Slide 1: Paradise Entertainment Limited 2018 Annual Results
1 Paradise Entertainment Limited 1180.HK 26 March 2019 2018 Annual Results Is Electronic Gaming Equipment Revolutionising the Mass Market?
Slide 2: Contents
ONTENTS 1 PART ONE COMPANY OVERVIEW 2 PART TWO BUSINESS STRATEGY 3 PART THREE FINANCIAL SUMMARY 4 PART FOUR GROWTH OPPORTUNITY 5 PART FIVE SUMMARY – OUR KEY DIFFERENTIATORS 6 PART SIX PHOTO GALLERY 2
Slide 3: Part One: Company Overview
PART ONE Company Overview 3
Slide 4: Corporate Structure
01 CORPORATE STRUCTURE Paradise Entertainment 1180.HK R&D Centres Shenzhen Sydney Las Vegas Zhuhai Macau Taiwan 4
Slide 5: How Did We Arrive Here?
01 HOW DID WE ARRIVE HERE? Paradise Entertainment 2014 • Granted another casino service management license and started casino management business in 2007 Casino Waldo 2016 2008 • Strategic partnership with IGT • Granted casino service and assigned to IGT 15 years’ management license and initiated ca
Slide 6: Executive Team
01 EXECUTIVE TEAM Paradise Entertainment Leo Chan COO Frank Feng IR Director LT Game Paradise Entertainment CFO President Paradise Entertainment Betty Zhao LT Game Winnie (overseas) Lei Mr. Jay Chun Chairman and Managing Director • Chairman and Managing Director of Paradise Entertainment • Founder &
Slide 7: Part Two: Business Strategy
PART TWO Business Strategy 7
Slide 8: Business Segments
02 BUSINESS SEGMENTS Paradise Entertainment E LECTRONIC GAMING EQUIPMENT & SYSTEMS C ASINO MANAGEMENT SERVICES 8
Slide 9: How Are We Leading in LMG in Macau?
02 HOW ARE WE LEADING IN LMG IN MACAU? Electronic Gaming Equipment and Systems Number of LMG Units GGR (MOP Million) 6,000 2,728 2,431 2,500 2,350 5,000 2,256 2,120 2,000 4,000 1,487 1,500 3,000 895 1,000 2,000 1,000 500 0 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Number of LMG Units 1,852
Slide 10: How Are We Leading in LMG in Macau?
02 HOW ARE WE LEADING IN LMG IN MACAU? Electronic Gaming Equipment and Systems ETG (INCLUDING LMG) MARKET SHARE^ LMG MARKET SHARE 11% 8% 100% Paradise Average Daily Net win of 61% #HK$157,000 Aruze Interblock 100% 20% 61% Others Per LMG table in Casino Kam Pek Paradise MACAU ^Source: Union Gaming, D
Slide 11: Business Model – LMG Machines in Macau
02 BUSINESS MODEL – LMG MACHINES IN MACAU Electronic Gaming Equipment and Systems 3,299 1,586 Sold Revenue Sharing 11 Source: Company Data; Data as of Q4 2018
Slide 12: Who Is Using Our LMG Machines in Macau?
02 WHO IS USING OUR LMG MACHINES IN MACAU? Electronic Gaming Equipment and Systems # of casinos which deploy LMG machines Number of Overseas Casinos Number of Macau Casinos 12
Slide 13: Who Is Using Our LMG Machines Globally?
02 WHO IS USING OUR LMG MACHINES GLOBALLY? Electronic Gaming Equipment and Systems Number of Units Accumulative number of LMG machines deployed in Macau and Overseas Markets 3,500 3,299 2,908 2,986 3,000 2,500 2,015 2,000 1,803 1,727 1,715 1,630 1,627 1,586 1,500 1,393 1,137 1,120 1,000 715 550 328
Slide 14: Why LMGs in Casinos?
