Super Group (sghc) Limited · NYSE:SGHC
Super Group (sghc) — SPAC Merger (November 2021)
67 slides from Super Group (sghc)'s SPAC merger presentation, Nov 12, 2021
Slide 1: Analyst Day Presentation November 2021
Analyst Day PresentationNovember 2021
Slide 2: Disclaimer
Disclaimer 2 This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed businesscombination (the “Business Combination”) between Sports Entertainment Acquisition Corp. (“SEAH”) and SGHC
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) 2 Nothing in this Presentation should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not rely on forward-lo
Slide 4: Disclaimer (cont'd)
Disclaimer (cont’d) 2 Industry and Market Data. In this Presentation, SEAH and the Company rely on and refer to certain information and statistics obtained from third-party sources including reports by market research firms and results of peer companies. Neither SEAH nor the Company has independentl
Slide 5: Today's Agenda
Today’s Agenda 2 Topic Speakers Introduction and Transaction Summary Eric Grubman, Chairman & CFO (SEAH) John Collins, CEO (SEAH) Business Overview Neal Menashe, CEORichard Hasson, President & COO Our Winning Hand Neal Menashe, CEORichard Hasson, President & COO Product, Marketing & Technology Neal
Slide 6: Today's Presenters
Neal MenasheCEO20+ years in the online gaming industryResponsible for the development and execution of the business vision, strategy and growth Richard HassonPresident and COO10+ years in the online gaming industryResponsible for corporate development, strategy and commercial operations Eric Grubman
Slide 7: SGHC is Uniquely Positioned in the Gaming Universe
Illustrative Gaming Companies Universe Super Group Advantage World-wide Reach and ScaleGroup licensed in 25 jurisdictions with ~3,700 employees and 2.5m+ monthly active customersDual OfferingHigh growth Betway coupled with cash generative SpinDigital DNAAsset-light business model limits capital expe
Slide 8: Proposed Transaction Summary
Proposed Transaction Summary 8 1 Assumes no redemptions.2 Based on a per share price of $10.00.3 Post-transaction ownership excludes shares subject to earn-out and warrants. SEAH has agreed to combine with Super Group based on a$4.75 billion pre-money equity valuationAssumes Super Group shareholders
Slide 9: Key Investment Highlights
Key Investment Highlights Holding company for leading online sports and online gaming with diversified global footprint Proven ability to enter and profitably launch in new markets Proprietary data & analytics engine drives retention and monetization Poised to benefit from strategic entry into the U
Slide 10: Business Overview
Neal Menashe, CEORichard Hasson, President & COO Business Overview
Slide 11: Our Vision and Winning Hand
Our VisionTo provide first-class entertainment to the worldwide betting and gaming community Our Winning HandWorld-wide focus…to reach as many customers as possibleGlobal sports brand and multi-brand casino…to drive global awarenessData-driven…to make the best possible decisions in real timeCulture…
Slide 12: Super Group Overview
Single-brand online sportsbookGlobal footprint & market shareStrategic partnerships with teams and leagues worldwideProfitable and high-growth sports betting offering Multi-brand online casinosEstablished market leadership in high-growth marketsData-led digital and affiliate marketing campaignsRobus
Slide 13: Established Global Footprint with Significant Room to Expand
Established Global Footprint with Significant Room to Expand 13 $1.1bn NGR2 22%Europe 48% Americas RoW 18% HighlightsFully scaled operations with ~3,700 employees across 17 in- country teams; product offered in 26 languagesOver $44bn in wagers in the last twelve months1Licensed in 25 jurisdictions (
Slide 14: Operating at Scale with Continued Growth
$456$418 $622$492 $769 1H19 2H19 1H20 2H20 1H21 14 Net Gaming Revenue1 ($m) Average Monthly Active Customers (m) CAGR 30% Operating at Scale with Continued GrowthSuper Group has strong topline growth driven by global expansion and new customers 0.9 1.1 2.5 1H19 1H20 1H21 CAGR 65% 1. See “Reconciliat
