The Rank Group Plc. Interim Results 2001

Transcription

1 The Rank Group Plc Interim Results 2001

2 Alun Cathcart Chairm an

3 Mike Sm ith Chief Executive

4 M anagem ent team D avid Boden Pete Beaudrault PhilClem ent CyrilDrabinsky Peter Pacitti MD Gaming Presidentand CEO Hard Rock Deluxe Presidentand CEO Deluxe Film Worldw ide Presidentand CEO Deluxe Video W orldw ide

5 Key points Operating profitstilmoving ahead Gaming strong Hard Rock improved Deluxe resilient Nearfourfold increase in EPS Cash flow robust Interim dividend increase of5%

6 Ian Dyson Finance Director

7 Summary of results m Continuing businesses Turnover Operating profit Discontinued businesses Associates Interest Profit before tax Earnings per share (14.9) p (13.6) (40.6) p

8 Turnover m Deluxe Hard Rock Gam ing US Holidays Group 2000 reported Adjustm ents Fox Clerm ont trading 27th w eek (36) (6) (18) (36) (18) (6) 2000 adjusted reported Currency im pact (17) (10) 0 (2) (29) 2001 adjusted Underlying change -1% -1% 0% -16% -1%

9 Operating profit m Change Gam ing % Hard Rock % Deluxe (3% ) US Holidays (18% ) Centraland other (3.0) (6.3) 52% Operating profit* % * Continuing businesses

10 Gam ing m Turnover Mecca Bingo GrosvenorCasinos RLM S Operating profit Mecca Bingo GrosvenorCasinos RLM S

11 GrosvenorCasinos m Turnover London UK Provinces Belgium Operating profit London UK Provinces Belgium

12 Hard Rock m Turnover O w ned cafes Franchise and otherincom e Operating profit O w ned cafes Franchise and otherincom e -Cafes -Hotels Advertising and prom otion Overheads Restructuring (5.3) (1.8) (3.0) (6.6)

13 Hard Rock m Reported profit Restructuring costs Territory franchise sales 27th w eek Currency im pact Adjusted profit (3.3) (1.1) (2.0)

14 Hard Rock m Reported profit Restructuring costs Territory franchise sales 27th w eek Currency im pact Adjusted profit (3.3) (1.1) (2.0) Grow th 2.2 GROW TH Cafes Franchise -Cafes -Hotels O verheads m (0.7)

15 Hard Rock like forlike sales % First half Q3* Year to date Food and Beverage M erchandise Total % USA Europe First half Q3* Year to date * 9 weeks to date

16 Deluxe m Turnover Film Processing Video Duplication DVD Replication Operating profit Film Processing Video Duplication DVD Replication (2.2) (2.1) 23.5

17 Deluxe Video m Turnover US Europe Operating profit US Europe (3.3) (0.5) 2.9

18 Video US -restructuring benefit m 2000 reported Fox impact 2000 proforma 2001 actual Benefit Turnover (36.0) Profit 3.4 (7.3) (3.9)

19 Interest 25.7m reduction Average rate of7.5% ( % ) gross debtwas 98% fixed atrate of7.5% Second halfinterestrate wilreduce interestrate sw aps refinancing of 65m fixed debt

20 Tax Effective rate reduced to 19.5% ( % ) FRS 19 implem entation in 2002 tax rate natura ly tends tow ards statutory rates recognition ofdeferred tax asset no impacton cash flow

21 Exceptionalitem s m Deluxe Video Europe restructuring Sale and leaseback of A rkansas Other disposals 2001 (6.9) 14.4 (1.0) 6.5

22 Cash flow m Operating activities Capex Sale of fixed assets Operating cash flow Interest,tax and dividends Distributions from associates Free cash flow Acquisitions / disposals Share buy back (51.7) (85.0) (2.2) (82.3) (122.6) 1.2 (12.1) (119.8) Net debt ,048.7

23 Capitalexpenditure m estim ate Gam ing Hard Rock Deluxe Discontinued and other

24 Mike Sm ith Chief Executive

25 The trading environm ent Econom ic dow nturn little discernible im pact Being vigilant costreduction strengthened marketing

26 M ecca Bingo Anotherrecord result Strong com petitive perform ance Marketing plans Acquisitions and developm ent

27 GrosvenorCasinos M ixed result Continued estate enhancem ent Hard Rock casino developm ent W elpositioned for Gambling Review recom m endations InternetGaming laterthis year

28 The Gam bling Review Very enthusiastic A realopportunity forgrow th Significantprofitgains Bingo /casino flexibility Investm entrequirem entcontainable Strong com petitive position Timing? New Legislation?

29 Hard Rock M ore than held ourow n! Trading environm ent Localmarketing Developm ent Brand endorsem ent hotels casinos

30 Deluxe Film footage stilincreasing new labs Video restructuring success high service levels DVD m arketrem ains difficult

31 Conclusion Gaming Hard Rock Deluxe -strong contributor Capacity to act } Grow th + developm ent