Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — FY2022 Earnings Presentation
32 slides from Ainsworth Game Technology's earnings presentation, Aug 30, 2022
Slide 1: FY22 Investor Presentation
FY22 Investor Presentation August 30, 2022 Ainsworth Game Technology Limited ABN 37 068 516 665 | ASX Code: 1 AGI
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 r
Slide 3: Agenda
Agenda • Results Summary WELCOME • Consolidated Results • Segment Performance • Land Based Gaming Products • Online • Conclusion 3
Slide 4: Results Summary
Results Summary 4
Slide 5: Results Summary
Results Summary • Improved performance in FY22 compared to FY21, Latin America in particular, demonstrated strong recovery from the pandemic. • North America segment contributed 52% of total revenue. HHR products continue to perform. • Signs of recovery in Latin America region contributing to the Gr
Slide 6: Gaming Operations with recurring revenues and growing international sales contribution
Gaming Operations with recurring revenues and growing international sales contribution 6
Slide 7: Consolidated Results
Consolidated Results 7
Slide 8: Profit & Loss Summary
Profit & Loss Summary FY22 In millions of AUD H1 FY22 H2 FY22 FY22 FY21 vs FY21 Domestic revenue 16.7 22.2 38.9 39.0 (0.1) International revenue 84.0 97.3 181.3 120.5 60.8 Total revenue 100.7 119.5 220.2 159.5 60.7 Gross profit 63.0 75.0 138.0 89.6 48.4 EBITDA 24.6 12.5 37.1 (26.6) 63.7 EBITDA Margi
Slide 9: Results Adjusted For Currency Movement and One-off Items
Results Adjusted For Currency Movement and One-off Items FY22 In millions of AUD H1 FY22 H2 FY22 FY22 FY21 vs FY21 Profit / (Loss) Before Tax 13.9 1.9 15.8 (59.2) 75.0 Foreign currency (gains) / losses (3.5) (4.7) (8.2) 11.5 (19.7) Impairment (writeback) / losses on receivables - (1.5) (1.5) 9.0 (10
Slide 10: Reconciliation: Profit / (Loss) Before Tax to EBITDA & Underlying EBITDA
Reconciliation: Profit / (Loss) Before Tax to EBITDA & Underlying EBITDA FY22 In millions of AUD H1 FY22 H2 FY22 FY22 FY21 vs FY21 Reconciliation: Profit / (Loss) Before Tax 13.9 1.9 15.8 (59.2) 75.0 Net interest (income) / expense (0.1) (0.8) (0.9) 1.3 (2.2) Depreciation and amortisation 10.8 11.4
Slide 11: Operating Costs
Operating Costs FY22 FY22 FY22 In millions of AUD H1 FY22 H2 FY22 FY22 at pcp currency FY21 vs vs basis FY21 FY21 % COGS 37.7 44.5 82.2 80.6 69.9 12.3 17.6% Sales, service and marketing ('SSM') 25.0 30.8 55.8 54.5 46.2 9.6 20.8% R&D 18.0 17.3 35.3 34.8 33.4 1.9 5.7% Administration 10.9 10.1 21.0 20.
Slide 12: Staff Headcount
Staff Headcount # Staff 30-Jun-21 31-Dec-21 30-Jun-22 Australia and Rest of the World Sales 33 31 23 Service 56 48 54 Production 28 28 26 Administration 30 28 29 R&D 110 99 90 Total Staff Numbers - Australia & Rest of the World 257 234 222 Americas Sales 28 29 32 Service 49 51 59 Production 36 38 46
Slide 13: Net Profit Bridge - FY22 vs FY21
Net Profit Bridge - FY22 vs FY21 • Revenue increased due to market recovery in Latin America and strong performance from North America. Improvements in gaming operations revenue driven by Latin America segment and service revenue driven by recurring HHR connection fees. • $22.8m increase in overhead
Slide 14: Balance Sheet
Balance Sheet In millions of AUD 31-Dec-21 30-Jun-22 30-Jun-21 Total assets 381.4 406.5 393.1 Net assets 301.7 311.3 287.9 Total debt 14.1 - 37.3 Net cash 32.2 50.3 5.1 Debt Ratios 31-Dec-21 30-Jun-22 30-Jun-21 Debt Ratio (Total Liabilities/Total Assets) 20.9% 23.4% 26.8% Debt to Equity Ratio (Total
Slide 15: Cash Flow Statement
Cash Flow Statement • Strong cash flows, along with effective management of operational expenses, resulted in cash held at the reporting date, an increase of 19% compared to the pcp, and 9% increase in H2 FY22 compared to the prior half. FY22 In millions of AUD H1 FY22 H2 FY22 FY22 FY21 vs FY21 Net
Slide 16: Segment Performance
Segment Performance 16
Slide 17: North America
North America FY22 In millions of AUD H1 FY22 H2 FY22 FY22 FY21 vs FY21 Revenue 54.6 60.5 115.1 88.5 26.6 Gross Profit 36.8 42.1 78.9 60.1 18.8 Segment EBITDA 28.4 33.8 62.2 50.8 11.4 Segment Profit 23.1 28.4 51.5 39.1 12.4 Segment Profit (%) 42% 47% 45% 44% 1% Unit Volume (no.) 1,175 1,122 2,297 1,
Slide 18: MTD Gaming
MTD Gaming • Nevada approval has been received and the feedback received during field trial will allow us to better adapt games for the market. • Our latest game set combines the best in class games from both Ainsworth and MTD. It has been released in South Dakota and is leading the market. • Sales
Slide 19: Latin America
Latin America FY22 In millions of AUD H1 FY22 H2 FY22 FY22 FY21 vs FY21 Revenue 22.2 30.0 52.2 18.3 33.9 Gross Profit 15.0 19.4 34.4 11.1 23.3 Segment EBITDA 9.3 10.0 19.3 (4.3) 23.6 Segment Profit / (Loss) 10.0 10.8 20.8 (8.6) 29.4 Segment Profit / (Loss) (%) 45% 36% 40% (47%) 87% Unit Volume (no.)
