Pointsbet Holdings Ltd. · ASX:PBH
Pointsbet — Investor Presentation (October 2019)
32 slides from Pointsbet's investor presentation, Oct 28, 2019
Slide 1: Trading update and capital raising
PointsBet For personal use only Trading update and capital raising October 2019 Not for release to US wire services or distribution in the United States
Slide 2: Important notice and disclaimer
Important notice and disclaimer This investor presentation (Presentation) has been prepared by PointsBet Holdings Limited (ACN 621 179 351) (PBH or conditions, makes the representations and warranties contained in it and acknowledges and agrees that this Presentation the Company) and is dated 28 Oct
Slide 3: Important notice and disclaimer
Important notice and disclaimer Foreign exchange Disclaimer For personal use only The results and financial position of foreign operations that have a functional currency different from the presentation Neither Bell Potter Securities Limited (the Underwriter), nor PBH’s respective advisers or any of
Slide 4: Contents
For personal use only Contents Key highlights and growth strategy Capital raising overview Key risks and selling restrictions
Slide 5: Executive summary
Executive summary For personal use only Client focused, technology driven Operational highlights • PointsBet’s continued focus is to acquire new clients, • Leveraging capability and experience within the highly retain existing clients and maximise client engagement competitive Australian sports wa
Slide 6: Executive summary
Executive summary For personal use only Capital raising to support US market Placement and Entitlement Offer access and continued growth details • Positions PointsBet to take advantage of US market • Undertaking a fully underwritten capital raising to raise access and significant growth opportunitie
Slide 7: Continued Registered and Active Client growth
Continued Registered and Active Client growth For personal use only Registered Clients Active Clients 160,000 148,902 100,000 140,000 87,391 37,231 120,000 80,000 15,380 223% 166% 100,000 60,000 80,000 60,000 40,000 111,671 72,011 40,000 Q3‘17 Q1 ‘18 Q4 ‘18 Q1 ‘19 Q3 ‘19 20,000 20,000 46,053 32,913
Slide 8: Q1 FY2020 performance & FY2020 YTD trading update
Q1 FY2020 performance & FY2020 YTD trading update Australia US For personal use only New Jersey Iowa High Staking Q1 FY2020(1) Australia PCP PCP % US Total PBH Total Digital Retail Clients - NJ Turnover (A$m) 164.4 99.1 66% 55.0 0.7 15.6 71.4 235.8 Net Win (A$m) 12.6 5.0 153% 2.7 0.1 (3.6) (0.8) 11.
Slide 9: US market opportunity: Market size and access
US market opportunity: Market size and access For personal use only US online sports betting legalisation(1): PointsBet US access – Estimated market size in CY2023(6)(7): Estimated total revenue in US$ millions Vermont Maine Washington New York 1,350 North Dakota New New Montana(5) Minnesota York(2)
Slide 10: PointsBet's US market access
PointsBet’s US market access For personal use only PointsBet Access Est. CY2023 Online Wagering Population Online Retail Online tax rate market size Comments Legislated (m)(1) sportsbook sportsbook (US$m)(2) New Jersey P - 14.25% 8.9 555 PointsBet brand launched in January 2019 Retail sportsbook lau
Slide 11: In-house Technology Platform
In-house Technology Platform For personal use only Owning and controlling your technology stack is unquestionably a superior position for a scaled business, for the following reasons: 1. Ability to offer differentiated product on its own terms and timeframe 2. Ability to scale economically across ju
Slide 12: Product Innovation: Pick Free to Play product
Product Innovation PICK 6 FREE TO PLAY PRODUCT For personal use only 12 │ Investor presentation Investor presentation │ October │ October 2019 2019
Slide 13: Product Innovation: New Interactive Form Guide
Product Innovation NEW INTERACTIVE FORM GUIDE For personal use only 13 │ Investor presentation Investor presentation │ October │ October 2019 2019
Slide 14: Retail Operations
Retail Operations For personal use only 14 │ Investor presentation Investor presentation │ October │ October 2019 2019
Slide 15: Brand & Partnerships
Brand & Partnerships For personal use only PointsBet market research(1) found that approximately 1 in 10 men aged 21+ in Indiana and Illinois have heard of PointsBet… even prior to our launch “Which of the following sports betting services have you heard of? (Those that answered ‘PointsBet’)” – Poin
Slide 16: Marketing leveraged across Australia & US
Marketing leveraged across Australia & US For personal use only 16 │ Investor presentation Investor presentation │ October │ October 2019 2019
Slide 17: Contents
