Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Investor Day (October 2018)
78 slides from Tabcorp's investor day presentation, Oct 25, 2018
Slide 1: Tabcorp Investor Day
TABCORP INVESTOR DAY 25 OCTOBER 2018
Slide 2: Agenda
AGENDA Welcome & Introductions 9.30am Group Overview – David Attenborough 9:30 – 10:00 am CFO Overview – Damien Johnston 10:00 – 10:30 am Lotteries & Keno – Sue van der Merwe 10:30 – 11:15 am Morning Tea 11:15 – 11:30 am Gaming Services – Frank Makryllos 11:30 – 12 noon Wagering & Media – Adam Ryten
Slide 3: Welcome and Introductions
WELCOME AND INTRODUCTIONS David Attenborough Damien Johnston Sue van der Merwe Frank Makryllos Adam Rytenskild MANAGING DIRECTOR & MANAGING DIRECTOR MANAGING DIRECTOR MANAGING DIRECTOR CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER LOTTERIES & KENO GAMING SERVICES WAGERING & MEDIA Merryl Dooley Cli
Slide 4: Group Overview
GROUP OVERVIEW DAVID ATTENBOROUGH
Slide 5: Tabcorp is Australia's Leading Diversified Gambling Entertainment Group
TA B C O R P I S A U S T R A L I A’ S L E A D I N G D I V E R S I F I E D G A M B L I N G E N T E R TA I N M E N T G R O U P TA B C O R P — K E Y M E T R I C S ( F Y 1 8 P R O - F O R M A ) 1 OVERVIEW ~$5.1B ~$1.0B Gaming Services 6% • Tabcorp completed its combination with Tatts Group 15% in Decemb
Slide 6: Our Business Has Global Scale
OUR BUSINESS HAS GLOBAL SCALE 7 6 ANNUAL REVENUE (A$ BILLIONS) 5 4 3 2 1 0 IGT GVC / Tabcorp Scientific Bet365 Paddy Power Stars / William Hill Intralot Unibet Ladbrokes Games / Sportsbet BetEasy (ex. AUS) Australian Wagering Australian Lotteries & Keno Australian Gaming Services1 International/Othe
Slide 7: The Australian Market is Large and Growing
THE AUSTRALIAN MARKET IS LARGE AND GROWING AUSTRALIAN GAMBLING EXPENDITURE BY PRODUCT SEGMENT $23.6B $23.7B $22.7B 0.3 0.4 $21.2B 0.3 $20.7B 2.0 $19.4B 2.2 CAGR FY12-17 0.3 2.0 0.3 TOTAL 4.1% 0.3 2.0 2.2 3.9 4.4 1.8 3.6 KENO 4.6% 3.4 3.2 LOTTERIES 2.5% 3.0 5.2 5.2 4.8 WAGERING 7.7% 4.1 4.4 3.7 CASIN
Slide 8: Leadership Positions in Each of Four Core Markets
W E H AV E L E A D E R S H I P P O S I T I O N S I N E A C H O F O U R CORE MARKETS LOTTERIES & KENO W AGERING & MEDIA GAMING SERVICES SHARE OF TABCORP REVENUE1 46% 48% 6% Currently provide services to ~85% DOMESTIC MARKET SHARE2 Approximately 84% Approximately 57% of gaming machines nationally 720K
Slide 9: Our Business Has a National Footprint
O U R B U S I N E S S H A S A N AT I O N A L F O O T P R I N T QUEENSLAND NORTHERN TERRITORY 908 1,029 899 34,000 1002 NEW SOUTH WALES 60 21 1,300 62 WESTERN AUSTRALIA 2,110 1,815 1,336 94,000 2,347 ACT 422 2,400 47 39 48 130 58 LEGEND VICTORIA WAGERING MEDIA LOTTERY KENO GAMING SOUTH AUSTRALIA TASM
Slide 10: Valued Partner for Governments, Industry, Retail Venues and Communities
W E A R E A VA L U E D PA R T N E R F O R G O V E R N M E N T S , I N D U S T R Y, R E TA I L V E N U E S A N D C O M M U N I T I E S INDUSTRY & GOVERNMENT COMMUNITY ~$2B Federal • Voluntary community contributions of $1.9M in FY18 Taxes • Partnerships with charities including National Jockey Trust
Slide 11: Diversified and Secured by Long-Dated Licences
