Star Entertainment Group Limited · ASX:SGR
Star Entertainment — Investor Day (May 2018)
89 slides from Star Entertainment's investor day presentation, May 28, 2018
Slide 1: Investor Day Presentation & Trading Update
ASX Announcement 28 May 2018 INVESTOR DAY PRESENTATION & TRADING UPDATE The Star Entertainment Group Limited (The Star) (ASX code: SGR) announces that it is holding an Investor Day for institutional investors in Brisbane and the Gold Coast, Queensland on 28 May 2018, commencing at 9:30am AEST. Attac
Slide 2: Investor Day – Group Strategy and Queensland
THE STAR ENTERTAINMENT GROUP INVESTOR DAY – GROUP STRATEGY AND QUEENSLAND MONDAY 28 MAY 2018
Slide 3: Basis of Preparation and Non-IFRS Information
THE STAR ENTERTAINMENT GROUP THE STAR ENTERTAINMENT GROUP LIMITED (ASX: SGR) BASIS OF PREPARATION AND NON-IFRS INFORMATION ♦ Information in this presentation is provided as at the date of the presentation unless specified otherwise. It should be read in conjunction with The Star Entertainment Group
Slide 4: Agenda
THE STAR ENTERTAINMENT GROUP AGENDA Location Time Topic Presenter 9.00 – 9.30am Registration Welcome and Group Strategy Matt Bekier – The Star Entertainment Group 9.30 – 10.30am Our Partnership with The Star Patrick Tsang – Chow Tai Fook Brisbane Q&A 10.30 – 11.00am QWB Site Tour QWB Opportunity Geo
Slide 5: Investor Day: Group Strategy
Investor Day: Group Strategy MATT BEKIER – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
Slide 6: Group Strategy Content
GROUP STRATEGY CONTENT GROUP OVERVIEW OUR STRATEGY OUTLOOK AND PRIORITIES 5
Slide 7: Who We Are
WHO WE ARE GROUP OVERVIEW TODAY 3 Properties TREASURY CASINO & (Sydney, Gold Coast, Brisbane) HOTEL BRISBANE 1,382 5 and 6 star hotel rooms and suites 4,783 Slots cap QUEEN’S WHARF Unlimited Tables and MTGMs BRISBANE Concept image only Sheraton Grand Mirage Gold Coast (50% share), GCCEC (management
Slide 8: Our Key Metrics
OUR KEY METRICS FINANCIALS AND FOOTPRINT FINANCIALS FOOTPRINT Substantial employer Employment $5.2BN Total assets ♦ Over 9,000 team members (at April 2018) ♦ The Star Sydney is the largest private enterprise single site employer in NSW ♦ Over 5,000 new team members by 2023 $586M FY2017 Statutory EBI
Slide 9: Our Performance: Share Price, Earnings and Dividends
OUR PERFORMANCE SHARE PRICE, EARNINGS AND DIVIDENDS SGR Share Price Performance since Jan 2014 6.5 6.0 Share price (A$ per share) 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 SGR ASX200 Rebased Normalised EPS (by half year) DPS (by half year) 15.6% C
Slide 10: Our Performance: Above System Revenue Growth
OUR PERFORMANCE ABOVE SYSTEM REVENUE GROWTH Domestic Gaming Gaming Revenue Performance (FY12 to FY17) 15.0% 12.6% ♦ Growth reflects Sydney investments, Gold Coast more 10.0% 8.6% 10.1% 10.0% 7.5% 6.6% recently 4.9% 4.8% 5.0% 0.0% 3 yr CAGR 5 yr CAGR Group Sydney Gold Coast Brisbane International VIP
Slide 11: Our Performance: Solid Expense Management and Profitability
OUR PERFORMANCE SOLID EXPENSE MANAGEMENT AND PROFITABILITY Costs and Operating Efficiency Normalised Gross Revenue and Operating Costs 1,500 50% ♦ Group operating costs grew 2.8% pa over 5 years to 1H 45% FY2018 (normalised gross revenue grew 6.8%) 1,000 40% ♦ Operating costs as share of normalised
