Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — H1 2019 Earnings Presentation
27 slides from Aristocrat Leisure's earnings presentation, May 23, 2019
Slide 1: Results Presentation: Six months to 31 March 2019
Aristocrat Leisure Limited Investor Presentation 23 May 2019 For personal use only Results Presentation Six months to 31 March 2019
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 representation or warranty is given as to the accuracy or completeness of the information in this document, in any accompanying presentation or in
Slide 3: Agenda
Agenda For personal use only 1 Strategy Update 2 Group Results Summary 3 Operational Performance 4 Outlook 5 Results Summary 6 Q&A 7 Appendices
Slide 4: Strategic context
Strategic context Our operating model supports long-term growth and value creation For personal use only Inputs Outputs Growth enabling business model Brilliant customer and player • Superior talent Portfolio of quality businesses experience • Commitment to innovation • Market-leading product and
Slide 5: Land-based strategic context 2014
Land-based strategic context 2014 Through investment into adjacencies, we are significantly increasing our addressable market For personal use only In 2014, Aristocrat participated in 65% of the Outright Sale market and 37% of the Gaming Operations market…. NA Outright Sale Market1 NA Gaming Operati
Slide 6: Land-based North American Adjacencies
Land-based North American Adjacencies Strong market segmentation and investment leading to successful entry into a number of identified adjacent markets, growing our addressable market and share gain opportunities For personal use only Gaming Operations Outright Sales Class II Gaming Class III Gamin
Slide 7: Land-based strategic context 2020
Land-based strategic context 2020 Through investment into adjacencies, we are significantly increasing our addressable market For personal use only NA Outright Sale Market1 NA Gaming Operations Market1 Other 4% Washington CDS 5% VLT Other 7% Class II Video 20% 20% Bar Top Poker 5% Class III Stepper
Slide 8: Digital strategic context: Aristocrat's addressable market
Digital strategic context: Aristocrat’s addressable market In 2014, Aristocrat only participated in the Core Slot segment of Social Casino, which represented an addressable market of less than US$2bn. Through acquisitions of Plarium and Big Fish, Aristocrat is now targeting a US$32bn market opportun
Slide 9: Digital strategic context: how we are leveraging our capabilities
Digital strategic context: how we are leveraging our capabilities Our Capabilities Our Focus For personal use only 1 2 Game Design Evergreen Brands • Strong pipeline of content into evergreen franchises • Longevity of Portfolio • Execute high quality, new content • World Class Game Growth franchises
Slide 10: Tax update
Tax update Consistent with the changes in the Group’s business profile, Aristocrat is in the process of implementing changes in the Group structure which is expected to result in reductions in foreign cash tax paid and book tax expense from FY20 onwards For personal use only Large and increasing m
Slide 11: Group Results Summary
For personal use only Group Results Summary
Slide 12: Group Results Summary
Group Results Summary Normalised NPATA up 17% to $422m, driven by strong growth across North America and Digital with a further lift in ANZ performance. Continued investment in talent & technology For personal use only Six months to Six months to Normalised revenue up 30% to $2.1bn A$ million 31 M
Slide 13: Financial Performance
Financial Performance Earnings growth across both Land-based and Digital markets enabled by D&D investment. International Class III down with no new major casino openings in the period For personal use only NPATA bridge (A$m)1 Note: 1 Numbers above are reported on a constant currency basis and are t
Slide 14: Cash Flow
Cash Flow Strong fundamentals maintained; higher operating cash flow driven by stronger earnings growth For personal use only Operating Cash Flow Six months to Six months to A$ million 31 Mar 2019 31 Mar 2018 Change % EBITDA 766.3 642.9 19.2 Change in net working capital (152.0) (104.0) 46.2 Subtota
Slide 15: Balance Sheet and Debt Profile
Balance Sheet and Debt Profile Strong balance sheet supportive of Aristocrat’s growth strategy For personal use only Balance Sheet Statistics1 Balance sheet strength improved following strong A$ million 31 Mar 2019 30 Sep 2018 31 Mar 2018 earnings and cash generation Total debt 2,933.8 2,881.1 2,9
Slide 16: Operational Performance
For personal use only Operational Performance
Slide 17: Americas
Americas Record earnings result +17% with continued growth in premium Gaming Operations and market share gains in Outright Sales For personal use only Six months to Six months to Double-digit revenue and profit growth Americas 31 Mar 2019 31 Mar 2018 2 Change % Revenue US$m 682.7 578.2 18.1 St
Slide 18: Class III - ANZ & International
Class III - ANZ & International Leading market share levels maintained across key markets, driven by favourable commercial mix and phasing of new games For personal use only Six months to Six months to ANZ ANZ 31 Mar 20191 31 Mar 2018 Change % Summary Profit or Loss Revenue growth 7%; Earnings up
Slide 19: Digital Summary
Digital Summary Revenue growth of 37% reflects a full period of acquisitions and represents 39% of group revenue. Transitioning towards a balanced portfolio approach with new and acquired Social Casual games For personal use only Six months to Six months to Revenues up 37% driven by growth in Prod
Slide 20: Stability and diversity across Digital portfolio
Stability and diversity across Digital portfolio Our portfolio continues to diversify with the introduction of new games, whilst the older franchises continue to perform well through the introduction of new content and features For personal use only Bookings by segment Bookings by game - >US$50m p.a
Slide 21: Active portfolio management driving sustainable growth
Active portfolio management driving sustainable growth Each of our franchise games are managed to maximise value according to its lifecycle, thereby ensuring a solid revenue foundation to underwrite the pipeline of new products For personal use only In Soft Launch < 1 Year 1 – 3 Years 3 - 5 Years 5+
Slide 22: Outlook
Outlook Consistent with February 2019 guidance statement, Aristocrat continues to track in line with its plans for continued growth in the 2019 fiscal year, reflecting: For personal use only Land-based Outright Sales: Expect incremental gains in attractive North American adjacencies, in addition t
Slide 23: 1H19 Results Summary
1H19 Results Summary Normalised profit growth of 17% driven by strong organic growth across North America and ANZ and full period benefit of acquired Digital businesses For personal use only Strong top-line revenue growth (+21% constant currency; +30% reported) and EBITDA growth (+10% constant cur
Slide 24: Agenda
For personal use only 1 Strategy Update 2 Group Results Summary 3 Operational Performance 4 Outlook 5 Results Summary 6 Q&A 7 Appendices 24
Slide 25: Appendix: Segment Financial Information (statutory)
Appendix Segment Financial Information (statutory) For personal use only Statutory P&L - Americas Six months to Six months to Statutory P&L - International Class III Six months to Six months to A$ million 31 Mar 2019 31 Mar 20181 A$ million 31 Mar 2019 31 Mar 2018 Revenue Revenue Revenue from extern
Slide 26: Appendix: Reconciliation of Statutory Financial Statements
Appendix Reconciliation of Statutory Financial Statements Revenue, EBITDA, NPATA, NPAT to Review of Operations For personal use only Statutory Financial Significant items Review of Statements Contingent retention Acquisition Operations 1H19 arrangements and Restructure 1H19 A$ million related costs
Slide 27: For personal use only
For personal use only