Tabcorp Holdings Limited · ASX:TAH
Tabcorp — H1 FY2010 Earnings Presentation
28 slides from Tabcorp's earnings presentation, Feb 4, 2010
Slide 1: Tabcorp Half Year Results Presentation ASX cover letter
Tabcorp Holdings Limited ACN 063 780 709 5 Bowen Crescent Melbourne Australia 3004 GPO Box 1943R Melbourne Australia 3001 Telephone 61 3 9868 2100 Facsimile 61 3 9868 2300 For personal use only Website www.tabcorp.com.au 4 February 2010 To: Australian Securities Exchange Companies Announcements Plat
Slide 2: Half Year Results Presentation
For personal use only 2009/10 Tabcorp Holdings Limited Half Year Results Presentation 4 February 2010 1
Slide 3: 1H10 financial results
1H10 financial results ¾ Normalised NPAT $264m, up 0.8% Revenues up 2.6%, expenses up 2.9% For personal use only Higher gaming taxes and race field fees $13m; offset by income tax credits EPS 43.5 cents, down 11.9% following capital raising in FY09 Actual NPAT $258m, down 2.0%, with VIP win
Slide 4: Group results
Group results Actual Change Normalised 1 Change For personal use only $m 1H10 on pcp 1H10 on pcp Net revenues 2,180.7 2.1% 2,190.5 2.6% Variable contribution 1,079.5 0.1% 1,088.3 1.1% Operating expenses (547.2) 2.9% (547.2) 2.9% EBITDA 531.7 (3.1%) 540.5 (1.2%) D&A (99.5) 13.3% (99.5) 13.3% EBIT 432
Slide 5: Key drivers of 1H10 result
Key drivers of 1H10 result $m NPAT For personal use only 10 (9) 11 (4) 1 (9) (8) 10 264 262 1H09 Casinos VC Casinos Wagering Wagering Gaming VC Divisional D&A Interest, 1H10 Normalised (ex Qld taxes) Qld taxes (ex race fields) race fields Opex Tax & Normalised NPAT Other NPAT 4
Slide 6: Divisional results
For personal use only Divisional results Casinos Change Wagering Change Gaming Change $m Normalised 1 on pcp on pcp on pcp Net revenues 694.9 3.0% 872.0 4.6% 626.6 (0.3%) Variable contribution 547.2 0.3% 337.2 2.9% 205.2 0.5% Operating Expenses (355.5) 2.4% (155.9) 2.2% (37.6) 3.1% EBITDA 191.1 (4.5
Slide 7: Casinos: KPIs
Casinos: KPIs NSW Qld Total For personal use only ¾ Star City earnings up Change Change Change Operating Revenue 1H10 1H10 1H10 on pcp on pcp on pcp Additional MTGMs and EGMs New gaming management EGMs 101.6 12.3% 139.9 (2.8%) 241.5 3.0% system and loyalty program Main Gaming Floor 148.2 4.9% 66
Slide 8: Project Star: Sports Theatre and Poker area opened 1H10
Project Star: Sports Theatre and Poker area opened 1H10 For personal use only 7
Slide 9: Project Star: Excavation completed; Harbour side progressing
For personal use only Project Star: Excavation completed; Harbour side progressing 8
Slide 10: Project Star: Baccarat, Noodle Bar to open Chinese New Year
Project Star: Baccarat, Noodle Bar to open Chinese New Year For personal use only 9
Slide 11: Wagering: KPIs
Wagering: KPIs Change $m 1H10 1H09 on pcp For personal use only Revenues product ¾ Intense competition continuing Racing Vic 353.2 353.4 (0.1%) Racing NSW 430.6 414.7 3.8% ¾ Growth in all products and channels except phone Fixed Odds (1) 77.5 62.9 23.3% Trackside 18.5 16.5 12.2% ¾ Strategies showing
Slide 12: Gaming: KPIs
Gaming: KPIs Change 1H10 1H09 on pcp For personal use only Vic Gaming Vic Gaming Revenue ($m) 542.4 548.4 (1.1%) ¾ EGM market contracting EBIT ($m) 119.4 119.2 0.2% Less disposable income EGMs (average) 13,368 13,376 (0.1%) Reduced venue investment pre 2012 NMR/EGM/Day ($) 294 297 (1.0%) Chang
Slide 13: Group: Capital expenditure
Group: Capital expenditure Capex trend (excluding Project Star) Capex trend - Project Star For personal use only 123 103 93 67 36 14 1H09 2H09 1H10 1H09 2H09 1H10 ¾ 2H10 capex expected to be higher ¾ 1H10 capex includes first $50m payment to NSW Government ¾ FY10 D&A expense approximately $200m ¾ Fu
Slide 14: Group: Key capital features
Group: Key capital features 700 For personal use only 600 500 400 $M 300 200 100 - FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Drawn Bank Debt Undrawn Bank Debt Medium Term Notes Tabcorp Retail Bonds US Private Placement ¾ Undrawn facilities $1.1b ¾ Gross Debt/EBITDA 2.1x ¾ FY10 interest
Slide 15: Outlook
Outlook ¾ Tabcorp’s businesses have proven resilient For personal use only Improving revenue performance from new investments Market share gains in most lines of business ¾ Economic environment remains uncertain Unemployment and consumer confidence improving Wind back of government stimulus
Slide 16: Summary
Summary ¾ Normalised NPAT up 0.8% For personal use only Revenues up 2.6% driven by Star City and Wagering Expenses up 2.9% ¾ Divisional performance Casinos – Star City performing well; Qld impacted by gaming taxes and soft market Wagering – strategic initiatives gaining traction Gaming – V
Slide 17: Appendices
For personal use only Appendices 1. Group results 2. Earnings per share and dividends per share 3. Casinos: Financial data 4. Casinos: Revenues by state and product 5. Wagering: Financial data 6. Wagering: Revenues by state and product 7. Gaming: Financial data 8. Gaming: Market share 9. Balance she
Slide 18: 1. Group results
1. Group results Actual Change Normalised Change $m 1H10 on pcp 1H10 on pcp For personal use only Total operating revenues 2,153.8 1.9% 2,163.6 2.4% Other revenues1 26.9 23.0% 26.9 23.0% Revenue 2,180.7 2.1% 2,190.5 2.6% Government taxes & levies (602.6) 3.8% (603.6) 4.0% Operating commissions (261.
