Star Entertainment Group Limited · ASX:SGR
Star Entertainment — The Star Entertainment Group — Morgans Conference 2019
19 slides from Star Entertainment's conference presentation, Oct 9, 2019
Slide 1: Presentation at Morgans Conference
For personal use only THE STAR ENTERTAINMENT GROUP PRESENTATION AT MORGANS CONFERENCE WEDNESDAY 9 OCTOBER 2019
Slide 2: Basis of Preparation and Non-IFRS Information
THE STAR ENTERTAINMENT GROUP THE STAR ENTERTAINMENT GROUP LIMITED (ASX: SGR) BASIS OF PREPARATION AND NON-IFRS INFORMATION For personal use only ♦ Information in this presentation is provided as at the date of the presentation unless specified otherwise. It should be read in conjunction with The Sta
Slide 3: Introduction: Growth Assets Portfolio
INTRODUCTION GROWTH ASSETS PORTFOLIO Today Sydney and Gold Coast – recently upgraded, expanded For personal use only 3 properties 1,389 4,783 Unlimited Sydney, GC, Brisbane Premium Hotel Keys Slots cap Tables and MTGMs ♦ Sheraton Grand Mirage Gold Coast (50% share) ♦ GCCEC (management rights) The St
Slide 4: Earnings: Domestic Focus, Long-Term Growth
EARNINGS DOMESTIC FOCUS, LONG-TERM GROWTH ♦ 88% of earnings is domestic 12% FY2019 Earnings Mix For personal use only (FY2019 normalised EBITDA) Domestic ($491m) International VIP ($66m) 88% Domestic Revenue Domestic EBITDA Long-term Domestic Growth 491 2,000 1,917 500 468 1,859 Total 5.1% CAGR 460
Slide 5: Strategy: Focus on Returns
STRATEGY FOCUS ON RETURNS Large Attractive Markets $24bn $42bn For personal use only $44bn $35bn Domestic Gambling Domestic F&B International VIP Inbound Tourism Market Market Growth Assets Assets Growth Projects ♦ Sydney and Gold Coast recently upgraded, ♦ Sydney – Sovereign Resorts (FY2020) expand
Slide 6: FY2019 Recap – Delivering on Our Strategy
FY2019 RECAP – DELIVERING ON OUR STRATEGY Our Strategy Our Delivery For personal use only 1 Continued above system growth in domestic gaming ♦ Signature gaming ♦ Slots market share gains, consolidation at all properties ♦ Premium hotel rooms ♦ Solid tables growth ♦ F&B ♦ Retail (on site, nearby) ♦ C
Slide 7: Derisking Initiatives
DERISKING INITIATIVES Restructure Delivers ~$40m Enhanced ♦ Centres of excellence For personal use only Cost Benefits Operating Model ♦ Improves capability, processes, decision-making Drives Significant ♦ ~$40m annualised cost benefits achieved by mid-August 2019 Cost Benefits ♦ ~$45m by end 1H FY20
Slide 8: Capital Projects Proceeding to Plan
CAPITAL PROJECTS PROCEEDING TO PLAN Recently ♦ Astral lobby and porte cochere, main entry foyer upgrades The Star Sydney For personal use only Completed completed 2H FY2019 Sovereign 2.0 on ♦ $220m upgrade and expansion to complete 4Q FY2020 Schedule ♦ Limited impact on customers expected Recently ♦
Slide 9: The Star Sydney 2H FY2019 Milestones
THE STAR SYDNEY 2H FY2019 MILESTONES For personal use only JADE RABBIT – NEW MGF F&B OPENED APRIL 2019 THE STAR LOBBY OPENED MAY 2019 CHUUKA GRAND FOYER OPENED JUNE 2019 OPENED MAY 2019 9
Slide 10: The Star Sydney Sovereign Resort
THE STAR SYDNEY SOVEREIGN RESORT For personal use only CONCEPT IMAGE LOBBY CONCEPT IMAGE OCTOBER 2019 DINING 10
Slide 11: The Star Gold Coast Masterplan, Tower 1 and Tower 2
THE STAR GOLD COAST MASTERPLAN, TOWER 1 AND TOWER 2 For personal use only Masterplan??? DORSETT HOTEL AND RESIDENCES (TOWER 1) CONSTRUCTION UNDERWAY CONCEPT IMAGE CONCEPT IMAGE THE STAR GOLD COAST TOWER 2 HOTEL AND RESIDENCES MASTERPLAN CONCEPT 11
Slide 12: Queen's Wharf Brisbane Progressing to Plan
QUEEN’S WHARF BRISBANE PROGRESSING TO PLAN For personal use only CONCEPT IMAGE FRONT FACADE AUGUST 2019 CONCEPT IMAGE GEORGE STREET VIEW OCTOBER 2019 12
Slide 13: Priorities
PRIORITIES For personal use only Improve and Derisk Returns Across the Group ♦ Leverage improved capabilities Execute on Centre of Excellence operating 1 ♦ Extract and retain efficiencies model ♦ Build on solid PGR performance, improve MGF performance ♦ Sydney ♦ Gold Coast masterplan 2 Deliver on in
Slide 14: Appendices
For personal use only APPENDICES 14
Slide 15: Growth Drivers: Valuable Licences in Attractive Markets
GROWTH DRIVERS VALUABLE LICENCES IN ATTRACTIVE MARKETS Valuable Licences Long-dated Product Differentiation vs Pubs/ Clubs For personal use only ♦ 2093 earliest expiry ♦ Slots – no bet limits except Sydney MGF ♦ Tables – exclusive, unlimited ♦ MTGMs – exclusive in Qld, pubs/ clubs capped in NSW; unl
Slide 16: Domestic Gambling: Executing on Priorities
DOMESTIC GAMBLING EXECUTING ON PRIORITIES Clear Priorities For personal use only Australian Gambling Market $24bn Casino and EGM 1 Increase share of wallet Market $17bn 2 Expand loyalty base Existing SGR Loyalty 3 Increase margin Member Wallet $3bn Existing SGR Loyalty Revenue $1bn Execution Levers
Slide 17: Tourism: Long-Term Growth
TOURISM LONG-TERM GROWTH ♦ 149m Chinese outbound 2018 Attractive Chinese Outbound Large, High Growth For personal use only ♦ Up 14% on 2017 ♦ Higher spending independent travellers winning share Premiumisation ♦ Long-haul winning share Australian Inbound Tourism Expenditure Source Markets in FY2029
Slide 18: Complementary Partners: Executing on Opportunities
COMPLEMENTARY PARTNERS EXECUTING ON OPPORTUNITIES ♦ Australian and global project development Complementary Capabilities For personal use only ♦ Access Asian high value consumer, 6m loyalty members ♦ Capital contributions Development Retail/ Distribution Hospitality HK jewellery group, HK developer,
Slide 19: Thank You
For personal use only THANK YOU
The Star Entertainment Group — Morgans Conference 2019 on 6ix