Slide 15: We Are Uniquely Positioned in Global Online Gaming
We Are Uniquely Positioned in Global Online Gaming 15 888 Holdings pro forma for announced acquisition of William Hill International.Announced acquisition of Golden Nugget Online Gaming by DraftKings. Pending Transaction2 1888 Digital Only Global Footprint Control of Tech Stack
Slide 16: We Have a Powerful Combination of Profitability and Growth
16 Source: PointsBet, Rush Street Interactive, DraftKings, Entain, Flutter and Kindred based on IBES Consensus estimates as of 09-Nov-2021; Caesars and Penn National Gaming based on research reports as of 09-Nov-2021.Note: 888 Holdings and Betsson AB excluded from diagram as these do not meet requir
Slide 17: We Benefit from Strong Industry Tailwinds
We Benefit from Strong Industry Tailwinds Regulatory momentum globally, especially in key markets such as the United States, Canada and GermanyShift to mobile and digital gaming accelerated by COVID-19 pandemicGrowing importance of having a strong online casino offering to anchor sports betting offe
Slide 18: Continuing to Execute on Our Growth Strategy
Continuing to Execute on Our Growth Strategy Strong 1H21 Operating and Financial Performance Positive Regulatory Momentum Now Live in Five U.S. States Continued Engagement with Key Brand Partners Launched in More International Markets Continued Investment in Technology and Data Analytics to Drive Ou
Slide 19: Our Winning Hand
Our Winning Hand Neal Menashe, CEORichard Hasson, President & COO
Slide 20: Why Super Group has Grown Organically
Why Super Group has Grown Organically 20 Digital-only since day oneSingle-brand global sportsbook (10+ years)Multi-brand casino (20+ years)Control of technology stackObsession with data and analyticsUnparalleled understanding of customersROI-driven marketingHighly experienced global workforce •
Slide 21: Digital Pioneers Driven by Data
Digital Pioneers Driven by DataData is the building block of every decision Super Group takes Data & analytics is an integral part of our DNA – it allows us to make the right decisions at the right times in the right markets Robustness: All potential variables and scenarios are considered when makin
Slide 22: Data and Analytics Enhances Customer Experience
Data and Analytics Enhances Customer Experience Customer-level AI identifies customer attributes and provides real time highly personalized offering Data & analytics creates a feedback loop constantly improving offering with every customer interaction 100+ million data points analyzed per day on ave
Slide 23: Constant Optimization of Customer Journey
Constant Optimization of Customer Journey ProductMostly sport ChurnMedium Lifestyle Active DepositMedium Customer DNA Data & Analytics Real-time Personalized Offers Customer SegmentationCustomer-level AI identifies customer attributes and provides personalized bet recommendations Data-Driven Bonus M
Slide 24: Super Group is in Control of its Own Technology Stack
Super Group is in Control of its Own Technology Stack Super Group owns or has exclusive, long-term partnerships for all its core technology assets in all material markets Control over technology allows alignment in roadmap, country launches and features End-to-end integration of best-in-class techno
Slide 25: Highly Experienced Global Team Operating Locally
Highly Experienced Global Team Operating Locally UK / Europe / RoW Africa / LATAM / CEE Jackpot City Spin Casino Others Super Group’s HQ management team guides the devolved divisionsBetway and Spin Group manage their respective divisions and brandsSupported by centers of excellence (such as behavior
Slide 26: Product, Marketing & Technology
Product, Marketing & Technology Neal Menashe, CEORichard Hasson, President & COO
Slide 27: Our Products: Betway & Spin
Our Products: Betway & Spin 20+ Casino brands Single brand 27
Slide 28: Betway: High Growth Global Sportsbook
