Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — Merger or Acquisition (November 2017)
33 slides from Aristocrat Leisure's merger presentation, Nov 30, 2017
Slide 1: Acquisition of Big Fish
Aristocrat Limited Acquisition of Big Fish 30 November 2017 For personal use only
Slide 2: Disclaimer
Disclaimer For personal use only This document and any oral presentation accompanying it has been prepared in good faith, however, no express or implied warranty is given as to the accuracy or completeness of the information in this document or the accompanying presentation. All statutory representa
Slide 3: Contents
For personal use only Contents 1 Transaction overview 2 Overview of Big Fish 3 Strategic rationale 4 Funding 5 Conclusion A Appendix
Slide 4: Transaction overview
For personal use only Section 1 Transaction overview
Slide 5: Key highlights
Key highlights Aristocrat has entered into a binding agreement to purchase Big Fish for US$990 million. Big Fish is one of the For personal use only world’s largest developers of Social Casino, Social Gaming and Premium Paid games Transforms Aristocrat’s Digital business to create the 2nd largest
Slide 6: Transaction summary
Transaction summary For personal use only • Aristocrat has entered into a binding agreement to acquire 100% of Big Fish for total consideration of US$990 million cash (A$1,320 million(1)), subject to customary completion adjustments Transaction overview • Big Fish is one of the world’s largest devel
Slide 7: Overview of Big Fish
For personal use only Section 2 Overview of Big Fish
Slide 8: Overview of Big Fish
Overview of Big Fish Big Fish is a leading global publisher of free-to-play games for mobile devices and desktop For personal use only Business overview Segments • Big Fish operates across the Social Casino, Social Gaming and Key current games Adj. Revenue(4) contribution Premium Paid segments(1) (L
Slide 9: Business model overview
Business model overview Big Fish's capabilities and experience with developing digital-first content and meta-game based applications are For personal use only key advantages Successful business model Delivering… Digital slot games that are not 1 In-house digital-first content creation dependent o
Slide 10: Big Fish has a track record of industry leading user monetisation
Big Fish has a track record of industry leading user monetisation Big Fish Casino, Big Fish's flagship Social Casino application, achieves best in class monetisation rates through For personal use only high quality digital-first content and meta-game features Big Fish Casino ARPDAU vs. Peers (US$)(1
Slide 11: Big Fish performance over time
Big Fish performance over time Big Fish has built a large and loyal base of players over time across various key titles, driving significant growth in For personal use only users, bookings and earnings Daily and Monthly Active Users(1) (m) Adjusted Revenue (US$m) Adjusted EBITDA (US$m) CAGR: 38%(2)
Slide 12: Strategic rationale
For personal use only Section 3 Strategic rationale
Slide 13: Strong strategic rationale
Strong strategic rationale The acquisition of Big Fish is a strategically and financially compelling transaction For personal use only 1 Transforms Aristocrat’s Digital business, creating the 2nd largest Social Casino 2 Provides Aristocrat with digital-first content creation and meta-game capabi
Slide 14: Transformation of Aristocrat's Digital business
1 Transformation of Aristocrat's Digital business… The acquisition of Big Fish is transformative for Aristocrat's Digital business, increasing overall Digital revenues by For personal use only 94% and increasing Digital revenue contribution to 38% Significant expansion of Digital business Aristocrat
Slide 15: Creating the 2nd largest Social Casino publisher by revenue
1 …Creating the 2nd largest Social Casino publisher by revenue The combined business will become the #2 Social Casino publisher globally, significantly increasing the scale of For personal use only the business and capacity to optimise user acquisition spend Top Social Casino game publishers (Sep-17
Slide 16: Enhanced Digital and Social Casino capability
2 Enhanced Digital and Social Casino capability… Big Fish provides Aristocrat with digital-first content creation capability in Social Casino and expertise in meta-game For personal use only based applications through high quality in-house studios and a network of third party development studios Bui
