Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Macquarie Securities Group Australian Conference 2009
19 slides from Tabcorp's conference presentation, May 7, 2009
Slide 1: Macquarie Securities Group Australian Conference 2009
For personal use only Macquarie Securities Group Australian Conference 2009 May 7, 2009 Elmer Funke Kupper, CEO 1
Slide 2: Summary
Summary ¾ Tabcorp is Australia’s largest Gambling Entertainment company, with leading For personal use only positions in the most attractive markets in Australia ¾ Tabcorp is entering the second phase of its transformation journey First phase: Focus on operational improvement to ‘bring the house i
Slide 3: Leading positions in the largest markets
Leading positions in the largest markets Casinos For personal use only Four properties: ¾ 399 tables ¾ 1,398 hotel rooms ¾ 4,437 EGMs ¾ 54 restaurants / bars ¾ 3 theatres ¾ 2 convention centres 8,016 employees Wagering Leading operator: ¾ 2,573 retail outlets ¾ Sky in 2.2m homes ¾ $1b internet sales
Slide 4: Diversified business mix
For personal use only Diversified business mix Key licences held by Tabcorp FY08 EBITDA by business Casinos Star City 2093 NSW Conrad Jupiters Perpetual Wagering & Media Vic Gaming 19% Conrad Treasury 2070 24% Jupiters Townsville Perpetual Wagering Vic Victorian Wagering Licence 2012 Wagering Keno 1
Slide 5: Key themes of transformation
Key themes of transformation 2008 2009 2010 2011 2012 2013 For personal use only 1 Improve Group performance 2 Drive business performance and growth 3 Transition to post 2012 environment 5
Slide 6: Improved expense management
For personal use only Improved expense management Operating expense growth Comments ¾ Improvement since 2007 driven by IRB bad debt 9.2% Corporate office downsizing Process improvement Outsourcing ¾ Financial discipline; accountability 4.9% with business divisions ¾ Higher expenses in 2009 2.3
Slide 7: Specialist division leadership
Specialist division leadership Casinos For personal use only Larry Mullin Joined February 2009 Previously President and COO Borgata Hotel Casino and Spa in Atlantic City CASINOS Worked on the transformation of Borgata to become leading entertainment destination 20 year career in US casino operations
Slide 8: Re-engaging with our people
For personal use only Re-engaging with our people 2009 Staff Engagement Survey 2009 Staff Engagement Survey Response rate (%) Engagement (%) 80% 70% 59% 56% 2008 2009 2008 2009 8
Slide 9: Progress in improving customer focus
Progress in improving customer focus ¾ New local market experience from Atlantic City For personal use only ¾ Redevelopment investment and expansion of non-gaming offer Casinos ¾ New service standards, presentation and rewards ¾ Increase in tailored marketing activities and offers ¾ New systems capa
Slide 10: Business performance first half 2009
For personal use only Business performance first half 2009 $m Casinos1 Change Wagering Change Gaming Change Revenues 674.7 0.2% 834.0 13.0% 628.8 5.7% Expenses (345.8) 6.3% (152.1) 4.1% (36.0) (0.7%) EBITDA 200.0 (11.0%) 175.5 12.3% 168.3 10.7% EBIT 165.9 (12.7%) 145.4 14.9% 144.1 11.1% Capex 50.9 3
Slide 11: Casinos: drive business performance and growth
For personal use only Casinos: drive business performance and growth ¾ Deliver Star City expansion 30-50% expansion of the offer Entertainment destination ¾ Accelerate organic growth Drive growth in IRB, PGR Improve service at every customer touch point Star City update Increase and refocu
Slide 12: Wagering: lead in a national market place
Wagering: lead in a national market place Racing Industry Contribution ¾ Maintain leadership For personal use only (cents/$ turnover) Continue product, channel investment 5-6c Expand self service technology Grow fixed odds offer in all channels 1.5c 0.5-1c ¾ Step up competitive response 0.01c
Slide 13: Wagering: call for national funding and regulation
For personal use only Wagering: call for national funding and regulation Issues Recommendations Wide variation in 1. Ensure national consistency. May Tax rates – 19% to nil require transfer to Commonwealth Product fees – 6 cents/$ to 0.5 cents/$ 2. Prohibit TOTE odds betting Regulatory freedom
Slide 14: Gaming: optimise performance towards 2012
For personal use only Gaming: optimise performance towards 2012 ¾ Optimise performance of Vic Vic Gaming Market Share (%) Gaming business to 2012 53% Maintain revenue performance 52% Tabcorp Grow market share 51% 50% ¾ Test market appetite for post 49% Tatts Group 2012 service business 48% Man
Slide 15: 2012 transition
For personal use only 2012 transition FY08 EBITDA (normalised) 2012 Transition Business focus ¾ Invest in casinos; will represent $120m majority of group EBIT from 2012 ¾ Maintain national wagering leadership $671m $246m ¾ Test market appetite for post 2012 gaming offer ¾ Victorian licence processes
Slide 16: Strong balance sheet and funding flexibility
Strong balance sheet and funding flexibility Bank Debt For personal use only Debt maturities ($m) 700 Medium Term Notes 600 US Private Placement 500 Tabcorp Bonds 400 300 200 100 FY09 10 11 12 13 14 15 16 17 18 19 20 Equity: Debt: ¾ Raised $387m Jan/Feb 2009 ¾ Raised $284m through Tabcorp Bonds ¾ Di
Slide 17: Trading performance and outlook
Trading performance and outlook ¾ Revenue growth in financial year 2009 For personal use only Jan – April 2009: 3.6% Financial year to date: 5.3% Higher wagering product fees ($21m in 2009), price promotions and mix changes reduce flow through to Variable Contribution ¾ 2010 outlook tougher
Slide 18: Summary
Summary ¾ Tabcorp is Australia’s largest Gambling Entertainment company, with leading For personal use only positions in the most attractive markets in Australia ¾ Tabcorp is entering the second phase of its transformation journey First phase: Focus on operational improvement to ‘bring the house i
Slide 19: For personal use only
For personal use only Front cover: Images from Tabcorp's Casino, Wagering and Gaming businesses. The Phantom of the Opera photograph is courtesy of Jeff Busby. 19
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