Slides
Page 1
2024 RESULTS PRESENTATION 6 MARCH 2025
Page 2
2 This document may contain certain forward-looking statements which are based on estimations and forecasts. By their nature, these forward- looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict, in particular those described in FDJ UNITED registration document which is available on the website (https: //www.fdjunited.com/publications-et-resultats/). These forward-looking statements should not be considered as a guarantee of future performance, the actual results could differ materially from those expressed or implied by them. The forward-looking statements only reflect Group’s views as of the date of this document, and FDJ UNITED does not undertake to revise or update these forward-looking statements. The forward-looking statements should be used with caution and circumspection and in no event can FDJ UNITED and its management be held responsible for any investment or other decision based upon such statements. The information in this document does not constitute an offer to sell or an invitation to buy shares in FDJ UNITED or an invitation or inducement to engage in any other investment activities. *************** In this document, alternative financial indicators such as recurring EBITDA and adjusted net profit, defined here below, are used: • Recurring EBITDA: recurring operating profit adjusted for depreciation and amortisation • Adjusted net profit based on the consolidated net profit restated for the following items: a) in 2024 (i) the additional amortisation over the 2019-2023 period recognised under exclusive rights in France amounting to €17.9 million, (ii) the non-cash impact of the currency hedge relating to the acquisition of Kindred group, which is recognised under financial result for €9.9m; b) depreciation and amortisation of intangible and tangible assets recognised or revalued when allocating the purchase price of business combinations for €80.7m; c) and changes in tax resulting from these items for €17.2m.
Page 3
3 TODAY’S SPEAKERS Pascal Chaffard CFO and Strategy & Performance Leader Chairman of Kindred’s Board Stéphane Pallez Chairwoman & CEO
Page 4
2024 KEY HIGHLIGHTS GROUP1
Page 5
5 KINDRED: SUCCESSFUL TAKEOVER BID – A STRATEGIC MOVE ◆ A lottery, betting and gaming leader in Europe with a balanced and diversified profile • 98.60% stake at end-2024 – Squeeze-out achieved in January 2025 ◆ 2024 delivered according to expectations ◆ Integration on track EUROPEAN COMMISSION'S INVESTIGATION CONCLUDED ◆ No state aid granted during privatization ◆ Equalization payment re-evaluated from €380 million to €477 million • i.e. an additional payment of €97 million ◆ 14 April 2023 French Council of State decision • Confirmed La Française des Jeux’s exclusive rights • Stated that the 25-year duration of these exclusive rights (as defined in the PACTE law) is not excessive 2024 KEY HIGHLIGHTS
Page 6
6 32 athletes selected 25 medals: 7 Gold; 4 Silver; 14 Bronze 2024 KEY HIGHLIGHTS OFFICIAL SPONSOR OF THE 2024 PARIS OLYMPIC AND PARALYMPIC GAMES
Page 7
7 Dividend per share: €2.05 *** +15% vs. 2023 77% payout ratio 2024 reported* yoy % change 2024 pro forma** Revenue €3,065m +17% €3,788m Recurring EBITDA Margin €792m 25.8% +21% €964m 25.5% Net profit Adjusted net profit €399m €490m -6% +13% €351m €537m * Integrating Kindred with effect from 11 October ** If Kindred had been acquired on 1st January 2024 and based on the scope of business retained by FDJ UNITED *** Subject to approval at the AGM on 22 May 2025 2024 KEY HIGHLIGHTS VERY STRONG FINANCIAL PERFORMANCE - AHEAD OF EXPECTATIONS
