Tabcorp Holdings Limited · ASX:TAH
Tabcorp — RBS Morgans Institutional investment fund conference (September 2009)
18 slides from Tabcorp's conference presentation, Sep 18, 2009
Slide 1: Tabcorp Holdings Limited – RBS Morgans Institutional investment fund conference
For personal use only Tabcorp Holdings Limited RBS Morgans Institutional investment fund conference Friday 18 September 2009 1 ABN 66 063 780 709
Slide 2: Leading Australian market positions
Leading Australian market positions Casinos For personal use only Four properties: ¾ 439 tables ¾ 1,397 hotel rooms ¾ 208 MTGMs ¾ 57 restaurants / bars ¾ 4,538 EGMs ¾ 3 theatres Market Share 40% EBIT 38% Wagering Leading operator: ¾ 2,576 retail outlets ¾ $1.5b internet sales ¾ Sky in 1.8m homes ¾ 7
Slide 3: Diversified business mix
For personal use only Diversified business mix Key licences held by Tabcorp FY09 EBITDA by business Casinos Star City 2093 Conrad Jupiters Perpetual Conrad Treasury 2070 Jupiters Townsville Perpetual Wagering Victorian Wagering Licence 2012 NSW Wagering Licence 2097 Gaming Victorian Gaming (incl Ken
Slide 4: FY09 results
For personal use only FY09 results $m Casinos Change Wagering Change Gaming Change Group Change Net revenues 1,358 2.6% 1,593 7.8% 1,226 6.2% 4,171 5.6% Variable contribution 1,093 1.2% 623 2.6% 398 9.2% 2,112 2.9% Operating Expenses (692) 6.8% (308) 5.1% (76) (1.6%) (1,073) 5.6% EBITDA 397 (8.2%) 3
Slide 5: Group priorities
Group priorities 2008/09 For personal use only 2008 Group 2009 2010 2011 performance 2012 2013 2010/11 priorities ¾ Casinos - expand 1 Deliver Star City expansion Group performance Improve customer experience Leverage technology and loyalty ¾ Wagering - reposition 2 Business performance Main
Slide 6: Casinos – profile
Casinos – profile NSW Queensland For personal use only EGMs (slots) 1,500 1,384 1,306 348 MTGMs 147 25 26 10 Tables 238 92 87 22 Hotel rooms 480 593 130 194 (1) Bars/restaurants 23 13 12 9 Theatres 2 1 - TECC Car spaces 2,500 2,292 630 570 EBITDA contribution 50% 50% Immediate opportunity Phased app
Slide 7: Star City expansion
Star City expansion The market opportunity in NSW For personal use only ¾ Customer service and interaction as a game changer ¾ Entertainment offer as differentiator in NSW and Australia ¾ Superior access, visibility of property, expansion to meet demand Offer Measure Increase FY12 Gaming Tables 118
Slide 8: Recent expansion supports Star business case
For personal use only Recent expansion supports Star business case EGM and MTGM counts and revenue growth Star City 1H08 2H08 1H09 2H09 YTD FY101 EGMs No. of machines 1,444 1,438 1,372 1,380 1,500 Revenue Change (pcp) (2%) 1% 12% MTGMs No. of machines 54 60 122 138 147 Revenue Change (pcp) 85% 141%
Slide 9: Project Star delivery
Project Star delivery Investment profile For personal use only FY08/09 FY10 FY11 FY12 Total Project STAR 53 232 189 104 575 Concessions/exclusivity 50 50 - - 100 Return on Investment 13%+ Delivery methodology ¾ Tender process completed ¾ Approximately 60% of costs under lump sum contract Disruption
Slide 10: Project Star – timeline
Project Star – timeline 2008 2009 2010 2011 2012 For personal use only Concept & Design Planning, design & procurement Tender Hotel/PR Excavation Jan 2010 MGF Aug 2011 Sports Theatre Poker Baccarat/ Noodle Bar Remaining Stages Hotel/Pirrama Road Jan 2012 10
Slide 11: Wagering – KPIs
For personal use only Wagering – KPIs $m 1H09 Change 2H09 Change FY09 Change ¾ Continued growth, offset by Revenues product margin contraction Racing 768 11.7% 682 0.1% 1,450 5.9% ¾ Race fields fees impact $20m in 2009 Fixed Odds 63 25.5% 56 7.8% 119 16.5% ¾ Investment in competitive Trackside 17 17
Slide 12: Wagering – lead in a national market place
Wagering – lead in a national market place ¾ Maintain leadership For personal use only Racing Industry Contribution (cents/$ turnover) Continue product, channel investment Expand self service technology 5-6c Grow fixed odds offer ¾ Step up competitive response 1.5c 0.5-1c Leverage Luxbet.com
Slide 13: Wagering – fixed odds opportunity
Wagering – fixed odds opportunity Market Share Sports – Leading position Market Share Racing – Opportunity For personal use only Tabcorp 32% Bookmaker 1 26% Bookmaker 1 13% Bookmaker 2 21% Bookmaker 2 12% Bookmaker 3 14% Bookmaker 3 11% Bookmaker 4 11% Bookmaker 4 9% Bookmaker 5 10% Bookmaker 6 6% B
Slide 14: Wagering – recent turnover trends
For personal use only Wagering – recent turnover trends Turnover trends since Jan 09 – Racing (Index) NSW growth drivers 103 ¾ Retail refurbishment/ self service terminals ¾ Premium customers 102 ¾ New products (eg Big 6) ¾ Improved racing product 101 ‘Cameron’ response NSW ¾ Fixed odds expansion ¾
Slide 15: Gaming – optimise performance towards 2012
Gaming – optimise performance towards 2012 Vic Gaming Market Share (%) For personal use only ¾ Optimise performance of Vic Gaming 53% business to 2012 52% Maintain revenue performance Tabcorp Market Share % 51% Grow market share 50% 49% Tatts Group ¾ Test market appetite for post 2012 48% servic
Slide 16: Group – key capital features
Group – key capital features Debt structure and maturity profile For personal use only 700 US Private Placement Tabcorp Retail Bonds 600 Medium Term Notes 500 Undrawn Bank Debt Drawn Bank Debt 400 $M 300 200 100 - FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 ¾ Average debt maturity al
Slide 17: Outlook
Outlook ¾ Tabcorp’s businesses resilient in tough economic times For personal use only Positive 2009 revenue performance 2010 economic environment remains challenging Modest growth in July and August ¾ FY10 regulatory and gaming tax impacts Wagering deregulation Impact of race fields fees
Slide 18: For personal use only
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Tabcorp Holdings — RBS Morgans Institutional investment fund conference (September 2009) on 6ix