Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — FY2010 Earnings Presentation
33 slides from Aristocrat Leisure's earnings presentation, Feb 24, 2011
Slide 1: Results Presentation Full Year to 31 December 2010
_ Aristocrat Leisure Limited 5 Results Presentation % Full Year to 31 December 2010 =) e 24 February 2011 ARISTOCRAT
Slide 2: Disclaimer
Disclaimer For personal use only 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 representa
Slide 3: Agenda
Agenda For personal use only 1. Financial results summary Jamie Odell 2. Detailed 2010 review, 2011 outlook Jamie Odell 3. Group results Toni Korsanos 4. Concluding comments Jamie Odell 5. Questions 3
Slide 4: Financial Results - Summary
Financial Results - Summary For personal use only Constant currency $ million FY2010 FY 2009 Change % FY 2010 2 Change % Revenue 684.6 908.6 24.7 760.0 16.4 Operating profit after tax and 54.6 116.4 53.1 66.0 43.3 non-controlling interest 1 Net abnormal items after tax 22.6 (274.3) 108.2 22.7 108.3
Slide 5: Financial Results - Summary
Financial Results - Summary For personal use only A challenging year - weak economic conditions, 18 months into 5 year turnaround Operational performance mixed, reflecting availability of new product Accelerated implementation of strategy and step-change in competitiveness of product portfolio acros
Slide 6: Agenda
Agenda For personal use only 1. Financial results summary Jamie Odell 2. Detailed 2010 review, 2011 outlook Jamie Odell 3. Group results Toni Korsanos 4. Concluding comments Jamie Odell 5. Questions 6
Slide 7: North America Results
North America Results • Share gain year on year For personal use only Unit FY2010 Change (%) in declining market Revenue US$m 296.8 7.9 • Gaming operations Profit US$m 116.1 7.0 footprint declined Margin % 39.1 0.4pts reflective of ageing installed base pending Volume new game releases - Platforms U
Slide 8: G2E 2010 Overview
G2E 2010 Overview For personal use only Step-change in the competitiveness of North American product portfolio First outputs of new product development capability and focus, in line with our strategy Early evidence of stronger performance in new games (fee per day, average selling price) More releas
Slide 9: North America - 2011 Outlook
North America - 2011 Outlook For personal use only Improved performance, despite expected flat market. Performance heavily weighted to H2 Aristocrat to maintain shipshare in outright sales and improve margins from move to widescreen Gaming operations performance to improve with more competitive game
Slide 10: Australia Results
Australia Results For personal use only • Poor performance relating Units 2010 change (%) to legacy portfolio Revenue A$m 137.6 33.8 • Year of rebasing for future Profit A$m 23.3 68.3 growth – more diverse product portfolio in 2011 Margin % 16.9 18.4 pts Volume • New product tailored specifically to
Slide 11: Australia - 2011 Outlook
Australia - 2011 Outlook For personal use only No material change in overall demand expected Aristocrat to improve shipshare and margins due to a broader product portfolio tailored for Australian market Top line momentum and share growth to build from Q2 2011 Australia positioned to recover through
Slide 12: Japan Results
Japan Results For personal use only • Improved pachislot market Units 2010 Change (%) led to more intense Revenue ¥m 3,850.5 54.7 competition Profit ¥m 462.3 69.4 • Legacy product was Margin % 12.0 5.8 pts uncompetitive Volume • New licences supported by - Games Units 14,277 52.0 new technology and
Slide 13: Japan - 2011 Outlook
Japan - 2011 Outlook For personal use only All game releases to feature licensed content, bigger and better game releases New cabinet and technology launching in H2 to further improve competitiveness Unit sales to lift and stabilise, stronger product releases and continued cost containment Performan
Slide 14: Rest of World Results
Rest of World Results For personal use only Unit FY 20101 Change (%) • Strong performance in Asia Pacific, Europe and Latin Revenue A$m 199.1 5.3 America offset by weak result in New Zealand and South Profit A$m 64.3 13.6 Africa Margin % 32.3 2.4 pts • Achieved highest floor share in Volume Singapor
Slide 15: Asia Pacific Overview
Asia Pacific Overview For personal use only Market leading share of new openings in Singapore and leader position in Macau growing Game performance extremely strong and sustained Success built on high game quality, tailored to needs of local operators and players 15
Slide 16: Rest of World - Results
Rest of World - Results For personal use only Europe revenues improved and profits increased significantly Aristocrat Lotteries, entered Italian market, beginning rollout against Cogetech contract with impressive early game performance South Africa revenues and profit declined, reflecting depressed
