2017 Full Year Results 9 March 2018 A growing global player 1 - PowerPoint PPT Presentation

2017 Full Year Results 9 March 2018 A growing global player 1

Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT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 or otherwise deal in shares of GVC or in any other securities or investments whatsoever and you should neither rely nor act upon, directly or indirectly, any of the 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 offered, sold or transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933. Totals may not sum as rounding and percentages have been calculated on the underlying rather than summarised figures. 2

Kenneth Alexander Chief Executive 3

Contents • Key highlights Introduction • Income statements • Exceptional items • Cashflow Financial review • Balance sheet extracts • Debt • Guidance • Sports Brands • Games Brands Divisional review • Current trading & regulatory update • Ladbrokes Coral Acquisition update • Conclusion • Q & A Summary • Appendix 4

2017 Key highlights +17% to €925.6m (pro forma 1 2016: €794.3m ); +17% in constant currency • Group NGR +13% to €1,008m including discontinued (pro forma 2016: €894.6m ) • +40% to €239.5m (pro forma 2016: €170.5m) Clean EBITDA 2 +33% to €274.2m including discontinued (pro forma 2016: €205.7m) • Clean EBITDA margin % 26% vs 21% (pro forma 2016) • €178.7m (2016: €58.9m) Adjusted PBT 3 • +195% to €0.56 (2016: €0.19) Adjusted EPS +113% to €0.66 including discontinued (2016: €0.31) • €108.6m (0.4x LTM Clean EBITDA) Net debt • €0.175 second interim giving €0.34 for the year (+13% vs 2016) Dividend NGR 4 +16% (+18% constant currency) • Current trading (Q1 to 4 March) • Acquisition Ladbrokes Coral & GVC shareholders approve transaction 1 Pro forma assumes bwin.party was acquired from 1 January 2016 2 Clean EBITDA: defined as EBITDA before share based payments and exceptional items 3 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, amortisation of acquired intangibles, dividend income and amortisation of loan fees and early repayment option 4 Like for like – excluding acquisitions and disposals made in 2017 5

Paul Miles Chief Financial Officer 6

Pro forma abridged income statement • NGR from continuing operations 17% In €m 2017 2016* Change higher NGR 925.6 794.3 17% NGR (inc discnt’d ) 1,008.0 894.6 13% • Top 10 territories all grew NGR; Top 9 Revenue 896.1 772.9 16% NGR growth all >10% Contribution 454.4 420.1 8 % • Contribution margin lower due to; Contribution margin 49% 53% • Increased marketing (25 % of NGR vs 21% in 2016) Clean EBITDA 239.5 170.5 40% • Incremental gaming taxes Clean EBITDA margin 26% 21% Clean EBITDA (inc discnt’d ) • Marketing as % of NGR expected to 274.2 205.7 33% remain broadly unchanged going forward €m Clean EBITDA Bridge • Clean EBITDA margin increased to 300 11 26% (21% pro forma 2016) 39 7 35 250 • Net expenditure €34.8m lower vs pro 69 200 forma 2016 • bwin.party synergies fully 150 240 secured 100 170 • Underlying cost inflation c. 2-3% 50 - 2016 Pro Growth Expenditure Cost of Marketing Impact of 2017 Clean forma Clean Savings Sales Investment Regulation EBITDA EBITDA Savings *Pro forma assumes bwin.party was acquired on 1 January 2016 7

Income statement – statutory • Strong top line growth from continuing Year ended 31 December 2017 2016 €m €m operations NGR 925.6 743.1 • Share based payments: NGR (including discontinued) 1,008.0 843.4 • LTIP, MIP share options and share bonus awards Revenue 896.1 723.0 • Significant decrease from 2016 Contribution 454.4 393.6 • Depreciation & amortisation: Contribution margin 49% 57% • Depreciation declining reflecting lower expenditure on tangible assets • Clean EBITDA 239.5 158.3 As guided, amortisation increasing reflecting product development Clean EBITDA margin 26% 21% Clean EBITDA (including discontinued) 274.2 193.5 • Finance income & expense include: • Financial income € 1.3 m (€4.5m 2016) Share based payments (17.7) (31.0) • Loan interest € 14.2 m (€46.0m 2016) Depreciation (15.6) (19.8) Amortisation (excluding acquired • Other items include: intangibles) (14.4) (7.0) • Changes in fair value of derivative financial Finance income & expense (13.2) (41.8) instruments (€34.5m) • Share of profit from associate 0.1 0.2 Cerberus early repayment • partypoker option Adjusted profit before tax 178.7 58.9 • Amortisation of loan fees and unwinding of Amortisation of acquired intangibles (121.0) (109.5) early repayment option (€7.3m) Exceptional items (39.9) (117.8) Other items (43.4) (5.1) • Taxation: Loss before tax (25.6) (173.5) • Corporate tax charge (€13.1m ) • Deferred tax credit €15.0m Taxation 1.9 0.3 Loss after tax from continuing operations (23.7) (173.2) (Loss)/profit from discontinued operations (15.7) 34.6 Loss after tax (39.4) (138.6) 8

Exceptional items Year ended 31 December 2017 2016 • Significant reduction in exceptional €m €m items M & A costs (7.7) (51.5) Premium listing application costs 0.0 (4.4) • Integration completed Reorganisation costs (23.9) (14.4) Contract termination costs 0.0 (11.7) • Reorganisation costs include: Accelerated depreciation 0.0 (12.5) • Ukraine closed Progressive jackpots 0.0 (7.6) • MM1 platform • General integration one off Release of contingent consideration 0.0 (8.1) costs Foreign exchange on deposit (0.3) (16.4) Profit on disposal of joint venture 0.0 11.7 Legal settlements (2.1) 0.0 Other (5.9) (2.9) (39.9) (117.8) 9