Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — H1 2023 Earnings Presentation
32 slides from Aristocrat Leisure's earnings presentation, May 18, 2023
Slide 1: Half Year 2023 Results Investor Presentation
For personal use only Half Year 2023 Results Investor Presentation 18 May 2023 Aristocrat Leisure Limited
Slide 2: 1H23 Results Highlights
1H23 Results Highlights For personal use only Strategy Revenue EBITDA margin delivering $3.1bn +12.2% 33.3% Investing behind Continued strength & ~220 bps higher than 2H22 strong businesses, portfolio delivery from Supply chain pressures easing diversification Aristocrat Gaming Softer market for Pix
Slide 3: Overview: Strategy
For personal use only Overview Strategy
Slide 4: Our Strategy Continues to Deliver
Our Strategy Continues to Deliver Diversified model driving strong and resilient growth • Benefits of diversification evident in Group revenue growth and stable EBITDA (constant currency), notwithstanding investment and For personal use only slower mobile gaming market Aristocrat Gaming 1H23 Revenue
Slide 5: Sustainability Strategy & Progress
Sustainability Strategy & Progress Ensuring a vibrant business and sustainable industries for all our stakeholders in the long-term For personal use only Business Operations Product Responsibility People & Community Align with ASX 20 peers on Be a global leader in Be recognised as an climate, lead i
Slide 6: Group Results & Financial Summary
For personal use only Group Results & Financial Summary
Slide 7: Group Results Summary
Group Results Summary Portfolio diversification and execution drives revenue and profit higher, while investing for growth Six months to Six months to For personal use only A$ million 31 March 2023 31 March 2022 Change % • Revenue up 5% in constant currency; reported revenue up 12% Normalised result
Slide 8: Profit Reconciliation
Profit Reconciliation Outstanding Aristocrat Gaming result offset by reduced profits from Pixel United and business investment For personal use only NPATA BRIDGE (A$m) 1 NPATA 1H22 580.1 Americas 59.5 ANZ (10.7) International Class III 5.0 Pixel United (50.7) Corporate Costs & Other 48.1 Group D&D E
Slide 9: Cash Flow
Cash Flow Strong cash generation and conversion; Operating cash flow well over $600 million For personal use only Operating Cash Flow Six months to Six months to A$ million 31 March 2023 31 March 2022 Change % EBITDA 1,025.5 970.3 5.7 Change in net working capital (254.2) (206.1) (23.3) • Higher ope
Slide 10: 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 • Free cash flow funds growth investment (organic and inorganic) Investment drives future growth • Cash retur
Slide 11: Operational Performance
For personal use only Operational Performance
Slide 12: Aristocrat Gaming
Aristocrat Gaming Growth driven by high performing products and game titles, and superior execution in North America Six months to Six months to • Strong revenue growth across Americas and International Class III Summary Profit or Loss 31 March 2023 31 March 2022 Change % For personal use only drive
Slide 13: Pixel United
Pixel United Strategic focus and investment delivered continued market share gains in a disrupted market For personal use only Six months to Six months to • Revenues 6.5% lower, due to the decline in the mobile games Summary Profit or Loss 31 March 2023 31 March 2022 Change % market and proactive de
Slide 14: Pixel United – Resilient Portfolio Performance
Pixel United – Resilient Portfolio Performance Strong track record of above-market profitable growth through portfolio diversity and investible game titles For personal use only Mobile Games Market ($bn)1 Pixel United Revenue ($bn)2 CAGR CAGR FY18-22: +12% FY18-22: +16% 1H18-23: +9% 1H18-23: +16% +1
Slide 15: Anaxi's Market Entry Delivered Strategic Milestones for Momentum
Anaxi’s Market Entry Delivered For personal use only Strategic Milestones for Momentum Building The Opportunity "Build & Buy" Roxor Gaming, a leading B2B online RMG supplier, First iGaming regulated products now in soft Longer term goal to be the leading gaming closed earlier than expected (January
Slide 16: Outlook
