Donaco International : AGM 2021 - Investor Presentation

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FY21 AGM Presentation

28 January 2022

Porntat Amatavivadhana	Gordon Lo
Chairman	Chief Financial Officer

The Year in Review

Maintained prudent cost control and balance sheet protection

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Donaco's operations, DNA Star Vegas (Star Vegas) and Aristo International Hotel (Aristo), were largely affected by C-19.

Star Vegas operated for 7 months of the year until April 2021 and Aristo remained open on a limited basis, due to restrictions related to the pandemic.

The outbreak affected revenue and EBITDA resulting in FY21 revenue of A$10.32 (FY20: A$53.39m) and negative EBITDA of

A$0.07m (FY20: A$10.38m).

Despite opening on a limited basis, Aristo achieved positive EBITDA of A$0.30m in the first three months of FY22, demonstrating the strength of the asset.

The Board and Management team continued to execute disciplined cost control underpinned by a strengthened balance sheet.

Settlement of the Loan Facility with main lender Mega Bank was reached, with final payment made in December 2021.

Positive long-term business outlook with proliferation of vaccines globally, and across South-East Asia, as well as increased tourism infrastructure spend emerging in the region.

Encouraging long term outlook, Mega Bank Facility settled, and improving broader business

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FY21 Achievements

1.	Cost control strategy and strategic initiatives to
	preserve Star Vegas and Aristo
•	Disciplined cost control led to a reduction in
	operating expenses and corporate costs.
•	Reached monthly cash burn target of approx.
onlyA$550,000, in line with targeted range.
•	Aristo achieved positive EBITDA of A$0.30m in
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	the first three months of FY22, despite
	operating at a limited capacity due to COVID-19
	restrictions.
•	Adjusted service provider agreements for
	improved outcomes; i.e. restructured gaming
	machine arrangements, introduced retail
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	outlets and reorganised arrangements with
	junket operators.
2.	Successfully settled all legal cases with Thai
	Vendor in relation to Star Vegas

3. Mega Bank debt paid off post year end

• Loan Facility with its main lender, Mega Bank, settled on 30 December 2021 with USD$1.8m payment.
• Donaco has fully repaid the initially borrowed amount of USD$120m.
• Debt reduction as a means to preserve shareholder value.
• Despite swiftly paying down Loan Facility, Donaco maintained a healthy cash position of A$4.4 million as at 31 December 2021.

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FY21 Group Results

FY21 Group Result Summary

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Strategic initiatives executed and proactive cost control strategy to navigate through the pandemic.

However C-19 heightened in 2H FY21 resulting in revenue of A$10.32m (FY20: A$53.49m) and negative EBITDA of A$0.07m (FY20: A$10.38m).

Disciplined cost control management led to a reduction in operating expenses to A$6.92m in FY21 (FY20 A$37.55m) and to A$3.46m (FY20 A$5.49m) respectively.

Statutory net profit after tax of A$25.18m in FY21 (FY20

A$58.89m), as a result of the non-competition settlement in relation to Star Vegas.

All figures in AUD (millions)	FY21	FY20
Group Revenue	10.3	53.5
Star Vegas	9.1	39.7
Aristo International Hotel	1.2	13.7
Corporate Operations	0.0	0.0
EBITDA	(0.07)	10.3
Star Vegas	4.2	11.0
Aristo International Hotel	(0.9)	4.9
Corporate Operations	(3.5)	(5.5)
Statutory NPAT	25.2	(59.0)
Underlying NPAT1	(12.7)	(6.3)

1. Underlying NPAT excludes non-recurring items and net exchange losses.

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