Sun International Limited · JSE:SUI
Sun International — Investor Presentation (March 2011)
61 slides from Sun International's investor presentation, Mar 8, 2011
Slide 1: Monticello Grand Casino & Entertainment World
Monticello Grand Casino & Entertainment World Tuesday 8 March 2011
Slide 2: Presentation Outline
Presentation Outline Vision Entry into Chile market Legislative environment Partners Overview of the property Earthquake The Brand Casino market & Monticello performance Future prospects
Slide 3: Monticello Grand Casino & Entertainment World Vision
Monticello Grand Casino & Entertainment World Vision To become the most unique, exciting gaming and entertainment destination in Latin America
Slide 4: Entry into Chile market
Entry into Chile market SI first investigated Chile in 2004 when the new casino dispensation was being introduced Originally explored a partnership with the largest operator in the existing municipal casinos – Martinez family – Enjoy SI liked the potential, the legislative framework and propos
Slide 5: Entry into Chile market
Entry into Chile market Martinez (Enjoy) did not want to bid for Santiago but rather protect their existing Vina del Mar investment SI agreed not to compete with Enjoy up to December 2006 Mostazal opportunity was introduced to SI in late 2006 via Novomatic who had bought into the project from
Slide 6: Entry into Chile market
Entry into Chile market Project needed substantial redesign and much of this was done during construction Construction program: Commencement of construction – November 2007 Casino opened – 8 October 2008 Paseo opened – September 2009 Hotel – 17 December 2009 Earthquake – 27 February 20
Slide 7: Legislative environment
Legislative environment New gaming legislation passed in 2005 Maximum of 3 casinos in each of the country‟s 13 regions – must be >70 kms from one another 7 casinos exist under old regime Must convert in 2015 Tax rates vary per municipality but generally lower than new regime
Slide 8: Legislative environment
Legislative environment 15 new regime licences awarded in 2006 No major changes to gaming legislation since 2005 Very well regulated environment
Slide 9: Partners
Partners Sun International Novomatic AG Chilean Enterprises S.A. International Group of Gaming and Resorts Chile S.A.
Slide 10: Shareholder structure
Shareholder structure Novomatic Sun International 50% 50% NovoSun Chilean International Group of 80% Enterprises Gaming and Resorts 10% 10% San Francisco Resorts SA 100% San Francisco Investments SA
Slide 11: Introduction to Novomatic
Introduction to Novomatic Novomatic Group of Companies: 30 year old Austrian private company - founder and major shareholder is Prof Johann Graff Origins in slot machine manufacture - with focus on innovation and manufacture Diversified into sports betting and operating slot machines in casino
Slide 12: Introduction to Novomatic
Introduction to Novomatic Novomatic Group of Companies (contd): The group is now also doing business in America, Africa, Asia and Australia with a particular focus on South America Is a very significant global gaming group and despite the tough recessionary conditions recorded headline results:
Slide 13: Overview of the property – Floor plans
Overview of the property – Floor plans
Slide 14: Casino ground floor
Casino ground floor Sector No Fumadores Cajas Sector Fumadores Salén Privé
Slide 15: Casino first floor
Casino first floor
Slide 16: Paseo Monticello
Gic LaFeté Strike Zone Punto de encuentro Mercado Monticello Santa Masa TE m0 I troneparencis Santa Brasa Co&Co Extreme Arcade
Slide 17: Overview of the property – Casino
Overview of the property – Casino Casino: 1562 Slot machines 566 Non Smoking 1252 - Video 996 Smoking 234 – Stepper 142 Prive 50 – Electronic Roulette & Black Jack 29 – Poker 84 Tables 27 - American Roulette 34 Non Smoking 19 - Poker 34 Smoking 25 - Black Jack 16 Priv
