Slide 1: FY 2020 results
FY 2020 results 11 March 2021
Slide 2: Agenda
Agenda 2 Group overview Financial review Strategic priorities and outlook Mor Weizer Andrew Smith Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer FY 2020 results
Slide 3: 2020 Highlights
2020 Highlights 3 Positioned for long term success • Significant strategic & operational progress due to the hard work, resilience & commitment of our people • Executing US strategy: NJ & Michigan licences, bet365 & Entain launched, strategic deals with Parx & Novomatic • Structured agreements signe
Slide 4: Response to COVID-19
Response to COVID-19 4 Responsible actions taken throughout pandemic • Priority was to protect our people, limit impact on stakeholders, support our communities • Business continuity plan enacted early • Outstanding response from our employees • Executed more projects than ever before • Safer Gambli
Slide 5: Agenda
Agenda 5 Group overview Financial review Strategic priorities and outlook Mor Weizer Andrew Smith Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer FY 2020 results
Slide 6: Financial highlights
Financial highlights 6 Good performance with strong financial discipline Resilient FY in light of COVID-19 Tax migration • Adjusted EBITDA of €310 million • Domiciled in UK effective January 2021 • Very strong Finalto performance in H1 • No impact on expected cash taxes • Core B2B and Snaitech drove
Slide 7: Group EBITDA by month
Group EBITDA by month 7 H2 performance driven by Gambling Very strong pre-COVID-19 Strong recovery 50 Lockdowns € Millions Lockdowns 0 January February March April May June July August September October November December Gambling Finalto FY 2020 results
Slide 8: B2B Gambling
B2B Gambling 8 Strong Core B2B performance outside UK Online only & excluding Sports € millions FY 2019 FY 2020 % CC% FY 2019 FY 2020 % CC% UK 203.8 149.9 -26% -25% 102.2 101.8 0% 1% Other regulated 168.6 176.7 5% 10% 79.7 126.8 59% 68% Total Regulated B2B revenue 372.4 326.6 -12% -10% 181.9 228.6 2
Slide 9: B2B Gambling costs
B2B Gambling costs 9 Underlying cost reduction with targeted investments € millions FY 2019 FY 2020 (%) R&D 80.9 76.1 -6% Operations 181.2 214.5 18% G&A 57.4 63.2 10% S&M 19.6 15.2 -22% Total B2B Gambling costs 339.1 369.0 9% • Incremental investments totalling c.€30m; LatAm, US, Live Casino & targe
Slide 10: B2C Gambling performance
B2C Gambling performance 10 Snaitech resilient despite pandemic Revenue Adjusted EBITDA € millions FY 2019 FY 2020 % CC% FY 2019 FY 2020 % Snaitech 829.7 522.2 -37% -37% 162.5 132.0 -19% HPYBET 19.7 19.1 -3% -3% -11.9 -11.3 -5% White label (incl. Sun Bingo) 51.1 55.0 8% 10% 9.9 7.1 -28% Total B2C Ga
Slide 11: Snaitech performance
Snaitech performance 11 Resilient FY driven by online strength and variable cost franchise model € millions FY 2019 FY 2020 % Retail betting 174.1 112.1 -36% Gaming machines 523.7 227.5 -57% Online 100.3 158.5 58% Other 31.6 24.1 -24% Total revenue 829.7 522.2 -37% Retail EBITDA 116.8 44.3 -62% Onli
Slide 12: Finalto results
Finalto results 12 Strong 2020 contribution USD millions FY 2019 FY 2020 % Net Revenue $76.2 $136.4 79% Adjusted EBITDA $8.9 $62.0 597% Margin 12% 45% • 2020 performance benefitted from increased market volatility and trading volumes particularly in H1 • Market conditions began to normalise towards
Slide 13: Balance sheet
Balance sheet 13 Strong balance sheet and liquidity • Long-term financing in place; prudent leverage • RCF drawn down in H1 2020 as precautionary measure • Covenants renegotiated for Dec 2020 & June 2021 tests; expected to be comfortably within limits • Playtech has 5-year (€530m) and 7-year (€350m)
Slide 14: Adjusted cash bridge
Adjusted cash bridge 14 Free cash flow positive; liquidity improved 651 50 295 89* € Millions 342 -64 89* Adjusted gross Net cash from Snaitech Acquisitions & CapEx and Share Interest, FX & Adjusted RCF drawn Adjusted cash** ex. RCF operating land sale contingent Cap Dev buy-back lease liability gro
Slide 15: Cash on balance sheet
Cash on balance sheet 15 Cash position strengthened despite pandemic December 2020 Jun-20 Dec-19 Total Total Total excl. excl. excl. € millions Gambling Snaitech* Finalto Total RCF RCF RCF RCF Gross Cash 314 331 416 1,061 (309) 752 716 610 Client funds / progressives** (88) (41) (280) (410) - (410)
Slide 16: Outlook
Outlook 16 Equipped to emerge strongly from the COVID-19 period • 2021 started well in the context of lockdowns • Lockdowns expected to remain in major markets into Q2 • Online expected to continue to perform strongly • Cautious about retail recovery • Balance sheet remains strong • Increasing inves
Slide 17: Agenda
Agenda 17 Group overview Financial review Strategic priorities and outlook Mor Weizer Andrew Smith Mor Weizer Chief Executive Officer Chief Financial Officer Chief Executive Officer FY 2020 results
Slide 18: Executing 2020 priorities
Executing 2020 priorities 18 Delivering our strategy 2020 priorities Progress 1. Increase US investment Launched with bet365 & Entain in NJ; Parx & Novomatic deals; Michigan licence; further applications underway 2. Sign new structured agreements Structured agreements in Guatemala, Costa Rica, Panam
