Slide 1: FYE 2009 Results
D> Dreamgate Corporation Bhd. 0331) FYE 2009 RESULTS ace (Janes es a r
Slide 2: Safe Harbor Statement
Safe Harbor Statement These presentations contain forward-looking statements (including, without limitation, statements regarding the enhancement of shareholder value, and information and future guidance on our goals, priorities, orders, revenues, demand, growth opportunities, customer service and i
Slide 3: Contents
Contents Highlights Financial Overview Teh Mun Hui, FD Corporate Development Teh Mun Hui, FD Business Segment Update Steven Lim, COO Outlook, Target & Strategies Steven Lim, COO Q&A 3
Slide 4: Highlights
WANG WANG WANG it ab ie
Slide 5: Highlights
HIGHLIGHTS Financial Prudent measure of providing RM25 mil for impairment loss for machines yet to be in operations, affected pre-tax loss to RM60 mil Net cash from operating activities remains healthy SSM - Exceeded 10% of internal target machine sales Business TSM - Focus for 2009 on mobil
Slide 6: Financial Review
roe Financial Review
Slide 7: Performance of 2009
PERFORMANCE OF 2009 Q-o-Q Revenue Increases As More Machines Sold in 4Q09, High Impairment Cost Factored In 2009 4Q09 3Q09 Q-o-Q 2009 2008 Y-o-Y RM mil RM mil % RM mil RM mil % Revenue 65.39 34.81 87.85 170.20 227.81 (25.29) Operating (Loss) / Profit (31.12) (5.18) 500.77 (51.77) 6.61 (883.21) (Loss
Slide 8: Key Ratios
KEY RATIOS Ratios Reflect The Effects of the Forced Closure 3 months ended 12 months ended 31.12.2009 31.12.2008 31.12.2009 31.12.2008 GP margin (%) 15 28 16 35 Current Ratio (times) 0.54 0.81 0.54 0.81 Quick Ratio (Excluding (times) 0.48 0.75 0.48 0.75 inventory) Gearing Ratio Borrowings - Gross (t
Slide 9: Revenue by Business Segments
REVENUE BY BUSINESS SEGMENTS SSM increased revenue with opening of new casinos, main contributor for 2009 SSM 11% Due to sales to casinos in RM mil Singapore and Philippines 140 57% 120 TSM 48% • Closure of slot clubs • New concession areas yet to 2009 - RM170 100 yield optimum results 52% mil 35% 8
Slide 10: Major Cost Components
MAJOR COST COMPONENTS Effective Internal Control Measures 10
Slide 11: Net Cash from Operating Activities
NET CASH FROM OPERATING ACTIVITIES Net Cash from Operating Activities Remains Healthy Despite Challenging Year Net Operating Cashflow (RM mil) 105 89.2 67.2 48.1 37.42 2005 2006 2007 2008 2009 11
Slide 12: Impairment on Machines
IMPAIRMENT ON MACHINES Affected Machines Expected to be Operational By 1H2010 Mobilization Plan (as at 31 December 2009) No. of machines not in operations 1,470 units Impairment loss for 2009 RM25.66 mil NBV before impairment RM72.75 mil NBV after impairment RM47.75 mil Best Case Scenario Worst Case
Slide 13: Capex and Source of Funding
CAPEX AND SOURCE OF FUNDING Capex in 2010 Expected to be Substantially Lower 2009 : Capex increase as certain new concession venues 160 Capex Incurred For Past 5 especially in Philippines and Macau require new machines to be placed. Years (RM mil) 140 2010 : Focus on improving yield, expect to place
Slide 14: Corporate Development
Corporate . Development Poker 14
Slide 15: Corporate Developments in 2009
CORPORATE DEVELOPMENTS IN 2009 1st Public Fund Raising Exercise Since Listing Proposal Announcement Tranches Issue Price Listing date Date (‘000 shares) (sen) of shares Private Placement 30/09/08 1st - 72,160 15.7 20/07/09 2nd - 15,000 16.9 13/08/09 Private Placement 01/09/09 1st - 82,300 18 30/10/0
Slide 16: Summary of Placees
SUMMARY OF PLACEES Able to complete the placements despite challenging conditions 1st Placement 2nd Placement 11% 37% 87.16 mil Institutions 191.841 mil shares Individuals shares 63% 89% 16
Slide 17: Business Segment Review
Business Segment Review 17
Slide 18: SSM – Machines Sales in 2009
SSM – MACHINES SALES IN 2009 Sales of machines exceeded target by 10% Target Country machines to be Actual 2009 sold machines sold Target vs. Machines vs. FY2009 FY2009 Actual sold in 2008 2008 (units) (units) (%) (units) (%) Malaysia 100 70 (30) 87 (20) Philippines 600 736 23 550 34 Vietnam 200 38
Slide 19: TSM – Concession Venues