Slide 18: Overview of the property – Hotel and Convention Facilities
Overview of the property – Hotel and Convention Facilities 2343 m2 Convention and meeting space 155 room hotel with Spa & Gym, 2 bars and restaurant
Slide 19: Earthquake
Earthquake 27 February 2010 Closed for 4 months – superficial damage US$8.9 m for repairs US$22.9 m for BI claim US$2.2 m for marketing re-launch Community project to help rebuild homes in San Francisco de Mostazal Reopened 30 June 2010 pics
Slide 20: Earthquake
Earthquake pics
Slide 21: Earthquake
Earthquake
Slide 22: The Brand
The Brand Monticello Grand Casino y Mundo de Entrentencion ‘Diversion en Grande’
Slide 23: Background
Background History of casinos in Chile Location and limited family appeal Research showed many potential customers perceptions open to change Do not trust Not for the family Wary / skeptical „cause they do not know how But not averse to visiting
Slide 24: To introduce a new form of entertainment to the market
To introduce a new form of entertainment to the market A family entertainment destination centered on a casino
Slide 25: The Brand and Reputation
The Brand and Reputation • The product and its facilities • Appearance and presentation of the property • The guest experience at all touch points and times • The first timers’ experience • Most Valued Guest programme • Advertising and other communications
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Slide 32: Launch Campaign-The Creative Work-Press Insert
Launch Campaign-The Creative Work-Press Insert
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Slide 35: VEN A LA DIVERSION EN GRANDE
VEN A LA DIVERSION EN GRANDE PANAMERICANA SUR KM. 57 WWW.MONTICELLO.CL me NS AY F*N oneelhs, VEN A LA DIVERSION EN GRANDE PANAMERICANA SUR KM. 57 WWW.MONTICELLO.CL
Slide 36: Monticello – Ven a la diversion en grande
AY <li th nticello VEN ALA DIVERSION EN GRANDE PANAMERICANA SUR KM. 57 WWW.MONTICELLO.CL
Slide 37: Promotional focus
Promotional focus • Gaming Promotions • Build hype and excitement around the brand • To reward • To showcase winners • People need to see others winning • To influence play behaviour • Additional visit/s • Lengthen playtime • Attract to quieter times outside of peak periods • Change social behaviour
Slide 38: PESTOLAS |
PESTOLAS | wage ’ Trials
Slide 39: Peak days in the week
Daily average per quarter since re-opening 300,000 250,000 200,000 160,000 100,000 60,000 E \onticell nticello
Slide 40: Which is the first casino that comes to mind?
¿Cuál es el primer casino que se le viene a la mente?¿Y cuál otro? TOM Total Menciones 4Q10 4Q09 Base: 313 4Q10 4Q09 68,8 87,3 Monticello 61,2 Monticello 79,3 Enjoy Viña 32,9 17,1 59,6 Enjoy Viña 31,9 Enjoy Santiago 24,7 0,5 9,8 Enjoy Santiago 1,0 La Serena/Coquimbo/Peñuelas 2,9 4,8 Casino Juegos de
Slide 41: Which casinos have you attended in the last six months?
¿A cuál o cuáles casinos ha asistido en los últimos seis meses? Total menciones espontáneas 1Q09 2Q09 3Q09 4Q09 4Q10 26 29 Monticello 46 40 74 45 38 Enjoy de Viña 29 47 35 7 10 Pucón 7 2 13 19 20 La Serena/Coquimbo/Peñuelas 15 10 12 4 6 Iquique 0 0 7 2 5 Arica 0 2 5 9 0 Enjoy de Colchagua 3 8 2 0 0
Slide 42: Monticello vs Enjoy Santiago preference
Finalmente, entre Monticello y Enjoy Santiago ¿cuál de los dos casinos prefiere? Base: 313 Monticello Enjoy Santiago 88 89 85 85 81 80 81 79 69 65 35 31 21 20 19 19 15 15 12 11 Total ABC1 C2 C3 Hombre Mujer 18 a 24 años 25 a 40 años 41 a 54 años 55 años y más 42
Slide 43: Non-gaming promotions, events and entertainment
Non-gaming promotions, events and entertainment To reward customers To build the brand as a multi-dimensional entertainment experience through PR and word of mouth Examples: Jennifer Lopez & Marc Anthony Tennis masters High profile Chilean artists
Slide 44: Customer Strategy – relationships with customers
