Allwyn Ag · ATHEX:ALWN
Allwyn — Allwyn International a.s. — Q1 2024 Earnings Presentation
42 slides from Allwyn's earnings presentation, Jun 7, 2024
Slide 1: Allwyn International a.s. Q1 2024 Results
Allwyn International a.s. Q1 2024 Results 7 June 2024 For further information on our company, please visit our website: allwynentertainment.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: Q1 2024 highlights
Q1 2024 highlights 2024 has started well • Solid financial performance Consolidated Total Revenue – Total Revenue - Key driver of growth was full quarter contribution from United Kingdom segment1 €2,109m +28% / +3% vs Q1’23 vs Q1’23, excl. United - Solid GGR growth excluding United Kingdom, +4% YoY
Slide 6: Strong online momentum continues alongside resilience in physical retail
Strong online momentum continues alongside resilience in physical retail… Online share up or stable YoY across all markets in Q1’24, with significant growth vs. pre-Covid Austria GGR (excl. VLTs and Casinos)1 GGR (€m) / Online share of total (%) 160 172 166 158 148 152 156 140 144 77 74 77 85 85 36
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) 1,186 29% 28% 1,109 27% 1,041 986 948 23% 873 792 717 17%
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 – Q1 2024 NEW Q1 New front-end for Lotto syndicate play NEW Q1 Trials of new permanent points o
Slide 9: Product launches and innovation (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 Key new product launches after Q1 2024 2023 Pilot of self-service Apr 2024 Launch of “Best Gift
Slide 10: Q1 2024 key strategic developments
Q1 2024 key strategic developments Successful start of next licence to operate The National Lottery in the UK, and planned acquisition of stake in IWG 1 UK: Successful start of next licence for The National Lottery • Allwyn UK successfully commenced operation of the next ten-year licence on 1 Februa
Slide 11: Key strategic developments after quarter end
Key strategic developments after quarter end MOU with IGT Lottery for upcoming Italy licence tender 1 Italy: Memorandum of understanding to maintain partnership for upcoming licence tender • Allwyn and IGT Lottery have entered into a MOU regarding Lottoitalia, the JV responsible for managing the Ita
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 Q1 2024 Social value Equality Community • As part of Allwyn UK’s pledge to • In Austria, Equal Play Day was held • The Czech Republic launched a
Slide 13: Financial Update
Financial Update allwyn
Slide 14: Q1 2024 financial highlights
Q1 2024 financial highlights Solid financial performance in Q1 • Total Revenue +28% YoY Consolidated Total Revenue – Solid growth in existing geographies and full quarter contribution from United Kingdom segment and Allwyn LS Group €2,109m +28% / +3% vs Q1’23 vs Q1’23, excl. United – Total Revenue e
Slide 15: Consolidated P&L
Consolidated P&L • Total Revenue +28% YoY, Net Revenue +16% YoY Consolidated P&L (€m) Q1’23 Q1’24 ∆ vs. Q1’23 – Gaming taxes/Good Causes contribution as a % of GGR increased owing to mix effects related to full quarter Total Revenue 1,647 2,109 +28% contribution from United Kingdom Segment Of which:
Slide 16: Consolidated P&L (excluding UK segment and Allwyn LS Group)
Consolidated P&L (excluding UK segment and Allwyn LS Group) • Total Revenue +3% YoY excluding United Kingdom segment and Consolidated P&L (€m) Allwyn LS Group Q1’23 Q1’24 ∆ vs. Q1’23 - GGR growth +4% YoY, with solid growth in Austria, Greece and Cyprus; strong growth in Czech Republic part offset by
Slide 17: Business highlights – Austria
Business highlights – Austria Solid progress in GGR • GGR increased 3% YoY in Q1 Gross Gaming Revenue – Strong online performance (+12% YoY), €m driven by iGaming as well as Numerical +3% Lotteries, which benefited in part from EuroDreams (the first pan-European annuity game, launched November 2023)
Slide 18: Business highlights – Czech Republic
Business highlights – Czech Republic Continued strong top line growth in Q1, driven by Numerical Lotteries and iGaming • Strong organic top line growth continued in Q1 Gross Gaming Revenue – Reported numbers impacted by FX headwind €m cFX +10% +5% – Strong performance from Numerical Lotteries (+6% Y
Slide 19: Business highlights – Greece and Cyprus
Business highlights – Greece and Cyprus Solid top line growth in Q1 • GGR +4% benefiting from strong online Gross Gaming Revenue momentum €m – Online GGR +15% YoY, supported by +4% continuing digital focus and enhanced proposition 581 550 – Solid growth overall notwithstanding 527 498 499 481 541 45
Slide 20: Business highlights – United Kingdom
Business highlights – United Kingdom Successful start to new licence on 1 February 2024 • Q1 2023 includes an additional week compared with Q1 2024, owing Gross Gaming Revenue to FY 2023 being a 53-week year in the previous reporting of the United Kingdom segment €m cFX, comparable • Q1 2023: United
Slide 21: Business highlights – Italy
Business highlights – Italy Strong start to the year • Strong financial performance in Q1 Net Revenue – Net Revenue +6% YoY €m +6% – Adjusted EBITDA +5% YoY • Key details relating to next licence tender announced 128 122 124 116 121 117 116 113 108 – €1bn minimum upfront licence fee – Three tranches
