Skycity Entertainment Group Limited · NZX:SKC
Skycity Entertainment — Macquarie Investment Conference 2019
23 slides from Skycity Entertainment's conference presentation, May 1, 2019
Slide 1: Cover letter: Macquarie Investment Conference presentation including trading update
1 May 2019 For personal use only Client Market Services NZX Limited Level 1, NZX Centre 11 Cable Street WELLINGTON Copy to: ASX Market Announcements Australian Stock Exchange Exchange Centre Level 6 20 Bridge Street Sydney NSW 2000 AUSTRALIA RE: SKYCITY ENTERTAINMENT GROUP LIMITED (SKC) MACQUARIE IN
Slide 2: SKYCITY Entertainment Group Limited Investor Presentation
SKYCITY Entertainment SKYCITY Group Limited Macquarie Investment Conference Entertainment Sydney For personal use only Group Limited Investor Presentation 1 May 2019
Slide 3: SKYCITY Overview
SKYCITY Overview For personal use only ◼ Owner and operator of gaming, entertainment and hospitality facilities in New Zealand and Australia ◼ Long-term exclusive casino licences ◼ Two major projects – NZICC/Horizon Hotel and Adelaide expansion ◼ Listed on NZX and ASX with current market capitalisat
Slide 4: Our Business
Our Business Location Licences Activities Summary For personal use only Auckland, New Zealand Exclusive casino licence to 2048* 1,877 EGMs, 150 tables, 240 ATGs ~630 hotel rooms ~20 restaurants and bars ~3,000 employees Hamilton, New Zealand Exclusive casino licence to 2027* 339 EGMs, 23 tables ~400
Slide 5: Our Locations
Our Locations Exclusive casino licence to 2048* For personal use only Exclusive casino licence to 2027* Exclusive casino licence to 2035 (for entire state Exclusive casino licences to of SA) – full licence term to 2085 2024* (Wharf) and 2025* (Queenstown) Long-term exclusive casino licences secured
Slide 6: Industry Trends
Industry Trends 1 Traditional land-based casinos typically exhibiting modest growth (outside of Asia) For personal use only 2 Requirement to continually diversify offering to compete and capture broader customer base 3 Capital investment required to sustain/grow business – need to consider alternati
Slide 7: Group Strategic Plan
Group Strategic Plan For personal use only 6
Slide 8: Creating Long-Term Value
Creating Long-Term Value For personal use only 7
Slide 9: Corporate Social Responsibility Priorities
Corporate Social Responsibility Priorities For personal use only 8
Slide 10: Financial Performance
Financial Performance For personal use only Group Revenue and EBITDA: FY13–FY18 ($m) Group EPS and DPS: FY13–FY18 (cps) 1,200 30 1,000 25 800 20 600 15 400 10 200 5 0 0 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Normalised Revenue* Reported Revenue* Normalised EPS Reported EPS DPS N
Slide 11: Key Value Drivers
Key Value Drivers FY18 group revenue by business activity (%): FY18 group EBITDA by property (%): For personal use only Group reported revenue1 = $1,097m Group reported EBITDA2 = $339m IB (9%) F&B / Other (16%) Darwin (7%) Hotels (5%) EGMs (38%) Adelaide (7%) Keno (1%) Queenstown (1%) Hamilton (7%)
Slide 12: Capital Allocation Framework
Capital Allocation Framework ◼ Committed to maintaining BBB- credit rating and current dividend policy (20cps or 80% of normalised only NPAT) Overview ◼ Priorities for allocation of capital (in order) − stay-in-business capex, growth investments, debt repayments, dividends, capital returns personal
Slide 13: Optimise Our Existing Portfolio
Optimise Our Existing Portfolio ◼ Sale of Federal St car park ($40m) now settled For personal use only ◼ Binding agreement to sell long-term concession over car parks in Auckland to Macquarie Principal Finance for $220m • Care Park appointed by Macquarie to operate car parks • Transaction value enha
Slide 14: Optimise Our Existing Portfolio (cont.)
Optimise Our Existing Portfolio (cont.) ◼ Ongoing concept development and feasibility analysis for Auckland master planning For personal use only • Opportunities for further accommodation, F&B, new gaming spaces and entertainment • Intend to introduce development partners to unlock value in precinct
Slide 15: NZICC and Horizon Hotel Project
NZICC and Horizon Hotel Project ◼ Significant investment in future of Auckland − NZICC, For personal use only 300 room/5 star hotel, additional car parks and F&B/ retail ◼ Investment to support growth in tourism expenditure from international/domestic visitors ◼ ~30-year casino licence extension (to
Slide 16: Adelaide Expansion
Adelaide Expansion ◼ Plan to transform the Adelaide Casino For personal use only ◼ Riverbank precinct to be centre of entertainment in Adelaide ◼ Significant opportunity to grow market share and turn around underperforming casino ◼ Project on-time and on-budget ◼ Total project costs remain at A$330m
Slide 17: Adelaide Riverbank Precinct
Adelaide Riverbank Precinct For personal use only Existing heritage Adelaide Casino building expansion Adelaide Convention Centre Upgraded Adelaide Festival Centre Parliament House New 20-storey office tower ~1,500 space car park below ground Adelaide Oval, via Festival Plaza bridge across the Torre
Slide 18: Other Growth Opportunities
Other Growth Opportunities ◼ Progressing strategy to grow hotel business For personal use only • Medium-term focus on existing casino precincts (i.e. Auckland, Hamilton, Queenstown) • Remain keen to introduce investment partner for existing and new hotels ◼ Online casino strategy well progressed • L
Slide 19: FY19 YTD Trading Update
FY19 YTD Trading Update Group ◼ As previously indicated, domestic and international economic environment becoming more challenging including For personal use only increased cost pressure ◼ YTD to 28 April 2019: • Group normalised revenue up 4% vs. pcp (up 6% excluding Darwin) • Domestic revenue (ex
Slide 20: FY19 Outlook
FY19 Outlook ◼ Given 2H19 YTD trading and earlier settlement of Darwin sale, now expect group normalised EBITDA to be flat For personal use only for FY19 vs. pcp ◼ Excluding Darwin for all of FY18 and FY19, expect FY19 group normalised EBITDA to be up around 2% vs. pcp ◼ Group normalised NPAT for FY
Slide 21: Key Investment Themes
Key Investment Themes 1 Significant opportunity to unlock value by leveraging strong platform (exclusive long-term licences) For personal use only 2 High quality of earnings – low downside risk with positive medium-term earnings outlook 3 On-going focus on effective capital allocation and improving
Slide 22: Disclaimer
Disclaimer ◼ All information included in this presentation is provided as at May 2019 For personal use only ◼ This presentation includes a number of forward-looking statements. Forward-looking statements, by their nature, involve inherent risks and uncertainties. Many of those risks and uncertaintie
Slide 23: SKYCITY Entertainment Group Limited
SKYCITY Entertainment For personal use only Group Limited
SKYCITY Entertainment Group — Macquarie Investment Conference 2019 on 6ix