In association with Manny Pacquioa WBO World Welterweight Champion
1Q 2 1Q 2010 UPD 010 UPDATES TES May 2010 May 2010 In - - PowerPoint PPT Presentation
1Q 2 1Q 2010 UPD 010 UPDATES TES May 2010 May 2010 In - - PowerPoint PPT Presentation
1Q 2 1Q 2010 UPD 010 UPDATES TES May 2010 May 2010 In association with Manny Pacquioa WBO World Welterweight Champion SAFE SAF E HARB HARBOUR OUR ST STATEMENT TEMENT These presentations contain forward-looking statements (including,
These presentations contain forward-looking statements (including, without limitation, statements regarding the enhancement of shareholder value, and information and future guidance on our goals, priorities, orders, revenues, demand, growth opportunities, customer service and innovation plans, new product introductions, financial condition, earnings, liquidity, capital structure, operating performance, cost structure, cyclicality, the continued strengths and expected growth of the markets we sell into,
- perations, operating earnings, balance sheet models and our ability to be free cash flow positive under
any normal economic environment) that involve risks and uncertainties that could cause results of Dreamgate to differ materially from management's current expectations. Factors that could cause demand to be different from Dreamgate‟s expectations include customer acceptance of Dreamgate and competitors‟ products; changes in customer order patterns, including order cancellations; changes in the level of inventory at customers; and changes in business and economic conditions and the timing of award exercises by employees. Dreamgate‟s results could be impacted by unexpected economic, social, political and physical/infrastructure conditions in the countries in which Dreamgate, its customers
- r its suppliers operate, including military conflict and other security risks, natural disasters,
infrastructure disruptions, health concerns and fluctuations in currency exchange rates.
SAF SAFE E HARB HARBOUR OUR ST STATEMENT TEMENT
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CONTE CONTENTS NTS
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Page
Summar Summary 4 Financial Financial Review view 6 Se Segments gments Upda Update te 11 11 Act Action ion Plans & Plans & Str Strate tegies gies 16 16 Cor Corpor porate te Upda Updates tes 19 19
Summar Summary
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SUMMAR SUMMARY
Financial TSM
- EBITDA before impairment : Q-o-Q improved by 33%, compared to 4Q09
improved by 45%
- Improvement supported by efforts to improve yield per machine and reducing
- perating expenses showing positive results
SSM
- Results affected by the deferment in orders due to general election in
Philippines, a short term impact. L&E
- High winnings by junket players for the period affected performance of Chateau
Business Mobilization Plan
- Limited movement as sites are not ready and deferment due to general election
in Philippines Opening of new site:
- Orient Pearl in Kartini Hotel, Cavite, Philippines, 118 machines
Corporate Name change to RGB International Bhd. to be effected in June 2010
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Financ Financial ial Review view
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1Q10 RM mil 4Q09 RM mil % Change 1Q09 RM mil % Change Commentary Revenue 31.21 65.38 (52) 35.57 (12)
- During the period under review,
casino operators in Philippines deferred plans for their projects/capital expenditure due to the general election (which was held in May 2010).
- Expects mobilization plans and
more sales of machines to take place in 2H10.
- Higher depreciation cost
included those machines not in
- perations, hence no
impairment provided for the quarter
- High winnings by junket
players affected Chateau EBITDA* before impairment 1.34 8.13 (83) 14.65 (91) (Loss) / Profit Before Tax (20.27) (37.84) (46) (2.35) (760) (Loss) / Profit Attributable to Owners of the parent (17.72) (36.90) (52) (2.20) (705) Net (Loss)/Earnings Per Share attributable to
- wners of the parent
(sen (1.56) (3.64) (57) (0.25) (524) NTA Per Share (sen) 11 14 (21) 21 (47) Note : * Earnings before interest, taxation, depreciation & amortisation
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SN SNAPS APSHO HOT
Factors Affecting Performance For Period : Casinos Deferment Plans, Higher Depreciation Cost, Low Winnings Per Table
KEY KEY RA RATIOS TIOS
3 months ended 31.3.2010 31.12.2009 GP margin (%)
- 16
15 Current Ratio (times) 0.54 0.59 Quick Ratio (Excluding inventory) (times) 0.47 0.55 Gearing Ratio Borrowings
- Gross
- Net
(times) (times) 1.06 0.86 0.81 0.73
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64% 24% 10% 2% 35% 56% 8% 1% 1Q10 RM31 mil
GR GROUP OUP REV REVENUE ENUE BY BY SEGME SEGMENTS NTS
