Allwyn Ag · ATHEX:ALWN
Allwyn — SAZKA Group — Q2 2021 Earnings Presentation
27 slides from Allwyn's earnings presentation, Sep 9, 2021
Slide 1: Q2 2021 Results
Q2 2021 RESULTS 9 September 2021
Slide 2: 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: Q2 2021 highlights
Q2 2021 highlights ▪ Strong quarter on year on year and Q2 Q1 ∆ vs Q2 ∆ vs quarter on quarter basis € millions 2021 2021 Q1 '21 2020 Q2 '20 ▪ Good performance of Austrian Lotteries, GGR 740.1 526.3 41% 246.6 200% Czech Republic, Italy and Stoiximan from previous quarters continues NGR 449.1 283.0 59
Slide 5: COVID – Q1 and Q2 2021 impact summary
COVID – Q1 and Q2 2021 impact summary Q1 2021 ▪ POS in the Czech Republic, Austria and Italy open and functional - COVID-related restrictions still in place, however minimal impact on sales via POS network ▪ Substantial impact on physical retail operations in Greece and Cyprus as well as CASAG’s cas
Slide 6: Quarterly business highlights – Austria
Quarterly business highlights – Austria GGR and Adjusted EBITDA (€ millions) and % change vs. PY Austria - consolidated: -7% -23% -8% -17% -10% 11% 446% ▪ Austrian casinos reopened as of 19 May ▪ International casinos all open by end of quarter 285 303 270 ▪ Very encouraging performance after 219 25
Slide 7: Quarterly business highlights – Czech Republic
Quarterly business highlights – Czech Republic GGR and Adjusted EBITDA (€ millions) and % change vs. PY 25% 0% 5% 12% 24% 51% 41% ▪ Consistently strong performance over recent quarters continues ▪ Online (online lotteries and iGaming) have been major driver of growth, 96 96 101 31 77 75 22 30 physic
Slide 8: Quarterly business highlights – Greece and Cyprus
Quarterly business highlights – Greece and Cyprus GGR and Adjusted EBITDA (€ millions) and % change vs. PY Greece and Cyprus - consolidated: -17% -53% -1% -48% -47% 120% 372% ▪ Physical retail operations started up in stages during quarter ▪ Performance after reopening slightly better than during Q3
Slide 9: Quarterly business highlights – Italy
Quarterly business highlights – Italy GGR and Adjusted EBITDA (€ millions) and % change vs. PY -11% -55% -8% -3% 19% 129% 164% ▪ Both Q1 and Q2 have been record quarters ▪ YoY comparison reflects impact of first wave of COVID on Italy in March-May 583 636 627 536 512 108 113 274 43 Q1 '20 Q2 '20 Q3
Slide 10: Online and iGaming momentum
Online and iGaming momentum Austria (excl. casinos and land-based sports betting) 183 186 178 179 169 165 161 148 149 ▪ Online – not just a key 143 channel but also a tool to drive growth and protect 83% 83% 82% 80% 78% 76% 75% 81% 73% players through data 39 39 40 48 75% 47 55 61 54 35 34 24% 25% 2
Slide 11: Product launches and innovation – digitalisation of physical retail in Czech Republic
Product launches and innovation – digitalisation of physical retail in Czech Republic ▪ Deanonymisation of physical retail users % of retail stakes deanonymised 22% 21% – traditionally anonymous - allows us to realise benefits (data, player protection) similar to online user 13% ▪ In the Czech Repub
Slide 12: Product launches and innovation – YTD highlights
Product launches and innovation – YTD highlights New and revitalised products New technology and UI ▪ Continuing to expand and improve our product NEW in-house offering, channels and sports-betting technology across NEW special platform at geographies event draws Stoiximan ▪ Continuing to successful
Slide 13: Q2 ESG update
Q2 ESG update ▪ SAZKA a.s. donated CZK 50m to victims of OPAP - MSCI ESG RATING tornado in the Czech Republic AA A A ▪ OPAP’s MSCI ESG rating upgraded to AA BBB BBB ▪ OPAP confirmed as FTSE4Good Index Series BB BB constituent for fifth consecutive year 2015 2016 2017 2018 2019 2020 2021 ▪ OPAP compl
