FYE Y R e R sul u t l s t March 2011

Transcription

1 FYE 2010 Results March 2011

2 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.

3 Content Highlights 4 Page Business Segments Updates Financial Overview Mr. Steven Lim Tow Boon Chief Operating Officer Ms. Teh Mun Hui Group Finance Director 6 13 Outlook, Targets & Strategies Datuk Chuah Kim Seah, JP Group Managing Director 19

4 Highlights

5 Highlights 4Q 2010 Business Financial Corporate Remaining machines from mobilization plan are to be completed by end 2011 with the concession from PAGCOR. Revenue increased Q-o-Q by 68% contributed mostly by better sales from SSM. EBITDA before Impairment improved Y-o-Y by 32% due to better performance from TSM. RAM placed RGB on negative ratings watch since 17 Dec The ratings watch will be maintained until the next Rating Review scheduled in May 2011.

6 Business Segments Updates

7 SSM: No. of Machines Sold in 2010 Reduced sales due to uncertain political climate in the Philippines, absence of new projects and soft replacement market Country Target machines to be sold FYE 2010 (units) Actual machines sold FYE 2010 (units) Machines sold in 2009 (units) Target vs. Actual (units) 2010 vs 2009 (units) Malaysia 100 *33 70 (67) (37) Philippines (217) (323) Vietnam 130 * (26) 66 Singapore (128) (148) Macau 100 **374 * Others (84) Total 1,250 1,021 1,213 (229) (192) Note : * Inclusive of sale of 38 units of RGBGames machines (2009: 59 units) ** Inclusive of 267 used machines

8 TSM: Concession Venues Closure of outlets No. of Venues No. of Machines placed Country As at Dec 2010 As at Dec 2009 Difference As at Dec 2010 As at Dec 2009 Difference Cambodia ,192 2, Philippines (2) 1,824 2,016 (192) Vietnam 1 3 (2) (96) Macau 5 6 (1) (462) Lao PDR Others - 1 (1) (193) Total (4) 4,659 5,348 (689)

9 TSM: Update on Mobilisation Plan Delayed deployment of affected machines to Status update as at 31 Dec 2010 Yet to be in operations Total machines 1,470 Cambodia Scrapped Sale to third party 1,240

10 TSM: New Concessions in 2010 Units of machines Commencement No. Country Concession Venues deployed Date 1 Cambodia Silver World Casino, Bavet 24 Dec Sokha Vegas Casino, Sihanoukville 60 Dec Mocbai Casino 2, Bavet 38 Dec 2010 Sub-total Cambodia: Macau Greek Mythology 56 Dec 2010 Sub-total Macau: Lao PDR Kings Roman Casino 41 May 2010 Sub-total Lao PDR: 1 41 Total no. of new concession venues: 5 Total no. of machines placed at venues: 219

11 TSM: Cessation of concessions in 2010 No. Country Concession location No. of venue Remark(s) 1 Cambodia Poipet - Princess Crown Casino 1 Merged operations with Genting Crown Sub-total 1 2 Philippines PAGCOR Ronquillo 1 Relocation 3 PAGCOR Heritage 1 Relocation Sub-total 2 4 Vietnam Rex Hotel 1 Temporary closure for upgrading 5 First Hotel 1 Closure due to focus on Rex Hotel Sub-total 2 6 Lao PDR Kings Roman Casino 1 Sub-total 1 7 Macau Lan Kwai Fong Casino 1 Temporary cease due to changes in floor management Cessation due to owner preference for table games and our focus on Greek Mythology Casino 8 L Arc Casino 1 Cessation due to sale of machines to JV partner Sub-total 2 9 Others Ben s Entertainment 1 Sub-total 1 Cessation due to cruise stopped operations arising from competition from IR in Singapore

