Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — H1 2011 Earnings Presentation
29 slides from Aristocrat Leisure's earnings presentation, Aug 25, 2011
Slide 1: Results Presentation Half Year to 30 June 2011
.. Aristocrat Leisure Limited Results Presentation Half Year to 30 June 2011 [= S) o) @) =) 25 August 2011 — — ARTOCRNT
Slide 2: Disclaimer
Disclaimer For personal use only This document and any oral presentation accompanying it has been prepared in good faith. However, no express or implied warranty is given as to the accuracy or completeness of the information in this document or the accompanying presentation. All statutory representa
Slide 3: Agenda
Agenda For personal use only 1. Performance Summary Jamie Odell 2. Operational Performance Jamie Odell 3. Group Results Toni Korsanos 4. Outlook Jamie Odell 5. Concluding Comments Jamie Odell 6. Questions 3
Slide 4: Performance Summary
Performance Summary For personal use only Deliver to guidance • $24.9m net profit after tax, ahead of guidance Consolidate US position • Gaming Ops installed base increased during the half, ahead of recovery fee per day on new products significantly higher • Ship share held in outright sales • Syste
Slide 5: Agenda
Agenda For personal use only 1. Performance Summary Jamie Odell 2. Operational Performance Jamie Odell 3. Group Results Toni Korsanos 4. Outlook Jamie Odell 5. Concluding Comments Jamie Odell 6. Questions 5
Slide 6: North America Results
North America Results • US market declined For personal use only Unit HY 2011 Change % slightly and remained Revenue US$m 145.5 6 8.9 highly competitive Profit US$m 52.7 6 21.1 • New outright sale Margin % 36.2 6 5.6pts products achieved higher Volume average selling prices compared to legacy - Plat
Slide 7: Gaming Operations
Gaming Operations Gaming Operations by Product Type – Install and FPD at month end • Gaining traction in For personal use only gaming operations with increased installed base and higher fee per day result • Growth trend in gaming operations driven by strategy product • Representation of strategy pro
Slide 8: North America – FY 2011 Outlook
North America – FY 2011 Outlook For personal use only • North America on track to deliver FY 2011 performance milestones. • Gaming operations installed base to increase over the full year, driven by more competitive releases. • Shipshare in outright sales to be maintained. • New product to achieve h
Slide 9: Australia Results
Australia Results For personal use only Unit HY 2011 Change % • Highly competitive market conditions Revenue A$m 73.4 5 5.5 Profit A$m 23.9 5 102.5 • Impressive turnaround and momentum driven by Margin % 32.6 5 15.6pts strong new product Volume releases - Platforms Units 1,833 6 11.7 • Revenue, prof
Slide 10: Australian Products
Australian Products For personal use only 10
Slide 11: Australia – FY 2011 Outlook
Australia – FY 2011 Outlook For personal use only • Top line momentum to build over the full year. • Product pipeline well stocked, with exciting H2 releases showcased at AGE 2011. • Aristocrat to grow shipshare to mid-thirties with improved average selling price and margins. • Australia well positi
Slide 12: Japan Results
Japan Results For personal use only Unit HY 2011 Change % • Pachislot market expanded despite natural disasters Revenue ¥m 1,365.1 5 107.4 • Revenues and unit sales Loss ¥m (179.6) 6 9.7 increased significantly due Margin % (13.2) 5 17.0pts to more competitive and Volume stronger performing game rel
Slide 13: Japan – FY 2011 Outlook
Japan – FY 2011 Outlook For personal use only • Pachislot market to grow slightly over FY 2011 compared to 2010. • Component shortages may restrict release of one of our two key licensed games scheduled for H2. • Second key licensed game to be released in Q1 2012 if deferred due to component shortag
Slide 14: Rest of World Results
Rest of World Results For personal use only • Revenues and profits up Unit HY 20111 Change % across most markets due to Viridian WSTM and other new Revenue A$m 97.3 5 19.7 product releases Profit A$m 30.3 5 9.8 Margin % 31.1 6 2.8pts • Dominant market share in Asia Volume Pacific maintained - Platfo
Slide 15: Rest of World – FY 2011 Outlook
Rest of World – FY 2011 Outlook For personal use only • Overall demand expected to be flat but Aristocrat to maintain share. • Fewer new Asia Pacific openings partially offset by further Viridian WSTM penetration. • Ongoing rollout of Viridian WSTM and launch of Vii SlantTM and new games to drive FY
Slide 16: Agenda
Agenda For personal use only 1. Performance Summary Jamie Odell 2. Operational Performance Jamie Odell 3. Group Results Toni Korsanos 4. Outlook Jamie Odell 5. Concluding Comments Jamie Odell 6. Questions 16
Slide 17: Financial Performance Summary
Financial Performance Summary For personal use only $ million Operating profit after tax and non-controlling interest1 - H1 2010 36.6 EBIT (1.1) 6 Interest (8.8) 6 Income tax 5.0 5 Foreign exchange movements (6.8) 6 Operating profit after tax and non-controlling interest - H1 2011 24.9 1 Normalised
Slide 18: Financial Results
Financial Results Constant currency For personal use only $ million Units HY2011 HY 2010 Change % HY 2011 2 Change % Revenue A$m 312.7 340.5 6 8.2 353.4 5 3.8 Total segment profit A$m 98.1 113.2 6 13.3 111.6 6 1.4 Segment profit margin % 31.4 33.2 6 1.8pts 31.6 6 1.6pts Corporate costs A$m (7.6) (7.
