Ballys Intralot S.a. · ATHEX:BYLOT
Ballys Intralot — Intralot — Investor Presentation (October 2024)
34 slides from Ballys Intralot's investor presentation, October 2024
Slide 1: Company Presentation October 2024
Company Presentation October 2024
Slide 2: Disclaimer
Disclaimer The following disclaimer applies to this presentation and the information provided therein, which has been prepared by Intralot S.A. (and, together with its subsidiaries, the “Group”), or any person on behalf of the Group and any other material distributed or statements made in connection
Slide 3: Introduction to Intralot
intralot Introduction to Intralot
Slide 4: Intralot is a Leading Global Lottery Technology Provider
Intralot is a Leading Global Lottery Technology Provider Company Overview Operational Highlights Established international gaming company, listed on the Athens Stock Exchange with a market capitalization of €659m(1) Focus on the profitable lottery sector for B2B and B2G market, with limited 39 89% e
Slide 5: Diversified Product Offerings via Lottery, iLottery, VLT Monitoring, and Sports Betting
Diversified Product Offerings via Lottery, iLottery, VLT Monitoring, and Sports Betting Established Revenue Streams and Growth Opportunities Focused on New Trends Lottery iLottery VLT Monitoring Sports Betting • Provides technology for traditional lottery • Provides technology to state lotteries to
Slide 6: Global Footprint with Diversified Geographic Coverage
Global Footprint with Diversified Geographic Coverage Extensive Geographic Footprint(8)… …with Diversified Revenue Mix LTM 30 June 2024 • 67K Retailer Terminals • 65K Signage Monitors(2) • 51K Retailer Terminals • 16K Self Service Terminals • 10K Signage Monitors • 18K VLT Monitoring Devices(3) 30%
Slide 7: Cutting Edge Technology at the Heart of Intralot
Cutting Edge Technology at the Heart of Intralot Intralot has Developed a Unique Technology Ecosystem Allowing for Flexible Operations Across the Value Chain Illustrative Technology Ecosystem Customers have the flexibility to use Intralot for the entire value chain or just 3rd Orchestrator party pro
Slide 8: Strong and Positive Transformation since 2019
Strong and Positive Transformation since 2019 Current Management Team Took Over in 2019 Exiting of unprofitable/loss- making contracts Selected Milestones Key Operational Achievements(1) Entry into new contracts with high margins in the US Significant cost optimisation initiatives Montana, Lou
Slide 9: Intralot Highlights
intralot Intralot Highlights
Slide 10: Intralot Highlights
Intralot Highlights 1. Strong Focus on Profitable Lottery Technology Market With Resilient and Growing Demand 2. A Leading Global Player in a Market with Significant Barriers to Entry 3. Longstanding Regulatory Relationships with Commitment to Responsible Gaming 4. State-of-the-Art Technological and
Slide 11: Global Lottery is a Resilient and Sizable Market
1 Global Lottery is a Resilient and Sizable Market Transition to Digital and Legalisation of iLottery in the US Represent Important Medium-Term Catalysts Global Lottery Market Highlights 3 Players Leading the US Lottery Market Resilient and defensive sector through the cycle WA MT ND ME OR MN VT NH
Slide 12: Consistently One of the Leading Global Players in a Market with Significant Barriers to Entry
2 Consistently One of the Leading Global Players in a Market with Significant Barriers to Entry Significant Barriers to Entry Highly Regulated Sector Relationships & Dynamics Proprietary Technology Required • Strict compliance with state and federal laws • Experience with governments and public • Co
Slide 13: Longstanding Regulatory Relationships with a Commitment to Responsible Gaming
3 Intralot has Built Longstanding Regulatory Relationships with a Commitment to Responsible Gaming We operate in regulated markets with stable regulations Committed to Maintain the Highest Standards in Longstanding Relationship with Key Regulators Responsible Gaming Market “Unwavering commitment to
Slide 14: Market-Leading Technological Solutions Underpin Competitive Advantage
4 Market-Leading Technological Solutions Underpin Intralot’s Competitive Advantage Specialised Microservice Architecture Offering Stability, Scalability, Parametrization and Fast 3rd Party Integration Player touchpoints – different Monitoring – monitor & control 3rd party systems – integration of ex
Slide 15: Technology, Technical and Operational Capabilities and Cost Advantage
4 Technology, Technical and Operational Capabilities and Cost Advantage Underpin Strong Track Record of Winning New Contracts Intralot has a Strong Track Record …on the Back of Technical & …and Structural Cost Advantage of Winning New Contracts… Operational Capabilities… Greek Cost Centre: Over th
Slide 16: Diversified Portfolio of Contracts and Geographies
5 Diversified Portfolio of Contracts and Geographies… Diversified Geographical Footprint Focused Diversified, Long Dated Contract Base on Developed Countries Maturity / Revenue by Geography, % (LTM 30 June 2024 ) % of Renewal Year Revenue LTM (either through RfP tender process, Contract(2) Country e
Slide 17: Backed by Long-Term Contracts with a Track Record of Successful Extensions
6 …Backed by Long-Term Contracts with a Track Record of Successful Extensions… Strong Portfolio of Existing Contracts Focus and Positioning on Contracts with Shorter Highlights with Expectation to Renew Term Maturity / Renewal Year % of LTM 30 June 2024 Contracted Revenue in 2024E- 17.7% Revenue • O
