Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — FY2009 Earnings Presentation
32 slides from Aristocrat Leisure's earnings presentation, Feb 23, 2010
Slide 1: Results Presentation Full Year to 31 December 2009
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Slide 2: Disclaimer
Disclaimer This document and any oral presentation accompanying it has been prepared in good faith. For personal use only However, no express or implied warranty is given as to the accuracy or completeness of the information in this document or the accompanying presentation. All statutory representa
Slide 3: Agenda
Agenda For personal use only Results Overview Jamie Odell Financial Results & Segment Performance Toni Korsanos Strategy Update Jamie Odell Outlook Jamie Odell Questions 3 3
Slide 4: Results Overview
Results Overview For personal use only A$million 2009 Change (%) 2 Revenue 908.6 15.9 Operating profit after tax and 116.4 17.0 minority interest 1 Net abnormal items after tax (274.3) nm (Loss) / Net profit after tax and (157.8) nm minority interest Operating cash flow 1 157.8 9.2 Closing net debt
Slide 5: 2009 Full Year Summary
2009 Full Year Summary For personal use only • A challenging year but positive signs Market Aristocrat Conditions1 Profitability2 emerging • Ship share growth in North America North America c.30% 18.8% and Australia • Revenue growth in Australia • Gaming operations installed base Australia Flat 21.6
Slide 6: Agenda
Agenda For personal use only Results Overview Jamie Odell Financial Results & Segment Performance Toni Korsanos Strategy Update Jamie Odell Outlook Jamie Odell Questions 6 6
Slide 7: Profit & Loss
Profit & Loss Change (%) For personal use only Constant 1 1 2009 2008 Reported currency Revenue (A$m) 908.6 1,079.9 15.9 16.0 Total segment EBIT (A$m) 303.9 358.2 15.2 14.2 Segment EBIT (%) 33.4 33.2 0.2pts 0.7pts EBIT (before D&D) (A$m) 283.3 330.1 14.2 13.1 D&D (A$m) 113.4 117.2 3.2 6.1 EBIT (afte
Slide 8: Abnormals
Abnormals For personal use only A$million Half 1 Half 2 Total Profit on sale of property 8.8 8.8 Convertible bond damages and related (187.3) (187.3) costs Restructuring costs (3.0) (9.6) (12.6) Intellectual property settlement (3.3) (3.3) Impairment of multi-terminal gaming (79.9) (79.9) businesses
Slide 9: FY 2009 vs FY 2008 EBIT
FY 2009 vs FY 2008 EBIT For personal use only 220.0 $7.0 200.0 $29.8 EBIT $A million 180.0 $3.3 $21.8 $7.2 160.0 $3.8 $212.9 $8.9 140.0 $176.1 $169.9 120.0 100.0 FY 2008 FX Japan Excluding Volume Price/Mix SMG&A D&D Other FY 2009 EBIT Japan & FX Normalised EBIT 9 9
Slide 10: Capital Management
Capital Management • Prudent approach to balance sheet management For personal use only • Conservative debt ratios well within BBB- rating • April 2009 capital raising $236.7m • Debt headroom and ability to act on strategic opportunities • No final dividend will be paid for 2009. Full year 4.5 cents
Slide 11: Segment Revenue Split
Segment Revenue Split For personal use only 11 11
Slide 12: North America
North America • Revenues, profit and margins declined For personal use only 2009 Change (%) • Strong growth in gaming operations installed Revenue (US$m) 322.4 16.8 base • Ship share up, but unit sales decreased Profit (US$m) 122.1 20.9 • Systems business declined, but record Margin (%) 37.9 1.9pts
Slide 13: Australia
Australia For personal use only • Revenue, profit and margin increased 2009 change (%) • Ship share up 4.2% Revenue (A$m) 207.8 12.1 • Traction behind JAWS™, Hit the Heights™, More Chilli™ and new 3-year licensing Profit (A$m) 63.1 21.6 model Margin (%) 30.4 2.4 pts • Increased penetration of VIRIDI
Slide 14: Japan
Japan For personal use only • Revenues and profit declined 2009 Change (%) • Gross margin per unit maintained, but Revenue ( bn) 8.5 49.3 more than offset by volume decline Profit ( bn) 1.4 68.0 • One key licensed game (Tetsuya) sold ahead of plan Margin (%) 16.8 9.8 pts • Revenue impacted by lack o
Slide 15: Rest of World
Rest of World • Generally unfavourable performance but For personal use only 20091 Change (%) market share stable Revenue (A$m) 191.6 8.7 • New Zealand profit up $5.2m (61.9%) Profit (A$m) 51.4 20.7 • Fa Fa Fa™ performing strongly in Macau Margin (%) 26.8 4.1 pts but Asia Pacific weak overall • Sout
Slide 16: Agenda
Agenda For personal use only Results Overview Jamie Odell Financial Results & Segment Performance Toni Korsanos Strategy Update Jamie Odell Outlook Jamie Odell Questions 16 16
Slide 17: Four Strategic Themes
