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Dis isclaimer Cli lick to to edit it NOT FOR PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT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 fo recast. 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
Overview – GVC Today Click to edit • € 4.6bn sports wagering • € 0.9bn NGR Financial* € 206m Clean EBITDA • • 17 territories with over 2% NGR • 2,800 FTEs 15 offices across four continents Corporate • • 19 licences Highly scalable and robust platform • • Proprietary sportsbook, casino and poker Technology • >95% revenues processed derived through own platform Best in class IT Management • • 10 major established B2C gaming brands >1,000 games offered • Customer • 21 languages, 19 currencies • 79m registered accounts *pro forma 2016 Increasing scale and diversification built on strong brands, technology and talent 3
Strategy Click to edit Vision Delivery • Organic • To build further scale and international diversification - Return marketing investment to normalised levels - Largest market just 25% of group NGR Product & service development - - 17 countries contribute 2% or more to NGR - Focus on core markets Grow regulated and markets moving to regulate - - Improved CRM and BI - Continually improve cross-sell • To be a top three player in core markets - >10% market share in >10 markets* - Top 3 in >5 markets* • M & A - Opportunity in a number of core markets Focus on underweight markets - - Regulated and unregulated To be best in class in core verticals Prefer online but flexible • - - B2C - Sports - good but not yet best in class - Technology Gaming – substantial improvement - Brands Talent Technology *Management estimate based on H2GC data 4
GVC product suite Click to edit Integrated Owned Product Suite • Based on bwin’s leading sports risk platform adjusted to each market • Real-time data driven by leading sports data feeds, video streaming and GVC quants SPORTS • Improved trading tools leveraged by GVC quants tuning prices and risk per market • Single platform to trade all brands and markets • Based on Party Casino platform • 3 rd party content aggregation with best providers in each market CASINO • In-house game studio building exclusive content as competitive advantage • Cross-selling and promotion tools across internal and external game content • Based on partypoker’s platform • One of the largest B2C and B2B poker networks POKER • Certified across most major regulated poker markets • Balanced network ecology continuously improved through new controls and features • Integrated tool-sets, refined by GVC operational know-how • Full player management lifecycle from acquisition to retention CRM & BI • Real-time and offline player communication and promotion tools • Integrated to single unified big-data cloud based data warehouse for analytics Fully integrated product suite supporting full player lifecycle offering best-of-breed sports experience and game content 5
GVC product and technology summary Click to edit GVC Product and Technology Platform • Proprietary technology stack supporting complete product suite and player management system • Unique capability to execute strategic and operational actions quickly and with full-flexibility • Sound product roadmap defined with initiatives to drive customer satisfaction and overall growth Solid progress on tech integration and migration of • GVC business nearing completion Further growth opportunities on the near horizon • Proprietary technology and strong product portfolio with significant competitive advantage 6
Click to edit Performance update
FY 2016 Key Highlights Click to edit • Pro forma* NGR +9% to € 894.6m • Pro forma* NGR - constant currency +12% • Pro forma* Clean EBITDA # +26% to € 205.7m • Pro forma* Clean EBITDA # margin % 23% vs 20% • Adjusted PBT^ (statutory) +102% to € 93.8m • Net debt € 131.5m (0.6x Pro forma Clean EBITDA) 14.9c special dividend paid February 2017 • Dividend 15.1c 2016 second special to be paid May 2017 • Current trading (YTD to 30 June) 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 and changes 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, amortisation of acquired intangibles, dividend income and amortisation of loan fees and early repayment option 8
2017 Q2 KPIs 2017 Is and Current Tradin ing Cli lick to to edit it Highli lights CC CC Per Per day in € 000' 000's Q2-2017 Q2 2017 Q2-2016 Q2 2016 Change Ch ge Ch Change ge 91 days 91 days • Q2 17 Group daily NGR +10% (12%) vs pro Spo port rts br brands forma Q1 16 12,113 12,394 (2%) (0%) Sports wagers • H1 2017 NGR € 484.8m up 10% vs H1 10.1% 9.9% Sports margin 2016 pro forma € 441.8m (+11% in constant currency) 945 952 (1%) 1% Sports NGR • Q2 2017 Group daily NGR up 8% (+10% in 1,030 890 16% 18% Gaming/other NGR constant currency) vs Q2 2016 1,97 1, 976 6 1, 1,84 843 3 7% 7% 9% 9% Total NG NGR Cu Curr rrent tra radin ing 616 616 547 547 13% 13% 15% Ga Games s br brands Other 90 90 96 96 (5%) 5%) (4%) • Q2 2017 Group daily NGR up 8% (+10% in constant currency) vs Q2 2016 Group Gr p daily NG NGR 2, 2,68 682 2 2,48 2, 485 5 8% 8% 10% 10% • Q2 2017 underlying Group daily NGR up 15% vs Q2 2016 (excluding Euro 2016 revenues) Group Gr p NG NGR ( € m) m) 244.1 244. 226.2 226. 8% 8% 10% Unde Underlying NGR GR cont ntinuing at at >1 >10% 9
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