For personal use only Outlook
Slide 17: Outlook
Outlook Aristocrat expects to deliver NPATA growth over the full year to 30 September 2023, assuming no material change in economic and industry conditions, reflecting: For personal use only • Continued strong revenue and profit growth from Aristocrat Gaming, underpinned by market-leading positions
Slide 18: Q&A
For personal use only Q&A
Slide 19: Appendices
For personal use only Appendices
Slide 20: Aristocrat's Growth Strategy
Aristocrat’s Growth Strategy Proven strategy driving sustainable growth and business resilience PORTFOLIO GROWTH For personal use only +PERFORMANCE TAKE SHARE WHEREVER STRONG PRODUCT WE PLAY ACCELERATION INVESTMENT OPTIONS BEST PEOPLE INNOVATION LEADERSHIP + CAPABILITY INVESTMENT OPERATIONAL EXCELLE
Slide 21: 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 11.8% 10.9% 11.4% 12.1% as a % of revenue A$372m A$313m 42 A$266m 28 A$243m D&D 19 91 17 133 145 SPEND 89 (A$m) 185 156 137
Slide 22: 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 March 2023 Game Performance Global Gaming Awards 2022 Q4 2022 Slot Managers Survey 2022 Slot Awards Database Awarded Land-Based Industry Sup
Slide 23: Aristocrat Gaming - Overview
Aristocrat Gaming - Overview Leader in North America Gaming Operations, ANZ & North America Outright Sales; Strong diversified game portfolio and technology partner A$1.8bn 23% A$915m 17% 52.1% 2.6 pts For personal use only 1H23 Revenue 1H23 Segment Profit 1H23 Margin Leader in North America Gaming
Slide 24: Aristocrat Gaming – Detailed Results
Aristocrat Gaming – Detailed Results Growth in Americas Outright Sales and Gaming Operations installed base, and International Class III; D&D investment drives long-term game performance and market-leading products For personal use only Total Gaming Americas1 ANZ International Class III Summary Prof
Slide 25: 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 120 September 11 Global Financial Crisis COVID-19 140% • US gaming revenues contracted by 1% in
Slide 26: Pixel United - Overview
Pixel United - Overview Top 5 publisher in Tier-1 Markets with strong & diversified portfolio; Exposed to attractive segments; Targeted investment in Live Ops, features & content and User Acquisition to drive long-term, profitable growth US$891m 7% US$263m 16% 29.5% 3.1pts For personal use only 1H23
Slide 27: Pixel United - Portfolio Diversity
Pixel United - Portfolio Diversity Diversified portfolio across genres, geographies and demographics BOOKINGS BY GAME 1 For personal use only BOOKINGS BY GENRE $951m $875m $886m 8% 6% 7% 3% 3% 1H22 1H23 3% 6% 5% 5% Other Games Mech Arena: Robot ShowdownTM 17% 17% 15% EverMergeTM 35% 33% Lightning Li
Slide 28: Pixel United - Game Portfolio
Pixel United - Game Portfolio Diversified portfolio across new, scaling and franchise titles; Exposure to high yielding mid-core genre; Genres with owned IP and Social Casino slot content leveraged from world-class design studios across Aristocrat For personal use only Social Casino RPG, Strategy &
Slide 29: Pixel United - Mobile Gaming Market
Pixel United - Mobile Gaming Market Large Total Addressable Market (TAM) of ~US$76.6 billion globally1 (15%) YoY (11%) YoY Mobile Gaming genres - $US For personal use only $26.8bn $76.6bn (13%) YoY (11%) YoY $5.8bn $10.5bn (7%) YoY $11.4bn (7%) YoY $16.6bn (3%) YoY $5.5bn Social Casino Casual RPG St
Slide 30: Glossary of Terms
Glossary of Terms Gaming Mobile Gaming Americas North America (US and Canada) and Latin America Average bookings per Daily Active User. Total bookings in each period, divided ABPDAU For personal use only by the number of days in that period, divided by the DAU during the period ANZ Australia and New
Slide 31: Glossary of Terms
Glossary of Terms Online Real Money Gaming Financial & Other For personal use only Anaxi Name of Aristocrat’s online RMG business CAGR Compound annual growth rate Business-to-Business. That is, business activities carried out between two or Capex Capital expenditure B2B more companies without consum
Slide 32: Disclaimer
Disclaimer 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 reasonableness of such estima