Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — FY2020 Earnings Presentation
32 slides from Aristocrat Leisure's earnings presentation, Nov 18, 2020
Slide 1: Results Presentation: 12 months to 30 September 2020
Aristocrat Leisure Limited Investor Presentation 18 November 2020 For personal use only Results Presentation 12 months to 30 September 2020
Slide 2: Disclaimer
Disclaimer This document and any oral presentation accompanying it has been prepared in good faith, however, no express or implied representation or warranty is given as to the accuracy or completeness of the For personal use only information in this document, in any accompanying presentation or in
Slide 3: Agenda
For personal use only AGENDA 1 COVID-19 Response and Recovery 2 Group Results and Financial Summary 3 Operational Performance 4 Results Summary and Outlook 5 Q&A
Slide 4: COVID-19 Response and Recovery Summary
COVID-19 RESPONSE AND RECOVERY SUMMARY Successful response and recovery plans focused on the right priorities For personal use only PEOPLE Safety and Wellbeing 8.5 FIRST #1 priority Engagement Score - above Industry Benchmark CUSTOMER Aristocrat Assist Service, Flexibility and CENTRICITY Dedicated S
Slide 5: Refreshed Strategy
For personal use only REFRESHED STRATEGY ) 5
Slide 6: Group Results & Financial Summary
For personal use only GROUP RESULTS & FINANCIAL SUMMARY
Slide 7: Group Results Summary
GROUP RESULTS SUMMARY Balance sheet strength and enhanced liquidity, strong operating cash flow maintained above $1 billion; double-digit growth in Aristocrat Digital; overall NPATA decline of 47% driven by COVID-19 impact on Aristocrat Gaming business For personal use only ▪ Diversification strateg
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Strong performance in Aristocrat Digital partly mitigating COVID-19 impacts across the Aristocrat Gaming business For personal use only 1 NPATA bridge (A$m) Note: 1 Movements above are reported on a constant currency basis and are tax effected at the prior year tax rate. Number
Slide 9: Balance Sheet and Debt Profile
BALANCE SHEET AND DEBT PROFILE Strong balance sheet supportive of Aristocrat’s growth strategy For personal use only Balance Sheet Statistics1 A$ million 30 Sep 2020 31 Mar 2020 30 Sep 2019 Total debt 3,243.2 3,122.2 2,792.3 ▪ Strong balance sheet with 1.4x net leverage Net debt / (cash) 1,567.5 2,2
Slide 10: Cash Flow
CASH FLOW Cash generating fundamentals remain strong with operating cash flow over $1 billion For personal use only Operating Cash Flow A$ million 2020 2019 Change % EBITDA 1,089.4 1,596.8 (31.8) Change in net working capital 209.4 (186.0) n/a Subtotal 1,298.8 1,410.8 (7.9) Interest and tax (193.5)
Slide 11: Operational Performance
For personal use only OPERATIONAL PERFORMANCE
Slide 12: Aristocrat Gaming - Americas
ARISTOCRAT GAMING - AMERICAS Revenue and profit declines driven by COVID-19 customer venue closures and social distancing measures since March 2020 For personal use only ▪ Pre-COVID-19 performance in line with expectations Americas 2020 2019 Change % Summary Profit or Loss ▪ Class III Premium Gaming
Slide 13: Aristocrat Gaming - ANZ & International Class III
ARISTOCRAT GAMING - ANZ & INTERNATIONAL CLASS III Revenue and profit declines in these predominantly Outright Sales markets due to the impact of COVID-19 venue closures and social distancing measures For personal use only ANZ 20201 2019 Change % Summary Profit or Loss Revenue A$m 280.5 456.2 6 (38.5
Slide 14: Aristocrat Digital
ARISTOCRAT DIGITAL Bookings growth of 31% and profit growth of 34% reflects continued targeted investment in Live Ops, features and slot content, portfolio diversification, increased User Acquisition (UA) investment and the benefit of COVID-19 social restrictions For personal use only ▪ Revenue and
Slide 15: Aristocrat Digital - Active Portfolio Management Driving Sustainable Growth
ARISTOCRAT DIGITAL - ACTIVE PORTFOLIO MANAGEMENT DRIVING SUSTAINABLE GROWTH Portfolio continues to diversify across genres, geographies and demographics. New titles scaling, whilst supporting established franchise titles For personal use only Bookings by segment Bookings by game1 $1.6bn $1.2bn $1.2b
Slide 16: Aristocrat Digital - Portfolio
ARISTOCRAT DIGITAL - PORTFOLIO We continue to expand and diversify our portfolio into new, high value segments while in parallel, we create additional player value within established franchises through a targeted strategy of best-in-class Live Ops and feature deployments For personal use only In Sof
