Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Investor Presentation (December 2006)
47 slides from Tabcorp's investor presentation, Dec 13, 2006
Slide 1: Conrad Jupiters
Conrad Jupiters Presentation by Xavier Walsh Managing Director, Jupiters Limited 13 December 2006 1
Slide 2: The changing face of Jupiters
The changing face of Jupiters ¾ Opened November 23rd 1985 with 400 rooms, 1 bar and 2 restaurants ¾ Official opening in February 1986 with additional 200 rooms, restaurants, bars and Fortunes Nightclub ¾ Over the years minimal changes have been made to the product ¾ Major Qualitative research undert
Slide 3: Wish List (unprompted)
Wish List (unprompted) Bright, light, sunny, WATER Make it symbolic of GOLD COAST Welcoming, friendly, upbeat Exciting, happening, casual, STYLISH 9 Let the light in 9 Inside/Outside eateries EMPTY… Zen, Hotel Bar, Club Conrad Use spaces more efficiently PACKED… Spinners, Atrium Bar, PA’s Want welco
Slide 4: Understanding our opportunity by segment
Understanding our opportunity by segment Primary ¾ Younger 18-34 ‘The boys’, ‘the girls’ or in mixed sex groups on their night out See Jupiters as tired and faded – the ‘excitement’ advantage that we once enjoyed over pubs and clubs has diminished as competitors have raised their game Need to
Slide 5: Listening to gaps in our Customers experience
Listening to gaps in our Customers experience Segment Experience Gap Experience Solution 18-34 Not enough places to kick on after Quid Bar - late night venue. midnight Old Gold Club location potential. Nowhere to dance Atrium and PA Pub continue to offer music/dance venue. Not enough places to sit w
Slide 6: Project Phoenix – New face for the Main Gaming Floor
Project Phoenix – New face for the Main Gaming Floor One level of Gaming • Targeted Customer Offerings • North Wing - Young Adult Market • Exciting • Night life incl. QUID Bar • Poker pit • South Wing Mature customer • Old Favourites • Keno Lounge • Break Out areas • BITE • Central – The Heart Of Ju
Slide 7: Enhanced Food & Beverage outlets
Enhanced Food & Beverage outlets 7
Slide 8: Main Gaming Floor – Pre Phoenix
Main Gaming Floor – Pre Phoenix 8
Slide 9: Main Gaming Floor – Post Phoenix
Main Gaming Floor – Post Phoenix 9
Slide 10: Minimising construction impacts on the main floor
Minimising construction impacts on the main floor ¾ Hoarding was used to block out the construction zones. ¾ Noise was a major factor in Customer and team member discomfort. 10
Slide 11: Phoenix EGM machine impact
Phoenix EGM machine impact No. of Operational EGM's (Gold Coast) 5800 1450 Phoenix North Wing 5750 Construction progressive Begins opening 5700 1400 5650 Clubs and Pubs 5600 1350 Jupiters 5550 Prior to Major Impact during 5500 Phoenix 1402 Apr 06 when Level 2 1300 machines closes 5450 5400 South Win
Slide 12: Bringing the Gold Coast inside
Bringing the Gold Coast inside New Balconies run the length of the North and South wings to bring the Gold Coast inside. Current DOSA Proposed Increased Smoking balconies to be extended following customer feedback and low usage by non smokers. 12
Slide 13: Maintaining premium gaming customer appeal
Maintaining premium gaming customer appeal ¾ Move from ‘downstairs’ to purpose built room for high value customers ¾ 181 machines (increase of 20) Improved Customer Experience ¾ Hosted reception / welcome desk ¾ Smaller banks offering greater privacy ¾ Greater circulation areas ¾ Relaxation / break
Slide 14: The master plan continues – Upgrade to Standard Rooms
The master plan continues – Upgrade to Standard Rooms 14
Slide 15: Relaunch overview
Relaunch overview • Radio ads & promos • Cinema ads with Casino Royale launch • Press promos • Press inserts • Launch of aerial angels in Atrium • New website launch 15
Slide 16: Relaunch overview
Relaunch overview 900 sq metre heli 2,000 inflatable banner over beaches on pillow handout weekends Branded polaroids At GC train stations given away to customers as random surprise and delight 16
Slide 17: Breaking the mould of casino advertising
Breaking the mould of casino advertising Target Customer 25-35 Entertainment seekers and Infrequent Gamers Key Insight Anticipation, possibility and promise “Anything is possible” Wanting to feel pride in THEIR casino Positioning the casino as Clearly differentiated (tables, show, scale, range of ac
Slide 18: Well my friends the time has come……
Well my friends the time has come…… 18
Slide 19: “Let Us Entertain You”
“Let Us Entertain You” Casinos Division 5 Year Strategy 2007-2011 Presentation by Walter Bugno Chief Executive, Casino Division 3 December 2006
Slide 20: Disclaimer
2 Disclaimer Whilst Tabcorp has exercised due care and diligence in compiling and presenting the information contained in this document, the figures and information have not been independently audited or verified. Tabcorp disclaims any obligation to provide any updates or revisions. No part of this
Slide 21: Our growth has been good but its slowing
3 Our growth has been good but its slowing 1. Casino Division net revenue (excluding rebate tables) 1. Data for 2002, 2003, 2004 is proforma including the Jupiters Casinos acquisition – 11/03 Casinos Division 5 Year Strategy 2007-2011
Slide 22: Consumer Gambling Behaviour is Changing
4 Consumer Gambling Behaviour is Changing Insights Australians love to gamble – it’s becoming more restrained Gambling and Fast Food are the big social issues Legislation has tightened – Smoking Bans, EGM numbers, Bet Limits Shift in L & E spend into non gambling activities Expenditure on ga