Slide 19: Capital Management
Capital Management For personal use only • Commitment to reducing gearing levels and related interest costs • Adequate debt facilities and covenant headroom • Interim dividend of 2.5 cents per share, to be fully underwritten DRP with 2.5% discount Unit HY 2011 HY 2010 Change Operating cash flow1 A$m
Slide 20: Agenda
Agenda For personal use only 1. Performance Summary Jamie Odell 2. Operational Performance Jamie Odell 3. Group Results Toni Korsanos 4. Outlook Jamie Odell 5. Concluding Comments Jamie Odell 6. Questions 20
Slide 21: FY 2011 Outlook Summary
FY 2011 Outlook Summary For personal use only North America • Uplift in gaming operations installed base and fee per day • Outright sales shipshare retained • Improvement in average selling price and maintain product margins • Systems revenue increased Australia • Higher average selling price for ne
Slide 22: FY 2011 Outlook Summary
FY 2011 Outlook Summary For personal use only • Confirm guidance of NPAT growth between 10 - 20% over full year 2011. • Strong operating performance to drive this result partially offset by foreign exchange translation and higher interest costs. • Operational performance significantly ahead of PCP r
Slide 23: Sources of growth
Sources of growth For personal use only Create new businesses • Leverage lotteries Adapt core business to platform: Italy, Greece, the future Asia More competitive core • Deploy content in • Value-added systems business regulated online markets applications • Internet ‘free play’ • Downloadable game
Slide 24: Agenda
Agenda For personal use only 1. Performance Summary Jamie Odell 2. Operational Performance Jamie Odell 3. Group Results Toni Korsanos 4. Outlook Jamie Odell 5. Concluding Comments Jamie Odell 6. Questions 24
Slide 25: Agenda
Agenda For personal use only 1. Performance Summary Jamie Odell 2. Operational Performance Jamie Odell 3. Group Results Toni Korsanos 4. Outlook Jamie Odell 5. Concluding Comments Jamie Odell 6. Questions 25
Slide 26: Supplementary materials
Supplementary materials For personal use only 26
Slide 27: North America
North America Unit HY 2011 HY 2010 Change For personal use only Revenue US$m 145.5 159.8 (14.3) (8.9)% Profit US$m 52.7 66.8 (14.1) (21.1)% Margin % 36.2 41.8 (5.6) pts Revenue A$m 138.4 181.3 (42.9) (23.7)% Profit A$m 49.6 76.3 (26.7) (35.0)% Margin % 35.8 42.1 (6.3) pts Volume - Platforms Units 3,
Slide 28: Australia
Australia Unit HY 2011 HY 2010 Change For personal use only Revenue A$m 73.4 69.6 3.8 5.5 % Profit A$m 23.9 11.8 12.1 102.5 % Margin % 32.6 17.0 15.6 pts Volume - Platforms Units 1,833 2,075 (242) (11.7)% - Conversions Units 2,710 3,128 (418) (13.4)% Price - Av. selling price A$/units 18,676 16,597
Slide 29: Japan
Japan For personal use only Unit HY 2011 HY 2010 Change Revenue ¥m 1,365.1 658.1 707.0 107.4 % Loss ¥m (179.6) (198.8) 19.2 9.7 % Margin % (13.2) (30.2) 17.0 pts Revenue A$m 16.0 8.3 7.7 92.8 % Loss A$m (2.0) (2.5) 0.5 20.0 % Margin % (12.5) (30.1) 17.6 pts Volume - Games Units 4,800 2,342 2,458 105