Allwyn Ag · ATHEX:ALWN
Allwyn — Q2 2020 Earnings Presentation
28 slides from Allwyn's earnings presentation, Sep 10, 2020
Slide 1: Q2 & H1 2020 Financial Results
Q2 & Η1 2020 Financial Results 10 September 2020
Slide 2: Disclaimer
Disclaimer • All drawings, artwork, and texts are the exclusive • Copyright refers to all graphics and texts of the property of OPAP S.A. The partial or total present publication duplication, copy or publication of the contents of this publication by any medium (mechanical, • The facts included in t
Slide 3: H1 2020 Highlights
H1 2020 Highlights Financial Performance Revenues and profitability take a hit due to the lockdown and the prolonged shops closure Encouraging recovery signs across the portfolio post shops’ re-opening OPEX containment in line with commitments Strong & resilient liquidity on the back of posi
Slide 4: Q2 & H1 2020 Financial Review
Q2 & H1 2020 Financial Review Pavel Mucha, Chief Financial Officer 4
Slide 5: Q2 2020 Overview
Q2 2020 Overview Q2 burdened by covid-19 lockdown // Encouraging post full re-opening2 performance Revenues (GGR) EBITDA -53,2% -81,7% • Revenues heavily affected by 88 • -74,7% on a l-f-l basis 384 shops’ closure excluding one-off items • Post full re-opening (June 8th – • Efficient cost control sh
Slide 6: H1 2020 Overview
H1 2020 Overview H1 affected by covid-19 impact // Swift recovery signs in the post full re-opening2 period Revenues (GGR) EBITDA -34,8% -49,1% • Affected by approximately 2 201 • -43,4% on a l-f-l basis 780 months of shops closure excluding one-off items in H1’19 • Early recovery signs on a post •
Slide 7: Key Quarterly Financials 2017-2020
Key Quarterly Financials 2017-2020 Q2 ’20 performance heavily affected by covid-19 outbreak Revenues (GGR) EBITDA Net Profit 112 112 447 109 441 61 102 410 394 57 396 93 377 360 384 369 359 330 357 87 87 87 86 49 83 328 78 43 70 40 40 40 35 36 33 33 52 26 180 17 16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 8: Revenues (GGR)
Revenues (GGR) H1-Q2 2020 GGR analysis Last 4 quarters GGR breakdown H1 Q2 VLTs 23% -53,2% 20% -34,8% 19% Q3’19 19% 384 Q4’19 780 180 Q1’20 6% 8% 11% Q2’20* 508 Instant 9% & Passives 140 71 23% 50% 45% 69 35 25% -36.8% 27% 47% 46% 192 88 90 Lottery -51.0% +69.3% Betting 22% *Referring to full re-ope
Slide 9: OPAP vs. mobility trends
OPAP vs. mobility trends Lockdown (1 April – 10 May) (40 days) -69% -97% • Enchained Online offering, Average Mobility trend in Δ% l-f-l GGR 2020 - albeit being the only revenue stream Retail & Recreation* 2019 25% Partial Reopening (11 May – 7 June) (28 days) 91 44% Days Total in • Gradually reopen
Slide 10: GGR recovering // visibility remains limited
GGR recovering // visibility remains limited Pre Covid impacted Full re August Lockdown & Lockdown opening stand alone period +2.0% -66.7% +3.1% -2.1% Pre lockdown data Lockdown period // Post VLTs re-opening, stand for Jan 1st to Heavily burdened by stores closure: March i.e. from 8th June to Feb 2
Slide 11: Subdued tourism flows affecting islands' performance
Subdued tourism flows affecting islands’ performance *Fast Games GGR in Mainland & Islands post lockdown Tourism data August GGR Δ% 2020 – 2019 Aug yoy% AIA provisional arrivals Islands -19% -60% AIA: Athens International Airport Subdued tourism flows lead to lower local spending & underperforming
Slide 12: Profitability (recurring figures)
Profitability (recurring figures) H1 – Q2 EBITDA* H1 – Q2 Net Profit** -74,7% -64,5% -43,4% 100 24,8% 80 11,1% 23,8% 21,5% 9,6% 60 86 6,0% 40 12,8% 194 20 37 31 109 91 -5 0 23 -20 Q2 2019 Q2 2020 H1 2019 H1 2020 Q2 2019 Q2 2020 H1 2019 H1 2020** EBITDA EBITDA Margin on GGR Net Profit Net Profit Marg
Slide 13: EBITDA bridge
EBITDA bridge Prompt containment actions following Decreased lockdown revenues led to lower costs Strong Stoiximan brand performance 272 9 4 5 7 12 201 66 77 89 98 96 96 103 81 EBITDA H1'19 GGR GGR contribution Agents' Commissions Revenue sharing costs OPEX Share of profit of Other Operating Other O
Slide 14: Cash Flow & Net Debt
Cash Flow & Net Debt Cash Flow Bridge Net Debt Extraordinary Sufficient dividend payment profitability despite lockdown and borrowings partial repayment Strong financial position 0,4 with Net Debt at €517m* *as of 30.06.2020 70 75 1.6x Net Debt / Ebitda 8.5x Interest Coverage based on LTM figures