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SSM 73%
- Decreased in machine sales due to seasonal fluctuations
TSM 15%
- Improved income from outlets opened in 2009 which stared
to generate positive cash flow and revenues L&E 67%
- Solely from Chateau from L&E, started operations in Aug 09
- High winnings from junket players
Notes: L&E : Revenue from companies involved in gaming and leisure activities Others : Consist of revenue from manufacturing activities, R&D and inter-segment transactions SSM TSM L&E Others
4Q09 RM65 mil
12% 70% 6% 3% 1% 1% 7% 4Q09 RM41.9 mil
MAJO MAJOR R OPE OPERA RATING TING EXP EXPENS ENSES
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30% 17% 6% 3% 2% 42%
Salary, allowances & emoluments Impairments and write-offs Finance Cost Legal, professional and consultancy Upkeep of machineries (TSM) Transportation Others
1Q10 RM14.8 mil
There were no impairment for machines not in operations for 1Q10 as depreciation were provided for The increase in “Others” was effected by the increase in junket expenses
Se Segment gments s Upda Update te
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SSM SSM
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Country Target
- No. of machines
to be sold FY2010
- No. of
machines sold in 1Q 10 Commentary Malaysia 100
- Secured Orders in 2Q10 : 100 units
Philippines, Singapore
- More orders expected in 2H10
Philippines 630 24 Vietnam 130 29 Macau 100 44 * Others 290 5 1,250 102
* Others – Singapore, India, Cambodia, Korea
11 18 2 6 2
Cambodia Philippines Vietnam Macau Lao PDR
TSM TSM - CONC CONCESSION ESSION VENUE VENUES
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Concession Venues and Machines Placed By Geographical Locations (as at Mar 2010)
Note:
- Vietnam:
2 sites currently in operation. 1 site under renovation.
Machines : 5,198 Venues : 39
1,976 units 871 units 152 units 2,040 units 159 units
TSM TSM – MOBILIZA MOBILIZATION TION PLA PLAN
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Update on Machines Mobilization (as at Mar 2010)
As at Dec 2009 - Units at warehouse 1,470 Commentary Sites: Mobilized Plans for mobilization were deferred arising from the deferment by casino
- perators
in Philippines due to the pending general elections (which were eventually held in May 2010) and the delay in the
- pening of site in Laos.
Foresee the placement of machines to take place in 2H10. Cambodia
- Philippines
24 Laos *100 Macau Cruise Ship Spare parts (if any) Sub-total of mobilized units for 1Q10 124 Units to be Mobilized by 2010 1,346
Note : * 100 units are owned by 3rd Party but managed by us
TSM TSM - UPCOMING UPCOMING VENUE VENUES S
Country Venues (As at Mar 2010) Upcoming Venues (By End 2010)
- No. of Sites
- No. of
Machines
- No. of Sites
- No. of
Machines Philippines 18 2,040 10 2,000 Macau 6 871
- Cambodia
11 1,976
- Laos
2 159 1 500 Vietnam 2 152
- Others
- Total
39 5,198 11 2,500
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Action Plans Action Plans & & Str Strate tegies gies
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Expects to open additional 11 new concession venues with approximately 2,500 machines to be placed by end 2010 Out of 2,500 machines, 1,400 units will be from the mobilization plan Remaining will be new machines to be supplied under a proposed profit sharing scheme Continue to focus on yield per machine improvement for all existing venues Non-performing venues will be closed
TSM SSM
Expects units of machines to be sold this year to match quantity achieved in 2009 Launching of RGBGames‟ „Manny Pacman‟ and „Wang Wang Wang‟ to take place in 2H2010 Expect positive sales contribution in 2010 from our in–house table games layout with the new printing machine which will improve the quality and productivity
ACT CTION ION PL PLANS ANS & & ST STRA RATE TEGIES GIES
CONTINUE TO STRENGTHEN CORE BUSINESS
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Strengthened marketing strategy to capture wider segment of mass market Has shown positive signs in relation to increased number of players and revenue in 2Q10.
L&E
ACT CTION ION PL PLANS ANS & & ST STRA RATE TEGIES GIES (con’t)
CONTINUE TO STRENGTHEN CORE BUSINESS
COR CORPOR PORATE TE UPD UPDATE TES
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Rationale: The brandname „RGB‟ has been in existence for last 25 years Well established and synonymous in the Asian gaming industry Significantly strengthen the Group‟s corporate branding and identity
CHANGE OF NAME
RGB INTERNATIONAL BHD.
June e 2010
FOR ILLUSTRATION PURPOSE ONLY
In association with Manny Pacquioa WBO World Welterweight Champion
THANK YOU
Investor Relations Contact Information
Lim Poh Poh Email : pplim@rgbgames.com Tel : +603 - 2026 0228 Elena Beh Email : elenabeh@rgbgames.com Tel : +604 - 263 1111