Pointsbet Holdings Ltd. · ASX:PBH
Pointsbet — Investor Presentation (July 2021)
62 slides from Pointsbet's investor presentation, Jul 29, 2021
Slide 1: Q4 FY21 & Capital Raise Investor Presentation
Q4 FY21 & CAPITAL RAISE INVESTOR PRESENTATION July 2021 Q 4 F Y 2 1 I N V E S T O R P R E S E N T A T I O N │ J U L Y 2 0 2 1 1 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This investor presentation (Presentation) has been prepared by PointsBet Holdings Limited (ACN 621 179 351) (PBH or the Company) and is dated 29 July 2021. This Presentation has been prepared in relation to a fully underwritten 1 for 9 pro-rata accelerated renounceabl
Slide 3: Important Notice and Disclaimer Cont'd
IMPORTANT NOTICE AND DISCLAIMER CONT'D In addition, persons in the United States and persons acting for the account or benefit of persons in the United States (to the extent such persons are acting for the account or benefit of a person in the United States) will not be eligible to purchase or trade
Slide 4: Important Notice and Disclaimer Cont'd
IMPORTANT NOTICE AND DISCLAIMER CONT'D Investors should be aware that certain financial measures included in this Presentation are "non-IFRS financial information" under ASIC Regulatory Guide 230 "Disclosing non-IFRS financial information" published by ASIC and also "non-GAAP financial measures" wit
Slide 5: Important Notice and Disclaimer Cont'd
IMPORTANT NOTICE AND DISCLAIMER CONT'D Effect of rounding A number of figures, amounts, percentages, estimates, calculations of value and fractions in this Presentation (including in charts, graphs or tables in the Presentation) are subject to the effect of rounding. Accordingly, the actual calculat
Slide 6: Important Notice and Disclaimer Cont'd
IMPORTANT NOTICE AND DISCLAIMER CONT'D In connection with the Offer, one or more investors may elect to acquire an economic interest in the New Shares (Economic Interest), instead of subscribing for or acquiring the legal or beneficial interest in those securities. The Joint Lead Managers (or their
Slide 7: Agenda
AGENDA EXECUTIVE SUMMARY Key Highlights Operational Performance Business Update Capital Raise
Slide 8: Executive Summary
EXECUTIVE SUMMARY CLICK TO EDIT MASTER TITLE STYLE Strong strategic and operating momentum in Q4 FY21 and FY21 overall in both our Australian and 1 US businesses Successfully completed two strategic acquisitions during Q4 FY21, which accelerates the 2 development of our unique, in-house technology p
Slide 9: Our Addressable Market Is Large and Growing
OUR ADDRESSABLE MARKET IS LARGE AND GROWING PointsBet is targeting to be operational in 18 US states and Ontario by the end of CY22 “Live” US States Targeted Launches by December 2022(1) New Jersey Michigan Near-term existing access… and Ontario, Canada. Pennsylvania Arizona Tennessee Illinois Color
Slide 10: PointsBet's Market Access
POINTSBET’S MARKET ACCESS POINTSBET’S CURRENT NORTH AMERICAN MARKET ACCESS(1) Ontario, Canada(4) Live operations Maine Washington Market access partner secured or expected to be North Dakota New Vermont New untethered Montana Minnesota York Hampshire Massachusetts New Oregon PointsBet participating
Slide 11: PointsBet Has Put the Pieces in Place to Be a Market Leader
