Tabcorp Holdings Limited · ASX:TAH
Tabcorp — 1H11 Earnings Presentation
28 slides from Tabcorp's earnings presentation, Feb 3, 2011
Slide 1: Tabcorp Half Year Results Presentation ASX cover letter
Tabcorp Holdings Limited ACN 063 780 709 5 Bowen Crescent Melbourne Australia 3004 GPO Box 1943R Melbourne Australia 3001 Telephone 61 3 9868 2100 Facsimile 61 3 9868 2300 For personal use only Website www.tabcorp.com.au 3 February 2011 To: Australian Securities Exchange Companies Announcements Plat
Slide 2: 2010/11 Half Year Results Presentation
For personal use only Tabcorp Holdings Limited 2010/11 Half Year Results Presentation 3 February 2011
Slide 3: 1H11 financial results
1H11 financial results ¾ Normalised NPAT, before demerger costs, $272m, up 3.0% For personal use only Revenues up 3.3% Expenses up 4.6% EPS 42.6 cents, down 2.1% following capital raising Results includes tax credit of $9m; prior year included tax credits of $16m ¾ Reported NPAT, including d
Slide 4: Group results
Group results Actual Change Normalised 1 Change For personal use only $m 1H11 on pcp 1H11 on pcp Revenues 2,257.6 3.5% 2,262.9 3.3% Variable contribution 1,128.3 4.5% 1,133.1 4.1% Operating expenses (572.3) 4.6% (572.3) 4.6% EBITDA 556.5 4.7% 561.3 3.8% D&A (107.1) 7.6% (107.1) 7.6% EBIT 449.4 4.0%
Slide 5: Divisional results
Divisional results For personal use only Casinos Change Wagering Change Gaming Change 1 $m Normalised on pcp on pcp on pcp Revenues 734.8 5.7% 890.7 2.1% 640.0 2.1% Variable contribution 577.1 5.5% 347.7 3.1% 209.2 1.9% Operating expenses (376.0) 5.8% (160.0) 2.6% (37.4) (0.5%) EBITDA 201.0 5.2% 187
Slide 6: Casinos: KPIs
Casinos: KPIs ¾ Star City For personal use only NSW Qld Total Normalised 1H11 Change 1H11 Change 1H11 Change Revenue growth 6.5% $m on pcp on pcp on pcp Project Star is on track EGMs 114.1 12.3% 143.7 2.7% 257.8 6.8% Hotel and key restaurants to open calendar year 2011 Main Gaming Floor 155.0
Slide 7: Project Star Update
Project Star Update % Complete Status Target Completion For personal use only ¾ Sports theatre, Baccarat, Poker completed + Main Gaming ~40% ¾ Outdoor gaming area opened Nov 10 Dec 2011 Floor ¾ MGF Food Quarter opened Dec 10 ¾ 172 room five star hotel Hotel ¾ Glass facade installed up to Level 11; N
Slide 8: Project Star – new openings and hotel exterior
Project Star – new openings and hotel exterior For personal use only 7
Slide 9: Proposed $625 million expansion of Queensland casinos
Proposed $625 million expansion of Queensland casinos Gold Coast Gaming concessions For personal use only ¾ New 200 room Five Star boutique hotel ¾ 500 additional Electronic Gaming Machines; ¾ Eight new restaurants & bars transfer of 47 EGM licences from Townsville ¾ Expanded Main Gaming Floor ¾ 50
Slide 10: Queensland casinos investments
Queensland casinos investments For personal use only 9
Slide 11: Wagering: KPIs
Wagering: KPIs $m 1H11 1H10 Change Revenues product ¾ 1H11 revenue impacts For personal use only Racing Vic 344.1 353.2 (2.6%) Racing NSW 413.9 430.6 (3.9%) Soccer World Cup $7.5m Fixed odds 114.9 77.5 48.3% Wet weather $8m Trackside 21.4 18.5 15.4% ¾ Strong growth in Fixed Odds and Internet Med
Slide 12: Wagering reform in NSW
Wagering reform in NSW For personal use only ¾ Trackside Approval to introduce Trackside has been received In 160 venues to date; target 1,500+ by March 2012 Tabcorp will pay Racing NSW $150m in two instalments Expected EBITDA contribution in excess of $30m pa ¾ Other racing reforms approved
Slide 13: Gaming: KPIs
Gaming: KPIs $m 1H11 1H10 Change For personal use only Vic Gaming Vic Gaming Revenue 554.6 542.4 2.2% EBITDA 145.6 137.4 6.0% ¾ Market share up to 53.9% EBIT 127.3 119.4 6.6% ¾ Tabcorp Gaming Solutions signed up in Venues (period end) 264 263 0.4% excess of 7,000 EGMs; expected EGMs (average) 13,271
Slide 14: Group: Capital expenditure
Group: Capital expenditure Capex trend (excluding Project Star) Capex trend - Project Star For personal use only 185 123 82 67 123 97 1H10 2H10 1H11 1H10 2H10 1H11 ¾ FY11 D&A expense ~ $230m ¾ 1H11 capex includes second and final $50m payment to NSW Government ¾ 2H11 capex forecast ~ $210m ¾ Total p
Slide 15: Group: Key capital features
