In Investor Pack August 2018
Contents Business Overview Appendix 2018 Trading Update Historic Proforma Numbers Other – Regulatory / Capital Structure / Geographic split 2
Business Overview
GVC Busin iness Overview Bu Busi siness ss over vervi view ew Gl Globa bal pr presen esence GVC is a global, multi-channel sports betting led gaming company Diversified geographic footprint and product mix Operates B2C sports brands (bwin, Ladbrokes, Coral, Sportingbet, Eurobet) and games brands (partypoker, PartyCasino, Galabingo, Gioco Digitale) Scalable and proven proprietary platform also supports B2B offering Acquired bwin.party in 2016 with a synergy target of € 125m Office Locations and Ladbrokes Coral in 2018 with a synergy target of £130m Bu Busi siness ss high ghligh ghts Licen ensed ed juri risd sdictions 17 17 Major established B2C gaming brands 21 21 Languages 3,5 ,500 Shops across UK 22 22 Offices across five continents >20 >20 Licenses Yes GVC revenues processed derived through own Yes (Transitional) >95 >95% platform Yes (Application) 4 Source: 2016 annual report, as at 31 Dec 2016. GVC combined Prospectus and Class 1 circular dated 9 February 2018.
GVC Busin iness Overview Acqu quisition of of Ladbrokes es Cor Coral creates an n en enlarged com ompany with th a range of of competitive advantages: Significant t scale as the largest listed online-led betting and gaming operator by revenue 1 Geo eographic dive versification on with over 90% of revenue from regulated and/or taxed markets 2 Market leading tech echnol ology and product t deve velopment 3 4 Stro trong brand por ortf tfolio o and opportunity to leverage mult ulti-chann nnel Ex Experienced managemen ent team with a track record of successful acquisitions 5 Opportunities for cost and revenue syne nergies 6 7 Well positioned to enter ne new markets in a consolidating industry 5
Sig ignific icant Scale le 1 Acqu quisition of of Ladbrokes es Cor Coral creates a global lea eader The e large gest st online-led ed opera perator in the e worl rld (£ in billions, last reported full year revenue) 3.3 1.0 2.2 1.7 1.7 0.9 0.6 0.4 0.4 0.3 (1) (2) Source: Latest annual reports revenue figures. Note: Peer revenue based on last reported financial year. Exchange rates used as of 31 Dec 2017. Charts exclude Asian markets. 6 (1) Includes Proforma GVC FY17 and Proforma Ladbrokes Coral FY17 (2) The Stars Group announced its acquisition of the Sky Betting and Gaming Group on 21 April 2018. Completion is expected in Q3 2018
Geographic Div iversific ication 2 Present in the world’s most important gaming markets Present in all of the world’s top ten markets (ex Asia) Over ver 90% 90% reve evenue e from regu egulated ed / taxed mark rkets ( € in billions, gross win, 2017) 105 25% Regulated/ing and Taxed GV GVC (1 (1) Unregulated 20 75% 17 + 16 14 11 10 9 0.2% Regulated/ing and Taxed 3 2 Ladb adbrokes Unregulated Coral l US Italy Australia UK Germany Canada France Spain Netherlands Sweden 99.8% Top 3 positions in Europe’s largest online markets – UK, Germany and Italy 6% Top 3 retail positions in UK, Italy, Spain, Belgium and Regulated/ing and Taxed Combin bined Ireland Gr Group Unregulated Strong presence in Australia and licensed in the US 94% 7 Source: H2 Gambling Capital, Ladbrokes Coral 2016 annual report, GVC RNS 2 November 2017 (1) Pro forma for sale of Turkey facing business.