Slide 20: Australia
Australia FY22 In millions of AUD H1 FY22 H2 FY22 FY22 FY21 vs FY21 Revenue 16.7 22.2 38.9 39.0 (0.1) Gross Profit 6.6 7.4 14.0 10.6 3.4 Segment EBITDA 3.8 3.6 7.4 5.4 2.0 Segment Profit 3.3 2.9 6.2 2.4 3.8 Segment Profit (%) 20% 13% 16% 6% 10% Unit Volume (no.) 591 781 1,372 1,165 207 ASP (ex rebui
Slide 21: Rest of the World (including Online)
Rest of the World (including Online) FY22 In millions of AUD H1 FY22 H2 FY22 FY22 FY21 vs FY21 Revenue 7.2 6.8 14.0 13.7 0.3 Gross Profit 4.7 6.0 10.7 7.8 2.9 Segment EBITDA 4.1 5.2 9.3 7.1 2.2 Segment Profit 4.0 5.1 9.1 6.6 2.5 Segment Profit (%) 56% 75% 65% 48% 17% Unit Volume (no.) 63 30 93 324 (
Slide 22: Land Based Gaming Products
Land Based Gaming Products 22
Slide 23: Key Market Highlights
Key Market Highlights NORTH AMERICA • HHR growth continues – 400 units sold to Kentucky Downs in the current period, installed base expected to increase in new and existing markets. • First manufacturer to install HHR units in newly opened New Hampshire market with focus on leveraging system capabil
Slide 24: Key Market Highlights
Key Market Highlights LATIN AMERICA • Demand continues to grow for the new A-STARTM cabinets. • Pan ChangTM, Fiesta GrandeTM, Rio Grande Los ToritosTM and Multi-Win GamesTM remain top-performing products. 24
Slide 25: Key Market Highlights
Key Market Highlights AUSTRALASIA • Strong installs backed by solid performance of Cash StacksTM and Treasure SpiritsTM in multiple markets. • Launch of new Ultra ShotTM Series. • Introduction of the new A-STARTM Slant cabinet at AGE 2022. 25
Slide 26: Game Development Investments
Game Development Investments Global • Key investments in Ainsworth R&D for our game development. • Added a new CTO in October 2021. • New game development studio leadership in Australia. • Graphics, Math, and Sound improvements across all roadmaps. • Balanced portfolio development with focus on incr
Slide 27: Online
Online 27
Slide 28: B2B Real Money Gaming (RMG) & Social Casinos
B2B Real Money Gaming (RMG) & Social Casinos Ainsworth Interactive has now established itself as a leading Real Money Gaming (RMG) online content supplier throughout the licensed and regulated markets in the USA, Latin America and Europe. We have over 100 games approved on our remote gaming servers
Slide 29: B2B Real Money Gaming (RMG)
B2B Real Money Gaming (RMG) USA LATIN AMERICA EUROPE 29
Slide 30: Conclusion
Conclusion 30
Slide 31: Conclusion
Conclusion • Revenue improvements across all major markets. AGT enters the second half of calendar year 2022 with good momentum and expects to have continued growth in North America, further improvements in Latin America markets and steady performance from Australia. • Risk mitigation strategies put
Slide 32: Ainsworth Game Technology
Ainsworth Game Technology 10 Holker St, Newington NSW www.agtslots.com *All trademarks, logos and brand names are the properties of their respective owners 32
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