Slide 1: Full Year 2014 Results
Full Year 2014 Results 26 February 2015
Slide 2: Agenda
Highlights: | &inancial Review : Alan Jackson Chairman ‘SOURCE OF SUCCESS
Slide 3: Highlights
● Outstanding financial performance for the year ● Total revenue up 24% ● Adj. EBITDA up 30% ● Adj. net profit up 29% ● Adj. EPS up 28% ● Strong underlying growth ● Significant cash balance to deploy for M&A and further investment in the business ● Total 2014 dividend of 26.4 euro cents per share ●
Slide 4: Agenda
Financial Review : Ron Hoffman CFO ‘SOURCE OF SUCCESS
Slide 5: Results Summary
● Key drivers in 2014: ● The continued organic growth of the business ● Acceleration of growth with new business being focused on regulated revenue streams ● The continued growth trajectory in mobile ● Significant growth in sports ● Focus on structured agreements ● Faster growth in regulated jurisdi
Slide 6: Results Summary
500 450 400 350 300 250 200 @ 2013 150 100 457.0 367.2 @ 2014 190.8 159.4 148.3 50 0 Total Revenue Adj. EBITDA Adj. Net Profit +24% +30% +29% tons € Mill Results Summary eo playtedi,
Slide 7: Underlying Results – excluding acquisitions
* Excluding prior year adjustments Underlying Results – excluding acquisitions
Slide 8: Revenue Bridge
73.6 16.2 4% 367.2 20% Revenue Bridge
Slide 9: Underlying Revenue Bridge
27.1 46.5 8% 354.2 13% Underlying Revenue Bridge
Slide 10: Revenue Organic Growth - Regulatory Split
Revenue Organic Growth - Regulatory Split
Slide 11: Revenue Breakdown
244.2 189.2 132.8 111.1 18.5 17.5 17.1 26.3 4.4 5.8 14.7 13.8 12.3 16.6 Poker, bingo & sport line items exclude casino side games contribution which are reported under the casino line item Revenue Breakdown
Slide 12: Revenue Breakdown
Poker, bingo & sport line items exclude casino side games contribution which are reported under the casino line item Revenue Breakdown
Slide 13: Casino Bridge
Casino Bridge eplaytech.
Slide 14: Mobile Penetration
2013 2014 % Product Vertical (in €m) (in €m) Growth Casino 12.7 23.7 84% Sports 14.7 22.2 51% Bingo 2.0 2.4* 21% Poker - 0.2 - Total 29.4 48.5 64% *Affected negatively by certain commercial changes Mobile Penetration
Slide 15: Mobile Penetration
2013 2014 % Product Vertical (in €m) (in €m) Growth Casino 105.1 23.7 84% Web Sports 23.3 22.2 51% Mobile Bingo 17.7 2.4* 21% Poker - 0.2 - Total Mobile Penetration
Slide 16: The Mobile Effect & Growth Potential
Case study on mobile casino in the UK Market Web Mobile UK Market European Market (w/o UK) Rest of World Organic activity in the UK market: Web growth (2014 vs. 2013) : Flat Mobile growth (2014 vs. 2013) : +74% Presenting a significant growth potential on Significant incremental top of continued pen
Slide 17: Customer Concentration
30 2 25 FY13 FY14 © 20 27 Top 2 licensees 35% 28% = 15 Top 5licensees 54% 53% # 40 16 Top 10 licensees 69% 74% 5 Top 15 licensees 77% 81% 0 Licensees > €5.0m revenues Licensees > €2.0m revenues Customer Concentration eplayte.