Slide 17: Rest of World - 2011 Outlook
Rest of World - 2011 Outlook For personal use only Holding share across markets, overall demand expected to be flat Net revenues to fall somewhat due to fewer Asia Pacific openings Europe and South Africa expected to be flat, revenues to improve in Latin America and New Zealand due to stronger produ
Slide 18: Agenda
Agenda For personal use only 1. Financial results summary Jamie Odell 2. Detailed 2010 review, 2011 outlook Jamie Odell 3. Group results Toni Korsanos 4. Concluding comments Jamie Odell 5. Questions 18
Slide 19: Profit & Loss
Profit & Loss For personal use only Constant currency $ million Units FY2010 FY 2009 Change % FY 2010 2 Change % Revenue A$m 684.6 908.6 24.7 760.0 16.4 Total segment profit A$m 211.8 303.9 30.3 239.0 21.4 Segment profit margin % 30.9 33.4 2.5pts 31.4 2.0pts EBIT (before D&D) A$m 194.5 283.3 31.3 21
Slide 20: Abnormals
Abnormals For personal use only $ million FY2010 Before tax After tax Convertible bonds settlement 35.8 22.1 Profit on disposal of investment in Elektronček 12.7 12.7 Impairment of gaming operation assets (12.5) (8.1) Restructuring costs (6.1) (4.1) Net abnormal profit 29.9 22.6 20
Slide 21: EBIT Bridge
For personal use only 21 EBIT $A million EBIT Bridge
Slide 22: Capital Management
Capital Management For personal use only Continued strong cash flow generation Commitment to reducing gearing levels and related interest costs Final dividend declared 1.5 cents per share The dividend will be funded by fully underwritten DRP with a 2.5% discount Unit FY 2010 FY 2009 Change Operating
Slide 23: Agenda
Agenda For personal use only 1. Financial results summary Jamie Odell 2. Detailed 2010 review, 2011 outlook Jamie Odell 3. Group results Toni Korsanos 4. Concluding comments Jamie Odell 5. Questions 23
Slide 24: Outlook Summary – Full Year
Outlook Summary – Full Year For personal use only Global market conditions remain subdued More and better product to drive performance improvements in all key markets Group operational performance significantly ahead of pcp reflecting higher segment profitability and increasing D&D efficiency Higher
Slide 25: Outlook Summary - H1 2011
Outlook Summary - H1 2011 For personal use only H1 2011 EBIT expected to be lower than pcp due to fewer new openings in Asia Pacific region and expected higher translational FX impacts at current levels Other challenges include higher interest costs and a higher effective tax rate New gaming operati
Slide 26: Outlook Summary – H2 2011
Outlook Summary – H2 2011 For personal use only Fully stocked pipelines in all key markets North America uplift in gaming operations installed base and fee per day. New products achieving higher fee per day than legacy Growth in Australian outright sales at higher average selling price delivering EB
Slide 27: Agenda
Agenda For personal use only 1. Financial results summary Jamie Odell 2. Detailed 2010 review, 2011 outlook Jamie Odell 3. Group results Toni Korsanos 4. Concluding comments Jamie Odell 5. Questions 27
Slide 28: Agenda
Agenda For personal use only 1. Financial results summary Jamie Odell 2. Detailed 2010 review, 2011 outlook Jamie Odell 3. Group results Toni Korsanos 4. Concluding comments Jamie Odell 5. Questions 28
Slide 29: Supplementary materials
Supplementary materials For personal use only 29
Slide 30: Detailed P&L
Detailed P&L For personal use only Constant A$ million currency (unless otherwise stated) FY 20101 FY 20091 Change (%) 20101 Change (%) Revenue 684.6 908.6 (24.7)% 760.0 (16.4)% Gross margin 370.7 495.1 (25.1)% 404.7 (18.3)% Gross margin 54.1% 54.5% 0.4pts 53.3% (1.2)pts EBIT (pre D&D) 194.5 283.3 (
Slide 31: North America
North America For personal use only Unit FY 2010 FY 2009 Change Revenue US$m 296.8 322.4 (25.6) (7.9)% Profit US$m 116.1 124.9 (8.8) (7.0)% Margin % 39.1 38.7 - 0.4 pts Revenue A$m 323.1 405.6 (82.5) (20.3)% Profit A$m 126.7 156.2 (29.5) (18.9)% Margin % 39.2 38.5 - 0.7 pts Volume - Platforms Units
Slide 32: Australia
Australia For personal use only Unit FY 2010 FY 2009 Change Revenue A$m 137.6 207.8 (70.2) (33.8)% Profit A$m 23.3 73.4 (50.1) (68.3)% Margin % 16.9 35.3 - (18.4) pts Volume - Platforms Units 3,737 5,292 (1,555) (29.4)% - Conversions Units 8,949 11,636 (2,687) (23.1)% Price - Av. selling price A$ /
Slide 33: Japan
Japan For personal use only Unit FY 2010 FY 2009 Change Revenue ¥m 3,850.5 8,493.5 (4,643.0) (54.7)% Profit ¥m 462.3 1,511.3 (1,049.0) (69.4)% Margin % 12.0 17.8 - (5.8) pts Revenue A$m 48.5 106.1 (57.6) (54.3)% Profit A$m 6.0 17.7 (11.7) (66.1)% Margin % 12.4 16.7 - (4.3) pts Volume - Games Units 1