Allwyn Ag · ATHEX:ALWN
Allwyn — Q1 2020 Earnings Presentation
31 slides from Allwyn's earnings presentation, Jun 11, 2020
Slide 1: Q1 2020 Financial Results
Q1 2020 Financial Results 11 June 2020
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: Q1 2020 Highlights
Q1 2020 Highlights Financial Performance Covid-19 Impact in line with guidance Solid l-f-l revenues up to lockdown with strong VLTs and sports betting performance Mitigation actions initiated promptly in March & continuing in Q2 YTD as already informed EBITDA positive between March-May Str
Slide 4: Q1 2020 Financial Review
Q1 2020 Financial Review Pavel Mucha, Chief Financial Officer 4
Slide 5: Q1 2020 Overview
Q1 2020 Overview Solid pre-lockdown performance // Covid impact in line with expectations Revenues (GGR) EBITDA Q1 Full Pre-Covid period (up to Mar 13th) -17,1% +1,7% -23,6% 113 396 322 327 • -15,6% on a l-f-l basis 328 86 excluding one-off items in Q1’19 • Improved vs. the l-f-l pre-covid gross gam
Slide 6: Key Quarterly Financials 2017-2020
Key Quarterly Financials 2017-2020 Q1 ’20 performance heavily affected by covid-19 outbreak Revenues (GGR) EBITDA Net Profit 112 112 447 109 441 61 102 410 394 57 396 377 360 384 93 369 359 330 357 87 87 87 86 49 83 328 78 43 70 40 40 40 35 36 33 33 52 26 17 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1
Slide 7: Revenues (GGR)
Revenues (GGR) Q1 2020 GGR analysis Last 4 quarters GGR breakdown VLTs Q1 Full Pre-Covid period (up to Mar 13th) 20% 19% 19% Q2’19 -17,1% 19% Instant Q3’19 & Passives +1,7% Q4’19 6% 8% 9% 11% 396 Q1’20 69 328 321 327 49% 24% 45% 34 67 -3.4% 55 67 +21.5% 23% 50% 102 19 -43.0% 27 19 -28.7% 25% 27% 47%
Slide 8: Profitability (recurring figures)
Profitability (recurring figures) Q1 EBITDA Q1 Net Profit -15,6% -28,6% 120 35,0% 60 16,0% 100 26,3% 30,0% 12,6% 14,0% 25,8% 50 25,0% 10,8% 12,0% 80 40 10,0% 20,0% 60 30 8,0% 102 15,0% 50 86 6,0% 40 20 10,0% 36 4,0% 20 10 5,0% 2,0% 0 0,0% 0 0,0% Q1 2019* Q1 2020 Q1 2019* Q1 2020 *Excl. one-off items
Slide 9: EBITDA bridge
EBITDA bridge Prompt containment Strong Stoiximan Decreased actions following performance revenues led to lockdown lower costs 68 3 4 2 16 0 2 2 2 113 18 86 EBITDA Q1'19 GGR GGR Agents' Revenue Payroll Marketing Other Share of profit Other Other EBITDA Q1'20 contribution Commissions share costs expe
Slide 10: Cash Flow & Net Debt
Cash Flow & Net Debt Cash Flow Bridge Net Debt Extraordinary dividend payment Increased operating profitability and borrowings partial repayment Strong financial position with Net Debt at €556m* *as of 31.03.2020 33 4 249 1.4x Net Debt / Ebitda TCB dividend contribution 8.2x Interest Coverage base
Slide 11: 2020 Bloomberg Consensus
2020 Bloomberg Consensus (€ ‘m) 2019a 2020 (E) Min. 2020 Max. 2020 GGR* 1,619.9 1,320.9 1,169.0 1,491.8 EBITDA 412.6 296.0 397.0 248.0 Margin % 25.5% 22.4% Net Income 202.4 125.0 65.0 209.0 Margin % 12.5% 9.5% EPS 0.64 0.32 0.19 0.54 Growth %, YoY +40,9% -50.0% DPS (€) 0.30 0.89 0.51 1.51 * Consensu
Slide 12: Q1 Operational Overview
Q1 Operational Overview Jan Karas, Acting CEO 12
Slide 13: OPAP stores network
OPAP stores network Estate Development Stores Profile Advanced customer experience Opap stores in Greece New/upgraded Opap OPAP stores Avg. size of new SSBTS available all Q1 2020 Stores Q1 2020 average size stores around network Improved F&B facilities and 3,764 59 80m2 118m2 >6,700 digital signage
Slide 14: Our VLTs offering
Our VLTs offering Performance overview Product offering Customer base 18,9 25,0 10,0 440,2 480,4 44 41 39 38 288,3 298 148,5 115,8 131,3 209 74,77 27,8 58 67 FY '17 FY '18 FY '19 Q1 '20 FY'17 FY'18 FY'19 Q1 Active Players / monthly avg. ('000) 2020 GGR (€m) GGR / VLT / DAY (€) Registered base ('000)
Slide 15: Our sportsbetting offering
Our sportsbetting offering Performance indicators (Q1 2020) % of SSBTs of Live betting SSBTs live as % total wagers of total live 0,45 39,9% +6.3pp +4.9pp 0,4 0,35 22,3% 0,3 0,25 0,2 20.2% 0,15 0,1 33.9% 0,05 15.3% 0 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 27.6% 2019 2020 Q1'19 Q1'20 % on total wagers Q1
Slide 16: OPAP Online
OPAP Online Increased weight & significance with a positive outlook y-o-y GGR growth across verticals Sequentially improved registered base & active customers Tzoker online demonstrating steadily increased penetration New regulation compliance readiness GGR (€m) Customer Base 297,6 1,3 1,7 2