Group: Key capital features 700 For personal use only 600 500 Undrawn Bank Debt 400 Drawn Bank Debt US Private Placement $M 300 Tabcorp Retail Bonds Medium Term Notes 200 100 - FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 ¾ 1H11 Entitlement Offer raised $419m ¾ Undrawn facilities $600m ¾ Gross
Slide 16: Summary and outlook
Summary and outlook ¾ Normalised NPAT, before demerger costs, $272m, up 3.0% For personal use only Sound result with all divisions contributing to growth ¾ Investment plans in place Casinos - Star City redevelopment - Proposed Queensland expansion Wagering - NSW rollout of Fixed odds and Track
Slide 17: Appendices
Appendices For personal use only 1. Group results 2. Earnings per share and dividends per share 3. Casinos: Financial data 4. Casinos: Revenues by state and product 5. Wagering: Financial data 6. Wagering: Revenues by state and product 7. Gaming: Financial data 8. Gaming: Market share 9. Balance she
Slide 18: 1. Group results
1. Group results Actual Change Normalised 1 Change For personal use only $m 1H11 on pcp 1H11 on pcp Revenues 2,257.6 3.5% 2,262.9 3.3% Government taxes & levies (619.5) 2.8% (620.0) 2.7% Operating commissions (269.7) 3.1% (269.7) 3.1% Racing industry fees (240.1) 1.3% (240.1) 1.3% Variable contribut
Slide 19: 2. Earnings per share and dividends per share
2. Earnings per share and dividends per share For personal use only Normalised earnings per share Dividends per share 51.5 49.4 47 47 47.4 43.5 42.6 35 30 Growth Growth on pcp on pcp 24 6.8% 0.0% (25.5%) (14.3%) (3.7%) (8.0%) 4.3% (11.9%) (2.1%) (20.0%) 1H07 1H08 1H09 1H10 1H11 1H07 1H08 1H09 1H10 1
Slide 20: 3. Casinos: Financial data
3. Casinos: Financial data For personal use only NSW Change QLD Change Total Change Normalised 1H11 on pcp 1H11 on pcp 1H11 on pcp $m Revenues 412.3 6.5% 322.5 4.7% 734.8 5.7% Variable contribution 318.5 5.2% 258.6 5.8% 577.1 5.5% Operating expenses (197.3) 6.2% (178.7) 5.2% (376.0) 5.8% Other incom
Slide 21: 4. Casinos: Revenue by state and product
4. Casinos: Revenue by state and product NSW Qld Total For personal use only Normalised Change Change Change 1H11 1H11 1H11 $m on pcp on pcp on pcp EGMs 114.1 12.3% 143.7 2.7% 257.8 6.8% Main Gaming Floor 155.0 4.6% 69.4 4.1% 224.4 4.4% Private Gaming Room 62.2 (1.0%) 34.4 9.6% 96.6 2.5% Non-gaming
Slide 22: 5. Wagering: Financial data
5. Wagering: Financial data For personal use only $m 1H11 1H10 Change Racing - Vic 261.6 268.5 (2.6%) Racing - NSW 413.9 430.6 (3.9%) Fixed odds 103.2 69.1 49.2% Trackside 16.0 13.9 15.4% Media 64.8 59.4 9.2% Other 31.2 30.5 2.4% Revenues 890.7 872.0 2.1% Taxes, levies, commissions and fees (543.0)
Slide 23: 6. Wagering: Revenue by state and product
6. Wagering: Revenue by state and product For personal use only NSW Change Vic Change Total Change $m 1H11 on pcp 1H11 on pcp 1H11 on pcp Operating revenues Thoroughbred 276.7 (7.2%) 174.9 (5.4%) 451.6 (6.5%) Harness 52.1 (4.4%) 36.9 (4.3%) 89.0 (4.4%) Greyhound 85.1 9.4% 49.8 10.4% 134.9 9.7% Total
Slide 24: 7. Gaming: Financial data
7. Gaming: Financial data For personal use only $m 1H11 1H10 Change Victorian network - Hotel 366.4 358.5 2.2% - Clubs 188.2 183.9 2.3% Total Victorian gaming 554.6 542.4 2.2% Keno 69.2 67.3 2.8% Other revenue 16.2 16.9 (4.1%) Revenue 640.0 626.6 2.1% Taxes, levies, commissions and fees (430.8) (421
Slide 25: 8. Gaming: Market share
8. Gaming: Market share Tabcorp v Tatts Group Vic Gaming Revenue Market Share For personal use only Jan 2006 to Dec 2010 55.0% 54.0% 53.0% 52.0% Tabcorp Market Share % 51.0% 50.0% 49.0% 48.0% Tatts Group 47.0% 46.0% 45.0% Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Jan-06 Jul-06 Sep-06 Jan-07 Jul-07 Sep-07 J
Slide 26: 9. Balance Sheet
9. Balance Sheet As at As at For personal use only $m 31 Dec 10 30 Jun 10 Change Total current assets 539.5 381.1 41.6% Licences 634.6 652.6 (2.8%) Other intangible assets 3,776.0 3,627.5 4.1% Property, plant and equipment 1,890.3 1,762.9 7.2% Other non current assets 81.6 33.6 142.9% Total assets 6
Slide 27: 10. Cashflow
10. Cashflow Actual For personal use only $m 1H11 1H10 Change Net operating flows 457.1 507.0 (9.9%) Net interest payments (76.7) (73.8) 3.9% Income tax paid (104.1) (98.9) 5.3% Payments for PP&E (255.2) (201.7) 26.5% Net operating cash flows 21.1 132.6 (84.1%) Proceeds from issue of shares 427.7 -
Slide 28: For personal use only
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