Slide 1: FY22 Results Presentation
FY22 Results Presentation For the full-year ended 30 June 2022 26 August 2022
Slide 2: Disclaimer
Disclaimer This presentation contains summary information about the activities of Jumbo statements regarding Jumbo’s current anticipated belief, expectation or Interactive Limited ABN 66 009 189 128 (Jumbo) and its controlled intent with respect to the Group’s future performance. Such forward-lookin
Slide 3: Agenda
Agenda 1 Business Update 2 Financial Results 3 Mike Veverka David Todd CEO and Founder CFO Conclusion & FY23 outlook 4 Q&A Jumbo・FY22 Results 2
Slide 4: Business update
Business update Mike Veverka CEO and Founder Jumbo・FY22 Results 3
Slide 5: FY22 Group result overview
FY22 Group result overview TTV ($m) Revenue ($m) Underlying EBITDA2 ($m) Revenue margin EBITDA margin 17.1% 16.8% 15.8% 58.7% 58.1% 52.9% +36% +28% +16% 659.9 487.0 104.3 83.3 81.7 48.9 47.5 55.1 FY21 FY223 FY21 FY21 FY223 FY21 FY21 FY223 Reported Underlying1 Reported Underlying1 Underlying NPAT2 ($
Slide 6: Executing on our strategy
Executing on our strategy Lottery SaaS Managed Capability Balance Retailing Services sheet Record result All SaaS clients Expanded Established On-market underpinned by performing international strong share buy- improved well, driven by footprint via foundations back of up to jackpots and ‘Powered by
Slide 7: A clear strategy and operating model to deliver sustained growth
A clear strategy and operating model to deliver sustained growth Our mission and vision Strategic pillars Three operating segments Core capabilities Outcomes 1. Vs S&P/ASX 300 Accumulated. Jumbo・FY22 Results 6
Slide 8: We are a digital lottery specialist
We are a digital We exist to make lotteries lottery specialist easier by being the number one choice in digital lottery Providing our best in class lottery software platform and services and lottery management expertise to the charity and government lottery sectors Founded in 1995 and listed on in A
Slide 9: Our three operating segments
Our three operating segments Group result overview 1. Jumbo is an authorised reseller of lottery tickets via an agreement with The Lottery Corporation (TLC, previously Tabcorp). In August 2020, Jumbo extended its long running re-seller agreement with The Lottery Corporation for a further 10 years to
Slide 10: Active players provide the foundation for future growth
Active players provide the foundation for future growth Includes contribution from 2.3x ・Includes contribution from Lottery Retailing only SaaS and Managed Services 1. Pending regulatory approval, expected by the end of Q1FY23 Jumbo・FY22 Results 9
Slide 11: Lottery Retailing
Lottery Retailing – Australian digital sales of lottery tickets up to 37.7% (1H22: 36.7%) – 43 large jackpots (Oz Lotto/Powerball ≥ $15m) (1H22: 23 jackpots) – Average value per large jackpot up 27.8% to $40.7m (1H22: $37.8m) % of AUS lottery sales through the online channel1 Aggregate Division 1 Ja
Slide 12: Lottery Retailing
Lottery Retailing – 395,916 new players for the 12 months ended 30 June 2022, up 63% vs pcp (FY21: 243,2061) – $18.33 cost per lead for the 12 months ended 30 June 2022, down 10% vs pcp (FY21: $20.421) – 918,832 active players for the 12-month period ending 30 June 2022, up 20% vs pcp (FY21: 766,263
