Fdj United · EURONEXT:FDJU
Fdj United — FY2024 Earnings Presentation
45 slides from Fdj United's earnings presentation, Mar 6, 2025
Slide 1: 2024 Results Presentation
2024 RESULTS PRESENTATION 6 MARCH 2025
Slide 2: Forward-looking statements disclaimer
This document may contain certain forward-looking statements which are based on estimations and forecasts. By their nature, these forward- looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict, in particular those described in FDJ UN
Slide 3: Today's Speakers
TODAY’S SPEAKERS Stéphane Pallez Pascal Chaffard CFO and Chairwoman & CEO Strategy & Performance Leader Chairman of Kindred’s Board 3
Slide 4: 2024 Key Highlights Group
1 2024 KEY HIGHLIGHTS GROUP
Slide 5: 2024 Key Highlights: Kindred takeover and European Commission
2024 KEY HIGHLIGHTS KINDRED: SUCCESSFUL TAKEOVER BID – A STRATEGIC MOVE ◆ A lottery, betting and gaming leader in Europe with a balanced and diversified profile • 98.60% stake at end-2024 – Squeeze-out achieved in January 2025 ◆ 2024 delivered according to expectations ◆ Integration on track EUROPEA
Slide 6: Official sponsor of the 2024 Paris Olympic and Paralympic Games
2024 KEY HIGHLIGHTS OFFICIAL SPONSOR OF THE 2024 PARIS OLYMPIC AND PARALYMPIC GAMES 32 athletes selected 25 medals: 7 Gold; 4 Silver; 14 Bronze 6
Slide 7: Very strong financial performance - ahead of expectations
2024 KEY HIGHLIGHTS VERY STRONG FINANCIAL PERFORMANCE - AHEAD OF EXPECTATIONS 2024 yoy 2024 reported* % change pro forma** Revenue €3,065m +17% €3,788m Recurring EBITDA €792m +21% €964m Margin 25.8% 25.5% Net profit €399m -6% €351m Adjusted net profit €490m +13% €537m Dividend per share: €2.05 *** +
Slide 8: Solid financial structure
2024 KEY HIGHLIGHTS SOLID FINANCIAL STRUCTURE Recurring EBITDA to Pro forma net financial Net financial debt cash conversion debt / recurring EBITDA 85% €1,818m 1.9x Long-term credit rating by Baa1 Stable outlook 8
Slide 9: ESG: Sustained commitment
2024 KEY HIGHLIGHTS ESG: SUSTAINED COMMITMENT ◆ Continued support for players to prevent excessive and underage gambling • Share of Group advertising budget dedicated to responsible gaming >10% • Number of proactive Group phone calls to online players deemed at risk ~20,000 ◆ Efficient measures lead
Slide 10: In France: a performance benefiting all stakeholders
2024 KEY HIGHLIGHTS IN FRANCE: A PERFORMANCE BENEFITING ALL STAKEHOLDERS €994m to retailers €7bn €4.7bn 57,200 €566m Contribution to Contribution to Jobs created or to French suppliers national wealth public finances maintained o/w 21,600 in the retail 0.25% of French GDP o/w €4.5bn gaming levies ne
Slide 11: ESG: Best-in-class ratings maintained
2024 KEY HIGHLIGHTS ESG: BEST-IN-CLASS RATINGS MAINTAINED These 2024 ratings are based on 2023 reported extra-financial Group metrics including FDJ SA and its subsidiaries, except for PLI and ZEturf 11
Slide 12: A New Group
2 A NEW GROUP
Slide 13: Kindred: Integration on track
KINDRED: INTEGRATION ON TRACK ◆ Integration monitored by several program committees / 15 streams ◆ Operations in non-locally regulated markets (.com) stopped in Q4 2024 ◆ Platforms assessment achieved and rollout roadmap confirmed ◆ New synergies and cost optimisation identified beyond merging Frenc
Slide 14: A lottery, betting & gaming leader in Europe
A LOTTERY, BETTING & GAMING LEADER IN EUROPE FDJ UNITED ACTIVE IN 13 EUROPEAN LOCALLY-REGULATED MARKETS AT END-2024 FDJ UNITED present at end-2024 Finland with a clear path to regulation FY 2024 PRO FORMA • Revenue €3,788bn • Recurring EBITDA €964m • 25.5% margin FDJ UNITED is also present in Austra
Slide 15: A diversified and balanced profile
