Entain Plc · LSE:ENT

Entain — Merger or Acquisition (June 2023)

14 slides from Entain's merger presentation, Jun 13, 2023

  1. Slide 1: Entain CEE Acquisition of STS

    Entain CEE Acquisition of STS 13 June 2023

  2. Slide 2: STS Acquisition Strategic Rationale

    STS Acquisition Strategic Rationale 1 An exciting opportunity to acquire an attractive asset in a high-growth regulated market within CEE 2 STS is the #1 sports-betting operator in Poland 3 Adding another leading business to Entain CEE, which is expected to provide attractive synergies from our CEE

  3. Slide 3: STS Acquisition Overview

    STS Acquisition Overview • Entain CEE is launching a tender offer to acquire up to 100% of STS, the leading Polish sports-betting operator, at a purchase price of PLN 24.80 a share – valuing the equity value of STS at approximately £750m and the enterprise value at approximately £690m1 • Enterprise

  4. Slide 4: Significant Polish Market Opportunity

    Significant Polish Market Opportunity Poland is a large and increasingly affluent economy1… …with a gaming market growing at a double-digit CAGR in the near term2 $ MM (GGR) +12% #1 31m +24% +23% $1.6bn Largest economy Polish adult Average gambling in CEE population in 2022 spend per adult CAGR (202

  5. Slide 5: STS Is The Leading Player In Poland

    STS Is The Leading Player In Poland… Leading operational performance in a high-growth market… #1 +24% 2m 783k PLN 663m Sports-betting operator in NGR CAGR Registered players Active users NGR Poland (FY20 to FY22) (FY22) (FY22) (FY22) (+19% YoY) (+19% CAGR, FY20 to FY22) …underpinned by a diverse pro

  6. Slide 6: Omnichannel Presence and Innovative Product Offering Driving Strong Active User Growth

    …With Omnichannel Presence and Innovative Product Offering Driving Strong Active User Growth Omnichannel offering led by substantial online business… …with robust active user growth YoY % of NGR1 Active users (k), by year of acquisition c.400 stores - largest 783 Retail player in Poland 23% CAGR 693

  7. Slide 7: STS Has Grown At A High Double Digit CAGR, Demonstrating a Strong Financial Profile

    STS Has Grown At A High Double Digit CAGR, Demonstrating a Strong Financial Profile Net Gaming Revenue (NGR)1 Adjusted EBITDA2 PLN MM PLN MM 663 Would be approx. PLN 24% 1,103 MM under 273 Entain’s NGR definition1 34% 565 216 434 151 175 80 2020 2021 2022 Q1 2023 2020 2021 2022 Q1 2023 Retail Online

  8. Slide 8: STS – the Second Acquisition of a Market Leader By Entain CEE

    STS – the Second Acquisition of a Market Leader By Entain CEE The addition of another leading asset into Entain CEE further multiplies the growth potential of Entain CEE The Juroszek Foundations 22.5%2 67.5% 10%2,3,4 CEE ~$8.6bn TAM Today across 12 CEE markets1 100% 100%4 (1) Data per H2GC for marke

  9. Slide 9: Summary Of Key Equity Placing Terms

    Summary Of Key Equity Placing Terms Placing  Approximately £600m / ~7.9% of issued share capital / 46m of new ordinary shares – primarily to finance the STS acquisition Size (£450m1) as well as to fund further near-term acquisitions  Non-pre-emptive cash placing conducted through an accelerated bo

  10. Slide 10: Continuing to Seize the CEE Opportunity

    Continuing to Seize the CEE Opportunity 1 An exciting opportunity to acquire an attractive asset in a high-growth regulated market within CEE 2 STS is the #1 sports-betting operator in Poland 3 Adding another leading business to Entain CEE, which is expected to provide attractive synergies from our

  11. Slide 11: Appendix

    Appendix

  12. Slide 12: Acquisition of STS – Indicative Deal Financing Summary

    Acquisition of STS – Indicative Deal Financing Summary1 Total tender offer consideration payable = £750m Equity investment in Entain CEE by Juroszek Foundations £160m Net cash consideration payable - Entain plc £450m (75% of net total) Net cash consideration payable – EMMA Capital £140m (25% of net

  13. Slide 13: Disclaimer

    Disclaimer THIS DOCUMENT IS RESTRICTED AND NOT FOR RELEASE, PUBLICATION, FORWARDING OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. THIS DOCUMENT IS N

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