RGB 1H2014 Corporate Review. 3 rd September 2014

Transcription

1 RGB 1H2014 Corporate Review 3 rd September 2014

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. 2

3 Content Page Financial Overview 4 Business Segment Updates 7 Outlook, Targets & Strategies 12 Product Distributorship 15 3

4 Financial Overview 4

5 1H2014 Financial Overview Business The Group achieved 49% (RM31.8mil) and 144% (RM5.9mil) growth in Revenue and PBT respectively in 1H2014 as compared to 1H2013 as a result of continuous business process reorganization and restructuring over the last few years The Group is confident to breeze through and achieve better results in FY2014 with sales of more gaming machines and continuous improvement of TSM machines yield per machine across all regions Financial Improvement in 1H2014 Revenue (+49%), EBITDA (+15%) and PBT (+144%) as compared to 1H2013 is due to: Sales of different SSM product mix and of higher value in the region Improved TSM performance in certain concessions RM2.5mil lesser machine depreciation RM3.5mil more unrealized gain in foreign exchange as compared to 1H2013 due to strengthening of US Dollar against local currency where RGB operates Corporate Group net gearing ratio improved from 0.70 to 0.46 in 1H2014 RM9.3mil repayment of Commercial Papers ( CP ) (consist of RM6.7mil principal and RM2.6mil interest) in 1H2014 As at 30 June 2014, outstanding CP and MTN is RM46.6mil (10% interest pa) and RM10.0mil (5% interest pa) respectively USD2.0mil new Term Loan with a lower cost of finance (approximately 3.2%pa) was drawdown to finance a new concession in Philippines On 25 Aug 2014, the Company has offered mil RGB shares under ESOS to eligible employees at an exercise price of RM

6 1H2014 Financial Overview 1H2014 (6 mths) RM 000 1H2013 (6 mths) RM 000 Change % YE2013 (12 mths) RM 000 Revenue 96,881 65, % 139,635 EBITDA* 28,637 25, % 49,030 Operating Cash Flow 19,386 20,295-4% 48,090 Profit Before Tax 9,954 4, % 6,530 Foreign Exchange Gain/(Loss) 1,093 (2,107) + 152% (3,753) Shareholders Equity 80,059 69, % 74,962 Earnings Per Share (sen) % 0.58 Net Asset Per Share (sen) % 6 Net Gearing Ratio % 0.53 * EBITDA = Earnings before interest, tax, depreciation and amortization 6

7 Business Segment Updates 7

8 1H2014 Segmental Revenue 1H2014 Group Revenue is RM31.8mil (49%) higher than 1H2013. This is mainly due to increase in SSM sales and TSM performance across all regions, especially in 2Q2014 Notes: Others: RM'mil H2012 1H2013 1H2014 SSM TSM Others Group Revenue consist of revenue from leasing of Chateau Building, manufacturing activities, research & development activities and inter-segment transaction SSM + RM 33.9 mil (+ 123%) TSM - RM2.0 mil ( - 5%) Increase in sales of machines and gaming products (different product mix and of higher value) in all regions, especially supplying gaming machines to a new opening casino in Philippines In 1H2013, 424 EGM sold in Philippines was via service fees arrangement with manufacturer Better TSM performance at existing outlets in Philippines, RM 2.3 mil (13% increment) This has been offset against RM3.0mil (17%) drop in Indochina TSM performance as a result of political unrest in Thailand during 1Q2014 Cessation of Macau concession in 1H2014 8

9 1H2014 SSM Performance Review RM33.9mil (123%) increased in SSM 1H2014 Revenue as compared to 1H2013 is mainly due to: Sales of different product mix with higher value in the region Increase in number of machines sold to a new opening casino in Philippines Market penetration into local clubs in Singapore Country 1H2014 Units No of Machines Sold 1H2013 Units Change Units 1H mths RM 000 SSM Revenue 1H mths RM 000 Change % YE mths RM 000 Philippines ^ 589 # ,902 17, % 52,680 Indochina ,559 2, % 4,424 Malaysia ,884-91% 6,688 Macau % 423 Singapore , % 2,173 Others , % 2,096 Total ,598 27, % 68,484 ^ Included in 1H2014 Philippines SSM Revenue was sales of approximately 350 machines to a new opening casino in 2Q2014 # Included in 1H2013 Philippines SSM Revenue was selling of 424 machines via service fees arrangement with manufacturer 9

