Tabcorp Holdings Limited · ASX:TAH
Tabcorp — FY2009 Earnings Presentation
28 slides from Tabcorp's earnings presentation, Aug 6, 2009
Slide 1: Tabcorp Full Year Results Presentation ASX cover letter
Tabcorp Holdings Limited ACN 063 780 709 5 Bowen Crescent Melbourne Australia 3004 GPO Box 1943 Melbourne Australia 3001 Telephone 61 3 9868 2100 Facsimile 61 3 9868 2300 For personal use only Website www.tabcorp.com.au 6 August 2009 To: Australian Securities Exchange Companies Announcements Platfor
Slide 2: Full Year Results Presentation 2008/09
For personal use only 2008/09 Tabcorp Holdings Limited Full Year Results Presentation 6 August 2009 1
Slide 3: FY09 financial results
FY09 financial results ¾ Reported NPAT of $522m, up from loss of $165m Win rate in VIP Rebate Business above theoretical rate For personal use only ¾ Normalised NPAT of $496m, up 1.2% after adjusting for Victorian licence amortisation New race fields fees $14m impact Normalised EPS 88.7 cents,
Slide 4: Group results
For personal use only Group results Actual Change 1 Normalised 2 Change 1 $m FY09 on pcp FY09 on pcp Revenue 4,211.3 5.5% 4,170.7 5.6% Variable contribution 2,148.3 2.8% 2,111.8 2.9% Operating expenses (1,072.9) 5.6% (1,072.9) 5.6% EBITDA 1,072.6 (0.2%) 1,036.1 (0.2%) EBIT 895.4 (1.3%) 858.9 (1.3%)
Slide 5: Key drivers of FY09 result
Key drivers of FY09 result $m NPAT For personal use only 23 (31) 25 (14) Marketing and activity related EI Recovery (10) 9 496 (7) 10 Luxbet.com 1 490 FY08 Casinos Wagering Wagering Gaming Casinos Wagering Gaming D&A Interest, FY09 Normalilsed VC VC race fields VC Opex Opex Opex Tax & Normalised NPA
Slide 6: Divisional results
For personal use only Divisional results Casinos Change Wagering Change Gaming Change $m Normalised 1 on pcp on pcp 2 on pcp 2 Net revenues 1,358 2.6% 1,593 7.8% 1,226 6.2% Variable contribution 1,093 1.2% 623 2.6% 398 9.2% Operating Expenses (692) 6.8% (308) 5.1% (76) (1.6%) EBITDA 397 (8.1%) 315 0
Slide 7: Casinos: KPIs
Casinos: KPIs Change Change Change Operating Revenue 1H09 2H09 FY09 For personal use only on pcp on pcp on pcp ¾ Significantly stronger 2H09, with revenues up across all properties EGMs 235 (1.2%) 231 3.2% 465 0.9% ¾ Visitation up 1.2%, rated play up 10.1% Main Gaming Floor 205 4.1% 209 10.1% 414 7.
Slide 8: Casinos: Star City expansion
Casinos: Star City expansion ¾ Project reviewed by Larry Mullin, new CEO Casinos For personal use only Recruited new marketing and hospitality expertise ¾ Changes to design Expansion of gaming floor, poker, F&B, and night life offer Direct funding of F&B and retail fit out – with greater share
Slide 9: Wagering: KPIs
Wagering: KPIs Change Change Change $m ¾ 1H09 benefited from EI recovery For personal use only 1H09 on pcp 2H09 on pcp FY09 on pcp Revenues product ¾ 2H09 continued growth in turnover, offset by Racing Vic 353 8.9% 301 (0.4%) 655 4.4% margin contraction and race fields fees Racing NSW 415 14.1% 381
Slide 10: Gaming: KPIs
Gaming: KPIs Change FY09 FY08 on pcp For personal use only Vic Gaming Vic Gaming Revenue ($m) 1,064 1,014 5.0% ¾ Revenues up 5.0%, increased margins EBIT ($m) 229 207 10.7% ¾ Market share up at 52.6% Venues (period end) 263 264 (0.4%) ¾ Exploring Tabcorp Gaming Solutions post 2012 (TGS) EGMs (averag
Slide 11: Group: Capital expenditure
Group: Capital expenditure For personal use only Capex trend (excluding Project Star) Capital program $m ¾ FY10 capital program modestly below prior years trend ¾ Project Star investment approved at $575m 243 First $50m payment to the NSW 224 Government made in July 09 196 183 ¾ FY09 D&A expense $
Slide 12: Group: Key capital features
Group: Key capital features Debt structure and maturity profile For personal use only 700 US Private Placement Tabcorp Retail Bonds 600 Medium Term Notes 500 Undrawn Bank Debt Drawn Bank Debt 400 $M 300 200 100 - FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 ¾ Average debt maturity ali
Slide 13: Group priorities
Group priorities 2008/09 For personal use only 2008 Group 2009 2010 2011 performance 2012 2013 2010/11 priorities ¾ Casinos - expand Rebuild leadership team 1 Improve Group Deliver Star City expansion performance Improve customer experience Leverage technology and loyalty ¾ Wagering - reposi
Slide 14: Outlook
Outlook ¾ Tabcorp’s businesses have proven resilient in tough economic times For personal use only Positive 2009 revenue performance 2010 economic environment remains challenging Recent trading shows continued modest growth in Casinos, Wagering, and Gaming ¾ FY10 regulatory and gaming tax impa
Slide 15: Summary
Summary ¾ Normalised NPAT up 1.2% For personal use only ¾ Positive revenue performance Gaming – strong growth Casinos – 2H09 improvement Wagering – under pressure ¾ Expenses up with significant investment in Luxbet.com and marketing ¾ Strong Balance Sheet on back of capital management initiati
Slide 16: Appendices
For personal use only Appendices 1. Group results 2. Reconciliation of FY08 comparative results 3. Earnings per share and dividends per share 4. Casinos: Financial data 5. Casinos: Revenues by state and product 6. Wagering: Financial data 7. Wagering: Revenues by state and product 8. Gaming: Financi
Slide 17: 1. Group results
1. Group results Actual Actual Change Normalised Change $m FY09 FY08 on pcp FY09 on pcp For personal use only Total operating revenues 4,167.2 3,957.0 5.3% 4,126.7 5.4% Other revenue 44.1 35.5 24.1% 44.1 24.1% Revenue 4,211.3 3,992.5 5.5% 4,170.7 5.6% Government taxes & levies (1,136.6) (1,075.2) 5.
