Star Entertainment Group Limited · ASX:SGR
Star Entertainment — Echo Entertainment Group — Shareholder Meeting (November 2011)
31 slides from Star Entertainment's shareholder meeting presentation, Nov 10, 2011
Slide 1: Echo Entertainment Group Limited 2011 Annual General Meeting
Echo Entertainment Group Limited 2011 Annual General Meeting – 10 November 2011 Chairman’s Address
Slide 2: Agenda
Agenda □ Chairman’s address □ The emergence of Echo Entertainment □ Demerger rationale □ Financial results overview □ Echo Entertainment group overview □ Community □ Managing Director and Chief Executive Officer □ Transformation of The Star □ Trading update and outlook □ Items of business and resolu
Slide 3: The Emergence of Echo Entertainment
The Emergence of Echo Entertainment 18 October 2010 Tabcorp announces pursuit of demerger of its casino businesses 1 June 2011 Shareholders approve the demerger 3 June 2011 Court approval obtained for the demerger 6 June 2011 Echo Entertainment shares commence trading on ASX on a deferred settlement
Slide 4: Demerger Rationale
Demerger Rationale □ Create two attractive ASX-listed companies □ Different investment profiles for the two companies □ Each company to adopt an appropriate capital structure and dividend policy □ Owns and operates four premier casinos in □ Sydney (The Star) □ Queensland (Jupiters Gold Coast, Treasu
Slide 5: FY11 Financial Results Overview
FY11 Financial Results Overview □ FY11 result solid and provides momentum for FY12 □ EBITDA up 28% to $446 million □ strong win rate □ offset the impact of construction in Sydney and natural disasters in Queensland □ Normalised EBITDA up 7% □ Growth in all properties and business segments □ Target a
Slide 6: Launching The Star
Launching The Star □ Established in 1995 □ 99 year licence expires in 2093 □ Exclusivity of certain products extended until Nov 2019 The Star redevelopment: □ Reorientation of the property towards □ Spa and treatment rooms Sydney harbour □ Retail space □ 5-star hotel □ Private gaming facilities □ Re
Slide 7: The Star
The Star Rock Lily BLACK Bar 7
Slide 8: VIP Business
VIP Business □ Seeing the benefit of investment in international VIP business □ Addition of 2 private jets enabling travel from Asian Markets to Sydney direct □ Refurbishment of premium gaming areas 8
Slide 9: Profile of Jupiters Hotel and Casinos
Profile of Jupiters Hotel and Casinos Jupiters Hotel and Casino Gold Coast □ Established 1985 □ Perpetual licence Jupiters Townsville Hotel and Casino □ Established in 1986 □ Perpetual licence 9
Slide 10: Profile of Treasury Casino and Hotel
Profile of Treasury Casino and Hotel □ Established 1995 □ Perpetual licence linked to the lease of the Treasury Casino and Hotel property that expires in 2070. 10
Slide 11: Proposed Investment in Queensland
Proposed Investment in Queensland Jupiters Gold Coast Treasury Brisbane redevelopment: redevelopment: □ New 5-star hotel □ New restaurants and bars □ New events centre or ballroom □ New night life venue □ New world class spa □ New night life venue □ New spa facilities and “ultra □ Additional restaur
Slide 12: Proposed Investment in Queensland
Proposed Investment in Queensland 12
Slide 13: Community
Community $1 million donation to Qld Premier’s Disaster Relief Appeal as part of Tabcorp Holdings Limited group – additional $150,000 raised by Qld properties NSW: Variety Children's Charity, Australian Cancer Council, Marist Youth Care, Combined Pensioner Association QLD: Jupiters Summer Surf Girl,
Slide 14: Managing Director and CEO Address
Echo Entertainment Group Limited 2011 Annual General Meeting - 10 November 2011 Larry Mullin – Managing Director and Chief Executive Officer
Slide 15: Star – Opening schedule progressing on track
Star – Opening schedule progressing on track Significant new product launched since the start of the financial year Non-gaming Two major openings on 15 September and 25 October Gaming FY12 July August September October Vestibule Gaming Area 5A Pirrama Rd Entry Sokyo Gaming Area 1C Gaming Area 5B Bla
Slide 16: The Star – Opened 15 Sept – Pirrama Road Entrance
The Star – Opened 15 Sept – Pirrama Road Entrance 16
Slide 17: The Star – Opened 15 Sept – Balla & Black
The Star – Opened 15 Sept – Balla & Black 17
Slide 18: The Star – Opened 15 Sept – Cherry
The Star – Opened 15 Sept – Cherry 18
Slide 19: The Star – Opened 15 Sept – Retail & Café Court
The Star – Opened 15 Sept – Retail & Café Court 19
Slide 20: The Star – Opened 25 Oct – The Darling
The Star - Opened 25 Oct – The Darling 20
Slide 21: The Star – Opened 25 Oct – Restaurants and Spa
The Star - Opened 25 Oct – Restaurants and Spa Momofuku Seiobo Sokyo Spa relaxation area Spa reception 21
Slide 22: The Star – Positive reaction to openings
The Star – Positive reaction to openings 22
Slide 23: Revenue trajectory for The Star since openings
Revenue trajectory for The Star since openings □ Initial performance of new areas pleasing and in-line with expectations □ Gaming revenue (ex PGR and VIP) up 10.5% on pcp from 16 September to 16 October □ PGR and VIP more volatile on a week-to-week basis given win rates, but both areas tracking up s
Slide 24: The Star restaurants and bars - Operating statistics
The Star restaurants and bars - Operating statistics □ Initial performance of the new signature restaurants and bars is pleasing with limited cannibalisation evident in existing areas Restaurant Total - Gross Revenue ($’000) 2012 - Week to Date Existing Restaurants Fat Noodle Food Quarter Black by E
Slide 25: The Star – Remaining areas to open
The Star – Remaining areas to open Project Star to be completed with nearly all major product opening between Non-gaming mid September and Christmas Gaming FY12 November December 2H12 FY13 Retail Phase 3 Pyrmont St Entry Nightclub Events centre Signature Suites MGF Café Golden Century MGF Area 3B VI
Slide 26: The Star new areas to open Dec 2011 - VIP salons
The Star new areas to open Dec 2011 - VIP salons 26
Slide 27: The Star new areas to open 3QFY12 - Nightclub
The Star new areas to open 3QFY12 - Nightclub 27
Slide 28: The Star new areas to open next year - Events centre
The Star new areas to open next year - Events centre 28
Slide 29: Major events and shows in 1HFY12
Major events and shows in 1HFY12 □ Entertainment a key pillar of our strategy. Events this half include: □ Elton John □ Stevie Wonder □ Placido Domingo □ Flo Rida □ Al Pacino □ Kevin Spacey in Richard 3 □ Olivia Newton John □ Janet Jackson □ Kings of Leon 29
Slide 30: Group trading update and outlook
Group trading update and outlook □ Project Star on plan and on budget □ Balance sheet strong and geared to deliver growth □ Outlook for FY12 positive for Echo – current trading for the start of FY12 is in line with expectations and solid given cautious consumer environment and disruptions. Revenues
Slide 31: Echo Entertainment Group Limited
Echo Entertainment Group Limited 2011 Annual General Meeting – 10 November 2011
Echo Entertainment Group — Shareholder Meeting (November 2011) on 6ix