SkyCity Entertainment Group Limited · NZX:SKC
SkyCity Entertainment — Shareholder Meeting (October 2018)
39 slides from SkyCity Entertainment's shareholder meeting presentation, Oct 19, 2018
Slide 1: Annual Meeting
Annual Meeting 19 October 2018
Slide 2: 2018 Annual Meeting
2018 Annual Meeting Meeting duly convened Quorum present Minutes of 2017 Annual Meeting available on SKYCITY’s website
Slide 3: Sequence of Meeting
Sequence of Meeting Presentation from Chairman and CEO Presentations from Chairs of Board Committees General Q&A session on management and operations of business Four resolutions and questions relating to the resolutions Refreshments
Slide 4: Rob Campbell, Chairman & Graeme Stephens, CEO
Rob Campbell, Chairman & Graeme Stephens, CEO
Slide 5: FY18 Key Achievements
FY18 Key Achievements Record financial Improved operational performance at all performance properties Completed refresh of Successfully progressed Group strategy key strategic initiatives Increased focus on Focused on sustainability and executing strategic plan wellbeing
Slide 6: Board's Commitment
Board’s Commitment Approve and oversee medium term strategy o Focus on capital allocation and shareholder value High performance management team Risks identified and managed Governance and accountability prioritised Sustainability and community focus
Slide 7: Board Activity
Board Activity Strong Committee work programmes Attention to major projects and health & safety Focus on gaming industry and governance issues Accountability of management for achieving goals and alignment with shareholders
Slide 8: Diversity
Diversity (1) Information based on collected data during FY18
Slide 9: CEO Milestones
CEO Milestones Management team established Met key stakeholders Positive FY18 result Completed refresh of Group strategy and commenced implementation
Slide 10: Refreshed Group Strategy
Refreshed Group i VISION To be the leader in gaming, entertainment and hospitality in our communities CHARACTER & CULTURE GOALS ia 6 ow Offer a great and safe place to work Always put customers first Be responsible leaders in our communities
Slide 11: Long-Term Value Creation
Long-Term Value nment Increase casino, entert elop new, complemen Achieve operating leverage and efficiencies across the group Allocate capital to higher returning assets and businesses Maintain efficient capital structure and distribution policy Introduce investment partners to drive growth and enh
Slide 12: FY18 Result
FY18 Result FY18 FY17 Movement $m $m $m % NormalisedNPAT 169.9 153.8 16.1 10.4% NormalisedEPS 25.4cps 23.4cps 2.0cps 8.5% ) ReportedNPAT 169.5 44.9 124.6 277.9% ReportedEPS 25.3cps 6.8cps 18.5cps 272.1% Total DividendNZ$DPS 20.0cps 20.0cps 0.0cps 0.0%
Slide 13: FY18 Highlights
FY18 Highlights Record Group result Record performance in International Business, Auckland and Hamilton Improved performance in Adelaide and Darwin Strong 2H18 electronic gaming machine (EGM) performance Cost focus driving margin improvement On-going investment in ICT
Slide 14: Year to Date Trading
Year to Date Trading Trends from 2H18 have continued into FY19 Trading update on 12 November (UBS Investor Conference)
Slide 15: Key Strategic Initiatives: NZICC & Horizon Hotel
Key Strategic Initiatives NZICC & Horizon Hotel Continuing progress on the NZICC and Horizon Hotel project over the past six months Remains a challenging project - likely to be further delays to completion beyond December 2019 Further update once greater certainty around completion dates
Slide 16: Key Strategic Initiatives
Key Strategic Initiatives Adelaide expansion on-time and on-budget Marketing for potential sale of Auckland car parks commenced Potential sale of Darwin nearing conclusion Auckland, Hamilton and Queenstown master planning progressing well Progressing strategy to grow hotels business
Slide 17: Key Strategic Initiatives
Key Strategic Initiatives Exploring options to develop offshore-based online casino Broadening entertainment offering - Let’s Play Live & All Blacks On-going investment in ICT/digital Group-wide review of brand, customer relationship management (CRM) and loyalty Upweighted focus on corpora
Slide 18: FY19 Focus
FY19 Focus Improve operating performance and team quality Execute major projects effectively Conclude asset sales Progress key strategic initiatives Continue to better governance and enhance sustainability and wellbeing initiatives
