Allwyn Ag · ATHEX:ALWN
Allwyn — Allwyn International a.s. — Q1 2023 Earnings Presentation
41 slides from Allwyn's earnings presentation, Jun 13, 2023
Slide 1: Allwyn International a.s. Q1 2023 Results
Allwyn International a.s. Q1 2023 Results 13 June 2023 For further information on our company, please visit our website: allwynentertainment.com
Slide 2: Presenting today
Presenting today Robert Chvatal Kenneth Morton CEO CFO 2
Slide 3: Today's agenda
Today’s agenda Business and Strategic Update Financial Update Update on Current Trading and Summary Appendix 3
Slide 4: Business and Strategic Update
Business and Strategic Update 4
Slide 5: Q1 2023 highlights
Q1 2023 highlights Strong start to 2023 • Strong financial performance Consolidated Total Revenue – Total Revenue +80% YoY - +17% YoY excluding acquisitions - First time contributions from Camelot UK and Camelot LS Group1 €1,647m +80% / +17% vs Q1’22 vs Q1’22, excl. Camelot – Adjusted EBITDA +28% Yo
Slide 6: Strong online momentum continued alongside resilience in physical retail
Strong online momentum continued alongside resilience in physical retail… Online share increased year-on-year across all markets in Q1’23; significant growth vs. pre-Covid Austria GGR (excl. VLTs and Casinos)1 GGR (€m) / Online share of total (%) 172 166 167 160 150 159 153 158 140 66 69 76 77 63 36
Slide 7: De-anonymised share of physical retail also growing
…de-anonymised share of physical retail also growing Loyalty programmes bring the benefits of online to the physical retail channel Czech Republic: de-anonymised GGR share (%) 1 Greece and Cyprus: evolution of registered customer base (‘000) 28% 948 27% 873 792 23% 717 687 599 17% 463 13% 355 7% 4%
Slide 8: Product launches and innovation across physical retail and online channels
Product launches and innovation across physical retail and online channels Continuing to expand and improve our product offering, user experience, and technology New and revitalized products / experiences – Q1 2023 NEW Q1 EuroMillions front-end/user interface for app NEW Q1 EuroMillions “100 Europea
Slide 9: Product launches and innovation (cont'd)
Product launches and innovation across physical retail and online channels (cont’d) Continuing to expand and improve our product offering, user experience, and technology Digitalisation of physical retail Key new product launches after Q1 2023 NEW Pilot of self-service Q2 2023 Launch of KINO online
Slide 10: Q1 2023 strategic developments
Q1 2023 strategic developments First quarter of lottery operations across seven markets 1 Acquired Camelot UK • Operator of UK National Lottery currently and since inception in 1994 • Supports successful delivery of National Lottery transition and operations • Completed February 2023 2 Acquired Came
Slide 11: Continuing to focus on ESG and to contribute to local communities
Continuing to focus on ESG and to contribute to local communities Multiple examples of our ongoing commitment to ESG and corporate social responsibility Community Health Aid • Allwyn became partner of Wings for • Camelot Illinois joined other state • Camelot UK made a £100k donation Life World Run,
Slide 12: Financial Update
Financial Update allwyn
Slide 13: Q1 2023 financial highlights
Q1 2023 financial highlights Strong start to 2023 • Total Revenue +80% YoY reflects strong organic growth and Consolidated Total Revenue consolidation of acquisitions – Total Revenue +17% YoY in existing geographies €1,647m +80% / +17% vs Q1’22 vs Q1’22, excl. Camelot - Continued progress in organic
Slide 14: Consolidated P&L
Consolidated P&L • Total Revenue growth of +80% YoY, Net Revenue +40% YoY Consolidated P&L (€m) Q1’22 Q1’23 ∆ vs. Q1’22 – Gaming taxes/Good Causes contribution as a % of GGR increased, primarily due to mix effects related to acquisition of Total Revenue 914 1,647 +80% Camelot UK Of which: GGR 876 1,
Slide 15: Consolidated P&L (excluding acquisitions)
Consolidated P&L (excluding acquisitions) • Total Revenue growth of +17% YoY excluding recent acquisitions Consolidated P&L (€m) Q1’22 Q1’23 ∆ vs. Q1’22 – GGR growth +17%, supported by strong organic growth across all existing markets and product lines Total Revenue 914 1,066 +17% Of which: GGR 876