Slide 22: Strong Adjusted free cash flow generation
Strong Adjusted free cash flow generation Reflects asset light business model and high profitability • Higher EBITDA adjustments vs. prior years primarily relates to Consolidated FCF (€m) expensing of certain costs associated with start of next 10-year licence period in UK and related transition cos
Slide 23: Cash conversion
Cash conversion Simplified consolidated cash flow bridge for Q1 2024 (€m) Includes partial reversal of working capital inflow in Q4’23 / seasonal effects 358 316 259 75 (370) (60) (45) (76) (217) (100) (316) Includes €62m relating to semi-annual coupon payments on certain bonds Operating Dividends f
Slide 24: Leverage (post-IFRS 16 basis)
Leverage (post-IFRS 16 basis) As of 31 March 2023, post-IFRS 16, €m Consolidated Adjusted EBITDA 1,496 Cash and cash equivalents (1,411) Gross debt 4,355 Leases 152 Net debt (incl. leases) 3,096 Consolidated Net Debt / Adjusted EBITDA 2.1x Consolidated priority Net Debt / Adjusted EBITDA (0.4)x Cons
Slide 25: 2024 key financing transactions in Q1 2024
2024 key financing transactions in Q1 2024 Pro-actively managing our capital structure, benefiting from access to diversified sources of funding Q1 2024: Allwyn International • In February, provided a loan of €250m to parent company, Allwyn AG, for further distribution to its shareholder • In March,
Slide 26: 2024 key financing transactions after quarter end
2024 key financing transactions after quarter end Pro-actively managing our capital structure, benefiting from access to diversified sources of funding After quarter end: Allwyn International • In April 2024, provided a loan of €50m to parent company, Allwyn AG, for further distribution to its share
Slide 27: Current Trading and Summary
Current Trading and Summary 27
Slide 28: 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 an
Slide 29: Summary
Summary A solid first quarter 1 2024 has started well, with solid financial performance in Q1 2 Ongoing delivery of organic growth initiatives, including exciting launch of Eurojackpot in Greece and developments in loyalty programmes 3 Further progress in inorganic growth strategy, including key mil
Slide 30: Q&A
QE&A allwyn
Slide 31: Appendix
Appendix allwyn
Slide 32: Diversified capital structure across multiple instruments
Diversified capital structure across multiple instruments with access to EUR, USD and local markets Debt overview as of 31 March 2024 Split by Fixed / Floating Split by Currency x LTM Adj. Amount (€m) 3% Consol. EBITDA 15% Consolidated Subsidiary Net Debt / (Cash) (514) Out of 15% of Subsidiary Leas
Slide 33: No significant maturities until 2027 and ample available liquidity
No significant maturities until 2027 and ample available liquidity Debt maturity profile as of 31 March 2024 (€m) Available facilities as of 31 March 2024 (€m) Capacity Drawn Undrawn Weighted average Allwyn International life: 4.0 years 250 Allwyn International RCF 300 0 300 400 647 665 Refinancing
Slide 34: Q1 2024 key financing transactions - summary
Q1 2024 key financing transactions - summary Changes in gross debt during Q1 2024 Principal amount of gross debt as of 31 December 2023 (€m) 4,106 Syndicated bank loan – drawings 240 FX adjustments 12 Principal amount of gross debt as of 31 March 2024 (€m) 4,358 Book value adjustments (3) Consolidat
Slide 35: Pro rata net leverage (pre-IFRS basis)
Pro rata net leverage (pre-IFRS 16 basis) As of 31 March 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 267 122 727 140 26 391 483 (13) Cash and cash equivalents and short-term (264) (50
Slide 36: Dividends and distributions
Dividends and distributions Segment or equity Interest at end of 2019 2020 2021 2022 2023 Q1’23 Q1’24 €m method investee March 2024 Dividends and cash upstreamed – 100% basis Austrian Lotteries 9.5%1 120 177 91 120 114 - - Austria CASAG 59.7% 15 - - 45 130 - 137 SAZKA Czech Republic 100.0% 19 38 81
Slide 37: Q1 financials - five-year summary
Q1 financials - five-year summary Consolidated basis (€m) Pro rata basis (€m)1 Net Revenue CAGR Net Revenue CAGR +16% +34% +10% +40% 941 811 794 873 579 306 374 295 230 226 Q1'20 Q1'21 Q1'22 Q1'23 Q1'24 Q1'20 Q1'21 Q1'22 Q1'23 Q1'24 Adjusted EBITDA CAGR Adjusted EBITDA CAGR +27% +31% 46.9% 47.2% 46.
Slide 38: 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 2019 2020 2021 2022 2023 Q1’24 Casino Linz insurance gain + restructuring non-personnel costs - (4) (1) - - - Austria 211 147 232 266 278 69 Argentina arbitration gai
Slide 39: Q1 2024 Adjusted EBITDA build up
Q1 2024 Adjusted EBITDA build up Consolidated Adjusted EBITDA (€m) Q1’23 Q1’24 Austria 65.6 65.4 Czech Republic 32.4 33.8 Greece and Cyprus 196.5 191.5 United Kingdom 20.4 17.8 Allwyn LS Group 1.6 8.6 Italy (share of net profit) 17.2 18.6 1 Other 13.9 26.2 2 Corporate (0.9) (4.1) Consolidated Adjust
Slide 40: 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 41: 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 42: 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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