Codere Online Luxembourg, S.a. · NASDAQ:CDRO
Codere Online Luxembourg — Codere Online — SPAC Merger (June 2021)
38 slides from Codere Online Luxembourg's SPAC merger presentation, Jun 22, 2021
Slide 1: Codere Online Investor Presentation June 2021
1 Codere Online Investor Presentation June 2021
Slide 2: Disclaimer
2 Disclaimer This presentation (this “Presentation”), its contents and any information provided during the meeting to present this documen t a re for discussion purposes only, and must not be relied upon for any purpose. This document is not for release, publication o r d istribution, in whole or in
Slide 3: Disclaimer (cont.)
3 Disclaimer (cont.) No Offer or Solicitation This Presentation is not a proxy statement and does not constitute a solicitation of a proxy, consent or authorization with r esp ect to any securities or in respect of the Proposed Business Combination and shall not constitute an offer to sell or a soli
Slide 4: Today's Presenters
4 Today’s Presenters Moshe Edree │ Managing Director*, Codere Online O scar Iglesias │ Chief Financial Officer ** , Codere Online Martin Werner │ C o - Founding Partner, DD3 Capital Partners * Provides services as non - employee independent contractor ** Upon consummation; currently head of corporat
Slide 5: Codere Online – The Leader in LatAm Online Gaming and Sports Betting
5 Codere Online – The Leader in LatAm Online Gaming and Sports Betting ▪ To be the leading online gaming and sports betting operator in Latin America ▪ Leverage our online business in Spain and Mexico to expand in high - growth core LatAm markets ‒ Colombia , Panama, City of Buenos Aires ▪ Enter exp
Slide 6: DD3 Capital Partners – An Experienced and Proven Sponsor
6 DD3 Capital Partners – An Experienced and Proven Sponsor (1) Source: SPAC Analytics as of 6/14/2021. ▪ Specialized team with experience across different sectors and markets ▪ Sponsor with proven track record, delivering impressive shareholder returns ▪ First Mexican SPAC to close a deal, listing B
Slide 7: Transaction Overview
7 Transaction Overview Sources and Uses (1) ($MM) Key Transaction Terms Pro Forma Post Money Ownership (1)(2) Pro Forma Valuation (1) ($MM) Sources SPAC Cash in Trust $125 Sellers’ Rollover Equity 270 PIPE 67 Total Sources $ 462 Uses Cash to Balance Sheet $ 144 Sellers’ Rollover Equity 270 Cash to C
Slide 8: Transaction Proceeds Used to Support Growth
8 8 ▪ Continuous Improvement of Mobile Application Features ▪ New Bonus Engine ▪ Player & Content Management System Upgrade ▪ Brazil, Chile, Peru, Uruguay, Puerto Rico and Argentina ( excluding City of Buenos Aires) ▪ Licensing costs ▪ High Profile Sponsorships ▪ Traditional / Acquisition Media ▪ Ma
Slide 9: Comparable Company Benchmarking
9 0.07x 0.21x 0.02x 0.11x 0.05x 0.09x 0.45x 0.35x 0.26x 0.27x 0.05x 0.17x 0.03x 0.06x 0.06x 0.09x 0.38x 0.35x 0.24x 0.28x 2.3x 12.0x 7.4x 5.1x 5.1x 4.1x 4.2x 3.0x 2.6x 1.9x 1.7x 8.5x 4.4x 3.1x 4.3x 3.4x 3.8x 2.8x 2.4x 1.8x Comparable Company Benchmarking Source: Company filings, S&P Capital IQ, and
Slide 10: Codere Online At a Glance
10 Codere Online At a Glance (1) Core markets include Spain, Italy, Mexico, Colombia, Panama, and City of Buenos Aires. Expansion markets include Brazil, Chile, Peru, Puerto Rico, Uruguay, and Argentina excl. City of Buenos Aires. ▪ Codere Online is part of the renowned casino operator Codere Group,
Slide 11: Market Overview – Global Footprint with Largest Market Presence Throughout Latin America
11 Market Overview – Global Footprint with Largest Market Presence Throughout Latin America Codere Online Market Share Note: Market share per Company estimates. Retail footprint figures refer to Codere Group as of 12/31/19. (1) Based on 2019 gross win (per Panama’s Gaming Control Board (JCJ)). (2) R
Slide 12: Codere Online Management Team
12 Moshe Edree Managing Director* ▪ 17 + years experience in senior growth and operations roles at leading operators such as Ladbrokes and PartyGaming ▪ Previously held Board / advisor roles with NetPlay , IGlobal Media Israel, William Hill, Bwin.Party , Playtech , SafeCharge , and others Oscar Igle
Slide 13: Investment Highlights
13 Investment Highlights
