Aristocrat Leisure Limited
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Aristocrat Leisure Limited Business Review Contents 4 Chairman & CEO Welcome 6 2013 in Review 8 Our Growth Strategy 10 2013 Product Portfolio 12 Sustainability at Aristocrat 20 5 Year Financial Summary 21 Board of Directors Executive Leadership Team 24 3 The quality and breadth Aristocrat Business Review 2013 of the portfolios Aristocrat showcased across our major tradeshows in 2013 set a new benchmark for our business. Chairman & CEO Welcome Ian Blackburne Jamie Odell CHAIRMAN CEO The quality and breadth of the portfolios Aristocrat Welcome to Aristocrat’s showcased across our major tradeshows in 2013 Business Review for the set a new benchmark for our business, generating positive customer and market feedback. Over the year ending 30 September course of 2013, we accelerated our efforts to ensure 2013. We are pleased to our core gaming business is positioned not only to compete, but to grow and build value across key report that it’s been another markets and segments into the future. positive year for Aristocrat, With the acquisition of Product Madness Inc, a leading publisher of social slots, we also increased as we continue to execute our online gaming presence, delivering Aristocrat our growth strategy across all the benefits of a top tier social casino operator and best of breed social gaming platform. While it’s the globe. early days, throughout 2013 we worked to leverage new and existing distribution opportunities for our broad game content library in the social network and mobile gaming channels, with early Facebook Our primary focus over the past 12 months has app releases generating encouraging results. been growing our market share in key, high value We also took full control of the award-winning markets and segments. We have made solid nLive™ product, which offers our casino progress with an unrelenting commitment to customers in the US a fully branded free-play delivering our customers the best possible site to promote their venues and better engage games and most compelling performance levels. customers. nLive™ is also fully capable of delivering To do this we stepped up our investment in real-money online gaming in the US, ensuring world-leading technical and creative talent, Aristocrat is well positioned to take advantage worked hard to embed a high performance of further opportunities as the industry evolves culture and gained recognition as an employer and regulations change. of choice across the global industry. We have also sharpened our focus on what local customers We look forward to keeping you updated as and players want, challenging ourselves to live up Aristocrat continues its journey of transformation to our promise and truly ‘transform the game’. and growth. Ian Blackburne Jamie Odell CHAIRMAN CEO 4 Aristocrat Business Review 2013 2013 in Review 2013 Highlights The Review of Operations Supplying customers in over contained in the 2013 Annual 1,688 19.4 c volunteer hours 90 Earning per share Report provides a detailed worked globally countries (fully diluted) overview of the Group’s 5 High Performance Leadership Toolkit performance for the year 4 3 5th consecutive 9 186 9 364 2 reporting period Modules Sessions Locations Participants ending 30 September 2013. Las Vegas, Sydney, 1 of double digit Macau, London, Austin, RSA, India, Click here to view the report NPAT growth NZ, Newcastle Almost Licenced in over 240 12% increase in Gaming jurisdictions Ops footprint* 2,173 16.9% employees globally increase in NPAT* 530,000+ people playing Product Madness games every day 6 *Percentages are in reference to the Prior Corresponding Period ending 30 September 2013 Our Growth Strategy Our strategy focuses on three key pillars – Core Momentum, Industry Transformation and People & Culture. • Core Momentum – In 2013, we continued to focus • People & Culture – We are committed to building on our core gaming business and taking the a high performance culture and ensuring that necessary steps to underpin share growth in the Aristocrat attracts and retains the best performers coming years. This included a major investment with the right capability and behaviours to in new and existing creative talent in order to bring our strategy to life. The rollout of our High continue to build competitive entertainment Performance Leadership Toolkit over the course gaming and jackpot portfolios, and to add further of 2013 represented a significant investment in excitement and performance to our gaming supporting our key leaders to maximise their operations product. Legendary names such as effectiveness every day. We also implemented a Dan Marks, Scott Olive and Joe Kaminkow joined range of improvement measures in response to our talented global group of artists and designers a global employee survey and bedded down our during 2013, making an impact in the quality of comprehensive talent management program. our core game portfolio. • Industry Transformation – We have made several considered investments over the course of 2013 to secure our future position in the emerging social gaming category. We acquired an internet gaming system (“IGS”) and a remote game server (“RGS”), enabling us to deliver Aristocrat game content in both the online wager and free-to-play environments. Our purchase of Product Madness Inc, a best-in-class social slots publisher, marked our entry into the fast growing social casino market with Aristocrat content. 