Market Leading Technology 3 Proprieta tary single, , inte ntegrated techn echnology platfo form yields a significant com ompetiti tive advanta tage GVC pr GV propri rietary tec echnology Sign gnificantly impr proved ed since e Key ey stra rategi gic ben benef efits s of the e platform pl bw bwin.p .party acquisi sition GV GVC pl platform rm Highly Pre revi vious ously ly Now ow 1 Provides flexibility and AVAILABLE independence from To integrate a To a third parties 20 to o 24 2 to o 3 new Massively Game Ga Weeks Weeks SCALABLE Provider 2 Significant economies of scale Easily EXTENDABLE To To se setup p a a new 3 8 to o 9 1 to o 2 Improvements to the platform Lab abel benefit all brands (and B2B Capable Weeks Weeks (Business) operations) at once 1000+ IT STAFF Multi 4 Device agnostic, providing a BRAND & B2B seamless experience from mobile to To ad To adapt pt to a a 16 to o 20 2 to o 4 desktop to tablet new Weeks Weeks Fully Re Regulation REGULATED 5 Content management system allows marketing teams to customise the site Omni CHANNEL To on-bo To boar ard a a 32 to o 40 8 to o 12 new 6 Ensures that the group remains Weeks Weeks B2B Par B2 artner Complete compliant and meets the needs of individual country regulators PRODUCT SET 8
Str trong and Complementary Bra rand Portfolio 4 Limite ted geo eographic brand ov overlap Onli line ne: Sport orts-led led Onli line ne: Games Retail etail Highly complementary brand UK UK portfolios Minimal brand overlap in key Italy aly markets Irelan land Addition of Retail adds powerful, low-cost marketing channel for Europe Be Belg lgium um online Combined Group to pursue multi- Spain ain brand strategy in markets with overlap Germ rman any Creates significant cross-sell and revenue synergies opportunities Easte stern rn Euro rope Gre reece Braz Br azil Rest of World Col olum umbia ia Au Austr strali lia Ca Canada 9
Bra rand Port rtfolio io: Onli line 4 Spo port rts br brands Games Ga s br brands Most major markets All major markets Europe Latin America Latin America Central Europe 17 well established B2C sports and gaming brands Innovative products with in-house game studio building exclusive content Holds top 3 positions in Europe’s largest online markets – UK, Germany and Italy 10
Bra rand Port rtfolio io: Retail il 4 UK Ret etail Euro ropea ean Ret etail Irelan land Italy aly #1 operator in UK retail gaming industry #3 retail #3 retail 41% market share (2) 140 shops Strong multi- channel presence Over 3,500 UK shops (3.6 year avg lease length in 2016) 850 shops Market leading multi-channel offering – 1.3 million combined multi-channel signups NGR GR H1-17 H1 – Lifetime value of multi-channel customers are 2x higher Spain ain Be Belg lgium um #1 retail #1 retail Online recently launched Online recently launched 1,726 shops 541 shops 11
Experienced Management Team 5 Ex Experienced managemen ent team with th a track rec ecord of of suc uccessfu ful acquisitions Name Na e and role Yea ear r joined ed Expe peri rience Lee ee Fel eldman 2004 (GVC) Non-executive Chairman Ken ennet eth Al Alex exande der 2007 (GVC) Chief Executive Officer Pa Paul Bo Bowtel ell 2011 (Gala Coral) Chief Financial Officer An Andy dy Ho Horn rnby 2011 (Gala Coral) Joint Chief Operating Officer Shay Segev egev 2016 (GVC) Joint Chief Operating Officer 12
Pro roven Tra rack Record of Synergies Deli livery 5 Prove ven acquisition on track rec ecor ord and nd ability to o cons onsta tantly ov overachieve on on syne nergies ov over a shor hort t per eriod Targ rget Da Date te 19 March 2013 1 February 2016 1 November 2016 € 83.9m (1) Deal Size Deal £1.1bn £2.3bn Delivered EBITDA of € 38.3m in year 1 On track to deliver run rate synergy (£ in millions) vs. expected € 28.7m target of € 125m by the end of 2017 150 (on 2015 EBITDA of only € 109m) Cost ost saving sa vings s / / 65 synergy sy Removed € 50m of cost and returned bwin.party brands returned to del elive very ry to profitability in <1 year growth almost immediately after Original synergies Revised synergies four consecutive years of declining projection projection sales GV GVC share e pr price e since 2009 2009 Ladb dbro rokes es Co Cora ral synergi rgies es ph phasing (£ in millions) GBp 150 tion executio 125 1,000 l ex 750 65 ful 55 Successfu 50 500 23 250 2017 2018 2019 Original synergies projection 0 Revised synergies projection Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Source: Prospectus dated 9 February 2018, Ladbrokes Coral prospectus dated 27 October 2016, GVC presentation dated 16 November 2015, FactSet. 13 Note: Close price adjusted for both dividends and splits. (1) William Hill contributed £36.5m towards balance sheet repair, restructuring and deal costs.
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