POINTSBET HAS CLICK TO EDIT PUT THE MASTER PIECES TITLE IN PLACE TO BE A MARKET LEADER STYLE Profitable Australian business and built Premium strategic Leading brand ambassadors strong US market share partnerships Established and expanding Marquee media partnership North American In-house market-lea
Slide 12: Our Strategy in North America Is Clear
OUR CLICKEXECUTION STRATEGY TO EDIT MASTER INSTYLE TITLE NORTH AMERICA IS CLEAR PointsBet will continue to invest to become a top 5 player, targeting 10% sports betting market share in all key North American jurisdictions(1) ▪ Continue to invest in our scalable, in-house proprietary technology platf
Slide 13: Global Market Leading Management Team
GLOBAL MARKET LEADING MANAGEMENT TEAM Sam Swanell Manjit Singh Johnny Aitken Andrew Mellor Andrew Hensher Group CEO & Managing Director Executive Director, President, CEO PointsBet USA Group CFO Group General Counsel (Co-Founder) Product and Technology Prev. tomwaterhouse.com Prev. William Hill Aust
Slide 14: Agenda
AGENDA Executive Summary KEY HIGHLIGHTS Operational Performance Business Update Capital Raise
Slide 15: Key Quarterly Highlights
KEY QUARTERLY HIGHLIGHTS Operational Update Highlights ✓ Q4 Group Net Win of A$60.8m up 81% on PCP ✓ Completed the acquisition of Banach Technologies, accelerating PointsBet’s technology roadmap and places the Company in a prime position to take advantage of rapid growth in ✓ Q4 Net Win in Australia
Slide 16: Key Q4 FY21 Trading Metrics
KEY Q4 FY21 TRADING METRICS GROUP AUSTRALIA US(1) All figures in A$m Q4 FY20 Q4 FY21 PCP Q4 FY20 Q4 FY21 PCP Q4 FY20 Q4 FY21 PCP TURNOVER / HANDLE $349.4m $986.1m + 182% $302.9m $494.8m + 63% $46.5m $491.3m + 956% GROSS WIN % 12.4% 10.0% (2.4pp) 13.7% 13.4% (0.3pp) 3.5% 6.6% + 3.0pp SPORTS BETTING G
Slide 17: Key FY21 Trading Metrics (12 Months to June 2021)
KEY FY21 TRADING METRICS (12 MONTHS TO 30 JUNE 2021) GROUP AUSTRALIA US(1) All figures in A$m FY20 FY21 PCP FY20 FY21 PCP FY20 FY21 PCP TURNOVER / HANDLE $1,151.6m $3,781.4m + 228% $830.5m $1,989.0m + 140% $321.1m $1,792.4m + 458% GROSS WIN % 10.2% 9.3% (0.9pp) 12.1% 12.9% + 0.8pp 5.1% 5.3% + 0.2pp
Slide 18: Active Clients
ACTIVE CLIENTS(1) Clients who have placed a cash bet in the last twelve months Cash Active Clients Australia Cash Active Clients US +117% on PCP 196,585 +661% on PCP 159,321 158,041 142,992 127,470 124,715 90,422 81,014 83,330 68,094 68,464 72,011 56,788 39,816 21,141 22,716 20,939 11,544 15,380 8,2
Slide 19: Delivered on Our Objectives
DELIVERED ON OUR OBJECTIVES Aug 20 P Market leading media deal with NBCUniversal Sep 20 P Launch of Illinois operations Nov 20 P Launch of Colorado operations Jan 21 P Launch of sports betting in Michigan Feb 21 P Faultless stability of technology across Super Bowl Mar 21 P Acceleration of technolog
Slide 20: Agenda
AGENDA Executive Summary Key Highlights OPERATIONAL PERFORMANCE Business Update Capital Raise
Slide 21: Australia – Continued Momentum in Q4
AUSTRALIA – CONTINUED CLICK TO EDIT MOMENTUM MASTER TITLE STYLE IN Q4 POINTSBET AUSTRALIA – SPORTS BETTING TURNOVER / HANDLE (AUD) POINTSBET AUSTRALIA – PCP PERFORMANCE (AUD) Key metrics Q4 FY20 Q4 FY21 Change FY21 $1,989.0m Turnover / Handle $302.9m $494.8m + 63% $1,989.0m +63% Gross Win Margin 13.