Slide 14: Codere Online – The Singular Investment Play on Digital Sports / Casino Across Latin America
14 Critical market opportunity as Latin America expected to represent next wave of strategic focus for global gaming industry Expansive TAM with limited competition from global gaming operators Accretive omnichannel opportunity leveraging leading retail footprint throughout Latin America Proven and
Slide 15: Latin America Expected to Represent Next Wave of Strategic Focus For Global Gaming Industry
15 Latin America Expected to Represent Next Wave of Strategic Focus For Global Gaming Industry Source: H2 Gambling Capital (H2GC) as of 2020, VIXIO GamblingCompliance , and regulatory disclosures. GDP / population figures from World Bank World Development Indicators database. (1) Includes online spo
Slide 16: Codere Online Total Addressable Market Opportunity
16 Codere Online Total Addressable Market Opportunity Source: H2GC and regulatory disclosures. Please refer to Appendix for illustrative market sizing methodology detail. Note: EUR converted to USD at 2027E exchange rate of 1.244, per management forecasts. (1) Core Markets TAM reflects 2027E for ill
Slide 17: Limited Competition from Global Gaming Operators
17 Limited Competition from Global Gaming Operators Source: Eilers & Krejcik Gaming, VIXIO GamblingCompliance and regulatory disclosures. (1) Not publicly disclosed; at least 15 operators have specific authorization for online (based on Company’s understanding of current si tuation). (2) Per Coljueg
Slide 18: Increased Adoption of Online Technologies Further Enhances LatAm Market Opportunity
18 Increased Adoption of Online Technologies Further Enhances LatAm Market Opportunity (1) Source: United Nations International Telecommunication Union database (as of 2019). Represents percentage of population with int ernet access. LatAm includes Codere Online core / expansion markets only. (2) So
Slide 19: Accretive Omnichannel Opportunity Leveraging Codere Group's Leading Retail Footprint
19 19 Accretive Omnichannel Opportunity Leveraging Codere Group’s Leading Retail Footprint Throughout Latin America Cross - selling and coordinated promotional campaigns leveraging online and retail customer databases Enhanced payment processing options via retail locations (cash withdrawals & depos
Slide 20: Mexico to Serve as Blueprint for Broader Omnichannel Strategy for LatAm
20 +18% +24% Omnichannel First Time Depositors Omnichannel Net Gaming Revenue 2020A - 2025E CAGR 6% 16% 2020A (End of Period) 2025E (End of Period) % Registered (Cumulative) Mexico to Serve as Blueprint for Broader Omnichannel Strategy for LatAm (1) 5 - Year player lifetime value reflects player spe
Slide 21: Proven and Flexible Technology Platform in Place to Support Growth
21 Proven and Flexible Technology Platform in Place to Support Growth in Existing Markets and Expansion to New Markets Content Management System Player Account Management Wallet Responsible Gaming (Algorithmic Problem gambler identification ) Fraud & Risk BI & Online KPI Reporting Algorithmic Risk S
Slide 22: Highly Effective and Established Online & Mobile Sportsbook
22 Highly Effective and Established Online & Mobile Sportsbook Robust pre - match offering with historical data, odds, and player tips Industry - leading match visualization 24/7 Live Streaming and Comprehensive In - Play Offering 30,000+ Live Events Offered 30 Dedicated In - House Traders 200+ Indi
Slide 23: Leading Online Casino Offering
23 Leading Online Casino Offering [Placeholder] [Placeholder] 900+ Games Offered 20+ Third - Party Content Providers Proprietary player bonusing engine World - class library of compelling, high - performing casino content Full sportsbook integration drives $0 CPA cross - sell within the Codere ecosy
Slide 24: Robust Marketing Strategy Drives Efficient Acquisition of High-Value Players
24 Robust Marketing Strategy Drives Efficient Acquisition of High - Value Players Acquisition Media Traditional Media Marketing Agencies Campaign Production Sponsorships 3mm+ Codere Group registered retail player database (2) (1) Rights to the sponsorship agreement with Real Madrid expected to be li
Slide 25: Well-Positioned to Capitalize on the Large Untapped Hispanic Market Opportunity in the US