Slide 13: Lottery Retailing
Lottery Retailing Acquisition spend as a % of new player revenue Illustrative cumulative revenue contribution from new player cohorts 67% 68% 57% 55% 46% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Jumbo・FY22 Results 12
Slide 14: Software-as-a-Service (SaaS)
Software-as-a-Service (SaaS) “The Jumbo team has worked brilliantly with Lotterywest to create an opportunity for shared growth, it’s the sort of creativity and collaboration that underpins our growing partnership in WA.” – Ralph Addis, CEO Lotterywest Active players Underlying TTV ($m) +39% 1.2m +3
Slide 15: Managed Services - Gatherwell
Managed Services - Gatherwell Gatherwell TTV (£m) Operational highlights Gatherwell community lottery locations +31% >11K Good causes supported on platform 9,310 12,175 190 Charities 109 FY21 FY22 Local Government Authorities Gatherwell active players 94% (total market ~400) Customer satisfaction +8
Slide 16: Managed Services - STRIDE
Managed Services – STRIDE A leading Canadian External Lottery Manager focused on providing a full service offering to organisations seeking to fundraise via charitable lottery or a fully managed raffle product – Founded in 1997 – ~10% market share nationally / ~40% market share – >45 client projects
Slide 17: Financial results
Financial results David Todd CFO Jumbo・FY22 Results 16
Slide 18: Underlying EBITDA
Underlying EBITDA Underlying EBITDA FY22 vs FY21 ($’000) +16.0% (6,297) 22,049 +77.0% (8,752) 609 55,097 54,045 1,646 (1,052) 47,276 47,488 +33.2% (1,434) +27.0% FY21 EBITDA One-offs1 Lotterywest FY21 EBITDA Revenue Cost of sales Operating Other income FY22 EBITDA One-offs3 FY22 EBITDA (reported) ad
Slide 19: Lottery Retailing
Lottery Retailing TTV ($’000) Revenue ($’000) EBITDA ($’000) +31.8% Revenue margin % EBITDA margin % 20.5% 20.6% 19.8% 40.5% 40.0% 33.1% +26.7% 460,637 +4.7% 365,444 349,480 91,098 75,083 71,924 30,380 28,773 30,112 FY21 FY21 FY22 FY21 FY21 FY22 FY21 FY21 FY22 Reported Underlying1 Reported Underlyin
Slide 20: Software-as-a-Service (SaaS)
Software-as-a-Service (SaaS) TTV ($’000) Revenue ($’000) EBITDA ($’000) +38.6% External Revenue margin % EBITDA margin % 4.7% 5.3% 5.0% 68.5% 68.3% 67.8% +31.9% 42,708 8,318 32,060 32,380 +30.8% 167,465 4,938 6,455 External 120,808 104,844 34,390 27,122 28,944 25,925 Internal2 21,954 22,127 FY21 FY2
Slide 21: Gatherwell performing to model
Gatherwell performing to model Gatherwell TTV (£’000) Gatherwell Revenue (£’000) Gatherwell EBITDA (£’000) Revenue margin % EBITDA margin % +30.8% 19.8% 18.8% 36.0% 29.8% +24.3% 12,175 +2.9% 9,310 2,288 1,840 663 682 FY21 FY22 FY21 FY22 FY21 FY22 Jumbo・FY22 Results 20
Slide 22: Established strong foundations to grow
Established strong foundations to grow Operating expenses FY22 vs FY21 ($’000) +33.2% 1,577 36,728 1,165 35,151 451 230 456 2,924 3,526 28,090 26,399 (1,646) (45) FY21 One-offs1 Lotterywest FY21 Employee Marketing / Travel Stride Other Other FY22 One-offs3 FY22 operating costs adjustment2 operating
Slide 23: Balance sheet strength
Balance sheet strength – Strong balance sheet as at 30 June 2022 with a cash balance of $60.0m1 (FY21: 53.8m1) – FY22 final ordinary dividend of 20.5cps reflects a 30 Jun 2022 30 Jun 2021 payout ratio of 85.6% of statutory NPAT: $’000 $’000 – Record date: 2 September 2022 Cash 68,930 63,139 – Paymen