Slide 22: PointsBet US – Delivering Growth
POINTSBET US MASTER CLICK TO EDIT – DELIVERING TITLEGROWTH STYLE POINTSBET US – SPORTS BETTING TURNOVER / HANDLE (AUD) POINTSBET US – PCP PERFORMANCE (AUD) $1,792.4m Key metrics Q4 FY20 Q4 FY21 Change FY21 Sports Betting Turnover / Handle $46.5m $491.3m + 956% $1,792.4m +956% Sports Betting Gross Wi
Slide 23: Trading Metrics by US State
TRADING CLICK TO METRICS BY USTITLE EDIT MASTER STATE STYLE PointsBet US – State-by-State Q4 FY21 Performance (A$m)(1) FY21 Total US Total US Versus New Jersey Illinois(2) Michigan(3) Indiana Colorado(4) Iowa(5) Total Key metrics Q4 FY21 Q4 FY20 PCP Q4 FY21 Q4 FY21 Q4 FY21 Q4 FY21 Q4 FY21 Q4 FY21 FY
Slide 24: US Market Share
US MARKET SHARE POINTSBET’S GOAL IS TO ACHIEVE AT LEAST A 10% MARKET SHARE IN EVERY US MARKET THAT IT ENTERS(1) SPORTS BETTING ONLINE HANDLE MARKET SHARE ACHIEVED(2) Market Share Adult Pop.(3) Period Market Share Adult Pop.(3) Period Illinois 7.8% 9.9m April – May 2021(4) Indiana 5.5% 5.2m Q4 FY21 M
Slide 25: Quarterly Net Win Breakdown
QUARTERLY NET CLICK TO EDIT WIN BREAKDOWN MASTER TITLE STYLE FY20 FY21 Growth A$m Q1 Q2 Q3 Q1-Q3 Q4 FY Q1 Q2 Q3 Q1-Q3 Q4 FY Q4 FY Australia Net Win (Sports Betting) 12.6 14.6 15.5 42.7 32.4 75.1 35.1 49.8 38.2 123.0 43.1 166.1 + 33% + 121% US Net Win (Sports Betting)(1) (0.8) 3.4 3.3 5.9 1.2 7.0 3.1
Slide 26: Unaudited FY21 Revenue, Marketing and Statutory EBITDA
UNAUDITED FY21 CLICK TO EDIT REVENUE, MASTER MARKETING TITLE STYLE AND STATUTORY EBITDA FY20(1) FY21(1) Change (%) Australian Net Win A$75.1m A$166.1m + 121% ▪ Australian Trading Business EBITDA positive for FY21 US Net Win A$7.0m A$42.3m + 502% ▪ Increase in Australian marketing expense reflecting
Slide 27: Summary of Quarterly and FY21 Cash Flows
SUMMARY OF QUARTERLY AND FY21 CASH FLOWS All amounts in A$m(1) Q4 FY21 FY21 Receipts from customers 62.5 210.2 Cost of sales (26.9) (100.0) Sales and marketing (49.3) (166.2) Staff costs (12.7) (38.2) Administration, corporate costs and GST paid on Net Win (16.2) (44.2) Change in player cash account
Slide 28: Agenda
AGENDA Executive Summary Key Highlights Operational Performance BUSINESS UPDATE ─ iGaming ─ Canada ─ Brand ─ Awards ─ Product Capital Raise
Slide 29: Upside from New iGaming Vertical
iGaming Canada Brand UPSIDE FROM NEW iGAMING VERTICAL Awards Product 2021 iGAMING IN NJ, PA AND MI(1) POINTSBET’S LEADING iGAMING TEAM MONTHLY GROSS REVENUE (US$M) 306 Manjit Singh 304 295 Executive Director, President, 285 Product and Technology New Jersey Prev. CTO and EVP, Aristocrat 251 Pennsylv
Slide 30: Launch of iGaming in Michigan and New Jersey
iGaming Canada Brand LAUNCH OF iGAMING IN MICHIGAN AND NEW JERSEY Awards Product SUCCESSFUL LAUNCH OF POINTSBET’S INAUGURAL iGAMING PRODUCT IN MICHIGAN AND SUBSEQUENT LAUNCH IN NEW JERSEY Launched our inaugural iGaming product in Michigan on 5 May Quickly followed by launching in New Jersey on 23 Ju
Slide 31: Significant Canadian Opportunity
iGaming Canada Brand SIGNIFICANT CANADIAN OPPORTUNITY Awards Product Ontario expected to launch sports betting by January 2022 C$14bn (1) Annual illegal sports betting spend in Canada 5th largest North American jurisdiction(2) YUKON NUNAVUT Ontario expected to be first to NORTHWEST launch US$3bn(3)
Slide 32: Canada: Bespoke Approach to a Unique Market
