Sports Entertainment Acquisition Corp
Sports Entertainment Acquisition — SPAC Merger (April 2021)
48 slides from Sports Entertainment Acquisition's SPAC merger presentation, Apr 26, 2021
Slide 1: Investor Presentation April 2021
Investor Presentation April 2021
Slide 2: Disclaimer
Disclaimer 2 This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the“Business Combination”) between Sports Entertainment Acquisition Corp. (“SEAH”) and SGHC
Slide 3: Disclaimer (cont’d)
Disclaimer (cont’d) 2 Nothing in this Presentation should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results ofsuch forward-looking statements will be achieved. You should not rely on forward-loo
Slide 4: Disclaimer (cont’d)
Disclaimer (cont’d) 2 Industry and Market Data. In this Presentation, SEAH and the Company rely on and refer to certain information and statistics obtained from third-party sources including reports by market research firms and results of peer companies. Neither SEAH nor the Company has independentl
Slide 5: Glossary of Terms
Glossary of Terms 2 Term Definition Super Group Holding company for leading global sports betting and gaming business Betway, a premier online sports betting brand, and Spin, a multi-brand online casino offering. All financial and operational metrics are presented on a pro-forma basis to show a like
Slide 6: Super Group and SEAH Management
Neal MenasheCEO23+ years in the online gaming industryResponsible for the development and execution of the business vision, strategy and growth Richard HassonPresident and COO12+ years in the online gaming industryResponsible for corporate development, strategy and commercial operations Eric Grubman
Slide 7: SEAH Investment Thesis
SEAH Investment Thesis Leading position in sports and entertainment or a related technology and media subsectorLong-term growth prospects (organic & acquisition)Multiple drivers for revenue growth in markets with long-term growth potential Would benefit from extensive SEAH networks and insightsAttra
Slide 8: Uniquely Positioned in the Gaming Universe
Illustrative Gaming Companies Universe World-wide reach and scaleGroup licensed in more than 20 jurisdictions with ~3,500 employees and 2.5m+ monthly active customersDual OfferingHigh growth Betway coupled with cash generative SpinDigital DNAAsset light business model limits capital expenditure and
Slide 9: Proposed Transaction Summary
Proposed Transaction Summary All numbers in USD ($) 9 1 Post-transaction ownership excludes shares subject to earn-out.2. Represents Super Group roll over equity assuming earn-out triggers are achieved. SEAH has agreed to combine with Super Group based on a$4.75 billion pre-money equity valuationAss
Slide 10: Our Vision and Winning Hand
Our VisionTo provide first-class entertainment to the worldwide betting and gaming community 10 Our Winning HandWorld-wide focus…to reach as many customers as possibleGlobal sports brand and multi-brand casino…to drive global awarenessData-driven…to make the best possible decisions in real timeCultu
Slide 11: Key Investment Highlights
Key Investment Highlights Holding company for leading online sports and gaming operators with diversified global footprint Proven ability to enter and profitably launch in new markets Proprietary data & analytics engine drives retention and monetization Poised to benefit from strategic entry into th
Slide 12: Super Group is an Online Juggernaut
Super Group is an Online Juggernaut All numbers in USD ($) 12 1 March 2021.2 Last twelve months ending February 2021. Premier single-brand online sportsbookGlobal footprint & market shareStrategic partnerships with teams and leagues worldwideProfitable and high-growth sports betting offering Premium
Slide 13: Super Group’s Unique Operational Advantage
Super Group’s Unique Operational Advantage Sophisticated behavioral science models coupled with best-in-class technology provide control over the customer ecosystem 13 Data &Analytics Tailored sponsorship and marketing Lower acquisition cost Customized experiences Increased retention, decreased chur
Slide 14: Established Global Footprint
Established Global Footprint All numbers in USD ($) 14 $1.1bnNGR 21%Europe 48% Americas RoW 18% HighlightsOver $42bn in wagers in the last twelve months1Fully scaled operations with ~3,500 employees across 17 in- country teams; product offered in 26 languagesGroup licensed in 23 jurisdictions (exclu
Slide 15: Highly Profitable Online Casino
Highly Profitable Online Casino $1.7bn+ All numbers in USD ($) 15 1 EBITDA to Net Gaming Revenue (NGR) margin for Spin brands. 2022E 2019A 2020A 2021E $1.2bn $1.4bn $1.6bn+ Online Casino Gross Gaming Revenue (GGR) ~34%2021E EBITDAMargin1
Slide 16: High Growth Sports Betting
Sporting events cancelled due to Covid-19 High Growth Sports Betting Sports Betting Gross Gaming Revenue (GGR) ~160%2019A – 2022E GGRGrowth $269m All numbers in USD ($) 16 $331m 2021E 2019A 2020A 2022E $550m+ $700m+
Slide 17: Case Study 1: Proven Ability to Enter New Markets
Case Study 1: Proven Ability to Enter New Markets Super Group companies are experts at launching and scaling in fully licensed new markets Market 1: Gross Gaming Revenue (GGR) Since Market Entry1,2,3~$2.35m GGR per month~$145k GGR permonth 1.0x GGR After 12 Months MarketingGo Live Date 1 -12 MonthsG