Slide 12: Our Performance: Good Profitability, Delivering on Investments
OUR PERFORMANCE GOOD PROFITABILITY, DELIVERING ON INVESTMENTS The Star Sydney The Star Gold Coast ♦ Total capex for Project Star (completed early ♦ Total capex for The Darling, The Star Grand $870m $345m CY2013) refurbishment, F&B upgrades (completed over ♦ Completed on time, on budget CY2014 to ear
Slide 13: Our Performance: Return on Capital Above System
OUR PERFORMANCE RETURN ON CAPITAL ABOVE SYSTEM ♦ Record of improving return on capital Return on Capital ♦ EBITDA grew 7.9% pa over FY2012 to FY2017, Total Assets by 1.4% pa ♦ EBITDA impacted by North Asia disruption (Oct 2016) ♦ Total assets includes investments not productive at balance date (CY20
Slide 14: Group Strategy Content
GROUP STRATEGY CONTENT GROUP OVERVIEW OUR STRATEGY OUTLOOK AND PRIORITIES 13
Slide 15: Our Strategy: Key Elements Enable De-risked Earnings Growth
OUR STRATEGY KEY ELEMENTS ENABLE DE-RISKED EARNINGS GROWTH Attractive Markets with ♦ Gambling market: Large, mature, fragmented and resilient market; casinos 1 $24bn Favourable Macro Trends winning market share ♦ F&B market: Large, fragmented, with F&B / leisure gaining share of $42bn household spen
Slide 16: Domestic Gambling Market Large and Fragmented
1 DOMESTIC GAMBLING MARKET* LARGE AND FRAGMENTED ♦ Large, mature and fragmented $24 bn Gambling Market ♦ Casinos winning share 2005 - Share of Total Gambling 2010 - Share of Total Gambling 2015 - Share of Total Gambling Expenditure (Australia) Expenditure (Australia) Expenditure (Australia) 7.8% 7.0
Slide 17: Inbound Tourism
1 INBOUND TOURISM LARGE, FRAGMENTED, HIGH GROWTH ♦ Large, fragmented, 9.3% growth pa forecast (FY2017-27) $40bn Market ♦ Asian middle class thematic ♦ Australia high destination appeal (particularly Sydney and Queensland) ♦ Australia most sought Nominal Inbound Tourism Expenditure By Source Market (
Slide 18: Out of Home Dining
1 OUT OF HOME DINING TRAFFIC DRIVER, INCREASING SHARE OF CONSUMPTION Increasing Spend on Cafés and ♦ Café and restaurant expenditure has been growing faster than disposable income Restaurants ♦ 5 year CAGR of 5.6% for café and restaurant spend growth, and 3.4% for disposable incomes growth ♦ Trends
Slide 19: Privileged Assets
2 PRIVILEGED ASSETS VALUABLE LICENCES IN ATTRACTIVE DESTINATIONS ♦ Long-dated licences – 2093 earliest licence expiry Valuable Long-term Licences ♦ Product differentiation vs pubs/ clubs • Slots – no bet limits, except Sydney MGF • Tables – exclusive, unlimited • MTGMs – exclusive in Qld, pubs/ club
Slide 20: Long-Term Development Pipeline
2 LONG-TERM DEVELOPMENT PIPELINE SUBSTANTIAL OPPORTUNITY FOR LONG-TERM GROWTH Property 2025 Target State Projects Underway/ In Planning * The Star Sydney The Star Sydney Expand property to: ♦ ~1,000 premium hotel rooms and residences ♦ $220m upgrade to Sovereign Resorts – (including The Ritz-Carlton
Slide 21: Benefits of Investments
2 BENEFITS OF INVESTMENTS IMPROVED EARNINGS FROM SCALE Investments Drive Returns ♦ Investments in privileged assets drive visitation and earnings ♦ Macau experience – positive relationship between profitability and scale (GFA, hotel rooms) • Signature gaming • Premium hotel rooms Macau GFA vs EBITDA
