Allwyn Ag · ATHEX:ALWN
Allwyn — Allwyn International a.s. — FY2022 Earnings Presentation
42 slides from Allwyn's earnings presentation, Apr 3, 2023
Slide 1: Allwyn International a.s. FY 2022 Results
Allwyn International a.s. FY 2022 Results 3 April 2023 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 Appendix 3
Slide 4: Business and Strategic Update
Business and Strategic Update 4
Slide 5: FY 2022 highlights
FY 2022 highlights Strong financial performance and continued execution of growth strategies • Record financial performance Total Revenue – Total Revenue growth primarily organic, plus some impact from COVID-19 in comparative period – Quarterly GGR > €1 billion for the first time in Q4 €3,988m +24%
Slide 6: Strong online growth with resilience in physical retail
Strong online growth with resilience in physical retail… Almost half of GGR generated online in the Czech Republic Online Share of GGR Austria GGR (Lotteries and Online Gaming)1,2 Q4’19 Q4’22 GGR (€m) / Online share of total (%) 183 178 179 186 183 169 161 165 164 153 156 156 +13%1,2 148 143 149 150
Slide 7: De-anonymised share of physical retail growing
… and de-anonymised share of physical retail 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) 27% 873 23% 792 717 687 17% 599 13% 463 355 7% 4% 2017 201
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 revitalized products / experiences – FY 2022 Digitalizing physical retail – FY 2022 NEW Lotto and EuroMillions gift cards NEW Beac
Slide 9: FY 2022 key strategic developments
FY 2022 key strategic developments Significant progress in inorganic growth strategy, including award of the UK National Lottery licence 1 Increased shareholding in OPAP • Increased shareholding to 50.1% (+9.5% since December 2021) for total consideration of €523m • Achieved through acquisition of l
Slide 10: Key strategic developments after year end
Key strategic developments after year end Significant progress in inorganic growth strategy with lotteries footprint extended to seven markets 1 Acquired Camelot UK • Operator of UK National Lottery currently and since inception in 1994 • Supports successful delivery of National Lottery transition a
Slide 11: UK: National Lottery licence win and acquisition of Camelot UK
UK: National Lottery licence win and acquisition of Camelot UK Adding another high quality business to our portfolio 1 Allwyn wins the UK National Lottery licence EBITDA (£m) 1,2 CAGR: 142 140 139 5% • Awarded the UK National Lottery Licence in September 2022, for 115 115 10-year period commencing F
Slide 12: US, technology and content: Camelot Lottery Solutions Group
US, technology and content: Camelot Lottery Solutions Group Entry to US market through acquisition of successful operator with strategic technology and content assets 1 Allwyn acquires Camelot LS Group Products & Services Offered • Marks Allwyn's entry into the large US lottery market Operate and •
Slide 13: We introduced our new group-wide ESG strategy
We introduced our new group-wide ESG strategy… Unifying our pre-existing ESG activities across our different markets 1 2 Key elements of our approach to responsible gaming / Playing Responsibly Partnering for Impact safer gaming Safer gaming & player protection • Design – A risk-based design approac
Slide 14: Continue to share our success with local communities
…and continue to share our success with local communities Funding of good causes is an integral part of our ESG strategy Environment Sport Health • Wald4Leben project organized by • SAZKA Olympic Multi-contest • Allwyn 3-year partnership, from 2023, CASAG and Austrian Lotteries’ program for schools
Slide 15: Financial Update
Financial Update allwyn
Slide 16: FY 2022 financials summary
FY 2022 financials summary Compounding revenue growth with high EBITDA margin and strong FCF conversion Consolidated basis (€m) Pro-rata basis (€m)1 Net Revenue CAGR Net Revenue CAGR 20% 21% 2,531 1,887 1,994 1,458 1,356 1,250 1,059 961 2019 2020 2021 2022 2019 2020 2021 2022 3 Adjusted EBITDA CAGR
