Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Shareholder Meeting (October 2003)
31 slides from Tabcorp's shareholder meeting presentation, Oct 30, 2003
Slide 1: TABCORP Holdings Limited 2003 Annual General Meeting
TABCORP Holdings Limited 2003 Annual General Meeting Qotc, TABCORP tly, *
Slide 2: Key features
Key features ¢ Increased profits and EPS before non-recurring items, despite impact of smoking bans ¢ Final dividend of 34 cents taking full year dividend to 67 cents per share fully franked — 63 cents LY ¢ Continued underlying growth in wagering profitability ¢ Strong second half performance by Sta
Slide 3: TABCORP — Group profile
TABCORP — Group profile Net profit after tax* Earnings per share* 300.0 CAGR 16.4% 4106.0 ; CAGR 12.9% wy 259.3 263.1 250.0 | we 743 ~» 200.0 i“ £ 150.0 E 100.0 A 50.0 0.0 .. 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 #% EPS (post goodwill amortisation) * Goodwill amortisation Return on share
Slide 4: Gaming
Gaming Revenue PBITA margin* CAGR 4.4% 97.0% 1000 , 846 918 848 Va Hy 795 PEO, vos 26.0% 800 vos 25.0% en —— 3 00 24.0% = 400 23.0% a 22.0% 200 21.0% 0 WA. BOT |. a 20.0% r r ; r 1 1999 2000 2001 2002 2003 1999 §=©2000 =. 2001S 2002 2003 PBITA* Capital expenditure CAGR 4.2% 250 i 202 218 231 208 200
Slide 5: Gaming — Monthly revenue
Gaming — Monthly revenue $000 95,000 90,000 85,000 80,000 75,000 70,000 65,000 60,000 55,000 50,000 Set, TABCORP ELLE LLL TABCORP monthly revenue Impact of smoking ban Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun cect? 200) 2002 17-2003 AGM 2003
Slide 6: Wagering
Wagering Revenue CAGR 4.5% 421 1999 «2000 )=— 2001S 2002) 2003 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% PBITA margin* 1999 2000 2001 2002 2003 PBITA* 70 CAGR 9.7% } 64 60 | 53 58 eB 50 $ millions 1999 2000 2001 2002 2003 $millions => = NY WN a o> a S&S & Q Capital expenditure 1999 2000 2001 2002 20
Slide 7: Star City
Star City Revenue* CAGR 3.8% 700 ; 612 6ST 2000 2001 2002 2003 31.0% 29.0% 27.0% 25.0% 23.0% 21.0% 19.0% 17.0% 15.0% PBITA margin* 2000 2001 2002 2003 PBITA* CAGR 27.3% 200 ; 182 : 162 y 150 7) 112 § 100 a 2 w# 50 2000 2001 2002 2003 $millions Capital expenditure” 2000 2001 2002 2003 * Pre-non recur
Slide 8: Star City — Main gaming floor highlights
Star City — Main gaming floor highlights * New roulette pit (6 * Revise black jack / * 00 roulette on $2 tables) pontoon mix tables « Additional roulette « Additional high (4 tables) limit baccarat table Rapid Roulette launch Floor relaying, additional blackjack in high utilisation pits 20.0% 15.0%
Slide 9: Star City — Rapid Roulette
Star City — Rapid Roulette ¢ Interactive — electronic betting ¢ Popular with customers ¢ Low denomination AGM 2003 Gynt, TABCORP EEE ERED
Slide 10: Key business strategies
Key business strategies Organic Growth * Drive growth in existing businesses through focus on: - Continuous improvement in customer service and overall product quality - Disciplined investment in people, product and processes - Operational excellence in delivery - Speed in execution - innovation Ino
Slide 11: Focus for FY2004 — Key organic growth strategies
Focus for FY2004 — Key organic growth strategies ¢ Wagering — Continued growth in customer usage of lower cost distribution channels and enhancing revenue through working with the racing industry, introducing new products and improving outlet amenity Set, TABCORP ‘ELIE OL LE EOL AGM 2003
Slide 12: Wagering — Distribution
Wagering — Distribution TABCORP turnover ($'m! 2000 2001 2002 2003 wRetait mOncourse w Accourit sales 100% 90% 80% 70% 60% 50%, 40% 30% 20% 10% O% ‘% of account sale transactions 2000 2001 2002 2003 MOperator mTouchtone Voice internet Probel Account sales turnover growth Turnover $m = & oS 2000 2001
Slide 13: Focus for FY2004 — Key organic growth strategies
Focus for FY2004 — Key organic growth strategies ¢ Wagering — Continued growth in customer usage of lower cost distribution channels and enhancing revenue through working with the racing industry, introducing new products and improving outlet amenity ¢ Gaming — Improving venue amenity and customer s
