Star Entertainment Group Limited · ASX:SGR
Star Entertainment — Echo Entertainment Group — H1 FY2015 Earnings Presentation
31 slides from Star Entertainment's earnings presentation, Feb 4, 2015
Slide 1: Half Year Results Presentation
4 February 2015 HALF YEAR RESULTS PRESENTATION Attached is the presentation regarding the financial results of Echo Entertainment Group Limited (Echo) for the half year ended 31 December 2014, to be presented by Matt Bekier, Managing Director and Chief Executive Officer, and Chad Barton, Chief Finan
Slide 2: Half Year 2015 Results Presentation
ECHO HALF YEAR 2015 RESULTS PRESENTATION 04 FEBRUARY 2015 ECHOENTERTAINMENT GROUP
Slide 3: Basis of Preparation and Non-IFRS Information
ECHO ENTERTAINMENT GROUP ECHO ENTERTAINMENT GROUP LIMITED (ASX: EGP) BASIS OF PREPARATION AND 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
Slide 4: Agenda
ECHO ENTERTAINMENT GROUP AGENDA 1. OVERVIEW MATT BEKIER - CEO 2. FINANCIALS CHAD BARTON - CFO 3. OUTLOOK AND PRIORITIES MATT BEKIER - CEO ECHO ENTERTAINMENT GROUP
Slide 5: Overview: Half Year FY2015 Results
OVERVIEW HALF YEAR FY2015 RESULTS > Actual gross revenue for 1H FY2015 of $1,137m up 26.2% (IH FY2015 normalised gross revenue of $1,160m up 28.3%) on pcp driven by strong domestic and International VIP Rebate business revenues * Tables (MGF and PGR) up 17.7% across the group * Slots up 16.3% * Inte
Slide 6: Key Drivers of Half Year FY2015 Results
OVERVIEW KEY DRIVERS OF HALF YEAR FY2015 RESULTS ($m) 500 450 400 350 300 250 200 150 100 50 196 2 1H FY2014 International Reported VIP Rebate EBITDA Business Normalisation Impact 199 1H FY2014* Normalised EBITDA (excluding significant items) 93 163 163 31.5% 22.5% h 30 Growt Growth — T T Internatio
Slide 7: Key Drivers - The Star Sydney
OVERVIEW KEY DRIVERS - THE STAR SYDNEY Strong half with normalised gross revenue of $820m up 38.8% versus pcp (actual gross revenue of $795m up 34.3% versus pcp). Normalised EBITDA up 37.7% versus pcp (actual EBITDA growth of 19.5% versus pcp): >» MGF and PGR (excluding International VIP Rebate busi
Slide 8: The Star Sydney
OVERVIEW THE STAR SYDNEY > The significant investment in The Star Sydney is continuing to The Star Sydney deliver as momentum in both the domestic and International Rolling 12 Months Normalised EBITDA ($m)* VIP Rebate business continues to flow through 400 350 » The reinvestment program at The Star
Slide 9: Key Drivers - Queensland
OVERVIEW KEY DRIVERS - QUEENSLAND Queensland properties solid with normalised gross revenue of $340m up 8.6% versus pcp (actual gross revenue of $342m up 10.6% versus pcp) and normalised EBITDA up 19.1% versus pcp (actual EBITDA growth of 29.0% versus pcp): >» MGF and PGR (excluding International VI
Slide 10: Jupiters Gold Coast
JUPITERS GOLD COAST The $345m expansion and refresh of Jupiters Gold Coast to restore the property’s competitiveness within the region is well underway > 1H FY2015 saw the following works undertaken: * Opening of redeveloped pool area * Opening of the redeveloped Italian restaurant “Cucina Vivo” * O
Slide 11: Queen's Wharf Brisbane
