Slide 1: Results Presentation FY21
For personal use only Results Presentation For the full year ended 30 June 2021 RELEASE DATE: 26 AUGUST 2021 FY21 RESULTS
Slide 2: Agenda
AGENDA For personal use only GROUP FY21 RESULTS OVERVIEW 2 GROUP OPERATING MODEL RECAP 3 1 – LOTTERY RETAILING 4 2 – SOFTWARE-AS-A-SERVICE 6 3 – MANAGED SERVICES 8 DETAILED FINANCIALS 10 BALANCE SHEET 15 CASHFLOW 16 ACQUISITION OF STRIDE MANAGEMENT INC. 17 SUMMARY 18 MAKING LOTTERIES EASIER FY21 RES
Slide 3: Group Result Overview and Highlights
GROUP RESULT OVERVIEW AND HIGHLIGHTS For personal use only Total Transaction Volume ($m) Revenue ($m) EBITDA – underlying1 ($m) +37% +17% +13% 487.0 83.3 71.2 356.1 48.9 43.2 FY20 FY21 FY20 FY21 FY20 FY21 NPAT – underlying1 ($m) Operating cashflow ($m) Dividends declared (cps) Underlying 2.8% 42.5 4
Slide 4: Group Operating Model with Distinct Business Segments
GROUP OPERATING MODEL WITH 3 DISTINCT BUSINESS SEGMENTS Mission For personal use only Vision Total Addressable Market Overview of Business Activity Core Capabilities Revenue model 1. Source: Australian gambling statistics report (2018-19) 2. Total TAM of $25bn equates to TAM by region of: UK $1.6bn;
Slide 5: Lottery Retailing: Continued strong online penetration
1 – LOTTERY RETAILING Continued strong online penetration For personal use only – Australian digital sales of lottery tickets up to 32.8% (FY20: 28.0%) – 38 large jackpots (OzLotto/Powerball ≥ $15m) relative to 39 in FY20 – Average value per large jackpot - $31.8m (vs $40.1m in FY20) % of AUS lotter
Slide 6: Lottery Retailing: Strong 2H21 sales performance
1 – LOTTERY RETAILING Strong 2H21 sales performance For personal use only – 19.5% Moving Annual Total (MAT) 5-year TTV CAGR to 30 June 2021 – Average spend per active customer up 10.4% to $423.11 (FY20: $383.12) – Like-for-like active customers up 1.5% to 766,2632 (FY20: 755,2542) Oz Lotteries Movin
Slide 7: Software-as-a-Service: Powered by Jumbo
2 – SOFTWARE-AS-A-SERVICE (SaaS) – “POWERED BY JUMBO” Key Milestones For personal use only Mater Endeavour UK Gambling Commission Lotterywest Deaf Services St Helena Hospice (UK) Foundation Foundation Software License Dec 2020 May 2021 October 2021 Jul 2020 Oct 2020 Nov 2020 (expected) Existing Cust
Slide 8: SaaS: Future Opportunity
2 – SOFTWARE-AS-A-SERVICE (SaaS) – “POWERED BY JUMBO” Future Opportunity For personal use only A$22bn A$1.6bn Overview Our approach and key priorities Market segments include: – 11 out of 48 US lottery jurisdictions – Jumbo offers its proprietary lottery – Health; currently offer iLottery, with more
Slide 9: Managed Services: Key Milestones
3 – MANAGED SERVICES Key Milestones For personal use only Gatherwell Ltd (UK) Paralympics Australia St John Ambulance (VIC) Conditional acquisition of Nov 2019 May 2021 Jun 2021 Stride Management Inc. August 2021 Existing Customers Total Transaction Value (TTV) Active players Gatherwell business per
Slide 10: Managed Services: Future Opportunity
3 – MANAGED SERVICES Future Opportunity For personal use only A$18.8bn A$13.1bn A$10.5bn – Reflects UK charitable giving – Reflects Canadian charitable – Reflects Australian charitable sector: giving sector: giving sector: – ~194,000 registered – ~85,000 registered charities – ~58,000 registered cha
Slide 11: Financials: Underlying EBITDA
FINANCIALS – Underlying EBITDA – Revenue growth underpinned by Lottery Retailing (+9.6%) and ramp up of SaaS and Managed Services (SaaS clients successfully For personal use only onboarded and first full year contribution of Gatherwell Ltd) – Cost of sales up 56.6% mainly reflecting the introduction
Slide 12: Financials: Lottery Retailing
FINANCIALS – LOTTERY RETAILING – Strong TTV and Revenue growth on a like-for-like basis1, despite fewer and lower value large jackpots For personal use only – Strong 2H21 EBITDA performance underpinned by higher jackpot activity (23 OzLotto/Powerball jackpots vs 15 in 1H21) – Cost of sales reflects
Slide 13: Financials: SaaS
FINANCIALS – SaaS – Strong TTV and Revenue growth due to the on-boarding of clients For personal use only – Q4 FY21 TTV annualised run-rate ~$132m – Revenue margin ranges from ~3% to 9.5% of TTV and includes 7.5% of Lottery Retailing TTV (internal revenue) – External revenue up significantly to $4.9
Slide 14: Financials: Managed Services
FINANCIALS – MANAGED SERVICES – Strong TTV, Revenue and EBITDA growth predominantly driven by Gatherwell (12 months contribution in FY21 vs 7 months For personal use only contribution in FY20) – On a like-for-like basis, Gatherwell delivered: – +40.0% TTV growth to £9.3m and +42.0% revenue growth to
Slide 15: Operating Costs
