Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — Shareholder Meeting (November 2015)
30 slides from Ainsworth Game Technology's shareholder meeting presentation, Nov 17, 2015
Slide 1: 2015 Annual General Meeting
For personal use only 17th November 2015
Slide 2: Agenda
For personal use only Agenda • Welcome • Executive Chairman’s Address • Chief Executive Officer’s Overview including proposed Nova acquisition • Annual General Meeting 2
Slide 3: Executive Chairman's Address
For personal use only Executive Chairman’s Address Presentation by Len Ainsworth 3
Slide 4: Historical Performance – AUD (M)
For personal use only Historical Performance – AUD (M) (Fiscal years ended June 30) Domestic Revenue International Revenue Profit/(Loss) After Tax (PAT) 100.8 147.6 73.7 47.5 143.3 124.4 103.1 23.3 93 70.4 21 74.7 61.6 52.2 48.3 46.2 14.8 (2.7) FY10 FY11* FY12* FY13 FY14 FY15 *Note: Normalised net p
Slide 5: Proposed Acquisition of Nova Technologies LLC
For personal use only Proposed Acquisition of Nova Technologies LLC “Significant and accretive entry into complementary US Class II gaming market” • Combination creates increased presence across US Class II and Class III gaming markets. • Nova has a certified and proven Class II Bingo Server and an
Slide 6: Ainsworth North America Headquarters, Las Vegas
For personal use only Ainsworth North America Headquarters, Las Vegas - OPENING 2H FY16 Building a larger presence and profile in the Americas 6
Slide 7: Heather Scheibenstock, New Independent Non-executive Director
For personal use only Heather Scheibenstock New Independent Non-executive Director • Significant experience in the local and international gaming and leisure industries. • Senior roles at Echo Australia and Solaire Group. • Special expertise in strategic planning and offshore growth to complement th
Slide 8: 2016 – Another Progressive and Prosperous Year for Ainsworth
For personal use only 2016 – Another Progressive and Prosperous Year for Ainsworth Continuing focus on the execution of our strategies: • New products such as the A600™. • New games and technologies to leverage across our platforms. • New jurisdictions and licenses. • Nova; complementary and accreti
Slide 9: Chief Executive Officer's Overview
For personal use only Chief Executive Officer’s Overview Presentation by Danny Gladstone 9
Slide 10: 2015 Financial Highlights
For personal use only 2015 Financial Highlights REPORTED PROFIT BEFORE TAX OF $94 million (2014: $82 million) REPORTED NPAT of $70 million (2014: $62 million) EPS of $0.22 per share (2014: $0.19 per share) EBITDA up 20% to $108 million R&D as percentage of revenue maintained at 11% STRONG Balance Sh
Slide 11: Breakdown of Sales and Profit by Region
For personal use only Breakdown of Sales and Profit by Region, $M FY15 FY15 SEGMENT SEGMENT REVENUE RESULTS Well established in international markets, with momentum for further growth 11
Slide 12: 2015 Annual General Meeting
2015 ANNUAL GENERAL MEETING Neon,
Slide 13: US Market Brands
For personal use only US Market Brands 13
Slide 14: Proposed Acquisition of Nova Technologies LLC
For personal use only Proposed Acquisition of Nova Technologies LLC 14
Slide 15: Nova Technologies LLC Summary
For personal use only Nova Technologies LLC Summary • Opportunity to enter a significant market that we are currently not in. Consistent with strategy to build presence in key Americas market and higher quality of earnings through increased participation. • Recurring revenues from around 1,300* unit
Slide 16: Nova Technologies LLC Deal Details
For personal use only Nova Technologies LLC Deal Details • US$38,000,000 Consideration paid in full, in cash on close. • Funded through operating cash flow and new multi-currency credit facility. • Subject to regulatory approval. Completion expected Q1 CY16. • Effective multiple between 8.1-8.5 X Tr
Slide 17: Nova Technologies LLC Background
For personal use only Nova Technologies LLC Background Founded: 2004 Locations: Greenville, South Carolina & Tulsa, Oklahoma Employees: 23 (AGI expects full continuity of employees) Products 1. Class II Bingo Server-NIGC CERTIFIED 2. 30+ Unique game titles offered in Class II 3. Progressive System C
Slide 18: Nova Technologies LLC Install Base
For personal use only Nova Technologies LLC Increases the Ainsworth install base to over 4,300 units making us a major player in the Americas. Route Units Region Oct 2015 North America 1,442 Latin America 1,645 Nova 1,299 * Total Route 4,386 * Expected to be over 1,300 units at completion Provides a
Slide 19: Market presence across all major Class II jurisdictions
For personal use only Nova Technologies LLC Market presence across all major Class II jurisdictions 19
Slide 20: Class II Market Size
For personal use only Nova Technologies LLC Class II Market Size ~56,000 units * Market data obtained from Eilers Slot Install Base 2Q15 report. 20
Slide 21: Class II Historical Market Growth
For personal use only Nova Technologies LLC Class II Historical Market Growth • We expect Class II gaming to remain a stable to growing market segment given: 1. The favorable tax treatment at Native America Casinos for Class II Devices. (Zero Tax). 21
Slide 22: Nova Technologies LLC Market Transactions
For personal use only Nova Technologies LLC Market Transactions 22
Slide 23: Online
For personal use only ONLINE Ainsworth delivers a broad range of math and game features and our exciting and engaging games consistently deliver way above house average. To date we have developed over 25 HTML5 games for multi- channel release on desktop, mobile and tablet. For the very first time, A
Slide 24: Players Paradise and King Spin Online Social Casinos
For personal use only Players Paradise and King Spin Online Social Casinos 24
Slide 25: FY16 Outlook
For personal use only FY16 OUTLOOK • Revenue growth • Driven by good growth in international markets and market share gains in Australia, we expect continued strong revenue growth for the half and full year. • Margins • Temporary margin decline due to currency inflated componentry costs, scale benef
Slide 26: Financial Statements and Reports
For personal use only Financial Statements and Reports To receive and consider the Annual Financial Report including the Directors’ and Auditor’s Reports in respect of the financial year ended 30 June 2015. 26
Slide 27: Resolution: Re-election of Director, MB Yates
For personal use only Resolution 1 Re-election of Director, MB Yates To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Michael Bruce Yates, who retires in accordance with Rule 7.1(f) of the Company Constitution and ASX Listing Rule 14.4, and being
Slide 28: Resolution: Remuneration Report
For personal use only Resolution 2 Remuneration Report To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That the Remuneration Report for the Company required by Section 250R(2) of the Corporations Act 2001 (Cth), which is included in the Directors’ Report
Slide 29: Resolution: Grant of Performance Share Rights to the CEO
For personal use only Resolution 3 Approval for the Grant of Performance Share Rights to the Chief Executive Officer To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That for the purpose of the ASX Listing Rules 7.1 and 10.14, as well as sections 200B and
Slide 30: Ainsworth Game Technology contact details
NSWORTH EXPERIENCE COUNTS” AINSWORTH GAME TECHNOLOGY ABN: 37 068 516 665 10 Holker Street, Newington New South Wales, Australia 2127 T. +61 2 9739 8000 F. +61 2 9648 4327 www.ainsworth.com.au
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