QUEEN'S WHARF BRISBANE Submitted detailed proposal for the Queen’s Wharf Brisbane Project on the 28th of October 2014 along with partners in the Destination Brisbane Consortium (DBC) Key features of DBC’s plans for the Queen’s Wharf precinct include: > 5 new premium hotel brands, including the world
Slide 12: EGM Market Share
OVERVIEW EGM MARKET SHARE a 36% 35% 34% 33% + 32% 31% 30% 29% 28% T T EGM market share for the IH FY2015 period has increased versus pcp at all properties The Star market share for Ql FY2015 was 8.6% versus 7.9% in QI FY2014 (Q2 FY2015 market data not currently available) Queensland market share for
Slide 13: International VIP Rebate Business Performance
OVERVIEW INTERNATIONAL VIP REBATE BUSINESS PERFORMANCE > Normalised gross revenue of $332m up 96.7% (actual gross revenue of $309m up 86.1%) versus pcp > International VIP Rebate business customer front money of $2,022m up 119.4% versus pcp, the highest half year performance on record driven predomi
Slide 14: Solid Progress - Delivering to Plan
OVERVIEW SOLID PROGRESS - DELIVERING TO PLAN > Solid, stable leadership in place and strengthened operational capability > Progress made during 1H FY2015 on all key strategic priorities: * Improved operational performance at both The Star and Queensland properties * Filled all key roles * Executing
Slide 15: Agenda
ECHO ENTERTAINMENT GROUP AGENDA 1. OVERVIEW MATT BEKIER - CEO 2. FINANCIALS CHAD BARTON - CFO 3. OUTLOOK AND PRIORITIES MATT BEKIER - CEO ECHO ENTERTAINMENT GROUP
Slide 16: Echo Group Profit and Loss
FINANCIALS ECHO GROUP PROFIT AND LOSS ($m) 1H FY2014 1H FY2015 Grow 1H FY2014 Growth Actual Actual % Normalised Normalised % Gross Revenue! 901.3 1,137.1 26.2% 904.1 1,160.2 28.3% Variable contribution 621.7 696.2 12.0% 624.1 717.0 14.9% Operating expenditure (425.3) (455.6) (7.1%) (425.3) (455.6) (
Slide 17: Balance Sheet and Dividend
FINANCIALS BALANCE SHEET AND DIVIDEND > ASSETS Current Assets Cash and cash equivalents 144.9 1966 Trade and other receivables 87.1 162 7 Inventories 65 79 Income tax receivable "7 - F Derivative financial instruments 2.9 79 Other assets 217 96.2 Assets classified as held for sale 69.7 > Non current
Slide 18: Echo Funding
FINANCIALS ECHO FUNDING > 1H FY2015 net debt of $505m (June 2014 $635m)* > Undrawn bank facilities of $410m and average drawn debt maturity of 4.0 years > 1H FY2015 statutory net finance costs of $26m (1H FY2014 statutory net finance costs were $59m including costs of $22m associated with the closin
Slide 19: Capital Expenditure
FINANCIALS CAPITAL EXPENDITURE > 1H FY2015 capital expenditure of $75m up $14m on pcp consisting predominantly of growth and maintenance activities at Jupiters Gold Coast and The Star Sydney > FY2015 capital expenditure expected to be between $200m-$250m largely consisting of: + Jupiters Gold Coast
Slide 20: Metrics
FINANCIALS METRICS Actual Gross Revenue ($m) Dividend Per Share (cents) 1,137 1,200 996 18 6 5.0 901 1,000 5 40 40 800 4 600 3 400 2 200 1 1H FY2014 2H FY2014 1H FY2015 TH FY2014 2H FY2014 1H FY2015, Statutory NPAT ($m) EBIT / Net Interest Expense Ratio (times) * 120 6 97 4.99 100 5 3.65 80 60 4 60
Slide 21: Agenda
ECHO ENTERTAINMENT GROUP AGENDA 1. OVERVIEW MATT BEKIER - CEO 2. FINANCIALS CHAD BARTON - CFO 3. OUTLOOK AND PRIORITIES MATT BEKIER - CEO ECHO ENTERTAINMENT GROUP
Slide 22: Trading Update and Strategic Priorities
