Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — FY2021 Earnings Presentation
35 slides from Aristocrat Leisure's earnings presentation, Nov 18, 2021
Slide 1: Full Year 2021 Results
Full Year 2021 Results For personal use only Investor Presentation Aristocrat Leisure Limited 18 November 2021
Slide 2: Agenda
Agenda For personal use only FY21 Strategic Overview Group Results and Financial Summary Operational Performance Results Summary and Outlook Q&A Appendices
Slide 3: Strategic Overview
Intro For personal use only Strategic Overview Bringing joy to life through the power of play
Slide 4: Accelerating our Growth Strategy
Accelerating our Growth Strategy Converting opportunity into momentum and accelerating long-term growth strategy through M&A For personal use only ▪ Successfully executing our growth strategy, delivering profitable growth Aristocrat Gaming FY21 Revenue ▪ Strong, above-industry growth across key segm
Slide 5: Proposed Acquisition of Playtech plc - Update
Proposed Acquisition of Playtech plc - Update Acquisition announced on 18 October; process is progressing well For personal use only Proposed acquisition of Playtech plc ▪ 680 pence per share all cash offer represents 58% premium to undisturbed share price (prior to firm offer announcement) ▪ Unanim
Slide 6: Aristocrat's Growth Strategy
Aristocrat’s Growth Strategy Proven strategy driving sustainable growth and business resilience For personal use only PORTFOLIO GROWTH +PERFORMANCE TAKE SHARE WHEREVER STRONG PRODUCT WE PLAY ACCELERATION INVESTMENT OPTIONS BEST PEOPLE INNOVATION LEADERSHIP + CAPABILITY INVESTMENT OPERATIONAL EXCELLE
Slide 7: Strategic Highlights
Strategic Highlights For personal use only People Wellbeing, engagement and 8.4 Great Place to Work First development Engagement Score – Maintaining above Technology certification in US, Australia & India initiatives Industry Benchmark Focus on forming strategic Customer long-term Gaming Service, Fl
Slide 8: Sustainability Strategy & Progress
Sustainability Strategy & Progress Ensuring a vibrant business and sustainable industries for all our stakeholders, long-term For personal use only Business Product People & Pillars Operations Responsibility Community Responsible Gameplay Talent Governance (incl. Ethical Design) Inclusion Material I
Slide 9: Enterprise Transformation
Enterprise Transformation Investing to accelerate growth, innovation, diversification and business resilience For personal use only Enterprise Transformation Program Major Focus Areas Building Capability Strategic Execution ESG Position the portfolio for future growth Integration Change Management I
Slide 10: FY21 Financial Highlights
FY21 Financial Highlights Revenue and profit growth with margin expansion across Pixel United and key Gaming segments after sustained market- For personal use only leading investments. Strong Operating Cash Flow added to Balance Sheet strength and ~A$2.7 billion liquidity 1 NPATA 2 EBITDA 2 EBITDA m
Slide 11: Group Financial Summary
Group For personal use only Financial Summary Bringing joy to life through the power of play
Slide 12: Group Results Summary
Group Results Summary Strong growth and high-quality result reflects continued investment in growth strategy and diversification, profitability For personal use only close to 2019 levels A$ million 1H21 2H21 2021 2020 Change % ▪ Revenue up 25% in constant currency; reported Normalised results revenu
Slide 13: Profit Reconciliation
Profit Reconciliation Strong recovery and performance in Americas & ANZ Gaming, Pixel United; Continued investment in growth strategy For personal use only NPATA BRIDGE (A$M) 1 NPATA FY20 476.6 Americas 415.5 ANZ 70.1 International Class III (33.7) Pixel United 120.3 Corporate Costs & Other (33.7) G
Slide 14: Cash Flow
Cash Flow Strong cash generation and conversion; Operating Cash Flow >$1.3 billion For personal use only Operating Cash Flow A$ million 2021 2020 Change % EBITDA 1,542.9 1,078.9 43.0 ▪ Favourable sales mix and additional payables at Change in net working capital 148.0 205.2 (27.9) year end assists w
Slide 15: Capital Investment Priorities, Balance Sheet and Liquidity
Capital Investment Priorities, Balance Sheet and Liquidity Aristocrat’s capital allocation priorities support our long-term growth strategy, while maximising shareholder returns For personal use only INVESTMENT PRIORITIES KEY METRICS 1 FY21 FY20 1 Organic Capital Investment D&D Investment A$528m A$4
Slide 16: Operational Performance
Group For personal use only Operational Performance Bringing joy to life through the power of play
Slide 17: Aristocrat Gaming
Aristocrat Gaming Strong recovery driven by market-leading products leading to impressive growth in Gaming Operations; Top Performing For personal use only games and hardware – the only scale business consistently exceeding house average Summary Profit or Loss 2021 2020 Change % ▪ Strong revenue gro
