RGB FY2014 Corporate Review. 5th March 2015

Transcription

1 RGB FY2014 Corporate Review 5th March 2015

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 14 3

4 Financial Overview 4

5 FY2014 Financial Overview Business The Group achieved 54% (RM75.0mil) and 202% (RM13.2mil) growth in Revenue and PBT respectively in FY2014 as compared to FY2013 The significant improvement in the Group s performance is mainly due to successful repositioning and realignment of the Group s strategies and direction over the past few years The Group is confident to sustain its market share in various regions and achieve better results in the forthcoming years with the continuous improvement of SSM and TSM performance across all regions Financial Improvement in FY2014 Revenue (+54%), EBITDA (+12%) and PBT (+202%) as compared to FY2013 is due to: Sales of different SSM product mix and of higher value in the region Improved TSM performance in all region RM7.3mil lesser machine depreciation RM1.2mil savings in interest cost RM1.2mil gain on deconsolidation of a subsidiary Corporate Group net gearing ratio improved from 0.53 to 0.18 in FY2014 RM18.2mil repayment of Commercial Papers ( CP ) (consist of RM13.4mil principal and RM4.8mil interest) in FY2014 As at 31 December 2014, outstanding CP and MTN is RM38.42mil (10% interest pa) and RM10.0mil (5% interest pa) respectively On 12 February 2015, interest cost of outstanding CP has reduced from 10% to 7% pa Proposed acquisition of 30% equity stake in Timor Holding, Lda.by RGB (Macau) Ltd is expected to complete by mid-2015 RGB Board of Director is proposing a final single-tier dividend of 0.2 sen per ordinary share for FY2014 5

6 FY2014 Financial Overview FY2014 (12 mths) RM 000 FY2013 (12 mths) RM 000 Change % Revenue 214, , % EBITDA* 55,081 49, % Net Operating Cash Flow 45,241 48,090-6% Profit Before Tax 19,697 6, % Shareholders Equity 104,708 74, % Earnings Per Share (sen) % Net Asset Per Share (sen) % Net Gearing Ratio % * EBITDA = Earnings before interest, tax, depreciation and amortization 6

7 Business Segment Updates 7

8 FY2014 Segmental Revenue FY2014 Group Revenue is RM75.0mil (54%) higher than FY2013. This is mainly due to increase in SSM sales and TSM performance across all regions RM'mil FY2012 FY2013 FY2014 SSM TSM Others SSM + RM 74.7 mil (+ 109%) TSM + RM0.5 mil ( + 1%) Increase in sales of machines and gaming products (different product mix and of higher value) in all regions, especially supplying gaming machines to a newly opened casino in Philippines Better TSM performance at existing outlets in all regions 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 Notes: Others: consist of revenue from leasing of Chateau Building, manufacturing activities, research & development activities and inter-segment transaction 8

9 FY2014 SSM Performance Review RM74.7mil (109%) increased in SSM FY2014 Revenue as compared to FY2013 is mainly due to: Sales of different product mix with higher value in the region Increase in number of machines sold to a newly opened casino in Philippines Country FY2014 Units No of Machines Sold FY2013 Units Change Units FY mths RM 000 SSM Revenue YE mths RM 000 Change % Philippines ^ 1,339 # % 128,643 52, % Indochina % 9,659 4, % Malaysia % 2,364 6,688-65% Macau % Singapore % 2,188 2, % Others ,096-90% Total 1,452 1, % 143,156 68, % ^ Included in FY2014 Philippines SSM Revenue was sales of approximately 567 machines to a newly opened casino in 2014 # Included in FY2013 Philippines SSM Revenue was selling of 424 machines via service fees arrangement with manufacturer 9

10 FY2014 TSM Performance Review TSM FY2014 revenue is RM0.5mil (1%) higher than FY2013. This is mainly due to: Better TSM performance at existing outlets in all regions Indochina 1Q2014 performance, especially Poipet region in Cambodia, was slighted affected by the political unrest in Thailand during that period Cessation of Macau concessions in 1H2014 No. of Machines placed (units) TSM Revenue FY2014 (37 Outlets) FY2013 (36 Outlets) Change FY mths RM 000 FY mths RM 000 Change % Philippines ^ 2,827 2, % 40,793 39, % Indochina 3,544 3, % 30,084 29, % Macau % (9) 1, % Malaysia % Total 6,371 5, % 70,928 70, % ^ As at December 2014, there was 422 (2013: 100) Bingo machines operated over 21 outlets in Philippines, generating approximately USD81.7K (2013 : USD29.3K) net revenue 10

11 FY2014 Segmental PBT FY2014 Group PBT is RM13.2mil (202%) higher than FY2013. This is mainly due to better SSM and TSM performance during the financial year across all regions RM'mil (5.0) (10.0) (15.0) (20.0) FY2012 FY2013 FY2014 SSM Notes: Others: TSM Others (7.6) (15.3) (12.2) consist of revenue from leasing of Chateau Building, manufacturing activities, research & development activities and inter-segment transaction SSM + RM 6.7 mil (+ 86%) TSM + RM 3.3 mil (+ 24%) Others + RM 3.1 mil (- 21%) Increase in sales of machines and other gaming related products Better TSM performance across all regions, especially Philippines Reduction in operating expenditure Lower depreciation on gaming machines RM1.3mil gain on deconsolidation of subsidiary, Movieland Entertainment Co. Ltd Reduction in operating expenditure of Others segment Lesser expenses on R&D expenditure 11

12 Outlook, Targets & Strategies 12

13 FY2015 Outlook Expecting positive results in FY2015 Division Targets Strategies SSM Targeting sales of 1,500 machines in FY2015 Continue exploring sales opportunity with other new Integrated Resorts and casinos Focus on replacement market in existing and new markets across all region TSM Targeting to place additional 500 Bingo machines in Philippines Targeting approximately 7,000 machines concession in existing and new markets in other part of Asian countries Increasing revenue and yield per machines at existing outlets via installation of in-house and 3 rd party Slot Management System Continuous exploration of new concessions across all regions Others Rental income of USD45,000 per month 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 13

14 Product Distributorship 14

15 Product Distributorship SLOT MACHINES & PARTS CASINO EQUIPMENT & PARTS 15

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