Slide 17: Q4 2022 financial highlights
Q4 2022 financial highlights Strong performance reflecting resilient business model • Sustained top-line growth Total Revenue – Resilience despite backdrop of weaker consumer sentiment €1,108m +13% – Reflects organic growth: no impact from consolidation of vs Q4 ‘21 acquisitions and limited COVID-19
Slide 18: Q4 2022 financials summary
Q4 2022 financials summary Strong net revenue growth momentum continued in Q4 Consolidated basis (€m) Pro-rata basis (€m)1 Net Revenue CAGR Net Revenue CAGR 19% 17% 708 554 624 422 345 371 365 237 Q4'19 Q4'20 Q4'21 Q4'22 Q4'19 Q4'20 Q4'21 Q4'22 Adjusted EBITDA CAGR Adjusted EBITDA CAGR 20% 20% 41.1%
Slide 19: Consolidated P&L
Consolidated P&L Consolidated P&L (€m) • Strong organic top-line growth, with momentum ∆ vs. Q4 ∆ vs. Q4'22 Q4'21 2022 2021 sustained in Q4 ’21 2021 Total Revenue 1,108 982 13% 3,988 3,221 24% – Earlier periods include some benefit from COVID- 19 impacted comparable period; limited impact on Q4 comp
Slide 20: FY 2022 performance by segment
FY 2022 performance by segment Strong top-line performance and broadly stable margins across most markets FY’21 and FY’22 Gross Gaming Revenue (100% Basis) €m 1,939 1,419 1,510 1,156 408 453 500 459 FY FY FY FY FY FY FY FY 2021 2022 2021 2022 2021 2022 2021 2022 Austria Czech Republic Greece & Cypru
Slide 21: Segmental business highlights – Austria
Segmental business highlights – Austria Strong top-line performance continues • Strong overall growth momentum Gross Gaming Revenue – Strong recovery in revenues in casinos post €m pandemic (impacted by COVID-19 restrictions in Q4 2021) – iGaming GGR +22% YoY 388 • Key drivers of lower margin in Q4-
Slide 22: Segmental business highlights – Czech Republic
Segmental business highlights – Czech Republic Strong online growth and continued progress in physical retail • Continued topline growth and strong profitability Gross Gaming Revenue with GGR and EBITDA increasing double-digit YoY €m – Strong growth in iGaming (+35% YoY) contributed to overall growt
Slide 23: Segmental business highlights – Greece and Cyprus
Segmental business highlights – Greece and Cyprus Strong double-digit topline growth • Strong growth topline (+11% year-on-year) Gross Gaming Revenue – Good growth across all product categories €m – Strong growth in Lotteries 541 499 486 457 462 449 442 396 384 392 392 391 328 231 170 180 Q1'19 Q1'2
Slide 24: Segmental business highlights – Italy
Segmental business highlights – Italy Positive dynamic in Q4 • Weaker year-on-year performance in earlier part Revenue of year reflecting €m – Very strong comparative period – Some COVID-19 related restrictions • More positive trend in Q4 129 134 116 124 134 124 120 122 113 113 115 117 103 107 108 –
Slide 25: Strong free cashflow generation
Strong free cashflow generation Reflects asset light business model and high profitability • Clean EBITDA with only small adjustments Pro-rata basis (€m)1 • Consistently low ongoing capex requirements in operating Adjusted EBITDA CAGR 23% businesses 39.6% 38.0% 47.7% 41.4% 781 596 – Somewhat higher
Slide 26: Record year for distributions to Allwyn International
Record year for distributions to Allwyn International • Strong cashflow generation in operating entities supports Adj FCF to Dividends significant increase in cash upstreamed Pro rata Adj. EBITDA – Capex CAGR • Major increases in distributions from Austria and Greece 23% 723 • Substantial repayment
Slide 27: Pro-rata net leverage (pre-IFRS 16 basis)
Pro-rata net leverage (pre-IFRS 16 basis) Stable leverage, net cash / negligible net debt position at all key operating entities 1 As at 31 December 2022, Pre-IFRS16 Basis 2 3 € millions Austria Czech Republic Greece & Cyprus Italy Other Corporate Total 100% basis LTM Adjusted EBITDA2 246 116 721 37
