Allwyn Ag · ATHEX:ALWN
Allwyn — Allwyn International a.s. — Q2 2024 Earnings Presentation
40 slides from Allwyn's earnings presentation, Sep 6, 2024
Slide 1: Allwyn International a.s. Q2 2024 Results
Allwyn International a.s. Q2 2024 Results 6 September 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: Q2 2024 highlights
Q2 2024 highlights Another quarter of continued progress • Solid financial performance Consolidated Total Revenue – Total Revenue - Strong GGR growth across most geographies - Digital a key growth driver, +10% YoY, major football tournaments €2,147m +5% / +6% vs Q2’23 vs Q2’23, excl. Camelot support
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 Q2’24, with significant growth vs. pre-Covid Austria GGR (excl. VLTs and Casinos)1 GGR (€m) / Online share of total (%) 172 166 160 158 152 156 156 140 148 144 85 85 90 77 74 77 36 35
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 1,244 app launched March ‘24
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 – Q2 2024 NEW New front-end for Lotto syndicate play NEW Casino-style scratch cards with prizes
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 Q2 2024 2023 Pilot of self-service Jul 2024 Partnership wit
Slide 10: Q2 2024 key strategic developments
Q2 2024 key strategic developments Licence award in Cyprus, MOU with IGT Lottery for upcoming Italy licence tender 1 Greece and Cyprus: Concession agreement and award of 15-year licence in Cyprus • In June, OPAP Cyprus awarded 15-year exclusive licence under which will continue to offer its numerica
Slide 11: Key strategic developments after quarter end
Key strategic developments after quarter end IWG investment completed 1 IWG: Completion of investment in 70% interest in IWG • Transaction completion timetable in line with plan for closing in second half of 2024 • Partnering with IWG enhances content offering and supports innovation in online insta
Slide 12: 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 Q2 2024 Safer play Sport Community • Allwyn UK rolled out a bespoke • Sazka Champs, a project to support • Preventive health examinations were e
Slide 13: Financial Update
Financial Update allwyn
Slide 14: Q2 2024 financial highlights
Q2 2024 financial highlights Another quarter of continued progress • Total Revenue +5% YoY Consolidated Total Revenue – Strong GGR growth across most geographies – Weaker performance in United Kingdom, offset on reported basis by €2,147m +5% / +6% vs Q2’23 vs Q2’23, excl. Camelot one-off GGR benefit
Slide 15: Consolidated P&L
Consolidated P&L • Total Revenue +5% YoY, Net Revenue +4% YoY Consolidated P&L (€m) Q2’23 Q2’24 ∆ vs. Q2’23 – Gaming taxes/Good Causes contribution as a % of GGR increased owing to one-off effect in United Kingdom Segment Total Revenue 2,046 2,147 +5% Of which: GGR 1,960 2,060 +5% • Operating expens
Slide 16: Business highlights – Austria
Business highlights – Austria Strong growth in the second quarter • GGR increased 7% YoY in Q2 Gross Gaming Revenue – Strong growth driven by double-digit €m +3% +7% growth in Numerical Lotteries (+10% YoY, including a strong contribution from EuroDreams, which accounted for 4% of 386 387 388 375 38
Slide 17: Business highlights – Czech Republic
Business highlights – Czech Republic Strong top line growth on a constant FX basis • Strong organic top line growth continued in Q2 Gross Gaming Revenue – Reported numbers impacted by FX headwind €m cFX +10% cFX +6% +5% +1% – All major product lines performed well, with cFX growth of 8% in Numerical
Slide 18: Business highlights – Greece and Cyprus
Business highlights – Greece and Cyprus Strong top line growth in Q2 • GGR +7% driven by a strong performance in Gross Gaming Revenue online alongside resilience in retail, also benefiting from Euro 2024 €m +4% +7% – Strong growth in Sports Betting and iGaming 581 • Solid progress in Adjusted EBITDA
Slide 19: Business highlights – United Kingdom
Business highlights – United Kingdom Broadly stable activity levels in Q2 • Q2 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% presentation1 0% – Camelot UK included in
Slide 20: Business highlights – Italy
Business highlights – Italy Strong start to the year continues • Solid financial performance in Q2 Net Revenue – Net Revenue +3% YoY €m +6% +3% – Adjusted EBITDA +3% YoY • No further details on forthcoming tender beyond 128 122 124 those highlighted in the prior quarter 116 121 113 117 120 108 116 Q