Slide 18: with Significant Growth Opportunities Ahead
6 …with Significant Growth Opportunities Ahead Material Pipeline(1) of Tenders for Growth Contracts (ie: new contracts or renewal of existing contracts at wider scope) (List excludes renewals of existing contracts at unchanged scope) Estimated EBITDA Estimated Capex New Contract vs. Contribution (2)
Slide 19: Flexible and Increasingly Efficient Cost Structure
7 Flexible and Increasingly Efficient Cost Structure Highly Flexible Cost Structure(1) Historical Cost Evolution (2, 3) LTM 30 June 2024 €m, unless otherwise stated Total Cost (%) 78.5% 75.1% 72.8% 73.3% Revenue 5.2% improvement 325 295 265 266 84 €266m ~30% 84 99 108 Fixed Costs (4) 241 210 166 158
Slide 20: High Margins, Strong Cash Flow, Predictable Capex
7 High Margins, Strong Cash Flow, Predictable Capex Robust EBITDA with Strong Margins Predictable Capex Requirements €m, unless otherwise stated Capex Components – Three Categories EBITDA margin (%) 26.7% 31.3% 35.6% 34.8% • On-going expenditure on existing contracts 129 126 − Mainly for existing in
Slide 21: Experienced Management Team who Delivered a Comprehensive Turnaround
8 Experienced Management Team who Delivered a Comprehensive Operational And Financial Turnaround… Highly Experience and Committed Management… …with Track-record of Delivering Results Country-Mix Rebalancing Operational Streamlining • Founded Intralot in 1992 Sokratis P. Kokkalis • Degrees in Physics
Slide 22: Backed by Supportive, Long-Term Shareholders
8 …Backed by Supportive, Long-Term Shareholders Intralot’s Shareholding Comprises Primarily Long-Term, Strategic Capital… %(1) Market Cap: €659m(2) • Founded Intralot in 1992, after having launched the first Sokratis P. advanced technology hub in Greece with the establishment of Kokkalis Intracom in
Slide 23: Historical Financials Overview
3 Historical Financials Overview
Slide 24: Revenue and EBITDA Evolution
Revenue and EBITDA Evolution Historical Revenue Evolution Historical EBITDA Evolution €m, unless otherwise stated €m, unless otherwise stated 414 Margin (1) 30.0% 33.1% 35.0% 34.5% 393 364 362 102 50 6 3 129 126 123 4 2 110 10 342 358 359 17 312 125 124 113 94 2021 2022 2023 LTM 30 June 2021 2022 20
Slide 25: H1 2024 Performance Update
H1 2024 Performance Update Strong Underlying Business Performance on both Topline and Margin Basis Organic Performance €m H1 2023 H1 2024 ▲% •1 Normalized Revenue (excl. Morocco, Argentina) up 11% reflecting strong performance in the core underlying business Revenue 175 174 (1%) – Stable performance
Slide 26: Historical Financials – P&L
Historical Financials – P&L LTM 30 June €m 2021 2022 2023 2024 Revenues 414 393 364 362 Increasing GGR offsetting license Gross Gaming Revenue 335 344 349 350 expiration in Malta and FX headwinds Cost of Sales(1) (216) (216) (203) (202) Gross Profit 119 128 145 148 Gross Profit Margin (%) 28.8% 32
Slide 27: Historical Financials – Balance Sheet
Historical Financials – Balance Sheet €m 2021 2022 2023 LTM 30 June Significant Debt Reduction 2024 Net Debt / EBITDA, x Total Assets 608 617 589 583 Tangible Assets 123 116 94 88 Intangibles 204 209 182 183 4.5x Other Assets 49 56 56 61 4.0x Total Non Current Assets 377 381 333 331 Inventories 19 2
Slide 28: Historical Financials – Cashflow Statement Capex
Historical Financials – Cashflow Statement LTM 30 June €m 2021 2022 2023 2024 1 EBITDA • Upside depending on Growth Contracts tenders outcomes 1 EBITDA 110 123 129 126 • Generally low maintenance requirements Maintenance (14) (15) (13) (12) Maintenance • Stable between €10m and €15m per year in the
Slide 29: Appendix
intralot Appendix
Slide 30: EBITDA Representation
EBITDA Representation Adjustments to EBITDA €m LTM 30 2021 2022 2023 June 2024 •1 Capital structure optimization in the stated period EBITDA (incl. one-off expenses) 93 122 129 125 relates to: (+) One-off expenses 17 1 - 1 – LTM: part of costs related to the US term loan 1 extension, the issuance of
Slide 31: FX Impact & Hedging Policy
FX Impact & Hedging Policy Invoiced Sales by Currency Exposure Historical FX Gains / Losses LTM 30 June 2024 Currency Split(1), (%) Net Gains / (Losses), Income Statement, 2021- 2023 (in €m) Other 30% 1.2 USD 45% 70% Hard Currency(2) NZD 1% 0.4 AUD 0.2 6% Euro 2021A 2022A 2023A 18% • Most FX volatil
Slide 32: Intralot’s Operations in the US
Intralot’s Operations in the US Significant Growth Opportunities Ahead Driven by Penetration of the Digital Channel Historical Revenues Key Operating & Financial Metrics LTM 30 June 2024, North America(1) LTM 30 June 2024, North America(1) €164m €70m 45% of Revenues EBITDA LTM Revenues Lottery 14 VL
Slide 33: Intralot’s Operations in Turkey
Intralot’s Operations in Turkey Established Sports Betting Electronic Agent with Growing Market Share in an Accelerating Market Historical Revenues Key Operating & Financial Metrics LTM 30 June 2024, Turkey LTM 30 June 2024, Turkey €64m €19m 18% of Revenues EBITDA LTM Revenues 1 Sports Betting Contr
Slide 34: Intralot’s Operations in Argentina
Intralot’s Operations in Argentina Unparalleled Market Positioning Allows for Steady Cash Flow Stream to Fund Growth Historical Revenues Key Operating & Financial Metrics LTM 30 June 2024, Argentina LTM 30 June 2024, Argentina €29m €5m 8% of Revenues EBITDA LTM Revenues 13 Lottery Contracts 2007 50.