Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — H1 2022 Earnings Presentation
34 slides from Aristocrat Leisure's earnings presentation, May 19, 2022
Slide 1: Half Year 2022 Results Investor Presentation
Half Year 2022 Results Investor Presentation Aristocrat Leisure Limited 19 May 2022
Slide 2: Agenda
Agenda Strategic Overview Group Results and Financial Summary Operational Performance Outlook Q&A Appendices Bringing joy to life through the power of play
Slide 3: Strategic Overview
Strategic Overview Bringing joy to life through the power of play
Slide 4: Aristocrat's Growth Strategy
Aristocrat’s Growth Strategy Proven strategy driving sustainable growth and business resilience PORTFOLIO GROWTH +PERFORMANCE TAKE SHARE WHEREVER STRONG PRODUCT WE PLAY ACCELERATION INVESTMENT OPTIONS BEST PEOPLE INNOVATION LEADERSHIP + CAPABILITY INVESTMENT OPERATIONAL EXCELLENCE STRONG BALANCE GOO
Slide 5: Delivering our Strategy
Delivering our Strategy Top-performing portfolios drive strong growth ▪ Successfully executing our growth strategy delivers profitable organic growth in all segments Aristocrat Gaming ▪ Strong, above-industry growth across key segments and 1H22 Revenue 52% growing market share Leading games; 18 of T
Slide 6: Ukraine Response
Ukraine Response Protecting our people and business while managing business risks and minimising operational impacts ▪ Effective implementation of business continuity plan that has protected our people and business ▪ Focus on controllables and investing behind strategic drivers to accelerate Pixel U
Slide 7: Online RMG – Scaling in a key Strategic Adjacency
Online RMG – Scaling in a key Strategic Adjacency Online Real Money Gaming (RMG) business has been stood-up; strategy in place and execution is accelerating The Opportunity Our Ambition Our Priorities • Online RMG comprises i-Gaming • Medium term (5 years) targeting a • Roll out of i-Gaming products
Slide 8: Sustainability Strategy & Progress
Sustainability Strategy & Progress Ensuring a vibrant business and sustainable industries for all our stakeholders, long-term Business Product People & Pillars Operations Responsibility Community Responsible Gameplay (RG) Talent Governance (incl. Ethical Design) Inclusion Material Issues Climate Dat
Slide 9: Group Results & Financial Summary
Group Results & Financial Summary Bringing joy to life through the power of play
Slide 10: Group Results Summary
Group Results Summary Strong performance in all segments drives high quality, diverse earnings Six months to Six months to A$ million 31 March 2022 31 March 2021 Change % Normalised results ▪ Revenue up 20% in constant currency; reported revenue up 23% Operating revenue 2,745.4 2,229.7 5 23.1 EBITDA
Slide 11: Profit Reconciliation
Profit Reconciliation Strong performance in Gaming and growth in Pixel United; Strategic investment in growth strategy continues NPATA BRIDGE (A$M) 1 NPATA 1H21 411.6 Americas 174.7 ANZ 4.4 International Class III 28.7 Pixel United 9.5 Corporate Costs & Other (20.8) Group D&D Expenses (46.5) Foreign
Slide 12: Cash Flow
Cash Flow Strong cash generation and conversion; Operating Cash Flow $502 million Operating Cash Flow Six months to Six months to A$ million 31 March 2022 31 March 2021 Change % EBITDA 970.3 744.5 30.3 ▪ Increase in operating cash flow reflects strong business performance and cash generation Change
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 CAPITAL ALLOCATION FRAMEWORK ▪ Continued strong business performance in Aristocrat Gaming and Pixel United drives cash flow generat
Slide 14: Operational Performance
Operational Performance Bringing joy to life through the power of play
Slide 15: Aristocrat Gaming
Aristocrat Gaming Market-leading products driving strong growth in Gaming Operations; Growth in attractive adjacencies Six months to Six months to Summary Profit or Loss 31 March 2022 31 March 2021 Change % Total Gaming ▪ Strong revenue growth across Americas and ANZ with continued penetration of hi
Slide 16: Pixel United
Pixel United Strength of diversified portfolio drives continued bookings growth with key titles delivering strong profit growth Six months to Six months to Summary Profit or Loss 31 March 2022 31 March 2021 Change % Total Pixel United ▪ Grew share and retained #1 position in the Social Slots and Boo
Slide 17: Outlook
Outlook Bringing joy to life through the power of play
Slide 18: Outlook
Outlook Aristocrat plans for continued growth over the full year to 30 September 2022, assuming no material change in economic and industry conditions, reflecting the following factors: ▪ Continued market-leading positions in Gaming Operations, measured by the number of installed machines and fee pe
Slide 19: Q&A
Q&A Bringing joy to life through the power of play
Slide 20: Appendices
