Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — H1 2021 Earnings Presentation
31 slides from Aristocrat Leisure's earnings presentation, May 24, 2021
Slide 1: Results Presentation for the six months to 31 March 2021
Aristocrat Leisure Limited 24 May 2021 For personal use only Results Presentation For the six months to 31 March 2021
Slide 2: Agenda
AGENDA For personal use only 1 Company Overview 2 Group Results and Financial Summary 3 Operational Performance 4 Results Summary and Outlook 5 Q&A 6 Appendices 2
Slide 3: Company Overview
For personal use only n y OVERVIEW an 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 For personal use only PORTFOLIO GROWTH + PERFORMANCE TAKE SHARE WHEREVER STRONG PRODUCT WE PLAY ACCELERATION INVESTMENT OPTIONS BEST PEOPLE INNOVATION LEADERSHIP + CAPABILITY INVESTMENT OPERATIONAL EXCELL
Slide 5: Trusted and Leading Gaming Entertainment and Technology Company
TRUSTED AND LEADING GAMING ENTERTAINMENT AND TECHNOLOGY COMPANY Converting opportunity into momentum; investments over the past year delivering results now and for the future For personal use only 46% An S&P/ASX 20 Index company GAMING Strengthening game portfolio Successfully executing refreshe
Slide 6: Priorities for Current Market Conditions
PRIORITIES FOR CURRENT MARKET CONDITIONS Delivering on strategic decisions made in response to volatile and changing market landscape For personal use only Safety and Wellbeing 8.4 Best talent PEOPLE Engagement Score - Maintaining FIRST #1 priority above Technology Industry Leadership development, D
Slide 7: Sustainability Progress and Priorities
SUSTAINABILITY PROGRESS AND PRIORITIES Material Issues assessment completed, with input from a wide range of stakeholders. Insights will be applied to refine priorities For personal use only going forward with comprehensive FY21 disclosures to be published in December Digital player empowerment in
Slide 8: Group Results and Financial Summary
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Slide 9: Group Results Summary
GROUP RESULTS SUMMARY Diversified, high-quality result reflects business resilience and successful execution of strategy For personal use only Six months to Six months to A$ million 31 March 2021 31 March 2020 Change % Normalised results Operating revenue 2,229.7 2,251.8 (1.0) Revenue up 11% in
Slide 10: Profit Reconciliation
PROFIT RECONCILIATION Strategic diversification into Digital enhances group results For personal use only 1 NPATA bridge (A$m) 10 1. Movements above are reported on a constant currency basis and are tax effected at the prior year effective tax rate. Numbers have been normalised to exclude significan
Slide 11: Cash Flow
CASH FLOW Strong cash generation; normalised operating cash flow of $425 million For personal use only Operating Cash Flow Six months to Six months to A$ million 31 March 2021 31 March 2020 Change % EBITDA 750.3 707.6 6.0 Strengthening investment in working capital Change in net working capital (1
Slide 12: Capital Investment Priorities, Balance Sheet and Liquidity
CAPITAL INVESTMENT PRIORITIES, BALANCE SHEET AND LIQUIDITY Aristocrat’s capital allocation priorities support our long-term growth strategy, while maximising shareholder returns For personal use only Investment Priorities Key Metrics 1H21 1H20 1 Organic Capital Investment D&D Investment A$243m A$266
Slide 13: Operational Performance
For personal use only nh OPERAT PERFORMANCE BRINGING JOY TO LIFE THROUGH THE POWER OF PLAY
Slide 14: Aristocrat Gaming
ARISTOCRAT GAMING Strong customer value proposition in reopened markets, top performing games and hardware - only scale player consistently For personal use only exceeding house average Six months to 31 March 2021 31 March 2020 Change % Summary Profit or Loss Americas and ANZ revenue grew in const
Slide 15: Aristocrat Digital
ARISTOCRAT DIGITAL Above-category bookings growth of 29% and strong profit growth from continued portfolio diversification, targeted investment in For personal use only Live Ops, features, slot content and continued strong User Acquisition (UA) investment Six months to 31 March 2021 31 March 2020 Ch
Slide 16: Results Summary and Outlook
For personal use only AS, uf ESULTS SUMMARY © OUTLOOK BRINGING JOY TO LIFE THROUGH THE POWER OF PLAY
Slide 17: 1H21 Results Summary
1H21 RESULTS SUMMARY 12% NPATA growth with margin expansion across Digital and key Gaming Segments after sustained market-leading investments. For personal use only Balance sheet strength and enhanced liquidity with strong normalised operating cash flow of $425 million Aristocrat Gaming Strong rec
