1Q 2 1Q 2010 UPD 010 UPDATES TES May 2010 May 2010 In association with Manny Pacquioa WBO World Welterweight Champion
SAFE SAF E HARB HARBOUR OUR ST STATEMENT TEMENT These presentations contain 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 Dreamgate to differ materially from management's current expectations. Factors that could cause demand to be different from Dreamgate‟s expectations include customer acceptance of Dreamgate 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. Dreamgate‟s results could be impacted by unexpected economic, social, political and physical/infrastructure conditions in the countries in which Dreamgate, 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
CONTE CONTENTS NTS Page Summar Summary 4 Financial Financial Review view 6 Se Segments gments Upda Update te 11 11 Act Action ion Plans & Plans & Str Strate tegies gies 16 16 Cor Corpor porate te Upda Updates tes 19 19 3
Summar Summary 4
SUMMAR SUMMARY TSM Financial - EBITDA before impairment : Q-o-Q improved by 33%, compared to 4Q09 improved by 45% - Improvement supported by efforts to improve yield per machine and reducing operating expenses showing positive results SSM - Results affected by the deferment in orders due to general election in Philippines, a short term impact. L&E - High winnings by junket players for the period affected performance of Chateau Mobilization Plan Business - Limited movement as sites are not ready and deferment due to general election in Philippines Opening of new site: - Orient Pearl in Kartini Hotel, Cavite, Philippines, 118 machines Corporate Name change to RGB International Bhd. to be effected in June 2010 5
Financ Financial ial Review view 6
SN SNAPS APSHO HOT Factors Affecting Performance For Period : Casinos Deferment Plans, Higher Depreciation Cost, Low Winnings Per Table 1Q10 4Q09 % 1Q09 % Commentary RM mil RM mil Change RM mil Change - During the period under review, Revenue 31.21 65.38 (52) 35.57 (12) casino operators in Philippines EBITDA* before deferred plans for their 1.34 8.13 (83) 14.65 (91) impairment projects/capital expenditure due to the general election (Loss) / Profit Before Tax (20.27) (37.84) (46) (2.35) (760) (which was held in May 2010). - Expects mobilization plans and (Loss) / Profit Attributable (17.72) (36.90) (52) (2.20) (705) more sales of machines to take to Owners of the parent place in 2H10. - Higher depreciation cost Net (Loss)/Earnings Per included those machines not in Share attributable to operations, hence no owners of the parent (1.56) (3.64) (57) (0.25) (524) impairment provided for the (sen quarter - High winnings by junket NTA Per Share (sen) 11 14 (21) 21 (47) players affected Chateau Note : * Earnings before interest, taxation, depreciation & amortisation 7
KEY KEY RA RATIOS TIOS 3 months ended 31.3.2010 31.12.2009 GP margin (%) -16 15 Current Ratio (times) 0.54 0.59 Quick Ratio (Excluding inventory) (times) 0.47 0.55 Gearing Ratio Borrowings - Gross (times) 1.06 0.81 - Net (times) 0.86 0.73 8
GR GROUP OUP REV REVENUE ENUE BY BY SEGME SEGMENTS NTS 1% 2% SSM 8% 10% 35% TSM 1Q10 4Q09 24% RM31 mil RM65 mil L&E 64% 56% Others Notes: L&E : Revenue from companies involved in gaming and leisure activities Others : Consist of revenue from manufacturing activities, R&D and inter-segment transactions • SSM 73% Decreased in machine sales due to seasonal fluctuations • TSM 15% Improved income from outlets opened in 2009 which stared to generate positive cash flow and revenues • Solely from Chateau from L&E, started operations in Aug 09 L&E 67% • High winnings from junket players 9