Slide 23: Competition has Intensified
5 Competition has Intensified Insights Society views pub and club gaming as more socially acceptable Perceptions: returns go back into community. Club goers don’t see themselves as gamblers more “club givers” Clubs have sophisticated rewards and recognition programs Youth get attracted by
Slide 24: Our CBD Casino visitation levels are low
6 Our CBD Casino visitation levels are low Increasing lack of distinctiveness and differentiation from alternative venues Hybrid games eroding tables exclusivity Non gaming offer lacks appeal Only 8.2% of adults in NSW / Qld visit our Casinos Tabcorp Casinos: only 1.9% of Australian L&E $
Slide 25: Historical investment levels have been low
7 Historical investment levels have been low Casinos division capex vs depreciation Capex as a percentage of revenue Dec 2005 June 2006 June 2006 Internal Data PBL Gaming PBL Gaming 2006/07 Division Division Forecast TabcorpInternal Tabcorp estimates and Data company data Source Casinos Division 5 Y
Slide 26: We know the customers with the highest potential value
8 We know the customers with the highest potential value High Achievers Life to the Max “A successful place with people like me” “exciting, crowded, happening people, draw attention to myself” • Aged 30 – 60 • Aged 18 – 34 • Affluent and middle income streams • “Spend it all Singles” • Risk takers •
Slide 27: Revenue pool by customer segment
9 Revenue pool by customer segment Annualised Market Size & Opportunities Gambling L&E Casino Value Market Market Value Opportunity ($M) Share (%) Opportunity ($M) ($M) ($M) Primary Market High Achievers Frequents $ 892.2 $ 166.4 18.7% $ 725.8 $ 277.9 Infrequents $ 242.1 $ 40.7 16.8% $ 201.4 $ 3,627
Slide 28: Frequents remain important
10 Frequents remain important Casino Division Frequent Market Opportunity L&E/Gambling Spend 2010-11 Share of L&E Spend Variance on FY06 +5.7% +11.2% +12.3% 2% 0% 14% 84% +12.3% Gambling F&B Accommodation Entertainment Source: EMDA October 2006 Casinos Division 5 Year Strategy 2007-2011
Slide 29: Infrequents are an increasing opportunity
11 Infrequents are an increasing opportunity Casino Division Infrequent Market Opportunity L&E/Gambling Spend 2010-11 Share of L&E Spend Variance on FY06 +20.4% +13.4% 1% 11% +5.7% 25% 63% +14.2% Gambling F&B Accommodation Entertainment Casinos Division 5 Year Strategy 2007-2011
Slide 30: We also know how they like to spend their L&E dollars
12 We also know how they like to spend their L& E dollars Gaming Cuisine Entertainment High Achievers Frequents • Texas Hold ‘em • Chinese • Live shows/Theatre • Blackjack • Thai • Art Gallery • Roulette • Italian • Internet Betting • The Big Wheel Infrequents • Blackjack • Chinese • Theatre & Resta
Slide 31: Cross-sales opportunities within our Casinos are real
13 Cross-sales opportunities within our Casinos are real The table above demonstrates the cross-sell opportunity available to our Casinos, based on Star City business model. Eg if a customer visits Star City for Gaming, then we will, on average, make EBITDA of $3.38 on related Food and Beverage. Cas
Slide 32: Our initiatives will drive penetration through Infrequents
14 Our initiatives will drive penetration through Infrequents Casino Penetration and Visitation by Customer Segment Sources: Roy Morgan Gambling Monitor (April 2005 – March 2006) Casinos Division 5 Year Strategy 2007-2011
Slide 33: Our vision is about reinventing ourselves
15 Our vision is about reinventing ourselves Casinos Division 5 Year Strategy 2007-2011
Slide 34: In simple terms our re-invent strategy is about MORE
16 In simple terms our re-invent strategy is about MORE Casinos Division 5 Year Strategy 2007-2011
Slide 35: We are building on 06-07 platforms
17 We are building on 06-07 platforms 2006-10 plan core strategies Status Aligned divisional loyalty program Delayed , In part of 2007-11 plan Customer Customer relationship management Implemented Centralised data warehouse In 2007-11 plan strategies Brand Align all properties to Jupiters brand in F
Slide 36: We have shifted the organisational focus
18 We have shifted the organisational focus Efficiency Growth Leverage From: To: CASINO OPERATIONS EXECUTION STRATEGY SUPPORT S J T B S JUPITERS P C F H L C T E o E T U R R T R U I R G m C A P E E A O S N A p H L l R I A A R D T A / i S a E T S K U O N R R n E U W C M C E c V G e R R A T E E S Y T R
Slide 37: We have a 4 Step Plan to deliver
19 We have a 4 Step Plan to deliver 2011 2010 2009 2008 Extending the Boundaries 2007 Changing the Game 2006 Playing to Win Getting Match Fit Casinos Division 5 Year Strategy 2007-2011
Slide 38: All with a universal goal
20 All with a universal goal Casinos 2007-11 5 year strategy
Slide 39: ANSE eth,
“ Si 3 le ANSE eth,
Slide 40: Tomorrow
Tomorrow
Slide 41: Conrad Treasury
CONRAD TREASURY
Slide 42: Conrad Treasury
CONRAD TREASURY HUAN td acy s S
Slide 43: a « “ a Fa - ' eo
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Slide 44: Tomorrow
fir oe ATLA a , tf 5b ite Tomorrow CONRAD JUPITERS im
Slide 45: 27
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Slide 46: Tomorrow
Tom orrow
Slide 47: We will be remembered
We will be remembered for making our casinos the place to be Our Legacy .
Tabcorp Holdings — Investor Presentation (December 2006) on 6ix