Slide 21: Strong Adjusted free cash flow generation
Strong Adjusted free cash flow generation Reflects asset light business model and high profitability • Lower EBITDA adjustments vs. prior year primarily relates to Consolidated FCF (€m) phasing of United Kingdom transition costs; costs will continue in next quarters Adjusted EBITDA CAGR +56% 30.0% 4
Slide 22: Cash conversion
Cash conversion Simplified consolidated cash flow bridge for H1 2024 (€m) Includes partial reversal of working capital inflow in Q4’23 698 643 177 524 (267) (92) (101) (191) 50 (150) (99) Operating Dividends from Change in Income Tax Capex Dividends to Attributable Cash Interest Paid Attributable Ca
Slide 23: Leverage (post-IFRS 16 basis)
Leverage (post-IFRS 16 basis) As of 30 June 2024, post-IFRS 16, €m Consolidated Adjusted EBITDA 1,455 Cash and cash equivalents (1,486) Gross debt 4,393 Leases 151 Net debt (incl. leases) 3,057 Consolidated Net Debt / Adjusted EBITDA 2.1x Consolidated priority Net Debt / Adjusted EBITDA (0.4)x Conso
Slide 24: 2024 key financing transactions in Q2 2024
2024 key financing transactions in Q2 2024 Pro-actively managing our capital structure, benefiting from access to diversified sources of funding Q2: Allwyn International • In April 2024, provided a loan of €50m to parent company, Allwyn AG, for further distribution to its shareholder • In May 2024,
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 continued progress 1 Strong GGR growth and solid progress in profitability across most geographies, and another quarter during which share of profit from equity method investees increased strongly 2 Continued progress in organic growth initiatives: strong growth in digital
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 June 2024 Split by Fixed / Floating Split by Currency x LTM Adj. Amount (€m) 3% Consol. EBITDA Consolidated Subsidiary Net Debt / (Cash) (461) 25% Out of 25% of Subsidiary Lease
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 June 2024 (€m) Available facilities as of 30 June 2024 (€m) Capacity Drawn Undrawn Weighted average Allwyn International life: 4.1 years 250 Allwyn International RCF 300 0 300 654 665 Refinancing facili
Slide 32: Q2 2024 key financing transactions - summary
Q2 2024 key financing transactions - summary Changes in gross debt during Q2 2024 Principal amount of gross debt as of 31 March 2024 (€m) 4,358 USD 450m TLB due 2031 – drawings 418 EUR 400m FRN due 2028 - repayment (400) CASAG bank loan due 2026 - partial repayment (6) OPAP RCF – drawing 20 OPAP ban
Slide 33: Pro rata net leverage (pre-IFRS 16 basis)
Pro rata net leverage (pre-IFRS 16 basis) As of 30 June 2024, Pre-IFRS16 Basis1 3 4 €m Austria Czech Republic Greece & Cyprus United Kingdom Allwyn LS Group2 Italy Other Corporate Total 100% basis LTM Adjusted EBITDA 270 123 732 91 21 393 544 (19) Cash and cash equivalents and short-term (292) (58)
Slide 34: Dividends and distributions
Dividends and distributions Segment or equity Interest at end of 2019 2020 2021 2022 2023 H1’23 H1’24 €m method investee June 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 100.0% 19 3
Slide 35: Q2 financials - five-year summary
Q2 financials - five-year summary Consolidated basis (€m) Pro rata basis (€m)1 Net Revenue CAGR Net Revenue CAGR +4% +49% +14% +52% 907 941 916 805 602 481 392 298 190 174 Q2'20 Q2'21 Q2'22 Q2'23 Q2'24 Q2'20 Q2'21 Q2'22 Q2'23 Q2'24 Adjusted EBITDA CAGR Adjusted EBITDA CAGR +56% +49% 30.0% 49.8% 47.0
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 2019 2020 2021 2022 2023 Q1’24 Q2’24 Casino Linz insurance gain + restructuring non-personnel costs - (4) (1) - - - - Austria 211 147 232 266 278 69 72 Argentin
Slide 37: Q2 2024 Adjusted EBITDA build up
Q2 2024 Adjusted EBITDA build up Consolidated Adjusted EBITDA (€m) Q2’23 Q2’24 Austria 67.1 69.6 Czech Republic 30.6 32.1 Greece and Cyprus 179.8 183.9 United Kingdom 50.0 4.2 Allwyn LS Group 7.9 3.1 Italy (share of net profit) 16.1 16.9 1 Other 29.2 34.6 2 Corporate 0.3 (4.4) Consolidated Adjusted
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 a.s. This presentation is not to be reproduced or distributed, in whole or in part, by any person other than Allwyn International a.s. This presentation does not represent an offer for, or constitute or form part of, and should not be
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
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