OUR BUSINESS IS DIVERSIFIED ACROSS GEOGRAPHIES AND P R O D U C T S A N D S E C U R E D B Y L O N G - D AT E D L I C E N C E S TA B C O R P L I C E N C E / A U T H O R I S ATI O N P O RT F O L I O 2100 2098 2097 2072 2064 2062 2064 LICENCES EXPIRY 2052 2050 2052 2050 2047 2035 2032 2032 2028 2027 202
Slide 12: Regulatory Changes Supporting a More Sustainable Industry
R E G U L AT O R Y C H A N G E S A R E S U P P O R T I N G A M O R E S U S TA I N A B L E INDUSTRY AND POSITIVE GROWTH OUTLOOK R E G U L AT O RY R E F O R M H A S C R E AT E D A B E T T E R R E G U L AT E D A N D M O R E S U S TA I N A B L E G A M B L I N G I N D U S T RY SYNTHETIC POINT OF CONSUMER
Slide 13: Mobilising Across the Group with Clarity of Purpose
WE ARE MOBILISING ACROSS THE GROUP WITH CLARITY OF P U R P O S E A N D A S T R AT E G I C F O C U S VISION THE TRUSTED GAMBLING ENTERTAINMENT COMPANY PURPOSE EXCITEMENT WITH INTEGRITY STRATEGIC PILLARS SUPERB BRILLIANT COLLABORATIVE CUSTOMER LED EXPERIENCES EXECUTION PARTNERSHIIPS We understand our
Slide 14: Each Business Well Positioned for Long-Term Growth
I M P R O V I N G O P E R AT I N G E N V I R O N M E N T M E A N S E A C H B U S I N E S S I S WELL POSITIONED FOR LONG-TERM GROWTH LOTTERIES AND KENO GAMING SERVICES WAGERING AND MEDIA • Well established category and business • Role as government-licensed monitor partially • Category remains highly
Slide 15: CFO Overview
CFO OVERVIEW DAMIEN JOHNSTON
Slide 16: A Strong Focus on Returns
A STRONG FOCUS ON RETURNS D R I V I N G I M P R O V E D R E T U R N S T H R O U G H I N T E G R AT I O N B E N E F I T S A N D D I S C I P L I N E I N M A N A G I N G O P E R AT I N G E X P E N S E S , C A P I TA L A L L O C AT I O N A N D T H E B A L A N C E S H E E T I N T E G R AT I O N PRODUCTIV
Slide 17: Integration on Track
I N T E G R AT I O N O N T R A C K D E C I S I O N S TA K E N TO U N D E R P I N $ 5 0 M O F E B I T D A S YN E R G I E S A N D B U S I N E S S I M P R O V E M E N T S I N F Y1 9 A N D O N T R A C K T O D E L I V E R AT L E A S T $ 1 3 0 M I N F Y 2 1 FY19 $M • Corporate organisational restructure l
Slide 18: Productivity Improving, Further Synergy Benefits Expected
PRODUCTIVITY IMPROVING, WITH FURTHER BENEFITS FROM SYNERGIES EXPECTED THROUGH FY19 TO FY21 TA B C O R P F Y1 4 - F Y1 8 P R O D U C T I V I T Y 1 ( $ M ) TA B C O R P O P E X B E F O R E S I G N I F I C A N T I T E M S ( $ M ) Employment costs Communication and technology costs Advertising and promo
Slide 19: Capital Structure Reflects Larger, More Diversified Business
T H E C A P I TA L S T R U C T U R E R E F L E C T S T H E B E N E F I T S O F A L A R G E R , MORE DIVERSIFIED BUSINESS TA B C O R P G R O S S D E B T 1,2/ E B I T D A D E B T M AT U R I T Y P R O F I L E ( $ M ) Target c.3.0x - 3.5x 1000 3.4 Target c.2.0x - 2.5x 2.5 500 2.2 2.1 1.9 0 FY19 FY20 FY2
Slide 20: Integration Benefits and Growth Investment to Improve Returns
I N T E G R AT I O N B E N E F I T S A N D I N V E S T M E N T I N G R O W T H I N I T I AT I V E S EXPECTED TO DELIVER IMPROVED RETURNS OVER FY19 TO FY21 PRO-FORMA BAU CAPEX ($M)1 TA B C O R P R O I C $M 12.9% 13.4% 13.3% 12.4% 12.5% 12.5% Tabcorp stand-alone2 253 6.6% 240 217 Pro-forma combined gr
