Allwyn Ag · ATHEX:ALWN
Allwyn — SAZKA Group a.s. — FY2021 Earnings Presentation
37 slides from Allwyn's earnings presentation, May 2022
Slide 1: SAZKA Group a.s. FY 2021 Results
SAZKA Group a.s. FY 2021 Results May 2022 For further information on our company, please visit our website: allwynentertainment.com
Slide 2: Presenting today
Presenting today Robert Chvatal Kenneth Morton CEO, Allwyn CFO, Allwyn 2
Slide 3: Business and Strategic Update
BUSINESS AND STRATEGIC UPDATE
Slide 4: This presentation includes financials of SAZKA Group a.s.
This presentation includes financials of SAZKA Group a.s. Allwyn Entertainment AG, the entity expected to be listed on the NYSE, will be the parent company of SAZKA Group Future Listing Entity • This presentation relates to financials of SAZKA Group a.s., representing the Allwyn Entertainment AG res
Slide 5: FY 2021 highlights
FY 2021 highlights Strong financial performance despite continuing pandemic and continuing delivery on growth strategy • Record financial performance in 2021 despite impact of Consolidated GGR COVID-related restrictions on some businesses – Gross Gaming Revenue above pre-pandemic levels +51.5% vs FY
Slide 6: Strong financial performance in 2021
Strong financial performance in 2021 Revenues, profitability and cashflow generation significantly above pre-pandemic levels despite COVID-related restrictions on some businesses Consolidated financials Pro-rata basis1 NGR NGR CAGR CAGR 1,829 18.1% 10.2% 1,165 1,311 960 877 1,213 FY19 FY20 FY21 FY19
Slide 7: 2021 COVID-19 restrictions on physical retail channel – summary
2021 COVID-19 restrictions on physical retail channel – summary Physical retail business in Greece and Cyprus and casinos impacted in H1, strong recovery in Q3 and Q4, some limited restrictions in Q4 • All physical retail operations open, no material restrictions • Online sales growth momentum conti
Slide 8: Strong online growth with innovation in physical retail
Strong online growth with innovation in physical retail Data drives growth through cross-sell and supports player protection • Strong online momentum continued in 2021, Austria GGR (Lotteries and Online Gaming)1,2 including sales of lottery products through online channel and iGaming Online 183 178
Slide 9: Rapid growth in online customer base
Rapid growth in online customer base Number of online customers almost doubled since pre pandemic Average monthly active online customers per quarter (000)1 Austria Czech Republic Greece and Cyprus +26.3% CAGR 937 844 +19.0% +27.3% +31.3% CAGR CAGR CAGR 587 419 360 262 256 248 235 243 185 158 Q4- Q4
Slide 10: Product launches and innovation
Product launches and innovation We continue to expand and improve our product offering, UX and technology • We continue to successfully implement new New and revitalised products New technology and UI products, UX and technologies as well as proven innovations across our geographies • Leveraging our
Slide 11: Platform to cross-sell customers
Platform to cross-sell customers Sticky customer base, brands, data and wide product offerings drive growing revenues by cohort Cross-selling initiatives Czech Republic internal case study1: GGR per player cohort and YoY growth (%) > Increase number of games Lottery +81% CAGR iGaming +46% Sportsbook
Slide 12: Key strategic developments in 2021
Key strategic developments in 2021 Continuing to deliver on our inorganic growth strategy through increasing stakes in existing businesses and expansion into new markets 1 UK National Lottery bid • Submitted our bid to operate the Fourth UK National Lottery licence 2 Further increase in interest in
Slide 13: Key strategic developments – subsequent