Slide 18: Case Study 2: Proven Ability to Enter New Markets
Case Study 2: Proven Ability to Enter New Markets Super Group companies are experts at launching and scaling in fully licensed new markets 1.0x GGR After 12 Months MarketingGo Live Date 1 -12 MonthsGGR Growth GGR After 24 Months 13 - 24 MonthsGGR Growth 7.9x 10.3x 10.3x increase in revenue 24 months
Slide 19: Super Group is Highly Technologically Agile
Super Group is Highly Technologically Agile Super Group Simplified Technology Stack Technology Stack HighlightsProprietary data and analytics engine is overlaid across all core technology stacks regardless of ownershipEnsures accuracy, uniformity, and robustness of dataKey to responsible gamblingSup
Slide 20: Operating Localized Technology Stacks
Operating Localized Technology Stacks 20 Africa EuropeLong-term, exclusive relationships with thirdparty sportsbook technology providers110 strong trading team that cover 24-hour demand globallyProfitability enhanced through risk management systems – stable ~10% trading margin 2020 Betway Global Spo
Slide 21: Data Constantly Optimizes the Customer Journey
Data Constantly Optimizes the Customer Journey Data and analytics provides fully customized, constantly improving customer journey with better unit economics and decreased churn ProductMostly sport ChurnMedium LifestyleActive DepositMedium Customer DNA Data & Analytics Real-time Personalized Offers
Slide 22: Bet Recommendation Engine and Personalized Delivery
Bet Recommendation EngineCustomer-level AI-driven betrecommendations Bespoke Content and Personalized Delivery Exclusive & Enhanced ContentProprietary jackpot games Custom MessagingCustomer-level, in-client messagingbased on live triggers Key to responsible gaming Enhancedcustomer engagement 15 mill
Slide 23: Sponsorships Focus on Single Sports Brand: Betway
Sponsorships Focus on Single Sports Brand: Betway 23 Global in NatureCreates awareness and trustwith the largest possible audience Local in Targeting Builds awareness through events in high consumption markets Personal in ApproachEmotional connectivitykey to retention Sponsorships enhance entertainm
Slide 24: Sponsorships Strategically Target Both Core and Growth Markets
Sponsorships Strategically Target Both Core and Growth Markets Strategic Market Offering Data-driven approach to marketing allows for substantial returns in core markets and investment in high-growth strategically important regions Core regulated marketsHigh brand awarenessHigh ROIHigh marketing spe
Slide 25: Driving Brand Awareness and ROI
95% 92% 83% Betway Brand A Brand B Driving Brand Awareness and ROI 25 1 November – December 2020 Nielsen research piece on sponsorship and brand impact; n=1500 regular online soccer bettors. High Growth Market Case StudyBrazil – strong foothold in high growth soon to be regulated market Regulated Ma
Slide 26: Profitable Customer Acquisition
$60 m $70 m $80 m $90 m $100 m $110 m Profitable Customer Acquisition All numbers in USD ($) 26 1 NGR and EBITDA up to and including February 2021. History trajectories represent the line of best fit for the NGR and EBITDA values of the selected period and are not representative of the individual va
Slide 27: Loyal and Engaged Customer Base
Loyal and Engaged Customer Base All numbers in USD ($) 27 ~40% of Super Group’s 2020 GGRgenerated by customers acquired before 2019 27% 24% 24% 23% 20% 17% 15% 14% 19% 17% 16% 14% 12% 11% 9% 8% 36% 27% 22% 20% 18% 14% 14% 11% 18% 32% 38% 43% 34% 22% 20% 17% 16% 37% 42% 50% GGR by cohort 2020 2017 20
Slide 28: Momentum Driven by Data
Momentum Driven by Data Data is the building block of every decision Super Group companies takeIt guarantees: Data & analytics is an integral part of our DNA – it allows us tomake the right decisions at the right times in the right markets Robustness: All potential variables and scenarios are consid
Slide 29: Data is Central to Super Group’s Safe Gambling Strategy
Data is Central to Super Group’s Safe Gambling Strategy Data is used to provide an engaging entertainment experience in a safe and secure environment as well as identify potential issues Deposit LimitsSet deposit limits for any period of time Take A BreakSet a break period from anything from 24 hour
Slide 30: The Global Online Gaming Market is Growing
The Global Online Gaming Market is Growing $34bn $21bn 2019A 2020P $27bn $40bn $28bn $42bn 2021F $31bn $48bn 2022F $33bn $53bn 2023F $37bn $58bn 2025F 2024F $40bn $62bn $55bn $67bn $71bn $79bn $86bn $95bn $101bn Online CasinoSports Betting Online Betting and Gaming (GGR) Drivers of Growth 1 Regulati
Slide 31: Poised for Significant Future Growth
Poised for Significant Future Growth 1 World Bank total population2 H2 Gambling Capital April 2021, Goldman Sachs research as reported by Innovation Capital I Gaming Newsweekly – Week Ending March 28, 2021 Business model allows Super Group companies to replicate success in new markets 1. Proven succ
Slide 32: Replicating Success in Growth Markets Such as the U.S.
