Skycity Entertainment Group Limited · NZX:SKC
Skycity Entertainment — UBS Investor Conference 2015
30 slides from Skycity Entertainment's conference presentation, Nov 16, 2015
Slide 1: ASX cover letter for UBS Investor Conference presentation
16 November 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 UBS Investor Conference. Yours faith
Slide 2: Presentation for UBS Investor Conference
For personal use only Presentation for UBS Investor Conference Sheraton on the Park, Sydney 16 November 2015
Slide 3: Introduction: Agenda for the conference
Introduction For personal use only Agenda for the conference 1 Re-cap on key achievements during FY15 2 Current trading update for YTD period to 31 October 2015 3 Update on progress of major capital projects in Auckland (NZICC) and Adelaide 4 Key focus areas for management for the remainder of FY1
Slide 4: Key Highlights Of FY15 Result
For personal use only Key Highlights Of FY15 Result
Slide 5: FY15 Result Overview (1 of 2)
FY15 Result Overview (1 of 2) For personal use only Record normalised revenue up 8.7% (over $1.0bn for the first time) and solid earnings growth with normalised NPAT up 8.8% to $134.1m • Continued strong growth in Auckland • Strong growth in group-wide International Business (“IB”) • Solid revenue
Slide 6: FY15 Result Overview (2 of 2)
FY15 Result Overview (2 of 2) For personal use only FY15 FY14 Movement $m $m $m % Normalised Revenue (incl Gaming GST) 1,007.7 927.3 80.4 8.7% Normalised EBITDA 304.9 287.6 17.3 6.0% Normalised NPAT 134.1 123.2 10.9 8.8% Normalised EPS 22.9 cps 21.3 cps 1.6 cps 7.5% FY15 FY14 Movement $m $m $m % Rep
Slide 7: FY15 Recognition and Awards
FY15 Recognition and Awards For personal use only SKY Tower: Depot: SKYCITY Darwin: SKYCITY SKYCITY Auckland: East Day Spa: “NZ number 1 Tourist “Metro “Best Adelaide, Sean’s “Australasia’s “Oceania's Best Attraction & Restaurant of the Entertainment Kitchen: Leading Casino Hotel SPA” Landmark” Year
Slide 8: Trading Update months to October 2015
For personal use only Trading Update 4 months to 31 October 2015
Slide 9: Trading Update (1 of 4)
Trading Update (1 of 4) For personal use only Strong momentum in 2H15 has continued through the first 4 months of FY16 • Normalised revenue up 11.1% to $373.2m and normalised EBITDA up 20.5% to $121.8m • Normalised EBITDA margins across all businesses have improved on the pcp, with sound cost- man
Slide 10: Trading Update (2 of 4)
Trading Update (2 of 4) For personal use only Significant progress made in improving performance at Adelaide Casino • Normalised revenue up 24.4% to A$70.3m and normalised EBITDA up 77.2% to A$14.7m • Significant cost-saving initiatives implemented across the property • Strong IB growth with turno
Slide 11: Trading Update (3 of 4)
Trading Update (3 of 4) (YTD Revenue to 31 October) For personal use only Normalised Revenue (including International Business) FY16 FY15 Movement YTD YTD $m $m $m % New Zealand Casinos ■ Auckland 209.3 197.1 12.2 6.2% ■ Hamilton 18.1 16.3 1.8 11.3% ■ Queenstown / Other 10.7 4.6 6.1 132.6% Total New
Slide 12: Trading Update (4 of 4)
Trading Update (4 of 4) (YTD EBITDA to 31 October) For personal use only Normalised EBITDA (including International Business) FY16 FY15 Movement YTD YTD $m $m $m % New Zealand Casinos ■ Auckland 89.6 78.9 10.7 13.6% ■ Hamilton 7.8 6.1 1.7 27.9% ■ Queenstown / Other 1.9 0.2 1.7 850.0% Total New Zeala
Slide 13: Capital Projects: NZICC
For personal use only Capital Projects NZICC
Slide 14: Overall Project Update
Overall Project Update For personal use only Fletcher Construction appointed as main contractor for the NZICC and Hobson St hotel projects following a competitive tender process Construction contracts for NZICC and Hobson St hotel signed on 11 November 2015, activating the gaming concessions und
Slide 15: Total Project Costs
Total Project Costs For personal use only Total project costs consistent with previous market guidance and include appropriate contingencies SKYCITY intends to complete the NZICC and Hobson St hotel within the project budget NZ$m Spent to Date Still to Spend Total NZICC 94 378 471 Laneway, Addit
Slide 16: Future Capital Expenditure Profile
Future Capital Expenditure Profile For personal use only Total capital expenditure of $635m over FY16 to FY20, including Hobson St hotel and activation of gaming concessions NZ$m FY16 FY17 FY18 FY19 FY20 Total NZICC, Laneway, Additional Car 37 107 192 100 5 441 Parks, Other Activation of Gaming Co
Slide 17: Activation of Gaming Concessions
Activation of Gaming Concessions For personal use only The gaming concessions under the NZICC Agreement became effective upon the signing of the NZICC building works contract on 11 November ~$54m of capital expenditure allowed for activation of gaming concessions, which will be split into two st
Slide 18: Project Master Plan, Looking East
Project Master Plan, Looking East For personal use only SKYCITY Auckland Hobson St hotel NZICC Laneway 17
Slide 19: Capital Projects: Auckland Atrium Development
For personal use only Capital Projects Auckland Atrium Development
Slide 20: Auckland Atrium Development
Auckland Atrium Development For personal use only SKYCITY is enhancing its Auckland property with a major upgrade of its main atrium SKYCITY has engaged internationally renowned architects YWS to design and deliver a world-class entry experience SKYCITY plans to spend ~$24m on the improvements
Slide 21: Auckland Atrium Development – Main Foyer
Auckland Atrium Development – Main Foyer For personal use only 20
Slide 22: Capital Projects: Adelaide Expansion
For personal use only Capital Projects Adelaide Expansion
Slide 23: Adelaide Expansion
Adelaide Expansion For personal use only SKYCITY is well advanced in finalising the design for the expansion of the Adelaide Casino SKYCITY’s latest design envisages: • ~80 room all-suite boutique hotel • ‘Horizon’ villas and suites for SKYCITY’s growing International Business • Additional two s
Slide 24: Adelaide Expansion – At Night
Adelaide Expansion – At Night For personal use only 23
Slide 25: Funding Update
For personal use only Funding Update
Slide 26: Funding Update
Funding Update For personal use only SKYCITY is well placed to fund the NZICC and Hobson St hotel projects from future operating cash flows and additional debt funding Following the recent $125m NZ bond issue, SKYCITY now has over $300m of committed undrawn bank facilities – sufficient headroom
Slide 27: Outlook
For personal use only Outlook
Slide 28: Management Focus For Remainder Of FY16
Management Focus For Remainder Of FY16 For personal use only Continue to optimise the operating performance of all businesses Continue to drive improved performance at the Adelaide Casino Commence construction on the NZICC development by the end of 2015 Successfully activate the NZICC gaming
Slide 29: Disclaimer
Disclaimer For personal use only All information included in this presentation is provided as at 16 November 2015 The presentation includes a number of forward-looking statements. Forward-looking statements, by their nature, involve inherent risks and uncertainties. Many of those risks and uncer
Slide 30: For personal use only
For personal use only
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