Paradise Entertainment Limited · HKEX:1180
Paradise Entertainment — FY2019 Earnings Presentation
37 slides from Paradise Entertainment's earnings presentation, Mar 26, 2020
Slide 1: Paradise Entertainment Limited 2019 Annual Results
1 Paradise Entertainment Limited (Incorporated in Bermuda with limited liability) 1180.HK 26 March 2020 2019 Annual Results
Slide 2: Contents
ONTENTS 1 PART ONE COMPANY OVERVIEW 2 PART TWO BUSINESS STRATEGY 3 PART THREE FINANCIAL SUMMARY 4 PART FOUR GROWTH OPPORTUNITY 5 PART FIVE OUR KEY DIFFERENTIATORS 6 PART SIX PHOTO GALLERY 2
Slide 3: Part One: Company Overview
PART ONE Company Overview 3
Slide 4: Corporate Structure
01 CORPORATE STRUCTURE Paradise Entertainment 1180.HK ELECTRONIC CASINO GAMING MANAGEMENT EQUIPMENT & SERVICES SYSTEMS SEGMENT SEGMENT 4
Slide 5: How Did We Arrive Here?
01 HOW DID WE ARRIVE HERE? Paradise Entertainment 2014 • Granted another casino service management license and started casino management business in 2007 Casino Waldo 2016 2008 • Strategic partnership with IGT • Granted casino service and assigned to IGT 15 years’ management license and initiated ca
Slide 6: Chief Executive
01 CHIEF EXECUTIVE Paradise Entertainment Mr. Jay Chun Chairman and Managing Director • Chairman and Managing Director of Paradise Entertainment Limited • Founder & Chairman of the Macau Gaming Equipment Manufacturers Association • Member of the Shandong Provincial Committee of the Chinese People’s
Slide 7: Part Two: Business Strategy
PART TWO Business Strategy 7
Slide 8: Business Segments
02 BUSINESS SEGMENTS Paradise Entertainment • Major gaming equipment and systems • Provides casino management services which provider in Macau generate stable and strong cash inflow to the • Inventor, patent-owner and sole-supplier of Group our flagship product – LMG • Focus on mass gaming market in
Slide 9: How Are We Leading in LMG in Macau?
02 HOW ARE WE LEADING IN LMG IN MACAU? Electronic Gaming Equipment and Systems LMG GGR in Macau # of LMG terminals (MOP’m) 6,000 2,840 3,000 2,728 2,431 5,000 2,350 2,500 2,256 2,120 4,000 2,000 1,487 3,000 1,500 5,514 895 4,885 4,538 4,613 2,000 1,000 3,742 3,196 2,835 1,000 1,852 500 0 - FY2012 FY
Slide 10: How Are We Leading in LMG in Macau? Market Share
02 HOW ARE WE LEADING IN LMG IN MACAU? Electronic Gaming Equipment and Systems LMG MARKET SHARE Macau Deployment * 5500+ 100% ▪ Flagship product ▪ Patent-protected ▪ 100% market share of LMG in Macau ▪ Customers of our LMG machines include various major casino operators and satellite casinos in Maca
Slide 11: Who Are Customers of LMG Machines Overseas?
02 WHO ARE CUSTOMERS OF LMG MACHINES OVERSEAS? Electronic Gaming Equipment and Systems Number of terminals LMG machines deployed in Overseas Markets 900 793 800 700 601 600 505 500 378 400 280 300 206 200 154 100 0 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 We entered into strategic p
Slide 12: Why LMGs in Casinos?
02 WHY LMGs IN CASINOS? Electronic Gaming Equipment and Systems Table Machine Ratio In Casino Kam Pek Paradise Advantages of LMG over traditional gaming tables: ~1 :100 ▪ Improve gaming efficiency and reduce labor costs ▪ Increase game security and reliability Total LMG GGR in Macau FY2019 ▪ Keep pr
Slide 13: International Partners
02 INTERNATIONAL PARTNERS Electronic Gaming Equipment and Systems ▪Strategic partnership with IGT ▪ Alliance with LT Game Japan and other leading gaming companies 13
Slide 14: Where the Gross Gaming Revenue Comes From?
