Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Shareholder Meeting (October 2014)
27 slides from Tabcorp's shareholder meeting presentation, Oct 28, 2014
Slide 1: 2014 Annual General Meeting
For personal use only 2014 Annual General Meeting
Slide 2: Chairman's address
For personal use only Chairman’s address
Slide 3: TAB has been part of NSW life for 50 years
For personal use only TAB has been part of NSW life for 50 years The NSW TAB’s origins • Started operations on December 9, 1964 • Six TAB outlets on opening day • Betting on just two meetings on opening day 3
Slide 4: The NSW TAB today
For personal use only The NSW TAB today The NSW TAB is, today, a world-class betting operation • More than 400 million bets a year • Co-mingling pools with Singapore • Offering betting on sport and racing from 14 countries • In 2,100 venues across the state • Underpinning the economic sustainability
Slide 5: Celebrating 20 years of Tabcorp
For personal use only Celebrating 20 years of Tabcorp Tabcorp has been a successful and trusted gambling company • Since formation in 1994, Tabcorp has returned: – $5 billion in dividends to shareholders – $16 billion in gambling taxes – $2.5 billion in corporate taxes – $9 billion in racing industr
Slide 6: Tabcorp today
For personal use only Tabcorp today Tabcorp has an attractive portfolio of market-leading brands 6
Slide 7: Tabcorp's mission and purpose
For personal use only Tabcorp’s mission and purpose We create entertainment experiences where the passion, thrills and enjoyment of the Australian way of life come alive. At the same time, we put back into our communities and take our social responsibilities seriously. We want you to love the game l
Slide 8: 2014 financial overview
For personal use only 2014 financial overview A positive year, demonstrating the benefits of our investment strategy • Statutory Net Profit After Tax (NPAT) $129.9 million, up 2.6% • NPAT from continuing operations before significant items $149.4 million, up 7.4% • Full year dividend 16 cents, fully
Slide 9: We have advanced Tabcorp's strategic position
For personal use only We have advanced Tabcorp’s strategic position Recent initiatives have made Tabcorp a much stronger business • NSW retail wagering exclusivity extended to 2033 • Queensland Keno licence extended to 2047 • ACTTAB acquired and now part of our portfolio • US racing vision agent acq
Slide 10: Leadership in responsible gambling
For personal use only Leadership in responsible gambling Our commitment to responsible gambling is ingrained in our culture • In 2014, Tabcorp was again rated the global gambling industry leader in the Dow Jones Sustainability Index 10
Slide 11: Stakeholder benefits in FY14
For personal use only Stakeholder benefits in FY14 Tabcorp’s stakeholders share in the benefits of our operations • Tabcorp is the most substantial contributor to the Australian racing industry • Tabcorp returned $735 million to the Australian racing industry in FY14 • Tabcorp paid more than $500 mi
Slide 12: Trends in the Australian wagering industry
For personal use only Trends in the Australian wagering industry Inconsistency in regulation and licensing pose a challenge to racing and wagering • Unlicensed offshore operators are betting on Australian sport and racing and targeting Australian customers – Creates risks to consumer protection and
Slide 13: The difference in wagering taxes paid
For personal use only The difference in wagering taxes paid Turnover on Racing and Wagering Taxes Paid Sport (A$billion) – FY14 (A$million) – FY14 12 250 10 200 8 150 6 100 4 2 50 0 0 Tabcorp (NSW and Corporate Tabcorp (NSW and Corporate Victorian TAB) Bookmakers (NT) Victorian TAB) Bookmakers (NT)
Slide 14: Update on legal proceeding
For personal use only Update on legal proceeding • Tabcorp has appealed a Supreme Court judgment relating to our claim for a payment of $686.8 million from the State of Victoria • Matter relates to payment due as a consequence of arrangements entered into in 1994 and which centres on the expiry of o
Slide 15: Conclusion
For personal use only Conclusion Tabcorp is a leading Australian gambling entertainment company • An attractive portfolio of long-term licences • Diversified across four businesses • Deep customer base, with strong and trusted brands • Future focus on enhancing the customer experience and prioritisi
Slide 16: Managing Director and CEO's Address
For personal use only Managing Director and CEO’s Address
Slide 17: Tabcorp today
For personal use only Tabcorp today Tabcorp has an attractive investment case • A portfolio of quality integrated gambling entertainment businesses – Long-dated licences – Geographic diversification – Underpinned by strong relationships with stakeholders • Customer centric approach – Strong, trusted
Slide 18: Wagering
For personal use only Wagering Tabcorp is the market-leading Wagering operator across all channels, with the largest customer base • FY14 EBITDA $282.2 million, up 6.5% • Product highlights – Strong performance on The Championships and Soccer World Cup • We have been investing in digital and fixed o
Slide 19: Media and International
For personal use only Media and International Tabcorp is a global leader in racing broadcasting and wagering • FY14 EBITDA $68.5 million, up 2.2% • Acquired US vision distributor, Wyvern • Singapore now pooling into NSW • Returns to racing industry up 15.6% • Big Sports Breakfast now broadcast on Sk
Slide 20: Gaming Services
For personal use only Gaming Services Tabcorp Gaming Solutions is adding value to gaming venues in Victoria and NSW • FY14 EBITDA $67.0 million, up 14.9% • A solid foundation in Victoria, with approximately 8,500 contracted machines • Commenced entry into NSW market in FY14 20
Slide 21: Keno
For personal use only Keno An estimated 2.7 million people play Keno each year in NSW, Queensland & Victoria • FY14 EBITDA $72.2 million, down 4.4% • Keno has powerful recreational appeal, strong brand recognition and a clear plan to improve performance • Regulatory approval being sought to pool jac
Slide 22: Key capital features
For personal use only Key capital features A focus on maintaining a strong balance sheet and lowering our funding costs • Well diversified debt structure with next maturity in June 2016 400 400 • Investment grade credit rating 84 250 • ACTTAB acquisition funded from 150 127 existing bank facilities
Slide 23: Capital expenditure
For personal use only Capital expenditure We are investing our capital in high growth areas • Wagering – Fixed odds systems – Digital strategy, technology enhancements • Media and International – International co-mingling • Gaming Services – NSW expansion, EGMs, In-EGM loyalty • Keno – Jackpot pooli
Slide 24: High performance culture through engagement and diversity
For personal use only We are driving a high performance culture through engagement and diversity 24
Slide 25: Tabcorp in the community
For personal use only Tabcorp in the community Tabcorp has a proud track record of supporting the community • $1 million of voluntary funding donated to charitable organisations in FY14 • Tabcare program – One day of paid volunteer’s leave each year – Matched fundraising program Presentation of a $5
Slide 26: Our priorities in 2015
For personal use only Our priorities in 2015 Focused on capitalising on the significant opportunities available to Tabcorp • Wagering: Digital and retail integration, product expansion and ACTTAB integration • Media and International: Conclude media rights negotiations and expand international co-mi
Slide 27: For personal use only
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