AQUIS ENTERTAINMENT LIMITED 2016 FULL YEAR RESULTS PRESENTATION 31 - - PowerPoint PPT Presentation

AQUIS ENTERTAINMENT LIMITED 2016 FULL YEAR RESULTS PRESENTATION 31 DECEMBER 2016

28 FEBRUARY 2017

HIGHLIGHTS A VISION COMING TO LIFE

SIGNIFICANT ADVANCEMENTS ON KEY OPERATING VARIABLES CAPABLE TEAM

• Continued improvements in operational

performance at Casino Canberra property

• Enhanced customer service standards, with

markedly improved guest satisfaction scores

• Key business effjciency initiatives successfully

implemented, resulting in operational expense savings

• Signifjcant growth in volume of high limit and

VIP program play

• Targeted marketing programs attracted better

quality players, resulting in heightened gaming activity levels per player

• Restructured leadership team to strengthen
• perational capability
• Jessica Mellor appointed Chief

Executive Offjcer

• Additional senior hires in gaming,

VIP marketing, business development, and cash operations

• Investing in the growth and development
• f our employees

PROGRESS ON STRATEGIC GROWTH INITIATIVES

• Casino Canberra refurbishment and refreshment

project delivered on time and on budget with improved results realised in the second half

• New VIP gaming facilities, including private VIP

gaming salon and private dining room, solidify the foundation upon which to build high limit and VIP marketing

• A complete overhaul of fjnishings and equipment,

from arrival to the gaming fmoor, provide an enhanced customer experience that appeals to the masses

• Lodgement and assessment of Casino Canberra

redevelopment proposal for an integrated entertainment precinct complete

AQUIS ENTERTAINMENT LIMITED 2016 FULL YEAR RESULTS PRESENTATION

OVERVIEW KEY DRIVERS – CASINO CANBERRA

ACTUAL GROSS GAMING REVENUE

21% 29.2%

VERSUS PCP VERSUS PCP VERSUS PCP VERSUS PCP VERSUS PCP

NON-GAMING REVENUE

172%

LOYALTY MEMBERSHIP

32.9% 7.4%

SPEND PER VISITOR VISITATION

AQUIS ENTERTAINMENT LIMITED 2016 FULL YEAR RESULTS PRESENTATION

OVERVIEW KEY DRIVERS – CASINO CANBERRA

• Good revenue growth across all lines of business, despite disruption from refurbishment - Gaming +21%, Non-gaming +29.2%
• Domestic revenue growth driven by increased spend per visitor (+32.9%) and increased visitation following refurbishment (+7.4%)
• Growth across loyalty base members (+172% in new sign-ups)
• Operating costs of $24.7 million, up 20.6% as a result of increased investments in people, loyalty and marketing

30 25 20 15 10 5 ACTUAL GROSS GAMING REVENUE ($M) VISITATION FY2015 FY2014 2H2014 1H2015 1H2016 2H2015 2H2016 FY2016

19.96 15.88 90,631 101,868 111,534 83,524 119,830 24.16

130,000 120,000 110,000 100,000 90,000 80,000 70,000

Aquis Acquisition

Aquis Acquisition Refurbishment works commence Refurbished property reopens

AQUIS ENTERTAINMENT LIMITED 2016 FULL YEAR RESULTS PRESENTATION

CASINO CANBERRA RESULTS

ACTUAL $M GROSS GAMING REVENUE 24.2 NON-GAMING REVENUE 2.5 GAMING AND RELATED TAXES (4.7) OPERATING EXPENSES (24.7) EBITDA (2.8) DEPRECIATION AND AMORTISATION (1.1) EBIT (3.9)

AQUIS ENTERTAINMENT LIMITED 2016 FULL YEAR RESULTS PRESENTATION

AQUIS ENTERTAINMENT LIMITED GROUP RESULTS

AQUIS ENTERTAINMENT LIMITED 2016 FULL YEAR RESULTS PRESENTATION

OVERVIEW FY2016 RESULTS

• Actual revenue and other income for FY2016 of $24.2 million, 21.7%

higher than the result for the previous corresponding period (pcp), despite restricted trading conditions in 1H.

• Actual EBITDA loss of $5.9 million, down 4.2% on pcp, attributable

to higher revenue associated with the refurbishment of Casino Canberra in 2H.

• Statutory NPAT loss of $7.7 million, up 27.6% on pcp resulting

from higher interest and depreciation costs resulting from the refurbishment.

AQUIS ENTERTAINMENT LIMITED 2016 FULL YEAR RESULTS PRESENTATION

AQUIS ENTERTAINMENT LIMITED GROUP RESULT

ACTUAL $M GROUP EBITDA (5.9) DEPRECIATION AND AMORTISATION (1.1) GROUP EBIT (7.1) INTEREST (1.7) INCOME TAX CREDIT 1.1 NET LOSS (7.7)

( ) = Loss.

Results impacted by refurbishment works carried out during 1H 2016, which saw:

• operations moved to temporary facility consisting of only 16 gaming tables
• minimal food and beverage service
• reduced levels of visitation due to smaller facility

AQUIS ENTERTAINMENT LIMITED 2016 FULL YEAR RESULTS PRESENTATION

AQUIS ENTERTAINMENT’S PROPOSAL

• Aquis Entertainment has proposed the development of a world-class integrated

entertainment precinct in the heart of Canberra’s CBD.

• The integrated resort will consist of luxury accommodation, featuring six-star villas

and a new fjve-star hotel, world-class restaurants, bars, retail boutiques and entertainment options, including internationally renowned brands, as well as up scaled VIP and mass gaming facilities.

STATUS OF PROPOSAL

• In May 2016, the ACT Government announced that Aquis Entertainment’s proposal

for the redevelopment of Casino Canberra and the surrounding precinct would progress to stage 2 of the Unsolicited Proposals assessment process

• Aquis Entertainment subsequently lodged its detailed business case with the ACT

Government in June 2016

• The ACT Government’s assessment panel, Invest Canberra, has advised that

assessment is complete and recommendation will be made to Cabinet imminently.

CASINO CANBERRA REDEVELOPMENT PROPOSAL

AQUIS ENTERTAINMENT LIMITED 2016 FULL YEAR RESULTS PRESENTATION

TRANSFORMATIONAL LEADERSHIP

Jessica Mellor is a senior business executive with vast experience in project management; spanning major infrastructure projects, residential and commercial development, and funds management. Jessica joined the greater Aquis group in 2013, when she played a key leadership role in the groups’ ambitious Yorkeys Knob project in Cairns, and following the acquisition of Casino Canberra, was appointed to the board as Executive Director, Strategy and Project Development with responsibility for new projects, strategy and growth. During this time, Jessica demonstrated her leadership skills and capability in delivering on key strategic priorities, having led the acquisition and successful refurbishment of the Casino Canberra property, and spearheading

• ur exciting $300M redevelopment plan

for Canberra. Jessica was appointed Chief Executive Offjcer

• n 3 October 2016 and has already made

her mark on the company. In her fjrst three month’s as CEO, Jessica has implemented a number of new revenue generating initiatives, and focused on building a strong management team with signifjcant experience in the gaming sector, and a solid VIP growth strategy to boost revenue into 2017 and beyond.

AQUIS ENTERTAINMENT LIMITED 2016 FULL YEAR RESULTS PRESENTATION