Slide 1: FY17 Annual Results Announcement
FY17 Annual Results Announcement Ainsworth Game Technology Limited www.agtslots.com.au
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE This presentation has been prepared by Ainsworth Game Technology Limited ACN 068 516 665 (AGT) in good faith.No express or implied warranty is given as to the accuracy or completeness of the information in this document or the accompanying presentation. All statutory repr
Slide 3: FY17 Results exceed guidance, strong 2H growth and momentum
FY17 Results exceed guidance, strong 2H growth and momentum 3
Slide 4: Continued execution of a clear strategy
Continued execution of a clear strategy: Grow international revenues and higher quality earnings 4
Slide 5: Agenda
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 5 5
Slide 6: Key Highlights
Key Highlights FY17 Profit exceed guidance: • Profit before tax (excluding currency impacts) is $57.4m, 2.5% ahead of guidance • Excluding forex losses: NPAT $47.6m, -9% on pcp Strong 2H17 recovery: • 2H profit $42.2m, a 178% increase on the $15.2m in the first half of FY17 Continued growth in inter
Slide 7: Agenda
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Novomatic Update 10. Outlook 7
Slide 8: Profit & Loss Summary
Profit & Loss Summary Change • Profit before Tax excluding currency A$m FY17 FY16 Change (%) (%) impacts $57.4m – 2.5% ahead of Domestic revenue 74.1 81.5 ▼ (9%) guidance International revenue 208.0 204.0 ▲ 2% • Slight international sales growth Total revenue 282.1 285.5 ▼ (1%) (+2% v pcp) offsettin
Slide 9: Results Adjusted for Currency Loss / (Gain)
Results Adjusted for Currency Loss / (Gain) Change A$m FY17 FY16 Movement (%) PBT 46.9 75.1 ▼ (38%) Currency loss / (gain) (before tax) 10.5 (4.7) ▲ 323% Adjusted PBT 57.4 70.4 ▼ (18%) NPAT 37.9 55.7 ▼ (32%) Currency loss / (gain) (after tax) (1) 9.7 (3.3) ▲ 394% Adjusted NPAT 47.6 52.4 ▼ (9%) (1) C
Slide 10: Results by Half Year - Adjusted for Currency Loss / (Gain)
Results by Half Year - Adjusted for Currency Loss / (Gain) A$m 2H FY17 1H FY17 2H FY16 1H FY16 PBT 26.9 20.0 30.3 44.8 Currency loss / (gain) (before tax) 15.3 (4.8) 5.1 (9.8) Adjusted PBT 42.2 15.2 35.4 35.0 NPAT 17.3 20.6 22.6 33.1 Currency loss / (gain) (after tax) (1) 14.5 (4.8) 3.6 (6.9) Adjust
Slide 11: Reconciliation – Profit before Tax to EBITDA
Reconciliation – Profit before Tax to EBITDA Variance A$m FY17 FY16 % Reconciliation: Profit before tax 46.9 75.1 (38%) Net interest (2.4) (2.3) 4% Depreciation and amortisation 25.8 23.0 12% Reported EBITDA 70.3 95.8 (27%) Foreign currency loss / (gain) 10.5 (4.7) 323% Due diligence costs on strate
Slide 12: Operating Costs
Operating Costs FY17 FY16 Variance Sales, service and marketing 52.1 52.0 0% R&D 34.2 28.6 20% Administration 26.2 19.8 32% Total Operating costs 112.5 100.4 12% • Increase in R&D expenses primarily due to: - Evaluation and testing expenses in Americas - Establishment of LV Game Design - New Product
Slide 13: Net Profit Bridge
Net Profit Bridge (1) Calculation of ‘Currency (loss) / gain after tax’; No tax effect on $7.5m in FY17 currency loss due to change in tax treatment ($7.5m + ($3m x 0.7) = $9.7m), FY16 currency gain ($4.7m x 0.7 = $3.3m) • $15.2m decrease in forex represents a foreign currency loss of $10.5m (versus
Slide 14: Ainsworth at a Glance
Ainsworth at a Glance Revenue Breakdown by Geography Americas Game Operations - Installed Base 10% North America m Australia Participation/ Rental 28% North America 2669 i i Latin America m Latin America Participation/ Rental lm Rest of the World 36% Operational Breakdown EBITDA Breakdown 3% 8% 15%
Slide 15: Balance Sheet
Balance Sheet • Strong balance sheet to self fund A$m FY17 FY16 growth targets Cash 21.1 26.4 • 11% Return on Equity. 14% return Receivables 128.6 118.7 on equity based on normalised Other Current Assets 87.3 63.0 PAT (excludes foreign currency Total Current Assets 237.0 208.1 effects) compared to 1
Slide 16: Balance Sheet Ratios
Balance Sheet Ratios Financial covenants ratios FY17 FY16 Interest cover ratio - (EBITDA/Interest Expense) 58.28 139.12 Gearing Ratio - (Debt)/(Debt + Equity) 16.01% 17.69% Leverage Ratio - (Debt/EBITDA) 0.93 0.71 Debt ratios FY17 FY16 Debt ratio (Total Liabilities/Total Assets) 25.84% 27.55% Debt t
Slide 17: Cashflow Statement
Cashflow Statement • Decrease in Net Cash from A$m FY17 FY16 Change Operating Activities to $5.2m is a result of the timing difference of Net cash from operating activities 5.2 52.9 (47.7) receivables and an increase in Interest received 3.7 3.0 0.7 investment in working capital to Proceeds from sal
Slide 18: Agenda
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 18
Slide 19: Segment Results – North America
Segment Results – North America North America – continued strong North America position in the market: Change A$m FY17 FY16 Change (%) • Release of Pac Man Wild Edition in (%) H2 drove strong demand for Revenue 101.4 111.0 ▼ (9%) licensed software titles. Over 350 Segment Profit 44.6 49.3 ▼ (10%) on
