Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — Shareholder Meeting (May 2007)
33 slides from Aristocrat Leisure's shareholder meeting presentation, May 1, 2007
Slide 1: Welcome to the 2007 Annual General Meeting
Aristocrat Leisure Limited Welcomes you to the 2007 Annual General Meeting
Slide 2: David Simpson, Chairman
David Simpson Chairman
Slide 3: Disclaimer
Disclaimer This document and any oral presentation accompanying it has been prepared in good faith. However, no express or implied warranty is given as to the accuracy or completeness of the information in this document or the accompanying presentation. All statutory representations and warranties a
Slide 4: David Simpson, Chairman
David Simpson Chairman
Slide 5: Paul Oneile, CEO and Managing Director
Paul Oneile Chief Executive Officer and Managing Director
Slide 6: Summary of Results
Summary of Results Profit After Tax $239 million — down 2.2% Underlying non-Japanese profit growth — up 26.7% Research and development investment — up 45% to $95.2 million Strong underlying operating cash — 28% of revenue Total dividends 36 cps — up 20% Share buy-back progressed Key strategic acquis
Slide 7: Australia/New Zealand
Australia/New Zealand 2006 2005 Variance $m $m % Segment Revenue 302.8 308.4 (1.8)% Segment Contribution Profit 121.2 121.8 (0.5)% Segment Margin 40.0% 39.5% +0.5 Pts Australia * First revenue growth in four years * Early signs of a positive change in market sentiment * Ongoing challenging market co
Slide 8: North America
North America 2006 2005 Variance $m $m % Segment Revenue 565.2 498.9 +13.3% Segment Contribution Profit 252.4 182.3 +38.5% Segment Margin 44.7% 36.5% +8.2 Pts * Outstanding performance in subdued market « Improved pricing and flat cost structures * Unit sales increased 1.2% to 17,829 units, strong s
Slide 9: Japan
Japan Segment Revenue Segment Contribution Profit Segment Margin 2006 $m 50.4 (5.6) (11.1)% 2005 $m 373.7 88.0 23.5% Variance % (86.5)% (106.4)% n/a * Short term market uncertainties - Regulation 5 transition « Sales of 12,043 units vs 98,007 units « Inventory provision for surplus unique parts - $7
Slide 10: Other Markets
Other Markets* 2006 2005 Variance $m $m % Segment Revenue 155.0 119.3 +29.9% Segment Contribution Profit 54.7 36.6 +49.5% Segment Margin 35.3% 30.7% +4.6 Pts * Excludes Elektronéek and ACE Interactive « Continuation of strong profit growth in other international markets: « Asia-Pacific (431%), Europ
Slide 11: New Businesses
New Businesses ACE Interactive « Interactive video lottery (iVT) solutions supplier + Provides server-based gaming technology « Initial contract with Casinos Slovakia « Focusing on opportunities across Europe and Asia Elektronéek « 50% interest acquired * Commands 55% share of the Macau market * Tra
Slide 12: Growth Opportunities
Growth Opportunities 2007 Australia - Replacement cycle - Software model North America - Replacement cycle - Stepper - video migration - New markets - 5 reel stepper - Wide area products - Conversions - Downloadable Japan - Regulation & - Class Ill casinos Russia Asia - Macau - Singapore Electronic
Slide 13: Outlook
Outlook First Half + Profit after Tax $120 - 125 million « Underlying* profit growth of c30% « Underlying* non-Japanese revenue growth of c20% Full Year - Continued profit growth Major influences on outcome include: * Timing of opening up or expansion of new jurisdictions * Successful launch of new
Slide 14: Simon Kelly, CFO and Finance Director
Simon Kelly Chief Financial Officer and Finance Director
Slide 15: Income Statement
Income Statement 2006 2005 Variance $m $m % Total Revenue 1,094.7 1,317.0 (16.9)% Gross Profit 642.9 679.9 (5.4)% GP% 58.7% 51.6% +7.1 Points Expenses* (221.1) (259.6) +14.8% Share of Associate PAT 7.2 - n/a EBIT (Pre R&D) 430.5 424.2 +1.5% R&D (95.2) (65.8) (44.7)% R&D/Revenue% 8.7% 5.0% -3.7 Point
Slide 16: Segment Revenue Split
Segment Revenue” Split 2005 Segment Revenue by region Australia/ NZ "Mature" 24% $1,300.3 million America “Growth” 38% 2006 Segment Revenue by region Australia/ NZ “Mature” 27% Other "Growth" 17% $1,109.8 million North America “Growth" 51% * Management Revenue excluding interest
Slide 17: Business Segmentation
Business Segmentation* $m Revenue Segment Profit Profit After Tax 800 22.4% 700 600 500 400 300 200 100 -100 (1.8)% 41.7% 47.3% (86.5)%| (0.5)% (0.5)% a7 (106.4)% (105.3)% O Australia/NZ 0 Growth markets li Japan *Actual revenue and percentage change period-on-period
Slide 18: Operating Cash Flow
Operating Cash Flow* 200 ; 30% 150 ® Ss ¢ oa > ® tc 100 = a & 3 ® 50 & [= ® 2 ® . a Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec 01 02 02 03 03 04 04 05 05 06 06 -50 -10% gag Operating Cash Flow —@=LTM Operating Cash Flow %LTM Revenue juste or working capital timing differences
Slide 19: Working Capital
Working Capital % of LTM Revenue Net Working Capital - % of Last 12 Months Revenue 40.0% 35.0% 30.0% 25.0% 20.0% 10% target 15.0% 10.0% 5.0% 0.0% Pa Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec 01 O1 O02 O02 O03 O03 04 04 05 O05 O06 06
Slide 20: Key Financials and Ratios
Key Financials and Ratios 2006 2005 $m $m EBITDA 366.7 398.1 EBIT (Pre R&D) 430.5 424.2 EBIT 335.3 358.4 Working Capital/Revenue (%)* 7.7% 3.4% Operating Cash Flow 204.8 393.2 Operating Cash Flow/Revenue (%) 18.7% 29.9% Net (Debt)/Cash (40.8) 183.7 Debt/EBIT DA* 0.4X 0.4X EBIT DA/Interest Expense* 2
Slide 21: Simon Kelly, CFO and Finance Director
Simon Kelly Chief Financial Officer and Finance Director
Slide 22: Resolutions
Resolutions
Slide 23: Resolution: Financial Statements
Resolution 1 Financial Statements
Slide 24: Election of Directors
Election of Directors
Slide 25: Resolution: Election of Mr DJ Simpson
Resolution 2 Election of Director: Mr DJ Simpson
Slide 26: Resolution: Election of Mrs P Morris
Resolution 3 Election of Director: Mrs P Morris
Slide 27: Resolution: Election of Mr SCM Kelly
Resolution 4 Election of Director: Mr SCM Kelly
Slide 28: Resolution: Participation by Mr PN Oneile in LTPSP
Resolution 5 Participation by Mr PN Oneile in the 2007 Long Term Performance Share Pian
Slide 29: Resolution: Participation by Mr SCM Kelly in LTPSP
Resolution 6 Participation by Mr SCM Kelly in the 2007 Long Term Performance Share Pian
Slide 30: Resolution: Adoption of Remuneration Report
Resolution 7 Adoption of Remuneration Report
Slide 31: General Business
General Business
Slide 32: Conclusion of Formal Meeting
Conclusion of Formal Meeting
Slide 33: Thank You
Thank You