Allwyn Ag · ATHEX:ALWN
Allwyn — Q4 2020 Earnings Presentation
32 slides from Allwyn's earnings presentation, Apr 1, 2021
Slide 1: Q4 & FY 2020 Financial Results
Q4 & FY 2020 Financial Results 1 April 2021
Slide 2: Disclaimer
Disclaimer • All drawings, artwork, and texts are the exclusive • Copyright refers to all graphics and texts of the property of OPAP S.A. The partial or total present publication duplication, copy or publication of the contents of this publication by any medium (mechanical, • The facts included in t
Slide 3: FY 2020 Highlights
FY 2020 Highlights 2020 Financial Performance FY results heavily impacted by national and regional lockdowns & covid-19 related restrictions Strong organic online growth further aided by very good Kaizen Gaming performance Constant focus on cost efficiencies and achievement of material savings
Slide 4: 2020 Financial Review
2020 Financial Review Pavel Mucha, Chief Financial Officer [Business/Internal Use]
Slide 5: Q4 2020 Overview
Q4 2020 Overview Lockdown takes a toll but exceptional online growth Revenues (GGR) EBITDA -48,3% -51,0% 447 108 • -43.0% on a l-f-l basis excluding 4 • Growth in Online performance one-off items also reflects Kaizen Gaming full 231 • Q4’20 incorporates €42.5m from consolidation since Dec’20 442 the
Slide 6: FY 2020 Overview
FY 2020 Overview Resilient FY financial performance during exceptional times Revenues (GGR) EBITDA -30,3% -36,9% 1.620 12 1.130 413 • Significant organic online growth • -32.4% on a l-f-l basis after 82 coupled with material Kaizen excluding one-off items in both Gaming contribution 260 years 1.608
Slide 7: Key Quarterly Financials 2017-2020
Key Quarterly Financials 2017-2020 Q4 ’20 performance affected by covid-19 revival and lockdowns imposed for more than 2/3 of the quarter Revenues (GGR) EBITDA Net Profit 113 132 109 108 441 447 105 104 410 396 394 391 93 377360369 384 88 87 87 86 359330357 83 328 78 70 62 231 52 53 57 53 49 180 43
Slide 8: OPAP – FY2020 GGR performance at a glance
OPAP – FY2020 GGR performance* at a glance Open (203 days) GGR Δ on a monthly basis +1.0% +1.3m • 72 days pre Covid-19 Δ% l-f-l GGR 2020 - • 131 days with safety Higher GGR on average 2019 for every fully open month measures and restrictions 31% Partial Lockdown (48 days) 365 56% Days total • Seatin
Slide 9: Revenues (GGR)
Revenues (GGR) Q4-FY 2020 GGR analysis Last 4 quarters GGR breakdown Casino 8% FY Q4 VLTs 20% 14% Q1’20 23% -48,3% 20% -30,3% Q2’20* 447 Q3’20 7% 6% 1.620 231 Instant 7% Q4’20 & Passives 9% 1.130 85 36% 298 27% 47% 46% Lottery 47 22% 46% 147 24 27% -32.6% 396 201 112 19 36% Betting *Referring to ful
Slide 10: Profitability (recurring figures)
Profitability (recurring figures) Q4 – FY EBITDA* Q4 – FY Net Profit** -43,0% -74,3% -51,4% -32,4% 230 12,7% 26,0% 25,1% 23,5% 24,3% 180 8,9% 130 7,8% 406 206 80 274 100 30 71 105 60 18 -20 Q4 2019 Q4 2020 FY 2019 FY 2020 Q4 2019 Q4 2020 FY 2019 FY 2020** EBITDA EBITDA Margin on GGR Net Profit Net P
Slide 11: Cost efficiencies well on track
Cost efficiencies well on track Q2 Q3 Q4* - 4.1% -6,8% -3,8% -1.7% during Covid-19 period 74.9 73.6 72.1 67.1 60.0 57.7 32,8 27,5 26,3 38,0 39,3 Cost control initiatives 36,2 +10.3% -4.3% +3.5% throughout the lockdown period 16,5 12,9 -9.7% 10,8 -34.8% 11,6 16,7 15,4 -7.7% Contained Marketing an