Betway: High Growth Global Sportsbook +197%Monthly Sports Bettors1 28 1. Oct-19 to Oct-21. +129%Increase in Sports Wagering1+313%Number of betsplaced1
Slide 29: Spin: Best-in-Class Online Casino Content & Monetization
29 October 2021At peak timesNet gaming revenue (NGR) from new customers in their second calendar month since acquisition as percentage of NGR from the same customers in their calendar month of acquisition, averaged for all new customers acquired in the 12 months to 30 June 2021. Spin: Best-in-Class
Slide 30: Global Business with Localized Offerings
MGA, athird-party game offered in Spain,is essential for strong performance in that market Global Business with Localized Offerings The African market is dominated by parlay betting and ourin-country teams listen to our customers when deploying new offerings We tailor our products to a variety of en
Slide 31: Betway & Spin: ~50/50 Revenue Split
Betway & Spin: ~50/50 Revenue Split 31 51% Spin 1. Cash flow conversion defined as Operational EBITDA less interest expense, tax expense and capital expenditures. Betway 49% H1 2021 NGR Contribution of Betway & Spin ~23%H1 2021Operational EBITDA Margin ~88%H1 2021EBITDA to FCF1
Slide 32: Successful and Distinct Approach to Branding and Marketing
Successful and Distinct Approach to Branding and Marketing Customer Demographics Pure sports and esports enthusiastsHybrid customers: sports fans that also enjoy online casinoGlobal and predominantly male customer base Key Channels Online casino customers looking for a premium experienceGlobal custo
Slide 33: Betway: Focus on Single Sports Brand
Betway: Focus on Single Sports Brand Local in Targeting Builds awareness through events in high consumption markets Personal in ApproachEmotional connectivitykey to retention Simple in Messaging Logo-only approach drives brand resonance 33 Global in NatureCreates awareness and trustwith the largest
Slide 34: Spin: Focus on Digital Marketing
Spin: Focus on Digital Marketing SEO – high ranking Google performance for targeted keywords 34 Affiliates – partnerships with key affiliates guarantee top placement ATL – Multiple ATL campaigns with focus on key sporting events
Slide 35: Super Group is in Control of its Own Technology Stack
Product Offering Proprietary PAMs and Sportsbooks 3rd Party PAMs and Sportsbooks Proprietary or Exclusively Licensed 3rd Party Own Content 3rd Party Content 3rd Party Integrations Data and Analytics EngineCore Super Group Technology Technology Stack HighlightsProprietary data and analytics engine is
Slide 36: Betway: Operating Localized Technology Stacks
Betway: Operating Localized Technology Stacks Africa EuropeLong-term, exclusive relationships with third party sportsbook technology providers110-strong trading team that cover 24-hour demand globallyProfitability enhanced through risk management systems – stable ~10% trading margin 2020 Global Spor
Slide 37: Behavioral & Data Science
Behavioral & Data Science Spencer McNally, Data & Analytics
Slide 38: Super Group's Unique Operational Advantage
Super Group’s Unique Operational AdvantageSophisticated behavioral science models coupled with best-in-class technology optimize and control the customer experience Data &Analytics Tailored sponsorship and marketing Lower acquisition cost Customized experiences Increased retention, decreased churn N
Slide 39: Evolution of Data Analytics
Evolution of Data AnalyticsSince the 1990s our systems have evolved to responsibly engage customers with optimally entertaining and profitable experiences CustomerSegmentation Personalized Offerings AI & Machine Learning Free-Play Customer Rebates Simple tiered loyalty schemesMonthly cashback and ot
Slide 40: Our Data Analytics Gives Us Unique Operational Advantages
Our Data Analytics Gives Us Unique Operational AdvantagesData driven, scientific approach to all elements of betting and gaming that has been refined over more than 20 years Full control overstate-of-the art technology Sophisticated BI and analytics supports product & customer experience optimizatio
