Allwyn Ag · ATHEX:ALWN
Allwyn — Q3 2020 Earnings Presentation
30 slides from Allwyn's earnings presentation, Nov 26, 2020
Slide 1: Q3 & 9M 2020 Financial Results
Q3 & 9Μ 2020 Financial Results 26 November 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: 9M 2020 Highlights
9M 2020 Highlights Financial Performance Q3 revenues resilience along with profitability growth demonstrate a convincing, gradual recovery Continuation of cost optimization partially mitigating the pandemic’s financial impact Increased contribution of Kaizen International Gaming (Stoiximan/Bet
Slide 4: Q3 & 9M 2020 Financial Review
Q3 & 9M 2020 Financial Review Pavel Mucha, Chief Financial Officer 4 [Business/Internal Use]
Slide 5: Q3 2020 Overview
Q3 2020 Overview Q3 performance demonstrates a convincing, gradual recovery Revenues (GGR) EBITDA -0,7% +1,5% • Revenues in line with last year’s 104 105 • Increased Kaizen Gaming 394 391 performance despite restriction contribution measures and less favorable • Ongoing cost control optimization jac
Slide 6: 9M 2020 Overview
9M 2020 Overview 9M performance demonstrating resilient operational model Revenues (GGR) EBITDA -23,4% -31,9% 1.173 • Affected by shops closure • -27,8% on a l-f-l basis 305 excluding one-off items 899 • Online activities growth 208 • Cost optimization initiatives throughout the lockdown period 9M 2
Slide 7: Key Quarterly Financials 2017-2020
Key Quarterly Financials 2017-2020 Q3 ’20 performance rebounds following stores reopening Revenues (GGR) EBITDA Net Profit 112 112 447 109 441 105 61 102 410 394 57 396 391 93 377360369 384 53 359330357 87 87 87 86 49 83 328 78 43 70 40 40 40 35 36 33 33 52 26 180 17 16 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
Slide 8: Revenues (GGR)
Revenues (GGR) 9M-Q3 2020 GGR analysis Last 4 quarters GGR breakdown 9M Q3 VLTs 20% 23% 20% Q4’19 -0,7% 19% -23,4% Q1’20 394 Q2’20* 7% 6%11% 1.173 391 Instant Q3’20 9% & Passives 213 899 73 80 +10.0% 45% 25% 46% 100 32 27 -14.1% 27% 47% 46% 168 -20.8% 22% 284 61 92 105 +13.9% 27% Lottery -39.3% Bett
Slide 9: Profitability (recurring figures)
Profitability (recurring figures) 9M – Q3 EBITDA* 9M – Q3 Net Profit** +1,5% +8,3% -38,3% -27,8% 160 13,5% 26,9% 140 12,4% 26,3% 11,5% 25,3% 23,9% 120 9,3% 100 80 135 297 60 83 214 40 53 20 49 104 105 0 -20 Q3 2019 Q3 2020 9M 2019 9M 2020 Q3 2019 Q3 2020 9M 2019 9M 2020** EBITDA EBITDA Margin on GGR
Slide 10: Cost efficiencies well on track
Cost efficiencies well on track Q2 Q3 -6,8% -3,8% -5.5% during Covid period 72.1 67.1 60.0 57.7 Well-timed cost containment actions even ahead 32,8 of the lockdown 27,5 26,3 36,2 +10.3% -4.3% Decreased cost mainly in Marketing and Other Opex lines 16,5 12,9 11,6 -9.7% 10,8 -34.8% At the same t
Slide 11: EBITDA bridge
EBITDA bridge Lower revenue Marketing costs’ related costs optimization Decrease in other revenue & cost streams as a Increased result of shops’ Kaizen Gaming closure contribution 305 9 2 9 0,3 10 9 10 208 0 274 68 78 EBITDA 9M'19 GGR GGR Agents' Revenue share Other Other Share of Profit Payroll Mar
Slide 12: 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 €556m* *as of 30.09.2020 159 170 Acquisition of increased stake 1.7x Net Debt / Ebitda in Kaizen Gaming International 9.5x Int
Slide 13: Covid-19 Update
Covid-19 Update Current status following 2nd lockdown in Greek and Cypriot operations Operational Status Lockdown Duration • All OPAP stores, PLAY gaming halls and Markopoulo horse racing facility remain closed • Street vendors for Hellenic Lotteries Nov 7th - Nov 30th also restricted • Online chann
Slide 14: Covid-19: 2nd lockdown financial impact
Covid-19: 2nd lockdown financial impact GGR impact EBITDA impact 3 110-120 45-50 1.283 303 3 2020 GGR Oct. impact 2 Nov. impact 2020 Ebitda consensus 1 2nd lockdown impact 2 consensus1 1 excl. Stoiximan contribution & before 2nd lockdown impact 2 local lockdowns in North Greece periodically since 16
Slide 15: 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 634 628 543 1.055 483 422 400 300 Cash Cash Cash Cash Current Cash 200 50 100 31.12.2019 31.3.2020 30.06.2020 30.09.2020 reserves* 5 *as at November 24th 2020 2020 202
Slide 16: 2020 Bloomberg Consensus
