Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — Merger or Acquisition (August 2017)
29 slides from Aristocrat Leisure's merger presentation, Aug 10, 2017
Slide 1: Acquisition of Plarium Global Limited
Aristocrat Leisure Limited Acquisition of Plarium Global Limited 10 August 2017 For personal use only
Slide 2: Disclaimer
Disclaimer For personal use only This document and any oral presentation accompanying it has been prepared in good faith, however, no express or implied warranty is given as to the accuracy or completeness of the information in this document or the accompanying presentation. All statutory representa
Slide 3: Contents
For personal use only Contents 1 Transaction overview 2 Overview of Plarium 3 Strategic rationale 4 Funding 5 Conclusion A Appendix: Glossary of terms
Slide 4: Transaction overview
For personal use only Section 1 Transaction overview
Slide 5: Transaction overview
Transaction overview Aristocrat has entered into a binding agreement to purchase social gaming company, Plarium. The transaction will For personal use only materially increase Aristocrat's Digital revenue Significantly expands Aristocrat’s Digital addressable market into adjacent gaming segments
Slide 6: Transaction summary
Transaction summary For personal use only • Aristocrat has entered into a binding agreement to acquire 100% of Plarium for total consideration of: – an upfront amount of US$500 million cash (A$667 million(1)), subject to customary completion adjustments; and – an earn-out arrangement payable to Plar
Slide 7: Overview of Plarium
For personal use only Section 2 Overview of Plarium
Slide 8: Overview of Plarium
Overview of Plarium For personal use only Plarium overview Product overview – Key current games • Plarium is an Israeli headquartered Free-To-Play ("FTP") mobile, Game Launch(4) Mobile launch(4) social, and web-based game developer • Operates across five genre-specific studios May-11 Sep-12 • Produc
Slide 9: Attractive and proven business model
Attractive and proven business model Plarium focuses on developing robust game 'engines' which form the foundation for future game development. This For personal use only model has proven to be very successful • Multi-studio, multi-game portfolio strategy with five genre-specific game studios worldw
Slide 10: Plarium financial overview
Plarium financial overview Plarium has experienced significant growth in recent years For personal use only Adjusted revenue(1) Adjusted EBITDA(1) Total active depositors (US$m) (US$m) (#) 201 1.4m CAGR: 30% CAGR: 55% 44 CAGR: 63% 0.5m 32 5 Year ended Year ended Year ended Year ended As at As at 31
Slide 11: Strategic rationale
For personal use only Section 3 Strategic rationale
Slide 12: Strong strategic rationale
Strong strategic rationale For personal use only A Significantly expands Aristocrat’s Digital addressable market into adjacent gaming segments B Increases Aristocrat’s exposure to the fast growing Digital market C Proven content and ability to monetise social games D Strong management team with glob
Slide 13: Significantly expands Aristocrat's Digital addressable market
A Significantly expands Aristocrat’s Digital addressable market Strategic transaction expanding Aristocrat's addressable market into logical adjacent segments within the mobile For personal use only gaming market 2016 mobile and web games market Pro forma target segments (US$bn) Madness Product Tota
Slide 14: Increases Aristocrat's exposure to the fast growing Digital market
B Increases Aristocrat’s exposure to the fast growing Digital market The mobile games segment continues to grow rapidly and represents the fastest growing segment within the global For personal use only games market Fast growing mobile gaming segment Growth underpinned by global industry tailwinds •
Slide 15: Increases exposure to fast growing Digital market (cont.)
B Increases Aristocrat’s exposure to the fast growing Digital market (cont.) The acquisition of Plarium materially expands Aristocrat’s Digital footprint with pro forma Digital revenue For personal use only contribution increasing from 14% to 22% Increased exposure to Digital gaming Revenue by Strat
Slide 16: Proven content and ability to monetise social games
C Proven content and ability to monetise social games Plarium has proven in-house content development capabilities. Its content is highly complementary to Aristocrat's For personal use only existing social casino games Plarium has proven social mobile gaming content based on ‘game engines’ develop
Slide 17: Strong management team with global game development talent
D Strong management team with global game development talent Plarium has a proven management team that has rapidly grown the company and has established Plarium as an For personal use only employer of choice in low-cost jurisdictions Proven management team and significant global talent Management re
Slide 18: Operational parallels with Aristocrat's Digital business
E Operational parallels with Aristocrat’s Digital business Plarium and Aristocrat's Product Madness business have a number of notable operational parallels, particularly For personal use only with respect to approach and business model Operational comparison Aligned Target segment Mobile and Social
Slide 19: Product Madness – Case study
E Product Madness – Case study Product Madness was Aristocrat's beachhead into social casino gaming and was a resounding financial and For personal use only operational success. Similarly, the acquisition of Plarium provides a platform to expand into adjacent segments Product Madness acquisition • I
Slide 20: Attractive financial metrics, strong historical growth and EPSA accretive
F Attractive financial metrics, strong historical growth and EPSA accretive The acquisition of Plarium is expected be EPSA accretive in year one and will expand the proportion of Aristocrat’s For personal use only recurring revenues Attractive financial metrics Expands proportion of Aristocrat’s rec
Slide 21: Strong cultural alignment with Aristocrat
G Strong cultural alignment with Aristocrat There is strong cultural alignment between Aristocrat and Plarium with a common focus on producing the world’s For personal use only best gaming content Common focus on producing the world’s best gaming content Common aspiration to become a global lead
Slide 22: Funding
For personal use only Section 4 Funding
Slide 23: Acquisition funding details
Acquisition funding details For personal use only Acquisition funding details Sources and uses(1) • Upfront cash consideration of US$500 million Sources US$m A$m (A$667 million(1)) Purchase Existing cash 92 122 price • Additional cash consideration at end of calendar 2017 and 2018 based on 10x LTM E
Slide 24: Conclusion
For personal use only Section 5 Conclusion
Slide 25: Strong strategic rationale
Strong strategic rationale For personal use only Significantly expands Aristocrat’s Digital addressable market into adjacent gaming segments Increases Aristocrat’s exposure to the fast growing Digital market Proven content and ability to monetise social games Strong management team with glob
Slide 26: Q&A
For personal use only Q&A 25 25
Slide 27: Appendix A: Glossary of terms
For personal use only Appendix A Glossary of terms
Slide 28: Glossary of terms
Glossary of terms For personal use only A$ Australian dollar FTP Free-To-Play Active A player that was active during a calendar month and who made FY18 Financial year ending 30 September 2018 depositors deposits prior to that calendar month Addressable Size of the market available, by revenue iOS Op
Slide 29: For personal use only
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