Flutter Entertainment Plc · NYSE:FLUT
Flutter Entertainment — Investor Day (October 2023)
28 slides from Flutter Entertainment's investor day presentation, Oct 25, 2023
Slide 1: Flutter International including deep dive on Sisal
FLUTTER ENTERTAINMENT PLC FLUTTER INTERNATIONAL INCLUDING DEEP DIVE ON SISAL 25 October 2023
Slide 2: Agenda
AGENDA Flutter International Introduction 3 “We use our unrivalled scale Flutter International 4 to deliver better local player experiences in the world’s Sisal 12 most attractive markets.” Conclusion 27 The Player’s Champion, Wherever You Play 2
Slide 3: Introduction and today's presenters
Introduction Introduction and today’s presenters Dan Taylor Francesco Durante Flutter International CEO Sisal CEO (2020 – present) (2019 – present) Paddy Power Betfair Sisal Entertainment (Italy Betting & Gaming) CEO CEO (2018-2020) (2009- 2019) Paddy Power UK & Ireland and Retail Managing Director
Slide 4: Flutter International
Dan Taylor, Flutter International CEO FLUTTER INTERNATIONAL 4
Slide 5: International strategy evolving with regulatory environment
Flutter International Division overview International strategy evolving with regulatory environment Sector backdrop… …informing strategic principles 1• Local regulation now more prevalent 1• Concentrated investment in key markets – Podium positions in compelling markets • Operators with Local Hero p
Slide 6: Strategy ensures focus on key market opportunities
Flutter International Division overview Strategy ensures focus on key market opportunities % International YOY growth Markets less than 1% Markets Revenue Cont’n Revenue Cont’n * 14% Consolidate #1 position and 77% 71% +19% +19% Brazil 4% Italy 47% Invest Armenia 4% for leadership Spain 5% Optimise
Slide 7: Substantial global market opportunity
Flutter International Division overview Substantial global market opportunity Significant market size With significant runway of growth for Flutter • Ex-US TAM of £263bn in 2022 (9% CAGR over • Consolidate and Invest just 20% of total ROW regulated market next 5 years). Just 30% online currently • H
Slide 8: Flutter Edge empowers our brands and provides platform to win
Flutter International Division overview Flutter Edge empowers our brands and provides platform to win Product Technology People Capital Disciplined Proprietary Proprietary Sharing investment Group pricing and iGaming Poker Exchange expertise, guided by betting risk content and platform platform tale
Slide 9: Case study: Adjarabet illustrates the effectiveness of the strategy
Flutter International Division overview Case study: Adjarabet illustrates the effectiveness of the strategy Strategic Financial fit Case study in action criteria 2018-2022 £305m • Primarily a cash deposit industry via local terminals Purchase price1 Competitive • High brand awareness of incumbent br
Slide 10: MaxBet acquisition provides access to fast growing Balkan region
Flutter International Division overview MaxBet acquisition provides access to fast growing Balkan region Clear demonstration of international expansion strategy LTM net gaming revenue • Fully regulated €700m Serbian market1 • Retail presence critical in cash-led economies; Market barriers for intern
Slide 11: Sisal: Enhancing Flutter position in Europe's largest market
Flutter International Division overview Sisal: Enhancing Flutter position in Europe's largest market Sisal provides Italian market leadership… …with synergy opportunities across the portfolio Online market share LTM June 20231 • Leverage Sisal’s retail network for customer acquisition on other brand
Slide 12: Sisal
12 Francesco Durante, Sisal CEO SISAL
Slide 13: Sisal: Leading operator in attractive Italian market
Flutter International Sisal Sisal: Leading operator in attractive Italian market Leading online operator; omnichannel focus Historic brand with >75 years in operation with over 30m customers Strong financial performance; Sustainability and responsible gambling €1bn revenue and €291m EBITDA in 2022 i
Slide 14: Diverse product offering supported by proprietary capabilities
Flutter International Sisal Diverse product offering supported by proprietary capabilities Lottery Betting Gaming #1 lottery #1 online betting #1 online casino brand brand brand Underpinned by core competency in technology Proprietary product platforms • Internally developed lottery, sports and Focu