25 Well - Positioned to Capitalize on the Large Untapped Hispanic Market Opportunity in the US (1) Rights to the sponsorship agreement with Real Madrid expected to be licensed from Codere Group. (2) Source : World Population Review. (3) Source: Morgan Stanley research estimates as of January 2021. M
Slide 26: Financial Highlights
26 Financial Highlights
Slide 27: $1 Billion+ Revenue Opportunity With Potential Expansion Into High Growth LatAm Markets
27 $27 $54 $71 $85 $108 $152 $203 ~$200 ~$400 ~$600 ~$1bn+ 2017A 2018A 2019A 2020A 2021E 2022E 2023E Growth in Core Markets 2027E Expansion Market Entry (Assumes 30% Share) Illustrative Potential Net Gaming Revenue 32% 37% 11% 5% 8% 7% 59% 34% 6% $1 Billion+ Revenue Opportunity With Potential Expans
Slide 28: 2020 Financial Highlights
28 78% 22% 2020 Financial Highlights 450K+ Player Registrations 150K+ First Time Depositors 30%+ Conversion Rate (1) 50K+ Average Monthly Active Players (2) ~10% Sports Betting Hold ~3.5% Casino Gaming Hold Selected Key Performance Indicators 2020A Net Gaming Revenue by Product Sports Betting Casino
Slide 29: Spain Case Study: Unit Economics and Path to Targeted Contribution
29 Spain Case Study: Unit Economics and Path to Targeted Contribution Note: Gross profit represents NGR less variable expenses (gaming taxes, payment processing, and other third party services). (1) Based on actual cohort data through March 2021, and management estimates thereafter. (2) LTV based on
Slide 30: Mexico Case Study: Unit Economics and Path to Targeted Contribution
30 Mexico Case Study: Unit Economics and Path to Targeted Contribution Note: Gross profit represents NGR less variable expenses (gaming taxes, payment processing, and other third party services). (1) Based on actual cohort data through March 2021, and management estimates thereafter; CPA includes le
Slide 31: Illustrative Consolidated Margin Outlook (Core Markets)
31 100% ~ 65% ~25% 17% 8% 10% 31% 7% 3% Net Gaming Revenue Gaming Taxes Payment Processing Content / Other Third Party Services Gross Margin Marketing Other Operating Expenses Personnel Costs EBITDA Illustrative Consolidated Margin Outlook (Core Markets) Note: includes growth marketing expenditures.
Slide 32: Codere Online – The Singular Investment Play on Digital Sports / Casino Across Latin America
32 32 Supported by Codere Group’s strong brand and 30+ years of operating experience in LatAm , Codere Online is uniquely positioned to become the leading player throughout the region Codere Online expects to leverage its differentiated omnichannel platform to attract a loyal, sustainable, high - va
Slide 33: Appendix
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Slide 34: Codere Online P&L
34 Codere Online P&L EUR converted to USD at exchange rate of 1.120 and 1.141 in 2019 and 2020 respectively. (1) Figures primarily reflect differences in recognition of revenue related to certain partner and affiliate agreements in place in Colombia and our ‘.com’ business, along with VAT impact fro
Slide 35: Selected Benchmark Market Metrics
35 Selected Benchmark Market Metrics Source: H2GC and regulatory disclosures. GDP / population figures from World Bank World Development Indicators database. Internet connectivity data from United Nations International Telecommunication Union database . Note: EUR converted to USD at 2019 average exc
Slide 36: Comparable Company Benchmarking Detail
36 Comparable Company Benchmarking Detail Source: Company filings, S&P Capital IQ, and Wall Street research . Prices as of 6/18/2021. Note: $ in millions, except share prices. (1) Represents TEV / 2022E revenue multiple or TEV / 2023E revenue multiple divided by 2020 - 2022 CAGR or 2020 - 2023 CAGR,
Slide 37: Glossary
37 Glossary Gross Gaming Revenue (GGR): Gross dollar value of wagers less player wins Net Gaming Revenue (NGR): GGR less player bonuses / promotional bets First Time Depositor (FTD): New players who make a deposit for the first time during a given period Conversion Rate: Number of FTDs in a given pe
Slide 38: For additional information, please contact
38 For additional information, please contact: Codere Online Investor Relations codereonline.com inversor@codere.com