Pollard Banknote Limited · TSX:PBL
Pollard Banknote — Shareholder Meeting (May 2024)
37 slides from Pollard Banknote's shareholder meeting presentation, May 2024
Slide 1: 2024 Annual General Meeting
POLLARD banknote limited 2024 ANNUAL GENERAL MEETING
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements in this presentation may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, perfor
Slide 3: Today's Agenda
Today’s Agenda 1. Financial Highlights 2. 2023 Business Updates 3. 2023 Annual Results 4. 2024 First Quarter Results
Slide 4: Financial Highlights
Financial Highlights ($ Millions) 2016 2017 2018 2019 2020 2021 2022 2023 COMBINED $246.4 $286.0 $332.6 $400.3 $426.9 $499.2 $538.8 $600.6 SALES(1) SALES $246.4 $285.7 $331.9 $397.8 $414.1 $459.0 $483.7 $520.4 ADJUSTED $29.7 $44.0 $48.8 $60.2 $80.6 $84.0 $80.5 $91.3 EBITDA(1) NET DEBT $63.4 $79.0 $1
Slide 5: Financial Highlights
Financial Highlights • Ongoing strong demand for all products and solutions. • Instant ticket profit margins were low due to fully absorbing 2022 inflation cost increases on major inputs including paper, ink, and other items. • A majority of our instant ticket contracts have been repriced to help of
Slide 6: Partner of Choice
Partner of Choice Outstanding Games. Retail Excellence. Digital Innovation. POLLARD banknote limited
Slide 7: 2023 Business Update
2023 BUSINESS UPDATE POLLARD banknote limited
Slide 8: Retail Lottery
RETAIL LOTTERY POLLARD banknote limited
Slide 9: 10 Year Instant Ticket Sales Growth
10 Year Instant Ticket Sales Growth $120,000 19% $110,000 3.9% $107,203 4-YR CAGR Growth $100,000 10-YR $90,000 Instant Sales ($ US Millions) $80,000 Worldwide 23% $70,000 5.1% $67,085 4-YR CAGR Growth $60,000 10-YR $50,000 North America $40,000 $30,000 $20,000 CY2013 CY2014 CY2015 CY2016 CY2017 CY2
Slide 10: Instant Ticket – Margin Recovery
Instant Ticket – Margin Recovery • Strategy to reprice our instant ticket contracts continues to be successful. • A majority of our contracts have now been re-priced. • Positive impact on our revenue started during 2023 but price increases negotiated to date won’t be fully reflected until the end of
Slide 11: ¢'S Schafer
¢'S Schafer &P RETAIL SOLUTIONS + . POLLARD s BUY LOT Guity TRRETS Hee POLLARD banknote limited
Slide 12: Digital Solutions & iLottery
DIGITAL SOLUTIONS & iLOTTERY
Slide 13: PlayOn QgameON
PLAYON QgameON ® Ric wee
Slide 14: NPi powers the most profitable iLotteries in the United States
NPi powers the most profitable iLotteries in the United States FY2023 Gross iLottery Sales Per Capita 66% $300 $250 $200 $150 $100 $50 Lotto Only $0 GROSS WAGER MARKET SHARE “NeoPollard continues to be the leading iLottery platform provider in the U.S. due to its success in Michigan and Virginia alo
Slide 15: 2023 NPi iLottery Results
2023 NPi iLottery Results 2019 2020 2021 2022 2023 Q1 2024 Revenue - Pollard Share Michigan iLottery $16.4 $33.5 $26.7 $26.5 $28.0 $7.1 NeoPollard JV $2.5 $12.6 $40.1 $55.1 $80.3 $25.5 Combined Revenue(1) $18.9 $46.1 $66.8 $81.6 $108.3 $32.6 Income before Profit Share & Income Taxes – Pollard Share
Slide 16: Pollard iLottery Gaming Platform
POLLARD iLOTTERY GAMING PLATFORM
Slide 17: bele dus a
bele dus a Boacic National Lottery ppEeey pret 4 POLLARD banknote limited
Slide 18: Charitable Gaming
CHARITABLE GAMING POLLARD banknote limited
Slide 19: Pollard Charitable Games Group
POLLARD CHARITABLE GAMES GROUP © DiamondGame NexPlay Gea AMERICAN International: i 24.33.5078 {1 |19133/50(69) 7 82 \|7 21 44 4875)y i 9 20 = 5173) 12/41 55163 "lq 29 40 6062) 9 22.47 55, 3215865 [111797 5961 | © 27 32154 39.48 5364| 2 >57/50i6i| © 1949.59 6a)" 28 26148 73/6 1642157 72| 1228 96 aei7