Key strategic developments – subsequent Strong momentum into 2022 1 UK National Lottery bid • In March 2022, selected as Preferred Applicant by the Gambling Commission 2 NYSE stock exchange listing via merger with CRHC • In January 2022, Allwyn announced a merger with Cohn Robbins Holdings Corp as a
Slide 14: NYSE listing via merger with CRHC
NYSE listing via merger with CRHC Transaction overview Transaction summary • NYSE-listed SPAC with $828m1 cash in trust, further supplemented by a PIPE of more than $350m • On closing, Allwyn Entertainment AG (the company to be listed) will be the parent company of the Group • Intends to effect a bu
Slide 15: Allwyn selected as preferred applicant for UK National Lottery license tender
Allwyn selected as preferred applicant for UK National Lottery license tender in March 2022 UK National Lottery Overview1 Camelot UK Lottery Key Financials2 • State-licensed national lottery; established in the UK in 1994 NGR (£m) • Currently operated by Camelot UK Lotteries; licence was granted in
Slide 16: Financial Update
SaZKa allwyn FINANCIAL UPDATE
Slide 17: 2021 financial highlights
2021 financial highlights Strong performance exceeding pre-pandemic levels, driving strong de-leveraging • Financial performance above pre-pandemic levels in all segments Consolidated Consolidated GGR despite COVID-related restrictions on some businesses +51.5% GGR vs FY20 – FY21 Pro-rata GGR 21% ab
Slide 18: FY 2021 – financials summary
FY 2021 – financials summary Revenues and profitability significantly above pre-pandemic levels despite COVID-related restrictions on some businesses Consolidated financials Pro-rata basis1 NGR NGR CAGR CAGR 1,829 18.1% 10.2% 1,165 1,311 960 877 1,213 FY19 FY20 FY21 FY19 FY20 FY21 Adjusted EBITDA Ad
Slide 19: Q4 2021 – financials summary
Q4 2021 – financials summary Strong performance continued in Q4 despite COVID-related restrictions on some businesses Consolidated financials Pro-rata basis1 NGR NGR Growth Growth 555 50.6% 338 29.5% 369 261 328 220 Q4'19 Q4'20 Q4'21 Q4'19 Q4'20 Q4'21 Adjusted EBITDA Adjusted EBITDA 47.0% 42.4% 50.3
Slide 20: Consolidated P&L
Consolidated P&L • Strong GGR growth reflects € millions FY 21 FY20 ∆ FY2020 Q4’21 Q4’20 ∆ Q4’20 – Consolidation of CASAG (June 2020) and GGR 3,057 2,018 51% 914 597 53% Stoiximan, the leading iGaming and online sports betting operator in Greece (November 2020) NGR 1,829 1,213 51% 555 328 69% – Stro
Slide 21: Segmental business highlights – Austria
Segmental business highlights – Austria Restructuring program drives profitability • FY 2021 GGR close to pre-pandemic levels despite Gross Gaming Revenue, €m casinos and VLT gaming halls being shut in H1, Q4 2021 above Q4 2019 FY19: €1,246m FY20: €1,078m FY21: €1,139m • Lotteries continued to perfo
Slide 22: Segmental business highlights – Czech Republic
Segmental business highlights – Czech Republic Continuing online growth and resilient physical retail • Strong topline and profitability growth with GGR and Gross Gaming Revenue, €m EBITDA substantially above pre-pandemic levels FY19: €286m FY20: €315m FY21: €408m • Growth across all products and ch
Slide 23: Segmental business highlights – Greece and Cyprus
Segmental business highlights – Greece and Cyprus Strong recovery after removal of COVID-related restrictions in Q2 • Due to COVID-related closures of physical retail in Q1 Gross Gaming Revenue, €m and part of Q2, FY 2021 GGR slightly below pre- pandemic levels but EBITDA significantly exceeded FY19
Slide 24: Segmental business highlights – Italy
Segmental business highlights – Italy Strongest ever year • Revenue and EBITDA above pre-pandemic levels Revenue1, €m – Record performance in Q1 and Q2, returning to FY19: €489m FY20: €384m FY21: €500m stable levels in Q3 and Q4 Growth: (5.8%) • Stable high profitability and cashflow generation 129
