Allwyn Ag · ATHEX:ALWN
Allwyn — Allwyn International a.s. — Q2 2022 Earnings Presentation
34 slides from Allwyn's earnings presentation, Sep 13, 2022
Slide 1: Allwyn International a.s. Q2 2022 Results
Allwyn International a.s. Q2 2022 Results 13 September 2022 For further information on our company, please visit our website: allwynentertainment.com
Slide 2: Presenting today
Presenting today Robert Chvatal Kenneth Morton CEO, Allwyn CFO, Allwyn 2
Slide 3: Today's agenda
Today’s agenda Business and Strategic Update Financial Update Update on Current Trading Appendix 3
Slide 4: Business and Strategic Update
Business and Strategic Update 4
Slide 5: Q2 2022 highlights
Q2 2022 highlights Strong financial performance demonstrating strong organic growth and recovery post-pandemic • Strong financial performance continues, reflecting fully opened physical retail and organic growth Consolidated GGR – Gross Gaming Revenue and Adjusted EBITDA significantly above Q2 last
Slide 6: Strong online growth with innovation in physical retail
Strong online growth with innovation in physical retail We continue to de-anonymise our physical retail customer base • Strong online momentum continued in Austria GGR (Lotteries and Online Gaming)1,2 Q2 2022, including online sales of lottery products and iGaming GGR (€m) / Online share of total (%
Slide 7: Rapid growth in online customer base continues
Rapid growth in online customer base continues Number of online customers more than doubled since pre-pandemic Average monthly active online customers per quarter (000)1 Austria Czech Republic Greece and Cyprus +31.2% CAGR 989 868 +38.0% 667 CAGR +22.9% +31.1% CAGR CAGR 438 438 392 283 268 273 234 2
Slide 8: Growing de-anonymised lottery share in physical retail
Growing de-anonymised lottery share in physical retail Loyalty programmes bring the benefits of online to the physical retail channel • Retail loyalty programmes successfully rolled out Czech Republic: de-anonymised lottery share(%) across all our geographies with constant subscriber growth 26% • Lo
Slide 9: H1 2022 product launches and innovation across physical retail and online channels
H1 2022 product launches and innovation across physical retail and online channels Continuing to expand and improve product offering, user experience, and technology New and revitalized products / experiences Digitalizing physical retail NEW Lotto and EuroMillions gift cards NEW Physical retail loya
Slide 10: Key strategic developments in Q2 2022
Key strategic developments in Q2 2022 We continue to execute our inorganic growth strategies 1 Increase in OPAP shareholding • In Q2 2022, the Company increased its direct shareholding in OPAP by 0.62% through market purchases. As a result, the Group’s interest in OPAP increased from 48.13% to 48.75
Slide 11: Key developments after the end of Q2
Key developments after the end of Q2 We continue to execute our inorganic growth strategies 1 Increase in OPAP economic interest above 50% • In Q3 2022 to date, the Company increased its direct shareholding in OPAP by 0.41% through market purchases and elected to receive a dividend paid by OPAP as n
Slide 12: UK National Lottery update
UK National Lottery update Camelot and IGT withdraw appeals • In March 2022, Allwyn was selected by the UK Gambling Commission as Preferred Applicant for the fourth UK National Lottery licence that will run for 10 years from February 2024 • Camelot and certain other parties brought claims against th
Slide 13: We have introduced our new ESG strategy
We have introduced our new ESG strategy Our mission is to be a trusted and proactive guardian of all that is good in lotteries and casual gaming entertainment In June 2022, we published our first ESG report (following several CSR reports), showcasing our ESG strategy Our ESG strategy is based on “4P
Slide 14: We share our success with local communities – selected Q2 2022 activities
We share our success with local communities – selected Q2 2022 activities Funding of good causes is an integral part of our ESG strategy Help to Ukraine Sports Environment • Delivering further support in-kind • SAZKA Olympic Multi-contest program (medical supplies, essential goods, dry for schools h
Slide 15: Financial Update
Financial Update allwyn
Slide 16: Q2 2022 financial highlights
Q2 2022 financial highlights Strong performance reflecting more normalized operational environment • Strong financial performance reflecting limited COVID-19 Consolidated Consolidated GGR related restrictions in physical retail business and continued organic growth GGR +22.5% – Q2-22 Pro-rata GGR 18
Slide 17: Q2 2022 financials summary
Q2 2022 financials summary Strong performance continued in Q2 with substantial growth compared to pre-pandemic levels Consolidated basis Pro-rata basis1 NGR CAGR NGR CAGR 21.2% 19.7% 551 362 445 280 309 211 162 158 Q2'19 Q2'20 Q2'21 Q2'22 Q2'19 Q2'20 Q2'21 Q2'22 Adjusted EBITDA CAGR Adjusted EBITDA
