Star Entertainment Group Limited · ASX:SGR
Star Entertainment — Macquarie Securities Australia Conference 2017
19 slides from Star Entertainment's conference presentation, May 3, 2017
Slide 1: Presentation to Investors (ASX Announcement)
ASX Announcement 3 May 2017 PRESENTATION TO INVESTORS Attached is a presentation that will be delivered by The Star Entertainment Group Limited to investors at the Macquarie Securities Australia Conference in Sydney on 3 May 2017. For more information contact: Harry Theodore Head of Strategy, Invest
Slide 2: Presentation at Macquarie's Australia Conference
THE STAR ENTERTAINMENT GROUP PRESENTATION AT MACQUARIE’S AUSTRALIA CONFERENCE WEDNESDAY 3 MAY 2017
Slide 3: Basis of Preparation and Non-IFRS Information
THE STAR ENTERTAINMENT GROUP THE STAR ENTERTAINMENT GROUP LIMITED (ASX: SGR) BASIS OF PREPARATION AND NON-IFRS INFORMATION ♦ Information in this presentation is provided as at the date of the presentation unless specified otherwise. It should be read in conjunction with The Star Entertainment Group
Slide 4: Overview: Key Metrics
1. OVERVIEW KEY METRICS FOOTPRINT FY2016 FINANCIALS FUTURE * 3 properties (Sydney, $4.9bn total assets $2bn Queen’s Wharf Brisbane, Gold Coast) Brisbane Integrated Resort development $556m normalised EBITDA 1,330 5 star hotel rooms ($489m statutory EBITDA) Up to $850m Gold Coast expansion ~20m guest
Slide 5: Overview: Key Investment Messages
1. OVERVIEW KEY INVESTMENT MESSAGES CLEAR Valuable long term licences in desirable locations with growth potential STRATEGY Established organic growth plans – leverage existing assets in known markets Strong balance sheet, good cash flow Partners with development and hospitality expertise, diversifi
Slide 6: Long Term Organic Revenue Growth Profile
1. OVERVIEW LONG TERM ORGANIC REVENUE GROWTH PROFILE DOMESTIC INTERNATIONAL ♦ 84% of group EBITDA* ♦ 16% of group EBITDA* ♦ Key growth drivers: ♦ Key growth drivers: • Improved and differentiated product • Improved marketing, newly established sales • Improved marketing and sales activities teams in
Slide 7: Strategy – Focused Organic Growth
2. STRATEGY – FOCUSED ORGANIC GROWTH CLEAR PRIORITIES WITH FURTHER GROWTH POTENTIAL SYDNEY GOLD COAST QUEEN’S WHARF Up to $1bn planned investment to Up to $850m planned investment Expected $2bn budget for new expand property to: to expand property to: integrated resort: ♦ ~1,000 premium hotel rooms
Slide 8: Strategy – Leverage Assets
2. STRATEGY – LEVERAGE ASSETS LOYALTY Key customer segment – 0.9m loyalty members driving 66% of domestic electronic gaming revenue Competitive advantage through customer acquisition (improved program features), tiering and new analytics capability (marketing and customer retention) CUSTOMER Custome
Slide 9: Strategy – Funding Organic Growth
2. STRATEGY – FUNDING ORGANIC GROWTH STRONG 1.1x Net Debt / Statutory 12 month trailing EBITDA at 31 Dec 2016 BALANCE SHEET Fund investments with strong balance sheet and cash flows Conservative balance sheet maintained throughout investment cycle STRONG Over $1 billion free cash flow before reinves
Slide 10: Execution – 1H FY2017
3. EXECUTION – 1H FY2017 SIGNIFICANT PROJECTS COMPLETED SYDNEY GOLD COAST New Astral Tower Suite Refurbished Suite Latitude Bar Hotel lobby lounge 9
Slide 11: Execution – Near Term Milestones
3. EXECUTION – NEAR TERM MILESTONES DELIVERABLES ON TRACK, DISRUPTION ABATING LIMITED Limited disruption from capital works expected over rest of CY2017 DISRUPTIONS Sydney and Gold Coast CY2017 capital works in existing customer facing areas focused on non-gaming areas SYDNEY Recently completed Upgr
Slide 12: Execution – Newly Commissioned Assets
3. EXECUTION – NEWLY COMMISSIONED ASSETS POSITIVE CUSTOMER RESPONSE SYDNEY Improving trend in entry level domestic PGR NMR per day +21% Q3 FY2017 vs Q2 (Vantage) opened Q2 FY2017 FY2017 MGF Slots improving momentum, return of NMR per day +6% Q3 FY2017 vs pcp capacity as projects completed Non-gaming
Slide 13: Execution – Loyalty
3. EXECUTION – LOYALTY ENCOURAGING SIGNS OF TRACTION UPGRADED Relaunched November 2016 PLATFORM Improved program features implemented with single currency and realigned rewards New loyalty engine and analytics capability implemented to optimise future marketing EXISTING Group rated play +10.0% Q3 FY
Slide 14: Execution – International VIP
3. EXECUTION – INTERNATIONAL VIP EFFECTIVE DIVERSIFICATION STRATEGY KEY METRICS ♦ Diversification into global VIP markets commenced ♦ Early signs of moderation despite continuing CY2015 cautious approach to North Asia activities ♦ Above average win rates have continued into 2H ♦ Focus on large growt
Slide 15: Outlook and Priorities: Trading Update and Near Term Priorities
4. OUTLOOK AND PRIORITIES TRADING UPDATE AND NEAR TERM PRIORITIES TRADING SGR continues to see domestic revenue growth in 2H FY2017 to date despite softer UPDATE gaming market and macro-economic conditions Gross revenue, excluding International VIP Rebate business, is up 4.1% on pcp from 1 January 2
Slide 16: Outlook and Priorities – The Star Gold Coast
4. OUTLOOK AND PRIORITIES – THE STAR GOLD COAST NEAR TERM GROWTH DRIVER 6 STAR HOTEL, EXPANDED MGF AND VIP GAMING OPEN BY APRIL 2018 KEY DATES * 3Q FY2017 ♦ Rebranding to The Star Gold Coast completed 1H FY2018 ♦ Pre-sales of apartments in new joint venture tower commences 2H FY2018 ♦ Complete 6 sta
Slide 17: Outlook and Priorities – The Star Gold Coast
4. OUTLOOK AND PRIORITIES – THE STAR GOLD COAST NEAR TERM GROWTH DRIVER J Bar – Concept Image Only Sports Quarter & Terrace – Concept Image Only Sports Quarter & Terrace – Concept Image Only Sovereign Gaming – Concept Image Only 6-Star Tower Lobby – Concept Image Only * Subject to planning and other
Slide 18: Appendix: Glossary
APPENDIX GLOSSARY Term Definition CAGR Compound Annual Growth Rate Capital expenditure (capex) Unless otherwise stated, capital expenditure is presented on an accruals basis and excludes investments in associates and equity acquisitions D&A Depreciation and Amortisation DBC Destination Brisbane Cons
Slide 19: Thank You
THE STAR THANK YOU
Star Entertainment Group — Macquarie Securities Australia Conference 2017 on 6ix