Star Entertainment Group Limited · ASX:SGR
Star Entertainment — Macquarie Australia Conference 2021
18 slides from Star Entertainment's conference presentation, May 6, 2021
Slide 1: ASX Announcement: 2H FY2021 Trading Update
ASX Announcement 6 May 2021 2H FY2021 TRADING UPDATE The Star Entertainment Group Limited (ASX code: SGR) (The Star) is providing a trading update for the period from 1 January 2021 to 3 May 2021 in conjunction with the release of a presentation at the Macquarie Australia Conference. Performance con
Slide 2: Macquarie Conference Presentation
THE STAR ENTERTAINMENT GROUP MACQUARIE CONFERENCE PRESENTATION THURSDAY 6 MAY 2021
Slide 3: Basis of Preparation and Non-IFRS Information
THE STAR ENTERTAINMENT GROUP THE STAR ENTERTAINMENT GROUP LIMITED (ASX: SGR) BASIS OF PREPARATION AND NON-IFRS INFORMATION ♦ Information in this presentation is provided as at the date of the presentation unless specified otherwise. It should be read in conjunction with The Star Entertainment Group
Slide 4: Executive Summary Overview
EXECUTIVE SUMMARY OVERVIEW ♦ Attractive asset portfolio - recently upgraded and expanded 1 ASSET PORTFOLIO ♦ Large property portfolio - freehold or long-term leases ♦ Long-dated licences – expiries 2093 and beyond DOMESTIC FOCUS, VOLUMES ♦ Proven track record of domestic earnings growth (5-year CAGR
Slide 5: Attractive Asset Portfolio
ASSET PORTFOLIO ATTRACTIVE ASSET PORTFOLIO 3 properties 1,389 4,783 Unlimited TODAY Sydney, GC, Brisbane Premium Hotel Keys Slots cap Tables and MTGMs ♦ Sydney and Gold Coast properties recently upgraded and expanded ♦ Large property portfolio – freehold or long term leases ♦ Further growth opportun
Slide 6: Domestic Focus: Long-Term Earnings Growth Pre-COVID
DOMESTIC FOCUS LONG-TERM EARNINGS GROWTH PRE-COVID HISTORICAL EARNINGS ♦ 88% of historical earnings are domestic GROUP EBITDA ($M) MIX (based on FY2019 normalised EBITDA as FY20/21 impacted by COVID) 600 83 102 66 77 40 41 468 460 466 491 417 354 0 FY14 FY15 FY16 FY17 FY18 FY19 Domestic Internationa
Slide 7: Domestic Focus - 2H FY2021 Trading to May 2021
DOMESTIC FOCUS - 2H FY2021 TRADING TO 3 MAY 2021 IMPROVING REVENUE TRENDS AS RESTRICTIONS EASE ♦ EGM revenue returned to growth on pre-COVID levels during 2H FY2021 1 POSITIVE REVENUE TRENDS ♦ Table games revenue is still tracking below pre-COVID levels but improving QUEENSLAND STRONG ♦ For the peri
Slide 8: Sydney Operating Conditions
DOMESTIC FOCUS – 2H FY2021 TRADING SYDNEY OPERATING CONDITIONS 03-Jan-2021 12-Feb-2021 17-Mar-2021 ♦ Masks mandatory in ♦ Capacity ♦ Removal of 01-Jul-2020 gaming areas increased to no-standing ♦ Capacity increased to 5,000 10,000 patrons rule 23-Mar-2020 patrons (1 person per 4m2 rule) (1 person pe
Slide 9: Queensland Operating Conditions
DOMESTIC FOCUS – 2H FY2021 TRADING QUEENSLAND OPERATING CONDITIONS 17-Nov-2020 11-Jan-2021 22-Jan-2021 29-Mar-2021 ♦ Capacity increased to ~5,000 ♦ Treasury Brisbane re-opened to ~2,500 ♦ Revert to 1 ♦ Treasury Brisbane patrons (1 person per 2m2 patrons (1 person per 4m2 rule) person per 2m2 closed
Slide 10: Strong Cost Management
COST CONTROL STRONG COST MANAGEMENT COST FOCUS IN RESPONSE TO ♦ 1H FY2021 operating expenses down 40% (down 30% ex JobKeeper) 1 COVID ♦ Variable costs aligned with lower volumes, fixed costs reduced ♦ Operating expenses included higher temporary COVID-related costs (cleaning, security, hygiene marsh
Slide 11: Balance Sheet Position Improving
BALANCE SHEET POSITION IMPROVING BALANCE SHEET ♦ Net debt continues to reduce given strong cashflow generation POSITION CONTINUES TO ♦ VIP asset sales completed IMPROVE ♦ Continue to progress the sale of The Star Sydney Car Park concession and a process is underway to advance a partnership option on
Slide 12: Capital Projects on Track: Gold Coast
CAPITAL PROJECTS ON TRACK GOLD COAST TOWER 1 NEARING COMPLETION, TOWER 2 PROGRESSING TO PLAN ♦ Construction of the Dorsett Hotel and The Star Residences (JV Tower 1) • Remains on time and budget for completion in FY2022 • Equity contributions have been completed and $260m in project level debt facil
Slide 13: Capital Projects on Track: Queen's Wharf Brisbane
CAPITAL PROJECTS ON TRACK QUEEN’S WHARF BRISBANE WORKS ON TIME AND BUDGET FOR FY2023 OPENING ♦ Construction of the shell, core and façade are underway ♦ ~90% of project costs are now under lump sum terms ♦ Equity contributions will cease in 2H FY2021, project debt drawdowns have commenced ♦ A $1.6bn
Slide 14: Well-Positioned for Competition
WELL-POSITIONED FOR COMPETITION ADDRESS CROWN SYDNEY COMPETITION READY 1 Table and Regulatory and customer advantage EGM ♦ Table/Slots overlap – individuals, small groups Gaming ♦ Casino EGM exclusivity 2 PGRs Unmatched size and range ♦ New Chairman’s and Sovereign Rooms ♦ Oasis, Oasis Extension 3 C
Slide 15: Executive Summary Recap
EXECUTIVE SUMMARY RECAP ♦ Attractive asset portfolio - recently upgraded and expanded 1 ASSET PORTFOLIO ♦ Large property portfolio - freehold or long-term leases ♦ Long-dated licences – expiries 2093 and beyond DOMESTIC FOCUS, VOLUMES ♦ Proven track record of domestic earnings growth (5-year CAGR of
Slide 16: ESG: Key Sustainability Metrics
ESG KEY SUSTAINABILITY METRICS SUSTAINABILITY A GLOBAL SUSTAINABILITY LEADER AND ENVIRONMENTAL Casino and Gaming Category 2016 – 2020 Winner International Gaming >80% portfolio with environmental ‘Sustainable Business – ratings, 90% by 2022 Operator’ Award Aligning our reporting with the Green Star
Slide 17: Appendix: Glossary
APPENDIX GLOSSARY TERM DEFINITION CAGR Compound Annual Growth Rate Capital expenditure Unless otherwise stated, capital expenditure is presented on an accruals basis and excludes investments in (capex) associates and equity acquisitions D&A Depreciation and Amortisation Domestic Tables Domestic Tabl
Slide 18: The Star Entertainment Group
THE STAR ENTERTAINMENT GROUP
Star Entertainment Group — Macquarie Australia Conference 2021 on 6ix