Slide 24: Balance sheet strength underpinned by cash generation
Balance sheet strength underpinned by cash generation – Free cash flow of $38.2m1 (FY21: $28.6m) – Cash conversion ratio of 122.4%2 (FY21: 106.2%) Cashflow reconciliation ($’000) 2H22 dividend (12,615) 4,279 Stride earnout (1st tranche) (1,854) 8,742 StarVale consideration (40,566)5 31,176 (5,715) S
Slide 25: Conclusion & FY23 Outlook
Conclusion & FY23 Outlook Mike Veverka CEO and Founder Jumbo・FY22 Results 24
Slide 26: Successfully growing earnings and cash generation
Successfully growing earnings and cash generation Revenue ($m) EBITDA ($m) Operating cashflow ($m) +26% FY17 – FY22 CAGR +31% FY17 – FY22 CAGR +32% FY17 – FY22 CAGR 44.5 42.5 35.5 36.5 104 26.5 23.5 83 54 44 47 71 39 65 43 40 35 28 40 32 19 17 14 11 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20
Slide 27: Lotteries have proven to be highly resilient to recessions
Lotteries have proven to be highly resilient to recessions Australian lotteries sales over time ($bn)1,2 ‘91 ‘01 ‘08 ‘20 Recession Recession GFC COVID-19 7.2 6.7 6.5 5.2 5.3 5.2 +3.5% 4.8 4.8 4.9 5.0 4.7 4.4 4.5 4.3 4.0 4.1 3.7 3.8 3.9 3.4 3.5 3.2 3.2 3.0 2.9 3.1 2.8 2.9 2.6 2.7 2.7 2.4 FY90 FY91 FY
Slide 28: OzLotto game change 2022
OzLotto game change 2022 – average RPPU post game change (early days but looks positive) OzLotto RPPU1 for jackpots ≤ $10m ($) OzLotto game change + 15c price increase (+10%) + 13% increase in RPPU2 RPPU Average RPPU (pre game change) 1438 1441 1442 1443 1447 1448 1449 1452 1453 1454 1455 1459 1460
Slide 29: FY23 Outlook
FY23 Outlook Lottery Retailing* Group StarVale (excluding Stride and StarVale) – Cost of sales to be impacted by the – Underlying operating cost growth – Anticipate regulatory approval by the increase in The Lottery Corporation excluding Lottery Retailing marketing end of Q1FY23 service fee to 3.5%
Slide 30: Questions
Questions
Slide 31: Supplementary Information
Supplementary Information Jumbo・FY22 Results 30
Slide 32: Jumbo investment highlights
Jumbo investment highlights Profitable and global growth underpinned by yield and positive sector dynamics Pure play digital lottery specialist with best-in-class lottery software Capital light business model, with and digital marketing expertise strong balance sheet Growth underpinned by structural
Slide 33: Large, growing and underpenetrated serviceable available market
Large, growing and underpenetrated serviceable available market 1. Reflects total government lottery market in Australia and the US plus total individual charitable giving in Australia, UK and Canada. 2. Reflects the current portion of the market that can be acquired based on our existing business m
Slide 34: FY22 Group consolidated results
FY22 Group consolidated results FY22 FY21 Variance 2H22 1H22 $’000 $’000 % $’000 $’000 TTV 659,924 486,981 35.5% 331,990 327,934 Revenue 104,251 83,319 25.1% 51,410 52,841 Cost of sales (14,473) (8,339) 73.6% (7,221) (7,252) Gross profit 89,778 74,980 19.7% 44,189 45,589 Other revenue 995 386 >100%
Slide 35: Reconciliation to FY22 reported earnings
