Slide 1: Tabcorp Full Year Results 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 9 August 2012 To: Australian Securities Exchange Companies Announcements Platfor
Slide 2: 2011/12 Full Year Results Presentation
For personal use only Tabcorp Holdings Limited ABN 66 063 780 709 2011/12 Full Year Results Presentation 9 August 2012
Slide 3: A successful year
A successful year For personal use only Strong EBIT growth in challenging market conditions Key FY12 outcomes Completed demerger separation Awarded new Victorian Wagering and Betting Licence Launched new Victorian Keno licence Refinanced FY13 debt maturities Launched Premier Gateway In
Slide 4: FY12 financial results – continuing operations
FY12 financial results – continuing operations For personal use only NPAT from continuing operations $340.0m, up 12.7%1 Reflects underlying earnings growth Benefited from lower interest expense following demerger EBITDA from continuing operations $725.2m, up 5.6% 1 EBIT from continuing ope
Slide 5: FY12 financial results – continuing operations
FY12 financial results – continuing operations For personal use only EBIT $591.7m, up 5.2%1 Revenues $3,038.5m up 3.1% Variable contribution $1,141.3m up 5.4% Operating expenses $416.1m up 5.2% EBITDA $725.2m up 5.6%1 Business performance (EBIT) Wagering $242.2m up 10.0%1 Media & Int
Slide 6: Business results
Business results For personal use only 3 Wagering Change Media Change Gaming Change Keno Change Group Change $m on pcp & Int'l on pcp on pcp on pcp on pcp Revenues 1,637.4 4.4% 190.2 6.1% 1,078.9 0.1% 183.1 8.0% 3,038.5 3.1% Variable contribution1 593.3 7.7% 179.1 6.5% 318.0 0.5% 102.0 7.6% 1,141.3
Slide 7: Wagering: KPIs
Wagering: KPIs $m 1H12 Change 2H12 Change FY12 Change For personal use only Fixed Odds delivered strong growth of 41.5% Revenues by product Totalisator Vic 325.1 (5.5%) 286.0 (1.2%) 611.1 (3.6%) Growth offsetting declines in totalisator revenues Totalisator NSW 384.3 (7.2%) 335.4 (5.3%) 719.7 (6
Slide 8: Wagering highlights
Wagering highlights New Victorian Wagering and Betting licence For personal use only Transition activities on track Retail Expansion program increased the network size by 186 sites Retail growth achieved in challenging market conditions Online New tab.com.au website launched Streamin
Slide 9: Media & International
Media & International For personal use only $m FY12 FY11 Change Revenue growth due to subscription Revenues 190.2 179.3 6.1% revenue and increased export Operating expenses (113.4) (108.4) 4.6% Expenses driven by outside broadcast TV production, rights fees and digital EBITDA 65.7 59.8 9.9% inve
Slide 10: Gaming: KPIs
Gaming: KPIs For personal use only $m FY12 FY11 Change Victorian Tabaret Revenues 1,078.9 1,077.4 0.1% Managing transition for end of licence in Operating expenses (35.4) (36.7) (3.5%) August 2012. Operating expenses well controlled. EBITDA 282.6 279.6 1.1% Goodwill write-off expected to be $47m
Slide 11: Keno: KPIs
Keno: KPIs $m FY12 FY11 Change For personal use only Strong performance Revenues 183.1 169.6 8.0% Qld revenues up 6.9% Operating expenses (38.6) (34.2) 12.9% EBITDA 63.4 60.6 4.6% NSW revenues up 7.6% EBIT 48.3 48.8 (1.0%) Expenses driven by Venues (Qld, NSW) 2,833 2,735 3.6% Start up cost
Slide 12: Capital expenditure and investments
Capital expenditure and investments For personal use only Capex trend Major capex projects Major capex projects in FY12 150 New Victorian Keno roll out 139 TGS loyalty system and EGMs 121 119 New tab.com.au website Venue expansion Trackside NSW Outside broadcast infrastructure Key fo
Slide 13: Key capital features
Key capital features 1,000 For personal use only 900 800 700 450 600 $m 500 400 300 284 200 400 400 400 250 211 100 150 0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19+ Draw n bank facility Medium term notes Tabcorp Retail Bonds Tabcorp Subordinated Notes 12 month bridge facility US Private Placement Re
Slide 14: Summary
Summary For personal use only A successful year EBIT $591.7m, up 5.2%1 Solid revenue growth across W agering, Media and International and Keno Operating expenses well managed Full year dividend of 24 cents per share, fully franked 50.9% of NPAT Transition plans on track for new Victori
Slide 15: Appendices
