Allwyn Ag · ATHEX:ALWN
Allwyn — Allwyn International a.s. — Q3 2022 Earnings Presentation
32 slides from Allwyn's earnings presentation, Dec 9, 2022
Slide 1: Allwyn International a.s. Q3 2022 Results
Allwyn International a.s. Q3 2022 Results 9 December 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: Q3 2022 highlights
Q3 2022 highlights Strong financial performance and strategic milestones in the UK • Strong financial performance continues, demonstrating the resilience of demand for our products Consolidated GGR – GGR and Adjusted EBITDA grew by 10.5% and 10.2% year-on- year, respectively €959m +10.5% – Continuin
Slide 6: Strong online growth with innovation in physical retail
Strong online growth with innovation in physical retail Almost half of GGR generated through the online channel in the Czech republic • Strong online momentum continued in Austria GGR (Lotteries and Online Gaming)1,2 Q3 2022, including online sales of lottery products and iGaming GGR (€m) / Online s
Slide 7: Rapid growth in online customer base continues
Rapid growth in online customer base continues Number of online customers doubled since pre-pandemic Average monthly active online customers per quarter (000)1 Austria Czech Republic Greece and Cyprus +25.5% CAGR 1,013 861 694 +35.6% CAGR +14.1% +24.4% 512 CAGR CAGR 476 394 275 289 262 221 225 243 1
Slide 8: Growing de-anonymised lottery share in physical retail
Growing de-anonymised lottery share in physical retail Loyalty programmes bring the benefits of online to the physical retail channel • Retail loyalty programmes successfully rolled Czech Republic: de-anonymised lottery share(%) out across geographies with constant subscriber growth 27% – Loyalty pr
Slide 9: 9M 2022 product launches and innovation across physical retail and online channels
9M 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 Game Shows NEW Physi
Slide 10: Key strategic developments in Q3 2022 and after the quarter
Key strategic developments in Q3 2022 and after the quarter We continue to execute on our inorganic growth strategies 1 Increase in OPAP economic interest above 50% • In Q3 2022, the Company increased its direct shareholding in OPAP by 1.05% through open market purchases and participation in OPAP’s
Slide 11: Key strategic developments in Q3 2022 and after the quarter
Key strategic developments in Q3 2022 and after the quarter UK to become the sixth market where we operate lotteries 4 Allwyn officially awarded the Fourth Licence to operate the UK National Lottery • In March 2022, Allwyn was selected by the UK Gambling Commission as Preferred Applicant for the fou
Slide 12: We share our success with local communities – selected activities in Q3 2022
We share our success with local communities – selected activities in Q3 2022 Funding of good causes is an integral part of our ESG strategy Health Sports Environment • OPAP Arena officially opened in September. OPAP is official sponsor of • Energy efficiency pilot projects in • CASAG supported “Loos
Slide 13: Financial Update
Financial Update allwyn
Slide 14: Q3 2022 financial highlights
Q3 2022 financial highlights Strong performance reflecting resilient business model • Strong top-line performance driven by organic growth Consolidated Consolidated GGR – Minimal impact from COVID-19 restrictions in Q3-21 GGR +10.5% €959m vs Q3 ‘21 – No impact from consolidation of acquisitions Cons
Slide 15: Q3 2022 financials summary
Q3 2022 financials summary Strong performance continued in Q3 with substantial growth compared to pre-pandemic levels Consolidated basis Pro-rata basis1 NGR CAGR NGR CAGR 22.8% 20.7% 532 588 456 382 316 317 258 217 Q3'19 Q3'20 Q3'21 Q3'22 Q3'19 Q3'20 Q3'21 Q3'22 Adjusted EBITDA CAGR Adjusted EBITDA
Slide 16: Consolidated P&L
Consolidated P&L • Strong organic top-line growth ∆ vs. € millions Q3 ‘22 Q3’ 21 Q3 ’21 • Revenue from non-gaming activities primarily GGR 959 867 11% reflects recovery in casino activity NGR 588 532 10% • Increased contribution from other equity method investees compensates for slightly weaker Reve
Slide 17: Segmental business highlights – Austria
