Skycity Entertainment Group Limited · NZX:SKC
Skycity Entertainment — Macquarie Bank 12th Annual Australia Conference 2011
30 slides from Skycity Entertainment's conference presentation, May 6, 2011
Slide 1: ASX cover letter: Investor Presentation
6 May 2011 For personal use only Company Announcements Office Australian Stock Exchange Exchange Centre 20 Bridge Street Sydney NSW 2000 AUSTRALIA Dear Sir/Madam RE: Investor Presentation Please find attached a copy of the SKYCITY presentation to the Macquarie Australia Conference being held today i
Slide 2: Macquarie Bank 12th Annual Australia Conference
Macquarie Bank For personal use only 12th Annual Australia Conference Friday 6 May 2011
Slide 3: SKYCITY Overview
SKYCITY Overview For personal use only Operator of leading land based Casino entertainment facilities in major population centres Highly visible and regulated industry – challenges and opportunities Listed on both the ASX and NZX with headquarters in Auckland, New Zealand Top 5 New Zealand p
Slide 4: SKYCITY Overview
SKYCITY Overview For personal use only Employees: Hotel Rooms: Gaming Tables: Gaming Machines: 5,560 780 299 4,312 Darwin - 100% Auckland - 100% Revenue ~A$110m Revenue ~NZ$400m Employees 750 Employees 2,810 Hamilton - 100% Revenue ~NZ$40m Employees 340 Christchurch - 50% Profit contribution ~NZ$6m
Slide 5: Capital Management
Capital Management For personal use only Strong balance sheet with significant funding capacity and flexible financing covenants Investment grade credit rating (S&P BBB- Positive Outlook) ensures access to International debt markets Net Debt to EBITDA of approx 2 times Even spread of maturit
Slide 6: Strong and Stronger Management Team
Strong and Stronger Management Team For personal use only Recent Appointments: New COO Auckland – 1 May 2011 Stuart Wing – Former MD Jupiters Queensland 20 years in Gaming/ Casino industry. New CFO – 1 July 2011 James Burrell – Ex Permira London / Hong Kong (Galaxy, Gala Coral, Sisal) Ex
Slide 7: Industry Outlook - New Zealand
Industry Outlook New Zealand For personal use only economic activity returning to growth - consumer discretionary spend Auckland outpaces rest of NZ Strong momentum heading into Rugby World Cup Sep / Oct 2011 John Key National Government – strong and stable Regulatory headwinds subsided in
Slide 8: Industry Outlook - Australia
Industry Outlook Australia For personal use only Retail / discretionary spend outlook more challenging Gillard / Wilkie Government – unsupportive of Gaming Industry − Regulatory headwinds – uncertain outlook − Threatening mandatory Pre-Commitment − State Governments not supportive. Voluntary o
Slide 9: Auckland Property
Auckland Property Represents more than half of SkyCity Group earnings For personal use only Gaming Machine Revenues have returned to growth: − 1H11 up 6.1% over preceding half year (2H10), − 2Q11 up 5.0% over preceding 1Q11 − This momentum has continued into 3Q11 and April/May. − Broader NZ & Au
Slide 10: NZ - Recent Positive Growth in EGM performance
NZ - Recent Positive Growth in EGM performance For personal use only 9
Slide 11: Auckland / NZ Economic Activity
Auckland / NZ Economic Activity For personal use only 10
Slide 12: Rugby World Cup September / October 2011
Rugby World Cup For personal use only September / October 2011 Expected Group EBITDA uplift significant Christchurch Qtr finals now also being held in Auckland. Hotels holding high occupancy and high average rates Gaming expected to have uplift in revenues similar to 2005 Lions tour Crea
Slide 13: Growth
Growth For personal use only Maximise the potential of our existing licences Invest capital in exchange for expansion and deregulation Jobs, Export Income, Tourism, Taxes, Regeneration Major significant opportunities: NCC Auckland and Adelaide redevelopment Capacity constrained at peak t
Slide 14: International Business
International Business For personal use only A strong growth segment for SkyCity >20% CAGR over last 4 years and approx 50% growth yoy in F11 Primarily into Auckland but Darwin is a significant opportunity Growth of Macau and Singapore – 20 – 40% CAGRs Export income Key markets are China
Slide 15: Auckland Major Expansion and Growth Projects
Auckland For personal use only Major Expansion and Growth Projects New Villas and International and Local VIP Gaming rooms Level 8 / 9 atop the SKYCITY Hotel New Gaming Areas – Diamond and Platinum Federal Street Precinct National Convention Centre on Hobson St. 14
Slide 16: Auckland – VIP Facilities L8/9
Auckland – VIP Facilities L8/9 For personal use only Significantly increases our international and local VIP gaming capacity in Auckland − New Villas and gaming Salons for International players − New Pacific Room for local VIP tables players Improved product and service levels Improved yield m
Slide 17: Auckland – VIP Facilities L8/9
Auckland – VIP Facilities L8/9 For personal use only 16
Slide 18: Auckland – VIP Facilities L8/9
Auckland – VIP Facilities L8/9 For personal use only 17
Slide 19: Auckland - Federal Street Precinct
Auckland - Federal Street Precinct For personal use only 18
Slide 20: Auckland - National Convention Centre
Auckland - National Convention Centre For personal use only 19
Slide 21: Auckland - National Convention Centre
Auckland - National Convention Centre For personal use only 20
Slide 22: Adelaide
Adelaide For personal use only A “Temporary casino” limited gaming footprint and limited range of non gaming attractions A Heritage listed building – suboptimal layout minimal car parking Tightest regulatory framework in Australasia Significant product restrictions (Coin only, type, rang
Slide 23: Adelaide Oval Redevelopment Proposal
Adelaide Oval Redevelopment Proposal For personal use only Adelaide Casino Site 22
Slide 24: Adelaide Convention Centre Expansion Proposal
Adelaide Convention Centre Expansion Proposal For personal use only Adelaide Casino Site 23
Slide 25: Adelaide Casino Redevelopment
Adelaide Casino Redevelopment For personal use only 24
Slide 26: Darwin - Close proximity to Asia
Darwin For personal use only Close proximity to Asia Darwin is closer to 5 capital cities in Asia than to capital city of Australia Major expansion for Darwin International Airport planned A$100m+ commencing 2011 Improving airlift from Asia – new routes / operators 25
Slide 27: Darwin - Strategic Location close to Asia
Darwin For personal use only Strategic Location close to Asia Potential for significant International business − Indonesia, SE Asia focus Supportive local Government Strong sustainable economic growth in the NT supported by major projects Darwin property undergoing significant upgrades R
Slide 28: Darwin - Tropical Resort
Darwin - Tropical Resort For personal use only 27
Slide 29: Darwin - Tropical Resort
Darwin - Tropical Resort For personal use only 28
Slide 30: SKYCITY Entertainment Group
SKYCITY sKYCITY ENTERTAINMENT GROUP
SKYCITY Entertainment Group — Macquarie Bank 12th Annual Australia Conference 2011 on 6ix