Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — Shareholder Meeting (May 2024)
41 slides from Ainsworth Game Technology's shareholder meeting presentation, May 29, 2024
Slide 1: 2024 Annual General Meeting Addresses to Shareholders and Presentation
Ainsworth Game Technology Ltd ABN 37 068 516 665 10 Holker Street, Newington NSW 2127 Tel: +61 2 9739 8000 www.agtslots.com 29 May 2024 ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 ELECTRONIC LODGEMENT 2024 Annual General Meeting (AGM) Addresses to Shareholders an
Slide 2: 2024 Annual General Meeting Addresses
Ainsworth Game Technology Ltd ABN 37 068 516 665 10 Holker Street, Newington NSW 2127 Tel: +61 2 9739 8000 www.agtslots.com.au 29 May 2024 ASX Release ASX Code: AGI AINSWORTH GAME TECHNOLOGY LIMITED 2024 ANNUAL GENERAL MEETING ADDRESSES NON-EXECUTIVE CHAIRMAN (Presented by Mr Danny Gladstone) Ladies
Slide 3: Group underlying EBITDA and regional performance
Group underlying EBITDA (adjusted for currency and one-off items) reported for the year ended 31 December 2023 was $59 million, a modest increase of 5.7% on the $55.8 million in the PCP. These results reflect the planned increase of 25% in Research and Development (R&D) expenses and the focus on ens
Slide 4: Dividend payments and balance sheet
determined, the Board maintains its commitment to review the recommencement of dividend payments to our shareholders. As we have highlighted, our priority remains to maintain a strong balance sheet to self-fund our growth strategies and product investments. We have implemented processes to ensure im
Slide 5: Results Summary
Underlying EBITDA for the period was $59 million, an increase of 6% on the PCP with the second half contributing $28 million broadly consistent with the first half of the 2023 year. Profit Before Tax (PBT), excluding currency impacts and one-off items, was $41.5 million in the period. This resulted
Slide 6: North America
continues to implement measures focusing on technology, development, and culture to improve product performance, lift staff retention rates and enhance AGT’s ability to attract world class development talent. North America continued to perform strongly with revenue in the period of $140.4 million, a
Slide 7: Asia Pacific and domestic revenue
impairment purposes, despite the generation of increased participation revenue prior to the potential conversion to sale. As you will note we have now consolidated Australia, New Zealand, and Asia under the one region as a result of changed management responsibilities introduced in the period. Asia
Slide 8: Product development and R&D
As I have previously communicated, to ensure continued growth and to sustain our performance, measures introduced are having the desired effects and we are seeing improvements in the outputs of our R&D investments which is expected to lift the competitiveness of our product and provide growth opport
Slide 9: Annual General Meeting 2024
2024 ANNUAL GENERAL MEETING 29 MAY 2024 AINSWORTH GAME TECHNOLOGY LIMITED
Slide 10: Agenda
AGENDA 1. Welcome 2. Introduction of Board of Directors 3. Chairperson’s Address 4. Chief Executive Officer’s Address 5. Formal Business 6. Other Business 2
Slide 11: Board of Directors
Board of Directors • Significant scale, footprint and excellent market reputation. • Re-evaluation and focus on investment in R&D to drive growth. • Achieve growth opportunities in established and new markets. • Disciplined M&A strategy to drive earnings growth. ANNUAL GENERAL MEETING 29 MAY 2024 3
Slide 12: Chairperson's Address
CHAIRPERSON’S ADDRESS Presentation by DANNY GLADSTONE
Slide 13: Results Summary
Results Summary • Profit before Tax excluding currency and one-off items, of $41.5m for the 12 months ended December 2023 (“Current period”), an improvement of 10% compared to the 12 months ended 31 December 2022 (“PCP”). • North America continues to be the strongest segment performer, contributing
Slide 14: Game Development Investments
Game Development Investments Clear Product Strategy • Expanding the A-STAR Raptor launch throughout the year with exclusive library content and flexibility to bring forward classic games for increased operator choice. • Continue on globalisation utilising key tentpole products – San Bao , Grand Fort
Slide 15: Game Operations
Game Operations with recurring revenues and steady international sales contribution ANNUAL GENERAL MEETING 29 MAY 2024 7
Slide 16: Balance Sheet
Balance Sheet Debt Ratios 31-Dec-23 31-Dec-22 Debt ratio (Total liabilities / Total assets) 25% 25% Debt to equity ratio (Total liabilities / Total equity) 33% 33% Cash flow to debt ratio - (Cash flow from operating 27% 15% activities / Total liabilities) In millions of AUD 31-Dec-23 31-Dec-22 Total
Slide 17: Chief Executive Officer's (CEO) Address
CHIEF EXECUTIVE OFFICER’S (CEO) ADDRESS Presentation by HARALD NEUMANN
Slide 18: Game Development Investments
Game Development Investments Growth in R&D Pipelines • Launching of new Unity engine into Class III and Class II markets in North America and LATAM • Continuing investments on Next-Gen math builder, improved support for new rapid prototyping, game features, analytics and profiling. • Focused investm
Slide 19: Profit & Loss Summary
Profit & Loss Summary 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Domestic revenue 39.8 45.4 (5.6) 23.2 International revenue 245.1 198.2 46.9 100.9 Total revenue 284.9 243.6 41.3 124.1 Gross profit 175.3
Slide 20: Reconciliation: Profit Before Tax to EBITDA & Underlying EBITDA
