Aristocrat Leisure (ALL) Investor Day 2024 summary

Strategic Direction and Growth Plans

• Focus on three core businesses: Aristocrat Gaming, Pixel United (mobile/social), and Aristocrat Interactive (online RMG), each targeting large, growing addressable markets exceeding US$400 billion.

• Aspires to double group value every five years, with a $1 billion revenue target for Interactive by FY2029, assuming some market openings and diversified enough to adapt to various scenarios.

• Recent acquisitions (NeoGames, Roxor) and the launch of Aristocrat Interactive position the group for expansion in regulated online gaming, iLottery, and sports betting.

• Disciplined investment in D&D (11%-13% of revenue), technology, and talent to drive innovation, speed to market, and cross-channel content leverage.

• Ongoing strategic review of social, casual, and mid-core assets to optimize the portfolio and maximize shareholder returns.

Financial Performance and Guidance

• Revenue grew at a 12% CAGR since FY2018, reaching $6.3 billion in 2023, with segment profits up 11% CAGR to $2.7 billion.

• 1H24 group revenue reached A$3.5bn, with segment profits of A$1.0bn for Gaming, A$0.5bn for Pixel United, and A$30.3m for Interactive.

• Interactive division targets at least US$1bn in revenue by FY29, implying a five-year CAGR above 20%.

• Return on capital invested recovered to ~30% in FY2023, with over $2.2 billion returned to shareholders via dividends and buybacks.

• Total shareholder returns have outperformed the ASX 100, with a 25.9% annualized return over the past decade.

Product, Technology, and Business Development

• Shift from siloed, channel-centric product development to an enterprise-wide, portfolio approach, leveraging data and AI for efficiency and cross-channel deployment.

• Over 52 gaming titles, 49 Pixel titles, and 35 Interactive titles leveraged across platforms, with iconic brands like Buffalo and Dragon Link expanding into new channels.

• NeoGames acquisition completed, creating Aristocrat Interactive, a unified brand with global scale in iLottery, iGaming, and Gaming Systems.

• Accelerating cross-channel content distribution, leveraging branded IP across land-based, social, and online channels.

• Pixel United is optimizing user acquisition, prioritizing retention, and leveraging live ops to drive engagement and profitability.