Appendices For personal use only 1. Group results 2. Wagering: Financial data 3. Wagering: Revenues by state and product 4. Gaming: Financial data 5. Keno: Financial data 6. Balance sheet 7. Cashflow 8. FY13 financial reporting considerations 14
Slide 16: 1. Group results
1. Group results For personal use only Change $m FY12 FY11 on pcp Revenues 3,038.5 2,947.5 3.1% Government taxes & levies (892.8) (887.5) 0.6% Operating commissions (544.2) (523.0) 4.1% Racing industry fees (460.2) (454.5) 1.3% Variable contribution 1,141.3 1,082.5 5.4% Operating expenses (416.1) (3
Slide 17: 2. Wagering: Financial data
2. Wagering: Financial data For personal use only $m FY12 FY11 Change Totalisator - Vic 464.3 481.5 (3.6%) Totalisator - NSW 719.7 768.2 (6.3%) Fixed Odds 289.3 204.0 41.8% Trackside 70.1 39.5 77.5% Luxbet 27.9 20.7 34.8% Other 66.1 55.2 19.7% Revenues 1,637.4 1,569.1 4.4% Taxes, levies, commissions
Slide 18: 3. Wagering: Revenue by state and product
3. Wagering: Revenue by state and product For personal use only NSW Change Vic Change Total Change $m FY12 on pcp FY12 on pcp FY12 on pcp Thoroughbred 468.7 (7.9%) 304.8 (4.1%) 773.5 (6.5%) Harness 91.4 (8.8%) 65.8 (6.3%) 157.2 (7.7%) Greyhound 159.6 0.4% 93.7 0.3% 253.3 0.3% Totalisator 719.7 (6.3%
Slide 19: 4. Gaming: Financial data
4. Gaming: Financial data For personal use only $m FY12 FY11 Change Victorian network - Hotel 708.5 704.3 0.6% Victorian network - Clubs 364.1 367.2 (0.8%) Total Victorian EGMs 1,072.6 1,071.5 0.1% Other revenue 6.3 5.9 6.8% Revenues 1,078.9 1,077.4 0.1% Taxes, levies, commissions and fees (760.9) (
Slide 20: 5. Keno: Financial data
5. Keno: Financial data For personal use only $m FY12 FY11 Change Keno 153.4 141.5 8.4% Other revenue 29.7 28.1 5.7% Revenues 183.1 169.6 8.0% Taxes, levies, commissions and fees (81.1) (74.8) 8.4% Operating expenses (38.6) (34.2) 12.9% EBITDA 63.4 60.6 4.6% D&A (15.1) (11.8) 28.0% EBIT 48.3 48.8 (1
Slide 21: 6. Balance Sheet
6. Balance Sheet For personal use only As at As at Change $m 30 Jun 12 30 Jun 11 on pcp Total current assets 228.2 250.9 (9.0%) Licences 814.8 430.2 89.4% Other intangible assets 1,803.2 1,805.7 (0.1%) Property, plant and equipment 313.3 280.5 11.7% Other non current assets 89.5 71.2 25.7% T otal as
Slide 22: 7. Cashflow
7. Cashflow For personal use only Actual $m FY12 Net operating flows 788.7 Net interest payments (104.9) Income tax paid (158.3) Payments for PP&E and licences (631.0) Sub-total (105.5) Dividends paid (111.4) Payment of restructuring costs for demerger (34.7) Others (4.6) Net debt at beginning of pe
Slide 23: 8. FY13 financial reporting considerations
8. FY13 financial reporting considerations For personal use only (a) FY13 comparative financial results (b) Wagering: Pro-forma impact of new Victorian licence terms (c) Wagering: Other information 22
Slide 24: 8. (a) FY13 comparative financial results
8. (a) FY13 comparative financial results The Victorian Gaming licence expires on 15 August 2012. Earnings from the Victorian Gaming business will be reported as “discontinued For personal use only operations” in the FY13 accounts, and FY12 will be presented on a comparable basis. “Discontinued oper
Slide 25: 8. (b) Wagering: Pro-forma impact of new Vic licence terms
8. (b) Wagering: Pro-forma impact of new Vic licence terms The terms of the new Victorian Wagering & Betting Licence and associated arrangements with the Victorian racing industry which For personal use only commence on 16 August 2012 are significantly different from the current arrangements. To ass
Slide 26: 8. (c) Wagering: Other information
8. (c) Wagering: Other information Set out below is information that will be relevant to Wagering segment earnings in FY13 For personal use only Race fields expenses Race fields expenses will increase from 15 August 2012. Had the increase applied in FY12, additional race fields expense of $23m w
Slide 27: Disclaimer
Disclaimer For personal use only This Presentation contains summary information about the current activities of Tabcorp Holdings Limited and its subsidiaries (Tabcorp Group). It should be read in conjunction with Tabcorp Group’s other periodic and continuous disclosure announcements lodged with the
Slide 28: For personal use only
For personal use only 27