Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — FY2019 Earnings Presentation
33 slides from Aristocrat Leisure's earnings presentation, Nov 20, 2019
Slide 1: Results Presentation: 12 months to 30 September 2019
Aristocrat Leisure Limited Investor Presentation 20 November 2019 For personal use only Results Presentation 12 months to 30 September 2019
Slide 2: Disclaimer
Disclaimer This document and any oral presentation accompanying it has been prepared in good faith, however, no express or implied representation or warranty is given as to the accuracy or completeness of the information in this document, in any accompanying presentation or in any other written or o
Slide 3: For personal use only
For personal use only 1 Strategic Context and Update 2 Group Results and Financial Summary 3 Land-based Operational Performance 4 Digital Operational Performance 5 Tax Update 6 Outlook and Results Summary 7 Q&A 8 Appendices
Slide 4: Our operating model supports long-term, sustainable profit growth and value creation
STRATEGIC CONTEXT AND UPDATE Our operating model supports long-term, sustainable profit growth and value creation For personal use only STRONG PRODUCT OPERATIONAL INVESTMENT (D+D, UA) EXCELLENCE STRONG PEOPLE + CAPABILITY INVESTMENT GROWTH SUSTAINABLE SHARE TAKING OPTIONALITY (CAPEX, PROFIT M+A) GRO
Slide 5: North America Land-based Investment
NORTH AMERICA LAND-BASED INVESTMENT Through investment into adjacencies, we are significantly increasing our addressable market For personal use only 2014 Late 2020 NA Outright Sale Market NA Gaming Operations Market NA Outright Sale Market NA Gaming Operations Market (~75k units p.a.) 1 (155k unit
Slide 6: Digital Strategic Context
DIGITAL STRATEGIC CONTEXT A focused strategy to drive portfolio growth by leveraging our scale and delivering great content, whilst maximising efficiencies For personal use only 1 Game Design 2 Evergreen Brands • World Class Game • Longevity of franchises, Design across core and providing strong adj
Slide 7: Group Results and Financial Summary
For personal use only Group Results and Financial Summary
Slide 8: Group Results Summary
GROUP RESULTS SUMMARY NPATA up 23% to $894m, driven by strong growth across the Land-based and Digital portfolios, enhanced by currency and taxation benefits For personal use only A$ million 2019 2018 Change % Normalised results Group Revenue up 23% to $4.4 billion Operating revenue 4,397.4 3,583.
Slide 9: Financial Performance
FINANCIAL PERFORMANCE Multiple sources of growth contributing to sustained operational performance while funding increased Design & Development (D&D) investment For personal use only 1 NPATA bridge (A$m) Note: 1 Movements above are reported on a constant currency basis and are tax effected at the pr
Slide 10: Balance Sheet and Debt Profile
BALANCE SHEET AND DEBT PROFILE Strong balance sheet supportive of Aristocrat’s growth strategy For personal use only Balance Sheet Statistics1 A$ million 30 Sep 2019 31 Mar 2019 30 Sep 2018 Total debt 2,792.7 2,933.8 2,881.1 Balance sheet continues to strengthen Net debt / (cash) 2,224.1 2,429.8 2
Slide 11: Cash Flow
CASH FLOW Operating cash flow of over $1 billion achieved net of increased interest and tax reflecting ongoing strong cash generating fundamentals For personal use only Operating Cash Flow A$ million 2019 2018 Change % EBITDA 1,596.8 1,328.6 20.2 Change in net working capital (186.0) 69.1 n/a Subtot
Slide 12: Land-based Operational Performance
For personal use only Land-based Operational Performance
Slide 13: Land-based Business at a Glance
LAND-BASED BUSINESS AT A GLANCE Serving more than 300 licensed jurisdictions with a diverse range of products and services including Electronic Gaming Machines and Casino Management Systems available in 80 countries For personal use only ~$2.6bn 37,863 48,218 >200,000 FY19 Outright Gaming Ops. NA EG
Slide 14: Americas
AMERICAS Record result with earnings up 15%; driven by continued strong performance in Class II and Class III Gaming Operations and market share gains in Outright Sales For personal use only Americas 2019 2018 2 Change % Summary Profit or Loss Revenue and profit growth Revenue US$m 1,363.1 1,193.8
Slide 15: Class III - ANZ & International
CLASS III - ANZ & INTERNATIONAL Leading market share levels maintained across key markets, driven by favourable commercial mix and the launch of our premium Helix XTM cabinet For personal use only ANZ 2019 1 2018 Change % Summary Profit or Loss Earnings up 2.9% Revenue A$m 455.2 454.5 0.2 Profit