Slide 17: Significantly increasing the Social Casino addressable market
2 …Significantly increasing the Social Casino addressable market Access to the large and fast growing digital-first content and meta-game based sub-segments increases For personal use only Aristocrat's addressable market in Social Casino by c.6x Global Social Casino market by segment (US$bn) Total m
Slide 18: Materially expands the Social Gaming business
3 Materially expands the Social Gaming business The acquisition provides the Digital business with greater penetration into the Social Gaming market, particularly For personal use only into the Casual and Cards segments An acquisition of Big Fish significantly increases Aristocrat's penetration of t
Slide 19: Stronger penetration into new game genres
3 …With stronger penetration into new game genres Big Fish's diversified portfolio is highly complementary to Aristocrat and Plarium's content and fills in the "white For personal use only space" in targeted Digital sub-segments and game genres Complementary application portfolio Aristocrat / Combin
Slide 20: Deep game development talent pool and strong cultural alignment
4 Deep game development talent pool and strong cultural alignment Big Fish has a deeply experienced game development talent pool with demonstrated track record of success For personal use only through innovation Deep game development talent pool and leadership team who have significantly grown the
Slide 21: Financially attractive
5 Financially attractive The acquisition of Big Fish is expected be EPSA accretive in the first full year of ownership (pre-synergies) and will For personal use only significantly increase the proportion of Aristocrat's recurring revenues Earnings accretive The transaction is expected to be EPSA a
Slide 22: Platform for growth
6 Platform for growth Both the social casino and broader mobile games markets are forecast to continue to grow rapidly, supported by For personal use only monetisation and gameplay improvements, broadening appeal and strengthening retention rates Social casino market forecasts (US$bn, Dec y/e)(1) Mo
Slide 23: Attractive pipeline of new apps to continue to drive growth
6 …Attractive pipeline of new apps to continue to drive growth Big Fish has an attractive pipeline of new games that are expected to continue to scale and drive strong growth in For personal use only the business Existing core apps Vegas Jackpot Big Fish Fairway Fairway Gummy Cooking Chef Party Magi
Slide 24: Funding
For personal use only Section 4 Funding
Slide 25: Acquisition funding details
Acquisition funding details Aristocrat will fund the acquisition via a US$890m TLB as well as existing cash For personal use only Acquisition funding details Sources and uses Sources US$m A$m Purchase • Upfront cash consideration of US$990 million Existing cash 125 167 price (A$1,320 million) Increm
Slide 26: Conclusion
For personal use only Section 5 Conclusion
Slide 27: Recap of key highlights
Recap of key highlights Aristocrat has entered into a binding agreement to purchase Big Fish for US$990 million. Big Fish is one of the For personal use only world’s largest developers of Social Casino, Social Gaming and Premium Paid games Transforms Aristocrat’s Digital business to create the 2nd
Slide 28: Q&A
For personal use only Q&A 27 27
Slide 29: Appendix A: Glossary of terms
For personal use only Appendix A Glossary of terms
Slide 30: Glossary of terms
Glossary of terms For personal use only A$ Australian dollar FTE Full-time equivalent Addressable Size of the market available, by revenue FTP Free-To-Play market Revenue net of platform fees and adjusted to include the change in KPI Key performance indicator Adjusted deferred revenue (net of change
Slide 31: Appendix B: Reconciliation of reported EBITDA to Adjusted EBITDA
For personal use only Appendix B Reconciliation of reported EBITDA to Adjusted EBITDA
Slide 32: EBITDA reconciliation to public filings
EBITDA reconciliation to public filings For personal use only US$m, Dec-YE Sep-17 LTM Reported EBITDA(1) 81 Corporate allocated expenses 3 GAAP to bookings adjustment(2) 0 Purchase Price Adjustment reversal(3) (1) Adjusted EBITDA 83 Notes: (1) EBITDA as reported in Churchill Downs' public SEC filing
Slide 33: For personal use only
or personal use onh Q ARISTOCRAT
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