Slide 1: ASX cover letter: Tabcorp full year results presentation
For personal use only 4 August 2017 Australian Securities Exchange Companies Announcements Platform 20 Bridge Street Sydney NSW 2000 TABCORP FULL YEAR RESULTS PRESENTATION Attached is the presentation regarding Tabcorp’s full year results for the financial year ended 30 June 2017 to be presented by
Slide 2: 2016/17 Full Year Results Presentation
For personal use only TABCORP HOLDINGS LIMITED 2016/17 FULL YEAR RESULTS PRESENTATION 4 AUGUST 2017 ABN 66 063 780 709
Slide 3: A Strategically Important Year
A STRATEGICALLY IMPORTANT YEAR For personal use only o Announced and significantly progressed the combination with Tatts Group, which is expected to complete by the end of 2017 o Acquired Intecq, a complementary gaming systems and monitoring business o Launched our UK start-up, Sun Bets o Continued
Slide 4: FY17 Overview
FY17 OVERVIEW For personal use only o Statutory result: NPAT loss of $20.8m (EPS -2.5 cps), adversely impacted by significant items after tax of $199.7m o Results before significant items1 • Revenues $2,229.6m, up 1.9%, within guidance ($2,220m - $2,240m) • EBITDA $504.1m, down 2.3%, within guidance
Slide 5: Group Results
1 GROUP RESULTS For personal use only $m FY17 FY16 Change Revenues 2,229.6 2,188.7 1.9% Variable contribution 1,006.3 984.5 2.2% Operating expenses (502.2) (468.7) 7.1% EBITDA before significant items 504.1 515.8 (2.3%) D&A (178.7) (178.6) 0.1% EBIT before significant items 325.4 337.2 (3.5%) Intere
Slide 6: Business Results
BUSINESS RESULTS For personal use only Wagering Change Gaming Change Change Change 1 2 Keno Group $m & Media on pcp Services on pcp on pcp on pcp Revenues 1,873.0 0.0% 143.9 34.2% 212.7 2.0% 2,229.6 1.9% Variable contribution 750.8 (1.2%) 133.6 25.9% 121.9 3.2% 1,006.3 2.2% 3 Operating expenses (400
Slide 7: Wagering & Media: KPIs
WAGERING & MEDIA: KPIs For personal use only $m FY17 FY16 Change o Key KPIs for the TAB business remain strong, refer slide 7 Wagering revenue 1,694.1 1,697.4 (0.2%) o However results impacted by underperformance of Media revenue 178.9 175.6 1.9% Luxbet and Trackside, wet weather during the Autumn C
Slide 8: TAB: KPIs
TAB: KPIs For personal use only Change Change Change 1H17 on pcp 2H17 on pcp FY17 on pcp o Key KPIs for the TAB business remain strong Turnover by distribution ($m) • Digital turnover growth of 13.9% Retail 3,302.5 (2.5%) 2,937.3 (6.4%) 6,239.8 (4.4%) • Total TAB Fixed Odds revenue growth of Digital
Slide 9: Wagering & Media Initiatives
WAGERING & MEDIA INITIATIVES For personal use only o Continued investment in digital transformation • Successful roll-out of digital commission model to retail venue partners with effect from October 2016 • Check & Collect – allowing customers to scan winning tickets via the TAB app into their TAB a
Slide 10: Sun Bets
SUN BETS For personal use only o UK start up, Sun Bets, established and launched in August 2016 $m FY17 o Strategic intent of Sun Bets to gain a position in the attractive UK online wagering and gaming market, while building a platform we Turnover 203.6 can replicate in new growth markets in the fut
Slide 11: Gaming Services: KPIs
GAMING SERVICES: KPIs For personal use only $m FY17 FY16 Change o Further geographic expansion of Gaming Services with the signing of Panthers Group and acquisition of Intecq Revenues 143.9 107.2 34.2% o TGS EBITDA 82.1 70.1 17.1% • Approximately 10,650 EGMs under contract (Vic EBIT 47.9 41.0 16.8%
Slide 12: Keno: KPIs
KENO: KPIs For personal use only $m FY17 FY16 Change o Ongoing transformation driving turnover growth of 3.6% compared with the pcp Revenues 212.7 208.5 2.0% o Revenue performance EBITDA 72.0 70.3 2.4% • Vic up 9.4% • NSW up 4.7% EBIT 49.5 50.7 (2.4%) • Qld down 2.4% Venues 3,616 3,612 0.1% o Furthe