Slide 22: Category Leadership: Leverage Competitive Advantages
3 CATEGORY LEADERSHIP LEVERAGE COMPETITIVE ADVANTAGES ♦ Property scale and scope, gaming and non- Competitive Advantages Property gaming ♦ Network effect of multiple properties ♦ Slots – 2-3x more slots than largest clubs, bet Gaming Product limit and jackpot advantages ♦ Tables – exclusivity; unlim
Slide 23: Category Leadership: Domestic/Loyalty Opportunity
3 CATEGORY LEADERSHIP SUBSTANTIAL DOMESTIC/ LOYALTY OPPORTUNITY Market Sizing Opportunity 1 Priority: Increase share of spend from existing Total Australian Gambling customers $24bn Market ♦ Current $0.9bn revenue from ~240,000 active Loyalty members (~30% share of ~$3bn wallet) ♦ Up to ~50% overall
Slide 24: Strategic Partners: Complementary Capabilities
4STRATEGIC PARTNERS COMPLEMENTARY CAPABILITIES ♦ Extensive Australian and global project development Partner Complementary Capabilities ♦ Substantial understanding of Asian high value consumer – Retail/ Distribution, Hospitality businesses ♦ Capital contributions Development Retail/ Distribution Hos
Slide 25: Strategic Partners: Aligned Interests
4 STRATEGIC PARTNERS ALIGNED INTERESTS Trusted Relationship Proven Partnership ♦ Over $3bn in planned investments over four years ♦ QWB, first JV tower at The Star Gold Coast, Sheraton Grand Mirage, The Ritz-Carlton Sydney in planning Alignment of Strategic and Commercial Development Alliance * Inte
Slide 26: Marketing Alliance – Increased Reach
4STRATEGIC PARTNERS MARKETING ALLIANCE – INCREASED REACH ♦ 135m Chinese overseas trips in 2016, Australia Significant Incremental Opportunity Substantial Market market share <1% ♦ 5.5m Asia-Pacific high net worth*, ~9% pa trend growth ♦ CTF/ FEC strategy focused on Asian wallet Privileged Assets ♦ 1
Slide 27: Development Strategy in Action
DEVELOPMENT STRATEGY IN ACTION CAPITAL EFFICIENT AND ENHANCED GROWTH Mixed Use ♦ Drive visitation, length of stay, dwell time Capital Efficient Model Developments ♦ Optimise land value, development profits ♦ Attract development partners ♦ Provide development expertise and capital Capital Partners ♦
Slide 28: Group Strategy Content
GROUP STRATEGY CONTENT GROUP OVERVIEW OUR STRATEGY OUTLOOK AND PRIORITIES 27
Slide 29: Outlook and Priorities: Near-Term Priorities and Trading Update
OUTLOOK AND PRIORITIES NEAR-TERM PRIORITIES AND TRADING UPDATE Near Term Priorities: Focused on Executing Established Long-term Strategy 1. Improve earnings across the Group • Yield assets through gains in customer engagement, operating efficiency, marketing • Differentiate customer value propositio
Slide 30: Outlook and Priorities: Capital Expenditure and Funding
OUTLOOK AND PRIORITIES CAPITAL EXPENDITURE AND FUNDING ♦ FY2018 capital expenditure of $450-480m expected as projects Capital Expenditure Expectations progress. In addition, SGR will contribute ~$100m to QWB ♦ Capital expenditure excluding contributions to JV projects is expected to decline from FY2
Slide 31: Sydney Sovereign Resorts: Upgrade and Reposition
