Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Debt Investor Presentation (February 2012)
33 slides from Tabcorp's debt investor presentation, Feb 14, 2012
Slide 1: Tabcorp Holdings Limited $200 million Tabcorp Subordinated Notes investor presentation
For personal use only Tabcorp Holdings Limited $200 million Tabcorp Subordinated Notes investor presentation February 2012 1
Slide 2: Important notices
Important notices For personal use only This presentation has been prepared by Tabcorp Holdings Limited (ABN 66 063 780 709) ("Tabcorp"), in connection with the offer of Tabcorp Subordinated Notes (“Notes”) in Australia ("Offer"). The Offer is made under a prospectus which was lodged with the Austra
Slide 3: Important notices
Important notices For personal use only This presentation is not a prospectus or other disclosure or offering document under Australian or any other law. This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security in any jurisdiction and nei
Slide 4: Agenda
Agenda For personal use only 1 Summary of Tabcorp Subordinated Notes 2 About Tabcorp 3 Financial information 4 Key features of Notes and risks 5 Offer process 4
Slide 5: Offer summary
Offer summary For personal use only Issuer Tabcorp Holdings Limited S&P/ASX 100 company with a market cap of approximately $2.1 billion1 One of Australia’s leading wagering, gaming and entertainment groups Security Tabcorp Subordinated Notes (“Notes”) Unsecured, subordinated, cumulative no
Slide 6: Notes summary
Notes summary For personal use only Issuer Tabcorp Holdings Limited Security Tabcorp Subordinated Notes (“Notes”) Issue price $100 per Note Maturity date 22 March 2037 (year 25), unless redeemed earlier First call date 22 March 2017 (year 5) Interest payments Floating rate, unfranked cas
Slide 7: Agenda
Agenda For personal use only 1 Summary of Tabcorp Subordinated Notes 2 About Tabcorp 3 Financial information 4 Key features of Notes and risks 5 Offer process 7
Slide 8: About Tabcorp
About Tabcorp For personal use only S&P/ASX 100 company with a market cap of approximately $2.1 billion1 One of Australia’s leading wagering, gaming and entertainment groups Unique portfolio of businesses with market leading positions Geographic diversification Operational diversification
Slide 9: Market leading businesses
Market leading businesses Tabcorp is listed on ASX (ASX: TAH) and operates market leading Wagering, Media & For personal use only International, Gaming and Keno businesses Media & Wagering Gaming Keno International Description • Totalizator and fixed odds wagering • Broadcasts thoroughbred, harness
Slide 10: Key strategies
Key strategies Strategies to continue leadership in retail and online gaming and wagering are in place For personal use only Expand footprint with new formats (eg. kiosks) Build on strength Deliver full suite of products in retail Lead with world-class self-service technology Expand Tracksid
Slide 11: Executing on growth opportunities
Executing on growth opportunities Tabcorp has completed a significant transformation with the demerger of its casino For personal use only business and is well positioned for growth Fixed odds betting on racing in retail NSW (launched January 2011) Significant growth in fixed odds racing revenue
Slide 12: New Victorian Wagering and Betting Licence
New Victorian Wagering and Betting Licence For personal use only Issued in December 2011 Licence for totalizator and fixed odds wagering Overview 50/50 joint venture with Victorian Racing Industry (previously 75/25) Minimum performance obligation 12 years, commencing August 2012 Licence pe
Slide 13: New Victorian Keno Licence
New Victorian Keno Licence For personal use only Expanded distribution into clubs and hotels Overview Licence includes simulated racing games Over 500 Victorian Keno venue sign ups to date Licence period 10 years, commencing April 2012 Licence $60 million paid in FY11 payment 13
Slide 14: Tabcorp Gaming Solutions
Tabcorp Gaming Solutions TGS builds upon Tabcorp’s core capabilities For personal use only Tabcorp Gaming Solutions product offering: Supply of EGMs for duration of contract Full EGM service and maintenance support Loyalty systems and promotions facilitation Account management with dedicat
Slide 15: Agenda
Agenda For personal use only 1 Summary of Tabcorp Subordinated Notes 2 About Tabcorp 3 Financial information 4 Key features of Notes and risks 5 Offer process 15
Slide 16: Defensive earnings and strong cashflows
Defensive earnings and strong cashflows For personal use only EBITDA1 Operating cashflows1 800 800 686 685 649 646 600 600 383 387 $m $m 400 400 200 200 0 0 FY2010 FY2011 1H12 FY2010 FY2011 1H12 Note: 1 Post mid-August 2012, the business structure, financial profile and financial position of the Tab
Slide 17: Tabcorp's 1H12 results
