Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — Shareholder Meeting (May 2006)
29 slides from Aristocrat Leisure's shareholder meeting presentation, May 2, 2006
Slide 1: Welcome to the 2006 Annual General Meeting
Aristocrat Leisure Limited Welcomes you to the 2006 Annual General Meeting
Slide 2: David Simpson, Chairman
David Simpson Chairman
Slide 3: Paul Oneile, Chief Executive Officer and Managing Director
Paul Oneile Chief Executive Officer and Managing Director
Slide 4: Summary of Results
Summary of Results Total Revenue $1,317 million — up 15.3% Profit After Tax $244.3 million — up $102.1 million Strong international growth — 75.1% of segment profit Operating cash flow $393.2 million — up $143.2 million Total dividend — 30 cps vs prior 8 cps Ongoing proactive capital management $300
Slide 5: Australia
Australia Variance % Segment Revenue . - (4.5)% Segment Contribution Profit . . +10.4% Segment Margin Operating environment remains difficult Profit and margin improvement Unit sales down 19.5%, conversions up 13.5% reflecting business strategy Margin improvement reflects improved product mix and co
Slide 6: North America
North America Variance % Segment Revenue . - +35.5% Segment Contribution Profit . . +78.2% Segment Margin Standout performance Margin improvement reflects improved pricing, revenue mix and leverage of fixed costs Unit sales increased 43.1% to 17,613 Recurring revenue units increased to 6,159 (up 16.
Slide 7: Japan Segment Results
Segment Revenue Segment Contribution Profit Segment Margin Lower inventory provisioning offset by higher trade-ins impacted margin 98,000 games sold Success of Streetfighter 2™ and Kyojin-no-hoshi 3™ Opened Osaka office and expanded Tokyo office
Slide 8: Other Markets
Other Markets Segment Revenue Segment Contribution Profit Segment Margin Revenue growth in Asia-Pacific, New Zealand and South Africa Strong market shares in new markets Macau remains standout performer in Asia-Pacific New Zealand growth despite impact of new legislation and regulations South Africa
Slide 9: Business Objectives
Business Objectives * Continue to improve returns in Australia and NZ * Grow North American business * Successfully transition to Regulation 5 in Japan * Expand recurring revenue base * Obtain significant market share in all emerging markets * Enhance R&D resourcing * Maintain focus on business and
Slide 10: Growth Framework
Growth Framework Global gaming market growth potential Leverage core competencies Focus on organic opportunities Lower risk model Targeted M&A principles + Remains substantial + Estimated 5-15% pa compound growth over next 5 years + Significant opportunities in 2007 and beyond + Focus on video slots
Slide 11: Outlook
Outlook First Half * Broadly in line with 2005 * $30 million profit decline in Japan * 20 - 25% growth in non-Japanese business Full Year - Continued share and profit growth Major influences on outcome « Australian replacement cycle « North America — new market openings « Japanese Regulation 5 appro
Slide 12: Simon Kelly, Chief Financial Officer
Simon Kelly Chief Financial Officer
Slide 13: Income Statement
Income Statement 2005 2004 Variance $m $m % Total Revenue 1,317.0 1,142.3 15.3% Gross Profit 679.9 554.4 22.6% GP% 51.6% 48.5% 3.1 Points Expenses 336.7 338.4 -0.5% EBIT 358.4 230.0 55.8% Profit Before Tax 363.9 225.5 61.4% Income Tax Expense 119.6 83.3 43.6% Effective Rate 32.9% 36.9% 4.0 Points Pr
Slide 14: Segment Contribution Profit Split
Segment Contribution Profit* Split 2004 Segment Contribution Profit by region $319.9 million North America 32% 2005 Segment Contribution Profit by region $428.7 million North America 43%
Slide 15: Working Capital
Working Capital a 3 c oa > a a = - al Me ° oa Do £ < a ° < a a 2002 2003 2004
Slide 16: Operating Cash Flow
Operating Cash Flow 2001 2002 2003 2004 2005 mmm Operating Cash Flow == Operating Cash Flow % Revenue Percentage of LTM Revenue
Slide 17: Capital Management
Capital Management * USD Convertible Bonds called for redemption « Increased dividend to 30 cps and restored franking * Positive franking outlook * 21 cps capital return * On-market buyback program * Acquiring shares to satisfy employee contingent obligations
Slide 18: Key Financials and Ratios
Key Financials and Ratios EBITDA EBIT Working Capital/Revenue (%) Operating Cash Flow Operating Cash Flow/Revenue (%) Net Cash Debt(EBITDA EBITDA/Interest Expense Return on Equity Fully Diluted EPS (cents)
Slide 19: Summary
Summary * Strong Operating Performance * Further strengthening of financial position * Benefits of: * Top line growth * Leveraging of fixed cost structures * Minimal capital investment demands * Sustainable strategy
Slide 20: Resolutions
Resolutions
Slide 21: Resolution: Financial Statements
Resolution 1 Financial Statements
Slide 22: Resolution: Election of Director Mr WM Baker
Resolution 2 Election of Director: Mr WM Baker
Slide 23: Resolution: Election of Director Ms SAM Pitkin
Resolution 3 Election of Director: Ms SAM Pitkin
Slide 24: Resolution: Election of Director Mr RA Davis
Resolution 4 Election of Director: Mr RA Davis
Slide 25: Resolution: Participation in 2006 Long Term Performance Share Plan
Resolution 5 Participation by Mr PN Oneile in the 2006 Long Term Performance Share Plan
Slide 26: Resolution: Adoption of Remuneration Report
Resolution 6 Adoption of Remuneration Report
Slide 27: Resolution: Amendment of Constitution
Resolution 7 Amendment of Constitution
Slide 28: General Business
General Business
Slide 29: Thank You
Thank You