Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — FY2023 Earnings Presentation
32 slides from Aristocrat Leisure's earnings presentation, Nov 15, 2023
Slide 1: FY23 Results Investor Presentation
For personal use only FY23 Results Investor Presentation November 2023 Aristocrat Leisure Limited
Slide 2: FY23 Results Highlights
FY23 Results Highlights For personal use only High quality Revenue EBITDA margin result $6.3bn +13.0% 33.4% Diversified and resilient Continued strength & ~20 bps higher than FY22 portfolio delivers on consistent execution from Supply chain pressures easing growth strategy Aristocrat Gaming Mixed co
Slide 3: Overview Strategy
For personal use only Overview Strategy
Slide 4: Our Strategy Continues to Deliver High Quality Results
Our Strategy Continues to Deliver High Quality Results Diversified model driving strong and resilient growth For personal use only • Benefits of diversification evident in Group revenue and EBITDA growth, notwithstanding high levels of investment and slower mobile gaming FY23 Revenue market Aristocr
Slide 5: Sustainability Strategy & Progress
Sustainability Strategy & Progress Ensuring vibrant businesses in sustainable industries for all our stakeholders in the long-term For personal use only Business Operations Product Responsibility People & Community Align with ASX 20 peers on Be a global leader in Be recognised as an climate, lead in
Slide 6: Group Results & Financial Summary
For personal use only Group Results & Financial Summary
Slide 7: Group Results Summary
Group Results Summary Portfolio diversification and execution drives revenue and profit higher, while investing for growth For personal use only A$ million 2023 2022 Change % Normalised results • Revenue up 13% (7% in constant currency) Operating revenue 6,295.7 5,573.7 5 13.0 • Revenue growth drive
Slide 8: Profit Reconciliation
Profit Reconciliation Exceptional Gaming results in Americas and International Class III partially offset by lower Pixel United profits and increased business investment For personal use only NPATA BRIDGE (A$m) 1 NPATA FY22 1,099.3 Americas 143.3 ANZ (4.3) International Class III 44.9 Pixel United (
Slide 9: Cash Flow
Cash Flow Strong cash generation and conversion; Operating cash flow of $1.8 billion For personal use only Operating Cash Flow A$ million 2023 2022 Change % EBITDA 2,105.4 1,850.9 13.8 Change in net working capital (75.5) (169.3) 55.4 • Higher operating cash flow reflects: Interest and tax (420.9) (
Slide 10: Capital Allocation Framework, Balance Sheet and Liquidity
Capital Allocation Framework, Balance Sheet and Liquidity Capital allocation framework supports Aristocrat’s long-term growth strategy and maximises shareholder returns For personal use only Investment drives • Free cash flow funds growth investment (organic and inorganic) future growth • Cash retur
Slide 11: Strategic Organic Growth Investment
Strategic Organic Growth Investment Disciplined investing across D&D, UA and Capex to support growth and optimise returns across the portfolio For personal use only Total spend Total spend as a % of 34% 31% 29% 31% as a % of 29% 29% 29% 32% revenue revenue A$1,021m A$1,922m A$901m A$805m A$807m 280
Slide 12: Operational Performance
For personal use only Operational Performance
Slide 13: Aristocrat Gaming
Aristocrat Gaming High performing portfolio supporting market share gains and strong revenue growth • Strong revenue growth across Americas and International Class III Summary Profit or Loss 2023 2022 Change % For personal use only driven by continued success in both Outright Sales and Class III Tot
Slide 14: Pixel United
Pixel United Increasing market share while responding to structural changes in stabilising mobile gaming market For personal use only Summary Profit or Loss 2023 2022 Change % Total Pixel United • Revenues 3.9% lower, due to the decline in the mobile games Bookings US$m 1,748.0 1,826.1 6 (4.3) marke
Slide 15: Pixel United – Resilient Portfolio Performance
Pixel United – Resilient Portfolio Performance Strong track record of above-market profitable growth through portfolio diversity and investible game titles For personal use only Mobile Games Market ($bn)1 Pixel United Revenue ($bn)2 CAGR CAGR FY18-23: +8% FY18-23: +12% +15% YoY (6%) YoY +15% YoY -%
Slide 16: Anaxi's Strategy Being Effectively Executed
Anaxi’s Strategy Being Effectively Executed For personal use only Market Entry Delivered Scale & Market Access NeoGames Acquisition Roxor successfully integrated and live across 117 game titles live across the globe Proposed acquisition expected to close in the Europe and in North America first half