OPERATING COSTS – Underlying operating costs (excluding Gatherwell and one-off items) up 12.3% For personal use only – Step up in investment in the business planned for FY22 – Vast majority of anticipated spend aligned to growth strategy both domestically and overseas and to reduce strategy executio
Slide 16: Balance Sheet
BALANCE SHEET For personal use only Strong balance sheet as at 30 June 2021 reflecting: 30 June 30 June – $15m cash payment to Tabcorp 2021 2020 – $6.4m capitalised website development costs Cash 63,139 72,259 (intangibles) (FY20: $6.4m) – Cash balance of $53.8m1 (FY20: 61.3m1) Other current assets
Slide 17: Cashflow
CASHFLOW – Free cash flow of $28.6m1 (FY20: $21.5m1) For personal use only – Cash conversion ratio of 106.2%2 (FY20: 79.9%2) Cashflow reconciliation ($’000) 8,239 (83) (6,408) (15,000) 26,959 72,259 (21,857) 63,137 (972) Opening Cash FY21 Depreciation & Other non- Website Tabcorp extension Dividend
Slide 18: Acquisition of Stride Management Inc.
ACQUISITION OF STRIDE MANAGEMENT INC. For personal use only First Managed Services Over 750,000 active lottery Forecast to generate ~A$122 Strategic foothold in Canadian acquisition in Canadian players in the Alberta and million1,2 in TTV with an charity lottery market with lottery market Saskatchew
Slide 19: Summary – Resilience and Growth
SUMMARY – RESILIENCE AND GROWTH For personal use only Transitioned from one to three operating segments: Lottery Retailing: SaaS: Q4 annual TTV run- Managed Services: Gatherwell Strong growth without the rate of $132 million as continues to deliver impressive benefit of jackpot growth clients went l
Slide 20: Disclaimer
DISCLAIMER For personal use only This presentation contains summary information about the current All dollar values are in Australian dollars (A$) unless otherwise activities of Jumbo Interactive Limited (Jumbo). It should be read in stated. Neither Jumbo nor any other person warrants or guarantees
Slide 21: Questions?
For personal use only QUESTIONS ? MAKING LOTTERIES EASIER FY21 RESULTS 20
Slide 22: Results Presentation FY21 (script)
Results Presentation For the full year ended 30 June 2021 RELEASE DATE: 26 AUGUST 2021 Jumbo Interactive itd + Six Sis JUMBO FY21 RESULTS
Slide 23: Script: Introduction
For personal use only Good morning everyone. Today, as usual, I am joined by our CFO, David Todd, to present our full year results. I’ll provide an overview of the result and tell you about the opportunities we see ahead, while Dave will provide a more detailed run through of the numbers. I will the
Slide 24: Script: Group result
For personal use only Turning to the Group result, and we reported strong double-digit growth across TTV, revenue and underlying EBITDA. Despite fewer and lower value jackpots and the absence of a greater than $100 million jackpot, Lottery Retailing continues to deliver good growth, with the increas
Slide 25: Script: Operating model
For personal use only This slide builds on the operating model slide I first unveiled at our interim results in February. Today I want to highlight: • We have moved from one to three operating segments, all underpinned by our proprietary technology platform and over two decades of lottery management
Slide 26: Script: Lottery Retailing
For personal use only Turning to Australia, and our Lottery retailing segment, I have summarised the key trends impacting the segment: • On-line sales of lottery tickets increased by 4.8 ppts to 32.8%. I also note that plans are underway to refresh the OzLotto game and the changes are likely to be i
Slide 27: Script: Oz Lotteries sales
For personal use only This chart of Oz Lotteries sales performance over several years helps explain both the resilience and the growth of our Lottery Retailing business. You can see the steady growth achieved from small jackpots, and the boost we get from large jackpots. To reinforce this point, jus
Slide 28: Script: SaaS
For personal use only Moving now to our SaaS segment, where we licence our PBJ platform to customers nationally (including our own Oz Lotteries). FY21 was a pivotal year as all four external clients in Australia went live on the PBJ platform. While it is still relatively early days, I have included
Slide 29: Script: SaaS opportunity
For personal use only I have added this slide to highlight the global opportunity that exists for our SaaS business. The US government lottery sector represents the largest opportunity. The pace of digital transformation in lotteries has been slower than in the on-line wagering space, which is not r
Slide 30: Script: Managed Services
For personal use only Turning now to Managed Services where we provide lottery management services to charities and worthwhile causes that do not yet have a lottery. Our UK business, Gatherwell continues to go from strength to strength, with TTV increasing at 26% per annum over the last three years.
