Games Workshop Group PLC

1
Games Workshop Group PLC

• Full year results to 29 May 2005

2
Business model

• Games Workshop sells the love of a hobby and
  then nurtures (services) it
• It has a subscription model of sales
• It operates in a unique, separate niche
• Niches have loyal customers so long as they
  receive high quality products and services
• It is fundamentally cash generative

3
Financial summary

• Underlying business healthy downturn in LotR
  sales
• Sales down 15m at 137m
• Short-term consequential dip in H2 gross margin
• Operating profit down 6m to 14m
• Tax rate 36
• EPS down 12.6p to 28.2p per share
• Maintained final dividend of 14.025p (full year
  18.975p)

4
Financial summary

• Fixed asset investment 2005
  2004 m m
• Shopfits - new existing stores 1.9
  3.0
• Production equipment tooling 4.0
  2.7
• Computer equipment software 2.0
  2.8
• Office facilities
  1.9 1.2
• Building developments - Nottingham 2.5 5.1
• 
  12.3 14.8
• Stock levels tightly controlled
• Cash ungeared balance sheet
• Currency translation effect not significant

5
Turnover and operating profit
m(pre-exceptional)

6
Sales analysis sales by sales operation (cc
constant currency) and by channel of distribution
Continental Europe -1.8m (cc-1.6m)
UK -8.1m
Asia Pacific (Oz) -0.9m (cc -0.7m)
The Americas -4.4m (cc -3.0m)

Direct 9
Independent retailers 45
GW Hobby stores 46
GROUP
Continental Europe 04/05
PY 59.5 61.3 15.4
19.9
United Kingdom 04/05 PY 40.2 48.2
7.1 11.4
The Americas 04/05 PY
28.7 33.1 0.4 (0.8)
Asia Pacific 04/05 PY 8.3
9.1 1.0 0.8
Sales m Operating Profit m
7
Long-term growth business
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Summary

• Short term, product related, sales decline
• Great market opportunities great products
• Well invested, leaner organisation
• Long term growth potential