Slide 1: H1 2022 results
H1 2022 results 22 September 2022
Slide 2: Agenda
Agenda 2 Highlights Financial review Strategic priorities and outlook Mor Weizer Andrew Smith Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer H1 2022 results
Slide 3: Today's highlights
Today’s highlights 3 Excellent H1; strategy in place to continue momentum • Record H1 revenues; Adjusted EBITDA of €204 million (+64% v H1 2021) • Geographic diversification to drive bottom line • Strong pipeline to continue growth trajectory • B2B: refining business model to drive margins • B2C: re
Slide 4: Executing on 2022 priorities
Executing on 2022 priorities 4 Delivering our strategy Consolidate LatAm footprint Continue laying foundations for US & Canada Drive Live Casino & SaaS Snaitech excellence positions B2C expansion Sector leadership in Sustainability H1 2022 results
Slide 5: Ukraine update
Ukraine update 5 Focus on ensuring safety of employees and their families • Safety of our employees and their families remains the priority • Timely response by internal crisis management team • Playtech has robust business continuity process; operations minimally disrupted • Varied functions based
Slide 6: Agenda
Agenda 6 Highlights Financial review Strategic priorities and outlook Mor Weizer Andrew Smith Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer H1 2022 results
Slide 7: Financial highlights
Financial highlights 7 Impressive H1 performance; momentum continues into H2 • Excellent H1 performance with Adjusted EBITDA of €204 million (+64% v H1 2021) • B2B - regulated markets driving growth, particularly across Europe and Americas • B2C – online strength continues despite reopening of retai
Slide 8: Summary by division
Summary by division 8 Excellent H1 performance 73% H1 22 v € millions H1 2021 H1 2022 H1 21 % Continuing operations B2B Gambling 267.2 312.0 17% Growth in Group revenue B2C Gambling 196.6 487.3 148% €204m Intercompany (6.4) (7.0) -9% Group revenue 457.4 792.3 73% B2B Gambling 72.1 77.2 7% Group adju
Slide 9: B2B Gambling
B2B Gambling 9 Regulated markets driving strong growth in B2B € millions H1 2021 H1 2022 H1 22 v H1 21 % Regulated – Americas 46.4 69.8 50% Regulated – Europe 66.5 92.2 39% Regulated – UK 59.6 63.9 7% Regulated – Rest of World 1.9 2.9 53% Total Regulated B2B revenue 174.4 228.8 31% Unregulated excl.
Slide 10: Impressive Snaitech performance
Impressive Snaitech performance 10 Resilient online performance despite reopening of retail H1 22 v H1 21 € millions H1 2019 H1 2021 H2 2021 H1 2022 % Retail betting 85.9 6.3 80.0 94.2 1,395% Gaming machines 249.0 17.1 225.3 218.5 1,178% Online 46.4 123.4 106.5 117.5 -5% Other 14.5 11.3 14.8 15.8 40
Slide 11: Available cash
Available cash 11 Strong cash position further strengthens balance sheet As at 30 June 2022 € millions Gaming Snaitech Total Gross Cash 383.5 297.7 681.2 Client funds / progressives (98.7) (36.9) (135.6) Adjusted gross cash 284.8 260.8 545.6 Cash needed for operations (50.0) (30.0) (80.0) Available
Slide 12: Balance sheet
Balance sheet 12 Strong cash generation; deleveraging continues • Strong cash generation with Adjusted Operating Cashflows of €217 million excluding Finalto • Finalto sale completed in July 2022; RCF fully repaid • Net debt to EBITDA < 1 following Finalto sale provides flexibility • October 2023 ref
Slide 13: Outlook
Outlook 13 Momentum continues into H2 2022; confident for remainder of the year • Excellent performance from H1 has continued into H2 2022 albeit with normal seasonal trends • Momentum in B2B and B2C businesses expected to continue • Managing impact from Ukraine invasion, however risk of disruption