Slide 21: Continued Focus on Driving Shareholder Returns
CONTINUED FOCUS ON DRIVING SHAREHOLDER RETURNS TA B C O R P H I S T O R I C A L PAY O U T R AT I O TO TA L S H A R E H O L D E R R E T U R N 98% 98% 250 TOTAL RETURN INDEX Tabcorp 90% 89% 200 150 S&P/ASX100 79% 100 FY14 FY15 FY16 FY17 FY18 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 • Target dividend
Slide 22: Lotteries & Keno Overview
LOTTERIES & KENO OVERVIEW SUE VAN DER MERW E
Slide 23: Lotteries and Keno - Scale, Broad Appeal, Widely Accepted
LOTTERIES AND KENO - SCALE, BROAD APPEAL, WIDELY ACCEPTED $2.3B REVENUE $395M EBITDA • Leading brands LOTTERIES 3,700+ OUTLETS KENO 3,600+ OUTLETS • Significant retail distribution reach • Accelerating digital growth LOTTERIES 445M TICKETS KENO 105M TICKETS • Significant customer database • FY18 rev
Slide 24: Established Business with Diversified Product Portfolio
E S TA B L I S H E D B U S I N E S S A M O N G S T W O R L D ’ S B E S T W I T H DIVERSIFIED PRODUCT PORTFOLIO 2017 LOTTERIES ANNUAL SPEND USD FY18 SALES BY FY18 SALES BY P E R C A P I TA - L O T TO 1 PRODUCT ($B) S TAT E ( $ B ) 5.0 5.0 (US$) 4.5 4.5 Keno NT Marginal impact from Other Set for Life
Slide 25: Clear Set of Priorities to Continue to Drive Growth
WE HAVE A CLEAR SET OF PRIORITIES TO CONTINUE TO DRIVE GROWTH VISION TRUSTED BY PLAYERS AND COMMUNITIES TO DELIVER LIFE CHANGING OUTCOMES LIKE NO-ONE ELSE PURPOSE WE DELIVER LOTTERY GAME EXPERIENCES OUR CUSTOMERS LOVE STRATEGIC PILLARS SUPERB BRILLIANT COLLABORATIVE CUSTOMER LED EXPERIENCES EXECUTIO
Slide 26: Strategic Portfolio Management to Maximise Revenue
S T R AT E G I C P O R T F O L I O M A N A G E M E N T T O M A X I M I S E O V E R A L L REVENUE • Players have different motivations for playing • Each brand has a unique consumer proposition • A diversified game portfolio with each game owning a position in the market 26
Slide 27: Record of Delivering Growth Through Active Product Management
RECORD OF DELIVERING GROWTH THROUGH ACTIVE PRODUCT MANAGEMENT THE LOTT PORTFOLIO SALES ($B) GROWTH DRIVEN THROUGH A COMBINATION OF PRICE, GAME ENHANCEMENTS AND NEW PRODUCT LAUNCHES STRONG JACKPOT $100M OZ JACKPOT RUN FOR BOTH • 2012 – 2017 – Expansion of Lucky Lotteries and Instant Scratch- POWERBAL
Slide 28: Powerball Changes Delivering Positive Momentum
POWERBALL CHANGES DELIVERING POSITIVE MOMENTUM E A R LY R E S U LT S E N C O U R A G I N G : POW ERBALL: FIRST 24 DRAW S SINCE G A M E C H A N G E V S I M M E D I AT E P R I O R P E R I O D • Stimulated category growth • Bigger jackpots more often – driving new customer acquisition 2 5 • Additional
Slide 29: Digital Momentum Continues to Build
D I G I TA L M O M E N T U M C O N T I N U E S T O B U I L D D I G I TA L S H A R E O F S A L E S Lotteries Keno • Delivered 27.8% digital growth in FY18; supported by: - Launch of national brand - Digital marketing and mobile refresh • Continuing to enhance digital experience and build stronger int
Slide 30: Registered Players Spend Increases with Omni-Channel Engagement