Slide 18: Pixel United (Aristocrat Digital)
Pixel United (Aristocrat Digital) Bookings growth of 14% and strong profit growth from continued investment in diversified portfolio and new For personal use only capabilities, Live Ops, features and new content drives increased engagement and monetisation Summary Profit or Loss 2021 2020 Change % ▪
Slide 19: Group Results Summary & Outlook
Group For personal use only Results Summary & Outlook Bringing joy to life through the power of play
Slide 20: FY21 Results Summary
FY21 Results Summary Aristocrat’s portfolio of scaled, world-class Gaming and mobile gaming assets continued to grow and diversify with For personal use only 14% revenue and 81% NPATA growth; Strong Cash Flow, Balance Sheet and liquidity to fund future growth Aristocrat Gaming • Strong recovery driv
Slide 21: Outlook
Outlook Continued growth over the full year to 30 September 2022, assuming no material change in economic and industry For personal use only conditions, excluding the impact of the proposed acquisition and funding of Playtech plc and reflecting the following factors: • Enhanced market-leading positi
Slide 22: Q&A
FY21 For personal use only Q&A Bringing joy to life through the power of play
Slide 23: Appendices
FY21 For personal use only Appendices Bringing joy to life through the power of play
Slide 24: Design & Development (D&D) Investment
Design & Development (D&D) Investment Aristocrat’s #1 investment priority; Double-digit levels of investment maintained, supporting profitable growth For personal use only D&D 11.4% 11.4% 12.0% 11.1%11.2% 1H21: 10.9% 2H21: 11.4% as a % of revenue A$500m A$498m A$528m 163 195 183 D&D SPEND 337 315 33
Slide 25: 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 2021 Game Global Gaming Awards 2021 Q3 2021 Slot Managers Survey 2020 Slot Awards Performance Database Awarded Land-Based Industry S
Slide 26: 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$2.3b 28% A$1.1b 83% 49.1% 14.8 pts FY21 Revenue FY21 Segment Profit FY21 M
Slide 27: Aristocrat Gaming - Detailed Results
Aristocrat Gaming - Detailed Results Strong recovery in Americas, ANZ and Growth in adjacent segments despite continued impacts of venue closures and For personal use only social distancing; D&D investment drives long-term game performance and market-leading products Total Gaming Americas1 ANZ Inter
Slide 28: Aristocrat Gaming - North American Adjacencies
Aristocrat Gaming - North American Adjacencies Successful entry into identified adjacent segments, growing our addressable market and share gain opportunities; For personal use only Two new segments in 1H22 - Historical Horse Racing in Kentucky and New York Lottery Gaming Operations Outright Sales H
Slide 29: Pixel United (Aristocrat Digital) - Overview
Pixel United (Aristocrat Digital) - Overview Top 5 global games publisher with strong & diversified portfolio; Exposed to high growth segments, strong profitable For personal use only growth from continued portfolio diversification, targeted investment in LiveOps, features & content and User Acquisi
Slide 30: Pixel United - Portfolio Diversity
Pixel United (Aristocrat Digital) - Portfolio Diversity Portfolio continues to diversify across genres, geographies and demographics. New titles scaling, while supporting For personal use only established franchise titles BOOKINGS BY SEGMENT BOOKINGS BY GAME 1 $1.8b $1.6b FY20 FY21 9% 15% 8% Other G
Slide 31: Pixel United - Game Portfolio
Pixel United (Aristocrat Digital) - Game Portfolio Diversified portfolio across new, scaling and franchise titles; Exposure to high yielding mid-core genre; New genres with For personal use only owned IP and Social Casino slot content leveraged from world-class design studios across Aristocrat Socia
Slide 32: Pixel United - Mobile Gaming Genres
Pixel United (Aristocrat Digital) - Mobile Gaming Genres Fast growing and large Total Addressable Market (TAM) of ~US$91 billion globally; Significant growth opportunities in For personal use only further diversification within core and new segments (including Asia) Pixel United Games Global Mobile
Slide 33: Glossary of Terms
Glossary of Terms Gaming Mobile Gaming For personal use only Americas US, 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 Zealand Bookings A
Slide 34: Glossary of Terms
Glossary of Terms Financial Other For personal use only Capex Capital expenditure Business-to-Business. That is, business activities carried out between two or B2B more companies without consumer contact D&D Design & Development investment Business-to-Consumer. That is, businesses carried out with t
Slide 35: Disclaimer
Disclaimer For personal use only For further information, contact: This document and any oral presentation accompanying Other Materials must not be taken as a representation reasonableness of such estimates, assumptions or it has been prepared in good faith, however, no express as to future matters.