Allwyn Ag · ATHEX:ALWN
Allwyn — Allwyn International — Q3 2024 Earnings Presentation
40 slides from Allwyn's earnings presentation, Dec 9, 2024
Slide 1: Allwyn International AG Q3 2024 Results
Allwyn International AG Q3 2024 Results 9 December 2024 For further information on our company, please visit our website: allwyn.com
Slide 2: Presenting today
Presenting today Robert Chvatal Kenneth Morton CEO CFO 2
Slide 3: Today's agenda
Today’s agenda Business and Strategic Update Financial Update Update on Current Trading and Summary Appendix 3
Slide 4: Business and Strategic Update
Business and Strategic Update 4
Slide 5: Q3 2024 highlights
Q3 2024 highlights Another quarter of good progress and financial performance • Strong top line momentum, solid profitability Consolidated Total Revenue – Total Revenue - Strong GGR growth in Austria, Greece and Cyprus - Digital a key growth driver, +14% YoY €2,143m +7% / +13% vs Q3’23, excl. United
Slide 6: Strong online momentum continues alongside resilience in physical retail
Strong online momentum continues alongside resilience in physical retail… Online share up YoY across all markets in Q3’24, with significant growth vs. pre-Covid Austria (excl. VLTs and Casinos)1 GGR (€m) / Online share of total (%) 172 166 160 158 152 156 156 160 140 148 144 85 85 90 93 77 74 77 36
Slide 7: De-anonymised share of physical retail also growing
…de-anonymised share of physical retail also growing Loyalty programmes bring the benefits of online to the physical retail channel Czech Republic: de-anonymised GGR share (%) 1 Greece and Cyprus: evolution of registered customer base (‘000) Sazka Klub loyalty programme 38% 1,287 app launched March
Slide 8: Product launches and innovation across physical retail and online channels
Product launches and innovation across physical retail and online channels Continuing to expand and improve our product offering, user experience, and technology New and revitalised products / experiences – Q3 2024 NEW New front-end for Lotto syndicate play NEW Trials of new permanent points of sale
Slide 9: Product launches and innovation across physical retail and online channels (cont'd)
Product launches and innovation across physical retail and online channels (cont’d) Continuing to expand and improve our product offering, user experience, and technology Digitalisation of physical retail Selected new product launches after Q3 2024 Oct 2024 Eurojackpot celebrated 10 years 2023 Pilot
Slide 10: Q3 2024 key strategic developments
Q3 2024 key strategic developments Acquisition of majority stake in IWG, OPAP share buyback programme 1 IWG: Completion of investment in 70% interest IWG has significant geographical reach • Supports innovation in online instant win games category and accelerates Allwyn’s content strategy - a new ch
Slide 11: Continuing to focus on ESG and to contribute to local communities
Continuing to focus on ESG and to contribute to local communities Multiple examples of our ongoing commitment to ESG and corporate social responsibility in Q3 2024 Safer play Community Safer play • Allwyn UK introduced a limit of 10 • One year after the catastrophic flood • In July, OPAP SA obtained
Slide 12: Financial Update
Financial Update allwyn
Slide 13: Q3 2024 financial highlights
Q3 2024 financial highlights Another quarter of good progress and financial performance • Total Revenue +7% YoY Consolidated Total Revenue – Strong GGR growth in Austria, Greece and Cyprus; modest growth in United Kingdom on a constant FX basis €2,143m +7% / +13% vs Q3’23 vs Q3’23, excl. Camelot – F
Slide 14: Consolidated P&L
Consolidated P&L • Total Revenue +7% YoY, Net Revenue +11% YoY Consolidated P&L (€m) Q3’23 Q3’24 ∆ vs. Q3’23 – Gaming taxes/Good Causes contribution as a % of GGR decreased owing in part to mix effects Total Revenue 2,007 2,143 +7% Of which: GGR 1,922 2,057 +7% • Operating expense growth driven by t
Slide 15: Business highlights – Austria
