Imagine the Possibilities
Total Page:16
File Type:pdf, Size:1020Kb
A RI S TOCR ANNUAL REPORT 2005 A T LEI TWELVE MONTHS ENDED 31 DECEMBER 2005 S URE LI ARISTOCRAT LEISURE LIMITED ABN 44 002 818 368 M ITED ANNU imagine the possibilities... A aristocrat L REPORT 2005 A RI S TOCR ANNUAL REPORT 2005 A T LEI TWELVE MONTHS ENDED 31 DECEMBER 2005 S URE LI ARISTOCRAT LEISURE LIMITED ABN 44 002 818 368 M ITED ANNU imagine the possibilities... A aristocrat L REPORT 2005 delivering the possibilities. the delivering every casino on the Las Vegas Strip. every casinoontheLasVegas nowAristocrat‘slots’invirtually are There Our global market + + + + + + + + + + + + + + + + + + + + + + ++ + + + + + + ++ + + + + + + + + + + + + + ++ + + + + ++ +++ + + + + + + + + + + + + + + + ++ + + + + + + +++ + + +++ + + + + + + + + + + ++++ ++ + + + + + + + + + + + + + + + + + + + + ++ +++ + ++++ + + ++ + + + + + ++ + + + Approved jurisdictions Designed and produced by Bang www.bang.net.au Albania Bahamas Quebec Gambia Macau Nigeria South Africa Togo Iowa New York Angola Barbados Saskatchewan Germany Macedonia Panama Eastern Cape Tunisia Kansas North Carolina Antigua Benin Yukon Ghana Malawi Peru Free State Turks and Caicos Islands Louisiana North Dakota Argentina Botswana Chile Gibraltar Malta Philippines Gauteng Uganda Maine Oregon Aruba Bulgaria Colombia Greece Mauritius Poland KwaZulu-Natal Ukraine Maryland Pennsylvania Australia Cambodia Comoros Holland Mongolia Puerto Rico Mpumalanga United States of America Michigan Rhode Island Australian Capital Territory Canada Croatia Honduras Morocco Reunion Northern Cape Arizona Minnesota South Dakota New South Wales Alberta Cyprus, North Hungary Mozambique Russia Limpopo California Mississippi Washington Northern Territory British Colombia Czech Republic Italy Namibia Saint Kitts and Nevis North West Cape Colorado Missouri West Virginia Queensland Manitoba Djibouti Japan New Zealand Saint Vincents and Western Cape Connecticut Montana Wisconsin South Australia New Brunswick Dominican Republic Kenya Niger Grenadines South Korea Delaware Nebraska Uruguay Tasmania Newfoundland Egypt Latvia Netherlands Antilles Senegal Swaziland Florida Nevada Venezuela Victoria Nova Scotia Estonia Lesotho Curacao Seychelles Switzerland Idaho New England Vietnam Western Australia Ontario France Lithuania Bonaire Slovenia Tanzania Illinois New Jersey Zambia Austria Prince Edward Island Gabon Luxembourg St Maarten Solomon Islands Tinian Indiana New Mexico Zimbabwe delivering the possibilities. the delivering every casino on the Las Vegas Strip. every casinoontheLasVegas nowAristocrat‘slots’invirtually are There Our global market + + + + + + + + + + + + + + + + + + + + + + ++ + + + + + + ++ + + + + + + + + + + + + + ++ + + + + ++ +++ + + + + + + + + + + + + + + + ++ + + + + + + +++ + + +++ + + + + + + + + + + ++++ ++ + + + + + + + + + + + + + + + + + + + + ++ +++ + ++++ + + ++ + + + + + ++ + + + Approved jurisdictions Designed and produced by Bang www.bang.net.au Albania Bahamas Quebec Gambia Macau Nigeria South Africa Togo Iowa New York Angola Barbados Saskatchewan Germany Macedonia Panama Eastern Cape Tunisia Kansas North Carolina Antigua Benin Yukon Ghana Malawi Peru Free State Turks and Caicos Islands Louisiana North Dakota Argentina Botswana Chile Gibraltar Malta Philippines Gauteng Uganda Maine Oregon Aruba Bulgaria Colombia Greece Mauritius Poland KwaZulu-Natal Ukraine Maryland Pennsylvania Australia Cambodia Comoros Holland Mongolia Puerto Rico Mpumalanga United States of America Michigan Rhode Island Australian Capital Territory Canada Croatia Honduras Morocco Reunion Northern Cape Arizona Minnesota South Dakota New South Wales Alberta Cyprus, North Hungary Mozambique Russia Limpopo California Mississippi Washington Northern Territory British Colombia Czech Republic Italy Namibia Saint Kitts and Nevis North West Cape Colorado Missouri West Virginia Queensland Manitoba Djibouti Japan New Zealand Saint Vincents and Western Cape Connecticut Montana Wisconsin South Australia New Brunswick Dominican Republic Kenya Niger Grenadines South Korea Delaware Nebraska Uruguay Tasmania Newfoundland Egypt Latvia Netherlands Antilles Senegal Swaziland Florida Nevada Venezuela Victoria Nova Scotia Estonia Lesotho Curacao Seychelles Switzerland Idaho New England Vietnam Western Australia Ontario France Lithuania Bonaire Slovenia Tanzania Illinois New Jersey Zambia Austria Prince Edward Island Gabon Luxembourg St Maarten Solomon Islands Tinian Indiana New Mexico Zimbabwe Contents Financials At A Glance 3 Highlights Of The Year 4 Chairman’s Report 6 Chief Executive Officer’s Report 8 Summary Of Global Operations 10 Management Discussion and Analysis: – Business Segment Review 13 Australia 13 The Americas 14 Japan 16 New Zealand 17 Other International 18 Research