02 WHY LMGs IN CASINOS? Electronic Gaming Equipment and Systems Table Machine Ratio In Casino Kam Pek Paradise 1 :100 Total LMG GGR in Macau FY2018 Traditional Mass Tables LMG stadium MOP 2.7 bn Single Shift Single Day Single Shift Single Day 1 pit manager 1 supervisor Total number of 12 staff LMG t
Slide 15: International Partners
02 INTERNATIONAL PARTNERS Electronic Gaming Equipment and Systems LMG Machine Slot Machine 15
Slide 16: Where the Gross Gaming Revenue Comes From
02 WHERE THE GROSS GAMING REVENUE $$ COMES FROM Casino Management Services 2018 GGR: 2018 GGR: HK $1,431 mn $504 HK mn Casino Casino WALDO KAM PEK PARADISE 49 x TOTAL 30 x TOTAL Traditional 39 x Traditional 25 x LMG / Terminal 10 x 1,000 LMG / Terminal 5 x 423 Slot Machines Slot Machines 176 x 194
Slide 17: Our Target Market
02 OUR TARGET MARKET Casino Management Services VIP Premium Mass Base Mass 17
Slide 18: Part Three: Financial Summary
PART THREE Financial Summary 18
Slide 19: Financial Summary – 2018 Annual Results
03 FINANCIAL SUMMARY – 2018 ANNUAL RESULTS Paradise Entertainment Total GGR from the Adjusted EBITDA 120.7 2 casinos under management 1.94 HK$ million HK$ billion Net Profit Reported Revenue HK$ 1.16 billion HK$ 53.2 million 19
Slide 20: Financial Summary – Highlights
03 FINANCIAL SUMMARY - HIGHLIGHTS Paradise Entertainment Reported Revenue: HK$1.16 billion 1.94 2018 Total GGR 8% Casion Kam Pek Paradise & Casino Waldo: HK$ billion Adj. EBITDA Casino Management Services GGR Contributed by: HK$ 120.7 Electronic Gaming Casino Casino Equipment & Systems Kam Pek Parad
Slide 21: Financial Summary – KPIs for the Casinos under Management
03 FINANCIAL SUMMARY – KPIs for the 2 casinos under management Paradise Entertainment Casino KAM PEK PARADISE Casino WALDO FY2018 FY2017 FY2018 FY2017 HK$ HK$ HK$ HK$ Traditional Tables (GGR per table/day) $55,700 $50,700 Traditional Tables (GGR per table/day) $40,100 $42,900 LMG Tables LMG Tables G
Slide 22: Financial Summary – Revenue & Adjusted EBITDA
03 FINANCIAL SUMMARY- REVENUE & ADJUSTED EBITDA Paradise Entertainment Adjusted EBITDA by Properties / Nature Reported Revenue by Segment 97 8.4% HK$ Million 2018 2017 HK$ million 38 1,200 Casinos under management: 1,000 3.8% 800 91.6% • Casino Kam Pek Paradise 221.8 154.1 600 974 1,067 400 96.2% •
Slide 23: Part Four: Growth Opportunity
PART FOUR Growth Opportunity 23
Slide 24: Slot Machine Market Previously Untapped
04 SLOT MACHINE MARKET PREVIOUSLY UNTAPPED Growth Reason 1 of market share originated from the AMERICAS in 2017. 3 1 19 2 42 24 (10) (12) (21) 12 8 21 26 (3) 1 1 5 3 5 1 3 1 5 (2) 0 39 8 (4) 13 (2) 125 28 (123) (2 31 3) (3) 24 (4) 14 (6) The market will be ACCERLERATING 2022 growing to a CAGR APAC R
Slide 25: LMG Replacement Cycle Is Ongoing
04 LMG REPLACEMENT CYCLE IS ONGOING Growth Reason 2 DICJ published new DETG technical standards in From 1 July 2018, new December 2017 with the application of DETG must fully Existing LMG machines in Macau effective date of 1 January comply with new standards will have to be either upgraded or 2018
Slide 26: New Products Pipeline
04 NEW PRODUCTS PIPELINE Growth Reason 3 26
Slide 27: Synergy between the Two Business Segments
04 SYNERGY BETWEEN THE TWO BUSINESS SEGMENTS Growth Reason 4 Sell / lease SYNERGY Casino Under Management Electronic Gaming Equipment R&D Centre 27
Slide 28: Part Five: Summary – Our Key Differentiators
PART FIVE Summary – Our Key Differentiators 28
Slide 29: Summary Considerations – Key Differentiators
05 SUMMARY CONSIDERATIONS – KEY DIFFERENTIATORS Paradise Entertainment Inventor, Patent Owner & Global Footprint Fully Tested and Approved Professional Gaming Sole Supplier by Regulators Technological Support Leveraging International Independent third-party labs Provide gaming technological Monopoli
Slide 30: Part Six: Photo Gallery
PART SIX Photo Gallery 30
Slide 31: Latest Slot Titles
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Slide 32: Latest Slot Machines
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Slide 33: Latest Slot Machines
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Slide 34: Horse Racing Machines
Horse Racing Machines 34
Slide 35: Innovative Casino Equipment
Innovative Casino Equipment 35
Slide 36: Automatic Baccarat
Automatic Baccarat 36
Slide 37: Multi-Roulette
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Slide 38: Automatic Chips & Cash Exchange
Automatic Chips & Cash Exchange 38
Slide 39: LMG Machines in Casino Kam Pek Paradise
LMG Machines in Casino Kam Pek Paradise 39
Slide 40: LMG Machines in Casino Waldo
LMG Machines in Casino Waldo 40
Slide 41: Contact Information
CONTACT INFORMATION To follow us on WeChat, Hong Kong Office Unit C, 19F, Entertainment Building, 30 Queen’s Road Central, Hong Kong SAR Corporate Strategy & Investor Relations Tel: (852 ) 2620 5303 Winnie Lei, Investor Relations Director winnielei@hk1180.com Macau Office Suite 1207, 12F, Macau Land
Slide 42: Disclaimer
Disclaimer This document has been prepared by Paradise Entertainment Limited (abbreviated as “Paradise” or the “Company”) for the sole purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any bas