Flutter Entertainment Plc · NYSE:FLUT
Flutter Entertainment — Merger or Acquisition (December 2020)
16 slides from Flutter Entertainment's merger presentation, December 2020
Slide 1: Flutter Entertainment plc Investor Presentation
Flutter Entertainment plc Investor Presentation December 2020
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN OFFER OF SECURITIES IN ANY JURISDICTION. This Presentation has been prepared and issued by and is the sole responsibility of Flutter Entertainment plc (referred to herein as “Flutter” or the “Company”). This Presentati
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (“Securities Act”), or under the securities laws of, or with any securities regulatory authority of, any state or other jurisdiction of the United States, and may not be offered
Slide 4: Transaction overview
Transaction overview • Acquisition of 37.2% of FanDuel Group from Fastball for $4.175bn - Increases ownership in FanDuel from 57.8% to 95%1 - Secures stake at a discount reflecting a number of factors; (i) Fastball's minority position, (ii) the provision of price certainty and liquidity to Fastball
Slide 5: Compelling rationale for Transaction and timing
Compelling rationale for Transaction and timing Significant upside for Flutter and Fastball… Increasing Flutter’s exposure to most exciting market Accelerates buy-out of US market leader; bringing Flutter US most attractive opportunity in sector today ownership to 95% − 2021 US states TAM at mat
Slide 6: Potential for US to generate significant EBITDA for Flutter
Potential for US to generate significant EBITDA for Flutter 2021 US states TAM1 at maturity almost equivalent to …2020 forecast EBITDA from Flutter core markets today… these core markets >$1bn Online gross gaming revenue (GGR) c.$9.1bn c.$9.5bn • FanDuel TAM continues to grow: − Sportsbook expected
Slide 7: Number 1 operator in the US
Number 1 operator in the US Consistent market leader… …with attractive returns and robust trajectory 2020E revenue $m Q3 2020 market share4 • 1 >850 First online operator to reach >$1bn GGR, with 1.5x c.$850m expected in net revenue1 2 43% 1.7x • 70%+ revenue growth in 2020 despite Covid 540-560 dis
Slide 8: FanDuel database and brand provide structural cost advantage
FanDuel database and brand provide structural cost advantage Cross-sell and brand advantage driving market share While key media assets enhance direct acquisition • Over 9.5m customers Sportsbook pre-game integration with Live − Approximately 40% of all customers acquired in first FanDuel odds board
Slide 9: Best-in-class product drives customer engagement and retention
Best-in-class product drives customer engagement and retention Number 1 sports betting app1 Proprietary technology drives product leadership • Integrated account and wallet creates seamless cross-sell experience • Global risk and trading team of over 650 driving product innovation: − Only operator w
Slide 10: Diversification and scale funding investment
Diversification and scale funding investment Only operator offering four verticals and free-to-play1 Portfolio of significant scale Sportsbook Gaming TVG DFS 41 states 14 states 4 states 33 states • FanDuel benefits from: − Ability to engage customers across 50 states ahead of sports betting and gam
Slide 11: Summary of offering – key placing terms
Summary of offering – key placing terms Placing Size • Approximately £1.1bn • Undocumented cash placing executed by way of an accelerated bookbuild offering (ABO) Placing Structure • Securities Act exempt offering to limited number of QIBs within the meaning of Rule 144A and under Regulation S Flutt
Slide 12: Conclusion
Conclusion • US most attractive opportunity in sector today • Transaction increases ownership in FanDuel; market leader with long runway of potential future growth • Taking action now removes uncertainty and increases flexibility to optimise US structure • Compelling valuation securing opportunity f
Slide 13: Appendix 1 - Flutter Group additional slides
Appendix 1 - Flutter Group additional slides
Slide 14: Number 1 global sports betting and gaming business
Number 1 global sports betting and gaming business 4 divisions with market leading brands... Broad geographic exposure... … and a diversified product mix US UK&I Other 6% Retail 6% Rest of the World 23% UK&I 41% Poker 10% Online sports US 12% betting 50% Online gaming Australia International 28% Aus
Slide 15: Revenue growth accelerated during Q3
Revenue growth accelerated during Q3 Pro forma revenue Q3 Q3 YOY • Performance driven by strong customer engagement; £’m 2020 2019 CC − Group revenue growth of 30% compared to 22% growth in H1 PPB 351 322 +10% Online 278 247 +14% − Global average daily customers +41% Retail 74 75 -2% − Double digit
Slide 16: www.flutter.com
=lutter www-flutter.com
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