iGaming Canada Brand CANADA: BESPOKE APPROACH TO A UNIQUE MARKET Awards Product POINTSBET’S CANADIAN LEADERSHIP TEAM Canadian sports bettors want an authentic Canadian experience, produced and operated by Canadians Scott Vanderwel CEO Canada Prev. SVP Digital Operations at Boots on the ground operat
Slide 33: NBC Sports Integrations Across Television and Digital Assets
iGaming Canada NBC SPORTS INTEGRATIONS ACROSS TELEVISION AND DIGITAL ASSETS Brand Awards Product Q4 FY21 & CAPITAL RAISE INVESTOR PRESENTATION │ JULY 2021 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 34: Drew Brees – New Global Brand Ambassador
iGaming Canada DREW BREES – NEW GLOBAL BRAND AMBASSADOR Brand Awards Product ▪ NFL all-time great and future Hall of Famer Drew Brees joins the PBH team as a global brand ambassador ▪ Brees will be transitioning to a broadcasting career with NBC Sports, our official sports betting partner, deepening
Slide 35: Award Winning Sports Betting Operator
iGaming Canada Brand AWARD WINNING SPORTS BETTING OPERATOR Awards Product ✓ Sports Betting Operator of the Year – 2nd Consecutive Year Judging Panel Commentary: • "Good differential and growth” • “Really strong entry from one of the most impressive operators within the US” • "Very impressive words a
Slide 36: Product Will Ultimately Win
iGaming Canada PRODUCT WILL ULTIMATELY WIN Brand Awards Product KEY AREAS OF SPORTSBOOK PRODUCT ACCELERATION 1 PRE-GAME AND IN-PLAY SINGLE GAME PARLAY 7 PERSONALISATION 2 PRE-GAME AND IN-PLAY PLAYER PROPS 8 PROMOTIONAL ENGINE 3 IN-PLAY MICRO MARKETS 9 BET RECOMMENDATION ENGINE 4 REAL-MONEY ACQUISITI
Slide 37: Agenda
AGENDA Executive Summary Key Highlights Operational Performance Business update CAPITAL RAISE
Slide 38: Capital Raising and Co-Founders Sell-Down Overview
ibdroot\projects\IBD-HK\rainless2021A\678139_1\ECM\Investor Presentation\2021.07.23 Project Niagara 4C Investor Presentation_vECM.pptx CAPITAL CLICK TO RAISING AND CO-FOUNDERS EDIT MASTER TITLE STYLE SELL-DOWN OVERVIEW Placement and Entitlement Offer (together, the “Capital Raising”) to raise approx
Slide 39: Placement Overview
ibdroot\projects\IBD-HK\rainless2021A\678139_1\ECM\Investor Presentation\2021.07.23 Project Niagara 4C Investor Presentation_vECM.pptx PLACEMENT OVERVIEW CLICK TO EDIT MASTER TITLE STYLE Placement to raise approximately A$215.1 million ▪ Underwritten Placement to raise gross proceeds of approximatel
Slide 40: Entitlement Offer Overview
ibdroot\projects\IBD-HK\rainless2021A\678139_1\ECM\Investor Presentation\2021.07.23 Project Niagara 4C Investor Presentation_vECM.pptx ENTITLEMENT CLICK TO EDIT OFFER MASTEROVERVIEW TITLE STYLE Accelerated, pro rata renounceable entitlement offer with retail rights trading to raise approximately A$1
Slide 41: Sources and Uses
ibdroot\projects\IBD-HK\rainless2021A\678139_1\ECM\Investor Presentation\2021.07.23 Project Niagara 4C Investor Presentation_vECM.pptx SOURCES AND USES CLICK TO EDIT MASTER TITLE STYLE ▪ Sources and uses breakdown excludes potential additional sources of funding that may arise from the exercise of r
Slide 42: Capital Raising Timetable
ibdroot\projects\IBD-HK\rainless2021A\678139_1\ECM\Investor Presentation\2021.07.23 Project Niagara 4C Investor Presentation_vECM.pptx CAPITAL CLICK TO RAISING TIMETABLE EDIT MASTER TITLE STYLE Event Date Trading halt and announcement of Placement and Entitlement Offer Thursday, 29 July 2021 Placeme
