Allwyn Ag · ATHEX:ALWN
Allwyn — Allwyn International a.s. — Q3 2023 Earnings Presentation
41 slides from Allwyn's earnings presentation, Dec 5, 2023
Slide 1: Allwyn International a.s. Q3 2023 Results
Allwyn International a.s. Q3 2023 Results 5 December 2023 For further information on our company, please visit our website: allwynentertainment.com
Slide 2: Presenting today
Presenting today Robert Chvatal Kenneth Morton CEO CFO 2
Slide 3: Today's agenda
Today’s agenda Business and Strategic Update Financial Update Update on Current Trading and Summary Appendix 3
Slide 4: Business and Strategic Update
Business and Strategic Update 4
Slide 5: Q3 2023 highlights
Q3 2023 highlights A quarter of solid financial performance notwithstanding top line headwinds • Solid financial performance Consolidated Total Revenue – Total Revenue - Increase driven by Camelot acquisitions - Existing geographies broadly in line YoY, impacted by customer- €2,007m +98% / -1% vs Q3
Slide 6: Strong online momentum continues alongside resilience in physical retail
Strong online momentum continues alongside resilience in physical retail… Online share flat or up YoY across all markets in Q3’23 (higher quarter-on-quarter) with significant growth vs. pre-Covid; physical retail GGR somewhat lower YoY, partly reflecting top line headwinds Austria GGR (excl. VLTs an
Slide 7: De-anonymised share of physical retail also growing
…de-anonymised share of physical retail also growing Loyalty programmes bring the benefits of online to the physical retail channel Czech Republic: de-anonymised GGR share (%) 1 Greece and Cyprus: evolution of registered customer base (‘000) 1,041 28% 27% 986 948 873 23% 792 717 687 17% 599 13% 463
Slide 8: Product launches and innovation across physical retail and online channels
Product launches and innovation across physical retail and online channels Continuing to expand and improve our product offering, user experience, and technology New and revitalized products / experiences – 9M 2023 NEW EuroMillions front-end/user interface for app NEW “£5k a month for 30 years” the
Slide 9: Product launches and innovation (cont'd)
Product launches and innovation across physical retail and online channels (cont’d) Continuing to expand and improve our product offering, user experience, and technology Digitalisation of physical retail Key new product launches after Q3 2023 New Pilot of self-service Oct 2023 Repositioning of Lott
Slide 10: Q3 2023 key strategic developments
Q3 2023 key strategic developments Greece and Cyprus: OPAP share buyback programme and end of scrip dividend option 1 OPAP share buyback programme Commencement of share buybacks • In September, OPAP’s Board of Directors resolved to conduct a share buyback programme of up to €150m by the end of 2024,
Slide 11: Continuing to focus on ESG and to contribute to local communities
Continuing to focus on ESG and to contribute to local communities Multiple examples of our ongoing commitment to ESG and corporate social responsibility year to date Sport Safer play Community • Alongside being the main partner of • Increase in age limit for lottery • Chicago employees participated
Slide 12: Financial Update
Financial Update allwyn
Slide 13: Q3 2023 financial highlights
Q3 2023 financial highlights A quarter of solid financial performance notwithstanding top line headwinds • Total Revenue +98% YoY reflects steady performance in existing Consolidated Total Revenue geographies and significant contribution from Camelot Acquisitions – Total Revenue in existing geograph
Slide 14: Consolidated P&L
Consolidated P&L • Total Revenue growth of +98% YoY, Net Revenue +38% YoY Consolidated P&L (€m) Q3’22 Q3’23 ∆ vs. Q3’22 – Gaming taxes/Good Causes contribution as a % of GGR increased, primarily owing to mix effects related to acquisition Total Revenue 1,013 2,007 +98% of Camelot UK Of which: GGR 96
Slide 15: Consolidated P&L (excluding acquisitions)
Consolidated P&L (excluding acquisitions) • Total Revenue -1% YoY excluding recent acquisitions Consolidated P&L (€m) - GGR growth flat YoY Q3’22 Q3’23 ∆ vs. Q3’22 - Strong performance in iGaming and good growth in instant Total Revenue 1,013 1,006 -1% lotteries and VLTs and casinos offset weaker pe