Slide 17: Results Summary and Outlook
For personal use only RESULTS SUMMARY AND OUTLOOK
Slide 18: FY20 Results Summary
FY20 RESULTS SUMMARY Balance sheet strength and enhanced liquidity, strong operating cash flow maintained above $1 billion; double-digit growth in Aristocrat Digital; overall NPATA decline of 47% driven by COVID-19 impact on Aristocrat Gaming business For personal use only Aristocrat Gaming ▪ Perfor
Slide 19: Outlook
OUTLOOK Assuming no material change in economic and industry conditions, Aristocrat plans for growth over the 2021 full fiscal year, reflecting: For personal use only ▪ Maintained or enhanced market-leading positions in Gaming Operations, measured by the number of machines that are operating and gam
Slide 20: Q&A
For personal use only Q&A
Slide 21: Close
For personal use only CLOSE
Slide 22: Appendices
For personal use only APPENDICES
Slide 23: Appendix: Aristocrat Gaming at a Glance
APPENDIX: ARISTOCRAT GAMING AT A GLANCE Serving more than 300 licensed jurisdictions with a diverse portfolio, including Electronic Gaming Machines, Casino Management Systems and connected products and services For personal use only ~92% of NA casinos US$17,190 (NA) 14 out of 25 top open4 >$1.7bn A$
Slide 24: Appendix: Aristocrat Gaming North American Adjacencies
APPENDIX: ARISTOCRAT GAMING NORTH AMERICAN ADJACENCIES Strong market segmentation and investment leading to successful entry into a number of identified adjacent markets, growing our addressable market and share gain opportunities For personal use only Gaming Operations Outright Sales Class II Gamin
Slide 25: Appendix: Aristocrat Digital at a Glance
APPENDIX: ARISTOCRAT DIGITAL AT A GLANCE For personal use only >$1.6bn +31% 6.7m 9 FY20 Bookings YoY Bookings Growth DAU Evergreen Titles $495m 59c $815m $368m FY20 Social Casino FY20 RAID: Shadow FY20 Segment Profit FY20 ABPDAU Bookings LegendsTM Bookings 31% $450m 10 2,100+ FY20 User Acquisition F
Slide 26: Appendix: Aristocrat Digital Strategic Context
APPENDIX: ARISTOCRAT DIGITAL STRATEGIC CONTEXT A focused strategy to drive portfolio growth by leveraging our scale and delivering great content, while maximising efficiencies For personal use only Market Intelligence & 1 2 Creativity & Innovation Portfolio Planning • Market intimacy • World class t
Slide 27: Appendix: Aristocrat Digital Market Segmentation by Genre
APPENDIX: ARISTOCRAT DIGITAL MARKET SEGMENTATION BY GENRE Digital offers access to a fast growing and large total addressable market (TAM) of US$77 billion (worldwide); providing significant growth opportunities in further diversification within core and new segments (including Asia) For personal us
Slide 28: Appendix: Aristocrat Digital User Acquisition – Illustrative Investment Profile
APPENDIX: ARISTOCRAT DIGITAL USER ACQUISITION – ILLUSTRATIVE INVESTMENT PROFILE Set out below is an illustrative only profile of the return on investment over time on User Acquisition investment into a game For personal use only Illustrative Profitability Horizon on UA Investment $3.00 Initial UA Re
Slide 29: Appendix: Capital Allocation Priorities
APPENDIX: CAPITAL ALLOCATION PRIORITIES Aristocrat’s capital allocation priorities support our long-term growth strategy, while maximising shareholder returns For personal use only Capital allocation priorities 1. Invest in the existing business to drive growth ▪ D&D continues to be #1 priority and
Slide 30: Appendix: Financial Reconciliations
APPENDIX: FINANCIAL RECONCILIATIONS Reconciliation of Statutory Financial Statements Revenue, EBITDA, NPATA, and NPAT to the Operating and Financial Review For personal use only Financial Results A$ million Revenue EBITDA NPATA NPAT Significant Items Statutory Financial Statements FY20 4,139.1 975.4
Slide 31: Appendix: Segment Financials
APPENDIX: SEGMENT FINANCIALS Segment Financial Information (statutory) For personal use only Statutory P&L - Aristocrat Gaming - Americas Statutory P&L - Aristocrat Gaming - International Class III A$ million 2020 2019 A$ million 2020 2019 Revenue 1,367.6 1,948.0 Revenue 131.4 204.5 EBITDA 712.6 1,2
Slide 32: Aristocrat Leisure Limited Results Presentation
Aristocrat Leisure Limited Investor Presentation 18 November 2020 For personal use only Results Presentation 12 months to 30 September 2020