Slide 1: FY 2022 results
FY 2022 results 23 March 2023 eplaytech
Slide 2: Agenda
Agenda 2 Financial review Highlights Strategic priorities and outlook Mor Weizer Chris McGinnis Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer FY 2022 results
Slide 3: Highlights
Highlights 3 Record FY22 performance; well positioned to deliver on strategic objectives • Record FY 22 revenues; Adjusted EBITDA up 28% to €406 million • B2B: well positioned across multiple growth opportunities with good momentum: o Americas and Live delivering on growth, primed for this to contin
Slide 4: Agenda
Agenda 4 Financial review Highlights Strategic priorities and outlook Mor Weizer Chris McGinnis Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer FY 2022 results
Slide 5: Financial highlights
Financial highlights 5 Record financial performance € millions 1 FY 2021 FY 2022 FY 22 v FY 21 % • Excellent FY 2022 performance with Adjusted EBITDA of €406m (+28% v FY Group revenue 2021) Group Adjusted EBITDA • Strong operating cashflow provides Group Adjusted EBITDA margin flexibility to fund gr
Slide 6: Summary by division
Summary by division 6 Both B2B and B2C divisions contributed to the strong performance € millions FY 2021 FY 2022 FY 22 v FY 21 % B2B: • Regulated markets driving growth, particularly across the Americas and Europe B2B • Continued investment in strategic initiatives • Focus on improving cash generat
Slide 7: B2B Gambling
B2B Gambling 7 Regulated markets driving strong growth in B2B FY 22 v FY 21 FY 22 v FY 21 € millions FY 2021 FY 2022 % CC% • Americas growth driven by Americas 101.3 144.7 43% 27% Caliente Europe 141.4 184.6 31% 31% • Excellent performance in Regulated UK 132.1 126.7 -4% -5% Europe with Netherlands
Slide 8: B2C Gambling performance
B2C Gambling performance 8 Strong revenue and EBITDA growth driven by Snaitech Revenue Adjusted EBITDA € millions FY 2021 FY 2022 % CC% FY 2021 FY 2022 % Snaitech 584.7 899.8 54% 54% 182.6 254.2 39% HAPPYBET 18.2 20.1 10% 10% -11.4 -10.8 n/a Sun Bingo incl. other white label 61.9 65.3 5% 5% 6.7 2.0
Slide 9: Impressive Snaitech performance
Impressive Snaitech performance 9 Resilient online performance despite reopening of retail € millions FY 2019 FY 2020 FY 2021 FY 2022 FY 22 v FY 21 % Retail betting 174.1 112.1 86.3 186.6 116% Gaming machines 523.7 227.5 242.4 447.0 84% Online 100.3 158.5 229.9 234.2 2% Other 31.6 24.1 26.1 32.0 23%
Slide 10: Strengthening of balance sheet
Strengthening of balance sheet 10 Deleveraging continues giving flexibility on capital allocation • Strong cash generation with Adjusted Operating Cashflows of €397 million* • Finalto sale completed in July 2022 October 2023 bond partly repaid € millions • • Financing options for remaining €200 mill
Slide 11: Balance sheet and capital allocation
Balance sheet and capital allocation 11 Prudent approach • Senior secured notes: o €200 million at a rate of 3.75% due to expire in October 2023 o €350 million at a rate of 4.25% due to expire in March 2026 • RCF of €277 million fully undrawn as at 31 December 2022 • Cash flows to date in 2023: Hard
Slide 12: CFO reflections and priorities
CFO reflections and priorities 12 • Proud to work for Playtech with its familial culture and intense focus on customer satisfaction • Improve cash generation, particularly in B2B • Refocus on core B2B activities, opportunities for efficiencies • Provide additional disclosures to improve transparency
Slide 13: Outlook
Outlook 13 Positive start to FY 2023; well positioned to make further strategic progress • Macroeconomic environment remains uncertain • Despite this, Playtech has had a strong start to FY23 driven by both Snaitech and B2B • New B2B medium term target announced: o Adjusted EBITDA target of €200 mill
Slide 14: Agenda
Agenda 14 Financial review Highlights Strategic priorities and outlook Mor Weizer Chris McGinnis Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer FY 2022 results
Slide 15: Playtech's strategy
Playtech’s strategy 15 Drive revenue growth and expand margins B2B B2C Leverage retail presence to grow Be partner of choice for newly regulating markets Snaitech’s online business Capitalise on Live and SaaS opportunities Optimise HAPPYBET for online Realign resources to reflect B2B growth areas Ta
Slide 16: B2B strategy
B2B strategy 16 Drive revenue growth and expand margins B2B 1. Be partner of choice for newly 2. Capitalise on Live and 3. Realign resources to regulating markets SaaS opportunities reflect B2B growth areas Region Americas Europe Drive efficiencies Casino Live Sports Product Live SaaS Refocus on cor
Slide 17: B2B: Be partner of choice for newly regulating markets
B2B: Be partner of choice for newly regulating markets 17 Using strategic agreements to capture opportunity in attractive geographies • Long term strategic agreement signed with an iconic • Well positioned in the attractive Canadian market global entertainment brand as it regulates • Deal includes L
Slide 18: B2B: Be partner of choice for newly regulating markets (LatAm)
B2B: Be partner of choice for newly regulating markets 18 LatAm: Executing on our strategic agreements Country Population GDP $m Brazil 213,000,000 1,600,000 Mexico 129,000,000 1,300,000 Colombia 51,000,000 314,000 Argentina 45,000,000 492,000 Peru 33,000,000 223,000 Chile 19,000,000 317,000 Guatema
