Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — Shareholder Meeting (May 2005)
26 slides from Aristocrat Leisure's shareholder meeting presentation, May 3, 2005
Slide 1: Aristocrat Leisure Limited 2005 Annual General Meeting
Aristocrat Leisure Limited Welcomes you to our 2005 Annual General Meeting
Slide 2: Chairman David Simpson
Aristocrat Leisure Limited Annual General Meeting 2005 Chairman David Simpson
Slide 3: Overview
Overview
Slide 4: Paul Oneile, Chief Executive Officer and Managing Director
Paul Oneile Chief Executive Officer and Managing Director
Slide 5: Summary Results
Summary Results 2004 2003* Variance $m $m % Total Revenue 1,148.9 1,021.3 12.5% Profit After Tax 174.7 54.0 223.5% International Segment Profit 70% 59% 11Pts Operating Cash Flow 250.0 204.4 22.3% * 2003 results are pre one-off adjustments
Slide 6: Australia
A A Ae Tae a Australia Variance % Segment Revenue . ; (4.0)% Segment Contribution Profit . - 16.4% Segment Margin : . 5.9Pts * Mature market with many challenges * Margin improvement reflects improved product mix and cost initiatives * Replacement cycle at historic lows * Unit sales down 22% * Marke
Slide 7: North America
AY Ae Se a North America Variance % Segment Revenue . . 52.6% Segment Contribution Profit . . 1,187.8% Segment Margin : : 25.3Pts « Unit sales increased 35.8% to 12,312 « Recurring revenue units increased to 5,294 (up 92.2%) at US$53/day (up US$19/day) * Total participation recurring revenue up 251.
Slide 8: Japan
Variance % Segment Revenue . . (6.6)% Segment Contribution Profit . . (10.8)% Segment Margin . . (1.1) Pts * Success of Daruma-Neko and Kyojin-no-hoshi 2 games + 85,387 games sold * Higher trade-ins and inventory provisioning impacted margin * Strong relationship with Sammy Corporation
Slide 9: Other Markets
CA aT ae Other Markets Variance % Segment Revenue . . 31.1% Segment Contribution Profit . - 85.5% Segment Margin : . 9.2 Pts * Russia and Macau drove strong revenue growth * New Zealand impacted adversely by new legislation and regulations * South Africa recorded growth in a flat market * South Amer
Slide 10: Business Objectives
DD A SS re Business Objectives * Enhance market leadership position in Australia and NZ * Capitalise on product performance/momentum in North America * Build on success in Japan - Continue to focus on new markets — Asia, Russia, UK * Focus on R&D and product development * Financial control, risk man
Slide 11: Growth Framework
AY Ae ST ree a Growth Framework * Leverage core competencies * Focus on organic opportunities * Low risk model * Minimise risk « Review strategic opportunities
Slide 12: Outlook
Outlook Six months to 30 June 2005 Overall * Profit After Tax range $90 — 100m Key Factors ¢ North American momentum ¢ Japanese volatility ¢ Product Approvals * Adoption of International Accounting Standards
Slide 13: Simon Kelly, Chief Financial Officer
Simon Kelly Chief Financial Officer
Slide 14: Profit & Loss
Profit & Loss 2004 2003* Variance $m $m % Total Revenue 1,148.9 1,021.3 12.5% Gross Profit 558.2 438.6 27.3% GP% 48.6% 42.9% 5.7 Pts Expenses 300.0 364.8 -17.8% EBIT 274.8 103.5 165.5% Profit Before Tax 270.4 87.7 208.3% Income Tax Expense 95.7 33.7 184.0% Profit After Tax 174.7 54.0 223.5% * 2003 r
Slide 15: Segment Contribution Profit Split
Do ae re ee Segment Contribution Profit* Split 2003 Segment Contribution 2004 Segment Contribution Profit by region Profit by region Nth America 32% Nth America 4% * Excludes unallocated expenses, interest and tax * 2003 results are pre one-off adjustments
Slide 16: Working Capital
Oo Meni ie eee Working Capital Percentage of LTM Revenue 2001 2002 2003 2004
Slide 17: Operating Cash Flow
DD Ao re Operating Cash Flow Percentage of LIM Revenue -50 2004 2002 2003 2004 10% Gag Operating Cash Flow == Operating Cash Flow % Revenue
Slide 18: Key Financials and Ratios
WO a. Scene ae Key Financials and Ratios $m $m EBITDA 314.6 143.4 EBIT 274.8 103.5 Working Capital/Revenue (%) 9.3% 10.9% Operating Cash Flow 250.0 204.4 Operating Cash Flow/Revenue (%) 21.8% 20.0% Net Cash/(Debt) 119.6 -70.2 Debt(EBITDA 0.5X 1.2X EBIT DA/Interest Expense 26.7X 6.8X Return on Equity
Slide 19: Resolutions
Resolutions
Slide 20: Resolution: Financial Statements
Resolution 1 Financial Statements
Slide 21: Resolution: Election of Director
Resolution 2 Election of Director
Slide 22: Resolution: Participation in 2005 Long Term Performance Share Plan
Resolution 3 Participation by Mr PN Oneile in the 2005 Long Term Performance Share Plan
Slide 23: Resolution: Approval of Long Term Performance Option Plan
Resolution 4 Approval of Long Term Performance Option Plan
Slide 24: Resolution: Adoption of New Constitution
Resolution 5 Adoption of New Constitution
Slide 25: Resolution: Equal Capital Reduction
Resolution 6 Equal Capital Reduction
Slide 26: Slide 26