Reconciliation to FY22 reported earnings FY22 FY21 $’000 $’000 Underlying EBITDA 55,097 48,922 Underlying EBIT 46,355 40,683 Underlying NPAT 32,205 28,346 Add/(deduct) significant items − Profit on disposal of subsidiary 5253 − Acquisition costs (973)1 (602) − Consulting and legal fees (867) − Charg
Slide 36: FY22 Group results overview – underlying performance
FY22 Group results overview – underlying performance Reported Lotterywest Underlying Reported Variance FY21 Adjustment1 FY21 FY22 % $’000 $’000 $’000 $’000 TTV 486,981 - 486,981 659,924 35.5% Revenue 83,319 (1,642) 81,677 104,251 27.6% Revenue margin 17.1% -0.3% 16.8% 15.8% -1.0% Underlying operatin
Slide 37: Lotterywest adjustments - detail
Lotterywest adjustments - detail FY21 Lotterywest FY21 FY22 Variance Reported adjustment1 Underlying Reported % $’000 $’000 $’000 $’000 Lottery Retailing 365,444 (15,964) 349,480 460,637 31.8% SaaS 104,844 15,964 120,808 167,465 38.6% TTV Managed Services 16,693 16,693 31,822 90.6% Group 486,981 - 4
Slide 38: Lotterywest adjustments - detail
Lotterywest adjustments - detail FY21 Lotterywest FY21 FY22 Variance Reported adjustment1 Underlying Reported % $’000 $’000 $’000 $’000 Lottery Retailing 40,109 (1,652) 38,457 43,096 12.1% Gross SaaS 31,926 173 32,099 42,391 32.1% profit Managed Services 2,945 - 2,945 4,291 45.7% Group 74,980 (1,479
Slide 39: FY22 result – segmental information
FY22 result – segmental information Lottery Managed Intersegment SaaS Total Retailing Services eliminations $’000 $’000 $’000 $’000 $’000 TTV 460,637 167,465 31,822 - 659,924 − Company 460,637 - - - 460,637 − Third-party - 167,465 31,822 - 199,287 Total segment sales revenue from external customers
Slide 40: Lottery Retailing
Lottery Retailing FY22 FY211 Variance % TTV ($’000) 460,637 349,480 31.8% TTV by product (%) Revenue ($’000) 91,098 71,924 26.7% Revenue margin (%) 19.8% 20.6% -0.8% Cost of sales1 ($’000) (48,002) (33,467) 43.4% Operating expenses ($’000) (12,984) (9,684) 34.1% EBITDA ($’000) 30,112 28,773 4.7% Num
Slide 41: Managed Services
Managed Services FY22 FY21 TTV 31,822 16,693 – Gatherwell 22,044 16,502 – Jumbo Fundraising 710 191 – Stride1 9,068 - Revenue 4,835 3,298 – Gatherwell 4,069 3,249 – Jumbo Fundraising 148 49 – Stride1 618 - EBITDA 844 914 – Gatherwell 1,156 1,151 – Jumbo Fundraising (392) (237) – Stride1 80 - 1. Stri
Slide 42: Stride financials
Stride1 financials Actuals Actuals Actuals 1-month contribution 12 months to 12 months to 12 months to to FY22 Group result4 30 Sep 2021 30 Jun 2022 30 Jun 2022 C$’0002 C$’0002 A$’0003 C$’0002 A$’0003 TTV 100,103 91,363 101,968 8,331 9,068 Revenue 6,240 6,167 6,883 568 618 EBITDA 2,433 2,587 2,887 7
Slide 43: Financial framework and P&L drivers
Financial framework and P&L drivers 1. Effective 13 July 2020, a service fee was introduced under the 10 year agreement with The Lottery Corporation (previously Tabcorp) (signed August 2020). The service fee is based on the cost of ticket purchases at 1.5% for FY21 purchases, 2.5% for FY2022 purchas
Slide 44: FY22 pro forma financials (Stride + StarVale)
FY22 pro forma financials (Stride + StarVale) Illustrative only TTV ($m) Revenue ($m) Underlying EBITDA1 ($m) EBITDA margins 879 FY22 reported 52.9% Stride 41.9% StarVale 38.9% 121 Group (pro-forma) 51.1% 62 660 104 487 83 55 49 FY21 FY22 FY21 FY22 FY21 FY22 Reported Pro forma Reported Pro forma Rep