OUTLOOK AND PRIORITIES TRADING UPDATE AND STRATEGIC PRIORITIES >» Domestic gaming volumes 2H FY2015 YTD consistent with level experienced in 1H FY2015 > 2H FY2015 YTD revenue growth comparison to prior period difficult given timing of Chinese New Year > International VIP Rebate business volumes in J
Slide 23: Agenda
ECHO ENTERTAINMENT GROUP AGENDA 1. OVERVIEW MATT BEKIER - CEO 2. FINANCIALS CHAD BARTON - CFO 3. OUTLOOK AND PRIORITIES MATT BEKIER - CEO ECHO ENTERTAINMENT GROUP
Slide 24: Appendix
ECHO ENTERTAINMENT GROUP APPENDIX THE STAR AND QUEENSLAND RESULTS - ACTUAL THE STAR AND QUEENSLAND RESULTS - NORMALISED OPERATIONAL BENCHMARKS JUPITERS TOWNSVILLE CASH COLLECTION RATIO INTERNATIONAL VIP REBATE BUSINESS RECEIVABLES GLOSSARY ECHO ENTERTAINMENT GROUP PAGE 24 PAGE 25 PAGE 26 PAGE 27 PAG
Slide 25: The Star and Queensland Results - Actual
APPENDIX THE STAR AND QUEENSLAND RESULTS-ACTUAL The Star QLD Total IHFY2014 1HFY2015 _%/ eyoo14 HFY2015 Y/ Wy FY2014 IHFY2015_ f¥/ (unfav) (unfav) (unfav) Slots 122.3 142.2 16.3% 136.7 159.1 16.3% 259.0 301.3 16.3% Table Games 236.5 282.3 19.4% 99.9 13.5 13.7% 336.3 395.8 17.7% Main Gaming Floor 182
Slide 26: The Star and Queensland Results - Normalised
APPENDIX THE STAR AND QUEENSLAND RESULTS-NORMALISED Normalised* The Star QLD Total $m 1H FY2014 1H FY2015 can 1H FY2014 1H FY2015 ny 1H FY2014 1H FY2015 ca Slots 122.3 142.2 16.3% 136.7 159.1 16.3% 259.0 301.3 16.3% Table Games 236.5 282.3 19.4% 99.9 113.5 13.7% 336.3 395.8 17.7% Main Gaming Floor 1
Slide 27: Operational Benchmarks
APPENDIX OPERATIONAL BENCHMARKS The Star QLD Casinos Comment Operational Benchmarks 1H 1H 1H 1H FY2014 FY2015 FY2014 FY2015 >» Domestic gaming business shows continued solid momentum across the group: Slots Revenue ($m) 122 142 137 159 . 9 9 Rear, Ane we oes ia Slots up 16.3% and MTGMs up 28.4% vers
Slide 28: Jupiters Townsville
APPENDIX JUPITERS TOWNSVILLE Jupiters Townsville sale was completed on 1 October 2014. 1H FY2015 earnings include Jupiters Townsville earnings from 1 July 2014 to 30 September 2014 with 1H F20Y14 including a full six months of Jupiters Townsville earnings Townsville Townsville 1H FY2014 IH FY2015* F
Slide 29: Cash Collection Ratio
APPENDIX CASH COLLECTION RATIO CERIO Dec-13 Dec-14 $m Cash flows from operating activities before interest and income tax Net cash receipts in the course of operations 851.9 1,118.4 Payments to suppliers, service providers and employees (522.9) (607.9) Payment of government levies, gaming taxes and
Slide 30: International VIP Rebate Business Receivables
APPENDIX INTERNATIONAL VIP REBATE BUSINESS RECEIVABLES International VIP Rebate Business 30 days O - 30 days 1-3 years 3 years + Receivables (Before provisions) - 1 year December 2014 ($m) Not yet due 72.6 - - - 72.6 Past due not impaired - 16.9 1.7 2.8 21.4 Considered impaired - 7.6 13.2 42 25.0 To
Slide 31: Glossary
APPENDIX GLOSSARY CAGR Capital expenditure (capex) Customer front money D&A EGM F&B MGF MTGM NMR Normalised revenue pcp PGR Rebate Significant items Compound Annual Growth Rate Unless otherwise stated, capital expenditure is presented on an accruals basis and excludes investments in associates and e
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