Entertainment Gaming Asia — Elixir Gaming Technologies — Non-Deal Roadshow (June 2010)
23 slides from Entertainment Gaming Asia's roadshow presentation, Jun 2, 2010
Slide 1: Elixir Gaming Technologies Inc. Investor Marketing June 2-4, 2010
1 Elixir Gaming Technologies Inc. (NYSE Amex: EGT) Investor Marketing June 2-4, 2010
Slide 2: Safe Harbor Language
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 stat
Slide 3: Table of Contents
Table of Contents Company Background Core Gaming Division Dolphin Division Experienced Management Team Financial Information Investment Considerations 3
Slide 4: Company Background: Company Overview
4 1. Company Background 1.1 Company Overview Elixir Gaming Technologies, Inc. (“Elixir Gaming” or the “Company”) currently operates under two key business lines with the following visions: Elixir Gaming’s primary business is the placement of gaming machines on a revenue share (participation) model i
Slide 5: Recent Corporate Developments
5 1. Company Background 1.2 Recent Corporate Developments New contracts for gaming participation operations. Supplemental agreement for 30 gaming machine seats at NagaWorld increasing total machine seats under contract to 670. New agreement for 60 gaming machine seats at new Grand Golden Casino on C
Slide 6: Market Profile: Gaming Participation Business - Cambodia
6 2. Core Gaming Division Market Profile 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. NagaWorld, a wholly-owned subsidiary of Hong Kong listed NagaCorp Ltd. (
Slide 7: Gaming Participation Business - Cambodia: NagaWorld machine seat ramp-up
8 2. Core Gaming Division Electronic gaming machine seats at NagaWorld have ramped up significantly from approximately 200 at the end of January 2009 to 590 as of May 1, 2010. Average WUD improved substantially during the initial ramp up period from $54 in February to over $200 from June through Aug
Slide 8: Two-Pronged Approach
9 2. Core Gaming Division 2.1 Two-Pronged Approach Elixir Gaming has expanded the scope of its primary gaming operations through a two-pronged approach in order to capitalize on the fast growing opportunities in the gaming space in our target markets and enhance long-term returns. The two-pronged ap
Slide 9: Dreamworld Club at Grand Golden Casino
10 2. Core Gaming Division Dreamworld Club at Grand Golden Casino In April 2010, Elixir Gaming signed a contract to place approximately 60 electronic gaming machine seats on a participation basis at the new Grand Golden Casino in Kampong Cham Province near the Vietnam border. Elixir Gaming and Grand
Slide 10: Market Profile: Gaming Participation Business - Philippines
11 2. Core Gaming Division Market Profile 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 specia
Slide 11: Gaming Participation Business - Pro-forma Scenarios
12 2. Core Gaming Division 2.4 Gaming Participation Business – 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 23% 23% 23% Annual Revenues (in millions) $12.6 $16.8 $21.0 Cash COGS (in millions) $1.5 $2.0 $2.5 Ca
Slide 12: Casino Owner and Operator - Dreamworld Casino & Resort in Takeo
13 2.5 Casino Owner and Operator - Dreamworld Casino & Resort in Takeo In May 2010, Elixir Gaming was granted a license by the Cambodian government to build and operate a casino hotel called Dreamworld Casino and Resort in the Takeo Province near the Vietnam border. Elixir Gaming has also secured ov
Slide 13: Duty Free Shops on Vietnam Border
14 Duty Free Shops on Vietnam Border
Slide 14: Famous Temple in Vietnam Near the Cambodia Border
15 Famous Temple in Vietnam Near the Cambodia Border
Slide 15: Dreamworld Casino & Resort in Takeo: Phase 1 plan
2.5 Casino Owner and Operator - Dreamworld Casino & Resort in Takeo Phase 1 plan to include 150 electronic gaming machine seats and 20 table games housed on 54,000 sq. ft. of casino floor space and 50 hotel rooms, all of which is expected to be completed in the fourth quarter of 2011. Elixir Gaming
Slide 16: Dolphin Division: Gaming Chips and Plaques
3. Dolphin Division 3.1 Gaming Chips and Plaques Through Dolphin, Elixir Gaming’s wholly-owned subsidiary in Melbourne, Australia, the Company is one of the few manufacturers providing both traditional and RFID* gaming chips and plaques to casinos around the globe. * Gaming Partners International (N
Slide 17: Gaming Chips and Plaques: RFID market potential
3.1 Gaming Chips and Plaques 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 chips. The adoption rate of RFID tec
Slide 18: Experienced Management Team
4. 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 200
Slide 19: Improving Earnings Performance
5. Financial Information 5.1 Improving Earnings Performance $US in thousands Q1:10 Q1:09 (except installed machines) Gaming Machine Participation Installed Machines at Period End $1,384 $1,068 Revenue 2,836 946 Cost of Sales 2,228 3,110 Gross Profit / (Loss) 608 (2,164) Table Game Products Revenue 1
Slide 20: Positive Adjusted EBITDA
5.2 Positive Adjusted EBITDA 23 5. Financial Information $US in thousands Q1:10 Q1:09 Net Loss $(1,663) $(6,241) Loss from discontinued operations — 218 Interest expense 122 136 Interest income (12) (38) Income tax expense 235 3 Depreciation and amortization 2,231 2,753 Stock option expense 294 202
Slide 21: Strengthening Balance Sheet
5.3 Strengthening Balance Sheet 24 5. Financial Information $US in thousands 3/31/2010 12/31/2009 Current Assets: Cash and Cash Equivalents $5,094 $4,190 Current Portion of Accounts Receivable 2,122 2,670 Inventories 956 621 Other Current Assets 5,592 6,835 Total Current Assets 13,764 14,316 Gaming
Slide 22: Q2:10 Financial Outlook
5.4 Q2:10 Financial Outlook Quarterly sequential improvement in both total gaming machine participation revenue and consolidated adjusted EBITDA for the second quarter of 2010 driven by continued strength of its NagaWorld operations, an increasing installed machine base, and strict cost control. Bas
Slide 23: Investment Considerations
6. Investment Considerations Asian gaming markets are under-served and poised for growth with emerging middle and affluent classes with a strong propensity for gaming. Gaming participation business offers recurring daily revenue model with compelling long-term cash flow potential. Elixir Gaming has
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