RGB YE2011 Corporate Review RGB YE2011 Corporate Review 7 th March - PowerPoint PPT Presentation

RGB YE2011 Corporate Review RGB YE2011 Corporate Review 7 th March 2012

Safe Harbor Statement Safe Harbor Statement This presentation contains 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, operations, 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 RGB to differ materially from management's current expectations. Factors that could cause demand to be different from RGB’s expectations include customer acceptance of RGB 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. RGB’s results could be impacted by unexpected economic, social, political and physical/infrastructure conditions in the countries in which RGB, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates. 2

Content Content Page Highlights 4 Financial Overview 6 Business Segments Updates 9 Outlook, Targets & Strategies 18 3

Highlights Highlights 4

Highlights of FY2011 Highlights of FY2011 Business  The Group manage to achieve favourable EBITDA in FY2011 (RM40.7 million) through improvement in average machines performance, effective cost cutting exercise and closure of non performing outlets  The Group is confident to achieve even better EBITDA in FY2012 with the expected installation of approximately RM45 million new machines at various regions, commencement of new concessions as well as increase in SSM sales Financial  Improvement of Operating Cash Flow from RM3.1 million (FY2010) to RM54.6 million (FY2011)  Trade Receivables reduced by RM28.6 million (37%) in FY2011 Corporate  Proposed disposal of 32% equity interest in Chateau to Diplomat Technology Co. Ltd  Repayment of RM28.4 million CP/MTN and Term Loans in FY2011  Proposed fund raising exercise to retire the CP/MTN 5

Financial Overview Financial Overview 6

FY2011 Performance FY2011 Performance Improved profitability FY 2011 FY 2010 Difference RM ‘000 RM ‘000 % Revenue 118,211 158,614 - 25.5% EBITDA * 40,719 30,512 + 33.5% (32,904) (59,469) + 44.7% Loss Before Tax (30,849) (50,884) + 39.4% Loss Attributable to Owners of the Parent Basic Net Loss Per Share (sen) (2.68) (4.44) + 39.6% Net Assets Per Share (sen) 5 7 - 28.6% * EBITDA = Earnings before interest, tax, depreciation, amortization, impairment of property, plant & equipment, intangible assets and investments 7

Key Ratios Key Ratios Better profitability and liquidity 12 months ended 31 Dec 2011 31 Dec 2010 Gross profit margin (%) 19% 3% Current ratio (times) 1.10 0.62 0.97 0.56 Quick ratio (excluding inventory) (times) Gearing ratio borrowings (times) - Gross 1.64 1.38 - Net 1.23 1.21 8

Business Business Segments Updates Segments Updates 9

Revenue by Business Segments Revenue by Business Segments Year-on-Year (“YoY”) Group Revenue reduced by RM40.4 million (25%) as compared to FY2010 is mainly due to the following :- • SSM One-off sales of 267 used RM'mil FY2011 - RM118.2 mil YoY 35% machines to ex-concession Partner 80.0 FY2010 - RM158.6 mil 70.7 - RM24.1mil at RM11.2 million in FY2010 69.2 • 70.0 Sales of 270 units of new machines 63.0 at a service fee of RM0.42 million 60.0 in FY2011 • However, the revenue drop was 45.1 50.0 offset by RM7.9 million increase in sales of machines in Malaysia & 40.0 Vietnam in FY2011 • 30.0 TSM Additional 5% management fees YoY 11% imposed by PAGCOR resulting in 15.3 20.0 - RM7.7mil approximately 7.3% drop in Philippines income 6.9 10.0 • 3.2 3.4 Closure of non performing outlets • Slight competition in Cambodia - regions SSM TSM L&E OTHERS L&E Notes: • YoY 55% Cessation of operation in Chateau L&E: consist of revenue from companies involved in gaming and leisure activities - RM8.5mil Others: consist of revenue from manufacturing activities research & development and inter-segment transactions 10