Slide 18: Consolidated P&L
Consolidated P&L • Strong top-line growth ∆ vs. € millions Q2 ‘22 Q2’ 21 Q2 ’21 • Revenue from non-gaming activities primarily reflects recovery in casino activity GGR 902 736 23% NGR 551 445 24% • Lower other operating income reflects COVID-19 related subsidies in prior year Revenue from non-gaming
Slide 19: Segmental business highlights – Austria
Segmental business highlights – Austria Strong top-line recovery performance across products, cost savings support margins • Strong performance across all products: Gross Gaming Revenue, €m – Strong recovery in revenues at Austrian and international casinos businesses in more normal operating enviro
Slide 20: Segmental business highlights – Czech Republic
Segmental business highlights – Czech Republic Continuing strong online growth and resilient physical retail • Continued topline growth and strong profitability Gross Gaming Revenue, €m with GGR and EBITDA substantially above pre- pandemic levels +10% • Strong growth in iGaming (+33 year-on-year) an
Slide 21: Segmental business highlights – Greece and Cyprus
Segmental business highlights – Greece and Cyprus Strong revenue growth across most product categories • Strong growth in topline (+13% year-on-year) Gross Gaming Revenue, €m • Strong performance in numerical lotteries, sports betting and VLTs, benefiting from end of material 486 COVID-related restr
Slide 22: Segmental business highlights – Italy
Segmental business highlights – Italy Stable performance, in line with recent quarters • Solid revenue and EBITDA broadly in line with Revenue, €m previous two quarters (15%) • Slight revenue decline year-on-year due to exceptionally strong performance in H1 2021 129 134 134 124 124 120 116 113 113
Slide 23: Strong free cashflow generation
Strong free cashflow generation Reflects asset light business model and high profitability • Clean EBITDA with only small adjustments Pro-rata basis1 • Consistently low capex requirements Adjusted EBITDA CAGR 41.0% 34.3% 52.7% 51.0% 28.8% • Key cash flow items in Q2 2022: 147 185 86 54 180 – Allwyn
Slide 24: Pro-rata net leverage (pre-IFRS 16 basis)
Pro-rata net leverage (pre-IFRS 16 basis) De-leveraging continues despite M&A investments, net cash / negligible net debt position at all key operating entities As of 30 June 2022, Pre-IFRS16 Basis € millions Austria Czech Republic Greece and Cyprus Italy Corporate1 Total 100% basis LTM Adjusted EBI
Slide 25: Key financing transactions in Q2
Key financing transactions in Q2 Continuing to capitalise on strong financial, operational and strategic momentum and further strengthen liquidity Allwyn International • In June 2022 we signed an increase of our syndicated loan by €180m – Term loan facilities were increased by €107 million to €435m
Slide 26: Update on Current Trading
Update on Current Trading allwyn
Slide 27: Update on current trading
Update on current trading Our business continues to perform well despite weaker general consumer sentiment 1 COVID-19 • All our businesses are currently operating without material impact from COVID-19 related restrictions 2 War in Ukraine • No material impact - we do not have any operations in Ukrai
Slide 28: Thank you
Thank you allwyn
Slide 29: Appendix
Appendix allwyn
Slide 30: Summary of adjustments to EBITDA
Summary of adjustments to EBITDA Standalone, 100% (€m) EBITDA Adjustments Breakdown Operating EBITDA 2019 2020 2021 Q1 2022 Q2 2022 2019 2020 2021 Q1 2022 Q2 2022 Austria adjustments Austria 211 147 232 53 73 Casino Linz insurance gain + restructuring non- Czech Republic 95 84 107 29 31 -- (4) (1) -
Slide 31: Dividends and distributions
Dividends and distributions Ownership 2019 2020 2021 H1 2022 €m At end of period Dividends and cash upstreamed – 100% basis Austrian Lotteries 9.5%1 120 177 91 120 CASAG 59.7% 15 - - - LottoItalia 32.5% 351 237 316 275 OPAP 49.0%2 165 420 222 - SAZKA 100.0% 19 38 81 49 Dividends and cash upstreamed
Slide 32: Capital structure overview
Capital structure overview As of 30 June 2022 € millions, Q2’22 (Pre-IFRS16) Amount x LTM Adj. EBITDA1 Pro-rata cash and cash equivalents (798.2) Pro-rata subsidiary debt 458.8 Pro-rata priority net debt2 (339.4) (0.5x) Syndicated loan (Term Loans and RCF) 432.2 CZK6bn 5.2% Czech Notes 243.8 €300m 4
Slide 33: Alternative performance measures
Alternative performance measures This presentation includes non-IFRS performance measures, including Net gaming revenue (“NGR”), Operating EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Capex, Adjusted Free Cash Flow (“Adjusted FCF”), Cash conversion and pro rata financial information. Please refe
Slide 34: 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
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