R E G I S T E R E D P L AY E R S P E N D I N C R E A S E S S I G N I F I C A N T LY W I T H M I G R AT I O N T O O M N I - C H A N N E L E N G A G E M E N T O N L I N E E N G A G E M E N T O F E X I S T I N G R E TA I L P L AY E R S R E G I S T E R E D P L AY E R S A C C O U N T F O R 5 8 % C R E AT
Slide 31: Redesigning Membership Program
REDESIGNING MEMBERSHIP PROGRAM TO DRIVE R E G I S T R AT I O N A N D O M N I - C H A N N E L E N G A G E M E N T REDUCED BARRIERS ALIGNED RETAIL INCENTIVES TO SIGN UP The Lott branding IMPROVED ACCOUNT ENHANCED AND INTEGRATED FUNCTIONALITY CUSTOMER COMMS 31
Slide 32: Lottery Products Participation Skews Older
L O T T E R I E S S K E W O L D E R H O W E V E R W E H AV E A N A G I N G P O P U L AT I O N L O T T E RY P R O D U C T S PA RT I C I PAT I O N O V E R LOTTERIES WILL BENEFIT FROM THE AGING INDEXES OLDER P O P U L AT I O N 2018 Lotteries & Instant Scratch-Its Participation vs Australia Population S
Slide 33: Initiatives Delivering a Younger Audience
P R O D U C T A N D C H A N N E L I N I T I AT I V E S D E L I V E R I N G A Y O U N G E R AUDIENCE SHARE OF NEW CUSTOMER ACQUISITIONS SET FOR LIFE AND POWERBALL (WITH RECENT UNDER 35 IS INCREASING ENHANCEMENTS) SKEW YOUNGER New registrations - first game played by age group by game1 % of new regist
Slide 34: Evolving and Digitally Enabling Our Retail Footprint
W E A R E E V O LV I N G A N D D I G I TA L LY E N A B L I N G O U R R E TA I L F O O T P R I N T L O T T E R I E S F O O T P R I N T B Y R E TA I L S E G M E N T M O D E R N I S I N G O U R R E TA I L P R E S E N TAT I O N Supermarket 58 Selectively Other 74 diversifying our Kiosk 110 convenience P
Slide 35: Enhancing CRM Capability
E N H A N C I N G C R M C A PA B I L I T Y T O S T R E N G T H E N C U S T O M E R CONNECTION AND DRIVE ENGAGEMENT EXISTING CRM PROGRAM SUPPORTS INCREASING WE ARE CONTINUING TO BUILD ENHANCED CRM ENGAGEMENT WITH OUR CUSTOMER BASE C A PA B I L I T Y • Integration of communications across all customer
Slide 36: Working with Governments, Suppliers and Industry Associations
WORKING WITH GOVERNMENTS, SUPPLIERS AND INDUSTRY A S S O C I AT I O N S T O B U I L D S T R O N G R E L AT I O N S H I P S R E TA I L E R A S S O C I AT I O N S I N T E R N AT I O N A L L O T T E R I E S A S S O C I AT I O N S 36
Slide 37: Recent Initiatives Have Improved Keno Growth
R E C E N T I N I T I AT I V E S H AV E I M P R O V E D K E N O G R O W T H KENO HISTORICAL TURNOVER GROWTH ($M) RETAIL EXPANSION REFOCUS THE BUSINESS GROWTH FROM DRIVES GROWTH ON THE CUSTOMER INITIATIVES +3.2% +1.2% +5.9% 1,174 1,197 • Keno growth in recent years supported 1,133 1,061 1,089 by inve
Slide 38: Opportunity to Grow Keno Leveraging Combination with Lotteries
OPPORTUNITY TO GROW KENO LEVERAGING THE BENEFITS OF C O M B I N AT I O N W I T H L O T T E R I E S MARKETING P R O D U C T / R E TA I L DIGITAL • Explore cross-sell opportunities • Pooling of jackpots – SA to join east coast • Support digital adoption and omni-channel (subject to regulatory approval
Slide 39: Overview: Lotteries & Keno - Customer Led Growth
OVERVIEW: LOTTERIES & KENO – CUSTOMER LED GROWTH • We actively manage a balanced game portfolio • We have a proven track record of delivering long-term growth • We are leveraging digital and product development to attract new customer segments • We are working with our channel partners to sustainabl
