Tabcorp Holdings Limited · ASX:TAH
Tabcorp — FY2022 Earnings Presentation
32 slides from Tabcorp's earnings presentation, Aug 24, 2022
Slide 1: Tabcorp full year results presentation announcement
For personal use only 24 August 2022 ASX Market Announcements Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 Tabcorp full year results presentation Attached is the presentation regarding Tabcorp Holdings Limited’s (Tabcorp’s) results for the financial year ended 30 June 2022 to be p
Slide 2: Full Year Results - Year ended 30 June 2022
For personal use only FULL YEAR RESULTS YEAR ENDED 30 JUNE 2022 24 AUGUST 2022 A B N 6 6 0 6 3 7 80 7 09
Slide 3: The Line Up
THE LINE UP For personal use only 03 Overview 05 Strategic update 13 FY22 Financial results 20 Capital 22 Current trading and outlook 23 Appendices 2
Slide 4: Overview
OVERVIEW For personal use only • Demerger of Lotteries and Keno delivered; effective 1 June 2022 • This presentation provides: 1. An update on our strategy and FY23 priorities 2. The following financial disclosures to help investors understand the FY22 results - FY22 statutory results - including 11
Slide 5: Overview - FY22 Financial Summary
OVERVIEW - FY22 FINANCIAL SUMMARY For personal use only Group Revenue Group EBITDA1 Pro forma EBITDA2 CONTINUING $2,373m $382m $361m OPERATIONS FY21: $2,480m FY21: $487m FY21: $464m Statutory NPAT FY22 Dividend Net Debt4 STATUTORY $6,776m 13.0cps $20m FY21: $269m 80% payout ratio3 1. References to E
Slide 6: Strategic Update - A New Tabcorp
STRATEGIC UPDATE For personal use only A NEW TABCORP • Working at pace to transform Tabcorp to be a more competitive and DIGITAL growing business, operating in a level playing field market • We have a clear focus on growing our customer base and creating products and experiences that customers love
Slide 7: Our 3-Year Transformation and Growth Strategy
STRATEGIC UPDATE Our 3-Year Transformation and Growth Strategy For personal use only OUR OUR PRODUCTS, SERVICES & OUR COMMITMENT PEOPLE & CULTURE TECHNOLOGY TO CUSTOMER Will be fundamental to… GROWTH COMPETITIVENESS FINANCIAL STRENGTH 6
Slide 8: What we have done so far - People & Culture
STRATEGIC UPDATE – What we have done so far For personal use only OUR PEOPLE & CULTURE Will be fundamental to… GROWTH COMPETITIVENESS FINANCIAL STRENGTH Transform our culture to be customer obsessed, bold and unified to win ✓ Proactive and modern Board and Executive Leadership Team ✓ Significant cap
Slide 9: What we have done so far - Products, Services & Technology
STRATEGIC UPDATE – What we have done so far For personal use only OUR PRODUCTS, SERVICES & TECHNOLOGY Will be fundamental to… GROWTH COMPETITIVENESS FINANCIAL STRENGTH Create products customers love and focus our marketing spend to drive digital growth Change how we use our venue and media assets to
Slide 10: New TAB App
STRATEGIC UPDATE – What we have done so far NEW TAB APP – in market with ~1,700 customers and the feedback has been positive1 For personal use only The new TAB App is faster, easier and different. The App experience will continue to expand and is the foundation of our strategy to increase market sha
Slide 11: Level playing field structural reforms
STRATEGIC UPDATE – What we have done so far For personal use only OUR PRODUCTS, SERVICES & TECHNOLOGY Will be fundamental to… GROWTH COMPETITIVENESS FINANCIAL STRENGTH Advocate for structural reforms that will ensure online competitors pay the same wagering taxes and fees as Tabcorp A level playing
Slide 12: B2B/B2G monitoring and integrity services; eBet sale
STRATEGIC UPDATE – What we have done so far For personal use only OUR PRODUCTS, SERVICES & TECHNOLOGY Will be fundamental to… GROWTH COMPETITIVENESS FINANCIAL STRENGTH Pivot toward B2B/B2G monitoring and integrity services provider to government and highly regulated industries ✓ Following a strategi
Slide 13: Our Commitment to Customer
STRATEGIC UPDATE – What we have done so far For personal use only OUR COMMITMENT TO CUSTOMER Will be fundamental to… GROWTH COMPETITIVENESS FINANCIAL STRENGTH We are a gambling entertainment business. We must look after our customers and deliver our products safely ✓ We aim to remain a leader in hel
Slide 14: FY22 Results
For personal use only FY22 RESULTS
Slide 15: FY22 Group Results
FY22 GROUP RESULTS1 For personal use only CHANGE $M FY22 FY21 $ % Revenues 2,373.3 2,479.9 (106.6) (4.3%) Variable contribution 981.2 1,055.6 (74.4) (7.0%) Operating expenses (599.6) (568.4) (31.2) 5.5% EBITDA from continuing operations before significant items 381.6 487.2 (105.6) (21.7%) D&A (286.4
Slide 16: Group EBITDA
GROUP EBITDA ($M) Continuing operations – a line in the sand For personal use only • Reinstatement of venue fees from 1 Dec 2021 • COVID-19 impacts • Investment in • Technology spend generosities • Advertising • Weather impacts • Partially offset by 3S benefits ($18m) 1 1. Net additional stand-alone
