Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — FY2022 Earnings Presentation
34 slides from Aristocrat Leisure's earnings presentation, Nov 16, 2022
Slide 1: FY22 Financial Results
For personal use only FY22 Financial Results Investor Presentation Aristocrat Leisure Limited 16 November 2022
Slide 2: FY22 Results Highlights
FY22 Results Highlights For personal use only Group Revenue EBITDA margin Strategy +17.7% +0.6 pts Investing behind strong Continued strong growth Resilient Pixel United margins businesses, diversification from Aristocrat Gaming Revenue leverage and mix in & resilience Aristocrat Gaming NPATA Net ca
Slide 3: Strategy Overview
For personal use only Strategy Overview Bringing joy to life through the power of play
Slide 4: Our Strategy is Delivering
Our Strategy is Delivering For personal use only Diversified model drives strong and resilient growth • Benefits of diversification evident in strong Group growth, notwithstanding slower mobile gaming market Aristocrat Gaming FY22 Revenue • Successfully executing our growth strategy leading to marke
Slide 5: Ukraine and Russia Response
Ukraine and Russia Response For personal use only Protecting our people and business while managing risks and minimising operational impacts • Effective continuity plan o Managed the disruption and continued to deliver content, Live Ops and features across the portfolio o No material earnings impact
Slide 6: Sustainability Strategy & Progress
Sustainability Strategy & Progress Ensuring a vibrant business and sustainable industries for all our stakeholders, long-term For personal use only Business Operations Product Responsibility People & Community Align with ASX 20 peers on Be a global leader in Be recognised as an climate, lead in Gove
Slide 7: Group Results & Financial Summary
For personal use only Group Results & Financial Summary Bringing joy to life through the power of play
Slide 8: Group Results Summary
Group Results Summary Investment, execution and diversification drive strong growth in revenue and earnings For personal use only A$ million 2022 2021 Change % Normalised results • Revenue up 12% in constant currency; reported revenue up 18% Operating revenue 5,573.7 4,736.6 5 17.7 EBITDA 1,850.9 1,
Slide 9: Profit Reconciliation
Profit Reconciliation Outstanding Aristocrat Gaming result supported by a resilient portfolio performance from Pixel United For personal use only NPATA BRIDGE (A$m) 1 NPATA FY21 864.7 Americas 230.5 ANZ 4.0 International Class III 36.9 Pixel United 2.7 Corporate Costs & Other (6.5) Group D&D Expense
Slide 10: Cash Flow
Cash Flow Strong cash generation and conversion; Operating cash flow >$1.2 billion For personal use only Operating Cash Flow A$ million 2022 2021 Change % EBITDA 1,850.9 1,542.9 20.0 • Lower operating cash flow reflects increased working capital Change in net working capital (169.3) 148.0 n/a and ta
Slide 11: Capital Allocation Framework, Balance Sheet and Liquidity
Capital Allocation Framework, Balance Sheet and Liquidity Capital allocation framework supports Aristocrat’s long-term growth strategy and maximises shareholder returns For personal use only Investment drives • Excellent liquidity and balance sheet strength maintained to fund growth ambitions future
Slide 12: Operational Performance
For personal use only Operational Performance Bringing joy to life through the power of play
Slide 13: Aristocrat Gaming
Aristocrat Gaming Strong growth driven by market-leading products and exceptional performance in North America For personal use only Summary Profit or Loss 2022 2021 Change % Total Gaming • Strong revenue growth across Americas and ANZ led by increasing product portfolio depth and strength Revenue A
Slide 14: Aristocrat Gaming - Resilience Through Cycles
Aristocrat Gaming - Resilience Through Cycles US gaming has been relatively stable through recessions, with support from Regional and Tribal markets For personal use only US casino gaming revenues1 - $US September 11 Global Financial Crisis COVID-19 00.0 100% $93bn 90.0 • US gaming revenues contract
Slide 15: Pixel United
Pixel United For personal use only Resilience and strategic focus delivered continued market share gains in a challenging macro environment Summary Profit or Loss 2022 2021 Change % Total Pixel United • While Ukraine/Russia conflict and the softer mobile games Bookings US$m 1,826.1 1,844.4 6 (1.0) m
Slide 16: Pixel United – Consistent Outperformance
Pixel United – Consistent Outperformance For personal use only Strong track record of above-market profitable growth through portfolio diversity and investible game titles Mobile Games Market ($bn)1 Pixel United Revenue ($bn)2 +15% YoY -% YoY +16% YoY (5%) YoY +24% YoY +29% YoY 85.8 1.8 1.8 81.7 +16
Slide 17: Introducing Anaxi
Introducing Anaxi For personal use only Accelerate Successful Market "Build & Buy" Brand Launch Entry on track Strategy Announcement of agreement to acquire Launched the Anaxi brand encompassing Regulatory approvals received for first Roxor Gaming, a leading B2B online RMG Aristocrat’s online RMG an
