Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Investor Presentation (January 2009)
16 slides from Tabcorp's investor presentation, Jan 29, 2009
Slide 1: Tabcorp Holdings Limited Equity Capital Raising
For personal use only Tabcorp Holdings Limited Equity Capital Raising 29 January 2009 1
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES For personal use only This presentation has been prepared by Tabcorp Holdings Limited (the “Company”) for professional and sophisticated investors. The information contained in this presentation is for information purposes only and does
Slide 3: Forward-looking statements
Forward-looking statements This presentation includes “forward-looking statements” within the meaning of securities laws of applicable jurisdictions. Forward- For personal use only looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “in
Slide 4: Tabcorp to further strengthen its balance sheet
Tabcorp to further strengthen its balance sheet For personal use only ¾ Equity capital raising $300 million underwritten institutional placement Non-underwritten Share Purchase Plan (“SPP”), with option to scale back above $150 million ¾ Revised dividend policy Annual dividend payout ratio in
Slide 5: Why we are raising equity
Why we are raising equity ¾ Underwritten institutional placement together with the SPP sized to For personal use only Further strengthens strengthen Tabcorp’s balance sheet balance sheet ¾ Enhanced credit metrics Gross debt/EBITDA reduces from 2.4x to 2.1x pro forma for the 12 months ended 31 Dece
Slide 6: What is the offer?
What is the offer? Institutional ¾ $300 million institutional placement For personal use only placement ¾ $5.80 offer price 9.9% discount to Tabcorp’s share price at 28 January 2009 (adjusted for dividend of 35 cents per share) ¾ The new shares will rank equally with existing shares, however will
Slide 7: Why investors should support the offer
Why investors should support the offer Opportunity to invest in Australia’s leading gambling entertainment group on attractive terms For personal use only ¾ Unique portfolio of assets with leading market positions Attractive operations with earnings diversification by business and geography ¾ Stro
Slide 8: 1H09 financial results
1H09 financial results ¾ Normalised NPAT of $262.0m, in line with prior year after absorbing Victorian licence amortisation For personal use only Normalised NPAT up 5.4% if pcp is adjusted to include Victorian licence amortisation Normalised EPS 49.4 cents, up 4.3% if pcp is adjusted to include
Slide 9: Group results
Group results For personal use only Actual Change Normalised Change $m 1H09 on pcp 1 1H09 2 on pcp 1 Operating revenue 2,114.5 5.5% 2,112.6 6.4% Net operating expenses (529.3) 4.9% (529.3) 4.9% EBITDA 548.8 (0.5%) 547.2 2.3% EBIT 461.0 (3.5%) 459.4 (0.4%) NPAT 263.2 (3.7%) 262.0 0.1% Non-recurring i
Slide 10: Divisional results
Divisional results For personal use only Casinos Change Wagering Change Gaming Change $m 1 Normalised on pcp on pcp 2 on pcp 2 Operating revenue 672.0 0.2% 828.1 13.0% 615.6 5.3% Revenue 674.7 0.2% 834.0 13.0% 628.8 5.7% Variable contribution 545.8 (0.8%) 327.7 8.4% 204.2 8.5% Net operating expenses
Slide 11: Dividend policy
Dividend policy ¾ Tabcorp has revised its dividend policy For personal use only ¾ Tabcorp expects to maintain a dividend payout ratio in the range of 70% to 80% over the coming years ¾ This policy Supports the ongoing investment in our existing businesses Ensures that shareholders benefit from a
Slide 12: Casinos: Star City expansion update
Casinos: Star City expansion update ¾ Project scope For personal use only New 250 room 5 star hotel Sydney Harbour orientation 30 restaurants and bars Expanded and refurbished ballroom Over 30% increase in gaming product ¾ Conditional planning approvals obtained ¾ Construction Selection
Slide 13: Key risks
Key risks For personal use only ¾ Domestic economic conditions and their impact on household disposable income in Victoria, NSW and Queensland ¾ Changes in the wagering landscape, including changes to race fields legislation, competition, removal of advertising restrictions and the effectiveness of
Slide 14: Wagering: A changing environment
Wagering: A changing environment Market Changes Response For personal use only ¾ New race fields fees ¾ Tabcorp’s market response Imposition of product fees on wagering Product/distribution leadership operators by each state racing industry Pari-mutuel price promotions announced last year Ex
Slide 15: Capital raising and dividend timetable
Capital raising and dividend timetable For personal use only Event Date Institutional placement Thursday, 29 January 2009 Ordinary shares re-commence trading 10.00am Friday, 30 January 2009 SPP record date Wednesday, 4 February 2009 Institutional settlement date Wednesday, 4 February 2009 Institutio
Slide 16: For personal use only
For personal use only Front cover: Images from Tabcorp's Casino, Wagering and Gaming businesses.The Phantom of the Opera photograph is courtesy of Jeff Busby. 16
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