Slide 12: EBITDA bridge
EBITDA bridge Income recognition relating to the Increased Opex reflecting Concession Kaizen Gaming mitigation actions Lower revenue extension contribution related costs 490 21 10 4 6 17 9 413 42 26 131 260 141 EBITDA FY'19 GGR GGR contribution Agents' Revenue sharing Other Operating Income related
Slide 13: Cash Flow & Net Debt
Cash Flow & Net Debt Cash Flow Bridge Net Debt Solid profitability despite lockdown Dividend payment Strong financial position and borrowings 79 repayment with Net Debt at €529m* *as of 31.12.2020, excl. IFRS 16 lease liabilities 186 235 Acquisition of increased stake in 2.0x Net Debt / Ebitda Kaiz
Slide 14: OPAP Online is growing significantly
OPAP Online is growing significantly Pre- lockdown 1st Lockdown Stores reopening 2nd Lockdown Average weekly Limited sports betting offer Sustainable numbers despite Normalized Sports Calendar performance: €360k Launch of Online Virtuals seasonality effect & lack of Increased customer ba
Slide 15: Online is demonstrating significant organic growth and sequential improvement
Online is demonstrating significant organic growth and sequential improvement Betting avg. 2nd lockdown GGR +34% YoY reaching €262m in GGR 3.6x bigger FY2020 vs 2019 Casino Strong Betting Casino GGR Tzoker YoY performance significantly represents 30% of despite sports avg. 2020 GGR increased in 2020
Slide 16: Online deep dive
Online deep dive Online contribution to reported GGR Online product mix (Q4’20 GGR pro-forma figures) 4,0% 24,4% 34,2% 7,2% 61,7% 0,7% FY'19 FY'20 Q4'20 Betting Casino Lottery Q4’20 includes Dec. Kaizen Gaming (GR/CY) GGR Pro-forma figures include OPAP & Kaizen Gaming (GR/CY) GGR for the whole Q4’20
Slide 17: Strong cash position with extended debt maturity following retail bond issuance
Strong cash position with extended debt maturity following retail bond issuance Secured cash availability… … with long debt maturity 634 628 507 492 1.050 440 Cash 31.12.2019 Cash 30.06.2020 Cash 31.12.2020 Current Cash 30 150 200 reserves* 80 75 75 *as at March 29th 2021 2021 2022 2023 2024 2025 20
Slide 18: Covid-19 Financial impact
Covid-19 Financial impact GGR impact EBITDA impact 130 - 140 45 - 50 2021 GGR est. Monthly impact* 2021 EBITDA est. Monthly impact* Retail Online Retail Online * For every full lockdown month * For every full lockdown month Amounts in €m 18 [Business/Internal Use]
Slide 19: 2021 Bloomberg Consensus
2021 Bloomberg Consensus (€ ‘m) 2020a 2021 (E) Min. 2021 Max. 2021 GGR* 1,129.8 1,680.7 1,445.0 1,972.0 EBITDA 260.9 634.4 456.0 696.0 Margin % 23.1% 37.8% Net Income 198.2 339.3 202.0 396.0 Margin % 17.5% 20.2% EPS 0.59 0.99 0.58 1.16 Growth %, YoY -6,7% +67.8% DPS (€) 1.45 1.15 0.50 1.43 * Consens
Slide 20: Operational & Strategic Update
Operational & Strategic Update Jan Karas, Chief Executive Officer [Business/Internal Use]
Slide 21: Covid-19 Current status and actions taken
Covid-19 Current status and actions taken Current Status • Greek retail estate remains closed since Nov 7th 2020, including horseracing facility in Markopoulo • Cypriot network is open with social distancing mandates in place and no seating availability Timely actions taken to support network financ
Slide 22: OPAP network – FY Highlights
