Cirsa Enterprises, S.a.u. · BME:CIRSA
Cirsa Enterprises, S.a.u — Cirsa — Q1 2017 Earnings Presentation
14 slides from Cirsa Enterprises, S.a.u's earnings presentation, June 2017
Slide 1: Q1-2017 results and strategy update
Q1-2017 results and strategy update Group presentation June 2017
Slide 2: Forward-looking statements
This presentation includes forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "intends", "may," "will" or "should" or, in each case, their negative, or other
Slide 3: Executive summary
Executive summary Since Q2’06, 43 consecutive quarters delivering financial commitments Strategy delivering positive results regardless of the economic environment: EBITDA (€m) and EBITDA margin % Leverage 3.7x 422-428 -40% / -50% 398 5.0x 380 328 260 3.2x 3.1x 2.6x 2.4x 2.5x-3.0x 114 12% 21% 24
Slide 4: Strategy delivering positive results regardless of the economic environment
Strategy delivering positive results regardless of the economic environment EBITDA (€ m), EBITDA margin (%) & Leverage evolution 422-428 380 398 328 260 114 12% 21% 24% 24% 25% 2005 2010 2014 2015 2016 Guidance 2017 5.0x 3.2x 3.1x 2.6x 2.4x 2.5-3.0x Financial evolution highlights Net operating rev
Slide 5: 2016-17 quarterly EBITDA evolution (€ M)
2016-17 quarterly EBITDA evolution (€ M) +7.5% +7.6% 101.0 106.0 105-107 98.5 98.6 100.1 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 FQ2’17 €106.0M Q1’17: strong growth vs Q1’16 (+7.6%) under unfavourable gaming tax scenario (ARG, COL) H1’17 performance confirming reached level in H2’16 Key growth drivers:
Slide 6: Cirsa at a glance (as of March 31st)
Cirsa at a glance (as of March 31st) Four main business units: Slots Mexico route operations, Casinos, Bingo & Dominican Rep. Arcade halls and B2B (slots design / manufacturing for Spanish market & Panamá interconnectivity systems), Costa Rica Italy Sound diversification: 4 business Colombia uni
Slide 7: Diversification summary: Unique diversification profile in the gaming industry
Diversification summary: Unique diversification profile in the gaming industry # Countries 10 Geographical diversification # Gaming Jurisdictions 38 # Cities 177 • Slot route operations Business # Reported business units 4 • Arcades diversification • Traditional Casinos # Gaming segments 9 • Electro
Slide 8: Diversification: 1Q 2017 EBITDA mix by business segment & geography
Diversification: 1Q 2017 EBITDA mix by business segment & geography EBITDA by business unit (€ m) EBITDA by geography Other Italy 4% 5 -6 Mexico 5% 14 106 8% 61 Spain 36% Colombia 11% 32 19% 31% 57% 13% 5% (5%) 100% Panama 17% Argentina Slots Casinos Bingos B2B Structure TOTAL EBITDA mix showing b
Slide 9: Strategy 2017-20 … basics remain the same
Strategy 2017-20 … basics remain the same Consistent execution of our strategy has delivered significant results in EBITDA growth (+12% yoy since 2005) and leverage reduction (from 5.0x 2005 to 2.4x 2016) Key strategic levers Strategic objectives Comments / Facts Focus on core • EBITDA improvement
Slide 10: Slots: EBITDA (€m) and key actions
Slots: EBITDA (€m) and key actions 13.7% 116 +16.8% 102 Highlights: 98 88 32.4 27.7 • Strong performance in Q1’17 both in Spain and 37 Italy (not yet impacted by new tax increase April’17) 2005 2010 2014 2015 2016 Q1’ 16 Q1’ 17 Spain 2016 & Q1’17 showing revenue & EBITDA improvement, supported by:
Slide 11: Casinos: EBITDA (€m) and key actions
Casinos: EBITDA (€m) and key actions -2.8% 253 246 Highlights: -49 59 -17 • 2016: Strong business 216 performance +59M with rev’s -2.4% growth in all markets, 142 62.4 severally impacted by FX 60.9 49M (Arg: 44M & Col: 5M) & tax increases 17M (Arg: 4.8M, 73 Col: 2.7M & Pan: 9.9M) • 1Q’17: performanc
Slide 12: Bingos: EBITDA (€m) and key actions
Bingos: EBITDA (€m) and key actions 44.8% 42 Highlights: +24.9% 31 29 • Operating efficiencies, better 27 13.7 11.0 market conditions and new 18 regulation drive Spain’s improvement • Strong performance in all our Mexican halls 2005 2010 2014 2015 2016 Q1’ 16 Q1’ 17 Spain More favourable regulatio
Slide 13: B2B: EBITDA (€m) and key actions
B2B: EBITDA (€m) and key actions -15.8% 19 +46.0% Highlights: 16 16 16 4.8 • Marketing &Sales initiatives 3.3 during Q4’16 harvested in Q1’17 driven by top performing models, despite Q1’ 16 Q1’ 17 of still weak market (AWP & systems) -8 2005 2010 2014 2015 2016 Spain’s AWP market leadership throug
Slide 14: Summary
Summary Commitment and credibility – Since 2006 management team consistently delivered, quarter after quarter (43), business and financial commitments – 2017 Guidance on track (€422M-€428M): Q1’17 (€106M) and FQ2’17 (€105M-€107M) – 2017 leverage target maintained at 2.5x ~ 3.0x Current strategy,