Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — Investor Presentation (May 2024)
38 slides from Aristocrat Leisure's investor presentation, May 16, 2024
Slide 1: Half-Year 2024 Results Investor Presentation
Half-Year 2024 Results Investor Presentation 16 May 2024 Bringing joy to life through the power of play
Slide 2: 1H24 Results Highlights
1H24 Results Highlights Outstanding Revenue Segment 1H24 $3.3bn +6% Profit Momentum across the portfolio, with encouraging Continued strength & consistent execution from $1.5bn +15% online RMG progress Aristocrat Gaming Strong Gaming Operations performance with cost optimisation at Pixel United NPAT
Slide 3: Strategy Overview
Strategy Overview Half-Year 2024 Results – Investor Presentation
Slide 4: Group growth strategy: strategic review of Casual & Mid-core gaming assets
Group growth strategy Strategic review of Casual & Mid-core gaming assets • Track record of successfully acquiring and integrating businesses • Big Fish Games and Plarium Global have created value by generating growth and bringing strategic capabilities to Aristocrat • Our opportunities to lean into
Slide 5: Group growth strategy
Group growth strategy To deliver superior, long-term profit growth Investing & Innovating Growing & Distributing Differentiating Enablers • Create the world’s greatest gaming • Market share growth wherever we • Leading financial fundamentals content & brands play, including online RMG • Outstanding
Slide 6: Established track record of strong financial performance
Established track record of strong financial performance Consistent growth underpinned by diversified model and recurring revenues Revenue (A$bn) Revenue diversification1 (A$bn) 72 +12% CAGR 65 3.5 2.8 6.3 5.6 2.6 2.2 4.4 4.7 +6% 2.3 1.7 4.1 1.8 3.6 3.3 2.5 2.6 2.7 1.8 2.4 1.3 1.3 FY18 FY19 FY20 FY2
Slide 7: Sustainability strategy & progress
Sustainability strategy & progress Ensuring a vibrant business and sustainable industries for all our stakeholders over the long-term Product Responsibility Business Operations People & Community Be a global leader in Responsible Align with ASX 20 peers on climate, lead in Be recognised as an employ
Slide 8: Investment proposition
Investment proposition Established and trusted industry leader with proven ability to deliver sustainable, long-term profit growth Large & Growing Markets TAM US$230bn1 Defensive Growth TAM US$79bn4 Cyclical Growth TAM US$100bn5 High Growth Content & Creativity World-class content that resonates acr
Slide 9: Group Results & Financial Summary
Group Results & Financial Summary Half-Year 2024 Results – Investor Presentation
Slide 10: Group results summary
Group results summary Revenue growth driven by Aristocrat Gaming, with operating leverage pushing profits higher Six months to Six months to A$ million 31 March 2023 31 March 2024 Change % Normalised results • Revenue up 6% (4% in constant currency) Operating revenue 3,080.4 3,269.6 ▲ 6.1 • Revenue
Slide 11: Profit reconciliation
Profit reconciliation Strong profit growth across the portfolio partially offset by increased investment to fund future growth NPATA BRIDGE (A$m) 1 NPATA 1H23 658.8 Aristocrat Gaming 54.6 Pixel United 49.6 Aristocrat Interactive 15.2 Corporate Costs & Other (10.5) Group D&D Expenses (33.2) Net Inter
Slide 12: Cash flow
Cash flow Strong cash generation; Operating cash flow of $656m Six months to Six months to A$ million 31 March 2023 31 March 2024 Change % • Higher operating cash flow reflects: EBITDA 1,016.8 1,195.7 17.6 o continued strong business performance and underlying cash flow Change in net working capital
Slide 13: Capital allocation framework, balance sheet and liquidity
Capital allocation framework, balance sheet and liquidity Capital allocation framework supports Aristocrat’s long-term growth strategy and maximises shareholder returns • Free cash flow funds growth investment (organic and inorganic) Investment drives future growth • Cash returns to shareholders via
Slide 14: Fully funding strategic organic growth
Fully funding strategic organic growth Ongoing high levels of investment to support growth, with discipline across D&D and UA to optimise returns Total spend Total spend as a % of 34% 31% 29% 31% as a % of 29% 29% 29% 32% 30% revenue revenue 1,021 1,922 969 901 1,612 805 807 280 453 248 1,400 1,452
Slide 15: Design & Development (D&D) investment
Design & Development (D&D) investment Industry-leading D&D investment maintained, with disciplined approach supporting a return to 11-12% over medium-term D&D as a % of 11.4% 12.5% 12.1% 13.9% 13.0% revenue 448 425 372 67 50 354 313 36 42 28 174 171 D&D spend 145 141 (A$m) 133 185 207 204 152 177 1H
Slide 16: Operational Performance
Operational Performance Half-Year 2024 Results – Investor Presentation
Slide 17: Aristocrat Gaming
Aristocrat Gaming Revenue growth supported by diversified portfolio, with positive operating leverage in Rest of World (RoW) Six months to Six months to Change Summary Profit or Loss 31 March 2023 31 March 2024 % • Revenue growth driven by continued success at taking market Aristocrat Gaming share a
Slide 18: Pixel United
Pixel United Increasing market share in key segments while optimising costs in response to changes in mobile gaming Six months to Six months to Summary Profit or Loss 31 March 2023 31 March 2024 Change % • Revenues 2% lower compared to global games growth of 4%1 Pixel United • Social Casino franchis
Slide 19: User Acquisition (UA) Investment at Pixel United