OPAP network – FY Highlights OPAP Stores Gaming Halls Opap stores end of 2020 Greece Cyprus 374 Halls 3,647 202 Including New/upgraded Opap Stores FY 2020 5 Mega Halls 329 37 machines/hall Avg. Size of new/upgraded stores Hellenic Lotteries 102sqm Additional POS on top of OPAP Stores Stores with Sma
Slide 23: 2020 Product portfolio enhancements
2020 Product portfolio enhancements Online Retail VLTs Virtual Sports Power Spin Cash Draws Launch in Q2, more Winners Launch in Q1, well enhancements within accepted so far the year >1,800 Casino Virtuals Basket Launch in Q2, 1 year Jackpot significantly contributing Launch in Q4, well Winners to O
Slide 24: Our VLTs offering
Our VLTs offering Performance overview Product offering Customer base 18,9 25,0 10,0 480,4 487,2 517,0 528,1 440,2 44 41 39 38 42 37 38 288,3 298 148,5 115,8 131,3 116,6 120,2 127,7 74,77 209 27,8 67 22 80 32 FY '17 FY '18 FY '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 58 FY'17 FY'18 FY'19 Q1 Q2 Q3 Q4 Active Pl
Slide 25: Our retail betting offering
Our retail betting offering Performance indicators (Q4 2020) % of SSBTs of Live betting SSBTs live as % of total PS wagers total live PS wagers 0,6 41,30% +1.8pp +2.5pp 0,5 0,4 0,3 0,2 34,6 36,4 20,3 22,7 0,1 % % % % 0 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 Q4'19 Q4'20 % on total wage
Slide 26: OPAP Online is delivering significant growth
OPAP Online is delivering significant growth Record high customer base and solid performance across portfolio +248% increase in y-o-y performance driven by all verticals, significantly outperforming total online market’s growth (est. +35% y-o-y), resulting to more than doubling OPAP’s online marke
Slide 27: Kaizen Gaming
Kaizen Gaming 2020 proved to be a record year with a very strong finish 2020 betting performance +32% YoY, while Casino more that doubled compared to last year’s levels 2020 ended with customer base at record high levels with Q4’20 monthly active players at 292th. GR/CY operations at 72% of Gr
Slide 28: MSCI upgrades OPAP on ESG ratings
MSCI upgrades OPAP on ESG ratings While OPAP also qualifies for 4th year in a row to FTSE4Good Index March 2021 AA ESG RATINGS CCC B BB BBB A AA AAA OPAP has been ESG Rating history upgraded to AA from A in 2019 and B’s and C’s AAA categories’ prior to 2018 AA ΑΑ A BBB BΒB Α Α Continues to lead
Slide 29: Appendix
Appendix [Business/Internal Use]
Slide 30: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position as of 31 December 2020 & 31 December 2019 Consolidated Statement of Financial Position ('000 € ) 31.12.2020 31.12.2019 Current assets Cash and cash equivalents 506.873 633,815 Receivables 68.480 154,415 Other current assets 53.775 80,516 Total current ass
Slide 31: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income 31 December 2020 & 31 December 2019 Consolidated Statement of Comprehensive Income ('000 € ) FY 2020 FY 2019 Δ Δ% Assets Revenue (GGR) 1,129,783 1,619,896 -490.113 -30,3% GGR contribution and other levies and duties -392.518 -533.718 -141.200 -26,5% Net
Slide 32: Consolidated Cash Flow statement
Consolidated Cash Flow statement as of 31 December 2020 & 31 December 2019 Consolidated Cash flow statement ('000 € ) 31.12.2020 31.12.2019 OPERATING ACTIVITIES Operating Activities before WCC 268.214 390.077 Assets Changes in Working Capital Inventories 241 2.540 Receivables 38.367 -34.162 Payables