Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — FY2006 Earnings Presentation
15 slides from Aristocrat Leisure's earnings presentation, Feb 20, 2007
Slide 1: Results for the 12 months ended 31 December 2006
Aristocrat Leisure Limited Results for the 12 months ended 31 December 2006 Chief Executive Officer Chief Financial Officer and Managing Director and Finance Director Paul Oneile Simon Kelly Disclaimer This document and any oral presentation accompanying it has been prepared in good faith. However,
Slide 2: Agenda
Paul Oneile Chief Executive Officer and Managing Director Agenda Introduction Review of Financials Segment Review New Businesses Growth Opportunities Outlook
Slide 3: Summary of Results
Summary of Results * Profit After Tax $239 million — down 2.2% + Underlying non-Japanese profit growth ~ up 26.7% * Strong underlying operating cash ~— 28% of revenue * 24 cps Final dividend — up 20% * Research and development investment — up 45% to $95.2 million * Key strategic acquisitions complet
Slide 4: Income Statement
Income Statement Total Revenue Gross Profit GP% Expenses* Share of Associate PAT EBIT (Pre R&D) R&D R&DiRevenue% EBIT Profit Before Tax Income Tax Expense Effective Rate% Profit After Tax and Minorities * before R&D, foreign exchange and interest 2006 2005 $m $m 1,094.7 1,317.0 642.9 679.9 58.7% 51.
Slide 5: Key Drivers of EBIT
Key Drivers of EBIT + Global volume growth + Improved pricing + Cost efficiencies + Leverage of fixed cost structures Offset by increased investment in R&D, infrastructure and skills "aaa a in Segment Revenue* Split 2005 Segment Revenue by region 2006 Segment Revenue by region Australia/ NZ “Mature”
Slide 6: Business Segmentation
Business Segmentation* $m Revenue Segment Profit Profit After Tax 800 224% 700 600 500 (1.8)% 41.7% 47.3% (86.8)%| (0.8)% {0.8)% — [| (106.4) -100 (108.3)% 0 Australia/NZ & Growth markets m™ Japan | *Actual revenue and percentage change period-on-period RISTO ea ee Management Cash Flow 2006 2005 $m
Slide 7: Management Cash Flow
Management Cash Flow 2006 2005 $m $m Net cash infiow from operating activities 204.8 393.2 Acquisitions (153.5) - Net other investing activities (36.9) (36.9) Capital management initiatives (90.6) (228.8) Dividends paid (149.3) (66.7) Net other cash flows 1.3 15.4 Movement in net cash (224.2) 75.9 E
Slide 8: Working Capital and Capital Management
Working Capital % of LTM Revenue Net Working Capital -% of Last 12 Months Revenue 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 10% target Jun Dee Jun Dee Jun Dec Jun Dee Jun Dec Jun Dec 01 01 02 02 03 03 04 04 O05 05 06 06 "aaa a in Capital Management 2006 Finai Dividend ~- 24 cps fully frank
Slide 9: Key Financials and Ratios
Key Financials and Ratios EBITDA EBIT (Pre R&D) EBIT Working Capital/Revenue (%)* Operating Cash Flow Operating Cash Flow/Revenue (%) Net (Debt)/Cash Debt(EBITDA* EBITDA/interest Expense* Return on Equity* Fully Diluted EPS (cents) * Based on preceding 12 month's results (40.8) 0.4X 24.3X 65.8% 50.9
Slide 10: Australia/New Zealand
Australia/New Zealand 2006 2005 $m $m Segment Revenue 302.8 308.4 Segment Contribution Profit 121.2 121.8 Segment Margin 40.0% 39.5% Variance % (1.8)% (0.5)% +0.5 Pts Australia + First revenue growth in four years + Early signs of a positive change in market sentiment + Ongoing challenging market co
Slide 11: North America
North America 2006 2005 Variance $m $m % Segment Revenue 565.2 498.9 413.3% Segment Contribution Profit 252.4 182.3 +38.5% Segment Margin 44.7% 36.5% +8.2 Pts + Outstanding performance in subdued market + Improved pricing and flat cost structures + Unit sales increased 1.2% to 17,829 units, strong s
Slide 12: Japan
Japan 2006 2005 Variance $m $m % Segment Revenue 50.4 373.7 {86.5)% Segment Contribution Profit (8.6) 88.6 {106.4)% Segment Margin {11.1)% 23.5% nla Short term market uncertainties - Regulation 5 transition Sales of 12,043 units vs 98,007 units First Regulation 5 game launched successfully — 10,100
Slide 13: Other Markets
Other Markets* 2006 2005 Variance $m $m % Segment Revenue 165.6 119.3 +29.9% Segment Contribution Profit 54.7 36.6 449.5% Segment Margin 36.3% 30.7% +4.6 Pts * Byeludes Eloktron’ek ang ACE Interactive + Continuation of strong growth in emerging markets: * Asia-Pacific (+31%), Europe (+64%) * South A
Slide 14: New Businesses and Growth Opportunities
New Businesses ACE Interactive + Interactive video lottery (iVT) solutions supplier + Provides server-based gaming technology + Initial contract with Casinos Slovakia + Focusing on opportunities across Europe and Asia Elektronéek + 50% interest acquired + Commands 55% share of the Macau market + Tra
Slide 15: Outlook
Outlook 2007 - Strong share and profit growth Major influences on outcome: + North America ~ new jurisdictions, stepper launch + Success of Japanese Regulation 5 games + Maintaining/growing share in Asia, especially Macau + Australian market performance + Licencing of new product lines 2008/2009 ~ S