Page 8
8 85% €1,818m 1.9x Baa1 Stable outlook Long-term credit rating by Recurring EBITDA to cash conversion Net financial debt Pro forma net financial debt / recurring EBITDA 2024 KEY HIGHLIGHTS SOLID FINANCIAL STRUCTURE
Page 9
9 ◆ Continued support for players to prevent excessive and underage gambling • Share of Group advertising budget dedicated to responsible gaming • Number of proactive Group phone calls to online players deemed at risk >10% ~20,000 1.0% vs. 1.8% in 2023 and < the 2025 target of 2% 3.0% vs. 3.2% in 2023 €33m €2m ◆ Increased commitment to protect the national heritage and the environment • Success of the 7th edition of Mission Patrimoine and the 2nd edition of Mission Nature • Renewal of several sponsorship agreements for ◆ Efficient measures leading to a reduction in revenue generated by high-risk players • France for online lottery • Kindred 2024 KEY HIGHLIGHTS ESG: SUSTAINED COMMITMENT
Page 10
10 Source: BDO - Bipe 57,200 Jobs created or maintained o/w 21,600 in the retail network €4.7bn Contribution to public finances o/w €4.5bn gaming levies €7bn Contribution to national wealth 0.25% of French GDP €994m to retailers €566m to French suppliers €365m to Group employees €340m dividends distributed in 2024 2024 KEY HIGHLIGHTS IN FRANCE: A PERFORMANCE BENEFITING ALL STAKEHOLDERS
Page 11
11 These 2024 ratings are based on 2023 reported extra-financial Group metrics including FDJ SA and its subsidiaries, except for PLI and ZEturf 2024 KEY HIGHLIGHTS ESG: BEST-IN-CLASS RATINGS MAINTAINED
Page 12
A NEW GROUP 2
Page 13
13 ◆ Integration monitored by several program committees / 15 streams ◆ Operations in non-locally regulated markets (.com) stopped in Q4 2024 ◆ Platforms assessment achieved and rollout roadmap confirmed ◆ New synergies and cost optimisation identified beyond merging French OBG activities ◆ Sustainability & responsible gaming strategy review • FDJ UNITED responsible gaming – ESG objectives to be set by the end of 2025 > €50m additional synergies and cost optimisation with gradual effect until 2027 Corporate operating model Media & marketing mutualization OBG platform mutualisation Procurement synergies KINDRED: INTEGRATION ON TRACK
Page 14
14 FY 2024 PRO FORMA • Revenue €3,788bn • Recurring EBITDA €964m • 25.5% margin FDJ UNITED present at end-2024 Finland with a clear path to regulation A LOTTERY, BETTING & GAMING LEADER IN EUROPE FDJ UNITED ACTIVE IN 13 EUROPEAN LOCALLY-REGULATED MARKETS AT END-2024 FDJ UNITED is also present in Australia and French Polynesia
Page 15
15 International 26% France 74% Open to competition 34% Exclusive rights 66% Online 35% Offline 65% ~34,000 retailers o/w > 29,000 in France > 33m players o/w 9m online A LOTTERY, BETTING & GAMING LEADER IN EUROPE A DIVERSIFIED AND BALANCED PROFILE (IN % OF 2024 PRO FORMA REVENUE)
Page 16
16 Stéphane Pallez Charles Lantieri Chairwoman & CEO Deputy CEO Pascal Chaffard CFO and Strategy and Performance Leader; Chairman of the Board of Kindred French lottery & retail sports betting Patrick Buffard Online betting & gaming Nils Andén International lottery Giovanna D’Esposito Payment & Services Raphaël Botbol As % of 2024 pro forma revenue 66% 27% 5% 2% A LOTTERY, BETTING & GAMING LEADER IN EUROPE A NEW OPERATING MODEL
