Skycity Entertainment Group Limited · NZX:SKC
Skycity Entertainment — Australian Investor Conference and Asian Roadshow 2015
35 slides from Skycity Entertainment's conference presentation, May 6, 2015
Slide 1: ASX cover letter for investor conference presentation
6th May, 2015 For personal use only ASX Market Announcements Australian Stock Exchange Exchange Centre Level 6 20 Bridge Street Sydney NSW 2000 Australia Dear Sir/Madam RE: SKYCITY ENTERTAINMENT GROUP LIMITED (SKC) Please find attached our presentation for the Australian Investor Conference and Asia
Slide 2: Presentation for Australian Investor Conference and Asian Roadshow
SKYCITY Entertainment Group Limited For personal use only Presentation for Australian Investor Conference and Asian Roadshow May 2015
Slide 3: Overview of SKYCITY
For personal use only Overview of SKYCITY
Slide 4: SKYCITY Group Overview
SKYCITY Group Overview For personal use only Owner/operator of casino and other entertainment facilities in New Zealand and Australia Key activities – casinos, restaurants and bars, hotels, convention facilities and out- catering services Two major growth projects – NZICC and Adelaide transfor
Slide 5: New Zealand Properties
New Zealand Properties For personal use only Auckland Hamilton Queenstown/Wharf Business Activities Gaming Gaming Gaming Hotels Restaurants & bars Restaurant & bars Restaurants & bars Convention facilities Convention facilities Bowling alley Out-catering Sky Tower Employees (
Slide 6: Australian Properties
Australian Properties For personal use only Adelaide Darwin Business Activities Gaming Gaming Restaurants & bars Hotels Restaurants & bars Employees (2014 average) 1,200 900 Normalised Revenue* (FY14) A$166 million A$133 million Normalised EBITDA* (FY14) A$34 million A$36 million Gaming Ma
Slide 7: Historical Financial Performance
Historical Financial Performance For personal use only (NZ$ million) FY14 1H15 Reported Revenue (including Gaming GST) 902.5 495.5 Reported EBITDA 256.4 140.8 Reported NPAT 98.5 54.6 Normalised Revenue* (including Gaming GST) 927.3 510.0 Normalised EBITDA* 287.6 154.4 Normalised NPAT* 123.2 66.6 Rep
Slide 8: Revenue and Earnings Mix (FY14)
Revenue and Earnings Mix (FY14) For personal use only FY14 Normalised EBITDA* FY14 Normalised Revenue* (excl. Corporate Costs) Auckland Darwin 58% Darwin 16% 13% Auckland 69% Adelaide 12% Adelaide 20% Qtwn 1% Hamilton 5% Qtwn 1% Hamilton 5% * Normalised results adjust the VIP business win rate to a
Slide 9: Share Ownership and Research Coverage
Share Ownership and Research Coverage For personal use only Member of ASX 200 and NZX10 indices Open register with largest shareholder around 7% Consistently within top 5 most liquid stocks traded on NZX Covered by 14 brokers – 5 from NZ, 9 from Australia SKYCITY share register: geographic m
Slide 10: Key Investment Features
Key Investment Features For personal use only Exclusive long-term casino licences in all jurisdictions Properties are major entertainment destinations in all key markets Diversified revenue and earnings base – by both geography and business activity Favourable macroeconomic environment in Au
Slide 11: 1H15 Results Summary
For personal use only 1H15 Results Summary
Slide 12: 1H15 Results Summary
1H15 Results Summary For personal use only Normalised revenue (including gaming GST) up 9.2% to NZ$510.0 million Normalised EBITDA up 3.1% to NZ$154.4 million and normalised NPAT up only marginally to NZ$66.6 million Strong results from Auckland and IB were curtailed by a poor result from Adel
Slide 13: 1H15 Results Summary – Normalised
1H15 Results Summary – Normalised For personal use only 1H15 1H14 Movement Normalised $m $m $m % Normalised Revenue (including Gaming GST) 510.0 467.0 43.0 9.2% Gaming GST (46.1) (41.7) (4.4) (10.6%) Normalised Revenue 463.9 425.3 38.6 9.1% Expenses (309.5) (275.5) (34.0) (12.3%) Normalised EBITDA 1
Slide 14: 1H15 Results Summary – Reported
1H15 Results Summary – Reported For personal use only 1H15 1H14 Movement Reported $m $m $m % Reported Revenue (including Gaming GST) 495.5 465.1 30.4 6.5% Gaming GST (44.0) (41.6) (2.4) (5.8%) Reported Revenue 451.5 423.5 28.0 6.6% Expenses (310.7) (279.9) (30.8) (11.0%) Reported EBITDA 140.8 143.6
Slide 15: 1H15 Results Summary – Revenues by Property
1H15 Results Summary – Revenues by Property For personal use only 1H15 1H14 Movement $m $m $m % New Zealand Casinos Auckland 302.5 258.0 44.5 17.2% Hamilton 25.2 24.9 0.3 1.2% Queenstown, Other 7.0 7.1 (0.1) (1.4%) Total New Zealand 334.7 290.0 44.7 15.4% Australian Casinos Adelaide (A$) 87.