Slide 16: Q1 2023 financials summary
Q1 2023 financials summary Strong net revenue growth and cash generation Consolidated basis (€m) Pro rata basis (€m)1 Net Revenue CAGR Net Revenue CAGR +40% +24% +112% +30% 811 793 579 346 374 295 306 281 230 226 Q1'19 Q1'20 Q1'21 Q1'22 Q1'23 Q1'19 Q1'20 Q1'21 Q1'22 Q1'23 Adjusted EBITDA CAGR Adjust
Slide 17: Q1 2023 Consolidated EBITDA
Q1 2023 Consolidated EBITDA • Camelot UK and Camelot LS Group contribution included post Consolidated EBITDA (€m) acquisition (February and March respectively) Q1’22 Q1’23 • Business highlights on following slides covers largest operating segments/equity method investees Austria 52.5 65.6 Czech Repu
Slide 18: Business highlights – Austria
Business highlights – Austria Strong revenue growth and profitability • Strong momentum continued in Q1 Gross Gaming Revenue – Strong growth in lottery GGR and, in €m particular, in iGaming and Casinos GGR +19% • Adjusted EBITDA growth ahead of GGR growth – Reflective of cost control as well as some
Slide 19: Business highlights – Czech Republic
Business highlights – Czech Republic Strong growth online and in physical retail • Strong growth momentum continued in Q1 Gross Gaming Revenue – Good performance across all key products €m cFX +14% – Strong GGR growth online in iGaming (+29% +18% YoY) and Lottery contributed to overall growth online
Slide 20: Business highlights – Greece and Cyprus
Business highlights – Greece and Cyprus Strong start to 2023 • Strong GGR growth (+15% YoY) Gross Gaming Revenue – Solid online growth aided by product €m +15% enhancements and commercial initiatives – Some negative COVID-related impacts on comparative period 527 499 541 486 457 442 462 449 • EBITDA
Slide 21: Business highlights – Italy
Business highlights – Italy Solid performance • Solid performance in the quarter Revenue – Revenue +5% YoY €m – Adjusted EBITDA +5% YoY • Some negative COVID-related impacts on +5% comparative period 129 134 134 121 124 124 120 122 • Business continues to be highly profitable and 103 116 113 113 107
Slide 22: Business highlights – United Kingdom
Business highlights – United Kingdom Resilient top line performance • Acquired Camelot UK February 5, 2023 Gross gaming Revenue – Following Allwyn’s success in 2022 in the tender for the next UK €m Of which included in National Lottery licence (10-year period commencing February cFX +2% consolidated
Slide 23: Strong free cash flow generation
Strong free cash flow generation Reflects asset light business model and high profitability • Clean EBITDA with only limited adjustments Consolidated FCF (€m) – Increase in adjustments YoY primarily relates to expensing of Adjusted EBITDA CAGR +23% costs incurred ahead of new UK National Lottery Lic
Slide 24: Strong cash conversion
Strong cash conversion Simplified consolidated cash flow bridge (€m) 347 329 72 (88) 296 (32) (25) 209 (15) (40) 169 Consol. Consol. Operating Dividends from Change in NWC Income Tax Maintenance Dividends to Attributable Cash Interest Paid Attributable Cash Adjusted Operating Cash Flow Equity Method
Slide 25: Leverage (post-IFRS 16 basis)
Leverage (post-IFRS 16 basis) Low leverage, significant net cash position at subsidiaries As of 31 March 2023, Post-IFRS 16, € millions Pro forma LTM Adjusted EBITDA1 1,444 Cash and cash equivalents and short-term financial assets (1,618) Gross debt 3,248 Leases 148 Net debt (incl. leases) 1,778 Con
Slide 26: Q1 2023 key financing transactions
Q1 2023 key financing transactions Pro-actively managing our capital structure Q1 2023 - Allwyn International • Transfer and partial repayment of Czech bonds – Holders of CZK 6.0 billion bonds (“Czech Bonds”) approved their transfer from Allwyn International a.s. to Allwyn Financing Czech Republic 2
Slide 27: Key financing transactions after quarter end
