Catena Media Plc · OMXSTO:CTM
Catena Media — Investor Presentation (April 2020)
16 slides from Catena Media's investor presentation, Apr 17, 2020
Slide 1: Investor presentation
Investor presentation 17 April 2020
Slide 2: Covid-19 impact on the iGaming industry
Covid-19 impact on the iGaming industry SUMMARY OF THE RECENT HAPPENINGS • Due to the outbreak of Covid-19 in the beginning of 2020, almost all major sports events have been put on hold and a significant part of the betting activity has been paused • iGaming operators with an offering primarily focu
Slide 3: Catena Media generates ~70% of its EBITDA from Casino
Catena Media generates ~70% of its EBITDA from Casino Casino related CASINO RELATED REVENUES revenues • Catena Media generated ~60% of its revenues and ~70% of its EBITDA from the Casino segment in Jan – Feb 2020 • Following the outbreak of Covid-19, Catena Media has seen a significant increase in 3
Slide 4: Ongoing initiatives in response to Covid-19
Ongoing initiatives in response to Covid-19 ORGANISATIONAL MEASURES TAKEN • Catena Media closely monitors the spread of COVID-19 and follows the authorities’ recommendations in order to ensure the safety and well-being of employees and partners • Several measures have been taken to mitigate operatio
Slide 5: Catena Media's shift in strategy
Catena Media’s shift in strategy • From the second half of 2018, Catena Media has altered course and commenced the process of shifting strategy from acquisition- intensive growth to organic growth • The shift in focus has resulted in a clear decreasing trend in investments in intangible assets from
Slide 6: Overview of current strategic direction
Overview of current strategic direction ACTION POINTS TO IMPROVE THE LEGACY BUSINESS OTHER ACTIONS SPORTS EUROPE CASINO EUROPE ASK GAMBLERS • Focus on fewer products • Focus efforts on high- • Intensified geographical expansion by launching three new languages performance core brands during 2020 • D
Slide 7: Near term initiatives
Near term initiatives • Continued focus on cost control activities, where We will continue to execute on costs are reduced to improve margins in our legacy business and reinvested into new growth markets our strategy to focus on few • Continued investments in the North American market brands, invest
Slide 8: The current debt situation
The current debt situation • The previous M&A driven strategy has partly been financed with debt and the company currently has a senior unsecured bond of EUR 150 outstanding due in March 2021, resulting in a current senior net debt position of EUR 143m as per Q1 2020 • In an effort to reduce the sen
Slide 9: Introduction to the proposed transactions
Introduction to the proposed transactions Comments Sources and Uses for the contemplated transaction1 Sources EURm eqv. Uses EURm eqv. • In order to create a more sustainable capital structure and to provide Catena Media with operational head room, the following is announced: Rights Issue of Units ~
Slide 10: A) Transaction overview of the rights issue
A) Transaction overview of the rights issue Comments • Catena Media intends to raise approx. EUR 63 million by way of offering units consisting of perpetual capital securities (the “Hybrids”) and warrants (the “Warrants”) • The units will be offered with preferential right for existing shareholders
Slide 11: A) How will the right issue be structured?
A) How will the right issue be structured? Comments Unit subscription overview • 1 share will generate 1 unit subscription right 1 • 9 unit subscription rights + 100 SEK gives the shareholder Nine (9) Unit subscription one unit One (1) Ordinary One (1) Unit subscription rights One (1) Unit Share rig
Slide 12: B) Transaction overview amendment of existing bonds
B) Transaction overview amendment of existing bonds • In conjunction with the rights issue, Catena Media will also seek to amend the terms of its existing senior unsecured bond (See appendix for detailed overview): o To allow a partial prepayment of EUR 49.5 million at 100% of nominal value o Extens
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Slide 14: Appendix
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Slide 15: Proposed amendments of the terms & conditions of the Senior Unsecured Bonds
Proposed amendments of the terms & conditions of the Senior Unsecured Bonds Existing main terms Change Amended terms Issuer Catena Media plc Status Senior unsecured Senior secured Share pledge in Catena Operations Ltd and other directly owned subsidiaries of the Issuer (After Security No security
Slide 16: Main terms for the Hybrid and the Warrants
Main terms for the Hybrid and the Warrants One (1) Unit One (1) SEK 100 nominal Hybrid 6 number of Warrants Hybrid Warrants Issuer Catena Media plc. Issuer Catena Media plc. Instrument Hybrid (junior to all senior debt obligations but senior to ordinary shares) Instrument Warrants Accounting treatme