Slide 16: Q3 2023 financials summary
Q3 2023 financials summary Strong net revenue growth and cash generation Consolidated basis (€m) Pro rata basis (€m)1 Net Revenue CAGR Net Revenue CAGR +38% +26% +97% +29% 883 815 583 642 506 350 344 414 293 283 Q3'19 Q3'20 Q3'21 Q3'22 Q3'23 Q3'19 Q3'20 Q3'21 Q3'22 Q3'23 Adjusted EBITDA CAGR Adjuste
Slide 17: Business highlights – Austria
Business highlights – Austria Top-line performance reflects benefits of diversification • GGR increased 2% YoY in Q3 Gross Gaming Revenue – Good performance in instant lotteries, €m +1% +2% iGaming and VLTs and casinos +19% – Numerical lotteries weaker, part reflecting shorter jackpot cycles in Euro
Slide 18: Business highlights – Czech Republic
Business highlights – Czech Republic Continued good top line growth in Q3, driven by lotteries and iGaming • Good organic top line growth across all major Gross Gaming Revenue products €m – Instant lotteries (+10% YoY) and iGaming cFX +14% cFX +4% cFX +7% (+14% YoY) particularly strong +7% +18% +9%
Slide 19: Business highlights – Greece and Cyprus
Business highlights – Greece and Cyprus Top line headwinds in Q3 • GGR lower YoY owing to unfavourable jackpot Gross Gaming Revenue roll-overs (in Tzoker game) and customer- friendly sports results, as well as natural events €m +15% +13% -4% (floods, wildfires) which impacted some POS 527 541 – Onli
Slide 20: Business highlights – United Kingdom
Business highlights – United Kingdom Unfavourable jackpot rollovers contributed to lower GGR YoY • United Kingdom segment comprises operations of Camelot UK Gross Gaming Revenue • GGR was lower by 12% YoY on a constant currency and comparable €m Of which included in presentation basis consolidated r
Slide 21: Business highlights – Italy
Business highlights – Italy Solid performance • Solid performance in the quarter Net Revenue – Net Revenue +7% YoY €m – Adjusted EBITDA +6% YoY • Business continues to be highly profitable and +5% +3% +7% cashflow generative 129 134 134 121 124 124 120 117 122 116 113 117 113 115 116 103 107 108 55
Slide 22: Strong free cash flow generation
Strong free cash flow generation Reflects asset light business model and high profitability • Higher EBITDA adjustments vs. prior years relate to: Consolidated FCF (€m) – Expensing of certain costs associated with preparation for new Adjusted EBITDA CAGR +27% licence start in UK in February 2024 (€3
Slide 23: Strong cash conversion
Strong cash conversion Simplified consolidated cash flow bridge year-to-date (€m) 1,096 997 (12) 855 110 (168) (75) (279) 431 (163) 268 Consol. Consol. Operating Dividends from Change in NWC Income Tax Capex Dividends to Attributable Cash Interest Paid Attributable Cash Adjusted Operating Cash Flow
Slide 24: Leverage (post-IFRS 16 basis)
Leverage (post-IFRS 16 basis) Low leverage, significant net cash position at subsidiaries As of 30 September 2023, Post-IFRS 16, €m Pro forma LTM Adjusted EBITDA1 1,484 Cash and cash equivalents (1,754) Gross debt 4,152 Leases 158 Net debt (incl. leases) 2,556 Consolidated Net Debt / PF LTM Adjusted
Slide 25: Q2 2023 and subsequent key financing transactions
Q2 2023 and subsequent key financing transactions Pro-actively managing our capital structure Q3 2023 - Allwyn International • In August, the Company drew the remaining €42.5 million available under an accordion facility due in 2029 (at the end of its availability period) • See slide 35 for debt ove
Slide 26: Update on Current Trading and Summary
Update on Current Trading and Summary 26
Slide 27: Update on current trading
Update on current trading • Overall, our business has performed and developed well during the year, despite a background of relatively weak general consumer sentiment • In October, the performance of sports betting was again impacted by customer-friendly sports results seen across the industry • Not
Slide 28: Summary
