Allwyn Ag · ATHEX:ALWN
Allwyn — Allwyn International a.s. — Q1 2022 Earnings Presentation
36 slides from Allwyn's earnings presentation, Jun 16, 2022
Slide 1: Allwyn International a.s. Q1 2022 Results
Allwyn International a.s. (formerly SAZKA Group a.s.) Q1 2022 Results 16 June 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: Presentation basis and entity renaming
This presentation includes financials of Allwyn International a.s. (formerly SAZKA Group a.s.) Allwyn Entertainment AG, the entity expected to be listed on the NYSE, will be the parent company of Allwyn International Future Listing Entity • Legal names of certain entities have been changed in connec
Slide 6: Q1 2022 highlights
Q1 2022 highlights Strong financial performance demonstrating strong organic growth and recovery post-pandemic • Strong financial performance in Q1 2022 due to fully opened physical retail and organic growth Consolidated GGR – Gross Gaming Revenue significantly above pre-pandemic levels +65.2% vs Q1
Slide 7: 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 Q1 Austria GGR (Lotteries and Online Gaming)1,2 2022, including online sales of lottery products and iGaming GGR (€m) / Online share of total (%
Slide 8: 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 >1m active online users as of April 2022 961 934 +43.7% CAGR 620 +14.1% +35.2
Slide 9: Growing de-anonymised lottery share in physical retail
Growing de-anonymised lottery share in physical retail Successful loyalty programs rolled out across our geographies • Leveraging prior experience in the Czech Republic and Greece and Cyprus, we Czech Republic: de-anonymised lottery share(%) launched our retail loyalty programme in Austria in Q1 202
Slide 10: Q1 2022 product launches and innovation across channels
Q1 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 11: Key strategic developments in Q1 2022
Key strategic developments in Q1 2022 We were selected as Preferred Applicant to run the UK National Lottery 1 UK National Lottery bid • In March 2022, selected by the UK Gambling Commission as Preferred Applicant for the fourth UK National Lottery licence that will run for 10 years from February 20
Slide 12: Key developments after the end of the first quarter
Key developments after the end of the first quarter We continue to execute our growth strategy 1 UK National Lottery bid • Camelot and certain other parties have brought claims against the Gambling Commission challenging its award decision • On 11-12 May 2022, the Gambling Commission’s application t
Slide 13: We share our success with local communities
We share our success with local communities – selected Q1 2022 activities Funding of good causes is an integral part of our ESG strategy • Delivery trucks were sent with supplies such as durable food, basic hygiene items, mattresses and medical supplies Help to • Sazka organized sports Saturdays in
Slide 14: Financial Update
Financial Update allwyn
Slide 15: Q1 2022 financial highlights
Q1 2022 financial highlights Strong performance reflecting more normalized operational environment • Strong Q1 financial performance reflecting limited COVID-19 Consolidated Consolidated GGR related restrictions in reopened physical retail business and continued organic growth +65.2% GGR vs Q1 ‘21 –
Slide 16: Q1 2022 financials summary
Q1 2022 financials summary Strong performance continued in Q1 despite COVID-related restrictions impacting some businesses Consolidated financials Pro-rata basis1 NGR NGR 534 Growth 348 Growth 100.3% 66.8% 267 283 209 214 Q1'20 Q1'21 Q1'22 Q1'20 Q1'21 Q1'22 Adjusted EBITDA Adjusted EBITDA 51.9% 51.0
Slide 17: Consolidated P&L
Consolidated P&L • Strong GGR growth reflects: € millions Q1 ‘22 Q1’ 21 ∆ vs. Q1 ’21 – Lower impact from COVID-19 related GGR 869 526 65% restrictions on the physical retail channel in Greece and Cyprus and the casinos in Austria 534 283 89% NGR and internationally Revenue from non-gaming activities
Slide 18: Segmental business highlights – Austria
Segmental business highlights – Austria Back to pre-pandemic levels • Strong performance in casinos in Austria and Gross Gaming Revenue, €m internationally, despite certain limited COVID-19 restrictions and lower tourist footfall – More than compensated for weaker year-on- year performance in numeri
Slide 19: Segmental business highlights – Czech Republic