Segmental business highlights – Austria Strong top-line performance across products, cost savings support margins • Strong performance across all products: Gross Gaming Revenue, €m – Strong recovery in revenues at Austrian and international casinos businesses post pandemic – Numerical lotteries GGR
Slide 18: Segmental business highlights – Czech Republic
Segmental business highlights – Czech Republic Continuing strong online growth and resilient physical retail • Continued topline growth and strong profitability Gross Gaming Revenue, €m with GGR and EBITDA substantially above pre- pandemic levels +15% • Strong growth in iGaming (+47% year-on-year) a
Slide 19: Segmental business highlights – Greece and Cyprus
Segmental business highlights – Greece and Cyprus Strong revenue growth across most product categories • Strong growth both in topline (+8% year-on-year) Gross Gaming Revenue, €m and Adjusted EBITDA (+9% year-on-year) – Driven by increased sales across most product categories, in particular iGaming
Slide 20: Segmental business highlights – Italy
Segmental business highlights – Italy Recently slightly weaker performance • Revenue and EBITDA slightly weaker (-6% and -7%, Revenue, €m respectively, year-on-year) • Continuing stable high profitability and cashflow generation (6%) 129 134 134 124 124 120 117 116 113 113 115 108 103 107 55 Q1-19 Q
Slide 21: Strong free cashflow generation
Strong free cashflow generation Reflects asset light business model and high profitability • Clean EBITDA with only small adjustments Pro-rata basis1 • Consistently low capex requirements Adjusted EBITDA CAGR 41.0% 34.3% 52.7% 51.0% 29.0% 204 • Strong FCF across geographies reflected in dividend dis
Slide 22: Pro-rata net leverage (pre-IFRS 16 basis)
Pro-rata net leverage (pre-IFRS 16 basis) De-leveraging continues despite M&A investments, net cash / negligible net debt position at all key operating entities As of 30 June 2022, Pre-IFRS16 Basis € millions Austria Czech Republic Greece and Cyprus Italy Corporate1 Total 100% basis LTM Adjusted EBI
Slide 23: Key financing transactions in Q3 and after the quarter
Key financing transactions in Q3 and after the quarter Pro-actively managing capital structure Q3 2022 - Allwyn International • In July 2022, Allwyn made a scheduled amortization payment of €55m under its syndicated loan After the quarter - Allwyn International • In October 2022, Allwyn obtained Ba2
Slide 24: Update on Current Trading
Update on Current Trading allwyn
Slide 25: Update on current trading
Update on current trading Our business continues to perform well despite weaker general consumer sentiment 1 COVID-19 • All our businesses are currently operating without material impact from COVID-19 related restrictions 2 War in Ukraine • No material impact - we do not have any operations in Ukrai
Slide 26: Thank you
Thank you allwyn
Slide 27: Appendix
Appendix allwyn
Slide 28: Summary of adjustments to EBITDA
Summary of adjustments to EBITDA Standalone, 100% (€m) EBITDA Adjustments Breakdown Operating EBITDA 2019 2020 2021 9m 2021 9m 2022 2019 2020 2021 9m 2021 9m 2022 Austria 211 147 232 151 209 Austria adjustments Casino Linz insurance gain + restructuring non- Czech Republic 95 84 107 81 92 -- (4) (1)
Slide 29: Dividends and distributions
Dividends and distributions Ownership 2019 2020 2021 9M 2022 Q3 2022 €m At end of period Dividends and cash upstreamed – 100% basis Austrian Lotteries 9.5%1 120 177 91 120 - CASAG 59.7% 15 - - 45 45 LottoItalia 32.5% 351 237 316 298 23 OPAP 50.1%2 165 420 222 491 491 SAZKA 100.0% 19 38 81 73 24 Divi
Slide 30: Capital structure overview
Capital structure overview As of 30 September 2022 € millions, Q3’22 (Pre-IFRS16) Amount x LTM Adj. EBITDA1 Pro-rata cash and cash equivalents (755.1) Pro-rata subsidiary debt 469.3 Pro-rata priority net debt2 (285.8) (0.4x) Syndicated loan (Term Loans and RCF) 375.7 CZK6bn 5.2% Czech Notes 242.7 €3
Slide 31: 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. For NGR, Op
Slide 32: 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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