Aristocrat Leisure (OTCPK:ARLU.F) Update / Briefing Transcript

Summary of Aristocrat Leisure's FY25 Sustainability Disclosure Conference Call Company Overview - Company: Aristocrat Leisure (OTCPK:ARLU.F) - Event: FY25 Sustainability Disclosure Conference Call - Date: December 02, 2025 Key Points Industry and Company Context - Aristocrat Leisure is focused on sustainability within the gaming industry, emphasizing responsible business practices and community engagement [2][12]. Core Sustainability Strategy - The company executed a refreshed sustainability strategy in FY25, guided by a double materiality assessment completed in FY24 [2][3]. - Identified 13 material sustainability matters managed under four strategic pillars: 1. Good governance and responsible business 2. Empowering safer play 3. Operational sustainability and climate 4. People and community [3]. Governance and Compliance - Strengthened sustainability governance to prepare for mandatory reporting requirements, including updates to board charters for climate-related risks [3][4]. - Launched an AI governance program to ensure responsible use of AI across the organization [4]. Empowering Safer Play - This is the most material sustainability issue for Aristocrat, with significant progress made in responsible gameplay initiatives [5]. - The refreshed Empowering Safer Play policy suite was developed post-acquisition of NeoGames, aiming for reaccreditation under the World Lottery Association's safer gambling standard [5]. - The "Know Your Max" campaign reached over 46 million impressions globally, promoting positive play habits [5][6]. - The FlexiPlay tool was implemented on 11,000 gaming machines, up from 4,000 in FY24, to help players manage their time and spending [7]. Operational Sustainability and Climate - Prepared climate action disclosures aligned with Australian Sustainability Reporting Standards, achieving limited assurance on Scope 1 and 2 greenhouse gas emissions [8][9]. - Transitioned to renewable electricity at key facilities, avoiding over 1,500 tons of emissions annually [9]. - Expanded hybrid vehicle fleet to 78%, avoiding approximately 330 tons of emissions in FY25 [9]. Community and Employee Engagement - Recorded a total recordable incident rate of 0.53, an increase from 0.32 the previous year, but achieved a 20% reduction in safety incidents at the Tulsa Integration Centre [10][11]. - Employee Net Promoter Score of 53, exceeding the technology sector average by 14 points, indicating high employee engagement [11]. - Contributed over $3.9 million to more than 150 non-profit organizations through the Aristocrat Cares program [12]. Challenges and Areas for Improvement - Experienced setbacks in diversity, equity, and inclusion metrics, particularly in female representation, and a slight increase in total recordable incidents [18]. - Acknowledged the complexity of the audit process as a challenge in achieving sustainability goals [18]. Future Outlook - FY26 will see sustainability reporting integrated into the annual reporting cycle, with a focus on continuous improvement and accountability [12]. Additional Insights - The company emphasizes the importance of community well-being alongside business success, reflecting a commitment to long-term sustainability goals [12]. - The integration of sustainability metrics into financial processes indicates a strategic alignment between sustainability and overall business performance [16].