10 1H2014 TSM Performance Review TSM 1H2014 revenue is RM2.0mil (5%) lower than 1H2013. This is mainly due to: Better TSM performance at existing outlets in Philippines Drop in Cambodia TSM performance due to lower player traffic caused by the political unrest in Thailand in 1Q2014 Cessation of Macau concessions in 1H2014 No. of Machines placed (units) Revenue 1H2014 (38 Outlets) 1H2013 (38 Outlets) Change 1H mths RM 000 1H mths RM 000 Change % YE mths RM 000 Philippines 2,569 2, ,412 18, % 39,028 Indochina 3,434 3, ,711 17,730-17% 29,337 Macau (156) 1, % 1,886 Malaysia % 170 Total 6,003 5, ,000 36,972-5% 70,421 10

11 1H2014 Segmental PBT 1H2014 Group PBT is RM5.9mil (144%) higher than 1H2013. This is mainly due to better SSM and TSM performance in 2Q2014 across all regions Notes: Others: RM'mil (2.0) (4.0) (6.0) (8.0) 1H2012 1H2013 1H2014 SSM TSM Others (3.2) (7.9) (2.5) Group PBT consist of revenue from leasing of Chateau Building, manufacturing activities, research & development activities and inter-segment transaction SSM + RM1.2 mil (+ 33%) TSM - RM0.7 mil (- 9%) Others - RM5.4 mil (- 69%) Increase in sales of machines and other gaming related products Better TSM performance in Philippines offset against weaker Indochina performance due to the political unrest in Thailand in 1Q2014 Lower depreciation of gaming machines RM1.1mil exchange gain in 1H2014 and RM2.1mil exchange loss in 1H2013 due to appreciation of US Dollar against local currency where RGB operates RM1.3mil gain on deconsolidation of subsidiary, Movieland Entertainment Co. Ltd 11

12 Outlook, Targets & Strategies 12

13 2H2014 Outlook Expecting positive results in 2H2014 Division Outlook Targets Strategies SSM Positive Targeting sales of additional 600 more machines in 2H2014 To deliver remaining confirmed EGMs and related gaming products to new Integrated Resorts in Philippines Focus on replacement market in both Malaysia and Singapore To continue exploring sales opportunity with other new Integrated Resorts and casinos TSM Positive Increasing revenue and yield per machines at existing outlets Setup of at least 1 new concession in 2H2014 Installation of in-house and 3 rd party Slot Management System to increase yield per machine Continuous exploration of new concessions across all regions 13

14 2H2014 Outlook (cont) Expecting positive results in 2H2014 Division Outlook Target Strategies Others Positive Rental income of USD40,000 per month Test run RGBGAMES new games - Mun Mun Progressive Link in a few Indochina concessions Launching of new slots platform and new games develop by reputable Slot Games Content Developers by 1H2015 Disposal of building and assets in Chateau Installation of new games at Indochina concessions for field testing to gather functional and performance feedback before official launching Further enhancement of in-house Smartlink II Slot Management System in order to remain competitive in the market 14

15 Product Distributorship 15

16 Product Distributorship SLOT MACHINES & PARTS CASINO EQUIPMENT & PARTS 16

17 Electronic Gaming Machines 17

18 RGBGAMES Mun Mun Progressive Link - Fortune Stars & Dragon Stars (currently on field testing at a few Indochina concession) 18

19 Bingo Machines RGB has been awarded exclusive distributorship of Zitro Bingo Machines in Philippines and other Asian Countries RGB has entered into TSM agreement with AB Leisure Exponent Incorporated to operate Bingo outlets in Philippines As of June 2014, there are 251 Bingo machines operated in 16 Bingo Outlets in Philippines, generating approximately RM100K net revenue with zero investment cost Expected to place additional 210 Bingo machines in 2H2014 at 6 other venues in Philippines 19

20 Tombola Roulette R. Franco, a company incorporated in Spain, is a leading electronic gaming manufacturer which offers large range of gaming equipment for gaming establishment and is internationally established in the markets. RGB signed an Exclusive Agreement with R.Franco on to supply and lease their premier products, i.e. Tombola Roulette for Asian Region 20

21 Q&A Session 21

22 THANK YOU For information, please contact RGB International Bhd. at Telephone: