Super Group (sghc) Limited · NYSE:SGHC
Super Group (sghc) — Q2 2022 Earnings Presentation
18 slides from Super Group (sghc)'s earnings presentation, Aug 11, 2022
Slide 1: 2Q 2022 Earnings Review
2Q 2022 Earnings Review August 11, 2022
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements Certain statements made in this presentation are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995.These forward- looking statements include, but are not limited
Slide 3: Our Vision / Our Winning Hand
Our Vision To provide first-class entertainment to the worldwide betting and gaming community Our Winning Hand World-wide focus …to reach as many customers as possible Global sports brand and multi-brand casino …to drive global awareness Data-driven …to make the best possible decisions in real time
Slide 4: 2Q 2022 Super Group Overview
2Q 2022 Super Group Overview Providing first-class entertainment to the worldwide betting and gaming community for over 20 years Single-brand online sportsbook Multi-brand online casinos • Global footprint & market share • Established market leadership in high-growth markets • Strategic partnerships
Slide 5: 2Q 2022 – Maintaining Profitability and Generating Cash
2Q 2022 – Maintaining Profitability and Generating Cash Adjusted Monthly YTD Free NGR Active Cash Flow EBITDA Customers $2.1bn Conversion $1.5bnEEBITD $358m €316m €1.8bn €54m 2.7m 83% 74%($) €1.3bn €302m 82% (€) QoQ (7%) (36%) +3% change 5
Slide 6: Net Gaming Revenue
Net Gaming Revenue €1,400m NGR decreased by 7% to €316 million €1,255m €1,200m Sports betting revenue increased €6 million or 6% from €320m 2Q21: €1,000m €972m • Strong growth in Africa and Asia-Pacific • Partially offset by declines in Europe and North America €279m • Excluding closed European mark
Slide 7: NGR Contribution of Betway & Spin
NGR Contribution of Betway & Spin 45% 50% 50% 55% 2Q 2021 2Q 2022 7
Slide 8: NGR Geographic Breakdown
NGR Geographic Breakdown RoW RoW 20% 23% 47% Americas Europe 11% 53% Americas Europe 10% 16% 20% Africa Africa 2Q 2021 2Q 2022 8
Slide 9: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA decreased 36% to €54 million €350m Net Gaming €303m €23 million Revenue €300m €70m €250m €214m Other Revenue €11 million €200m €84m €71m €150m €117m Direct Expenses €3 million €55m €100m €84m €54m €50m €61m Marketing €64m €63m €7 million €27m Expense €0m 2020 1 2021 2
Slide 10: Cost Structure Breakdown
Cost Structure Breakdown Type of % Operating Line Item Cost Cost Base Leverage Direct Expenses Gaming tax, license costs and other tax Processing & fraud costs Variable 42% - 46% Software fees Other Marketing Variable Affiliates, non-affiliate marketing, sponsorships / LED 29% - 33% and Fixed Genera
Slide 11: 2022 Updated Guidance, Drivers and Assumptions
2022 Updated Guidance, Drivers and Assumptions Drivers and Assumptions for 2022 Guidance Revenue REVENUE €1.150bn - €1.280bn • Negative impact due to customer discretionary spend (Net Gaming, Agency and Brand License Revenue) • Normalization post COVID • Reduction of Brand license fee to ~ €2 millio
Slide 12: 2022 Adjusted EBITDA Bridge
2022 Adjusted EBITDA Bridge Previous Guidance to Low Point of Revised Range (€153m) (€22m) €345m €49m (€32m) €13m €200m 2022 Previous NGR and Agency Brand License Revenue Direct Costs Marketing Expense Operating Costs 2022 Revised Adjusted Adjusted EBITDA Revenues EBITDA Guidance Guidance 12
Slide 13: Investment Summary
Investment Summary ✓ Global reach and scale ✓ Unique mix of growth and profitability ✓ Premium, global brand ✓ Asset-light business model ✓ Data-driven, customer-centric digital business ✓ Control of best-in-class technology ✓ Financial flexibility with solid balance sheet 13
Slide 14: Appendix
Appendix Sup er lll sroup
Slide 15: Quarterly Build
Quarterly Build (EUR in millions) 1Q21 2Q21 1H21 3Q21 4Q21 2021 1Q22 2Q22 1H22 Net Gaming Revenue 300 339 639 296 320 1,255 315 316 631 Other Revenue1 17 17 34 17 20 71 20 7 27 Total Revenue 317 356 673 313 340 1,326 335 323 658 Direct Expenses (113) (121) (234) (103) (118) (455) (115) (119) (234) M
Slide 16: Reconciliation to Financial Statements in Form 6-K – EBITDA
Reconciliation to Financial Statements in Form 6-K – EBITDA (in millions) 2Q22 Adj. EBITDA €54 (-) Unrealised FX 11 (-) Audit and Non-recurring or prior period adjustments (1) Adj. 6-K EBITDA €64 (-) RSU expense (3) (+) Fair value adjustment of warrants and earnout liabilities 258 6-K / AFS EBITDA €
Slide 17: Detailed Pro Forma Share Count
Detailed Pro Forma Share Count Total Capitalization Shares (millions) Shares issued and outstanding 490.2 Additional Securities Shares (millions) Assumption of SEAC warrants1 (strike price: $11.50) 33.5 Earnout shares I (earnout trigger: $11.50)2 12.7 Earnout shares II (earnout trigger: $12.50)2 12.
Slide 18: I Supe
I Supe IM croup