2020 Bloomberg Consensus (€ ‘m) 2019a 2020 (E) Min. 2020 Max. 2020 GGR* 1,619.9 1,278.8 1,100.0 1,466.0 EBITDA 412.6 302.7 266.0 352.0 Margin % 25.5% 23.4% Net Income 202.4 110.7 90.2 148.0 Margin % 12.5% 9.0% EPS 0.64 0.33 0.28 0.37 Growth %, YoY +40,9% -50.0% DPS (€) 0.30 0.93 0.60 1.48 * Consensu
Slide 17: Q3 & 9M Operational Overview
Q3 & 9M Operational Overview Jan Karas, Acting CEO 17 [Business/Internal Use]
Slide 18: OPAP stores network
OPAP stores network Estate Development Reopening with full compliance with covid mandates Decontamination of stores & machines regularly Respecting safety distances & max number of incoming customers Opap stores in Greece New/upgraded Opap Q3 2020 Stores Q3 2020 Payments through debit 3,694 23
Slide 19: Our VLTs offering
Our VLTs offering Performance overview Product offering Customer base 18,9 25,0 10,0 480,4 487,2 517,0 440,2 44 41 39 38 42 37 288,3 298 148,5 131,3 115,8 116,6 120,2 74,77 209 27,8 67 22 80 FY '17 FY '18 FY '19 Q1 '20 Q2 '20 Q3 '20 58 FY'17 FY'18 FY'19 Q1 Q2 Q3 Active Players / monthly avg. ('000)
Slide 20: VLTs initiatives
VLTs initiatives Celebrating 1 year of Jackpot’s operation Prizes Winners €22.5M >46.9k Summer promo activities Enhanced customer experience Exclusive Jackpot campaign during September 250k Play Games customers targeted with reactivation offers after stores re-opening +70% of VLTs players partic
Slide 21: Our betting offering
Our betting offering Performance indicators (Q3 2020) % of SSBTs of Live betting SSBTs live as % of total PS wagers total live PS wagers 0,6 44,9% +1.6pp +3.4pp 0,5 0,4 0,3 0,2 33,9 35,5 23,0 0,1 % % % 0 19,5 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 % 2019 2020 Q3'19 Q3'20 % on total wagers Q3'19 Q3
Slide 22: Betting innovations
Betting innovations VIRTUALS BASKET Launch at mid Oct Well accepted by players so far providing High Definition audiovisual experience RACING CHANNEL Launch at late Sep Horse Races & Greyhounds revamped under a unified channel. Live, ongoing & simplified POWER SPIN betting content, addressed to wide
Slide 23: Online sequential improvement
Online sequential improvement Portfolio enhancement and continuously increased customer base Record GGR despite the absence of favourable Tzoker jackpots Tzoker penetration steadily exceeding 10% Online casino offering has aided the overall increased online performance Improved key customers
Slide 24: Online: Sustained momentum despite retail reopening
Online: Sustained momentum despite retail reopening Pre- lockdown 1st Lockdown Stores reopening 2nd Lock Average weekly Limited sports betting offer Sustainable numbers despite seasonality down performance: €360k Launch of Online Virtuals effect & lack of favorable jackpots rollover Tzoker
Slide 25: Kaizen Gaming
Kaizen Gaming YTD growing performance pointing out to another record year Increased Q3 performance also aided by increased equity participation Strong customer base with active players returning to pre-Covid levels GR/CY operations at 73% of Group’s revenues in Q3’20 OPAP’s financial benefit
Slide 26: Better positioned vs. the 1st lockdown
Better positioned vs. the 1st lockdown 1st Lockdown 2nd Lockdown Sports betting Limited sports events Normalized sports calendar Lotteries 2 Tzoker draws/week 3 Tzoker draws/week 298k* customers 355k** customers Online offering Casino, Virtuals, Pame Stoixima, Tzoker Pame Stoixima, Tzoker Kaizen Gam
Slide 27: Appendix
Appendix [Business/Internal Use]
Slide 28: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position as of 30 September 2020 & 31 December 2019 Consolidated Statement of Financial Position ('000 € ) 30.09.2020 31.12.2019 Current assets Cash and cash equivalents 543.396 633,815 Receivables 109.733 161,158 Other current assets 63.009 80,516 Total current a
Slide 29: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income 30 September 2020 & 30 September 2019 Consolidated Statement of Comprehensive Income ('000 € ) 30.06.2020 30.06.2019 Δ Δ% Assets Amounts wagered 2.521.574 3.213.615 -692.041 -21,5% Revenue (GGR) 898.891 1.173.222 -274.331 -23,4% GGR contribution and oth
Slide 30: Consolidated Cash Flow statement
Consolidated Cash Flow statement as of 30 September 2020 & 30 September 2019 Consolidated Cash flow statement ('000 € ) 30.09.2020 30.09.2019 OPERATING ACTIVITIES Assets Οperating Activities before WCC 201.837 290.109 Changes in Working Capital Inventories -3.286 -8.567 Receivables 40.910 18.466 Pay