Four Strategic Themes For personal use only Player led, Right markets technology driven and segments Obtain privileged Focus on the most insights to generate profitable large competitive advantage markets and segments World class Best games and organisation systems Build a lean, effective Apply insi
Slide 18: Initiatives that Underpin Success
5 Initiatives that Underpin Success Focus to unlock potential • Double gaming operations market share (by value) For personal use only over five years in North America • Grow systems footprint • Develop stepper businesses Agile & customer led • Close gap between ship share and installed base in Aust
Slide 19: North America - Focus to Unlock Potential
North America - Focus to Unlock Potential For personal use only Key deliverable Status Double gaming operations market • Gaming operations footprint up share over five years 17.4% (950 units) vs pcp • Further progress expected in 2010 with strong game releases Grow systems footprint • Record number
Slide 20: Australia - Agile & Customer Led
Australia - Agile & Customer Led For personal use only Key Key deliverable deliverable Status Status Close gap between ship share and • Increased management focus, better installed base understanding of customer needs • More investment behind dedicated games development for Australian market • Ship
Slide 21: Japan - Manage Volatility
Japan - Manage Volatility For personal use only Key deliverable Status Minimum of 2 key licensed game • 1 key licensed game released and overall releases and 50,000 unit sales p.a. 29,760 units sold in 2009 • Management focus and better understanding of market preferences • 3 year product plan in pl
Slide 22: Rest of World - a Focused Approach
Rest of World - a Focused Approach For personal use only Key deliverable Status Improved ROI outside major • Exited 40 non-core jurisdictions markets • Criteria and processes in place for future market / product entry decisions • Generally holding share, but will take time to increase profitability
Slide 23: World Class Product Development
World Class Product Development For personal use only Key deliverable Status Deliver the best games and systems • Established global marketing insights in each market – faster, and more function efficiently • Extensive customer outreach underway in key markets • Boosted core product development proc
Slide 24: Rightsize the Business
Rightsize the Business For personal use only Key deliverable Status Align resources to strategy and • Completed organisational rightsizing program eliminate cost that will not drive • Removing 140 FTE roles, equivalent to 7% of value total head count and of total staff costs • Normalised SMG&A costs
Slide 25: Agenda
Agenda For personal use only Results Overview Jamie Odell Financial Results & Segment Performance Toni Korsanos Strategy Update Jamie Odell Outlook Jamie Odell Questions 25 25
Slide 26: Outlook 2010
Outlook 2010 For personal use only Another tough year, focused on building for long term value Market Aristocrat Slight improvement in Build on 2009 momentum - North America replacement cycle offset by grow gaming operations base lower expansions Flat market with Build capability and Australia incre
Slide 27: Agenda
Agenda For personal use only Results Overview Jamie Odell Financial Results & Segment Performance Toni Korsanos Strategy Update Jamie Odell Outlook Jamie Odell Questions 27 27
Slide 28: Supplementary materials
For personal use only Supplementary materials 28 28
Slide 29: Detailed P&L
Detailed P&L For personal use only Constant A$million Change currency Change 1 1 (unless otherwise stated) 2009 2008 (%) 20091 (%) Revenue 908.6 1079.9 (15.9)% 907.5 (16.0)% Gross margin 495.1 562.6 (12.0%) 495.3 (12.0%) Gross margin 54.5% 52.1% 2.4 pts 54.6% (0.1 pts) EBIT (pre D&D) 283.3 330.1 (14
Slide 30: North America
North America For personal use only 2009 2008 Change Revenue (US$m) 322.4 387.7 (65.3) (16.8)% Profit (US$m) 122.1 154.4 (32.3) (20.9)% Margin (%) 37.9% 39.8% - (1.9) pts Revenue (A$m) 405.6 470.4 (64.8) (13.8)% Profit (A$m) 152.3 187.6 (35.3) (18.8)% Margin (%) 37.5% 39.9% - (2.4) pts Volume - plat
Slide 31: Australia
Australia For personal use only 2009 2008 Change Revenue (A$m) 207.8 185.3 22.5 12.1% Profit (A$m) 63.1 51.9 11.2 21.6% Margin (%) 30.4% 28.0% - 2.4 pts Volume - platforms 5,292 3,853 1,439 37.3% - conversions 11,636 13,445 (1,809) (13.5)% Price - avg. A$ / unit 17,214 16,584 630 3.8% 31 31
Slide 32: Japan
Japan For personal use only 2009 2008 Change Revenue ( m) 8,493.5 16,758.1 (8,264.6) (49.3)% Profit ( m) 1,425.9 4,452.7 (3,026.8) (68.0)% Margin (%) 16.8% 26.6% - (9.8) pts Revenue (A$m) 106.1 214.3 (108.2) (50.5)% Profit (A$m) 16.4 52.3 (35.9) (68.6)% Margin (%) 15.5% 24.4% - (8.9) pts Volume - un