SYDNEY SOVEREIGN RESORTS UPGRADE AND REPOSITION Overview Investing behind success ♦ Revenue 23.5% 4 year CAGR (CY2013 to CY2017) Project overview ♦ Expansion and upgrade of Sovereign proposition (gaming and F&B) ♦ ~$220m capex ♦ Close existing Sovereign Room, activate temporary high quality offering
Slide 32: Sydney Sovereign Resorts: Gaming Capacity Maintained During Upgrade
SYDNEY SOVEREIGN RESORTS PRODUCT: GAMING CAPACITY MAINTAINED DURING UPGRADE Gaming Positions and Benefits Maintained Tables Table positions maintained EGMs Gaming Machine unit numbers maintained MTGMs MTGM positions maintained F&B, Loyalty tier status recognised property-wide Benefits F&B amenity up
Slide 33: Sydney Sovereign Resorts: Customer Engagement
SYDNEY SOVEREIGN RESORTS CUSTOMER: ENGAGEMENT TO MITIGATE DISRUPTION Customer Preferences Informed ♦ Overwhelming response for relocation during refurbishment 1 Development Plans based on extensive survey and direct member interaction ♦ Continuous engagement – benefits and timing of upgrade, and how
Slide 34: Investor Day: Queen's Wharf Brisbane
Investor Day: Queen’s Wharf Brisbane GEOFF HOGG – MANAGING DIRECTOR, QUEENSLAND
Slide 35: Queen's Wharf Brisbane Content
QUEEN’S WHARF BRISBANE CONTENT EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS IRD OVERVIEW PROJECT UPDATE 34
Slide 36: Executive Summary: Key Messages
EXECUTIVE SUMMARY KEY MESSAGES ♦ Favourable market and property-specific drivers 1 Substantial Earnings Opportunity ♦ Market drivers • Under-penetrated gaming market • Strong demographic trends • Substantial tourism opportunity ♦ Property drivers • Unrivalled CBD/ riverside location • Attractive lic
Slide 37: Executive Summary: Investment Highlights
EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS Market Drivers Property Specific Drivers 1 Brisbane an under-penetrated gaming market 4 Unrivalled size and location ♦ Slot and table spend up to 50% below Australian ♦ 13 ha CBD riverside site peers ♦ Significant transportation access (public, private) ♦ Supp
Slide 38: Queen's Wharf Brisbane on a Page
EXECUTIVE SUMMARY QUEEN’S WHARF BRISBANE ON A PAGE Structure Key Aspects Overview SGR CTF FEC ♦ Targeting ~$2.4bn project costs*, on time to date ♦ Commence opening 2H CY2022 Partner Contributions 50% 25% 25% ♦ Capital contribution – SGR 50%, CTF/ FEC 50% ♦ Earnings – SGR ~60% of property EBITDA Ope
Slide 39: Queen's Wharf Brisbane Content
QUEEN’S WHARF BRISBANE CONTENT EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS RESORT OVERVIEW PROJECT UPDATE 38
Slide 40: Brisbane an Under-Penetrated Gaming Market
1 BRISBANE AN UNDER-PENETRATED GAMING MARKET SUBSTANTIAL UNDER-PENETRATION Casino Gaming Revenue Per Capita Queensland Casino Gaming Growth vs Market ♦ Brisbane casino gaming revenue per capita is up to ~50% ♦ Queensland gaming Total Gaming Market Growth below other large Australian cities revenue p
Slide 41: Favourable Demographic Trends: Large and Growing Local Catchment
2 FAVOURABLE DEMOGRAPHIC TRENDS LARGE AND GROWING LOCAL CATCHMENT Large and Growing Local Catchment QWB Local Catchment Population (m) 5.0 4.7 ♦ 2.6m locals by QWB opening, 3.3m in SEQ 4.0 3.6 ♦ Almost 5m in SEQ by 2036 3.3 3.3 3.0 2.6 2.3 2.0 1.0 0.0 Brisbane SEQ 2016 QWB Open 2036 Increasingly Att