Slide 41: Optimizing the Customer Journey – Traditional Method
…resulting in essentially worthless results for predicting customer profitability “Optimizing” the Customer Journey – Traditional Method > Simplistic Segmentation Product Churn Deposit Device Sport High High iOS Casino Medium Medium Android Mostly Sport Low Low Mostly Casino Sup erficial use of cust
Slide 42: Optimizing the Customer Journey – Effective Method
Optimizing the Customer Journey – Effective Method > …resulting in an impressive accuracy in predicting customer profitability Customerdemographics Marketing channels and interactions Financial actions and outcomes Product actions and outcomes Responsible gambling, risk, compliance Other customer ac
Slide 43: Bespoke Content and Personalized Delivery
Bespoke Content and Personalized Delivery Key toresponsible gambling Enhancedcustomer engagement 15 million daily customer- specific recommendations Bet Recommendation Engine Customer-level AI-driven bet recommendations Exclusive & Enhanced ContentProprietary jackpot games Custom MessagingCustomer-l
Slide 44: Our Offerings Are Tailored to Each Market
Market AMajority of bets are parlays with many legs and high oddsLow in-play wageringLow average bet sizeLow customer lifetime valuesMajority of customers wager on one sport only Our Offerings Are Tailored to Each Market Market BMajority of bets are singles at low to moderate oddsSignificant in-play
Slide 45: Data is Central to Our Safe Gaming Strategy
Data is Central to Our Safe Gaming StrategyData is used to provide an engaging entertainment experience in a safe and secure environment as well as identify potential issues Deposit LimitsSet deposit limits for any period of time Take A BreakSet a break period from anything from 24 hours to six week
Slide 46: Global Growth Opportunities
Global Growth Opportunities Neal Menashe, CEORichard Hasson, President & COO
Slide 47: Super Group is Poised for Significant Future Growth
Super Group is Poised for Significant Future GrowthOur business model allows us to replicate success in new markets $40 $28 $68 2020 $72 $53 $125 2025E CAGR 10% 1. Proven success in entering new markets20+ years of experience in entering and scaling in new markets 2. High brand awarenessDriven by su
Slide 48: Industry Reaction to Regulation
Industry Reaction to Regulation Improved public perceptionIntroduction of gaming taxHeightened competitionIncreased marketing expense Lower operation expenses (e.g. processing, software)Increased marketing opportunitiesAttracts larger user baseGrowth in market (TAM)Increased barriers to entry EBITDA
Slide 49: Strong Tailwinds from New Market Regulation
Strong Tailwinds from New Market Regulation Online Gaming Sports Betting 2016ASpain Worldwide trend towards legalization of betting and gamingBetting traditionally regulated first with gaming followingLegalization of online betting and gaming has led to market expansion in key territoriesOnline Bett
Slide 50: Replicating Success in the U.S.
Betway brand live in stateBetway brand due to be live by February 2022Market access agreement in place for the Betway brand pending regulation Replicating Success in the U.S. Super Group has executed a binding, definitive agreement to acquire US-based Digital Gaming Corporation (“DGC”), subject to r
Slide 51: Additional Opportunities to Further Scale the Company
Additional Opportunities to Further Scale the CompanyA public listing establishes a U.S. equity currency that will help facilitate additional growth opportunities 51 Tuck-in M&A Strategic Partnerships Enter New Markets Ability to use our public currency to execute on our acquisition strategyAcquire
Slide 52: Financial Overview
Alinda van Wyk, CFOSpencer McNally, Data & Analytics Financial Overview
Slide 53: Continued Strong Momentum in H1
Continued Strong Momentum in H1 53 GGR$1.08bn Free Cash Flow Conversion88% Monthly Active Customers2.5m+ +34%1H20 – 1H21 +56%1H20 – 1H21 +86%1H20 – 1H21 +18%FY2020 – 1H21 +127%1H20 – 1H21 NGR$769m EBITDA$179m
