Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — H1 2020 Earnings Presentation
30 slides from Aristocrat Leisure's earnings presentation, May 21, 2020
Slide 1: Results Presentation: Six months to 31 March 2020
Aristocrat Leisure Limited Investor Presentation 21 May 2020 For personal use only Results Presentation For the six months to 31 March 2020
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: Agenda
For personal use only AGENDA 1 COVID-19 Response and Recovery 2 Group Results and Financial Summary 3 Operational Performance 4 Results Summary 5 Q&A and Appendices
Slide 4: COVID-19 Response and Recovery Summary
COVID-19 RESPONSE AND RECOVERY SUMMARY We expect COVID-19 will drive a mix of temporary and long-term changes to our business. Our response and recovery plans centre around four key controllable tenets For personal use only • Protect the health and wellbeing of all employees, customers and suppliers
Slide 5: COVID-19 Response and Recovery Details
COVID-19 RESPONSE AND RECOVERY DETAILS We are taking comprehensive steps to position the business to emerge strongly from the challenges of COVID-19 For personal use only 6,200 employees globally supported to work from home, with no loss in productivity ‘People First’ approach, with a comprehens
Slide 6: Balance Sheet and Debt Profile
BALANCE SHEET AND DEBT PROFILE Strong balance sheet supportive of Aristocrat’s growth strategy For personal use only 31 March 2020 31 March 2020 Balance sheet strength a competitive advantage with net A$ million Actual 4 Pro-forma debt/EBITDA of 1.4x Existing TLB 2,980.2 2,980.2 Existing RCF 142.0
Slide 7: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Aristocrat’s capital allocation priorities support our long-term growth strategy, while maximising shareholder returns For personal use only Capital allocation priorities PRE-COVID-19 Capital allocation priorities CURRENT 1. Invest in the existing business to drive grow
Slide 8: Land-based Re-openings Phased with Gradual Gross Gaming Revenue Recovery
LAND-BASED RE-OPENINGS PHASED WITH GRADUAL GROSS GAMING REVENUE RECOVERY A phased approached is expected to Land-based market re-openings, on a location by location basis. Most North American casinos have indicated they expect to re-open by end of June 2020, however patronage will be impacted by soc
Slide 9: Group Results & Financial Summary
For personal use only GROUP RESULTS & FINANCIAL SUMMARY
Slide 10: Group Results Summary
GROUP RESULTS SUMMARY Balance sheet strength and enhanced liquidity, 42% growth in operating cash flow; double digit growth in Digital; overall NPATA decline of 12.8% driven by COVID-19 impact on Land-based business For personal use only Six months to Six months to A$ million 31 March 2020 31 March
Slide 11: Financial Performance
FINANCIAL PERFORMANCE Strong performance in Digital more than offset by COVID-19 impacts across the Land-based business 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 prior year tax rate. Numbers have been norm
Slide 12: Cash Flow
CASH FLOW Strong cash generating fundamentals drive 42% growth in operating cash flow to $620 million For personal use only Operating Cash Flow Six months to Six months to A$ million 31 March 2020 31 March 2019 Change % EBITDA 707.6 766.3 (7.7) Change in net working capital (27.3) (152.0) 82.0 Subto
Slide 13: Operational Performance
For personal use only OPERATIONAL PERFORMANCE
Slide 14: Land-based at a Glance
LAND-BASED 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 For personal use only US$17,544 (NA) Industry leading Best Overall >$1.2bn A$21,021 (ANZ) Supplier of Slot game perform
Slide 15: Americas
AMERICAS Revenue and Profit declines driven by COVID-19 impacts, coupled with timing of Outright Sales For personal use only Six months to Six months to Performed in line with expectations through to mid-March, pre- Americas 31 March 2020 31 March 2019 Change % COVID-19 Summary Profit or Loss Ga
Slide 16: ANZ & International Class III
ANZ & INTERNATIONAL CLASS III Revenue and profit declines due to timing of product releases and the impact of COVID-19 venue closures For personal use only Six months to Six months to ANZ 31 March 20201 31 March 2019 Change % Market-leading ship share maintained, amidst softer market Summary Profi
Slide 17: Digital at a Glance
DIGITAL AT A GLANCE For personal use only $698m +19% 7.3m 9 HY20 Bookings YoY Bookings Growth DAU Evergreen Titles $198m 50c $332m $160m HY20 Social Casino HY20 RAID: Shadow HY20 Segment Profit HY20 ABPDAU Bookings LegendsTM Bookings 28% $203m 10 2,300+ HY20 Segment Margin HY20 User Acquisition 29%
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. New titles scaling, whilst supporting established franchise titles For personal use only Bookings by segment Bookings by game >US$25m1 $697.6m $641.7m $586.1m Strategy
Slide 20: Digital Summary
DIGITAL SUMMARY Revenue growth of 19% reflects continued portfolio diversification, scaling of RAID: Shadow LegendsTM as well as growth in Social Casino; Profit up 12% For personal use only Six months to Six months to Revenue and Bookings up 19%, driven by continued scaling of Digital 31 March 202
Slide 21: Results Summary
For personal use only RESULTS SUMMARY
Slide 22: 1H20 Results Summary
1H20 RESULTS SUMMARY Balance sheet strength and enhanced liquidity, 42% growth in operating cash flow; double digit growth in Digital; overall NPATA decline of 12.8% driven by COVID-19 impact on Land-based business For personal use only Balance Sheet and Cash Flow Liquidity of $1.8 billion pro-for
Slide 23: Q&A and Appendices
For personal use only Q&A AND APPENDICES
Slide 24: Appendix: Long Term Strategy Remains Unchanged
APPENDIX: LONG TERM STRATEGY REMAINS UNCHANGED 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 (CAPE
Slide 25: 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 26: Appendix: Digital Strategic Context
APPENDIX: 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
Slide 27: Appendix: Digital Market Segmentation by Genre
APPENDIX: DIGITAL MARKET SEGMENTATION BY GENRE Digital offers access to a fast growing and large addressable market, of approximately US$40 billion; providing significant growth opportunities Strategy, RPG and Action US$23.5b -3% growth YoY For personal use only Social Casino Casual Strategy RPG Act
Slide 28: Appendix: Financial Reconciliations
APPENDIX: FINANCIAL RECONCILIATIONS Reconciliation of Statutory Financial Statements Revenue, EBITDA, NPATA, and NPAT to Review of Operations For personal use only Statutory Financial Significant items Review of Statements Contingent retention Recognition Operations 1H20 arrangements of Deferred Tax
Slide 29: Appendix: Segment Financials
APPENDIX: SEGMENT FINANCIALS Segment Financial Information (statutory) For personal use only Statutory P&L - Americas Six months to Six months to Statutory P&L - International Class III Six months to Six months to A$ million 31 March 2020 31 March 2019 A$ million 31 March 2020 31 March 2019 Revenue
Slide 30: For personal use only
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