Slide 19: B2B: leveraging our expertise to drive revenue growth
B2B: leveraging our expertise to drive revenue growth 19 Services: making the most out of Playtech’s technology • Playtech has amassed a vast amount of industry knowledge Marketing services • Our services division has a particular focus on strategic agreements Customer acquisition Customer retention
Slide 20: B2B: Capitalise on Live opportunity
B2B: Capitalise on Live opportunity 20 Live: Capitalising on an attractive product vertical Significant progress made in 2022 Well positioned to capitalise on opportunity in 2023 • Live revenues increased by 26% in FY22 with • Upside for the US market is Brazil the standout market ahead of us - prep
Slide 21: B2B: Capitalise on SaaS opportunity
B2B: Capitalise on SaaS opportunity 21 SaaS: an attractive business model to expand addressable market What is SaaS? Why is it attractive for Playtech? • Launched in 2019 • Expands addressable market • Targeted those operators that do not use IMS, we offer • Provides a low friction method of exposin
Slide 22: B2B: Capitalise on SaaS opportunity
B2B: Capitalise on SaaS opportunity 22 SaaS: Setting a medium target of €60 million - €80 million All the infrastructure in place… Setting a medium term revenue target • Significant infrastructure investment since 2017 of €60 million - 80 million • Added over 350 brands; another 100 in the pipeline
Slide 23: B2C strategy
B2C strategy 23 Leveraging growth opportunities B2C Leverage retail presence Optimise HAPPYBET Targeted M&A to to grow Snaitech’s for online expand Snaitech online business Sustainable Success FY 2022 results
Slide 24: B2C: Leverage retail presence to grow Snaitech's online business
B2C: Leverage retail presence to grow Snaitech’s online business 24 A stronger business post pandemic • Largest gambling market in Europe* • Accelerated shift to online during pandemic looks permanent • Higher margin, less capital-intensive business • Online penetration still only 26% in Italy versu
Slide 25: B2C: Omni-channel and cross selling strategy
B2C: Leverage retail presence to grow Snaitech’s online business 25 Omni-channel and cross selling strategy to leverage retail presence • Advertising ban in Italy makes presence of a strong brand via a Average GGR per customer € 1511 retail footprint extremely important 1600 1400 1200 • Omni-channel
Slide 26: Sustainable Success – leading on ESG in our industry
Sustainable Success – leading on ESG in our industry 26 Delivering our ESG commitments Governance Stakeholder engagement 12% Reduction in Safer gambling tCO2 emissions in 2022 v 2021 Diversity, equity and inclusion Environment >100 Number of charities and communities Community supported FY 2022 resu
Slide 27: 2023 strategic priorities
2023 strategic priorities 27 Drive growth through the Americas, Live, SaaS and Snaitech, with a focus on efficiencies • In B2B, the focus regionally, will be on: o Driving growth in the US and Canada, given the multiple agreements signed in 2022 o Greater contribution from Brazil and Colombia, with
Slide 28: Investor day
Investor day 28 Investor event to highlight growth opportunities across B2B B2B investor event straight after this presentation • Highlight B2B growth opportunities in Americas, Live Casino • Presentation from Hard Rock as to why it is partnering with Playtech to help it capture the sizeable US onli
Slide 29: Ukraine update
Ukraine update 29 Focus on ensuring safety of employees and their families • Safety of our employees and their families remains the priority • Timely response by internal crisis management team • As war continues, we are monitoring current developments • Playtech has robust business continuity proce
Slide 30: Appendix
Appendix
Slide 31: Snaitech online KPIs
Snaitech online KPIs 31 Number of yearly active accounts Average number of monthly active accounts 800,000 300,000 700,000 250,000 600,000 500,000 200,000 400,000 576,967 504,579 300,000 434,704 438,369 150,000 338,408 260,269 237,617 200,000 100,000 176,789 100,000 149,212 75,058 75,217 92,199 97,6
Slide 32: Snaitech retail KPIs
Snaitech retail KPIs 32 Number of active AWP machines Number of active VLT machines 40,000 12,000 10,232 10,254 10,031 10,214 10,024 35,000 5,632 6,184 10,000 30,000 7,183 8,211 6,516 25,000 8,000 20,000 15,000 31,693 30,016 6,000 25,497 26,571 26,255 10,000 4,000 5,000 - 2,000 2018 2019 2020 2021 2
Slide 33: Snaitech online reconciliation of online margin
Snaitech online 33 Reconciliation of Snaitech’s online margin € millions FY 2021 FY 2022 % Online gross revenue* 384.2 405.0 5% Gambling taxes and bonuses (154.3) (170.8) 11% Online revenue (as reported)** 229.9 234.2 2% Online Adjusted EBITDA 135.3 132.2 -2% Adjusted EBITDA margin (gross)* 35% 33%
Slide 34: B2B customer concentration
B2B customer concentration 34 Stable customer concentration B2B customer concentration FY 2021 FY 2022 Top 3 32% 33% Top 5 42% 42% Top 10 55% 55% Top 15 63% 63% FY 2022 results
Slide 35: Contingent consideration
Contingent consideration 35 Group Contingent consideration Payment date Maximum payable earnout Acquisition and redemption liability (based on maximum (per terms of acquisition) (as at 31.12.2022) payable earnout) AUS GMTC PTY Ltd €46.7 million €2.1 million Q4 2025 Other €0.8 million €0.8 million Va
Slide 36: Thank you
Thank you