SSM FY2011 Revenue Review SSM FY2011 Revenue Review FY2011 SSM revenue decreased by 35% (RM24.1 mil) as compared to FY2010 mainly due to : FY2011 SSM revenue decreased by 35% (RM24.1 mil) as compared to FY2010 mainly due to :  One-off sales of 267 used machines at RM11.2 mil to ex-concession Partner upon cessation of outlet in FY2010  One-off sales of 267 used machines at RM11.2 mil to ex-concession Partner upon cessation of outlet in FY2010  Sales of 270 unit of machines for RM0.42 million under service fee arrangement with manufacturers in FY2011  Sales of 270 unit of machines for RM0.42 million under service fee arrangement with manufacturers in FY2011 * Actual Machines * Actual Machines Difference Sold in FY 2011 Sold in FY 2010 Units RM’000 Units RM’000 % Cambodia - 1,260 16 1,693 -25.5% 103 # Macau 3,515 107 12,131 - 71.0% Malaysia 67 6,683 20 3,684 + 81.4% 486 # Philippines 20,540 413 28,960 - 29.1% Singapore 30 1,972 72 4,156 - 52.6% Vietnam 124 10,732 75 5,836 + 83.9% Others - 413 9 1,526 - 72.9% Total 810 45,115 712 57,986 - 22.2% One-off sales of 267 used machines to Partner upon - - 267 11,200 -100.0% cessation of outlet Grand Total 810 45,115 979 69,186 - 34.8% * Included in SSM sales are revenue from slot machines and other casino related equipments # Included in SSM Sales are selling of 30 machines (Macau) and 240 machines (Philippines ) via service fees arrangement with manufacturer 11

TSM FY2011 Revenue Review TSM FY2011 Revenue Review 10.9% drop in FY2011 TSM revenue as compared to FY2010 is mainly due to : 10.9% drop in FY2011 TSM revenue as compared to FY2010 is mainly due to :   Additional 5% Management Fees imposed by PAGCOR in FY2011 resulting in approximately 7.3% drop in Additional 5% Management Fees imposed by PAGCOR in FY2011 resulting in approximately 7.3% drop in Revenue Revenue   Closure of outlets in Vietnam (1), Laos (1), Macau (2), Philippines (2) and Singapore (1) Closure of outlets in Vietnam (1), Laos (1), Macau (2), Philippines (2) and Singapore (1)   Slight competition in Cambodia Slight competition in Cambodia   Competition at 1 of the outlets in Laos where upgrading of machines only took place in late 2011 Competition at 1 of the outlets in Laos where upgrading of machines only took place in late 2011 However, revenue drop in the above regions have been offset by 48% revenue increment in Macau However, revenue drop in the above regions have been offset by 48% revenue increment in Macau No. of Machines placed Revenue (RM’000) As at Dec As at Dec 2011 (37 2010 (36 Difference As at Dec As at Dec Difference Country Outlets) Outlets) Units 2011 2010 % Cambodia 2,475 2,192 + 283 27,060 29,641 - 8.7% Philippines 2,011 1,824 + 187 26,951 29,061 - 7.3% Vietnam - 58 -58 152 346 - 56.1% Macau 396 426 -30 5,285 3,569 + 48.1% Laos 185 159 + 26 3,198 5,497 - 41.8% Singapore - - - - 349 -100% Others - - - 373 2,258 -83.5% Total 5,067 4,659 + 408 63,019 70,721 -10.9% 12

TSM: New Concessions in FY 2011 TSM: New Concessions in FY 2011 Units of YTD EBITDA Commencem No. Country Concession Venues machines Generated ent Date deployed (RM’000) 28 th Jan 2011 1 Philippines PAGCOR Club Carmona 12 (3) 11 th Mar 2011 2 Cebu Parkmall Satilie Casino 84 505 29 th Jun 2011 3 Widus Casino 38 646 18 th Nov 2011 4 Crown Regency Casino 12 (11) Sub-total Philippines : 4 146 1,137 5 th Feb 2011 5 Cambodia Le Macau Casino 39 43 Sub-total Cambodia : 1 39 43 Grand Total 185 1,180 13

TSM: Cessation of Non TSM: Cessation of Non-Performance Performance Concessions in FY2011 Concessions in FY2011 YTD Date of EBITDA No Country Concession location Remarks Cessation Impact (RM’000) 15 th Mar 2011 1 Cambodia Silver World Casino (8) Closure of Casino 25 th Feb 2011 2 Macau Golden Dragon Casino (193) Unprofitable site. All machines relocate to Greek Mythology Casino (new concession site) 2 nd Apr 2011 3 Vietnam Prince Club 26 All machines under concession sold to JV Partner 9 th Nov 2011 4 Philippines Carmona (3) Closure due to non performing of outlet Grand Total (178) 14