Evoke Plc · LSE:EVOK
Evoke — 888 Holdings — Investor Presentation (May 2022)
36 slides from Evoke's investor presentation, May 20, 2022
Slide 1: 888 Holdings Plc Corporate Presentation
888 Holdings Plc Corporate Presentation May 2022
Slide 2: Disclaimer
DISCLAIMER Forward-looking statements ◎ Certain information contained in this document, including any information as to the Company’s strategy, plans or future financial or operating performance constitutes “forward-looking statements”. These forward-looking statements can be identified by the use o
Slide 3: Agenda
AGENDA 1 Introduction to 888 2 Overview of William Hill Transaction 3 FY 2021 Results and Q1 2022 Trading Update 4 Summary 3
Slide 4: Introduction to 888
INTRODUCTION TO 888 4
Slide 5: 888: At a Glance
888: AT A GLANCE A leading global online betting and gaming company Business overview Revenue mix by product – 2021 Quarterly revenue evolution ($ millions) ◎ Scalable, secure and proven proprietary B2B technology platform 4% 100% online Betting ◎ Full end-to-end product suite across 13% Casino, Spo
Slide 6: Regulated Market Footprint
REGULATED MARKET FOOTPRINT Well diversified geographic mix with a focus on regulated markets Significant expertise operating across attractive regulated markets Diversified revenue mix (H1 2021) Denmark 19 Licences ROW ▪ UK 1% (2%) Ireland UK ▪ Gibraltar Americas 13% (11%) Sweden ▪ Ireland Italy UK
Slide 7: Proprietary Technology
PROPRIETARY TECHNOLOGY Unique infrastructure with scalable and proven in-house technology ◎ Highly scalable and secure proprietary Customer-facing interface: mobile, tablet, and desktop platform underpins competitive advantages ◎ UX / responsiveness / speed / segmentation and personalisation / Contr
Slide 8: 888: A Global Leader
888: A GLOBAL LEADER Refined our strategic framework to 3 focus areas to deliver long-term, sustainable growth Market focus Sustainable competitive advantages Value enhancing M&A Clear focus on the addressable Invest in core capabilities to reinforce our competitive A structured and systematic growt
Slide 9: Market Focus
MARKET FOCUS Clear focus on attractive long-term growth opportunities, with strong progress in 2021 Markets: UK; Italy; and Spain Markets: High priority growth opportunities % Revenue: 59% % Revenue: 21% 2021 revenue growth: 18% Core Growth 2021 revenue growth: 26% Plans: Build on established market
Slide 10: Market Focus – The USA
MARKET FOCUS – THE USA Long-term growth opportunity where we can leverage iconic brands to grow profitably Technology Iconic Leading Brand Operational Expertise Market Access Scalable proprietary Integrated content, media and Product leadership; world class Medium term target platform gaming creatin
Slide 11: Product Leadership
PRODUCT LEADERSHIP Best-in-class features; differentiated proprietary content; and AI-driven personalisation Content-rich Usability Industry leading UX, built Safety with a customer-first focus Over 870 games added to 888’s quick and intuitive Mobile-first award-winning Poker product 888casino in 20
Slide 12: World Class Brands
WORLD CLASS BRANDS Made to Play master brand plan builds on our position as a leading global casino brand 58% 72% 68% 60% 888casino is the only 55% 54% 55% 52% 50% 46% 48% 47% 47% Plans to reinforce global casino brand, 52% our brand in core 50% with leading brand markets and awareness in our increa
Slide 13: Customer Excellence
CUSTOMER EXCELLENCE Understanding customer needs to create the best betting and gaming experiences Customer Insight Customer Service Customer Safety ◎ Significantly expanded capabilities and Customer satisfaction ◎ Cutting edge Control Centre tool gives team during 2021 to develop a deep (rebased to
Slide 14: Value Enhancing M&A
VALUE ENHANCING M&A Becoming a global leader through strategically and financially attractive M&A Platform for long-term growth in the US through strategic partnership with an Creating a global online betting and gaming leader by bringing together two highly iconic US brand to launch SI complementar
Slide 15: Made for the Future
MADE FOR THE FUTURE Developing clear ESG framework to set a platform for sustainable long-term growth All underpinned by a robust corporate governance framework 15
Slide 16: Safer Gambling
SAFER GAMBLING 888 is committed to ongoing improvement in making gambling safer Safer gambling is a key pillar We recognise that we must use of 888’s wider ESG framework technology as a force for good 888 has developed two critical technologies that are central to our approach to safer gambling: ◎ O
Slide 17: Overview of William Hill International Transaction
OVERVIEW OF WILLIAM HILL INTERNATIONAL TRANSACTION 17
Slide 18: A Powerful Combination
A POWERFUL COMBINATION Transformational acquisition creating a high-growth global leader with significant scale Complementary Brands products and brands Active 2.2 million > 3 million > 5 million customers Revenues £712m £1,404m1 £2,116m (FY 2021) Adjusted EBITDA £120m £260m1 £383m2 £437m including
Slide 19: Strategic Rationale