For personal use only Contents Key highlights and growth strategy Capital raising overview Key risks and selling restrictions
Slide 18: Entitlement Offer key details
Entitlement Offer key details For personal use only • Fully underwritten 1 for 6 pro-rata accelerated institutional renounceable entitlement offer with retail rights trading to raise gross proceeds of Structure and size approximately A$62.1 million (Entitlement Offer) • Entitlement Offer price of A$
Slide 19: Placement key details
Placement key details For personal use only • Fully underwritten placement to raise A$60.0 million by the issue of 16.7 million shares (Placement) Structure and size – the Placement represents 14.3% of the total shares outstanding prior to the Capital Raising • Placement price of A$3.60 per share –
Slide 20: Funding business growth
Funding business growth For personal use only Sources and Uses (A$m) Comments Sources A$m • Undertaking a fully underwritten institutional Placement and Placement 60.0 Entitlement Offer to raise A$122.1 million Entitlement Offer 62.1 Total sources $122.1 Uses A$m • PointsBet requires additional ca
Slide 21: Capital Raising timetable
Capital Raising timetable For personal use only Event Date Trading halt and announcement of Capital Raising (after-market) Monday, 28 October 2019 Placement bookbuild and Institutional Entitlement Offer opens (after-market) Monday, 28 October 2019 Placement and Institutional Entitlement Offer closes
Slide 22: Contents
For personal use only Contents Key highlights and growth strategy Capital raising overview Key risks and selling restrictions
Slide 23: Key risks – business risks
Key risks – business risks • For personal use only This section discusses some of the key risks associated with any investment in share PointsBet together with risks relating to participation in the Placement and Entitlement Offer which may affect the future operating and financial performance of Po
Slide 24: Key risks – business risks
Key risks – business risks For personal use only The Company’s growth strategy includes expansion overseas, and in particular into the developing wagering industry in the United States. The striking down by the United States Supreme Court of the Professional and Amateur Sports Protection Act of 1992
Slide 25: Key risks – business risks
Key risks – business risks For personal use only The Company may require additional capital in order to support and implement its growth plans. The Company’s ability to obtain additional capital, if and when The Company may require required, will depend on its business plans, investor demand, the ca
Slide 26: Key risks – business risks
Key risks – business risks For personal use only The Company has experienced and expects to continue to experience rapid growth, which has placed, and may continue to place, significant demands on its Inability to manage management, operational and financial resources. As the Company grows, it may e
Slide 27: Key risks – capital raising and general risks
Key risks – capital raising and general risks For personal use only PointsBet has entered into an underwriting agreement with Bell Potter Securities Limited (Underwriter) (Underwriting Agreement) pursuant to which the Underwriter has agreed to fully underwrite the Capital Raising, subject to the ter
Slide 28: Key risks – capital raising and general risks
Key risks – capital raising and general risks For personal use only Australian Accounting Standards are set by the AASB and are outside the control of PointsBet. The AASB regularly introduces new or refined Australian Accounting Standards, which may affect future measurement and recognition of key s
Slide 29: International selling restrictions
International selling restrictions For personal use only This document does not constitute an offer of entitlements to acquire shares (Entitlements) or new fully paid ordinary shares (New Shares) of the Company International Offer in any jurisdiction in which it would be unlawful. In particular, thi
Slide 30: International selling restrictions
International selling restrictions For personal use only This document and any other materials relating to the Entitlements and the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and an
Slide 31: Glossary
For personal use only Glossary
Slide 32: Glossary
Glossary For personal use only Term Definition A$ an Australian dollar Active Client a Registered Client who has placed a bet in the relevant 12 month period CY calendar year FTE Full time equivalent FY financial year is calculated as the dollar amount received from clients who placed losing bets le
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