Star Entertainment Group Limited · ASX:SGR
Star Entertainment — Echo Entertainment Group — Shareholder Meeting (October 2012)
30 slides from Star Entertainment's shareholder meeting presentation, Oct 25, 2012
Slide 1: Echo Entertainment Group 2012 Annual General Meeting
ECHO ENTERTAINMENT GROUP LIMITED 2012 Annual General Meeting – 25 October 2012 John O’Neill AO - Chairman 1
Slide 2: Agenda
AGENDA □ Chairman’s address The emergence of Echo Entertainment Group Property and investment overview Community FY12 financial results overview Group trading update CEO Transition and the Board Strategy □ Managing Director and Chief Executive Officer address Transformation of The St
Slide 3: The Emergence of Echo Entertainment Group
THE EMERGENCE OF ECHO ENTERTAINMENT GROUP □ FY12 Echo’s first full year as a stand-alone company – demerging from Tabcorp in June 2011 □ Separation from Tabcorp completed effectively in June 2012 with end of all material transitional services arrangements □ First year as a stand alone company provid
Slide 4: Echo Entertainment Group Today
ECHO ENTERTAINMENT GROUP TODAY TREASURY HOTEL & CASINO JUPITERS HOTEL & □ Established in 1995 CASINO GOLD COAST THE STAR □ Perpetual licence linked to □ Established in 1985 □ Established in 1995 the lease of the Treasury □ Perpetual licence □ 99 year licence site that expires in 2070 expires in 2093
Slide 5: Launching The Star
LAUNCHING THE STAR □ The Star was officially launched on September 15 2011 with large media coverage and celebrity attendance □ Larry Mullin, George Souris MP, Olivia Newton John and Russell Crowe officially opened The Star 5
Slide 6: Launching the Jupiters Theatre
LAUNCHING THE JUPITERS THEATRE JUPITERS THEATRE GOLD COAST □ Jupiters Hotel & Casino Gold Coast launched the refurbished Jupiters Theatre in April 2012 □ $20 million investment transforming the theatre into a 2,000 seat or 2,300 general admission state-of the-art venue 6
Slide 7: Proposed Expansion of Queensland Casinos
PROPOSED EXPANSION OF QUEENSLAND CASINOS □ Significant refurbishment of Echo’s Queensland assets planned □ Majority of gaming concessions to support the investment have been awarded – the exact nature and scope of the investment is still being determined in discussions with the Queensland Government
Slide 8: VIP Business Profile
VIP BUSINESS PROFILE □ Continued market share growth in FY12 is validating the investments made into developing a proposition for VIP customers □ All VIP gaming areas at The Star now commissioned – next investment into Jupiters Gold Coast □ Patron approval processes reviewed and upgraded 8
Slide 9: Community
COMMUNITY □ Echo Entertainment Group as a major employer in Queensland and NSW is committed to growing and developing the communities in which our employees live and work □ Investment Programs $870 million investment in The Star driving tourism and local economic benefits $20 million refurbishme
Slide 10: FY12 Financial Results Overview
FY12 FINANCIAL RESULTS OVERVIEW □ NPAT of $42.2m, not comparable to pcp given demerger. Results negatively impacted by a number of significant items, a negative VIP win rate in 4Q12 and a disappointing 3Q12 at The Star □ Normalised* EBITDA of $386.0m down 4.5% on the pcp, impacted by a soft consumer
Slide 11: Update on Group YTD Revenue Growth
UPDATE ON GROUP YTD REVENUE GROWTH □ Current trading for the start of FY13 continues to be solid. Revenue up 12.9% (6.9% normalised) for 16 weeks to 21 October 2012 □ Revenue growth at The Star strong driven by new product openings and continued activation of gaming areas. Revenue growth solid acros
Slide 12: CEO Transition and the Board
CEO TRANSITION AND THE BOARD □ Announced on 27 September 2012 that Managing Director and CEO Larry Mullin will leave the company on 31 January 2013 □ International search for a new CEO progressing well □ Board renewal process also underway following resignations of two non-executive directors, John
Slide 13: The Board
THE BOARD John O’Neill AO Anne Brennan Chairman and Non Executive Non Executive Director Director Larry Mullin John Redmond Managing Director Non Executive Director and Chief Executive Officer Katie Lahey Matt Bekier Proposed Non Executive Chief Financial Officer Director and Executive Director (sub
Slide 14: Strategy
