Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Merger or Acquisition (October 2016)
16 slides from Tabcorp's merger presentation, Oct 19, 2016
Slide 1: Tabcorp / Tatts presentation ASX cover letter
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 19 October 2016 To: Australian Securities Exchange Market Announcements Office 2
Slide 2: Recommended combination of Tabcorp Holdings Limited and Tatts Group Limited
For personal use only Recommended combination of Tabcorp Holdings Limited and Tatts Group Limited Tabcorp and Tatts to combine to create a world-class, diversified gambling entertainment group 19 October 2016
Slide 3: Disclaimer
Disclaimer This presentation (Presentation) provides information in summary form and should be read in conjunction with the announcement in relation to the proposed transaction between Tabcorp Holdings Limited (Tabcorp) and Tatts Group Limited (Tatts) (the Transaction) that was released today. This
Slide 4: Transaction benefits
Transaction benefits Tabcorp and Tatts to combine to create a world-class, diversified gambling entertainment group For personal use only 1 Creates a leading, diversified portfolio of gambling entertainment businesses – long-dated suite of licences – well positioned to invest, innovate and compete i
Slide 5: Transaction summary
Transaction summary Tabcorp and Tatts have entered into an Implementation Deed to combine the two companies • Tatts shareholders to receive 0.80 Tabcorp shares plus 42.5 cents cash for each Tatts share held For personal use only Structure - Tatts intends to pay its shareholders a fully-franked speci
Slide 6: Overview of the Combined Group
Overview of the Combined Group Combination delivers scale to support future growth and an enhanced ability to invest and innovate in a highly competitive and rapidly evolving market For personal use only • Combined pro forma enterprise value of approximately $11.3 billion and market capitalisation o
Slide 7: Stronger and more diversified portfolio of businesses
Stronger and more diversified portfolio of businesses Combination delivers an enhanced portfolio of long-dated licences and a more diverse earnings base 2016 2036 2056 2076 2096 2116 For personal use only FY 2016 EBITDA—Tabcorp1,2 FY 2016 EBITDA—Tatts1,2,3 SA 2100 QLD 2098 Keno Gaming Lotteries Wage
Slide 8: Combines two largely complementary businesses
Combines two largely complementary businesses Combines two Australian industry icons, creating a champion of gambling entertainment with a national footprint across a broad suite of leading brands and products For personal use only The Combined Group's businesses, brands and jurisdictions Geographic
Slide 9: Significant synergies to be generated from the combination
Significant synergies to be generated from the combination Expected to deliver at least $130 million of annual EBITDA synergies and business improvements, net of benefits to the racing industry. Estimated synergies and business improvements valued at For personal use only approximately $1.4 billion1
Slide 10: Summary of wagering performance optimisation under the TAB brand
Summary of wagering performance optimisation under the TAB brand The Combined Group is expected to benefit from Tabcorp's fixed odds yield management capability and market leading TAB brand and product offering For personal use only Significant earnings are expected to be available through The Combi
Slide 11: Increased financial scale and balance sheet strength
Increased financial scale and balance sheet strength Combined Group is expected to be an ASX50 listed company, with a strong balance sheet and an investment grade credit rating For personal use only • Strong balance sheet - increased financial scale and associated balance sheet strength provides an
Slide 12: Benefits to both sets of shareholders
Benefits to both sets of shareholders Combination to deliver significant benefits to both sets of shareholders For personal use only Exposure to an enhanced business profile, with a more diversified portfolio of long-dated gambling licences, that is better placed to invest, innovate and compete
Slide 13: Enhancing the sustainability of the Australian racing industry
Enhancing the sustainability of the Australian racing industry The combination creates a strong wagering operator, committed to enhancing the long-term sustainability of Australia’s racing industry For personal use only • Tabcorp and Tatts are together the largest source of funding for the Australia
Slide 14: Enhancing the strength of Australian business partners
Enhancing the strength of Australian business partners The combination is expected to deliver material benefits to Tatts' and Tabcorp's business partners including lottery retail agents, licensed venues and TAB agencies For personal use only Lottery retail agents (newsagents and convenience stores)
Slide 15: Enhancing the customer offering
Enhancing the customer offering The Combined Group will deliver a winning offer for customers, including an increased range of products and high quality customer experiences across each channel For personal use only • The combination is expected to significantly enhance customer experiences across e
Slide 16: Conclusion
Conclusion The Transaction creates a world-class, diversified gambling entertainment group with a wide range of benefits to all key stakeholders For personal use only Shareholders The Australian racing industry Business partners Customers Our people Both Boards unanimously recommend the Tr
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