Slide 18: Analysis of Costs and Expenses
€m 2013 2014 Adj. operational costs 207.8 249.8 Revenue-driven costs 37.9 10.3% 37.5 8.2% Adj. operating expenses exc. revenue-driven costs 169.9 212.3 Employee-related costs 105.1 61.9% 133.0 62.7% Cost of services 23.3 13.7% 32.8 15.4% Administration and office costs 17.7 10.4% 22.8 10.7% Travel,
Slide 19: Adjusted EBITDA Margin
● Adj. EBITDA margin up 190bps ● Increase due to: ● Reduced revenue driven costs ● Tight control on administrative costs ● The appreciation of sterling versus euro ● Acquisitions ● Other *Adj. EBITDA excluding WHO SOP 2013 Adjusted EBITDA Margin
Slide 20: Summary Cash Flow
€m 2013 2014 Cash from operating activities 193.2 220.8 Net proceeds from sale of WHO stake WHO and dividends received from WHO 514.7 - Cash outflow from investing activities* (171.7) (129.2) Acquisition of subsidiaries (net of cash acquired) (128.9) (43.4) Investment in equity-accounted associates
Slide 21: Total Dividend Per Share
FY13 FY14 Total Dividend Per Share
Slide 22: Total Dividend Per Share
30% GROWTH *Performa 2013 total dividend based on the dividend policy excluding William Hill Total Dividend Per Share
Slide 23: Balance Sheet Highlights
Cash balances €692.3 million (31 December 2013: €527.4m) Total assets €1.254 billion (31 December 2013: €1.066bn) Total equity €873.2 million (31 December 2013: €921.0m) ● Strengthened by convertible bond issue ● Immaterial level of deferred consideration Balance Sheet Highlights
Slide 24: Agenda
Financial Strategic Review : Review : Mor Weizer CEO ‘SOURCE OF SUCCESS
Slide 25: Strategic Highlights - 2014
● Execution of strategy H1 ● securing delivery of H2 growth and beyond ● strong organic and new business growth ● strong momentum of new licensees ● Improvement of regulated income ● Full migration of Ladbrokes onto the Playtech platform ● Roll-out of Omni-Channel solution for Gala Coral ● Roll-out
Slide 26: Simplicity is the ultimate sophistication
“ Simplicity is the ultimate sophistication Leonardo da Vinci ” Holistic Approach
Slide 27: Player Experience
● Moving from product silos, to a more integrated approach, focused on the offering to customers and their journey ● improved player environment and experience – seamless and intuitive ● agnostic to channels/platforms/products ● taking licensees to market faster Player Experience
Slide 28: Playtech ONE - Omni-Channel Strategy
● No jargon or hype ● Significant sales potential ● Simultaneous game release ● Ocean-wide gap between Playtech and other players Playtech ONE - Omni-Channel Strategy
Slide 29: Retail Channel
● Full A-Z sports offering ● Investment into a leading, multi-national, sports betting supplier for retail/online ● Retail specific games development studio ● Entered two new VLT markets, becoming the #1 supplier ● All fully integrated with online/mobile Retail Channel
Slide 30: Casino
● Industry-leading mobile-first offer ● Best performing titles; increased games development pipeline ● Innovation at the heart of performance ● State-of-the-art, multi-channel, flexible Live dealer offering Platform of the Year 2015 (eGaming Review) Software Supplier of the Year (International Gamin
Slide 31: Sports
● Continued strong double digit growth ● Next generation Omni-Channel sportsbook solutions ● Replaces obsolete technology and systems ● Game-changing player segmentation and personalisation tools ● Significant opportunity to use sport to break into new markets Sports
Slide 32: Bingo
● World’s largest bingo network ● Widest selection of multi-channel, mobile-first games and side games ● Complete end-to-end operational management, inc. white label ● Industry-leading, award-winning mobile products Bingo Supplier of the Year 2015 (Gaming Intelligence) Best Bingo Product and Best Bi
Slide 33: Poker
● Large independent network ● Continued innovation, including mobile ● significant increase in operator player acquisition ● positive initial feedback from new rake distribution ● Seamless user experience across all devices and platforms Poker Supplier of the Year 2015 (Gaming Intelligence) Poker
Slide 34: Services
● New turnkey licensees in Mexico, Italy and UK ● Strong momentum in other jurisdictions ● Delivers player acquisition and retention to maximise revenue ● Levels playing field for new operators ● Ladbrokes continuing to make progress with more growth to come Services
Slide 35: Playtech BIT - BI Technology
● Transforms the way operators do business ● Drives player engagement with fully personalised offering ● Significantly increases revenue ● Work smarter with analysis and optimisation ● Delivers the ultimate customer experience Playtech BIT - BI Technology
Slide 36: Social / Casual
● Fast growing $25bn segment of the gaming market with no presence ● Best of breed in-house/acquisition approach ● Leverage core development and distribution skills ● Unique three-pronged, well-defined strategy: ● internal games development ● platforms and technology ● publishing/marketing capabilit
Slide 37: Mobile Philosophy
● An integral part of our holistic approach, becoming the natural channel of choice ● Significant growth opportunity ● largest mobile development team in the industry ● highly innovative ● extensive product portfolio ● all verticals ● all devices & operating systems Mobile Philosophy
Slide 38: Regulation
● PTEC regulated share grew faster than unregulated in 2014 ● Contracts like Holland Casino and extended relationships into Portugal and Bulgaria already signed securing future growth ● 25 markets are regulated sports land based/online ● Started to deliver combination strategy ● Soon to announce fur
Slide 39: A lot more growth to come… Looking Ahead
A lot more growth to come… ● Customers already signed ● Strong pipeline of new customers and extensions of contracts underway ● The unique “Playtech ONE” strategy is expected to become a major theme in the coming years and the standard for operators ● Sports will play a key role in more regulated ma
Slide 40: Agenda
‘SOURCE OF SUCCESS