STRATEGIC RATIONALE Transformational acquisition creating a high-growth global leader with significant scale The Acquisition brings together two highly complementary businesses, combines two of the industry’s leading brands, and significantly accelerates progress against our strategy: Pro forma comb
Slide 20: Multiple Strategic Benefits
MULTIPLE STRATEGIC BENEFITS Combining complementary businesses creates significant growth opportunities Sports betting is the fastest growing segment Scale and capabilities creates a virtuous circle ◎ Access to a leading brand with strong sports heritage ◎ Influx of operating expertise in sports bet
Slide 21: Synergies
SYNERGIES Significant synergy potential to drive immediate value creation and fuel growth ◎ Pre-tax cost synergies of c.£100m1 p.a. including c.£15m A broad range of benefits across the whole cost base capex synergies, to be realised by the end of 2025 Summary ◎ Estimated one-time cash costs ~1x syn
Slide 22: Capital Management Framework
CAPITAL MANAGEMENT FRAMEWORK Efficient capital structure for long term management of pro forma business Capital management framework Pro forma net debt post equity raise ◎ Fully committed debt financing Purchase price (£1.9bn) Debt ◎ Expect to announce credit ratings and syndicate institutional fina
Slide 23: FY 2021 Results and Q1 2022 Trading Update
FY 2021 RESULTS AND Q1 2022 TRADING UPDATE 23
Slide 24: FY2021 Financial Highlights
FY2021 FINANCIAL HIGHLIGHTS Record revenues and Adjusted EBITDA despite regulatory headwinds US$ millions 2021 2020 YoY B2C 941.9 814.3 16% ◎ Revenue growth of +15% (+10%cc1) driven by expansion in regulated markets Revenue B2B 38.2 35.4 8% Total 980.1 849.7 15% ◎ Adjusted EBITDA margin slightly dow
Slide 25: Adjusted EBITDA
ADJUSTED EBITDA 6% growth in Adjusted EBITDA despite increased investment in the US US$ millions 2021 2020 YOY Revenue Group revenue 980.1 849.7 15% ◎ Double digit growth across most major markets, despite challenging Cost of sales1 333.1 286.9 16% comparatives Gross profit1 647.0 562.8 15% ◎ Gross
Slide 26: Q1 2022 Trading Update
Q1 2022 TRADING UPDATE Strong strategic progress setting the platform for future growth US$ millions Q1 2021 Q4 2021 Q1 2022 YoY% QoQ% ◎ Group revenue of $224m (Q4 2021: $222m; Q1 2021: $273m). Revenue +1% compared to Q4 2021, driven by average monthly actives2 growth of 4%, reflecting continued foc
Slide 27: Summary
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Slide 28: Summary
SUMMARY Well positioned to deliver further strategic progress as we become a global leader ◎ Transformational acquisition of William Hill International, creating a high- growth global leader with significant scale ◎ Record financial results in 2021 and positive trading performance into 2022 despite
Slide 29: Appendix
APPENDIX 29
Slide 30: Quarterly Group Revenue – 888
QUARTERLY GROUP REVENUE – 888 US$m 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 B2C Gaming 107 111 109 114 131 186 175 200 221 208 194 192 191 B2C Betting 23 22 22 23 26 19 32 46 42 39 27 20 24 B2C 130 133 131 137 157 204 206 247 263 246 220 213 215 B2B 8 7 7 8 8 10 9 8 10 10 10 9 9 To
Slide 31: ESG and Sustainability
ESG AND SUSTAINABILITY Made for the Future ESG framework sets a platform for sustainable long-term growth Made to play safely Made together Made greener Preventing harm An inclusive workplace where people can grow Protecting our environment, including net zero through safe gambling and develop carbo
Slide 32: Enlarged Group Financials – Pro forma normalised
ENLARGED GROUP FINANCIALS Pro forma normalised £m $m FY19 FY20 FY21 FY19 FY20 FY21 Revenue Revenue 888 438.8 661.7 712.4 888 560.3 849.7 980.1 UK Online 480.9 503.2 628.6 UK Online 614.1 646.2 864.8 WHI WHI International Online 257.4 299.6 276.0 International Online 328.7 384.7 379.7 Retail1,2 717.0
Slide 33: Enlarged Group Financials – Reported statutory figures
ENLARGED GROUP FINANCIALS Reported statutory figures 888 + WHI Figures in £m FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Revenue 439 662 712 1,455 1,157 1,241 1,894 1,819 1,954 Cost of sales (144) (223) (249) (365) (68) (363) (508) (292) (612) Gross profit 295 438 464 1,091 1,089 878 1,386 1,527 1,
Slide 34: 888 and WHI History
888 AND WHI HISTORY Significant heritage and experience across both businesses Unlawful Internet Launched in Nevada, Secured US market Acquisition of Gambling Enforcement Acquired Mytopia; Delaware, and New Jersey – access in Colorado, William Hill Act enacted in US; all launched Poker the only oper
Slide 35: Diversifying Revenue Mix
DIVERSIFYING REVENUE MIX Complementary geographic profiles with diversified and balanced product offering 1 Enlarged group1 RoW RoW Americas 13% 1% Americas 1% Americas 5% 0% EMEA (ex. EMEA Geographic UK, Italy) (ex. UK, UK 16% UK UK Italy) mix EMEA Online Italy 3% Online 22% Online (ex. UK, 40% 45%
Slide 36: William Hill Retail
WILLIAM HILL RETAIL Attractive omni-channel opportunity in the UK, and key enabler of online growth Optimised >1,400 £499m £96.2m Revenue¹ EBITDA¹ Locations 2 Profitable estate Customer focus Omni-channel Covid Impact ◎ Optimised >1,400 ◎ Focus on product and ◎ Plus Card seamlessly ◎ Shops closed du