A LOTTERY, BETTING & GAMING LEADER IN EUROPE A DIVERSIFIED AND BALANCED PROFILE (IN % OF 2024 PRO FORMA REVENUE) International 26% Open to competition 34% Online 35% ~34,000 retailers o/w > 29,000 in France > 33m players France Exclusive rights Offline o/w 9m online 74% 66% 65% 15
Slide 16: A new operating model
A LOTTERY, BETTING & GAMING LEADER IN EUROPE A NEW OPERATING MODEL Stéphane Pallez Charles Lantieri Chairwoman & CEO Deputy CEO Pascal Chaffard CFO and Strategy and Performance Leader; Chairman of the Board of Kindred French lottery & Online betting & International Payment & retail sports gaming lot
Slide 17: A new corporate identity
A LOTTERY, BETTING & GAMING LEADER IN EUROPE A NEW COPORATE IDENTITY PLAYFUL. PLAY FAIR. PLAY FORWARD. 17
Slide 18: 2024 Key Highlights by Business Unit
3 2024 KEY HIGHLIGHTS BY BUSINESS UNIT
Slide 19: French Lottery & Retail Sports Betting
FRENCH LOTTERY & RETAIL SPORTS BETTING PRO FORMA REVENUE OF €2,503m Instant games Draw games Digital lottery Retail sports Retail lottery betting and sports betting Revenue €292m +20% Revenue €2,213m 14% of lottery +3% revenue 5.6m online players EuroDreams c.40% online penetration 19
Slide 20: Online Betting & Gaming
ONLINE BETTING & GAMING PRO FORMA REVENUE OF €1,030m REVENUE WELL BALANCED BETWEEN MARKETS AND BUSINESS LINES Revenue by business line Revenue by market (B2C) (B2C & B2B) Other B2B Denmark Poker / Bingo UK Romania Belgium Casino France Sports & Sweden horse racing betting Netherlands ◆ France: marke
Slide 21: Other Activities
OTHER ACTIVITIES INTERNATIONAL LOTTERY PAYMENT & SERVICES BU structuring Nirio Premio launch Free-flow toll motorways Game portfolio animation Mediakiosk & JC Decaux tender won by Product visibility optimisation at POS cash register solutions for 300 Parisian kiosks / newsstands Website & mobile app
Slide 22: 2024 Financial Results
4 2024 FINANCIAL RESULTS
Slide 23: New BUs and new P&L
NEW BUs AND NEW P&L NEW OPERATING MODEL WITH 4 BUs NEW P&L French Lottery & retail Sports betting 66%* Online Betting & Gaming 27%* International lottery 5%* Payment & Services 2%* * As % of 2024 pro forma revenue 23
Slide 24: Reported key 2024 figures
REPORTED KEY 2024 FIGURES VERY STRONG FINANCIAL PERFORMANCE - AHEAD OF EXPECTATIONS Recurring Free Adjusted Revenue EBITDA* cash-flow** Net profit net profit €3,065m €792m €675m €399m €490m +17% +21% +15% -6% +13% Margin 25.8% Recurring EBITDA to free cash-flow conversion 85% Net financial debt €1,8
Slide 25: 25.8% recurring EBITDA margin
REPORTED KEY 2024 FIGURES 25.8% RECURRING EBITDA MARGIN (in €m) 3,065 -1,367 -223 -117 -443 792 -124 Margin 25.8% Revenue Cost of sales Marketing IT services Personnel G&A Recurring EBITDA vs. 2023 +16.9% +10.8% +36.5% +7.6% +19.9% +37.0% +20.6% 25
Slide 26: €490m adjusted net profit
REPORTED KEY 2024 FIGURES €490M ADJUSTED NET PROFIT (in €m) 792 -224 5 3 -39 490 399 -138 Recurring D&A Non-reccuring Financial Non-controlling Taxes Net profit Adjusted EBITDA items result interests net profit 26
Slide 27: Pro forma key 2024 figures
PRO FORMA KEY 2024 FIGURES VERY STRONG FINANCIAL PERFORMANCE Recurring Free Adjusted Revenue EBITDA* cash-flow** Net profit net profit €3,788m €964m €847m €351m €537m Margin 25.5% Recurring EBITDA to free cash-flow conversion 88% Net financial debt €1,818m * Recurring EBITDA: recurring operating pro
Slide 28: Pro forma Group: 25.5% recurring EBITDA margin
PRO FORMA GROUP 25.5% RECURRING EBITDA MARGIN (in €m) 3,788 -1,548 -373 -147 -583 964 -173 Margin 25.5% Revenue Cost of sales Marketing IT services Personnel G&A Recurring EBITDA 28
Slide 29: Pro forma French Lottery & Retail Sports Betting