Slide 18: 2. Reconciliation of FY08 comparative results
For personal use only 2. Reconciliation of FY08 comparative results Casinos Wagering Gaming Other Group FY08 Normalised EBIT as reported 368.8 264.4 261.4 2.0 896.6 FY08 Victorian licence amortisation (8.5) (18.1) (26.6) FY08 Normalised EBIT adjusted comparative 368.8 255.9 243.3 2.0 870.0 FY08 Actu
Slide 19: 3. Earnings per share and dividends per share
3. Earnings per share and dividends per share Normalised earnings per share Dividends per share For personal use only 102.1 99.7 98.2 93.4 94.0 94.0 89.0 88.7 81.0 65.0 7.8% 2.4% (3.8% ) (4.9% ) (5.1% ) 14.1% 9.9% 5.6% 0.0% (30.9% ) FY05 FY06 FY07 FY08 FY09 FY05 FY06 FY07 FY08 FY09 Payout Ratio: 81%
Slide 20: 4. Casinos: Financial data
For personal use only 4. Casinos: Financial data Actual Change Normalised Change $m FY09 FY08 on pcp FY09 FY08 on pcp Revenue 1,398.3 1,364.7 2.5% 1,357.7 1,323.2 2.6% Taxes, levies, commissions and fees (268.7) (247.0) 8.8% (264.7) (242.8) 9.0% Operating Expenses (692.3) (648.4) 6.8% (692.3) (648.4
Slide 21: 5. Casinos: Revenue by state and product
5. Casinos: Revenue by state and product NSW Change Qld Change Total Change For personal use only $m FY09 on pcp FY09 on pcp FY09 on pcp EGMs 179.9 (0.5%) 285.3 1.9% 465.2 0.9% Main Gaming Floor 284.0 7.7% 130.4 5.7% 414.4 7.1% Private Gaming Rooms 121.2 (0.5%) 73.9 18.9% 195.1 6.1% Non-gaming 91.0
Slide 22: 6. Wagering: Financial data
6. Wagering: Financial data Change $m FY09 FY08 on pcp For personal use only Operating revenues Racing - Victoria1 497.7 476.7 4.4% 2 Racing - NSW 795.5 742.3 7.2% Fixed Odds 112.8 92.4 22.1% Trackside 24.4 21.7 12.5% Media 112.3 103.9 8.1% Other 39.9 32.8 21.6% Total operating revenues 1,582.6 1,46
Slide 23: 7. Wagering: Revenue by state and product
7. Wagering: Revenue by state and product NSW1 Vic1 For personal use only Change Change Total Total Change $m FY09 on pcp FY09 on pcp FY09 FY08 on pcp Operating revenues Thoroughbred 546.9 8.4% 338.3 6.1% 885.2 823.2 7.5% Harness 104.7 14.7% 74.4 7.9% 179.1 160.3 11.7% Greyhound 143.9 (1.9%) 85.0 (4
Slide 24: 8. Gaming: Financial data
8. Gaming: Financial data Change $m FY09 FY08 on pcp For personal use only Operating revenues Victorian network - Hotel 683.3 653.9 4.5% - Clubs 381.0 360.0 5.8% Total Victorian gaming 1,064.3 1,013.9 5.0% Keno 129.5 114.1 13.5% Other 5.0 5.6 (11.6%) Total operating revenues 1,198.8 1,133.6 5.8% Oth
Slide 25: 9. Gaming: Market share
9. Gaming: Market share Tabcorp vs Tatts Group 53.0% Vic Gaming Revenue Market Share For personal use only July 2005 to June 2009 TABCRP 52.0% Tabcorp 51.0% Market Share % 50.0% Tatts Group 49.0% 48.0% 47.0% TATTS Sep-05 Sep-06 Sep-07 Sep-08 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Ju
Slide 26: 10. Balance sheet
10. Balance sheet As at As at Change For personal use only $m 30 Jun 09 30 Jun 08 on pcp Total current assets 403.2 301.5 33.7% Licences 688.1 723.9 (4.9%) Other intangible assets 3,641.8 3,506.8 3.8% Property, plant and equipment 1,566.3 1,499.3 4.5% Other non current assets 40.0 90.2 (55.7%) Total
Slide 27: 11. Cashflow
11. Cashflow Actual Change For personal use only $m FY09 FY08 on pcp Net operating flows 1,045.8 994.4 5.2% Net interest payments (164.3) (162.7) 1.0% Income tax paid (209.0) (179.4) 16.5% Payments for PP&E (256.5) (222.0) 15.5% Net operating cash flows 416.0 430.3 (3.3%) Proceeds from sale of asset
Slide 28: For personal use only
For personal use only Front cover: images from Tabcorp’s Casino, Wagering, and Gaming businesses. 27