Business highlights – Austria Strong growth in the third quarter • GGR increased 7% YoY in Q3 Gross Gaming Revenue – Strong growth driven by double-digit €m +3% +7% +7% growth in Numerical Lotteries (+17% YoY, and iGaming (+12% YoY) 386 387 393 388 – Online channel, +21% YoY, also a key growth 375 3
Slide 16: Business highlights – Czech Republic
Business highlights – Czech Republic Continued top line growth on a constant FX basis • Organic top line growth continued in Q3, albeit at Gross Gaming Revenue a slower pace vs. prior quarters €m cFX +10% cFX +6% cFX +2% • Reported numbers impacted by FX headwind +5% +1% -2% – GGR growth of 2% on a
Slide 17: Business highlights – Greece and Cyprus
Business highlights – Greece and Cyprus Strong top line growth in Q3 • GGR +18% driven by a strong growth in online and Gross Gaming Revenue major product lines €m +4% +7% +18% – Online GGR +35% YoY – Strong growth in Numerical Lotteries, +20% YoY, supported by favourable jackpot cycle in 550 566 54
Slide 18: Business highlights – United Kingdom
Business highlights – United Kingdom Broadly stable activity levels in Q3 • Q3 2023: United Kingdom segment comprises operations of Gross Gaming Revenue Camelot UK (operator of The National Lottery until 31 January 2024) €m cFX, comparable cFX, adjusted2 -5% cFX +1% presentation1 0% – Camelot UK inc
Slide 19: Business highlights – Italy
Business highlights – Italy Minor decline in Q3 • Minor declines in top line and profitability, solid Net Revenue margin €m -2% – Net Revenue -2% YoY +6% +3% – Adjusted EBITDA -2% YoY 128 124 122 – Performance strong in comparative period 116 121 113 117 120 108 116 113 (Q3 2023 Net Revenue +7% YoY)
Slide 20: Strong Adjusted free cash flow generation
Strong Adjusted free cash flow generation Reflects asset light business model and high profitability • EBITDA adjustments: Consolidated FCF (€m) – Lower EBITDA adjustments year-on-year owing to litigation Adjusted EBITDA CAGR +19% provision in Greece and Cyprus in prior year (€25m) 40.2% 49.8% 49.3%
Slide 21: Cash conversion
Cash conversion Simplified consolidated cash flow bridge for 9M 2024 (€m) 1,109 1,011 (157) 199 806 (180) (173) (256) 239 (246) (7) Operating Dividends from Change in Income Tax Capex Dividends to Attributable Cash Interest Paid Attributable Cash Adjusted Operating Cash Flow Equity Method NWC Paid M
Slide 22: Leverage (post-IFRS 16 basis)
Leverage (post-IFRS 16 basis) As of 30 September 2024, post-IFRS 16, €m Consolidated Adjusted EBITDA 1,497 Cash and cash equivalents (1,455) Gross debt 4,527 Leases 167 Net debt (incl. leases) 3,239 Consolidated Net Debt / Adjusted EBITDA 2.2x Consolidated priority Net Debt / Adjusted EBITDA (0.4)x
Slide 23: Key financing transactions in Q3 2024
Key financing transactions in Q3 2024 Pro-actively managing our capital structure, benefiting from access to diversified sources of funding Allwyn International • In September • Drew remaining €430.5m under the €500m accordion facilities due in 2030 raised earlier this year. Proceeds were used to fi
Slide 24: Key financing transactions after end of Q3 2024
Key financing transactions after end of Q3 2024 Allwyn International • In October, Allwyn International a.s. (“AI”) relocated from the Czech Republic to Switzerland • Effective 1 October 2024, Allwyn International became a Swiss entity (under the new legal name Allwyn International AG) and transferr
Slide 25: Current Trading and Summary
Current Trading and Summary 25
Slide 26: Current trading
Current trading • Since the start of the year our business has continued to perform and develop well • Our trading since the start of the year has been broadly in line with our expectations at the start of the year • The impact of key external factors, in particular the macroeconomic environment and
Slide 27: Summary
Summary Another quarter of good progress and financial performance 1 Strong GGR growth and solid profitability, inclusive of some benefit from favourable jackpot cycles and weaker comparative period; very strong growth in Greece and Cyprus 2 Continued progress in organic growth initiatives: strong g