Slide 28: FY 2022 key financing transactions
FY 2022 key financing transactions Pro-actively managing our capital structure Allwyn International • February 2022: – Issued €200m of additional 3.875% senior secured notes due 2027 at 99.0% (tap) – Issued €400m of senior secured floating rate notes due 2028 at 99.5% with a margin of 4.125% • March
Slide 29: FY 2022 key financing transactions (continued)
FY 2022 key financing transactions (continued) Pro-actively managing our capital structure OPAP – January 2022: Repaid a €100m RCF; the revolving credit facility remains available – February 2022: Repaid a €10m RCF; the revolving credit facility remains available – March 2022: Early repayment of a €
Slide 30: Key financing transactions after year end
Key financing transactions after year end Pro-actively managing capital structure Q1 2023 - Allwyn International • January 2023: • Holders of CZK 6.0 billion bonds (“Czech Bonds”) approved their transfer from the Company to Allwyn Financing Czech Republic 2 a.s., a 100%-owned subsidiary of the Compa
Slide 31: Update on Current Trading and Summary
Update on Current Trading and Summary 31
Slide 32: Update on current trading
Update on current trading Our business continues to perform well despite weaker general consumer sentiment; trading since the start of the year has been broadly in line with our expectations at the start of the year 1 War in Ukraine • No material impact - we do not have any operations in Ukraine, Ru
Slide 33: Summary
Summary Continuing to compound growth and generate strong free cash flow 1 Sustained strong financial performance notwithstanding weaker general consumer sentiment, reflecting delivery on key initiatives and benefits of diversification 2 Overall, successful execution balancing organic and inorganic
Slide 34: Q&A
QE&A allwyn
Slide 35: Appendix
Appendix allwyn
Slide 36: Dividends and distributions
Dividends and distributions Ownership 2019 2020 2021 2022 €m At end of December 2022 Dividends and cash upstreamed – 100% basis Austrian Lotteries 9.5%1 120 177 91 120 CASAG 59.7% 15 - - 45 LottoItalia 32.5% 351 237 316 321 OPAP 50.1%2 165 420 222 599 SAZKA 100.0% 19 38 81 84 Dividends and cash upst
Slide 37: Capital structure overview
Capital structure overview Balanced capital structure with committed funding available to cover near-term maturities1 Note: Capital structure presented as of December 2022, excluding post reporting events as follows: (i) €160m drawn under the RCF facility to fund the Camelot UK purchase consideratio
Slide 38: Summary of adjustments to EBITDA
Summary of adjustments to EBITDA Standalone, 100% (€m) EBITDA Adjustments Breakdown Operating EBITDA 2019 2020 2021 2022 2019 2020 2021 2022 Austria 211 147 232 266 Austria adjustments Casino Linz insurance gain + restructuring non-personnel Czech Republic 95 84 107 120 -- (4) (1) -- costs Greece an
Slide 39: Summary of pro rata Adjusted FCF
Summary of pro rata Adjusted FCF Pro rata to interest at end of each year (€m) Ownership Adjusted EBITDA – pro rata at end 2022 2019 2020 2021 2022 Austria 59.7% 80 79 126 156 Czech Republic 100% 95 82 111 120 Greece and Cyprus 49.84% 132 118 233 364 Italy 32.5% 129 101 133 121 Other -- -- -- 27 Cor
Slide 40: P&L structure
P&L structure Previous P&L presentation New P&L presentation A A Gross Gaming Revenue (GGR) Gross Gaming Revenue (GGR) B B Less: Gaming taxes Other Revenue A B Net Gaming Revenue (NGR) A B Total Revenue C C Other Revenue Less: Gaming taxes A B C Net Revenue A C Of which: Net Gaming Revenue (NGR) Sou
Slide 41: Alternative performance measures
Alternative performance measures 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 and pro rata financial information
Slide 42: 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
Allwyn International a.s. — FY2022 Earnings Presentation on 6ix