Slide 17: Wagering and Media
$M FY22 FY21 CHANGE WAGERING AND MEDIA ($M) Wagering revenue Media and International revenue1,2 1,727.5 454.4 1,956.8 341.2 (11.7%) 33.2% Results heavily impacted by first half retail closures in largest markets Revenues 2,181.9 2,298.0 (5.1%) (NSW and VIC) For personal use only Variable contributio
Slide 18: Wagering and Media - COVID-19 Impacts
WAGERING AND MEDIA COVID-19 Impacts For personal use only WAGERING AND MEDIA WAGERING VENUES TURNOVER Weeks fully or partially impacted by lockdowns FY22 turnover as a proportion of FY21 – cash and digital-in-venue 100% 16 80% 60% FY20 FY21 FY22 21 16 40% 12 2 2 2 2 2 1 2 1 20% 13 13 12 13 11 12 10
Slide 19: Wagering and Media - Metrics
WAGERING AND MEDIA Metrics For personal use only ACTIVE DIGITAL CUSTOMERS1 FY22 DIGITAL REVENUE MARKET SHARE2,3 783,000 24.9% YIELD (ALL PRODUCTS)4 VARIABLE CONTRIBUTION Generosities increased in FY22, more than offsetting the small increase in gross yield Diversity of earnings reduced impacts of re
Slide 20: Gaming Services
$M FY22 FY21 CHANGE GAMING SERVICES ($M) MAX Venue Services 119.3 99.4 20.0% MAX Regulatory Services 73.6 83.8 (12.2%) Revenues 192.9 183.2 5.3% • First half heavily impacted by COVID-19 given significant fee relief provided Variable contribution 182.3 172.0 6.0% For personal use only to customers O
Slide 21: Capital - Strong balance sheet with flexibility and optionality
CAPITAL Strong balance sheet with flexibility and optionality For personal use only FY23 expected CAPITAL EXPENDITURE ($M) FY22 NET DEBT FY22 NET DEBT / EBITDA material payments: Growth Maintain Sustainability & Risk • Final Dividend 134 125 19 63 14 66 $20m 0.5x • Queensland payments 1; − Legal set
Slide 22: Cost Management
COST MANAGEMENT For personal use only 3S GENESIS launched Tabcorp’s continuing businesses Financial strength and commercial rigor contributed >75% of program savings FY22 FY23 $23m 3% - 4% EBIT savings from continuing operations 1 Cost growth on FY22 pro forma, 2H skew Variable Operating Depreciatio
Slide 23: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK For personal use only • Our strong start reflects our sense of urgency to turn Tabcorp into a more competitive and growing company • July digital revenue market share 25%1,2 • July group revenue3 +14.6% vs pcp, Wagering and Media revenue +11.2% vs pcp (noting the pcp had
Slide 24: Appendices
For personal use only APPENDICES 23
Slide 25: Pro Forma Group and Business Results
PRO FORMA GROUP AND BUSINESS RESULTS1 WAGERING AND MEDIA GAMING SERVICES GROUP For personal use only $M FY22 PF FY21 PF CHANGE FY22 PF FY21 PF CHANGE FY22 PF FY21 PF CHANGE Revenues 2,181.9 2,298.0 (5.1%) 196.9 187.2 5.2% 2,377.3 2,483.9 (4.3%) Variable contribution 801.3 885.6 (9.5%) 186.3 176.0 5.
Slide 26: Pro Forma Reconciliation
PRO FORMA RECONCILIATION WAGERING AND MEDIA GAMING SERVICES GROUP For personal use only $M FY22 DIS-SYNERGIES FY22 PF FY22 DIS-SYNERGIES FY22 PF FY22 DIS-SYNERGIES FY22 PF Revenues 2,181.9 - 2,181.9 192.9 4 196.9 2,373.3 4 2,377.3 Variable contribution 799.3 2 801.3 182.3 4 186.3 981.2 6 987.2 Opera
Slide 27: Significant Items
SIGNIFICANT ITEMS RACING QUEENSLAND SETTLEMENT AND INDUSTRY REFORMS $M • On 5 June 2022, Tabcorp and Racing Queensland (RQ) entered into a For personal use only Gain on demerger (net)1 6,513.8 conditional agreement to settle the legal proceedings in relation to disputes concerning the calculation of
Slide 28: Group Operating Expenses
GROUP OPERATING EXPENSES ($M) Continuing operations For personal use only REPORTED +5.5% UNDERLYING +2.4% 27
Slide 29: Additional Metrics
ADDITIONAL METRICS WAGERING AND MEDIA MAX REGULATORY SERVICES For personal use only FY22 FY21 CHANGE MONITORED EGMs JUN-22 JUN-21 CHANGE 1 Turnover by distribution ($m) NSW 90,340 90,700 (360) Retail 4,089.7 5,305.2 (22.9%) QLD 28,660 29,860 (1,200) Digital 9,321.4 9,097.1 2.5% NT 1,370 1,450 (80) 2
Slide 30: Glossary
GLOSSARY TERM DEFINITION TERM DEFINITION For personal use only 1H/2H Six months ended 31 December/30 June of the relevant financial year Monitoring electronic gaming machines (EGMs) under licence and the provision of other Integrity serv ices Three months ended 30 September / 31 December / 31 March
Slide 31: Disclaimer
DISCLAIMER This Presentation contains summary information about Neither Tabcorp nor any other person warrants or guarantees under the U.S. Securities Exchange Act of 1934, as amended, the current activities of Tabcorp Holdings Limited (Tabcorp) the future performance of Tabcorp shares or any return
Slide 32: For personal use only
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