Slide 28: Q&A
QE&A allwyn
Slide 29: Appendix
Appendix allwyn
Slide 30: Diversified capital structure across multiple instruments
Diversified capital structure across multiple instruments with access to EUR, USD and local markets Debt overview as of 30 September 2024 Split by Fixed / Floating Split by Currency 1% x LTM Adj. Amount (€m) 40% Consol. EBITDA 23% Consolidated Subsidiary Net Debt / (Cash) (498) Out of 23% of financi
Slide 31: No significant maturities until 2027 and ample available liquidity
No significant maturities until 2027 and ample available liquidity Debt maturity profile as of 30 September 2024 (€m) Available facilities as of 30 September 2024 (€m) Capacity Drawn Undrawn Weighted average life: 4.1 years Allwyn International 665 Allwyn International RCF 300 0 300 250 627 UK facil
Slide 32: Q3 2024 key financing transactions - summary
Q3 2024 key financing transactions - summary Changes in gross debt during Q3 2024 Principal amount of gross debt as of 30 June 2024 (€m) 4,369 €500m accordion facilities - drawings 431 €152m TLA2 and of €290m TLA2– partial repayment (110) USD 450m TLB due 2031 – partial repayment (1) CZK 6bn SSN due
Slide 33: Dividends and distributions
Dividends and distributions Segment, equity Interest at end of 2019 2020 2021 2022 2023 9m’23 9m’24 €m method investee or other September 2024 Dividends and cash upstreamed – 100% basis Austrian Lotteries 9.5%1 120 177 91 120 114 114 115 Austria CASAG 59.7% 15 - - 45 130 130 137 SAZKA Czech Republic
Slide 34: Q3 financials - five-year summary
Q3 financials - five-year summary Consolidated basis (€m) Pro rata basis (€m)1 Net Revenue CAGR Net Revenue CAGR +11% +18% +15% +35% 982 937 883 815 583 642 506 414 283 344 Q3'20 Q3'21 Q3'22 Q3'23 Q3'24 Q3'20 Q3'21 Q3'22 Q3'23 Q3'24 Adjusted EBITDA CAGR Adjusted EBITDA CAGR +19% +25% 40.2% 49.8% 49.
Slide 35: Pro rata net leverage (pre-IFRS 16 basis)
Pro rata net leverage (pre-IFRS 16 basis) As of 30 September 2024, Pre-IFRS16 Basis1 North America, Greece & United 3 4 €m Austria Czech Republic technology Italy Other Corporate Total Cyprus Kingdom and content2 100% basis LTM Adjusted EBITDA 269 121 776 48 44 392 576 (20) Cash and cash equivalents
Slide 36: Summary of adjustments to EBITDA
Summary of adjustments to EBITDA Standalone, 100% (€m)1 EBITDA Adjustments Breakdown3 Operating EBITDA 2019 2020 2021 2022 2023 Q1’24 Q2’24 Q3’24 2019 2020 2021 2022 2023 Q1’24 Q2’24 Q3’24 Casino Linz insurance gain + restructuring non-personnel costs - (4) (1) - - - - - Austria 211 147 232 266 278
Slide 37: Q3 2024 Adjusted EBITDA build up
Q3 2024 Adjusted EBITDA build up Consolidated Adjusted EBITDA (€m) Q3’23 Q3’24 Austria 75.3 74.0 Czech Republic 28.8 27.5 Greece and Cyprus 169.7 213.4 United Kingdom 44.4 7.0 North America, technology and content 6.7 5.0 Italy (share of net profit) 15.5 15.5 1 Other 29.9 71.8 2 Corporate (1.9) (3.4
Slide 38: Alternative performance measures and comparability of information
Alternative performance measures and comparability of information This presentation includes non-IFRS performance measures, including Net Revenue, Net gaming revenue (“NGR”), Operating EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, CAPEX, Adjusted Free cash flow (“Adjusted FCF”), Cash conversion a
Slide 39: Disclaimer
Disclaimer This presentation was produced by Allwyn International AG. This presentation is not to be reproduced or distributed, in whole or in part, by any person other than Allwyn International AG. This presentation does not represent an offer for, or constitute or form part of, and should not be c
Slide 40: Disclaimer
Disclaimer No warranty or representation of any kind, express or implied, is or will be made in relation to, and to the fullest extent permissible by law, no responsibility or liability in contract, tort, or otherwise, is or will be accepted by us or any of our officers, employees, advisers or agent