Allwyn Ag · ATHEX:ALWN
Allwyn — SAZKA Group — FY2020 Earnings Presentation
25 slides from Allwyn's earnings presentation, Apr 30, 2021
Slide 1: FY 2020 Results
FY 2020 RESULTS 30 April 2021
Slide 2: Presenters: Robert Chvatal, CEO; Kenneth Morton, CFO
Robert Chvatal, CEO Kenneth Morton, CFO 2
Slide 3: Business and strategic update
Business and strategic update 3
Slide 4: FY 2020 highlights
FY 2020 highlights € millions FY 2020 FY 2019 ∆ ▪ Robust FY20 performance Amounts staked 6,831.4 5,456.8 25% - Highlights the resilience of our businesses in a volatile year GGR 2,018.0 1,906.1 6% - Boosted by consolidation of CASAG and Stoiximan NGR 1,212.5 1,311.1 -8% - Amounts staked +25% and GGR
Slide 5: Quarterly and FY business highlights
Quarterly and FY business highlights GGR and Operating EBITDA by entity (€ millions) and % change vs. 2019 -15% -30% -15% -24% -21% -30% Austria: ▪ GGR and Operating EBITDA reflect strong performance of Austrian Lotteries while casinos impacted by closure and 1,078 fixed employee costs 285 219 303 2
Slide 6: Quarterly and FY business highlights (continued)
Quarterly and FY business highlights (continued) Greece and Cyprus1: GGR and Operating EBITDA by entity (€ millions) and % change vs. 2019 ▪ FY20 GGR -30% and NGR -32% due to agents’ stores and gaming hall closures in end of Q1, Q2 and Q4 -17% -53% -1% -48% -30% -37% ▪ Operating EBITDA -37%, support
Slide 7: COVID – Q4 and current impact summary
COVID – Q4 and current impact summary Q4 ▪ A new wave of COVID restrictions was introduced in October/November mainly impacting our physical retail businesses in Greece and casinos in Austria and internationally ▪ Online sales remained at structurally higher levels, all digital channels continue to
Slide 8: COVID impact summary – first wave vs. current
COVID impact summary – first wave vs. current First wave Current ✓ More selective approach by region Government restrictions ▪ Full lock-downs, extensive restrictions ✓ Focus on supporting economy ✓ More used to “new normal” environment Consumer behaviour ▪ Significant risk aversion ✓ Shift to onlin
Slide 9: Online and digital-only momentum
Online and digital-only momentum Czech Republic – online GGR in CZK Czech Republic– physical retail GGR in thousands CZK thousands ▪ Online – not just a key channel but also a tool to 350,000 16% 30% 800,000 drive growth and player 300,000 700,000 protection through data 250,000 600,000 500,000 200,
Slide 10: Product launches and innovation – FY 2020 and YTD
Product launches and innovation – FY 2020 and YTD ▪ Continuing to grow and New and revitalised products improve our products, channels and technology throughout the year ▪ Successfully implementing NEW special NEW annuity proven innovations across our event draws jackpot game geographies - Digitalis
Slide 11: Product launches and innovation – FY 2020 and YTD (continued)
Product launches and innovation – FY 2020 and YTD (continued…) ▪ Continuing to grow and Online launches New technology and UI improve our products, channels and technology throughout the year ▪ Successfully implementing ONLINE proven innovations across our LAUNCH of geographies NEW in-house jackpot
Slide 12: Key strategic developments
Key strategic developments FY20 ▪ Austria: - In March, we signed a SHA with ÖBAG (Austrian government) - In June, we acquired a 17.19% stake in CASAG taking the shareholding to 55.48%. CASAG has been fully consolidated as a subsidiary from 26 June - In July, plan approved to restructure the casino b
Slide 13: Key strategic developments (continued)
Key strategic developments (continued) Subsequent ▪ Shareholding in OPAP increased to 44.33% (economic interest to 37.30%) through market purchases ▪ In January, we acquired a 4.31% shareholding in CASAG, taking our interest to 59.80% ▪ In March, Apollo’s investment in SAZKA Entertainment was comple
Slide 14: Financial update
Financial update 14 SaZKa GROUP
Slide 15: Consolidated P&L
Consolidated P&L ▪ Consolidated P&L reflects consolidation of CASAG since € millions FY 2020 FY 2019 ∆ Q3 GGR 2,018.0 1,906.1 6% ▪ GGR +6% for FY NGR 1,212.5 1,311.1 -8% ▪ Adjusted EBITDA -11% Operating expenses -1,072.7 -999.1 7% ▪ Adjusted EBITDA margin down only 1.6%, supported by large Share of
Slide 16: P&L analysed excluding CASAG & Stoiximan
P&L analysed excluding CASAG & Stoiximan ▪ Numbers presented excluding CASAG and Stoiximan for € millions FY 2020 FY 2019 ∆ easier comparability GGR 1,404.7 1,906.1 -26% - Consolidated from Q3/Q4 respectively, equity method NGR 913.7 1,311.1 -30% investees previously Operating expenses -814.5 -999.1
Slide 17: LTM pro-rata data
LTM pro-rata data As at 31 December 2020, pre IFRS 16 basis Equity SAZKA Holding € millions OPAP1 CASAG method Total a.s. level2 investees Pro-rata LTM Adjusted EBITDA1 80.7 121.4 69.4 100.9 (14.8) 357.6 Pro-rata net debt (56.8) 191.1 (76.9) (80.7) 1,423.3 1,400.0 Gross debt (100%) (0.0) 1,040.9 152
Slide 18: Key financing transactions
Key financing transactions ▪ Continued to simplify and optimize our capital structure - In February, SAZKA Group issued €300 million 3.875% senior notes due 2027 - In June, CAME drew a €105 million bank loan to fund the acquisition of the stake in CASAG. - In October, OPAP issued a €200 million reta
Slide 19: Dividends and distributions
Dividends and distributions FY 2020 ▪ Strong cash upstreaming from all segments throughout 2020 despite COVID - The Group received €77.1 million in dividends and distributions of share capital from LottoItalia - The Group elected to receive the two dividends paid by OPAP in both January and June as
Slide 20: Thank you!
20 Thank you! SaZKa GROUP
Slide 21: Appendix
Appendix 21 SaZKa GROUP
Slide 22: Apollo investment
Apollo investment ▪ Strategic investment by Apollo funds to support Sazka Group’s global expansion in the lottery and gaming sectors ▪ Apollo is one of the world’s leading investors in gaming and largest alternative investment managers ▪ Effected through an investment into SAZKA Entertainment AG, a
Slide 23: OPAP GGR contribution
OPAP GGR contribution ▪ OPAP paying cash GGR contribution on Lottery and Betting concession revenues at 5% of GGR since mid- October vs 35% previously ▪ The Lottery and Betting Concessions include lottery and keno games and sports betting, but do not include VLTs, scratchcards, or horse racing - ~70
Slide 24: Alternative performance measures
Alternative performance measures This presentation includes non-IFRS performance measures, including amounts staked, Operating EBITDA, Adjusted EBITDA, Operating EBITDA margin and pro rata financial information. Please refer to SAZKA Group’s press release dated the same date as this presentation for
Slide 25: Disclaimer
Disclaimer This presentation was produced by SAZKA Group a.s. This presentation is not to be reproduced or distributed, in whole or in part, by any person other than SAZKA Group a.s. This presentation does not represent an offer, constitute or form part of, and should not be construed as an advertis