Slide 40: Gaming Services Overview
GAMING SERVICES OVERVIEW FRANK MAKRYLLOS
Slide 41: Market Leader in Australian Gaming Services
WE ARE THE MARKET LEADER IN AUSTRALIAN GAMING SERVICES $315M FY18 Significant reach across Market leading gaming pro-forma revenue 85% of national EGMs technology systems TGS contracts across monitoring segment 9,897 EGMs1 share 80% Total Field Service Relationships with over Call-outs 647K+ p.a. 3,
Slide 42: National Presence Brings Scale and Ability to Influence
N AT I O N A L P R E S E N C E B R I N G S B E N E F I T O F S C A L E , A G G R E G AT I O N O F KNOWLEDGE & ABILITY TO INFLUENCE TOTAL QUEENSLAND EGMs: 162,000 EGMs: 34,000 REVENUE: $315M REVENUE: $70M NORTHERN TERRITORY NEW SOUTH WALES EGMs: 1,300 EGMs: 94,000 REVENUE: $3M REVENUE: $108M WESTERN
Slide 43: Portfolio of Complementary Gaming Brands Across Value Chain
W E A R E B R I N G I N G T O G E T H E R A P O R T F O L I O O F C O M P L E M E N TA R Y G A M I N G B R A N D S T H AT PA R T I C I PAT E A C R O S S G A M I N G S E R V I C E S VA L U E C H A I N MAINTENANCE GAMING SYSTEMS GAMING SERVICES MONITORING GAMING ADVISORY & SUPPLY / PRODUCTS & PROCUREM
Slide 44: Diversified Revenue Base
DIVERSIFIED REVENUE BASE VENUE SERVICES: FINANCIAL SUMMARY FY18 PRO-FORMA REVENUE ($M) 315 • Regulatory Services (Monitoring) business relatively stable 14% • Venue Solutions (TGS) has momentum despite near 18% term challenges regarding contract roll-off profile Technical Field Services • Venue Syst
Slide 45: Good Progress on Returns for Venue Solutions
GOOD PROGRESS ON DELIVERING RETURNS FOR VENUE SOLUTIONS THROUGH EXTENSIONS AND NEW BUSINESS VENUE SOLUTIONS: CURRENT EGM CONTRACT M AT U R I T Y P R O F I L E • New Vic gaming arrangements now provide industry 7,863 2,034 certainty to 2032 (previously 2022) 9% 17% • Venue Solutions is seeking to tra
Slide 46: Venue Solutions Track Record of Supporting Venue Success
VENUE SOLUTIONS TRACK RECORD OF SUPPORTING VENUE S U C C E S S C R E AT E S S T R O N G P L AT F O R M F O R C O N T R A C T E X T E N S I O N NET MACHINE REVENUE GROWTH YOY – TGS VENUES VS NON-TGS VENUES ( V I C M A R K E T O N LY ) 12% TGS Non-TGS 10% 8% TGS venue performance has 6% remained consi
Slide 47: Valuable Role Supporting Venues and Governments
W E C A N P L AY A VA L U A B L E R O L E T O S U P P O R T V E N U E S A N D G O V E R N M E N T S I N M A N A G I N G G A M I N G R E S P O N S I B LY POTENTIAL ROLE FOR CONTEXT I M P L I C AT I O N S GAMING SERVICES • Venues will need support in managing and demonstrating compliance and responsib
Slide 48: Platform Connecting Three Distinct Types of Customers
O U R B U S I N E S S I S A P L AT F O R M W H I C H C O N N E C T S T H R E E D I S T I N C T TYPES OF ‘CUSTOMERS’ • Licences acquired and operated by MAX • Monitoring and compliance services supplied GOVERNMENTS & as part of government mandate REGULATORS • Integrity incident reporting TABCORP GAMI
Slide 49: Opportunity to Become Technology and Services Venue Partner of Choice
