Slide 1: Full Year 2013 Results
FULL YEAR 2013 RESULTS 20 February 2014
Slide 2: Agenda
Agenda HIGHLIGHTS • ALAN JACKSON, CHAIRMAN FINANCIAL REVIEW • RON HOFFMAN, CFO STRATEGIC REVIEW • MOR WEIZER, CEO Q&A 2
Slide 3: Highlights
Highlights • First results as Chairman • Impressive full year financial performance • total revenue up 16% • adj. EBITDA* up 17% • adj. net profit* up 26% • Sale of stake in William Hill Online for £424m • Total shareholder distribution for 2013 c.€188.5m • special dividend in sterling of £100 milli
Slide 4: Agenda
Agenda HIGHLIGHTS • ALAN JACKSON, CHAIRMAN FINANCIAL REVIEW • RON HOFFMAN, CFO STRATEGIC REVIEW • MOR WEIZER, CEO Q&A 4
Slide 5: Results summary (both including and excluding WHO SOP)
Results summary (both including and excluding WHO SOP) 400 FY12 350 FY13 367.2 WHO SOP FY12 300 317.5 WHO SOP FY13 250 186.7 177.5 200 168.3 166.4 150 159.4 148.3 100 136.2 117.8 50 0 Total Revenue Adj. EBITDA* Adj. Net profit* +16% +17% +26% 5
Slide 6: Underlying results summary
Underlying results summary 400 367.2 FY12 350 FY13 350.9 EXCL. WHO & ACQ 300 316.2 250 186.7 200 177.5 168.3 166.4 150 154.7 144.7 100 138.2 120.2 50 0 Total Revenue* Adj. EBITDA*/** Adj. Net profit*/** +11% +12% +20% Constant £/€ rates +13% +14% +17% *Results exclude acquisitions made in the last 2
Slide 7: Revenue bridge
Revenue bridge 400 380 14.8 367.2 20.8 360 340 14.2 5% € Millions 317.5 320 300 280 Organic Growth 260 4% from 7% from 240 existing, 7% new on a LFL business 220 basis 200 FY12 Existing New Business* Acquisitions FY13 Revenue *New Business defined as new licensees or new products that were launched
Slide 8: Revenue breakdown
Revenue breakdown 2012 2013 200 • Casino up 25% Like for like Services 180 189.2 in line • Services up 5% 160 Bingo up 7% on a • Bingo up 3% 151.7 140 constant currency basis • Sport up 61% € Millions 120 111.1 • Poker down 18% 100 106.3 Videobet up 18% on a 80 constant currency basis • Videobet up
Slide 9: Casino breakdown
FINANCIAL REVIEW Casino breakdown 200 3.9 189.2 190 3.9 8.6 180 21.0 +33%* +16%* 170 +212%* € Millions 160 151.7 150 +3%** +19%* +3%** 140 +5%** 130 +14%** 120 110 100 FY12 Core Mobile LIVE Premium FY13 Content *Growth of each segment **Proportion of overall casino growth 9
Slide 10: Mobile growth
Mobile growth €m 2012 2013 % Casino 4.1 12.7 212% Sports 9.1 14.7 61% Bingo 0.5 2.0 297% Total 13.7 29.4 115% 10
Slide 11: Customer concentration
Customer concentration 45 FY12 FY13 40 Top 2 licensees 40% 35% Top 5 licensees 61% 54% 41 41 35 Top 10 licensees 73% 69% 30 32 Top 15 licensees 79% 77% 25 20 15 17 10 12 10 5 0 Licensees > €4.0m revenues Licensees > €1.0m revenues FY11 FY12 FY13 11
Slide 12: Adj. EBITDA margin
Adj. EBITDA margin Adj. EBITDA margin excl. WHO 400 300 Adj. EBITDA 200 42.9% 43.4% Total 100 Revenue 0 FY12 FY13 Adj. EBITDA margin excl. WHO and PokerStrategy 400 300 Adj. EBITDA 200 42.9% 43.1% Total 100 Revenue 0 FY12 FY13 12
Slide 13: Analysis of costs and expenses
Analysis of costs and expenses €m 2012 2013 Adj. operational costs 181.3 207.8 Revenue-driven costs 36.2 11.4% 37.9 10.3% Adj. operating expenses exc. revenue-driven 145.1 169.9 costs Employee-related costs 99.9 68.8% 111.0 65.3% Administration and office costs 15.5 10.7% 17.7 10.4% Travel, exhibiti
Slide 14: Summary cash flow
Summary cash flow €m 2012 2013 Cash from operating activities 112.8 200.0 Cash (used in)/provided by investing activities (128.9) 343.0 Payment of deferred consideration (Mobenga and PTTS) (118.0) (85.8) PokerStrategy acquisition - (37.7) Other (25.1) (5.4) Acquisition of subsidiaries (net of cash a
Slide 15: Balance sheet highlights
Balance sheet highlights Cash Total Total balance assets equity €527.4m €1.07bn €921.0m (31 Dec 2012: €120.9m) (31 Dec 2012: €784.5m) (31 Dec 2012: €514.2m) • Debt free at year end • No deferred consideration from January 2014 onwards • Forex gains on cash held in Sterling 15
Slide 16: Agenda
Agenda HIGHLIGHTS • ALAN JACKSON, CHAIRMAN FINANCIAL REVIEW • RON HOFFMAN, CFO STRATEGIC REVIEW • MOR WEIZER, CEO Q&A 16
Slide 17: Highlights