Slide 14: Agenda
Agenda 14 Highlights Financial review Strategic priorities and outlook Mor Weizer Andrew Smith Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer H1 2022 results
Slide 15: Playtech's strategy
Playtech’s strategy 15 Drive revenue growth and expand margins B2B B2C Extend our lead in regulated markets Drive further organic growth at Snaitech Monetise investments made Execute HAPPYBET strategy Refocus on Core B2B Targeted M&A to expand Snaitech Sustainable Success – leading on ESG in our ind
Slide 16: B2B strategy
B2B strategy 16 Drive revenue growth and expand margins B2B 1 2 3 Extend our lead in Monetise Refocus on Core B2B regulated markets investments Region Americas Europe Drive efficiencies Managed Live SaaS Review underperforming businesses Casino Live Sports Services Product IMS Eliminate duplication
Slide 17: B2B: Extend our lead in regulated markets (US)
B2B: Extend our lead in regulated markets 17 Global iGaming leader; positioned in US to capitalise Total B2B opportunity in US Signed multiple, multi-state deals c. $3 billion Total B2B opportunity (excl. structured agreements) • Significant opportunity in US across products • iGaming addressable ma
Slide 18: B2B: Mexico blueprint for LatAm
B2B: Extend our lead in regulated markets 18 Mexico represents a blueprint for success in rest of LatAm • Strategic agreement with Caliente has Mexico revenues (FY15-FY21) been a huge success 100 • Dominant local partner and attractive 90 market dynamics 80 72% • Caliente now our largest customer 70
Slide 19: LatAm: Executing on our other structured agreements
B2B: Extend our lead in regulated markets 19 LatAm: Executing on our other structured agreements Country Population GDP (USD mn) Mexico 129,000,000 1,300,000 Brazil 213,000,000 1,600,000 Colombia 51,000,000 314,000 Argentina 45,000,000 492,000 Peru 33,000,000 223,000 Chile 19,000,000 317,000 Guatema
Slide 20: B2B: Capitalise on opportunity in regulated markets
B2B: Capitalise on opportunity in regulated markets 20 A textbook example of executing in newly regulated markets • Netherlands is a top 10 market in Europe • Online market launched on 1 October 2021 • Holland Casino is a state-owned, land-based operator with 14 casinos across country • Launched wit
Slide 21: B2B: Monetise investments in Live
B2B: Monetise investments in Live 21 Live: Capitalising on an attractive product vertical Live represents a hugely attractive vertical Significant investments already made $18 billion Global GGR market size by 2025* • Significant market growth expected driven by: • Shift to online casino from retail
Slide 22: B2B: Monetise investments in SaaS
B2B: Monetise investments in SaaS 22 SaaS: an attractive business model to expand addressable market Addressing the bottom of the pyramid All the infrastructure in place… Strategic agreements • Significant infrastructure investment since 2017 • Added over 300 brands since SaaS offering launched Conv
Slide 23: B2C strategy
B2C strategy 23 Exploit growth opportunities B2C Drive further organic Execute HAPPYBET Targeted M&A to growth at Snaitech strategy expand Snaitech Sustainable Success – leading on ESG in our industry H1 2022 results
Slide 24: B2C: Extend Snaitech leadership in Italy
B2C: Extend Snaitech leadership in Italy 24 A stronger business post pandemic • Largest gambling market in Europe* • Online shift accelerated: now >50% of EBITDA • Higher margin, less capital-intensive business • Online penetration still only 25% in Italy versus 55% in UK ** • Ideally positioned wit
