THE STAR ENTERTAINMENT GROUP
PRESENTATION AT MORGANS CONFERENCE
WEDNESDAY
9 OCTOBER 2019
THE STAR ENTERTAINMENT GROUP
THE STAR ENTERTAINMENT GROUP LIMITED (ASX: SGR)
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 The Star
Entertainment Group Limited's financial reports and other disclosures made via the Australian Securities Exchange - The Star Entertainment Group results are reported under International Financial Reporting Standards (IFRS). This presentation may include certain non-IFRS measures including normalised results, which are used internally by management to assess the performance of the business
- Non-IFRSmeasures have not been subject to audit or review
- Normalised results reflect the underlying performance of the business as they remove the inherent win rate volatility of the International VIP Rebate business. Until FY2018, normalised results were adjusted using an average rate of 1.35% on actual turnover and taxes. From 1H FY2019 onwards, normalised results are adjusted using an average win rate of 1.35% on actual turnover, taxes and revenue share commissions
- Normalised EBIT and Normalised EBITDA are calculated based on normalised gross revenue, commissions and normalised taxes. Significant items are excluded from the normalised results
- Queensland results referred to in this presentation relate to The Star Gold Coast and Treasury Brisbane segments as reported in the Financial Report
- The presentation of net revenue after player rebates and commissions also includes the restatement of FY2018 results for comparative purposes following the adoption of AASB 15 from 1 July 2018. Complimentary revenue is included within domestic gaming revenue
DISCLAIMER
- This presentation is prepared for information purposes only and does not take into consideration any individual investor's circumstances. The Star Entertainment Group recommends investors make their own assessments and seek independent professional advice before making investment decisions
- This presentation may include forward looking statements and references which, by their very nature, involve inherent risks and uncertainties. These risks and uncertainties may be matters beyond The Star Entertainment Group's control and could cause actual results to vary (including materially) from those predicted. Forward looking statements are not guarantees of future performance. Past performance information in this presentation is provided for illustration purposes only. It is not indicative of future performance and should not be relied upon as such
- This presentation has been prepared by The Star Entertainment Group (unless otherwise indicated). Information may be reproduced provided it is reproduced accurately and not in a misleading context. Where the material is being published or issued to others, the sources and copyright status should be acknowledged. Some information included in this presentation has been provided by third parties with their consent. The Star Entertainment Group does not accept any responsibility for the accuracy or completeness of that information
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INTRODUCTION
GROWTH ASSETS PORTFOLIO
Today | Sydney and Gold Coast - recently upgraded, expanded | |||
3 properties | 1,389 | 4,783 | Unlimited | |
Sydney, GC, Brisbane | Premium Hotel Keys | Slots cap | Tables and MTGMs |
- Sheraton Grand Mirage Gold Coast (50% share)
- GCCEC (management rights)
Projects Underway | Queen's Wharf Brisbane | The Star | The Star Sydney |
Gold Coast | |||
Concept image only
- New integrated resort
Concept image only | Concept image only | |||
♦ Sovereign Resorts | ||||
JV mixed use towers*: | ||||
♦ | 1st under construction | |||
♦ | 2nd in presales |
Capital Efficient Approach | ♦ Partners with complementary skills, assets |
♦ Mixed use developments | |
Customers | Domestic focus |
International diversification | |
* Master plan for up to 5 towers, subject to market and regulatory conditions and all approvals |
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EARNINGS
DOMESTIC FOCUS, LONG-TERM GROWTH
FY2019 Earnings Mix
- 88% of earnings is domestic (FY2019 normalised EBITDA)
12%
88%
Domestic ($491m) International VIP ($66m)
Long-term Domestic Growth
Domestic Revenue | |
2,000 | 1,917 |
1,859 | Total 5.1% CAGR | ||
1,7521,783 | |||
Slots 4.5% CAGR | |||
1,657 | |||
Tables 6.8% CAGR | |||
1,492 | Non-Gaming 1.6% | ||
CAGR |
1,000
FY14 FY15 FY16 FY17 FY18 FY19
Domestic EBITDA
500 | 491 | |
468 | 460 | 466 |
417 | 6.8% CAGR | |
354 |
250
FY14 FY15 FY16 FY17 FY18 FY19
Diversifying VIP
-
12% of earnings (FY2019
EBITDA) - High ROIC business
- Continued shift to higher margin International Premium Mass
Group EBITDA | ||||||||||
600 | 102 | 66 | ||||||||
77 | 83 | 40 | ||||||||
41 | ||||||||||
354 | 417 | 468 | 460 | 466 | 491 | |||||
0 | ||||||||||
FY14 | FY15 | FY16 | FY17 | FY18 | FY19 | |||||
Domestic | International VIP | |||||||||
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STRATEGY
FOCUS ON RETURNS
Large Attractive Markets | $24bn | $42bn |
Domestic Gambling | Domestic F&B | |
Market | Market | |
Growth Assets | Assets |
- Sydney and Gold Coast recently upgraded, expanded
- Valuable long-term licences
- Properties in desirable locations
- Large catchments (locals, tourism)
$44bn | $35bn |
Inbound Tourism | International VIP |
Growth Projects
- Sydney - Sovereign Resorts (FY2020)
- Gold Coast - Masterplan
- Brisbane - Queen's Wharf
- Enhanced gaming and traffic drivers
- Further growth identified
Competitive Capabilities | Domestic | |
♦ Gaming and Marketing leadership | ||
♦ | Loyalty | |
♦ | Hospitality |
Inbound/ Tourism
- Asian partners
- Third party hotel brands
- Hospitality
Execution Focus: Operational, Development, Commissioning
Complementary Partners | ♦ Development | ♦ | Hospitality |
♦ Retail/ distribution | ♦ | Capital | |
Source: Australian Gaming Statistics, Eating Out in Australia, Tourism Research Australia, broker reports |
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Star Entertainment Group Limited published this content on 09 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 October 2019 00:30:03 UTC