Business Summary Aristocrat Leisure Limited (ALL) operates as a developer, manufacturer and distributor of gaming content, platforms and systems in Australia, New Zealand, Americas, Japan and Rest of World. ALL also operates within the on-line social gaming and real money wager markets. Games: Games are developed on a continuous basis. Some of the latest games include 5 Dragons Legends, Queen Of The Nile Legends, Panda Paradise Quick Fire, The Red Empress, Sparkling Royal Jackpot Streak, Electric Boogaloo Quick Fire, Sun King, The White Wizard, and Superman. Systems: (i) Oasis 360 is the casino management system which manages slot accounting, pit accounting and player tracking. The system provides customers with: online real-time tracking of events; a graphical user interface that provides a visual representation of the casino floor; and faster performance, with immediate access to information for improved customer service. (ii) System 7000 Prime comprises of flexible gaming management modules that provides a comprehensive cohesive integrated functionality supporting Cage, Table and EGM Management operations. Online: ALL have extended its product strategy into mobile, both via Oasis 360/ nLive as well as through the acquisition of Product Madness, a leader in the fast-growing online social casino market. Its digital strategy includes: (i) nLive solution offers land-based operators a turn-key solution for providing their players with a 'virtual casino' online; (ii) to distribute its content in the North American and European real money gaming markets through nCube, the remote game server, and through selected platform partners; and (iii) social and mobile gaming via Product Madness enables the group to distribute virtual currency content. Acquisition: Aristocrat Leisure Limited has acquired an social gaming company Big Fish Games from Churchill Downs. Big Fish is a provider of social casino content and meta-game applications. Latest Research Well attended investor day a perfect warm up for the 1H result Investor day well attended – Whilst ALL’s investor day in Sydney came without specifics around financials/guidance (not that we were expecting any), commentary around group strategy, end markets, digital insights and exposure to divisional mgmt was sufficient to appease the sizable crowd in our view - if ever there was a time when investor turnout was positively correlated to outlook, this was it. For more information see research 02 May 2018. GICS - Consumer Serv Aristocrat Leisure Limited ASX Code: ALL Price: $32.19 12 Mth Target Price: $36.00 Rating: Buy Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investment objectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement with Bell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell Potter Securities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate. Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document. This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is general investment advice only and does not constitute advice to any person. Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in this commission. Bell Potter Securities and its associates may hold shares in the companies recommended. Snapshot Date Market Cap. Shares on issue 12 Month High 12 Month Low 6 August 2018 $20,555m 638.5m $33.06 $19.92 Rating Rating 12 Mth Target Price Capital Gain Gross Yield Implied Total Return Buy $36.00 12.5% 3.1% 15.6% Investment Fundamentals FYE 30 Sep 2017A 2018F 2019F 2020F Profit $m 543.0 779.0 966.0 1,146.0 Profit (norm)* $m 543.0 779.0 966.0 1,146.0 EPS* ¢ 85.0 122.0 151.0 179.0 EPS Growth % 37.1 43.5 23.8 18.5 P/E* x 37.7 26.2 21.2 17.9 P/E Relative % 0.0 0.0 0.0 0.0 DPS ¢ 34.0 48.0 92.0 107.0 Yield % 1.1 1.5 2.9 3.3 Franking % 59.0 25.0 25.0 25.0 * Adjusted for goodwill and unusual items Source: Based on Citi estimates Share Price Chart Total Return on $10,000 Investment