02 WHERE THE GROSS GAMING REVENUE COMES FROM? Casino Management Services FY2019 GGR: FY2019 GGR: HK $1,270 million HK $547 million (operate since Aug 2008) (operated from Mar 2014 to Feb 2020*) Casino Casino WALDO KAM PEK PARADISE TOTAL 49 TOTAL 30 Traditional 39 Traditional 25 LMG / Terminal 10 / 9
Slide 15: Our Target Market
02 OUR TARGET MARKET Casino Management Services VIP Premium Mass Mass Grind Mass Our Target Market Our Latest Innovative ETG for Mass Market 15
Slide 16: Part Three: Financial Summary
PART THREE Financial Summary 16
Slide 17: Financial Summary – 2019 Annual Results
03 FINANCIAL SUMMARY – 2019 ANNUAL RESULTS Paradise Entertainment Total GGR from the LMG Deployment 2 casinos under management Net Profit in Macau HK$ 1,817 million Sold 799 units HK$ 10.6 million Upgraded 1,051 units Reported Revenue Adjusted EBITDA HK$ 1,182 million HK$ 87.0 million 17
Slide 18: Financial Summary – 2019 Highlights
03 FINANCIAL SUMMARY – 2019 HIGHLIGHTS Paradise Entertainment CASINO MANAGEMENT SERVICES ELECTRONIC GAMING EQUIPMENT & SYSTEMS Casino KAM PEK PARADISE Casino Waldo GGR HK$1,270.2million 547.1million HK$ Sales of LMGs 799 in Macau 69.9% 30.1% Upgrade of LMGs 1,051 in Macau GGR Contribution - Traditio
Slide 19: Financial Summary – KPIs for the Casinos Under Management
03 FINANCIAL SUMMARY – KPIs for the 2 casinos under management Paradise Entertainment Casino KAM PEK PARADISE Casino Waldo FY2019 FY2019 HK$ HK$ Total GGR for the year 1,270 million 547 million GGR per unit per day : Traditional Tables GGR per table/day 48,100 43,400 LMG Tables GGR per table/day 146
Slide 20: Part Four: Growth Opportunity
PART FOUR Growth Opportunity 20
Slide 21: Slot Machine Market
04 SLOT MACHINE MARKET • Slot market much larger and more competitive than ETG market in Americas and Slot games have a limited life (3-18 months), need constant game updates to attract foot traffic and retain floor space • Slot games have a shorter replacement cycles than ETG and we will continuous
Slide 22: LMG Growth Continues
04 LMG GROWTH CONTINUES DICJ published new DETG technical From 1 July 2018, new application of standards in December 2017 with Demand for LMG machines continues DETG must fully comply with new the effective date of 1 January 2018 in Macau and overseas markets standards Dec 2017 Jul 2018 Jun 2018 Dec
Slide 23: LMG Growth Continues
04 LMG GROWTH CONTINUES GGR in Macau Mass as a % of Macau (MOP’m) Mass GGR as a percentage of Macau total GGR total GGR 400,000 60.0% 53.8% 45.2% 50.0% 46.7% 44.6% 43.3% 300,000 39.5% 360,749 40.0% 304,139 351,521 33.9% 200,000 265,743 302,846 30.0% 30.7% 230,840 223,210 292,455 20.0% 238,524 100,00
Slide 24: New Products Pipeline - Electronic Gaming Machines, Equipment & Systems
04 NEW PRODUCTS PIPELINE - Electronic gaming machines, equipment & systems Our new products are in the pipeline of being launched to markets in near term 24
Slide 25: New Products Pipeline – 5G, AI and Other High-Tech Products
04 NEW PRODUCTS PIPELINE – 5G, AI and other high-tech products High- tech smart wear wrist band products for sports lover and 5G CPE (Customer Premise Equipment) enables strong 5G signal for customers education Electronic photo frame (smart home product) improves living Other high-tech 5G wireless t
Slide 26: Part Five: Our Key Differentiators
PART FIVE Our Key Differentiators 26
Slide 27: Our Key Differentiators
05 OUR KEY DIFFERENTIATORS Paradise Entertainment Inventor, Patent Owner & Global Footprint Fully Tested and Approved Professional Gaming Sole Supplier by Regulators Technological Support Leveraging International Independent third-party labs Provide gaming technological Monopolises the entire LMG pa
Slide 28: Part Six: Photo Gallery
Photo Gallery / Crawtatt®)) of 82 15 ng i a, 28
Slide 29: Latest Slot Cabinets
Latest Slot Cabinets 29
Slide 30: Latest Slot Games
Latest Slot Games 30
Slide 31: Latest Slot Machines
Latest Slot Machines 31
Slide 32: Horse Racing Machines
Horse Racing Machines 32
Slide 33: Innovative ETG
Innovative ETG 33
Slide 34: Automatic Chips & Cash Exchange
Automatic Chips & Cash Exchange 34
Slide 35: LMG Machines in Casino Kam Pek Paradise
LMG Machines in Casino Kam Pek Paradise 35
Slide 36: Contact Information
CONTACT INFORMATION To follow us on WeChat, Hong Kong Office Unit C, 19F, Entertainment Building, 30 Queen’s Road Central, Hong Kong SAR Corporate Strategy & Investor Relations Tel: (852 ) 2620 5303 Bob Shen, Investor Relations Manager bobshen@hk1180.com Macau Office (852)2916 0818 | (852)9168 6118
Slide 37: Disclaimer
Disclaimer This document has been prepared by Paradise Entertainment Limited (abbreviated as “Paradise” or the “Company”) for the sole purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any bas
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