Slide 20: US Route Market Momentum
US Route Market Momentum • FY17 resulted in the full and complete integration of the Nova Technologies acquisition completed in January 2016 • Washington: - In July, Ainsworth announced that Tulalip Resorts Casino has agreed to serve as its sponsor for required class III - central determination test
Slide 21: FY 2018 Roadmap (Class II) Game Titles
FY 2018 Roadmap (Class II) Game Titles TOTAL IN 12 NOW FY 2018 MONTHS 57 24 81 4 18 22 LAUNCH Q1 54 54 LAUNCH Q1 22 22
Slide 22: Continued Development of Top Performing Brands in North America
Continued Development of Top Performing Brands in North America Top Performing Brands • All brands listed are performing at an average index of 1.4x to 2.9x of house average 22
Slide 23: Segment Results – Latin America
Segment Results – Latin America Latin America – continued strong Latin America position in the market: Change A$m FY17 FY16 Change (%) • Impressive growth pattern in (%) revenue and units across all Revenue 78.5 74.8 ▲ 5% markets for five consecutive years Segment Profit 37.7 34.0 ▲ 11% • ASP growth
Slide 24: Latin America Market Share
Latin America Market Share 24
Slide 25: Continued Development of Top Performing Brands in Latin America
Continued Development of Top Performing Brands in Latin America Top Performing Brands • All brands listed are performing at an average index of 1.7x to 2.5x and above of house average 25
Slide 26: Agenda
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 26
Slide 27: Segment Results - Australia
Segment Results - Australia Change • Challenging period for volume and A$m FY17 FY16 Change (%) (%) revenue growth given highly Revenue 74.1 81.5 ▼ (9%) competitive market conditions and Segment Profit 24.0 29.0 ▼ (17%) minimal corporate and casino Segment Profit (%) 32% 36% ▼ (4%) sales in FY17 Uni
Slide 28: Agenda
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 28
Slide 29: Segment Results – Rest of the World
Segment Results – Rest of the World Change • Strong growth in sales +54% and A$m FY17 FY16 Change (%) (%) profit +50% Revenue 28.1 18.2 ▲ 54% • Unit volumes increased +74% Segment Profit 15.0 10.0 ▲ 50% Segment Profit (%) 53% 55% ▼ (2%) • Increased sales contribution from Unit Volume (no.) 1,807 1,0
Slide 30: Agenda
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 30
Slide 31: Gaming Products - Key Highlights
Gaming Products - Key Highlights • Developed an innovative and diverse global game portfolio comprising over 70 unique titles to be delivered in FY18 • Introduction of new cabinet - EVO • Rollout of new game development environment to facilitate rapid and flexible introduction of new innovative game
Slide 32: Gaming Products - Game Portfolio
Gaming Products - Game Portfolio • AGT’s game portfolio will have a strong focus on several new global proprietary brands that will introduce innovative game mechanics • Game portfolio will reinvigorate AGT’s classic titles including Double, Quad and Triple Shot categories • Game portfolio will intr
Slide 33: Gaming Products - Game Portfolio
Gaming Products - Game Portfolio • The investment in the Las Vegas based game studio will continue to broaden our US content with the release of several new game titles • Class II games will continue to be strengthened with the creation of unique content and leverage well known Class III titles • Re
Slide 34: Gaming Products - Cabinets
Gaming Products - Cabinets • The new dual screen cabinet, the EVO, was released at the AGE in August 2017 • The A640 will be introduced into Class II 34
Slide 35: Agenda
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 35
Slide 36: Regulatory Update
Regulatory Update Continuing strategy to deliver new jurisdictions based on detailed market assessment of commercial opportunities From 1 July 2016 to current, the AGT group has secured the following new gaming licenses: Colorado New York (commercial gaming) Kansas (permanent licence) Nova Scotia (p
Slide 37: Agenda
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 37
Slide 38: Online and Social
Online and Social Ainsworth is implementing a multichannel distribution strategy which will offer our slot content to social casinos and regulated real money gambling partners throughout UK, Europe, Australasia and the Americas. Ainsworth is aiming to release all the latest innovative products onlin
Slide 39: Agenda
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 39
Slide 40: Outlook
Outlook FY17 Profit guidance exceeded: • Profit before tax (excluding currency impacts) is $57.4m, 2.5% ahead of guidance Strong 2H17 recovery: • 2H profit $42.2m, a 178% increase on the $15.2m in the first half of FY17. Continued execution of the two key strategies: Grow international revenues and