Aristocrat Leisure : 2021 Half Year Results Announcement

ARISTOCRAT LEISURE LIMITED

ABN 44 002 818 368

2021 HALF YEAR

PROFIT ANNOUNCEMENT

RESULTS TO BE RELEASED

TO THE MARKET

ANNUAL INFORMATION GIVEN TO THE ASX

UNDER LISTING RULE 4.2A

ARISTOCRAT LEISURE LIMITED

BUILDING A PINNACLE OFFICE PARK

85 EPPING ROAD

NORTH RYDE NSW 2113

2021 HALF YEAR

PROFIT ANNOUNCEMENT

CONTENTS

Appendix 4D - Results for announcement to the market

Review of Operations

2021 Half-year Financial Statements

• Statement of profit or loss and other comprehensive income
• Balance sheet
• Statement of changes in equity
• Cash flow statement
• Notes to the financial statements

Directors' Declaration

Auditor's Report to Members

Directors' Report

Auditor's Independence Declaration

Aristocrat Leisure Limited Half-year report

31 March 2021

ARISTOCRAT LEISURE LIMITED

A.B.N. 44 002 818 368

APPENDIX 4D

Half-Year Report

Half-year ended: 31 March 2021

Previous corresponding period: 31 March 2020

Results for announcement to the market

				31 March 2021
Statutory results				$'m
Revenue from ordinary activities	down	1.0%	to	2,229.7
Profit from ordinary activities before tax	up	21.4%	to	461.5
Profit from ordinary activities after tax	down	73.5%	to	346.5
Normalised results1
Operating revenue	down	1.0%	to	2,229.7
Profit before tax	up	19.1%	to	480.9
Profit after tax and before amortisation of acquired intangibles	up	11.8%	to	411.6

Dividends
			Record date for
	Amount per	Franked amount	determining entitlements to
	security	per security	dividends
Current year - 2021
- Interim dividend	15.0c	15.0c	31 May 2021
Previous year - 2020
- Interim dividend	0.0c	0.0c	Not applicable
- Final dividend	10.0c	10.0c	2 December 2020

For further explanation of the above figures please refer to the Review of Operations and market presentations. Other financial information required by the Appendix 4D is contained in the financial statements.

1 Normalised results exclude the impact of certain significant items which are either individually or in aggregate material to Aristocrat and are outside the ordinary course of business or part of the ordinary activities of the business but unusual due to their size and nature. Details are provided in the Review of Operations.

Aristocrat Leisure Limited

Review of Operations

Business Strategy and COVID-19 Recovery

Growth strategy enhances resilience

Aristocrat's strategy aims to deliver high quality, sustainable profit growth by continuously improving the business' product portfolios and operational competitiveness - regardless of market conditions and other external factors.

Aristocrat achieves this by investing in great people, product and capability, building on deep foundations of culture, governance and financial rigour. The Group also has a track record of accelerating progress through accretive M&A, in line with rigorous, established investment criteria.

Our focus on long-term performance means that addressing material Environmental, Social and Governance (ESG) factors is an important part of our approach. Aristocrat further improved its business over the reporting period by making progress across a range of ESG issues including responsible gameplay, diversity and inclusion and employee wellbeing.

As Aristocrat continues to navigate volatility in the global operating environment as a result of COVID- 19 and other factors, the Group's strategy remains highly relevant. In fact, over the six months to 31 March 2021, the business' operational and financial strengths enhanced Aristocrat's resilience and ability to sustain market-leading investment levels behind the strategic drivers of people, product and performance - at a time when many others reduced investment.

Performance reflects investment choices

The fundamental choices Aristocrat made in the context of COVID-19 disruptions are reflected in the share growth and margin expansion achieved across Digital and key Gaming segments in the six months to 31 March 2021, and the double-digit increase in normalised Group NPATA delivered in the same period. In particular, Aristocrat has

continued to invest in its core, differentiating strategic drivers, including:

1. Additional 'People first' employee wellbeing initiatives, flexibility and benefits for

Aristocrat's diverse and growing global team.

1. Further leadership development and capability programs, along with targeted

talent attraction and retention initiatives.

1. Significant expansion in Customer Experience (CX) operations in Gaming, to unlock new value streams by delivering customers and Gaming patrons connected products and

services in line with Aristocrat's growth strategy.

1. Priority focus on building the Digital product

pipeline to sustain long-term growth ahead of category, including through recent tuck-in acquisitions and boosting M&A capability.

1. Continued targeted investment in User

Acquisition (UA) spend to support long-term profitability.

1. Maintenance of Aristocrat's market-leading investment in game design, development, and technology throughout the period - including continued investment in adjacencies to drive

long-term growth, and

1. Further investment in strategic skillsets including in data, cyber security, and technology capabilities.

The Group enters the second half of the 2021 fiscal year with excellent momentum, flexibility and resilience, and a balance sheet that continues to provide full strategic optionality.

Aristocrat's global team is aligned behind a refreshed growth vision, with established momentum and the confidence to continue to invest and accelerate execution in the period ahead.

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Aristocrat Leisure Limited

Review of Operations

Group Performance

Earnings Summary

Key performance indicators for the current period and prior period are set out below.

	Constant			Variance vs. 2020
	currency2			Constant
	Six months to	Six months to	Six months to	currency2	Reported
A$ million	31 March 2021	31 March 2021	31 March 2020	%	%
Normalised results1
Operating revenue	2,493.7	2,229.7	2,251.8	10.7	(1.0)
EBITDA	845.0	750.3	707.6	19.4	6.0
EBITA	692.8	612.6	550.8	25.8	11.2
NPAT	410.8	362.2	305.9	34.3	18.4
NPATA	466.4	411.6	368.1	26.7	11.8
Earnings per share (fully diluted)	64.4c	56.8c	47.9c	34.4	18.6
EPS before amortisation of acquired intangibles (fully diluted)	73.1c	64.5c	57.7c	26.7	11.8
Interim dividend per share	15.0c	15.0c	0.0c	n/a	n/a
Reported results
Revenue	2,493.7	2,229.7	2,251.8	10.7	(1.0)
Profit after tax	392.2	346.5	1,305.2	(70.0)	(73.5)
NPATA	447.8	395.9	1,367.4	(67.3)	(71.0)
Balance sheet and cash flow
Net working capital/revenue3	3.8%	4.1%	6.1%	(2.3)pts	(2.0)pts
Operating cash flow	403.4	358.2	620.0	(34.9)	(42.2)
Operating cash flow normalised4	478.8	425.1	620.0	(22.8)	(31.4)
Closing net debt5	1,590.4	1,330.2	2,250.5	29.3	40.9
Gearing (net debt/consolidated EBITDA5,6)	n/a	1.2x	1.4x	n/a	0.2x

1. Normalised results are statutory profit (before and after tax), excluding the impact of certain significant items detailed on page 9.
2. Results for 6 months to 31 March 2021 are adjusted for translational exchange rates using rates applying in 2020 as referenced in the table on page 13.
3. Revenue based on 12 months to 31 March.
4. Normalised operating cash flow excludes the impact of certain significant items are referenced on page 11.
5. Net debt excludes lease liabilities recognised under AASB 16 from 1 October 2019.
6. Consolidated EBITDA for the Group as defined in Aristocrat's Syndicated Facility Agreement (also referred to as Bank EBITDA).

The information presented in this Review of Operations has not been audited in accordance with the Australian Auditing Standards.

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