Key financing transactions after quarter end Pro-actively managing our capital structure Q2 2023 - Allwyn International • In April, issued €665m of 7.250% senior secured notes due 2030 and $700m of 7.875% senior secured notes due 2029 (€1.3bn equivalent) – $600m of 7.875% senior secured notes were s
Slide 28: Key financing transactions after quarter end
Key financing transactions after quarter end Pro-actively managing capital structure (cont’d) Changes in gross debt since the beginning of 2023 Consolidated gross debt as of 31 December 2022 (€m) 2,903 Partial prepayment of CZK6bn bonds (130) Drawdown under €303m TLA2/TLB2 facility1 133 Allwyn RCF d
Slide 29: Update on Current Trading and Summary
Update on Current Trading and Summary 29
Slide 30: Update on current trading
Update on current trading Since the end of the quarter our business has continued to perform and develop well, despite a background of relatively weak general consumer sentiment. Our trading since the start of the year has been broadly in line with our expectations at the start of the year 1 Macroec
Slide 31: Summary
Summary Continuing to compound growth and generate strong free cash flow 1 Strong start to 2023, notwithstanding weaker general consumer sentiment, reflecting delivery on key initiatives and benefits of diversification 2 Overall, successful execution balancing organic and inorganic growth strategies
Slide 32: Q&A
QE&A allwyn
Slide 33: Appendix
Appendix allwyn
Slide 34: P&L structure
P&L structure Previous P&L presentation New P&L presentation A A Gross Gaming Revenue (GGR) Gross Gaming Revenue (GGR) B B Less: Gaming taxes Other Revenue A B Net Gaming Revenue (NGR) A B Total Revenue C C Other Revenue Less: Gaming taxes A B C Net Revenue A C Of which: Net Gaming Revenue (NGR) 34
Slide 35: Summary of adjustments to EBITDA
Summary of adjustments to EBITDA Standalone, 100% (€m)1 EBITDA Adjustments Breakdown3 Operating EBITDA 2019 2020 2021 2022 Q1’22 Q1’23 2019 2020 2021 2022 Q1’22 Q1’23 Casino Linz insurance gain + restructuring non-personnel costs -- (4) (1) -- -- -- Austria 211 147 232 266 53 66 Argentina arbitratio
Slide 36: Capital structure overview
Capital structure overview As of 31 March 2023, excluding post reporting events Capital structure as of 31 March 2023 x LTM Pro forma LTM Adjusted € millions Amount Coupon / Margin Maturity Consolidated EBITDA Total Consolidated Subsidiary Net Debt / (Cash) (556) Cash & Cash Equivalents (153) Syndic
Slide 37: Pro rata net leverage (pre-IFRS basis)
Pro rata net leverage (pre-IFRS 16 basis) As of 31 March 2023, Pre-IFRS16 Basis1 Greece & United Camelot LS 2 3 € millions Austria Czech Republic Italy Other Corporate Total Cyprus Kingdom Group 100% basis LTM Adjusted EBITDA2 258 119 743 171 32 378 -- (5) Cash and cash equivalents and short-term (3
Slide 38: Dividends and distributions
Dividends and distributions Ownership 2019 2020 2021 2022 Q1’22 Q1’23 €m At end of March 2023 Dividends and cash upstreamed – 100% basis Austrian Lotteries 9.5%1 120 177 91 120 - - CASAG 59.7% 15 - - 45 - - LottoItalia 32.5% 351 237 316 321 251 219 OPAP 50.1%2 165 420 222 599 - - SAZKA 100.0% 19 38
Slide 39: Alternative performance measures and comparability of information
Alternative performance measures and comparability of information This presentation includes non-IFRS performance measures, including Net Revenue, Net gaming revenue (“NGR”), Operating EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Capex, Adjusted Free Cash Flow (“Adjusted FCF”), Cash conversion a
Slide 40: Disclaimer
Disclaimer This presentation was produced by Allwyn International a.s. This presentation is not to be reproduced or distributed, in whole or in part, by any person other than Allwyn International a.s. This presentation does not represent an offer for, or constitute or form part of, and should not be
Slide 41: Disclaimer
Disclaimer No warranty or representation of any kind, express or implied, is or will be made in relation to, and to the fullest extent permissible by law, no responsibility or liability in contract, tort, or otherwise, is or will be accepted by us or any of our officers, employees, advisers or agent
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