Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — FY2008 Earnings Presentation
27 slides from Aristocrat Leisure's earnings presentation, Feb 24, 2009
Slide 1: Results for the year ended 31 December 2008
For personal use only Aristocrat Leisure Limited Results for the year ended 31 December 2008
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: David Simpson, Executive Chairman
For personal use only David Simpson Executive Chairman
Slide 4: Simon Kelly, Chief Financial Officer and Finance Director
For personal use only Simon Kelly Chief Financial Officer and Finance Director
Slide 5: Reported Results vs October Guidance
Reported Results vs October Guidance For personal use only Actual Guidance $Million $Million Operating Profit after Tax 141.0 120 - 150 Abnormals - Class Action (40.2) (22) - Property Sales 21.0 - Asset Impairment (19.9) - Net Profit after Tax 101.9 98 - 128
Slide 6: Profit and Loss
Profit and Loss Constant For personal use only Currency Normalised* Reported 2008 2008 2007 $Million $Million $Million Total Revenue 1,027.2 1,079.9 1,122.0 Gross Margin 53.2% 52.1% 58.0% SMG&A 231.8 238.4 238.7 EBIT before R&D 315.8 330.1 436.5 R&D 115.8 117.2 104.2 Profit before Tax 180.2 193.1 32
Slide 7: Profit and Loss
Profit and Loss Normalised* Normalised* Reported 2008 2008 2007 For personal use only $Million $Million $Million (Dec Rate)** Total Revenue 1,237.0 1,079.9 0.0 1,122.0 0.0 Gross Margin 51.9% 52.1% 58.0% SMG&A 262.2 238.4 0.0 238.7 0.0 EBIT before R&D 385.8 330.1 0.0 436.5 0.0 R&D 129.6 117.2 0.0 104
Slide 8: FY 2008 vs FY 2007 Normalised EBIT
For personal use only EBIT $Million 20 150.0 200.0 250.0 300.0 350.0 07 400.0 EB IT $332.3 Ja pa n $37.5 Sh a re A C of E El ek $10.0 tr o nc ek $7.9 Vo lu m e $140.6 Pr ic O e/ M th ix er N $8.9 et M ar g in $12.1 R C R os $9.7 to In fS ve al nt es or y $6.6 Pr o vi si on $14.7 SM G & A $15.1 R & D
Slide 9: Year Trend Analysis
5 Year Trend Analysis WEIGHTED AVERAGE GLOBAL PRICING GROWTH (1) (2) - CAGR 8.7% 15% For personal use only 10% 7.0% 10.2% 8.6% 8.9% 5% 5.1% 0% 2004 2005 2006 2007 2008 GROSS MARGIN NET EXPENSES (3) / REVENUE 70% 30% 60% 25% 59.8% 52.1% 51.6% 58.0% 23.2% 50% 20% 48.5% 19.4% 19.7% 19.1% 18.8% 40% 15%
Slide 10: Segment Revenue Split
Segment Revenue Split For personal use only 2008 Segment Revenue by region 2007 Segment Revenue by region Australia/ Japan Japan "Unique" NZ "Unique" 8% Australia/ "Mature" 20% NZ 19% Other "Mature" "Growth" 27% $1,079.9 22% Other $1,122.0 "Growth" million million 17% North America North "Growth" Am
Slide 11: Cash Flow
Cash Flow 2008 2007 For personal use only $Million $Million Net debt - opening balance (111.8) (40.8) Operating cash flow 173.8 222.2 Investing cash flow (18.4) (55.3) 155.4 166.9 Financing cash flow 1.8 4.0 Capital management initiatives (334.6) (253.0) Movement in net debt (177.3) (82.1) Effect of
Slide 12: Operating Cash Flow vs Revenue
Operating Cash Flow vs Revenue 450 35% For personal use only 400 Percentage of LTM Revenue 30% 350 25% 300 $Million 250 20% 200 15% 150 10% 100 5% 50 - 0% Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Operating Cash Flow LTM Operating Cash Flow % LTM Revenue
Slide 13: Operating Cash Flow vs PAT
Operating Cash Flow vs PAT 450 175% For personal use only 400 150% Percentage of LTM PAT 350 125% 300 $Million 250 100% 200 75% 150 50% 100 25% 50 - 0% Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Operating Cash Flow LTM Operating Cash Flow % LTM PAT
Slide 14: Capital Management