THERE IS A CLEAR OPPORTUNITY FOR THE GAMING BUSINESS TO BECOME T H E T E C H N O L O G Y A N D S E R V I C E S V E N U E PA R T N E R O F C H O I C E VISION TECHNOLOGY AND SERVICES PARTNER OF CHOICE FOR GAMING VENUES, SUPPLIERS AND GOVERNMENTS PURPOSE WE WILL OFFER THE MOST COMPREHENSIVE SUITE OF EN
Slide 50: Streamlined End-to-End Offer to Market
W E H AV E D E V E L O P E D A S T R E A M L I N E D A P P R O A C H T H AT P R O V I D E S AN END-TO-END OFFER TO MARKET WE HAVE MOVED FROM INDIVIDUAL BUSINESS BRANDS WHICH FOCUS ON CERTAIN STATES, TO A FUNCTIONAL STRUCTURE WHICH CAN BE SCALED ACROSS AUSTRALIA GAMING VENUES VENUE & GOVERNMENT SERVI
Slide 51: Staged Approach to Driving Growth
S TA G E D A P P R O A C H T O D R I V I N G G R O W T H ENTER NEW 4 MARKETS P E N E T R AT E • Enter new Jurisdictions with 3 EXISTING Regulated Systems E X PA N D MARKET - Monitoring 2 PRODUCT & • Penetrate existing customer base - Downloadable Gaming C O N S O L I D AT E SERVICES with new and exp
Slide 52: Overview: Gaming Services
OVERVIEW: GAMING SERVICES • This is a year of consolidation - we are securing our base and enhancing our offer • Future growth driven by penetration with a broader range of offer • Positioned to be a significant part of the solution to risks associated with gaming • World class regulator systems cap
Slide 53: Wagering & Media Overview
WAGERING & MEDIA OVERVIEW ADAM RYTENSKILD
Slide 54: Market Leader in Australian Wagering
W E AR E TH E MAR KET L EAD ER IN AU STR AL IAN WAGER IN G ~57% revenue >700K ~1.1B bets taken annually market share active accounts Market leading yield >4,400 venues management Multi-platform, market- 71% unprompted ~$1B returns leading racing & sport brand awareness to industry partners vision 54
Slide 55: The Competitive Landscape is Changing
THE COMPETITIVE LANDSCAPE IS CHANGING 2010 - 2014 2014 - 2018 2018 55 Note: The above is not representative of an exhaustive list of operators within the domestic wagering market
Slide 56: Focus of Competition Shifting Toward Punter Experience
TH E FOC U S OF C OMPETITION IS SH IFTIN G TOWAR D S PU N TER EXPERIENCE T H E C H A N G I N G C O M P E T I T I V E B AT T L E G R O U N D BOOKMAKING MARKETING PUNTER EXPERIENCE FOCUS ON FOCUS ON FOCUS ON • Pricing / odds • Investment in brand promotional • Personalised and consistent activity expe
Slide 57: Attractive Market Underpinned by Strong Digital Growth
AT T R A C T I V E M A R K E T U N D E R P I N N E D B Y S T R O N G D I G I TA L G R O W T H AUSTRALIAN WAGERING MARKET REVENUE GROWTH BY CHANNEL FY14-18 CAGR $4.6B TOTAL 7.8% $4.4B $3.9B 5% (13.4%) $3.6B OTHER 6% $3.4B 8% 10% 30% RETAIL (2.0%) 12% 33% 36% 40% 44% 65% DIGITAL 18.9% 61% 56% 50% 44%
Slide 58: TAB Digital Growth Accelerating from Position of Scale
TA B D I G I TA L G R O W T H A C C E L E R AT I N G F R O M P O S I T I O N O F S C A L E D I G I TA L T U R N O V E R G R O W T H C O M PA R E D T O TA B + U B E T H I S TO R I C A L C O R P O R AT E B O O K M A K E R S CHANNEL TURNOVER ($B) 40% FY14-18 CAGR 35% TOTAL 1.8% 2.3 2.2 1.9 2.3 (6.2%) 2
Slide 59: Digital Growth Driven by Increase in Fixed Odds