Slide 13: Operating Expenses and Capital Investment
OPERATING EXPENSES AND CAPITAL INVESTMENT For personal use only 1 OPEX / REVENUE RATIO CAPEX ($m) 22.5% 211 21.2% 21.3% 21.4% 152 143 133 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Wageri ng & Med ia Sun Be ts Gaming S ervi ces Ken o Pro perty o Increased opex to revenue ratio in FY17 driven by o FY17
Slide 14: Capital Management
CAPITAL MANAGEMENT For personal use only DEBT STRUCTURE ($m) DIVIDENDS (¢) Term debt Bridge finance 25.0 24.0 US Private Placement 575 20.0 16.0 650 84 400 150 127 FY18 FY19 FY20 FY21 FY22 1 FY14 FY15 FY16 FY17 o Undrawn bank facilities of $400m at 30 June 2017, including a new $250m short term faci
Slide 15: Combination with Tatts
COMBINATION WITH TATTS For personal use only o The combination is expected to deliver at least $130 million per annum of EBITDA from synergies and business improvements o The combined group will have greater financial scale and a strong balance sheet position o The combination will also offer signif
Slide 16: Conclusion
CONCLUSION For personal use only o FY17 was a strategically important year • Announced and significantly progressed the combination with Tatts Group, which is expected to complete by the end of 2017 • Acquired Intecq, a complementary gaming systems and monitoring business • Launched our UK start-up,
Slide 17: Appendices
For personal use only 16 APPENDICES
Slide 18: Appendices
APPENDICES For personal use only 1. Wagering & Media: Financial data 2. Wagering & Media: Revenues by state and product 3. Wagering & Media: TAB Fixed Odds turnover and yields 4. Balance sheet 5. Cashflow 17
Slide 19: Wagering & Media: Financial Data
1. WAGERING & MEDIA: FINANCIAL DATA For personal use only $m FY17 FY16 Change Revenues 1,873.0 1,873.0 0.0% Taxes, levies, commissions and fees (1,122.2) (1,112.7) 0.9% Variable contribution 750.8 760.3 (1.2%) Operating expenses (400.8) (378.2) 6.0% EBITDA 350.0 382.1 (8.4%) D&A (122.0) (129.9) (6.1
Slide 20: Wagering & Media: Revenues by State and Product
2. WAGERING & MEDIA: REVENUES BY STATE AND PRODUCT For personal use only NSW Change Vic Change ACT Change Total Change $m FY17 on pcp FY17 on pcp FY17 on pcp FY17 on pcp Racing 904.5 0.1% 422.0 2.6% 25.7 4.5% 1,352.2 0.9% Sports 132.1 0.5% 39.3 2.1% 2.7 35.0% 174.1 1.2% Trackside 36.1 (15.7%) 22.2 (
Slide 21: Wagering & Media: TAB Fixed Odds Turnover and Yields
3. WAGERING & MEDIA: TAB FIXED ODDS T/O AND YIELDS For personal use only Turnover - Racing ($m) Yield - Racing FY15 YoY FY16 YoY FY17 YoY growth: 22.1% growth: 21.7% growth: 20.6% 16.1% 15.4% 15.5% 20% 2,000 1,600 15% 1,200 10% 800 5% 400 0 0% 1H15 2H15 1H16 2H16 1H17 2H17 1H15 2H15 1H16 2H16 1H17 2
Slide 22: Balance Sheet
4. BALANCE SHEET For personal use only $m Jun 17 Jun 16 Change Total current assets 556.6 197.1 >100% Licences 637.5 682.4 (6.6%) Other intangible assets 2,058.1 1,945.3 5.8% Property, plant and equipment 339.4 311.7 8.9% Other non current assets 149.3 166.3 (10.2%) Total assets 3,740.9 3,302.8 13.3
Slide 23: Cashflow
5. CASHFLOW For personal use only $m FY17 FY16 Change Net operating cash flows 359.1 458.1 (21.6%) Net interest paid (75.1) (68.4) 9.8% Income tax (paid) / refunded (61.5) 11.4 (>100%) Payments for PP&E and intangibles (197.4) (183.1) 7.8% Sub-total 25.1 218.0 (88.5%) Ordinary dividends paid (194.5)
Slide 24: Disclaimer
DISCLAIMER For personal use only This Presentation contains summary information about the current activities of Tabcorp Holdings Limited (Tabcorp) and its subsidiaries (Tabcorp Group). It should be read in conjunction with the Tabcorp Group’s other periodic and continuous disclosure announcements lo
Slide 25: To Advance the Way We Play
For personal use only TO ADVANCE THE WAY WE PLAY