Tko Group Holdings, Inc. · NYSE:TKO
Tko — Merger or Acquisition (October 2024)
18 slides from Tko's merger presentation, Oct 24, 2024
Slide 1: Expanding TKO's Leadership in Premium Sports Globally
urc | TKO) | wi EXPANDING TKO’S LEADERSHIP IN PREMIUM SPORTS GLOBALLY ON LOCATION. OCTOBER 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. TKO Group Holdings, Inc. (the “Company,” “TKO,” “we” or “our”) intends such forward-looking statements to be covered by the safe harbor provisi
Slide 3: Today's Announcements
Today’s Announcements 01 Approval of Significant Capital Return Program 02 Acquisition of Professional Bull Riders, On Location and IMG 3
Slide 4: Industry Leading Assets That Enhance TKO's Portfolio
Industry Leading Assets That Enhance TKO’s Portfolio Professional Bull Riding League Premium Hospitality and Live Global Sports Rights Synonymous With Western Lifestyle Experiences Industry Leader Industry Leader (1) Scarce league level asset Exceptional scale and expertise across Leader in sports r
Slide 5: Acquired Assets Complement TKO's Existing Premium IP and Position TKO for Accelerated Growth
Acquired Assets Complement TKO’s Existing Premium IP and Position TKO for Accelerated Growth 01 Industry Leading Assets With Meaningful Upside 02 Businesses That Are Well-Positioned Globally to Fuel TKO’s Value Creation Model 03 Aligned With Premium Leagues and Properties in the Fast-Growing Sports
Slide 6: Expanding TKO's Operational Footprint in Attractive, Fast-Growing Segments of the Sports TAM
Expanding TKO’s Operational Footprint in Attractive, Fast-Growing Segments of the Sports TAM ✓ More Premium Sports Rights GLOBAL SPORTS RIGHTS ~8% CAGR (1) GLOBAL SPORTS TICKETING ~8% CAGR (1) GLOBAL SPORTS SPONSORSHIPS ~9% CAGR (1) ✓ More Live Events Hosted $107B ✓ More Tickets Sold $92B $79B $70B
Slide 7: TKO is Uniquely Positioned to Capture Upside Associated with Marquee Global Sports Properties
TKO is Uniquely Positioned to Capture Upside Associated with Marquee Global Sports Properties Management’s Strong 1-of-1 Investment Opportunity Spanning the Entire Ecosystem of Track Record Premium Global Sports and Sports Entertainment UFC Enterprise Value Global Leaders Leagues Events $12.1Bn $4.1
Slide 8: Investing in the Next Phase of TKO's Growth
Investing in the Next Phase of TKO’s Growth Strategic Acquisitions Increase the Depth and Breadth of TKO’s Portfolio of Assets • TKO to acquire PBR, On Location and IMG in an Endeavor Non-Endeavor Shareholders Shareholders all-equity transaction for a total consideration of $3.25 billion, based on t
Slide 9: Financial Overview
Financial Overview FY’25E Run Rate Adj. Revenue (1) FY’25E Run Rate Adj. EBITDA (1) ~$130M ~$1,090M ~$2.1B ~$265M Expected Run FY’25E Run Rate FY’25E Run Rate ~$30M+ Rate Cost Adj. Revenue (1) Adj. EBITDA (1) Savings ~$775M ~$215M ~$65M ~$40M COMBINED ~$2.1B ~$265M ~13% FY’25E Run Rate Adj. Revenue
Slide 10: Robust Capital Return Program and Balanced Capital Allocation Strategy
Robust Capital Return Program and Balanced Capital Allocation Strategy $2B SHARE REPURCHASE $75M ANTICIPATED QUARTERLY DIVIDEND AUTHORIZATION (1)(3) (COMMENCING 2025) (2)(3) Notes: 1. The Company is authorized to purchase up to $2Bn of Class A common shares 2. The dividend program will involve a $75
Slide 11: Capital Return Program Underpinned by Strong Free Cash Flow Visibility, Durable Growth and Debt Capacity
Capital Return Program Underpinned by Strong Free Cash Flow Visibility, Durable Growth and Debt Capacity Cash & Short-term Investments ($M) Free Cash Flow ($M) Net Leverage (Net Debt / Adj. EBITDA) $431.1 (Net Debt / Adj. EBITDA) $277.5 2.0x $188.6 +$88.9 Q3'23 Q2'24 9M Ended Q2'24 Q2'24 TKO has rep
Slide 12: TKO
TKO
Slide 13: Appendix
TK hz Appendix 13
Slide 14: Shares Outstanding
Shares Outstanding Share Count as of June 30, 2024 (M) As of June 30, 2024 Class A Common Shares 80.71 Class B Common Shares 89.62 Unvested Equity Grants 2.72 Total Fully Diluted Shares Outstanding 173.05 Transaction Related Share Issuance m 26.14 Projected Fully Diluted Shares Outstanding 199.19 j
Slide 15: Historical Financial Information
Historical Financial Information Historical Adjusted EBITDA – Segment Detail ($ in Millions, Unaudited) (1) 2022 2023 2024 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Adjusted EBITDA (2) UFC $154.1 $186.3 $188.2 $238.3 $142.9 $195.1 $231.9 WWE $126.1 $117.0 $173.1 $102.0 $141.0 $140.2 $251.3 Corporate ($49.3) ($46.5) ($47
Slide 16: Reconciliation of TKO Non-GAAP Historical Financial Information
Reconciliation of TKO Non-GAAP Historical Financial Information Reconciliation of Free Cash Flow ($ in Millions) Three Months Ended December 31, Three Months Ended March 31, Three Months Ended June 30, 2023 2024 2024 Net cash provided by operating activities $220.7 $59.3 $230.7 Less cash used for ca
Slide 17: Reconciliation of Run Rate Adjusted Financials
Reconciliation of Run Rate Adjusted Financials (1) Reconciliation of Run Rate Adjusted Revenue of Acquired Assets ($ in Millions) FY 2025 Forecast A• Represents “as reported” Revenue associated with the Olympics contract for the Milan and FIFA Run Rate Milan Games in 2026 and Los Angeles Games in 20
Slide 18: TKO
TKO
TKO Group Holdings — Merger or Acquisition (October 2024) on 6ix