Slide 1: FY 2021 results
FY 2021 results 24 March 2022 eplaytech
Slide 2: Agenda
Agenda 2 Group overview Financial review Strategic priorities and outlook Mor Weizer Andrew Smith Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer FY 2021 results
Slide 3: Ukraine crisis
Ukraine crisis 3 Safety of our employees is paramount • Immediate support including: • Voluntary relocation • 24/7 transportation • Accommodation support • Emergency supplies • 24/7 communication • Mental health & wellbeing FY 2021 results
Slide 4: Highlights
Highlights 4 Excellent 2021 driven by Americas and Snaitech • Playtech has transformed through pandemic • Laying foundations for US growth • Dominance in Latin America • Live Casino accelerating • Record performance from Snaitech FY 2021 results
Slide 5: Agenda
Agenda 5 Group overview Financial review Strategic priorities and outlook Mor Weizer Andrew Smith Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer FY 2021 results
Slide 6: Financial highlights
Financial highlights 6 Excellent H2 drives strong 2021 performance • Strong FY with Adjusted EBITDA of €317 million; ahead of expectations • H1 – very strong online; retail closures in Italy longer than expected • H2 – firing on all cylinders with excellent B2B online, strong Snaitech & favourable s
Slide 7: Summary by division
Summary by division 7 Strong performance across the Group FY 2020 (€m) FY 2021 (€m) Revenue Adj. EBITDA Margin Revenue Adj. EBITDA Margin B2B Gambling 494.9 125.9 25% 554.3 139.2 25% B2C Gambling 596.3 127.7 21% 663.7 177.9 27% (Intercompany) (12.7) - n/a (12.6) - n/a Group (continuing operations) 1
Slide 8: B2B Gambling
B2B Gambling 8 Strong growth from regulated markets Underlying basis* € millions FY 2020 FY 2021 % CC% % Regulated – Americas 60.6 101.3 67% 64% 63% Regulated – Europe 113.2 141.4 25% 25% 42% Regulated – UK 149.9 132.1 -12% -15% 2% Regulated – Rest of World 2.9 3.9 34% 34% n/a Total Regulated B2B re
Slide 9: B2B Gambling costs (underlying)
B2B Gambling costs (underlying) 9 Cost control allows targeted strategic expenditure 2020 to 2019 to 2021 € millions FY 2019 FY 2020 FY 2021 2021% CAGR % R&D 71.2 71.1 74.7 5% 2% G&A 52.0 59.6 60.5 2% 8% Operations* 63.3 67.5 74.7 11% 9% S&M 19.3 15.2 13.0 -14% -18% Total (ex Asia, Strategic expendi
Slide 10: Snaitech performance
Snaitech performance 10 2021 driven by excellent online performance € millions FY 2019 FY 2020 FY 2021 FY21 v FY20 % Retail betting 174.1 112.1 86.3 -23% Gaming machines 523.7 227.5 242.4 7% Online 100.3 158.5 229.9 45% Other 31.6 24.1 26.1 8% Total revenue 829.7 522.2 584.7 12% Retail Adjusted EBIT
Slide 11: Balance sheet
Balance sheet 11 Strong balance sheet; prudent approach remains • Strong cash generation with Adjusted Operating Cashflows of €318 million • Prudent approach to capital structure and leverage • Strong balance sheet with no immediate refinancing requirements: • €150 million of RCF repaid in 2021 • lo
Slide 12: Structured Agreements – Option Values
Structured Agreements – Option Values 12 Third party valuation of call options • 6 Structured Agreements in Latin America – current largest ones in Mexico and Colombia • Playtech generates revenue from Structured Agreements through: • Revenue share • Cost plus services • Revenue linked services fee*
Slide 13: Outlook
Outlook 13 Strong start to 2022 – momentum to continue Current trading • Strong start to 2022 • B2B momentum driven by Americas and Europe • Snaitech strength to continue driven by online and reopened retail Outlook • Strength from H2 and start of 2022 gives confidence for full year • Managing the i
Slide 14: Agenda
Agenda 14 Group overview Financial review Strategic priorities and outlook Mor Weizer Andrew Smith Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer FY 2021 results
Slide 15: Executing 2021 priorities
Executing 2021 priorities 15 Delivering our strategy 2021 priorities Progress 1. Significantly accelerate US presence Parx launched in MI, PA, NJ; Live facilities opened; Sci Games & Novomatic partnerships; further licences obtained 2. Execute on structured agreements in LatAm Excellent growth from
Slide 16: Safer gambling & ESG
Safer gambling & ESG 16 Delivering on our Sustainable Success commitments • Governance: Established Sustainability and Public Policy Board Committee & Stakeholder Advisory Panel • Diversity, Equity & Inclusion (DE&I): improved on Hampton Alexander metrics and introduced new targets for senior manage
Slide 17: Ukraine – Impact on B2B business
Ukraine – Impact on B2B business 17 Minimising disruption to operations • Safety of our employees and their families remains the priority • Timely response by internal crisis management team • Playtech has robust business continuity process; minimising disruptions • Varied functions based in Kyiv; n
Slide 18: Our US market approach
