Rank Group Plc · LSE:RNK
Rank — The Rank Group — Investor Presentation (May 2002)
13 slides from Rank's investor presentation, May 16, 2002
Slide 1: Deregulation Presentation
THE RANK GROUP Deregulation Presentation by David Boden Managing Director, Rank Group Gaming Division 16 May 2002
Slide 2: History
History • 1968 - Gaming Act • 1978 - Rothschild review • April 2000 - Budd committee • March 2001 - Budd publication • October 2001 - Consultation period ended • March 2002 - White Paper Gaming act 34 years old, served its purpose Permitted areas enacted 1971 reduced casinos from over 1000 to 120 ov
Slide 3: Recommendations - Overall
Recommendations - Overall • Gambling commission • Tiered licensing • Local Authority licensing • Four categories of gaming machines • 24 hour rule / membership • Credit cards Major proposal for the gambling industry was the formation of a single regulator to cover all aspects of gaming and betting e
Slide 4: Recommendations - Casinos
Recommendations - Casinos • Permitted areas • Demand criteria • Slot machines • Advertising • Alcohol on gaming floor / live music Proposed that the concept of permitted areas was outdated and eventually these should be abolished. This however, will follow the formation of the gambling commission wh
Slide 5: Recommendations - Bingo
Recommendations - Bingo • Unlimited stakes and prizes • Frequency of multiple game • Rollovers • Jackpot machines Current constraints in Bingo stakes and prizes should be removed with a prize ceiling be potentially unlimited (including multiple game) The current restriction of only 3 multiple games
Slide 6: Timing
Timing • Consultation committee - November 2002 • Draft Bill content - March 2003 • Bill to parliament - November 2003 • Queen’s speech - November 2003 • Enactment - ? A working party between the DCMS and a representative from each part of the industry will meet monthly between now and November 2002
Slide 7: Rank Gaming Division
Rank Gaming Division • Mecca Bingo - market leading position – 124 UK clubs – 7 in Spain • Grosvenor Casinos - market leading position – 34 UK licenses • RLMS – 36,000 machines • Rank.com – launched November 2001 – casino site due July 2002 Self explanatory.
Slide 8: The story so far
The story so far • Estate enhancement – relocations / acquisitions / new licences • Product development – Auto Roulette / multiple Game / paperless Bingo • Hard Rock branding initiatives • Extended opening hours • Substantial growth in profit and ROCE Across the Mecca and Grosvenor estate over a sus
Slide 9: The next 2-3 years
The next 2-3 years • More of the same ... • Short term deregulation benefits • Membership development • Duty changes The recent strategy has delivered substantially increased results and this strategy will be continued. The introduction of some deregulation benefits over the next 12 months will take
Slide 10: The Future
The Future • Machines • Branding • Advertising • Estate development • Portfolio expansion The big single win from the new legislation will be the introduction of casino style slots with unlimited stakes and prizes. These machines will only be available in premises with the appropriate casino license
Slide 11: Our competitive advantages
Our competitive advantages • Market leading position • Quality and track record of management • Relationship with the Gaming Board • Quality and breadth of property portfolio • Rank Group financial position Rank’s current operations both in terms of geography and quality of offer provides a very str
Slide 12: Summary
Summary • Biggest ever change in UK Gambling • Growth dynamic already exists • Further development underway • Excellent long term growth prospects Rank welcomes the most significant changes in over 30 years to the UK gambling industry and is well positioned for the challenges ahead. Recent results h
Slide 13: Gaming Division Financial Summary
Gaming Division Financial Summary 1998 1999 2000 2001 Grosvenor Casinos No of Clubs London 4 4 5 5 Provinces 26 27 27 27 Belgium 2 2 2 2 Total 32 33 34 34 Turnover London 50.5 53.3 85.2 70.8 Provinces 51.7 56.5 61.7 69.8 Belgium 12.2 12.7 10.7 9.5 Total 114.4 122.5 157.6 150.1 Club Operating Profit