Slide 19: 2. Earnings per share and dividends per share
2. Earnings per share and dividends per share Normalised earnings per share Dividends per share For personal use only 53.5 51.5 49.4 47 47 47.4 44 43.5 35 30 Growth Growth on pcp: on pcp: 0.0% (3.7%) (8.0%) 4.3% (11.9%) 10.0% 6.8% 0.0% (25.5%) (14.3%) 1H06 1H07 1H08 1H09 1H10 1H06 1H07 1H08 1H09 1H1
Slide 20: 3. Casinos: Financial data
3. Casinos: Financial data Actual Change Normalised Change For personal use only $m 1H10 1H09 on pcp 1H10 1H09 on pcp Revenue 685.1 676.6 1.3% 694.9 674.7 3.0% Taxes, levies, commissions and fees (146.7) (129.1) 13.6% (147.7) (128.9) 14.6% Operating Expenses (355.5) (347.3) 2.4% (355.5) (347.3) 2.4%
Slide 21: 4. Casinos: Revenue by state and product
4. Casinos: Revenue by state and product NSW Change Qld Change Total Change For personal use only $m 1H10 on pcp 1H10 on pcp 1H10 on pcp EGMs 101.6 12.3% 139.9 (2.8%) 241.5 3.0% Main Gaming Floor 148.2 4.9% 66.7 3.4% 214.9 4.5% Private Gaming Rooms 62.8 6.9% 31.4 (1.8%) 94.2 3.8% VIP Rebate (Normali
Slide 22: 5. Wagering: Financial data
5. Wagering: Financial data Change $m 1H10 1H09 on pcp For personal use only Operating revenues Racing - Victoria1 268.5 268.8 (0.1%) 2 Racing - NSW 430.6 414.7 3.8% Fixed Odds 69.1 56.6 22.1% Trackside 13.9 12.3 13.0% Media 59.4 55.9 6.2% Other 24.4 19.8 23.3% Total operating revenues 865.9 828.1 4
Slide 23: 6. Wagering: Revenue by state and product
For personal use only 6. Wagering: Revenue by state and product NSW1 Change Vic1 Change Total Change $m 1H10 on pcp 1H10 on pcp 1H10 on pcp Operating revenues Thoroughbred 298.3 3.3% 184.8 (0.6%) 483.1 1.8% Harness 54.5 4.5% 38.6 1.9% 93.1 3.4% Greyhounds 77.8 5.4% 45.1 0.4% 122.9 3.5% Total racing
Slide 24: 7. Gaming: Financial data
7. Gaming: Financial data Change For personal use only $m 1H10 1H09 on pcp Operating revenues Victorian network - Hotel 351.1 353.8 (0.8%) - Clubs 191.3 194.6 (1.7%) Total Victorian gaming 542.4 548.4 (1.1%) Keno 67.3 64.3 4.6% Other 2.7 2.9 (6.9%) Total operating revenues 612.4 615.6 (0.5%) Other r
Slide 25: 8. Gaming: Market share
8. Gaming: Market share Tabcorp vs Tatts Group 54.0% For personal use only Vic Gaming Revenue Market Share July 2005 to December 2009 53.0% 52.0% Tabcorp Market Share % 51.0% 50.0% 49.0% Tatts Group 48.0% 47.0% 46.0% Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Sep-05 Sep-06
Slide 26: 9. Balance sheet
9. Balance sheet As at As at Change $m 31 Dec 09 30 Jun 09 on pcp For personal use only Total current assets 372.2 403.2 (7.7%) Licences 670.3 688.1 (2.6%) Other intangible assets 3,646.3 3,641.8 0.1% Property, plant and equipment 1,613.9 1,566.3 3.0% Other non current assets 45.1 40.0 12.7% Total a
Slide 27: 10. Cashflow
10. Cashflow Actual Change For personal use only $m 1H10 1H09 on pcp Net operating flows 507.0 527.6 (3.9%) Net interest payments (73.8) (83.4) (11.5%) Income tax paid (98.9) (98.8) 0.1% Payments for PP&E (201.7) (144.6) 39.5% Net operating cash flows 132.6 200.8 (33.9%) Proceeds from sale of assets
Slide 28: For personal use only
For personal use only Front cover: images from Tabcorp’s Casino, Wagering, and Gaming businesses. 27