D I G I TA L G R O W T H D R I V E N B Y I N C R E A S E I N F I X E D O D D S … W H I C H I S G E N E R AT E D A C R O S S A B R O A D R A N G E G R O W T H I N D I G I TA L T U R N O V E R … MARKETS $6.3B RACING ($5.4B) SPORT ($0.9B) 4.0 $3.7B 1.7 2.0 2.3 FY14 FY18 Parimutuel Fixed 59
Slide 60: Wagering Industry Regulation Developments
D E V E L O P M E N T S I N W A G E R I N G I N D U S T R Y R E G U L AT I O N S W I L L L E A D T O A M O R E S U S TA I N A B L E E N V I R O N M E N T INTRODUCTION OF POINT OF CONSUMPTION ADVERTISING & CONSUMER PROTECTION TA XE S REGIME AMENDMENTS JURISDICTION POCT RATE IMPLEMENTATION DATE VIC 8%
Slide 61: Unique Set of Assets and Capabilities
W E H AV E A U N I Q U E S E T O F A S S E T S A N D C A PA B I L I T I E S VA L U A B L E P O I N T S O F D I F F E R E N C E 1 Trading 2 Digital + Retail We are market leaders in trading We are uniquely positioned to and risk management, delivering the access customers in all channels highest yiel
Slide 62: Performance Underpinned by Market-Leading Risk and Bookmaking
LONG-TERM PERFORMANCE UNDERPINNED BY MARKET-LEADING R I S K A N D B O O K M A K I N G C A PA B I L I T Y SUPERIOR FIXED ODDS YIELDS ACHIEVED NET OF TA B H AV E B E E N A B L E T O M A I N TA I N H I G H E S T GENEROSITIES SECTOR YIELDS VIA: 18% PROPRIETARY PLATFORMS 16% 14% 12% PRICE / BOOK MANAGEME
Slide 63: Relatively Stable Yields Despite Quarterly Fluctuations
R E L AT I V E LY S TA B L E Y I E L D S O V E R F Y 1 6 T O F Y 1 8 D E S P I T E Q U A R T E R LY F L U C T U AT I O N S TA B F I XE D O D D S YI E L D S 14.6% 14.6% 14.7% 17.0% TAB FO Combined Yield 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 14.9% 15.3% 13.5% 14.4% 15.2% 14.9% 14.4% 13.7% 16.0% 14.6% 13
Slide 64: Retail Network Remains Critical as Digital Activity Grows
R E TA I L N E T W O R K R E M A I N S C R I T I C A L T O TA B C O R P A S W E C O N T I N U E T O D R I V E D I G I TA L A C T I V I T Y A C R O S S T H E N E T W O R K D I G I TA L - I N - V E N U E S H A R E O F B R O A D A N D D I V E R S E N E T W O R K W I T H R E TA I L R E TA I L S A L E S
Slide 65: Brand Strength Creates Platform for Customer Growth
O U R B R A N D S T R E N G T H C R E AT E S A P L AT F O R M F O R C O N T I N U E D CUSTOMER GROWTH STRONG BRAND RECOGNITION ACTIVE ACCOUNT GROWTH (‘000) CAGR 10% CORPORATE CORPORATE CORPORATE CORPORATE BOOKMAKER 1 BOOKMAKER 2 BOOKMAKER 3 BOOKMAKER 4 720 TOTAL 669 667 99% 97% 93% 63% 85% AWARENESS
Slide 66: Optimised Racing Vision to Drive Wagering Growth
W E H AV E O P T I M I S E D R A C I N G V I S I O N T O D R I V E W A G E R I N G G R O W T H A C R O S S O U R P L AT F O R M S INCREASED RACING BROADCAST DRIVING W I T H S T R O N G E N G A G E M E N T O N O U R D I G I TA L WAGERING GROWTH P L AT F O R M S We have significantly increased the num
Slide 67: Clear Set of Strategic Priorities to Drive Growth
W E H AV E A C L E A R S E T O F S T R AT E G I C P R I O R I T I E S FROM WHICH TO DRIVE GROWTH VISION LOVED BY PUNTERS AND EMBRACED BY OUR PARTNERS; WE ARE UNIQUELY AUSTRALIAN AND THE FIRST CHOICE FOR BETTING PURPOSE WE CREATE EXCITEMENT IN THE CONTEST LIKE NO-ONE ELSE! SUPERB BRILLIANT COLLABORAT
Slide 68: Focused Plan to Deliver Compelling Proposition for Punters