Slide 54: Exceptional Growth in Active Customers in Recent Years
Exceptional Growth in Active Customers in Recent Years ~186%Increase since Q1 2019 Average Monthly Active Customers (m) 0.9 54 0.9 1.0 1.2 1.3 1.0 1.7 2.1 2.62.4 Q3 2020 Q2 2020 Q3 2019 Q1 2019 Q2 2019 Q4 2019 Q1 2020 Q4 2020 Q1 2021 Q2 2021
Slide 55: Loyal and Engaged Customer Base while Growing
Loyal and Engaged Customer Base while Growing 27% 24% 24% 23% 20% 17% 15% 14% 12% 11% 19% 17% 16% 14% 12% 11% 9% 8% 7% 6% 36% 27% 22% 20% 18% 14% 14% 11% 9% 8% 18% 32% 38% 43% 34% 22% 20% 17% 14% 12% 16% 37% 42% 50% 39% 30% 19% 33% 2020 2017 2019 2018 Pre-2017 1Q19 2021 55 2Q19 3Q19 4Q19 1Q20 2Q20 3
Slide 56: Benefits of Operating Leverage
$50 $245 Benefits of Operating Leverage Our organic growth is driven by both new and existing markets; we consider all acquisitions, but assume only organic growth1Estimated Net Gaming Revenue ($bn) Estimated EBITDA ($m) 56 Note: Derived from BAU model, excludes DGC and investment in the U.S. Histor
Slide 57: Highly Scalable Platform Drives Operating Leverage
Highly Scalable Platform Drives Operating Leverage 57 Line Item Type of Cost %Cost Base Operating Leverage Commentary Direct ExpensesGaming tax, license costs and other taxProcessing & fraud costs Software feesOther Variable 42% - 46% Gaming taxes and license costsSecurity and processing of deposits
Slide 58: Strong and Efficient Free Cash Flow Conversion
Strong and Efficient Free Cash Flow Conversion 58 Operational EBITDA Less: Interest Expense Debt-free balance sheet with no financing obligations Less: Tax Expense Super Group is domiciled in a low-tax jurisdiction Less: Capex= Mix of third-party and owned technology reduces capex requirements Free
Slide 59: Closing Summary
Neal Menashe, CEO Closing Summary
Slide 60: Investment Summary
60 Global reach and scaleUnique mix of high growth and profitabilityAsset-light business modelData-driven, customer-centric digital businessControl of best-in-class technologyFinancial flexibility with solid balance sheetInstant value creation from the SEAH/SGHC combined team and benefits of public
Slide 61: Q&A
Q&A Su Ill group
Slide 62: Appendix
Appendix Su Ill group
Slide 63: Detailed Pro Forma Share Count
Detailed Pro Forma Share Count 63 Total Capitalization Shares (m) Super Group pre-closing holders1 428.5 Conversion of SEAC common stock2 45.0 Conversion of SEAC warrants3 11.3 Shares issued and outstanding 484.8 Additional Securities Shares (m) Assumption of SEAC warrants4 (strike price: $11.50) 22
Slide 64: Financial Information
Financial Information 64 (in $ millions) FY2019A2 FY2020A2 FY2021E FY2022E NGR $874 $1,114 $1,500+ $1,700+ Other Revenue1 43 63 80 83 Total Revenue 917 1,177 1,580+ 1,783+ % NGR Growth 27.5% 34.6% 13.3% Operational EBITDA3 50 245 350 420+ % NGR Margin 5.7% 22.0% 23.3% 24.7% % Growth 390.0% 42.9% 20.
Slide 65: Reconciliation to Financial Statements in F-4 – NGR
Reconciliation to Financial Statements in F-4 – NGR 1 Discrepancies due to rounding error. 65 (in millions) FY2020A H12021A Comments F-4 NGR (EUR) €908 €667 F-4 NGR (USD) $1,040 $804 (+) Entity consolidation or disaggregation 144 11 Investor presentation assumes full year consolidation of all releva
Slide 66: Reconciliation to Financial Statements in F-4 – EBITDA
Reconciliation to Financial Statements in F-4 – EBITDA 1 Discrepancies due to rounding error. 66 (in millions) FY2020A Comments F-4 EBITDA (EUR) €181 F-4 EBITDA (USD) $206 (+) Entity consolidation or disaggregation 55 Investor presentation assumes full year consolidation of all relevant entities int
Slide 67: Glossary of Terms
Glossary of Terms Term Definition Super Group Holding company for leading global sports betting and gaming business Betway, a premier online sports betting brand, and Spin, a multi- brand online casino offering. All financial and operational metrics are presented on a pro-forma basis to show a like-