Slide 16: 1H15 Results Summary – EBITDA by Property
1H15 Results Summary – EBITDA by Property For personal use only 1H15 1H14 Movement $m $m $m % New Zealand Casinos Auckland 124.3 108.1 16.2 15.0% Hamilton 9.8 9.2 0.6 6.5% Queenstown, Other 0.5 1.2 (0.7) (58.3%) Total New Zealand 134.6 118.5 16.1 13.6% Australian Casinos Adelaide (A$) 13.5 1
Slide 17: Subsequent Events After Interim Results
Subsequent Events After Interim Results For personal use only Trading performance in 2H15 Continuation of trends exhibited in 1H15 Strong growth in Auckland and improving performance in Hamilton Gradual recovery starting in Adelaide and Darwin earnings flat in tough economy IB turnover of
Slide 18: Subsequent Events After Interim Results (cont.)
Subsequent Events After Interim Results (cont.) For personal use only Darwin community benefit levy NT Government imposed community benefit levy on casinos 10% of gaming machine revenue from 1 July 2015 Annual cost of NZ$6 million and NPAT impact of NZ$4 million Gaming tax review scheduled
Slide 19: Building a Platform for Growth
For personal use only Building a Platform for Growth
Slide 20: Strategic Focus
Strategic Focus For personal use only Primary objective is to drive growth in order to maximise total shareholder return Deliver growth and maximise shareholder value by: Maximising the potential of our existing casino licences Ensuring our properties are world-class integrated entertainment
Slide 21: Step-Change Growth in Earnings and Dividends
Step-Change Growth in Earnings and Dividends For personal use only NZICC and Adelaide expansion projects should deliver significant lift in both earnings and dividends Higher earnings base and dividend yield Step-change in earnings delivered via NZICC and Adelaide expansion projects Earnings Organ
Slide 22: NZICC Project
NZICC Project For personal use only SKYCITY agreed to designing and building the NZICC In return, various regulatory concessions provided for SKYCITY Auckland: ‒ Extension of casino venue license to 2048 ‒ Additional EGMs, tables and ATGs (~30% increase in gaming capacity) ‒ TITO and cashless ga
Slide 23: NZICC Master Plan (Old Preliminary Design)
NZICC Master Plan (Old Preliminary Design) For personal use only
Slide 24: Adelaide Casino Transformation
Adelaide Casino Transformation For personal use only Two-phase transformation of Adelaide Casino Significant opportunity to grow market share locally and with international customers and to turnaround a long-term underperforming casino New ALA and CDA effective from February 2014 (following A$
Slide 25: Riverbank Precinct Development
Riverbank Precinct Development For personal use only 24
Slide 26: Adelaide Casino Expansion Concept
Adelaide Casino Expansion Concept For personal use only 25
Slide 27: Summary
For personal use only Summary
Slide 28: Key Investment Features
Key Investment Features For personal use only Exclusive long-term casino licences in all jurisdictions Properties are major entertainment destinations in all key markets Diversified revenue and earnings base – by both geography and business activity Favourable macroeconomic environment in Au
Slide 29: Upcoming Investor Day
Upcoming Investor Day For personal use only SKYCITY Investor Day planned for investors and analysts 27 May in Auckland Group overview and trading update Auckland site tour and business update Hamilton business update IB business update NZICC project Lunch with CEO and management 28
Slide 30: Questions?
For personal use only Questions?
Slide 31: Disclaimer
Disclaimer For personal use only All information included in this presentation is provided by SKYCITY Entertainment Group Limited (“SKYCITY”) as at 6 May 2015. The presentation includes a number of forward-looking statements. Forward looking statements, by their nature, involve inherent risks an
Slide 32: Reported and Normalised Earnings
Reported and Normalised Earnings For personal use only 1H15 1H14 Revenue EBITDA EBIT NPAT Revenue EBITDA EBIT NPAT $m $m $m $m $m $m $m $m Normalised 510.0 154.4 111.2 66.6 467.0 149.8 111.6 66.4 Adelaide redevelopment costs - (1.5) (1.5) (1.0) - (1.6) (1.6) (1.1) NZICC interest and other costs - (0
Slide 33: Reported and Normalised Earnings
Reported and Normalised Earnings For personal use only SKYCITY’s objective of producing normalised financial information is to provide data that is useful to the investment community in understanding the underlying operations of the Group Gaming Revenue figures reflect gaming win (inclusive of g
Slide 34: Reported and Normalised Earnings
Reported and Normalised Earnings For personal use only Key Adjustments are: – Adelaide redevelopment costs – Structural redundancies and launch costs for new facilities (Sean’s Kitchen, Black Room) – NZICC – Interest on purchase of New Zealand International Convention Centre (NZICC) land bank (cal
Slide 35: For personal use only
For personal use only
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