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APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
APE macau gaming ver2
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APE macau gaming ver2

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  • 1. ASIA PIONEER ENTERTAINMENT, LTD. (APE) Business Plan Presentation Date: June 2012
  • 2. Table of Content  Introduction  Electronic Gaming Market in Macau  APE’s EGM Products  APE’s Customer Accounts  Financial Summary & Forecasts  Strategic Plans  Conclusion  Appendix
  • 3. Introduction  APE is engaged in the Electronic Gaming Machines (EGM) business in Macau.  Founded in 2004, APE is one of the most established EGM distributors in Macau.  Licensed by the Macau Gaming Board, APE is largest independent EGM distributor in Macau, selling and distributing EGM and related products to all of the licensed Gaming operators in Macau.  APE has exclusive representations with some of the largest EGM manufacturers in the world.  APE is the only independent distributor who provides full after sales and maintenance services in Macau.  The Management of APE is well respected for its knowledge of local preferences and technical developments in the EGM business.  APE is also licensed by CRA Singapore.
  • 4. Electronic Gaming Market in Macau  Macau is the largest gaming market in the world by revenue Macau Gross Gaming Revenue growth from 2005 to present (in million MOP) Data source: http://www.mgesa.org.mo/web/?action-viewnews-itemid-12176 http://www.dsec.gov.mo/Statistic.aspx This chart represents total gaming revenue including table and EGM revenues. EGM revenues generally represents 5% of total gaming revenue.
  • 5. Electronic Gaming Market in Macau  Macau is the fastest growing gaming market in the world, and the gaming market for China. Majority visitors to Macau are from China (until October 2011) Data source: http://www.mgesa.org.mo/web/?action-viewnews-itemid-12176 http://www.dsec.gov.mo/Statistic.aspx
  • 6. Electronic Gaming Market in Macau  Macau’s EGM market is small compared to its table income Data source: http://www.mgesa.org.mo/web/?action-viewnews-itemid-12176 http://www.dsec.gov.mo/Statistic.aspx EGMs revenue compared to table games from 2005 to present (in million MOP) (until September 2011) For 2011, EGM revenue is approximately 4-6% of total gaming revenue. We expect EGM revenue will grow sharply
  • 7. Electronic Gaming Market in Macau  Macau’s EGM market will continue to grow: both for new casinos openings and replacements.  One factor to support the growth of the EGM market is that the Macau government has announced that the number of betting table will be limited below 5,500 tables for the next 3 years.  Another factor is the strong growth of the mass gaming market relative to the VIP market.  The demand for EGMs would sharply increase.
  • 8. Electronic Gaming Market in Macau  Number of new EGM is expected to be over 5,000 to 10,000 over the next few years: i). Steve Wynn, Chairman & CEO of Wynn Resorts, announced that Wynn Macau’s Cotai project could break ground in 2011 and will place 1,200-1,800 slot machines on the floor. ii). Pansy Ho, Managing Director of MGM China Holdings, said in May this year that MGM China’s Cotai project application is in a very advanced stage and very promising from the Macau government. iii). Venetian’s expanding project- Cotai sites 5 and 6 resorts are already under construction, and expected to open in the first quarter of 2013 with more than 1,000 slots machines will be placed on the floor.  Replacement and parts: At least 30% increase for both Suzo-Happ and parts replacement for the machines each year due to increase of the new machines and the depreciation of the old machines.
  • 9. APE’s EGM Products  APE has exclusive representation for the following EGM manufacturer(s): Incredible Technology, Royce & Bach, Jumbo Technology, Suzo-Happ and THT.  APE has preferred distribution rights for the following EGM manufacturer(s): Konami
  • 10. APE’s Customer Accounts Customer Accounts No. of EGM SJM 336 MELCO CROWN 127
  • 11. APE’s Customer Accounts Customer Accounts No. of EGM SANDS GROUP 113 Galaxy 98 MGM 34
  • 12. Future plans APE EGM Distribution & Service Business EGM Operator Business Operator with sub-license in Macau profit sharing with Operator in S/E Asia Expand Macau Business Expand S/E Asia Market Increase product range Licensed distributor in Singapore Macau site project Increase penetration with customers Increase parts & peripherals to the Gaming industry Fast-growing market in Vietnam and Cambodian Other projects in Discussion
  • 13. Financial Summary
  • 14. Financial Forecast
  • 15. Strategic Plans – Fund-raising  APE management is seeking a strong, committed investor who would support APE’s strategic plans for the future.  Our strategic plans are as follow: 1) Continue to grow EGM distribution & service business in Macau and S/E Asia. 2) Enter into EGM operator business in Macau and S/E Asia.
  • 16. Strategic Plans – Fund-raising  APE will issue new shares to raise HK$ 25M to support the Macau site business. - 100-150 EGMs in the Macau site.  Seeking an IPO in Hong Kong within the next 2 years.
  • 17. Conclusion  APE is a profitable and established EGM company in Macau. There is no other independent distributor with the track record of APE.  The EGM market in Macau and South East Asia is expected to continue its strong growth for the foreseeable future.  APE has a well design strategic plan to significantly expand its business in the next few years. In addition to growing its EGM distribution and services business, APE has numerous opportunities to be a EGM operator in Macau & S/E Asia. These operator opportunities can bring substantial profits to APE and its shareholders.  A new investor has the opportunity to own a fast growing EGM company.
  • 18. Appendix A: RGB Comparable  RGB International Bhd. ("RGB") is an investment holding company listed on the main market of Bursa Malaysia Securities Berhad (“Bursa Securities”). RGB alongside with its subsidiaries and associate companies ("the Group") primarily engaged in: · Sales & marketing and manufacturing of electronic gaming machines & equipments · Machines concession program and technical support management · Equity investment and management of boutique casinos, hotels and clubs with gaming licenses  RGB has over 20 years of experience and expertise with operations spanning the Kingdom of Cambodia, Lao PDR, Vietnam, Singapore, Macau SAR, the Philippines and Japan. Ref: RGB international official website
  • 19. Appendix A: RGB Comparable  RGB EV/EBIDA Ratio (2007-2011) Data source: Bloomburg 2011 2010 2009 2008 2007 RGB EV/EBITDA Ratio 5.77 6.11 10.88 3.17 6.81  Average RGB EV/EBIDA ratio: 6.548.
  • 20. Appendix B: APE Valuation using EV/EBITDA multiples
  • 21. Appendix C: Macau Listed Company Comparables EV/EBITDA (For the period ending 2011-12-31) Galaxy Entertainment Group Ltd 32.94 SJM Holdings Ltd 10.21 Sands China Ltd 16.31 Wynn Macau Ltd 17 Data source: Bloomburg
  • 22. Appendix D: Valuation using DCF
  • 23.  Thank you! For further information, please contact Mr. Herman Ng at (853) 6682 2596.

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