Slide 43: Appendix
APPENDIX ─ Risk Factors ─ Underwriting arrangements ─ International offer restrictions
Slide 44: Key Risks
KEY RISKS CLICK – 1.1MASTER TO EDIT INTRODUCTION TITLE STYLE There are specific risks which relate directly to PointsBet’s business. In addition, there are other general risks, many of which are largely beyond the control of the Company and the Directors. The risks identified in this Section, or oth
Slide 45: Key Risks – Company Specific Risks
KEY RISKS CLICK – 1.2MASTER TO EDIT COMPANY SPECIFIC TITLE STYLE RISKS The recent outbreak of the novel coronavirus (COVID-19), a virus causing potentially deadly respiratory tract infections, presents an emerging risk for the Company. Efforts to date to contain the effect of COVID-19 have included
Slide 46: Key Risks – Company Specific Risks Cont'd
KEY RISKS CLICK – 1.2MASTER TO EDIT COMPANY SPECIFIC TITLE STYLE RISKS cont’d The provision of wagering services is subject to extensive laws, regulations and, where relevant, licence conditions (Regulations) in most jurisdictions. The Regulations vary from jurisdiction to jurisdiction but typically
Slide 47: Key Risks – Company Specific Risks Cont'd
KEY RISKS CLICK – 1.2MASTER TO EDIT COMPANY SPECIFIC TITLE STYLE RISKS cont’d The Company’s growth strategy includes expansion overseas, and in particular into the developing wagering industry in the United States. The striking down by the United States Supreme Court of the Professional and Amateur
Slide 48: Key Risks – Company Specific Risks Cont'd
KEY RISKS CLICK – 1.2MASTER TO EDIT COMPANY SPECIFIC TITLE STYLE RISKS cont’d The integrity, reliability and operational performance of the Company’s IT systems and third-party communication networks are critical to its operations. These IT systems and communication networks may be damaged or interr
Slide 49: Key Risks – Company Specific Risks Cont'd
KEY RISKS CLICK – 1.2MASTER TO EDIT COMPANY SPECIFIC TITLE STYLE RISKS cont’d The wagering industry is exposed to schemes to launder money illegally and there is a risk that the Company’s products may be used for (k) Anti-money those purposes by its clients or employees. laundering In addition, the
Slide 50: Key Risks – Company Specific Risks Cont'd
KEY RISKS CLICK – 1.2MASTER TO EDIT COMPANY SPECIFIC TITLE STYLE RISKS cont’d As the Company grows and continues to develop its products and services, it may undertake major IT projects or upgrades. These upgrades may include, for example, development of an online casino platform build-out, the auto
Slide 51: Key Risks – General Risks
KEY RISKS CLICK – 1.3MASTER TO EDIT GENERAL RISKS TITLE STYLE General economic conditions, movements in interest and inflation rates and currency exchange rates may have an adverse effect on the (a) Economic Company's business and production activities, as well as on its ability to fund those activi
Slide 52: Key Risks – General Risks Cont'd
KEY RISKS CLICK – 1.3MASTER TO EDIT GENERAL RISKS TITLE cont’d STYLE There is a risk that the Company may in future be the subject of or required to commence litigation. Legal proceedings brought by third parties (c) Litigation including but not limited to clients, business partners or employees cou