Customer Strategy – relationships with customers Top down focus with commensurate levels of personalization and reward Tiered approach 2-way communications
Slide 45: Casino Market and Monticello Performance
Casino Market and Monticello Performance Map of Chile and locations Direct competitive landscape MVG Data Revenue & EBITDA trends Costs
Slide 46: New Casinos In Chile
New Casinos In Chile Casino Sol Calama Latin Gaming S.A Enjoy Antofagasta Enjoy S.A Antay Casino & Hotel Gran Casino Copiapo S.A Casino de Juegos de Ovalle Casinos Austria Enjoy Santiago Enjoy S.A Enjoy Viña del Mar (Municipal Casino) Enjoy S.A Monticello Grand Casino San Francisco Investment Casino
Slide 47: New Casinos In Chile
New Casinos In Chile Monticello Grand Casino San Francisco Investment Casino de Colchagua Casino de Juegos de Colchagua S.A Gran Casino Talca Casino Talca S.A Termas de Chillán Casino de Juegos Termas de Chillán S.A. Marina Del Sol Marina Del Sol S.A Gran Casino Los Angeles Casinos Austria Dreams Te
Slide 48: SCJ Casinos Win (US$)
SCJ Casinos Win (US$) Casinos de Juego Annualized % Monticello Grand Casino 126,846,677 28.4% Marina del Sol 57,272,323 12.8% Casino de Juego de Rinconada 48,327,242 10.8% Enjoy Antofagasta 46,484,701 10.4% Dreams Temuco 31,898,476 7.1% Others - 30.5% Total US$ 447,211,305 100.0%
Slide 49: Monticello Direct Competition
Monticello Direct Competition •Enjoy Santiago •904 slot machines •50 tables •200 bingo positions • 3 Restaurants •Night Club •Viña del Mar •1.200 slot machines •48 tables •200 bingo positions • 2 restuarants 150 km 100 km 50 km •Conference Center •Night Club •5 star Hotel, 90 rooms •San Antonio Mont
Slide 50: Geographical Segmentation Of Monticello Database
Geographical Segmentation Of Monticello Database Region Total RM 75% VI 16% V 2% Others 6% Total 100% •Over 93% of MVG cardholders comes from RM, V or VI
Slide 51: Market Share vs Enjoy Santiago Jan 09 to Jan 11
Market Share vs Enjoy Santiago Jan 09 to Jan 11 Source: SCJ Statistics Report
Slide 52: MVG database - monthly growth
MVG database - monthly growth
Slide 53: MVG database
MVG database < 2 - = ° > a = = oe c So = 2) ae [o) Oo & E 3 = = & a
Slide 54: Demographic Segmentation
Demographic Segmentation 16.0% 14.5% 14.0% 12.4% 12.0% 10.2% 10.2% 10.0% 8.8% 8.7% 8.2% 8.0% 7.4% 6.4% 5.9% 6.0% 4.5% 4.0% 2.8% 2.0% 0.0% 18 - 25 26 - 35 36 - 45 46 - 55 56 - 65 66 - + Female Male
Slide 55: Daily average sign ups
- 100 300 400 500 600 200 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Daily average sign ups Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11
Slide 56: Revenue Trend
Revenue Trend Quarterly revenues since opening (US$m) A 34.9 2008 2009 2009 2009 2009 2010 2010 2010 Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Feb Jul-Sep Oct-Dec 5 AS : L& \onticells
Slide 57: EBITDA Trend
7.0 6.0 5.0 4.0 3.0 2.0 1.0 EBITDA Trend " Quarterly EBITDA since opening (US$m) | 2.8 oN 2.2 x >< -0.9 2009 2009 2009 2009 2010 2010 2010 Jan - Maf Apr- Jun JUI- Sep Oct- Dec Jan- Fed JUT- Sep Oct- Dec 5 AS : BA \ onticells
Slide 58: Analysis of Costs
Analysis of Costs Costs as % of revenue Revenues 100% Casino Levies & VAT 29% Tables costs 6% Slots costs 6% Rooms costs 2% F & B costs 8% A&G 9% Marketing 14% Property costs 8% Management fees 4% Other 1% EBITDA 14%
Slide 59: Future prospects
Future prospects Why can we continue to grow over next 3 years Growth of specific days – eg Sundays Adapting to local demand and conditions Penetration and customer sign ups Current capacity Future capacity Bingo area
Slide 60: Why expect market growth
Why expect market growth The potential of the market has not been reached Current estimated propensity to gamble for regions V, VI and RM is 0.4% Growth to a propensity 0.6% is probable over the next few years and a potential of probably 0.8% New form of entertainment in Chile suggests at le
Slide 61: Muchas Gracias
Muchas Gracias
Sun International — Investor Presentation (March 2011) on 6ix