8 9 4 Aristocrat Business Review 2013 1 2 SHOWcasinG OUR IP In 2013, Aristocrat showcased our strongest portfolio of games tailored to suit players and customers across our major global markets, including: 1. The Australasian Gaming Expo (AGE); 2. G2E (Global Gaming Expo) Macau; 3. G2E (Global Gaming Expo) Las Vegas; 4. ICE (International Gaming Industry Exhibition) London. AGE Australia 50 3 unique game titles across 7 differentiated product families G2E Las Vegas 200+ games on display G2E Macau 80% increase in Aristocrat games 10 on stand in dual language 11 Aristocrat Business Review 2013 Sustainability at Aristocrat Governance and risk management We continue to invest in initiatives such as the For us, sustainability is about Aristocrat operates in a highly regulated industry innovative Blue Gum™ electronic gaming machine, in which our probity is of utmost importance. We which incorporates a range of harm minimisation adhere to stringent processes and controls to ensure features including: the suitability of our people, customers, vendors, • special messages and animations to encourage ensuring our business and agents, distributors, major shareholders and players to gamble responsibly; other associates. Our extensive probity process is • a bank meter allowing players to ‘bank’ any wins; constantly reviewed for effectiveness and we deliver • an alarm clock to help players monitor the amount our industry has a long-term a detailed anti-bribery and anti-corruption training of time spent playing; and course for employees. • a ‘charity meter’ to direct part of winnings to a The Corporate Governance framework we have registered charity. future – economically, developed uses Aristocrat’s long established values as well as the ‘Corporate Governance Principles and Our sustainable practices Recommendations’ published by the ASX Corporate Aristocrat not only complies with the various socially and environmentally. Governance Council. Full details of our Corporate environmental laws to which our operations are Governance framework, including remuneration subject, but also aims to achieve a high standard details, can be found in our 2013 Annual Report. of environmental performance across all our Click here to view the report operations. To reduce our environmental footprint, Our sustainability priorities mitigate regulatory risks and decrease costs, we Aristocrat also operates within a sound risk have implemented a range of initiatives including: management framework. Formal ongoing processes • introducing energy efficiency and recycling are established at Board level are in place to identify, assess, monitor and programs across all our offices and sites; appropriately manage the risks the business faces or • establishing water recycling systems in our might be exposed to in the course of our operations. Integration (manufacturing) Centres; and cascaded throughout • removing hazardous materials previously used Our role in encouraging a sustainable industry in products and ensuring suppliers comply with Aristocrat works closely with industry leaders to similar standards; the global organisation and promote responsible gaming initiatives and support • increasing the usage of recyclable material in the adoption of evidence based responsible gaming our products and packaging, and labelling of all practices and policies. We support responsible plastics with the appropriate recyclable symbol expressed in the way we do gaming and harm minimisation initiatives that: and material type; and • are proven to reduce problem gambling without • introducing practices to define environmental unduly impacting the overwhelming majority of considerations in product design. business every day – our recreational gamers, or limiting their choices, Through our centralised procurement system, amenity and enjoyment; suppliers tendering for work must provide • foster player empowerment and informed decision information about their sustainability practices. making, while protecting individual privacy; Information provided on topics such as occupational processes, our people and • are able to be implemented with a high degree health