Slide 25: Sustainable Success – leading on ESG in our industry
Sustainable Success – leading on ESG in our industry 25 Delivering our ESG commitments Governance Diversity, Equity and Inclusion Environment Safer Gambling Community Investment H1 2022 results
Slide 26: Today's highlights
Today’s highlights 26 Excellent H1; strategy in place to continue momentum • Record H1 revenues; Adjusted EBITDA of €204 million (+64% v H1 2021) • Geographic diversification to drive bottom line • Strong pipeline to continue growth trajectory • B2B: refining business model to drive margins • B2C: r
Slide 27: Investor days
Investor days 27 Investor events to highlight growth opportunities across Playtech Snaitech investor event straight after this presentation • Showcase strategy and growth potential B2B investor event in Q4 (provisionally 1 December) • Highlight B2B growth opportunities in Americas, Europe, Live Casi
Slide 28: Appendix
Appendix
Slide 29: Summary by division
Summary by division 29 Group results H1 2021 (€m) H1 2022 (€m) Revenue Adj. EBITDA Margin Revenue Adj. EBITDA Margin B2B Gambling 267.2 72.1 27% 312.0 77.2 25% Reported B2C Gambling 196.6 52.0 26% 487.3 126.6 26% (Intercompany) (6.4) - n/a (7.0) - n/a Group (continuing operations) 457.4 124.1 27% 79
Slide 30: B2B Gambling
B2B Gambling 30 Regulated markets driving strong growth in B2B H1 22 v H1 21 H1 22 v H1 21 H1 22 v H2 21 € millions H1 2021 H2 2021 H1 2022 % CC% % Regulated – Americas 46.4 54.9 69.8 50% 37% 27% Regulated – Europe 66.5 74.9 92.2 39% 39% 23% Regulated – UK 59.6 72.5 63.9 7% 4% -12% Regulated – Rest
Slide 31: B2B Gambling margin
B2B Gambling margin 31 € millions H1 2021 H1 2022 % Total B2B Gambling revenue 267.2 312.0 17% B2B costs (195.1) (234.8) 20% B2B Adjusted EBITDA 72.1 77.2 7% B2B Gambling margin 27% 25% Revenue and costs relating to B2B white label, Underlying revenue and costs Hosting, Hardware & Live dedicated tab
Slide 32: B2B Gambling costs (underlying)
B2B Gambling costs (underlying) 32 H1 22 v H1 € millions H1 2021 H1 2022 21 % R&D 36.1 38.5 7% G&A 30.3 33.4 10% Operations* 28.5 43.9 54% S&M 5.8 8.0 38% Total (ex Asia, Strategic expenditure) 100.7 123.8 23% Strategic expenditure** 28.3 41.0 45% Asia*** 25.2 30.8 22% Total B2B Gambling costs (unde
Slide 33: Snaitech online
Snaitech online 33 Reconciliation of Snaitech’s online margin € millions H1 2021 H1 2022 % Online gross revenue* 203.7 196.6 -3% Gambling taxes and bonuses 80.3 79.1 -1% Online revenue (as reported)** 123.4 117.5 -5% Online Adjusted EBITDA 72.6 67.0 -8% Adjusted EBITDA margin (gross)* 36% 34% Adjust
Slide 34: B2C Gambling performance
B2C Gambling performance 34 EBITDA growth driven by strong online Revenue Adjusted EBITDA € millions H1 2021 H1 2022 % CC% H1 2021 H1 2022 % Snaitech (incl. HPYBET) 166.4 455.6 174% 174% 46.6 126.5 171% White label (incl. Sun Bingo) 30.2 31.7 5% 3% 5.4 0.1 -98% Total B2C Gambling 196.6 487.3 148% 14
Slide 35: Net profit and EPS
Net profit and EPS 35 Group (continuing operations) Adjusted € millions H1 2021 H1 2022 % Adjusted EBITDA 124.1 203.8 64% - Depreciation & Amortisation -65.1 -58.6 -10% - Net finance costs -32.1 -19.8 -38% - Tax 27.6 -28.0 n/a - Gain from Associate & JV 0.1 -3.1 n/a Non-controlling interest 0.0 0.0
Slide 36: Contingent consideration
Contingent consideration 36 Group Contingent consideration Payment date Maximum payable earnout and redemption liability (based on maximum Acquisition (per terms of acquisition) (as at 30.06.2022) payable earnout) Wplay €1.0 million €1.0 million Q1 2023 €5.0 million Q1 2023 Statscore €15.0 million €
Slide 37: Thank you
Thank you