Paradise Entertainment Limited · HKEX:1180
Paradise Entertainment — Investor Presentation (October 2014)
19 slides from Paradise Entertainment's investor presentation, Oct 8, 2014
Slide 1: Corporate Presentation
Eng. 2014 Corporate Presentation Paradise Entertainment Limited 匯彩控股有限公司 (1180.HK) PARADISE All rights reserved. Paradise Entertainment Limited. Information as of 8st October, 2014.
Slide 2: Contents
1 Corporate Structure 2 Gaming System – Live Multi Game 3 Gaming System – LT Game 4 Macau Market Share 5 Going Global Deployment 6 Casino Service – LT Macau 8 Innovated Casino Operation 9 Historical Financial 10 1H2014 Financial Highlights 11 Shareholding Structure 12 Corporate Milestone 2002-2014 1
Slide 3: Corporate Structure
Corporate Structure Paradise Entertainment Limited LT Macau Casino Service Gaming System Supply • Provides management and operational • One-off Sales services to stand-alone casinos • Recurring revenue 1
Slide 4: Gaming System – Live Multi Game (LMG)
Gaming System – Live Multi Game (LMG) A PATENTED technology in Macau and the USA • The patents encompass TWO key features- LIVE Merging live dealers with machines. Real-time card dealing is broadcasted to multiple LMG terminals MULTI Supports concurrent table selection and allows players to bet on m
Slide 5: Gaming System – LT Game Limited: Macau Tailwinds
Gaming System – LT Game Limited Macau Tailwinds 10+ Casinos to Be Built in Next 5 Years: Enormous market potential with a total committed investment of USD30billion+ in Macau by 2020. Market saturation guidance – Macau 10,000 to 15,000 LMGs. Gaming Table Cap: Macau government capped table expansion
Slide 6: Macau Market Share
Macau Market Share *Total GGR Generated by LMGs in Macau Market Share in Macau *The Gaming Inspection and Coordination Bureau (“DICJ”) http://www.dicj.gov.mo/web/en/information/DadosEstat/2013/content.html#n1 LT Game owns 100% MOP$’M Market Share in the Live Multi Game 1800 113.4% CAGR 1,661 since 2
Slide 7: Going Global Deployment
Going Global Deployment Overseas Market Outlook Tremendous Room for Overseas Growth: USA & Canada Exclusive Distribution Partner Potential market saturation guidance – USA 50,000 LMGs & Australia 40,000 LMGs Expensive Labor Cost and High Minimum Bet: Expensive and unionized dealers in USA and Austra
Slide 8: Casino Service – LT (Macau) Limited
Casino Service – LT (Macau) Limited o LT (Macau) Limited (“LT Macau”) is a licensed casino service provider with the license granted by the Macau Government in 2007 o There are currently 3 stand-alone casinos under LT Macau: 1. Casino Kam Pek Paradise 2. Casino Waldo 3. Casino Macau Jockey Club Tabl
Slide 9: Casino Service – LT (Macau) Limited
Casino Service – LT (Macau) Limited Casino Service Growth Casino Service Growth 2011-2013 2011 2012 2013 HK$’M Actual Actual Actual 900 859 (in HK$’M and % amounts) 58% Casino Service Revenue 390 545 859 800 YoY Change 69.5% 39.8% 57.65% 700 Our Strategy 600 545 • Market positioning: Grind Mass Focu
Slide 10: Innovated Casino Operation
Innovated Casino Operation Our vision is to become the key provider of a total gaming solution which addresses inefficiencies in casino operations in Macau and worldwide. We relentlessly research and develop new technologies which improves accuracy, security and efficiency and enhances the overall g
Slide 11: Historical Financial
Historical Financial Historical Revenue Growth 2011 2012 2013 HK$’M 1,200.0 (in HK$’M ) 1,030 Revenue 464 729 1,030 1,000.0 41% Gross Profit 284 484 585 800.0 EBITDA 95 204 198 729 Profit for the year 39 143 104 57% 600.0 Cash & cash equivalents 126 196 267 464 Proposed Final Dividend Nil Nil 53 400
Slide 12: 1H2014 Performance Highlights
1H2014 Performance Highlights 1H2014 at a glance 1H2014 reported revenue up 50.7% yoy to HKD610million • Casino service contributes 86.9% of revenue Total reported revenue (HKD) EBITDA for the group (HKD) • Gaming system contributes 13.1% of revenue 113.0 700.0 120.0 610.4 Millions Millions EBIT
Slide 13: Shareholding Structure
Shareholding Structure Shareholders Shareholding % Jay Chun and August Profit Investments Limited 629,820,880 59.20 Best Top Offshore Limited 26,097,580 2.45 Bridger Management LLC 33,739,130 3.17 Free Float 374,323,725 35.18 Total 1,063,981,315 100.00 11
Slide 14: Corporate Milestone
Corporate Milestone 2002-2006 2007 2008 2010 2011 2012 2013 2014 Macau Govt Company Granted Casino LMG Patents First 200 LMGs US patents LMG Sales Began ended gaming name change Service filed in Macau sales in Macau injected into License managing monopoly to “Paradise Management mark
Slide 15: Our Clients
Our Clients PARADISE Our Selected Credentials D BX r BEY Wi op cs GALAXY «Cash REAL Sands SS ; HO 3 Scent Coneral a raat aktiae = Casino Lisboa Galaxy Macaw Casa Real Resort ‘Sends Mecee Sands Cotai Central ees gabe eat i > Ie CITY OF DREAMS wis Rue maw 2 ; , Grand Emperor Hotel RAR Fett Grandview H
Slide 16: Appendix 1 – Patents
Appendix 1 – Patents 11 US Patents i. Patent Number 7914368 Issued 29 March 2011 Expiring on or after 5 August 2025 but not later than 17 September 2026, subject to the expiration date of, as a continuation-in-part to, Application 11/198218 ii. Patent Number 7918723 Issued 5 April 2011 Expiring 17 S
Slide 17: Appendix 2 – Media Coverage
Appendix 2 – M e d i a C o v e r a g e Wall Street Journal 06-02-2014 Apple Daily 16-11-2013 Capital Weekly 25-12-2013 Macau Patent Economic Digest 11-01-2014 Bloomberg 15-11-2013 15
Slide 18: Appendix 3 – Analyst Coverage
Appendix 3 – A n a l ys t C o v e r a g e Citigroup Global Markets Ltd BofA Merrill Lynch Macquarie Capital Securities Mizuho Securities Asia Ltd CIMB Securities Ltd Raymond Choi Ronald Leung Jake Lynch Zeno Tse Michael Ting China Merchants Securities Haitong Int’l Research Ltd Sun Hung Kai Financia
Slide 19: Contact Information
Contact Information Hong Kong Office Investor Relations Unit C, 19/F., Entertainment Building, 30 Queen’s Road Central, Hong Kong SAR Investor Relations Manager Tel: (852) 2620 5303 Fax: (852) 2620 6000 Mr. Bryan Wu Email: bryanwu@hk1180.com Macau Office Tel: (852) 2916 0817 / (852) 9168 6118 Suite
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