12 Financial Overview

13 Performance of 2010 Revenue increased Q-o-Q; Q; attributed to higher contribution from SSM 4Q10 RM mil 3Q10 RM mil Q-o-Q % 2010 RM mil 2009 RM mil Y-o-Y % Revenue 62,880 37, , ,202 (6.81) EBITDA* before impairment 6,306 11,907 (47.04) 30,511 23, (Loss) / Profit Before Tax (21,135) (7,426) (184.60) (59,468) (64,685) (8.07) (Loss) / Profit Attributable to Owners of the parent Net (Loss)/Earnings Per Share attributable to owners of the parent (sen) (19,162) (3,341) (473.54) (50,877) (62,032) (17.98) (1.66) (0.29) (472.41) (4.44) (6.71) NTA Per Share (sen) 7 9 (22.22) 7 13 (46.15) * EBITDA = Earnings before interest, tax, depreciation and amortisation

14 Key Ratios Better liquidity 3 months ended 12 months ended 31 Dec Dec Gross profit margin 7.40% 14.70% 3.40% 16.32% Current ratio 62.96% 53.76% 62.96% 53.76% Quick ratio (excluding inventory) 57.25% 48.24% 57.25% 48.24% Gearing ratio borrowings - Gross % % % % - Net % 88.32% % 88.32%

15 Revenue by Business s Segments Reduced contribution from SSM resulted in lower 2010 revenue TSM 5% L&E 44% SSM 22% Better performance of existing outlets Solely from Chateau with full year contribution Soft replacement 60 market Absence of new projects Competition which reduced profit margin Notes: L&E: Others: % 52% 45% 40% RM158 mil RM170 mil 10% 6% SSM TSM L&E Others consist of revenue from companies involved in gaming and leisure activities consist of revenue from manufacturing activities research & development and inter-segment transactions 2% 2%

16 Major Cost Components in 2010 Continued focus on cost management Impairment & Write-offs Depreciation *Transportation 1,363 2,953 8,268 30,314 51,871 71,780 Salary, Allowance & Emoluments Upkeep of Machineries (TSM) Others 1,540 2,321 15,994 17,244 17,498 17, = RM131 mil 2009 = RM134 mil Legal, Professional and Consultancy Fees Finance Costs 4,143 3,259 10,639 9,231 Note: * Included here is the mobilisation costs

17 Capex and Sources of Funding Capex increase as certain new concession 2009 venues especially in Philippines and Macau require new machines to be placed 2010 Acquired 225 machines for TSM concessions 2011 Acquisition of 250 machines for upgrading 160 Capex Incurred For Past 5 Years (RM mil) Pre Sources Internally Internally Internally Internally of funding generated funds Banking facilities generated funds Private placement issuance of mil shares Supplier financing program generated funds Private placement of mil shares Supplier financing program generated funds Full placement of mobilised machines Supplier financing program

18 EBIDTA by Segments EBITDA before Impairment improved y-o-y y by 32% RM ,000 45,889 40,000 30,000 32, = RM mil 2009 = RM mil 20,000 10,000 0 (10,000) (20,000) (608) 5,858 (8,899) (14,451) (932) (6,864) TSM SSM 42% y-o-y arising from: better revenue per machines in existing clubs in the Philippines and Macau lower mobilisationcost effective cost control (110%) y-o-y due to: decrease in sales product mix with low margin provision for sales return of RM1.4 mil

19 Outlook, Targets & Strategies

20 Outlook for /2 A better year ahead Division Outlook Targets Strategies SSM Relatively promising Sale of 1,200 machines inclusive of RGBGames units Focus on replacement market Develop expansion market Promote the RGBGames brand TSM Good as it is an alternative to direct purchase by operators Mobilise the remaining 1,200 machines Upgrade or replace up to 250 machines Finalise 4 concessions in the region with approximately 500 machines Deploy 1,700 machines (including 1,200 mobilised machines) under concession in various PAGCOR arcades and casinos

21 Outlook for /2 A better year ahead Division Outlook Target Strategies L&E L&E Cautious Break-even in 2011 Increasing the number of cash tables (without junket commission) Reduce non-core gaming activities Leasing of floor space to 3rd parties to generate fixed monthly income Others Good Enhance RGBGames games and progressive links Sell more RGBGames Finalise sale of 132 units RGBGames s Manny Pacman Pacquiao Poker machines Install Wide Area Progressive ( WAP ) for RGBGames in selected PAGCOR venues

22 Q & A For information, please contact RGB International Bhd. at Telephone: ir@rgbgames.com