TSM – CONCESSION VENUES Able to penetrate into new concession market/venues Summary of Concession Venues As at December 2009 No. of Venues No. of Machines As at Dec 2009 At at Dec 2008 As at Dec 2009 Outcome Country (%) Philippines 11 17 55 2,016 Macau - 6 - 888 Cambodia* 37 11 (70) 2,038 Vietnam 3
Slide 20: TSM – Mobilization Plan
TSM – MOBILIZATION PLAN Affected Machines to be Fully Operational By 1H2010 204 130 57% of affected machines - In operations; - Sold; or 500 - Source of spare parts Total 1,470 43% expected to be in operations 80 machines by end 1H2010 120 3,424 Concession venues have been identified : 500 for
Slide 21: L&E – Chateau de Bavet: An Update
L&E – CHATEAU DE BAVET : AN UPDATE Started Operations : 1 August 2009 Chateau Gestation period around 6 to 9 months Monthly Gross Gaming Revenue Per Unit Facilities are expected to be fully completed by 900 (USD) 2010 800 As at end Dec 2009: 800 - Slots : 109 machines 700 - Table games : 38 63
Slide 22: Outlook, Target and Strategies
Outlook, Target and Strategies 22
Slide 23: Outlook - Asian Gaming Industry
OUTLOOK - ASIAN GAMING INDUSTRY Asian Gaming Industry Operators Relatively still No mega Replacement Observing promising projects Market Conservative Approach SSM TSM CRA Singapore in Feb 2010 approved DSPL – 100% subsidiary of Dreamgate, as a supplier of gaming equipment of casinos in Singapore OPP
Slide 24: SSM – Target Machines Sales in 2010
SSM – TARGET MACHINES SALES IN 2010 Target Actual 2010 – 1,250 machines Country No. of No. of machines to machines sold 7% 8% be sold FY2009 8% FY2010 Malaysia 100 70 16% Philippines 630 736 50% Vietnam 130 38 10% Singapore 200 220 Macau 100 40 Others 90 109 Malaysia Philippines 1,250 1,213 Vietnam
Slide 25: TSM – Target Concession Venues
TSM – TARGET CONCESSION VENUES No. of Venues Total Total concession machines As at Dec Country in 2010 in 2010 2009 New Concession In 2010 Venue Timeline No. of machines Philippines 17 1 at Cebu 2Q10 170 23 3,316 1 at Albay 2Q10 110 Manila : 1 2Q10 320 1 3Q10 210 2 4Q10 340 Expansion on existing pro
Slide 26: Strategies – Focus on Improving Yield
STRATEGIES – FOCUS ON IMPROVING YIELD Business Consolidation Source Phase suitable venues 2010 Continuous 2009 Removal of Strengthening R&D Efforts Mobilization machines Plan from club Core for Games Businesses Development Prudent Cost Management Prudent Cost Management 26
Slide 27: Business Consolidation Phase
BUSINESS CONSOLIDATION PHASE • Continue offering existing flexible biz model • Continue introducing new exciting Asian-themed games especially in Malaysia and Philippines • Focus on newly signed sports icon and new themed link jackpot like Wang Wang Wang SSM • Offer longer payments terms (with inter
Slide 28: Business Consolidation Phase
BUSINESS CONSOLIDATION PHASE • Focus on the yield management of slot machines & table L&E games through promotions to achieve target income • Increase junket promotion in Bavet 28
Slide 29: Continuous R&D Efforts
CONTINUOUS R&D EFFORTS Review of 2009 Winners at AGEM EXPO, Manila 2009 More than 8 based-games developed and 2 of our in-house developed games were adjudged CHAMPION and 2nd RUNNER- UP at the AGEM Expo in Manila Amount spent for R&D approx. RM2.9 mil The Legend of Manufactured about 400 machi
Slide 30: Prudent Cost Management
PRUDENT COST MANAGEMENT Freeze and reduction on headcount Streamlining Further operational Operational cost structure reduction Effective Cost Management 30
Slide 31: Appendices
Appendices 31
Slide 32: Summary of Concession Venues Opened in 2009
Summary of Concession Venues Opened in 2009 NO REGION CONCESSION VENUES UNITS OF M/C 1 Golden Dragon Cas ino 122 2 Jim ei Cas ino 46 3 Grandview Cas ino 117 4 Macau Lan Kwai Fong 104 5 Cas a Real 116 6 L'Arc 383 Total Macau : 6 888 7 Oriental Pavillion Guiguinto (Bulacan) 136 8 Oriental Paradis e Ca
Slide 33: Summary of Concession Venues Closed in 2009
Summary of Concession Venues Closed in 2009 No. of Venues Location Remarks Closed in 2009 Cambodia Phnom Penh 13 Due to forced closures Siem Reap 8 Due to forced closures Bavet 1 Underperformed 1 Underperformed Poipet 1 Relocation Philippines 1 Relocation Total 25 Total Concession Venues Closed due
Slide 34: Q&A Thank You
D Dreamgate Corporation Bhd. (03831) Q&A Thank You