Slide 17: Outlook
For personal use only Outlook
Slide 18: Outlook
Outlook Aristocrat expects to deliver NPATA growth over the full year to For personal use only 30 September 2024 (constant currency basis), reflecting: Continued strong market share, revenue and profit growth from Aristocrat Gaming, with a possible moderation in consumer spending in key markets; Dis
Slide 19: Q&A
For personal use only Q&A
Slide 20: Appendices
For personal use only Appendices
Slide 21: FY24 modelling inputs
FY24 modelling inputs Operating items: For personal use only • D&D investment expected to be in the range of 12 - 13% of revenue, above the recent range of 11 - 12% • Pixel United UA spend expected to be in the range of 24 - 27% of revenue, below the recent range of 26 - 29% and more reflective of p
Slide 22: Design & Development (D&D) Investment
Design & Development (D&D) Investment Aristocrat’s competitive advantage; Double-digit levels of investment maintained, supporting profitable growth For personal use only D&D 12.0% 11.1% 12.0% 13.0% as a % of revenue A$820m A$667m 109 A$528m 64 D&D A$498m 42 319 39 SPEND 183 195 274 (A$m) 392 276 29
Slide 23: Recognition of our High-Performing Portfolio & Games
Recognition of our High-Performing Portfolio & Games Industry-leading portfolio of high profile and well recognised titles For personal use only September 2023 Game Global Gaming Awards 2023 Q2 2023 Slot Managers Survey 2022 Slot Awards Performance Database Land-Based Industry Supplier of the Year G
Slide 24: Aristocrat Gaming - Overview
Aristocrat Gaming - Overview Leader in North American Gaming Operations, ANZ & North America Outright Sales; Strong diversified game portfolio A$3.6bn 22.2% A$1.9bn 22.5% 52.0% 0.1 pts For personal use only FY23 Revenue FY23 Segment Profit FY23 Margin Leader in North American Gaming Operations 64,03
Slide 25: Aristocrat Gaming – Detailed Results
Aristocrat Gaming – Detailed Results Growth in Americas Outright Sales and Gaming Operations installed base, and International Class III; D&D investment drives long-term game performance and market-leading products For personal use only 1 Total Gaming Americas ANZ International Class III Summary Pro
Slide 26: Pixel United - Overview
Pixel United - Overview Global publisher with strong & diversified portfolio; Exposed to attractive segments and leading market share in Social Slots; Targeted investment in Live Ops, features, content and UA to drive long-term, profitable growth US$1.8bn 3.9% US$568m 6.1% 32.2% 0.8 pts For personal
Slide 27: Pixel United - Portfolio Diversity
Pixel United - Portfolio Diversity BOOKINGS BY GAME 1 For personal use only BOOKINGS BY SEGMENT $1.8bn $1.8bn $1.7bn 6% 6% 9% 3% 2% 3% FY22 FY23 8% 6% 4% Other Games 13% 16% 17% Merge GardensTM Mech Arena: Robot ShowdownTM 35% 32% EverMergeTM 26% Lightning LinkTM 25% 24% $1.8bn $1.7bn RAID: Shadow L
Slide 28: Pixel United - Game Portfolio
Pixel United - Game Portfolio Diversified portfolio across new, scaling and franchise titles; Exposure to high yielding mid-core genre; Genres with owned IP and Social Casino slot content leveraged from world-class design studios across Aristocrat For personal use only Social Casino RPG, Strategy &
Slide 29: Pixel United - Mobile Gaming Market
Pixel United - Mobile Gaming Market Large Total Addressable Market (TAM) of ~US$76.8 billion globally1 (4%) YoY (5%) YoY Mobile Gaming genres – US$ For personal use only $76.8bn $23.2bn (20%) YoY (13%) YoY $3.7bn (7%) YoY $10.8bn $13.5bn 4% YoY $19.0bn 1% YoY $6.6bn Social Casino Casual RPG Strategy
Slide 30: Glossary of Terms
Glossary of Terms Gaming Mobile Gaming Americas North America (US and Canada) and Latin America Average bookings per Daily Active User. Total bookings in each period, divided ABPDAU For personal use only by the number of days in that period, divided by the DAU during the period ANZ Australia and New
Slide 31: Glossary of Terms
Glossary of Terms Online Real Money Gaming Financial & Other For personal use only Anaxi Name of Aristocrat’s online RMG business Capex Capital expenditure Business-to-Business. That is, business activities carried out between two or D&D Design & Development investment B2B more companies without con
Slide 32: Disclaimer
Disclaimer This document and any oral presentation any accompanying presentation and any Other affairs. No representations or warranties are made as accompanying it has been prepared in good faith, Materials must not be taken as a representation as to to the accuracy or reasonableness of such estima