Star Entertainment Group Limited · ASX:SGR
Star Entertainment — The Star Entertainment Group — Australian Macquarie Securities Conference 2016
16 slides from Star Entertainment's conference presentation, May 4, 2016
Slide 1: Presentation to Investors (ASX Announcement)
ASX Announcement For personal use only 4 May 2016 PRESENTATION TO INVESTORS Attached is a presentation that will be delivered by The Star Entertainment Group Limited to investors at the Australian Macquarie Securities Conference in Sydney on 5 and 6 May 2016. For more information contact: Harry Theo
Slide 2: Presentation to Australian Macquarie Securities Conference
For personal use only Presentation to Australian Macquarie Securities Conference MATT BEKIER, CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR FRIDAY 6 MAY, 2016
Slide 3: Basis of Preparation and Non-IFRS Information
THE STAR ENTERTAINMENT GROUP THE STAR ENTERTAINMENT GROUP LIMITED (ASX: SGR) BASIS OF PREPARATION AND NON-IFRS INFORMATION For personal use only Information in this presentation is provided as at the date of the presentation unless specified otherwise. It should be read in conjunction with The Sta
Slide 4: Key Messages
KEY MESSAGES For personal use only Good operational momentum Growth plans established, partners with complementary skills and capital Underlying earnings a mix of resilience and growth Strong balance sheet Clear priorities – leverage assets and partnerships, execution focused 3
Slide 5: SGR Overview: Key Metrics
SGR OVERVIEW KEY METRICS For personal use only FOOTPRINT FINANCIALS FUTURE * 3 properties (Sydney, $4.8bn market $3bn Queen’s Wharf Brisbane, Gold Coast) capitalisation development ~22m visitors $521m normalised Up to $845m Gold per annum EBITDA Coast expansion 8,173 employees $219m normalised Up to
Slide 6: SGR Overview: 1H Results Summary
SGR OVERVIEW 1H 16 RESULTS SUMMARY For personal use only Actual EBITDA (excluding significant items) of $193m, down 19.9% on pcp due to win rate UNDERLYING Normalised EBITDA (at 1.35%) of $293m, up 19.7% on pcp EARNINGS Interim dividend per share of 5.5 cents, up 10.0% on pcp, fully franked GR
Slide 7: Domestic Revenues: Resilience with Positive Trend
DOMESTIC REVENUES RESILIENCE WITH POSITIVE TREND For personal use only TOTAL DOMESTIC REVENUE 12 Month Rolling, $m KEY DRIVERS AND 2,000 COMMENTS: 1,500 Solid underlying market growth Improved product 1,000 Improved marketing and sales Benefits from investment in loyalty (upper tiers) 500 0
Slide 8: International VIP Rebate: Significant Growth to Date
INTERNATIONAL VIP REBATE SIGNIFICNT GROWTH TO DATE For personal use only INTERNATIONAL VIP REBATE TURNOVER 6 Monthly, $m KEY DRIVERS AND 25,000 COMMENTS: 20,000 Improved product Improved marketing 15,000 Multiple reasons for VIPs to 10,000 visit Australia Growth managed with 5,000 enhanced c
Slide 9: Strategy Overview – What
STRATEGY OVERVIEW – WHAT PRIORITIES AT EACH PROPERTY ESTABLISHED FURTHER GROWTH POTENTIAL WITH MASTER PLANS For personal use only Concept image. Subject to approvals. Concept image. Subject to approvals. Concept image. Subject to approvals. Queen’s Wharf Brisbane The Star Sydney Jupiters Gold Coast
Slide 10: Strategy Overview – Why
STRATEGY OVERVIEW – WHY STRATEGIC RATIONALE For personal use only FAVOURABLE TAILWINDS Long-term domestic gaming resilience Favourable returns from prior growth investment (Sydney visitation and earnings uplift from prior investment) Asian/Chinese middle class thematic Australia ranked as mo
Slide 11: Strategy Overview – How
STRATEGY OVERVIEW – HOW CAPITAL EFFICIENT STRATEGY – CONTEXT AND WAY FORWARD For personal use only SOLUTION – THE STAR’S CONTEXT CAPITAL EFFICIENT STRATEGY OPPORTUNITY IRDs require Improve overall project returns Improved standalone significant investment by mixed development: development retu
Slide 12: International Strategy
INTERNATIONAL STRATEGY NEAR TERM DIVERSIFICATION INTO ADJACENT MARKETS For personal use only WHAT Leverage existing VIP success, diversify into customer adjacencies Grow existing VIP revenues by further leveraging existing customer networks Expand presence in South East Asia VIP whilst maintaini
Slide 13: Strong Balance Sheet
STRONG BALANCE SHEET SUPPORTS INVESTMENT AND GROWTH PLANS For personal use only SOURCE AND USE OF FUNDS – CURRENT GEARING WORKED EXAMPLE 1.3 times Cashflow: ~$2bn Net Debt/ Actual 12 month trailing EBITDA Free cash flow pre-capex over next 7 years Based on FY2015 $292m normalised pre-capex fre
Slide 14: Outlook and Priorities: 2H16 Trading Update
OUTLOOK AND PRIORITIES 2H16 TRADING UPDATE For personal use only Group experiencing good demand in all properties in 2HFY2016 year to date, showing consistent volume levels to those experienced in 1HFY2016 Gross gaming revenue, excluding International VIP Rebate business, up 6.1% on the pcp in 4
Slide 15: Strategic Priorities – 2H16 and Beyond
OUTLOOK AND PRIORITIES STRATEGIC PRIORITIES – 2H16 AND BEYOND For personal use only Focus on operational efficiencies to improve earnings Deliver on next stage of capital program at all three properties Secure additional development opportunities at Sydney and Gold Coast properties in partnership wi
Slide 16: The Star
THE STAR Ajuo esn jeuosied 105
The Star Entertainment Group — Australian Macquarie Securities Conference 2016 on 6ix