Page 17
17 PLAYFUL. PLAY FAIR. PLAY FORWARD. A LOTTERY, BETTING & GAMING LEADER IN EUROPE A NEW COPORATE IDENTITY
Page 18
2024 KEY HIGHLIGHTS BY BUSINESS UNIT3
Page 19
Instant games Draw games Digital lottery Revenue €292m +20% 14% of lottery revenue 5.6m online players EuroDreams c.40% online penetration Retail sports betting Retail lottery and sports betting Revenue €2,213m +3% 19 FRENCH LOTTERY & RETAIL SPORTS BETTING PRO FORMA REVENUE OF €2,503m
Page 20
20 ONLINE BETTING & GAMING PRO FORMA REVENUE OF €1,030m UK France Netherlands Sweden Belgium Romania Denmark Other Casino Sports & horse racing betting Poker / Bingo B2B ◆ France: market share >20% ◆ Regulatory headwinds in Netherlands and UK ◆ High sports betting margin REVENUE WELL BALANCED BETWEEN MARKETS AND BUSINESS LINES Revenue by market (B2C) Revenue by business line (B2C & B2B)
Page 21
21 OTHER ACTIVITIES PAYMENT & SERVICES Niro Premio launch Free-flow toll motorways Mediakiosk & JC Decaux tender won by cash register solutions for 300 Parisian kiosks / newsstands INTERNATIONAL LOTTERY BU structuring Game portfolio animation Product visibility optimisation at POS Website & mobile app overhaul
Page 22
2024 FINANCIAL RESULTS 4
Page 23
NEW OPERATING MODEL WITH 4 BUs 23 NEW BUs AND NEW P&L NEW P&L French Lottery & retail Sports betting 66%* Online Betting & Gaming 27%* International lottery 5%* Payment & Services 2%* * As % of 2024 pro forma revenue
Page 24
24 * Recurring EBITDA: recurring operating profit(/loss) adjusted for depreciation and amortisation ** Free cash-flow: recurring EBITDA + net change in working capital - capital expenditure ; adjusted for calendar impacts on working capital and unclaimed winnings REPORTED KEY 2024 FIGURES 85%Recurring EBITDA to free cash-flow conversion €1,818mNet financial debt €3,065m +17% Revenue €792m +21% Recurring EBITDA* €675m +15% Free cash-flow** €399m -6% Net profit Margin 25.8% €490m +13% Adjusted net profit VERY STRONG FINANCIAL PERFORMANCE - AHEAD OF EXPECTATIONS
Page 25
25 REPORTED KEY 2024 FIGURES +16.9% +36.5% +7.6% +19.9% +20.6% -223 -117 -443 -124 792 Revenue Cost of sales Marketing IT services Personnel G&A Recurring EBITDA Margin 25.8% vs. 2023 3,065 +10.8% +37.0% -1,367 25.8% RECURRING EBITDA MARGIN (in €m)
Page 26
26 REPORTED KEY 2024 FIGURES 792 -224 -39 5 3 -138 399 490 Recurring EBITDA D&A Non-reccuring items Financial result Non-controlling interests Taxes Net profit Adjusted net profit €490M ADJUSTED NET PROFIT (in €m)
Page 27
27 * Recurring EBITDA: recurring operating profit(/loss) adjusted for depreciation and amortisation ** Free cash-flow: recurring EBITDA + net change in working capital - capital expenditure ; adjusted for calendar impacts on working capital and unclaimed winnings PRO FORMA KEY 2024 FIGURES 88%Recurring EBITDA to free cash-flow conversion €1,818mNet financial debt €3,788m Revenue €964m Recurring EBITDA* €847m Free cash-flow** €351m Net profit Margin 25.5% €537m Adjusted net profit VERY STRONG FINANCIAL PERFORMANCE
Page 28
28 -373 -147 -583 -173 964 Revenue Cost of sales Marketing IT services Personnel G&A Recurring EBITDA Margin 25.5% 3,788 -1,548 25.5% RECURRING EBITDA MARGIN PRO FORMA GROUP (in €m)
Page 29
29 PRO FORMA FRENCH LOTTERY & RETAIL SPORTS BETTING -125 -56 -213 -35 887 Revenue Cost of sales Marketing IT services Personnel G&A Recurring EBITDA 2,503 Margin 35.4% -1,187 35.4% RECURRING EBITDA MARGIN (in €m)