Slide 31: Script: Managed Services opportunity
For personal use only This slide provides an overview of the Managed Services opportunity in the charitable giving sectors across the UK, Canada and Australia, as well as our key priorities in these markets. Importantly, the TAM for Managed Services is much larger than SaaS as a lot more charities n
Slide 32: Script: Underlying EBITDA
For personal use only Thanks Mike and good morning everyone. Statutory EBITDA was up 10.9% while underlying EBITDA rose 13.2%. Underlying EBITDA removes the impact of one-off items which in FY21 primarily relate to consulting and legal costs associated with the extension of the Tabcorp agreement and
Slide 33: Script: Lottery Retailing financials
For personal use only Starting with Lottery Retailing where we saw underlying TTV and revenue growth of 15.0% and 17.1% respectively. On this slide, I have adjusted the numbers to reflect the transition of our WA customers to Lotterywest, which from 21 December 2020 is reported in our SaaS segment.
Slide 34: Script: SaaS financials
For personal use only Turning now to SaaS, where FY21 has seen a significant uplift in TTV and revenue as our four SaaS clients have been successfully migrated to the PBJ platform. While Mater Foundation has been on the PBJ platform for the full 12 month period, Endeavour and Deaf Services only full
Slide 35: Script: Managed Services financials
For personal use only Moving to Managed Services which principally reflects the performance of our UK business, Gatherwell, noting that our Australian operations, Jumbo Fundraising, was only launched in February this year and therefore its contribution to FY21 has not been material. The headline res
Slide 36: Script: Operating costs
For personal use only At a headline level, operating costs were up 19.3%. After removing one-off items including the consulting fees related to the Tabcorp agreement extension and due diligence costs associated with the acquisition of Stride, operating costs increased by 15.2%. In the chart on the s
Slide 37: Script: Balance sheet
For personal use only Turning to the balance sheet, and we continue to maintain a strong position underpinned by the strong organic cash generation of the business. The Board has declared a final fully franked ordinary dividend of 18.5 cents per share, taking the total dividend for the year to 36.5
Slide 38: Script: Cashflow
For personal use only And finally, turning to the cashflow where the cash generative profile of the business is clearly evident, with a free cash flow of $28.6 million and a greater than 100% cash conversion. I will now hand back to Mike. 16
Slide 39: Script: Stride acquisition
For personal use only Thanks Dave and thank-you for highlighting our commitment to continue to invest in our technology and people, which will be critical to executing on our growth strategy, both here and overseas. One example of the expansion opportunities emerging for the group is highlighted by
Slide 40: Script: Summary
For personal use only That brings me to the conclusion of the formal part of the presentation, where I just want to summarise the key messages from today’s presentation. The first is we have successfully implemented our new operating model and moved from one to three operating segments. Lottery Reta
Slide 41: Disclaimer
DISCLAIMER This presentation contains summary information about the current activities of Jumbo Interactive Limited (Jumbo). It should be read in conjunction with Jumbo's other periodic and continuous disclosure Jus JUMBO. Al dollar values are in Australian dollars (A$) unless otherwise stated. Neit
Slide 42: Questions?
MAKING LOTTERIES EASIER QUESTIONS ? FY21 RESULTS 20 20