MAJOR MAJO R OPE OPERA RATING TING EXP EXPENS ENSES 1% Salary, allowances & emoluments 1% 7% 12% Impairments and write-offs 3% 30% 6% Finance Cost 42% 1Q10 4Q09 Legal, professional and consultancy RM14.8 mil RM41.9 mil Upkeep of machineries (TSM) 17% 70% Transportation 3% 6% Others 2% There were no impairment for machines not in operations for 1Q10 as depreciation were provided for The increase in “Others” was effected by the increase in junket expenses 10
Se Segment gments s Upda Update te 11
SSM SSM Target No. of No. of machines machines Commentary Country to be sold sold in FY2010 1Q 10 Secured Orders in 2Q10 : 100 units Malaysia 100 - Philippines 630 24 Philippines, Singapore - More orders expected in 2H10 Vietnam 130 29 Macau 100 44 * Others 290 5 1,250 102 * Others – Singapore, India, Cambodia, Korea 12
TSM - CONC TSM CONCESSION ESSION VENUE VENUES Concession Venues and Machines Placed By Geographical Locations (as at Mar 2010) 2,040 Machines : 5,198 units Venues : 39 1,976 units 18 871 units 11 152 159 units units 6 2 2 Cambodia Philippines Vietnam Macau Lao PDR Note: Vietnam: 2 sites currently in operation. 1 site under renovation. 13
TSM TSM – MOBILIZA MOBILIZATION TION PLA PLAN Update on Machines Mobilization (as at Mar 2010) As at Dec 2009 - Units at warehouse 1,470 Commentary Sites: Mobilized Plans for mobilization were deferred arising from the Cambodia - deferment by casino operators in Philippines Philippines 24 due to the pending general Laos *100 elections (which were eventually held in May Macau 2010) and the delay in the Cruise Ship opening of site in Laos. Spare parts (if any) Foresee the placement of Sub-total of mobilized units for 1Q10 124 machines to take place in 2H10. Units to be Mobilized by 2010 1,346 Note : * 100 units are owned by 3 rd Party but managed by us 14
TSM TSM - UPCOMING UPCOMING VENUE VENUES S Country Venues Upcoming Venues (As at Mar 2010) (By End 2010) No. of No. of No. of Sites Machines No. of Sites Machines Philippines 18 2,040 10 2,000 Macau 6 871 - - Cambodia 11 1,976 - - Laos 2 159 1 500 Vietnam 2 152 - - Others - - - - Total 39 5,198 11 2,500 15
Action Plans Action Plans & & Str Strate tegies gies 16
ACT CTION ION PL PLANS ANS & & ST STRA RATE TEGIES GIES CONTINUE TO STRENGTHEN CORE BUSINESS Expects to open additional 11 new concession venues with approximately 2,500 TSM machines to be placed by end 2010 Out of 2,500 machines, 1,400 units will be from the mobilization plan Remaining will be new machines to be supplied under a proposed profit sharing scheme Continue to focus on yield per machine improvement for all existing venues Non-performing venues will be closed Expects units of machines to be sold this year to match quantity achieved in SSM 2009 Launching of RGBGames‟ „Manny Pacman ‟ and „Wang Wang Wang ‟ to take place in 2H2010 Expect positive sales contribution in 2010 from our in – house table games layout with the new printing machine which will improve the quality and productivity 17
ACT CTION ION PL PLANS ANS & & ST STRA RATE TEGIES GIES ( con’t ) CONTINUE TO STRENGTHEN CORE BUSINESS Strengthened marketing strategy to capture wider segment of mass market L&E Has shown positive signs in relation to increased number of players and revenue in 2Q10. 18
COR CORPOR PORATE TE UPD UPDATE TES CHANGE OF NAME FOR ILLUSTRATION PURPOSE ONLY June e 2010 RGB INTERNATIONAL BHD. Rationale: The brandname „RGB‟ has been in existence for last 25 years Well established and synonymous in the Asian gaming industry Significantly strengthen the Group‟s corporate branding and identity 19
THANK YOU Investor Relations Contact Information Lim Poh Poh Email : pplim@rgbgames.com Tel : +603 - 2026 0228 Elena Beh Email : elenabeh@rgbgames.com Tel : +604 - 263 1111 In association with Manny Pacquioa WBO World Welterweight Champion
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