Tabcorp Holdings Limited · ASX:TAH
Tabcorp — FY2014 Earnings Presentation
24 slides from Tabcorp's earnings presentation, Aug 7, 2014
Slide 1: ASX cover letter: Full Year Results Presentation
Tabcorp Holdings Limited ACN 063 780 709 5 Bowen Crescent Melbourne Australia 3004 GPO Box 1943 Melbourne Australia 3001 Telephone 61 3 9868 2100 Facsimile 61 3 9868 2300 For personal use only Website www.tabcorp.com.au 7 August 2014 To: Australian Securities Exchange Market Announcements Office 20
Slide 2: 2013/14 Full Year Results Presentation
Tabcorp Holdings For personal use only Limited ABN 66 063 780 709 2013/14 Full Year Results Presentation 7 August 2014
Slide 3: FY14 overview
FY14 overview Statutory NPAT $129.9m, up 2.6% For personal use only NPAT from continuing operations before significant items $149.4m, up 7.4% Statutory EPS 17.2 cents per share, in line with pcp EPS from continuing operations before significant items 19.8 cents per share, up 4.8% Full year
Slide 4: Group Results
Group Results $m FY14 FY13 Change For personal use only Revenues 2,039.8 2,003.2 1.8% Variable contribution 919.5 885.6 3.8% Operating expenses (433.4) (421.7) 2.8% EBITDA from continuing operations before significant items 486.1 463.9 4.8% D&A (164.4) (151.1) 8.8% EBIT from continuing operations be
Slide 5: Business results
Business results Wagering Change Media Change Gaming Change Keno Change Group Change For personal use only $m on pcp & Int'l on pcp Services on pcp on pcp on pcp Revenues 1,574.7 1.1% 220.4 6.2% 98.1 13.7% 203.9 (0.7%) 2,039.8 1.8% Variable contribution 566.2 3.5% 192.4 4.0% 98.1 13.7% 113.4 (2.5%)
Slide 6: Wagering: KPIs
Wagering: KPIs Change Change Change $m 1H14 on pcp 2H14 on pcp FY14 on pcp Total revenue growth of 1.8% including the For personal use only Revenues by product Victorian Racing Industry interest Totalisator Vic 328.3 (3.8%) 271.7 (9.3%) 600.0 (6.4%) Totalisator revenues impacted by customer Tota
Slide 7: Customer focus and digital investment
Customer focus and digital investment Increased digital capability and scale For personal use only Built in-house digital capability Mobile represents 54% of digital turnover (35% in pcp) Enhanced digital offering HTML tablet website released and new tab.com.au website in development Ded
Slide 8: Acquisition of ACTTAB
Acquisition of ACTTAB Agreement to acquire ACTTAB for $105.5m, funded from existing bank facilities For personal use only Completion of acquisition expected in 1H15, subject to regulatory approvals, including ACCC clearance Long-term licences Totalisator (50 years exclusive) Sports Bookmak
Slide 9: Media & International
Media & International $m FY14 FY13 Change Revenue growth driven by increased For personal use only Revenues 220.4 207.6 6.2% international vision and co-mingling Variable contribution 192.4 185.0 4.0% Co-mingling expanded to include Singapore betting into Tabcorp pools Operating expenses (123.9)
Slide 10: Gaming Services
Gaming Services $m FY14 FY13 Change For personal use only Victoria Revenues 98.1 86.3 13.7% Contracts cover approximately 8,500 Operating expenses (31.1) (28.0) 11.1% EGMs EBITDA 67.0 58.3 14.9% In-EGM loyalty approved and roll out EBIT 39.7 37.5 5.9% commenced NSW Expansion commenced 12
Slide 11: Keno
Keno $m FY14 FY13 Change For personal use only Revenues 203.9 205.4 (0.7%) Revenue continues to be impacted by soft retail trading conditions Operating expenses (41.2) (40.8) 1.0% Qld and NSW flat EBITDA 72.2 75.5 (4.4%) Vic up 3.6% EBIT 51.7 52.2 (1.0%) Keno Racing rolled out into 450 Venue
Slide 12: Capital expenditure and investments
Capital expenditure and investments Capex trend Major capex projects For personal use only Wagering 150 Digital strategy 133 119 124 Technology enhancements Self service and retail refurbishments Gaming Services EGMs In-EGM loyalty NSW expansion Keno Jackpot pooling FY11 FY12 FY1
