9 39.2 47.4 52.2 54.2 Other operations 108.0 97.2 93.2 105.5 1
Slide 32: B2B customer concentration
B2B customer concentration 32 B2B customer concentration FY 2023 FY 2022 Top 3 38% 33% Top 5 51% 42% Top 10 59% 55% Top 15 67% 63% FY 2023 results
Slide 33: Contingent consideration
Contingent consideration 33 Group Maximum payable earnout Contingent consideration Payment date (based on maximum Acquisition (per terms of acquisition) (as at 31.12.2023) payable earnout) Aus GMTC PTY Ltd €45.3 million €5.4 million Q4 2025 Other €0.8 million €0.8 million Various FY 2023 results
Slide 34: Thank you
34 Thank you