Slide 42: Favourable Demographic Trends: Relatively Wealthy Locals
2 FAVOURABLE DEMOGRAPHIC TRENDS RELATIVELY WEALTHY LOCALS Incomes Comparable to Sydney and Melbourne Median Household Weekly Income ($) 0 500 1,000 1,500 2,000 ♦ Household incomes similar to Melbourne Greater Brisbane 1,562 Greater Sydney 1,750 Greater Melbourne 1,542 Lower House Prices than Sydney
Slide 43: Favourable Demographic Trends: Interstate Migration and Jobs Growth
2 FAVOURABLE DEMOGRAPHIC TRENDS INTERSTATE MIGRATION AND JOBS GROWTH Queensland Attracts Highest Level of Interstate Interstate Migration (rolling 4 quarters) Migration 30,000 ♦ Interstate migration volumes into Queensland is the 25,000 largest of any state, returning to historic levels 20,000 15,00
Slide 44: Substantial Tourism Opportunity: Visitation and Airport Growth
3 SUBSTANTIAL TOURISM OPPORTUNITY VISITATION AND AIRPORT GROWTH Largest Domestic Overnight Visitation Market Domestic Visitor Nights - 2017 and 2027 forecast (m) 40 40 ♦ Largest domestic visitor overnight market – most from 30 33 33 31 Sydney, Melbourne, regional Qld and regional NSW 20 27 25 ♦ ~80%
Slide 45: Substantial Tourism Opportunity: Underweight Luxury Hotels, Retail
3 SUBSTANTIAL TOURISM OPPORTUNITY BRISBANE UNDERWEIGHT LUXURY HOTELS, RETAIL Relatively Few Hotel Rooms Hotel rooms and total visitor nights 120 103 25,000 100 21,538 85 ♦ Brisbane has fewer hotel rooms than Perth, but almost twice 80 69 20,000 15,754 15,000 as much domestic and international overni
Slide 46: Unrivalled Property Size and Position
4 UNRIVALLED PROPERTY SIZE AND POSITION 13 HA CBD LOCATION, GOOD TRANSPORT ACCESS, PROXIMATE TO TRAFFIC DRIVERS ♦ 13 ha of prime riverside CBD location Substantial High Value Location ♦ 20-25 mins from Brisbane International Airport Unparalleled Access to Transport and Attraction Drivers ♦ Unparalle
Slide 47: Attractive Long-Term Licence Terms
5 ATTRACTIVE LONG-TERM LICENCE TERMS SUPPORTS INVESTMENT AND FINANCIAL RETURNS ♦ Long term licence – 99 years Long-term Licence with Exclusivity ♦ Geographic exclusivity for 25 years from opening Attractive Tax Rates Gaming Tax Comparison 60% ♦ Favourable domestic table and slots rates 50% 40% ♦ 10%
Slide 48: Brisbane's Signature Entertainment Precinct
6 SCALE AND SCOPE BENCHMARKED TO PEERS BRISBANE’S SIGNATURE ENTERTAINMENT PRECINCT FOR LOCALS AND VISITORS 1,100 Hotel Rooms Provide Scale QWB Hotel Room Benchmarking 1,800 ♦ More rooms than ANZ peer median 1,600 ♦ Scale enables comprehensive brand architecture (e.g. 1,400 1,200 The Ritz-Carlton, Ro
Slide 49: Large Australian Integrated Resort EBITDA: Illustrative FY2025
LARGE AUSTRALIAN INTEGRATED RESORT EBITDA ILLUSTRATIVE FY2025 EBITDA Substantial Earnings Opportunity Illustrative EBITDA of Australian Resorts ($m) 1,200 ♦ Significant EBITDA opportunity for QWB ♦ Illustrative $320-1,006m EBITDA for large Australian integrated resorts by FY2025 1,000 1,006 • FY2025
Slide 50: Queen's Wharf Brisbane Content
QUEEN’S WHARF BRISBANE CONTENT EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS RESORT OVERVIEW PROJECT UPDATE 49
Slide 51: Resort Overview Video
RESORT OVERVIEW VIDEO THES STAR ENTERTAINMENT GROUP 50
Slide 52: Resort Overview: International and Domestic Connectivity
