Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Shareholder Meeting (October 2010)
27 slides from Tabcorp's shareholder meeting presentation, Oct 25, 2010
Slide 1: Tabcorp Holdings Limited 2010 Annual General Meeting
For personal use only Tabcorp Holdings Limited 2010 Annual General Meeting 25 October 2010 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS
Slide 2: John Story, Chairman
For personal use only Tabcorp Holdings Limited 2010 Annual General Meeting John Story Chairman 25 October 2010
Slide 3: 50 years of the TAB in Victoria
50 years of the TAB in Victoria For personal use only *Photos courtesy of News Limited 3
Slide 4: Tabcorp in Victoria today
Tabcorp in Victoria today For personal use only 4
Slide 5: Demerger - two market leading businesses
Demerger - two market leading businesses For personal use only Casinos Tabcorp post demerger • 4,433 EGMs • 2,549 wagering outlets • 415 tables, 309 MTGMs • 13,349 EGMs in 263 Tabarets • 58 restaurants and bars • 2,633 Keno outlets • 1,398 hotel rooms • Sky in 5,100 outlets, 2.3m homes • 3 theatres
Slide 6: Entitlement offer
Entitlement offer For personal use only Offer details1 ¾ 1 for 9 accelerated renounceable2 pro-rata entitlement offer to raise approximately $430 million Offer size ¾ Approximately 68.5 million new Tabcorp ordinary shares to be issued (c.11% of issued capital) ¾ The offer is fully underwritten ¾ $6.
Slide 7: 2010 review
2010 review For personal use only ¾ Reported NPAT $469.5m, down 10% ¾ Normalised NPAT $477.3m, down 3.8% ¾ Revenues up 1.5% Strong performance at Star City and in Wagering Contracting EGM markets in Victoria and Queensland ¾ Expenses up 2.9% ¾ Regulatory impacts $29m after tax 7
Slide 8: Balance sheet
Balance sheet For personal use only ¾ Balance sheet remains strong 2009 capital raising $387m Gross Debt/EBITDA 2.1x BBB+ with negative outlook ¾ Normalised EPS 78.4 cents, down 11.6% ¾ Dividend 55 cents, fully franked Payout ratio 70.2% 8
Slide 9: Star City construction on track
Star City construction on track For personal use only 9
Slide 10: Investment programs
Investment programs For personal use only Casinos Wagering Gaming ¾ $960 million investment ¾ Product expansion ¾ Tabcorp Gaming in Star City Solutions progressing ¾ Sky Racing channels well ¾ Completion first half ¾ New media 2012 calendar year ¾ Keno distribution ¾ Retail self service expansion ¾
Slide 11: Contributions to industry and community
Contributions to industry and community For personal use only ¾ Income generated for racing industry $322.5m for Victoria $236.4m for New South Wales ¾ Gambling taxes $1.39b ¾ State community benefit funds $88m ¾ Community support contributions $2.5m 11
Slide 12: Contributions to community
Contributions to community For personal use only 12
Slide 13: Responsible gambling
Responsible gambling For personal use only ¾ Tabcorp is committed to delivering its products responsibly ¾ Tabcorp rated global leader in promotion of responsible gambling in nine out of the last ten years 13
Slide 14: Tabcorp Holdings Limited 2010 Annual General Meeting
For personal use only Tabcorp Holdings Limited 2010 Annual General Meeting 25 October 2010
Slide 15: Elmer Funke Kupper, Managing Director and CEO
For personal use only Tabcorp Holdings Limited 2010 Annual General Meeting Elmer Funke Kupper Managing Director and Chief Executive Officer 25 October 2010
Slide 16: 2010 financial results (normalised)
2010 financial results (normalised) For personal use only $m FY10 FY09 Change Revenues 4,232.0 4,170.7 1.5% Variable contribution 2,112.0 2,111.8 0.0% Operating expenses (1,104.4) (1,072.8) 2.9% EBITDA 1,009.0 1,036.1 (2.6%) NPAT 477.3 496.2 (3.8%) 16
Slide 17: Market share stable or growing
Market share stable or growing Casino electronic gaming market share1 For personal use only Star City Gold Coast Brisbane 35.3% 36.2% 33.6% 25.8% 26.1% 7.1% 25.5% 6.3% 6.1% FY08 FY09 FY10 FY08 FY09 FY10 FY08 FY09 FY10 Wagering market share2 Gaming market share3 Parimutuel Fixed Odds Vic Gaming 61.4%
Slide 18: Casino highlights
Casino highlights For personal use only Star City Queensland Revenues $768.2m 5.4% Revenues $603.7m 4.1% Expenses $378.8m 3.6% Expenses $337.9m 3.4% EBITDA $219.9m 10.0% EBITDA $139.9m 29.1% EBIT $168.5m 4.7% EBIT $102.2m 38.8% ¾ Product expansion ¾ Contracting gaming market ¾ Gaming technology ¾ Hi
Slide 19: Project Star: Baccarat/Noodle Bar and MGF stages
Project Star: Baccarat/Noodle Bar and MGF stages For personal use only 19
Slide 20: Investment in Jupiters
Investment in Jupiters For personal use only ¾ $175 million investment Jupiters Gold Coast ¾ Renovation and expansion of non-gaming offer Six new restaurants and two new bars Night life venue New spa facilities, refurbishment of resort pool and gym area ¾ Improvement of gaming offer Upgrade
Slide 21: Wagering highlights
Wagering highlights For personal use only Revenues $1,671.1m 4.9% Expenses $316.4m 2.7% EBITDA $330.7m 5.1% EBIT $262.1m 4.1% Market share (est) 43.1% 1.0% 21
Slide 22: Wagering initiatives
Wagering initiatives For personal use only Fixed Odds Sky Racing New media Retail self service Expanded Additional two Internet/Mobile 2,627 self service coverage channels growth terminals 22
Slide 23: Racing industry funding – uneven playing field
Racing industry funding – uneven playing field For personal use only Fees per dollar turnover 5-6% 1.5% 0.5% Tote Corporate Corporate Bookmakers Bookmakers NSW VIC 23
Slide 24: Gaming highlights
Gaming highlights For personal use only Revenues $1,194.4m 2.5% Casinos Expenses $74.4m 2.1% EBITDA $317.9m 1.5% EBIT $272.0m 1.8% Market share 52.9% 0.3% 24
Slide 25: Trading update - first quarter FY2011
Trading update - first quarter FY2011 For personal use only Division Revenue Comments growth v pcp NSW - Star City1 8.4% Strong EGM and MTGM growth PGR and MGF solid, despite disruption Non-gaming recovering Queensland casinos1 5.5% All casinos growing Strongest recovery at Gold Coast Casi
Slide 26: For personal use only
For personal use only
Slide 27: For personal use only
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