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Strong Brands, Technology & Talent
June 2017
Brands, Technology & Talent June 2017 Dis isclaimer Cli - - PowerPoint PPT Presentation
Click to edit Strong Brands, Technology & Talent June 2017 Dis isclaimer Cli lick to to edit it NOT FOR PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF
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June 2017
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NOT FOR PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT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 presentation has been prepared by GVC Holdings PLC (“GVC”). This presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond GVC’s ability to control or predict. Nothing in this presentation should be construed as a profit forecast. Forward looking statements are not guarantees of future performance and hence may prove to be erroneous. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation (596/2014), the Listing Rules, the Disclosure Guidance and Transparency Rules and the Prospectus Rules), GVC does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. No representation or warranty (express or implied) of any nature is given nor is any responsibility or liability of any kind accepted by GVC or any of its directors, officers, employees, advisers, representatives or other agents, with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (express or implied), omissions, errors or misstatements in this presentation, or any other written or oral statement provided. Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotions in section 21 of the UK Financial Services and Markets Act 2000. In making this presentation available, GVC makes no recommendation to buy, sell
information contained in this presentation in respect of any such investment activity. Any recipients of this presentation outside the UK should inform themselves of and observe any applicable legal or regulatory requirements in their jurisdiction, and are treated as having represented that they are able to receive this presentation without contravention of any law or regulation in the jurisdiction in which they reside or conduct business. In particular, the securities referred to in this presentation have not been and will not be registered under the U.S. Securities Act of 1933 and may not be
Securities Act of 1933. Totals may not sum as rounding and percentages have been calculated on the underlying rather than summarised figures.
Dis isclaimer
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Financial* Corporate
Technology
Customer
Increasing scale and diversification built on strong brands, technology and talent
*pro forma 2016
Overview – GVC Today
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Click to edit Strategy
Technology
*Management estimate based on H2GC data
Vision Delivery
Brands Talent
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GVC product suite
Integrated Owned Product Suite
SPORTS CASINO POKER CRM & BI
Fully integrated product suite supporting full player lifecycle
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product suite and player management system
actions quickly and with full-flexibility
customer satisfaction and overall growth
GVC business nearing completion
GVC Product and Technology Platform
GVC product and technology summary
Proprietary technology and strong product portfolio with significant competitive advantage
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Click to edit FY 2016 Key Highlights
+9% to €894.6m
+12%
+26% to €205.7m
23% vs 20%
+102% to €93.8m
€131.5m (0.6x Pro forma Clean EBITDA)
14.9c special dividend paid February 2017 15.1c 2016 second special to be paid May 2017
Pro forma NGR +10% YTD (+12% constant currency)
*Pro forma assumes bwin.party was acquired from 1 January 2016
#Clean EBITDA: defined as operating profit adjusted for share based payments, exceptional items, depreciation, amortisation, impairment of available for sale assets andchanges in the fair value of derivative financial instruments.
^Adjusted PBT is Loss/Profit before tax adjusted for exceptional items, change in the value of assets held for sale, fair value of derivative financial instruments, amortisation8
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2017 2017 Q2 KPIs Is and Current Tradin ing
Highli lights
forma Q1 16
2016 pro forma €441.8m (+11% in constant currency)
constant currency) vs Q2 2016
Unde Underlying NGR GR cont ntinuing at at >1 >10%
Cu Curr rrent tra radin ing
constant currency) vs Q2 2016
vs Q2 2016 (excluding Euro 2016 revenues)
Per Per day in €000' 000's Q2 Q2-2017 2017 Q2 Q2-2016 2016 Ch Change ge CC CC Ch Change ge 91 days 91 days Spo port rts br brands Sports wagers 12,113 12,394 (2%) (0%) Sports margin 10.1% 9.9% Sports NGR 945 952 (1%) 1% Gaming/other NGR 1,030 890 16% 18% Total NG NGR 1, 1,97 976 6 1, 1,84 843 3 7% 7% 9% 9% Ga Games s br brands 616 616 547 547 13% 13% 15% Other 90 90 96 96 (5%) 5%) (4%) Gr Group p daily NG NGR 2, 2,68 682 2 2, 2,48 485 5 8% 8% 10% 10% Gr Group p NG NGR (€m) m) 244. 244.1 226. 226.2 8% 8% 10%
Click to edit FY 2016 Divisional Overview – Sports Brands
risk management at bwin
currency) despite rise in gross win margin %
+22%
gaming NGR and other revenues +26% pro forma year on year Pro forma in €m0 2016 2015 Change Constant currency Sports wagers 4,488.3 4,312.6 4% 7% Sports margin % 9.6% 8.6% Sports NGR 333.2 304.5 9% 11% Gaming NGR / other revenue 320.8 271.1 18% 21% NGR 653.9 575.7 14% 16% EU VAT (15.0) (11.0) Revenue 638.9 564.7 13% 16% Contribution 362.0 318.9 14% Contribution margin 55% 55%
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Click to edit Sports Brands – Progress
Challenge
Poor risk management
Impact What we’ve done
events and availability
Low cross-sell to gaming
Product development gaps
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Comparatives are pro forma 2016 vs 2015 unless otherwise stated
Click to edit FY 2016 Divisional Overview – Games Brands
in constant currency
in H1
constant currency), growth accelerating
through period
impact, new Head of Bingo, reinvigorating Foxy Pro forma in €m 2016 2015 Change Constant currency Sports wagers 65.2 77.1 (15%) (14%) Sports margin % 7.7% 5.0% Sports NGR 4.3 3.2 32% 35% Gaming NGR / other revenue 199.2 208.5 (5%) 0% NGR 203.5 211.8 (4%) 0% EU VAT (6.4) (3.2) Revenue 197.0 208.6 (6%) (1%) Contribution 89.0 109.6 (19%) Contribution margin 44% 52%
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Click to edit Games Brands – Progress
Challenge
partypoker in terminal decline
Impact What we’ve done
No growth in casino brands
3rd party content expansion
levels
Bingo in decline
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Comparatives are pro forma 2016 vs 2015 unless otherwise stated
Click to edit Technology – Progress
Challenge
Stability and scalability
Impact What we’ve done
continuity
expertise
response time
Inefficient cost structure and slow development
development four-fold
Migrations
100% data match
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Comparatives are pro forma 2016 vs 2015 unless otherwise stated
Click to edit Future developments
Sports Brands
Games Brands
Technology
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GVC Today – Brands, Technology & Talent
Technology – a unique and powerful platform with substantial upside from further optimisation Brands – highly valuable portfolio of global gaming brands being reinvigorated Talent – one of the most experienced and successful teams in the industry
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