Capital Management Bank Facilities For personal use only - 364 day facilities rolled to February 2010 - Overall facilities reduced to A$805 million debt and US$100 million LC - 3 year facility matures February 2011 Capital Management - On market buyback suspended - Dividend payout ratio 50 – 70% - S
Slide 15: Key Financials and Ratios
Key Financials and Ratios 2008* 2007 For personal use only $Million $Million EBITDA 253.2 366.7 EBIT before R&D 330.1 436.5 EBIT 212.9 332.3 Working Capital/Revenue (%) 14.4% 12.1% Operating Cash Flow 173.8 222.2 Operating Cash Flow/Revenue (%) 16.1% 19.8% Operating Cash Flow/PAT (%) 123.3% 89.6% Ne
Slide 16: Segment Review
For personal use only Segment Review
Slide 17: Australia/New Zealand
Australia/New Zealand At Constant Currency^ 2008 2007 Variance $Million $Million % For personal use only Revenue 208.2 305.3 (31.8)% Profit 60.8 119.0 (48.9)% Margin % 29.2% 39.0% (9.8) pts ^ Adjusted for translational exchange rates using rates applying in 2007 Australia • Delayed launch of Viridia
Slide 18: North America
North America At Constant Currency^ 2008 2007 Variance $Million $Million % For personal use only Revenue 456.7 483.6 (5.6)% Profit 181.4 203.9 (11.0)% Margin % 39.7% 42.2% (2.5) pts ^ Adjusted for translational exchange rates using rates applying in 2007 • Delayed approval of Viridian™ Gen 7™ • Wors
Slide 19: Japan
Japan At Constant Currency^ 2008 2007 Variance $Million $Million % For personal use only Revenue 174.8 91.2 +91.7% Profit 43.4 5.9 +635.6% Margin % 24.8% 6.5% +18.3 pts ^ Adjusted for translational exchange rates using rates applying in 2007 • Overall size of pachislot market and demand continues to
Slide 20: Consolidated Other Markets
Consolidated Other Markets At Constant Currency^ 2008 2007 Variance For personal use only $Million $Million % Revenue 214.7 280.4 (23.4)% Profit 57.0 87.3 (34.7)% Margin % 26.5% 31.1% (4.6) pts ^ Adjusted for translational exchange rates using rates applying in 2007 • Macau results impacted by timin
Slide 21: Paul Kitchin, Group General Manager Marketing
For personal use only Paul Kitchin Group General Manager Marketing
Slide 22: Viridian Gen7 Platform Availability
Viridian™ Gen7™ Platform Availability AUSTRALIA 100% For personal use only 90% 80% 70% 53% Availability (1) 53% 60% 50% 37% 40% 30% 22% • Improved availability of Viridian 20% cabinet in North America during 10% 0% the 2nd half of 2008 At end of period Period average H1 Full Year NORTH AMERICA Curre
Slide 23: Gen7 Quarterly Game Approvals
Gen7™ Quarterly Game Approvals 18 For personal use only 16 • Native games 14 approvals lifted during Q3 and Q4 which also 12 results in more new games for sale from 10 start of 2009 8 6 4 2 0 Q1 08 Q2 08 Q3 08 Q4 08 Gen 7 NSW 2 3 6 10 Gen 7 America's 2 1 14 16 Gen 7 Macau 6 3
Slide 24: Viridian Gen7 Performance
Viridian™ Gen7™ Performance For personal use only North America Australia 2.5 1.5 Performance vs floor average 2 1 1.5 1 0.5 0.5 0 0 Gen7 MkVI West NV Mid West East GEN 7 MK VI Gen7 MkVI • In North America, Viridian games are outperforming the older platform games and delivering up to nearly two tim
Slide 25: Game Releases
For personal use only Game Releases Aus / USA USA Only Jaws; Hit the Heights Viridian RFX Stepper; Sopranos Video; Mega Millioniser
Slide 26: Jamie Odell, Chief Executive Officer and Managing Director Elect
For personal use only Jamie Odell Chief Executive Officer and Managing Director Elect
Slide 27: Questions
For personal use only Questions