STRATEGY □ Lift operational performance – generate returns on investment made and valuable licences. Lower risk profile □ Improve Government relations in New South Wales □ Generate viable development options for Echo in Queensland □ Assess all other business proposals against test of maximum value c
Slide 15: Larry Mullin – Managing Director and Chief Executive Officer
ECHO ENTERTAINMENT GROUP LIMITED 2012 Annual General Meeting – 25 October 2012 Larry Mullin – Managing Director and Chief Executive Officer 15
Slide 16: Transformation of The Star
TRANSFORMATION OF THE STAR □ The Star’s $870 million transformation is rapidly progressing to completion with the Events Centre, due to be completed by end of 2012 □ FY12 saw the commissioning of: Completely refurbished and expanded Main Gaming Floor Exclusive VIP gaming venue Sovereign Lakes
Slide 17: The Star - Successive Openings in 2012
THE STAR - SUCCESSIVE OPENINGS IN 2012 □ Significant new product opened over the course of FY12 Non-gaming □ Project Star nearing completion – Events Centre opening January 2013 Gaming FY12 FY13 July August September October November December 2H12 FY13 Vestibule Gaming Area Pirrama Rd Sokyo Retail P
Slide 18: The Star - Gaming
THE STAR - GAMING ¥ . _—
Slide 19: The Star - Restaurants and Nightlife
THE STAR - RESTAURANTS AND NIGHTLIFE 19
Slide 20: The Star - The Darling and Retail
THE STAR - THE DARLING AND RETAIL 20
Slide 21: The Star - Events Centre (January 2013)
THE STAR - EVENTS CENTRE (JANUARY 2013) 21
Slide 22: The Star - Positive Response to Openings
THE STAR - POSITIVE RESPONSE TO OPENINGS Australian, Australia 28 Jul 2012, Australian Financial Review, Australia 02 May 2012 Conde Nast Traveller 2012, May 2012 Conde Nast Traveller 2012 EGlobal Travel Media, Australia / New Zealand / India / Asia / Japan / America, May 1, 2012 Australian, Austral
Slide 23: The Star - Awards
THE STAR - AWARDS The Star has received significant accolades and awards domestically and internationally The Star The Darling Momofuku Balla Black by ezard Winner - Commercial Large Best New Hotel Construction Restaurant of the Year Best New Restaurant Three Glass - Wine List of Project Category NS
Slide 24: The Star - Gaming Revenue Growth
THE STAR - GAMING REVENUE GROWTH □ Revenue has built momentum across all major lines of business at The Star since April □ Tables games, EGM and non-gaming all exhibiting solid growth in FY13 YTD The Star The Star Table Games (ex VIP & MTGM) Slot and MTGM PCP Revenue Growth PCP Revenue Growth 25% 16
Slide 25: Continuing Investment in Queensland
CONTINUING INVESTMENT IN QUEENSLAND □ Investment is already underway in our Queensland properties □ Jupiters Theatre – The $20 million refurbishment of the Jupiters Theatre was completed in April at Jupiters Hotel & Casino Gold Coast. □ entwine – Jupiters Hotel & Casino Gold Coast’s finest new dinin
Slide 26: Experienced Operational Management Team
EXPERIENCED OPERATIONAL MANAGEMENT TEAM Frederic □ Over 10 years global casino and hotel management Luvisutto experience MD – The Star □ The Star MD since February 2012 - previously Jupiters Gold Coast MD □ Formerly with MGM Resorts International Geoff Hogg □ Over 17 years casino operations experien
Slide 27: Basis of Preparation & Non-IFRS Information
BASIS OF PREPARATION & NON-IFRS INFORMATION □ Information in this presentation is provided as at the date of the presentation unless specified otherwise. It should be read in conjunction with Echo Entertainment Group Limited’s financial report for the full year ended 30 June 2012 and other disclosur
Slide 28: Glossary
GLOSSARY Capital expenditure (capex) Unless otherwise stated, capital expenditure is presented on an accruals basis and excludes intangible assets, investments in associates and equity acquisitions. It is shown gross of any fixed asset disposals proceeds Customer front money Deposits of funds at the
Slide 29: Disclaimer
DISCLAIMER □ This presentation is prepared for information purposes only and does not take into consideration any individual investor’s circumstances. Echo Entertainment Group recommends investors make their own assessments and seek independent professional advice before making investment decisions.
Slide 30: Echo Entertainment Group Limited
ECHO ENTERTAINMENT GROUP LIMITED 2012 Annual General Meeting – 25 October 2012 30
Echo Entertainment Group — Shareholder Meeting (October 2012) on 6ix