Slide 1: Tabcorp Full Year Results Presentation (ASX cover letter)
Tabcorp Holdings Limited ACN 063 780 709 5 Bowen Crescent Melbourne Australia 3004 GPO Box 1943 Melbourne Australia 3001 Telephone 61 3 9868 2100 Facsimile 61 3 9868 2300 For personal use only Website www.tabcorp.com.au 4 August 2016 To: Australian Securities Exchange Market Announcements Office 20
Slide 2: 2015/16 Full Year Results Presentation
For personal use only Tabcorp Holdings Limited ABN 66 063 780 709 2015/16 Full Year Results Presentation 4 August 2016 Draft version 15 (01-08-13)
Slide 3: FY16 overview
FY16 overview For personal use only Statutory results NPAT $169.7m, down 49.3% EPS 20.4 cents per share, down 51.9% Results adversely impacted by significant items after tax of $16.2m, compared to one-off tax benefits of $163.2m in the pcp Results before significant items EBITDA $515.8m,
Slide 4: Group Results
Group Results For personal use only $m FY16 FY15 Change Revenues 2,188.7 2,155.5 1.5% Variable contribution 984.5 966.7 1.8% Operating expenses (468.7) (458.6) 2.2% EBITDA before significant items 515.8 508.1 1.5% D&A (178.6) (173.5) 2.9% EBIT before significant items 337.2 334.6 0.8% Interest (69.9
Slide 5: Business results
Business results For personal use only Wagering Change Gaming Change Change Change Keno Group $m & Media on pcp Services on pcp on pcp on pcp Revenues 1,873.0 0.9% 107.2 7.6% 208.5 4.8% 2,188.7 1.5% Variable contribution 760.3 0.4% 106.1 7.4% 118.1 7.0% 984.5 1.8% Operating expenses (378.2) (0.9%) (
Slide 6: Wagering & Media: KPIs
Wagering & Media: KPIs For personal use only Change Change Change $m 1H16 on pcp 2H16 on pcp FY16 on pcp Growth in customer activity with Turnover by distribution improved momentum across 2H16 Retail 3,388.4 (1.4%) 3,137.0 (0.8%) 6,525.4 (1.1%) TAB turnover growth +2.8% Digital 1,926.0 9.2% 1,90
Slide 7: Wagering & Media: Ongoing initiatives for market leadership
Wagering & Media: Ongoing initiatives for market leadership For personal use only Providing customers with unique experiences across all channels Continued integration of digital into the retail experience Driving customer acquisition by utilising TAB’s unique assets, including the retail netw
Slide 8: Wagering & Media: Strengthening TAB's leading mobile offer
Wagering & Media: Strengthening TAB’s leading mobile offer For personal use only Mobile remains the key growth driver for digital (mobile now 65% of digital turnover) The strong TAB mobile offer will be further enhanced with the release of a new app design in 1Q17 Focus on improved navigation,
Slide 9: Wagering & Media: Sun Bets
Wagering & Media: Sun Bets For personal use only New online wagering and gaming business established in the UK Attractive, well regulated market of ~A$7bn online revenue Combines Tabcorp’s expertise in wagering with News UK’s vast customer base and market-leading media assets Agreement runs
Slide 10: Wagering & Media: Regulatory update
Wagering & Media: Regulatory update For personal use only NSW Greyhound Racing industry to close June 2017 (subject to legal challenge) NSW greyhound racing represents approximately 5% of total wagering turnover Mitigation strategies to focus on substitution to other racing products Illegal
Slide 11: Gaming Services: KPIs
Gaming Services: KPIs For personal use only $m FY16 FY15 Change Continued investment in capability to Revenues 107.2 99.6 7.6% drive venue performance and expand in EBITDA 70.1 67.6 3.7% NSW EBIT 41.0 41.6 (1.4%) Victoria: 8,820 EGMs under contract, with 87% contracted through to 2022 Loyalt
Slide 12: Gaming Services: Proposed acquisition of INTECQ
Gaming Services: Proposed acquisition of INTECQ For personal use only Agreement to acquire INTECQ for $7.15 per share. This implies an enterprise value of $115m Funded from existing bank facilities Unanimously recommended by the Directors of INTECQ Completion expected in 1H17, subject to cer
Slide 13: Keno: KPIs