Slide 15: 2020 Bloomberg Consensus
2020 Bloomberg Consensus (€ ‘m) 2019a 2020 (E) Min. 2020 Max. 2020 GGR* 1,619.9 1,292.9 1,169.0 1,564.0 EBITDA 412.6 302.1 266.0 352.0 Margin % 25.5% 23.4% Net Income 202.4 115.9 90.2 151.0 Margin % 12.5% 9.0% EPS 0.64 0.32 0.19 0.47 Growth %, YoY +40,9% -50.0% DPS (€) 0.30 0.70 0.30 1.50 * Consensu
Slide 16: Q2 & H1 Operational Overview
Q2 & Η1 Operational Overview Jan Karas, Acting CEO 16
Slide 17: OPAP stores network
OPAP stores network Estate Development Digitalization Smooth reopening & ongoing support Opap stores in Greece New/upgraded Opap New satellite Q2 2020 Stores Q2 2020 infrastructure All stores Reopening of the full estate from the 1st day of lockdown lifting Smart Digital > 1000 stores Fully resp
Slide 18: Our VLTs offering
Our VLTs offering Performance overview Product offering Customer base 18,9 25,0 25,0 25,0 10,0 440,2 480,4 487,2 * 44 41 39 38 42 288,3 298 148,5 115,8 131,3 116,6 209 74,77 27,8 58 67 22 FY '17 FY '18 FY '19 Q1 '20 Q2 '20 FY'17 FY'18 FY'19 Q1 Q2 Active Players / monthly avg. ('000) 2020 GGR (€m) GG
Slide 19: Increased gaming machines efficiency
Increased gaming machines efficiency Mature machines continue to demonstrate increased performance # of VLTs operational at the beginning of each Q GGR/VLT/day* 44,4 Q1'20 25.000 43,4 Q4'19 20.932 41,5 Q3'19 20.035 40,2 40,4 Q2'19 19.965 Q1'19 18.944 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 *20k VLTs operation
Slide 20: Our betting offering
Our betting offering Performance indicators (Q2 2020) % of SSBTs of Live betting SSBTs live as % of total PS wagers total live PS wagers 0,6 49,0% +1.9pp +4.9pp 0,5 0,4 22,3% 0,3 23,4 0,2 32,5 34,4 18,5 % 0,1 % % % 0 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 Q2'19 Q2'20 % on total wagers Q2'19
Slide 21: Sports betting calendar overview
Sports betting calendar overview Encouraging performance aided by increased number of events post reopening June July August Increased June – Aug GGR Δ% 2020 -2019 Leagues Restarted: Remaining Upcoming events: Super League La Liga fixtures of New championship Spain 2nd Division Champions seaso
Slide 22: Power Spin
Power Spin Our new product enhancement • A niche game that is: • Fresh, exciting and entertaining • Fast, with recycling winnings to achieve repeat purchase • Easy to understand without any expertise needed • Successfully launched across network in 30/6 on a 4 minute schedule continuously gaining gr
Slide 23: Online continues its upwards trend
Online continues its upwards trend Strong Q2 performance despite Covid impact Record high quarterly GGR performance and customer base Strong Tzoker during the lockdown also aided by jackpot roll-overs Enhancement of online games’ portfolio & new games’ launch Tzoker high penetration continue
Slide 24: Kaizen Gaming
Kaizen Gaming Growth within a challenging environment Casino outperformance more than replenishing sportsbook revenues decrease Strong sportsbook recovery post sports events’ restart GR/CY operations at 72% of Group’s revenues in Q2’20 OPAP’s financial benefit: Q2 2020 profit contribution at
Slide 25: Appendix
Appendix
Slide 26: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position as of 30 June 2020 & 31 December 2019 Consolidated Statement of Financial Position ('000 € ) 30.06.2020 31.12.2019 Current assets Cash and cash equivalents 628,248 633,815 Receivables 104,904 161,158 Other current assets 82,739 80,516 Total current assets
Slide 27: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income 30 June 2020 & 30 June 2019 Consolidated Statement of Comprehensive Income ('000 € ) 30.06.2020 30.06.2019 Δ Δ% Assets Amounts wagered 1,412,651 527,586 885,065 167.8% Revenue (GGR) 507,927 179,615 328,312 182.8% GGR contribution and other levies and du
Slide 28: Consolidated Cash Flow statement
Consolidated Cash Flow statement as of 30 June 2020 & 30 June 2019 Consolidated Cash flow statement ('000 € ) 30.06.2020 30.06.2019 OPERATING ACTIVITIES Assets Οperating Activities before WCC 103,041 187,388 Changes in Working Capital Inventories -6,065 -4,145 Receivables 49,361 16,100 Payables (exc