Entertainment Gaming Asia — Elixir Gaming Technologies — Investor Presentation (January 2010)
20 slides from Entertainment Gaming Asia's investor presentation, Jan 13, 2010
Slide 1: Elixir Gaming Technologies (NYSE Amex: EGT) January 13, 2010
(NYSE Amex: EGT) January 13, 2010
Slide 2: Safe Harbor Language
2 Safe Harbor Language Forward Looking Statements: This presentation contains forward-looking statements concerning Elixir Gaming within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking sta
Slide 3: Table of Contents
3 Table of Contents Company Background Business Divisions Management Team Business Expansion Financial Information Investment Considerations
Slide 4: Company Background: Company Overview
4 1. Company Background 1.1 Company Overview Elixir Gaming Technologies, Inc. (“Elixir Gaming” or the “Company”) operates under two business divisions. Primary business is the placement of gaming machines on a revenue share (participation) model in resorts, hotels, and other venues in emerging gamin
Slide 5: Company Background: Business Model Redefined
5 1. Company Background 1.2 Business Model Redefined Refocused gaming contracts Focus on quality not quantity. Implemented dramatic cost rationalization As of the third quarter of 2009, Elixir Gaming had reduced cash SG&A expense to $1.5 million for the quarter, a decline of 61% from the year-ago pe
Slide 6: Business Model Redefined: Asset valuation review
6 1. Company Background 1.2 Business Model Redefined Asset valuation review On January 6, 2010, Elixir Gaming announced, as the last step of its business model refinement, it is in the final stages of its annual valuation review of its gaming machine assets and anticipates recording a non-cash impai
Slide 7: Core Business Division: Gaming Participation
7 2. Business Divisions 2.1 Gaming Participation Business (Core Business Division) Elixir Gaming’s gaming participation business operates under the participation model, which has an average revenue share of approximately 22%. The Company’s participation model offers significant benefits. Recurring r
Slide 8: Pro forma scenarios by WUD and seats
8 2. Business Divisions 2.1 Gaming Participation Business (Core Business Division) Pro forma scenarios: Scenario 1: WUD of $100 (1) Gaming Machine Seats on Participation (2) 1,500 2,000 2,500 Elixir Gaming Revenue Share 22% 22% 22% Annual Revenues (in millions) $12.0 $16.1 $20.1 Cash COGS (in millio
Slide 9: The Market: Cambodia
9 2. Business Divisions The Market Gaming market historically centered on Phnom Penh, which targets tourists (over 2 million estimated visitors in 2008) and large population of foreign passport holders living in the area. Elixir Gaming focuses on NagaWorld, which holds the exclusive casino license i
Slide 10: Cambodia: Average WUD Performance at NagaWorld
10 2. Business Divisions 2.1.1 Gaming Participation Business - Cambodia Average WUD Performance at NagaWorld Operations Average WUD $250 $225 $200 $175 $150 $125 $100 $75 $50 $25 Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2009 $167 $39 $163 $218 $204 $216 $236 $129 $153 $201 $231 Electronic gaming
Slide 11: Cambodia: New NagaWorld Contract
11 2. Business Divisions 2.1.1 Gaming Participation Business - Cambodia New NagaWorld Contract On December 30, 2009, Elixir Gaming and NagaWorld entered into a new agreement for the addition of 200 electronic gaming machines in a prime area of the casino floor AND to consolidate the terms of all the
Slide 12: The Market: Philippines
12 2. Business Divisions The Market Philippines is the fifth largest country in Asia. Gaming growth is driven by emerging affluent and middle classes with strong propensity for gaming. Strong regulated market with growing gaming acceptance. Elixir Gaming focuses on Greater Manila, Clark special econ
Slide 13: Philippines: Average WUD Performance
13 2. Business Divisions 2.1.2 Gaming Participation Business - Philippines Overall stable growth as venues mature and despite temporary dilutive impact to average WUD when new venues are added and seasonal factors. Severe adverse weather conditions from eventful typhoon season resulted in weakness t
Slide 14: Gaming Chips Business
14 2. Business Divisions 2.2 Gaming Chips Business Through Elixir Gaming’s wholly-owned subsidiary in Melbourne, Dolphin, the Company is one of the few manufacturers providing both traditional and RFID* gaming chips to casinos around the globe. *Gaming Partners International (NASDAQ:GPIC) has an exc
Slide 15: Non-Gaming Product Business
15 2. Business Divisions 2.3 Non-Gaming Product Business Dolphin also manufactures and sells non-gaming products, principally automobile components, and has been a qualified supplier to major auto manufacturers in Australia and elsewhere for an extended period of time. Major customers include GM Hol
Slide 16: Experienced Management Team
16 3. Experienced Management Team Experienced management team with strong relationships and understanding of the regulatory, political, and social dynamics in Asia. Clarence Chung (Chairman and Chief Executive Officer) Joined Elixir Gaming’s board in October 2007 and served as chairman since August
Slide 17: Business Expansion: Poised for Expansion
17 4. Business Expansion 4.1 Gaming Participation Business - Poised for Expansion After the refinement of its business model, Elixir Gaming emerges a stronger company and is poised for expansion with the right management team, expertise, and business focus. For 2010, Elixir Gaming is targeting selec
Slide 18: Dolphin – the Under-exploited Asset
18 4. Business Expansion 4.2 Dolphin – the Under-exploited Asset Market potential for Dolphin RFID technology in gaming chips and plaques is significantly under-exploited. Elixir Gaming estimates the size of the global gaming chip market to be over 100 million of which approximately 10-12% are RFID
Slide 19: Financial Information: Improving Earnings Performance
19 5. Financial Information 5.1 Improving Earnings Performance $US in thousands 2008 Q1 2009 Q2 2009 Q3 2009 (Actual) (Actual) (Actual) (Actual) Gaming Machine Participation Installed Machines at Period End 977 1,057 1,037 1,127 Revenue 3,433 946 1,743 1,839 Cost of Sales 9,071 3,110 2,600 3,021 Gro
Slide 20: Financial Information: Strengthening Balance Sheet
20 5. Financial Information 5.2 Strengthening Balance Sheet On July 24, 2009, Elixir Gaming entered into an agreement with Elixir International/Melco to amend the unsecured promissory note issued by the Company in April 2008 and amended in November 2008 to Elixir International. Under the amended not
Elixir Gaming Technologies — Investor Presentation (January 2010) on 6ix