Slide 17: Stoiximan
Stoiximan A strong start for the year Impressive revenue performance: Q1’20 reported a +63% y-o-y growth partially aided by lower payouts Casino outperformance: +91% y-o-y growth, March performance more than doubled y-o-y Contribution of New Territories: International business continues its up
Slide 18: COVID-19 Update
COVID-19 Update Jan Karas Pavel Mucha Acting CEO CFO 18
Slide 19: Covid-19 Update – Key Milestones
Covid-19 Update – Key Milestones June May 11th & 23rd Apr 27th VLTs resume operations (June 8th) Mar 27th Allowance of & 31st Opap Stores seating resume availability (June Mar 16th operations 6th) Launch of in Greece // Restart of Greek Allowance of horseracing Mar Online Casino street activ
Slide 20: Covid-19 Update – Impact overview
Covid-19 Update – Impact overview Retail Online Macro 99% revenue Leverage the Outlook decline amidst opportunity of increased online GDP contraction to lockdown demand affect gambling Ongoing recovery on Swift response spending the back of stores through portfolio Official GDP reopening
Slide 21: Covid-19 Update – Sports calendar filling up
Covid-19 Update – Sports calendar filling up Football Officially announced NBA target day: late Jul Basketball Bundesliga started ’20 May ’20 Euroleague expected Austria Bundesliga 2 Oct 2020 Jun ‘20 Greek Basket League Primera Liga 3 Jun ‘20 officially Oct ‘20 Greek Superleague 6- 7 J
Slide 22: Land based sports betting venues gradually reopening
Land based sports betting venues gradually reopening 12 countries already reopened their sports betting network with 14 planned to follow Greece’s success story led to an earlier opening of OPAP shops vs. most EU peers Currently Open 12 countries Closure Period: 0 – 60 days 9 countries Prospecti
Slide 23: Online Performance
Online Performance Online performance (measured in basis points) First week of imposed lockdown. Limited sports betting offer due to lack of events OS open 166% Measuring online Online GGR increase 310 GGR, by using 100 289 291 basis points as of the 262 266 Portfolio enhancement, last full week b
Slide 24: Post lockdown performance
Post lockdown performance GGR performance (measured in basis points) Measuring post • Post lockdown performance demonstrating lockdown performance, gradual recovery by using 100 basis • Performance better vs. internal expectations points as of the last full Lockdown period still in place. • Tzoker M
Slide 25: Covid-19: Cost efficiencies are aiding profitability recovery
Covid-19: Cost efficiencies are aiding profitability recovery Monthly OPEX Monthly EBITDA* Total savings c.7.5m 11,5 20,3 17,1 16,0 Pre Covid Mar. Opex* Post Covid monthly Opex monthly Opex (avg. Jan- (Apr) March April May L3M EBITDA Feb) Stores closed on March 14th * Adj for one-off items Total est
Slide 26: Sufficient cash reserves and long debt maturity
Sufficient cash reserves and long debt maturity Secured cash availability… … with long debt maturity Bridge facility intended to be refinanced via capital 634 604 markets 1.155 422 400 300 200 150 Cash 31.12.2019 Cash 31.3.2020 Current Cash reserves* 100 5 *as at June 10th 2020 2020 2021 2022 2023 2
Slide 27: Appendix
Appendix
Slide 28: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position as of 31 March 2020 & 31 December 2019 Consolidated Statement of Financial Position ('000 € ) 31.03.2020 31.12.2019 Current assets Cash and cash equivalents 421,962 633,815 Receivables 97,436 161,158 Other current assets 80,407 74,888 Total current assets
Slide 29: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income 31 March 2020 & 31 March 2019 Consolidated Statement of Comprehensive Income ('000 € ) 31.03.2020 31.03.2019 Δ Δ% Assets Amounts wagered 885,065 1,082,805 -197,740 -18.3% Revenue (GGR) 328,312 396,030 -67,718 -17.1% GGR contribution and other levies and
Slide 30: Consolidated Cash Flow statement
Consolidated Cash Flow statement as of 31 March 2020 & 31 March 2019 Consolidated Cash flow statement ('000 € ) 31.03.2020 31.03.2019 OPERATING ACTIVITIES Assets Οperating Activities before WCC 82,344 101,295 Changes in Working Capital Inventories -11.100 -9.588 Receivables 65,252 -5,359 Payables (e
Slide 31: Thank you!
_ Thank you! seo — =| _| —