Tabcorp’s 1H12 results In 1H12, Tabcorp recorded c.$1,574 million in revenue and c.$383 million EBITDA For personal use only $m Wagering Change Media & Change Victorian Change Keno Change Group1,2 Change on pcp Int’l on pcp Gaming on pcp on pcp on pcp Revenues 849.4 2.8% 94.5 5.7% 562.0 1.0% 92.4 10
Slide 18: Summary of Tabcorp's financial profile
Summary of Tabcorp’s financial profile For personal use only Key capitalisation metrics1,2 Pro-forma as As at 31 Dec 2011 at 31 Dec 2011 Cash 163 163 Total assets 3,287 3,180 Interest bearing liabilities 967 1,244 Total liabilities 1,970 1,837 Total equity 1,317 1,343 Key earnings and cash flow metr
Slide 19: Capital management
Capital management For personal use only Tabcorp aims to maintain a diversified Debt maturity profile (before issue of Notes)2,3,4 debt portfolio that enables it to access 1,000 a range of debt markets to meet its ongoing business requirements and investment opportunities 800 The proceeds raised
Slide 20: Agenda
Agenda For personal use only 1 Summary of Tabcorp Subordinated Notes 2 About Tabcorp 3 Financial information 4 Key features of Notes and risks 5 Offer process 20
Slide 21: Key features of Notes
Key features of Notes For personal use only Interest payments Unfranked, cumulative, cash payments Floating rate, payable quarterly in arrears, subject to deferral Calculated as 3 month Bank Bill Rate + Margin Margin will be determined under the Bookbuild (expected range of 4.00% to 4.50% pa
Slide 22: Deferral of interest
Deferral of interest For personal use only Overview Tabcorp must defer an interest payment if a Deferral Event exists Deferred interest payments must be paid once a Deferral Event is no longer continuing In any event, deferred interest payments must be paid no later than 5 years from the date
Slide 23: Deferral considerations
Deferral considerations For personal use only Tabcorp’s track Tabcorp has a strong track record of prudent management of its balance sheet record “ Tabcorp’s capital management strategy If Tabcorp’s financial profile materially deteriorates such that it risks having an Interest Cover Ratio below t
Slide 24: Leverage Ratio analysis
Leverage Ratio analysis For personal use only Pro-forma Pro-forma historicals Leverage Ratio—6 months ended ($m) as at 31 Dec 2011 Gross Debt 1,244 Less outstanding balance of Notes (200) Relevant Gross Debt 1,044 Relevant Gross Debt (divided by two) 522 Relevant EBITDA 237 Leverage Ratio 2.2x Maxim
Slide 25: Interest Cover Ratio analysis
Interest Cover Ratio analysis For personal use only Pro-forma Pro-forma historicals Interest Cover Ratio—6 months ended ($m) as at 31 Dec 2011 Relevant EBITDA 237 Interest paid 57 Interest received (3) Net Interest Paid 54 Less interest paid on Notes (9) Relevant Net Interest Paid 45 Interest Cover
Slide 26: Comparison of Notes with Tabcorp Bonds and recent note issues
Comparison of Notes with Tabcorp Bonds and recent note issues For personal use only Woolworths Origin Energy Tabcorp Tabcorp Notes II1 Subordinated Notes1 Subordinated Notes Bonds Ranking Senior only to ordinary Senior only to ordinary Senior only to ordinary Senior, ranks equally shares sha
Slide 27: Key risks associated with Notes
Key risks associated with Notes These and other risks associated with Notes, the market and Tabcorp are discussed in For personal use only more detail in Section 5 of the Prospectus. All potential investors should review the risks outlined in the Prospectus and not rely on this presentation Change i
Slide 28: Key risks associated with Tabcorp
Key risks associated with Tabcorp These and other risks associated with Notes, the market and Tabcorp are discussed in For personal use only more detail in Section 5 of the Prospectus. All potential investors should review the risks outlined in the Prospectus and not rely on this presentation Regula
Slide 29: Agenda
Agenda For personal use only 1 Summary of Tabcorp Subordinated Notes 2 About Tabcorp 3 Financial information 4 Key features of Notes and risks 5 Offer process 29
Slide 30: Offer structure
Offer structure For personal use only Institutional Offer For Institutional investors who have been invited by UBS to bid for Notes under the Bookbuild Broker Firm Offer For Australian resident retail clients of Syndicate Brokers who have received a firm allocation under the Bookbuild 1.00% se
Slide 31: Indicative timetable
Indicative timetable For personal use only Key dates for the Offer1,2 Lodgement of Prospectus with ASIC 14 February 2012 Bookbuild to determine the Margin 21 February 2012 Announcement of the Margin and Opening Date of the Offer 22 February 2012 Closing Date of the Securityholder Offer and General O
Slide 32: Key contacts
Key contacts For personal use only Tabcorp Damien Johnston +61 3 9868 2583 (Chief Financial Officer) Joint Lead Managers Jacqui Vanzella +61 2 8232 4904 Scott Favaloro +61 3 9635 8072 Kelvin Barry +61 3 9242 6248 Barry Sharkey +61 2 9324 2926 Dean O’Hara +61 2 9324 2191 Allan O’Sullivan +61 2 8254 1
Slide 33: For personal use only
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