Reconciliation: Profit Before Tax to EBITDA & Underlying EBITDA 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Reconciliation: Profit Before Tax 2.6 9.2 (6.6) 7.3 Net interest income (6.3) (4.1) (2.2) (3.3) D
Slide 21: Results Adjusted for Currency Movement and One-off Items
Results Adjusted for Currency Movement and One-off Items 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Profit Before Tax 2.6 9.2 (6.6) 7.3 Foreign currency losses / (gains) 21.5 (2.6) 24.1 2.1 GAN exclusivit
Slide 22: Operating Costs
Operating Costs 12 months 12 months 6 months 12 months to ended ended ended 31 Dec 2023 CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 at CY22 currency In millions of AUD (CY23) (CY22) (H2 CY22) basis COGS 109.6 92.7 16.9 44.4 106.4 Sales, service and marketing ('SSM') 64.5 58.1 6.4 31.1 62.1 R&D
Slide 23: Staff Headcount
Staff Headcount # Staff 31-Dec-23 30-Jun-23 31-Dec-22 Australia and Rest of the World Sales 32 31 31 Service 56 56 51 Production 31 30 26 Administration 21 22 22 R&D 98 96 97 Total Staff Numbers - Australia & Rest of the World 238 235 227 Americas Sales 30 27 31 Service 64 63 61 Production 58 58 53
Slide 24: North America
North America 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Revenue 140.4 120.2 20.2 59.7 Gross Profit 94.8 82.2 12.6 43.4 Segment EBITDA 78.5 70.5 8.0 36.7 Segment Profit 65.0 59.3 5.7 30.9 Segment Profit (
Slide 25: Key Market Highlights
Key Market Highlights NORTH AMERICA • A-STAR Raptor Cabinet launched in US in late December 2023. Current metrics from Eilers Report show it is the #1 Performing New Upright Cabinet in the market with performance above 2.5x. Cabinets released in select markets only with full release in Q1-Q2 2024. •
Slide 26: Latin America & Europe
Latin America & Europe 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Revenue 80.1 63.4 16.7 33.1 Gross Profit 50.0 40.2 9.8 21.8 Segment EBITDA 32.3 19.7 12.6 9.7 Segment Profit 33.1 21.1 12.0 10.4 Segment P
Slide 27: Key Market Highlights
Key Market Highlights LATIN AMERICA • A-STAR Series cabinet has over 2,000 recurring revenue units in market performing on average 1.31x in route. • Xtension Link in our link library still one of top performing products in market. • Newly released Eilers LATAM market report, Ainsworth held the #1 an
Slide 28: Asia Pacific (Australia, NZ and Asia)
Asia Pacific (Australia, NZ and Asia) 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Revenue 48.8 47.7 1.1 24.9 Gross Profit 14.9 15.5 (0.6) 8.0 Segment EBITDA 4.1 6.6 (2.5) 3.1 Segment Profit 3.4 5.1 (1.7) 2
Slide 29: Key Market Highlights
Key Market Highlights Asia Pacific • Grand Fortune continues to show solid and consistent performance across NSW and QLD with over 1,200 installs and above floor performance after 12 months. The brand now consists of six games and will shortly be released in the Philippines • The new A-STAR 100 cabi
Slide 30: Online
Online 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Revenue 15.6 12.3 3.3 6.4 Gross Profit 15.6 12.3 3.3 6.4 Segment EBITDA 14.0 10.8 3.2 5.5 Segment Profit 14.0 10.8 3.2 5.5 Segment Profit (%) 90% 88% 2% 8
Slide 31: B2B Real Money Gaming (RMG)
B2B Real Money Gaming (RMG) Ainsworth Interactive delivered on its 2023 online game development commitments with our US exclusive partner GAN. This partnership has driven Ainsworth’s growth in the US iGaming segment by expanding distribution of our global omni-channel product portfolio with online c
Slide 32: Cash Flow Statement
Cash Flow Statement • Cash balance as at 31 December 2023 was affected by payments for investments in Argentina to hedge the rapid devaluation of Pesos against USD. • Improvement in operating activities cash flow driven by discipline working capital management. 12 months 12 months 6 months ended end
Slide 33: Conclusion
CONCLUSION We
Slide 34: Conclusion
Conclusion • Good momentum and expected PBT (excluding currency and one-off items) for the six months ending 30 June 2024 within the range of $13 million - $15 million. • Earnings uplift expected across key markets in the second half of FY24 compared to the first half. • AGT’s North American busines
Slide 35: Formal Business
FORMAL BUSINESS
Slide 36: Financial Statements and Reports
Financial Statements and Reports To receive and consider the Annual Financial Report, including the Director’s and Auditor’s Reports in resect of the financial year ended 31 December 2023. • Significant scale, footprint and excellent market reputation. In attendance is Mr David Sartorio from Deloitt
Slide 37: Resolution 1: Re-election of Daniel Eric Gladstone
Resolution 1 Re-election of Mr. Daniel Eric Gladstone, as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: • Significant “That Mr. Daniel Eric Gladstone, scale, who retires in footprint and excellent accordance market with Rule reputation. 7.1(f)
Slide 38: Resolution 2: Election of Colin John Henson
Resolution 2 Election of Dr. Colin John Henson, as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Colin John Henson, • whoSignificant retiresscale, footprint and excellent in accordance with Rulemarket reputation. 7.1(f) of the Company
Slide 39: Resolution 3: Approval of Remuneration Report
Resolution 3 Approval of Remuneration Report To consider, and if thought fit, to pass the following resolution as an ordinary resolution: • Significant scale, footprint and excellent market reputation. “That the Remuneration Report for the Company required by section 250R(2) of the Corporations Act
Slide 40: Other Business
OTHER BUSINESS
Slide 41: Ainsworth Game Technology Limited
AINSWORTH GAME TECHNOLOGY Limited 10 Holker St, Newington NSW www.agtslots.com
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