RESORT OVERVIEW INTERNATIONAL AND DOMESTIC CONNECTIVITY Significant Direct Connectivity To Key International Source Markets ♦ 23.2 million passengers in 2017 • 5.8 million international • 17.4 million domestic ♦ Direct connections to 32 international and 52 domestic destinations and expanding ♦ Incr
Slide 53: Resort Overview: Precinct and Environs Map
RESORT OVERVIEW PRECINCT AND ENVIRONS MAP 17 18 LEGEND 1 Queen’s Wharf Brisbane 12 The Wheel of Brisbane 2 Queen Street Mall 13 Queensland Maritime Museum 2 Kilometre 3 Central Station 14 Roma Street Station 4 Brisbane City Botanic Gardens 15 Suncorp Stadium 5 Queensland University of Technology 16
Slide 54: Resort Overview: Redefining Brisbane
RESORT OVERVIEW REDEFINING BRISBANE Southbank View - Concept image only William Street View - Concept image only William Street View - Concept image only 53
Slide 55: Signature Gaming
SIGNATURE GAMING TIERED ENTERTAINMENT OPTIONS 0 Main Gaming Floor - Concept image only Sovereign Dining - Concept image only VIP Gaming - Concept image only VIP Gaming - Concept image only 54
Slide 56: Premium Accommodation
PREMIUM ACCOMMODATION DRIVING VISITATION AND LENGTH OF STAY The Ritz-Carlton Lobby - Concept image only Dorsett Lobby - Concept image only The Star Grand Lobby - Concept image only The Star Grand Penthouse - Concept image only 55
Slide 57: Premium Retail and F&B
PREMIUM RETAIL AND F&B A LOCAL DESTINATION THAT VISITORS DESIRE Sports Bar - Concept image only Supper Club, former DPI building - Concept image only Fat Noodle - Concept image only Food Quarter - Concept image only 56
Slide 58: Premium Retail and F&B
PREMIUM RETAIL AND F&B A LOCAL DESTINATION THAT VISITORS DESIRE Brisbane Steps - Concept image only William Street View - Concept image only Sky Deck - Concept image only Harris Lane - Concept image only 57
Slide 59: Queen's Wharf Brisbane Content
QUEEN’S WHARF BRISBANE CONTENT EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS RESORT OVERVIEW PROJECT UPDATE 58
Slide 60: Project Update: Capital Expenditure Update
PROJECT UPDATE CAPITAL EXPENDITURE UPDATE ♦ Conditions satisfied to commence construction works February 1 ~25% Increase In Gross Floor Area (GFA) 2018 ♦ Enables up to ~25% increase in integrated resort GFA • Enlarged podium (increased gaming, F&B and retail) • Expanded Sky Deck ♦ Hotel enhancements
Slide 61: Progress to Date
PROGRESS TO DATE ON TIME, EXPECTED OPENING CY2022 Project Timeline December 2017 ✓ Demolition commenced Jan 2017, complete 2017 1H CY2017 ✓ Excavation commenced 1H CY2018 2018 ♦ Basement and foundations 2019 ♦ Resort takes shape as construction progresses 2020 April 2018 above ground ♦ Internal fit
Slide 62: Investor Day: The Star Gold Coast
Investor Day: The Star Gold Coast GEOFF HOGG – MANAGING DIRECTOR, QUEENSLAND
Slide 63: The Star Gold Coast Content
THE STAR GOLD COAST CONTENT EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS BROADBEACH MASTERPLAN 62
Slide 64: Executive Summary: Key Messages
EXECUTIVE SUMMARY KEY MESSAGES Property Transformation and Earnings Uplift ♦ Transformation to substantial world class integrated 1 Underway resort underway ♦ Earnings growth as assets upgraded/ developed Substantial Long-term Earnings Growth ♦ Favourable market and property specific drivers 2 Oppor