Keno: KPIs For personal use only $m FY16 FY15 Change Total turnover up 4.1% Revenue performance Revenues 208.5 199.0 4.8% Vic up 20.4% EBITDA 70.3 66.4 5.9% NSW up 7.4% EBIT 50.7 47.5 6.7% Qld up 0.8%, reflecting unfavourable jackpot activity Venues 3,568 3,612 (1.2%) in the pcp Ticket Cou
Slide 14: Keno: Digital offering launched
Keno: Digital offering launched For personal use only New Keno iOS app released to ACT customers for game play Digital play in-venue coming in NSW (subject to regulatory approvals) 13
Slide 15: Operating expenses and capital investments
Operating expenses and capital investments For personal use only Opex / Revenue Ratio Capex Trend 152 143 124 133 21.1% 21.2% 21.3% 21.4% FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Keno Gaming Services Wagering & Media FY17 opex to revenue ratio expected to be FY17 D&A expected to be approximately
Slide 16: Key capital features
Key capital features For personal use only Balance Sheet Dividends Bank facilities Ordinary dividend 1 (cps, fully franked) Tabcorp Subordinated notes US Private Placement 24.0c 20.0c 16.0c $400m $400m $150m $250m $127m $84m FY17 FY18 FY19 FY20 FY21 FY22 3 FY14 FY15 FY16 Undrawn bank facilities of
Slide 17: Conclusion
Conclusion For personal use only Strategic agenda advanced during the year ACTTAB integration successfully completed VRC sponsorship extended to 2024 Investment in technology platforms and digital development capabilities Sun Bets, new online wagering and gaming business established in the
Slide 18: Appendices
Appendices For personal use only 1. Wagering & Media: Financial data 2. Wagering & Media: Revenues by state & product 3. Wagering & Media: Additional information 4. Balance sheet 5. Cashflow 17
Slide 19: Appendix 1: Wagering & Media – Financial data
Appendix 1: Wagering & Media – Financial data For personal use only $m FY16 FY15 Change Revenues 1,873.0 1,856.9 0.9% Taxes, levies, commissions and fees (1,112.7) (1,099.4) 1.2% Variable contribution 760.3 757.5 0.4% Operating expenses (378.2) (381.7) (0.9%) EBITDA 382.1 375.8 1.7% D&A (129.9) (128
Slide 20: Appendix 2: Wagering & Media – Revenues by state & product
Appendix 2: Wagering & Media – Revenues by state & product For personal use only NSW Change Vic Change ACT Change Total Change $m FY16 on pcp FY16 on pcp FY16 on pcp FY16 on pcp Racing 903.6 1.3% 411.5 2.6% 24.6 34.4% 1,339.7 2.2% Sports 131.5 (3.5%) 38.5 (5.8%) 2.0 53.8% 172.0 (3.6%) Trackside 42.8
Slide 21: Appendix 3: Wagering & Media – Additional information
Appendix 3: Wagering & Media – Additional information For personal use only Turnover - TAB Fixed Odds Racing ($m) Yield - TAB Fixed Odds Racing 1,000 20% FY14 growth: 33.3% FY15: 22.1% FY16: 21.7% 14.6% 15.9% 15.2% 900 800 15% 700 600 500 10% 400 300 5% 200 100 0 0% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q1
Slide 22: Appendix 4: Balance Sheet
Appendix 4: Balance Sheet For personal use only $m Jun 16 Jun 15 Change Total current assets 197.1 296.2 (33.5%) Licences 682.4 700.9 (2.6%) Other intangible assets 1,945.3 1,924.7 1.1% Property, plant and equipment 311.7 325.1 (4.1%) Other non current assets 166.3 137.1 21.3% Total assets 3,302.8 3
Slide 23: Appendix 5: Cashflow
Appendix 5: Cashflow For personal use only $m FY16 FY15 Change Net operating flows 458.1 507.6 (9.8%) Net interest payments (68.4) (77.8) (12.1%) Income tax refund 11.4 2.8 >100% Payments for PP&E and intangibles (183.1) (131.6) 39.1% Sub-total 218.0 301.0 (27.6%) Ordinary dividends paid (173.3) (12
Slide 24: Disclaimer
Disclaimer For personal use only This Presentation contains summary information about the current activities of Tabcorp Holdings Limited (Tabcorp) and its subsidiaries (Tabcorp Group). It should be read in conjunction with the Tabcorp Group’s other periodic and continuous disclosure announcements lo
Slide 25: For personal use only
For personal use only 24 Draft version 14 (29-07-13)