Our US market approach 18 Laying the foundations for future growth Technology & Customers & Market Entry Products Partnerships Photo by: Mario Pampel Postproduction • State by state approach • IMS platform (PAM) including CRM, • Existing customers worldwide • Licensed in 5 states BI & safer gambling
Slide 19: US progress
US progress 19 Continued strategic and operational momentum Executing in New Launched with Parx Distribution Live Casino facilities Jersey with bet365 in Michigan, New agreements with launched in Michigan & BetMGM Jersey, Pennsylvania Novomatic & & New Jersey Scientific Games US workforce now Licens
Slide 20: US Live Casino facilities
US Live Casino facilities 20 Exciting new studios in MI & NJ; more to come… FY 2021 results
Slide 21: Parx Casino (the Greenwood companies)
Parx Casino (the Greenwood companies) 21 Executing on strategic multi-state, multi-product deal Progress update Upcoming • Michigan: launched online casino • New Jersey: Live Casino launch on Playtech’s IMS platform & upcoming Player Account Management (PAM), and Live Casino • Pennsylvania: Live Cas
Slide 22: Latin America
Latin America 22 Leading position in the market • Strategy focused on structured agreements • Caliente continuing excellent growth; number 1 customer in FY • Wplay growth accelerating • Launched in Panama & Costa Rica; Guatemala in progress • Launched with Galerabet in Brazil • Peru Live Casino faci
Slide 23: Holland Casino
Holland Casino 23 Launched strategic agreement to capture market opportunity • State-owned, land-based operator in • Launched with Playtech’s technology and Netherlands products to expand into online space • 14 casinos across the country • Full turnkey offering; IMS platform, all product verticals,
Slide 24: Live Casino
Live Casino 24 Accelerated investment; continuing momentum Strong growth Increasing capacity to meet demand • >€100 million revenue in 2021 • Over 250 tables (Jan-2022) vs. 135 (Jan-2019) • >35% EBITDA margin • New facilities launched in Michigan, New Jersey, Netherlands, Switzerland; Pennsylvania u
Slide 25: SaaS offering
SaaS offering 25 Executing our strategy; momentum building • Signed over 100 new brands in 2021 alone • Added over 250 brands since we launched offering in 2019 • SaaS revenue nearly doubled in 2021 • High margin model • Continued diversification of B2B business; gives Playtech access to every opera
Slide 26: Snaitech leadership in Italy
Snaitech leadership in Italy 26 Operational strength to continue • Second largest gambling market in Europe • Online penetration remains low; shift accelerated by COVID-19 from 11% (2019) to 27% (2021) • Exciting growth ahead in both retail and online • Ideally positioned to capture opportunity with
Slide 27: 2022 priorities
2022 priorities 27 Executing our growth strategy 1 2 3 4 5 Execute on Drive Live Drive Snaitech to Prioritise US LatAm Casino & Sustainable cement Italy acceleration structured extend B2B Success leadership agreements reach strategy FY 2021 results
Slide 28: Q&A
Q&A
Slide 29: Appendix
Appendix
Slide 30: Summary by division – Group results
Summary by division 30 Group results FY 2020 (€m) FY 2021 (€m) Revenue Adj. EBITDA Margin Revenue Adj. EBITDA Margin B2B Gambling 494.9 125.9 25% 554.3 139.2 25% Reported B2C Gambling 596.3 127.7 21% 663.7 177.9 27% (Intercompany) (12.7) - n/a (12.6) - n/a Group (continuing operations) 1,078.5 253.6
Slide 31: B2B Gambling margin
B2B Gambling margin 31 Strong improvement in Adjusted EBITDA € millions FY 2020 FY 2021 % Total B2B Gambling revenue 494.9 554.3 12% B2B costs 369.0 415.1 12% B2B Adjusted EBITDA 125.9 139.2 11% B2B Gambling margin 25% 25% n/a Revenue and costs relating to B2B white label, Underlying revenue and cos
Slide 32: Snaitech online
Snaitech online 32 Reconciliation of Snaitech’s online margin € millions FY 2020 FY 2021 % Online gross revenue* 266.2 384.2 44% Gambling taxes 72.3 102.4 42% Bonusing 35.4 51.9 47% Online revenue (as reported)** 158.5 229.9 45% Online Adjusted EBITDA 87.7 135.3 54% Adjusted EBITDA margin (gross)* 3
Slide 33: B2C Gambling performance
B2C Gambling performance 33 EBITDA growth driven by strong online Revenue Adjusted EBITDA € millions FY 2020 FY 2021 % CC% FY 2020 FY 2021 % Snaitech (incl. HPYBET) 541.3 601.7 11% 11% 120.7 171.1 42% White label (incl. Sun Bingo) 55.0 62.0 13% 9% 7.0 6.7 -4% Total B2C Gambling 596.3 663.7 11% 11% 1
Slide 34: Finalto results
Finalto results 34 Discontinued operation USD millions FY 2020 FY 2021 % Net Revenue $136.4 $55.0 -60% Adjusted EBITDA $62.0 -$26.6 n/a Margin 45% n/a FY 2021 results
Slide 35: Net profit and EPS
Net profit and EPS 35 Group (continuing operations) Adjusted € millions FY 2020* FY 2021 % Adjusted EBITDA 253.6 317.1 25% - Depreciation & Amortisation -149.1 -134.3 -10% - Net finance costs -60.4 -61.8 2% - Tax -17.9 7.2 n/a - Gain from Associate & JV 1.1 -0.6 n/a Non-controlling interest 0.1 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 31.12.2021) payable earnout) HPYBET Austria GmbH €15.0 million - n/a Eyecon Limited €3.6 million €3.6 million Q1 20
Slide 37: Thank you
Thank you