Slide 53: Key Risks – General Risks Cont'd
KEY RISKS CLICK – 1.3MASTER TO EDIT GENERAL RISKS TITLE cont’d STYLE Prices of the Retail Entitlements may rise and fall over the Entitlement trading period. If you do not sell or take up your Entitlement, there is no guarantee that any value will be received for your Entitlement when it is sold on
Slide 54: Key Risks – General Risks Cont'd
KEY RISKS CLICK – 1.3MASTER TO EDIT GENERAL RISKS TITLE cont’d STYLE PointsBet does not currently have any material debt. If PointsBet borrows money in the future, it will be exposed to increases in interest rates (k) Interest rates which would increase the cost of servicing PointsBet’s debts. The a
Slide 55: Underwriting Agreement Summary
UNDERWRITING AGREEMENT CLICK TO EDIT MASTER TITLESUMMARY STYLE The Company and the Joint Lead Managers have entered into an underwriting agreement in respect of the Offer (Underwriting Agreement). The Underwriting Agreement contains conditions precedent, representations and warranties and indemnitie
Slide 56: Underwriting Agreement Summary Cont'd
UNDERWRITING AGREEMENT CLICK TO EDIT MASTER TITLESUMMARY STYLE cont’d • (timetable) any event specified in the timetable for the Offer (i) up to and including the commencement of normal trading is delayed more than one business day or (ii) for the period following the settlement date of the Institut
Slide 57: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS CLICK TO EDIT MASTER TITLE STYLE This document does not constitute an offer of entitlements ("Entitlements") or new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to
Slide 58: International Offer Restrictions Cont'd
INTERNATIONAL OFFER RESTRICTIONS CLICK TO EDIT MASTER TITLE STYLE cont’d Canada (British Columbia, Ontario and Quebec provinces only) cont’d The following is a summary of the statutory rights of rescission or to damages, or both, available to purchasers in Ontario. In Ontario, every purchaser of the
Slide 59: International Offer Restrictions Cont'd
INTERNATIONAL OFFER RESTRICTIONS CLICK TO EDIT MASTER TITLE STYLE cont’d European Union (France and Ireland) This document has not been, and will not be, registered with or approved by any securities regulator in France or Ireland. Accordingly, this document may not be made available, nor may the En
Slide 60: International Offer Restrictions Cont'd
INTERNATIONAL OFFER RESTRICTIONS CLICK TO EDIT MASTER TITLE STYLE cont’d New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the "FMC Act"). The Entitlements and the New Shares in the entitlem
Slide 61: International Offer Restrictions Cont'd
INTERNATIONAL OFFER RESTRICTIONS CLICK TO EDIT MASTER TITLE STYLE cont’d Norway This document has not been approved by, or registered with, any Norwegian securities regulator under the Norwegian Securities Trading Act of 29 June 2007. Accordingly, this document shall not be deemed to constitute an o
Slide 62: International Offer Restrictions Cont'd
INTERNATIONAL OFFER RESTRICTIONS CLICK TO EDIT MASTER TITLE STYLE cont’d United Arab Emirates Neither this document nor the Entitlements or the New Shares have been approved or passed on in any way by the Emirates Securities and Commodities Authority ("ESCA") or any other governmental authority in t
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