Slide 14: Key strategic developments
Key strategic developments Q2 2021 ▪ Shareholding in OPAP increased to 45.4% (economic interest 38.3%), compared to 43.1% (economic interest 36.1%) at YE 20, through open market purchases ▪ ReFIT restructuring programme at CASAG to a large extent implemented - Currently c. 460 FTE (29 % less) less c
Slide 15: Financial update
Financial update 15 SaZKa GROUP
Slide 16: Consolidated P&L
Consolidated P&L ▪ Consolidated P&L reflects Q2 Q1 ∆ vs Q2 ∆ vs consolidation of CASAG since € millions 2021 2021 Q1 '21 2020 Q2 '20 Q3 and Stoiximan since December 2020 GGR 740.1 526.3 41% 246.6 200% ▪ Year on year comparison also NGR 449.1 283.0 59% 162.0 177% reflects weak Q2 2020 ▪ Strong growth
Slide 17: Pro-rata NGR development
Pro-rata NGR development Segments with limited impact More impacted segments Combined performance from COVID-19 restrictions 350 350 350 300 300 300 250 250 250 200 200 200 150 150 150 100 100 100 50 50 50 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 18: Key financing transactions
Key financing transactions Subsequent ▪ €55 million scheduled amortisation on SAZKA Group syndicated loan ▪ €30 million voluntary repayment of RCF - Amount remains available, undrawn capacity €140 million ▪ SAZKA Entertainment downstreamed €75 million to SAZKA Group as equity contribution 18
Slide 19: Dividends and distributions
Dividends and distributions Q2 2021 ▪ In May, LottoItalia made a distribution of share capital of €47 million (€15 million net to SAZKA Group’s interest) Subsequent ▪ In July, SAZKA a.s. paid a dividend of CZK900 million (c. €35 million) ▪ In August, OPAP paid a dividend of €0.55/share, €72 million
Slide 20: Dividends and distributions (continued)
Dividends and distributions (continued) 2020 2021 Q1-Q3 € millions end of June Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 Austrian Lotteries 9.45% 77 100 61 177 61 CASAG 59.70% SDHH 78.64% 5 2 2 2 2 5 5 LOTTOITALIA 32.50% 150 64 23 176 47 47 214 269 OPAP 38.33% 320 100 187 420 187 SAZKA 100.00% 37 2 3 38 37 43
Slide 21: LTM pro-rata data
LTM pro-rata data As at 30 June 2021, pre IFRS 16 basis Czech Greece and € millions Austria Italy Corporate1 Total Republic Cyprus Pro-rata LTM Adjusted EBITDA1 86.3 96.3 154.2 132.0 (5.6) 463.2 Pro-rata net debt (102.8) (73.0) 162.3 (76.9) 1,510.0 1,419.5 Gross debt (100%) 147.8 - 1,044.4 - 1,562.2
Slide 22: Current trading and outlook
Current trading and outlook ▪ Assuming no new restrictions, Q3 will be first quarter since Q4 2019 with no material COVID impact on our operations ▪ While Q2 saw a strong recovery, physical retail channel in Greece and Cyprus and casinos were materially impacted for parts of the period ▪ Austrian Lo
Slide 23: Thank you!
Thank you! GROUP
Slide 24: Appendix
Appendix 24 SaZKa GROUP
Slide 25: Summary of adjustments to EBITDA
Summary of adjustments to EBITDA Standalone, 100% (€m) EBITDA adjustments breakdown Operating EBITDA 2019 2020 H1 20 H1 21 Austria 211 147 60 76 Austria adjustments 2019 2020 H1 20 H1 21 Czech Republic 95 84 46 57 Casino Linz insurance gain + - (4) (8) - restructuring non-personal costs Greece and C
Slide 26: Alternative performance measures
Alternative performance measures This presentation includes non-IFRS performance measures, including, Net gaming revenue, Operating EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and pro rata financial information. Please refer to SAZKA Group’s press release and Management’s discussion and analysis
Slide 27: 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