Slide 65: Executive Summary: Investment Highlights
EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS ♦ Transformation underway, earnings growth as assets 1 Investing behind success upgraded and enlarged ♦ 1H FY18 total domestic gross revenue up 20.8% vs pcp ♦ Large local catchment – 0.6m (largest non-capital city in 2 Favourable demographic trends Australia),
Slide 66: The Star Gold Coast on a Page
EXECUTIVE SUMMARY THE STAR GOLD COAST ON A PAGE ♦ Unparalleled city-beach gaming and entertainment proposition in Asia- Unique Customer Proposition Pacific region ♦ Offers signature gaming, premium accommodation and highly rated F&B ♦ Adjacent to Queensland’s largest shopping centre and largest regi
Slide 67: The Star Gold Coast Content
THE STAR GOLD COAST CONTENT EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS BROADBEACH MASTERPLAN 66
Slide 68: Transformation Underway
1 TRANSFORMATION UNDERWAY EARNINGS GROWTH AS ASSETS UPGRADED/ ENLARGED The Star Gold Coast EBITDA ($m) Investments Timetable ♦ The Darling opens (including The Star Gold Coast - 5 year EBITDA 1Q 2018 Nineteen) ♦ Enlarged MGF and Sports Bar CY2017 109 opens ♦ Property rebranded to “The Star” FY2017 1
Slide 69: Recent Works Delivered – Upgrades
1 TRANSFORMATION UNDERWAY RECENT WORKS DELIVERED – UPGRADES BEFORE AFTER Jupiters Hotel & Casino The Star Gold Coast BEFORE AFTER J Bar Cherry Bar 68
Slide 70: Recent Works Delivered – Upgrades
1 TRANSFORMATION UNDERWAY RECENT WORKS DELIVERED – UPGRADES BEFORE AFTER Spinners M&G Café and Bar BEFORE AFTER PA Garden Kitchen & Bar 69
Slide 71: Recent Works Delivered – Upgrades
1 TRANSFORMATION UNDERWAY RECENT WORKS DELIVERED – UPGRADES BEFORE AFTER Old Atrium Bar New Atrium Bar BEFORE AFTER Bite Food Quarter 70
Slide 72: Recent Works Delivered – The Darling
1 TRANSFORMATION UNDERWAY RECENT WORKS DELIVERED – THE DARLING The Darling Gold Coast Pool Deck The Darling Gold Coast Porte Cochere The Darling Gold Coast Entrance Sign The Darling Gold Coast Lobby 71
Slide 73: Recent Works Delivered – The Darling
1 TRANSFORMATION UNDERWAY RECENT WORKS DELIVERED – THE DARLING The Darling Gold Coast Penthouse TheSuite Darling Gold Coast Penthouse Suite The Darling Gold Coast Penthouse Suite Billiard Room Nineteen at The Darling Gold Coast The Darling Gold Coast Stellar Suite 72
Slide 74: Favourable Demographic Trends: Large and Growing Local Catchment
2 FAVOURABLE DEMOGRAPHIC TRENDS LARGE AND GROWING LOCAL CATCHMENT Largest Non-Capital City in Australia Gold Coast Local Catchment Area (m) 1.0 5.0 ♦ Largest non-capital residential population in Australia 0.8 4.0 0.6 3.0 ♦ 0.6m residents, 3.3m in broader SEQ region 0.4 2.0 0.2 1.0 0.0 0.0 2016 2026
Slide 75: Substantial and Growing Tourism Market
3 SUBSTANTIAL AND GROWING TOURISM MARKET SUBSTANTIAL VISITOR AND AIRPORT GROWTH Top 5 Visitor Market in Australia Total Visitors to Gold Coast (2017) and 3 Year Growth ♦ 5th largest overnight visitor market in Australia (after Sydney, 6.0 10.0% 5.1 Melbourne, Brisbane and Perth) 5.0 8.0% 8.0% ♦ Over
Slide 76: Privileged Property Size and Location