W E H AV E A F O C U S E D P L A N T O D E L I V E R A C O M P E L L I N G PROPOSITION FOR PUNTERS Build a modern media business with strong digital capabilities delivering racing and sport vision across a diverse range VISION of distribution channels PUNTER Drive growth by creating brilliant and un
Slide 69: Strategy Expands Content and Broadens Distribution
O U R S T R AT E G Y E X PA N D S C O N T E N T A N D B R O A D E N S O U R D I S T R I B U T I O N P E R S O N A L I S E D V I E W I N G P L AT F O R M C O N C E P T SKY SPORTS VISION IN VENUE 69
Slide 70: Uniquely Digitally-Led Wagering Experiences
W E W I L L D E L I V E R U N I Q U E D I G I TA L LY- L E D W A G E R I N G E X P E R I E N C E S TO DRIVE LONG TERM ENGAGEMENT We are creating digitally-led punter experiences to realise the value of omni-channel customers D I G I TA L P U N T E R S A C Q U I R E D I N V E N U E : • Deliver twice
Slide 71: Shifting from Product Enhancement to Overall Experience
WE ARE SHIFTING FROM PRODUCT ENHANCEMENT TO FOCUS ON OVERALL EXPERIENCE The below table represents TAB and UBET released products over the past 18 months TA B F O C U S : PRODUCT DELIVERY TIMELINE • TAB 2018 roadmap of developing innovative products, achieving product parity and digital Digital comm
Slide 72: Personalised and Real Time Interactions to Drive Engagement
PERSONALISED AND REAL TIME INTERACTIONS TO DRIVE PUNTER ENGAGEMENT IDENTIFY MACHINE LEARNING TA R G E T E D M E S S A G I N G A N A LY T I C S & S E G M E N TAT I O N STRENGTHENING PUNTER ENHANCED CUSTOMER ENGAGEMENT • Enable effective segmentation • Better understand customer • Transforming data an
Slide 73: Integration Update: Branding
I N T E G R AT I O N U P D AT E : B R A N D I N G 73
Slide 74: Integration Update: UBET Yields & Trading
I N T E G R AT I O N U P D AT E : U B E T Y I E L D S & T R A D I N G U B E T Y I E L D B E N E F I T I N G F R O M A P P L I C AT I O N O F TA B B O O K M A N A G E M E N T … … W I T H T R A D I N G C A PA B I L I T Y N O W C O N S I S T E N T • Proprietary fixed odds platforms already integrated i
Slide 75: Overview: Wagering & Media
OVERVIEW: WAGER IN G & MED IA • We have positive momentum in a growing Australian wagering market – driven via digital • Regulatory reform providing a positive outlook in terms of industry sustainability • We have an expert team with diverse experience • Our strategy will create unique experiences f
Slide 76: Closing Remarks
CLOSING REMARKS DAVID ATTENBOROUGH
Slide 77: Tabcorp Presents a Compelling Long Term Investment Proposition
TA B C O R P R E P R E S E N T S A C O M P E L L I N G L O N G T E R M I N V E S T M E N T PROPOSITION • The combination with Tatts Group will deliver significant synergies, and creates the scale and financial strength to invest and grow • Confidence in outlook underpinned by long-dated licences and
Slide 78: Disclaimer
DISCLAIMER This Presentation contains summary information about the current activities of Tabcorp Holdings Limited (Tabcorp) and its subsidiaries (Tabcorp Group). It should be read in conjunction with the Tabcorp Group’s other periodic and continuous disclosure announcements lodged with the Australi