Evoke Plc · LSE:EVOK
Evoke — 888 Holdings — Merger or Acquisition (September 2021)
26 slides from Evoke's merger presentation, Sep 9, 2021
Slide 1: Acquisition of William Hill International
Acquisition of William Hill International Creating a global leader in online betting and gaming 9 September 2021
Slide 2: Disclaimer
DISCLAIMER ◎ This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commi
Slide 3: Overview
Overview Itai Pazner, CEO
Slide 4: Agenda
AGENDA 1 Overview 2 Strategic rationale 3 Platform for future growth 4 Financial summary 5 Q&A 4
Slide 5: Highlights: Transformational acquisition creating a high-growth global leader
HIGHLIGHTS Transformational acquisition creating a high-growth global leader with significant scale Portfolio of leading brands Diversification into betting 1 Creation of a regulated market leader 2 Compelling strategic 3 Increased scale and management capabilities benefits 4 Improved customer propo
Slide 6: A Powerful Combination
A POWERFUL COMBINATION Significant increase in scale, with complementary profiles to drive value creation 888 William Hill International ◎ Scalable and proven proprietary technology platform ◎ Founded in 1934 – iconic sports heritage and trusted brand ◎ End-to-end product suite across Casino, Sports
Slide 7: Strategic rationale
Strategic rationale Vaughan Lewis, CSO
Slide 8: A Transformational Combination
A TRANSFORMATIONAL COMBINATION Placing the business in the best position to capitalise on significant growth opportunities ◎ Enhanced exposure to sports betting, the world’s largest and fastest growing online segment Diversifying revenue mix ◎ Increases regulated and taxed revenue mix (FY20: 86%), i
Slide 9: 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 10: Attractive Regulated Markets
ATTRACTIVE REGULATED MARKETS Enhanced position in attractive end markets, supporting superior growth profile Established and enhanced presence in attractive, growing online markets1 Clear route to becoming a global leader 2020 Online gambling revenue ($bn) and 5 Combined market: CAGR year CAGR (2015
Slide 11: Platform for future growth
Platform for future growth Itai Pazner, CEO
Slide 12: Core Markets
CORE MARKETS Strong positions in UK, Italy and Spain, but with significant headroom for growth UK Italy Spain UK Market Size ($m) Italy Market Size ($m) Spain Market Size ($m) 9,051 7,753 2,381 2,061 4,263 925 1,232 963 360 2015 2020 2025 2015 2020 2025 2015 2020 2025 Combined 2020 market shares Com
Slide 13: Growth Markets
GROWTH MARKETS Platform for strong growth in newly regulating markets, and other high growth markets Newly regulated / regulating markets 2015 2020 2025 $7.5bn Market Size ($m) +7% Medium term opportunity 2,553 2,244 +9% 1,741 +12% ◎ Germany: New regulatory framework has somewhat reset the 1,362 1,2
Slide 14: The USA
THE USA Bolstering US expertise to enhance the SI Sportsbook growth profile Strong foundations to drive market share gains and exploit long-term opportunity Scalable Proprietary Technology Integrated Content, Product Media & Leadership Gaming Iconic Operational Leading Expertise ◎ >12m loyal readers
Slide 15: Improving Customer Experience
IMPROVING CUSTOMER EXPERIENCE Leverage best in class product features across brands to enhance customer proposition ◎ AI driven personalisation ◎ Shared ethos to make products as safe ◎ Differentiated product as possible and raise industry standards features ◎ Industry leading Control Centre product
Slide 16: Retail
RETAIL An attractive omni-channel opportunity in the UK, and key enabler of online growth >1,400 $661m $125m Locations Revenue1 EBITDA1 Profitable estate Customer focus Omni-channel ◎ Right-sized, profitable ◎ Focus on product and ◎ Plus Card seamlessly estate (~30% fewer user experience integrates
Slide 17: Financial summary
Financial summary Yariv Dafna, CFO
Slide 18: Transaction Overview
TRANSACTION OVERVIEW Creation of a global leader in online betting and gaming ◎ William Hill International (“WHI”) comprises all operations outside the US of William Hill and Mr Green Asset to be ◎ William Hill is one of the UK’s leading bookmakers, with >1,400 retail betting shops across the UK, an
Slide 19: Attractive Financial Profile
ATTRACTIVE FINANCIAL PROFILE Strong shareholder value creation, with optimised longer term capital structure Financial profile Capital management framework Debt ◎ Obtained fully committed debt financing of £2.1 billion financing 2020 WHI Revenue: $1,486m ◎ Intention to raise gross proceeds of approx
Slide 20: Online Revenue Mix
ONLINE REVENUE MIX Complementary geographic profiles with diversified and balanced product offering Enlarged group Americas ROW Americas ROW Americas ROW 11% 2% 2% 0% 6% 1% Well diversified UK EMEA geographic split 39% 27% EMEA 29% UK and enhanced EMEA 52% 30% Spain UK regulated mix 3% 63% Italy Ita
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: Summary
SUMMARY Transformational acquisition creating a high-growth global leader with significant scale Portfolio of leading brands Diversification into betting 1 Creation of a regulated market leader 2 Compelling strategic 3 Increased scale and management capabilities benefits 4 Improved customer proposit
Slide 23: Q&A
Itai Pazner, CEO Q&A Yariv Dafna, CFO Vaughan Lewis, CSO
Slide 24: Appendix
APPENDIX 24
Slide 25: Proforma Normalised Financials
Note: All WHI financial information in this presentation may be different in the Combined Circular and Prospectus, which will PROFORMA NORMALISED FINANCIALS be prepared in accordance with IFRS and 888’s accounting policies. The WHI financial information in this presentation does not take into accoun
Slide 26: WHI Financial Summary
Note: All WHI financial information in this presentation may be different in the Combined Circular and Prospectus, which will WHI FINANCIAL SUMMARY be prepared in accordance with IFRS and 888’s accounting policies. The WHI financial information in this presentation does not take into account any sub
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