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William Hill, the official betting partner of the Australian Open, is the first bookmaker to sponsor a Grand Slam tennis tournament. The image shows Andy Murray in the final against the tournament’s ultimate winner, Novak Djokovic.
THE HOME OF BETTING William Hill PLC corporate presentation April - - PowerPoint PPT Presentation
THE HOME OF BETTING William Hill PLC corporate presentation April 2016 William Hill, the official betting partner of the Australian Open, is the first bookmaker to sponsor a Grand Slam tennis tournament. 1 The image shows Andy Murray in the
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William Hill, the official betting partner of the Australian Open, is the first bookmaker to sponsor a Grand Slam tennis tournament. The image shows Andy Murray in the final against the tournament’s ultimate winner, Novak Djokovic.
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This presentation has been prepared by William Hill PLC (“William Hill”). This presentation includes statements that are,
"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. They appear in a number of places throughout this presentation and the information incorporated by reference into this presentation, and include statements regarding the intentions, beliefs or current expectations of the directors, William Hill or the Group concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and dividend policy of William Hill and the industry in which it operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend
Forward-looking statements are not guarantees of future performance and hence may prove to be erroneous. The Group's actual results of operations, financial condition, liquidity, dividend policy and the development of the industry in which it operates may differ materially from the impression created by the forward-looking statements contained in this presentation and/or the information incorporated by reference into this presentation. In addition, even if the results of
and/or the information incorporated by reference into this presentation, those results or developments may not be indicative of results or developments in subsequent periods. Other than in accordance with its legal or regulatory obligations (including under the Listing Rules, the Disclosure and Transparency Rules and the Prospectus Rules), William Hill 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.
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– Proprietary SSBT in-shop, preparing for EURO 2016 roll-out – Online Trafalgar mobile front-end is live, platform for rapid innovation – Australian business exited 2015 with encouraging growth after brand launch
purposes down to £488.2m
Numbers are presented on a pre-exceptional basis. Definitions are provided in the glossary at the back of the presentation.
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85% 6% 2% 3% 4% UK Australia US Italy and Spain Other 56% 35% 1% 6% 2% Retail Online Telephone William Hill Australia William Hill US 53% 47% Betting Gaming
Revenue by geography Revenue by product type Revenue by business segment
Note: Pie charts show 2015 full-year position
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– 6.49 million in 20101 – 8.12 million in Q1 20152
– 24% increase in number of Retail’s regular customers using online since Q3 2014 – 70% of spend is by Retail customers with online operators – Omni-channel customers spend, on average, 1.8 times what a single channel customer spends
OMNI-CHANNEL
INTERNATIONAL TECHNOLOGY
Sources:
28% 23% 72% 77% Q3 15 Q3 14
William Hill Retail + William Hill Online
William Hill Retail’s regular customers
13%
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INTERNATIONAL TECHNOLOGY
1. H2GC Global Gambling Data (February 2014); population data (Wikipedia)
Top ten gambling markets by gross win (2013, £bn)1
215 32 142 226 180 449 106 116 212 153 Gross win per capita (£)
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INTERNATIONAL TECHNOLOGY
platforms
platform within three years, £80m investment in NYX / OpenBet
William Hill is the only operator to have developed a proprietary SSBT. This gives us a leading product range and increased flexibility without paying a revenue share Through Project Trafalgar, we have taken control of our ‘front-end’ customer interfaces (desktop, mobile web, iOS and Android apps). This enables daily releases and rapid innovation.
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1. Licensed betting offices 2. Gambling Commission Industry Statistics April 2010-March 2015
783.1 789.7 837.9 907.0 911.4 889.5 2010 2011 2012 2013 2014 2015
Delivering revenue growth against challenging economic backdrop
William Hill, 26% Ladbrokes, 25% Coral, 21% Betfred, 16% Other, 12%
Leader in UK retail bookmaking Evolving product mix (gross win)
25% 20% 12% 11% 10% 8% 3% 4% 4% 5% 46% 52% 2010 2015
Horse racing Football Greyhounds Virtual Other Gaming
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251.5 321.3 406.7 446.3 527.4 550.7 2010 2011 2012 2013 2014 2015 1. Gambling Compliance Industry Statistics, April 2010-March 2015. Note this market share data was published in October 2015, prior to the merger of Paddy Power Betfair in 2016
22% 18% 18% 11% 8% 7% 3% 15% Bet365 Betfair William Hill Paddy Power SkyBet Ladbrokes Gala Coral Non-reporting operators 12% 9% 8% 7% 6% 4% 4% 4% 4% 2% 4% 35% William Hill Gala Coral SkyBet 888 Paddy Power Rank Ladbrokes Betfair Bwin.Party 32Red Bet365 Non-reporting operators
UK gaming market share Net revenue growth UK betting market share
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Italy online sports market share by turnover2
1. Agimeg and AAMS, July 2015 2. DGOJ, company estimates
Spain online sports market share by turnover3
Bet365 46% Bwin 20%
William Hill 19%
Sportium 8% Other 7%
Bet365 47% William Hill 9% Eurobet 8% Lottomatica 6% Sisal 5% Snai 5% Bwin Group 5% Paddy Power 6% Others 9%
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59% 43% 14% 13% 18% 10%
9% 34% 0% 20% 40% 60% 80% 100% 2006/07 2012/13 TAB On course Telephone Internet
Online is growing as a proportion of overall betting1
1. NSW and Victoria thoroughbred turnover, Australian Racing Board Fact Book
26% 27% 6% 6% 19% 21% 14% 21% 34% 25% 2011 2013
Tabcorp Tatts Sportsbet William Hill Other
The market is consolidating Clear strategy for a competitive market
Trading User experience Brand People External strategy
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1. Handle is defined as the total amounts wagered. Data from UNLV Center for Gaming Research March 2013
Nevada sports handle1 growth
46% 82% 54% 18%
Market handle (turnover) Other William Hill
Nevada sports book market share
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Strong cash generation (£m) Diversified sources of debt funding (£m)
540 540 540 540 540 540 375 375 375 375 375 375 375 300 300 300 500 1000
2014 2015 2016 2017 2018 2019 2020
Revolving credit facility 4.25% bond 7.125% bond 17.5 52.3 60.9 71.1 87.1 104.0 108.4 35.1 34.6 53.9 65.0 82.8 74.6 67.5 17.4 27.0 31.0 38.5 21.6 116.8 107.2 99.4 131.9 95.2 189.4 125.0 2009 2010 2011 2012 2013 2014 2015 Dividends Capex Non controlling interests Deleverage
1. Capital expenditure net of disposals
Around 2.5x dividend cover Net debt/EBITDA 1.3x vs covenant of 3.5x
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Responsible Gambling
possible harmful behaviour, national self-exclusion trial UK: gaming machines
UK: funding for horseracing
UK: Scotland Bill
Government to regulate machine numbers for new LBOs UK: 4th Money Laundering Directive
under its auspices for the first time. Impact on LBOs to be finalised during 2016
Russia
companies without a land-based licence Australia
Government on 18 Dec 2015, awaiting Government response US
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