Replicating Success in Growth Markets Such as the U.S. Super Group has executed a binding, definitive agreement to acquire US-based Digital Gaming Corporation (“DGC”), subject to regulatory approvals and other customary closing conditions; DGC is already licensed in multiple U.S. states and is apply
Slide 33: In Focus: Potential to Achieve Significant EBITDA in the U.S.
In Focus: Potential to Achieve Significant EBITDA in the U.S. All numbers in USD ($) 33 Source: Broker research, company filings; Note: Estimates based on Total Addressable Market (“TAM”) models as provided in Initiating Coverage Reports for peers. Estimate for ‘at maturity’ represents the longest d
Slide 34: Financial Highlights – Benefits of Operating Leverage
Financial Highlights – Benefits of Operating Leverage (BAU Model) Estimated Net Gaming Revenue ($bn) 25% historic NGR growth CAGR driven by ability to scale organically in new markets; trend to continue in the future through new market launches and continued growth in existing markets. Super Group w
Slide 35: Opportunities for Further Growth
Opportunities for Further Growth 35 Technology M&A B2C M&A New Market Entry Acquire companies with high value technology stacks Acquire B2C online casino and sports betting companiesCompanies can be large scale, highly synergistic businesses or strategic, region-specific bolt-ons Leverage know-how a
Slide 36: Key Investment Highlights
Key Investment Highlights Holding company for leading online sports and gaming operators with diversified global footprint Proven ability to enter and profitably launch in new markets Proprietary data & analytics engine drives retention and monetization Poised to benefit from strategic entry into th
Slide 37: Company Benchmarking
Company Benchmarking Super ll group
Slide 38: Comparable Company Financial Benchmarking
Comparable Company Financial Benchmarking All numbers in USD ($) 38 Source: Management Financials, Wall Street Research (IBES Consensus Estimates); market data as of 19-Apr-2021. 2020E – 2022E Revenue CAGR 2020E – 2022E EBITDA CAGR 2022E EBITDA Margin Global B2C U.S. B2C 23.1 % 20.2 % 7.3 % 4.0 % 50
Slide 39: Comparable Company Valuation Benchmarking
Comparable Company Valuation Benchmarking All numbers in USD ($) 39 TEV / 2022E Revenue TEV / 2022E EBITDA TEV / 2021E Growth Adj.EBITDA2 1 Global B2C U.S. B2CSource: Management Financials, Wall Street Research (IBES Consensus Estimates); market data as of 19-Apr-2021.Note: Market capitalization is
Slide 40: Appendix
Appendix Su lll group
Slide 41: Financial Information
Financial Information All numbers in USD ($) 41 (in $ millions) FY2019A FY2020A FY2021E FY2022E NGROther Revenue1 $867$43 $1,114$63 $1,500+$80 $1,700+$83 Total Revenue $910 $1,177 $1,580+ $1,783+ % NGR Growth 28.5% 34.6% 13.3% EBITDA $55 $259 $350+ $420+ % NGR Margin% Growth 6.3%n.m. 23.2%369.8% 23.
Slide 42: Risk Factors (1/7)
Risk Factors (1/7) 42 Unless the context otherwise suggests, all references to the “Company,” “we,” “us” or “our” refer to the business and operations of Super Group (SGHC) Limited (“NewCo”), SGHC Limited and itsconsolidated subsidiaries following the proposed transactions with Sports Entertainment
Slide 43: Risk Factors (2/7)
Risk Factors (2/7) 43 We rely on third-party service providers such as (i) third-party providers to validate the identity and identify the location of our customers, (ii) third-party payment processors to process deposits and withdrawals made by our customers into our platforms and (iii) third-party
Slide 44: Risk Factors (3/7)
Risk Factors (3/7) 44 Our business includes significant international operations, and we are likely to be exposed to foreign currency transaction and translation risks. As a result, changes in the valuation of the U.S. dollar in relation to other currencies could have positive or negative effects on
Slide 45: Risk Factors (4/7)
Risk Factors (4/7) 45 Palpable (obvious) errors in the posting of sports wagering odds or event times may occasionally occur in the normal course of business, sometimes for large liabilities. While it is a worldwide standard business practice to void bets associated with palpable errors or to correc
Slide 46: Risk Factors (5/7)
Risk Factors (5/7) 46 We will rely on licenses to use the intellectual property rights of third parties which are incorporated into our products and offerings. Failure to maintain, renew or expand existing licenses may require us to modify, limit or discontinue certain offerings, which could adverse
Slide 47: Risk Factors (6/7)
Risk Factors (6/7) 47 Our growth prospects and market potential will depend on our ability to obtain licenses to operate in a number of regulated jurisdictions and if we fail to obtain such licenses our business, financial condition, results of operations and prospects could be impaired.Our contempl
Slide 48: Risk Factors (7/7)
Risk Factors (7/7) 48 SEAH’s founders have agreed to vote in favor of the Business Combination, regardless of how SEAH’s public stockholders vote.If SEAH is unable to complete the Business Combination with NewCo or another business combination by October 6, 2022 (or such later date as SEAH’s stockho
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