Appendices Bringing joy to life through the power of play
Slide 21: Design & Development (D&D) Investment
Design & Development (D&D) Investment Aristocrat’s #1 investment priority; Double-digit levels of investment maintained, supporting profitable growth D&D 11.8% 11.4% 10.9% 11.4% 11.2% as a % of revenue A$313m A$266m A$243m 133 91 89 D&D SPEND 175 154 180 (A$m) 1H20 1H21 1H22 Aristocrat Gaming Pixel
Slide 22: Recognition of our High-Performing Portfolio & Games
Recognition of our High-Performing Portfolio & Games Most powerful, industry-leading portfolio of high profile and well recognised titles April 2022 Game Performance Global Gaming Awards 2021 Q1 2022 Slot Managers Survey 2021 Slot Awards Database Awarded Land-Based Industry Supplier of the Year 3rd
Slide 23: Aristocrat Gaming - Overview
Aristocrat Gaming - Overview Strong exposure to the US consumer; Leader in North America Gaming Operations, ANZ & North America Outright Sales; Strong diversified game portfolio and technology partner A$1.4b 38% A$784m 61% 54.7% 7.6 pts 1H22 Revenue 1H22 Segment Profit 1H22 Margin Leader in North Am
Slide 24: Aristocrat Gaming - Detailed Results
Aristocrat Gaming - Detailed Results Growth in Americas, ANZ and adjacent segments; D&D investment drives long-term game performance and market- leading products Total Gaming Americas1 ANZ International Class III Summary Profit or Loss 31 March 2022 31 March 2021 31 March 2022 31 March 2021 31 March
Slide 25: Aristocrat Gaming - North America Adjacencies
Aristocrat Gaming - North America Adjacencies Successful entry into identified adjacent segments, growing our addressable market and share gain opportunities; Two new segments in FY22 - Historical Horse Racing in Kentucky and New York Lottery GAMING OPERATIONS OUTRIGHT SALES Total Units – Class III
Slide 26: Pixel United - Overview
Pixel United - Overview Strong & diversified portfolio; Exposed to high growth segments, strong profitable growth from continued portfolio diversification, targeted investment in Live Ops, features & content and User Acquisition US$953m 6% US$311m 3% 32.6% -1 pts 1H22 Revenue 1H22 Segment Profit 1H2
Slide 27: Pixel United - Portfolio Diversity
Pixel United - Portfolio Diversity BOOKINGS BY GAME 1 Diversified portfolio across genres, geographies and demographics $951m $945m 8% 9% 3% BOOKINGS BY SEGMENT $899m 6% 9% 8% 1H21 1H22 8% 15% 14% 12% 34% 35% Other Games 25% Mech Arena: 26% Robot ShowdownTM 26% EverMergeTM $899m $951m 51% 3% Lightni
Slide 28: Pixel United - Game Portfolio
Pixel United - Game Portfolio Diversified portfolio across new, scaling and franchise titles; Exposure to high yielding RPG, Strategy & Action genre; New genres with owned IP and Social Casino slot content leveraged from world-class design studios across Aristocrat Social Casino RPG, Strategy & Acti
Slide 29: Pixel United - Mobile Gaming Market
Pixel United - Mobile Gaming Market Large and growing Total Addressable Market (TAM) of ~US$98 billion globally; significant scope for further diversification within core and new segments (including Asia) Global Games Market1 Global Mobile (US$98b) Pixel United Key Games US$193b Other mobile segment
Slide 30: Pixel United - Lifecycle of a Game
Pixel United - Lifecycle of a Game Illustrative profile of the return on investment over time on User Acquisition investment into a game $3.00 Initial UA investment at Return in excess $2.50 T0 of UA Investment $2.00 LTV / CPI ($) Breakeven $1.50 Bookings = Cost per install $1.00 $0.50 $0.00 0 1 2 3
Slide 31: Strong and Growing Free Cash Flow
Strong and Growing Free Cash Flow Capacity for ongoing cash return including dividends and on-market share buy-backs Free cash flow1 (A$m) FCF in excess of dividends supports ongoing on-market share buy-backs while providing significant flexibility for growth Reduced dividends in FY2020 with no inte
Slide 32: Glossary of Terms
Glossary of Terms Gaming Mobile Gaming Americas US, Canada and Latin America Average bookings per Daily Active User. Total bookings in each period, divided ABPDAU by the number of days in that period, divided by the DAU during the period ANZ Australia and New Zealand Bookings Amount paid by customer
Slide 33: Glossary of Terms
Glossary of Terms Financial Real Money Gaming & Other Capex Capital expenditure Business-to-Business. That is, business activities carried out between two or B2B more companies without consumer contact D&D Design & Development investment Business-to-Consumer. That is, businesses carried out with the
Slide 34: Disclaimer
Disclaimer This document and any oral presentation presentation, any accompanying presentation and any No representations or warranties are made as to the accompanying it has been prepared in good faith, Other Materials must not be taken as a representation accuracy or reasonableness of such estimat