Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Merger or Acquisition (December 2023)
17 slides from Tabcorp's merger presentation, Dec 18, 2023
Slide 1: New Victorian Wagering and Betting Licence Presentation
18 December 2023 ASX Market Announcements Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 New Victorian Wagering and Betting Licence Presentation Attached is the presentation regarding Tabcorp Holdings Limited’s (Tabcorp) new Victorian Wagering and Betting Licence. This presentation
Slide 2: New Exclusive Victorian Wagering and Betting Licence
NEW EXCLUSIVE VICTORIAN WAGERING AND BETTING LICENCE 18 DECEMBER 2023 ABN 66 063 780 709
Slide 3: Tabcorp Awarded the New Exclusive Victorian Wagering and Betting Licence
TABCORP AWARDED THE NEW EXCLUSIVE VICTORIAN WAGERING AND BETTING LICENCE GOVERNMENT EXCLUSIVE LICENCE PRO-FORMA FY23 NEW MODERNISED COMMITMENT TO PERIOD OF 20 EBITDA UPLIFT OF LICENCE TERMS ENSURE RETAIL YEARS $140M1 EXCLUSIVITY $600M INDICATIVE LEVEL PLAYING $30M ONGOING UPFRONT LICENCE MATERIALLY
Slide 4: Key Highlights
KEY HIGHLIGHTS 1 Enhances Tabcorp’s 2 Extends Tabcorp’s 3 Secures Tabcorp’s ongoing competitiveness high quality portfolio of unique customer through a transformative long-term licences experience across 20 year licence which destinations, digital and levels the playing field vision 4 Step increase
Slide 5: Enhances Tabcorp's Ongoing Competitiveness Through a Transformative 20 Year Licence
HIGHLIGHT 1 ENHANCES TABCORP’S ONGOING COMEPTITIVENESS THROUGH A TRANSFORMATIVE 20 YEAR LICENCE WHICH LEVELS THE PLAYING FIELD KEY LICENCE TERMS PREVIOUS LICENCE NEW LICENCE Victoria Wagering EBITDA $49m (FY23) $189m (FY23 pro-forma) (including contribution from PGI) VIC VC Margin ~32% (FY23) ~47% (
Slide 6: Extends Tabcorp's High Quality Portfolio of Long-Term Licences
HIGHLIGHT 2 EXTENDS TABCORP’S HIGH QUALITY PORTFOLIO OF LONG-TERM LICENCES LICENCE EXPIRY 2097 NEW SOUTH WALES (retail exclusivity expiry in 2033) VICTORIA 20441 2098 QUEENSLAND (retail exclusivity expiry in 2044) SOUTH AUSTRALIA 2100 (retail exclusivity expiry in 2032) 20622 TASMANIA (retail exclus
Slide 7: Secures Tabcorp's Unique Customer Experience Across Destinations, Digital and Vision
HIGHLIGHT 3 SECURES TABCORP’S UNIQUE CUSTOMER EXPERIENCE ACROSS DESTINATIONS, DIGITAL AND VISION #1 RETAIL & ONCOURSE (~4,000 VENUES) DIGITAL SCALE #2 DIGITAL WAGERING #1 PARIMUTUEL #1 VISION MULTIPLE CHANNELS OUR REACH TO ENGAGE WITH CUSTOMERS CUSTOMERS UNIQUE, HARD TO REPLICATE DIFFERENTIATED PORT
Slide 8: Step Increase in Scale and Quality of Group Earnings
HIGHLIGHT 4 STEP INCREASE IN SCALE AND QUALITY OF GROUP EARNINGS, AND MATERIALLY ROIC AND EPS ACCRETIVE FY23PF EBITDA uplift of $140m from: ILLUSTRATIVE FY23PF EBITDA ($M)1 ILLUSTRATIVE FY23PF EPS (CPS)3 • Net reduction in fees to the VRI +$140m +44% (+$180m) • Increase in POCT5 (-$40m) 531 5.4 FY23
Slide 9: Upfront Licence Premium Intended to Be Fully Funded From Existing Debt Facilities
HIGHLIGHT 5 UPFRONT LICENCE PREMIUM INTENDED TO BE FULLY FUNDED FROM EXISTING DEBT FACILITIES 20 YEAR $600m INCREASED SCALE & IMPROVED QUALITY OF EARNINGS ENHANCES Licence period commencing 16 August Upfront licence premium payment to be TABCORP’S FINANCIAL PROFILE 2024 made in June 2024 $30m 1 $264
Slide 10: Proposed New Transition Arrangements Will Offer Certainty to the Victorian Racing Industry
HIGHLIGHT 6 PROPOSED NEW TRANSITION ARRANGEMENTS WILL OFFER CERTAINTY TO THE VICTORIAN RACING INDUSTRY New licence regime Proposed funding support will result in cessation to the VRI to include: of current VRI JV and existing industry funding agreements Tabcorp paying the VRI fixed distributions Rev
Slide 11: Demonstrates Tabcorp's Ongoing Commitment to Industry Stakeholders and Harm Minimisation
HIGHLIGHT 7 DEMONSTRATES TABCORP’S ONGOING COMMITMENT TO INDUSTRY STAKEHOLDERS AND HARM MINIMISATION RESPONSIBLE ANIMAL HARM GAMBLING WELFARE MINIMISATION $2.0m1 direct investment into responsible $2.5m1 direct investment into existing Racing Commitment to deliver customer-centric gambling program i
Slide 12: Summary and Conclusion
SUMMARY AND CONCLUSION The new Victorian Licence is a win for Tabcorp, a win for Victoria and a win for Industry: Enhances Tabcorp’s ongoing competitiveness and growth potential Extends Tabcorp’s high quality portfolio of licences Secures Tabcorp’s unique customer experience Materially increases sca
Slide 13: Appendix
APPENDIX Tabcorp
Slide 14: Illustrative Financial Impact Summary
APPENDIX ILLUSTRATIVE FINANCIAL IMPACT SUMMARY $M FY23A Change FY23 PF EBITDA 391 A 140 531 A• Net reduction in fees to the VRI (+$180m), offset by increase in POCT (-$40m) D&A (excl. Victorian Licence amortisation) (206) – (206) • Removal of Victorian licence amortisation for B previous licence Old
Slide 15: Key Financial Terms of the New Licence
APPENDIX KEY FINANCIAL TERMS OF THE NEW LICENCE KEY FINANCIAL TERMS PREVIOUS LICENCE (AS OF DECEMBER 2023) NEW LICENCE Joint venture profit share 50% Tabcorp / 50% VRI No VRI JV Victorian tax rates 10% POCT 15% POCT Program fee $72.6m Nil • Parimutuel 12.7% Product fees • Fixed odds 9.6% Nil • Track
Slide 16: Disclaimer
DISCLAIMER This Presentation contains summary information about the current Neither Tabcorp nor any other person warrants or guarantees and ‘non-GAAP financial measures’ within the meaning of Regulation G activities of Tabcorp Holdings Limited (Tabcorp) and its subsidiaries the future performance of
Slide 17: Thank You
FOR MORE INFORMATION: MEDIA: Daniel Meers Daniel.Meers@tabcorp.com.au 0419 576 961 THANK YOU INVESTOR RELATIONS: Terry Couper Terry.Couper@tabcorp.com.au 0408 551 935
Tabcorp Holdings — Merger or Acquisition (December 2023) on 6ix