User Acquisition (UA) Investment at Pixel United UA optimisation efforts and product investments are driving improved returns • Seeing improved returns across evergreen titles without top-line impact reflecting: UA as a % of 27.5% 24.7% 26.9% 22.1% 22.2% o structural change to mobile marketing post
Slide 20: Aristocrat Interactive
Aristocrat Interactive Strong revenue and profit performance by CXS; iGaming’s market entry gathering momentum Six months to Six months to Summary Profit or Loss 31 March 2023 31 March 2024 Change % Aristocrat Interactive Customer Experience Solutions (CXS): Revenue US$m 48.4 71.9 ▲ 48.6 • 31% reven
Slide 21: Aristocrat Interactive: three distinct and connected businesses
Aristocrat Interactive Three distinct and connected businesses iLottery Content Gaming Systems Best in Class Creation, Distribution & Systems Infrastructure iLottery Solutions Aggregation of Content Supporting High Value Segments • Global iLottery leader • Content creation • Land-based casino system
Slide 22: Update on NeoGames Integration
Aristocrat Interactive Update on NeoGames Integration "Welcome Week" for new employees Employee onboarding Proposed acquisition Final regulatory approvals Development of year one initiatives announced received Monitoring integration risks Management Structure Pre-completion Pre-announcement activiti
Slide 23: Outlook
Outlook Half-Year 2024 Results – Investor Presentation
Slide 24: Outlook
Outlook Aristocrat expects to deliver NPATA growth over the full year to 30 September 2024 (constant currency basis), reflecting: Continued strong market share, revenue and profit growth from Aristocrat Gaming Disciplined execution in Pixel United with a focus on market share and investment efficien
Slide 25: Q&A
Q&A Half-Year 2024 Results – Investor Presentation
Slide 26: Appendices
Appendices Half-Year 2024 Results – Investor Presentation
Slide 27: FY24 modelling inputs
FY24 modelling inputs NeoGames (unchanged from previous guidance): • NeoGames is expected to be accretive to EPSA in the first full year of ownership with a broadly neutral impact on NPATA in FY24 after funding considerations Operating items: • D&D investment expected to be in the range of 12-13% of
Slide 28: Group results summary
Group results summary Group Performance Reconciliation of statutory profit to NPATA Reported Constant Six months to Six months to Reported Currency Currency Currency A$ million 31 March 2024 31 March 2023 Six months to Six months to Statutory profit as reported in the financial statements 711.3 653.
Slide 29: Aristocrat Gaming
Aristocrat Gaming Gaming (A$m) North America (US$m) Rest of World (A$m)1 Summary of Performance 31 March 2024 31 March 2023 31 March 2024 31 March 2023 31 March 2024 31 March 2023 Revenue 1,826.1 1,686.2 950.2 898.5 376.7 353.3 EBITDA 1,120.6 989.3 612.8 569.9 186.2 144.3 Depreciation and Amortisati
Slide 30: Pixel United
Pixel United Pixel United (US$m) Pixel United (US$m) Summary of Performance 31 March 2024 31 March 2023 Bookings 31 March 2024 31 March 2023 Bookings 877.2 885.5 Bookings by Genre Revenue 875.0 891.3 Social Casino 496.3 484.5 EBITDA 317.9 273.6 RPG, Strategy and Action 283.7 296.4 Depreciation and A
Slide 31: Aristocrat Interactive
Aristocrat Interactive Interactive (US$m) Summary of Performance 31 March 2024 31 March 2023 Revenue 71.9 48.4 EBITDA 20.4 6.6 Depreciation and Amortisation (0.4) (0.1) Profit 20.0 6.5 Profit Margin % 27.8 13.4 Amortisation of acquired intangibles (4.6) (0.2) Profit after amortisation of acquired in
Slide 32: Aristocrat Gaming - Overview
Aristocrat Gaming - Overview Leader in North America Gaming Operations, ANZ & North America Outright Sales; Strong diversified game portfolio A$1.8bn 8.3% A$1.0bn 10.6% 54.8% 1.1 pts 1H24 Revenue 1H24 Profit 1H24 Margin Largest footprint in North America Gaming Operations 67,212 US$55.50 #1 performi
Slide 33: Pixel United - Overview
Pixel United - Overview Global publisher with strong & diversified portfolio; Exposed to attractive segments and market-leading share in Social Slots; Targeted investment in Live Ops, features, content and UA to drive long-term, profitable growth US$875m 1.8% US$307m 16.8% 35.1% 5.6 pts 1H24 Revenue
Slide 34: Aristocrat Interactive - Overview
Aristocrat Interactive - Overview Aristocrat Interactive delivers content and technology solutions for online RMG and land-based casino systems US$71.9m 48.6% US$20m 207.7% 27.8% 14.4 pts 1H24 Revenue 1H24 Profit 1H24 Margin High performing game portfolio rollout accelerating Revenue Top 3 20 383 in
Slide 35: Glossary of terms
Glossary of terms Gaming Mobile Gaming Established, regulated markets outside traditional markets where Aristocrat Average bookings per Daily Active User. Total bookings in each period, divided by Adjacencies ABPDAU competes to take share by bringing innovation in games and technology the number of
Slide 36: Glossary of terms
Glossary of terms Online Real Money Gaming Financial & Other Capex Capital expenditure Aristocrat Interactive Aristocrat’s online RMG business (iGaming and CXS) D&A Depreciation and amortisation Business-to-Business. That is, business activities carried out between two or B2B D&D Design & Developmen
Slide 37: Disclaimer
Disclaimer This document and any oral presentation Therefore, there can be no assurance that such and as such may be inconsistent given differing accompanying it has been prepared in good faith, forecasts, forward looking statements or underlying assumptions and sources. We have not however, no expr
Slide 38: Aristocrat
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