Slide 13: Key capital features
Key capital features Debt Structure For personal use only $m Bank facilities 500 1 Tabcorp Subordinated notes 400 US Private Placement 300 200 400 400 150 250 100 127 84 0 FY15 FY16 FY17 FY18 FY19 FY20+ Bond maturities refinanced 1 May 2014 with bank debt, resulting in interest savings of c.$10m
Slide 14: Conclusion
Conclusion Business strongly positioned for future For personal use only Licence extensions and agreement to acquire ACTTAB strengthen group portfolio New senior executive leadership structure in place Improved balance sheet FY15 target dividend payout to 90% of NPAT FY15 focus Wagerin
Slide 15: Appendices
Appendices 1. Group results For personal use only 2. Wagering: Financial data 3. Wagering: Revenues by state and product 4. Gaming Services: Financial data 5. Keno: Financial data 6. Balance sheet 7. Cashflow 14
Slide 16: 1. Group results
1. Group results $m FY14 FY13 Change For personal use only Revenues 2,039.8 2,003.2 1.8% Government taxes & levies (349.5) (359.4) (2.8%) Operating commissions (256.5) (258.1) (0.6%) Racing industry fees (514.3) (500.1) 2.8% Variable contribution 919.5 885.6 3.8% Operating expenses (433.4) (421.7) 2
Slide 17: 2. Wagering: Financial data
2. Wagering: Financial data For personal use only $m FY14 FY13 Change Totalisator - Vic 322.0 352.5 (8.7%) Totalisator - NSW 662.9 706.9 (6.2%) Fixed Odds 407.1 328.2 24.0% Trackside 64.1 64.1 0.0% Luxbet 47.9 39.1 22.5% Other 70.7 67.2 5.2% Revenues 1,574.7 1,558.0 1.1% Taxes, levies, commissions a
Slide 18: 3. Wagering: Revenues by state and product
3. Wagering: Revenues by state and product For personal use only NSW Change Vic Change Total Change $m FY14 on pcp FY14 on pcp FY14 on pcp Thoroughbred 432.9 (6.2%) 215.1 (8.2%) 648.0 (6.9%) Harness 81.9 (7.9%) 42.7 (11.4%) 124.6 (9.1%) Greyhound 148.1 (5.2%) 64.2 (8.3%) 212.3 (6.2%) Totalisator 662
Slide 19: 4. Gaming Services: Financial data
4. Gaming Services: Financial data For personal use only $m FY14 FY13 Change Operating revenue 95.1 81.6 16.5% Other revenue 3.0 4.7 (36.2%) Revenues 98.1 86.3 13.7% Operating expenses (31.1) (28.0) 11.1% EBITDA 67.0 58.3 14.9% D&A (27.3) (20.8) 31.3% EBIT 39.7 37.5 5.9% EBIT/Revenue 40.5% 43.5% (3.
Slide 20: 5. Keno: Financial data
5. Keno: Financial data For personal use only $m FY14 FY13 Change Operating revenue 165.6 165.3 0.2% Other revenue 38.3 40.1 (4.5%) Revenues 203.9 205.4 (0.7% ) Taxes, levies, commissions and fees (90.5) (89.1) 1.6% Operating expenses (41.2) (40.8) 1.0% EBITDA 72.2 75.5 (4.4% ) D&A (20.5) (23.3) (12
Slide 21: 6. Balance Sheet
6. Balance Sheet $m Jun 14 Jun 13 Change For personal use only Total current assets 181.0 221.3 (18.2%) Licences 726.6 750.3 (3.2%) Other intangible assets 1,833.9 1,772.4 3.5% Property, plant and equipment 312.6 308.5 1.3% Other non current assets 51.0 92.1 (44.6%) Total assets 3,105.1 3,144.6 (1.3
Slide 22: 7. Cashflow
7. Cashflow $m FY14 FY13 Change For personal use only Net operating flows 541.2 494.1 9.5% Net interest payments (100.1) (101.5) (1.4%) Income tax paid (75.2) (108.4) (30.6%) Payments for PP&E and intangibles (198.4) (204.2) (2.8%) Sub-total 167.5 80.0 >100% Dividends paid (net) (60.0) (116.1) (48.3
Slide 23: Disclaimer
Disclaimer This Presentation contains summary information about the current activities of Tabcorp Holdings Limited (Tabcorp) and its subsidiaries (Tabcorp Group). It should be read in conjunction with the Tabcorp Group’s other periodic and continuous For personal use only disclosure announcements lo
Slide 24: For personal use only
For personal use only 23 Draft version 14 (29-07-