Slide 18: Outlook
For personal use only Outlook Bringing joy to life through the power of play
Slide 19: Outlook
Outlook For personal use only Aristocrat expects to deliver NPATA growth over the full year to 30 September 2023, assuming no material change in economic and industry conditions, reflecting: • Continued strong revenue and profit growth from Aristocrat Gaming, underpinned by market-leading positions
Slide 20: Q&A
For personal use only Q&A Bringing joy to life through the power of play
Slide 21: Appendices
For personal use only Appendices Bringing joy to life through the power of play
Slide 22: Aristocrat's Growth Strategy
Aristocrat’s Growth Strategy For personal use only Proven strategy driving sustainable growth and business resilience PORTFOLIO GROWTH +PERFORMANCE TAKE SHARE WHEREVER STRONG PRODUCT WE PLAY ACCELERATION INVESTMENT OPTIONS BEST PEOPLE INNOVATION LEADERSHIP + CAPABILITY INVESTMENT OPERATIONAL EXCELLE
Slide 23: Design & Development (D&D) Investment
Design & Development (D&D) Investment For personal use only Aristocrat’s #1 investment priority; Double-digit levels of investment maintained, supporting profitable growth D&D 11.4% 12.0% 11.1% 12.0% as a % of revenue A$667m A$500m A$498m A$528m 274 D&D 163 183 195 SPEND 337 315 333 393 (A$m) FY19 F
Slide 24: Recognition of our High-Performing Portfolio & Games
Recognition of our High-Performing Portfolio & Games Most powerful, industry-leading portfolio of high profile and well recognised titles For personal use only October 2022 Game Global Gaming Awards 2022 Q3 2022 Slot Managers Survey 2021 Slot Awards Performance Database Awarded Land-Based Industry S
Slide 25: Aristocrat Gaming - Overview
Aristocrat Gaming - Overview Strong exposure to the US consumer; Leader in North American Gaming Operations, ANZ & North America Outright For personal use only Sales; Strong diversified game portfolio and technology partner A$3.0bn 31% A$1.5bn 39% 51.9% 2.8 pts FY22 Revenue FY22 Segment Profit FY22
Slide 26: Aristocrat Gaming – Detailed Results
Aristocrat Gaming – Detailed Results Growth in Americas, ANZ and adjacent segments; D&D investment drives long-term game performance and market- For personal use only leading products 1 Total Gaming Americas ANZ International Class III Summary Profit or Loss 2022 2021 2022 2021 2022 2021 2022 2021 C
Slide 27: Pixel United - Overview
Pixel United - Overview Top 5 global games publisher with strong & diversified portfolio; Exposed to attractive segments, profitable growth from For personal use only continued portfolio diversification, targeted investment in Live Ops, features & content and User Acquisition US$1.8bn 0.6% US$605m 0
Slide 28: Pixel United - Portfolio Diversity
Pixel United - Portfolio Diversity Diversified portfolio across genres, geographies and demographics For personal use only BOOKINGS BY GAME 1 BOOKINGS BY SEGMENT $1.6bn $1.8bn $1.8bn 6% 9% 15% 3% FY21 FY22 8% 6% 3% 10% 13% 16% Other Games 34% 35% BF premium business Mech Arena: Robot ShowdownTM 23%
Slide 29: Pixel United - Game Portfolio
Pixel United - Game Portfolio Diversified portfolio across new, scaling and franchise titles; Exposure to high yielding mid-core genre; New genres For personal use only with owned IP and Social Casino slot content leveraged from world-class design studios across Aristocrat Social Casino RPG, Strateg
Slide 30: Pixel United - Mobile Gaming Market
Pixel United - Mobile Gaming Market Large Total Addressable Market (TAM) of ~US$80 billion globally1; Estimated to grow at ~4% according to industry data2 For personal use only Mobile Gaming genres - $US $28.6bn $81.7bn (18%) YoY (3%) YoY $4.5bn $13.8bn (8%) YoY $13.1bn (1%) YoY $16.3bn (3%) YoY $5.
Slide 31: Online RMG – Perspectives and Opportunities
Online RMG – Perspectives and Opportunities Strategy to scale in a growing and attractive adjacency; initially targeting a significant share of the North America iGaming market For personal use only The Our Opportunity Ambition Online RMG comprises iGaming, iLottery and Targeting a significant share
Slide 32: Glossary of Terms
Glossary of Terms Gaming Mobile Gaming For personal use only Americas North America (US and Canada) and Latin America Average bookings per Daily Active User. Total bookings in each period, divided ABPDAU by the number of days in that period, divided by the DAU during the period ANZ Australia and New
Slide 33: Glossary of Terms
Glossary of Terms Financial Other For personal use only Capex Capital expenditure Anaxi Name of Aristocrat’s online RMG business D&D Design & Development investment Business-to-Business. That is, business activities carried out between two or B2B more companies without consumer contact EBITDA Earnin
Slide 34: Disclaimer
Disclaimer For personal use only This document and any oral presentation any accompanying presentation and any Other affairs. No representations or warranties are made as accompanying it has been prepared in good faith, Materials must not be taken as a representation as to to the accuracy or reasona