Page 30
30 PRO FORMA ONLINE BETTING & GAMING -257 -212 -23 -186 -58 293 Revenue Cost of sales Marketing IT services Personnel G&A Recurring EBITDA 1,030 Margin 28.5% 28.5% RECURRING EBITDA MARGIN (in €m)
Page 31
31 FROM RECURRING EBITDA TO FREE CASH-FLOW 85% CONVERSION RATE Recurring EBITDA Net change in working capital * CAPEX ** Free cash-flow *Adjusted for calendar impact on working capital and unclaimed prizes ** Intangible and tangible assets 792 -150 33 792 675 (in €m)
Page 32
32 1.9x LEVERAGE End-2024 Net financial debt/ recurring EBITDA 1.9x Financial liabilities Cash & cash equivalents Euromillions & EuroDreams funds Financial assets Net financial debt 2,474 684 87 58 1,818 Available cash: 598 NET FINANCIAL DEBT OF €1,818m (in €m)
Page 33
33 GROSS FINANCIAL DEBT SCHEDULE A WELL-STAGGERED MATURITY PROFILE 107 107 107 107 107 527 27 19 519 19 19 519 19 19 19 5 0 100 200 300 400 500 600 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 33% 67% Bank debt Senior unsecured bonds 82% 18% Fixed Floating €2.3bn €2.3bn Debt by nature Debt by interest type (post hedging) (in €m)
Page 34
2025 OUTLOOK 5
Page 35
Identification & Omnichannel Draw games 1 POS animation per month Instant games New game to be launched in H2 Keno relaunch Commitment 8th Mission Patrimoine 3rd Mission Nature Retail sports betting FRENCH LOTTERY & RETAIL SPORTS BETTING 2025 OUTLOOK 35
Page 36
◆ Numerous sporting events ◆ 32Red • Launch in new markets • Migration to Kindred platform in the UK ◆ Sportsbook (KSP) roll out in several markets ◆ France: continued implementation of the new organisation ◆ Finland: preparation for the regulation anticipated in 2026 ◆ Further synergies and cost optimisation ◆ “CRUCIAL COMPLIANCE” at-risk gaming behaviour detection tool roll out • To improve detection and support of at-risk players, crucial compliance tool already deployed in the united kingdom and the Netherlands to be gradually rolled out in other European markets 36 ONLINE BETTING & GAMING 2025 OUTLOOK >€50m
Page 37
37 OTHER ACTIVITIES 2025 OUTLOOK PAYMENT & SERVICES New features INTERNATIONAL LOTTERY Launch of the first games derived from the French offering
Page 38
38 2025 GUIDANCE Mitigation measures, from FY 2025 onwards, to reach at least cumulated €100m by FY 2027, to gradually offset impacts from increased taxes (FR & NL) and tightened regulation implementation (NL & UK) Revenue ~ €3.8bn stable vs. pro forma 2024 Recurring EBITDA margin > 24% vs. pro forma 25.5% in 2024
Page 39
39 MID-TERM FINANCIAL GUIDANCE MAINTAINED Net financial debt decrease end-2025 vs. end-2024: => leverage decline (vs. 1.9x end-2024) YEARLY DIVIDEND INCREASE • Reflecting Group financial performance and mid-term outlook Recurring EBITDA to cash conversion rate > 80% CAPEX / revenue 4%−5% Net financial debt / recurring EBITDA < 2x > €150m
Page 40
A CAPITAL MARKET DAY WILL BE HELD 24 JUNE AFTERNOON 40 GROUP AMBITION ASSERT OUR LEADERSHIP IN EUROPE AS A UNIQUE SUSTAINABLE LOTTERY, GAMING AND BETTING OPERATOR
Page 41
Q&A 6
Page 42
APPENDIX
Page 43
43 PRO FORMA KEY FIGURES 2024 €537m ADJUSTED NET PROFIT 964 -369 -92 -33 3 -123 351 537 Recurring EBITDA D&A Non-reccuring items Financial result Non-controlling interests Taxes Net profit Adjusted net profit (in €m)
Page 44
44 FRENCH FISCAL REGIME GGR = Gross gaming revenue (stakes less player winnings)
Page 45
Investor Relations contact: invest@lfdj.com