Slide 20: Pollard Charitable Gaming & eGaming Systems Sales Trend
Pollard Charitable Gaming & eGaming Systems ($US) Sales Trend 2016-2023 Note: Sales include historical results of acquisitions back to 2017
Slide 21: Minnesota Charitable Gambling
Minnesota Charitable Gambling 5-Year CAGR FY2023 vs. FY2017 Overall 15% Paper Bingo/Pulltabs 5% and others Electronic Bingo/ 31% Pulltabs Note: Others-paper includes tipboards, paddlewheel, raffles Fiscal Year Ends June
Slide 22: 2023 Annual Results
2023 ANNUAL RESULTS POLLARD banknote limited
Slide 23: 2023 Highlights
2023 Highlights ($M) 2019 2020 2021 2022 2023 (1) Combined sales $400.3 $426.9 $499.2 $538.8 $600.6 Sales $397.8 $414.3 $459.0 $483.7 $520.4 Gross Margin $91.1 $91.0 $90.7 $83.4 $85.8 SG + A $56.5 $54.9 $64.4 $67.3 $79.0 NPi JV Income (Loss) ($3.9) $1.6 $12.3 $23.7 $39.1 Other Income (Expense) $2.0
Slide 24: Fiscal Combined Sales
Fiscal Combined Sales (1) ($M) Annual sales adjusted to 2023 average rate of $1.35 CDN per USD (1) See Non-GAAP measures for explanation
Slide 25: Fiscal 2023 Combined Sales
Fiscal 2023 Combined Sales (1) ($M) (1) See Non-GAAP measures for explanation
Slide 26: Adjusted EBITDA
Adjusted EBITDA (1) ($M) *Adjusted EBITDA prior to 2019 not including impact of IFRS 16 (1) See Non-GAAP measures for explanation
Slide 27: 2023 Adjusted EBITDA
2023 Adjusted EBITDA (1) ($M) (1) See Non-GAAP measures for explanation
Slide 28: 2023 Highlights
2023 Highlights • Record combined sales of $600.6 million. • Strong levels of demand across all product lines, particularly in iLottery and eGaming systems. • Adjusted EBITDA(1) achieved of $91.3 million despite ongoing negative pressure on instant ticket margin. • NPi iLottery operations attained r
Slide 29: Strong Cashflow
Strong Cashflow ($M) 2019 2020 2021 2022 2023 Cash Flow before CAPEX & W/C $47.8 $72.5 $59.9 $69.6 $55.0 Change in Working Capital ($22.5) ($11.0) $9.2 ($15.4) $9.7 Net Cash Flow before CAPEX (subtotal) $25.3 $61.5 $69.1 $54.2 $64.7 CAPEX ($25.8) ($18.9) ($34.8) ($33.2) ($38.1) Net Operating Cash Fl
Slide 30: 2024 First Quarter Results
2024 FIRST QUARTER RESULTS POLLARD banknote limited
Slide 31: Q1 2024 Highlights
Q1 2024 Highlights ($M) Q1 Q1 2023 2024 Combined sales(1) $143.6 $151.2 Sales $125.1 $125.7 Gross Margin $17.7 $21.5 SG + A $18.1 $20.7 NPi JV Income $8.2 $12.2 Adjusted EBITDA(1) $18.6 $23.7 Net Income $4.8 $6.9 (1) See Non-GAAP measures for explanation
Slide 32: Q1 2024 Combined Sales
Q1 2024 Combined Sales (1) ($M) (1) See Non-GAAP measures for explanation
Slide 33: Q1 2024 Adjusted EBITDA
Q1 2024 Adjusted EBITDA (1) (1) See Non-GAAP measures for explanation
Slide 34: Q1 Highlights
Q1 Highlights • Ongoing strong demand for all of our products and solutions. • iLottery generated record earnings on strong organic growth and high draw-based jackpots. • Charitable gaming, both printed and eGaming systems, continue to experience strong demand. • Instant ticket volumes low due to ti
Slide 35: Thank you for your time and your attention today
Thank you for your time and your attention today. FOR MORE INFORMATION CONTACT: Doug Pollard John Pollard Co-Chief Executive Officer Co-Chief Executive Officer Telephone: (204) 474-2323 Telephone: (204) 474-2323 E-mail: dpollard@pbl.ca E-mail: jpollard@pbl.ca Rob Rose Chief Financial Officer Telepho
Slide 36: Appendix
APPENDIX POLLARD banknote limited
Slide 37: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (1) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net income $1.8 $3.1 $6.5 $5.4 $8.7 $7.5 $12.3 $16.8 $14.9 $22.0 $33.3 $19.7 $19.3 $31.4 Adjustments: Amortization & depreciation $8.6 $8.4 $7.8 $8.6 $7.9 $8.4 $10.6 $13.1 $18.0 $27.1 $31.5 $39.5