Slide 19: Closing Remarks
Closing Remarks Platform created to unlock value Positive momentum in business Focus on capital allocation and shareholder value Seeking to maximise existing assets before go looking for more Strive to be a good corporate citizen
Slide 20: Bruce Carter, Chair of Audit & Risk Committee
Bruce Carter Chair of Audit & Risk Committee
Slide 21: Committee's Activities in FY18
Committee’s Activities in FY18 Audit tender concluded Scope expanded to cover all risks Clean audit report Clean IRD review Focus on conduct risk and risk culture
Slide 22: Key Issues for Committee in FY19
Key Issues for Committee in FY19 New accounting standards - revenues and leases Managing key risks “Capital lighter” focus Capital structure review Climate change risks and reporting
Slide 23: Sue Suckling, Chair of Corporate Social Responsibility Committee
Sue Suckling Chair of Corporate Social Responsibility Committee
Slide 24: Committee's Activities in FY18
Committee’s Activities insocial Review of corporate FY18 responsibility (CSR) framework and pillars
Slide 25: Committee's Activities in FY18
Committee’s Activities in FY18 Our people o Snapshot of diversity at SKYCITY Our customers o Leading host responsibility
Slide 26: Key Issues for Committee in FY19
Key Issues for Committee in FY19 Our community o Youth development and pathways to employment Our environment o Measuring and reporting our carbon footprint o Reduction of waste Our suppliers o Ethical, local and sustainable supply chain
Slide 27: Murray Jordan, Chair of Remuneration & Human Resources Committee
Murray Jordan Chair of Remuneration & Human Resources Committee
Slide 28: Remuneration Initiatives
Remuneration Initiatives Short Term Incentive (STI) outcome delivered in restricted share rights Review of variable remuneration structure Re-design of Long Term Incentive (LTI) Plan Review of Non-Executive Director Remuneration Policy Proposal for ~5% increase to Non-Executive Director fe
Slide 29: Human Resources Initiatives
Human Resources Initiatives Focus on diversity and inclusion Representation of women in senior management positions Commitment to a $20 minimum wage in NZ by 2020
Slide 30: General Questions from Shareholders
General Questions from Shareholders (not relating to the resolutions)
Slide 31: Voting
Voting Voting by way of poll 517 million proxy votes (representing 76% of all voting securities) received by 10am on Wednesday 17 October
Slide 32: Proxy Count
Proxy Count Frewuton [for | aennt | iratonry | Toth | Abaain Re-elect Bruce Carter 513,218,797 1,997,028 1,526,521 516,742,346 1,283,638 Re-elect Richard Didsbury 515,096,435 115,139 1,530,772 516,742,346 1,283,638 Increase in Directors’Fees 499,535,802 15,695,529 1,409,869 516,641,200 1,384,784 Fix
Slide 33: Resolution 1
Resolution 1 Re-election of Director: Bruce Carter Appointed to Board in October 2010 Independent Board unanimously recommends that shareholders vote in favour of his election
Slide 34: Resolution 2
Resolution 2 Re-election of Director: Richard Didsbury Appointed to Board in July 2012 Independent Board unanimously recommends that shareholders vote in favour of his election
Slide 35: Resolution 3
Resolution 3 Increase in Directors’ Fees Increase in total pool from $1,365,000 (plus GST, if any) to $1,440,000 (plus GST, if any) for each financial year Increase of $75,000 (plus GST, if any) or ~5% effective from 1 July 2018
Slide 36: Resolution 4
Resolution 4 Remuneration of Auditor Authorise the Directors to fix the auditor's remuneration PricewaterhouseCoopers continues as the auditor of SKYCITY
Slide 37: Conclusion
Conclusion Place completed voting papers in one of the ballot boxes If you need a voting paper, please see Computershare in the foyer after the meeting Results advised to NZX/ASX later today Close of meeting Refreshments
Slide 38: Disclaimer
Disclaimer All information included in this presentation is provided as at 19 October 2018 This presentation has not taken into account any particular investors investment objectives or other circumstances. Investors are encouraged to make an independent assessment of SKYCITY
Slide 39: Slide 39
SKYCITY Entertainment Group — Shareholder Meeting (October 2018) on 6ix