Preliminary Financial Results 2015 Analyst Conference Call 10th March 2016
Agenda Introduction 2015 Key highlights 2015 Financial Results
Dividend Policy 2016 Outlook & Guidance
2
Fortuna - Leading regulated CEE sports betting & lottery operator Pop. 38.2 million 192k registered users No. 1 market position (36%) Retail & Online Reg. vs offshore market: EUR 200 MM vs. EUR 1.1 bn Pop. 10.5 million 351k registered users No. 2 market position (31%) Retail & Online & Lottery Reg. vs offshore market: EUR 780 MM vs. EUR 500 MM
Pop. 5.4 million 170k registered users No. 2 market position (34%) Retail & Online Reg. vs offshore market: EUR 365 MM vs. EUR 100 MM Brand Licencing Pop. 20 million Retail & Online (betting & gaming) Reg. vs offshore market: EUR 103 MM vs. EUR 550 MM
3
2015 Key Highlights
4
Financial highlights FY 2015
► Group Amounts Staked increased to EUR 847.7 MM (+26.1%) ► On-line Sports Betting Gross Win increased to EUR 84.7 MM (+26.4%) ► Total EBITDA decreased to EUR 27.2 MM (-2.1%) ► No. of registered customers increased by 18.2% ► Net profit EUR 19.5 MM (+22.5%), adjusted Net profit EUR 16 MM (+0.01%)
Source: Calculated based on FEG consolidated unaudited financial results for 2015 and Company information FX rates used for translation: average ČNB and National Bank of Poland
5
2015 Financial Performance
6
Financial results 2015 Revenues
Amounts Staked 1000 800
672.4
+26.1% 847.7 19,7
16,7
+17.8%
600 400
828,0
655,7
+26.3%
200 0 2014
120 100 80 60 40 20 0
+18.3%
91,0
30
-2.1%
0,4
27.2 0,9
+147.3%
26,3
15.9 +22.5%
19.5
+19.0%
15
19,6
16,5
5
+82.6%
0
-4.1%
-5
0 EBITDA sports betting
Revenues lottery
20 10
27,4
2015
Net profit
20 10
95,7 +5.2%
Revenues sports betting
Amount Staked sports betting
102.8 7,1
5,9
EBITDA
27.8
+6.0%
2014
2015
Amount Staked lottery
96.9
EBITDA lottery
-0,6 Net Profit sports betting
-0,1 Net Profit lottery
Source: Calculated based on FEG consolidated unaudited financial results for 2015 and Company information FX rates used for translation: average ČNB and National Bank of Poland Note: 2014 revenues adjusted by Czech betting tax reclassification, 2014 EBITDA adjusted by fees from customer accounts top-ups
7
Sports betting by country Amounts Staked 2014
2015
PL 13%
PL 13%
SK 26%
In EUR MM
Gross Win
PL 24% CR 56%
SK 31%
CR 61%
2014
2015
2015
2014 PL 25%
CR 44%
SK 32%
SK 32%
%
In EUR MM
CR 43%
2014
2015
%
Czech Republic
397.7
462.1
16.2%
Czech Republic
55.3
59.6
7.7%
Slovakia
167.7
259.9
55.0%
Slovakia
39.4
44.3
12.7%
87.6
105.8
20.8%
Poland
30.4
34.8
14.5%
Poland
Source: Calculated based on FEG consolidated unaudited financial results for 2015 and Company information FX rates used for translation: average ČNB and National Bank of Poland
8
Sports betting gross win breakdown Group Total
Czech Republic
Group Total
Czech Republic
100% 80%
100% 54,0
58,1
60%
18,6
15,7
36,7
43,9
2014
2015
60%
40% 20%
80%
40% 67,0
84,7
2014
2015
20%
0%
0% GW online
GW retail
GW online
Slovakia Slovakia
Poland
Poland
100% 80%
100% 16,3
17,9
60%
80% 60%
40% 20%
GW retail
28
21,5
22
8,8
12,8
2014
2015
40% 20%
0%
21,6
0% 2014
2015
GW online
GW retail
GW online
GW retail
Source: Calculated based on FEG consolidated unaudited financial results for 2015 and Company information FX rates used for translation: average ČNB and National Bank of Poland In MM EUR
9
Dividend policy
Since 2015, the dividend policy of FEG has been under review due to the planned investments into future growth opportunities.
► In light of this development, the management of the Company proposes zero dividend payment in 2016 and 2017 ► The long-term dividend policy will be revised after 2017
10
Outlook & Guidance
11
2016 Outlook & Guidance Continuing strong online growth. Investments into future scalability.
► Strengthening of online sport betting proposition, taking advantage of the UEFA Euro in France ► Retail network optimisation ► Building operational excellence ► 2016 Guidance: Amounts Staked up to EUR 1 bn (+18% YOY) and 10-15% EBITDA decline. CAPEX EUR 11- 13 MM ► Change of the Czech betting tax from 20% to 23% - approx. EUR 2 MM negative impact on the 2016 EBITDA
Unlocking regulatory barriers
► Focus on Poland and the Czech Republic ► “Blocking” of off-shore operators ► Introduction of online gaming in the Czech Republic
► Re-platforming into multi-product and -channel
Investments into future growth
► Operational excellence
► People
12
IR Calendar & Contacts Event
Date
Annual Report 2015
April 14, 2016
Q1 2016 Interim Report
May 5, 2016
Half Year 2016 Report
August 25, 2016
Q3 2016 Interim Report
November 3, 2016
IR Contacts Klára Klímová IR Consultant e-mail:
[email protected]
www.fortunagroup.eu 13
Disclaimer This document has been prepared by Fortuna Entertainment Group N.V:. (the “Company”) solely for use at the Presentation. Any forward looking statements concerning future economic and financial performance of the Company contained in this Presentation are based on assumptions and expectations of future development of factors having a material influence on the future economic and financial performance of the Company. These factors include, but are not limited to, the legal environment, the future macroeconomic situation, the market competition, the future demand for betting services. The actual development of these factors, however, may be different. Consequently, the actual future financial performance of the Company could materially differ from that expressed in any forward looking statements contained in this Presentation. Although the Company makes every effort to provide accurate information, we cannot accept liability for any misprints or other errors. In preparation of this document we used certain publicly available data. While the sources we used are generally regarded as reliable we did not verify their content. Fortuna does not accept any responsibility for using any such information. This document is provided for information and as a matter of record only. It does not constitute an offer to sell or a solicitation of an offer to buy or sell securities or other financial instruments in any jurisdictions or any advice or recommendation with respect to such securities or other financial instruments of the Company. The distribution of this document in certain jurisdictions may be restricted by law. This document may not be used for, or in connection with, and does not constitute, any offer to sell, or an invitation to purchase, any securities or other financial instruments of the Company in any jurisdiction in which such offer or invitation would be unlawful. Persons in possession of this document are required to inform themselves about and to observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
14