and Development 19 Supply Chain 21 Our People 22 – Financial Report 23 Shareholder Information 28 Corporate Governance 30 Directors’ Report 35 Five Year Summary 52 Financial Statements 53 Glossary of Terms 126 Corporate Directory 128 Company Profile Aristocrat is a leading global entertainment company which provides a comprehensive range of gaming solutions to entertainment venues around the world. Aristocrat’s gaming solutions consistently outperform the competition. The Company holds over 200 gaming licences and its products and services are available in over 90 countries around the world. Key Dates* “Aristocrat’s revenues 2006 exceeded $1.3 billion in Annual General Meeting 2 May 2006 2005, an increase of 15.3%. Interim Results Announcement The Company’s strong cash (6 months ending 30/6/06) 22 August 2006 flows have permitted the Board to declare a final dividend of Shares Ex-Interim Dividend 29 August 2006 20 cents per share. The total Record Date for Interim Dividend 5 September 2006 return to investors resulting from capital management Payment of Interim Dividend 19 September 2006 initiatives and dividends during 2007 2005 was $269.5 million. Final Results Announcement for 2006 20 February 2007 These results demonstrate that we have the right Record Date for Final Dividend 9 March 2007 strategies in place to ensure Payment of Final Dividend 23 March 2007 that Aristocrat remains one of the world’s leading providers Annual General Meeting 1 May 2007 of gaming solutions with strong growth prospects across a range of markets.” Annual General Meeting Paul Oneile, The Annual General Meeting of Members of Aristocrat Leisure Limited Managing Director and CEO. will be held in the Ballroom at Star City on Tuesday 2 May 2006 at 10.30am. A separate notice of meeting and proxy form have been sent to shareholders with this annual report. 02 * Dates subject to change # Total revenue $m 2005 2004 2003* 2002 2001 0 200 400 600 800 1000 1200 1400 financials at a glance # Earnings before interest and tax $m 2005 2004 2003* 2002 2001 0 60 120 180 240 300 360 # Operating profit after tax $m 2005 2004 2003* 2002 2001 0 50 100 150 200 250 # Earnings per share cents 2005 2004 2003* 2002 2001 0 10 20 30 40 50 60 # Comparative years 2003, 2002 and 2001 have been prepared under previous AGAAP and have not been amended for the adoption of AIFRS * 2003 results are pre one-off adjustments. Full details of these one-off adjustments are set out in the 2003 annual report 03 Highlights Of The Year United States On 5 May 2005, Las Vegas grandmother Jo Ann Argyris won the USD$1M jackpot on Aristocrat’s Millioni$erTM HyperlinkTM for the second time in less than a year. Aristocrat’s Millioni$erTM has proven one of the most successful products in the United States and assisted Aristocrat to drive its recurring revenue up 40.7% to a new record. Japan In August 2005, Aristocrat launched the third version of its successful Kyojin-no-hoshiTM series of pachislo machines. Over 72,000 Kyojin-no-hoshi 3TM games were sold in 2005 setting a new Company record for annual sales of a single game title anywhere in the world. Total sales of the Company’s pachislo machines during 2005 were 98,007 units. Aristocrat is the most successful foreign manufacturer of pachislo machines in Japan. Japan remains the world’s most exciting and dynamic gaming environment with over five United States million machines, more than the rest of the world In late 2005, a field trial of the new five reel stepper combined. games commenced in 16 Las Vegas area casinos. Stepper games are mechanical reel slot machines operated using a traditional handle. They make up approximately 40% of the North American market and although video gaming is making inroads into the stepper market, many American players still prefer ‘the handle’. This picture, taken in December 2005 shows one of the first stepper field-trial installations at Green Valley Ranch Resort and Spa Casino in Las Vegas. 04 United States In November 2005, Aristocrat installed its new CrownTM slant-top cabinet at seven Station Casino properties in Nevada. The CrownTM slant- top, which features a recessed leg area and other ergonomic improvements, is the outcome of collaboration with several customers. “Aristocrat listened to our feedback from a player comfort and operator standpoint. The new product is attractive and comfortable for the guest. The CrownTM slant can only build on Aristocrat’s proven success with video product” said Jay Fannel, Station Casino’s Corporate Director of slot operations. Australia The Aristocrat Xtreme Mystery LinkTM, an integrated theme mystery link bonus package, which was released in New South Wales in late 2005, takes graphical imagery to a new level and has proved very popular. The product, based on a dual monitor XtremeTM EGM, is