Highlights • Completion of 29% stake in WHO • LAD flagship deals - migration on target • Acquisition of PokerStrategy • Geneity gaining traction ahead of World Cup • Accelerated rollouts of mobile solutions • Convergence of land-based/online creating multi-channel opportunities 17
Slide 18: IMS
IMS • IMS becoming industry standard infrastructure enables maximum returns on operator’s marketing budgets creates the ultimate player journey • Advanced tools provide increased visibility through the player acquisition process • Combination of IMS and new advanced front end capabilities allow auto
Slide 19: Casino
Casino • Continued strong organic growth led by LIVE and mobile • Mobile NGM technology streamlines development work and rollout of new games on all platforms • Number of mobile game to be increased through 2014 19
Slide 20: Bingo
Bingo • Strong launch programme through 2013 - launched Spanish network - new licensees – including media brands • New branded mini games • Mobile bingo improved - tablet version launched at ICE • Open platform launched 20
Slide 21: Sport
Sport • Industry transitioning to new technologies • Unique multi-channel (retail/online), cross-platform (online/mobile) fully integrated solution • Geneity recognised as best technology • Mobile continues to outperform • Significant opportunities in regulated markets 21
Slide 22: Poker
Poker • Acquisition of PokerStrategy • Launch of Betclic and Betfair on iPoker • Launch of iPoker on mobile using multi- platform support (HTML 5, Native iOS and Android) • Mobile poker iOS app approved in France • Launch of the most advanced tablet poker 22
Slide 23: Videobet
Videobet • UK market leader • 2,800 machines added in 2013 • New jurisdictions – non-UK up to 18% of Videobet revenue • Significant test progressing • Convergence of retail and online 23
Slide 24: Mobile
Mobile • Mobile royalties (non-sport) grew 220% • Making significant progress - NGM delivering • Mobile Hub creates cross-product opportunity driven by tablet applications - single application incorporating single account & wallet 24
Slide 25: Industry dynamics
Industry dynamics • New regulated markets expected within 18- 24 months • Co-operation with regulators • Convergence between retail and online creates multi-channel opportunity • Operators want to offer a better player journey and experience • Operators put more focus on CRM and player value 25
Slide 26: Building blocks
Building blocks • As a B2B supplier we MUST have new products under development at all times • Social Gaming - soft launch Q4/13 - full launch expected H1/14 • Casual Gaming - internal initiative led by industry experts - complements social gaming 26
Slide 27: Building blocks
Building blocks • Financial Betting - developed by market leading professionals - appeals to operators - accelerating growth • Virtual Sports - developed internally - cutting edge • Videobet 27
Slide 28: Structured agreements
Structured agreements • Ladbrokes landmark agreements • Flexible approach from outsourced turnkey through BOT model (Built, Operate, Transfer) to full JV • Agreements always come with an extended software agreement • Strongest pipeline ever – some in advanced stages – will lead to significant growth
Slide 29: Growth opportunities
Growth opportunities • Expand licensee base - organic growth by improving products and platforms - new licensees/jurisdictions • Further JVs/structured agreements – Mexico, Italy, Holland, South Africa … • New products – social, casual, financial betting, virtual sports • M&A 29
Slide 30: M&A
M&A • Targeting regulated markets • High cash generation/attractive multiple • Core or highly synergistic • Product and content are key • Continue to seek transformational, significant opportunities as well as bolt-on acquisitions 30
Slide 31: Current trading
Current trading Playtech has made a strong start to 2014, with daily average revenues for the first seven weeks of 2014 up over 15% on Q1 2013 (up over 8% after excluding the acquisition of PokerStrategy) and over 4% on Q4 2013 31
Slide 32: Agenda
Agenda HIGHLIGHTS • ALAN JACKSON, CHAIRMAN FINANCIAL REVIEW • RON HOFFMAN, CFO STRATEGIC REVIEW • MOR WEIZER, CEO Q&A 32