Playtech : Annual Report 2021

Playtech plc Annual Report and Financial Statements 2021

Playtech is the leading technology company in the gambling industry, with a focus on regulated and regulating markets.

Founded in 1999 and premium listed on the Main Market of the London Stock Exchange, Playtech is focused on bringing innovative products and data-driven technology to licensees and end customers.

Contents

Strategic Report

1. Financial highlights
2. Group highlights
3. Company overview

1. Chairman's statement

1. Our investment case

1. Trends in our markets

1. Strategy

1. Sustainable Success

1. Our business model

1. US market

1. Stakeholder engagement

1. Chief Executive Officer's review

1. Our awards

Technology and innovation

30 Our diversified technology

1. The infrastructure of the industry
2. Innovation

1. Our content studios
2. Playtech Academy
3. Our B2C division

1. Regulation

1. Responsible business and sustainability

1. Chief Financial Officer's review

1. Emerging risks, principal risks and uncertainties

1. Viability statement

Governance

1. Chairman's introduction to governance

1. Board of Directors

1. Directors' governance report

1. Audit Committee report

Remuneration Report

1. Statement by the Committee Chairman

1. Directors' Remuneration Policy

1. Annual report on remuneration

1. Directors' report

Financial Statements

1. Independent auditor's report

1. Consolidated statement of comprehensive income
2. Consolidated statement of changes in equity
3. Consolidated balance sheet

1. Consolidated statement of cash flows

1. Notes to the financial statements ⁜

1. Company statement of changes in equity
2. Company balance sheet
3. Notes to the Company financial statements

1. Five-yearsummary

Company Information

228 Company information

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Playtech plc Annual Report and Financial Statements 2021

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Strategic Report

Financial highlights

Strong financial performance

Very strong performances from B2B and Snaitech drive 25% growth in Group Adjusted EBITDA.

Revenue1

€1,205m

	2021	1,205
	2020	1,079
	2019	1,441

Adjusted operating cash flow2

€315m

2021	315
2020	364
2019	321

1. From continuing operations.
2. Operating cash flow includes Finalto and is adjusted for Snaitech's PREU tax payment of €90 million relating to 2020, which was paid in 2021 due to circumstances around COVID-19.

Share price chart

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1 Jan	1 Apr	1 Jul	1 Oct	1 Jan	1 Apr	1 Jul	1 Oct	31 Dec
2020	2020	2020	2020	2021	2021	2021	2021	2021

Adjusted EBITDA1

€317m

	2021	317
	2020	254
	2019	375

Revenue from regulated markets1

85%

2021	85%
2020	84%
2019	87%

"Our core B2B and B2C businesses remained resilient throughout the pandemic-hit months to drive a very strong EBITDA performance in 2021."

Andrew Smith

Chief Financial Officer

2 Playtech plc Annual Report and Financial Statements 2021

Group highlights

Success across the Group

Report Strategic

Business expansionUS momentum

Playtech continued to expand its presence in the US in 2021. The Company signed a strategic agreement with the Greenwood Companies to license Playtech products in Michigan, Indiana, New Jersey and Pennsylvania. The Group also built on its existing presence in New Jersey by partnering with Unibet to supply the Kindred- owned group with RNG Casino software, with more states to follow. Playtech also announced the launch of its Live Casino offering in the US, with state-of-the-art facilities opening in Michigan and New Jersey.

Technology leadership Record-breakingLive Casino game

Playtech's Live division rolled out a number of exciting new products, including a Who Wants To Be a Millionaire™ roulette game that has broken records for the most number of players on a Live table in the Company's history. The Live Casino vertical also added to its gameshow series with the launch of The Money Drop Live™, based on the iconic Banijay-owned brand, among others.

Building a better business Recognition in Safer Gambling

Alongside its industry-leading products and services, Playtech has worked with its licensees to raise industry standards in responsible business and safer gambling. The progress made in this space was recognised by GamCare, which made Playtech the first recipient of its new B2B Safer Gambling Standard. Playtech also partnered with Kindbridge to advance research into treatment for gambling-related disorders in a virtual setting.

Significant progress	Snaitech online	Further progress with
in LatAm	outperformance	Sustainable Success
Playtech's operations in Latin America continue	Snaitech continued its record of outperformance,	Following the launch of Playtech's Sustainable
to go from strength to strength, with existing	cementing its position as the number one retail and	Success strategy in 2020, 2021 saw significant
partnerships showing strong growth alongside	online sports betting brand in Italy across 2021.	progress towards the programme's goal of
several new strategic agreements in the region.	While pandemic-driven retail closures and sporting	building a safer, more sustainable entertainment
Caliente in Mexico saw significant growth	cancellations impacted the business, EBITDA from	industry for the benefit of all stakeholders. Among
alongside an increasing contribution from Wplay in	Snaitech's online business grew by over 50% as it	the key developments was the launch of a new
Colombia. The Group also launched in Costa Rica	benefited from its leading technology and	Sustainability and Public Policy Committee that
and Panama, while plans are underway to open a	brand recognition.	will advise on a wide range of responsible business
new Live Casino facility in Peru to better serve		topics and is directly overseen by the Board.
Playtech's clients in the region.

Extended B2B agreements

Playtech made good progress in both extending agreements with the consumer-facing online gambling giants and striking new partnerships. The Company announced a five-year contract extension with Flutter Entertainment for its Paddy Power, Betfair and Sky Casino brands. In addition, it extended its partnership with Swiss Casinos through the launch of a new Live Casino studio and signed a new agreement with Scientific Games that allows both parties to benefit from each other's reach and scale.

Strategic,

multi-channel launch

Playtech signed a new, long-term strategic agreement with Holland Casino, enabling the state-owned casino operator to expand into the online betting and gaming space. Having launched with Playtech's full turnkey multi-channel technology as well as other products, Holland Casino has the most advanced offering in the Netherlands. A Live Casino facility has also been built near one of Holland Casino's existing locations as part of the deal.

Significant evolution of the Board

2021 was a significant year in the evolution of Playtech's Board. Brian Mattingley took over as Chairman, bringing significant industry experience and a track record of delivering strong corporate governance. Brian appointed a new

Senior Independent Director, Ian Penrose. Linda Marston-Weston joined the Board as a Non-executive Director, bringing extensive experience across a range of disciplines, including in promoting diversity and inclusion.

Playtech plc Annual Report and Financial Statements 2021

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