Slide 19: US market opportunity
US market opportunity 19 Market opportunity continuing to grow $24.4bn • 23 states now offer or have approved Sports Betting • Sports Betting estimated $19 billion market by 2025 by 2025 • iGaming gaining momentum; allowed in 6 states Sports ~$19.0bn iGaming ~$5.4bn • iGaming estimated $5.4 billion
Slide 20: US momentum
US momentum 20 US strategy is building momentum Approach Current Status Market Entry • State by state approach • Licences obtained in New Jersey & Michigan • Licensing process underway in further states • Accelerating investment • Local presence • Target c.10 states by end of 2022 Technology & • IMS
Slide 21: US product & technology offering
US product & technology offering 21 Leading technology; flexible, open architecture & unique turnkey offering Industry-leading IMS platform Live Casino Playtech Open Platform / APIs Slots Turnkey Sportsbook Poker Bet engine Omni-channel offering Trading services and risk Native iOS Casino app Bespok
Slide 22: Parx Casino (the Greenwood companies)
Parx Casino (the Greenwood companies) 22 Highly strategic multi-state, multi-product deal Greenwood overview • Leading casino and racetrack operator in Pennsylvania • Pennsylvania: online sports betting & casino games • New Jersey: retail sports & online casino games • Michigan: retail sports Deal o
Slide 23: Further US progress
Further US progress 23 Accelerating our presence • Live in New Jersey with bet365 and Entain • Licence received in Michigan; imminent launch with Parx • SSBT distribution agreement signed with Novomatic • Licence applications in progress in further states • Structured agreements a focus for 2021 FY
Slide 24: Latin America
Latin America 24 Building on leading position in the market • Strategy focused on structured agreements • Typical structure includes option for equity stake in operation • Caliente continuing excellent growth; number 1 customer in 2020 • Wplay launched; successful migration to Playtech platform • Ne
Slide 25: Snaitech market leader in Italy
Snaitech market leader in Italy 25 Positioned to capture online opportunity Significant long-term opportunity in Italy #1 58% • Largest gambling market in Europe pre-pandemic Sports betting Growth in online market share in FY revenue • Low online penetration; shift accelerated by COVID-19 • Ideally
Slide 26: Asia
Asia 26 Increased operational flexibility • FY 2020 impacted by government restrictions in response to COVID-19 • Also impacted by restrictions introduced on payment processing • Smaller part of Group; remains highly cash generative • Changes to operating model and distribution network in region • A
Slide 27: Safer gambling & sustainability
Safer gambling & sustainability 27 Sustainable Success; pioneering consumer protection • Five-year sustainable & responsible business strategy • Commitment to ESG • Investing £5m into meeting shared societal challenges • Partnering on shared societal challenges • Pioneering use of AI & machine learn
Slide 28: Asset review
Asset review 28 Action being taken Finalto • Remains non-core; source of capital to the Group in FY given strong performance • Discussions ongoing in relation to possible sale HPYBET • Strategic asset in Germany ahead of regulation • Now operated by Snaitech management Casual and Social Gaming • Sal
Slide 29: Medium-term outlook
Medium-term outlook 29 Ideally positioned for future growth • Playtech to emerge strongly from COVID-19 disrupted period • Positioned to take advantage of accelerated transition to digital • Leading technology • Online expertise • Strong balance sheet • Ideally placed to capture significant US marke
Slide 30: 2021 priorities
2021 priorities 30 Delivering growth strategy 1. Top priority – significantly accelerate US presence 2. Execute on structured agreements in Latin America 3. Continue B2B diversification; sign 50 further new brands 4. Snaitech to continue online growth momentum 5. Drive Sustainable Success commitment
Slide 31: Q&A
Q&A
Slide 32: Appendix
Appendix
Slide 33: Summary by division FY 2020
Summary by division FY 2020 33 Group FY 2019 (€m)* FY 2020 (€m) Revenue Adj. EBITDA Margin Revenue Adj. EBITDA Margin B2B Gambling 553.9 214.8 39% 494.8 125.8 25% B2C Gambling 900.5 160.5 18% 596.3 127.8 21% Reported (Intercompany) (13.9) n/a n/a (12.6) n/a n/a Total Gambling 1,440.5 375.3 26% 1,078
Slide 34: Net profit and EPS
Net profit and EPS 34 Group Adjusted Excl. Acquisitions € millions FY 2019* FY 2020 % FY 2019* FY 2020 % Adjusted EBITDA 375.3 253.6 -32% 375.3 253.9 -32% - Depreciation & Amortisation -146.3 -149.1 2% -146.3 -149.0 2% - Net finance costs -52.8 -60.3 15% -52.8 -60.5 15% - Tax -39.8 -17.9 -55% -39.8
Slide 35: Contingent consideration
Contingent consideration 35 Group Contingent consideration Payment date Maximum payable earnout and redemption liability (based on maximum Acquisition (per terms of acquisition) (as at 31.12.2020) payable earnout) HPYBET Austria GmbH €15.0 million Nil Q2 2021 Eyecon Limited €25.0 million Nil Q2 2021
Slide 36: Thank you
Thank you