4 PRIVILEGED PROPERTY SIZE AND LOCATION 6HA FREEHOLD, GOOD TRANSPORT ACCESS, PROXIMATE TO TRAFFIC DRIVERS ♦ 6 ha island location at Broadbeach in central Gold Coast ♦ Direct access to major roads and light-rail High Value Land ♦ Adjacent to Queensland’s largest shopping centre (Pacific Fair) and lar
Slide 77: Attractive Long-Term Licence Terms
5 ATTRACTIVE LONG-TERM LICENCE TERMS SUPPORTS INVESTMENT AND FINANCIAL RETURNS ♦ Perpetual licence terms Perpetual Licence with Attractive Tax Rates ♦ Same tax rates as QWB – favourable domestic table and slots rates, no super tax regime, 10% rebate tax consistent with Australian peers ♦ Substantial
Slide 78: The Star Gold Coast Content
THE STAR GOLD COAST CONTENT EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS BROADBEACH MASTERPLAN 77
Slide 79: Precinct Overview: Masterplan Concept
PRECINCT OVERVIEW MASTERPLAN CONCEPT Concept image only 78
Slide 80: Precinct Overview: Masterplan Concept
PRECINCT OVERVIEW MASTERPLAN CONCEPT Concept image only Concept image only Concept image only 79
Slide 81: Precinct Overview: Masterplan Concept
PRECINCT OVERVIEW MASTERPLAN CONCEPT Concept image only Concept image only Concept image only 80
Slide 82: Long Term Growth – Up to 5 Mixed Use Towers
PRECINCT OVERVIEW LONG TERM GROWTH – UP TO 5 MIXED USE TOWERS* T3 T4 T2 EXISTING TOWERS T1 T5 ♦ 318 hotel keys (“Dorsett” brand), 423 residential apartments Mixed use Up to Apartments ♦ ~$400m total projected development costs Up to 5 towers approved 2,200 ♦ Presales 75% sold, engaging with external
Slide 83: Tower 1 – The Star Residences: Premium Residences
TOWER 1 – THE STAR RESIDENCES PREMIUM RESIDENCES Proposed Level 20 pool Proposed bathroom Proposed living room Proposed kitchen (standard apartment) 82
Slide 84: Tower 1 – The Star Residences: Premium Residences
TOWER 1 – THE STAR RESIDENCES PREMIUM RESIDENCES Proposed bedroom Proposed kitchen (corner apartment) Proposed The Star Residences Lobby 83
Slide 85: Tower 1 – Enlarged F&B Offering
TOWER 1 – ENLARGED F&B OFFERING DRIVE PROPERTY APPEAL AND VISITATION Enhanced Property Appeal Initial visit ♦ Enhanced property appeal ♦ Enhanced “The Star Gold Coast” and destination brand ♦ Appeal to new/ adjacent customer segments Repeat Increase Dwell ♦ Enhanced offer to retain and yield existin
Slide 86: Investor Day: Key Messages
Investor Day: Key Messages MATT BEKIER – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
Slide 87: 2018 Investor Day Key Messages
2018 INVESTOR DAY KEY MESSAGES ♦ Execution focus, above system performance and solid 1 Solid Foundations expense management to date ♦ Attractive markets with favourable macro trends (gaming, inbound tourism, F&B) Capital efficient, ♦ Privileged assets with long-term growth opportunities de-risked gr
Slide 88: Appendix: Glossary
APPENDIX GLOSSARY TERM DEFINITION CAGR Compound Annual Growth Rate Capital expenditure Unless otherwise stated, capital expenditure is presented on an accruals basis and excludes investments in (capex) associates and equity acquisitions DA Development Approval Domestic Tables Domestic Tables include
Slide 89: Thank You
THE STAR ENTERTAINMENT GROUP INVESTOR DAY – GROUP STRATEGY AND QUEENSLAND THANK YOU