Slide 16: Digital Operational Performance
For personal use only Digital Operational Performance
Slide 17: Digital at a Glance
DIGITAL AT A GLANCE For personal use only $1.23bn +6% ~7.5m 9 YoY Pro-forma FY19 Bookings Bookings Growth DAU Evergreen Titles $370m 41c $638m 4 FY19 Segment Profit ABPDAU Social Casino Games in Soft Bookings Launch 30% $328m 10 2,400+ FY19 Segment Margin User Acquisition Global Studios Employees 26
Slide 18: Aristocrat Digital Portfolio
ARISTOCRAT DIGITAL PORTFOLIO Our portfolio continues to diversify with the introduction of new games, whilst the established franchises continue to perform well through the introduction of new content and features For personal use only In Soft Launch < 1 Year 1 – 3 Years 3 - 5 Years 5+ Years Social
Slide 19: Active Portfolio Management Driving Sustainable Growth
ACTIVE PORTFOLIO MANAGEMENT DRIVING SUSTAINABLE GROWTH Portfolio continues to diversify across genres, geographies and demographics. Introduced new casual titles, whilst supporting established franchise titles For personal use only Bookings by segment Bookings by game >US$50m p.a.¹ $1.23bn $1.16bn N
Slide 20: Digital Summary
DIGITAL SUMMARY Revenue growth of 24% reflects a full period of acquisitions and represents 41% of group revenue. Improving quality of portfolio with increased share of Social Casual games in the mix while optimising the performance of established Evergreen franchises For personal use only Digital 2
Slide 21: Tax Update
For personal use only Tax Update
Slide 22: Tax Update
TAX UPDATE Consistent with the changes in the Group’s business profile, Aristocrat has implemented changes in its Group structure expected to result in reductions in foreign cash tax paid and book tax expense from FY20 onwards For personal use only A large and increasing majority of profit generat
Slide 23: Outlook and Results Summary
For personal use only Outlook and Results Summary
Slide 24: Outlook
OUTLOOK Aristocrat plans for continued growth in the 2020 fiscal year, driven by the following: For personal use only In Land-based Outright Sales, we anticipate further incremental gains in attractive North American adjacencies. We expect to maintain market-leading share positions across key for
Slide 25: FY2019 Results Summary
FY2019 RESULTS SUMMARY FY2019 NPATA growth of 23% driven by strong organic growth across both Land-based and Digital operations, full period benefit from Digital acquisitions, currency and taxations benefits For personal use only Strong top-line revenue growth (+15% constant currency; +23% reporte
Slide 26: For personal use only
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Slide 27: Appendices
For personal use only Appendices
Slide 28: Appendix: Environment, Social and Corporate Governance Disclosures
APPENDIX: ENVIRONMENT, SOCIAL AND CORPORATE GOVERNANCE DISCLOSURES For personal use only Aristocrat will publish updated and expanded ESG disclosures on its Group website (www.aristocrat.com) in late November 2019. New disclosures will cover the period from December 2018 to 30 September 2019, and wi
Slide 29: Appendix: Land-based North American Adjacencies
APPENDIX: LAND-BASED NORTH AMERICAN ADJACENCIES Strong market segmentation and investment leading to successful entry into a number of identified adjacent markets, growing our addressable market and share gain opportunities For personal use only Gaming Operations Outright Sales Class II Gaming Class
Slide 30: Appendix: Digital Market Segmentation by Genre
APPENDIX: DIGITAL MARKET SEGMENTATION BY GENRE Digital offers access to a fast growing and large addressable market, in excess of US$40 billion; providing significant growth opportunities For personal use only Social Casino Casual Strategy RPG Action Simulation US$4.8b 15% growth YoY US$8.3b 12% gro
Slide 31: Appendix: Segment Financials
APPENDIX: SEGMENT FINANCIALS Segment Financial Information (statutory) For personal use only Statutory P&L - Americas Statutory P&L - International Class III A$ million FY19 FY181 A$ million FY19 FY18 Revenue Revenue Revenue from external customers 1,948.0 1,579.9 Revenue from external customers 204
Slide 32: Appendix: Financial Reconciliations
APPENDIX: FINANCIAL RECONCILIATIONS Reconciliation of Statutory Financial Statements Revenue, EBITDA, NPATA, and NPAT to Review of Operations For personal use only Statutory Financial Significant items Review of Statements Contingent retention Acquisition Operations FY19 arrangements and Restructure
Slide 33: For personal use only
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