ALL: 1H26 result slightly ahead; reiterated FY guidance; share buyback program +$1.0bn

Research evidence excerpt

ALL: 1H26 result slightly ahead; reiterated FY guidance; share buyback program +$1.0bn

Aristocrat Leisure Limited

Risks to rating and price target

Changes to consumer demand: Gaming machine demand tends to be driven by the financial position of the customer and general

economic conditions. A strong financial position and benign economic conditions will lead to higher demand for gaming machines

under both a Gaming Ops and Outright Sales model and vice versa.

Changes in consumer preferences: Changes in consumer preferences will influence the types of gaming machines that casino

customers will purchase.

Changes in the degree of competition: The Gaming, iGaming and Social Casino markets are very competitive and changes in the

degree of competition will influence volumes and pricing. The Social Casino sector has been impacted by competition from online

sweepstakes casinos, however, some US states are seeking to ban them, which will improve the positioning of social casino.

Changes in regulations: The gaming industry is highly regulated and changes to the regulations will influence demand across the

Gaming, iGaming and Social Casino markets.

Balance sheet: The company's net leverage ratio of 0.2x is well below the company's target range of 1.0-2.0x and there is the risk

the company could make a large scale acquisition.

Game design talent: Changes to the level of game design talent will influence the quality of product that is released and hence

the degree of success of the product.

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