Slide 15: Track record of strong financial performance
Flutter International Sisal Track record of strong financial performance Delivering consistent earnings growth… …with strong current momentum EBITDA (€m) Total AMPs (000’s) Total revenue (€m) +23% 942 +25% 585 766 468 +14% CAGR 291 +41% online 248 201 169 176 H1 2022 H1 2023 H1 2022 H1 2023 Italy on
Slide 16: Italy: Europe's largest market with low online penetration rates
Flutter International Sisal Italy: Europe's largest market with low online penetration rates Italian gambling market1 (€bn) Italian online market1 (€bn) 4.5 +25% CAGR 21.2 0.2 +2% CAGR 19.3 0.1 0.1 1.7 1.8 1.6 1.5 6.4 0.1 5.6 5.9 0.1 1.1 0.8 2.2 2.6 1.5 2.0 2.0 2.8 3.3 1.0 6.3 4.5 2019 2020 2021 202
Slide 17: Retail acts as barrier to entry for online operators
Flutter International Sisal Retail acts as barrier to entry for online operators Flagship Wincity venue Product range available Total Gaming Sports Sisal Italian retail landscape Lottery venues machines betting venues Gaming Betting shops 5.3k ✓ ✓ ✓ 437 venues Gaming halls 2.5k ✓ ✓ 249 Bingo halls
Slide 18: Online leadership from sustainable competitive advantages
Flutter International Sisal Online leadership from sustainable competitive advantages Success Drivers Online market share, H1 2023 25% •1 Leading brand awareness 21% 19% 20% • Strong conversion of retail customers to 15% 2 online 10% 10% 10% 7% 3 • High levels of cross-sell between products 5% 0% 4
Slide 19: 1. Leading brand awareness in restricted advertising environment
Flutter International Sisal 1. Leading brand awareness in restricted advertising environment Advertising restrictions impact competition Retail driven brand delivering online gains • Dignity decree imposed complete ban on • Operator of the year gambling promotion in 2018 (3rd consecutive year) • Bes
Slide 20: 2. Retail providing customers for online leadership
Flutter International Sisal 2. Retail providing customers for online leadership... Seamless migration from retail to online • Retail player digitalisation is a key priority • Consistent user experience, content and odds • First omni-channel loyalty program in the market • Give players a reason to en
Slide 21: 3. ...with strong cross-sell between products
Flutter International Sisal 3. ...with strong cross-sell between products Continuously iterating cross-sell model Enhanced product integration across apps AI driven cross-sell recommendations Event based promotional messaging Enhancing customer value Higher total spend Additional interactions deepen
Slide 22: 4. Product leadership in sports betting enhanced by Flutter Edge
Flutter International Sisal 4. Product leadership in sports betting enhanced by Flutter Edge Social betting New products: First to launch cash out New betting App: innovation bet continues with in Italy: enabled by the improved user substituted player Flutter Edge experience Flutter risk & trading i
Slide 23: Lottery capabilities have created unique expansion path
Flutter International Sisal Lottery capabilities have created unique expansion path Government tenders expand opportunities High tender success rate… …providing footprint in North Africa Tunisia • Sisal’s product capabilities have led to multiple government tender wins Morocco lottery ✓ TAM1: c£0.5b
Slide 24: Turkey growing rapidly in an underpenetrated market
Flutter International Sisal Turkey growing rapidly in an underpenetrated market Significant scope for market growth Step change in market since Sisal launch Turkey • Second largest market for Flutter • Exponential growth in underlying revenue International during H1 2023 • Successfully advancing onl
Slide 25: Leading on sustainability within the Italian market
Flutter International Sisal Leading on sustainability within the Italian market Customers Colleagues Communities Environment Helping customers Empowering colleagues Working with communities Reducing our impact to play well to work better to do more through Go Zero strategy Targets >75% of customers
Slide 26: Conclusion
CONCLUSION 26
Slide 27: Conclusion
Conclusion Conclusion • Significant growth opportunity for Flutter International • Combination of local hero brands and access to the Flutter Edge driving long term strategy and strong returns • Omni-channel strategy winning in Europe’s largest market • Product leadership and strong cross-sell deliv
Slide 28: =lutter
=lutter