Slide 18: Outlook
OUTLOOK Aristocrat plans for strong growth over the 2021 full fiscal year assuming no material change in economic and industry For personal use only conditions, reflecting: Enhanced market-leading positions in Gaming Operations, measured by the number of machines that are operating and game perfor
Slide 19: Q&A
For personal use only nh BRINGING JOY TO LIFE THROUGH THE POWER OF PLAY
Slide 20: Appendices
For personal use only n ES BRINGING JOY TO LIFE THROUGH THE POWER OF PLAY
Slide 21: Appendix: Design & Development (D&D) Investment
APPENDIX: DESIGN & DEVELOPMENT (D&D) INVESTMENT Aristocrat’s #1 investment priority; double-digit levels of investment maintained, supporting our ability to grow share For personal use only D&D 11.5% 11.4% 12.0% 11.8% 10.9% as a % of revenue 500.4 497.9 413.6 D&D SPEND (A$m) 265.9 242.7 FY18 FY19 FY
Slide 22: Appendix: Aristocrat Gaming at a Glance
APPENDIX: ARISTOCRAT GAMING AT A GLANCE Serving more than 300 licensed jurisdictions with a diverse portfolio, including Electronic Gaming Machines, Casino For personal use only Management Systems and connected products and services >$1bn 50,554 Leading active installed base Class II US$55 1 Gaming
Slide 23: Appendix: Aristocrat Gaming Detailed Results
APPENDIX: ARISTOCRAT GAMING DETAILED RESULTS Strong recovery in Americas and ANZ in the period, despite continued impacts of COVID-19 venue closures and social For personal use only distancing measures. D&D investment driving long term game performance and market-leading position 1 Total Gaming Amer
Slide 24: Appendix: Leading Portfolio of High-Performing Games
APPENDIX: LEADING PORTFOLIO OF HIGH-PERFORMING GAMES Most powerful, industry-leading portfolio of high profile and well recognised titles For personal use only 2020 Slot Awards Q4 2020 Slot Managers Survey Game Performance Report March 2021 2020 Slot Survey Gaming/ Digital - North America Gaming - N
Slide 25: Appendix: Aristocrat Gaming North American Adjacencies
APPENDIX: ARISTOCRAT GAMING NORTH AMERICAN ADJACENCIES Strong market segmentation and investment leading to successful entry into a number of identified adjacent markets, For personal use only growing our addressable market and share gain opportunities Gaming Operations Outright Sales Class II Gamin
Slide 26: Appendix: Aristocrat Digital at a Glance
APPENDIX: ARISTOCRAT DIGITAL AT A GLANCE Aristocrat’s #1 investment priority; double-digit levels of investment maintained, supporting our ability to grow share For personal use only $899m >28% 6.7m 9 1H21 vs 1H20 1H21 Bookings DAU Evergreen Titles Bookings Growth $301m 72c $439m $230m 1H21 Social C
Slide 27: Appendix: Aristocrat Digital Portfolio Management Drives Sustainable Growth
APPENDIX: ARISTOCRAT DIGITAL PORTFOLIO MANAGEMENT DRIVES SUSTAINABLE GROWTH Portfolio continues to diversify across genres, geographies and demographics. New titles scaling, whilst supporting For personal use only established franchise titles Bookings by segment Bookings by game1 $915m $899m $698m T
Slide 28: Appendix: Aristocrat Digital Portfolio Summary
APPENDIX: ARISTOCRAT DIGITAL PORTFOLIO SUMMARY We continue to expand and diversify our portfolio into new, high value segments while in parallel, we create additional player For personal use only value within established franchises through a targeted strategy of best-in-class Live Ops and feature de
Slide 29: Appendix: Aristocrat Digital Strategy
APPENDIX: ARISTOCRAT DIGITAL STRATEGY A focused strategy to drive portfolio growth by leveraging our scale and delivering great content, while maximising efficiencies For personal use only Market Intelligence & 1 2 Creativity & Innovation Portfolio Planning • Market intimacy • World class talent • 3
Slide 30: Appendix: Aristocrat Digital Market Segmentation by Genre
APPENDIX: ARISTOCRAT DIGITAL MARKET SEGMENTATION BY GENRE Digital offers access to a fast growing and large total addressable market (TAM) of US$78 billion (worldwide); providing significant growth opportunities in further diversification within core and new segments (including Asia) For personal us
Slide 31: Disclaimer
DISCLAIMER This document and any oral presentation accompanying it has been prepared in good faith, however, no express or implied representation or warranty is given as to the accuracy or completeness of the information in this document, in any accompanying presentation or in any other written or o