Summary A solid third quarter 1 A quarter of solid financial performance, notwithstanding headwinds felt by the broader industry and weaker general consumer sentiment 2 Continued progress in key organic growth initiatives, including ongoing innovation in digital and series of launches in exciting an
Slide 29: Q&A
QE&A allwyn
Slide 30: Appendix
Appendix allwyn
Slide 31: P&L structure
P&L structure Previous P&L presentation New P&L presentation A A Gross Gaming Revenue (GGR) Gross Gaming Revenue (GGR) B B Less: Gaming taxes Other Revenue A B Net Gaming Revenue (NGR) A B Total Revenue C C Other Revenue Less: Gaming taxes A B C Net Revenue A C Of which: Net Gaming Revenue (NGR) 31
Slide 32: Summary of adjustments to EBITDA
Summary of adjustments to EBITDA Standalone, 100% (€m)1 EBITDA Adjustments Breakdown3 Operating EBITDA 2019 2020 2021 2022 Q1’23 Q2’23 Q3’23 2019 2020 2021 2022 Q1’23 Q2’23 Q3’23 Casino Linz insurance gain + restructuring non-personnel Austria 211 147 232 266 66 67 78 costs - (4) (1) - - - - Czech R
Slide 33: Q3 2023 Consolidated Adjusted EBITDA build up
Q3 2023 Consolidated Adjusted EBITDA build up Consolidated Adjusted EBITDA (€m) Q3’22 Q3’23 Austria 77.5 75.3 Czech Republic 31.9 28.8 Greece and Cyprus 194.0 169.7 United Kingdom - 44.4 Allwyn LS Group - 6.7 Italy (share of net profit) 14.5 15.5 Other - 29.9 Corporate (1.2) (1.9) Consolidated Adjus
Slide 34: Summary of pro rata Adjusted FCF
Summary of pro rata Adjusted FCF Pro rata to interest at end of each period (€m) 1 Pro rata to interest at end of each period (€m) 1 Ownership at Ownership at Adjusted EBITDA – pro rata the end Q3’23 2019 2020 2021 2022 Q1’23 Q2’23 Q3’23 Adjusted FCF – pro rata the end Q3’23 2019 2020 2021 2022 Q1’2
Slide 35: Diversified capital structure across multiple instruments
Diversified capital structure across multiple instruments with access to EUR, USD and local markets Debt overview as of 30 September 2023 Split by Fixed / Floating Split by Currency x PF LTM Adj. Amount (€m) Consolidated 4% EBITDA1 16% Out of 16% of Consolidated Subsidiary Net Debt / (Cash) (846) fi
Slide 36: No significant maturities until 2027 and ample available liquidity
No significant maturities until 2027 and ample available liquidity Debt maturity profile as of 30 September 2023 (€m) Available facilities as of 30 September 2023 (€m) Capacity Drawn Undrawn Weighted average life: 4.5 years 250 Allwyn International RCF 300 0 300 400 660 Subsidiary RCFs4 330 0 330 50
Slide 37: Pro rata net leverage (pre-IFRS 16 basis)
Pro rata net leverage (pre-IFRS 16 basis) As of 30 September 2023, Pre-IFRS16 Basis1 Greece & United Allwyn LS 3 4 €m Austria Czech Republic Italy Other Corporate Total Cyprus Kingdom Group2 100% basis LTM Adjusted EBITDA 250 115 731 169 32 385 371 (7) Cash and cash equivalents and short-term (388)
Slide 38: Dividends and distributions
Dividends and distributions Ownership at end of September 2019 2020 2021 2022 9M’22 9M’23 €m 2023 Dividends and cash upstreamed – 100% basis Austrian Lotteries 9.5%1 120 177 91 120 120 114 CASAG 59.7% 15 - - 45 45 130 LottoItalia 32.5% 351 237 316 321 298 265 OPAP 50.4%2 165 420 222 599 491 416 SAZK
Slide 39: Alternative performance measures and comparability of information
Alternative performance measures and comparability of information This presentation includes non-IFRS performance measures, including Net Revenue, Net gaming revenue (“NGR”), Operating EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Capex, Adjusted Free Cash Flow (“Adjusted FCF”), Cash conversion a
Slide 40: Disclaimer
Disclaimer This presentation was produced by Allwyn International a.s. This presentation is not to be reproduced or distributed, in whole or in part, by any person other than Allwyn International a.s. This presentation does not represent an offer for, or constitute or form part of, and should not be
Slide 41: Disclaimer
Disclaimer No warranty or representation of any kind, express or implied, is or will be made in relation to, and to the fullest extent permissible by law, no responsibility or liability in contract, tort, or otherwise, is or will be accepted by us or any of our officers, employees, advisers or agent
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