PRO FORMA FRENCH LOTTERY & RETAIL SPORTS BETTING 35.4% RECURRING EBITDA MARGIN (in €m) 2,503 -1,187 -125 -56 887 -213 -35 Margin 35.4% Revenue Cost of sales Marketing IT services Personnel G&A Recurring EBITDA 29
Slide 30: Pro forma Online Betting & Gaming
PRO FORMA ONLINE BETTING & GAMING 28.5% RECURRING EBITDA MARGIN (in €m) 1,030 -257 -212 -23 -186 293 -58 Margin 28.5% Revenue Cost of sales Marketing IT services Personnel G&A Recurring EBITDA 30
Slide 31: From recurring EBITDA to free cash-flow
FROM RECURRING EBITDA TO FREE CASH-FLOW 85% CONVERSION RATE (in €m) 33 -150 792 675 792 Recurring Net change CAPEX ** Free EBITDA in working cash-flow capital * *Adjusted for calendar impact on working capital and unclaimed prizes ** Intangible and tangible assets 31
Slide 32: Net financial debt of €1,818m
NET FINANCIAL DEBT OF €1,818m 1.9x LEVERAGE (in €m) 684 87 58 Cash & cash Euromillions & Financial equivalents EuroDreams assets End-2024 funds Net financial debt/ 1,818 recurring EBITDA 2,474 Available cash: 598 1.9x Net financial debt Financial liabilities 32
Slide 33: Gross financial debt schedule
GROSS FINANCIAL DEBT SCHEDULE A WELL-STAGGERED MATURITY PROFILE Debt by nature 600 (in €m) 33% 527 519 519 500 €2.3bn 67% 400 Bank debt Senior unsecured bonds 300 Debt by interest type (post hedging) 200 18% 107 107 107 107 107 100 27 19 19 19 19 19 19 5 €2.3bn 0 82% 2025 2026 2027 2028 2029 2030 20
Slide 34: 2025 Outlook
5 2025 OUTLOOK
Slide 35: French Lottery & Retail Sports Betting 2025 Outlook
FRENCH LOTTERY & RETAIL SPORTS BETTING 2025 OUTLOOK Identification Instant games Draw games Commitment Retail sports & betting Omnichannel 1 POS animation New game to be 8th Mission per month launched in H2 Patrimoine Keno relaunch 3rd Mission Nature 35
Slide 36: Online Betting & Gaming 2025 Outlook
ONLINE BETTING & GAMING 2025 OUTLOOK ◆ Numerous sporting events ◆ 32Red • Launch in new markets • Migration to Kindred platform in the UK ◆ Sportsbook (KSP) roll out in several markets ◆ France: continued implementation of the new organisation ◆ Finland: preparation for the regulation anticipated in
Slide 37: Other Activities 2025 Outlook
OTHER ACTIVITIES 2025 OUTLOOK INTERNATIONAL LOTTERY PAYMENT & SERVICES New features Launch of the first games derived from the French offering 37
Slide 38: 2025 Guidance
2025 GUIDANCE Revenue ~ €3.8bn stable vs. pro forma 2024 Recurring EBITDA margin > 24% vs. pro forma 25.5% in 2024 Mitigation measures, from FY 2025 onwards, to reach at least cumulated €100m by FY 2027, to gradually offset impacts from increased taxes (FR & NL) and tightened regulation implementati
Slide 39: Mid-term financial guidance maintained
MID-TERM FINANCIAL GUIDANCE MAINTAINED Recurring EBITDA to CAPEX / revenue Net financial debt / cash conversion rate recurring EBITDA > 80% 4%−5% < 2x Net financial debt decrease end-2025 vs. end-2024: > €150m => leverage decline (vs. 1.9x end-2024) YEARLY DIVIDEND INCREASE • Reflecting Group financ
Slide 40: Group ambition: assert our leadership in Europe
GROUP AMBITION ASSERT OUR LEADERSHIP IN EUROPE AS A UNIQUE SUSTAINABLE LOTTERY, GAMING AND BETTING OPERATOR A CAPITAL MARKET DAY WILL BE HELD 24 JUNE AFTERNOON 40
Slide 41: Q&A
6 Q&A
Slide 42: Appendix
FD) UNITED® APPENDIX
Slide 43: Pro forma key figures 2024: €537m adjusted net profit
PRO FORMA KEY FIGURES 2024 €537m ADJUSTED NET PROFIT (in €m) 964 -369 537 3 -92 -33 351 -123 Recurring D&A Non-reccuring Financial Non-controlling Taxes Net profit Adjusted EBITDA items result interests net profit 43
Slide 44: French fiscal regime
FRENCH FISCAL REGIME GGR = Gross gaming revenue (stakes less player winnings) 44
Slide 45: Investor Relations contact
Investor Relations contact: invest@lfdj.com