Tatts Group Limited ABN 19 108 686 040 615 St Kilda Road, Melbourne, Victoria, 3004, Australia
Locked Bag 888, St Kilda Road Central, Melbourne, Victoria, 8008, Australia Tel: 61 3 8517 7777 Fax: 61 3 8517 7752
www.tattsgroup.com
27 October, 2011
TATTS GROUP LIMITED’S 2011 ANNUAL GENERAL MEETING
2011 AGM Slide Presentation
Attached is a copy of the 2011 AGM slide presentation which accompanies the Chairman’s and Managing Director and Chief Executive’s Addresses which will be presented at the Tatts Group Limited’s 2011 Annual General Meeting, commencing at 2.00pm (Sydney time), Thursday 27 October, 2011. Contact: Michael Mangos – General Manager, External Communications – 0419 551 980 Gary Woodford – General Manager, Investor Relations – 0417 399 204
For
per
sona
l use
onl
y
Annual General Meeting27 October 2011
For
per
sona
l use
onl
y
Harry BoonChairman
For
per
sona
l use
onl
y
Agenda
• Group financial results• Long term licences• Strategic direction• Financial management
For
per
sona
l use
onl
y
Group financial performance
Group revenue $3.7 billion Up 11.3%EBITDA $616.3 million Up 9.4%NPAT (Underlying) $279.5 million Down 1.0%
Earnings Per Share 21.2 cents Down 4.1%
Dividend Per Share 21.5 cents Up 2.4%
Dividend payout ratio 102.3% Up 7.2%
For
per
sona
l use
onl
y
Total Shareholder Returns (TSR)
TSR over 3 yearsTatts up 40.1%, ASX200 up 31.6%
TSR over 1 yearTatts up 10.7%,
ASX200 down 4.3%
Source: Bloomberg as at 21/10/2011
‐20.00
‐10.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
24‐Oct‐08
24‐Dec‐08
24‐Feb
‐09
24‐Apr‐09
24‐Jun
‐09
24‐Aug
‐09
24‐Oct‐09
24‐Dec‐09
24‐Feb
‐10
24‐Apr‐10
24‐Jun
‐10
24‐Aug
‐10
24‐Oct‐10
24‐Dec‐10
24‐Feb
‐11
24‐Apr‐11
24‐Jun
‐11
24‐Aug
‐11
TSR ‐ 3 Years
Tatts Group Tabcorp ASX 200
‐15.00
‐10.00
‐5.00
0.00
5.00
10.00
15.00
22‐Oct‐10
22‐Nov
‐10
22‐Dec‐10
22‐Jan
‐11
22‐Feb
‐11
22‐M
ar‐11
22‐Apr‐11
22‐M
ay‐11
22‐Jun
‐11
22‐Jul‐11
22‐Aug
‐11
22‐Sep
‐11
TSR ‐ 1 Year
Tatts Group Tabcorp ASX 200
For
per
sona
l use
onl
y
Long term licences
Secure long term licences -two-thirds of
Revenue comes from licences longer than 40
years
For
per
sona
l use
onl
y
Strategic direction
• Evolution of Tatts Lotteries:– $23m EBITDA in 2006 Approx. $240m EBITDA in 2013
• South Australian Lotteries
• Wagering regulatory landscape
• Core technical and transaction processing competencies
For
per
sona
l use
onl
y
Tatts is a diversified portfolio of networked gambling businesses operating in multiple
jurisdictions with high volumes of transactions each of low average value
For
per
sona
l use
onl
y
Financial management
• Strong balance sheet and cash flow• Net Debt below $1.2 billion at 30 June 2011• Net Debt to EBITDA ratio:
– 2.0 times at 30 June 2011– after losing Tatts Pokies, reverts to June 2010 level
For
per
sona
l use
onl
y
Succession planning
Corporate social responsibility
Diversity
For
per
sona
l use
onl
y
Shareholder questions
• Share Price• Remuneration • Directors Fees• Compensation
For
per
sona
l use
onl
y
Harry BoonChairman
For
per
sona
l use
onl
y
Dick McIlwainManaging Director and
Chief Executive
For
per
sona
l use
onl
y
Tatts Lotteries
• First quarter FY12:– Sales up 6.4%– EBITDA up 4.3%
• Saturday Lotto leading the growth• Tatts lottery system roll out• On target for $240m EBITDA in 2013
For
per
sona
l use
onl
y
TattsBet
• First quarter FY12:– Sales up 1.4%– Revenue down 0.7% and EBITDA down 2.1%
• Competitive environment stabilising• Growth from internet and mobile phone App
For
per
sona
l use
onl
y
Tatts Pokies
• First quarter FY12:– Turnover up over 1.2%– EBITDA up 1.7%– EBIT up 12%
• Pre‐sale of gaming machines• Lower depreciation and make good
For
per
sona
l use
onl
y
Maxgaming and Bytecraft
• First quarter FY12:– Maxgaming revenue down, EBITDA up 1.1%– Bytecraft revenue up, EBITDA up 14%
• Pre‐commitment debate stalling venue investment
• Bytecraft expanding rapidly
For
per
sona
l use
onl
y
Talarius
• First 16 weeks period of FY12:– Achieved year on year turnover growth– Operating revenue down 1.0%
• VAT changes in the UK holding back revenue growth
For
per
sona
l use
onl
y
For
per
sona
l use
onl
y