Slide 25: Pro rata organic NGR development during COVID pandemic
Pro rata organic NGR development during COVID pandemic Strong performance in segments not impacted by COVID, COVID impacted segments below 2019 levels in Q4 Segments with limited impact from COVID More impacted segments Combined performance Organic NGR1, €m Organic NGR1, €m Organic NGR1, €m % Growth
Slide 26: Strong free cashflow generation
Strong free cashflow generation Reflects asset light business model and high profitability Consolidated financials Pro-rata basis1 Adjusted EBITDA Adjusted EBITDA 46.0% 44.4% 52.9% 43.7% 41.6% 51.1% CAGR CAGR 26.6% 19.2% 967 596 603 538 419 365 954 409 588 592 459 331 FY19 FY20 FY21 FY19 FY20 FY21 O
Slide 27: Pro-rata net leverage (pre-IFRS 16 basis)
Pro-rata net leverage (pre-IFRS 16 basis) Strong de-leveraging throughout the year As at 31 December 2021, Pre-IFRS16 Basis € millions Austria Czech Republic Greece and Cyprus Italy Corporate1 Total 100% basis Adjusted EBITDA2 194 107 569 409 (8) 1,272 Cash and cash equivalents and short term financ
Slide 28: Key financing transactions
Key financing transactions 2021 • In July 2021, SAZKA Group received a capital contribution of €75m from its parent • In October, in support of our UK National Lottery bid – A syndicate of banks issued guarantees in support of SAZKA Group’s obligations to fund the bidco – The bidco entered into a re
Slide 29: Update on Current Trading
SaZKa allwyn UPDATE ON CURRENT TRADING
Slide 30: Update on current trading
Update on current trading Solid start into 2022 despite challenging market environment 1 COVID-19 • COVID-19 related restrictions that were re-introduced in Q4 2021 in Greece, Austria and Italy have continued into Q1 and in some cases Q2 2022 • The impact of these restrictions was significantly less
Slide 31: Thank you!
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Slide 32: Appendix
SaZKa allwyn APPENDIX
Slide 33: Summary of adjustments to EBITDA
Summary of adjustments to EBITDA Standalone, 100% (€m) EBITDA Adjustments Breakdown Operating EBITDA 2019 2020 2021 2019 2020 2021 Austria 211 147 232 Austria adjustments Casino Linz insurance gain + restructuring non-personnel costs -- (4) (1) Czech Republic 95 84 107 Argentina arbitration gain --
Slide 34: Dividends and distributions
Dividends and distributions Ownership 2019 2020 2021 €m At end of period Dividends and cash upstreamed – 100% basis Austrian Lotteries 9.5%1 120 177 91 CASAG 59.7% 15 – – SDHH 79.2% – 7 6 LOTTOITALIA 32.5% 351 237 316 OPAP 40.6% 165 420 222 SAZKA 100.0% 19 38 81 Dividends and cash upstreamed – pro r
Slide 35: Capital structure overview
Capital structure overview As of 31 December 2021 € millions, Q4’21A (Pre-IFRS16) Amount X FY’21 Adj. EBITDA1 Pro-rata cash and cash equivalents (759.4) Pro-rata Subsidiary debt 496.0 Subsidiary pro-rata net debt2 (263.4) (0.5x) €200m Revolving Credit Facility 100.0 Bank Term Loans 382.5 €200mm 4% S
Slide 36: Alternative performance measures
Alternative performance measures This presentation includes non-IFRS performance measures, including Net gaming revenue (“NGR”), Operating EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Capex, Adjusted Free Cash Flow (“Adjusted FCF”), Cash conversion and pro rata financial information. Please refe
Slide 37: Disclaimer
Disclaimer This presentation was produced by SAZKA Group a.s. This presentation is not to be reproduced or distributed, in whole or in part, by any person other than SAZKA Group a.s. This presentation does not represent an offer for, or constitute or form part of, and should not be construed as, an