Slide 14: Gaming — Venue amenity
Gaming — Venue amenity Venues with Grade 4 smoking area 480 160 140 420 400 70.0% 60.0% 7+ 50.0% 40.0% 30.0% 20.0% 1 10.0% AL 9.0% Sep Oct Nov Dec Jan Mar Jun Weems No. of venues — % of network Critical Success Factors ¢ Amenity of smokers lounge ¢ Effective machine reservation system ¢ Well trained
Slide 15: Focus for FY2004 — Key organic growth strategies
Focus for FY2004 — Key organic growth strategies ¢ Wagering — Continued growth in customer usage of lower cost distribution channels and enhancing revenue through working with the racing industry, introducing new products and improving outlet amenity ¢ Gaming — Improving venue amenity and customer s
Slide 16: Star City — Private slots lounge
Star City — Private slots lounge Offer to VIP customers * Access available only to rated VIP players and potential VIP players * 158 slot machines — mix determined by player preference * Complimentary food and beverages e Exclusive menu available from attached kitchen « Dedicated executive host team
Slide 17: Jupiters — Gold Coast
Jupiters —- Gold Coast oe A ii AGM 2003 4 TABCORP ‘LEELA LLL
Slide 18: Casino floor — Gold Coast
Casino floor — Gold Coast AGM 2003 Set, TABCORP ‘LU ELELELL EE CLLE
Slide 19: Treasury Casino — Brisbane
Treasury Casino — Brisbane ee AGM 2003 4 TABCORP ‘LUELLA ELE
Slide 20: Main gaming floor — Brisbane
Main gaming floor — Brisbane Set, TABCORP COLELLO AGM 2003
Slide 21: Jupiters Casino — Townsville
Jupiters Casino — Townsville AGM 2003 Set, TABCORP ‘LU ELELELL EE CLLE
Slide 22: Customer service
Customer service AGM 2003 Set, TABCORP ‘LEELA LLL
Slide 23: Jupiters KENO TABCORP
Jupiters KENO 4 TABCORP SOIL ELLE ELLE : AGM 2003
Slide 24: Jupiters — Group profile
Jupiters —- Group profile * Casinos (as at 27 October 2003) - Gold Coast casino with 1,348 gaming Share price AS 6.49 machines, 103 tables, 603 rooms Shares on issue m 201.8 - Treasury casino with 1,329 gaming Market capitalisation = A$m 1,308.6 machines, 86 tables, 130 rooms Net debt Asm 359.7 Ente
Slide 25: Jupiters merger
Jupiters merger Set, TABCORP ELLIE LOLOL Jupiters shareholders approved the merger on 24 October 2003 Implementation date scheduled for 13 November 2003 Discussions with Park Place regarding the management contracts continue Integration planning is well advanced with a team from TABCORP and Jupiters
Slide 26: TABCORP/Jupiters — Group profile
TABCORP/Jupiters — Group profile Key Business Statistics Casinos Other businesses No of casinos: 4 Keno outlets: 62,000 Casino customers per day: 36,800 Wagering outlets: 566 . . . EGM monitoring(QLD): 614,000 Casino gaming machines: 64,400 ; ; TAB account customers: 420,000 Casino gaming tables: 42
Slide 27: Key company issues in 2004
Key company issues in 2004 Responsible Gambling ¢ First independent review of compliance with the TABCORP Responsible Gambling Code conducted by KPMG ¢ Preliminary findings are encouraging ¢ Appointment of dedicated Responsible Gambling Manager 2012 ¢ Victorian wagering and gaming licences to 2012 «
Slide 28: First Quarter Performance
First Quarter Performance Net Revenue (3.3)% Wagering . T 5.9% Gaming J (12.1)% Casinos 60 5.1% Vy hes 2003 2004 AGM 2003 Gynt, TABCORP ‘EERE
Slide 29: Gaming revenue — 2004 YTD
Gaming revenue — 2004 YTD % change (PCP) 10.0% - 4.7% 5.0% - 0.0% - 1 i September 1~—25 October -5.0% + -10.0% - . of, _ 15.0% 14.4% -20.0% ~ -19.4% -25.0% ~ AGM 2003 4 TABCORP ‘SUE
Slide 30: Conclusion
Conclusion ¢ FY2003 was a challenging year, however we managed to achieve 1.5% growth in NPAT pre non- recurring items ¢ Each of our businesses holds a strong position in its respective market and is well positioned for continued growth in profitability ¢ Company remains ready to engage in discussio
Slide 31: TABCORP
[TABCORP
Tabcorp Holdings — Shareholder Meeting (October 2003) on 6ix