Segmental business highlights – Czech Republic Continuing strong online growth and resilient physical retail • Solid topline growth and strong profitability with Gross Gaming Revenue, €m GGR and EBITDA substantially above pre- pandemic levels • Strong growth in iGaming (+42 year-on-year) and sports
Slide 20: Segmental business highlights – Greece and Cyprus
Segmental business highlights – Greece and Cyprus Strong growth in topline year-on-year, reflecting higher sales via the physical retail channel as well as continued online growth at Stoiximan • Strong growth in topline (+15% vs Q1-19) and Gross Gaming Revenue, €m profitability driven by sales via t
Slide 21: Segmental business highlights – Italy
Segmental business highlights – Italy Solid start to the year • Solid revenue and EBITDA in line with previous Revenue1, €m two quarters • Slight revenue decline year-on-year due to exceptionally strong performance in H1 2021 134 134 • Stable high profitability and cashflow generation 129 116 124 11
Slide 22: Pro rata organic NGR development during COVID pandemic
Pro rata organic NGR development during COVID pandemic Strong performance in segments not impacted by COVID, with solid recovery in COVID impacted segments Segments with limited impact from COVID More impacted segments Combined performance Organic NGR1, €m Organic NGR1, €m Organic NGR1, €m % Growth
Slide 23: Strong free cashflow generation
Strong free cashflow generation Reflects asset light business model and high profitability Consolidated financials Pro-rata basis1 Adjusted EBITDA Adjusted EBITDA 51.9% 51.0% 50.3% 45.2% 49.1% 49.5% CAGR CAGR 39.4% 35.2% 269 172 138 144 94 105 267 170 110 133 91 98 Q1'20 Q1'21 Q1'22 Q1'20 Q1'21 Q1'2
Slide 24: Pro-rata net leverage (pre-IFRS 16 basis)
Pro-rata net leverage (pre-IFRS 16 basis) Strong de-leveraging throughout the year As at 31 March 2022, Pre-IFRS16 Basis Greece and € millions Austria Czech Republic Italy Corporate1 Total Cyprus 100% basis Adjusted EBITDA2 216 106 674 395 (7) 1,382 Cash and cash equivalents and short term financial
Slide 25: Key financing transactions
Key financing transactions Capitalising on strong financial, operational and strategic momentum Q1 2022 Allwyn International • In February 2022, Allwyn International issued €600m of senior secured notes (“SSNs”) split between a €200m tap of the outstanding 3.875% SSNs due 2027 and €400m of new float
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 • Remaining material COVID-19 related restrictions have been lifted or expected to be lifted during Q2-22 2 War in Ukraine • No material impact - we do not have any operations in Ukr
Slide 28: Thank you
Thank you allwyn
Slide 29: Appendix
Appendix allwyn
Slide 30: NYSE listing via merger with CRHC
NYSE listing via merger with CRHC Transaction overview Transaction summary • NYSE-listed SPAC with $828m1 cash in trust, further supplemented by a PIPE of more than $350m • On closing, Allwyn Entertainment AG (the company to be listed) will be the parent company of the Group • Intends to effect a bu
Slide 31: Allwyn selected as preferred applicant for UK National Lottery licence
Allwyn selected as preferred applicant for UK National Lottery license tender in March 2022 UK National Lottery Overview1 Camelot UK Lottery Key Financials2 • State-licensed national lottery; established in the UK in 1994 NGR (£m) • Currently operated by Camelot UK Lotteries; licence was granted in
Slide 32: Summary of adjustments to EBITDA
Summary of adjustments to EBITDA Standalone, 100% (€m) EBITDA Adjustments Breakdown Operating EBITDA 2019 2020 2021 Q1 2022 2019 2020 2021 Q1 2022 Austria adjustments Austria 211 147 232 53 Casino Linz insurance gain + restructuring non- Czech Republic 95 84 107 29 -- (4) (1) -- personnel costs Gree
Slide 33: Dividends and distributions
Dividends and distributions Ownership 2019 2020 2021 Q1 2022 €m At end of period Dividends and cash upstreamed – 100% basis Austrian Lotteries 9.5%1 120 177 91 – CASAG 59.7% 15 – – – LottoItalia 32.5% 351 237 316 251 OPAP 48.4%2 165 420 222 – SAZKA 100.0% 19 38 81 10 Dividends and cash upstreamed –
Slide 34: Capital structure overview
Capital structure overview As of 31 March 2022 € millions, Q1’22 (Pre-IFRS16) Amount x LTM Adj. EBITDA1 Pro-rata cash and cash equivalents (806.7) Pro-rata Subsidiary debt 477.8 Subsidiary pro-rata net debt2 (328.9) (0.5x) Syndicated loan (Term Loans and RCF) 425.4 CZK6bn 5.2% Czech Notes 243.9 €300
Slide 35: 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 36: 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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