Star Entertainment Group Limited · ASX:SGR

Star Entertainment — Echo Entertainment Group — Macquarie Investor Conference 2014

10 slides from Star Entertainment's conference presentation, May 9, 2014

  1. Slide 1: Echo Entertainment Group Limited – Macquarie Investor Conference

    ECHO ENTERTAINMENT GROUP LIMITED Macquarie Investor Conference 9 May 2014 Matt Bekier – Managing Director and Chief Executive Officer Harry Theodore – Head of Strategy, Investor Relations and Group Reporting DRAFT

  2. Slide 2: Echo Entertainment Group Profile

    ECHO ENTERTAINMENT GROUP PROFILE Jupiters Townsville Hotel and Casino  Established in 1986  Perpetual licence (Currently under sale agreement) Treasury Casino and Hotel Brisbane  Established in 1995  Perpetual licence linked to the lease of the Treasury site that expires in 2070 Jupiters Hotel &

  3. Slide 3: Recap of Strategic Priorities

    RECAP OF STRATEGIC PRIORITIES 1. Improve operational performance at all properties  Leveraging progress made on cost base over last 12 months  Focus now turning to marketing, customer service enhancements and improvement in processes/systems  Early signs of improving revenue momentum  Continuing

  4. Slide 4: Foundation of Improved Performance – Cost Base

    1. FOUNDATION OF IMPROVED PERFORMANCE – COST BASE □ Cost optimisation program initiated in April 2012 and completed in 1H14 – total cost saving initiatives expected to exceed guidance of $60m for FY14 □ 1H14 opex of $425.3m was down $20.1m on pcp (4.5%) – despite inflation and increased operating fo

  5. Slide 5: Operational Actions to Support Improved Performance

    OPERATIONAL ACTIONS TO SUPPORT IMPROVED PERFORMANCE FOCUS AREA KEY ACTIONS STATUS Revenues □ Conduct detailed market research □ Revamp Loyalty Program □ Identify positioning, target segments and define new offers Underway □ Business Intelligence and Customer Analytics focus Underway □ Review Partner

  6. Slide 6: Revenue Momentum

    REVENUE MOMENTUM □ Revenue momentum across the group is improving: Growth on pcp 1HFY14 3QFY14 Domestic revenue (excluding VIP Rebate) - 3.5% 6.4% Normalised group gross revenue* - 4.8% 5.7% Actual group gross revenue - 7.3% 13.2% □ Revenue growth in 3QFY14 driven by growth in gaming, moderated by s

  7. Slide 7: Delivering on Gold Coast Expansion

    2. DELIVERING ON GOLD COAST EXPANSION □ Development approval process for $345m expansion and refresh of Jupiters Gold Coast progressing well □ Plans leverage existing asset and will result in Jupiters Gold Coast being transformed into a modern resort capable of competing with the best Integrated Res

  8. Slide 8: Participate in Brisbane EOI

    3. PARTICIPATE IN BRISBANE EOI □ Expression of Interest (EOI) for the development of the Queen’s Wharf precinct in Brisbane lodged at the end of March 2014 □ Indicative timeframe for next steps:  Release of shortlisted bidders in June 2014  Development proposals due in late 2014  Decision expecte

  9. Slide 9: Echo Balance Sheet and Funding

    ECHO BALANCE SHEET AND FUNDING □ 1H14 Net debt of $765.8m (excluding cross currency swaps on USPP debt) – net debt of $707.8m after adjusting for value of cross currency swaps □ Balance sheet conservatively geared - Net Debt to EBITDA below 2x in 1H14 □ Close out of hedges undertaken to reduce futur

  10. Slide 10: Basis of Preparation and Disclaimer

    BASIS OF PREPARATION AND DISCLAIMER □ Information in this presentation is provided as at the date of the presentation unless specified otherwise □ Echo Entertainment Group results are reported under International Financial Reporting Standards (IFRS). This presentation may include certain non-IFRS me

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